# EDGAR Filing Document

**Accession Number:** 0000906205
**File Stem:** 0001628280-26-045588
**Filing Date:** 2026-6
**Character Count:** 2915053
**Document Hash:** c1a769304e32310eab0d214a3a224d38
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001628280-26-045588.hdr.sgml**: 20260625

**ACCESSION NUMBER**: 0001628280-26-045588

**CONFORMED SUBMISSION TYPE**: S-1

**PUBLIC DOCUMENT COUNT**: 40

**FILED AS OF DATE**: 20260625

**DATE AS OF CHANGE**: 20260625

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** LINCOLN BANCORP /IA/
- **CENTRAL INDEX KEY:** 0000906205
- **STANDARD INDUSTRIAL CLASSIFICATION:** SAVINGS INSTITUTIONS, NOT FEDERALLY CHARTERED [6036]
- **ORGANIZATION NAME:** 02 Finance
- **EIN:** 421224950
- **STATE OF INCORPORATION:** IA
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** S-1
- **SEC ACT:** 1933 Act
- **SEC FILE NUMBER:** 333-297035
- **FILM NUMBER:** 261122874

**BUSINESS ADDRESS:**
- **STREET 1:** 508 MAIN STREET
- **STREET 2:** PO BOX E
- **CITY:** REINBECK
- **STATE:** IA
- **ZIP:** 50669
- **BUSINESS PHONE:** 319-788-6441

**MAIL ADDRESS:**
- **STREET 1:** 508 MAIN STREET
- **STREET 2:** PO BOX E
- **CITY:** REINBECK
- **STATE:** IA
- **ZIP:** 50669

**As filed with the Securities and Exchange Commission on June 25, 2026** 

**Registration No. 333-**

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

**FORM S-1**

**REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933**

**LINCOLN BANCORP**

(Exact name of registrant as specified in its charter)

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| | | |
|:---|:---|:---|
| **Iowa**<br>(State or other jurisdiction of incorporation or organization) | **6022**<br>(Primary Standard Industrial<br>Classification Code Number) | **42-1224950**<br>(I.R.S. Employer<br>Identification Number) |

---

**508 Main Street**

**Reinbeck, Iowa 50669**

**(319) 788-6441**

(Address, including zip code and telephone number, including area code, of registrant's principal executive offices)

**Sean Willett**

**President and Chief Executive Officer**

**Lincoln Bancorp**

**508 Main Street**

**Reinbeck, Iowa 50669**

**(319) 788-6441**

(Name, address, including zip code and telephone number, including area code, of agent for service)

With copies to:

**Mark C. Kanaly**

**David S. Park**

**Alston & Bird LLP**

**1201 West Peachtree Street**

**Atlanta, Georgia 30309**

**(404) 881-7000**

**Approximate date of commencement of proposed sale to the public:** As soon as practicable after this registration statement becomes effective.

If any of the securities being registered on this Form are to be offered on a delayed or continuous basis pursuant to Rule 415 under the Securities Act of 1933, check the following box. ☒

If this Form is filed to register additional securities for an offering pursuant to Rule 462(b) under the Securities Act, check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering. ☐

If this Form is a post-effective amendment filed pursuant to Rule 462(c) under the Securities Act, check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering. ☐

If this Form is a post-effective amendment filed pursuant to Rule 462(d) under the Securities Act, check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering. ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See definitions of "large accelerated filer," "accelerated filer," "smaller reporting company" and "emerging growth company" in Rule 12b-2 of the Exchange Act:

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| | | | |
|:---|:---|:---|:---|
| Large accelerated filer | ☐ | Accelerated filer | ☐ |
| Non-accelerated filer | ☒ | Smaller reporting company | ☐ |
| |  | Emerging growth company | ☒ |

---

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 7(a)(2)(B) of the Securities Act. ☐

**The registrant hereby amends this registration statement on such date or dates as may be necessary to delay its effective date until the registrant shall file a further amendment which specifically states that this registration statement shall thereafter become effective in accordance with Section 8(a) of the Securities Act of 1933, as amended, or until the registration statement shall become effective on such date as the Securities and Exchange Commission, acting pursuant to said Section 8(a), may determine.**

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**The information in this prospectus is not complete and may be changed. The selling shareholders may not sell these securities until the registration statement filed with the Securities and Exchange Commission (the "SEC") is effective. This prospectus is not an offer to sell these securities, and it is not soliciting an offer to buy these securities, in any state where the offer or sale is not permitted.**

**SUBJECT TO COMPLETION, DATED JUNE 25, 2026**

**PRELIMINARY PROSPECTUS**

![prospectus1a.jpg](prospectus1a.jpg)

**821,917 Shares**

**Common Stock**

This prospectus relates to the resale from time to time of up to 821,917 shares of our common stock, par value $0.01 per share, which may be offered by the selling shareholders, Castle Creek Capital Partners VII, LP, which we refer to as "Castle Creek," and EJF Sidecar Fund, Series LLC - Small Financial Equities Series, which we refer to as "EJF" (each a "Selling Shareholder," and collectively, the "Selling Shareholders"). Unlike an initial public offering, the resale by the Selling Shareholders is not being underwritten by any investment bank. The shares of common stock offered by the Selling Shareholders are subject to a Registration Rights Agreement, dated December 4, 2018, as subsequently amended, which we refer to as the "Registration Rights Agreement." See the section entitled "Selling Shareholders" for a description of the Registration Rights Agreement. Such registration does not mean that the Selling Shareholders will actually offer or sell any of these shares. We are not selling any shares of our common stock under this prospectus and will not receive any proceeds from the sales of the above shares of our common stock by the Selling Shareholders.

All references to "common stock" in this prospectus relate to our shares of Class A voting common stock, par value $0.01 per share ("Class A Common Stock"), unless otherwise noted. We also have Class B nonvoting common stock, par value $0.01 per share ("Class B Common Stock"), authorized by our certificate of incorporation. There is no public market for shares of our Class A Common Stock or Class B Common Stock.

As of the date of this prospectus, we had 6,668,126 shares of Class A Common Stock outstanding, of which 1,829,829 shares were held by affiliates and 656,328 shares of Class B Common Stock outstanding, of which 9,574 shares were held by affiliates. As of the date of this prospectus, there are no shares of any other class of securities issued.

The Selling Shareholders may sell all or a portion of these shares from time to time in market transactions through any market on which our common stock is then traded, if any, in negotiated transactions or otherwise, and at prices and on terms that will be determined by the then prevailing market price or at negotiated prices, directly or through a broker or brokers, who may act as agents or principals, or by a combination of such methods of sale. The Selling Shareholders will receive all proceeds from the sale of the common stock.

We are an "emerging growth company" as defined in the Jumpstart Our Business Startups Act of 2012 and, as such, have elected to comply with certain reduced public company disclosure standards.

**Investing in our common stock involves risks. We encourage you to read and carefully consider this prospectus in its entirety, in particular, the "<u>[Risk Factors](#i7085be1544ff4b7d9fd2b45737811e0a_25)</u>" beginning on page <u>[12](#i7085be1544ff4b7d9fd2b45737811e0a_25)</u>, for a discussion of factors that you should consider with respect to this prospectus.**

**The shares of common stock offered are not savings accounts, deposits or other obligations of any of our bank or non-bank subsidiaries and are not insured by the Federal Deposit Insurance Corporation (the "FDIC") or any other governmental agency.**

**Neither the SEC, any state securities commission, the FDIC, the Board of Governors of the Federal Reserve System (the "Federal Reserve") nor any other regulatory body has approved or disapproved of these securities or determined if this prospectus is truthful or complete. Any representation to the contrary is a criminal offense.**

**The date of this prospectus is June 25, 2026.**

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**TABLE OF CONTENTS**

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| | |
|:---|:---|
| | **Page** |
| <u>[ABOUT THIS PROSPECTUS](#i7085be1544ff4b7d9fd2b45737811e0a_10)</u> | <u>[1](#i7085be1544ff4b7d9fd2b45737811e0a_10)</u> |
| <u>[INDUSTRY AND MARKET DATA](#i7085be1544ff4b7d9fd2b45737811e0a_13)</u> | <u>[2](#i7085be1544ff4b7d9fd2b45737811e0a_13)</u> |
| <u>[PROSPECTUS SUMMARY](#i7085be1544ff4b7d9fd2b45737811e0a_16)</u> | <u>[3](#i7085be1544ff4b7d9fd2b45737811e0a_16)</u> |
| <u>[RISK FACTORS](#i7085be1544ff4b7d9fd2b45737811e0a_25)</u> | <u>[12](#i7085be1544ff4b7d9fd2b45737811e0a_25)</u> |
| <u>[CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS](#i7085be1544ff4b7d9fd2b45737811e0a_28)</u> | <u>[33](#i7085be1544ff4b7d9fd2b45737811e0a_28)</u> |
| <u>[USE OF PROCEEDS](#i7085be1544ff4b7d9fd2b45737811e0a_31)</u> | <u>[36](#i7085be1544ff4b7d9fd2b45737811e0a_31)</u> |
| <u>[MARKET FOR COMMON STOCK AND DIVIDEND POLICY](#i7085be1544ff4b7d9fd2b45737811e0a_34)</u> | <u>[37](#i7085be1544ff4b7d9fd2b45737811e0a_34)</u> |
| <u>[MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS](#i7085be1544ff4b7d9fd2b45737811e0a_37)</u> | <u>[39](#i7085be1544ff4b7d9fd2b45737811e0a_37)</u> |
| <u>[BUSINESS](#i7085be1544ff4b7d9fd2b45737811e0a_40)</u> | <u>[95](#i7085be1544ff4b7d9fd2b45737811e0a_40)</u> |
| <u>[SUPERVISION AND REGULATION](#i7085be1544ff4b7d9fd2b45737811e0a_43)</u> | <u>[102](#i7085be1544ff4b7d9fd2b45737811e0a_43)</u> |
| <u>[MANAGEMENT](#i7085be1544ff4b7d9fd2b45737811e0a_46)</u> | <u>[111](#i7085be1544ff4b7d9fd2b45737811e0a_46)</u> |
| <u>[EXECUTIVE AND DIRECTOR COMPENSATION](#i7085be1544ff4b7d9fd2b45737811e0a_49)</u> | <u>[119](#i7085be1544ff4b7d9fd2b45737811e0a_49)</u> |
| <u>[CERTAIN RELATIONSHIPS AND RELATED PARTY TRANSACTIONS](#i7085be1544ff4b7d9fd2b45737811e0a_52)</u> | <u>[125](#i7085be1544ff4b7d9fd2b45737811e0a_52)</u> |
| <u>[SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT](#i7085be1544ff4b7d9fd2b45737811e0a_55)</u> | <u>[131](#i7085be1544ff4b7d9fd2b45737811e0a_55)</u> |
| <u>[DESCRIPTION OF CAPITAL STOCK](#i7085be1544ff4b7d9fd2b45737811e0a_58)</u> | <u>[133](#i7085be1544ff4b7d9fd2b45737811e0a_58)</u> |
| <u>[SELLING SHAREHOLDERS](#i7085be1544ff4b7d9fd2b45737811e0a_61)</u> | <u>[137](#i7085be1544ff4b7d9fd2b45737811e0a_61)</u> |
| <u>[PLAN OF DISTRIBUTION](#i7085be1544ff4b7d9fd2b45737811e0a_67)</u> | <u>[140](#i7085be1544ff4b7d9fd2b45737811e0a_67)</u> |
| <u>[LEGAL MATTERS](#i7085be1544ff4b7d9fd2b45737811e0a_70)</u> | <u>[143](#i7085be1544ff4b7d9fd2b45737811e0a_70)</u> |
| <u>[EXPERTS](#i7085be1544ff4b7d9fd2b45737811e0a_73)</u> | <u>[143](#i7085be1544ff4b7d9fd2b45737811e0a_73)</u> |
| <u>[WHERE YOU CAN FIND MORE INFORMATION](#i7085be1544ff4b7d9fd2b45737811e0a_76)</u> | <u>[143](#i7085be1544ff4b7d9fd2b45737811e0a_76)</u> |
| <u>[INDEX TO CONSOLIDATED FINANCIAL STATEMENTS](#i7085be1544ff4b7d9fd2b45737811e0a_79)</u> | <u>[F-1](#i7085be1544ff4b7d9fd2b45737811e0a_79)</u> |

---

i

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**ABOUT THIS PROSPECTUS**

As used in this prospectus, the terms "Company," "we," "our" and "us" refer to Lincoln Bancorp and its consolidated subsidiaries unless the context indicates otherwise. When we refer to the "Bank" or "our Bank" in this prospectus, we are referring to Lincoln Savings Bank, an Iowa state-chartered bank and wholly-owned subsidiary of the Company.

This prospectus relates only to the offer and sale of the shares covered by this prospectus but only under circumstances and in jurisdictions where it is lawful to do so. You should rely only on the information contained in this prospectus. We have not, and the Selling Shareholders have not, authorized anyone to provide you with additional information or information different from that contained in this prospectus. If anyone provides you with different or inconsistent information, you should not rely on it. The information contained in this prospectus is accurate only as of the date of this prospectus, regardless of the time of delivery of this prospectus or any sale of our common stock. Our business, financial condition, results of operations and prospects may have changed since the date of this prospectus. The Selling Shareholders are offering to sell common stock only in jurisdictions where those sales are permitted. Any references to our website herein are not intended to be active links and the information on, or that can be accessed through, our website is not, and you must not consider the information to be, a part of this prospectus or any other filings we make with the SEC.

This prospectus describes the specific details regarding the sale of our common stock by the Selling Shareholders, the terms of the common stock being offered and the risks of investing in our common stock. You should read this prospectus before making your investment decision. You should not interpret the contents of this prospectus to be legal, business, investment or tax advice. You should consult with your own advisors for that type of advice and consult with them about the legal, tax, business, financial and other issues that you should consider before investing in our common stock.

For investors outside the United States: We have not, and the Selling Shareholders have not, done anything that would permit this offering or the possession or distribution of this prospectus or any free writing prospectus in connection with this offering in any jurisdiction where action for that purpose is required, other than in the United States. Persons outside the United States who come into possession of this prospectus must inform themselves about, and observe any restrictions relating to, the offering of the common stock and the distribution of this prospectus outside the United States.

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**INDUSTRY AND MARKET DATA**

Unless otherwise indicated, information contained in this prospectus concerning our industry and the markets in which we operate, including our general expectations, market position, market opportunity and market size is based on information from various sources, including information obtained from various independent, third-party industry sources, publications, government reports, trade and business organizations and other contacts in the markets in which we operate and our own internal data, estimates and forecasts, as well as assumptions that we have made that are based on such data and other similar sources and on our knowledge of the market for our products and services.

Although we believe that this information (including the industry publications and third-party research surveys and studies) is generally reliable, information of this sort is inherently imprecise. This information involves a number of assumptions and limitations. In addition, estimates, forecasts and assumptions of our future performance and the performance of the industry in which we operate are necessarily subject to a high degree of uncertainty and risk due to a variety of factors, including those described in the section entitled "Risk Factors" and elsewhere in this prospectus. These and other factors could cause results to differ materially from those expressed in the estimates made by the independent parties and by us.

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**PROSPECTUS SUMMARY**

*This summary highlights selected information contained in this prospectus. This summary does not contain all the information that you should consider before investing in our common stock. You should carefully read this entire prospectus, including the sections entitled "Risk Factors," "Cautionary Note Regarding Forward-Looking Statements" and "Management's Discussion and Analysis of Financial Condition and Results of Operations," and our consolidated financial statements and the accompanying notes included elsewhere in this prospectus.*

**Our Business**

The Company is a bank holding company incorporated under the laws of the State of Iowa in 1983. The Company conducts a majority of its business through its wholly owned subsidiary, Lincoln Savings Bank (the "Bank").

In addition to the Bank, the Company conducts certain non-deposit activities through several wholly owned non-bank subsidiaries, each of which supports or complements the Company's core community banking and financial services operations – including: LSB Financial Services, Inc. and LSB Capital Management, Inc.

Founded in 1902, the Bank is a long-standing community banking institution headquartered in Reinbeck, Iowa, with a history of measured and disciplined expansion. Initially concentrated in its home market, the Bank grew through a series of acquisitions across neighboring communities beginning in the 1980s, followed by additional branch expansion and de novo openings in the early 2000s. During the 2010s, the Bank entered the greater Des Moines metropolitan area—its largest market—through a phased strategy that began with mortgage lending offices and evolved into full-service commercial banking locations, establishing a meaningful presence in a key economic region of the state.

The Bank provides a comprehensive range of commercial banking products and services tailored to individuals, small to mid-sized businesses, and agricultural customers. Its primary activities include the acceptance of deposits and the origination of commercial and industrial, commercial real estate, agricultural, residential real estate, and consumer loans. In addition, the Bank offers wealth management, trust, and fiduciary services, generating both net interest income and diversified fee-based revenue. The Company has further expanded its capabilities through an embedded finance and banking-as-a-service platform, which supports fintech partners and contributes additional noninterest income.

The Bank's operations are concentrated throughout Iowa, with a network of branches serving a mix of rural and metropolitan markets supported by diverse agricultural, commercial, and industrial economies. Its funding base consists primarily of core customer deposits, supplemented by wholesale funding sources as needed. The Bank emphasizes relationship-driven deposit gathering, treasury management services, and the growth of low-cost transaction accounts, while its embedded finance activities contribute additional, but managed, deposit inflows tied to fintech partnerships.

The Company's growth strategy focuses on disciplined organic expansion, selective market growth within Iowa, and continued development of complementary fee-based businesses. Key priorities include deepening commercial and small business relationships, expanding wealth and trust services, and prudently scaling its embedded finance platform within a robust risk management and regulatory framework. The Bank operates in a competitive environment that includes banks, credit unions, and non-bank financial service providers, and differentiates itself through relationship-focused service, local market knowledge, and diversified product offerings.

As of March 31, 2026, the Company had approximately $1.8 billion in consolidated total assets, total loans of $1.1 billion, total deposits of $1.5 billion, and total stockholders' equity of $134.8 million. The Company and the Bank are headquartered in Reinbeck, Iowa. Currently, the Bank operates 16 branch offices in 16 communities located primarily in northeast and central Iowa.

The Company conducts substantially all of its operations within the United States. While the Company does not maintain offices outside the United States, it does serve a limited number of customers located outside the United States.

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**Selling Shareholders**

On October 22, 2018, we sold 547,945 shares of our common stock to Castle Creek. In connection with this transaction, we entered into a Stock Purchase Agreement, dated October 22, 2018, and the Registration Rights Agreement, dated December 4, 2018, with Castle Creek.

On November 26, 2018, we sold 273,972 shares of our common stock to EJF. In connection with this transaction, we entered into a Stock Purchase Agreement, dated as of November 26, 2018, and the Registration Rights Agreement, dated as of December 4, 2018, with EJF.

Under these agreements, we have agreed to comply with certain continuing obligations with respect to the Selling Shareholders which are described in more detail in the section entitled "Selling Shareholders" beginning on page <u>[137](#i7085be1544ff4b7d9fd2b45737811e0a_61)</u>. Pursuant to the Registration Rights Agreement, and certain amendments thereto, the Company was required to file a registration statement with the SEC by December 31, 2025, converting the resale of registrable securities held by Castle Creek. The Company is filing this registration statement pursuant to the Registration Rights Agreement and, pursuant to its "piggyback rights" under the Registration Rights Agreement, the Company is also registering the resale of shares held by EJF.

**Recent Events**

On January 15, 2026, we entered into Subordinated Note Purchase Agreements with eighteen purchasers pursuant to which the Company offered and sold $33,500,000 in aggregate principal amount of its 9.00% Fixed-to-Floating Rate Subordinated Notes Due 2036. The Company paid placement agency fees of $670,000, resulting in net proceeds of $32,830,000. The Company made the offering pursuant to the exemptions from registration afforded by Section 4(a)(2) of the Securities Act, Rule 501(a)(1)-(3) and (5)-(7) and Rule 506 of Regulation D, promulgated under the Securities Act, where each purchaser was an "institutional accredited investor" or "accredited investor" within the meaning of Rule 501 of Regulation D. 100% of the Subordinated Notes qualified as Tier 2 capital.

In January 2026, the Company implemented balance sheet repositioning strategies and sold $176.6 million (par value) in available-for-sale securities recognizing a loss totaling $15.7 million.

The Company completed these repositioning strategies to improve and de-risk the aggregate risk/return profile of the investment portfolio, increase on-hand liquidity through the sale of the available-for-sale securities, provide consistently accretive core earnings, and to improve regulatory capital ratios through the injection of $9.0 million into the Bank.

**Implications of Being an Emerging Growth Company**

As a company with less than $1.235 billion in revenue during our last fiscal year, we qualify as an "emerging growth company" under the Jumpstart Our Business Startups Act of 2012, or the JOBS Act. An emerging growth company may take advantage of reduced reporting requirements and is relieved of certain other significant requirements that are otherwise generally applicable to public companies. As an emerging growth company:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• we may present as few as two years of audited financial statements and two years of related management discussion and analysis of financial condition and results of operations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• we are exempt from the requirement to obtain an attestation and report from our auditors on management's assessment of our internal control over financial reporting under the Sarbanes-Oxley Act of 2002;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• we are not required to hold non-binding advisory votes on executive compensation or golden parachute arrangements; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• we have no obligation to comply with any future requirements adopted by the Public Company Accounting Oversight Board regarding mandatory audit firm rotation or a supplement to the auditor's report providing additional information about the audit and the financial statement.

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In this prospectus, we have elected to take advantage of the reduced disclosure requirements and other relief described above, and in the future we may take advantage of any or all of these exemptions for as long as we remain an emerging growth company. We will remain an emerging growth company until the earliest of (i) the end of the fiscal year during which we have total annual gross revenues of $1.235 billion or more, (ii) the end of the fiscal year following the fifth anniversary of the first sale of our common equity securities pursuant to an effective registration statements under the Securities Act, (iii) the date on which we have, during the previous three-year period, issued more than $1.0 billion in non-convertible debt and (iv) the end of the first fiscal year in which (A) the market value of our equity securities that are held by non-affiliates exceeds $700 million as of June 30 of that year, (B) we have been a public reporting company under the Securities Exchange Act of 1934, as amended, or Exchange Act, for at least twelve calendar months and (C) we have filed at least one annual report on Form 10-K.

In addition to the relief described above, the JOBS Act permits us to take advantage of an extended transition period for complying with new or revised accounting standards affecting public companies. We have elected to use this extended transition period, which means that the financial statements included in this prospectus, as well as any financial statements that we file in the future, will not be subject to all new or revised accounting standards generally applicable to public companies for the transition period for so long as we remain an emerging growth company or until we affirmatively and irrevocably opt out of the extended transition period under the JOBS Act. As a result, our financial statements may not be comparable to the financial statements of public companies that comply with such new or revised accounting standards on a non-delayed basis.

**Summary of Risk Factors**

Investing in our common stock involves a high degree of risk. You should carefully consider all of the risks described in the section entitled "Risk Factors" before deciding to invest in our common stock. If any of the risks actually occur, our business, growth prospects, financial condition, and results of operations may be materially adversely affected. In such case, the trading price of our common stock may decline and you may lose part or all of your investment. Below is a summary of some of the principal risks we face:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• A decline in general business and economic conditions and any regulatory responses to such conditions could have a material adverse effect on our business, financial position, results of operations and growth prospects.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• We face strong competition from financial services companies and other companies that offer commercial and retail banking services, which could harm our business.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Fluctuations in interest rates may impact net interest income and may otherwise negatively impact our financial condition and results of operations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Inflation could negatively impact our business, our profitability and our stock price.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Negative developments in the banking industry could adversely affect our current and projected business operations and our financial condition and results of operations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Liquidity risks could affect operations and jeopardize our business, financial condition and results of operations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Our business depends on our ability to successfully manage our asset quality and credit risk.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Because a significant portion of our loan portfolio is comprised of commercial and residential real estate loans, negative changes in the economy affecting real estate values and liquidity could impair the value of collateral securing our real estate loans and result in loan and other losses.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• We engage in Small Business Administration and other government guaranteed lending, which exposes us to risks associated with reliance on federal programs.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Our provision and allowance for credit losses may prove to be insufficient to absorb potential losses in our loan portfolio.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• We may not be able to meet our unfunded credit commitments or adequately meet our reserve for losses associated with our unfunded credit commitments.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• We use brokered deposits which may be an unstable and/or expensive deposit source to fund earning asset growth.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Decreased residential mortgage origination, volume and pricing decisions of competitors may adversely affect our profitability.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Nonperforming assets take significant time to resolve and adversely affect our results of operations and financial condition and could result in further losses in the future.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• We could recognize losses on securities held in our securities portfolio, particularly if interest rates increase or economic and market conditions deteriorate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The implementation of other new lines of business or new products and services may subject us to additional risk.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• We derive a percentage of our deposits, total assets and income from deposit accounts generated through our LSBX platform BaaS relationships.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Our banking-as-a-service strategy through our LSBX platform faces increasing competition, including from institutions and partners that may no longer require a third-party bank.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Our agreements with BaaS partners may produce limited revenue and may expose us to liability for compliance violations by BaaS partners.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• We are highly dependent on our management team, and the loss of our senior executive officers or other key employees could harm our ability to implement our strategic plan, impair our relationships with customers and adversely affect our business, results of operations and growth prospects.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Our ability to maintain our reputation is critical to the success of our business and the failure to do so may materially adversely affect our business and the value of our common stock.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Our risk management framework may not be effective in mitigating risks and/or losses to us.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The financial services market is undergoing rapid technological changes, and if we are unable to stay current with those changes, we will not be able to effectively compete.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• System failures or disruptions of our network security, or the security of our data processing subsidiary, including as a result of cyberattacks or data security incidents, could subject us to increased operating costs as well as litigation and other liabilities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Our operations could be interrupted if our third-party service providers experience difficulty, terminate their services or fail to comply with banking regulations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• We are subject to certain operational risks, including, but not limited to, client or employee fraud and data processing system failures and errors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The developments and use of artificial intelligence presents risks and challenges that may adversely impact our business.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Our accounting estimates and risk management processes rely on analytical and forecasting models.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Changes in accounting standards could materially impact our financial statements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Failure to maintain effective internal controls over financial reporting could have a material adverse effect on our business and stock price.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The costs and effects of litigation, investigations or similar matters, or adverse facts and developments related thereto, could materially affect our business, operating results and financial condition.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• We are currently incurring significant liquidated damages under our Registration Rights Agreement and could incur additional liquidated damages if we fail to satisfy our registration obligations, which could materially adversely affect our financial condition and results of operation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• We are subject to extensive government regulation that could limit or restrict our activities, which in turn may adversely impact our ability to increase our assets and earnings.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Federal and state regulators periodically examine our business, and we may be required to remediate adverse examination findings.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• We have a concentration in commercial real estate lending which could result in additional costs and restrict our growth.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Changes to monetary policy by the Federal Reserve could adversely impact our results of operations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The Company and the Bank are subject to stringent capital and liquidity requirements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• We are subject to federal and state fair lending laws, and failure to comply with these laws could lead to material penalties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• We are subject to laws regarding the privacy, information security and protection of personal information and any violation of these laws or another incident involving personal, confidential, or proprietary information of individuals could damage our reputation and otherwise adversely affect our business.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The Federal Reserve may require us to commit capital resources to support the Bank.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• We could face the risk of noncompliance and enforcement action with the Bank Secrecy Act and other anti-money laundering statutes and regulations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Our deposit insurance premiums could be substantially higher in the future, which could have a material adverse effect on our future earnings.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• An active, liquid trading market for our common stock does not currently exist and may not develop, and as a result, you may not be able to sell your common stock at or above the price you paid for them, or at all.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The stock market can be volatile, and fluctuations in our operating results and other factors could cause our stock price to decline.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The price of our common stock could be volatile, and you could lose some or all of your investment as a result.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• An investment in our common stock is not an insured deposit and is subject to risk of loss.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Our dividend policy may change without notice and any payment of dividends in the future is subject to the discretion of our Board of Directors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Future sales of our common stock in the public market, including by our current shareholders, could lower our stock price, and any increase in shares issued as part of our equity-based compensation plans or for other purposes may dilute your ownership in us.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• As this prospectus is for the resale of stock held by two current shareholders, we will not receive the net proceeds from common stock sold under this prospectus and have no discretion in the use of the net proceeds.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• We are an emerging growth company within the meaning of the Securities Act and because we have decided to take advantage of certain exemptions from various reporting and other requirements applicable to emerging growth companies, our common stock could be less attractive to investors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The obligations associated with being a public company will require significant resources and management attention, which may divert from our business operations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Future issuances of common stock could result in dilution, which could cause our common stock price to decline.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Our common stock is subordinate to our existing and future indebtedness.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Our Articles of Incorporation and Bylaws, and certain banking laws applicable to us, could have an antitakeover effect that decreases our chances of being acquired, even if our acquisition is in our shareholders' best interests.

**Corporate Information**

Our principal executive office is located at 508 Main Street, Reinbeck, Iowa 50669, and our telephone number is (319) 788-6441. We maintain a website at *www.mylsb.com*. We do not incorporate information on or accessible through our website into this prospectus, and you should not consider any information on, or that can be accessed through our website as a part of this prospectus and the inclusion of our website address in this prospectus is an inactive textual reference only.

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**The Offering**

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| | |
|:---|:---|
| Shares of Common Stock Offered by Us |  |
| Shares of Common Stock Offered by the Selling Shareholders | 821,917 shares  |
| Common Stock Outstanding After the Offering<sup>(1)</sup> | 6,668,126 Class A Common Stock<br>656,328 Class B Common Stock  |
| Use of Proceeds | We will not receive any proceeds for the sale of shares of common stock by the Selling Shareholders pursuant to this prospectus. |
| Terms of the Offering | The Selling Shareholders will determine when and how they will sell the common stock offered in this prospectus. The prices at which the Selling Shareholders may sell the shares of common stock in this offering will be determined by the prevailing market price for the shares of common stock or in negotiated transactions. |
| Termination of the Offering | The offering will conclude upon such time as all of the common stock has been sold pursuant to this prospectus. |
| Risk Factors | Investing in our common stock involves risks. See the sections entitled "<u>[Risk Factors](#i7085be1544ff4b7d9fd2b45737811e0a_25)</u>" and "<u>[Cautionary Note Regarding Forward-Looking Statements](#i7085be1544ff4b7d9fd2b45737811e0a_28)</u>" for a discussion of factors that you should carefully consider before making an investment decision. |
| Market Trading | There is no public market for shares of our common stock.  |

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__________________

(1)The number of our shares outstanding as of the date of this prospectus is based on 6,668,126 shares of Class A Common Stock and 656,328 Class B Common Stock outstanding as of June 18, 2026.

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**Selected Financial Data**

The following tables summarize our historical financial data as of and for the periods indicated. We derived the selected data for the three month periods ended March 31, 2026 and March 31, 2025 and for the year ended December 31, 2025, set forth below from our financial statements contained elsewhere in this prospectus. You should read this data together with our financial statements and related notes included elsewhere in this prospectus and the information under the caption "Management's Discussion and Analysis of Financial Condition and Results of Operations." The summary financial data included in this section are not intended to replace the financial statements and related notes included elsewhere in this prospectus and are qualified in their entirety by those financial statements and related notes. Our historical results are not necessarily indicative of our future results. In the tables below, amounts are rounded to nearest thousands, except share and per share amounts.

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| | | |
|:---|:---|:---|
| **Financial Condition** | **Financial Condition** | **Financial Condition** |
| | **March 31, 2026** | **December 31, 2025** |
| **Selected Balance Sheet Data** | | |
| Cash and cash equivalents | $224334 | $134276 |
| Available-for-sale debt securities | 273400 | 329909 |
| Loans held for sale | 129 | 605 |
| Loans (not including loans held for sale) | 1165357 | 1166956 |
| Net deferred loan fees, premiums and discounts | 662 | 920 |
| Allowance for credit losses | 17964 | 17865 |
| Loans, net | 1146731 | 1148171 |
| Cash surrender value of life insurance | 37294 | 36887 |
| Goodwill | 18805 | 18805 |
| Other assets <sup>(1)</sup> | 88108 | 91725 |
| Total assets | $1788801 | $1760378 |
| Deposits | $1520617 | $1507071 |
| Federal Home Loan Bank advances | 70000 | 70000 |
| Notes payable |  | 14500 |
| Subordinated debentures | 32649 |  |
| Junior subordinated debentures | 9279 | 9279 |
| Other liabilities <sup>(2)</sup> | 21477 | 21714 |
| Total liabilities | 1654022 | 1622564 |
| Stockholders' equity | 134779 | 137814 |
| Total liabilities and stockholders' equity | $1788801 | $1760378 |
| **Selected Financial Ratios** |  |  |
| Common Equity to Assets | 9.74% | 10.43% |
| Tier 1 Leverage Ratio | 7.58% | 8.30% |
| Total Risk-Based Capital Ratio | 14.20% | 12.34% |
| Book Value Per Share | $18.13 | $18.85 |
| Tangible Book Value Per Share <sup>(3)</sup> | $15.53 | $16.19 |
| Allowance for Credit Losses as a Percentage of Gross Loans | 1.54% | 1.53% |
| Allowance for Credit Losses as a Percentage of Non-Performing Loans <sup>(4)</sup> | 38.46% | 48.95% |
| Allowance for Credit Losses as a Percentage of Nonaccrual Loans | 41.51% | 48.99% |
| Nonaccrual Loans as a Percentage of Gross Loans | 3.71% | 3.12% |
| Non-Performing Loans as a Percentage of Gross Loans | 4.01% | 3.13% |
| Non-Performing Loans as a Percentage of Total Assets | 2.61% | 2.07% |
| Non-Performing Assets as a Percentage of Total Assets <sup>(4)</sup> | 3.18% | 2.64% |

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__________________

(1)Includes premises and equipment, other real estate, accrued interest receivable, other investments and other assets.

(2)Includes accrued interest payable and other liabilities.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

(3)A non-GAAP financial measure - see the "Non-GAAP Presentations" section for a reconciliation to the most comparable GAAP equivalent measure.

(4)Non-performing loans is defined as the sum of total loans > 90 days & accruing and nonaccrual loans. Non-performing assets is defined as the sum of total non-performing loans and other real estate.

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| | | |
|:---|:---|:---|
| **Results of Operations** | **Results of Operations** | **Results of Operations** |
| | **At or for the Three Months Ended** | **At or for the Three Months Ended** |
| | **March 31, 2026** | **March 31, 2025** |
| **Selected Operating Data** | | |
| Interest income | $21200 | $23551 |
| Interest expense | 10243 | 12427 |
| Net interest income | 10957 | 11124 |
| Provision for credit losses | 125 | 911 |
| Noninterest income | (12742) | 2646 |
| Noninterest expense | 14924 | 13508 |
| Credit for income taxes | (4233) | (457) |
| Net loss | $(12601) | $(192) |
| **Selected Average Balance Sheet Data** |  |  |
| Average Total Assets | $1771905 | $1835065 |
| Average Stockholders' Equity | $135900 | $137128 |
| **Selected Financial Ratios** |  |  |
| Earnings Per Common Share - Basic | $(1.72) | $(0.03) |
| Annualized return on average assets | (2.88)% | (0.04)% |
| Adjusted annualized return on average assets<sup>(1)</sup> | (0.13)% | (0.04)% |
| Annualized return on average equity | (37.60)% | (0.57)% |
| Adjusted annualized return on average equity<sup>(1)</sup> | (1.70)% | (0.57)% |
| Net Interest Margin | 2.87% | 2.73% |
| Noninterest (Loss) Income to Average Assets | (0.72)% | 0.14% |
| Noninterest Expenses to Average Assets | 0.84% | 0.74% |
| Net Charge-Offs (Recoveries) to Average Outstanding Loans | 0.01% | 0.01% |

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__________________

(1)A non-GAAP financial measure - see the "Non-GAAP Presentations" section for a reconciliation to the most comparable GAAP equivalent measure.

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**RISK FACTORS**

*As an investment in our securities is speculative and involves a high degree of risk including the risk of a loss of your entire investment, you should carefully consider the following risk factors. These risk factors contain, in addition to historical information, forward-looking statements that involve risks and uncertainties. Our actual results could differ significantly from the results discussed in the forward-looking statements. The occurrence of any of the adverse developments described in the following risk factors could materially and adversely harm our business, financial condition, results of operations or prospects. In such event, the value of our securities could decline, and you could lose all or a substantial portion of your investment. In addition, the risks and uncertainties discussed below are not the only ones we face. Our business, financial condition, results of operations or prospects could also be harmed by risks and uncertainties not currently known to us or that we currently do not believe are material, and these risks and uncertainties could result in a complete loss of your investment. In assessing the risks and uncertainties described below, you should also refer to the other information contained in this prospectus.*

**Risks Related to Our Business**

***A decline in general business and economic conditions and any regulatory responses to such conditions could have a material adverse effect on our business, financial position, results of operations and growth prospects.***

Our business and operations are sensitive to general business and economic conditions in the United States, generally, and particularly in Iowa. Unfavorable or uncertain economic and market conditions may adversely affect credit quality, including borrowers' ability to repay loans and the value of collateral, as well as reduce demand for our products and services. If national, regional, or local economic conditions deteriorate—due to factors such as persistent inflation, elevated unemployment levels, adverse consequences arising from a failure by the U.S. government to raise the debt ceiling (including a default on its obligations or credit rating downgrades), trade disputes or tariffs, volatility in debt and equity capital markets, increased delinquencies in consumer mortgages, commercial or agricultural loans, declines in commodity prices, declines in residential or commercial real estate values, or reduced home sales and commercial activity—our growth and profitability could be materially constrained. In addition, economic stress may result in heightened regulatory or supervisory scrutiny, or more conservative regulatory expectations, which could limit our ability to grow, deploy capital, or return capital to shareholders.

In recent periods, certain of these macroeconomic conditions have affected, and could continue to affect, our business and results of operations. In particular, elevated inflation has increased our operating expenses, including personnel and other costs, and has affected customer behavior and spending levels. In addition, the higher interest rate environment has impacted our cost of funds and net interest margin, as well as deposit flows and loan demand. These conditions have also contributed to increased market volatility and have affected the credit performance of certain borrowers. While the ultimate extent of the impact of these factors on our business remains uncertain, the continuation or worsening of inflationary pressures, interest rate volatility or other adverse economic conditions could further materially adversely affect our financial condition and results of operations in future periods.

***We face strong competition from financial services companies and other companies that offer commercial and retail banking services, which could harm our business.***

Many of our competitors offer the same, or a wider variety of the, banking and related financial services that we offer within our market areas. These competitors include national banks, regional banks and other community banks, including banks similar to us that primarily serve distinct rural communities. In many instances these national and regional banks have greater resources than we do, and the smaller community banks may have stronger ties in local markets than we do, which may put us at a competitive disadvantage. We also face competition from many other types of financial institutions, including fintech companies, savings associations, finance companies, brokerage firms, insurance companies, credit unions, mortgage banks and other financial intermediaries. Further, our credit union competitors benefit from competitive advantages, including the credit union exemption from paying federal income tax and can, therefore, more aggressively price many products and services. In addition, a number of out-of-state financial intermediaries have opened production offices or otherwise solicit deposits in our market areas. We also compete with many forms of payments offered by both bank and non-bank providers, including a variety of

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new and evolving alternative payment mechanisms, systems and products, such as aggregators and web-based and wireless payment platforms or technologies, digital or "crypto" currencies, prepaid systems and payment services targeting users of social networks, communications platforms and online gaming. Competition is increasingly focused on digital capabilities, customer experience, speed and convenience, and failure to meet evolving customer expectations may adversely affect our competitive position. Some competitors may be willing to accept lower returns, assume greater risk or offer more favorable pricing and terms than we are willing or able to provide, which could place downward pressure on our margins. In addition, some competitors may offer banking and payment services through embedded or platform-based models that reduce the need for customers to maintain traditional banking relationships. Our future success may depend, in part, on our ability to use technology competitively to offer products and services that provide convenience to customers and create additional efficiencies in our operations. If we are unable to match the pace of technological change or the level of investment made by larger or more technologically advanced competitors, we may experience customer attrition or reduced growth opportunities. Further, as a result of the GENIUS Act, passed in 2025 to provide a regulatory framework for stablecoins in the U.S., increased competition may emerge from issuers of stablecoins and providers of related technology.

Increased competition in our markets may result in reduced loans, deposits and commissions and brokers' fees, gains on sales, servicing fees, as well as reduced net interest margin and profitability. Competition may also increase pressure on compensation and make it more difficult to attract and retain experienced banking and mortgage lending personnel. If we are unable to attract and retain banking and small business, agriculture or commercial loan customers and expand our sales market for such loans, we may be unable to continue to grow our business, and our financial condition and results of operations may be adversely affected.

***Fluctuations in interest rates may impact net interest income and may otherwise negatively impact our financial condition and results of operations.***

Our earnings and financial condition are dependent to a large degree upon net interest income, which is the difference, or spread, between interest earned on loans, securities and other interest-earning assets and interest paid on deposits, borrowings and other interest-bearing liabilities. When market rates of interest change, the interest we receive on our assets and the interest we pay on our liabilities fluctuates. This may cause decreases in our spread and may adversely affect our earnings and financial condition.

Interest rates are highly sensitive to many factors including, without limitation: the rate of inflation; economic conditions; federal monetary policies and stability of domestic and foreign markets. Interest rates remained elevated during 2024, with the Federal Reserve slowly decreasing interest rates beginning in the fourth quarter of 2024 through the fourth quarter of 2025. Further changes in interest rates and monetary policy reportedly are dependent upon the Federal Reserve's assessment of economic data as it becomes available. Increasing interest rates can have a negative impact on our business by reducing the amount of money our customers borrow or by adversely affecting their ability to repay outstanding loan balances that may increase due to adjustments in their variable rates, which may lead to an increase in nonperforming assets and a reduction of income recognized, which could compress our net interest margin and adversely affect liquidity.

In addition, in a rising interest rate environment, we may have to offer more attractive interest rates to depositors to compete for deposits or pursue other sources of liquidity, such as wholesale funds. Conversely, decreasing interest rates reduce our yield on our variable rate loans and on our new loans, which would reduce our net interest income. In addition, lower interest rates may reduce our realized yields on investment securities, which would reduce our net interest income and cause downward pressure on net interest margin in future periods. Higher income volatility from changes in interest rates and spreads to benchmark indices could result in a decrease in net interest income and a decrease in current fair market values of our assets. Fluctuations in interest rates impact both the level of income and expense recorded on most of our assets and liabilities and the market value of all interest-earning assets and interest-bearing liabilities, which in turn could have a material adverse effect on our net income, operating results or financial condition.

Although we have implemented procedures that we believe will reduce the potential effects of changes in interest rates on our net interest income, these procedures may not always be successful, as some of these effects are outside of our control. Our interest rate risk management models and assumptions may not accurately predict or

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fully mitigate the impact of future interest rate changes, particularly during periods of elevated volatility, and a prolonged period of volatile and unstable market conditions would likely increase our funding costs and negatively affect market risk mitigation strategies.

***Inflation could negatively impact our business, our profitability and our stock price.***

Prolonged periods of inflation may impact our profitability by negatively impacting our fixed costs and expenses, including increasing funding costs and expense related to talent acquisition and retention, and negatively impacting the demand for our products and services. Inflation may also contribute to restrictive or volatile monetary policies and elevated interest rates, which could further increase our funding costs, reduce loan demand and adversely affect asset values. Additionally, inflation may lead to a decrease in consumers' and clients' purchasing power and negatively affect the need or demand for our products and services. If significant inflation continues, our business could be negatively affected by, among other things, increased default rates leading to credit losses, which could decrease our appetite for new credit extensions. These inflationary pressures could result in missed earnings and budgetary projections causing our stock price to suffer. Additionally, the timing and magnitude of inflation's effects may be difficult to predict and could persist or intensify depending on economic conditions and policy responses.

***Negative developments in the banking industry could adversely affect our current and projected business operations and our financial condition and results of operations.***

Bank failures and related negative media attention may generate significant market trading volatility among publicly traded bank holding companies and, in particular, regional and community banks like the Company. These developments have and may continue to negatively impact customer confidence in regional and community banks, which could prompt customers to maintain their deposits with larger financial institutions or otherwise relocate funds. Rapid changes in customer behavior, including accelerated deposit withdrawals facilitated by digital banking channels, could increase liquidity pressures. If we were required to sell a portion of our securities portfolio to address liquidity needs, we may incur losses, including as a result of the negative impact of rising interest rates on the value of our securities portfolio, which could negatively affect our earnings and our capital. While we have taken actions to improve our funding, there is no guarantee that such actions will be successful or sufficient in the event of sudden liquidity needs.

Negative developments in the banking industry may also prompt changes in regulatory and supervisory expectations or actions, including increased examination scrutiny, higher capital or liquidity requirements, or restrictions on growth or capital distributions, which could further constrain our operations and financial flexibility. In addition, bank failures have and could in the future prompt the FDIC to increase deposit insurance costs. Increases in funding, deposit insurance or other costs as a result of these types of events have and could in the future materially adversely affect our financial condition and results of operations. Further, the disruption following these types of events have, and could in the future, generate significant market trading volatility among publicly traded bank holdings companies and, in particular, regional banks like the Company.

***Liquidity risks could affect operations and jeopardize our business, financial condition and results of operations.***

Liquidity is essential to our business. An inability to raise funds through deposits, borrowings, the sale of loans and/or investment securities and through other sources could have a substantial negative effect on our liquidity. Our most important source of funds consists of our customer deposits. Such deposit balances can decrease when customers perceive alternative investments, such as the stock market, as providing a better risk/return tradeoff. If customers move money out of bank deposits and into other investments, we could lose a relatively low cost source of funds. Moreover, competition among U.S. banks and non-banks for customer deposits is intense and may increase the cost of deposits (particularly in an elevated rate environment) or prevent new deposits and may otherwise negatively affect our ability to grow our deposit base. In addition, our access to deposits may be affected by the liquidity and/or cash flow needs of depositors, which may be exacerbated in an inflationary, recessionary or elevated rate environment. This may cause our deposit accounts to decrease in the future, and any such decrease could have a material adverse impact on our sources of funding.

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Other primary sources of funds consist of cash from operations, paydown of our existing loan portfolio and sale of loans, cashflows and sales of investment securities, and sales and proceeds from the issuance and sale of our equity securities to investors. Additional liquidity is provided by our ability to borrow from the Federal Reserve Bank of Chicago and the Federal Home Loan Bank of Des Moines. Recently proposed changes to the Federal Home Loan Bank system could adversely impact the Company's access to Federal Home Loan Bank borrowings or increase the cost of such borrowings. We also may borrow from third-party lenders from time to time. Our access to funding sources in amounts adequate to finance or capitalize our activities or on terms that are acceptable to us could be impaired by factors that affect us directly or the financial services industry or economy in general, such as disruptions in the financial markets or negative views and expectations about the prospects for the financial services industry. Our access to funding sources could also be affected by a decrease in the level of our business activity as a result of a downturn in our primary market area or by one or more adverse regulatory actions against us.

Any decline in available funding could adversely impact our ability to continue to implement our strategic plan, including our ability to originate loans, invest in securities, meet our expenses or to fulfill obligations such as repaying our borrowings or meeting deposit withdrawal demands, any of which could have a material adverse impact on our liquidity, business, financial condition and results of operations.

***Our business depends on our ability to successfully manage our asset quality and credit risk.***

We are subject to the risk of losses resulting from the failure of borrowers, guarantors and related parties to pay us the interest and principal amounts due on their loans. Although we maintain well-defined credit policies and credit underwriting and monitoring and collection procedures, these policies and procedures may not prevent losses, as some of these risks are outside of our control, particularly during periods in which the local, regional or national economy suffers a general decline. The future effects of a continued elevated inflationary interest rate environment on economic activity could negatively affect the collateral values associated with our existing loans, the ability to liquidate the real estate collateral securing our residential and commercial real estate loans, our ability to maintain loan origination volume and to obtain additional financing, the future demand for or profitability of our lending and services and the financial condition and credit risk of our customers. Further, in the event of delinquencies, regulatory changes and policies designed to protect borrowers may slow or prevent us from making our business decisions or may result in a delay in our taking certain remediation actions, such as foreclosure. If borrowers fail to repay their loans, our financial condition and results of operations would be adversely affected. Additionally, potential future actions such as the proposed consumer credit card interest rate cap may lead to unprofitable products, especially for riskier borrowers, and could lead to cutting credit lines or eliminating cards, increased reliance on fees and increased debt burdens for those needing credit the most, thereby having the potential to negatively impact bank asset quality.

***Because a significant portion of our loan portfolio is comprised of commercial and residential real estate loans, negative changes in the economy affecting real estate values and liquidity could impair the value of collateral securing our real estate loans and result in loan and other losses.***

At March 31, 2026, approximately 80% of our loan portfolio was comprised of loans with real estate as a primary or secondary component of collateral. As a result, adverse developments affecting real estate values in our market areas could increase the credit risk associated with our real estate loan portfolio. The market value of real estate can fluctuate significantly in a short period of time as a result of market conditions in the geographic area in which the real estate is located. Adverse changes affecting real estate values and the liquidity of real estate in one or more of our markets could increase the credit risk associated with our loan portfolio, significantly impair the value of property pledged as collateral on loans and affect our ability to sell the collateral upon foreclosure without a loss or additional losses, which could result in losses that would adversely affect credit quality, profitability, financial condition and results of operations. Such declines and losses would have a material adverse impact on our business, results of operations and growth prospects. High levels of commercial real estate, including construction and development lending, may also result in increased supervisory oversight, regulatory expectations or capital or allowance requirements.

In addition, if hazardous or toxic substances are found on properties pledged as collateral, the value of the real estate could be impaired. If we foreclose on and take title to such properties, we may be liable for remediation costs,

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as well as for personal injury and property damage. Environmental laws may also require us to incur substantial expenses to address unknown liabilities and may materially reduce the affected property's value or limit our ability to use or sell the affected property.

Most of our commercial business and commercial real estate loans are made to small to medium sized businesses. These businesses generally have fewer financial resources in terms of capital or borrowing capacity than larger entities and have a heightened vulnerability to economic conditions. Additionally, these loans may increase concentration risk as to industry or collateral securing our loans. Certain of these loans include construction and development loans and tax credit-related financings, which may involve additional risks related to project completion, cost overruns, availability of permanent financing, compliance with program requirements and reliance on third-party investors. If general economic conditions in the market areas in which we operate negatively impact this customer sector, our results of operations and financial condition may be adversely affected. These loans may expose us to a greater risk of non-payment and loss as repayment often depends on the successful operation and earnings of the borrower's businesses. Additionally, commercial real estate loans typically involve larger loan balances to a single borrower or groups of related borrowers. Further, the deterioration of borrowers' businesses may hinder their ability to repay their loans with the Company, which could have a material adverse effect on our financial condition and results of operations.

***We engage in Small Business Administration ("SBA") and other government-guaranteed lending, which exposes us to risks associated with reliance on federal programs.***

Our SBA lending program is dependent on federal government programs and subject to oversight by the SBA. As an SBA Preferred Lender, we benefit from delegated authority, but this status may be revoked if the SBA identifies deficiencies in our underwriting, servicing or risk management practices. Loss of Preferred Lender status could reduce our competitiveness and adversely affect our business. In addition, changes in SBA program terms, including guaranty levels or eligibility requirements, could negatively impact our lending activities and results of operations.

We generate income by selling the guaranteed portion of certain SBA 7(a) loans in the secondary market and retaining servicing rights. Our ability to continue originating and selling these loans, or to realize premiums on such sales, may be affected by market conditions or regulatory changes. We also retain credit exposure on the non-guaranteed portion of these loans and may incur losses if borrowers default. Further, the SBA may deny or seek recovery on guarantees in cases involving underwriting or servicing deficiencies, which could adversely affect our financial condition.

We also originate loans under USDA programs, which carry government guarantees but are subject to similar risks as SBA loans, including reliance on federal programs, secondary market execution and regulatory compliance. Changes in laws, regulations or program requirements governing SBA or USDA lending could adversely impact our ability to operate these programs profitably.

***Our provision and allowance for credit losses may prove to be insufficient to absorb potential losses in our loan portfolio.***

We make various assumptions and judgments about the collectability of our loan and lease portfolio and utilize these assumptions and judgments when determining the provision and allowance for credit losses. The determination of the appropriate level of the allowance for credit losses inherently involves a high degree of subjectivity and requires us to make significant estimates of current credit risks and future trends, all of which may undergo material changes, as we have experienced. Deterioration in economic conditions affecting borrowers, new information regarding existing loans, identification of additional problem loans and other factors both within and outside of our control may require an increase in the amount reserved in the allowance for credit losses. In addition, bank regulatory agencies periodically review our provision and the total allowance for credit losses and may require an increase in the allowance for credit losses or future provisions for credit losses based on judgments different than those of management. Any increases in the provision or allowance for credit losses will result in a decrease in our net income and, potentially, capital, and could increase earnings volatility or constrain our ability to deploy capital and may have a material adverse effect on our financial condition or results of operations.

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***We may not be able to meet our unfunded credit commitments or adequately meet our reserve for losses associated with our unfunded credit commitments.***

A commitment to extend credit is a formal agreement to lend funds to a client as long as there is no violation of any condition established under the agreement. The actual borrowing needs of our customers under these credit commitments have historically been lower than the contractual amount of the commitments. A significant portion of these commitments expire without being drawn upon. Because of the credit profile of our customers, we typically have a substantial amount of total unfunded credit commitments, which is not reflected on our balance sheet. Actual borrowing needs of our customers may exceed our expected funding requirements, especially during a challenging economic environment when our client companies may be more dependent on our credit commitments due to the lack of available credit elsewhere, the increasing costs of credit or the limited availability of financing from other sources. Such conditions could result in multiple borrowers drawing on their commitments at the same time, increasing our funding needs and putting additional pressure on our liquidity. The timing and amount of draws on unfunded commitments are difficult to predict and may be correlated with periods of economic stress when our access to funding sources may also be constrained. Any failure to meet our unfunded credit commitments in accordance with the actual borrowing needs of our customers may have a material adverse effect on our business, financial condition, results of operations or reputation.

***We use brokered deposits which may be an unstable and/or expensive deposit source to fund earning asset growth.***

We use brokered deposits as a source of funding to support our asset growth and augment deposits generated from our branch network, which are our principal sources of funding. We have established policies and procedures with respect to the use of brokered deposits, which require, among other things, that (i) we limit the amount of brokered deposits as a percentage of total assets and (ii) our asset liability committee monitor our use of brokered deposits on a regular basis, including interest rates and the total volume of such deposits in relation to our total assets. In the event that our funding strategies call for the use of brokered deposits, there can be no assurance that such sources will be available, or will remain available, or that the cost of such funding sources will be reasonable. Additionally, if the Bank is no longer considered well capitalized, our ability to access new brokered deposits or retain existing brokered deposits could be affected by market conditions, regulatory requirements or a combination thereof, which could result in most, if not all, brokered deposit sources being unavailable. The inability to utilize brokered deposits as a source of funding could have an adverse effect on our financial position, results of operations and liquidity. In addition, significant reliance on brokered deposits could be perceived negatively by customers, counterparties or investors, which could further affect our funding costs or access to alternative sources of liquidity.

***Decreased residential mortgage origination, volume and pricing decisions of competitors may adversely affect our profitability.***

Our mortgage operation originates residential mortgage loans primarily through a correspondent origination model, under which residential mortgage loans are referred to and underwritten by third-party correspondents and sold to these third-party correspondents. We originate home equity lines of credit ("HELOCs") directly and generally do not sell such loans. Demand for our residential mortgage loan products, as well as the revenues we receive from servicing residential mortgage loans for others, may be adversely affected by changes in interest rates, housing prices, economic conditions affecting borrowers, regulatory actions by applicable governmental authorities, and pricing or product decisions by our loan competitors or correspondent counterparties. If these factors reduce origination volume, margins, or servicing revenues, our net income may be negatively impacted. In addition, new regulations or increased regulatory scrutiny applicable to residential mortgage origination activities or correspondent relationships may be introduced from time to time. Such developments could increase compliance costs, limit available products or counterparties, or otherwise make it more difficult or costly to operate our mortgage business or to maintain correspondent relationships on acceptable terms, which could further adversely affect our results of operations.

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***Nonperforming assets take significant time to resolve and adversely affect our results of operations and financial condition and could result in further losses in the future.***

Our nonperforming assets adversely affect our net income in various ways. We do not record interest income on nonaccrual loans or OREO, thereby adversely affecting our net interest income, net income and returns on assets and equity, and our loan administration costs could increase, which together with reduced interest income adversely affects our efficiency ratio. When we take collateral in foreclosure and similar proceedings, we are required to mark the collateral to its then-fair market value, which may result in a loss. These nonperforming loans and OREO also increase our risk profile and the level of capital our regulators believe is appropriate for us to maintain in light of such risks. The resolution of nonperforming assets requires significant time commitments from management and can be detrimental to the performance of their other responsibilities. If we experience increases in nonperforming loans and nonperforming assets, our net interest income may be negatively impacted, and our loan administration costs could increase, each of which would have an adverse effect on our net income and related ratios, such as return on assets and equity.

***We could recognize losses on securities held in our securities portfolio, particularly if interest rates increase or economic and market conditions deteriorate.***

Changes in interest rates may negatively affect both the returns on and the market value of our investment securities. Interest rate volatility can reduce unrealized gains or increase unrealized losses in our portfolio. Interest rates are highly sensitive to many factors including monetary policies, domestic and international economic and political issues and other factors beyond our control. These changes can negatively impact our other comprehensive income and equity levels through accumulated other comprehensive income, which includes net unrealized gains and losses on our investment securities. Further, such losses could be realized into earnings should liquidity and/or business strategy necessitate the sales of securities in a loss position. Periods of market stress or deposit outflows could increase the likelihood that we would need to sell securities at unfavorable prices. Additionally, actual investment income and cash flows from investment securities that carry prepayment risk, such as mortgage-backed securities and callable securities, may materially differ from those anticipated at the time of investment or subsequently as a result of changes in interest rates and market conditions. In a rising-rate environment, slower prepayments or extensions of expected maturities could increase interest rate sensitivity and reduce portfolio liquidity. These occurrences could have a material adverse effect on our net interest income or our results of operations.

***The implementation of other new lines of business or new products and services may subject us to additional risk.***

We continuously evaluate our service offerings and may implement new lines of business or offer new products and services within existing lines of business in the future. There are substantial risks and uncertainties associated with these efforts. In developing and marketing new lines of business and/or new products and services, we undergo a new product process to assess the risks of the initiative and invest significant time and resources to build internal controls, policies and procedures to mitigate those risks, including hiring experienced management to oversee the implementation of the initiative. Initial timetables for the introduction and development of new lines of business and/or new products or services may not be achieved, and price and profitability targets may not prove feasible. External factors, such as compliance with regulations, competitive alternatives and shifting market preferences, may also impact the successful implementation of a new line of business and/or a new product or service.

In addition, the development or acquisition of new products, services or business lines may involve operational, technological or integration challenges, including reliance on third-party vendors or strategic partners, which could increase costs or delay implementation. Furthermore, any new line of business and/or new product or service could have a significant impact on the effectiveness of our system of internal controls. If our risk management, compliance or internal control processes do not scale effectively to support new activities, we may be exposed to increased operational, legal or regulatory risk. Failure to successfully manage these risks in the development and implementation of new lines of business or new products or services could have a material adverse effect on our business, results of operations and financial condition. In addition, unsuccessful product launches or new business initiatives could adversely affect our reputation and divert management attention from existing operations.

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***We derive a percentage of our deposits, total assets and income from deposit accounts generated through our LSBX platform BaaS relationships.***

Deposit accounts acquired through our LSBX platform totaled $107.6 million, or 7.1% of our total deposits, at March 31, 2026. Certain deposits generated through our LSBX platform are treated by our regulators as brokered deposits. We provide oversight over these relationships, which must meet all internal and regulatory requirements. Because certain of these deposits are considered brokered deposits, they may subject us to heightened regulatory restrictions, limitations or supervisory expectations applicable to brokered deposits, particularly if we were to become less than well capitalized. We may exit relationships where such requirements are not met or where we are required by our regulators to exit such relationships. In addition, regulatory interpretations or changes in guidance regarding the treatment of BaaS-related or fintech-sourced deposits as brokered deposits could increase the portion of our deposits subject to brokered deposit limitations. Also, our LSBX partner(s) could terminate a relationship with us for many reasons, including being able to obtain better terms from another provider or dissatisfaction with the level or quality of our services. If a relationship were to be terminated, it could materially reduce our deposits, assets and income. We cannot assure you that we could replace such relationship. If we cannot replace such relationship, we may be required to seek higher rate funding sources as compared to the existing relationship, and interest expense might increase. We may also be required to sell securities or other assets to meet funding needs, which would reduce revenues or potentially generate losses.

***Our banking-as-a-service ("BaaS") strategy through our LSBX platform faces increasing competition, including from institutions and partners that may no longer require a third-party bank.***

Our strategy of partnering with digital financial service providers to offer BaaS has been adopted by a growing number of financial institutions with which we compete. Several technology-enabled banking platforms, as well as conventional banks with digital banking programs, have implemented BaaS strategies similar to ours. As a result, we face increased competition in attracting and retaining BaaS partners, and we expect competitive pressures in this area to continue.

In addition, certain current or prospective partners may seek to reduce their reliance on third-party banking relationships by obtaining their own bank charters or other regulatory approvals that would allow them to offer banking products directly. If such efforts are successful, demand for our BaaS services could decline, existing partner relationships could be reduced or terminated and our ability to grow or maintain deposits, fee income or other revenues associated with these relationships could be adversely affected.

Competition in the BaaS market may also increase our operating and compliance costs, reduce pricing flexibility or limit revenue growth. Any inability to compete effectively in this market could have an adverse effect on our business, financial condition and results of operations.

***Our agreements with BaaS partners may produce limited revenue and may expose us to liability for compliance violations by BaaS partners.***

We have entered into agreements with BaaS partners, which include digital financial service providers, pursuant to which we will provide certain banking services for the BaaS partner customers, including serving as the issuing bank for debit cards issued to their customers and establishing one or more settlement accounts for the purpose of settling customer transactions in the cash management account program. The agreements have varying terms and may be terminated by the parties under certain circumstances. If our BaaS partners are not successful in achieving customer acceptance of their programs or choose to terminate the agreement before the end of its term, our revenue under the agreement may be limited or may cease altogether. In addition, because we will provide banking services with respect to the cash features of our BaaS partner account programs, our bank regulators may hold us responsible for their activities with respect to the marketing or administration of their programs, which may result in increased compliance costs for us or potentially compliance violations as a result of BaaS partner activities. In recent years, a significant number of banks that provide BaaS have become subject to enforcement actions relating to their partners' activities, indicating that banking regulators have made banks' oversight over their BaaS partners a supervisory priority and that there is an increased risk that we could similarly become subject to additional regulatory scrutiny or

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enforcement. Additionally, financial weaknesses at our BaaS partners could cause us to record greater expenses or losses or suffer reputational harm.

***We are highly dependent on our management team, and the loss of our senior executive officers or other key employees could harm our ability to implement our strategic plan, impair our relationships with customers and adversely affect our business, results of operations and growth prospects.***

Our success depends, in large part, on our ability to attract and retain key personnel. Competition for the best personnel in most activities we engage in can be intense, as we compete with both smaller banks that may be able to offer bankers with more responsibility and autonomy and larger banks that may be able to offer bankers with higher compensation, resources and support, and we may not be able to hire personnel or to retain them. The unexpected loss of services of one or more of our key personnel could have a material adverse impact on our business because of their skills, their knowledge of our market, their relationships in the communities we serve, their years of industry experience and the difficulty of promptly finding qualified replacement personnel. Although we have employment agreements with certain of our executive officers, there is no guarantee that these officers and other key personnel will remain employed with the Company. If we are unable to successfully plan for and execute the transition or replacement of key members of our management team, our operations and strategic initiatives could be adversely affected.

***Our ability to maintain our reputation is critical to the success of our business and the failure to do so may materially adversely affect our business and the value of our common stock.***

We are a community bank, and our reputation is one of the most valuable components of our business. Threats to our reputation can come from many sources, including adverse sentiment about financial institutions generally, unethical practices, employee misconduct, failure to deliver minimum standards of service or quality, compliance deficiencies, security breaches, litigation, investigations and other proceedings and questionable or fraudulent activities of our customers. Negative publicity regarding our business, employees or customers, with or without merit, may result in the loss of customers, investors and employees, costly litigation, a decline in revenues and increased government regulation. If our reputation is negatively affected by the actions of our employees or otherwise, our business and, therefore, our operating results and the value of our common stock may be materially adversely affected.

***Our risk management framework may not be effective in mitigating risks and/or losses to us.***

Our risk management framework is comprised of various processes, systems and strategies and is designed to manage the types of risk to which we are subject, including, among others, credit, market, liquidity, interest rate and compliance. Our framework also includes financial or other modeling methodologies that involve management assumptions and judgment. Our risk management framework may not be effective under all circumstances and may not adequately mitigate any risk or loss to us. If our risk management framework is not effective, we could suffer unexpected losses and our business, financial condition, results of operations or growth prospects could be materially and adversely affected. We may also be subject to potentially adverse regulatory consequences.

***The financial services market is undergoing rapid technological changes, and if we are unable to stay current with those changes, we will not be able to effectively compete.***

The financial services market continually undergoes rapid technological changes with frequent introductions of new technology-driven products and services (including those relating to or involving artificial intelligence, machine learning, blockchain and other distributed ledger technologies) and an established and growing demand for mobile and other phone and computer banking applications. In addition to better serving customers, the effective use of technology increases efficiency and enables financial institutions to reduce costs. Our future success will depend, in part, on our ability to keep pace with the technological changes and to use technology to satisfy and grow customer demand for our products and services that will satisfy customer demands for convenience as well as to create additional efficiencies in our operations as we continue to grow and expand our market area. Many of our larger competitors have substantially greater resources to invest in technological improvements and have invested significantly more than us in technological improvements. As a result, they may be able to invest more heavily in developing and adopting new technologies and offer additional or more convenient products compared to those that

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we will be able to provide, which would put us at a competitive disadvantage. We may not be able to effectively implement new technology-driven products and services or be successful in marketing these products and services to our customers, which could impair our growth and profitability. The implementation of new technologies may also require changes to existing systems, processes and controls and may increase our reliance on third-party vendors, which could expose us to additional operational, regulatory or compliance risks. As a result, our ability to effectively compete to retain or acquire new business may be impaired, and the failure to successfully keep pace with technological change affecting the financial services industry could have a material adverse impact on our business, financial condition and results of operations.

***System failures or disruptions of our network security, or the security of our data processing subsidiary, including as a result of cyberattacks or data security incidents, could subject us to increased operating costs as well as litigation and other liabilities.***

The computer systems and network infrastructure we use, including those we maintain with our service providers and vendors, could be vulnerable to hardware and cyber security issues. Our operations are dependent upon our ability to protect our computer equipment against damage from fire, power loss, telecommunications failure, natural disasters such as earthquakes, tornadoes and hurricanes or a similar catastrophic event. We could also experience a cybersecurity incident by intentional or negligent conduct on the part of employees or other internal or external sources, including our third-party vendors and cyber criminals through, for example, phishing attempts, brute force attacks, denial of service attacks, viruses or other malicious code, exploiting software vulnerabilities (including "zero-day attacks"), ransomware or other malware and supply chain attacks and other disruptive problems caused by criminal threat actors. Any damage or failure that causes an interruption in our operations could have an adverse effect on our financial condition and results of operations. In addition, our operations are dependent upon our ability to protect the computer systems and network infrastructure utilized by us, including our internet banking activities, against damage from physical break-ins, cyberattacks and other disruptive problems caused by criminal threat actors. Such cyberattacks and other technology disruptions would jeopardize the security of information stored in and transmitted through our computer systems and network infrastructure, and those maintained by our service providers and vendors, which may result in significant liability, reputational damage and inhibit the use of our internet banking services by current and potential customers, any of which may result in a material adverse impact on our financial condition, results of operations or the market price of our common stock. As cyber threats continue to evolve and become more frequent, we may be required to expend significant additional resources to continue to modify or enhance our protective measures or to investigate and remediate any information security vulnerabilities. In addition, as the regulatory environment related to information security, data collection and use and privacy becomes increasingly rigorous, with new and constantly changing requirements applicable to our business, compliance with those requirements could also result in additional costs.

We and our third-party vendors are under continuous threat of loss due to hacking and cyberattacks especially as we continue to expand client capabilities to utilize internet and other remote channels to transact business. These cyber risks include increased phishing, malware, and other cybersecurity attacks described above, vulnerability to disruptions of our and our third-party vendors' information technology infrastructure and telecommunications systems for remote operations, increased risk of unauthorized dissemination of confidential information, limited ability to restore the systems in the event of a systems failure or interruption, greater risk of a cybersecurity incident resulting in destruction or misuse of valuable information, and potential impairment of our ability to perform critical functions, including wiring funds, all of which could expose us to risks of data or financial loss, litigation and liability and could seriously disrupt our operations and the operations of any impacted customers.

To date, none of foregoing types of attacks have had a material effect on our business or operations, and we maintain a system of internal controls and insurance coverage to mitigate against operational risks, including data processing system failures and errors and customer or employee fraud. However, no assurances can be provided that we (or our third-party vendors) may not suffer from such an attack in the future that may cause us material harm, especially in light of the risks being posed by the proliferation of new technologies, including artificial intelligence, the use of the Internet and telecommunications technologies to conduct financial transactions and the increased sophistication and activities of cybercriminals and other external parties.

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***Our operations could be interrupted if our third-party service providers experience difficulty, terminate their services or fail to comply with banking regulations.***

We depend to a significant extent on a number of relationships with third-party service providers. Specifically, we receive core systems processing, essential web hosting, deposit processing and other processing services from third-party service providers. If these third-party service providers experience financial, operational (including as a result of a cybersecurity incident) or technological difficulties or terminate their services and we are unable to replace them with other suitable service providers, our operations could be interrupted. If an interruption were to continue for a significant period of time, our business, financial condition and results of operations could be adversely affected, perhaps materially. Even if we are able to replace our service providers, it may be at a higher cost to us, which could adversely affect our business, reputation, financial condition and results of operations. In addition, third-party service providers may fail to comply with applicable banking, consumer protection, data privacy or other regulatory requirements, and we may remain subject to regulatory action, fines, remediation requirements or reputational harm as a result. Failures or security breaches involving third-party service providers could also result in the unauthorized disclosure of sensitive customer or proprietary information, customer harm, litigation and increased regulatory scrutiny. Increased regulatory focus on third-party risk management may also result in heightened supervisory scrutiny, examination findings or limitations if our oversight of third-party service providers is deemed insufficient.

***We are subject to certain operational risks, including, but not limited to, client or employee fraud and data processing system failures and errors.***

Employee errors and employee and client misconduct could subject us to financial losses or regulatory sanctions and seriously harm our reputation. Misconduct by our employees could include hiding unauthorized activities from us, improper or unauthorized activities on behalf of our clients or improper use of confidential information. It is not always possible to prevent employee errors and misconduct, and the precautions we take to prevent and detect this activity may not be effective in all cases. Employee errors could also subject us to financial claims for negligence. We maintain a system of internal controls and insurance coverage to mitigate against operational risks. If our internal controls fail to prevent or detect an occurrence, or if any resulting loss is not insured or exceeds applicable insurance limits, it could have a material adverse effect on our business, financial condition and results of operations.

In addition, we rely heavily upon information supplied by third parties, including the information contained in credit applications, property appraisals, title information, equipment pricing and valuation and employment and income documentation, in deciding which loans we will originate, as well as the terms of those loans. If any of the information upon which we rely is misrepresented, either fraudulently or inadvertently, and the misrepresentation is not detected prior to asset funding, the value of the asset may be significantly lower than expected, or we may fund a loan that we would not have funded or on terms we would not have extended.

***The developments and use of artificial intelligence ("AI") presents risks and challenges that may adversely impact our business.***

The Company or its third-party (or fourth party) vendors, clients or counterparties may develop or incorporate AI technology in certain business processes, services or products. The development and use of AI present a number of risks and challenges to the Company's business. The legal and regulatory environment relating to AI is uncertain and rapidly evolving, both in the U.S. and internationally, and includes regulatory schemes targeted specifically at AI as well as provisions in intellectual property, privacy, security, consumer protection, employment and other laws applicable to the use of AI. These evolving laws and regulations could require changes in the Company's implementation of AI technology and increase the Company's compliance costs and the risk of non-compliance. AI models, particularly generative AI models, may produce output or take action that is incorrect, that reflects biases included in the data on which they are trained, that results in the release of private, confidential or proprietary information, which infringes on the intellectual property rights of others or that is otherwise harmful. In addition, the complexity of many AI models makes it difficult to understand why they are generating particular outputs. This limited transparency increases the challenges associated with assessing the proper operation of AI models, understanding and monitoring the capabilities of the AI models, reducing erroneous output, eliminating bias and

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complying with regulations that require documentation or explanation of the basis on which decisions are made. Further, the Company may rely on AI models developed by third parties and, to that extent, would be dependent in part on the manner in which those third parties develop and train their models, including risks arising from the inclusion of any unauthorized material in the training data for their models and the effectiveness of the steps these third parties have taken to limit the risks associated with the output of their models, matters over which the Company may have limited visibility. Any of these risks could expose the Company to liability or adverse legal or regulatory consequences, harm the Company's reputation and the public perception of its business or the effectiveness of its security and risk-management practices or place us at a competitive disadvantage if we are unable to adopt or govern AI technologies effectively relative to our peers.

***Our accounting estimates and risk management processes rely on analytical and forecasting models.***

Processes that management uses to estimate our probable incurred credit losses and to measure the fair value of financial instruments, as well as the processes used to estimate the effects of changing interest rates and other market measures on our financial condition and results of operations, depend upon the use of analytical and forecasting models. These models reflect assumptions that may not be accurate, particularly in times of market stress or other unforeseen circumstances. Even if these assumptions are accurate, the models may prove to be inadequate or inaccurate because of other flaws in their design or their implementation. If the models that management uses for interest rate risk and asset liability management are inadequate, we may incur increased or unexpected losses upon changes in market interest rates or other market measures. If the models that management uses for determining our probable credit losses are inadequate, the allowance for credit losses may not be sufficient to support future charge-offs. If the models that management uses to measure the fair value of financial instruments are inadequate, the fair value of such financial instruments may fluctuate unexpectedly or may not accurately reflect what we could realize upon sale or settlement of such financial instruments. Any such failure in management's analytical or forecasting models could have a material adverse effect on our business, financial condition and results of operations.

***Changes in accounting standards could materially impact our financial statements.***

From time to time, the Financial Accounting Standards Board (the "FASB") or the Securities and Exchange Commission (the "SEC"), may change the financial accounting and reporting standards that govern the preparation of our financial statements. Such changes may result in us being subject to new or changing accounting and reporting standards. In addition, the bodies that interpret the accounting standards (such as banking regulators or outside auditors) may change their interpretations or positions on how these standards should be applied. These changes may be beyond our control, can be hard to predict and can materially impact how we record and report our financial condition and results of operations. In some cases, we could be required to apply a new or revised standard retrospectively or apply an existing standard differently, also retrospectively, in each case resulting in our need to revise or restate prior period financial statements.

***Failure to maintain effective internal controls over financial reporting could have a material adverse effect on our business and stock price.***

Management regularly monitors, reviews and updates our disclosure controls and procedures, including our internal control over financial reporting. Any system of controls, however well designed and operated, is based in part on certain assumptions and can provide only reasonable assurances that the controls will be effective. The effectiveness of our internal controls also depends on the performance of individuals, and human error, misconduct or changes in personnel could compromise the effectiveness of our controls. Any failure or circumvention of our controls and procedures or failure to comply with regulations related to controls and procedures could have a material adverse effect on our business, results of operations and financial condition. Failure to achieve and maintain an effective internal control environment could prevent us from accurately reporting our financial results, preventing or detecting fraud or providing timely and reliable financial information pursuant to our reporting obligations, which could result in a material weakness in our internal controls over financial reporting and the restatement of previously filed financial statements and could have a material adverse effect on our business, financial condition and results of operations. Further, ineffective internal controls could cause our investors to lose confidence in our financial information, which could affect the trading price of our common stock.

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***The costs and effects of litigation, investigations or similar matters, or adverse facts and developments related thereto, could materially affect our business, operating results and financial condition.***

We may be involved from time to time in a variety of litigation, investigations or similar matters arising out of our business, including regulatory, supervisory and civil proceedings. The outcome of such matters is inherently difficult to predict, and we may not prevail in any particular matter. Any claims asserted against us, regardless of merit or ultimate outcome, may require significant management time and financial resources and could harm our reputation. Adverse judgments, settlements or civil money penalties in litigation or investigations could result in substantial costs, including damages, fines, penalties, remediation expenses or restrictions on our business activities, and could materially adversely affect our business, financial condition and results of operations. Our insurance coverage may not be sufficient to cover all claims, losses or liabilities, and insurance coverage may become more costly or less available over time. Banking institutions are also increasingly subject to private litigation, including class action lawsuits and claims based on evolving legal theories relating to lending practices, account terms, employment matters or other aspects of their operations. We may also be subject to regulatory investigations, examinations or enforcement actions that could result in fines, penalties, customer remediation requirements, or other supervisory actions. Such matters could expose us to significant liability, increased regulatory scrutiny, ongoing compliance or reporting obligations, or reputational harm. Although we seek to manage litigation risk through internal controls, compliance programs, training, insurance and active litigation management, the commencement, outcome and magnitude of litigation or investigations cannot be predicted with certainty.

***We are currently incurring significant liquidated damages under our Registration Rights Agreement and could incur additional liquidated damages if we fail to satisfy our registration obligations, which could materially adversely affect our financial condition and results of operations.***

Pursuant to our Registration Rights Agreement with the Selling Shareholders, we are required to file and maintain an effective registration statement covering the resale of their respective registrable securities within specified periods. We did not complete the required resale registration covering Castle Creek's registrable securities by December 31, 2025, and, as a result, we are currently obligated to pay Castle Creek liquidated damages under the Registration Rights Agreement, which provides for liquidated damages equal to 3.0% of the aggregate purchase price of the applicable registrable securities upon the occurrence of certain registration defaults (each, an "Event"), payable on the date of the Event and on each monthly anniversary thereof until cured, subject to the terms and limitations set forth therein. Such payments are currently approximately $300,000 per month, which will continue until a registration statement covering such securities is declared effective by the SEC. These payments have adversely affected, and are expected to continue to adversely affect, our results of operations and cash flows.

In addition, if we are required under the Registration Rights Agreement to file or maintain a registration statement covering EJF's registrable securities and we fail to meet the applicable filing or effectiveness requirements, we would be required to pay EJF liquidated damages on substantially the same basis, including upon the occurrence of an Event and subject to the same terms, conditions and limitations (including that such liquidated damages constitute the holders' sole monetary remedy for such failures, subject to exceptions set forth in the Registration Rights Agreement) until such failure is cured. Any such failure, whether with respect to Castle Creek, EJF, or both, could result in substantial cash payment obligations.

Our ability to satisfy our registration obligations is subject to factors that may be outside of our control, including the timing and outcome of SEC review and our ability to maintain the effectiveness of any registration statement. Any continued or additional liquidated damages payments could materially adversely affect our financial condition, liquidity and results of operations.

**Risks Related to Legislative and Regulatory Events**

***We are subject to extensive government regulation that could limit or restrict our activities, which in turn may adversely impact our ability to increase our assets and earnings.***

We operate in a highly regulated environment and are subject to supervision and regulation by a number of governmental regulatory agencies, including the Federal Reserve, the Iowa Division of Banking (the "IDOB") and the FDIC. Regulations adopted by these agencies, which are generally intended to provide protection for depositors

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and customers rather than for the benefit of shareholders, govern a comprehensive range of matters relating to ownership and control of our shares, our acquisition of other companies and businesses, permissible activities for us to engage in, maintenance of adequate capital levels and other aspects of our operations. These bank regulators possess broad authority to prevent or remedy unsafe or unsound practices or violations of law. Regulatory authorities also have significant discretion in the interpretation, application and enforcement of laws and regulations and may impose supervisory expectations or informal actions that are not codified in statute or regulation. The laws and regulations applicable to the banking industry could change at any time, and we cannot predict the effects of these changes on our business, profitability or growth strategy. Increased regulation could increase our cost of compliance and adversely affect profitability. Moreover, certain of these regulations contain significant punitive sanctions for violations, including monetary penalties and limitations on a bank's ability to implement components of its business plan, such as expansion through mergers and acquisitions or the opening of new branch offices. In addition, changes in regulatory requirements may add costs associated with compliance efforts. Furthermore, government policy and regulation, particularly as implemented through the Federal Reserve, significantly affect credit conditions. Negative developments in the financial industry and the impact of new legislation and regulation in response to those developments could negatively impact our business operations and adversely impact our financial performance. Regulatory constraints may also limit our ability to offer new products or services, pursue strategic initiatives or compete effectively with less-regulated or non-bank financial institutions. In addition, the potential erosion of the independence of the Federal Reserve could negatively impact financial markets and impact our profitability. See the section entitled "Supervision and Regulation" in this prospectus for an additional discussion of the extensive regulation and supervision that the Company and the Bank are subject to.

***Federal and state regulators periodically examine our business, and we may be required to remediate adverse examination findings.***

The Federal Reserve, the FDIC and the IDOB periodically examine our business, including our compliance with laws and regulations. If, as a result of an examination, a banking agency were to determine that our financial condition, capital resources, asset quality, earnings prospects, management, liquidity, interest rate sensitivity or other aspects of any of our operations had become unsatisfactory, or that we were in violation of any law or regulation, they may take a number of different remedial actions as they deem appropriate. These actions include the power to enjoin "unsafe or unsound" practices, to require affirmative action to correct any conditions resulting from any violation or practice, to issue an administrative order that can be judicially enforced, to direct an increase in our capital, to restrict our growth, to assess civil money penalties, to fine or remove officers and directors and, if it is concluded that such conditions cannot be corrected or there is an imminent risk of loss to depositors, to terminate our deposit insurance and place us into receivership or conservatorship. Remediation of examination findings may be costly, time-consuming and require significant management attention, and there can be no assurance that such remediation efforts will be completed to the satisfaction of regulators on a timely basis, or at all. Adverse examination findings may also restrict our ability to pay dividends, repurchase shares, pursue mergers or acquisitions, open or close branches, introduce new products or services or otherwise implement our business strategy. Any regulatory action against us could have an adverse effect on our business, financial condition and results of operations.

***We have a concentration in commercial real estate lending which could result in additional costs and restrict our growth.***

The federal banking regulators have published supervisory guidelines that call for the adoption of heightened risk mitigation measures for concentrations in commercial real estate loans. The guidelines provide that a bank will be deemed to have a concentration of commercial real estate loans if (i) the total reported loans for construction, land development and other land represent 100% or more of the bank's total capital, or (ii) the total reported loans secured by multifamily and non-farm residential properties, plus loans for construction, land development and other land, represent 300% or more of the bank's total capital and the bank's commercial real estate loan portfolio has increased by 50% or more during the prior 36 months. If such a concentration exists, the guidelines call for the bank (i) to implement heightened risk assessment and risk management practices, including board and management oversight and strategic planning, (ii) to implement and maintain stringent loan underwriting standards, including use of market analyses and stress testing tools to monitor the condition of the bank's commercial real estate loan portfolio and to assess the impact that adverse economic conditions affecting the real estate markets could have on

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the bank's financial condition, and (iii) if determined to be necessary on the basis of the results of such stress tests, to increase its allowance for credit losses and its capital. Although we actively manage our commercial real estate concentrations and believe that our underwriting policies, management information systems, independent credit administration process, and monitoring of real estate loan concentrations are currently sufficient to meet supervisory expectations, our regulators could become concerned about our commercial real estate loan concentrations. If so, we may be required to obtain additional capital, assume higher allowance levels commensurate with our exposures, enhance our risk management practices, or become subject to growth restrictions or other supervisory actions.

***Changes to monetary policy by the Federal Reserve could adversely impact our results of operations.***

The Federal Reserve is responsible for regulating the supply of money in the United States, including through open market operations and other tools used to influence economic activity and price stability, as well as setting monetary policy. Changes in monetary policy, including the pace, timing and magnitude of interest rate increases or decreases, as well as changes in liquidity conditions, may be volatile and difficult to predict. These actions strongly influence our rate of return on certain investments, our hedge effectiveness for mortgage servicing and our mortgage origination pipeline, as well as our cost of funds for lending and investing. Monetary policy actions may also affect asset valuations, deposit pricing and availability, borrower behavior and overall credit conditions, all of which could adversely impact our liquidity, results of operations, financial condition and capital position. In addition, changes in monetary policy may negatively affect the financial condition of our customers by increasing borrowing costs or reducing access to credit, which could result in increased delinquencies, reduced loan demand or lower profitability. We cannot predict the nature or timing of future changes in monetary, economic or other policies or the effect that they may have on our business activities, financial condition or results of operations.

***The Company and the Bank are subject to stringent capital and liquidity requirements.***

The Basel III Rule imposes stringent capital requirements on bank holding companies and banks. In addition to the minimum capital requirements, banks and bank holding companies are also required to maintain a capital conservation buffer of 2.5% of Common Equity Tier 1 Capital on top of minimum risk-weighted asset ratios to make capital distributions (including for dividends and repurchases of stock) and pay discretionary bonuses to executive officers without restriction. Banking institutions that do not maintain capital in excess of the Basel III Rule standards including the capital conservation buffer face constraints on the payment of dividends, equity repurchases and compensation based on the amount of the shortfall. Accordingly, if the Bank fails to maintain the applicable minimum capital ratios and the capital conservation buffer, distributions from the Bank to the parent Company may be prohibited or limited.

Future increases in minimum capital requirements could adversely affect our net income. Furthermore, our failure to comply with the minimum capital requirements could result in our regulators taking formal or informal actions against us, which could restrict our future growth or operations.

***We are subject to federal and state fair lending laws, and failure to comply with these laws could lead to material penalties.***

Federal and state fair lending laws and regulations, such as the Equal Credit Opportunity Act and the Fair Housing Act, impose nondiscriminatory lending requirements on financial institutions. The Department of Justice, Consumer Financial Protection Bureau (the "CFPB") and other federal and state agencies are responsible for enforcing these laws and regulations. Private parties may also have the ability to challenge an institution's performance under fair lending laws in private class action litigation. A successful challenge to our performance under the fair lending laws and regulations could adversely impact our rating under the Community Reinvestment Act and result in a wide variety of sanctions, including the required payment of damages and civil money penalties, injunctive relief, imposition of restrictions on merger and acquisition activity and restrictions on expansion activity, which could negatively impact our reputation, business, financial condition and results of operations.

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***We are subject to laws regarding the privacy, information security and protection of personal information and any violation of these laws or another incident involving personal, confidential, or proprietary information of individuals could damage our reputation and otherwise adversely affect our business.***

Our business requires the collection and retention of large volumes of customer data, including personally identifiable information, or PII, in various information systems that we maintain and in those maintained by third party service providers. We also maintain important internal company data such as PII about our employees and information relating to our operations. We are subject to complex and evolving laws and regulations governing the privacy and protection of PII of individuals (including customers, employees and other third parties). For example, our business is subject to the Gramm-Leach-Bliley Act (the "GLB Act"), which, among other things: (i) imposes certain limitations on our ability to share nonpublic PII about our customers with nonaffiliated third parties; (ii) requires that we provide certain disclosures to customers about our information collection, sharing and security practices and afford customers the right to "opt out" of any information sharing by us with nonaffiliated third parties (with certain exceptions) and (iii) requires that we develop, implement and maintain a written comprehensive information security program containing appropriate safeguards based on our size and complexity, the nature and scope of our activities and the sensitivity of customer information we process, as well as plans for responding to data security breaches. Various federal and state banking regulators and states have also enacted data breach notification requirements with varying levels of individual, consumer, regulatory or law enforcement notification in the event of a security breach.

Ensuring that our collection, use, transfer and storage of PII complies with all applicable laws and regulations can increase our costs. Furthermore, we may not be able to ensure that customers and other third parties have appropriate controls in place to protect the confidentiality of the information that they exchange with us, particularly where such information is transmitted by electronic means. If personal, confidential or proprietary information of customers or others were to be mishandled or misused (in situations where, for example, such information was erroneously provided to parties who are not permitted to have the information, or where such information was intercepted or otherwise compromised by third parties), we could be exposed to litigation or regulatory sanctions under privacy and data protection laws and regulations. Concerns regarding the effectiveness of our measures to safeguard PII, or even the perception that such measures are inadequate, could cause us to lose customers or potential customers and thereby reduce our revenues. Accordingly, any failure or perceived failure to comply with applicable privacy or data protection laws and regulations may subject us to inquiries, examinations and investigations that could result in requirements to modify or cease certain operations or practices or in significant liabilities, fines or penalties, and could damage our reputation and otherwise adversely affect our business, financial condition and results of operations.

***The Federal Reserve may require us to commit capital resources to support the Bank.***

The Federal Reserve, which examines us and the Bank, requires a bank holding company to act as a source of financial and managerial strength to a subsidiary bank and to commit resources to support such subsidiary bank. Under the "source of strength" doctrine, the Federal Reserve may require a bank holding company to make capital injections into a troubled subsidiary bank and may charge the bank holding company with engaging in unsafe and unsound practices for failure to commit resources to such a subsidiary bank. In addition, the Bank is subject to capital adequacy guidelines and other regulatory requirements specifying minimum amounts and types of capital which the Bank must maintain. From time to time, the regulators implement changes to these regulatory capital adequacy guidelines. If the Bank fails to meet these minimum capital guidelines and other regulatory requirements, our financial condition would be materially and adversely affected. We may also be required to satisfy additional capital adequacy standards as determined by the Federal Reserve. These requirements, and any other new regulations, could adversely affect our ability to pay dividends, service holding-company obligations, pursue growth initiatives or return capital to shareholders and could require us to raise additional capital or reallocate resources in ways that may not be favorable to our shareholders, including at times when market conditions are adverse.

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***We could face the risk of noncompliance and enforcement action with the Bank Secrecy Act and other anti-money laundering statutes and regulations.***

The Bank Secrecy Act of 1970, the Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act (the "USA PATRIOT Act") and other laws and regulations require financial institutions, among other duties, to institute and maintain effective anti-money laundering programs and file suspicious activity and currency transaction reports as appropriate. The Financial Crimes Enforcement Network of the U.S. Treasury Department (the "FinCEN"), established by the U.S. Department of the Treasury to administer the Bank Secrecy Act, is authorized to impose significant civil money penalties for violations of those requirements and engages in coordinated enforcement efforts with the individual federal banking regulators, as well as the U.S. Department of Justice, the Drug Enforcement Administration and the Internal Revenue Service. There is also increased scrutiny of compliance with the rules enforced by the Office of Foreign Assets Control (the "OFAC") related to U.S. sanctions regimes. If our policies, procedures and systems are deemed deficient or the policies, procedures and systems of the financial institutions that we have already acquired or may acquire in the future are deficient, we would be subject to liability, including fines and regulatory actions such as restrictions on our ability to pay dividends and the necessity to obtain regulatory approvals to proceed with certain aspects of our business plan, including our acquisition plans, which would negatively impact our business, financial condition and results of operations. Failure to maintain and implement adequate programs to combat money laundering and terrorist financing could also have serious reputational consequences for us.

***Our deposit insurance premiums could be substantially higher in the future, which could have a material adverse effect on our future earnings.***

The FDIC insures deposits at FDIC-insured depository institutions, such as the Bank, up to applicable limits. The amount of a particular institution's deposit insurance assessment is based on that institution's risk classification under an FDIC risk-based assessment system. An institution's risk classification is assigned based on its capital levels and the level of supervisory concern the institution poses to its regulators. We are generally unable to control the amount of premiums that we are required to pay for FDIC insurance. Any future additional assessments, increases or required prepayments in FDIC insurance premiums could reduce our profitability, place additional pressure on pricing of loans and deposits, limit our ability to pursue certain business opportunities or otherwise negatively impact our operations. The timing and magnitude of any such assessments may be difficult to predict and could adversely affect our earnings in the periods in which they are imposed.

**Risks Related to Our Common Stock** 

***An active, liquid trading market for our common stock does not currently exist and may not develop, and as a result, you may not be able to sell your common stock at or above the price you paid for them, or at all.***

Our shares are not listed for trading on any exchanges, and the trading of our common shares has substantially less liquidity than publicly traded companies. As a result, an active trading market for shares of our common stock may never develop or be sustained. If an active trading market does not develop, you may have difficulty selling your shares of common stock at an attractive price, or at all. A trading market for our stock depends on the individual decisions of investors and general economic and market conditions over which we have no control. Our stock will not be listed on an exchange following this registration. Consequently, you may not be able to sell your common stock at or above the price you paid for them or any other price or at the time that you would like to sell.

***The stock market can be volatile, and fluctuations in our operating results and other factors could cause our stock price to decline.***

The stock market has experienced, and may continue to experience, fluctuations that significantly impact the market prices of securities issued by many companies. Market fluctuations could adversely affect our stock price. These fluctuations have often been unrelated or disproportionate to the operating performance of particular companies. These broad market fluctuations, as well as general economic, systemic, political and market conditions, such as recessions, loss of investor confidence, interest rate changes, tariffs, government shutdowns or international currency fluctuations, may negatively affect the market price of our common stock. Moreover, our operating results may fluctuate and vary from period to period due to the risk factors set forth herein. As a result, period-to-period

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comparisons should not be relied upon as an indication of future performance. Our stock price could fluctuate significantly in response to our quarterly or annual results, annual projections and the impact of these risk factors on our operating results or financial position.

***The price of our common stock could be volatile, and you could lose some or all of your investment as a result.***

Stock price volatility may make it more difficult for you to resell your common stock when you want and at prices you find attractive. The market price of our common stock may be volatile and could be subject to wide fluctuations in price in response to various factors, some of which are beyond our control. These factors include, among other things:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• actual or anticipated variations in our quarterly results of operations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• recommendations or research reports about us or the financial services industry in general published by securities analysts;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• operating and stock price performance of other companies that investors or analysts deem comparable to us;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• news reports relating to trends, concerns and other issues in the financial services industry;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• perceptions in the marketplace regarding us, our competitors or other financial institutions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• future sales of our common stock;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• departures of members of our executive management team or other key personnel;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• new technologies used, or services offered by competitors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• significant acquisitions or business combinations, strategic partnerships, joint ventures or capital commitments by or involving us or our competitors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the effects of, and changes in, trade, monetary and fiscal policies, including the interest rate policies of the Federal Reserve;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• changes or proposed changes in laws or regulations, or differing interpretations of existing laws and regulations, affecting our business, or enforcement of these laws and regulations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• litigation and governmental investigations and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• geopolitical conditions such as acts or threats of terrorism or military conflicts.

If any of the foregoing occurs, it could cause our stock price to fall and may expose us to lawsuits that, even if unsuccessful, could be costly to defend and a distraction to management.

In addition, the stock market and, in particular, the market for financial institution stocks have experienced substantial fluctuations in recent years, which in many cases have been unrelated to the operating performance and prospects of particular companies. If the market for stocks in our industry, or the stock market in general, experiences a loss of investor confidence, the trading price of our common stock could decline for reasons unrelated to our business, financial condition, results of operations or growth prospects. In addition, significant fluctuations in the trading volume in our common stock may cause significant price variations to occur. Increased market volatility may materially and adversely affect the market price of our common stock, which could make it difficult to sell your shares at the volume, prices and times desired.

***An investment in our common stock is not an insured deposit and is subject to risk of loss.***

An investment in our common stock is not a bank deposit and, therefore, is not insured against loss by the FDIC, the Deposit Insurance Fund (the "DIF") or by any other public or private entity. Investment in our common stock is inherently risky for the reasons described in this prospectus and is subject to the same market forces that

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affect the price of common stock in any company. As a result, if you acquire our common stock, you could lose some or all of your investment.

***Our dividend policy may change without notice and any payment of dividends in the future is subject to the discretion of our Board of Directors.***

The holders of our common stock will receive cash dividends if and when declared by our board of directors out of legally available funds. Any future determination relating to the payment of dividends will be made at the discretion of our board of directors and will depend on a number of factors, including our future earnings, capital requirements, financial condition, future prospects, regulatory restrictions, and other factors that our board of directors may deem relevant.

Our principal business operations are conducted through our subsidiary, Lincoln Savings Bank. Cash available to pay dividends to our shareholders is derived in part from dividends paid by the Bank to us. The ability of the Bank to pay dividends to us, as well as our ability to pay dividends to our shareholders, will continue to be subject to, and limited by, certain legal and regulatory restrictions. Further, any lenders making loans to us may impose financial covenants that may be more restrictive with respect to dividend payments than the regulatory requirements.

***Future sales of our common stock in the public market, including by our current shareholders, could lower our stock price, and any increase in shares issued as part of our equity-based compensation plans or for other purposes may dilute your ownership in us.***

The market price of our common stock could decline as a result of sales of a large number of shares of our common stock available for sale pursuant to this prospectus or from the perception that such sales could occur. The shares sold pursuant to this prospectus will be freely tradable without restriction or further registration under the Securities Act, except that any shares purchased or held by our affiliates as that term is defined under Rule 144 of the Securities Act, may be sold only in compliance with applicable securities law limitations.

We cannot predict the size of future issuances or sales of our common stock or the effect, if any, that future issuances or sales of shares of our common stock may have on the market price of our common stock. Sales or distributions of substantial amounts of our common stock (including shares issued in connection with an acquisition), or the perception that such sales could occur, may cause the market price of our common stock to decline or to be more volatile.

***As this prospectus is for the resale of stock held by two current shareholders, we will not receive the net proceeds from common stock sold under this prospectus and have no discretion in the use of the net proceeds.***

The net proceeds of this sale will go to the Selling Shareholders and will not be reinvested in the Company. You should therefore be aware that the net proceeds from common stock sold under this prospectus will not be used in a manner that increases our market value or enhances our profitability.

***We are an emerging growth company within the meaning of the Securities Act and because we have decided to take advantage of certain exemptions from various reporting and other requirements applicable to emerging growth companies, our common stock could be less attractive to investors.***

For as long as we remain an emerging growth company, as defined in the Jumpstart Our Business Startups Act of 2012 (the "JOBS Act"), we will have the option to take advantage of certain exemptions from various reporting and other requirements that are applicable to other public companies that are not emerging growth companies, including not being required to comply with the auditor attestation requirements of Section 404(b) of the Sarbanes-Oxley Act, being permitted to have an extended transition period for adopting any new or revised accounting standards that may be issued by the FASB or the SEC, having reduced disclosure obligations regarding executive compensation and having exemptions from the requirements of holding a nonbinding advisory vote on executive compensation and stockholder approval of any golden parachute payments not previously approved. We have elected to, and expect to continue to, take advantage of certain of these and other exemptions until we are no longer an emerging growth company. We will remain an emerging growth company until the earliest of (i) the end of the fiscal year during which we have total annual gross revenues of $1.235 billion or more, (ii) the end of the fiscal year

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following the fifth anniversary of the first sale of our common equity securities pursuant to an effective registration statement under the Securities Act, (iii) the date on which we have, during the previous three-year period, issued more than $1.0 billion in non-convertible debt and (iv) the end of the first fiscal year in which (A) the market value of our equity securities that are held by non-affiliates exceeds $700 million as of June 30 of that year, (B) we have been a public reporting company under the Exchange Act for at least twelve calendar months and (C) we have filed at least one annual report on Form 10-K. If we become eligible to suspend our Exchange Act reporting obligations after our contractual obligations with the Selling Shareholders expire and elect to do so, the amount of publicly available information about the Company would be limited.

***The obligations associated with being a public company will require significant resources and management attention, which may divert from our business operations.***

As a result of this registration, we will become subject to the reporting requirements of the Exchange Act and the Sarbanes-Oxley Act. The Exchange Act requires that we file annual, quarterly and current reports with respect to our business and financial condition with the SEC. The Sarbanes-Oxley Act requires, among other things, that we establish and maintain effective internal controls and procedures for financial reporting. As a result, we will incur significant legal, accounting and other expenses that we did not previously incur. We anticipate that these costs will materially increase our general and administrative expenses. Furthermore, the need to establish the corporate infrastructure demanded of a public company may divert management's attention from implementing our strategic plan, which could prevent us from successfully implementing our growth initiatives and improving our business, results of operations and financial condition.

As an "emerging growth company" as defined in the JOBS Act, we intend to take advantage of certain temporary exemptions from various reporting requirements, including reduced disclosure obligations regarding executive compensation in our periodic reports and proxy statements and an exemption from the requirement to obtain an attestation from our auditors on management's assessment of our internal control over financial reporting. When these exemptions cease to apply, we expect to incur additional expenses and devote increased management effort toward ensuring compliance with them. We cannot predict or estimate the amount of additional costs we may incur as a result of becoming a public company or the timing of such costs.

***Future issuances of common stock could result in dilution, which could cause our common stock price to decline.***

We are generally not restricted from issuing additional shares of stock and may issue up to 25,000,000 shares of Class A common stock, 25,000,000 shares of Class B common stock and 100,000 shares of preferred stock authorized in our Amended and Restated Articles of Incorporation, which in each case could be increased by a vote of the holders of a majority of our shares of common stock. We may issue additional shares of our common stock in the future pursuant to current or future equity compensation plans, upon conversions of preferred stock or debt, or in connection with future acquisitions or financings. If we choose to raise capital by selling shares of our common stock for any reason, the issuance would have a dilutive effect on the holders of our common stock and could have a material negative effect on the market price of our common stock.

***Our common stock is subordinate to our existing and future indebtedness.***

Shares of our common stock are equity interests and do not constitute indebtedness. As such, our common stock ranks junior to all our customer deposits and indebtedness, and other non-equity claims on us, with respect to assets available to satisfy claims. In addition, the shares of common stock rank junior to the noteholders of the $9,279,000 of junior subordinated debentures that we issued on June 21, 2007, and the $33,500,000 in fixed-to-floating rate subordinated debt issued on January 15, 2026.

***Our Articles of Incorporation and Bylaws, and certain banking laws applicable to us, could have an antitakeover effect that decreases our chances of being acquired, even if our acquisition is in our shareholders' best interests.***

Our Articles of Incorporation and our Bylaws could make it more difficult for a third party to acquire us, even if doing so would be perceived to be beneficial by our shareholders. Furthermore, with certain limited exceptions, federal regulations prohibit a person or company or a group of persons deemed to be "acting in concert" from, directly or indirectly, acquiring 10% or more (5% or more if the acquirer is a bank holding company) of any class of

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our voting stock or obtaining the ability to control in any manner the election of a majority of our directors or otherwise direct the management or policies of our Company without prior notice or application to and the approval of the Federal Reserve. Accordingly, prospective investors must comply with these requirements, if applicable, in connection with any purchase of shares of our common stock. Collectively, provisions of our Articles of Incorporation and Bylaws and other statutory and regulatory provisions may delay, prevent or deter a merger, acquisition, tender offer, proxy contest or other transaction that might otherwise result in our shareholders receiving a premium over the market price for their common stock. Moreover, the combination of these provisions effectively inhibits certain business combinations, which, in turn, could adversely affect the market price of our common stock.

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**CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS**

This prospectus contains, and future oral and written statements by us and our management may contain, forward-looking statements, within the meaning of such term in the Private Securities Litigation Reform Act of 1995, with respect to our financial condition, results of operations, plans, objectives, future performance and business and our transition to and operation as a public company. Forward-looking statements, which may be based upon beliefs, expectations and assumptions of our management and on information currently available to management, are generally identifiable by the use of words such as "believe," "expect," "anticipate," "plan," "intend," "estimate," "may," "will," "would," "could," "should" or other similar expressions. These statements are based upon information available to us as of the date of this prospectus, and while we believe such information forms a reasonable basis for such statements, such information may be limited or incomplete, and our statements should not be read to indicate that we have conducted an exhaustive inquiry into, or review of, all potentially available relevant information or that we have identified all risks to which our business is subject. These statements are inherently uncertain and you are cautioned not to unduly rely upon these statements. Actual results, performance or achievements may differ materially from those expressed or implied by forward-looking statements as a result of various risks, uncertainties and assumptions. Additionally, all statements in this document, including forward-looking statements, speak only as of the date they are made, and we undertake no obligation to update any statement in light of new information or future events except as required by applicable law.

A number of important factors could cause our actual results to differ materially from those indicated in these forward-looking statements, including those factors identified in "Risk Factors" or "Management's Discussion and Analysis of Financial Condition and Results of Operations" or the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The effects of changes in interest rates (including the effects of changes in the rate of prepayments of our assets) and the policies of the Federal Reserve (including and the recent and potential additional rate increases by the Federal Reserve) including on our net interest income and the value of our security portfolio.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Our hedging strategies and other risk-mitigation activities intended to manage interest rate and market risk, and the effectiveness of such strategies under changing market conditions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The strength of the United States economy in general and the strength of the local economies in which we conduct our operations, including the effects of inflationary pressures, recessionary conditions, reduced consumer spending power, employment trends, supply chain constraints and disruptions in capital markets, which may be less favorable than expected and may result in, among other things, a deterioration in the credit quality and value of our assets.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The economic impact of any future terrorist threats and attacks, widespread disease or pandemics, acts of war or other threats thereof (including the Russian invasion of Ukraine, conflicts in the Middle East and other geopolitical or macroeconomic events), or other adverse events that could cause economic deterioration or instability in credit markets, commodity markets, and the response of local, state, federal or international governments or regulators to any such adverse external events.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Credit risks and risks from concentrations (by type of borrower, geographic area, collateral and industry) within our loan portfolio (including commercial real estate loans) and large loans to certain borrowers.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Our ability to forecast probable credit losses and maintain an adequate allowance for credit losses.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The accuracy and limitations of the models, assumptions and estimates we use in forecasting, interest rate risk management, asset and securities valuation, allowance for credit losses and financial reporting, particularly during periods of market stress or economic uncertainty.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The level of non-performing assets on our balance sheets.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Fluctuations in the value of securities held in our securities portfolio.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The concentration of large deposits from certain clients who have balances above current FDIC insurance limits and may withdraw deposits to diversify their exposure.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Our access to sources of liquidity and capital to address our liquidity needs.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Our inability to receive dividends from the Bank, pay dividends to our common shareholders or satisfy obligations as they become due.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Risks related to our BaaS strategy through our LSBX platform, including our ability to attract, retain and replace BaaS partners; the stability, scale and regulatory treatment of deposits generated through BaaS relationships; and the extent to which BaaS-related activities contribute meaningfully to our revenues, deposits and growth.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The effects of problems encountered by other financial institutions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Our ability to compete with other financial institutions due to increases in competitive pressures in the financial services sector, including from non-bank competitors such as credit unions and "fintech" companies.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Our inability to obtain new customers and to retain existing customers, including as a result of technological change, pricing competition, service disruptions, reputational harm or customer preferences for larger or digital-first financial institutions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Consumer spending and saving habits which may change in a manner that affects our business adversely.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Our ability to successfully integrate acquired businesses and future growth.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The effects of, and changes in, federal, state and local laws, regulations and policies affecting banking, securities, consumer protection, insurance, tax, trade and monetary and financial matters, including any changes in response to bank failures.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• New and revised accounting policies and practices, as may be adopted or interpreted by state and federal regulatory banking agencies, the Financial Accounting Standards Board, the Securities and Exchange Commission or the Public Company Accounting Oversight Board, including changes that could require retrospective application or restatement of prior period financial statements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The accuracy and completeness of our financial statements and related disclosures.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Our ability to comply with consumer protection, fair lending, privacy, anti-money laundering and other applicable banking laws and regulations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The effectiveness of our risk management framework.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Technological changes implemented by us and by other parties, including third-party vendors, which may be more difficult to implement, more costly than anticipated or subject us to additional operational, regulatory, compliance or reputational risks, including risks relating to cybersecurity, data privacy, artificial intelligence and reliance on third-party service providers.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Our dependence on third party service providers and vendors to support critical business functions and systems, and the risks associated with their performance, compliance with regulatory requirements and financial condition.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The effects of severe weather, natural disasters, widespread disease or pandemics and other external events.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Our ability to retain key executives and employees and the difficulty that we may experience in replacing key executives and employees in an effective manner.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The costs, effects and outcomes of existing or future litigation.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The costs, burdens and diversion of management attention associated with becoming and remaining a public company, including compliance with reporting, governance and internal control requirements, particularly while we remain an emerging growth company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Risks related to our common stock, including the absence of an active trading market, stock price volatility, dilution, future sales of common stock by existing shareholders, the resale nature of this offering and the fact that we will not receive the proceeds from the sale of shares under this prospectus.

The foregoing factors should not be construed as exhaustive and should be read together with the other cautionary statements included in this prospectus, in particular, the risk factors beginning on page <u>[12](#i7085be1544ff4b7d9fd2b45737811e0a_25)</u>. Because of these risks and other uncertainties, our actual future results, performance or achievement, or industry results, may be materially different from the results indicated by the forward-looking statements in this prospectus. In addition, our past results of operations are not necessarily indicative of our future results. You should not rely on any forward-looking statements, which represent our beliefs, assumptions and estimates only as of the dates on which they were made, as predictions of future events. Any forward-looking statement speaks only as of the date on which it is made, and we do not undertake any obligation to update or review any forward-looking statement, whether as a result of new information, future developments or otherwise. New factors emerge from time to time, and it is not possible for us to predict which will arise. In addition, we cannot assess the impact of each factor on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements.

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**USE OF PROCEEDS**

This prospectus relates to the sale of our common stock by the Selling Shareholders. The Selling Shareholders may, or may not, elect to sell shares of our common stock covered by this prospectus. To the extent the Selling Shareholders choose to sell shares of our common stock covered by this prospectus, we will not receive any proceeds from any such sales of our common stock.

We will pay for expenses of this offering, except that the Selling Shareholders will pay any broker discounts or commissions or equivalent expenses and expenses of its legal counsel applicable to the sale of their shares.

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**MARKET FOR COMMON STOCK AND DIVIDEND POLICY**

**Market for Common Stock**

Prior to this offering, our common stock has not been traded on an established public trading market, and quotations for our common stock were not reported on any market. As a result, there has been no regular market for our common stock. As of June 18, 2026, there were 631 holders of record of our common stock.

**Dividend Policy**

The declaration of all future dividends, if any, will be at the discretion of our board of directors and will depend on many factors, including the financial condition, earnings and liquidity requirements applicable to us and the Bank, regulatory constraints, and any other factors that our board of directors deems relevant in making such a determination. Our ability to pay dividends is subject to restrictions under applicable banking laws and regulations. In addition, dividends from the Bank are the principal source of funds for the payment of dividends on our stock. The Bank is subject to certain restrictions under banking laws and regulations that may limit its ability to pay dividends to us. Therefore, there can be no assurance that we will pay any dividends to holders of our stock and no assurance as to the amount of any such dividends.

We currently intend to retain all available funds and any future earnings for use in the operation of our business and do not anticipate paying any dividends on our capital stock in the foreseeable future. Any future determination relating to our dividend policy will be made by our board of directors and will depend on a number of factors, including general and economic conditions, industry standards, our financial condition and operating results, our available cash and current and anticipated cash needs, capital requirements, our ability to service debt obligations senior to our common stock, banking regulations, contractual, legal, tax and regulatory restrictions, and limitations on the payment of dividends by us to our shareholders or by the Bank to us and such other factors as our board of directors may deem relevant. We cannot assure you that we will be able to pay dividends to holders of our common stock in the future. Because we are a bank holding company and do not engage directly in business activities of a material nature, our ability to pay any dividends on our common stock depends, in large part, upon our receipt of dividends from the Bank, which is also subject to numerous limitations on the payment of dividends under federal and state banking laws, regulations and policies.

*Dividend Limitations*. Under Iowa law, the Bank may pay a dividend in the form of cash or property only if such is paid out of undivided profits. Federal law places the following limits on the amount of dividends the Bank may pay to the Company unless the dividends are paid in the form of common stock. Prior approval by the board of directors is required for dividends if the total of all dividends declared during the calendar year, including the proposed dividend, exceeds the sum of the Bank's net income during the current calendar year and the retained net income of the prior two calendar years. Further, the Bank requires the prior approval of the board of directors and at least two-thirds of the shareholders of each class of stock outstanding in order to pay a dividend if the dividend would exceed the Bank's undivided profits as reportable on its Reports of Condition and Income.

The Federal Reserve has established requirements with respect to the maintenance of appropriate levels of capital by registered bank holding companies. Compliance with such standards, as presently in effect, or as they may be amended from time to time, could possibly limit the amount of dividends that we may pay in the future. Where a bank holding company intends to declare or pay a dividend that could raise safety and soundness concerns, it generally will be required to inform and consult with the Federal Reserve in advance. It is the policy of the Federal Reserve that a bank holding company should generally pay dividends on common stock only out of earnings, and only if prospective earnings retention is consistent with the company's capital needs and overall current and prospective financial condition, and that bank holding companies should inform and consult with the Federal Reserve in advance of declaring and paying a dividend that exceeds earnings for the period for which the dividend is being paid. As a depository institution, the deposits of which are insured by the FDIC, the Bank may not pay dividends or make capital distributions if the Bank would thereafter be undercapitalized. In addition, the Bank may not pay dividends on its capital stock if it remains in default on any assessment due to the FDIC. The Bank currently is not in default under any of its obligations to the FDIC. See the section entitled "Supervision and Regulation" for more information regarding the regulatory limitations on our ability to declare and pay dividends.

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Our ability to pay dividends may also be limited on account of our outstanding indebtedness. We currently have two series of debentures. We must make the required payments on our debentures before any cash dividends can be paid on our common stock.

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**MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS**

*The following discussion and analysis of our financial condition and results of operations should be read together with our consolidated financial statements and related notes thereto and other financial information included elsewhere in this prospectus. To the extent that this discussion describes prior performance, the descriptions relate only to the periods listed, which may not be indicative of our future financial outcomes. In addition to containing historical information, this discussion contains forward-looking statements that involve risks, uncertainties and assumptions that could cause results to differ materially from management's expectations. Factors that could cause such differences are discussed in the sections entitled "Cautionary Note Regarding Forward-Looking Statements" and "Risk Factors." We assume no obligation to update any of these forward-looking statements, except to the extent required by law.*

*The following discussion presents management's perspective on our results of operations and financial condition on a consolidated basis. However, because we conduct all of our material business operations through our bank subsidiary, Lincoln Savings Bank, the discussion and analysis relates to activities primarily conducted by the Bank.*

**Results of Operations**

The following discussion provides information about our results of operations, financial condition, liquidity, and capital resources. This information is intended to facilitate the understanding and assessment of significant changes and trends related to our results of operations and financial condition. This discussion should be read in conjunction with our consolidated financial statements and the accompanying Notes, as of and for the years then ended December 31, 2025 and 2024 and our unaudited consolidated financial statements for the three month periods ended March 31, 2026 and 2025, presented elsewhere in this document.

The consolidated Company is referred to as "we" or "our" or "the Company" in the following discussion.

**INTERIM FINANCIAL STATEMENTS**

***Known Trends and Uncertainties***

During the first quarter of 2026, the Company executed a balance sheet repositioning strategy, selling $176.6 million (par value) in available-for-sale debt securities and recognizing a loss on sale of $15.7 million. This repositioning was undertaken to improve the Company's future net interest margin, increase on-hand liquidity, and reduce interest rate risk exposure. In connection with this strategy, on January 15, 2026, the Company completed the issuance of $33.5 million in aggregate principal amount of its 9.00% Fixed-to-Floating Rate Subordinated Notes Due 2036, with net proceeds of $32.8 million used for general corporate purposes, including enhancing regulatory capital.

As a result of the loss on the securities sale, the Company reported a net loss of $12.6 million for the three months ended March 31, 2026. Non-performing loans increased $10.2 million from December 31, 2025 to $46.7 million at March 31, 2026, primarily due to one multi-family relationship and one commercial real estate relationship. Management currently expects resolution of the two largest non-performing relationships in 2026 and believes the individually analyzed reserves are sufficient.

Additionally, after this filing, we expect to incur increased expenses as a result of being a public company (for legal, financial reporting, accounting and auditing compliance).

***Critical Accounting Policies and Estimates***

The preparation of financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities, and the reported amounts of revenues and expenses. Actual results could differ from those estimates.

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Critical accounting policies are those that are both most important to the portrayal of our financial condition and results of operations, and require management's most difficult, subjective or complex judgments, often as a result of the need to make estimates about the effect of matters that are inherently uncertain. Our critical accounting policies relate to the determination of the allowance for credit losses, valuation of real estate acquired in connection with foreclosures or in satisfaction of loans, valuation of goodwill, fair value of financial instruments, and valuation of deferred tax assets, all of which involve significant judgment by management.

***Allowance for Credit Losses***

The allowance for credit losses ("ACL") is an estimate of expected losses inherent within the Company's existing loans held for investment portfolio. The allowance for credit losses for loans held for investment, as reported in our unaudited consolidated balance sheet, is adjusted by a credit loss provision expense, which is reported in earnings, and reduced by the charge-off of loan amounts, net of recoveries.

The recorded ACL on loans is determined based on the amortized cost basis of the assets and may be determined at various levels, including homogeneous loan pools and individual credits with unique risk factors. Since adoption of ASU 2016-13 ("CECL") in 2023, the Company has used a discounted cash flow approach to calculate the ACL for each loan segment. Within the discounted cash flow model, a probability of default ("PD") and loss given default ("LGD") assumption is applied to calculate the expected loss for each loan segment. PD is the probability the asset will default within a given timeframe and LGD is the percentage of the assets not expected to be collected due to default. PD and LGD data is derived using a combination of external data and internal historical default and loss experience.

CECL may create more volatility in the Company's ACL. Under CECL, the Company's ACL may increase or decrease period to period based on many factors, including, but not limited to, macroeconomic forecasts and conditions; a change in the prepayment speed assumption; an increase or decrease in loan balances, including changes to the Company's loan portfolio mix; credit quality of the loan portfolio; and various qualitative factors outlined in ASU 2016-13.

The Company considers the ACL on loans to be a critical accounting policy given the uncertainty in evaluating the allowance required to cover management's estimate of all expected credit losses over the expected contractual life of the loans in its portfolio. Determining the appropriateness of the allowance is a key management function that requires significant judgment and estimates by management about the effect of matters that are inherently uncertain. Subsequent evaluations of the current loan portfolio, in light of the factors then prevailing, may result in significant changes in the allowance in future periods. While the Company's current evaluation indicates that the ACL on loans at March 31, 2026 and 2025 was appropriate, the allowance may need to be increased under adversely different conditions or assumptions.

The significant key assumptions used with the ACL on loans calculation at March 31, 2026 using the CECL methodology, included:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Macroeconomic factors (loss drivers)*: Macroeconomic factors are used within our discounted cash flow model to forecast the PD over the forecast period. As macroeconomic factors worsen the PD increases, and the corresponding LGD increases, resulting in an increase in the ACL on loans. The Company utilizes national, state and local unemployment, changes in national gross domestic product ("GDP"), changes in federal funds rates, and changes in inflation in estimation of the ACL on loans. Macroeconomic factors used in the calculation of the ACL on loans may change from time to time and in times of greater uncertainty. The Company may consider a range of possible forecasts and evaluate the probability of each scenario.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Forecast period and reversion speed*: ASU 2016-13 requires a company to use a reasonable and supportable forecast period in developing the ACL, which represents the time period that management believes it can reasonably forecast the identified loss drivers. Generally, the forecast period management believes to be reasonable and supportable is set annually and validated through an assessment of economic leading indicators. In periods of greater volatility and uncertainty, such as that seen across the global markets and economies, including the U.S., the Company may elect to use a shorter forecast period,

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whereas when markets, economies and various other factors are considered more stable and certain, the Company may elect to use a longer forecast period. Once the reasonable and supportable forecast period is determined, ASU 2016-13 requires a company to revert its loss expectations to the long-run historical mean for the remainder of the contract life of the asset, adjusted for prepayments. In determining the length of time over which the reversion will take place (i.e. "reversion speed"), the Company considers such factors such as, but not limited to, historical loan loss experience over previous economic cycles, as well as where the Company believes it is within the current economic cycle. At March 31, 2026, the Company used a one-year forecast period and two-year reversion period for each loan segment to measure the ACL on loans.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Prepayment speeds*: Prepayment speeds are determined for each loan segment utilizing the Company's own historical loan data, as well as consideration of current environmental factors. The prepayment speed assumption is utilized with the discounted cash flow model (i.e. the CECL model) to forecast expected cash flows over the contractual life of the loan, adjusted for expected prepayments. A higher prepayment speed assumption will drive a lower ACL, and vice versa.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Qualitative factors*: ASU 2016-13 requires companies to consider various qualitative factors that may impact expected credit losses. The Company continues to consider qualitative factors in determining and arriving at our ACL on loans each reporting period.

***Individually Evaluated Loans & Collateral Dependent Financial Assets***

For a loan that does not share risk characteristics with other loans, expected credit loss is measured based on net realizable value, that is, the difference between the discounted value of the expected future cash flows, based on the original effective interest rate, and the amortized cost basis of the loan. For these loans, we recognize expected credit loss equal to the amount by which the net realizable value of the loan is less than the amortized cost basis of the loan (which is net of previous charge-offs and deferred loan fees and costs), except when the loan is collateral dependent, that is, when the borrower is experiencing financial difficulty and repayment is expected to be provided substantially through the operation or sale of the collateral. In these cases, expected credit loss is measured as the difference between the amortized cost basis of the loan and the fair value of the collateral. The fair value of the collateral is adjusted for the estimated cost to sell if repayment or satisfaction of a loan is dependent on the sale (rather than only on the operation) of the collateral.

Our accounting policies and related disclosures about credit losses are discussed in more detail in the Notes to our consolidated interim financial statements for the three months ended March 31, 2026 and 2025. Please refer to "<u>[Note 1 – Nature of Operations and Summary of Significant Accounting Policies](#i7085be1544ff4b7d9fd2b45737811e0a_109)</u>, and "<u>[Note 3 – Loans and Allowance for Credit Losses](#i7085be1544ff4b7d9fd2b45737811e0a_115)</u>".

***Valuation of Real Estate Acquired in Connection with Foreclosures or in Satisfaction of Loans***

Real estate acquired through foreclosure or in satisfaction of loans (other real estate owned, or "OREO") is recorded at fair value less estimated costs to sell at the time of acquisition, which establishes a new cost basis. After acquisition, OREO is carried at the lower of its carrying amount or fair value less estimated costs to sell. Revenue and expenses from operations and changes in the valuation allowance are included in net income (loss) or expense from foreclosed assets.

The valuation of OREO is considered a critical accounting estimate because it requires management judgment and is subject to uncertainty. Fair value is generally based on third-party appraisals, broker price opinions, or internal evaluations, adjusted as appropriate for current market conditions, property-specific factors, and estimated costs to dispose of the asset. These valuations require assumptions regarding market demand, pricing of comparable properties, expected holding periods, and property condition.

OREO values are sensitive to changes in local real estate market conditions. Factors such as declining property values, limited market activity, longer marketing periods, changes in interest rates, or adverse economic conditions could reduce estimated fair values. In addition, individual properties may be unique or illiquid, which can limit the availability of observable market data and increase reliance on judgment.

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If actual sales prices, time to disposition, or selling costs differ from management's expectations, or if market conditions deteriorate, the Company may be required to record additional valuation write-downs or losses upon sale. Such adjustments could have an adverse effect on results of operations in the period recognized. Because these outcomes depend on future events and market conditions, actual results may differ from management's estimates.

Our accounting policies and related disclosures about credit losses are discussed in more detail in the Notes to our consolidated interim financial statements for the three months ended March 31, 2026 and 2025. Please refer to "<u>[Note 1 – Nature of Operations and Summary of Significant Accounting Policies](#i7085be1544ff4b7d9fd2b45737811e0a_109)</u>" and "<u>[Note 14 – Disclosures About Fair Value of Assets and Liabilities](#i7085be1544ff4b7d9fd2b45737811e0a_154)</u>."

***Valuation of Goodwill***

Goodwill results from business lines purchased in prior years. The acquisition method of accounting requires that assets and liabilities acquired in a business combination are recorded at fair value as of the acquisition date, typically resulting in goodwill. The valuation of assets and liabilities in a business combination involves estimates that are inherently subjective. Goodwill represents the excess of the consideration we paid over the fair value of identifiable assets and liabilities acquired. Goodwill and indefinite-lived intangibles are evaluated annually for impairment or more frequently if impairment indicators are present. If the implied fair value of goodwill or the fair value of the indefinite-lived intangible is over their carrying amounts, an impairment loss is recognized in an amount equal to the difference.

Goodwill is considered a critical accounting estimate because adverse changes in the Company's business could result in a material impairment charge. Factors that could negatively impact the fair value estimate include, but are not limited to, sustained declines in revenues or profitability, adverse changes in macroeconomic or industry conditions, increased competitive pressures, regulatory changes, loss of key customers or contracts, or the failure to achieve forecasted operating results or synergies associated with prior acquisitions.

Our accounting policy for goodwill is disclosed in "<u>[Note 1 – Nature of Operations and Summary of Significant Accounting Policie](#i7085be1544ff4b7d9fd2b45737811e0a_109)[s](#i7085be1544ff4b7d9fd2b45737811e0a_109)</u>" and "<u>[Note](#i7085be1544ff4b7d9fd2b45737811e0a_124)[5](#i7085be1544ff4b7d9fd2b45737811e0a_124)[– Goodwill](#i7085be1544ff4b7d9fd2b45737811e0a_124)</u>" to the consolidated interim financial statements for the three months ended March 31, 2026 and 2025.

***Fair Value of Financial Instruments***

The Company measures the fair value of certain financial instruments on a recurring or nonrecurring basis and discloses the fair value of additional financial instruments in the notes to the consolidated financial statements. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Determining fair value requires the use of valuation techniques and, in some cases, significant management judgment.

The fair value of financial instruments for which quoted market prices are not available is estimated using valuation models that consider observable market inputs, such as interest rates, yield curves, credit spreads, and other relevant factors. For certain instruments, including loans, collateral-dependent assets, and other assets measured on a nonrecurring basis, fair value estimates may incorporate unobservable inputs due to limited market activity. As a result, these valuations may rely on assumptions regarding expected cash flows, prepayment speeds, credit risk, collateral values, and liquidity discounts.

The valuation of financial instruments is considered a critical accounting estimate because changes in market conditions or assumptions used in valuation models can materially affect estimated fair values. Factors such as changes in interest rates, credit spreads, borrower credit quality, or market liquidity may significantly impact fair value estimates. In addition, valuations that rely on unobservable inputs are inherently more subjective and may be more sensitive to changes in judgment or underlying assumptions.

Because fair value estimates are based on conditions at a specific point in time and on information available at that date, actual proceeds received upon sale or settlement of a financial instrument may differ from its estimated fair value. If market conditions deteriorate or assumptions prove inaccurate, the Company could be required to record

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valuation adjustments or impairment charges, which could adversely affect results of operations in the period recognized.

Our accounting policies and related disclosures about credit losses are discussed in more detail in the Notes to our consolidated interim financial statements for the three months ended March 31, 2026 and 2025. Please refer to "<u>[Note 1 – Nature of Operations and Summary of Significant Accounting Policies](#i7085be1544ff4b7d9fd2b45737811e0a_109)</u>" and "<u>[Note 1](#i7085be1544ff4b7d9fd2b45737811e0a_154)[4](#i7085be1544ff4b7d9fd2b45737811e0a_154)[– Disclosures About Fair Value of Assets and Liabilities](#i7085be1544ff4b7d9fd2b45737811e0a_154)</u>."

***Valuation of Deferred Tax Assets***

Deferred tax assets arise from temporary differences between the financial reporting and tax basis of assets and liabilities, as well as from tax attributes such as net operating loss carryforwards. Deferred tax assets are recognized to the extent management believes it is more likely than not that they will be realized through future taxable income or available tax planning strategies.

The valuation of deferred tax assets is considered a critical accounting estimate because it requires significant judgment regarding the timing and amount of future taxable income. In evaluating the realizability of deferred tax assets, management assesses positive and negative evidence, including historical earnings, expectations for future profitability, the reversal of temporary differences, and the feasibility of tax planning strategies. These assessments require assumptions about future operating results and economic conditions that are inherently uncertain.

Deferred tax assets are sensitive to changes in business performance and economic conditions. Adverse developments such as sustained operating losses, changes in the composition or timing of income, or unfavorable economic trends could reduce the Company's ability to realize deferred tax assets. In addition, changes in tax laws or regulations, including changes in tax rates or limitations on the use of net operating losses, could negatively affect the realizability of deferred tax assets.

If management determines that it is more likely than not that some portion of the deferred tax assets will not be realized, the Company would be required to record or increase a valuation allowance, which would increase income tax expense and negatively affect results of operations in the period recognized. Because future taxable income and tax law developments cannot be predicted with certainty, actual results may differ from management's estimates.

Our accounting policy for valuation of deferred tax assets is disclosed in "<u>[Note 1 – Nature of Operations and Summary of Significant Accounting Policies](#i7085be1544ff4b7d9fd2b45737811e0a_109)</u>" and "<u>[Note 1](#i7085be1544ff4b7d9fd2b45737811e0a_142)[1](#i7085be1544ff4b7d9fd2b45737811e0a_142)[– Income Taxes](#i7085be1544ff4b7d9fd2b45737811e0a_142)</u>" to the consolidated interim financial statements for the three months ended March 31, 2026 and 2025.

***Emerging Growth Company***

Pursuant to the JOBS Act, an emerging growth company may adopt new or revised accounting standards either (i) within the same periods as those otherwise applicable to non-emerging growth companies or (ii) within the same periods as private companies. We have irrevocably elected to adopt new accounting standards within the same periods as private companies.

We may take advantage of some of the reduced regulatory and reporting requirements that are available to us so long as we qualify as an emerging growth company, including, but not limited to, not being required to comply with the auditor attestation requirements of Section 404(b) of the Sarbanes-Oxley Act, reduced disclosure obligations regarding executive compensation, and exemptions from the requirements of holding non-binding advisory votes on executive compensation and golden parachute payments.

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***Selected Consolidated Financial Information***

Selected consolidated financial information for the Company for the periods indicated is as follows:

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| | | | |
|:---|:---|:---|:---|
| **Financial Condition** | **Financial Condition** | **Financial Condition** | **Financial Condition** |
| | | | **Increase (Decrease)** |
| | **March 31, 2026** | **December 31, 2025** | $**%** |
| | **(Dollars in thousands)** | **(Dollars in thousands)** | |
| **Selected Balance Sheet Data** | | | |
| Cash and cash equivalents | $224334 | $134276 | 67.07% |
| Available-for-sale debt securities | 273400 | 329909 | (17.13)% |
| Loans held for sale | 129 | 605 | (78.68)% |
| Loans (not including loans held for sale) | 1165357 | 1166956 | (0.14)% |
| Net deferred loan fees, premiums and discounts | (662) | (920) | (28.04)% |
| Allowance for credit losses | (17964) | (17865) | 0.55% |
| Loans, net | 1146731 | 1148171 | (0.13)% |
| Cash surrender value of life insurance | 37294 | 36887 | 1.10% |
| Goodwill | 18805 | 18805 | -% |
| Other assets <sup>(1)</sup> | 88108 | 91725 | (3.94)% |
| Total assets | $1788801 | $1760378 | 1.61% |
| Deposits | $1520617 | $1507071 | 0.90% |
| Federal Home Loan Bank advances | 70000 | 70000 | -% |
| Notes payable | - | 14500 | (100.00)% |
| Subordinated debentures | 32649 | - | (n/m) |
| Junior subordinated debentures | 9279 | 9279 | -% |
| Other liabilities <sup>(2)</sup> | 21477 | 21714 | (1.09)% |
| Total liabilities | 1654022 | 1622564 | 1.94% |
| Stockholders' equity | 134779 | 137814 | (2.20)% |
| Total liabilities and stockholders' equity | $1788801 | $1760378 | 1.61% |
| **Selected Financial Ratios** |  |  |  |
| Gross Loans/deposits | 76.64% | 77.43% |  |
| Allowance for credit losses to gross loans | 1.54% | 1.53% |  |
| Non-performing loans to gross loans | 4.01% | 3.13% |  |
| Tier 1 leverage ratio of subsidiary Bank | 9.00% | 9.05% |  |
| Total risk-based capital ratio of subsidiary Bank | 13.52% | 13.41% |  |
| Stockholders' equity to total assets | 7.53% | 7.83% |  |

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__________________

(1)Includes premises and equipment, other real estate, accrued interest receivable, other investments and other assets.

(2)Includes accrued interest payable and other liabilities.

(n/m) - Not meaningful

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| | | | |
|:---|:---|:---|:---|
| **Results of Operations** | **Results of Operations** | **Results of Operations** | **Results of Operations** |
| | **At or for the Three Months Ended** | **At or for the Three Months Ended** | **Increase (Decrease)** |
| | **March 31, 2026** | **March 31, 2025** | $**%** |
| | **(Dollars in thousands)** | **(Dollars in thousands)** | |
| **Selected Operating Data** | | | |
| Interest income | $21200 | $23551 | (9.98)% |
| Interest expense | 10243 | 12427 | (17.57)% |
| Net interest income | 10957 | 11124 | (1.50)% |
| Provision for credit losses | 125 | 911 | (86.28)% |
| Noninterest income | (12742) | 2646 | (581.56)% |
| Noninterest expense | 14924 | 13508 | 10.48% |
| Credit for income taxes | (4233) | (457) | 826.26% |
| Net loss | $(12601) | $(192) | (n/m) |
| Adjusted earnings<sup>(1)</sup> | $(570) | $(192) | (n/m) |
| **Selected Average Balance Sheet Data** |  |  |  |
| Average earning assets | $1548146 | $1654011 | (6.40)% |
| Average total assets | $1771905 | $1835065 | (3.44)% |
| Average stockholders' equity | $135900 | $137128 | (0.90)% |
| **Selected Financial Ratios** |  |  |  |
| Annualized return on average assets | (2.88)% | (0.04)% |  |
| Adjusted annualized return on average assets<sup>(1)</sup> | (0.13)% | (0.04)% |  |
| Annualized return on average equity | (37.60)% | (0.57)% |  |
| Adjusted annualized return on average equity<sup>(1)</sup> | (1.70)% | (0.57)% |  |
| Net interest margin | 2.87% | 2.73% |  |

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__________________

(1)A non-GAAP financial measure - see the "Non-GAAP Presentations" section for a reconciliation to the most comparable GAAP equivalent measure.

(n/m) - not meaningful

***Financial Condition***

Our primary investment activities are the origination of real estate, commercial, and agricultural loans and the purchase of debt securities. Assets are funded primarily by deposits, borrowings such as Federal Home Loan Bank ("FHLB") advances, and stockholders' equity.

Total assets were $1.79 billion at March 31, 2026, representing an increase of $28.4 million, or 1.6%, from $1.76 billion at December 31, 2025. The increase was primarily due to a $90.1 million increase in cash and cash equivalents, partially offset by a decrease of $56.5 million in available-for-sale securities.

Our primary earning assets and funding sources are discussed below, including significant changes in our assets, liabilities, and stockholders' equity during the three months ended March 31, 2026.

***Available-For-Sale Debt Securities Portfolio***

The available-for-sale debt securities portfolio serves the following purposes: (i) it provides a source of pledged assets for securing certain deposits and borrowed funds, as may be required by law or by specific agreement with a depositor or lender; (ii) it provides liquidity to even out cash flows from the loan and deposit activities of customers; (iii) it can be used as an interest rate risk management tool, since it provides a large base of assets, the maturity and interest rate characteristics of which can be changed more readily than the loan portfolio to better match changes in the deposit base and other funding sources of the Company; and (iv) it is an alternative interest-earning use of funds when loan demand is weak or when deposits grow more rapidly than loans.

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Consistent with our investment policy, our portfolio consists of (i) asset-backed securities; (ii) collateralized mortgage obligations; (iii) government-sponsored mortgage-backed securities; (iv) state and political subdivisions; (v) U.S. treasuries; and (vii) collateralized debt obligations.

All debt securities are classified as available-for-sale. Accounting guidance requires available-for-sale debt securities to be marked to fair value with an offset to accumulated other comprehensive income (loss), which is a component of stockholders' equity. Monthly adjustments are made to reflect changes in the fair value of our available-for-sale debt securities.

The following table sets forth the carrying value of our available-for-sale debt securities for the periods indicated.

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **March 31, 2026** | **March 31, 2026** | **December 31, 2025** | **December 31, 2025** | **March 31, 2026** |
| | **Amortized<br>Cost** | **Fair<br>Value** | **Amortized<br>Cost** | **Fair<br>Value** | **% of Total<br>Portfolio (Based on Fair Value)** |
| | **(Dollars in thousands)** | **(Dollars in thousands)** | **(Dollars in thousands)** | | |
| **Available-For-Sale Debt Securities** | | | | | |
| Asset-backed securities | $9077 | $9047 | $2386 | $2405 | 3.3% |
| Collateralized mortgage obligations | 88807 | 85606 | 102824 | 99360 | 31.3% |
| Government sponsored mortgage-backed securities | 24653 | 23914 | 49911 | 45021 | 8.7% |
| State and political subdivisions | 121560 | 108326 | 168260 | 146012 | 39.7% |
| U.S. Treasuries | 20632 | 20474 | 14942 | 14239 | 7.5% |
| U.S. government agencies | - | - | - | - | -% |
| Collateralized debt obligations | 25965 | 26033 | 22950 | 22872 | 9.5% |
| &nbsp;&nbsp;&nbsp;&nbsp;Total securities available for sale | $290694 | $273400 | $361273 | $329909 | 100.0% |

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The Company's collateralized mortgage obligations and government sponsored mortgage-backed securities portfolios consist of securities predominantly underwritten to the standards of and guaranteed by the following government-sponsored agencies: Federal Home Loan Mortgage Corporation; Federal National Mortgage Association; and Government National Mortgage Association.

The following factors may be particularly relevant when comparing our investment portfolio with the performance of other financial institutions:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• All debt security investments are classified as available-for-sale;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• All debt securities are carried at fair value on the balance sheet; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Unrealized losses on debt securities, net of deferred tax, are reflected in stockholders' equity.

In January 2026, the Company implemented balance sheet repositioning strategies and sold $176.6 million (par value) in available-for-sale securities recognizing a loss totaling $15.7 million. The average duration for the total securities available for sale as of March 31, 2026 was 5.4 years, compared to 5.8 years at December 31, 2025. At a portfolio level, Management undertook the repositioning to improve prospective asset yields, enhance balance sheet flexibility and support the net interest margin outlook by redeploying proceeds into cash, higher-yielding earning assets and other liquidity or investment opportunities consistent with the Company's asset-liability management objectives. The realized loss reduced current-period earnings and retained earnings, but management expects the redeployment of proceeds, together with continued deposit pricing discipline and higher-rate loan originations, to support net interest margin improvement over time.

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***Loan Portfolio***

Loans represent the largest portion of our earning assets and typically provide higher yields than other assets. The quality and diversification of the loan portfolio is an important consideration when reviewing our financial condition. The Company's loan policy provides consistent standards and direction to achieve goals and objectives, which include maximizing earnings over the short and long term by managing risks. Internal concentration limits exist on all loan types, including the commercial & national credit & SBA/government guaranteed segment and agricultural and farmland segment. The Company has established strong underwriting practices and procedures to assess borrower credit risk, including review of debt service ability and collateral values and evaluation of guarantors. Appropriate actions are taken when a borrower is past due on payments or no longer able to service its debt.

The Company's loan portfolio consists of various types of loans: construction real estate, multi-family real estate, commercial real estate and 1-4 family real estate, agricultural and farmland, commercial & national credit & SBA/government guaranteed, and loans to individuals. At March 31, 2026 and December 31, 2025, the commercial real estate segment had the highest concentration and comprised 27.8% and 28.0%, respectively, of our loan portfolio. The Company's loans are primarily to borrowers in the Iowa markets where we operate.

Real estate loans consist of: Construction – land and commercial development, Multi-family real estate, Commercial real estate, and 1-4 family real estate including construction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Construction – land and commercial development: The Company provides financing for both horizontal (land development) and vertical (construction) financing, with a primary focus within our identified lending footprint. Land development financing is broad in scope, serving both commercial and residential developers. The loan policy outlines the underwriting criteria for each of these areas. These loans are generally structured with variable rates based on the Prime interest rate with loan maturities driven by the project scope, generally 12 – 18 months. Guarantor financial strength and liquidity play a vital role in underwriting these credits as collateral liquidation is generally the primary source of repayment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Multi-family real estate: The company provides many types of multifamily real estate financing, ranging from smaller properties to larger multi building complexes, as well as standard multifamily to more urban mixed use properties. Underwriting guidelines for these loans are laid out in the loan policy, with available market data including vacancy and absorption rates used in the analysis. Project economics are stressed to ensure their ability to withstand changes in rents, expenses, and occupancy. Loan amortizations for multifamily properties range from 20 – 30 years depending on the age of the property. Interest rates for these types of properties are predominantly adjustable, with the initial fixed rate periods generally not exceeding five years.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Commercial real estate: The Company focuses on both owner and non-owner occupied commercial real estate properties. Property types included within this segment would consist of industrial, warehouse, flex, and office for example. Underwriting guidelines for these loans are documented in the loan policy. Market data, vacancy rates, lease rates and duration are some of the items used within the analysis. Loan amortizations for commercial real estate properties are generally 20 years, with adjustable interest rates.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• 1-4 family real estate including construction: The Company provides many types of loans involving the purchase or refinance of real property including consumer mortgages, home construction, home improvement and small lines of credit. The loan policy addresses specific credit guidelines for each type. Many of the consumer real estate loans underwritten by the Company, other than home equity lines of credit ("HELOC"), conform to the underwriting requirements of Fannie Mae or other secondary market aggregators to allow the Company to resell loans in the secondary market. The Company structures most loans that will not conform to those underwriting requirements as adjustable rate mortgages that mature or adjust in one to five years, and then retains these loans in the Bank's portfolio. Servicing rights are generally not retained on the residential real estate loans sold in the secondary market except for select loans sold to the Federal Home Loan Bank MPF program.

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Agricultural and farmland loans are subject to underwriting standards and processes similar to commercial loans. The Company provides a wide range of agricultural loans, including lines of credit for working capital and operational purposes, and term loans for the acquisition of real estate, facilities, equipment and other purposes. Collateral for agricultural loans generally includes accounts receivable, inventory (typically grain or livestock) and equipment. Collateral for agricultural real estate loans is generally real estate and improvements.

Commercial, Shared National Credits, & SBA/Government Guaranteed loans focus on small and mid-sized businesses with primary operations in transportation, warehousing, manufacturing, as well as service industry companies such as retailers and hospitality. Shared national credits include engaging with the shared national credit market or leverage loan market under the advisement of a third-party asset manager. Small business administration ("SBA")/government guaranteed loans are loans made to small businesses under the SBA 7(a) program in which the U.S. SBA guarantees a portion of the loan, therefore representing less risk to the Company.

Loans to individuals consist of consumer loans and other types including motor vehicle, signature loans, and small personal credit lines.

The following table sets forth loans within each segment of our portfolio for the periods indicated below, including their percentage of total loans and increase (decrease) during 2026:

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **March 31, 2026** | **December 31, 2025** | **March 31, 2026** | **December 31, 2025** | |
| | **(Dollars in thousands)** | **(Dollars in thousands)** | **Percent of Total Loans** | **Percent of Total Loans** | **Increase (Decrease)**<br>**in 2026**<br>**Percentage** |
| Real Estate: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Construction - Land and commercial development | $46936 | $41508 | 4.0% | 3.6% | 13.1% |
| &nbsp;&nbsp;&nbsp;&nbsp;Multi-family | 177647 | 179265 | 15.2% | 15.4% | (0.9)% |
| &nbsp;&nbsp;&nbsp;&nbsp;Commercial | 324232 | 327023 | 27.8% | 28.0% | (0.9)% |
| &nbsp;&nbsp;&nbsp;&nbsp;1-4 Family including construction | 238372 | 241626 | 20.5% | 20.7% | (1.3)% |
| Agricultural and Farmland | 161516 | 164525 | 13.9% | 14.1% | (1.8)% |
| Commercial & National credit & SBA/Government guaranteed | 213432 | 209522 | 18.3% | 17.9% | 1.9% |
| Loans to Individuals - Other | 3222 | 3487 | 0.3% | 0.3% | (7.6)% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total loans | 1165357 | 1166956 | 100.0% | 100.0% | (0.1)% |
| Net deferred loan fees, premiums and discounts | (662) | (920) |  |  | (28.0)% |
| Allowance for credit losses - loans | (17964) | (17865) |  |  | 0.6% |
| &nbsp;&nbsp;&nbsp;&nbsp;Loans, net | $1146731 | $1148171 |  |  | (0.1)% |

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***Credit Quality and the Allowance For Credit Losses On Loans***

In accordance with CECL guidance, the Company has grouped its loan portfolio into segments with similar risk characteristics based on factors such as loan type, credit risk profile, borrower characteristics, and other relevant attributes that influence the risk of default. By dividing loans into these segments, the Company can apply more tailored loss estimation techniques that reflect the specific credit risks associated with each segment.

Evaluations of the Company's loan portfolio, its segments, and individual credits are inherently subjective and require significant judgments dependent on the circumstances at the time of the evaluation. As such, current period results are not an indication of future performance, and future evaluations may result in substantial changes to the allowance for credit losses and related provision expense as a result of changing economic conditions, asset quality, or loan portfolio composition in future periods.

For more information on the Company's allowance for credit losses methodology, including the quantitative and qualitative factors used in the calculation, please see "Note 1 – Nature of Operations and Summary of

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Significant Accounting Policies" and "Note 3 – Loans and Allowance for Credit Losses" within the Notes to the December 31, 2025 Consolidated Financial Statements.

The following table presents: (1) allowance for credit losses by loan portfolio segment, (2) loans by portfolio segment compared to total loans (dollars and percentage), and (3) allowance for credit losses by loan portfolio segment as a percentage of the total ACL for the periods indicated:

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| | | | | |
|:---|:---|:---|:---|:---|
| **(Dollars in thousands)**<br>**March 31, 2026** |<br>**Allowance for Credit Losses** |<br>**Total Loans** |<br>**% of Total Loans Outstanding** |<br>**Allowance as a % of Total ACL** |
| Real Estate: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Construction - Land and commercial development | $853 | $46936 | 4.0% | 4.7% |
| &nbsp;&nbsp;&nbsp;&nbsp;Multi-family | 1282 | 177647 | 15.2% | 7.2% |
| &nbsp;&nbsp;&nbsp;&nbsp;Commercial | 8616 | 324232 | 27.8% | 48.0% |
| &nbsp;&nbsp;&nbsp;&nbsp;1-4 Family including construction | 2300 | 238372 | 20.5% | 12.8% |
| Agricultural and Farmland | 904 | 161516 | 13.9% | 5.0% |
| Commercial & National credit & SBA/Government guaranteed | 3969 | 213432 | 18.3% | 22.1% |
| Loans to Individuals - Other | 40 | 3222 | 0.3% | 0.2% |
| &nbsp;&nbsp;&nbsp;&nbsp;Total | $17964 | $1165357 | 100.00% | 100.0% |

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| | | | | |
|:---|:---|:---|:---|:---|
| **(Dollars in thousands)**<br>**December 31, 2025** |<br>**Allowance for Credit Losses** |<br>**Total Loans** |<br>**% of Total Loans Outstanding** |<br>**Allowance as a % of Total ACL** |
| Real Estate: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Construction - Land and commercial development | $1306 | $41508 | 3.6% | 7.3% |
| &nbsp;&nbsp;&nbsp;&nbsp;Multi-family | 945 | 179265 | 15.4% | 5.3% |
| &nbsp;&nbsp;&nbsp;&nbsp;Commercial | 9535 | 327023 | 28.0% | 53.4% |
| &nbsp;&nbsp;&nbsp;&nbsp;1-4 Family including construction | 2164 | 241626 | 20.7% | 12.1% |
| Agricultural and Farmland | 975 | 164525 | 14.1% | 5.4% |
| Commercial & National credit & SBA/Government guaranteed | 2892 | 209522 | 17.9% | 16.2% |
| Loans to Individuals - Other | 48 | 3487 | 0.3% | 0.3% |
| &nbsp;&nbsp;&nbsp;&nbsp;Total | $17865 | $1166956 | 100.0% | 100.0% |

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The allowance for credit losses was $18.0 million at March 31, 2026, an increase of $99 thousand, or 0.6%, from $17.9 million at December 31, 2025. The increase is due to increases in specific reserves on certain nonperforming loans offset by decreases in gross loan balances for each segment except real estate - construction - land and commercial development and Commercial & National credit & SBA/Government guaranteed. The allowance as a percentage of gross loan balances remained relatively consistent, with a ratio of 1.54% at March 31, 2026 compared to 1.53% at December 31, 2025.

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***Past Due Loans***

Loans past due are summarized in the following table.

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| | | | | |
|:---|:---|:---|:---|:---|
| | **(Dollars in thousands)** | **(Dollars in thousands)** | **Percentage of Total Loans** | **Percentage of Total Loans** |
|<br>**Loans past due** | **March 31, 2026** | **December 31, 2025** | **March 31, 2026** | **December 31, 2025** |
| 30-89 days past due | $7961 | $3864 | 0.68% | 0.33% |
| 90 or more days past due and accruing | 3440 | 32 | 0.30% | -% |
| &nbsp;&nbsp;&nbsp;&nbsp;Total loans past due 30 days or more and accruing | $11401 | $3896 | 0.98% | 0.33% |

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Past due loans remain at manageable levels. The increase in total loans past due 30 days or more and accruing between December 31, 2025 and March 31, 2026 was largely due to an increase in 30-89 days past due stemming from the increase in the commercial real estate, 1-4 family including construction and commercial & national credit & SBA/government guaranteed credits past due 30-59 days, coupled with an increase in commercial real estate credits that were 90 days or more past due and accruing. Management believes collateral coverage will prevent or mitigate losses on these loans.

For more information about past due loans, please refer to "<u>[Note 3 – Loans and Allowance for Credit Losse](#i7085be1544ff4b7d9fd2b45737811e0a_115)[s](#i7085be1544ff4b7d9fd2b45737811e0a_115)</u>" to our interim consolidated financial statements.

***Nonperforming Assets***

The following table sets forth information about non-performing assets, including loans on nonaccrual, accruing loans that are greater than or equal to 90 days past due, and other real estate owned. The accrual of interest on non-performing loans is generally discontinued at the time the loan is ninety days delinquent unless the credit is well secured and in the process of collection.

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| | | |
|:---|:---|:---|
| | **For the Period Ended** | **For the Period Ended** |
| | **March 31, 2026** | **December 31, 2025** |
| | **(Dollars in thousands)** | **(Dollars in thousands)** |
| **Non-performing assets** | | |
| Nonaccrual loans | $43274 | $36467 |
| Loans past due 90 days or more and accruing interest | 3440 | 32 |
| Total non-performing loans | 46714 | 36499 |
| Other real estate owned | 10201 | 9966 |
| **Total non-performing assets**  | $56915 | $46465 |
| Non-performing loans to total gross loans | 4.01% | 3.13% |
| Non-performing assets to total assets | 3.18% | 2.64% |
| Allowance for credit losses on loans to non-performing loans | 38.46% | 48.95% |
| Allowance for credit losses on loans to total gross loans | 1.54% | 1.53% |
| Net charge-offs to total gross loans | 0.01% | -% |

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Non-performing loans were $46.7 million at March 31, 2026, an increase of $10.2 million, or 28.0%, from $36.5 million at December 31, 2025. The increase in nonaccrual loans was largely due to one multi-family relationship with a total outstanding loan balance of $5.8 million, while the increase in loans past due 90 days or more and accruing interest was due to one commercial real estate relationship with a total outstanding loan balance of $3.4 million.

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Other real estate owned was $10.2 million at March 31, 2026, an increase of $235 thousand, or 2.4%, from $10.0 million at December 31, 2025. We believe this number could fluctuate both higher and lower throughout 2026, but at this time the aggregate losses from the current properties would be contained.

Allowance for credit losses on loans to gross total loans was 1.54% at March 31, 2026, compared to 1.53% at December 31, 2025. As of March 31, 2026 and December 31, 2025, we believe the allowance for credit losses on loans is adequate based on our evaluation of the portfolio.

***Funding Sources***

The Company's primary sources of funds are deposits (including brokered deposits), FHLB advances, subordinated debentures, and proceeds from principal and interest payments on loans and investment securities. While maturities and scheduled amortization of loans are a predictable source of funds, deposit inflows are influenced by market interest rates, economic conditions, and customer behavior, all of which can change over time.

***Deposits***

The composition and cost of our deposit base are important components in analyzing our net interest margin and balance sheet liquidity. Our liquidity is impacted by the volatility of deposits, given the risk of that money leaving our Bank for rate-related or other reasons. Deposits can be adversely affected if economic conditions weaken, especially in the markets where we operate.

Deposits are set forth in the following table for the periods indicated.

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **March 31, 2026** | **December 31, 2025** | **March 31, 2026** | **December 31, 2025** | **Increase (Decrease)** | **Increase (Decrease)** |
|<br>**Deposit Category** | **(Dollars in thousands)** | **(Dollars in thousands)** | **Percent of Total Deposits** | **Percent of Total Deposits** | **Amount** | **Percentage** |
| Noninterest bearing | $227562 | $245236 | 15.0% | 16.3% | $(17674) | (7.2)% |
| Interest bearing | 434559 | 387439 | 28.5% | 25.7% | 47120 | 12.2% |
| Money market | 104894 | 104583 | 6.9% | 6.9% | 311 | 0.3% |
| Savings | 293673 | 276727 | 19.3% | 18.4% | 16946 | 6.1% |
| Brokered | 74827 | 106263 | 4.9% | 7.1% | (31436) | (29.6)% |
| Time of $250 and under | 262493 | 269588 | 17.3% | 17.9% | (7095) | (2.6)% |
| Time over $250 | 122609 | 117235 | 8.1% | 7.8% | 5374 | 4.6% |
| Total deposits | $1520617 | $1507071 | 100.0% | 100.0% | $13546 | 0.9% |

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Total deposits were $1.52 billion at March 31, 2026, an increase of $13.5 million, or 0.9%, from $1.51 billion at December 31, 2025. The increase in total deposits was primarily due to increases in interest bearing and savings deposits, partially offset by a reduction in noninterest bearing deposits and brokered deposits.

The Company operates an embedded finance division, partnering with several corporate Fintech clients which offer different payment sources and business products. This division offers deposit accounts to customers through this platform which are included as part of the Demand, interest bearing deposit category. The interest rates on these deposits vary by partner as a discount to the Effective Federal Funds Rate. The weighted average rate on the deposits is not significantly higher than the weighted average rate on the community bank deposits. Total deposits included as part of this division were $107.6 million at March 31, 2026, a decrease of $8.8 million, or (7.6)%, from $116.4 million at December 31, 2025. The current relationships do not experience materially different balance volatility when compared to the non-finance division deposits; future relationships may act differently. The Company also has the ability to move most of these deposits on or off the balance sheet through deposit network relationships, as appropriate, with the most common approach being one-way sweeps. Total deposits moved off-balance sheet through the deposit network relationships at March 31, 2026 and December 31, 2025 were $197.2 million and $175.7 million, respectively. The Company intends to focus on growing these deposits further in the current and future periods. Further note that these deposits comprised 7.1% and 7.7% of total deposits as of March 31, 2026 and December 31, 2025, respectively.

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The following table presents average deposit balances and the average rate paid on those balances for the periods indicated. These average deposit balances and average rates paid should be read in conjunction with the net interest margin table included elsewhere in this document.

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| | | | | |
|:---|:---|:---|:---|:---|
| | **At or for the Three Months Ended** | **At or for the Three Months Ended** | **At or for the Three Months Ended** | **At or for the Three Months Ended** |
| | **March 31, 2026** | **March 31, 2026** | **March 31, 2025** | **March 31, 2025** |
|<br>**Deposit Category (Dollars in thousands)** | **Average Deposits** | **Average Interest Rate** | **Average Deposits** | **Average Interest Rate** |
| Noninterest bearing | $240319 | -% | $245311 | -% |
| Interest bearing | 389053 | 2.03% | 381106 | 2.44% |
| Money market | 105419 | 2.10% | 116192 | 2.40% |
| Savings | 289886 | 2.38% | 227349 | 2.70% |
| Brokered | 90463 | 3.99% | 169728 | 4.48% |
| Time | 387633 | 3.84% | 439572 | 4.56% |
| Total average deposits / rate | $1502773 | 2.36% | $1579258 | 2.90% |

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Total average deposits were $1.5 billion at March 31, 2026, a decrease of $76.5 million, or (4.8)%, from $1.6 billion at March 31, 2025, respectively. The rate on total average deposits decreased 54 basis points in the first quarter of 2026 to 2.36%, compared to 2.90% in the first quarter of 2025, primarily reflecting broad repricing across all interest-bearing deposit categories as market interest rates moderated from prior-year levels. Average rates declined for interest-bearing, money market, and savings deposits, driven by reduced pricing pressure on transactional and liquid balances, while time deposits and brokered deposits remained the highest-cost categories despite meaningful declines in balances. Overall, the decrease in deposit costs reflects lower market rates and a shift away from the peak pricing environment experienced in previous years, when customers favored higher-yielding deposit products.

Core deposits are defined by the banking regulators as all deposit accounts of $250,000 and less, minus any fully insured brokered deposits of $250,000 or less. Core deposits increased, while our use of brokered deposits has continued to decline in 2026. Information about our core deposits and brokered deposits follows as of the dates indicated:

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| | | |
|:---|:---|:---|
| **Core and Brokered Deposits (Dollars in thousands)** | **March 31, 2026** | **December 31, 2025** |
| Core deposits | $1323181 | $1283573 |
| % of total deposits | 87.0% | 85.2% |
| Change from prior year end balance sheet date | $39608 | $2218 |
| % Change from prior year end balance sheet date | 3.1% | 0.2% |
| Brokered deposits | $74827 | $106263 |
| % of total deposits | 4.9% | 7.1% |

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FDIC deposit insurance covers $250,000 per depositor, per FDIC-insured bank, for each account ownership category. Maturities of time deposits of over $250,000, for the period indicated, are shown below:

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| | |
|:---|:---|
| **Maturing Period (Dollars in thousands)** | **March 31, 2026** |
| Maturing in: |  |
| &nbsp;&nbsp;&nbsp;&nbsp;3 months or less | $36568 |
| &nbsp;&nbsp;&nbsp;&nbsp;3 months to 6 months | 31400 |
| &nbsp;&nbsp;&nbsp;&nbsp;6 months to 1 year | 47197 |
| &nbsp;&nbsp;&nbsp;&nbsp;1 year or greater | 7444 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total | $122609 |

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***Borrowings***

The Company maintains a line of credit with various covenants, primarily consisting of capital ratios and loan performance ratios. The Company held a line of credit for $15 million at December 31, 2025, which had a due date of April 1, 2026. The Company paid-off the line of credit in January 2026. There was no line of credit outstanding at March 31, 2026, compared to $14.5 million outstanding as of December 31, 2025. See further discussion in <u>[Note 9. Notes Payable](#i7085be1544ff4b7d9fd2b45737811e0a_136)</u>.

The Company utilizes FHLB advances and had balances of $70.0 million outstanding as of March 31, 2026 and December 31, 2025, respectively. FHLB advances were secured by specific FHLB stock and qualifying consumer, commercial and agricultural mortgage loans with a carrying amount of approximately $299.0 million and $308.4 million as of March 31, 2026 and December 31, 2025, respectively. See further discussion in <u>[Note 7. Federal Home Loan Bank Advances and Federal Funds Lines](#i7085be1544ff4b7d9fd2b45737811e0a_130)</u>.

On January 15, 2026, we entered into Subordinated Note Purchase Agreements with eighteen purchasers pursuant to which the Company offered and sold $33,500,000 in aggregate principal amount of its 9.00% Fixed-to-Floating Rate Subordinated Notes Due 2036. The Company paid placement agency fees of $670,000, resulting in net proceeds of $32,830,000. Further, the Company paid approximately $870,000 in subordinated debt issuance costs in the first quarter of 2026 associated with this transaction.

Lastly, the Company has junior subordinated debentures due to a 100% owned, nonconsolidated subsidiary of the Company. The debentures were issued on June 21, 2007, in conjunction with the Trust's issuance of 9,000,000 shares of Company Obligated Mandatorily Redeemable Preferred Securities. See further discussion in <u>[Note 10. Subordinated Debentures and Junior Subordinated Debentures](#i7085be1544ff4b7d9fd2b45737811e0a_139)</u>.

***Off-Balance Sheet Arrangements***

As a provider of financial services, we issue standby letters of credit. Standby letters of credit are irrevocable conditional commitments issued by the Bank to guarantee the performance of a customer to a third party. Financial standby letters of credit are primarily issued to support public and private borrowing arrangements, including commercial paper, bond financing and similar transactions. Performance standby letters of credit are issued to guarantee performance of certain customers under nonfinancial contractual obligations. The credit risk involved in issuing standby letters of credit is essentially the same as that involved in extending loans to customers. Should the Bank be obligated to perform under the standby letters of credit, the Bank may seek recourse from the customer for reimbursement of amounts paid. The Company had outstanding standby letters of credit amounting to $4.4 million and $4.6 million at March 31, 2026 and December 31, 2025, respectively.

The Company had outstanding loan commitments, aggregating $265.9 million and $259.7 million at March 31, 2026 and December 31, 2025, respectively. These commitments consist primarily of unfunded lines of credit to borrowers and commitments to make loans.

The Company also has the ability to move most of the deposits from our embedded finance division on or off the balance sheet through deposit network relationships, as appropriate, with the most common approach being one-way sweeps. Total deposits moved off-balance sheet through the deposit network relationships at March 31, 2026 and December 31, 2025 were $197.2 million and $175.7 million, respectively.

These off-balance sheet commitments are considered in our liquidity management process because they could require funding during periods of increased customer demand or market stress. At March 31, 2026, the $265.9 million of outstanding loan commitments and $4.4 million of standby letters of credit were supported by available liquidity sources, including cash and cash equivalents, proceeds from loan and securities cash flows, federal funds lines totaling $30.0 million, Federal Reserve Bank discount window capacity of approximately $95.8 million, additional FHLB borrowing capacity of $115.5 million and access to brokered deposit relationships subject to applicable regulatory requirements and internal policy limits.

Management estimates that approximately 51% of outstanding loan commitments will be funded over the next twelve months based on historical utilization, borrower behavior, credit availability and current pipeline

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expectations. In a stress scenario involving elevated deposit outflows, higher line utilization and reduced market liquidity, management expects to fund commitments through cash on hand, securities cash flows or sales, FHLB advances, federal funds lines, the Federal Reserve Bank discount window and brokered deposits. If utilization materially exceeds historical or projected levels, or if access to one or more funding sources becomes limited, the Company could experience increased funding costs or liquidity pressure.

We anticipate that sufficient funds will be available to meet current loan commitments. Commitments generally have fixed expiration dates or other termination clauses. Since many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements.

As required by ASC 326, we maintain an allowance for expected credit losses on off-balance sheet commitments. The allowance balance is included with other liabilities on our balance sheet. The allowance balance is calculated in the same manner as our allowance for credit losses on loans, except we estimate the percentage of off-balance sheet commitments that we will actually fund in the future. Our allowance for credit losses on off-balance sheet commitments was $599 thousand at March 31, 2026, a decrease of $37 thousand from $636 thousand at December 31, 2025. There were no write-offs of any off-balance sheet commitments during the three months ended March 31, 2026 or the year ended December 31, 2025.

***Capital Resources***

***Contractual Obligations***

There have been no material changes to the Company's contractual obligations existing at December 31, 2025, as disclosed elsewhere herein, outside the Fixed-to-Floating Rate Subordinated Notes Due 2036 that were entered into on January 15, 2026.

***Stockholders' Equity & Capital Adequacy***

The following table summarizes certain capital ratios and per share amounts of the Company for the periods presented:

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| | | |
|:---|:---|:---|
| | **March 31, 2026** | **December 31, 2025** |
| Total risk-based capital ratio | 14.20% | 12.34% |
| Tier 1 risk-based capital ratio | 10.44% | 11.10% |
| Common equity tier 1 risk-based capital ratio | 9.74% | 10.43% |
| Tier 1 leverage ratio | 7.58% | 8.30% |
| Book value per share | $18.13 | $18.85 |

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<u>Stockholders' Equity</u>: Total stockholders' equity was $134.8 million as of March 31, 2026, compared to $137.8 million as of December 31, 2025, a decrease of $3.0 million, or (2.2)%. In January 2026, the Company sold AFS securities as part of a balance sheet repositioning, which resulted in the recognition of a realized loss of $15.7 million from the sale. This sale of securities was the primary driver of the decline in retained earnings stemming from the net loss and the decrease in accumulated other comprehensive loss stemming from the change in the unrealized losses on AFS securities.

<u>Capital Adequacy</u>: The Federal Reserve uses capital adequacy guidelines in its examination and regulation of bank holding companies and their subsidiary banks. Risk-based capital ratios are established by allocating assets and certain off-balance-sheet commitments into four risk-weighted categories. These balances are then multiplied by the factor appropriate for that risk-weighted category. Pursuant to the Basel III Rules, the Company and the Bank, respectively, are subject to regulatory capital adequacy requirements promulgated by the Federal Reserve and the FDIC. Failure by the Company or the Bank to meet minimum capital requirements could result in certain mandatory and discretionary actions by our regulators that could have a material adverse effect on our consolidated financial statements. Under the capital requirements and the regulatory framework for prompt corrective action, the Company and the Bank must meet specific capital guidelines that involve quantitative measures of the Company's and the

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Bank's assets, liabilities and certain off-balance-sheet items as calculated under regulatory accounting practices. The Company's and the Bank's capital amounts and classifications are also subject to qualitative judgments by regulators about components, risk weightings and other factors. Quantitative measures established by regulation to ensure capital adequacy require the Company and the Bank to maintain minimum amounts and ratios of total risk-based capital, Tier 1 capital (as defined in the regulations) and Common Equity Tier 1 Capital (as defined in the regulations) to risk-weighted assets (as defined in the regulations), and a leverage ratio consisting of Tier 1 capital (as defined in the regulations) to average assets (as defined in the regulations). As of March 31, 2026, the Company and the Bank exceeded federal regulatory minimum capital requirements to be classified as well-capitalized (including the capital conservation buffer). Please refer to <u>[Note 12: Regulatory Matters](#i7085be1544ff4b7d9fd2b45737811e0a_145)</u> for additional information related to our regulatory capital ratios.

In order to be a "well-capitalized" depository institution, the Company and the Bank must maintain a Common Equity Tier 1 capital ratio of 6.5% or more; a Tier 1 capital ratio of 8% or more; a total capital ratio of 10% or more; and a leverage ratio of 5% or more. A capital conservation buffer, comprised of 2.5% of Common Equity Tier 1 Capital, is also established above the regulatory minimum capital requirements.

***Liquidity***

Liquidity refers to our ability to fund operations, to meet depositor withdrawals, to provide for our customers' credit needs, and to meet maturing obligations and existing commitments. Our liquidity principally depends on cash flows from operating activities, investment in and maturity of assets, changes in balances of deposits and borrowings, and our ability to borrow funds.

Net cash inflows from operating activities were $4.9 million during the three months ended March 31, 2026, compared with $1.2 million in the three months ended March 31, 2025. Net cash inflows from investing activities were $53.5 million during the three months ended March 31, 2026, compared with net cash inflows of $69.5 million in the three months ended March 31, 2025. Net cash inflows from financing activities were $31.7 million during the three months ended March 31, 2026, compared with net cash outflows of $42.2 million in the three months ended March 31, 2025.

To manage liquidity risk, the Bank has several sources of liquidity in place to maximize funding availability and increase the diversification of funding sources. The criteria for evaluating the use of these sources include volume concentration (percentage of liabilities), cost, volatility, and the fit with the current asset/liability management plan. The Bank has a limitation of wholesale liquidity/total assets of 40% and a sub-limitation of brokered CDs/total assets of 25%. These acceptable sources of liquidity include:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Federal Funds Lines

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Federal Reserve Bank Discount Window;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Federal Home Loan Bank Advances;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Brokered Deposits; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Notes Payable

<u>Federal Funds Lines</u>: Federal funds positions provide a source of short-term liquidity funding for the Bank. Unsecured federal funds purchased lines are viewed as a volatile liability and are not used as a long-term funding solution, especially when used to fund long-term assets. The current federal funds purchased limit is the amount of established federal funds lines. As of March 31, 2026, the Bank maintains several unsecured federal funds lines totaling $30.0 million, which are tested annually to ensure availability. There were no amounts outstanding under such lines at March 31, 2026 and December 31, 2025.

<u>Federal Reserve Bank Discount Window</u>: The Federal Reserve Bank Discount Window is an additional source of liquidity, particularly during periods of economic uncertainty or stress. As of March 31, 2026, the Bank had investment securities with an approximate market value of $95.8 million, pledged to the Federal Reserve Bank of

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Chicago for liquidity purposes, which represents the borrowing capacity. There were no outstanding borrowings through the FRB Discount Window at March 31, 2026 and December 31, 2025.

<u>Federal Home Loan Bank Advances</u>: FHLB advances provide both a source of liquidity and long-term funding for the Bank. All credit exposure, including advances and federal funds borrowings from the FHLBDM, are collateralized by loans held for investment, equal to various percentages of the total outstanding notes. As of March 31, 2026 and December 31, 2025, the Bank had FHLB advances of $70.0 million outstanding, due in 2026 and 2027. The additional borrowing capacity was $115.5 million at March 31, 2026.

<u>Brokered Deposits</u>: The Bank has brokered time deposit and non-maturity deposit relationships available to diversify its funding sources. Brokered deposits offer several benefits relative to other funding sources, such as maturity structures which cannot be duplicated in the current retail market, deposit gathering which does not cannibalize the existing deposit base, the unsecured nature of these liabilities, and the ability to quickly generate funds. The Bank's internal policy limits the use of brokered deposits as a funding source to no more than 25% of total assets. Board approval is required to exceed this limit. The Bank must maintain a "well capitalized" rating to access brokered deposits without FDIC waiver. An "adequately capitalized" rating requires an FDIC waiver to access brokered deposits and an "undercapitalized" rating prohibits the Bank from using brokered deposits. At March 31, 2026, the Company held $74.8 million of brokered deposits and $106.3 million as of December 31, 2025.

<u>Notes Payable</u>: Notes payable provided an additional source of liquidity for the Company. The Company previously maintained a $15.0 million unsecured line of credit with another financial institution, which was used for short-term liquidity management purposes. As of December 31, 2025, the Bank had $14.5 million outstanding under the line of credit. The line of credit was paid off in January 2026, and as of March 31, 2026, the Bank had no amounts outstanding. The note previously bore interest at a variable rate.

Liquidity management is a daily function. Excess funds are generally invested in short-term investments. Cash inflows are typically generated from earnings, loan payments, mortgage loan sales, maturing securities, and increased deposit balances and borrowings. Debt securities can also be sold to provide funds. The Bank's cash outflows are primarily for loan advances, security purchases, deposit withdrawals, and maturities of other borrowings.

Management believes the Bank's liquid assets and unused borrowing capacity are sufficient for our operations, including the ability to fund loan originations and meet deposit outflows.

We expect our material cash requirements over the next twelve months to include funding loan originations and unfunded commitments, meeting deposit withdrawals, paying operating expenses and public-company costs, servicing $70.0 million of FHLB advances due in 2026 and 2027 and satisfying interest obligations on outstanding borrowings, including the 9.00% Fixed-to-Floating Rate Subordinated Notes Due 2036. Longer-term material cash requirements include repayment or refinancing of the subordinated notes due 2036, junior subordinated debentures and any other borrowings outstanding from time to time, as well as ongoing investments in compliance, technology, personnel and banking operations. We expect to meet these requirements through cash and cash equivalents, operating cash flows, loan and securities cash flows, deposit inflows, FHLB borrowing capacity, federal funds lines, the Federal Reserve Bank discount window, brokered deposits and, if available and appropriate, capital markets transactions. Based on currently available information, management does not anticipate material liquidity constraints following the IPO, although liquidity could be adversely affected by unexpected deposit outflows, higher-than-expected commitment utilization, deterioration in asset quality, reduced borrowing capacity or unfavorable market conditions.

***Comparison of Results For The Three Months Ended March 31, 2026 and 2025***

***Summary of Performance***

Net loss for the three months ended March 31, 2026 was $12.6 million, an increase in net loss of $12.4 million, compared to the net loss of $192.0 thousand for the three months ended March 31, 2025. Adjusted earnings for the three months ended March 31, 2026 was an adjusted loss of $570 thousand, a decrease of $0.4 million compared to the adjusted loss of $192.0 thousand for the three months ended March 31, 2025. Adjusted earnings is a non-GAAP

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financial measure - see the "Non-GAAP Presentations" section for a reconciliation to the most comparable GAAP equivalent measure and an explanation of why management believes the measure is useful to investors. The increase in net loss was primarily driven by the $15.4 million decrease in noninterest income, coupled with the increase of $1.4 million in noninterest expense. Partially offsetting these increases to the net loss, was the decrease of $786.0 thousand in the provision for credit losses. Noninterest income decreased primarily due to the first quarter of 2026 sale of available-for-sale securities as part of a balance sheet repositioning, which resulted in the recognition of a loss on sale of $15.7 million. The increase in noninterest expense was primarily driven by a $1.4 million increase in other noninterest expense, driven by higher legal fees and penalties, stemming from the resale registration process.

***Summary of Net Interest Income and Net Interest Margin***

Net interest income is calculated as interest received on interest-earning assets less total interest payments on interest-bearing liabilities for the reporting period. Net interest income for the three months ended March 31, 2026 was $11.0 million, a decrease of $167 thousand, or (1.5)%, compared to $11.1 million for the three months ended March 31, 2025. The decrease in net interest income was primarily the result of a decrease of $2.4 million in interest income on interest-earning assets. This decrease in the interest income on average interest-earning assets was driven by a decrease of $3.8 million in loan interest income, stemming from lower loan volumes and yields. Partially offsetting this decline in loan interest income was an increase of $523 thousand in interest income on securities and an increase of $906 thousand in interest income from federal funds sold. An additional offset to the overall decline in interest income from average interest-earning assets was the decline of $2.2 million in interest expense on interest-bearing liabilities, stemming primarily from the $2.6 million decrease in interest expense on interest-bearing deposits.

Net interest margin increased 14 basis points to 2.87% for the three months ended March 31, 2026, from 2.73% for the three months ended March 31, 2025. The increase in net interest margin was largely due to the decrease of 63 basis points in interest-bearing deposit costs. Partially offsetting this decline, which resulted in an increase to net interest margin, was the increase of 281 basis points in total borrowed funds cost and the decline of 22 basis points in interest earning assets yields, stemming primarily from the decline in loan yield.

The Company expects continued net interest margin improvement as new loans are being originated at higher rates, replacing lower yielding loans. In addition, we also expect net interest margin improvement from the balance sheet restructure in the first quarter of 2026, which included the sale of available-for-sale securities and the addition of $33.5 million in subordinated notes, coupled with the resolution of nonperforming assets and deposit pricing discipline.

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The following table sets forth information related to the Company's average balance sheet, average yields on assets, and average rates of liabilities for the periods indicated. The Company derived these yields by dividing income or expense by the average balance of the corresponding assets or liabilities. The Company derived average balances from the daily balances throughout the periods indicated. Average loan balances include loans that have been placed on nonaccrual, while interest previously accrued on these loans is reversed against interest income.

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** |
| | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** | **March 31, 2025** | **March 31, 2025** | **March 31, 2025** |
| | **Average <br>Balance** | **Interest Income / <br>Expense** | **Average <br>Yield / <br>Rate** | **Average Balance** | **Interest Income / <br>Expense** | **Average <br>Yield / <br>Rate** |
| | **(Dollars in thousands)** | **(Dollars in thousands)** | **(Dollars in thousands)** | **(Dollars in thousands)** | **(Dollars in thousands)** | **(Dollars in thousands)** |
| **Assets** | | | | | | |
| Loans, including fees | $1145061 | $16485 | 5.84% | $1366978 | $20265 | 6.01% |
| Taxable investment securities | 182280 | 2819 | 6.27% | 154090 | 2103 | 5.53% |
| Tax-exempt investment securities | 97482 | 849 | 3.53% | 119336 | 1042 | 3.54% |
| &nbsp;&nbsp;&nbsp;&nbsp;Total securities held for investment | 279762 | 3668 | 5.32% | 273426 | 3145 | 4.66% |
| Federal funds sold | 123323 | 1047 | 3.44% | 13607 | 141 | 4.20% |
| Total interest-earning assets | 1548146 | $21200 | 5.55% | 1654011 | $23551 | 5.77% |
| Other assets | 223759 |  |  | 181054 |  |  |
| Total assets | $1771905 |  |  | $1835065 |  |  |
| **Liabilities and stockholders' equity** |  |  |  |  |  |  |
| Deposits |  |  |  |  |  |  |
| Interest bearing | $389053 | $1952 | 2.03% | $381106 | $2293 | 2.44% |
| Money market | 105419 | 545 | 2.10% | 116192 | 687 | 2.40% |
| Savings | 289886 | 1698 | 2.38% | 227349 | 1513 | 2.70% |
| Brokered | 90463 | 889 | 3.99% | 169728 | 1874 | 4.48% |
| Time deposits | 387633 | 3667 | 3.84% | 439572 | 4941 | 4.56% |
| Total interest-bearing deposits | 1262454 | 8751 | 2.81% | 1333947 | 11308 | 3.44% |
| Federal funds purchased | - | - | -% | 53 | - | -% |
| Other borrowings | 81696 | 1492 | 7.41% | 98649 | 1119 | 4.60% |
| &nbsp;&nbsp;&nbsp;&nbsp;Total borrowed funds | 81696 | 1492 | 7.41% | 98702 | 1119 | 4.60% |
| Total interest-bearing liabilities | $1344150 | $10243 | 3.09% | $1432649 | $12427 | 3.52% |
| Noninterest bearing demand deposits | 240319 |  |  | 245311 |  |  |
| Other noninterest bearing liabilities | 51536 |  |  | 19977 |  |  |
| Total liabilities | 1636005 |  |  | 1697937 |  |  |
| Stockholders' equity | 135900 |  |  | 137128 |  |  |
| Total liabilities and stockholders' equity | $1771905 |  |  | $1835065 |  |  |
| Net interest income / spread |  | $10957 | 2.46% |  | $11124 | 2.26% |
| Net interest margin |  |  | 2.87% |  |  | 2.73% |
| Cost of funds<sup>(1)</sup> |  |  | 2.62% |  |  | 3.00% |

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__________________

(1)Cost of funds is calculated as total interest expense divided by the sum of average total deposits and borrowed funds.

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The volume and rate variances table below indicates the difference in interest earned and interest expense for each major category of interest-earning assets and interest-bearing liabilities, and the amount of such change attributable to changes in average balances (volume) or average interest rates. Volume variances are equal to the increase or decrease in average balance multiplied by the average rate in the prior period. Changes attributable to rate variances are equal to the increase or decrease in the average interest rate multiplied by the prior period average balance. Changes attributable to both rate and volume have been allocated proportionately to the change due to volume and the change due to rate.

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| | | | |
|:---|:---|:---|:---|
| | **Three Months Ended March 31, 2026 and 2025 Change Due To** | **Three Months Ended March 31, 2026 and 2025 Change Due To** | **Three Months Ended March 31, 2026 and 2025 Change Due To** |
| | **Average Volume** | **Average Yield/Cost** | **Net Change** |
| | **(Dollars in thousands)** | **(Dollars in thousands)** | **(Dollars in thousands)** |
| **Increase (decrease) in interest income** | | | |
| Loans, including fees | $(3209) | $(571) | $(3780) |
| Taxable investment securities | 414 | 302 | 716 |
| Tax-exempt investment securities | (190) | (3) | (193) |
| &nbsp;&nbsp;&nbsp;&nbsp;Total securities held for investments | 224 | 299 | 523 |
| Federal funds sold | 927 | (21) | 906 |
| &nbsp;&nbsp;&nbsp;&nbsp;Change in interest income | $(2058) | $(293) | $(2351) |
| **Increase (decrease) in interest expense** |  |  |  |
| Deposits |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest-bearing | $49 | $(390) | $(341) |
| &nbsp;&nbsp;&nbsp;&nbsp;Money market | (60) | (82) | (142) |
| &nbsp;&nbsp;&nbsp;&nbsp;Savings | 328 | (143) | 185 |
| &nbsp;&nbsp;&nbsp;&nbsp;Brokered | (797) | (188) | (985) |
| &nbsp;&nbsp;&nbsp;&nbsp;Time | (544) | (730) | (1274) |
| Total interest bearing deposits | (1025) | (1532) | (2557) |
| Federal funds purchased | - | - | - |
| Other borrowings | (146) | 519 | 373 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total borrowed funds | (146) | 519 | 373 |
| &nbsp;&nbsp;&nbsp;&nbsp;Change in interest expense | (1171) | (1013) | (2184) |
| **Change in net interest income**  | $(887) | $720 | $(167) |
| **Percentage increase (decrease) in net increase income over prior period**  |  |  | (1.5)% |

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*Interest Income*

Total interest income was $21.2 million in the three months ended March 31, 2026, a decrease of $2.4 million, or (10.0)%, from $23.6 million for the same period in 2025. Total interest income decreased primarily due to a decrease in interest income on loans of $3.8 million, partially offset by an increase in interest income from total investment securities and federal funds sold of $523 thousand and $906 thousand, respectively.

Interest income on loans was $16.5 million in the three months ended March 31, 2026, a decrease of $3.8 million or (18.7)%, from $20.3 million for the same period in 2025. The decrease in interest income was driven by a $221.9 million decline in the average balance of loans and a 17 basis point decrease in the average rate earned on loans.

Interest income on securities held for investments was $3.7 million in the three months ended March 31, 2026, an increase of $523 thousand, or 16.6%, from $3.1 million for the same period in 2025. The increase in interest income on securities held for investment was consistent with the change in yield from 4.66% to 5.32%, coupled with an increase in the average securities held for investment, which were $279.8 million at March 31, 2026, an increase

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of $6.3 million, or 2.3%, from $273.4 million at March 31, 2025. The balance sheet repositioning that occurred in January 2026 partially contributed to the increase in securities yield discussed previously, coupled with purchases of higher-yielding securities throughout 2025.

*Interest Expense*

Total interest expense was $10.2 million in the three months ended March 31, 2026, a decrease of $2.2 million, or (17.6)%, from $12.4 million for the same period in 2025. Total interest expense decreased primarily due to a decrease in interest expense on deposits of $2.6 million, partially offset by an increase in interest expense of $373 thousand in total borrowed funds, primarily stemming from the subordinated debentures.

Interest expense on deposits was $8.8 million in the three months ended March 31, 2026, a decrease of $2.6 million or (22.6)%, from $11.3 million for the same period in 2025. The decrease in interest expense was consistent with the change in the average rate on total interest-bearing deposits, which decreased from 3.44% to 2.81% and the change in the average balances of total interest-bearing deposits, which decreased $71.5 million from the same period in 2025. Average interest-bearing checking deposits increased, while the average rate declined to 2.03% from 2.44%, which ultimately resulted in a decrease in interest-bearing checking deposits interest expense. Money market deposits declined in average balance, and the average rate decreased to 2.10% from 2.40%, resulting in a meaningful reduction in interest expense. Savings deposits increased in average balances while the average rate declined to 2.38% from 2.70%, reflecting repricing of balances while maintaining growth in lower-cost, relationship-based deposits. Brokered deposits declined significantly in average balances, and the average rate also decreased to 3.99% from 4.48%, reflecting lower wholesale funding costs and reduced reliance on brokered funding. Average balances of time deposits also declined significantly, with a similar change in the average rate, which decreased to 3.84% from 4.56%. This decline in both balances and rates of brokered and time deposits were the largest contributors to the reduction in total deposit costs.

Interest expense on total borrowed funds was $1.5 million in the three months ended March 31, 2026, an increase of $373 thousand, or 33.3%, from the same period in 2025. The increase in interest expense on total borrowed funds was consistent with change in average rates from 4.60% to 7.41%, partially offset by the decrease in total borrowed funds outstanding.

*Provision for Credit Loss*

Credit risk is inherent in the business of making loans. As discussed in the Critical Accounting Policies and Estimates section and the notes to our interim consolidated financial statements included herein, the Company maintains an allowance for credit losses on loans through charges or credits to earnings, which are presented in the consolidated statements of operations as provision for credit losses. Determining the appropriate level of the allowance involves a high degree of management judgment and is based upon historical and projected losses in the loan portfolio, including the fair value of collateral or discounted cash flows of specifically identified impaired loans. This process, by its nature, creates variability in the amount and frequency of charges or credits to the Company's earnings. Specifically identifiable and quantifiable known losses are promptly charged off against the allowance. Subsequent recoveries, if any, are credited to the allowance.

For the three months ended March 31, 2026, the Company recorded a provision for credit losses of $125 thousand, a decrease of $786 thousand, or (86.3)%, compared to $911 thousand for the three months ended March 31, 2025. The allowance for credit losses was $18.0 million at March 31, 2026, an increase of $99 thousand, or 0.6%, compared to $17.9 million at December 31, 2025. The allowance for credit losses to total gross loans was 1.54% at March 31, 2026, which was consistent with the ratios of 1.53% at December 31, 2025.

Net charge-offs of $63 thousand were recorded during the three months ended March 31, 2026, a decrease of $38 thousand, or (37.6)%, compared to $101 thousand for the same period of 2025.

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***Noninterest (Loss) Income***

The following table presents the Company's various components of noninterest (loss) income:

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** | **Increase (Decrease)** | **Increase (Decrease)** |
| | **March 31, 2026** | **March 31, 2025** | **Amount** | **Percentage** |
| | **(Dollars in thousands)** | **(Dollars in thousands)** | **(Dollars in thousands)** | |
| **Noninterest (loss) income** | | | | |
| Trust fees | $187 | $213 | $(26) | (12.2)% |
| Brokered service commissions | 490 | 455 | 35 | 7.7% |
| Service charges on deposit accounts | 304 | 244 | 60 | 24.6% |
| Net gains on mortgage loan sales | 66 | 100 | (34) | (34.0)% |
| Net gains on SBA and USDA loan sales | 9 | 17 | (8) | (47.1)% |
| Net realized (losses) gains on sale of available-for-sale debt securities | (15690) | - | (15690) | (n/m) |
| Unrealized (losses) gains on equity securities | (40) | 30 | (70) | (233.3)% |
| Other noninterest income | 1932 | 1587 | 345 | 21.7% |
| Total noninterest (losses) income | $(12742) | $2646 | $(15388) | (581.6)% |

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_________________

(n/m) - not meaningful

Total noninterest (loss) income decreased primarily due to the first quarter of 2026 sale of available-for-sale securities as part of a balance sheet repositioning strategy, which resulted in the recognition of a loss on sale of $15.7 million recorded in "net realized (losses) gains on sale of available-for-sale debt securities." Management undertook the repositioning to improve prospective asset yields, enhance balance sheet flexibility and support the net interest margin outlook by redeploying proceeds into cash, higher-yielding earning assets and other liquidity or investment opportunities consistent with the Company's asset-liability management objectives. The realized loss reduced current-period earnings and retained earnings, but management expects the redeployment of proceeds, together with continued deposit pricing discipline and higher-rate loan originations, to support net interest margin improvement over time. Excluding the loss from the sale of securities, total noninterest income for the first quarter of 2026 was steady, with a slight increase compared to the corresponding period of the prior year.

Other noninterest income includes several items, such as debit card income, ATM fees, merchant services income, income from our finance division, banked-owned life insurance, and other fee income.

***Noninterest Expense***

The following table presents the Company's components of noninterest expense:

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** | **Increase (Decrease)** | **Increase (Decrease)** |
|<br>**Noninterest expense** | **March 31, 2026** | **March 31, 2025** | **Amount** | **Percentage** |
| **(Dollars in thousands)** | | | | |
| Salaries and employee benefits | $7747 | $7799 | $(52) | (0.7)% |
| Occupancy | 1038 | 963 | 75 | 7.8% |
| Furniture, equipment and software expense | 1658 | 1701 | (43) | (2.5)% |
| Net losses on sales of other real estate and real estate expense | 32 | 37 | (5) | (n/m) |
| Other noninterest expense | 4449 | 3008 | 1441 | 47.9% |
| Total noninterest expense | $14924 | $13508 | $1416 | 10.5% |

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_________________

(n/m) - not meaningful

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Total noninterest expense was $14.9 million during the three months ended March 31, 2026, an increase of $1.4 million, or 10.5%, from $13.5 million during the same period in 2025. The increase in noninterest expense was primarily driven by a $1.4 million increase in other noninterest expense. Other noninterest expense includes several expense items, such as card services, consulting and legal fees, sponsorships and donations, audits and exams, FDIC assessment, processing fees, directors fees, and other miscellaneous expense. The increase in other noninterest expense was driven by higher legal fees and penalties, stemming from the resale registration process.

***Income Taxes***

The Company's income tax provision consists of federal, state, and local income taxes and reflects the effects of temporary differences between the financial statement carrying amounts and the tax bases of assets and liabilities, as well as permanent differences.

Due to net losses incurred in both 2026 and 2025, the Company recorded a credit for income taxes of $4.2 million and $0.5 million, for the three months ended March 31, 2026 and 2025, respectively. The Company's effective income tax rate was 25.1% and 70.4% for the three months ended March 31, 2026 and 2025, respectively. The change in the income tax provision and effective tax rate was primarily attributable to changes in pre-tax income, tax-exempt income levels, state tax impacts, and discrete items.

The Company recognizes deferred tax assets ("DTAs") and deferred tax liabilities ("DTLs") for the future tax consequences of temporary differences between the financial reporting and tax bases of assets and liabilities.

Significant components of the Company's DTAs and DTLs include:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Deferred tax assets:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Allowance for credit losses

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Net operating loss carryforwards

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Accrued compensation and benefits

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Securities fair value adjustments (AFS portfolio)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Deferred tax liabilities:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Intangible assets and goodwill

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• As of March 31, 2026, the Company reported net deferred tax assets of $15.2 million.

Management evaluates the realizability of DTAs on a semi-annual basis, considering both positive and negative evidence, including historical earnings, forecasted taxable income, tax planning strategies, and the reversal of existing taxable temporary differences.

Where it is more likely than not that some portion of DTAs will not be realized, a valuation allowance is recorded. As of March 31, 2026, the Company has recorded a valuation allowance of $0.7 million, primarily related to state NOLs with limited carryforward periods.

***Return on Assets and Equity***

Net income divided by average assets and net income to average stockholders' equity are important performance indicators. The following table presents information on our return on average assets, adjusted return on

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average assets, return on average equity, and adjusted return on average equity, for the three months ended March 31, 2026 and 2025.

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| | | |
|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** |
| | **March 31, 2026** | **March 31, 2025** |
| **Selected Financial Ratios** | | |
| Annualized return on average assets | (2.88)% | (0.04)% |
| Adjusted annualized return on average assets<sup>(1)</sup> | (0.13)% | (0.04)% |
| Annualized return on average equity | (37.60)% | (0.57)% |
| Adjusted annualized return on average equity<sup>(1)</sup> | (1.70)% | (0.57)% |

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_________________

(1)A non-GAAP financial measure - see the "Non-GAAP Presentations" section for a reconciliation to the most comparable GAAP equivalent measure.

Both the return on average assets and average equity decreased primarily as a result of an increased net loss during the three months ended March 31, 2026, compared to the same period in 2025, stemming primarily from the $15.7 million realized loss on sale of available-for-sale securities in the first quarter of 2026 due to the balance sheet repositioning. Net loss was $12.6 million during the three months ended March 31, 2026, an increase of $12.4 million, from $192 thousand during the same period in 2025. When excluding the loss on the sale of available-for-sale securities, both the adjusted return on average assets and the adjusted return on average equity increased during the three months ended March 31, 2026, compared to the same period in 2025 (A non-GAAP financial measure - see the "Non-GAAP Presentations" section for a reconciliation to the most comparable GAAP equivalent measure).

***Stockholders' Equity to Total Assets***

Stockholders' equity divided by total assets is an important performance indicator. The following table presents information on our stockholders' equity to total assets as of March 31, 2026 and December 31, 2025.

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| | | |
|:---|:---|:---|
| | **March 31, 2026** | **December 31, 2025** |
| Stockholders' equity to total assets | 7.53% | 7.83% |

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The ratio of stockholders' equity to total assets was 7.53% at March 31, 2026, a 30 basis point decrease, from 7.83% at December 31, 2025. The decrease was due to equity decreasing 2.2% while total assets increased 1.6%.

Stockholders' equity decreased during the first three months of 2026 primarily due to a decrease in retained earnings, partially offset by a reduction in accumulated other comprehensive loss. Retained earnings was $85.0 million at March 31, 2026, a decrease of $12.6 million, or (12.9)%, from $97.6 million at December 31, 2025. The decrease was due to the net loss of $12.6 million incurred during the three months ended March 31, 2026. Accumulated other comprehensive loss was $13.3 million at March 31, 2026, an improvement of $9.2 million, or 41.0%, from $22.5 million at December 31, 2025. The improvement was due to a decrease in unrealized loss on available-for-sale debt securities stemming from the first quarter of 2026 balance sheet repositioning and sale of available-for-sale debt securities during the first three months of 2026.

***Non-GAAP Presentations***

Certain ratios and amounts not in conformity with GAAP are provided to evaluate and measure the Company's operating performance and financial condition, including tangible book value per share, adjusted earnings, adjusted return on average assets and adjusted return on average equity. Management believes these ratios and amounts provide investors with useful information regarding the Company's profitability, financial condition and capital adequacy, consistent with how management evaluates the Company's financial performance. The following tables provide a reconciliation of each non-GAAP measure to the most comparable GAAP equivalent measure.

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| | | |
|:---|:---|:---|
| **Tangible Book Value Per Share** <br>**(dollars in thousands)** | **March 31, 2026** | **December 31, 2025** |
| Total stockholders' equity | $134779 | $137814 |
| Intangible assets, net | (19346) | (19468) |
| Tangible common equity | 115433 | 118346 |
| Shares outstanding (including Class A and Class B shares) | 7435 | 7311 |
| Book value per share | $18.13 | $18.85 |
| Tangible book value per share <sup>(1)</sup> | $15.53 | $16.19 |

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__________________

(1)Tangible common equity divided by shares outstanding

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| | | |
|:---|:---|:---|
| **Adjusted Earnings** <br>**(dollars in thousands)** | **March 31, 2026** | **March 31, 2025** |
| Net loss (income) | $(12601) | $(192) |
| Less: Net realized (losses) gains on sale of available-for-sale debt securities<sup>(1)</sup> | (12031) | - |
| Adjusted earnings | $(570) | $(192) |

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__________________

(1)The income tax rate utilized was the blended marginal tax rate.

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| | | |
|:---|:---|:---|
| **Adjusted Annualized Return on Average Assets**<br>**(dollars in thousands)** | **March 31, 2026** | **March 31, 2025** |
| Adjusted earnings | $(570) | $(192) |
| Average total assets | 1771905 | 1835065 |
| Adjusted annualized return on average assets<sup>(1)</sup> | (0.13)% | (0.04)% |

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__________________

(1)Annualized adjusted earnings divided by average total assets

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| | | |
|:---|:---|:---|
| **Adjusted Annualized Return on Average Equity**<br>**(dollars in thousands)** | **March 31, 2026** | **March 31, 2025** |
| Adjusted earnings | $(570) | $(192) |
| Average total stockholders' equity | 135900 | 137128 |
| Adjusted annualized return on average equity<sup>(1)</sup> | (1.70)% | (0.57)% |

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__________________

(1)Annualized adjusted earnings divided by average stockholders' equity

***Interest Rate Management***

The Company's market risk exposure is primarily that of interest rate risk, and we have established policies and procedures to monitor and limit earnings and balance sheet exposure to changes in interest rates. The Company does not engage in the trading of financial instruments, nor do we have exposure to currency exchange rates.

The principal objective of interest rate risk management (often referred to as "asset/liability management") is to manage the financial components of the Company in a manner that will optimize the risk/reward equation for earnings and capital in relation to changing interest rates. Interest rate risk is the potential of economic losses due to future interest rate changes. These economic losses can be reflected as a loss of future net interest income and/or a loss of current fair market values. The objective is to measure the effect on net interest income and to adjust the balance sheet to minimize the inherent risk while at the same time maximizing income. Management realizes certain risks are inherent, and that the goal is to identify and manage the risks.

The Company has implemented the following strategies to minimize the exposure of earnings and capital to changes in market interest rates:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Continued emphasis on growing and retaining core deposit relationships;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Maintaining capital levels that exceed federal regulatory levels for well-capitalized status;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Diversification of the loan portfolio to include various loan types, loan maturities, as well as variable and fixed interest rates;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Purchasing investment securities to match the current asset liability management objectives of the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Holding higher levels of liquidity (primarily cash and cash equivalents and available for sale investment securities), when appropriate;

These strategies position the Company to react to increases and decreases in market interest rates quickly and effectively.

The Company analyzes sensitivity to changes in interest rates through a net interest income model. Net interest income is the difference between the interest income we earn on our interest-earning assets, such as loans and securities, and the interest we pay on our interest-bearing liabilities, such as deposits and borrowings. Through the net interest income model, we estimate our net interest income for the next twelve months and compare that estimate with the net interest income calculated assuming various U.S. Treasury rate increases or decreases. For the purposes of the model, these U.S. Treasury rate increases or decreases are modeled to impact the yield curve instantaneously by various basis point increments, with changes in interest rates representing immediate and permanent, parallel shifts in the yield curve.

The table below sets forth, as of March 31, 2026, the calculation of the estimated changes in our net interest income that would result from the designated immediate changes in the United States Treasury yield curve.

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| | | |
|:---|:---|:---|
| | **Increase (Decrease) in**<br>**Estimated Net Interest Income** <sup>(1)</sup> | **Increase (Decrease) in**<br>**Estimated Net Interest Income** <sup>(1)</sup> |
| | **(Dollars in thousands)** | **(Dollars in thousands)** |
|<br>**Change in Interest Rates**<br>**(basis points)** | **Amount** | **Percent** |
| +300 | $1116 | 2.35% |
| +200 | 1149 | 2.42% |
| +100 | 689 | 1.45% |
| 0 | - | -% |
| -100 | (1409) | (2.97)% |
| -200 | (3474) | (7.33)% |
| -300 | (5739) | (12.11)% |

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__________________

(1)Computations of prospective effects of hypothetical interest rate changes are for illustrative purposes only, are based on numerous assumptions including relative levels of market interest rates, loan prepayments and deposit decay, and should not be relied upon as indicative of actual results. These projections are forward-looking and should be considered in light of the Cautionary Note Regarding Forward-Looking Statements appearing earlier in this document. Actual rates paid on deposits may differ from the hypothetical interest rates modeled due to competitive or market factors, which could reduce any actual impact on net interest income.

***Cash Flows***

Net cash provided by operating activities was $4.9 million during the three months ended March 31, 2026, an increase of 3.6 million, or 296.7%, from $1.2 million during the same period in 2025. Net income (loss) is a primary source of operating cash, as adjusted for certain items including gains on sales of assets, changes in income and expense accruals, and non-cash expenses such as depreciation and the provision for credit losses.

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Loans held for sale activity was another important source of cash from operating activities, as shown in the following table.

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| | | | |
|:---|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** | |
|<br>**Cash flows from loans held for sale** | **March 31, 2026** | **March 31, 2025** |<br>**Increase (Decrease)** |
| **(Dollars in thousands)** | | | |
| Proceeds from sale of loans held for sale | $6811 | $3845 | $2966 |
| Net gains on sale of loans | (75) | (117) | 42 |
| Origination of loans held for sale | (6261) | (3484) | (2777) |
| Net cash provided | $475 | $244 | $231 |

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Also contributing to the change in net cash provided by operating activities was the net realized loss on available-for-sale securities of $15.7 million during the three months ended March 31, 2026, compared to no net realized loss for the same period in 2025.

Net cash provided by investing activities was $53.5 million during the three months ended March 31, 2026, a decrease of $16.1 million, or 23.1%, from $69.5 million during the same period in 2025. The primary proceeds (use) of investing cash flows was changes in available-for-sale debt securities and net changes in loan balances.

Investing cash flows related to available-for-sale debt securities are summarized below.

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| | | | |
|:---|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** | |
|<br>**Cash flows from available-for-sale debt security purchases, sales and maturities** | **March 31, 2026** | **March 31, 2025** |<br>**Increase (Decrease)** |
| **(Dollars in thousands)** | | | |
| Proceeds from maturities and paydowns of available-for-sale securities | $3389 | $4982 | $(1593) |
| Purchases of available-for-sale securities | (52923) | (9471) | (43452) |
| Proceeds from sale of available-for-sale securities | 102440 | - | 102440 |
| Net cash provided (used) | $52906 | $(4489) | $57395 |

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The net cash provided by the investing cash flows stemming from the net change in loans was $0.7 million during the three months ended March 31, 2026, compared to $55.4 million during the same period in 2025.

Net cash provided by financing activities was $31.7 million during the three months ended March 31, 2026, an increase of $73.9 million, or 175.2%, from net cash (used in) financing activities of $42.2 million during the same period in 2025. The primary use of financing cash flows was net increases in deposits which were $12.5 million during the three months ended March 31, 2026, compared to net decreases in deposits which were $24.0 million during the same period in 2025.

Further, financing activities from subordinated debentures for the three months ended March 31, 2026 and 2025 are summarized below.

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| | | | |
|:---|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** | |
|<br>**Cash flows from Subordinated debentures** | **March 31, 2026** | **March 31, 2025** |<br>**Increase (Decrease)** |
| **(Dollars in thousands)** | | | |
| Proceeds from subordinated debentures | $33500 | $- | $33500 |
| Payments of subordinated debt issuance costs, net of amortization | (851) | - | (851) |
| Net cash provided (used) | $32649 | $- | $32649 |

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Additionally, financing activities from FHLB advances for the three months ended March 31, 2026 and 2025 are summarized below.

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| | | | |
|:---|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** | |
|<br>**Cash flows from FHLB advances** | **March 31, 2026** | **March 31, 2025** |<br>**Increase (Decrease)** |
| **(Dollars in thousands)** | | | |
| Proceeds from FHLB advances and other debt | $40000 | $90695 | $(50695) |
| Repayment of FHLB advances and other debt | (40000) | (110205) | 70205 |
| Net cash provided (used) | $- | $(19510) | $19510 |

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Cash and cash equivalents was $224.3 million for the three months ended March 31, 2026, an increase of $90.1 million, or 67.1%, from $134.3 million at December 31, 2025. We consider cash and cash equivalents, in combination with other liquidity sources, to be adequate for our operations.

***Change in accountants***

On May 19, 2025, our Audit Committee approved the dismissal of Forvis Mazars, LLP ("Forvis Mazars") as our independent auditor. Forvis Mazars was re-engaged on March 22, 2026, as an independent registered public accounting firm to issue an opinion under the standards of the Public Company Accounting Oversight Board as of and for the year ended December 31, 2024. The reports of Forvis Mazars on our consolidated financial statements for the years ended December 31, 2023 and 2024 did not contain an adverse opinion or a disclaimer of opinion and were not qualified or modified as to uncertainty, audit scope or accounting principles.

For the years ended December 31, 2023 and 2024, (i) we had no disagreements with Forvis Mazars on any matter of accounting principles or practices, financial statement disclosure or auditing scope or procedure which, if not resolved to the satisfaction of Forvis Mazars, would have caused Forvis Mazars to make reference to the subject matter of the disagreements in connection with its reports on our consolidated financial statements for such periods, and (ii) there were no "reportable events" as defined in Item 304(a)(1)(v) of Regulation S-K.

On May 19, 2025, our Audit Committee approved the engagement of Wipfli LLP ("Wipfli") as our new independent registered public accounting firm. During the period prior to Wipfli's engagement, we did not consult Wipfli regarding (i) the application of accounting principles to a specific transaction, either completed or proposed, or the type of audit opinion that might be rendered on our financial statements, or (ii) any matter that was the subject of a disagreement (as defined in Item 304(a)(1)(iv) of Regulation S-K) or a reportable event (as defined in Item 304(a)(1)(v) of Regulation S-K).

We provided Forvis Mazars with a copy of this disclosure prior to its filing and requested that Forvis Mazars furnish us with a letter addressed to the Securities and Exchange Commission stating whether it agrees with the above statements and, if not, stating the respects in which it does not agree. A copy of Forvis Mazars' letter, dated June 25, 2026, is filed as Exhibit 16.1 to this Form S-1.

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**ANNUAL FINANCIAL STATEMENTS**

***Known Trends and Uncertainties***

There has been no significant change in our financial or trading position, and no material adverse change has occurred since the date of our audited financial statements. After this filing, we expect to incur increased expenses as a result of being a public company (for legal, financial reporting, accounting and auditing compliance).

***Critical Accounting Policies and Estimates***

The preparation of financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities, and the reported amounts of revenues and expenses. Actual results could differ from those estimates.

Critical accounting policies are those that are both most important to the portrayal of our financial condition and results of operations, and require management's most difficult, subjective or complex judgments, often as a result of the need to make estimates about the effect of matters that are inherently uncertain. Our critical accounting policies relate to the determination of the allowance for credit losses, valuation of real estate acquired in connection with foreclosures or in satisfaction of loans, valuation of goodwill, fair value of financial instruments, and valuation of deferred tax assets, all of which involve significant judgment by management.

***Allowance for Credit Losses***

The allowance for credit losses ("ACL") is an estimate of expected losses inherent within the Company's existing loans held for investment portfolio. The allowance for credit losses for loans held for investment, as reported in our consolidated balance sheet, is adjusted by a credit loss provision expense, which is reported in earnings, and reduced by the charge-off of loan amounts, net of recoveries.

The recorded ACL on loans is determined based on the amortized cost basis of the assets and may be determined at various levels, including homogeneous loan pools and individual credits with unique risk factors. Since adoption of ASU 2016-13 ("CECL") in 2023, the Company has used a discounted cash flow approach to calculate the ACL for each loan segment. Within the discounted cash flow model, a probability of default ("PD") and loss given default ("LGD") assumption is applied to calculate the expected loss for each loan segment. PD is the probability the asset will default within a given timeframe and LGD is the percentage of the assets not expected to be collected due to default. PD and LGD data is derived using a combination of external data and internal historical default and loss experience.

CECL may create more volatility in the Company's ACL. Under CECL, the Company's ACL may increase or decrease period to period based on many factors, including, but not limited to, macroeconomic forecasts and conditions; a change in the prepayment speed assumption; an increase or decrease in loan balances, including changes to the Company's loan portfolio mix; credit quality of the loan portfolio; and various qualitative factors outlined in ASU 2016-13.

The Company considers the ACL on loans to be a critical accounting policy given the uncertainty in evaluating the allowance required to cover management's estimate of all expected credit losses over the expected contractual life of the loans in its portfolio. Determining the appropriateness of the allowance is a key management function that requires significant judgment and estimates by management about the effect of matters that are inherently uncertain. Subsequent evaluations of the current loan portfolio, in light of the factors then prevailing, may result in significant changes in the allowance in future periods. While the Company's current evaluation indicates that the ACL on loans at December 31, 2025 and 2024 was appropriate, the allowance may need to be increased under adversely different conditions or assumptions.

The significant key assumptions used with the ACL on loans calculation at December 31, 2025 using the CECL methodology, included:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Macroeconomic factors (loss drivers):* Macroeconomic factors are used within our discounted cash flow model to forecast the PD over the forecast period. As macroeconomic factors worsen the PD increases, and

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the corresponding LGD increases, resulting in an increase in the ACL on loans. The Company utilizes national, state and local unemployment, changes in national gross domestic product ("GDP"), changes in federal funds rates, and changes in inflation in estimation of the ACL on loans. Macroeconomic factors used in the calculation of the ACL on loans may change from time to time and in times of greater uncertainty. The Company may consider a range of possible forecasts and evaluate the probability of each scenario.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Forecast period and reversion speed:* ASU 2016-13 requires a company to use a reasonable and supportable forecast period in developing the ACL, which represents the time period that management believes it can reasonably forecast the identified loss drivers. Generally, the forecast period management believes to be reasonable and supportable is set annually and validated through an assessment of economic leading indicators. In periods of greater volatility and uncertainty, such as that seen across the global markets and economies, including the U.S., the Company may elect to use a shorter forecast period, whereas when markets, economies and various other factors are considered more stable and certain, the Company may elect to use a longer forecast period. Once the reasonable and supportable forecast period is determined, ASU 2016-13 requires a company to revert its loss expectations to the long-run historical mean for the remainder of the contract life of the asset, adjusted for prepayments. In determining the length of time over which the reversion will take place (i.e. "reversion speed"), the Company considers such factors such as, but not limited to, historical loan loss experience over previous economic cycles, as well as where the Company believes it is within the current economic cycle. At December 31, 2025, the Company used a one-year forecast period and two-year reversion period for each loan segment to measure the ACL on loans.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Prepayment speeds:* Prepayment speeds are determined for each loan segment utilizing the Company's own historical loan data, as well as consideration of current environmental factors. The prepayment speed assumption is utilized with the discounted cash flow model (i.e. the CECL model) to forecast expected cash flows over the contractual life of the loan, adjusted for expected prepayments. A higher prepayment speed assumption will drive a lower ACL, and vice versa.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Qualitative factors:* ASU 2016-13 requires companies to consider various qualitative factors that may impact expected credit losses. The Company continues to consider qualitative factors in determining and arriving at our ACL on loans each reporting period.

*Collateral Dependent Financial Assets* 

For a loan that does not share risk characteristics with other loans, expected credit loss is measured based on net realizable value, that is, the difference between the discounted value of the expected future cash flows, based on the original effective interest rate, and the amortized cost basis of the loan. For these loans, we recognize expected credit loss equal to the amount by which the net realizable value of the loan is less than the amortized cost basis of the loan (which is net of previous charge-offs and deferred loan fees and costs), except when the loan is collateral dependent, that is, when the borrower is experiencing financial difficulty and repayment is expected to be provided substantially through the operation or sale of the collateral. In these cases, expected credit loss is measured as the difference between the amortized cost basis of the loan and the fair value of the collateral. The fair value of the collateral is adjusted for the estimated cost to sell if repayment or satisfaction of a loan is dependent on the sale (rather than only on the operation) of the collateral.

Our accounting policies and related disclosures about credit losses are discussed in more detail in the Notes to our consolidated financial statements for the years ended December 31, 2025 and 2024. Please refer to "Note 1 – Nature of Operations and Summary of Significant Accounting Policies, and "Note 3 – Loans and Allowance for Credit Losses".

***Valuation of Real Estate Acquired in Connection with Foreclosures or in Satisfaction of Loans***

Real estate acquired through foreclosure or in satisfaction of loans (other real estate owned, or "OREO") is recorded at fair value less estimated costs to sell at the time of acquisition, which establishes a new cost basis. After acquisition, OREO is carried at the lower of its carrying amount or fair value less estimated costs to sell. Revenue

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and expenses from operations and changes in the valuation allowance are included in net income (loss) or expense from foreclosed assets.

The valuation of OREO is considered a critical accounting estimate because it requires management judgment and is subject to uncertainty. Fair value is generally based on third-party appraisals, broker price opinions, or internal evaluations, adjusted as appropriate for current market conditions, property-specific factors, and estimated costs to dispose of the asset. These valuations require assumptions regarding market demand, pricing of comparable properties, expected holding periods, and property condition.

OREO values are sensitive to changes in local real estate market conditions. Factors such as declining property values, limited market activity, longer marketing periods, changes in interest rates, or adverse economic conditions could reduce estimated fair values. In addition, individual properties may be unique or illiquid, which can limit the availability of observable market data and increase reliance on judgment.

If actual sales prices, time to disposition, or selling costs differ from management's expectations, or if market conditions deteriorate, the Company may be required to record additional valuation write-downs or losses upon sale. Such adjustments could have an adverse effect on results of operations in the period recognized. Because these outcomes depend on future events and market conditions, actual results may differ from management's estimates.

Our accounting policies and related disclosures about OREO are discussed in more detail in the Notes to our consolidated financial statements for the years ended December 31, 2025 and 2024. Please refer to "Note 1 – Nature of Operations and Summary of Significant Accounting Policies."

***Valuation of Goodwill***

Goodwill results from business lines purchased in prior years. The acquisition method of accounting requires that assets and liabilities acquired in a business combination are recorded at fair value as of the acquisition date, typically resulting in goodwill. The valuation of assets and liabilities in a business combination involves estimates that are inherently subjective. Goodwill represents the excess of the consideration we paid over the fair value of identifiable assets and liabilities acquired. Goodwill and indefinite-lived intangibles are evaluated annually for impairment or more frequently if impairment indicators are present. If the implied fair value of goodwill or the fair value of the indefinite-lived intangible is over their carrying amounts, an impairment loss is recognized in an amount equal to the difference.

Goodwill is considered a critical accounting estimate because adverse changes in the Company's business could result in a material impairment charge. Factors that could negatively impact the fair value estimate include, but are not limited to, sustained declines in revenues or profitability, adverse changes in macroeconomic or industry conditions, increased competitive pressures, regulatory changes, loss of key customers or contracts, or the failure to achieve forecasted operating results or synergies associated with prior acquisitions.

Our accounting policy for goodwill is disclosed in "Note 1 – Nature of Operations and Summary of Significant Accounting Policies" and "Note 6 – Goodwill" to the year-end financial statements.

***Fair Value of Financial Instruments***

The Company measures the fair value of certain financial instruments on a recurring or nonrecurring basis and discloses the fair value of additional financial instruments in the notes to the consolidated financial statements. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Determining fair value requires the use of valuation techniques and, in some cases, significant management judgment.

The fair value of financial instruments for which quoted market prices are not available is estimated using valuation models that consider observable market inputs, such as interest rates, yield curves, credit spreads, and other relevant factors. For certain instruments, including loans, collateral-dependent assets, and other assets measured on a nonrecurring basis, fair value estimates may incorporate unobservable inputs due to limited market

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activity. As a result, these valuations may rely on assumptions regarding expected cash flows, prepayment speeds, credit risk, collateral values, and liquidity discounts.

The valuation of financial instruments is considered a critical accounting estimate because changes in market conditions or assumptions used in valuation models can materially affect estimated fair values. Factors such as changes in interest rates, credit spreads, borrower credit quality, or market liquidity may significantly impact fair value estimates. In addition, valuations that rely on unobservable inputs are inherently more subjective and may be more sensitive to changes in judgment or underlying assumptions.

Because fair value estimates are based on conditions at a specific point in time and on information available at that date, actual proceeds received upon sale or settlement of a financial instrument may differ from its estimated fair value. If market conditions deteriorate or assumptions prove inaccurate, the Company could be required to record valuation adjustments or impairment charges, which could adversely affect results of operations in the period recognized.

Our accounting policy for fair value of financial instruments is disclosed in "Note 1 – Nature of Operations and Summary of Significant Accounting Policies" and "Note 16 – Disclosures About Fair Value of Assets and Liabilities" to the year-end financial statements.

***Valuation of Deferred Tax Assets***

Deferred tax assets arise from temporary differences between the financial reporting and tax basis of assets and liabilities, as well as from tax attributes such as net operating loss carryforwards. Deferred tax assets are recognized to the extent management believes it is more likely than not that they will be realized through future taxable income or available tax planning strategies.

The valuation of deferred tax assets is considered a critical accounting estimate because it requires significant judgment regarding the timing and amount of future taxable income. In evaluating the realizability of deferred tax assets, management assesses positive and negative evidence, including historical earnings, expectations for future profitability, the reversal of temporary differences, and the feasibility of tax planning strategies. These assessments require assumptions about future operating results and economic conditions that are inherently uncertain.

Deferred tax assets are sensitive to changes in business performance and economic conditions. Adverse developments such as sustained operating losses, changes in the composition or timing of income, or unfavorable economic trends could reduce the Company's ability to realize deferred tax assets. In addition, changes in tax laws or regulations, including changes in tax rates or limitations on the use of net operating losses, could negatively affect the realizability of deferred tax assets.

If management determines that it is more likely than not that some portion of the deferred tax assets will not be realized, the Company would be required to record or increase a valuation allowance, which would increase income tax expense and negatively affect results of operations in the period recognized. Because future taxable income and tax law developments cannot be predicted with certainty, actual results may differ from management's estimates.

Our accounting policy for valuation of deferred tax assets is disclosed in "Note 1 – Nature of Operations and Summary of Significant Accounting Policies" and "Note 12 – Income Taxes" to the year-end financial statements.

***Emerging Growth Company***

Pursuant to the JOBS Act, an emerging growth company may adopt new or revised accounting standards either (i) within the same periods as those otherwise applicable to non-emerging growth companies or (ii) within the same periods as private companies. We have irrevocably elected to adopt new accounting standards within the same periods as private companies.

We may take advantage of some of the reduced regulatory and reporting requirements that are available to us so long as we qualify as an emerging growth company, including, but not limited to, not being required to comply with the auditor attestation requirements of Section 404(b) of the Sarbanes-Oxley Act, reduced disclosure obligations

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regarding executive compensation, and exemptions from the requirements of holding non-binding advisory votes on executive compensation and golden parachute payments.

***Selected Consolidated Financial Information – Years Ended December 31, 2025 and 2024***

Selected consolidated financial information for the Company at or for the years ended December 31, 2025 and 2024 is as follows:

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| | | | |
|:---|:---|:---|:---|
| | **At or For the Years Ended December 31,** | **At or For the Years Ended December 31,** | **Increase (Decrease)** |
| | **2025** | **2024** | $**%** |
| | **(Dollars in thousands)** | **(Dollars in thousands)** | |
| **Selected Balance Sheet Data** |  |  |  |
| Cash and cash equivalents | $134276 | $18062 | 643.42% |
| Available-for-sale debt securities | 329909 | 265346 | 24.33% |
| Loans held for sale | 605 | 900 | (32.78)% |
| Loans (not including loans held for sale) | 1166956 | 1414839 | (17.52)% |
| Net deferred loan fees, premiums and discounts | 920 | 603 | 52.57% |
| Allowance for credit losses | 17865 | 16009 | 11.59% |
| Loans, net | 1148171 | 1398227 | (17.88)% |
| Cash surrender value of life insurance | 36887 | 35303 | 4.49% |
| Goodwill | 18805 | 18805 | —% |
| Other assets <sup>(1)</sup> | 91725 | 112759 | (18.65)% |
| Total assets | $1760378 | $1849402 | (4.81)% |
| Deposits | $1507071 | $1581690 | (4.72)% |
| Federal Home Loan Bank advances | 70000 | 89510 | (21.80)% |
| Notes payable | 14500 | 14500 | —% |
| Junior subordinated debentures | 9279 | 9279 | —% |
| Other liabilities <sup>(2)</sup> | 21714 | 17565 | 23.62% |
| Total liabilities | 1622564 | 1712544 | (5.25)% |
| Stockholders' equity | 137814 | 136858 | 0.70% |
| Total liabilities and stockholders' equity | $1760378 | $1849402 | (4.81)% |
| **Selected Average Balance Sheet Data** |  |  |  |
| Average earning assets | $1612589 | $1671301 | (3.51)% |
| Average total assets | $1797723 | $1841376 | (2.37)% |
| Average stockholders' equity | $120825 | $127898 | (5.53)% |
| **Selected Operating Data** |  |  |  |
| Interest income | $90927 | $94724 | (4.01)% |
| Interest expense | 46524 | 54822 | (15.14)% |
| Net interest income | 44403 | 39902 | 11.28% |
| Provision for credit losses | 3501 | 5378 | (34.90)% |
| Noninterest income | 12944 | 24817 | (47.84)% |
| Noninterest expense | 56759 | 61208 | (7.27)% |
| Credit for income taxes | (465) | (472) | (1.48)% |
| Net loss | $(2448) | $(1395) | 75.48% |

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__________________

(1)Includes premises and equipment, other real estate, accrued interest receivable, other investments and other assets.

(2)Includes accrued interest payable and other liabilities.

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---

| | | |
|:---|:---|:---|
| | **At or For the Years Ended December 31,** | **At or For the Years Ended December 31,** |
| | **2025** | **2024** |
| **Selected Financial Ratios** |  |  |
| Return on average assets | (0.14)% | (0.08)% |
| Return on average equity | (2.03)% | (1.09)% |
| Net interest margin | 2.75% | 2.39% |
| Gross Loans/deposits | 77.43% | 89.45% |
| Allowance for credit losses to gross loans | 1.53% | 1.13% |
| Non-performing loans to gross loans | 3.13% | 0.87% |
| Tier 1 leverage ratio of subsidiary Bank | 9.00% | 8.69% |
| Total risk-based capital ratio of subsidiary Bank | 13.32% | 11.59% |
| Stockholders' equity to total assets | 7.83% | 7.40% |

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***Financial Condition***

Our primary investment activities are the origination of real estate, commercial, and agricultural loans and the purchase of debt securities. Assets are funded primarily by deposits, borrowings such as Federal Home Loan Bank ("FHLB") advances, and stockholders' equity.

Total assets were $1.76 billion at December 31, 2025, representing a decrease of $89.0 million, or (4.81)%, from $1.85 billion at December 31, 2024. The decrease was primarily due to a $250.1 million decrease in loans, net and a $21.0 million decrease in other assets, partially offset by an increase of $116.2 million in cash and cash equivalents and an increase of $64.6 million in available-for-sale debt securities.

Our primary earning assets and funding sources are discussed below, including significant changes in our assets, liabilities, and stockholders' equity during the year ended December 31, 2025.

***Available-For-Sale Debt Securities Portfolio***

The available-for-sale debt securities portfolio serves the following purposes: (i) it provides a source of pledged assets for securing certain deposits and borrowed funds, as may be required by law or by specific agreement with a depositor or lender; (ii) it provides liquidity to even out cash flows from the loan and deposit activities of customers; (iii) it can be used as an interest rate risk management tool, since it provides a large base of assets, the maturity and interest rate characteristics of which can be changed more readily than the loan portfolio to better match changes in the deposit base and other funding sources of the Company; and (iv) it is an alternative interest-earning use of funds when loan demand is weak or when deposits grow more rapidly than loans.

Consistent with our investment policy, our portfolio consists of (i) asset-backed securities; (ii) collateralized mortgage obligations; (iii) government-sponsored mortgage-backed securities; (iv) state and political subdivisions; (v) U.S. treasuries; (vi) U.S. government agencies; and (vii) collateralized debt obligations.

All debt securities are classified as available-for-sale. Accounting guidance requires available-for-sale debt securities to be marked to fair value with an offset to accumulated other comprehensive income (loss), which is a component of stockholders' equity. Monthly adjustments are made to reflect changes in the fair value of our available-for-sale debt securities.

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The following table sets forth the carrying value of our available-for-sale debt securities as of December 31, 2025 and 2024.

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **December 31,** | **December 31,** | **December 31,** | **December 31,** | |
| | **2025** | **2025** | **2024** | **2024** |<br>**Dec. 31, 2025** |
| | **Amortized<br>Cost** | **Fair<br>Value** | **Amortized<br>Cost** | **Fair<br>Value** | **% of Total<br>Portfolio (Based on Fair Value)** |
| | **(Dollars in thousands)** | **(Dollars in thousands)** | **(Dollars in thousands)** | | |
| **Available-For-Sale Debt Securities** |  |  |  |  |  |
| Asset-backed securities | $2386 | $2405 | $— | $— | 0.7% |
| Collateralized mortgage obligations | 102824 | 99360 | 60163 | 55632 | 30.1% |
| Government sponsored mortgage-backed securities | 49911 | 45021 | 55695 | 48079 | 13.7% |
| State and political subdivisions | 168260 | 146012 | 169179 | 143606 | 44.3% |
| U.S. treasuries | 14942 | 14239 | 14915 | 13561 | 4.3% |
| U.S. government agencies |  |  | 3000 | 2968 | —% |
| Collateralized debt obligations | 22950 | 22872 | 1500 | 1500 | 6.9% |
| &nbsp;&nbsp;&nbsp;&nbsp;Total securities available for sale | $361273 | $329909 | $304452 | $265346 | 100.0% |

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The Company's collateralized mortgage obligations and government sponsored mortgage-backed securities portfolios consist of securities predominantly underwritten to the standards of and guaranteed by the following government-sponsored agencies: Federal Home Loan Mortgage Corporation; Federal National Mortgage Association; and Government National Mortgage Association.

The following table sets forth certain information regarding the amortized cost, weighted average yields (based upon the amortized cost of the underlying security), and maturities of our investment securities portfolio as of December 31, 2025. Yields on tax-exempt obligations have been computed on a tax equivalent basis, using the 21% federal tax rate. Mortgage-backed investment securities include scheduled principal payments and estimated prepayments based on observable market inputs. Actual prepayments will differ from contractual maturities because borrowers have the right to prepay obligations with or without prepayment penalties.

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| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Maturities and Weighted Average Yields as of December 31, 2025** | **Maturities and Weighted Average Yields as of December 31, 2025** | **Maturities and Weighted Average Yields as of December 31, 2025** | **Maturities and Weighted Average Yields as of December 31, 2025** | **Maturities and Weighted Average Yields as of December 31, 2025** | **Maturities and Weighted Average Yields as of December 31, 2025** | **Maturities and Weighted Average Yields as of December 31, 2025** | **Maturities and Weighted Average Yields as of December 31, 2025** | **Maturities and Weighted Average Yields as of December 31, 2025** | **Maturities and Weighted Average Yields as of December 31, 2025** |
| | **One year or less** | **One year or less** | **One to five years** | **One to five years** | **Five to ten years** | **Five to ten years** | **Over ten years** | **Over ten years** | **Total** | **Total** |
|<br>**(Dollars in thousands)**<br>**Available-for-sale debt securities** | **Amortized<br>Cost** | **Average<br>Yield** | **Amortized<br>Cost** | **Average<br>Yield** | **Amortized<br>Cost** | **Average<br>Yield** | **Amortized<br>Cost** | **Average<br>Yield** | **Amortized<br>Cost** | **Average<br>Yield** |
| Asset-backed securities | $— | —% | $2386 | 6.32% | $— | —% | $— | —% | $2386 | 6.32% |
| Collateralized mortgage obligations |  | —% | 80156 | 5.15% | 22668 | 2.78% |  | —% | 102824 | 4.63% |
| Government sponsored mortgage-backed securities | 167 | 2.18% | 7684 | 3.89% | 35389 | 2.72% | 6671 | 1.76% | 49911 | 2.77% |
| State and political subdivisions | 80 | 3.00% | 11821 | 3.04% | 18237 | 2.23% | 138122 | 3.10% | 168260 | 2.97% |
| U.S. treasuries |  | —% | 14942 | 1.27% |  | —% |  | —% | 14942 | 1.27% |
| U.S. government agencies |  | —% |  | —% |  | —% |  | —% |  | —% |
| Collateralized debt obligations |  | —% | 10953 | 7.20% | 11997 | 6.76% |  | —% | 22950 | 6.97% |
| Total | $247 | 2.45% | $127942 | 4.55% | $88291 | 3.26% | $144793 | 2.96% | $361273 | 3.62% |
| Percent of total amortized cost | 0.07% |  | 35.41% |  | 24.44% |  | 40.08% |  | 100.0% |  |
| Cumulative % of total am. cost | 0.07% |  | 35.48% |  | 59.92% |  | 100.0% |  |  |  |

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The following factors may be particularly relevant when comparing our investment portfolio with the performance of other financial institutions:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• All debt security investments are classified as available-for-sale;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• All debt securities are carried at fair value on the balance sheet;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Unrealized losses on debt securities, net of deferred tax, are reflected in stockholders' equity; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Based on amortized cost as of December 31, 2025, 37.6% of debt securities have contractual maturities within five years.

***Loan Portfolio***

Loans represent the largest portion of our earning assets and typically provide higher yields than other assets. The quality and diversification of the loan portfolio is an important consideration when reviewing our financial condition. The Company's loan policy provides consistent standards and direction to achieve goals and objectives, which include maximizing earnings over the short and long term by managing risks. Internal concentration limits exist on all loan types, including the commercial & national credit & SBA/government guaranteed segment and agricultural and farmland segment. The Company has established strong underwriting practices and procedures to assess borrower credit risk, including review of debt service ability and collateral values and evaluation of guarantors. Appropriate actions are taken when a borrower is past due on payments or no longer able to service its debt.

The Company's loan portfolio consists of various types of loans: construction real estate, multi-family real estate, commercial real estate and 1-4 family real estate, agricultural and farmland, commercial & national credit & SBA/government guaranteed, and loans to individuals. At December 31, 2025 and 2024, the commercial real estate segment had the highest concentration and comprised 28.0% and 27.8%, respectively, of our loan portfolio. The Company's loans are primarily to borrowers in the Iowa markets where we operate.

Real estate loans consist of: Construction – land and commercial development, Multi-family real estate, Commercial real estate, and 1-4 family real estate including construction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Construction – land and commercial development: The Company provides financing for both horizontal (land development) and vertical (construction) financing, with a primary focus within our identified lending footprint. Land development financing is broad in scope, serving both commercial and residential developers. The loan policy outlines the underwriting criteria for each of these areas. These loans are generally structured with variable rates based on the Prime interest rate with loan maturities driven by the project scope, generally 12 – 18 months. Guarantor financial strength and liquidity play a vital role in underwriting these credits as collateral liquidation is generally the primary source of repayment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Multi-family real estate: The company provides many types of multifamily real estate financing, ranging from smaller properties to larger multi building complexes, as well as standard multifamily to more urban mixed use properties. Underwriting guidelines for these loans are laid out in the loan policy, with available market data including vacancy and absorption rates used in the analysis. Project economics are stressed to ensure their ability to withstand changes in rents, expenses, and occupancy. Loan amortizations for multifamily properties range from 20 – 30 years depending on the age of the property. Interest rates for these types of properties are predominantly adjustable, with the initial fixed rate periods generally not exceeding five years.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Commercial real estate: The Company focuses on both owner and non-owner occupied commercial real estate properties. Property types included within this segment would consist of industrial, warehouse, flex, and office for example. Underwriting guidelines for these loans are documented in the loan policy. Market data, vacancy rates, lease rates and duration are some of the items used within the analysis. Loan amortizations for commercial real estate properties are generally 20 years, with adjustable interest rates.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• 1-4 family real estate including construction: The Company provides many types of loans involving the purchase or refinance of real property including consumer mortgages, home construction, home improvement and small lines of credit. The loan policy addresses specific credit guidelines for each type. Many of the consumer real estate loans underwritten by the Company, other than home equity lines of credit ("HELOC"), conform to the underwriting requirements of Fannie Mae or other secondary market

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aggregators to allow the Company to resell loans in the secondary market. The Company structures most loans that will not conform to those underwriting requirements as adjustable rate mortgages that mature or adjust in one to five years, and then retains these loans in the Bank's portfolio. Servicing rights are generally not retained on the residential real estate loans sold in the secondary market except for select loans sold to the Federal Home Loan Bank MPF program.

Agricultural and farmland loans are subject to underwriting standards and processes similar to commercial loans. The Company provides a wide range of agricultural loans, including lines of credit for working capital and operational purposes, and term loans for the acquisition of real estate, facilities, equipment and other purposes. Collateral for agricultural loans generally includes accounts receivable, inventory (typically grain or livestock) and equipment. Collateral for agricultural real estate loans is generally real estate and improvements.

Commercial, Shared National Credits, & SBA/Government Guaranteed loans focus on small and mid-sized businesses with primary operations in transportation, warehousing, manufacturing, as well as service industry companies such as retailers and hospitality. Shared national credits include engaging with the shared national credit market or leverage loan market under the advisement of a third-party asset manager. Small business administration ("SBA")/government guaranteed loans are loans made to small businesses under the SBA 7(a) program in which the U.S. SBA guarantees a portion of the loan, therefore representing less risk to the Company.

Loans to individuals consist of consumer loans and other types including motor vehicle, signature loans, and small personal credit lines.

Loan characteristics and risks and underwriting are described in more detail in our December 31, 2025 consolidated financial statements, primarily in accompanying Notes 1 and 3.

The following table sets forth loans within each segment of our portfolio at year-end 2025 and 2024, including their percentage of total loans and increase (decrease) during 2025:

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **December 31,** | **December 31,** | **December 31,** | **December 31,** | **Increase (Decrease)<br>in 2025** |
| | **2025** | **2024** | **2025** | **2024** | **Increase (Decrease)<br>in 2025** |
| | **(Dollars in thousands)** | **(Dollars in thousands)** | **Percent of Total Loans** | **Percent of Total Loans** | **Percentage** |
| Real Estate: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Construction - Land and commercial development | $41508 | $75425 | 3.6% | 5.3% | (45.0)% |
| &nbsp;&nbsp;&nbsp;&nbsp;Multi-family | 179265 | 188337 | 15.4% | 13.3% | (4.8)% |
| &nbsp;&nbsp;&nbsp;&nbsp;Commercial | 327023 | 392884 | 28.0% | 27.8% | (16.8)% |
| &nbsp;&nbsp;&nbsp;&nbsp;1-4 Family including construction | 241626 | 279905 | 20.7% | 19.8% | (13.7)% |
| Agricultural and Farmland | 164525 | 171345 | 14.1% | 12.1% | (4.0)% |
| Commercial & National credit & SBA/Government guaranteed | 209522 | 302494 | 17.9% | 21.4% | (30.7)% |
| Loans to Individuals - Other | 3487 | 4449 | 0.3% | 0.3% | (21.6)% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total loans | 1166956 | 1414839 | 100.0% | 100.0% | (17.5)% |
| Net deferred loan fees, premiums and discounts | (920) | (603) |  |  | 52.6% |
| Allowance for credit losses - loans | (17865) | (16009) |  |  | 11.6% |
| &nbsp;&nbsp;&nbsp;&nbsp;Loans, net | $1148171 | $1398227 |  |  | (17.9)% |

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The following table sets forth contractual maturities by loan portfolio segment. This table does not include unscheduled prepayments:

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **As of December 31, 2025** | **As of December 31, 2025** | **As of December 31, 2025** | **As of December 31, 2025** | **As of December 31, 2025** |
| | **(Dollars in thousands)** | **(Dollars in thousands)** | **(Dollars in thousands)** | **(Dollars in thousands)** | **(Dollars in thousands)** |
|<br>**Loans, maturing in** | **1 Year or less** | **1 - 5 Years** | **5 -15 Years** | **After 15 Years** | **Total** |
| Real Estate: |  |  |  |  |  |
| Construction - Land and commercial development | $10469 | $20752 | $9788 | $499 | $41508 |
| Multi-family | 23179 | 90833 | 52434 | 12819 | 179265 |
| Commercial | 51097 | 123578 | 145348 | 7000 | 327023 |
| 1-4 Family including construction | 34893 | 39729 | 31066 | 135938 | 241626 |
| Agricultural and Farmland | 51864 | 25920 | 61610 | 25131 | 164525 |
| Commercial & National credit & SBA/Government guaranteed | 114539 | 67599 | 22977 | 4407 | 209522 |
| Loans to Individuals - Other | 1530 | 1871 | 86 |  | 3487 |
| Total | $287571 | $370282 | $323309 | $185794 | $1166956 |
| Percentage of total loans | 24.64% | 31.73% | 27.71% | 15.92% | 100.0% |

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The following table presents loans that mature after one year, set forth by loan segment and fixed or adjustable interest rate:

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| | | | |
|:---|:---|:---|:---|
| | **As of December 31, 2025** | **As of December 31, 2025** | **As of December 31, 2025** |
| | **(Dollars in thousands)** | **(Dollars in thousands)** | **(Dollars in thousands)** |
|<br>**Loans, maturing after 1 year** | **Fixed Rate** | **Adjustable Rate** | **Total** |
| Real Estate: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Construction - Land and commercial development | $16771 | $14268 | $31039 |
| &nbsp;&nbsp;&nbsp;&nbsp;Multi-family | 84660 | 71426 | 156086 |
| &nbsp;&nbsp;&nbsp;&nbsp;Commercial | 143546 | 132380 | 275926 |
| &nbsp;&nbsp;&nbsp;&nbsp;1-4 Family including construction | 34305 | 172428 | 206733 |
| Agricultural and Farmland | 45989 | 66672 | 112661 |
| Commercial & National credit & SBA/Government guaranteed | 71021 | 23962 | 94983 |
| Loans to Individuals - Other | 1410 | 548 | 1958 |
| Total | $397702 | $481684 | $879386 |
| Percentage of loans maturing >1 year | 45.22% | 54.78% | 100.0% |

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***Credit Quality and the Allowance For Credit Losses On Loans***

In accordance with CECL guidance, the Company has grouped its loan portfolio into segments with similar risk characteristics based on factors such as loan type, credit risk profile, borrower characteristics, and other relevant attributes that influence the risk of default. By dividing loans into these segments, the Company can apply more tailored loss estimation techniques that reflect the specific credit risks associated with each segment.

Evaluations of the Company's loan portfolio, its segments, and individual credits are inherently subjective and require significant judgments dependent on the circumstances at the time of the evaluation. As such, current period results are not an indication of future performance, and future evaluations may result in substantial changes to the allowance for credit losses and related provision expense as a result of changing economic conditions, asset quality, or loan portfolio composition in future periods.

For more information on the Company's allowance for credit losses methodology, including the quantitative and qualitative factors used in the calculation, please see "Note 1 – Nature of Operations and Summary of

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Significant Accounting Policies" and "Note 3 – Loans and Allowance for Credit Losses" within the Notes to Consolidated Financial Statements.

The following table presents: (1) allowance for credit losses by loan portfolio segment, (2) loans by portfolio segment compared to total loans (dollars and percentage), and (3) allowance for credit losses by loan portfolio segment as a percentage of the total ACL for the periods indicated:

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| | | | | |
|:---|:---|:---|:---|:---|
| **(Dollars in thousands)**<br>**As of December 31, 2025** |<br>**Allowance for Credit Losses** |<br>**Total Loans** |<br>**% of Total Loans Outstanding** |<br>**Allowance as a % of Total ACL** |
| Real Estate: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Construction - Land and commercial development | $1306 | $41508 | 3.6% | 7.3% |
| &nbsp;&nbsp;&nbsp;&nbsp;Multi-family | 945 | 179265 | 15.4% | 5.3% |
| &nbsp;&nbsp;&nbsp;&nbsp;Commercial | 9535 | 327023 | 28.0% | 53.4% |
| &nbsp;&nbsp;&nbsp;&nbsp;1-4 Family including construction | 2164 | 241626 | 20.7% | 12.1% |
| Agricultural and Farmland | 975 | 164525 | 14.1% | 5.4% |
| Commercial & National credit & SBA/Government guaranteed | 2892 | 209522 | 17.9% | 16.2% |
| Loans to Individuals - Other | 48 | 3487 | 0.3% | 0.3% |
| &nbsp;&nbsp;&nbsp;&nbsp;Total | $17865 | $1166956 | 100.00% | 100.0% |

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| | | | | |
|:---|:---|:---|:---|:---|
| **(Dollars in thousands)**<br>**As of December 31, 2024** |<br>**Allowance for Credit Losses** |<br>**Total Loans** |<br>**% of Total Loans Outstanding** |<br>**Allowance as a % of Total ACL** |
| Real Estate: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Construction - Land and commercial development | $1112 | $75425 | 5.3% | 6.9% |
| &nbsp;&nbsp;&nbsp;&nbsp;Multi-family | 874 | 188337 | 13.3% | 5.5% |
| &nbsp;&nbsp;&nbsp;&nbsp;Commercial | 6930 | 392884 | 27.8% | 43.2% |
| &nbsp;&nbsp;&nbsp;&nbsp;1-4 Family including construction | 2470 | 279905 | 19.8% | 15.4% |
| Agricultural and Farmland | 1003 | 171345 | 12.1% | 6.3% |
| Commercial & National credit & SBA/Government guaranteed | 3595 | 302494 | 21.4% | 22.5% |
| Loans to Individuals - Other | 25 | 4449 | 0.3% | 0.2% |
| &nbsp;&nbsp;&nbsp;&nbsp;Total | $16009 | $1414839 | 100.0% | 100.0% |

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The allowance for credit losses was $17.9 million at December 31, 2025, an increase of $1.9 million, or 11.59%, from $16.0 million at December 31, 2024. The increase is due to increases in specific reserves on certain nonperforming loans offset by decreases in gross loan balances for each segment. The allowance as a percentage of gross loan balances increased from 1.1% at December 31, 2024 to 1.5% at December 31, 2025.

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***Past Due Loans***

Loans past due are summarized in the following table.

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| | | | | |
|:---|:---|:---|:---|:---|
| | **(Dollars in thousands)** | **(Dollars in thousands)** | **Percentage of Total Loans** | **Percentage of Total Loans** |
| | **December 31,** | **December 31,** | **December 31,** | **December 31,** |
|<br>**Loans past due** | **2025** | **2024** | **2025** | **2024** |
| 30-89 days past due | $3864 | $8012 | 0.33% | 0.57% |
| 90 or more days past due and accruing | 32 | 302 | —% | 0.02% |
| &nbsp;&nbsp;&nbsp;&nbsp;Total loans past due 30 days or more and accruing | $3896 | $8314 | 0.33% | 0.59% |

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Past due loans remain at manageable levels. The decline in total loans past due 30 days or more and accruing between December 31, 2024 and December 31, 2025 was largely due to a decline in 30-89 days past due stemming from the resolution of larger credits in excess of $100,000 that were mostly paid-off or moved to a current status in 2025. Management believes collateral coverage will prevent or mitigate losses on these loans.

For more information about past due loans, please refer to "Note 3 – Loans and Allowance for Credit Losses" to our consolidated financial statements.

***Nonperforming Assets***

The following table sets forth information about non-performing assets, including loans on nonaccrual, accruing loans that are greater than or equal to 90 days past due, and other real estate owned. The accrual of interest on non-performing loans is generally discontinued at the time the loan is ninety days delinquent unless the credit is well secured and in the process of collection.

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| | | |
|:---|:---|:---|
| | **December 31,** | **December 31,** |
| | **2025** | **2024** |
| | **(Dollars in thousands)** | **(Dollars in thousands)** |
| **Non-performing assets** |  |  |
| Nonaccrual loans | $36467 | $12069 |
| Loans past due 90 days or more and accruing interest | 32 | 302 |
| Total non-performing loans | 36499 | 12371 |
| Other real estate owned | 9966 | 5858 |
| **Total non-performing assets**  | $46465 | $18229 |
| Non-performing loans to total gross loans | 3.13% | 0.87% |
| Non-performing assets to total assets | 2.64% | 0.99% |
| Allowance for credit losses on loans to non-performing loans | 48.95% | 129.41% |
| Allowance for credit losses on loans to total gross loans | 1.53% | 1.13% |
| Net charge-offs to total gross loans | 0.10% | 0.81% |

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Non-performing loans were $36.5 million at December 31, 2025, an increase of $24.1 million, or 195.0%, from $12.4 million at December 31, 2024. The increase in nonaccrual loans was largely due to two commercial real estate relationships with a total outstanding loan balance of $23.2 million. We currently expect resolution of both of these relationships in 2026 and believe the individually analyzed reserves are sufficient at this time.

Other real estate owned was $10.0 million at December 31, 2025, an increase of $4.1 million, or 70.1%, from $5.9 million at December 31, 2024. This increase stemmed from the addition of one relationship with a total balance of $6.1 million. We believe this number could fluctuate both higher and lower throughout 2026, but at this time the aggregate losses from the current properties would be contained.

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Allowance for credit losses on loans to gross total loans was 1.53% at December 31, 2025, a 40 basis point increase, from 1.13% at December 31, 2024. As of December 31, 2025 and 2024, we believe the allowance for credit losses on loans is adequate based on our evaluation of the portfolio.

***Funding Sources***

The Company's primary sources of funds are deposits (including brokered deposits), FHLB advances, and proceeds from principal and interest payments on loans and investment securities. While maturities and scheduled amortization of loans are a predictable source of funds, deposit inflows are influenced by market interest rates, economic conditions, and customer behavior, all of which can change over time.

***Deposits***

The composition and cost of our deposit base are important components in analyzing our net interest margin and balance sheet liquidity. Our liquidity is impacted by the volatility of deposits, given the risk of that money leaving our Bank for rate-related or other reasons. Deposits can be adversely affected if economic conditions weaken, especially in the markets where we operate.

Deposits at year-end are set forth in the following table.

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **December 31,** | **December 31,** | **December 31,** | **December 31,** | | |
| | **2025** | **2024** | **2025** | **2024** | **Increase (Decrease)** | **Increase (Decrease)** |
| **Deposit Category** | **(Dollars in thousands)** | **(Dollars in thousands)** | **Percent of Total Deposits** | **Percent of Total Deposits** | **Amount** | **Percentage** |
| Noninterest bearing | $245236 | $253014 | 16.3% | 16.0% | $(7778) | (3.1)% |
| Interest bearing | 387439 | 363764 | 25.7% | 23.0% | 23675 | 6.5% |
| Money market | 104583 | 116686 | 6.9% | 7.4% | (12103) | (10.4)% |
| Savings | 276727 | 218096 | 18.4% | 13.8% | 58631 | 26.9% |
| Brokered | 106263 | 169481 | 7.0% | 10.7% | (63218) | (37.3)% |
| Time of $250 and under | 269588 | 329795 | 17.9% | 20.8% | (60207) | (18.3)% |
| Time over $250 | 117235 | 130854 | 7.8% | 8.3% | (13619) | (10.4)% |
| Total deposits | $1507071 | $1581690 | 100.0% | 100.0% | $(74619) | (4.7)% |

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Total deposits were $1.51 billion at December 31, 2025, a decrease of $74.6 million, or (4.7)%, from $1.58 billion at December 31, 2024. The decrease in total deposits is primarily due to the decline in brokered deposits from $169.5 million at December 31, 2024 to $106.3 million at December 31, 2025. This decrease in brokered deposits was made by the Company in order to control capital ratios through the minimization of the size of the balance sheet, as well as to reduce the overall cost of funds.

The Company operates an embedded finance division, partnering with several corporate Fintech clients which offer different payment sources and business products. This division offers deposit accounts to customers through this platform which are included as part of the Demand, interest bearing deposit category. The interest rates on these deposits vary by partner as a discount to the Effective Federal Funds Rate. The weighted average rate on the deposits is not significantly higher than the weighted average rate on the community bank deposits. Total deposits included as part of this division were $116.4 million at December 31, 2025, an increase of $38.2 million, or 48.8%, from $78.2 million at December 31, 2024. This increase in deposits from the embedded finance division stemmed primarily from organic growth. The current relationships do not experience materially different balance volatility when compared to the non-finance division deposits; future relationships may act differently. The Company also has the ability to move most of these deposits on or off the balance sheet through deposit network relationships, as appropriate, with the most common approach being one-way sweeps. Total deposits moved off-balance sheet through the deposit network relationships at December 31, 2025 and 2024 were $175.7 million and $190.9 million, respectively. The Company intends to focus on growing these deposits further in the current and future periods. Further note that these deposits comprised 7.7% and 4.9% of total deposits as of December 31, 2025 and 2024, respectively.

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The following table presents average deposit balances and the average rate paid on those balances for the years indicated.

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| | | | | |
|:---|:---|:---|:---|:---|
| | **For the Years Ended December 31,** | **For the Years Ended December 31,** | **For the Years Ended December 31,** | **For the Years Ended December 31,** |
| | **2025** | **2025** | **2024** | **2024** |
|<br>**Deposit Category (Dollars in thousands)** | **Average Deposits** | **Average Interest Rate** | **Average Deposits** | **Average Interest Rate** |
| Noninterest bearing | $246198 | —% | $249666 | —% |
| Interest bearing | 393632 | 2.43% | 364627 | 2.71% |
| Money market | 102452 | 2.28% | 130287 | 2.74% |
| Savings | 252777 | 2.60% | 202447 | 2.91% |
| Brokered | 146987 | 4.35% | 187923 | 4.63% |
| Time | 405514 | 4.25% | 428295 | 4.97% |
| Total average deposits / rate | $1547560 | 3.23% | $1563245 | 3.76% |

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Total average deposits were $1.5 billion at December 31, 2025, a decrease of $15.7 million, or (1.00)%, from $1.6 billion at December 31, 2024, respectively. The rate on total average deposits decreased 53 basis points in 2025 to 3.23%, compared to 3.76% in 2024, primarily reflecting broad repricing across all interest-bearing deposit categories as market interest rates moderated from prior-year levels. Average rates declined for interest-bearing, money market, and savings deposits, driven by reduced pricing pressure on transactional and liquid balances, while time deposits and brokered deposits remained the highest-cost categories despite meaningful declines in balances. Overall, the decrease in deposit costs reflects lower market rates and a shift away from the peak pricing environment experienced in 2024, when customers favored higher-yielding deposit products.

Core deposits are defined by the banking regulators as all deposit accounts of $250,000 and less, minus any fully insured brokered deposits of $250,000 or less. Our core deposits have been relatively stable, while our use of brokered deposits has declined in 2025. Information about our core deposits and brokered deposits follows as of the dates indicated:

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| | | |
|:---|:---|:---|
| | **December 31,** | **December 31,** |
|<br>**Core and Brokered Deposits (Dollars in thousands)** | **2025** | **2024** |
| Core deposits | $1283573 | $1281355 |
| % of total deposits | 85.2% | 81.0% |
| Change from prior balance sheet date | $2218 | $(2742) |
| % Change from prior balance sheet date | 0.2% | (0.2)% |
| Brokered deposits | $106263 | $169481 |
| % of total deposits | 7.1% | 10.7% |

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FDIC deposit insurance covers $250,000 per depositor, per FDIC-insured bank, for each account ownership category. Maturities of time deposits of over $250,000, as of December 31, 2025 are shown below:

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| | |
|:---|:---|
| **Maturing Period (Dollars in thousands)** | **December 31, 2025** |
| Maturing in: |  |
| &nbsp;&nbsp;&nbsp;&nbsp;3 months or less | $26911 |
| &nbsp;&nbsp;&nbsp;&nbsp;3 months to 6 months | 37805 |
| &nbsp;&nbsp;&nbsp;&nbsp;6 months to 1 year | 45599 |
| &nbsp;&nbsp;&nbsp;&nbsp;1 year or greater | 6920 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total | $117235 |

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***Borrowings***

The Company maintains a line of credit with various covenants, primarily consisting of capital ratios and loan performance ratios. The Company held a line of credit for $15 million at December 31, 2025 and 2024. This line of credit was renewed in 2025, and had a due date of April 1, 2026. There was $14.5 million outstanding as of December 31, 2025 and 2024, respectively. The Company paid-off the line of credit in January 2026.

The Company utilizes FHLB advances and had balances of $70.0 million and $89.5 million of outstanding advances as of December 31, 2025 and 2024, respectively. This decline in FHLB advances was a result of liquidity and cost of funds management, stemming from the decline in loan balances. FHLB advances were secured by specific FHLB stock and qualifying consumer, commercial and agricultural mortgage loans with a carrying amount of approximately $308.4 million and $347.5 million as of December 31, 2025 and 2024, respectively.

Lastly, the Company has junior subordinated debentures due to a 100% owned, nonconsolidated subsidiary of the Company. The debentures were issued on June 21, 2007, in conjunction with the Trust's issuance of 9,000,000 shares of Company Obligated Mandatorily Redeemable Preferred Securities. See further discussion in "Note 11 – Junior Subordinated Debentures".

***Off-Balance Sheet Arrangements***

As a provider of financial services, we issue standby letters of credit. Standby letters of credit are irrevocable conditional commitments issued by the Bank to guarantee the performance of a customer to a third party. Financial standby letters of credit are primarily issued to support public and private borrowing arrangements, including commercial paper, bond financing and similar transactions. Performance standby letters of credit are issued to guarantee performance of certain customers under nonfinancial contractual obligations. The credit risk involved in issuing standby letters of credit is essentially the same as that involved in extending loans to customers. Should the Bank be obligated to perform under the standby letters of credit, the Bank may seek recourse from the customer for reimbursement of amounts paid. The Company had outstanding standby letters of credit amounting to $4.6 million and $4.4 million at December 31, 2025 and 2024, respectively.

The Company had outstanding loan commitments, aggregating $259.7 million and $213.1 million at December 31, 2025 and 2024, respectively. These commitments consist primarily of unfunded lines of credit to borrowers and commitments to make loans.

We anticipate that sufficient funds will be available to meet current loan commitments. Commitments generally have fixed expiration dates or other termination clauses. Since many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements.

As required by ASC 326, we maintain an allowance for expected credit losses on off-balance sheet commitments. The allowance balance is included with other liabilities on our balance sheet. The allowance balance is calculated in the same manner as our allowance for credit losses on loans, except we estimate the percentage of off-balance sheet commitments that we will actually fund in the future. Our allowance for credit losses on off-balance sheet commitments was $0.6 million at December 31, 2025, an increase of $0.5 million from $0.1 million at December 31, 2024, stemming from higher total unfunded commitments and lower unconditionally cancelable commitments. There were no write-offs of any off-balance sheet commitments in 2025 or 2024.

The Company also has the ability to move most of the deposits from our embedded finance division on or off the balance sheet through deposit network relationships, as appropriate, with the most common approach being one-way sweeps. Total deposits moved off-balance sheet through the deposit network relationships at December 31, 2025 and 2024 were $175.7 million and $190.9 million, respectively.

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***Capital Resources***

*Contractual Obligations*

We are a party to many contractual financial obligations, including repayments of deposits and borrowings and payments for noncancellable operating lease obligations. The table below summarizes certain future financial obligations of the Company due by period, as of December 31, 2025:

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **As of December 31, 2025** | **As of December 31, 2025** | **As of December 31, 2025** | **As of December 31, 2025** | **As of December 31, 2025** |
| | **(Dollars in thousands)** | **(Dollars in thousands)** | **(Dollars in thousands)** | **(Dollars in thousands)** | **(Dollars in thousands)** |
|<br>**Contractual Obligations** | **Total** | **Less than 1 year** | **1 to 3 years** | **3 to 5 years** | **More than 5 years** |
| Brokered & Time certificate of deposit | $493086 | $453570 | $39347 | $169 | $— |
| FHLB advances | 70000 | 70000 |  |  |  |
| Junior subordinated notes | 9279 |  |  |  | 9279 |
| Notes payable | 14500 | 14500 |  |  |  |
| Noncancellable operating lease obligations | 748 | 148 | 261 | 191 | 148 |
| Total | $587613 | $538218 | $39608 | $360 | $9427 |

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*Stockholders' Equity & Capital Adequacy* 

The following table summarizes certain capital ratios and per share amounts of the Company for the periods presented:

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| | | |
|:---|:---|:---|
| | **December 31,** | **December 31,** |
| | **2025** | **2024** |
| Total risk-based capital ratio | 12.41% | 10.87% |
| Tier 1 risk-based capital ratio | 11.17% | 9.89% |
| Common equity tier 1 risk-based capital ratio | 10.50% | 9.31% |
| Tier 1 leverage ratio | 8.34% | 8.14% |
| Book value per share | $18.85 | $18.57 |

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<u>Stockholders' Equity</u>: Total stockholders' equity was $137.8 million as of December 31, 2025, compared to $136.9 million as of December 31, 2024, an increase of $0.9 million, or 0.70%, driven primarily by decreases in accumulated other comprehensive loss mainly due to changes in unrealized losses on AFS securities and earned ESOP shares, partially offset by increases in treasury stock due to purchases and decrease in retained earnings due to net loss.

<u>Capital Adequacy</u>: The Federal Reserve uses capital adequacy guidelines in its examination and regulation of bank holding companies and their subsidiary banks. Risk-based capital ratios are established by allocating assets and certain off-balance-sheet commitments into four risk-weighted categories. These balances are then multiplied by the factor appropriate for that risk-weighted category. Pursuant to the Basel III Rules, the Company and the Bank, respectively, are subject to regulatory capital adequacy requirements promulgated by the Federal Reserve and the FDIC. Failure by the Company or the Bank to meet minimum capital requirements could result in certain mandatory and discretionary actions by our regulators that could have a material adverse effect on our consolidated financial statements. Under the capital requirements and the regulatory framework for prompt corrective action, the Company and the Bank must meet specific capital guidelines that involve quantitative measures of the Company's and the Bank's assets, liabilities and certain off-balance-sheet items as calculated under regulatory accounting practices. The Company's and the Bank's capital amounts and classifications are also subject to qualitative judgments by regulators about components, risk weightings and other factors. Quantitative measures established by regulation to ensure capital adequacy require the Company and the Bank to maintain minimum amounts and ratios of total risk-based capital, Tier 1 capital (as defined in the regulations) and Common Equity Tier 1 Capital (as defined in the

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regulations) to risk-weighted assets (as defined in the regulations), and a leverage ratio consisting of Tier 1 capital (as defined in the regulations) to average assets (as defined in the regulations). As of December 31, 2025, the Company and the Bank exceeded federal regulatory minimum capital requirements to be classified as well-capitalized (including the capital conservation buffer). Please refer to "Note 13 – Regulatory Matters" for additional information related to our regulatory capital ratios.

In order to be a "well-capitalized" depository institution, the Company and the Bank must maintain a Common Equity Tier 1 capital ratio of 6.5% or more; a Tier 1 capital ratio of 8% or more; a total capital ratio of 10% or more; and a leverage ratio of 5% or more. A capital conservation buffer, comprised of 2.5% of Common Equity Tier 1 Capital, is also established above the regulatory minimum capital requirements.

***Liquidity***

Liquidity refers to our ability to fund operations, to meet depositor withdrawals, to provide for our customers' credit needs, and to meet maturing obligations and existing commitments. Our liquidity principally depends on cash flows from operating activities, investment in and maturity of assets, changes in balances of deposits and borrowings, and our ability to borrow funds.

Net cash inflows from operating activities were $8.2 million during the year ended December 31, 2025, compared with $0.8 million in the year ended December 31, 2024. Net cash inflows from investing activities were $203.1 million during the year ended December 31, 2025, compared with net cash outflows of $40.0 million in the year ended December 31, 2024. Net cash outflows from financing activities were $95.1 million during the year ended December 31, 2025, compared with net cash outflows of $32.3 million in the year ended December 31, 2024.

To manage liquidity risk, the Bank has several sources of liquidity in place to maximize funding availability and increase the diversification of funding sources. The criteria for evaluating the use of these sources include volume concentration (percentage of liabilities), cost, volatility, and the fit with the current asset/liability management plan. The Bank has a limitation of wholesale liquidity/total assets of 40% and a sub-limitation of brokered CDs/total assets of 25%. These acceptable sources of liquidity include:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Federal Funds Lines

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Federal Reserve Bank Discount Window;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Federal Home Loan Bank Advances;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Brokered Deposits; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Notes Payable

<u>Federal Funds Lines</u>: Federal funds positions provide a source of short-term liquidity funding for the Bank. Unsecured federal funds purchased lines are viewed as a volatile liability and are not used as a long-term funding solution, especially when used to fund long-term assets. The current federal funds purchased limit is the amount of established federal funds lines. As of December 31, 2025, the Bank maintains several unsecured federal funds lines totaling $30.0 million, which are tested annually to ensure availability. There were no amounts outstanding under such lines at December 31, 2025.

<u>Federal Reserve Bank Discount Window</u>: The Federal Reserve Bank Discount Window is an additional source of liquidity, particularly during periods of economic uncertainty or stress. As of December 31, 2025, the Bank had investment securities with an approximate market value of $129.9 million, pledged to the Federal Reserve Bank of Chicago for liquidity purposes, which represents the borrowing capacity. There were no outstanding borrowings through the FRB Discount Window at December 31, 2025.

<u>Federal Home Loan Bank Advances</u>: FHLB advances provide both a source of liquidity and long-term funding for the Bank. All credit exposure, including advances and federal funds borrowings from the FHLBDM, are collateralized by loans held for investment, equal to various percentages of the total outstanding notes. As of

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December 31, 2025, the Bank had FHLB advances of $70.0 million outstanding, due in 2026, and additional borrowing capacity of $121.4 million.

<u>Brokered Deposits</u>: The Bank has brokered time deposit and non-maturity deposit relationships available to diversify its funding sources. Brokered deposits offer several benefits relative to other funding sources, such as maturity structures which cannot be duplicated in the current retail market, deposit gathering which does not cannibalize the existing deposit base, the unsecured nature of these liabilities, and the ability to quickly generate funds. The Bank's internal policy limits the use of brokered deposits as a funding source to no more than 25% of total assets. Board approval is required to exceed this limit. The Bank must maintain a "well capitalized" rating to access brokered deposits without FDIC waiver. An "adequately capitalized" rating requires an FDIC waiver to access brokered deposits and an "undercapitalized" rating prohibits the Bank from using brokered deposits. At December 31, 2025, the Company held $106.3 million of brokered deposits and $169.5 million as of December 31, 2024.

<u>Notes Payable</u>: Notes payable provide an additional source of liquidity for the Company. The Company maintains a $15.0 million unsecured line of credit with another financial institution, which is used for short-term liquidity management purposes. As of December 31, 2025 and 2024, the Bank had $14.5 million outstanding under this line of credit. The note bears interest at a variable rate and matures on April 1, 2026. The line of credit was paid off in January 2026. Management monitors the maturity and renewal of this borrowing as part of its overall liquidity management strategy.

Liquidity management is a daily function. Excess funds are generally invested in short-term investments. Cash inflows are typically generated from earnings, loan payments, mortgage loan sales, maturing securities, and increased deposit balances and borrowings. Debt securities can also be sold to provide funds. The Bank's cash outflows are primarily for loan advances, security purchases, deposit withdrawals, and maturities of other borrowings.

Management believes the Bank's liquid assets and unused borrowing capacity are sufficient for our operations, including the ability to fund loan originations and meet deposit outflows.

***Comparison of Results For The Years Ended December 31, 2025 and 2024***

*Summary of Performance*

Net income (loss) for the year ended December 31, 2025 was $(2.4) million, a decrease of $1.1 million, or (75.5)%, compared to $(1.4) million for the year ended December 31, 2024. The decrease in net income was primarily driven by an $11.9 million decrease in noninterest income. Partially offsetting this decrease was a $4.5 million increase in net interest income, a $1.9 million decrease in provision for credit losses and a $4.4 million decrease in noninterest expense. Noninterest income decreased primarily due to the $7.3 million gain on sale of a business unit recognized in 2024. The increase in net interest income was primarily driven by a decrease of $8.3 million in interest expense on interest-bearing liabilities, partially offset by a decrease of $3.8 million in interest income on interest-earning assets. The decrease in noninterest expense was primarily due to a $4.7 million decrease in salaries and employee benefits expense. We expect salaries and employee benefits expense to be flat in 2026.

*Summary of Net Interest Income and Net Interest Margin*

Net interest income is calculated as interest received on interest-earning assets less total interest payments on interest-bearing liabilities for the reporting period. Net interest income for the year ended December 31, 2025 was $44.4 million, an increase of $4.5 million, or 11.3%, compared to $39.9 million for the year ended December 31, 2024. The increase in net interest income was primarily the result of an $8.3 million decrease in interest expense on interest-bearing liabilities. The decrease in the interest expense on average interest-bearing liabilities was driven by decreases in the interest paid on interest-bearing deposits and total borrowed funds of $7.2 million and $1.1 million, respectively, due to lower costs and volumes of interest-bearing deposits and total borrowed funds. Partially offsetting the decrease in interest expense, which resulted in an increase to net interest income, was the decline of $3.8 million in interest income on interest-earning assets. The decrease in interest income on average interest-

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earning assets was driven primarily by a $106.7 million decrease in the volume of loans, coupled with a decrease in loan yield.

Net interest margin increased 36 basis points to 2.75% for the year ended December 31, 2025, from 2.39% for the year ended December 31, 2024. The increase in net interest margin was largely due to the decreases of 53 basis points and 10 basis points in interest-bearing deposit costs and total borrowed funds, respectively. Total interest earning assets yield remained steady, with a 4 basis points reduction in the loan yield, partially offset by a 35 basis points increase in the securities yield.

The Company expects continued net interest margin improvement as new loans are being originated at higher rates, replacing lower yielding loans. In addition, we also expect net interest margin improvement from the balance sheet restructure in the first quarter of 2026, coupled with the resolution of nonperforming assets, and deposit pricing discipline.

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The following table sets forth information related to the Company's average balance sheet, average yields on assets, and average rates of liabilities for the periods indicated. The Company derived these yields by dividing income or expense by the average balance of the corresponding assets or liabilities. The Company derived average balances from the daily balances throughout the periods indicated. Average loan balances include loans that have been placed on nonaccrual, while interest previously accrued on these loans is reversed against interest income.

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
| | **2025** | **2025** | **2025** | **2024** | **2024** | **2024** |
| | **Average <br>Balance** | **Interest Income / <br>Expense** | **Average <br>Yield / <br>Rate** | **Average Balance** | **Interest Income / <br>Expense** | **Average <br>Yield / <br>Rate** |
| | **(Dollars in thousands)** | **(Dollars in thousands)** | **(Dollars in thousands)** | **(Dollars in thousands)** | **(Dollars in thousands)** | **(Dollars in thousands)** |
| **Assets** |  |  |  |  |  |  |
| Loans, including fees | $1277183 | $75002 | 5.87% | $1383842 | $81733 | 5.91% |
| Taxable investment securities | 180130 | 10225 | 5.68% | 155757 | 8344 | 5.36% |
| Tax-exempt investment securities | 116577 | 4165 | 3.57% | 126533 | 4370 | 3.45% |
| &nbsp;&nbsp;&nbsp;&nbsp;Total securities held for investment | 296707 | 14390 | 4.85% | 282290 | 12714 | 4.50% |
| Federal funds sold | 38699 | 1535 | 3.97% | 5169 | 277 | 5.36% |
| Total interest-earning assets | 1612589 | $90927 | 5.64% | 1671301 | $94724 | 5.67% |
| Other assets | 185134 |  |  | 170075 |  |  |
| Total assets | $1797723 |  |  | $1841376 |  |  |
| **Liabilities and stockholders' equity** |  |  |  |  |  |  |
| Deposits |  |  |  |  |  |  |
| Interest bearing | $393632 | $9562 | 2.43% | $364627 | $9878 | 2.71% |
| Money market | 102452 | 2341 | 2.28% | 130287 | 3572 | 2.74% |
| Savings | 252777 | 6563 | 2.60% | 202447 | 5891 | 2.91% |
| Brokered | 146987 | 6387 | 4.35% | 187923 | 8702 | 4.63% |
| Time deposits | 405514 | 17243 | 4.25% | 428295 | 21292 | 4.97% |
| Total interest-bearing deposits | 1301362 | 42096 | 3.23% | 1313579 | 49335 | 3.76% |
| Federal funds purchased | 13 | - | (n/m) | 74 | 4 | (n/m) |
| Other borrowings | 94021 | 4428 | 4.71% | 113974 | 5483 | 4.81% |
| &nbsp;&nbsp;&nbsp;&nbsp;Total borrowed funds | 94034 | 4428 | 4.71% | 114048 | 5487 | 4.81% |
| Total interest-bearing liabilities | $1395396 | $46524 | 3.33% | $1427627 | $54822 | 3.84% |
| Non-interest bearing demand deposits | 246198 |  |  | 249666 |  |  |
| Other noninterest bearing liabilities | 35304 |  |  | 36186 |  |  |
| Total liabilities | 1676898 |  |  | 1713479 |  |  |
| Stockholders' equity | 120825 |  |  | 127898 |  |  |
| Total liabilities and stockholders' equity | $1797723 |  |  | $1841377 |  |  |
| Net interest income / spread |  | $44403 | 2.31% |  | $39902 | 1.83% |
| Net interest margin |  |  | 2.75% |  |  | 2.39% |
| Cost of funds<sup>(1)</sup> |  |  | 2.83% |  |  | 3.27% |

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__________________

(1)Cost of funds is calculated as total interest expense divided by the sum of average total deposits and borrowed funds.

(n/m) - not meaningful

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The volume and rate variances table below indicates the difference in interest earned and interest expense for each major category of interest-earning assets and interest-bearing liabilities, and the amount of such change attributable to changes in average balances (volume) or average interest rates. Volume variances are equal to the increase or decrease in average balance multiplied by the average rate in the prior period. Changes attributable to rate variances are equal to the increase or decrease in the average interest rate multiplied by the prior period average balance. Changes attributable to both rate and volume have been allocated proportionately to the change due to volume and the change due to rate.

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| | | | |
|:---|:---|:---|:---|
| | **Year 2025 to 2024 Change Due To** | **Year 2025 to 2024 Change Due To** | **Year 2025 to 2024 Change Due To** |
| | **Average Volume** | **Average Yield/Cost** | **Net Change** |
| | **(Dollars in thousands)** | **(Dollars in thousands)** | **(Dollars in thousands)** |
| **Increase (decrease) in interest income** | | | |
| Loans, including fees | $(6265) | $(466) | $(6731) |
| Taxable investment securities | 1362 | 519 | 1881 |
| Tax-exempt investment securities | (365) | 160 | (205) |
| &nbsp;&nbsp;&nbsp;&nbsp;Total securities held for investments | 997 | 679 | 1676 |
| Federal funds sold | 1310 | (52) | 1258 |
| &nbsp;&nbsp;&nbsp;&nbsp;Change in interest income | $(3958) | $161 | $(3797) |
| **Increase (decrease) in interest expense** |  |  |  |
| Deposits |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest-bearing | $1058 | $(1374) | $(316) |
| &nbsp;&nbsp;&nbsp;&nbsp;Money market | (691) | (540) | (1231) |
| &nbsp;&nbsp;&nbsp;&nbsp;Savings | 1186 | (514) | 672 |
| &nbsp;&nbsp;&nbsp;&nbsp;Brokered | (1805) | (510) | (2315) |
| &nbsp;&nbsp;&nbsp;&nbsp;Time | (1088) | (2961) | (4049) |
| Total interest bearing deposits | (1340) | (5899) | (7239) |
| Federal funds purchased | (3) | (1) | (4) |
| Other borrowings | (941) | (114) | (1055) |
| &nbsp;&nbsp;&nbsp;&nbsp;Total borrowed funds | (944) | (115) | (1059) |
| &nbsp;&nbsp;&nbsp;&nbsp;Change in interest expense | (2284) | (6014) | (8298) |
| **Change in net interest income**  | $(1674) | $6175 | $4501 |
| **Percentage increase (decrease) in net increase income over prior period**  |  |  | 11.3% |

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***Interest Income***

Total interest income was $90.9 million in 2025, a decrease of $3.8 million, or (4.0)%, from $94.7 million in 2024. Total interest income decreased primarily due to a decrease in interest income on loans of $6.7 million, partially offset by an increase in interest income from taxable investment securities of $1.9 million.

Interest income on loans was $75.0 million in 2025, a decrease of $6.7 million or (8.2)%, from $81.7 million in 2024. The decrease in interest income was driven by a $106.7 million decline in the average balance of loans and a 4 basis point decrease in the average rate earned on loans.

Interest income on securities held for investments was $14.4 million in 2025, an increase of $1.7 million, or 13.2%, from $12.7 million in 2024. The increase in interest income on securities held for investment was consistent with change in yield from 4.50% to 4.85%, coupled with an increase in the average securities held for investment, which were $296.7 million at December 31, 2025, an increase of $14.4 million, or 5.1%, from $282.3 million at December 31, 2024.

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***Interest Expense***

Total interest expense was $46.5 million in 2025, a decrease of $8.3 million, or (15.1)%, from $54.8 million in 2024. Total interest expense decreased primarily due to a decrease in interest expense on deposits of $7.2 million and a decrease in interest expense of $1.1 million in total borrowed funds, primarily stemming from FHLB advances.

Interest expense on deposits was $42.1 million in 2025, a decrease of $7.2 million or (14.7)%, from $49.3 million in 2024. The decrease in interest expense was consistent with change in yield from 3.76% to 3.23%. Average balances of interest-bearing checking deposits increased, while the average rate declined to 2.43% from 2.71%, reducing interest expense despite higher balances. Money market deposits declined in average balance, and the average rate decreased to 2.28% from 2.74%, resulting in a meaningful reduction in interest expense. Savings deposits increased in average balances while the average rate declined to 2.60% from 2.91%, reflecting repricing of balances while maintaining growth in lower-cost, relationship-based deposits. Average balances of time deposits declined modestly, while the average rate decreased significantly to 4.25% from 4.97%. This decline in both balances and rates was the largest contributor to the reduction in total deposit costs. Brokered deposits also declined in average balances, and the average rate decreased to 4.35% from 4.63%, reflecting lower wholesale funding costs and reduced reliance on brokered funding.

Interest expense on total borrowed funds was $4.4 million in 2025, a decrease of $1.1 million, or (19.3)%, from $5.5 million in 2024. The decrease in interest expense on total borrowed funds was consistent with change in average rates from 4.81% to 4.71%, as well as a decrease in total borrowed funds outstanding.

***Provision for Credit Loss***

Credit risk is inherent in the business of making loans. As discussed in the Critical Accounting Policies section and "Note 1 – Nature of Operations and Summary of Significant Accounting Policies" of the financial statements, the Company maintains an allowance for credit losses on loans through charges or credits to earnings, which are presented in the consolidated statements of operations as provision for credit losses. Determining the appropriate level of the allowance involves a high degree of management judgment and is based upon historical and projected losses in the loan portfolio, including the fair value of collateral or discounted cash flows of specifically identified impaired loans. This process, by its nature, creates variability in the amount and frequency of charges or credits to the Company's earnings. Specifically identifiable and quantifiable known losses are promptly charged off against the allowance. Subsequent recoveries, if any, are credited to the allowance.

For the year ended December 31, 2025, the Company recorded a provision for credit losses of $3.5 million, a decrease of $1.9 million, or (34.9)%, compared to $5.4 million for the year ended December 31, 2024. The allowance for credit losses was $17.9 million at December 31, 2025, an increase of 1.9 million, or 11.6%, compared to $16.0 million at December 31, 2024. The allowance for credit losses to total gross loans was 1.53% at December 31, 2025, an increase of 40 basis points, compared to 1.13% at December 31, 2024. This increase in the allowance for credit losses stemmed primarily from higher non-performing loan balance at December 31, 2025 compared to December 31, 2024.

Net charge-offs of $1.1 million were recorded during the twelve months ended December 31, 2025, a decrease of $10.4 million, or (90.1)%, compared to $11.5 million for the same period of 2024. This decrease stemmed primarily from elevated charge-offs in the year ended December 31, 2024, from a few larger commercial relationships.

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***Noninterest Income***

The following table presents the Company's various components of noninterest income:

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Year Ended December 31,** | **Year Ended December 31,** | **Increase (Decrease) in 2025** | **Increase (Decrease) in 2025** |
| | **2025** | **2024** | **Amount** | **Percentage** |
| | **(Dollars in thousands)** | **(Dollars in thousands)** | **(Dollars in thousands)** | |
| **Noninterest income** |  |  |  |  |
| Trust fees | $1045 | $891 | $154 | 17.3% |
| Brokered service commissions | 2305 | 3350 | (1045) | (31.2)% |
| Service charges on deposit accounts | 1176 | 1203 | (27) | (2.2)% |
| Net gains on mortgage loan sales | 255 | 1504 | (1249) | (83.0)% |
| Net gains on SBA and USDA loan sales | 109 | 1001 | (892) | (89.1)% |
| Net realized gains on sale of available-for-sale debt securities | - | 10 | (10) | (100.0)% |
| Unrealized gains on equity securities | 8 | 57 | (49) | (86.0)% |
| Gain on the sale of business unit | - | 7320 | (7320) | (100.0)% |
| Other noninterest income | 8046 | 9481 | (1435) | (15.1)% |
| Total noninterest income | $12944 | $24817 | $(11873) | (47.8)% |

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Total noninterest income decreased primarily due to a one-time sale of a business unit in 2024, where in 2024 a gain of $7.3 million was realized.

Net gains on mortgage loan sales was $0.3 million, a decrease of $1.2 million, or (83.0)%, from $1.5 million in 2024. Mortgage loan sales activity decreased in 2025 due to a decrease in originations, stemming from a change in the Company's mortgage origination process, whereby we now operate through a correspondent origination model.

Brokered service commissions was $2.3 million, a decrease of $1.0 million, or (31.2)%, from $3.3 million in 2024. This decrease stemmed primarily from the loss of key revenue-contributing team members who left the organization and production from continuing employees lagged slightly behind 2024.

Other noninterest income includes several items, such as debit card income, ATM fees, merchant services income, income from our finance division, banked-owned life insurance, and other fee income. Other noninterest income was $8.0 million, a decrease of $1.5 million, or (15.1)% from $9.5 million in 2024. This decrease stemmed primarily from the reversal in 2024 of prior year loss contingency that was recorded as miscellaneous income.

***Noninterest Expense***

The following table presents the Company's components of noninterest expense:

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Year Ended December 31,** | **Year Ended December 31,** | **Increase (Decrease)** | **Increase (Decrease)** |
|<br>**Noninterest expense** | **2025** | **2024** | **Amount** | **Percentage** |
| **(Dollars in thousands)** |  |  |  |  |
| Salaries and employee benefits | $29584 | $34244 | $(4660) | (13.6)% |
| Occupancy | 4086 | 4204 | (118) | (2.8)% |
| Furniture, equipment and software expense | 7020 | 7578 | (558) | (7.4)% |
| Net losses on sales of other real estate and real estate expense | 1874 | 143 | 1731 | (n/m) |
| Other noninterest expense | 14195 | 15039 | (844) | (5.6)% |
| Total noninterest expense | $56759 | $61208 | $(4449) | (7.3)% |

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_________________

(n/m) - not meaningful

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Total noninterest expense was $56.8 million in 2025, a decrease of $4.4 million, or (7.3)%, from $61.2 million in 2024. The decrease in noninterest expense was primarily driven by a $4.7 million decrease in salaries and employee benefit expense which is consistent with the decrease in full-time equivalent employees which was 220 as of December 31, 2025, a decrease of 19 employees from 239 as of December 31, 2024. The decrease was driven by the sale of a business unit in 2024, as well as staff reduction in mortgage banking. Also contributing to the decline in total noninterest expense, was the $844 thousand decrease in other noninterest expense. Other noninterest expense includes several expense items, such as card services, consulting and legal fees, sponsorships and donations, audits and exams, FDIC assessment, processing fees, directors fees, and other miscellaneous expense. The largest contributors to the change in other noninterest expense between 2024 and 2025 were the $1.3 million decline in consulting fees and an overall decline in legal and settlement-related fees of roughly $400 thousand, which were offset by an increase of $1.0 million in FDIC assessment expense.

***Income Taxes***

The Company's income tax provision consists of federal, state, and local income taxes and reflects the effects of temporary differences between the financial statement carrying amounts and the tax bases of assets and liabilities, as well as permanent differences.

Due to net losses incurred in both 2025 and 2024, the Company recorded a credit for income taxes of $0.5 million in both 2025 and 2024. The Company's effective income tax rate was 16.0% and 25.3% in 2025 and 2024, respectively. The change in the income tax provision and effective tax rate was primarily attributable to changes in pre-tax income, tax-exempt income levels, state tax impacts, and discrete items.

The Company recognizes deferred tax assets ("DTAs") and deferred tax liabilities ("DTLs") for the future tax consequences of temporary differences between the financial reporting and tax bases of assets and liabilities.

Significant components of the Company's DTAs and DTLs include:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Deferred tax assets:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Allowance for credit losses

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Net operating loss carryforwards

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Accrued compensation and benefits

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Securities fair value adjustments (AFS portfolio)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Deferred tax liabilities:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Intangible assets and goodwill

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• As of December 31, 2025, the Company reported net deferred tax assets of $13.8 million.

Management evaluates the realizability of DTAs on a semi-annual basis, considering both positive and negative evidence, including historical earnings, forecasted taxable income, tax planning strategies, and the reversal of existing taxable temporary differences.

Where it is more likely than not that some portion of DTAs will not be realized, a valuation allowance is recorded. As of December 31, 2025, the Company has recorded a valuation allowance of $0.7 million, primarily related to state NOLs with limited carryforward periods.

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***Return on Equity and Assets***

Net income divided by average assets and net income to average stockholders' equity are important performance indicators. The following table presents information on our return on average assets, return on average equity, equity to total assets, and dividend payout ratio, as of or for the years ended December 31.

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| | | |
|:---|:---|:---|
| | **At or For the Years Ended <br>December 31,** | **At or For the Years Ended <br>December 31,** |
| | **2025** | **2024** |
| **Selected Financial Ratios** |  |  |
| Return on average assets | (0.14)% | (0.08)% |
| Return on average equity | (2.03)% | (1.09)% |
| Stockholders' equity to total assets | 7.83% | 7.40% |

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Both the return on average assets and average equity decreased primarily as a result of an increased net loss in 2025. Net loss was $2.4 million in 2025, an increase of $(1.0) million, or 75.5%, from $1.4 million in 2024.

The year-end ratio of stockholders' equity to total assets was 7.83% at December 31, 2025, a 43 basis point increase, from 7.40% at December 31, 2024. The increase was due to equity increasing 0.70% while total assets decreased 4.81%.

Stockholders' equity increased in 2025 primarily due to a decrease in accumulated other comprehensive loss, partially offset by a decrease in retained earnings. Accumulated other comprehensive loss was $22.5 million at December 31, 2025, an improvement of $3.3 million, or 12.8%, from $25.8 million at December 31, 2024. The improvement was due to a decrease in unrealized loss on available-for-sale debt securities of $4.8 million in 2025. Retained earnings was $97.6 million at December 31, 2025, a decrease of $2.4 million, or 2.4%, from $100.0 million at December 31, 2024. The decrease in retained earnings was due to the net loss incurred in 2025 of $2.4 million.

***Non-GAAP Presentations***

Certain ratios and amounts not in conformity with GAAP are provided to evaluate and measure the Company's operating performance and financial condition, including tangible book value per share. Management believes these ratios and amounts provide investors with useful information regarding the Company's profitability, financial condition and capital adequacy, consistent with how management evaluates the Company's financial performance. The following tables provide a reconciliation of each non-GAAP measure to the most comparable GAAP equivalent measure.

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| | | |
|:---|:---|:---|
| **Tangible Book Value Per Share** <br>**(dollars in thousands)** | **As of December 31,** | **As of December 31,** |
| **Tangible Book Value Per Share** <br>**(dollars in thousands)** | **2025** | **2024** |
| Total stockholders' equity | $137814 | $136858 |
| Intangible assets, net | (19468) | (19722) |
| Tangible common equity | 118346 | 117136 |
| Shares outstanding (including Class A and Class B shares) | 7311016 | 7368419 |
| Book value per share | $18.85 | $18.57 |
| Tangible book value per share <sup>(1)</sup> | $16.19 | $15.90 |

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__________________

(1)Tangible common equity divided by shares outstanding

***Interest Rate Management***

The Company's market risk exposure is primarily that of interest rate risk, and we have established policies and procedures to monitor and limit earnings and balance sheet exposure to changes in interest rates. The Company does not engage in the trading of financial instruments, nor do we have exposure to currency exchange rates.

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The principal objective of interest rate risk management (often referred to as "asset/liability management") is to manage the financial components of the Company in a manner that will optimize the risk/reward equation for earnings and capital in relation to changing interest rates. Interest rate risk is the potential of economic losses due to future interest rate changes. These economic losses can be reflected as a loss of future net interest income and/or a loss of current fair market values. The objective is to measure the effect on net interest income and to adjust the balance sheet to minimize the inherent risk while at the same time maximizing income. Management realizes certain risks are inherent, and that the goal is to identify and manage the risks.

The Company has implemented the following strategies to minimize the exposure of earnings and capital to changes in market interest rates:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Continued emphasis on growing and retaining core deposit relationships;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Maintaining capital levels that exceed federal regulatory levels for well-capitalized status;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Diversification of the loan portfolio to include various loan types, loan maturities, as well as variable and fixed interest rates;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Purchasing investment securities to match the current asset liability management objectives of the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Holding higher levels of liquidity (primarily cash and cash equivalents and available for sale investment securities), when appropriate;

These strategies position the Company to react to increases and decreases in market interest rates quickly and effectively.

The Company analyzes sensitivity to changes in interest rates through a net interest income model. Net interest income is the difference between the interest income we earn on our interest-earning assets, such as loans and securities, and the interest we pay on our interest-bearing liabilities, such as deposits and borrowings. Through the net interest income model, we estimate our net interest income for the next twelve months and compare that estimate with the net interest income calculated assuming various U.S. Treasury rate increases or decreases. For the purposes of the model, these U.S. Treasury rate increases or decreases are modeled to impact the yield curve instantaneously by various basis point increments, with changes in interest rates representing immediate and permanent, parallel shifts in the yield curve.

The table below sets forth, as of December 31, 2025, the calculation of the estimated changes in our net interest income that would result from the designated immediate changes in the United States Treasury yield curve.

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| | | |
|:---|:---|:---|
| | **Increase (Decrease) in**<br>**Estimated Net Interest Income** <sup>(1)</sup> | **Increase (Decrease) in**<br>**Estimated Net Interest Income** <sup>(1)</sup> |
| | **(Dollars in thousands)** | **(Dollars in thousands)** |
|<br>**Change in Interest Rates**<br>**(basis points)** | **Amount** | **Percent** |
| +300 | $438 | 1.04% |
| +200 | 822 | 1.96% |
| +100 | 557 | 1.33% |
| 0 |  | —% |
| -100 | (1276) | (3.04)% |
| -200 | (3201) | (7.62)% |
| -300 | (5353) | (12.75)% |

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__________________

(1)Computations of prospective effects of hypothetical interest rate changes are for illustrative purposes only, are based on numerous assumptions including relative levels of market interest rates, loan prepayments and deposit decay, and should not be relied upon as indicative of actual results. These projections are forward-looking and should be considered in light of the Cautionary Note Regarding Forward-Looking Statements appearing earlier in this document. Actual rates paid on deposits may differ from the hypothetical interest rates modeled due to competitive or market factors, which could reduce any actual impact on net interest income.

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***Cash Flows***

Net cash provided by operating activities was $8.2 million in 2025, an increase of $7.4 million, or 869.6%, from $0.8 million in 2024. Net income (loss) is a primary source of operating cash, as adjusted for certain items including gains on sales of assets, changes in income and expense accruals, and non-cash expenses such as depreciation and the provision for credit losses.

Loans held for sale activity was another important source of cash from operating activities, as shown in the following table.

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| | | |
|:---|:---|:---|
| **Cash flows from loans held for sale** | **2025** | **2024** |
| **(Dollars in thousands)** |  |  |
| Proceeds from sale of loans held for sale | $13090 | $67583 |
| Net gains on sale of loans | (364) | (2505) |
| Origination of loans held for sale | (12431) | (63593) |
| Net cash provided (used) | $295 | $1485 |

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Net cash provided by (used in) investing activities was $203.1 million in 2025, an increase of $243.1 million, or 607.8%, from $(40.0) million in 2024. The primary proceeds (use) of investing cash flows was changes in available-for-sale debt securities and net changes in loan balances.

Investing cash flows related to available-for-sale debt securities are summarized below.

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| | | | |
|:---|:---|:---|:---|
| **Cash flows from available-for-sale debt security purchases, sales and maturities** | **2025** | **2024** | **Increase (Decrease)** |
| **(Dollars in thousands)** |  |  |  |
| Proceeds from maturities and paydowns of available-for-sale securities | $25557 | $16944 | $8613 |
| Purchases of available-for-sale securities | (82583) | (78111) | (4472) |
| Proceeds from sale of available-for-sale securities | - | 49242 | (49242) |
| Net cash provided (used) | $(57026) | $(11925) | $(45101) |

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The net cash provided by (used) in the investing cash flows stemming from the net change in loans was $240.2 million for 2025, compared to ($15.3) million in 2024.

Net cash used in financing activities was $95.1 million in 2025, an increase of $62.8 million, or 194.3%, from $32.3 million in 2024. The primary use of financing cash flows was net decreases in deposits which were $74.8 million in 2025, an increase of $2.7 million, or 3.8%, from $72.1 million 2024. Additionally, financing activities from FHLB advances for 2025 and 2024 are summarized below.

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| | | |
|:---|:---|:---|
| **Cash flows from FHLB advances** | **2025** | **2024** |
| **(Dollars in thousands)** |  |  |
| Proceeds from FHLB advances and other debt | $211478 | $723730 |
| Repayment of FHLB advances and other debt | (230988) | (684220) |
| Net cash provided (used) | $(19510) | $39510 |

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Cash and cash equivalents was $134.3 million for the year ended, December 31, 2025, an increase of $116.2 million, or 643.4%, from $18.1 million at December 31, 2024. We consider cash and cash equivalents, in combination with other liquidity sources, to be adequate for our operations.

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**BUSINESS**

**Overview**

The Company is a bank holding company incorporated under the laws of the State of Iowa in 1983. The Company conducts a majority of its business through its wholly owned subsidiary, Lincoln Savings Bank (the "Bank").

In addition to the Bank, the Company conducts certain non-deposit activities through several wholly owned non-bank subsidiaries, each of which supports or complements the Company's core community banking and financial services operations – including: LSB Financial Services, Inc. and LSB Capital Management, Inc.

As of March 31, 2026, the Company had approximately $1.8 billion in consolidated total assets, total loans of $1.1 billion, total deposits of $1.5 billion, and total stockholders' equity of $134.8 million. The Company and the Bank are headquartered in Reinbeck, Iowa. Currently, the Bank operates 16 branch offices in 16 communities located primarily in northeast and central Iowa.

The Company conducts substantially all of its operations within the United States. While the Company does not maintain offices outside the United States, it does serve a limited number of customers located outside the United States.

**History and Market Expansion**

Founded in 1902, the Bank has a long history of providing comprehensive banking services to the communities it serves. For much of its early history, the Bank operated primarily through its locations in Reinbeck, Iowa, its headquarters. Beginning in the 1980s and continuing through the 1990s, the Bank initiated a period of measured geographic expansion through a series of small bank acquisitions in nearby counties, adding locations in Allison, Aplington, Garwin, Greene and Nashua. In the early 2000s, the Bank continued its growth strategy with additional branch acquisitions in Cedar Falls and Hudson, followed by the opening of a new de novo branch in Waterloo in 2002. Subsequent expansion included entry into the Tama market in 2004 and the Grinnell market in 2008 – both through branch acquisitions.

During the 2010s, the Bank entered Iowa's largest metropolitan market, the greater Des Moines area. This was initially accomplished through loan production offices focused on one to four family residential mortgage lending. Building on this foundation, the Bank subsequently expanded to full-service de novo commercial branch locations in Adel, Clive, Ankeny and downtown Des Moines, completing its strategic entry into that market.

**Principal Products and Services**

The Bank is actively engaged in a broad range of commercial banking activities, including the acceptance of demand, savings and time deposits; the origination of commercial, real estate, agricultural and consumer loans and the provision of related banking services tailored to the needs of its customers. The Bank's trust department administers estates, personal trusts, conservatorships, pension and profit-sharing plans, and provides other fiduciary and asset management services.

The Company's primary sources of revenue consist of net interest income earned on loans and investment securities, as well as noninterest income derived from trust and wealth management services, deposit service charges and interchange and payment-related fees. In addition, the Bank operates an embedded finance division that partners with several corporate financial technology ("fintech") clients to support payment solutions and business-related financial products. These activities generate noninterest fee income in addition to the Bank's traditional net interest margin.

The Bank's funding sources include customer deposits, securities sold under agreements to repurchase, and borrowings from the Federal Home Loan Bank of Des Moines.

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**Wealth Management and Non-Bank Subsidiaries**

The Company maintains several wholly owned subsidiaries in addition to the Bank, each of which was established to provide non-deposit products and services or to support specialized operational activities. These subsidiaries are described below.

***LSB Financial Services, Inc.***

LSB Financial Services, Inc. was formed on December 3, 1998 and historically operated as the Company's non-bank financial services platform. Over time, LSB Financial Services, Inc. expanded its operations through the acquisition of several smaller insurance agencies and real estate agencies. These acquisitions were undertaken to broaden the Company's product offerings and to generate fee-based revenue complementary to the Bank's traditional lending and deposit activities.

The Company subsequently exited these non-core businesses, completing the sale of the real estate division in 2018 and the sale of the insurance agency business in early 2024. Following these divestitures, the remaining business lines within LSB Financial Services, Inc. consist of retail, wealth management and trust management services.

Employees of LSB Financial Services, Inc. are located throughout the Bank's branch network and in a dedicated office in West Des Moines, Iowa.

***LSB Capital Management, Inc.***

LSB Capital Management, Inc. was formed on July 31, 2020 and operates as the Company's wholly owned registered investment adviser. LSB Capital Management, Inc. provides discretionary and non-discretionary investment advisory services to individuals, trusts, retirement plans, and other clients, and is registered under the Investment Advisers Act of 1940. The activities of LSB Capital Management, Inc. are complementary to the trust and wealth management services offered through the Bank and LSB Financial Services, Inc.

**Geographic Markets**

The Bank's primary deposit-gathering and lending markets consist of communities throughout the State of Iowa. The Bank operates branch locations in Adel, Allison, Ankeny, Aplington, Cedar Falls, Clive, Des Moines, Garwin, Greene, Grinnell, Hudson, Lincoln, Nashua, Tama, Waterloo and West Des Moines. The economies of these markets are diverse and supported by a broad mix of agricultural, commercial, industrial, service-oriented and governmental activities, providing a stable economic base for the Bank's operations.

**Growth Strategy**

The Company's growth strategy emphasizes disciplined organic growth within its existing markets, selective expansion within Iowa, and the continued development of fee-based businesses that complement its core community banking model. Key elements of this strategy include expanding commercial and small business lending relationships, growing low-cost core deposits, enhancing wealth management and trust services, and prudently scaling its banking-as-a-service and embedded finance platform while maintaining strong risk management and regulatory compliance.

**Competition**

The Company operates in a highly competitive environment for both deposit-gathering and lending activities, including real estate, commercial and other loans. The Company competes with national and regional banks, community banks, savings and loan associations, credit unions and a range of non-bank financial service providers, including securities and brokerage firms, mortgage companies, insurance companies, finance companies, money market mutual funds and fintech companies. Many of these competitors, particularly larger financial institutions, have substantially greater financial, technological and marketing resources than the Company. The Bank competes for loans primarily on the basis of interest rates, loan fees, and the quality, efficiency and responsiveness of the services it provides to customers.

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In connection with its banking-as-a-service and embedded finance activities, the Company also competes indirectly with other sponsor banks and non-bank financial technology providers offering similar infrastructure and payment-related services.

**Lending Activities and Credit Administration**

The Bank's lending activities are focused on meeting the credit needs of individuals and small to medium-sized businesses located within its primary market areas. The Bank seeks to maintain a diversified loan portfolio while emphasizing prudent underwriting standards, disciplined credit administration and ongoing portfolio monitoring.

The Bank's loan portfolio consists primarily of commercial and industrial loans, commercial real estate loans, agricultural loans, residential real estate loans and consumer loans. The composition of the loan portfolio reflects local market demand, management's strategic priorities and applicable internal and regulatory lending limits.

***Commercial and Industrial Loans***

Commercial and industrial loans are made primarily to small and mid-sized businesses for general business purposes, including working capital, equipment purchases, inventory financing, and business expansion. These loans are typically secured by business assets and, in most cases, supported by personal guarantees from principal owners.

***Commercial Real Estate Loans***

Commercial real estate loans are made for the acquisition, development, construction and refinancing of owner-occupied and non-owner-occupied income-producing properties. These loans are generally underwritten based on collateral value, borrower equity, projected cash flows and debt service coverage, and may bear interest at fixed or variable rates and include balloon payment features. Construction and development loans are generally short-term in nature and are advanced as construction progresses.

***Agricultural Loans***

Agricultural loans are made to farmers and agribusinesses within the Bank's markets for crop production, livestock operations, equipment purchases, farmland acquisition and general operating needs. Agricultural operating loans are often seasonal and are typically repaid from annual crop or livestock proceeds.

***Residential Real Estate Loans***

Residential real estate loans consist primarily of loans secured by one-to-four family residential properties, including owner-occupied primary residences and, to a lesser extent, investment properties. The Bank offers both fixed-rate and adjustable-rate mortgage products, some of which may be originated for sale into the secondary market, with the remainder held in the Bank's loan portfolio.

***Consumer Loans***

Consumer loans include personal installment loans, automobile loans and other loans made to individuals for household or personal purposes. These loans are generally smaller in size and shorter in maturity than commercial credits and may be secured or unsecured.

***Loan Origination and Underwriting***

The Bank originates loans primarily through its branch network and commercial lending teams. Loan underwriting standards vary by loan type but generally include an evaluation of borrower creditworthiness, income and cash flow capacity, collateral value and loan-to-value ratios, and compliance with applicable internal policies and regulatory requirements. Appraisals or collateral evaluations are obtained in accordance with regulatory standards and the Bank's internal policies.

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***Credit Approval and Lending Limits***

The Bank maintains written loan policies approved by its board of directors that govern underwriting standards, approval authority and portfolio and concentration limits. The Bank employs a tiered credit approval structure under which loans are approved by designated officers or loan committees based on loan size, risk characteristics and borrower exposure, with certain credits requiring approval by senior management or a corporate loan committee.

The Bank is subject to federal and state regulatory lending limits, including borrower-based legal lending limits that generally restrict the total amount of credit that may be extended to a single borrower and its related interests to a specified percentage of the Bank's capital and surplus, currently 15%. The Bank may also establish internal lending limits that are more conservative than those required by regulation.

***Allowance for Credit Losses***

The Bank maintains an allowance for credit losses that management believes is adequate to absorb expected credit losses inherent in the loan portfolio, based on historical experience, current conditions and reasonable and supportable forecasts.

**Deposit Products and Deposit Composition**

Deposits represent the Bank's primary source of funding and consist of a broad mix of consumer, commercial, and public funds deposits generated primarily within the communities the Bank serves. The Bank offers a variety of deposit products designed to meet the needs of retail customers, small and mid-sized businesses, governmental entities, and, through its embedded finance activities, certain fintech partners and their end users.

The Bank's deposit products include noninterest-bearing demand deposit accounts, interest-bearing checking accounts, savings accounts, money market deposit accounts and certificates of deposit with varying maturities and interest rate structures. Commercial deposit products also include treasury management services such as automated clearing house services, remote deposit capture, online and mobile banking solutions and payment processing services.

As of March 31, 2026, the Bank's deposit base was comprised primarily of core deposits, including noninterest-bearing demand deposits and interest-bearing transaction and savings accounts, with the remainder consisting of time deposits. Time deposits generally have original maturities ranging from three months or less to one year or greater and are priced based on market interest rate conditions and competitive factors within the Bank's markets.

A portion of the Bank's deposits is attributable to its banking-as-a-service and embedded finance activities, which may include custodial or program accounts established for the benefit of end users of fintech partners. These deposits are subject to contractual arrangements with the applicable fintech partners and are managed within the Bank's liquidity, interest rate risk, and regulatory compliance frameworks. These contractual arrangements include termination without cause at contractual maturity with up to a 180-day notice, and termination for cause for material non-performance or risk management considerations.

The Bank does not rely materially on brokered deposits as a funding source, and management seeks to emphasize the growth and retention of low-cost core deposits generated through long-term customer relationships. The Bank believes its diversified deposit base, local market presence, and relationship-driven deposit strategy provide a stable and cost-effective source of funding.

The Bank is not materially dependent on any single depositor or group of related depositors, and management monitors deposit concentrations as part of its overall liquidity and risk management processes.

**BaaS and Embedded Finance Activities**

The Bank operates a BaaS division branded as LSBX, which functions alongside the Bank's traditional community banking operations. The Bank launched LSBX in 2014 to empower broader, digitally connected communities by offering a wide range of services to the rapidly-growing fintech industry. Through LSBX, the Bank

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partners with fintech companies by providing card sponsorship, deposit account services, and related infrastructure to their end users. These arrangements enable fintech partners to offer banking products, including checking accounts, savings accounts and debit cards, without obtaining their own bank charter.

Through LSBX, the Bank provides regulated banking services to selected financial technology partners pursuant to contractual arrangements that allocate operational responsibilities between the Bank and its partners. The Bank generally performs core banking functions, including holding customer deposits, processing transactions and issuing debit cards, while fintech partners typically provide customer-facing technology and user experience functions, subject to the Bank's oversight. We do not provide loans to fintech end users.

LSBX operates as part of the Bank's overall business strategy and is managed and overseen within the Bank's existing management, compliance and risk governance structure. Senior management and the Bank's board of directors oversee LSBX as part of the Bank's enterprise-wide risk management and strategic planning processes.

The Bank remains responsible for regulatory compliance and customer protection with respect to activities conducted through LSBX, including compliance with banking laws, consumer protection requirements and Bank Secrecy Act/anti-money laundering obligations. Relationships with fintech partners are subject to the Bank's third-party risk management framework, which includes due diligence, contractual standards, and ongoing monitoring. Currently, the Bank has approximately 500,000 end users across 10 financial technology partners.

Deposits generated through LSBX-related arrangements, including program or custodial accounts established for the benefit of fintech end users, are included in the Bank's overall deposit base and are managed in accordance with the Bank's liquidity, interest rate risk and capital management policies.

Management believes that LSBX provides opportunities for fee-based revenue growth and business diversification. At the same time, the Bank seeks to prudently manage the operational, compliance and reputational risks associated with BaaS activities by scaling the platform in a disciplined manner consistent with regulatory expectations.

**Human Capital Resources**

As of March 31, 2026, the Company employed approximately 225 full-time equivalent employees. The Company's workforce consists of employees engaged in branch banking, commercial and consumer lending, operations and technology, compliance and risk management, trust and wealth management and corporate administration.

The Company believes that its employees are critical to the successful execution of its community banking strategy and to maintaining strong customer relationships within the markets it serves. The Company's human capital strategy is focused on attracting, developing and retaining skilled personnel with local market knowledge, banking experience and a commitment to customer service.

The Company emphasizes recruiting individuals with strong ties to the communities it serves and a demonstrated understanding of local markets. Management believes that this local decision-making culture enhances responsiveness to customer needs and supports prudent credit and relationship management. In addition, the Company seeks to promote internal advancement opportunities in order to retain institutional knowledge and support leadership development. Technology has allowed us to also expand our reach to include a larger demographic with more remote employees working outside our physical footprint and throughout the country.

The Company provides a range of compensation and benefit programs designed to be competitive within its markets and commensurate with employee roles, experience and performance. These programs generally include base salary or wages, performance-based incentive compensation for certain employees, retirement benefits, health and welfare benefits and paid time off.

Employee training and professional development are integral components of the Company's human capital strategy. The Company provides ongoing training related to job responsibilities, regulatory compliance, risk management, customer service, and professional development. Employees in specialized roles, including lending,

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compliance, information technology and trust and wealth management, are encouraged and supported in obtaining relevant certifications and continuing education.

The Company places a strong emphasis on regulatory compliance, operational integrity, and ethical conduct. Employees receive training on applicable banking laws, regulatory requirements and internal policies, including those related to the Bank Secrecy Act/anti-money laundering compliance, information security and customer privacy.

Management seeks to foster a workplace culture that emphasizes accountability, collaboration and long-term employee engagement. The Company believes that its relatively stable workforce and low employee turnover contribute to operational continuity, consistent customer service and effective risk management.

Management believes that its employees and local decision-making culture are critical to maintaining strong customer relationships and executing the Company's business strategy.

**Customer and Revenue Concentration**

The Company is not materially dependent on any single customer, depositor, borrower, fintech partner or other relationship for its revenues. In addition, the Company is not materially dependent on any single line of business, and no material portion of the Company's revenues is derived from government contracts.

**Seasonality and Economic Sensitivity**

The Company's business is subject to general economic conditions in the markets it serves, including agricultural and commercial activity within Iowa. While certain lending and deposit activity may experience modest seasonal fluctuations, particularly related to agricultural cycles, management does not believe that seasonality has a material effect on the Company's results of operations.

**Intellectual Property**

The Company does not materially depend on patents, trademarks, licenses, or other intellectual property rights in the conduct of its business.

**Environmental and Other Regulatory Matters**

The Company and the Bank are subject to extensive federal and state regulation and supervision. Compliance with banking, consumer protection, environmental, and related laws and regulations has not had a material adverse effect on the Company's capital expenditures, earnings, or competitive position, although such compliance results in ongoing operating and compliance costs. Additional information regarding regulation and supervision is included under "Supervision and Regulation."

**Legal Proceedings**

From time to time, we are a party to various litigation matters incidental to the conduct of our business. We do not believe that any currently pending legal proceedings will have a material adverse effect on our business, financial condition or results of operations.

**Properties** 

The Company and the Bank conduct their operations primarily through banking facilities and administrative offices located within the State of Iowa. The Bank's principal executive offices are located in Reinbeck, Iowa, where the Company maintains its headquarters and primary administrative functions.

As of March 31, 2026, the Bank operated 16 full-service branch offices. These branch offices are located throughout the State of Iowa and are operated as part of the Company's single reportable segment, banking operations. The Company's properties consist of a combination of owned and leased facilities. Management believes that all such properties are well maintained, adequately insured, and suitable for their intended use. The leases

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applicable to leased facilities are typical for similar properties in their respective markets and do not contain material terms that would adversely affect the Company's operations.

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| | |
|:---|:---|
| **Address** | **Ownership** |
| 508 Main Street, Reinbeck, IA 50669 | Owned |
| 402 N Main Street, Allison, IA 50602 | Owned |
| 932 Parriott Street, Aplington, IA 50604 | Owned |
| 302 Main Street, Cedar Falls, IA 50613 | Owned |
| 1922 Ingersoll Ave, Des Moines, IA 50309 | Owned |
| 230 Main Street, Garwin, IA 50632 | Owned |
| 111 E Traer Street, Greene, IA 50636 | Owned |
| 1025 Main Street, Grinnell, IA 50112 | Owned |
| 141 Eldora Road, Hudson, IA 50643 | Owned |
| 121 Cedar Street, Nashua, IA 50658 | Owned |
| 214 W 4th Street, Tama, IA 52339 | Owned |
| 242 Tower Park Drive, Waterloo, IA 50701 | Owned |
| 13523 University Ave, Clive, IA 50325 | Owned |
| 312 Nile Kinnick Drive S, Adel, IA 50003 | Owned |
| 1375 SW State Street, Ankeny, IA 50023 | Owned |
| 109 Main Street, Lincoln, IA 50652 | Owned |

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In addition to its branch network, the Company utilizes certain facilities for administrative, operations, technology, trust and wealth management functions, including a leased, dedicated office for wealth management personnel located in West Des Moines, Iowa. The bank's main operations and administrative facility is located at 360 Westfield Ave, Suite 6, Waterloo, IA 50701. This is a bank-owned facility.

The Company does not believe that any individual property is material to its business on a standalone basis or that the loss of any single facility would have a material adverse effect on its operations. Management believes that the Company's current facilities, taken as a whole, provide sufficient capacity to support its existing operations and anticipated growth.

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**SUPERVISION AND REGULATION**

**General**

We are extensively regulated under federal and state law. The following is a brief summary that does not purport to be a complete description of all regulations that affect us or all aspects of those regulations. This discussion is qualified in its entirety by reference to the particular statutory and regulatory provisions described below and is not intended to be an exhaustive description of the statutes or regulations applicable to the Company's and the Bank's business. In addition, proposals to change the laws and regulations governing the banking industry are frequently raised at both the state and federal levels. The likelihood and timing of any changes in these laws and regulations, and the impact such changes may have on us and the Bank, are difficult to predict. In addition, bank regulatory agencies may issue enforcement actions, policy statements, interpretive letters and similar written guidance applicable to us or the Bank. Changes in applicable laws, regulations or regulatory guidance, or their interpretation by regulatory agencies or courts may have a material adverse effect on our and the Bank's business, operations and earnings. Supervision and regulation of banks, their holding companies and affiliates is intended primarily for the protection of depositors and customers, the DIF of the FDIC, and the U.S. banking and financial system rather than holders of our capital stock.

**Regulation of the Company**

We are registered as a bank holding company with the Federal Reserve under the Bank Holding Company Act of 1956, as amended (the "BHC Act"). As such, we are subject to comprehensive supervision and regulation by the Federal Reserve and are subject to its regulatory reporting requirements. Federal law subjects bank holding companies, such as the Company, to particular restrictions on the types of activities in which they may engage, and to a range of supervisory requirements and activities, including regulatory enforcement actions for violations of laws and regulations. Violations of laws and regulations, or other unsafe and unsound practices, may result in regulatory agencies imposing fines or penalties, cease and desist orders or taking other enforcement actions. Under certain circumstances, these agencies may enforce these remedies directly against officers, directors, employees and other parties participating in the affairs of a bank or bank holding company.

*Activity Limitations.* Bank holding companies are generally restricted to engaging in the business of banking, managing or controlling banks and certain other activities determined by the Federal Reserve to be closely related to banking. In addition, the Federal Reserve has the power to order a bank holding company or its subsidiaries to terminate any nonbanking activity or terminate its ownership or control of any nonbank subsidiary, when it has reasonable cause to believe that continuation of such activity or such ownership or control constitutes a serious risk to the financial safety, soundness or stability of any bank subsidiary of that bank holding company.

*Source of Strength Obligations.* A bank holding company is required to act as a source of financial and managerial strength to its subsidiary bank and to maintain resources adequate to support its bank. The term "source of financial strength" means the ability of a company, such as us, that directly or indirectly owns or controls an insured depository institution, such as the Bank, to provide financial assistance to such insured depository institution in the event of financial distress. The appropriate federal banking agency for the depository institution (in the case of the Bank, this agency is the FDIC) may require reports from us to assess our ability to serve as a source of strength and to enforce compliance with the source of strength requirements by requiring us to provide financial assistance to the Bank in the event of financial distress. If we were to enter bankruptcy or become subject to the orderly liquidation process established by the Dodd-Frank Act, any commitment by us to a federal bank regulatory agency to maintain the capital of the Bank would be assumed by the bankruptcy trustee or the FDIC, as appropriate, and entitled to a priority of payment.

*Acquisitions.* The BHC Act permits acquisitions of banks by bank holding companies, such that we and any other bank holding company, whether located in Iowa or elsewhere, may acquire a bank located in any other state, subject to certain deposit-percentage, age of bank charter requirements and other restrictions. The BHC Act requires that a bank holding company obtain the prior approval of the Federal Reserve before (i) acquiring direct or indirect ownership or control of more than 5% of the voting shares of any additional bank or bank holding company, (ii) taking any action that causes an additional bank or bank holding company to become a subsidiary of the bank

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holding company or (iii) merging or consolidating with any other bank holding company. The Federal Reserve may not approve any such transaction that would result in a monopoly or would be in furtherance of any combination or conspiracy to monopolize or attempt to monopolize the business of banking in any section of the United States, or the effect of which may be substantially to lessen competition or to tend to create a monopoly in any section of the country, or that in any other manner would be in restraint of trade, unless the anticompetitive effects of the proposed transaction are clearly outweighed by the public interest in meeting the convenience and needs of the community to be served. The Federal Reserve is also required to consider: (1) the financial and managerial resources of the companies involved, including pro forma capital ratios; (2) the risk to the stability of the United States banking or financial system; (3) the convenience and needs of the communities to be served, including performance under the Community Reinvestment Act, further described below and (4) the effectiveness of the companies in combatting money laundering.

*Change in Control.* Federal law restricts the amount of voting stock of a bank holding company or a bank that a person may acquire without the prior approval of banking regulators. Under the Change in Bank Control Act and the regulations thereunder, a person or group must give advance notice to the Federal Reserve before acquiring control of any bank holding company, such as the Company, and the FDIC before acquiring control of the Bank. Upon receipt of such notice, the bank regulatory agencies may approve or disapprove the acquisition. The Change in Bank Control Act creates a rebuttable presumption of control if a person or group acquires the power to vote 10% or more of our outstanding common stock. The overall effect of such laws is to make it more difficult to acquire a bank holding company and a bank by tender offer or similar means than it might be to acquire control of another type of corporation. Consequently, shareholders of the Company may be less likely to benefit from the rapid increases in stock prices that may result from tender offers or similar efforts to acquire control of other companies. Investors should be aware of these requirements when acquiring shares of our stock.

*Sarbanes-Oxley Act of 2002.* Once we become a public company that files periodic reports with the SEC, under the Exchange Act, the Company is subject to the Sarbanes-Oxley Act of 2002 (the "Sarbanes-Oxley Act"), which addresses, among other issues, corporate governance, auditing and accounting, executive compensation and enhanced and timely disclosure of corporate information. The Sarbanes-Oxley Act represents significant federal involvement in matters traditionally left to state regulatory systems, such as the regulation of the accounting profession, and to state corporate law, such as the relationship between a board of directors and management and between a board of directors and its committees. Our policies and procedures are designed to comply with the requirements of the Sarbanes-Oxley Act.

*Incentive Compensation.* The Dodd-Frank Act required the banking agencies and the SEC to establish joint rules or guidelines for financial institutions with more than $1 billion in assets, such as us and the Bank, which prohibit incentive compensation arrangements that the agencies determine to encourage inappropriate risks by the institution. The federal banking agencies issued proposed rules in 2011 and previously issued guidance on sound incentive compensation policies. In 2016, the federal banking agencies also proposed rules that would, depending upon the assets of the institution, directly regulate incentive compensation arrangements and would require enhanced oversight and recordkeeping. As of December 31, 2025, these rules have not been implemented, although the SEC did adopt final rules implementing the clawback provisions of the Dodd-Frank Act in 2022. We and the Bank have undertaken efforts to ensure that our incentive compensation plans do not encourage inappropriate risks, consistent with three key principles - that incentive compensation arrangements should appropriately balance risk and financial rewards, be compatible with effective controls and risk management and be supported by strong corporate governance.

*Shareholder Say-On-Pay Votes.* The Dodd-Frank Act requires public companies to take shareholders' votes on proposals addressing compensation (known as say-on-pay), the frequency of a say-on-pay vote, and the golden parachutes available to executives in connection with change-in-control transactions. Public companies must give shareholders the opportunity to vote on the compensation at least every three years and the opportunity to vote on frequency at least every six years, indicating whether the say-on-pay vote should be held annually, biennially, or triennially. The say-on-pay, the say-on-parachute and the say-on-frequency votes are explicitly nonbinding and cannot override a decision of our board of directors.

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*Other Regulatory Matters.* Once we become a public company, we and our subsidiaries will be subject to oversight by the SEC, the PCAOB, and various state securities regulators.

***Capital Requirements***

The Company and the Bank are each required under federal law to maintain certain minimum capital levels based on ratios of capital to total assets and capital to risk-weighted assets. The required capital ratios are minimums, and the federal banking agencies may determine that a banking organization, based on its size, complexity or risk profile, must maintain a higher level of capital in order to operate in a safe and sound manner. Risks such as concentration of credit risks and the risk arising from non-traditional activities, as well as the institution's exposure to a decline in the economic value of its capital due to changes in interest rates and an institution's ability to manage those risks are important factors that are to be taken into account in assessing an institution's overall capital adequacy. The following is a brief description of the relevant provisions of these capital rules and their potential impact on our capital levels.

The Company and the Bank are subject to the following risk-based capital ratios: a common equity Tier 1 ("CET1") risk-based capital ratio, a Tier 1 risk-based capital ratio, which includes CET1 and additional Tier 1 capital, and a total risk-based capital ratio, which includes Tier 1 and Tier 2 capital. CET1 is primarily comprised of the sum of common stock instruments and related surplus net of treasury stock, plus retained earnings, and certain qualifying minority interests, less certain adjustments and deductions, including with respect to goodwill, intangible assets, mortgage servicing assets and deferred tax assets subject to temporary timing differences. Additional Tier 1 capital is primarily comprised of noncumulative perpetual preferred stock, tier 1 minority interests and grandfathered trust preferred securities. Tier 2 capital consists of instruments disqualified from Tier 1 capital, including qualifying subordinated debt, other preferred stock and certain hybrid capital instruments, and a limited amount of loan loss reserves up to a maximum of 1.25% of risk-weighted assets, subject to certain eligibility criteria. The capital rules also define the risk-weights assigned to assets and off-balance sheet items to determine the risk-weighted asset components of the risk-based capital rules, including, for example, certain "high volatility" commercial real estate, past due assets, structured securities and equity holdings.

The leverage capital ratio, which serves as a minimum capital standard, is the ratio of Tier 1 capital to quarterly average total consolidated assets net of goodwill, certain other intangible assets, and certain required deduction items. The required minimum leverage ratio for all banks is 4%.

In addition, as of January 1, 2019, the capital rules require a capital conservation buffer of 2.5%, constituted of CET1, above each of the minimum risk-based capital ratio requirements (CET1, Tier 1 and total risk-based capital), which is designed to absorb losses during periods of economic stress. These buffer requirements must be met for a bank or bank holding company to be able to pay dividends, engage in share buybacks or make discretionary bonus payments to executive management without restriction.

The Federal Deposit Insurance Corporation Improvement Act of 1991 (the "FDICIA"), among other things, requires the federal bank regulatory agencies to take "prompt corrective action" regarding depository institutions that do not meet minimum capital requirements. The FDICIA establishes five regulatory capital tiers: "well capitalized," "adequately capitalized," "undercapitalized," "significantly undercapitalized" and "critically undercapitalized." A depository institution's capital tier will depend upon how its capital levels compare to various relevant capital measures and certain other factors, as established by regulation. The FDICIA generally prohibits a depository institution from making any capital distribution (including payment of a dividend) or paying any management fee to its holding company if the depository institution would thereafter be undercapitalized.

To be well capitalized, the Bank must maintain at least the following capital ratios:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• 6.5% CET1 to risk-weighted assets;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• 8.0% Tier 1 capital to risk-weighted assets;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• 10.0% Total capital to risk-weighted assets and

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• 5.0% leverage ratio.

Failure of the Bank to be well capitalized or to meet minimum capital requirements could result in certain mandatory and possible additional discretionary actions by regulators that, if undertaken, could have an adverse material effect on our operations or financial condition. For example, only a well capitalized depository institution may accept brokered deposits without prior regulatory approval. Failure to be well capitalized or to meet minimum capital requirements could also result in restrictions on the Bank's ability to pay dividends or otherwise distribute capital or to receive regulatory approval of applications or other restrictions on its growth.

As of March 31, 2026 and December 31, 2025, the Bank's regulatory capital ratios were above the applicable well capitalized standards and met the capital conservation buffer.

As a result of the Economic Growth Act, the federal banking agencies were also required to develop a "Community Bank Leverage Ratio" (the ratio of a bank's Tier 1 capital to average total consolidated assets) for financial institutions with assets of less than $10 billion. A "qualifying community bank" that exceeds this ratio will be deemed to be in compliance with all other capital and leverage requirements, including the capital requirements to be considered "well capitalized" under prompt corrective action statutes. The federal banking agencies may consider a financial institutions risk profile when evaluation whether it qualifies as a community bank for purposes of the capital ratio requirement. The federal banking agencies set the minimum capital for the new Community Bank Leverage Ratio at 9%. The Bank has not opted into the Community Bank Leverage Ratio Framework.

The Economic Growth, Regulatory Relief, and Consumer Protection Act (the "Economic Growth Act") signed into law in May 2018 scaled back certain requirements of the Dodd-Frank Act and provided other regulatory relief. Among the provisions of the Economic Growth Act was a requirement that the Federal Reserve raise the asset threshold for those bank holding companies subject to the Federal Reserve's Small Bank Holding Company Policy Statement ("Policy Statement") to $3 billion. As a result, as of the effective date of that change in 2018, the Company was no longer required to comply with the risk-based capital rules applicable to the Bank as described above.

The Federal Reserve has defined a well capitalized bank holding company to have, on a consolidated basis, total risk-based capital of 10% or greater and Tier 1 risk-based capital of 6% or greater. The Company's capital ratios as of March 31, 2026 exceeded such well capitalized standard. Also, the Federal Reserve may require bank holding companies, including the Company, to maintain capital ratios substantially in excess of mandated minimum levels, depending upon general economic conditions and a bank holding company's particular condition, risk profile and growth plans.

***Payment of Dividends***

We are a legal entity separate and distinct from the Bank and our other subsidiaries. Our primary source of cash, other than securities offerings, is dividends from the Bank. Under the laws of the State of Iowa, we, as a business corporation, may declare and pay dividends in cash or property unless the payment or declaration would be contrary to restrictions contained in our Articles of Incorporation, or unless, after payment of the dividend, we would not be able to pay our debts when they become due in the usual course of our business or our total assets would be less than the sum of our total liabilities. In addition, we are also subject to federal regulatory capital requirements that effectively limit the amount of cash dividends that we may pay.

The primary sources of funds for our payment of dividends to our shareholders are cash on hand and dividends from the Bank. Various federal and state statutory provisions and regulations limit the amount of dividends that the Bank and our non-bank subsidiaries may pay. The Bank is an Iowa bank. The Iowa Banking Act provides that an Iowa bank may not pay dividends in an amount greater than its undivided profits.

In addition, we and the Bank are subject to various general regulatory policies and requirements relating to the payment of dividends, including requirements to maintain adequate capital above regulatory minimums. The appropriate federal bank regulatory authority may prohibit the payment of dividends where it has determined that the payment of dividends would be an unsafe or unsound practice and to prohibit payment thereof. The FDIC has indicated that paying dividends that deplete a bank's capital base to an inadequate level would be an unsafe and

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unsound banking practice. The FDIC and the Federal Reserve have each indicated that depository institutions and their holding companies should generally pay dividends only out of current operating earnings. Prior approval by the FDIC is required if the total of all dividends declared by a bank in any calendar year exceeds the bank's profits for that year combined with its retained net profits for the preceding two calendar years.

Under a Federal Reserve policy adopted in 2009, the board of directors of a bank holding company must consider different factors to ensure that its dividend level is prudent relative to maintaining a strong financial position, and is not based on overly optimistic earnings scenarios, such as potential events that could affect its ability to pay, while still maintaining a strong financial position. As a general matter, the Federal Reserve has indicated that the board of directors of a bank holding company should consult with the Federal Reserve and eliminate, defer or significantly reduce the bank holding company's dividends if:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• its net income available to shareholders for the past four quarters, net of dividends previously paid during that period, is not sufficient to fully fund the dividends;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• its prospective rate of earnings retention is not consistent with its capital needs and overall current and prospective financial condition or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• it will not meet, or is in danger of not meeting, its minimum regulatory capital adequacy ratios.

**Regulation of the Bank**

The Bank is subject to comprehensive supervision and regulation by the FDIC and is subject to its regulatory reporting requirements. The Bank also is subject to certain Federal Reserve regulations. In addition, as discussed in more detail below, the Bank and any other of our subsidiaries that offer consumer financial products and services are subject to regulation and potential supervision by the CFPB. Authority to supervise and examine the Company and the Bank for compliance with federal consumer laws remains largely with the Federal Reserve and the FDIC, respectively. However, the CFPB may participate in examinations on a "sampling basis" and may refer potential enforcement actions against such institutions to their primary regulators. The CFPB also may participate in examinations of our other direct or indirect subsidiaries that offer consumer financial products or services. In addition, the Dodd-Frank Act permits states to adopt consumer protection laws and regulations that are stricter than those regulations promulgated by the CFPB, and state attorney generals are permitted to enforce certain federal consumer financial protection rules adopted by the CFPB.

Broadly, regulations applicable to the Bank include limitations on loans to a single borrower and to its directors, officers and employees; restrictions on the opening and closing of branch offices; the maintenance of required capital and liquidity ratios; the granting of credit under equal and fair conditions; the disclosure of the costs and terms of such credit; requirements to maintain reserves against deposits and loans; limitations on the types of investment that may be made by the Bank and requirements governing risk management practices. The Bank is permitted under federal law to open a branch on a de novo basis across state lines where the laws of that state would permit a bank chartered by that state to open a de novo branch.

*Transactions with Affiliates and Insiders.* The Bank is subject to restrictions on extensions of credit and certain other transactions between the Bank and the Company or any nonbank affiliate. Generally, these covered transactions with either the Company or any affiliate are limited to 10% of the Bank's capital and surplus, and all such transactions between the Bank and the Company and all of its nonbank affiliates combined are limited to 20% of the Bank's capital and surplus. Loans and other extensions of credit from the Bank to the Company or any affiliate generally are required to be secured by eligible collateral in specified amounts. In addition, any transaction between the Bank and the Company or any affiliate are required to be on an arm's length basis. Federal banking laws also place similar restrictions on certain extensions of credit by insured banks, such as the Bank, to their directors, executive officers and principal shareholders.

*Reserves.* Federal Reserve rules require depository institutions, such as the Bank, to maintain reserves against their transaction accounts, primarily interest bearing and noninterest bearing checking accounts. Effective March 26, 2020, reserve requirement ratios were reduced to zero percent. These reserve requirements are subject to annual adjustment by the Federal Reserve.

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*FDIC Insurance Assessments and Depositor Preference.* The Bank's deposits are insured by the FDIC's DIF up to the limits under applicable law, which currently are set at $250,000 per depositor, per insured bank, for each account ownership category. The Bank is subject to FDIC assessments for its deposit insurance. The FDIC calculates quarterly deposit insurance assessments based on an institution's average total consolidated assets less its average tangible equity and applies one of four risk categories determined by reference to its capital levels, supervisory ratings and certain other factors. The assessment rate schedule can change from time to time, at the discretion of the FDIC, subject to certain limits.

As of September 30, 2025, the DIF reserve ratio reached 1.40%, exceeding the statutory minimum of 1.35%. The FDIC, as required under the Federal Deposit Insurance Act, established a plan on September 15, 2020 to restore the DIF reserve ratio to meet or exceed the statutory minimum of 1.35% within eight years. On October 18, 2022, the FDIC adopted a final plan and increased the initial base deposit insurance assessment rate schedules uniformly by 2 basis points, beginning in the first quarterly assessment period of 2023. The FDIC could further increase the deposit insurance assessments for certain insured depository institutions, including the Bank, if the DIF reserve ratio is not maintained.

Insurance of deposits may be terminated by the FDIC upon a finding that the institution has engaged in unsafe and unsound practices, is in an unsafe or unsound condition to continue operations, or has violated any applicable law, regulation, rule, order or condition imposed by a bank's federal regulatory agency. In addition, the Federal Deposit Insurance Act provides that, in the event of the liquidation or other resolution of an insured depository institution, the claims of depositors of the institution, including the claims of the FDIC as subrogee of insured depositors, and certain claims for administrative expenses of the FDIC as a receiver, will have priority over other general unsecured claims against the institution, including those of the parent bank holding company.

*Standards for Safety and Soundness.* The Federal Deposit Insurance Act requires the federal bank regulatory agencies to prescribe, by regulation or guideline, operational and managerial standards for all insured depository institutions relating to: (1) internal controls; (2) information systems and audit systems; (3) loan documentation; (4) credit underwriting; (5) interest rate risk exposure and (6) asset quality. The federal banking agencies have adopted regulations and Interagency Guidelines Establishing Standards for Safety and Soundness to implement these required standards. These guidelines set forth the safety and soundness standards used to identify and address problems at insured depository institutions before capital becomes impaired. Under the regulations, if a regulator determines that a bank fails to meet any standards prescribed by the guidelines, the regulator may require the bank to submit an acceptable plan to achieve compliance, consistent with deadlines for the submission and review of such safety and soundness compliance plans.

*Anti-Money Laundering.* A continued focus of governmental policy relating to financial institutions in recent years has been combating money laundering and terrorist financing. The USA PATRIOT Act broadened the application of anti-money laundering regulations to apply to additional types of financial institutions such as broker-dealers, investment advisors and insurance companies, and strengthened the ability of the U.S. Government to help prevent, detect and prosecute international money laundering and the financing of terrorism. The principal provisions of Title III of the USA PATRIOT Act require that regulated financial institutions, including state member banks: (i) establish an anti-money laundering program that includes training and audit components; (ii) comply with regulations regarding the verification of the identity of any person seeking to open an account; (iii) take additional required precautions with non-U.S. owned accounts and (iv) perform certain verification and certification of money laundering risk for their foreign correspondent banking relationships. Failure of a financial institution to comply with the USA PATRIOT Act's requirements could have serious legal and reputational consequences for the institution. The Bank has augmented its systems and procedures to meet the requirements of these regulations and will continue to revise and update its policies, procedures and controls to reflect changes required by law.

The FinCEN has adopted rules that require financial institutions to obtain beneficial ownership information with respect to legal entities with which such institutions conduct business, subject to certain exclusions and exemptions. Bank regulators are focusing their examinations on anti-money laundering compliance, and we continue to monitor and augment, where necessary, our anti-money laundering compliance programs.

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Banking regulators will consider compliance with the USA PATRIOT Act's money laundering provisions in acting upon acquisition and merger proposals. Bank regulators routinely examine institutions for compliance with these obligations and have been active in imposing cease and desist and other regulatory orders and money penalty sanctions against institutions found to be violating these obligations. Sanctions for violations of the USA PATRIOT Act can be imposed in an amount equal to twice the sum involved in the violating transaction, up to $1 million. On January 1, 2021, Congress passed federal legislation that made sweeping changes to federal anti-money laundering laws, subject to pending implementation by regulatory rulemaking. In 2024, US federal regulators proposed amendments to modernize Anti-Money Laundering (AML) and Countering the Financing of Terrorism (CFT) program requirements. Aligned with the Anti-Money Laundering Act of 2020, the rules mandate a risk-based approach requiring institutions to identify, evaluate, and document risks based on business activities and national priorities.

*Economic Sanctions.* The OFAC is responsible for helping to ensure that U.S. entities do not engage in transactions with certain prohibited parties, as defined by various Executive Orders and acts of Congress. OFAC publishes, and routinely updates, lists of names of persons and organizations suspected of aiding, harboring or engaging in terrorist acts, including the Specially Designated Nationals and Blocked Persons List. If we find a name on any transaction, account or wire transfer that is on an OFAC list, we must undertake certain specified activities, which could include blocking or freezing the account or transaction requested, and we must notify the appropriate authorities.

*Concentrations in Lending.* In 2006, the federal bank regulatory agencies released guidance on "Concentrations in Commercial Real Estate Lending" (the "Guidance") and advised financial institutions of the risks posed by commercial real estate ("CRE") lending concentrations. The Guidance requires that appropriate processes be in place to identify, monitor and control risks associated with real estate lending concentrations. Higher allowances for credit losses and capital levels may also be required. The Guidance is triggered when CRE loan concentrations exceed either:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Total reported loans for construction, land development and other land of 100% or more of a bank's total risk based capital or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Total reported loans secured by multifamily and nonfarm nonresidential properties and loans for construction, land development and other land of 300% or more of a bank's total risk based capital.

The Guidance also applies when a bank has a sharp increase in CRE loans or has significant concentrations of CRE secured by a particular property type. We have always had exposures to loans secured by commercial real estate due to the nature of our markets and the loan needs of both retail and commercial customers. We believe our long term experience in CRE lending, underwriting policies, internal controls and other policies currently in place, as well as our loan and credit monitoring and administration procedures, are generally appropriate to managing our concentrations as required under the Guidance.

*Community Reinvestment Act.* The Bank is subject to the provisions of the Community Reinvestment Act (the "CRA"), which imposes a continuing and affirmative obligation, consistent with their safe and sound operation, to help meet the credit needs of entire communities where the bank accepts deposits, including low- and moderate-income neighborhoods. The FDIC's assessment of the Bank's CRA record is made available to the public. Further, a less than satisfactory CRA rating will slow, if not preclude, expansion of banking activities. Following the enactment of the GLB Act, CRA agreements with private parties must be disclosed and annual CRA reports must be made to a bank's primary federal regulator. Federal CRA regulations require, among other things, that evidence of discrimination against applicants on a prohibited basis, and illegal or abusive lending practices be considered in the CRA evaluation. The Bank has a rating of "Satisfactory" in its most recent CRA evaluation.

In 2023 the Federal Reserve, Office of the Comptroller of the Currency (the "OCC") and FDIC issued a final rule to modernize their respective CRA regulations. The revised rules would substantially alter the methodology for assessing compliance with the CRA, with material aspects taking effect January 1, 2026 and revised data reporting requirements taking effect January 1, 2027. The revised CRA regulations have been subject to an injunction since March 29, 2024. On July 16, 2025, the Federal Reserve, OCC and FDIC issued a joint proposal to rescind the 2023

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modernization rule. The agencies continue to apply the CRA rules as they existed before the 2023 modernization, considering the injunction and pending finalization of the recission of the modernization rule.

*Privacy and Data Security.* The GLB Act generally prohibits disclosure of consumer information to non-affiliated third parties unless the consumer has been given the opportunity to object and has not objected to such disclosure. Financial institutions are further required to disclose their privacy policies to customers annually. Financial institutions, however, will be required to comply with state law if it is more protective of consumer privacy than the GLB Act. The GLB Act also directed federal regulators, including the FDIC, to prescribe standards for the security of consumer information. The Bank is subject to such standards, as well as standards for notifying customers in the event of a security breach. Under federal law, the Bank must disclose its privacy policy to consumers, permit customers to opt out of having nonpublic customer information disclosed to third parties in certain circumstances and allow customers to opt out of receiving marketing solicitations based on information about the customer received from another subsidiary. States may adopt more extensive privacy protections. We are similarly required to have an information security program to safeguard the confidentiality and security of customer information and to ensure proper disposal. Customers must be notified when unauthorized disclosure involves sensitive customer information that may be misused. The federal banking agencies require banks to notify their regulators within 36 hours of a "computer-security incident" that rises to the level of a "notification incident."

*Consumer Regulation.* Activities of the Bank are subject to a variety of statutes and regulations designed to protect consumers. These laws and regulations include, among numerous other things, provisions that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• limit the interest and other charges collected or contracted for by the Bank, including new rules respecting the terms of credit cards and of debit card overdrafts;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• govern the Bank's disclosures of credit terms to consumer borrowers;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• require the Bank to provide information to enable the public and public officials to determine whether it is fulfilling its obligation to help meet the housing needs of the community it serves;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• prohibit the Bank from discriminating on the basis of race, creed or other prohibited factors when it makes decisions to extend credit;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• govern the manner in which the Bank may collect consumer debts and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• prohibit unfair, deceptive or abusive acts or practices in the provision of consumer financial products and services.

*Mortgage Regulation.* The CFPB has issued rules to implement requirements of the Dodd-Frank Act pertaining to mortgage loan origination (including with respect to loan originator compensation and loan originator qualifications) as well as integrated mortgage disclosure rules. In addition, the CFPB has issued rules that require servicers to comply with new standards and practices with regard to: error correction; information disclosure; force-placement of insurance; information management policies and procedures; requiring information about mortgage loss mitigation options be provided to delinquent borrowers; providing delinquent borrowers access to servicer personnel with continuity of contact about the borrower's mortgage loan account; and evaluating borrowers' applications for available loss mitigation options. These rules also address initial rate adjustment notices for adjustable-rate mortgages ("ARMs"), periodic statements for residential mortgage loans and prompt crediting of mortgage payments and response to requests for payoff amounts.

In 2020, the Coronavirus Aid, Relief, and Economic Security Act (the "CARES Act") granted certain forbearance rights and protection against foreclosure to borrowers with a "federally backed mortgage loan," including certain first or subordinate lien loans designed principally for the occupancy of one to four families. These consumer protections under the CARES Act continued during the COVID 19 pandemic emergency, and while most of these protections expired in 2022, on January 18, 2023, in its revised Mortgage Servicing Examination Procedures, the CFPB stated it expected servicers to continue to utilize these safeguards, regardless of their expiration.

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*Non-Discrimination Policies.* The Bank is also subject to, among other things, the provisions of the Equal Credit Opportunity Act (the "ECOA") and the Fair Housing Act (the "FHA"), both of which prohibit discrimination based on race or color, religion, national origin, sex, and familial status in any aspect of a consumer or commercial credit or residential real estate transaction. The Department of Justice (the "DOJ"), and the federal bank regulatory agencies have issued an Interagency Policy Statement on Discrimination in Lending that provides guidance to financial institutions in determining whether discrimination exists, how the agencies will respond to lending discrimination, and what steps lenders might take to prevent discriminatory lending practices. The DOJ has increased its efforts to prosecute what it regards as violations of the ECOA and FHA.

*Cybersecurity:* The federal banking regulators regularly issue new guidance and standards and update existing guidance and standards regarding cybersecurity intended to enhance cyber risk management among financial institutions. Financial institutions are expected to comply with such guidance and standards and to accordingly develop appropriate security controls and risk management processes. If we fail to observe such regulatory guidance or standards, we could be subject to various regulatory sanctions, including financial penalties. The SEC has adopted a rule that requires disclosure of material cybersecurity incidents, as well as cybersecurity risk management, strategy and governance. Under this rule, banking organizations that are SEC registrants must generally disclose information about a material cybersecurity incident within four business days of determining it is material with periodic updates as to the status of the incident in subsequent filings as necessary.

Federal banking agencies additionally require banking organizations to notify their primary banking regulator within 36 hours of determining that a "computer-security incident" has materially disrupted or degraded, or is reasonably likely to materially disrupt or degrade, the banking organization's ability to carry out banking operations or deliver banking products and services to a material portion of its customer base, its businesses and operations that would result in material loss or its operations that would impact the stability of the United States.

State regulators have also been increasingly active in implementing privacy and cybersecurity standards and regulations. Recently, several states have adopted regulations requiring certain financial institutions to implement cybersecurity programs and many states, including Iowa, have also recently implemented or modified their data breach notification, information security and data privacy requirements. We expect this trend of state-level activity in those areas to continue and are continually monitoring developments in the states in which our customers are located.

Risks and exposures related to cybersecurity attacks, including litigation and enforcement risks, are expected to be elevated for the foreseeable future due to the rapidly evolving nature and sophistication of these threats, as well as due to the expanding use of Internet banking, mobile banking and other technology-based products and services by us and our customers.

See "Risk Factors" for a further discussion of risks related to cybersecurity.

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**MANAGEMENT**

**Board of Directors**

Our board of directors currently consists of nine members. Our board of directors is divided into three classes, with staggered three-year terms, and directors in each class are elected at the annual meeting of shareholders in the year in which their respective terms expire. Each director serves until his or her successor is duly elected and qualified. Pursuant to our Bylaws, our board of directors is authorized to consist of not fewer than five or more than fourteen directors, with the exact number of directors determined from time to time by resolution of the board of directors. All directors of the Company also serve as directors of the Bank.

The following table sets forth certain summary information about our current directors, including their names, ages, classes, and year in which they began serving as a director. No current director has any family relationship, as defined in Item 401 of Regulation S-K, with any other director or with any of our executive officers. There are no arrangements or understandings between any of the directors and any other person pursuant to which he or she was selected as a director except as disclosed below. See the section entitled "Certain Relationships and Related Party Transactions - Transactions with Castle Creek - Board Representation and Observer Rights."

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Name**  | **Age**  | **Position**  | **Director**<br>**Since**  | **Expiration**<br>**Year**  | **Class** |
| Sally Hollis | 52 | Chairman and Director | 2017 | 2029 | III |
| David Deeds | 57  | Vice Chairman and Director  | 2016 | 2029 | III |
| Sean Willett | 54 | Director, President & Chief Executive Officer | 2024 | 2028 | II |
| Michael Peterson  | 58  | Director  | 2010  | 2027 | I |
| W. Scott Bush | 50  | Director  | 2017  | 2027 | I |
| Spencer Cohn | 38  | Director  | 2022 | 2027 | I |
| Denny Presnall | 72 | Director | 2017 | 2029 | III |
| John Teeple | 57 | Director | 2026 | 2029 | III |
| Rodney Foster | 65 | Director | 2026 | 2028 | II |

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*Sally Hollis*. Ms. Hollis is the Chairman of the board of directors of the Company and the Bank. She has served on the board of directors since 2017. Ms. Hollis received her undergraduate degree from Iowa State University and an MBA from the University of Northern Iowa. She was employed by John Deere for fifteen years and has spent the past twelve years leading Lanehaven Farms, Inc., a family-owned agricultural operation in Northeast Iowa that produces corn, soybeans, seed corn, organic grains, and hogs. Ms. Hollis also serves as a Trustee of the McElroy Trust. She is the Chair of the Nominating and Corporate Governance Committee and Executive Committee and a member of the Compensation Committee.

*David Deeds*. Mr. Deeds is the Vice Chairman of the Company and the Bank and has served on the board of directors since 2016. He is currently President of JSA Development and Walsh Holding Company in Waterloo, Iowa, and is an Associate Professor of Practice in Accounting at the University of Northern Iowa. Mr. Deeds is a Certified Public Accountant. He received his undergraduate degree from the University of Northern Iowa and an MBA from the University of Kansas. Mr. Deeds is the Chair of the Audit Committee, Vice Chair of the Risk Committee, Vice Chair of the Compensation Committee, and Vice Chair of the Executive Committee.

*Sean Willett*. Mr. Willett is a director of the Company and the Bank and joined the board of directors in 2024. He also serves as President and Chief Executive Officer of the Company and the Bank. Previously, Mr. Willett served as Executive Vice President at Five Star Bank, a $6.2 billion community bank headquartered in New York. Before that, he spent more than fifteen years in global leadership roles at Morgan Stanley and JPMorgan. Mr. Willett currently serves as Chairman of the Board of Trustees of Trocaire College. He received

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his undergraduate degree from the University of Maryland, an Executive MBA from Quantic School of Business, and has completed executive education at the Haas School of Business at the University of California, Berkeley. Mr. Willett is a member of the Risk, Compensation, Nominating and Governance, and Executive Committees and a non-voting member of the Audit Committee.

*Michael Peterson*. Mr. Peterson is a director of the Company and the Bank and has served on the board of directors since 2010. He is currently an Assistant Secretary and Assistant Treasurer of Peterson Contractors, Inc., based in Reinbeck, Iowa. Mr. Peterson earned his undergraduate degree from Mankato State University. He serves as Vice Chair of the Nominating and Corporate Governance Committee and is a member of the Executive and Trust Committees.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*W. Scott Bush*. Mr. Bush is a director of the Company and the Bank and has served on the board of directors since 2017. He is the founder of Templeton Rye Whiskey and currently owns Foundry Distilling Company in West Des Moines, Iowa. Prior to entering the spirits industry, Mr. Bush worked in banking and venture capital, including six years at JPMorgan Chase in Chicago and New York, and with Common Angels, a technology-focused angel investment firm in Boston. Mr. Bush also serves as a director of Thelma's Treats, a Des Moines-based manufacturer of ice cream sandwiches and cookies, and as an advisor to Shield3, a Seattle-based provider of automated security and compliance solutions for Web3 transactions. He received his undergraduate degree from the University of Iowa and an MBA from the MIT Sloan School of Management. Mr. Bush is the Chair of the Trust Committee and member of the Audit Committee.

*Spencer Cohn*. Mr. Cohn is a director of the Company and the Bank and joined the board of directors in 2022. He received his undergraduate degree from the University of Illinois at Urbana-Champaign and is a graduate and Capstone Advisor of the ABA Stonier Graduate School of Banking at The Wharton School of the University of Pennsylvania. Mr. Cohn is a Director at Castle Creek Capital. He also serves as a Director of the Cystic Fibrosis Foundation and as Co-Chair of the Cystic Fibrosis Foundation's Tomorrow's Leaders program (San Diego Chapter). In addition, Mr. Cohn is a Senior Mentor and Resume Reviewer for Wall Street Oasis. He is a member of the Compensation Committee.

*Denny Presnall*. Mr. Presnall is a director of the Company and the Bank and has served on the board of directors since 2017. He received his undergraduate degree from the University of Northern Iowa. Mr. Presnall retired in 2018 after serving as Executive Director and Secretary-Treasurer of the Iowa Farm Bureau Federation and as Senior Vice President–Secretary of FBL Financial Group, Inc., Farm Bureau Life Insurance Company, and Farm Bureau Property & Casualty Insurance Company. He currently serves on the boards of trustees of Des Moines Area Community College, Coaches vs. Cancer, and Prevent Blindness. Mr. Presnall is the Chair of the Compensation Committee, a member of the Nominating and Corporate Governance Committee, and Vice Chair of the Trust Committee.

*John Teeple*. Mr. Teeple is a director of the Company and the Bank and joined the board of directors in 2026. Mr. Teeple is currently Chief Operating Officer of agricultural technology startup Bonsai Robotics and previously served in executive leadership roles at equipment manufacturers, including more than twenty-three years at John Deere, Chief Operating Officer at Sukup Manufacturing, and Global Director at Vermeer Corporation. He also served as Global Lead for the Agriculture Industry at Amazon Web Services and as Senior Vice President of Agriculture at DTN. Mr. Teeple currently serves as an independent director of Agrivision–PrairieLand Partners, a John Deere dealer group, and Precision AI. His prior nonprofit board service includes more than nine years with the Science Center of Iowa and two years with the Ankeny Economic Development Corporation. Mr. Teeple received his undergraduate degree from Iowa State University, an MBA from Northwestern University's Kellogg School of Management, and an executive certificate in Global Leadership from the Tuck School of Business at Dartmouth College. He is a member of the Risk Committee.

*Rodney Foster*. Mr. Foster is a director of the Company and the Bank and joined the board of directors in 2026. He is a Certified Public Accountant and a retired partner of RSM US LLP, with professional experience in audit and risk management. Mr. Foster has served on the boards of several nonprofit organizations, including prior service as President of the Iowa Society of Certified Public Accountants. He currently serves as

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a board member and Audit Committee Chair of Allied Construction Services Holding Company Inc., a multi-state interior construction contractor, and continues to serve on various nonprofit boards and advisory councils. Mr. Foster received his undergraduate degree from the University of Northern Iowa and received his Business Advisor Designation from the University of Chicago Booth School of Business. He Vice Chair of the Audit Committee and Chair of the Risk Committee.

**Corporate Governance Principles and Board Matters**

We are committed to having sound corporate governance principles, which are essential to running our business efficiently and maintaining our integrity in the marketplace. In connection with this resale registration, our board of directors will adopt corporate governance guidelines that will become effective upon the effectiveness of this registration statement, which will set forth the framework within which our board of directors, assisted by its committees, will direct the affairs of our Company. Our corporate governance guidelines will address, among other things, the composition and functions of our board of directors, director independence, compensation of directors, management succession and review, board committees and selection of new directors. Upon effectiveness of this registration statement, these corporate governance guidelines will be available on our website at https://www.mylsb.com.

***Director Qualifications***

We believe that our directors should have the highest professional and personal ethics and values, consistent with our longstanding values and standards. They should have broad experience at the policy-making level in business, government, or civic organizations. They should be committed to enhancing shareholder value and should have sufficient time to carry out their duties and to provide insight and practical wisdom based on their own unique experience. Each director must represent the interests of all shareholders. When considering potential director candidates, our board of directors also considers the candidate's independence, character, judgment, diversity, age, skills, including financial literacy, and experience in the context of our needs and our then-current board of directors. Our board of director's priority in selecting board members is the identification of persons who will further the interests of our shareholders through his or her record of professional and personal experiences and expertise relevant to our growth strategy.

***Director Independence***

Because our common stock is not listed on a national securities exchange, such as Nasdaq or the New York Stock Exchange, we are not subject to many of the director independence requirements applicable to companies whose securities are so listed. Nevertheless, in order to maintain strong corporate governance practices, our board of directors evaluates director independence using the Nasdaq independence standards as a reference framework.

Under Nasdaq independence rules, Mr. Willett is not independent because he serves as President and Chief Executive Officer of both the Company and the Bank. Additionally, because Ms. Hollis served as an executive officer of the Company and the Bank within the past three years and received executive compensation in excess of applicable thresholds, she is not considered independent under Nasdaq standards.

Additionally, based on information provided by each director concerning his or her background, employment, and affiliations, our board of directors has affirmatively determined that, with the exception of Mr. Willet, each of our current directors is an "outside" director and "independent of management," as defined under the FDICIA. The board determined that Mr. Willett does not qualify because of his role as President and Chief Executive Officer of the Company and the Bank.

***Term of Office***

Our Bylaws provide that the number of members of the Company's board of directors shall not be fewer than five or more than fourteen, with the exact number determined from time to time by resolution of the board of directors. The board of directors is divided into three classes, designated Class I, Class II, and Class III, with staggered three-year terms, and each class consisting, as nearly as practicable, of one-third of the total number

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of directors. At each annual meeting of shareholders, directors are elected to succeed those directors whose terms then expire, and each such director is elected to serve for a term expiring at the third annual meeting following his or her election, and until his or her successor is duly elected and qualified. Each director holds office until his or her successor has been duly elected and qualified, or until such director's earlier resignation, death, disqualification, removal, or incapacity. As of the 2026 annual meeting of stockholders, the terms of the Class I directors will expire at the annual meeting of shareholders to be held in 2027, the terms of the Class II directors will expire at the annual meeting of shareholders to be held in 2028 and the terms of the Class III directors will expire at the annual meeting of shareholders to be held in 2029. The officers of the Company are appointed by the board of directors and serve at the discretion of the board of directors, subject to the terms of any applicable employment agreements.

***Board Role in Risk Oversight***

The board of directors has overall responsibility for overseeing the Company's risk management framework and considers risk as an integral part of the Company's business strategy and key decision-making processes. Management is responsible for the day-to-day identification, assessment, and management of risk and regularly reports to the board of directors and its committees on the Company's material risk exposures. Risk oversight responsibilities are allocated among the board's standing committees based on their respective areas of expertise. The Risk Committee oversees the Company's enterprise-wide risk management framework, including operational, compliance and regulatory, strategic, reputational, capital, cybersecurity, and emerging risks. The Audit Committee oversees risks related to financial reporting, internal controls, and audit matters. The Compensation Committee oversees risks arising from the Company's compensation policies and practices. The Trust Committee oversees risks associated with trust and fiduciary activities. The Nominating and Corporate Governance Committee oversees risks related to corporate governance, board composition, and board effectiveness. The Executive Committee oversees and guides the Company's strategic planning, evaluates capital and strategic initiatives, and monitors execution of the strategic plan making recommendations to the Board.

The Company believes this structure supports effective oversight of the Company's material risks.

***Code of Business Conduct and Ethics***

In connection with this resale registration, our board of directors will adopt a Code of Business Conduct and Ethics that will be effective upon the effectiveness of this registration statement and that is designed to ensure that our directors, executive officers, and associates meet the highest standards of ethical conduct. The Code of Business Conduct and Ethics will require that our directors, executive officers, and employees avoid conflicts of interest, comply with all laws and other legal requirements, conduct business in an honest and ethical manner and otherwise act with integrity and in our best interest. Upon effectiveness of this registration statement, a copy of our Code of Business Conduct and Ethics will be available free of charge on our website at https://www.mylsb.com. We expect that any amendments to such code and guidelines, or any waivers of their requirements with respect to our directors or executive officers, will be disclosed on our corporate website.

***Board Committees***

Our board of directors has established six standing committees: an Audit Committee, a Compensation Committee, a Nominating and Corporate Governance Committee, a Risk Committee, an Executive Committee, and a Trust Committee. Although the Company's common stock is not currently listed on a national securities exchange, the Company has evaluated director independence and committee composition using the applicable independence standards set forth in the Nasdaq rules.

Additionally, because the board of directors of the Company and the board of directors of the Bank are comprised of the same individuals, the Company has also evaluated the independence of the Audit Committee under the applicable requirements of the FDICIA.

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*Audit Committee*

Our Audit Committee currently consists of David Deeds, W. Scott Bush, and Rod Foster with Sean Willett attending in a non-voting observer capacity. A majority of our Audit Committee members satisfy the applicable independence requirements of the FDICIA, which requires that a majority of our Audit Committee be made up of "outside" directors who are independent from management. Mr. Willett is not considered independent under the FDICIA rules or the Nasdaq rules.

The board of directors has determined that each voting member of our Audit Committee meets the requirements for service on the committee.

Our Audit Committee is generally responsible for the following duties and responsibilities:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• overseeing the integrity of the Company's financial statements and financial reporting processes;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• overseeing the adequacy and effectiveness of internal controls;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• reviewing management's reports regarding internal control, financial reporting, and compliance;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• overseeing the internal audit function;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• reviewing existing operations and procedures to ascertain compliance with bank policies, laws, and regulations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• appointing, compensating, retaining, and overseeing the independent auditor, including evaluating the auditor's qualifications, performance, and independence;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• reviewing the scope and results of external and internal audits;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• overseeing compliance with legal, regulatory, and ethical requirements;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• evaluating the adequacy of policies and procedures for safeguarding Company assets;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• overseeing risk assessment and risk management practices related to financial reporting, accounting, auditing, and internal controls and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• establishing and overseeing procedures for the receipt, retention, and treatment of complaints.

*Compensation Committee*

Our Compensation Committee currently consists of Denny Presnall, David Deeds, Sally Hollis, Spencer Cohn and Sean Willett. Ms. Hollis and Mr. Willett are not considered independent under the Nasdaq rules.

Our Compensation Committee is generally responsible for the following duties and responsibilities:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• reviewing and approving the Company's executive compensation philosophy, strategy, and programs;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• reviewing and approving annual performance goals and objectives for the Chief Executive Officer;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• reviewing and approving compensation for other executive officers, including base salary and short-term and long-term incentive compensation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• reviewing and approving employment-related arrangements for executive officers, including employment agreements, severance arrangements, and change-in-control agreements;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• recommending to the board of directors incentive compensation plans and equity-based compensation plans, approve or ratify awards under such plans, and oversee the administration and operation of these plans in accordance with their terms and the Company's compensation strategy;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• reviewing and approving any compensation-related matters to be considered by shareholders at the annual meeting, including those proposed by management or shareholders, and recommend any actions to be taken by the board of directors with respect to these proposals; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• overseeing the Company's employee benefit programs, including qualified retirement plans, health and welfare plans, and other ancillary benefit programs, and receive periodic reports on compensation and benefit programs affecting employees more broadly.

Information regarding the Compensation Committee's processes and procedures for considering and determining executive officer compensation is provided in the section entitled "Executive and Director Compensation." Except to the extent prohibited by law or regulation, the Compensation Committee may delegate matters within its power and responsibility to individuals or subcommittees when it deems appropriate.

In addition, the Compensation Committee has the authority under its charter to retain outside advisors to assist the Compensation Committee in the performance of its duties.

*Nominating and Corporate Governance Committee.*

Our Nominating and Corporate Governance Committee currently consists of Sally Hollis, Michael Peterson, Denny Presnall and Sean Willett. Ms. Hollis and Mr. Willett are not considered independent under the Nasdaq rules.

Our Nominating and Corporate Governance Committee is generally responsible for the following duties and responsibilities:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• identifying, evaluating, and recommending qualified individuals for election or appointment to the board of directors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• recommending to the board of directors the director nominees for each annual meeting of shareholders and director nominees to be elected by the board of directors to fill interim director vacancies;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• recommending to the board of directors the leadership structure of the board of directors and the composition and leadership of board of directors' committees;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• overseeing the annual review and evaluation of the performance of the board of directors and its committees;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• developing and recommending to the board of directors updates to our corporate governance documents;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• overseeing policies and practices relating to shareholder engagement and communications on governance matters and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• overseeing the Company's ESG strategy, initiatives, and policies.

*Other Committees*

In addition to our Audit Committee, Compensation Committee and Nominating and Corporate Governance Committee, our board of directors currently has the following additional committees: (i) the Risk Committee (chaired by Rodney Foster and vice chaired by David Deeds), (ii) the Executive Committee (chaired by Sally Hollis and vice chaired by David Deeds) and (iii) the Trust Committee (chaired by Scott Bush and vice chaired by Denny Presnall).

**Compensation Committee Interlocks and Insider Participation**

Ms. Hollis served as Executive Chair of the Company and the Bank from June 13, 2023 through March 29, 2024. During 2025, Mr. Willett, our President and Chief Executive Officer, served as a voting member of the Compensation Committee.

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Except as described above, none of the members of our Compensation Committee is, or has been at any time during the past three years, an officer or employee of the Company. In addition, none of our executive officers currently serves, or served during the past fiscal year, as a member of the board of directors or compensation committee of any entity that has one or more executive officers serving on our board of directors or Compensation Committee.

**Executive Officers**

The following table sets forth certain summary information regarding our executive officers, including their names, ages and positions.

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| | | |
|:---|:---|:---|
| **Name**  | **Age**  | **Position**  |
| Sean Willett  | 54  | Chief Executive Officer |
| Andy Borrmann  | 55 | Chief Financial Officer  |
| Emily Girsch  | 47 | Chief Administrative Officer |
| Karen Barnes  | 48 | Chief Risk Officer and General Counsel  |
| Rebecca Bell | 59 | Chief Accounting Officer |
| Daniel Downs | 47 | Chief Credit Officer |

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The business experience of each of the executive officers documented in the table above is set forth below, except for Sean Willett, as his business experiences are described above in the section entitled "Board of Directors." No executive officer has any family relationship, as defined in Item 401 of Regulation S-K, with any other executive officer or any of our current directors. There are no arrangements or understandings between any of the officers and any other person pursuant to which he or she was selected as an officer.

*Andy Borrmann*. Mr. Borrmann joined the Company in September 2024 and brings thirteen years of experience as a Chief Financial Officer at community banks in the southeastern United States. Earlier in his career, he served as an equity analyst at Robinson Humphrey (now Truist Securities) and Morgan Keegan (now Raymond James). Mr. Borrmann is recognized for driving financial performance and optimizing community bank balance sheets, resulting in enhanced shareholder value. He earned his undergraduate degree from Arizona State University.

*Emily Girsch*. Ms. Girsch received her undergraduate degree from the University of Northern Iowa, an MBA from the University of Iowa, and is a Certified Public Accountant. She has been with the Company for twenty-three years and has more than twenty-five years of experience in the banking industry. Prior to joining the Company, Ms. Girsch worked at RSM McGladrey as an auditor specializing in financial institutions. During her tenure at the Company, she advanced through increasingly senior leadership roles, including Chief Financial Officer in 2006 and Executive Vice President in 2010, and served as Interim Chief Executive Officer from June through December 2023. In September 2024, she transitioned to the role of Chief Administrative Officer, where she oversees key administrative functions, including marketing, operations, facilities, governance, and human resources. Ms. Girsch has successfully led two core system conversions and played a key role in capital-raising initiatives through multiple common and preferred stock offerings, raising more than $50 million for the Company. These efforts supported significant growth, including an increase in total assets from $250 million to $1.8 billion, two branch acquisitions, and expansion into the Des Moines market. She has also previously served as Board Chair of the Northeast Iowa Food Bank.

*Karen Barnes*. Ms. Barnes serves as Chief Risk Officer and General Counsel of the Company. She earned her undergraduate degree from Northwestern University and a Juris Doctor from the University of Iowa College of Law. Ms. Barnes began her career at the Federal Reserve Bank of Chicago and the Federal Deposit Insurance Corporation and subsequently held management roles overseeing legal and compliance functions at financial services organizations.

*Rebecca Bell.* Ms. Bells brings over 25 years of executive leadership experience in banking to her role as Chief Accounting Officer at Lincoln Savings Bank. Throughout her tenure in banking, she has overseen a

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broad range of departments, including Accounting, Audit, Compliance, Deposit Operations, and Human Resources. Most recently, Ms. Bell served as Chief Financial Officer at American Pride Bank from 2021 to December 2025. Prior to joining American Pride Bank, Rebecca served in several roles during her tenure at SouthCrest Bank Group from 2011 to 2021, including as Chief Accounting Officer and Chief Risk Officer. In these roles, she managed monthly, quarterly, and annual financial and regulatory reporting processes, ensuring compliance with Generally Accepted Accounting Principles (GAAP), Financial Accounting Standards Board (FASB) guidelines, and regulatory requirements for both the holding company and the bank. Rebecca also served as a member of the Asset Liability Committee, reviewing quarterly ALM analyses and ensuring compliance with internal policies. Her responsibilities extended to managing Deposit Operations, Compliance and BSA, Vendor Management, and Information Security functions within the organization. Earlier in her career, Rebecca advanced through the audit ranks at Mauldin & Jenkins, ultimately being promoted to Partner. From 1987 to 2011, she provided audit services to nonpublic and SEC-registered financial institutions with assets ranging from $20 million to over $1 billion.

*Daniel Downs.* Mr. Downs serves as Chief Credit Officer of Lincoln Savings. Mr. Downs joined the Bank in 2015 and has held multiple senior lending leadership roles, including Head of Lending and Regional Commercial Lending Manager. He has more than 20 years of banking experience in central Iowa focused on commercial lending, credit administration, underwriting, and portfolio management. Mr. Downs earned a bachelor's degree from Faith Baptist Bible College and a master's degree in financial management from Drake University.

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**EXECUTIVE AND DIRECTOR COMPENSATION**

As an emerging growth company under the JOBS Act, we are not required to include a Compensation Discussion and Analysis and have opted to comply with the scaled disclosure requirements applicable to emerging growth companies, including limiting the reporting of executive compensation to our principal executive officer and our next two most highly compensated executive officers, who we refer to as our "named executive officers" or "NEOs."

The compensation reported in the Summary Compensation Table below is not necessarily indicative of how we will compensate our NEOs in the future. We will continue to review, evaluate, and modify our compensation framework to maintain a competitive total compensation package. The Compensation Committee of the Board acknowledges the important roles members of management play in the long-term success of the Company and seeks to align our compensation practices with the achievement of Company goals.

Our NEOs, which consist of our principal executive officer and the Company's two most highly compensated executive officers during the year ended December 31, 2025, are:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Sean Willett, President and Chief Executive Officer of the Company and the Bank;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Andy Borrmann, Chief Financial Officer of the Bank; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Emily Girsch, Chief Administrative Officer of the Bank.

**Summary Compensation Table**

The following table sets forth certain information with respect to the compensation paid to our named executive officers for the fiscal year ended December 31, 2025.

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **Name and Principal Position** | **Year** | **Salary($)**<sup>(1)</sup> | **Stock Awards($)** <sup>(2)</sup> | **Non-Equity** <br>**Incentive Plan**<br>**Compensation**<br>**($)** <sup>(3)</sup> | **All Other** <br>**Compensation**<br>**($)** <sup>(4)</sup> | **Total($)** |
| Sean Willett |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;*President and Chief Executive Officer* | 2025 | $507372 | $927000 | $81250 | $11451 | $1527073 |
| Andy Borrmann |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;*Chief Financial Officer* | 2025 | 355160 | 309000 | 56875 | 11451 | 732486 |
| Emily Girsch |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;*Chief Administrative Officer of the Bank* | 2025 | 355160 |  | 56875 | 18451 | 430486 |

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__________________

(1)The actual 2025 salary may differ slightly from the contract salary due to changes in the Company's payroll schedule—from 24 to 26 pay periods per year—and the shift from paying two cycles in arrears to paying current.

(2)Represents the aggregate grant date fair value of the awards computed in accordance with FASB ASC Topic 718, using the assumptions discussed in Note 15 ("Employee Benefit Plans") of the consolidated financial statements included in this registration statement. For performance-based RSUs, the grant date fair value is calculated using the target number of performance-based RSUs awarded to each NEO, which was the assumed probable outcome as of the grant date.

(3)Reflects the annual bonuses earned by each NEO, as described in greater detail below.

(4)All Other Compensation for 2025 is detailed in the table below.

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| | | | | |
|:---|:---|:---|:---|:---|
| **Name** | **Year** | **Employee**<br>**Stock**<br>**Ownership**<br>**Plan Contributions** | **401(k) Contributions** <sup>(1)</sup> | **Total** |
| Sean Willett | 2025 | $11451 | $— | $11451 |
| Andy Borrmann | 2025 | 11451 |  | 11451 |
| Emily Girsch  | 2025 | 11451 | 7000 | 18451 |

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__________________

(1)For calendar year 2025, Messrs. Willett and Borrmann did not participate in the Company's 401(k) profit-sharing plan.

**Narrative Disclosure to Summary Compensation Table**

***Base Salary***

The Company provides our NEOs with a base salary to compensate them for services rendered during the fiscal year. Base salaries for NEOs are determined based on their position and areas of responsibility supported by comparable market data and are adjusted for duties, responsibilities and experience of the NEO. Salary levels are typically considered annually. The NEOs' base salaries for 2025 were as follows: Mr. Willett, $500,000; Mr. Borrmann, $350,000; and Ms. Girsch, $350,000. The NEOs' base salaries for 2026 are as follows: Mr. Willett, $500,000; Mr. Borrmann, $350,000; and Ms. Girsch, $350,000.

***Annual Bonus Plan***

Pursuant to their respective employment agreements, our NEOs are eligible to participate in discretionary annual incentive bonus programs designed to align executive compensation with Company and Bank performance and individual contributions. Under these arrangements, annual cash bonus opportunities are expressed as a percentage of each executive's base salary and are subject to review and determination by our board of directors or its Compensation Committee.

For 2025, each of Messrs. Willett and Borrmann and Ms. Girsch was eligible to receive an annual incentive bonus with a target opportunity equal to 25% of their base salary. Bonus determinations may consider a combination of corporate or Bank performance, individual performance objectives, and discretionary considerations intended to recognize leadership, strategic execution, and other contributions. Payment of any bonus is not guaranteed and is contingent upon continued employment through the applicable performance period, except as otherwise provided in their employment agreements in connection with a qualifying termination or a change in control.

The following table presents the performance measures and goals for the NEOs, as well as the actual results and payout as a percentage of target, for 2025: 

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| | | | |
|:---|:---|:---|:---|
| **Performance Measures** | **2025 Goal Target** | **2025 Actual Results** | **2025 Payout as a Percentage of Salary** |
| Deposit Growth <sup>(1)</sup> | $55MM | $43.8MM <sup>(4)</sup> | 3.75% |
| Q4 Core Return on Average Assets <sup>(2)</sup> | 0.25% | 0.29% | 12.50% |
| Non-Performing Asset Ratio <sup>(3)</sup> | 0.75% | 3.30% | —% |
| &nbsp;&nbsp;&nbsp;&nbsp;Total Payout |  |  | **16.25%** |

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__________________

(1)For purposes of the annual incentive bonus, deposit growth is measured as core deposit growth over year in dollars. Three levels of performance are established: threshold ($45MM), target ($55MM), and superior ($65MM). Performance against this goal is weighted as 30% of the overall opportunity.

(2)For purposes of the annual incentive bonus, core return on average assets is measured using the Core Net Income as defined by the Company's Compensation Committee for the fourth quarter. Three levels of performance are established: threshold ROA (at least 0.15%), target ROA (at least 0.25%), and superior ROA (at least 0.35%). Performance against this goal is weighted as 50% of the overall opportunity.

(3)For purposes of the annual incentive bonus, non-performing assets ratio is measured as a percentage as of the end of the year. Three levels of performance are established: threshold NPA ratio (0.99% or less), target NPA ratio (0.75% or less), and superior NPA ratio (0.50% or less). Performance against this goal is weighted as 20% of the overall opportunity.

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(4)The Compensation Committee determined that threshold level of the Deposit Growth goal was achieved.

***Stock Based Awards***

In 2019, the Company adopted the Lincoln Bancorp 2019 Equity Incentive Plan (the "2019 Plan"), which is described in greater detail below. The 2019 Plan allows us to promote the long-term financial success of the Company by providing a means to attract, retain and reward individuals who can and do contribute to such success, and to further align their interests with those of our shareholders. We generally award annual equity awards in the form of restricted stock units, which historically have been performance-based for our NEOs and eligible to vest on a pro-rata basis each year.

In 2025, Mr. Willet received the following grants: (i) 20,000 RSUs, which are eligible to vest on December 23, 2026, subject to his continued employment on such date, and (ii) 55,000 RSUs, which were eligible to vest based on the Company's achievement of pre-established return on assets ("ROA") goal for calendar year 2025. The Company did not achieve the established goal and, therefore, such RSUs were forfeited as of December 31, 2025. On January 1, 2026, Mr. Willett received 40,000 RSUs, which are eligible to vest based on the Company's achievement of pre-established ROA goals for calendar year 2026.

In 2025, Mr. Borrmann received the following grants: (i) 15,000 RSUs, which are eligible to vest on December 31, 2026, based on the achievement of pre-established ROA goals for the fourth quarter of calendar year 2026; and (ii) 10,000 RSUs, which are eligible to vest on December 31, 2027, based on the achievement of pre-established ROA goals for calendar year 2027, and in each case subject to Mr. Borrmann's continued employment with the Company through the vesting date.

Ms. Girsch did not receive a grant of RSUs during 2025. On May 21, 2026, Ms. Girsch received a grant of 12,000 RSUs, of which 6,000 are eligible to vest based on the Company's achievement of pre-established ROA goals for calendar year 2026, and the remaining 6,000 are eligible to vest based on pre-established ROA goals for calendar year 2027.

***401(k) Plan***

The Lincoln Bancorp 401(k) Profit Sharing Plan (the "401(k) Plan") is designed to provide retirement benefits to all eligible full-time and part-time employees of the Bank who have attained age 21 and completed at least 1000 hours of service. The 401(k) Plan provides employees with the opportunity to save for retirement on a tax-favored basis. Named executive officers may elect to participate in the 401(k) Plan on the same basis as all other employees. Employees may defer a portion of their compensation to the 401(k) Plan up to the applicable statutory limit. We currently match 100% of employee deferrals on the first 3% and 50% on the next 2% of employee compensation. All participant deferrals and employer contributions to the 401(k) Plan are immediately fully vested. Participants may direct the investment of their entire 401(k) Plan account balances.

***ESOP Plan***

The Company maintains an Employee Stock Ownership Plan (the 'ESOP') that covers all eligible full-time and part-time employees of the Bank who have attained age 21 and completed at least 1,000 hours of service. Participants who do not have at least 1,000 hours of service during such plan year or are not employed on the last working day of the plan year are generally not eligible for an allocation of Company contribution for such year. The ESOP is a leveraged plan, holding 15.15% of our outstanding Class A common stock. Shares are released and allocated to participants annually as the ESOP debt is repaid. The Company is obligated to make contributions in cash to the Plan which, when aggregated with the Plan's dividends and interest earnings, equal the amount necessary to enable the Plan to make its regularly scheduled payments of principal and interest due on its term loans from the Company. Participants vest in the Company's contributions and earning thereon based on years of credited service. Allocations are based on a participant's eligible compensation, relative to total eligible compensation. The ESOP provides a repurchase right to participants, which requires the Company to buy back vested shares at fair market value upon separation from the company, which may create significant future cash requirements.

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***Employment Agreements***

On December 5, 2023, September 9, 2024, and September 16, 2024, the Company and the Bank entered into an employment agreement with Mr. Willett, Mr. Borrmann and Ms. Girsch, respectively. Each employment agreement has an initial term (2 years, in the case of Messrs. Willett and Borrmann and 1 year, in the case of Ms. Girsch) and thereafter automatically renews for successive one-year terms unless either party provides written notice of non-renewal at least ninety (90) days prior to the applicable renewal date. In the event a change in control occurs during the term, the employment agreement will remain in effect for twenty-four (24) months following the change in control.

Each employment agreement provides for an initial base salary (Mr. Willett, $500,000; Mr. Borrmann, $350,000; and Ms. Girsch, $350,000), as well as an opportunity to earn a discretionary annual incentive bonus, with a target bonus opportunity equal to a percentage of base salary (Mr. Willett, 40%; Mr. Borrmann, 30%; and Ms. Girsch, 30%).

Mr. Willett's employment agreement also provides for performance-based restricted stock unit awards for 2025, 2026 and 2027, subject to approval by the Company's board of directors, continued employment through certification of performance results, and the achievement of specified return-on-assets performance goals.

Each NEO is entitled to participate in the Company's retirement, medical, dental, vision, disability, life insurance, and other employee benefit plans made available to senior executives, on terms no less favorable than those provided to similarly situated executives.

The employment agreements include customary confidentiality, non-disclosure, non-competition, and non-solicitation covenants. These restrictive covenants generally apply during the NEO's employment and for a period of twelve months following termination.

If the executive's employment is terminated for cause, due to death or disability, if he or she voluntarily resigns without good reason, or if the employment agreement expires due to non-renewal, the executive is entitled to payment of his or her earned but unpaid base salary and accrued but unused vacation time through the date of termination.

If the executive's employment is terminated by the Company without cause or if he or she resigns for good reason (each as defined in the employment agreement), in each case outside of a change in control, the executive is entitled, subject to execution of a release of claims, to payment of earned but unpaid compensation and a cash severance payment equal to 100% of base salary in effect on the termination date, payable in a lump sum, as well as continued eligibility for subsidized medical, dental and vision coverage under the Consolidated Omnibus Budget Reconciliation Act (COBRA) for up to twelve months.

If the executive's employment is terminated by the Company without cause or if he or she resigns for good reason during the period beginning six months prior to and ending twelve months following a change in control, the executive is entitled, subject to execution of a release of claims, to payment of earned but unpaid compensation and a cash severance payment equal to a multiple of 200% of the sum of base salary and the average of the annual incentive bonuses earned for the preceding three completed fiscal year performance periods, payable in a lump sum, together with continued eligibility for subsidized COBRA coverage as provided in the employment agreement.

***Long Term Equity Incentive Plans***

The Company maintains the 2019 Plan and the Lincoln Bancorp 2026 Equity Incentive Plan, pursuant to which the Company's employees, directors, and other service providers are eligible to receive grants of stock-based awards. Both plans are administered by the Compensation Committee of the Board, which has the authority to control and manage the operation and administration of the respective plan. The 2019 Plan and the 2026 Plan will expire in April 2029 and March 2036, respectively.

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Under the 2019 Plan and the 2026 Plan, the Compensation Committee of the Board may grant the following types of awards:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• stock awards, which are equity-based awards that provide shares of common stock or the right to receive shares (or their cash equivalent) in the future such as performance units, restricted stock, restricted stock units, or other equity-based awards as determined by the Compensation Committee;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• stock appreciation rights (SARs), which give the holder the right to receive, in cash, shares of common stock, or a combination of both, the amount by which the fair market value of the shares at exercise exceeds the exercise price established by the Compensation Committee;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• stock options, which give the holder the right to purchase shares of common stock at an exercise price established by the Compensation Committee; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• other cash incentive and stock-based awards, as determined by the Compensation Committee of the Board.

Dividend equivalents may be provided in connection with awards, but are only paid if the underlying award vests and are forfeited if the award does not vest.

A total of 400,000 and 600,000 shares of common stock were authorized for issuance under the 2019 Plan and 2026 Plan, respectively. Awards and the number of shares available under the plans are subject to automatic, proportionate adjustment in the event of stock splits, dividends, mergers, recapitalizations, or similar corporate transactions, and the Compensation Committee has broad discretion to make equitable adjustments, including modifying or canceling awards or settling awards for cash or replacement equity, to preserve the value of outstanding awards. Shares underlying awards that are canceled, forfeited, or expire unexercised will generally again be available for issuance under the plan; however, shares used to pay an option exercise price, shares withheld or tendered to satisfy tax withholding obligations, and shares subject to stock-settled SARs or other awards that are not issued upon settlement will not be recycled for future grants under the plans.

The 2019 Plan and the 2026 Plan give the Compensation Committee broad discretion to determine award vesting schedules, performance conditions, and other award terms.

Upon the occurrence of a "change in control," the 2026 Plan and the 2019 Plan provide (unless, in the case of the 2019 Plan, the Compensation Committee provides otherwise) that all outstanding awards will become fully vested (at the "target" level in the case of performance-based awards) (i) immediately if such awards are not assumed by the successor entity, or (ii) upon a termination of service without cause or by the grantee for good reason, if the awards are assumed by the successor entity.

***Outstanding Equity Awards at 2025 Fiscal Year-end***

The following table sets forth information regarding outstanding equity awards held by our NEOs as of December 31, 2025.

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| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Stock Awards** | **Stock Awards** | **Stock Awards** | **Stock Awards** | **Stock Awards** | **Stock Awards** | **Stock Awards** |
|<br>**Name** | **Grant Date** | **Number of<br>Shares or<br>Units of Stock<br>That Have Not<br>Vested (#)** | **Number of<br>Shares or<br>Units of Stock<br>That Have Not<br>Vested (#)** | **Market Value<br>of Shares or<br>Stock That<br>Have Not<br>Vested ($)** | **Equity<br>Incentive Plan<br>Awards:<br>Number of<br>Unearned<br>Shares, Units<br>or Other<br>Rights That<br>Have Not<br>Vested (#)** | **Equity<br>Incentive Plan<br>Awards:<br>Number of<br>Unearned<br>Shares, Units<br>or Other<br>Rights That<br>Have Not<br>Vested (#)** | **Equity**<br>**Incentive Plan**<br>**Awards:**<br>**Market Value**<br>**of Unearned**<br>**Shares, Units or**<br>**Other Rights**<br>**That Have Not Vested ($)**<sup>(4)</sup> |
| Sean Willett<sup>(4)</sup> | 12/23/2025 | 20000 | <sup>(1)</sup> | 247200 |  |  |  |
| Andy Borrmann | 10/21/25 |  |  |  | 15000 | <sup>(2)</sup> | 185400 |
| Andy Borrmann | 10/21/25 |  |  |  | 10000 | <sup>(3)</sup> | 123600 |
| Emily Girsch<sup>(5)</sup> |  |  |  |  |  |  |  |

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__________________

(1)Reflects time-based RSUs that are eligible to vest on December 31, 2026, subject to Mr. Willett's continued employment on such date.

(2)Reflects performance-based RSUs that are eligible to vest on December 31, 2026, based on the achievement of pre-established ROA goals for the fourth quarter of calendar year 2026.

(3)Reflects performance-based RSUs that are eligible to vest on December 31, 2027, based on the achievement of pre-established ROA goals for calendar year 2027.

(4)Based on the fair market value of our common stock on December 31, 2025 ($12.36 per share).

(5)Ms. Girsch did not hold any equity awards as of December 31, 2025.

***2025 Director Compensation***

Each member of our Board of Directors is eligible to receive an annual retainer awarded in Company stock awards or an equivalent value in cash. The cash may be deferred. In 2025, the annual retainer was $15,994 and, if so elected, such annual retainer was awarded in the form of fully-vested shares of our Common Stock. Our Board Chair, as well as Committee Chairs, receive supplemental retainers for serving in such roles, as follows: Board Chair $12,000, Risk and Audit Committee Chair $7,500, Nominating and Corporate Governance, Trust and Compensation Committee Chair $3,500. Each non-employee director also received fees for each meeting of the Board of Directors and each committee of the Board that the director attended.

We have entered into a deferred compensation agreement with some of our non-employee directors, including David Deeds, Michael Peterson, Denny Presnall and W. Scott Bush (collectively, the "Director Deferred Compensation Agreements"). Each Director Deferred Compensation Agreement allows the director to annually defer director fees, which are subsequently credited at a variable interest rate set annually by the Board and generally following WSJ prime and not above-market or otherwise preferential. Only Messrs. Peterson and Bush elected to defer their fees under their agreements in 2025. Upon the director's death, disability or separation from service if after age 65, each will receive their respective deferral account balance at the time of such event, paid in 120 monthly installments starting on the first day of the month following such event. The following table sets forth the compensation paid to non-employee directors of the Company for the fiscal year ended December 31, 2025.

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| | | | |
|:---|:---|:---|:---|
| **Name** | **Fees Earned or Paid in Cash($)** | **Stock Awards($)** | **Total($)** |
| Sally Hollis | $45000 | $15994 | $60994 |
| David Deeds  | 46500 | 15994 | 62494 |
| Michael Peterson | 45494 |  | 45494 |
| W. Scott Bush | 40525 | 15994 | 56519 |
| Spencer Cohn | 41494 |  | 41494 |
| Denny Presnall | 35500 | 15994 | 51494 |
| John Teeple<sup>(2)</sup> |  |  |  |
| Rodney Foster<sup>(2)</sup> |  |  |  |
| Gerald Beechum<sup>(1)</sup> | 37000 | 15994 | 52994 |
| Shara Chang <sup>(1)</sup> | 56494 |  | 56494 |
| Ken Furst <sup>(1)</sup> | 28500 | 15994 | 44494 |

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_________________

(1)Each of Messrs. Beechum and Furst and Ms. Chang resigned effective February 25, 2026.

(2)Messrs. Foster and Teeple joined the Board effective January 1, 2026.

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**CERTAIN RELATIONSHIPS AND RELATED PARTY TRANSACTIONS**

**Loans to Officers, Directors and Affiliates**

We offer loans in the ordinary course of business to our insiders, including our executive officers and directors, their related interests and immediate family members and other employees. Applicable law and our written credit policies require that loans to insiders be on substantially the same terms, including interest rates and collateral, as those prevailing at the time for comparable transactions with unrelated parties, and must not involve more than the normal risk of repayment or present other unfavorable features. Loans to non-insider employees and other non-insiders are subject to the same requirements and underwriting standards and meet our normal lending guidelines, except that non-insider employees and other non-insiders may receive preferential interest rates and fees as an employee benefit. Loans to individual employees, directors and executive officers must also comply with our Bank's statutory lending limits and regulatory requirements regarding lending limits and collateral. All extensions of credit to the related parties must be reviewed and approved by our Bank's board of directors, and directors with a personal interest in any loan application are excluded from the consideration of such loan application.

We have made loans to directors and executive officers. The loans to such persons (i) complied with our Regulation O policies and procedures, (ii) were made in the ordinary course of business, (iii) were made on substantially the same terms, including interest rates and collateral, as those prevailing at the time for comparable loans with persons not related us and (iv) did not involve more than a normal risk of collectability or did not present other features unfavorable to the Company.

**Related Party Transaction Policy**

Transactions by us with related parties are subject to a formal written policy, as well as regulatory requirements and restrictions. These requirements and restrictions include Sections 23A and 23B of the Federal Reserve Act and the Federal Reserve's Regulation W, which governs certain transactions by us with our affiliates, and the Federal Reserve's Regulation O, which governs certain loans by us to executive officers, directors and principal shareholders. We have adopted policies to comply with these regulatory requirements and restrictions.

In addition, prior to the effectiveness of this registration statement, our board of directors will adopt a written policy governing the approval of related party transactions that complies with all applicable requirements of the SEC concerning related party transactions. Related party transactions are transactions in which we are a participant, the amount involved exceeds $120,000 and a related party has or will have a direct or indirect material interest. Our related parties include our directors (including nominees for election as directors), executive officers, 5% stockholders and the immediate family members of these persons. Our Chief Administrative Officer, in consultation with counsel, as appropriate, will review potential related party transactions to determine if they are subject to the policy. If so, the transaction will be referred to our board of directors or Audit Committee for approval. In determining whether to approve a related party transaction, our board of directors or Audit Committee may consider such factors as it deems appropriate, which factors may include, without limitation, the related party's interest in the related party transaction, the approximate dollar value of the amount involved in the related party transaction, the approximate dollar value of the amount of the related party's interests in the related party transaction without regard to the amount of any profit or loss, whether the related party transaction was undertaken in the ordinary course of business, whether the related party transaction with the related party is proposed to be, or was, entered into on terms no less favorable to the Company than terms that could have been reached with an unrelated third party, the purpose of, and the potential benefits to the Company of, the related party transaction, the fairness of the proposed transaction, the direct or indirect nature of the related party's interest in the transaction, the appearance of an improper conflict of interests for any director or executive officer, whether the transaction would impair an outside director's independence, the acceptability of the transaction to our regulators, the potential violations of other corporate policies, and any other information regarding the related party transaction or the related party in the context of the proposed related party transaction that would be material to investors in light of the circumstances of the

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particular related party transaction. Upon effectiveness of this registration statement, our Related Party Transaction Policy will be available on our website at https://www.mylsb.com.

Other than the compensation arrangements with directors and executive officers described in the section entitled "Executive and Director Compensation" and the ordinary banking relationships described above, none of our directors, executive officers or beneficial holders of more than 5% of our capital stock, or their immediate family members or entities affiliated with them, had or will have a direct or indirect material interest, in any transactions to which we have been a party in which the amount involved exceeded or will exceed $120,000.

**Transactions with Castle Creek**

On October 22, 2018, we sold 547,945 shares of our common stock to Castle Creek Capital Partners VII, LP ("Castle Creek"). In connection with such transaction, we entered into a Stock Purchase Agreement with Castle Creek, dated as of October 22, 2018 and a Registration Rights Agreement, dated as of December 4, 2018, as amended by that certain Amendment to Registration Rights Agreement, dated as of December 8, 2023 (collectively, the "Registration Rights Agreement"). Under these agreements, we have agreed to comply with certain continuing obligations with respect to Castle Creek which are described in more detail below.

***Board Representation and Observer Rights***

We have agreed that, for so long as Castle Creek, together with its affiliates, continues to own at least the lesser of five percent (5%) of the common stock of the Company and the number of shares purchased under the Stock Purchase Agreement (the "Castle Creek Minimum Ownership Interest"), one individual designated by Castle Creek (the "Castle Creek Representative"), and approved by our board of directors, will be elected or appointed to our board of directors, and to the board of directors of Lincoln Savings Bank (and any future bank subsidiary), in each case subject to the satisfaction of applicable legal and regulatory requirements regarding service as a director. We have also agreed to recommend to our shareholders the election of the Castle Creek Representative to our board of directors at each meeting of shareholders at which directors are to be elected and to solicit proxies for such individual on the same basis as for our other director nominees.

If, at any time while Castle Creek and its affiliates continue to hold the Castle Creek Minimum Ownership Interest, Castle Creek does not have a representative serving on our board of directors or the board of directors of Lincoln Savings Bank (including as a result of pending regulatory approval), we have agreed to invite one individual designated by Castle Creek to attend meetings of our board of directors and the board of directors of the Bank in a non-voting, non-participating observer capacity. Such observer will be entitled to receive notice of meetings and access to board materials at the same time as directors, subject to customary exclusions for confidential supervisory information, matters relating to pending or ongoing regulatory examinations and attorney-client privileged materials.

The foregoing board representation and board observer rights will continue for so long as Castle Creek, together with its affiliates, continues to hold at least the Castle Creek Minimum Ownership Interest. If Castle Creek ceases to hold the Castle Creek Minimum Ownership Interest, Castle Creek will have no further board representation or observer rights, and, at the written request of our board of directors, Castle Creek will cause its board representative to resign promptly from our board of directors and from the board of directors of Lincoln Savings Bank.

Currently, Spencer Cohn serves on our board of directors as the representative of Castle Creek.

***Indemnification***

We have agreed that, with respect to claims for indemnification arising out of the service of the director designated by Castle Creek, we will be the indemnitor of "first resort." Accordingly, to the extent such claims are indemnifiable under applicable law and our organizational documents, our obligations to indemnify and advance expenses to such director, and to provide insurance coverage, will be primary and will apply to the same extent (and no greater extent) as such obligations apply to our other directors. Any indemnification or

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advancement obligations of Castle Creek or its affiliates with respect to such director will be secondary, and Castle Creek and its affiliates will have rights of contribution and/or subrogation against us to the extent of any amounts paid by them on behalf of such director.

***Information and Access Rights***

We have agreed to certain ongoing financial reporting, information and access obligations in favor of Castle Creek. Pursuant to the Stock Purchase Agreement, we have agreed to provide Castle Creek with consolidated financial information, including (i) unaudited quarterly financial statements and (ii) audited annual financial statements, in each case prepared in accordance with U.S. generally accepted accounting principles and delivered within the timeframes specified in the Stock Purchase Agreement.

In addition, for so long as Castle Creek and its affiliates continue to hold at least the Castle Creek Minimum Ownership Interest, we have agreed to provide Castle Creek with all written materials and other information provided to members of our board of directors and the boards of directors of the Bank at the same time such materials are provided to directors, subject to customary exclusions for confidential supervisory information, matters relating to pending or ongoing regulatory examinations and attorney-client privileged information.

We have further agreed, for so long as Castle Creek or its affiliates continue to hold our common stock, to provide Castle Creek with reasonable access, upon advanced notice and subject to applicable legal and regulatory limitations, to inspect our offices, properties, books and records and to consult periodically with members of management regarding our business and operations.

***Preemptive Rights***

We have agreed that, for so long as Castle Creek, together with its affiliates, continues to hold at least the Castle Creek Minimum Ownership Interest, Castle Creek will generally have the right to purchase its pro rata share of certain equity securities and equity-linked securities that we or our subsidiaries may issue in future non-public offerings, subject to customary regulatory and ownership limitations. Castle Creek's participation right is based on its ownership percentage of our common stock on a fully diluted basis at the time of the applicable issuance.

These purchase rights do not apply to certain issuances, including, among others, securities issued pursuant to employee equity incentive plans approved by our board of directors (subject to specified caps), securities issued in connection with mergers, acquisitions, or other strategic transactions and other categories of issuances expressly excluded under the Stock Purchase Agreement. In addition, these purchase rights are subject to limitations designed to prevent Castle Creek from exceeding applicable banking-law ownership or control thresholds and will terminate automatically immediately prior to the effectiveness of any registration statement filed by the Company under the Securities Act or the Exchange Act.

***Registration Rights***

In connection with the transactions described above, we entered into the Registration Rights Agreement with Castle Creek providing for demand and piggyback registration rights.

Pursuant to its demand registration rights, Castle Creek may, at any time on or prior to December 31, 2025, require us to file a registration statement with the SEC covering the resale of its shares of common stock. Upon receipt of such a request, we are required to file the registration statement and use our reasonable best efforts to cause it to be declared effective within the timeframes specified in the Registration Rights Agreement. If we fail to meet these requirements, we may be required to pay Castle Creek a monthly liquidated damages fee equal to 3.0% of the aggregate original purchase price of the registrable securities held by Castle Creek, subject to certain limitations, plus interest at 1.0% per month if not timely paid. Because we did not complete a resale registration prior to December 31, 2025, in accordance with the Registration Rights Agreement, we are currently paying Castle Creek approximately $300,000 per month and will continue to do so until this registration statement is declared effective by the SEC.

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In addition, if we file a registration statement for a primary or secondary offering of our securities (other than for equity compensation plans or mergers and similar transactions), Castle Creek has the right to include its registrable securities in such offering pursuant to its piggyback registration rights, subject to customary underwriter cutbacks.

We are responsible for all registration-related expenses, including registration and filing fees, printing and listing expenses, fees and disbursements of our counsel and up to an aggregate of $50,000 of reasonable documented expenses incurred by Castle Creek.

**Transactions with EJF**

On November 26, 2018, we sold 273,972 shares of our common stock to EJF Sidecar Fund, Series LLC – Small Financial Equities Series ("EJF"). In connection with such transaction, we entered into a Stock Purchase Agreement with EJF, dated as of November 26, 2018 and a Registration Rights Agreement, dated as of December 4, 2018. Under these agreements, we have agreed to comply with certain continuing obligations with respect to EJF, which are described in more detail below.

***Board Observer Rights***

We have agreed that, for so long as EJF, together with its affiliates, continues to own at least the lesser of five percent (5%) of the outstanding common stock of the Company and the number of shares purchased under the Stock Purchase Agreement (the "EJF Minimum Ownership Interest"), the Company will invite one individual designated by EJF (the "EJF Observer") to attend meetings of our board of directors and the board of directors of the Bank (and any future bank subsidiary), in each case in a non-voting, non-participating observer capacity.

The EJF Observer will be entitled to receive notice of meetings and to receive board materials at the same time and in the same manner as members of the applicable board, subject to customary exclusions for confidential supervisory information, matters relating to pending or ongoing regulatory examinations, and attorney-client privileged materials. In addition, if the Company or any such board proposes to act by written consent in lieu of a meeting, the Company will provide the EJF Observer with advance notice of such action and the proposed written consent. The EJF Observer will not have any right to vote on, participate in, or otherwise influence deliberations of the board of directors or any committee thereof, and will not be deemed to be a director for any purpose.

The foregoing observer and related information rights will continue for so long as EJF, together with its affiliates, continues to hold the EJF Minimum Ownership Interest. If EJF ceases to hold the EJF Minimum Ownership Interest, EJF will have no further observer or related information rights.

***Indemnification***

The Stock Purchase Agreement does not provide for the designation or service of any director by EJF and does not include any special indemnification, advancement, or insurance arrangements relating to any individual designated by EJF. Any individual designated by EJF to attend meetings of the board of directors or the board of directors of the Bank does so solely in a non-voting, non-participating observer capacity and is not deemed to be a director for any purpose.

Accordingly, the Stock Purchase Agreement does not establish any "indemnitor of first resort" obligations, nor does it modify or expand the Company's indemnification, advancement of expenses or insurance obligations under applicable law or the Company's organizational documents. Any indemnification or advancement rights applicable to members of the board of directors apply only to duly elected or appointed directors and not to observers.

The indemnification provisions of the Stock Purchase Agreement are limited to purchaser-level indemnification in favor of EJF (and other purchasers) for specified losses arising from breaches of

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representations, warranties, covenants, or certain shareholder claims, and do not apply to service as a board observer.

***Information and Access Rights***

We have agreed to limited information and access rights in favor of EJF, as set forth in the Stock Purchase Agreement. The Stock Purchase Agreement does not require the Company to deliver periodic financial statements (including quarterly or annual financial statements) to EJF, nor does it provide EJF with independent inspection rights, management consultation rights, or access to the Company's books and records outside the board process.

For so long as EJF, together with its affiliates, continues to hold at least the EJF Minimum Ownership Interest, the Company has agreed to provide EJF with board-level information and access solely through an observer framework. In particular, the Company will invite one individual designated by EJF to attend meetings of the Company's board of directors and the board of directors of the Bank (and any future bank subsidiary) in a non-voting, non-participating observer capacity, and will provide such observer with all written materials and other information provided to members of the applicable boards at the same time such materials are provided to directors, subject to customary exclusions for confidential supervisory information, matters relating to pending or ongoing regulatory examinations and attorney-client privileged information.

Other than the foregoing observer-related information rights, the Stock Purchase Agreement does not provide EJF with any additional ongoing reporting, information, inspection or access rights, and all such observer and information rights terminate automatically if EJF and its affiliates cease to hold the EJF Minimum Ownership Interest.

***Preemptive Rights***

We have agreed that, for so long as EJF, together with its affiliates, continues to hold at least the EJF Minimum Ownership Interest, EJF will have the right to purchase, on a pro rata basis, its share of certain equity securities and equity-linked securities that the Company or its subsidiaries may propose to issue in future non-public offerings, subject to applicable regulatory and ownership limitations. EJF's participation right is calculated based on its ownership of the Company's outstanding common stock on a fully diluted basis at the time of the applicable issuance.

These purchase rights do not apply to specified excluded issuances under the Stock Purchase Agreement, including, among others: (i) securities issued pursuant to employee equity incentive or stock purchase plans approved by the Company's board of directors, subject to specified caps; (ii) securities issued as consideration in connection with mergers, acquisitions, joint ventures, strategic alliances, or other similar non-financing transactions; (iii) issuances of common stock with an aggregate purchase price not exceeding $5.0 million at a price per share not less than the purchase price paid by EJF and on terms not materially more favorable, in the aggregate, than those granted to EJF and (iv) securities issued pursuant to specified additional purchase agreements expressly permitted under the Stock Purchase Agreement.

EJF's preemptive rights are further subject to limitations designed to prevent EJF and its affiliates from exceeding applicable banking law ownership or control thresholds, including limitations on ownership of voting securities and total equity of the Company. All such preemptive rights terminate automatically immediately prior to the effectiveness of any registration statement filed by the Company under the Securities Act or the Exchange Act.

***Registration Rights***

In connection with the transactions described above, we entered into a Registration Rights Agreement with EJF providing for piggyback and shelf resale registration rights with respect to the shares of our common stock acquired by EJF.

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EJF does not have demand registration rights and cannot require us to file a registration statement. However, EJF does have piggyback rights and, if a resale registration statement is filed pursuant to the Registration Rights Agreement, EJF is entitled to have its registrable securities included in such registration statement, subject to applicable SEC rules and, if necessary, pro rata allocation among holders. If a registration statement covering EJF's registrable securities is required to be filed or maintained under the Registration Rights Agreement and we fail to meet the applicable filing or effectiveness requirements, EJF may be entitled to receive a monthly liquidated damages payment equal to 3.0% of the aggregate original purchase price of the registrable securities held by EJF, subject to certain limitations, plus interest at a rate of 1.0% per month if not timely paid.

In addition, if we file a registration statement for a primary or secondary offering of our securities (other than for equity compensation plans, mergers or similar transactions), EJF has the right to include its registrable securities in such offering pursuant to its piggyback registration rights, subject to customary underwriter cutbacks.

We are responsible for all registration-related expenses, including registration and filing fees, printing and listing expenses, fees and disbursements of our counsel and up to an aggregate of $50,000 of reasonable documented expenses incurred by EJF and the other registration rights purchasers.

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**SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT**

The following table sets forth information regarding the beneficial ownership of our common stock, as of June 18, 2026, by:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• each shareholder known by us to beneficially own more than 5% of our outstanding common stock;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• each of our named executive officers;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• each of our directors; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• all of our directors and executive officers as a group.

We have determined beneficial ownership in accordance with the rules of the SEC. These rules generally provide that a person is the beneficial owner of securities if such person has or shares the power to vote or direct the voting of securities, or to dispose or direct the disposition of securities, or has the right to acquire such powers within 60 days, including any right to acquire such securities (i) through the exercise of any option, warrant or right, (ii) through the conversion of a security, (iii) pursuant to the power to revoke a trust, discretionary account or similar arrangement or (iv) pursuant to the automatic termination of a trust, discretionary account or similar arrangement. For purposes of calculating each person's percentage ownership, common stock issuable pursuant to options exercisable within 60 days are included as outstanding and beneficially owned for that person or group, but are not deemed outstanding for the purposes of computing the percentage ownership of any other person. Except as disclosed in the footnotes to this table and subject to applicable community property laws, we believe that each person identified in the table has sole voting and investment power over all of the shares shown opposite such person's name.

The percentage of beneficial ownership is based on the combined 6,668,126 Class A and 656,328 Class B shares of our common stock outstanding as of June 18, 2026.

Except as otherwise indicated, the address for each shareholder listed in the table below is c/o Lincoln Bancorp, 508 Main Street, Reinbeck, Iowa 50669.

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Class A**<br>**Number of**<br>**Shares**<br>**Beneficially**<br>**Owned**<sup>(1)</sup> | **Class A**<br>**Number of**<br>**Shares**<br>**Beneficially**<br>**Owned**<sup>(1)</sup> | **Class B**<br>**Number of**<br>**Shares**<br>**Beneficially**<br>**Owned**<sup>(1)</sup> | **Class B**<br>**Number of**<br>**Shares**<br>**Beneficially**<br>**Owned**<sup>(1)</sup> | **Combined** <br>**Number of**<br>**Beneficially**<br>**Owned**<sup>(3)</sup> | **Combined** <br>**Number of**<br>**Beneficially**<br>**Owned**<sup>(3)</sup> |
|<br>**Name** | **#** | **%** | **#** | **%** | **#** | **%** |
| **5% stockholders:** | | | | | | |
| Lincoln Bancorp Employee Stock Ownership Trust<sup>(2)</sup> | 1009033 | 15.13% |  |  | 1009033 | 13.78% |
| Peterson Contractors, Inc.<sup>(3)</sup>  | 719100 | 10.78% |  |  | 719000 | 9.82% |
| Castle Creek Capital Partners VII LP<sup>(4)</sup> | 629786 | 9.44% | 146804 | 22.37% | 776590 | 10.60% |
| **Directors and named executive officers:** |  |  |  |  |  |  |
| Andy Borrmann | 11310 | 0.17% |  |  | 11310 | 0.15% |
| W. Scott Bush <sup>(5)</sup> | 8986 | 0.13% |  |  | 8986 | 0.12% |
| Spencer Cohn<sup>(6)</sup> |  |  |  |  |  |  |
| David Deeds | 9625 | 0.14% |  |  | 9625 | 0.13% |
| Rodney Foster |  |  |  |  |  |  |
| Emily Girsch | 16098 | 0.24% |  |  | 16098 | 0.22% |
| Sally Hollis<sup>(7)</sup> | 27633 | 0.41% |  |  | 27633 | 0.38% |
| Michael Peterson<sup>(8)</sup> | 4200 | 0.06% | 9574 | 1.46% | 13774 | 0.19% |
| Denny Presnall<sup>(9)</sup> | 4876 | 0.07% |  |  | 4876 | 0.07% |

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Class A**<br>**Number of**<br>**Shares**<br>**Beneficially**<br>**Owned**<sup>(1)</sup> | **Class A**<br>**Number of**<br>**Shares**<br>**Beneficially**<br>**Owned**<sup>(1)</sup> | **Class B**<br>**Number of**<br>**Shares**<br>**Beneficially**<br>**Owned**<sup>(1)</sup> | **Class B**<br>**Number of**<br>**Shares**<br>**Beneficially**<br>**Owned**<sup>(1)</sup> | **Combined** <br>**Number of**<br>**Beneficially**<br>**Owned**<sup>(3)</sup> | **Combined** <br>**Number of**<br>**Beneficially**<br>**Owned**<sup>(3)</sup> |
|<br>**Name** | **#** | **%** | **#** | **%** | **#** | **%** |
| John Teeple |  |  |  |  |  |  |
| Sean Willett | 13525 | 0.20% |  |  | 13525 | 0.18% |
| All directors and executive officers as a group (14 persons) | 101696 | 1.53% | 9574 | 1.46% | 111270 | 1.52% |

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\*Indicates one percent or less.

(1)Beneficial ownership includes shares of unvested restricted stock that shareholders are entitled to vote but does not include shares underlying performance based restricted stock units that are subject to vesting to the extent performance objectives are achieved.

(2)The address for Professional Fiduciary Services LLC is 7433 N. Beach Court, Fox Point, WI 53217. Consists of shares held by the Lincoln Bancorp Employee Stock Ownership Trust (the "ESOP Trust"). John Micheal Maier of Professional Fiduciary Services serves as the independent trustee of the ESOP Trust and has sole voting and investment power over the shares. The trustee disclaims beneficial ownership of these shares except to the extent of its fiduciary interest. Shares are allocated to individual participant accounts; however, the trustee retains voting and investment power for unallocated shares and, in certain circumstances, allocated shares.

(3)Consists of 719,100 shares of voting common stock held by Peterson Contractors Inc. The address of Peterson Contractors Inc is 104 Blackhawk St, Reinbeck, IA 50669. The natural persons who have or share voting and/or dispositive powers over the shares held are the majority owners of the voting stock of Peterson Contractors Inc, Cordell Q. Peterson and Gale "Cork" Peterson.

(4)Consists of 629,786 shares of voting common stock held by Castle Creek. The address of Castle Creek is 11682 El Camino Road, Suite 320, San Diego, California 92130. Castle Creek Capital VII LLC ("CCC VII"), the general partner of Castle Creek, shares voting and/or dispositive powers over the shares held by Castle Creek. CCC VII disclaims beneficial ownership of these shares except to the extent of its pecuniary interest therein.

(5)These shares are held in a trust for which Mr. Bush is trustee.

(6)Excludes the 629,786 shares of voting common stock held by Castle Creek. Mr. Cohn, a director of an affiliate of Castle Creek, is not deemed to beneficially own the shares held by Castle Creek pursuant to applicable SEC rules.

(7)These shares are held in a trust for which Ms. Hollis is trustee.

(8)Includes 600 shares owned by Mr. Peterson's spouse.

(9)Includes 4,876 shares owned by Mr. Presnall and his spouse jointly.

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**DESCRIPTION OF CAPITAL STOCK**

The following is a summary of the material terms of our capital stock, as they will be in effect upon the effectiveness of this registration statement. The following description of our capital stock does not purport to be complete so you should refer to our Amended and Restated Articles of Incorporation and Amended and Restated Bylaws, which we have included as exhibits to the registration statement of which this prospectus is a part. We urge you to read these documents for a more complete understanding of the information contained in this section.

**General**

Our authorized capital stock consists of 50,100,000 shares, of which 25,000,000 shares are Class A common stock, par value $0.01 per share ("Class A Common Stock"), and 25,000,000 shares are Class B common stock, par value $0.01 per share ("Class B Common Stock," and together with Class A Common Stock, "Common Stock"), and 100,000 shares are preferred stock, par value $0.01 per share ("Preferred Stock"). As of June 18, 2026, 6,668,126 shares of our Class A Common Stock were outstanding, 656,328 shares of our Class B Common Stock were outstanding, and no shares of our Preferred Stock were designated or outstanding.

At June 18, 2026, there were zero shares of our Common Stock issuable upon the exercise of outstanding stock options and 173,000 shares of our Common Stock issuable upon the future vesting of 173,000 restricted stock units outstanding.

All of our outstanding shares of Common Stock are fully paid and nonassessable.

**Class A Common Stock**

***Voting Rights***

Holders of our Class A Common Stock are entitled to one vote per share held on the applicable record date on all matters voted upon by shareholders of the corporation; provided, however, that holders of Class A Common Stock, as such, are not entitled to vote on any amendment to the Articles of Incorporation that relates solely to the terms, number of shares, powers, designations, preferences, or relative, participating, optional or other annual rights (including, without limitation, voting rights), or to qualifications, limitations or restrictions thereon, of the Preferred Stock or any series thereof, with respect to which the holders of outstanding shares of Preferred Stock or any series thereof are entitled, either separately or together with the holders of outstanding shares of one or more other classes or series of capital stock of the corporation, to vote thereon pursuant to the Articles of Incorporation, as amended from time to time.

Our Bylaws provide that a majority of the votes entitled to cast on a matter by a voting group, represented in person or by proxy, constitute a quorum of that voting group for action on that matter. If a quorum exists, action on a matter by a voting group is approved if the votes cast within the voting group favoring the action exceed the votes cast opposing the action. Unless otherwise provided by the Articles of Incorporation or the Bylaws, the vote required for election of a director by the shareholders must, except in a contested election, be the affirmative vote of a majority of the votes cast in favor of or against the election of a nominee at a meeting of shareholders. In a contested election, where there are more nominees for elections than positions on the board of directors to be filled by election at the meeting, a plurality vote is required. Shareholders do not have the right to cumulate their votes for directors unless the Articles of Incorporation so provide.

***Liquidation Rights***

Upon liquidation or dissolution, or upon the distribution of the assets, of the Company, the holders of Common Stock are entitled to share ratably in all the remaining assets of the Company after the holders of shares of each series of Preferred Stock have been paid the full amounts to which they are entitled by reason of such preferences.

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**Class B Common Stock**

***No Voting Rights***

Holders of Class B Common Stock do not have any voting rights, except as otherwise required by law.

***Liquidation Rights***

Upon liquidation or dissolution, or upon the distribution of the assets, of the Company, the holders of Common Stock are entitled to share ratably in all the remaining assets of the Company after the holders of shares of each series of Preferred Stock have been paid the full amounts to which they are entitled by reason of such preferences.

***Restrictions on Ownership of Company Common Stock***

The ability of a third party to acquire our stock is also limited under applicable U.S. banking laws, and regulatory approval for the acquisition of our stock may be required under certain circumstances. The BHC Act requires any bank holding company to obtain the approval of the FRB prior to acquiring more than 5% of our outstanding Common Stock. Any corporation or other company that becomes a holder of 25% or more of our outstanding Common Stock, or otherwise is deemed to control us under the BHC Act, would be subject to regulation as a bank holding company under the BHC Act. In addition, any person other than a bank holding company may be required to obtain prior approval of the FRB to acquire 10% or more of our outstanding Common Stock under the Change in Bank Control Act. See the section entitled "Supervision and Regulation" for an additional description of these federal law restrictions on ownership of our Common Stock.

***Advance Notice Provisions for Shareholder Nominations and Shareholder Proposals***

Our Bylaws provide that shareholders must provide advance notice of any proposal or nomination for election as a director which a shareholder desires to bring before a meeting of shareholders. Such requirements are in addition to any requirements under SEC Rule 14a-8 for shareholder proposals sought to be included in the Company's proxy materials.

**Preferred Stock**

Our Articles of Incorporation authorizes the issuance of up to 100,000 shares of Preferred Stock. The shares of Preferred Stock may be divided into and issued in one or more series, with such relative rights, preferences, and limitations as determined by the board of directors in its discretion. The board of directors is authorized to establish one or more series of Preferred Stock and to cause shares of Preferred Stock to be issued from time to time. At present, the Company has no shares of Preferred Stock outstanding.

Having shares of Preferred Stock available for issuance gives us flexibility in that it would allow us to avoid the expense and delay of calling a meeting of shareholders at the time the contingency or opportunity arises. Any issuance of Preferred Stock with voting rights or which is convertible into voting shares could adversely affect the voting power of the holders of Common Stock. Furthermore, the issuance of Preferred Stock could adversely affect the likelihood that such holders will receive dividend payments and payments upon liquidation. The shares of Preferred Stock that may be issued in the future may have other rights, including economic rights senior to our Common Stock, and, as a result, could have an adverse effect on the market value of our Common Stock.

Any of these actions could have an anti-takeover effect and discourage a transaction that some or a majority of our shareholders might believe to be in their best interests or in which our shareholders might receive a premium for their shares over our then-market price.

**Anti-Takeover Provisions**

Provisions of our Articles of Incorporation and Bylaws, Iowa Business Corporation Act and federal banking regulations applicable to us, may be deemed to have anti- takeover effects and may delay, defer or prevent a change of control of the Company and/or limit the price that certain investors may be willing to pay in the future for shares

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of our Common Stock. See the section entitled "Supervision and Regulation" for a description of the federal banking regulations applicable to us that may be deemed to have anti-takeover effects.

***Authorized but Unissued Shares***

The corporate laws and regulations applicable to us will enable our board of directors to issue, from time to time and at its discretion, but subject to the rules of any applicable securities exchange, any authorized but unissued shares of our Common Stock or Preferred Stock. Any such issuance of shares could be utilized for a variety of corporate purposes, including future offerings to raise additional capital, acquisitions and employee benefit plans. The ability of our board of directors to issue authorized but unissued shares of our Common Stock or Preferred Stock at its sole discretion may enable our board of directors to sell shares to individuals or groups who the board of directors perceives as friendly with management, which may make more difficult unsolicited attempts to obtain control of our organization. In addition, the ability of our board of directors to issue authorized but unissued shares of our capital stock at its sole discretion could deprive the shareholders of opportunities to sell their shares of Common Stock or Preferred Stock for prices higher than prevailing market prices.

***Preferred Stock***

Our Articles of Incorporation contains provisions that will permit our board of directors to issue, without any further vote or action by the shareholders, shares of Preferred Stock in one or more series and, with respect to each such series, to fix the number of shares constituting the series and the designation of the series, the voting rights (if any) of the shares of the series, and the powers, preferences and relative, participation, optional and other special rights, if any, and any qualifications, limitations or restrictions, of the shares of such series.

***Board Size and Vacancies***

Pursuant to our Bylaws, our board of directors are authorized to have no fewer than five nor more than 14 directors, with such number determined from time to time by a majority of the directors. Our board of directors will be able to fill a vacancy resulting from an increase in the number of directors by a majority of the directors then in office, or, if the directors remaining in office constitute fewer than a quorum, by the affirmative vote of a majority of all such directors remaining in office. A director elected to fill a vacancy will be elected to serve only until the next election of directors by the shareholders.

***No Cumulative Voting***

Our Bylaws do not permit cumulative voting in the election of directors unless the Articles of Incorporation so provide. In the absence of cumulative voting, the holders of a majority of the shares of our Common Stock may elect all of the directors standing for election, if they should so choose.

***Classification of the Board of Directors***

The Articles of Incorporation require that our board of directors are divided into three classes, Class I, Class II and Class III, as nearly equal in number as the then total number of directors constituting the entire Board of Directors permits with the term of office of one class expiring each year.

***Special Meetings of Shareholders***

For a special shareholders' meeting to be called, our Bylaws require the Chairman of the board of directors, the Company's Chief Executive Officer or President, or the holders of shares of at least 25% of the votes entitled to be cast on each issue proposed to be considered at such special meeting.

***Restrictions on Transfer***

Our Bylaws restricts transfer of all shares, requiring that any voluntary or involuntary transfer – including sales, gifts, bequests, or transfers by operation of law – must first be offered to the Company before they may be transferred to any third party. Except for limited family-related exceptions, no shareholder may transfer shares without providing written notice to the Company, which would then have the right to purchase the shares at their

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book value within the specified timeframes. If the Company declines or fails to purchase the shares, the shareholder may transfer them to the originally proposed transferee at the stated price.

***Advance Notice Procedures for Director Nominations and Shareholder Proposals***

Our Bylaws includes an advance notice procedure with regard to business to be brought before an annual or special meeting of shareholders and with regard to the nomination of candidates for election as directors, other than by or at the direction of the board of directors. Although this procedure does not give our board of directors any power to approve or disapprove shareholder nominations for the election of directors or proposals for action, it may have the effect of precluding a contest for the election of directors or the consideration of shareholder proposals if the established procedure is not followed, and of discouraging or deterring a third party from conducting a solicitation of proxies to elect its own slate of directors or to approve its proposal without regard to whether consideration of the nominees or proposals might be harmful or beneficial to our shareholders and us.

***Amending our Bylaws***

Our board of directors may amend our Bylaws, other than a bylaw specified by shareholders which the board of directors is expressly not permitted to amend without shareholder approval.

***Approval of Merger***

Under the Iowa Business Corporation Act, mergers must be approved by a majority of all the votes entitled to be cast by each voting group entitled to vote separately, unless the articles of incorporation, the bylaws or the board of directors require a greater vote or a vote by voting groups. Moreover, sales and dispositions of substantially all the assets require board adoption of a resolution authorizing the disposition and shareholder approval at a meeting at which a quorum consisting of at least a majority of the votes entitled to be cast exists. The articles of incorporation or bylaws of an Iowa corporation may, but are not required to, set a higher standard for approval of such transactions. Our Articles of Incorporation and Bylaws do not set higher limits.

***Federal Banking Laws***

The BHC Act, the Change in Bank Control Act and the Iowa Business Corporation Act impose notice, application and approvals and ongoing regulatory requirements on any shareholder or other party that seeks to acquire direct or indirect control of bank holding companies or banks, as applicable. These laws could delay or prevent an acquisition.

**Other Matters**

Under our Articles of Incorporation and Bylaws, the holders of our Common Stock have no preemptive or other subscription rights (except as otherwise disclosed herein), and there are no dividend, redemption, sinking fund or conversion privileges applicable to our Common Stock.

**Transfer Agent**

The transfer agent and registrar for our Common Stock is Equiniti Trust Company, LLC. .

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**SELLING SHAREHOLDERS**

The Selling Shareholders may offer and sell up to an aggregate amount of 821,917 shares of common stock. We are registering the shares in order to permit the Selling Shareholders to offer the shares for resale from time to time. Because the Selling Shareholders may not offer or sell all of the shares they own pursuant to this prospectus, we cannot give you an estimate as to the number of shares of common stock the Selling Shareholders will own upon termination of this offering, if any. Additionally, it is possible that the Selling Shareholders may acquire additional shares of common stock during, or following, the time that this registration statement of which this prospectus forms a part is effective with the SEC.

After completion of the registration, Castle Creek will hold 10.60% of the total outstanding Common Stock, and EJF will hold 3.82% of the total outstanding Common Stock.

**Selling Shareholder Agreements**

On October 22, 2018, we sold 547,945 shares of our Class A common stock to Castle Creek. In connection with this transaction, we entered into a Stock Purchase Agreement, dated as of October 22, 2018, with Castle Creek.

On November 26, 2018, we sold 273,972 shares of our Class A common stock to EJF. In connection with this transaction, we entered into a Stock Purchase Agreement, dated as of November 26, 2018, with EJF.

In connection with both Stock Purchase Agreements, we also entered into a Registration Rights Agreement, dated as of December 4, 2018, as amended by that certain Amendment to Registration Rights Agreement, dated as of December 8, 2023 (collectively, the "Registration Rights Agreement").

Under these agreements, we have agreed to comply with certain continuing obligations with respect to Castle Creek and EJF which are described in more detail below.

***Stock Purchase Agreement with Castle Creek.***

We have agreed that one individual designated by Castle Creek (the "Castle Creek Representative"), and approved by our board of directors, will be elected or appointed to our board of directors, and to the board of directors of Lincoln Savings Bank (and any future bank subsidiary), in each case subject to the satisfaction of applicable legal and regulatory requirements regarding service as a director, for so long as Castle Creek, together with its affiliates, continues to own at least the lesser of five percent (5%) of the common stock of the Company and the number of shares purchased under the Stock Purchase Agreement (the "Castle Creek Minimum Ownership Interest"). We have also agreed to recommend to our shareholders the election of the Castle Creek Representative to our board of directors at each meeting of shareholders at which directors are to be elected and to solicit proxies for such individual on the same basis as for our other director nominees.

If, at any time while Castle Creek and its affiliates continue to hold the Castle Creek Minimum Ownership Interest, Castle Creek does not have a representative serving on our board of directors or the board of directors of Lincoln Savings Bank (including as a result of pending regulatory approval), we have agreed to invite one individual designated by Castle Creek to attend meetings of our board of directors and the board of directors of Lincoln Savings Bank in a non-voting, non-participating observer capacity. Such observer will be entitled to receive notice of meetings and access to board materials at the same time as directors, subject to customary exclusions for confidential supervisory information, matters relating to pending or ongoing regulatory examinations, and attorney-client privileged materials.

The foregoing board representation and board observer rights will continue for so long as Castle Creek, together with its affiliates, continues to hold at least the Castle Creek Minimum Ownership Interest. If Castle Creek ceases to hold the Castle Creek Minimum Ownership Interest, Castle Creek will have no further board representation or observer rights, and, at the written request of our board of directors, Castle Creek will cause its board representative to resign promptly from our board of directors and from the board of directors of Lincoln Savings Bank.

Currently, Spencer Cohn serves on our board of directors as the representative of Castle Creek.

------

***Stock Purchase Agreement with EJF.***

We have agreed that, for so long as EJF, together with its affiliates, continues to hold the lesser of five percent (5%) of the common stock of the Company and the number of shares purchased under the Stock Purchase Agreement (the "EJF Minimum Ownership Interest"), the Company will invite one individual designated by EJF (the "EJF Observer") to attend meetings of our board of directors and the board of directors of Lincoln Savings Bank (and any future bank subsidiary), in each case in a non-voting, non-participating observer capacity.

The EJF Observer will be entitled to receive notice of meetings and to receive board materials at the same time and in the same manner as members of the applicable board, subject to customary exclusions for confidential supervisory information, matters relating to pending or ongoing regulatory examinations, and attorney-client privileged materials. In addition, if the Company or any such board proposes to act by written consent in lieu of a meeting, the Company will provide the EJF Observer with advance notice of such action and the proposed written consent. The EJF Observer will not have any right to vote on, participate in, or otherwise influence deliberations of the board of directors or any committee thereof, and will not be deemed to be a director for any purpose.

The foregoing observer and related information rights will continue for so long as EJF, together with its affiliates, continues to hold the EJF Minimum Ownership Interest. If EJF ceases to hold the EJF Minimum Ownership Interest, EJF will have no further observer or related information rights.

***Registration Rights Agreement with respect to Castle Creek.***

In connection with the transactions described above, we entered into the Registration Rights Agreement with Castle Creek providing Castle Creek with demand and piggyback registration rights.

Pursuant to its demand registration rights, Castle Creek may, at any time on or prior to December 31, 2025, require us to file a registration statement with the SEC covering the resale of its shares of common stock. Upon receipt of such a request, we are required to file the registration statement and use our reasonable best efforts to cause it to be declared effective within the timeframes specified in the registration rights agreements. Because we did not complete a resale registration prior to December 31, 2025, as required under the Registration Rights Agreement, we are currently paying Castle Creek liquidated damages and will continue to do so until the applicable registration statement is declared effective by the SEC. Under the Registration Rights Agreement, these liquidated damages accrue at a monthly rate equal to 3.0% of the aggregate original purchase price of the registrable securities held by Castle Creek, subject to certain limitations, plus interest at 1.0% per month if not timely paid. As of the date of this filing, these payments equal approximately $300,000 per month.

If the Company intends to file a registration statement for a primary or secondary offering of our securities (other than a registration statement related to equity compensation plans or mergers and acquisitions), the Company must give notice to Castle Creek at least 10 business days' prior to the anticipated registration statement filing date. The Company must effect registration of all securities that Castle Creek, within 5 business days following the notice given by the Company, requests to be included in the piggyback registration for resale.

In any of the foregoing registration statements, the Company will pay the fees and expenses of such registration statements, including all registration and filing fees, printing expenses, messenger, telephone and delivery expenses of the Company, trading market fees, fees and disbursements of counsel for the Company, Securities Act liability insurance and up to an aggregate of $50,000 of reasonably documented expenses incurred by Castle Creek.

***Registration Rights Agreement with respect to EJF.***

In connection with the transactions described above, we entered into a Registration Rights Agreement with EJF providing EJF with piggyback and shelf resale registration rights with respect to the shares of our common stock acquired by EJF in the private placement.

EJF does not have demand registration rights and cannot require us to file a registration statement. However, EJF does have piggyback rights and, if a resale registration statement is filed pursuant to the Registration Rights Agreement, EJF is entitled to have its registrable securities included in such registration statement, subject to

------

applicable SEC rules and, if necessary, pro rata allocation among holders. If a registration statement covering EJF's registrable securities is required to be filed or maintained under the Registration Rights Agreement and we fail to meet the applicable filing or effectiveness requirements, EJF may be entitled to receive liquidated damages equal to 3.0% of the aggregate original purchase price of the registrable securities held by EJF upon the occurrence of a registration default and on each monthly anniversary thereof until cured, subject to certain limitations, plus interest at a rate of 1.0% per month if not timely paid.

If the Company intends to file a registration statement for a primary or secondary offering of our securities (other than a registration statement related to equity compensation plans or mergers and acquisitions), the Company must give notice to EJF at least 10 business days' prior to the anticipated registration statement filing date. The Company must effect registration of all securities that EJF, within 5 business days following the notice given by the Company, requests to be included in the piggyback registration for resale.

In any of the foregoing registration statements, the Company will pay the fees and expenses of such registration statements, including all registration and filing fees, printing expenses, messenger, telephone, and delivery expenses of the Company, trading market fees, fees and disbursements of counsel for the Company, Securities Act liability insurance and up to an aggregate of $50,000 of reasonably documented expenses incurred by EJF.

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**PLAN OF DISTRIBUTION**

We are registering 821,917 shares of common stock, referred to as the "Shares," to permit the resale of the Shares under the Securities Act from time to time after the date of this prospectus at the discretion of the Selling Shareholders. We will not receive any of the proceeds from the sale by the Selling Shareholders of the Shares.

The Selling Shareholders and any of their pledgees, assignees and successors-in-interest may, from time to time, sell any or all of their Shares on the OTC, or any other stock exchange, market, quotation service or trading facility on which the Shares are traded or in private transactions, provided that all applicable laws are satisfied. The Selling Shareholders may also sell their Shares directly or through one or more underwriters, broker-dealers, or agents. If the Shares are sold through underwriters or broker-dealers, the Selling Shareholders will be responsible for underwriting discounts or commissions or agent's commissions. The Shares may be sold in one or more transactions at fixed prices, at prevailing market prices at the time of the sale, at varying prices determined at the time of sale, or at negotiated prices. A Selling Shareholder may use any one or more of the following methods when selling its Shares:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• on any national securities exchange or quotation service on which the securities may be listed or quoted at the time of sale;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• in the over-the-counter market;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• in transactions otherwise than on these exchanges or systems or in the over-the-counter market;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• ordinary brokerage transactions and transactions in which the broker-dealer solicits purchasers;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• block trades in which the broker-dealer will attempt to sell the Shares as agent but may position and resell a portion of the block as principal to facilitate the transaction;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• purchases by a broker-dealer as principal and resale by the broker-dealer for its account;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• an exchange distribution in accordance with the rules of the applicable exchange;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• privately negotiated transactions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• settlement of short sales entered into after the effective date of the registration statement of which this prospectus is a part;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• broker-dealers may agree with the Selling Shareholders to sell a specified number of such Shares at a stipulated price per share;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• through the writing or settlement of options or other hedging transactions, whether through an options exchange or otherwise;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• a combination of any such methods of sale and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• any other method permitted pursuant to applicable law.

The Selling Shareholders may also sell the Shares pursuant to Rule 144 under the Securities Act, if available, rather than under this prospectus. In addition, the Selling Shareholders may transfer the Shares by other means not described in this prospectus.

If the Selling Shareholders effect such transactions by selling common stock to or through underwriters, broker-dealers or agents, such underwriters, broker-dealers or agents may receive commissions in the form of discounts, concessions or commissions from the Selling Shareholders or commissions from purchasers of the common stock for whom they may act as agent or to whom they may sell as principal (which discounts, concessions, or commissions as to particular underwriters, broker-dealers, or agents may be in excess of those customary in the types of transactions involved). Broker-dealers engaged by the Selling Shareholders may arrange for other brokers-dealers to participate in sales. Broker-dealers may receive commissions or discounts from the Selling Shareholders

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(or, if any broker-dealer acts as agent for the purchaser of Shares, from the purchaser) in amounts to be negotiated, but, except as set forth in a supplement to this prospectus, in the case of an agency transaction, not in excess of a customary brokerage commission in compliance with FINRA Rule 2121 and FINRA Rule 2122 and in the case of a principal transaction, a markup or markdown in compliance with FINRA Rule 2121.

In connection with sales of common stock or interests therein, the Selling Shareholders may enter into hedging transactions with broker-dealers or other financial institutions, which may in turn engage in short sales of the common stock in the course of hedging positions they assume. A Selling Shareholder may also sell common stock short and deliver common stock covered by this prospectus to close out its short positions and to return borrowed shares in connection with such short sales. A Selling Shareholder may also loan or pledge common stock to broker-dealers that in turn may sell such common stock. The Selling Shareholders may also enter into option or other transactions with broker-dealers or other financial institutions or the creation of one or more derivative securities which require the delivery to such broker-dealer or other financial institution of common stock offered by this prospectus, which common stock such broker-dealer or other financial institution may resell pursuant to this prospectus (as supplemented or amended to reflect such transaction).

The Selling Shareholders may pledge or grant a security interest in the Shares owned by them, as applicable, and, if they default in the performance of their secured obligations, the pledgees or secured parties may offer and sell the Shares from time to time pursuant to this prospectus or any amendment to this prospectus under Rule 424(b)(3) or other applicable provision of the Securities Act amending, if necessary, the Selling Shareholders to include the pledgee, transferee or other successors in interest as Selling Shareholders under this prospectus. The Selling Shareholders also may transfer and donate the Shares in other circumstances in which case the transferees, donees, pledgees or other successors in interest will be the selling beneficial owners for purposes of this prospectus.

To the extent required by the Securities Act and the rules and regulations thereunder, the Selling Shareholders and any broker-dealers or agents that are involved in selling the Shares may be deemed to be "underwriters" within the meaning of the Securities Act, in connection with such sales. In such event, any commissions received by, or any discounts or concessions allowed to, any such broker-dealer or agent and any profit on the resale of any Shares purchased by them may be deemed to be underwriting commissions or discounts under the Securities Act. At the time a particular offering of the Shares is made, a prospectus supplement, if required, will be distributed that will set forth the aggregate amount of Shares being offered and the terms of the offering, including the name or names of any broker-dealers or agents, any discounts, commissions, and other terms constituting compensation from the Selling Shareholders and any discounts, commissions, or concessions allowed or re-allowed or paid to broker-dealers.

The Selling Shareholders have informed us that they do not have any written or oral agreement or understanding, directly or indirectly, with any person to distribute the Shares.

Once this registration statement becomes effective, we intend to file the final prospectus with the SEC in accordance with SEC Rule 424.

There is currently no underwriter or coordinating broker acting in connection with the proposed sale of the resale Shares by the Selling Shareholders.

Under the securities laws of some states, the Shares may be sold in such states only through registered or licensed brokers or dealers. In addition, in some states the Shares may not be sold unless such shares have been registered or qualified for sale in such state, or an exemption from registration or qualification is available and is complied with.

Under applicable rules and regulations under the Exchange Act, any person engaged in the distribution of the Shares may not simultaneously engage in market making activities with respect to the Shares for the applicable restricted period, as defined in Regulation M, prior to the commencement of the distribution. In addition, the Selling Shareholders will be subject to applicable provisions of the Exchange Act, and the rules and regulations thereunder, including Regulation M, which may limit the timing of purchases and sales of Shares by the Selling Shareholders or any other person. All of the foregoing provisions may affect the marketability of the Shares and the ability of any person or entity to engage in market- making activities with respect to the Shares.

------

We will pay all expenses of the registration of the Shares, estimated to be approximately $1,403,744 in total, including, without limitation, SEC filing fees, expenses of compliance with state securities or "blue sky" laws and legal and accounting fees; provided, however, that the Selling Shareholders will pay all underwriting discounts and selling commissions, if any. We will indemnify the Selling Shareholders against liabilities, including some liabilities under the Securities Act, in accordance with applicable registration rights agreements, if any, or the Selling Shareholders will be entitled to contribution. We may be indemnified by the Selling Shareholders against civil liabilities, including liabilities under the Securities Act, which may arise from any written information furnished to us by the Selling Shareholders specifically for use in this prospectus, in accordance with the applicable definitive documents entered into with the Selling Shareholders, or we may be entitled to contribution.

We agreed to keep the registration statement of which this prospectus forms a part effective until the earlier of (i) the date on which the Common Stock may be resold by the Selling Shareholders without registration and without the requirement to be in compliance with Rule 144(c)(1) and otherwise without restriction or limitation pursuant to Rule 144 or (ii) all of the Shares have been sold by Selling Shareholders pursuant to this prospectus or Rule 144 under the Securities Act or any other rule of similar effect.

Once sold under the registration statement of which this prospectus forms a part, the Shares will be freely tradable in the hands of persons other than our affiliates.

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**LEGAL MATTERS**

The validity of the shares of our common stock offered hereby will be passed upon for us by Alston & Bird LLP, Atlanta, Georgia.

**EXPERTS**

The consolidated financial statements of Lincoln Bancorp as of December 31, 2025 and for the year then ended, have been audited by Wipfli LLP, independent registered public accounting firm, as set forth in their report thereon, and included in this registration statement on Form S-1. Such consolidated financial statements have been included herein in reliance upon such report given on the authority of such firm as experts in accounting and auditing.

The consolidated financial statements of Lincoln Bancorp as of December 31, 2024 and for the year then ended, have been audited by Forvis Mazars, LLP, independent registered public accounting firm, as set forth in their report thereon, and included in this registration statement on Form S-1. Such consolidated financial statements have been included herein in reliance upon such report given on the authority of such firm as experts in accounting and auditing.

**WHERE YOU CAN FIND MORE INFORMATION**

We have filed with the Securities and Exchange Commission, or the SEC, a registration statement on Form S-1 under the Securities Act of 1933, as amended, with respect to the securities offered by this prospectus. This prospectus does not contain all of the information included in the registration statement. For further information pertaining to us and the shares to be sold by the Selling Shareholders in this resale, you should refer to the registration statement and to its exhibits. Statements contained in this prospectus regarding the contents of any contract or any other document that is filed as an exhibit to the registration statement are not necessarily complete, and each such statement is qualified in all respects by reference to the full text of such contract or other document filed as an exhibit to the registration statement.

Upon effectiveness of this registration statement, we will be subject to the informational requirements of the Exchange Act and will file annual, quarterly, and current reports, proxy statements and other information with the SEC. You can read our SEC filings, including the registration statement, at the SEC's website at www.sec.gov. We also maintain a website at www.mylsb.com. Upon effectiveness of this registration statement, you may access, free of charge, our annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K and amendments to those reports filed or furnished pursuant to Section 13(a) or 15(d) of the Exchange Act as soon as reasonably practicable after such material is electronically filed with, or furnished to, the SEC. Information contained on our website is not a part of this prospectus and the inclusion of our website address in this prospectus is an inactive textual reference only.

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**INDEX TO CONSOLIDATED FINANCIAL STATEMENTS** 

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| | |
|:---|:---|
| | **Page** |
| <u>[CONSOLIDATED BALANCE SHEETS](#i7085be1544ff4b7d9fd2b45737811e0a_91)[A](#i7085be1544ff4b7d9fd2b45737811e0a_91)[T](#i7085be1544ff4b7d9fd2b45737811e0a_91)[MARCH 31, 2026 AND DECEMBER 31, 2025](#i7085be1544ff4b7d9fd2b45737811e0a_91)</u> | <u>[F-2](#i7085be1544ff4b7d9fd2b45737811e0a_91)</u> |
| <u>[CONSOLIDATED STATEMENTS OF OPERATIONS](#i7085be1544ff4b7d9fd2b45737811e0a_94)[FOR THE](#i7085be1544ff4b7d9fd2b45737811e0a_94)[THREE MONTHS](#i7085be1544ff4b7d9fd2b45737811e0a_94)[ENDED MARCH 31, 2026 AND 2025](#i7085be1544ff4b7d9fd2b45737811e0a_94)</u> | <u>[F-3](#i7085be1544ff4b7d9fd2b45737811e0a_94)</u> |
| <u>[CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME](#i7085be1544ff4b7d9fd2b45737811e0a_97)[FOR THE](#i7085be1544ff4b7d9fd2b45737811e0a_97)[THREE MONTHS](#i7085be1544ff4b7d9fd2b45737811e0a_97)[ENDED MARCH 31, 2026 AND 2025](#i7085be1544ff4b7d9fd2b45737811e0a_97)</u> | <u>[F-4](#i7085be1544ff4b7d9fd2b45737811e0a_97)</u> |
| <u>[CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY](#i7085be1544ff4b7d9fd2b45737811e0a_100)[FOR THE](#i7085be1544ff4b7d9fd2b45737811e0a_100)[THREE MONTHS](#i7085be1544ff4b7d9fd2b45737811e0a_100)[ENDED MARCH 31, 2026 AND 2025](#i7085be1544ff4b7d9fd2b45737811e0a_100)</u> | <u>[F-5](#i7085be1544ff4b7d9fd2b45737811e0a_100)</u> |
| <u>[CONSOLIDATED STATEMENTS OF CASH FLOWS](#i7085be1544ff4b7d9fd2b45737811e0a_103)[FOR THE](#i7085be1544ff4b7d9fd2b45737811e0a_103)[THREE MONTH](#i7085be1544ff4b7d9fd2b45737811e0a_103)[S](#i7085be1544ff4b7d9fd2b45737811e0a_103)[ENDED MARCH 31, 2026 AND 2025](#i7085be1544ff4b7d9fd2b45737811e0a_103)</u> | <u>[F-6](#i7085be1544ff4b7d9fd2b45737811e0a_103)</u> |
| <u>[NOTES TO CONSOLIDATED FINANCIAL STATEMENTS](#i7085be1544ff4b7d9fd2b45737811e0a_106)</u> | <u>[F-8](#i7085be1544ff4b7d9fd2b45737811e0a_106)</u> |

---

---

| | |
|:---|:---|
| | **Page** |
| <u>[REPORTS OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRMS](#i7085be1544ff4b7d9fd2b45737811e0a_1082)</u> | <u>[F-41](#i7085be1544ff4b7d9fd2b45737811e0a_1082)</u> |
| <u>[CONSOLIDATED BALANCE SHEETS AS OF DECEMBER 31, 2025 AND 2024](#i7085be1544ff4b7d9fd2b45737811e0a_1091)</u> | <u>[F-43](#i7085be1544ff4b7d9fd2b45737811e0a_1091)</u> |
| <u>[CONSOLIDATED STATEMENTS OF OPERATIONS FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024](#i7085be1544ff4b7d9fd2b45737811e0a_1100)</u> | <u>[F-44](#i7085be1544ff4b7d9fd2b45737811e0a_1100)</u> |
| <u>[CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME](#i7085be1544ff4b7d9fd2b45737811e0a_1109)[FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024](#i7085be1544ff4b7d9fd2b45737811e0a_1109)</u> | <u>[F-45](#i7085be1544ff4b7d9fd2b45737811e0a_1109)</u> |
| <u>[CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024](#i7085be1544ff4b7d9fd2b45737811e0a_1118)</u> | <u>[F-46](#i7085be1544ff4b7d9fd2b45737811e0a_1118)</u> |
| <u>[CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024](#i7085be1544ff4b7d9fd2b45737811e0a_1129)</u> | <u>[F-47](#i7085be1544ff4b7d9fd2b45737811e0a_1129)</u> |
| <u>[NOTES TO CONSOLIDATED FINANCIAL STATEMENTS](#i7085be1544ff4b7d9fd2b45737811e0a_1138)</u> | <u>[F-49](#i7085be1544ff4b7d9fd2b45737811e0a_1138)</u> |

---

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**Lincoln Bancorp and Subsidiaries**

**Consolidated Balance Sheets**

As of March 31, 2026 (unaudited) and December 31, 2025 (audited)

(Amounts in Thousands)

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| | | |
|:---|:---|:---|
| | **March 31, 2026** | **December 31, 2025** |
| **Assets** | | |
| Cash and due from banks | $125736 | $61730 |
| Federal funds sold | 98598 | 72546 |
| &nbsp;&nbsp;&nbsp;&nbsp;Cash and cash equivalents | 224334 | 134276 |
| Available-for-sale debt securities (amortized cost basis of $290,694 and $361,273 at March 31, 2026 and December 31, 2025) (Note 2) | 273400 | 329909 |
| Loans held for sale | 129 | 605 |
| Loans, net of allowance for credit losses of $17,964 and $17,865 at March 31, 2026 and December 31, 2025 (Note 3) | 1146731 | 1148171 |
| Premises and equipment, net | 39281 | 39672 |
| Other real estate | 10201 | 9966 |
| Accrued interest receivable | 8857 | 10478 |
| Cash surrender value of life insurance | 37294 | 36887 |
| Other investments (Note 2) | 7619 | 7657 |
| Goodwill (Note 5) | 18805 | 18805 |
| Other assets | 22150 | 23952 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total assets | $1788801 | $1760378 |
| **Liabilities and Stockholders' Equity** |  |  |
| **Liabilities** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Noninterest-bearing deposits | $227562 | $245236 |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest-bearing deposits | 1293055 | 1261835 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total deposits (Note 6) | 1520617 | 1507071 |
| &nbsp;&nbsp;&nbsp;&nbsp;Federal Home Loan Bank advances (Note 7) | 70000 | 70000 |
| &nbsp;&nbsp;&nbsp;&nbsp;Notes payable (Note 9) | - | 14500 |
| &nbsp;&nbsp;&nbsp;&nbsp;Subordinated debt, net of issuance costs (Note 10) | 32649 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;Junior subordinated debentures (Note 10) | 9279 | 9279 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accrued interest payable | 3105 | 2533 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other liabilities | 18372 | 19181 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities | 1654022 | 1622564 |
| Stockholders' Equity: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Class A Common stock, $0.01 par value; authorized 25,000,000 shares; 6,778,670 shares issued and 6,661,818 shares outstanding at March 31, 2026, and 6,778,670 shares issued and 6,654,688 shares outstanding at December 31, 2025 | 68 | 68 |
| &nbsp;&nbsp;&nbsp;&nbsp;Class B Common stock, $0.01 par value; authorized 25,000,000 shares; 656,328 shares issued and outstanding at March 31, 2026 and December 31, 2025 | 7 | 7 |
| &nbsp;&nbsp;&nbsp;&nbsp;Additional paid-in capital | 65847 | 65745 |
| &nbsp;&nbsp;&nbsp;&nbsp;Retained earnings | 85034 | 97635 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accumulated other comprehensive loss, net of income taxes (Note 8) | (13263) | (22492) |
| &nbsp;&nbsp;&nbsp;&nbsp;Treasury stock, at cost <br>Common - 116,852 shares at March 31, 2026 and 123,982 shares at December 31, 2025 | (1514) | (1635) |
| &nbsp;&nbsp;&nbsp;&nbsp;Unallocated common stock of Employee Stock Ownership (ESOP), 84,077 and 90,498 shares at March 31, 2026 and December 31, 2025 | (1400) | (1514) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total stockholders' equity | 134779 | 137814 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities and stockholders' equity | $1788801 | $1760378 |

---

See Notes to Consolidated Financial Statements

------

**Lincoln Bancorp and Subsidiaries**

**Consolidated Statements of Operations** 

For the three months ended March 31, 2026 and 2025 (unaudited)

(Amounts in Thousands)

---

| | | |
|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** |
| | **March 31, 2026** | **March 31, 2025** |
| **Interest Income** | | |
| &nbsp;&nbsp;&nbsp;&nbsp;Loans, including fees | $16485 | $20265 |
| &nbsp;&nbsp;&nbsp;&nbsp;Investment securities |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Taxable | 2819 | 2103 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Tax-exempt | 849 | 1042 |
| &nbsp;&nbsp;&nbsp;&nbsp;Federal funds sold | 1047 | 141 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total interest income | 21200 | 23551 |
| **Interest Expense** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Deposits | 8751 | 11308 |
| &nbsp;&nbsp;&nbsp;&nbsp;Federal Home Loan Bank advances | 692 | 713 |
| &nbsp;&nbsp;&nbsp;&nbsp;Notes payable, subordinated debentures and junior subordinated debentures | 800 | 406 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total interest expense | 10243 | 12427 |
| **Net Interest Income**  | 10957 | 11124 |
| **Provision for Credit Losses**  | 125 | 911 |
| **Net Interest Income After Provision for Credit Losses**  | 10832 | 10213 |
| **Noninterest Income** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Trust fees | 187 | 213 |
| &nbsp;&nbsp;&nbsp;&nbsp;Brokerage service commissions | 490 | 455 |
| &nbsp;&nbsp;&nbsp;&nbsp;Service charges on deposit accounts | 304 | 244 |
| &nbsp;&nbsp;&nbsp;&nbsp;Net gains on mortgage loan sales | 66 | 100 |
| &nbsp;&nbsp;&nbsp;&nbsp;Net gains on SBA and USDA loan sales | 9 | 17 |
| &nbsp;&nbsp;&nbsp;&nbsp;Net realized (losses) gains on sale of available-for-sale debt securities | (15690) | - |
| &nbsp;&nbsp;&nbsp;&nbsp;Unrealized (losses) gains on equity securities | (40) | 30 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other noninterest income | 1932 | 1587 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total noninterest (loss) income | (12742) | 2646 |
| **Noninterest Expense** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Salaries and employee benefits | 7747 | 7799 |
| &nbsp;&nbsp;&nbsp;&nbsp;Occupancy | 1038 | 963 |
| &nbsp;&nbsp;&nbsp;&nbsp;Furniture, equipment and software expense | 1658 | 1701 |
| &nbsp;&nbsp;&nbsp;&nbsp;Net losses on sales of other real estate and real estate expense | 32 | 37 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other noninterest expense | 4449 | 3008 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total noninterest expense | 14924 | 13508 |
| **Loss Before Income Tax**  | (16834) | (649) |
| **Credit for Income Taxes**  | (4233) | (457) |
| **Net Loss**  | $(12601) | $(192) |
| **(Loss) Earnings Per Share** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Basic | $(1.72) | $(0.03) |
| &nbsp;&nbsp;&nbsp;&nbsp;Diluted | $(1.72) | $(0.03) |

---

See Notes to Consolidated Financial Statements

------

**Lincoln Bancorp and Subsidiaries**

**Consolidated Statements of Comprehensive Income (Loss)** 

For the three months ended March 31, 2026 and 2025 (unaudited)

(Amounts in Thousands)

---

| | | |
|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** |
| | **March 31, 2026** | **March 31, 2025** |
| **Net Loss**  | $(12601) | $(192) |
| **Other Comprehensive Income (Loss)** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Securities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Unrealized depreciation on available-for-sale debt securities | (3721) | (567) |
| &nbsp;&nbsp;&nbsp;&nbsp;Reclassification adjustment for loss (gain) included in net loss | 15690 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;Income tax (expense) benefit | (2983) | 572 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other comprehensive gain on available-for-sale debt securities | 8986 | 5 |
| &nbsp;&nbsp;&nbsp;&nbsp;Derivatives used in cash flow hedging relationships: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Unrealized gain (loss) on derivatives | 317 | (291) |
| &nbsp;&nbsp;&nbsp;&nbsp;Income tax (expense) benefit | (74) | 71 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other comprehensive gain (loss) on cash flow hedges | 243 | (220) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other comprehensive income (loss), net of tax | 9229 | (215) |
| **Comprehensive Loss** | $(3372) | $(407) |

---

See Notes to Consolidated Financial Statements

------

**Lincoln Bancorp and Subsidiaries**

**Consolidated Statements of Stockholders' Equity**

For the three months ended March 31, 2026 and 2025 (unaudited)

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Three Months Ended March 31, 2025** | **Three Months Ended March 31, 2025** | **Three Months Ended March 31, 2025** | **Three Months Ended March 31, 2025** | **Three Months Ended March 31, 2025** | **Three Months Ended March 31, 2025** | **Three Months Ended March 31, 2025** | **Three Months Ended March 31, 2025** | **Three Months Ended March 31, 2025** |
| | **Class A<br>Common<br>Stock** | **Class B<br>Common<br>Stock** | **Additional<br>Paid-in<br>Capital** | **Retained<br>Earnings** | **Accumulated<br>Other<br>Comprehensive<br>Income (Loss)** | **Treasury<br>Stock** | **Unearned<br>ESOP<br>Shares** | **Total** |
| **Balance, December 31, 2024**  | $68 | $7 | $65673 | $100083 | $(25783) | $(973) | $(2217) | $136858 |
| &nbsp;&nbsp;&nbsp;&nbsp;Net loss | - | - | - | (192) | - | - | - | (192) |
| &nbsp;&nbsp;&nbsp;&nbsp;Other comprehensive loss | - | - | - | - | (215) | - | - | (215) |
| &nbsp;&nbsp;&nbsp;&nbsp;Stock based compensation | - | - | 183 | - | - | - | - | 183 |
| &nbsp;&nbsp;&nbsp;&nbsp;ESOP shares earned | - | - | - | - | - | - | 238 | 238 |
| **Balance, March 31, 2025**  | 68 | 7 | 65856 | 99891 | (25998) | (973) | (1979) | 136872 |
| **Three Months Ended March 31, 2026** | **Three Months Ended March 31, 2026** | **Three Months Ended March 31, 2026** | **Three Months Ended March 31, 2026** | **Three Months Ended March 31, 2026** | **Three Months Ended March 31, 2026** | **Three Months Ended March 31, 2026** | **Three Months Ended March 31, 2026** | **Three Months Ended March 31, 2026** |
| **Balance, December 31, 2025**  | $68 | $7 | $65745 | $97635 | $(22492) | $(1635) | $(1514) | 137814 |
| &nbsp;&nbsp;&nbsp;&nbsp;Net loss | - | - | - | (12601) | - | - | - | (12601) |
| &nbsp;&nbsp;&nbsp;&nbsp;Other comprehensive income | - | - | - | - | 9229 | - | - | 9229 |
| &nbsp;&nbsp;&nbsp;&nbsp;Issuance of 15,000 shares of common stock out of treasury stock for stock based compensation plan | - | - | - | - | - | 121 | - | 121 |
| &nbsp;&nbsp;&nbsp;&nbsp;Purchase of 7,870 shares of treasury stock | - | - | (33) | - | - | - | - | (33) |
| &nbsp;&nbsp;&nbsp;&nbsp;Stock based compensation | - | - | 135 | - | - | - | - | 135 |
| &nbsp;&nbsp;&nbsp;&nbsp;ESOP shares earned | - | - | - | - | - | - | 114 | 114 |
| **Balance, March 31, 2026**  | $68 | $7 | $65847 | $85034 | $(13263) | $(1514) | $(1400) | $134779 |

---

See Notes to Consolidated Financial Statements

------

**Lincoln Bancorp and Subsidiaries**

**Consolidated Statements of Cash Flows** 

For the three months ended March 31, 2026 and 2025 (unaudited)

(Amounts in Thousands)

---

| | | |
|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** |
| | **March 31, 2026** | **March 31, 2025** |
| **Cash Flows from Operating Activities** | | |
| Net loss | $(12601) | $(192) |
| Items not requiring (providing) cash |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Depreciation | 571 | 588 |
| &nbsp;&nbsp;&nbsp;&nbsp;Provision for credit losses | 125 | 911 |
| &nbsp;&nbsp;&nbsp;&nbsp;Amortization and accretion, net | 401 | 417 |
| &nbsp;&nbsp;&nbsp;&nbsp;Deferred income taxes | (4394) | (639) |
| &nbsp;&nbsp;&nbsp;&nbsp;Net gains on sale of loans | (75) | (117) |
| &nbsp;&nbsp;&nbsp;&nbsp;Net realized loss on available-for-sale securities | 15690 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;Unrealized loss (gain) on equity securities | 40 | (30) |
| &nbsp;&nbsp;&nbsp;&nbsp;Origination of loans held for sale | (6261) | (3484) |
| &nbsp;&nbsp;&nbsp;&nbsp;Proceeds from sale of loans held for sale | 6811 | 3845 |
| &nbsp;&nbsp;&nbsp;&nbsp;Stock based compensation | 135 | 183 |
| &nbsp;&nbsp;&nbsp;&nbsp;ESOP shares earned | 114 | 238 |
| &nbsp;&nbsp;&nbsp;&nbsp;Amortization of right-of-use asset | 33 | 15 |
| &nbsp;&nbsp;&nbsp;&nbsp;Increase in cash value of life insurance | (407) | (434) |
| &nbsp;&nbsp;&nbsp;&nbsp;Stock based compensation expense from share issuance | 88 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;Net gain on other real estate due to writedown or sale | (6) | - |
| Changes in |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest receivable | 1621 | 927 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other assets | 3250 | (150) |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest payable and other liabilities | (260) | (849) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash provided by operating activities | 4875 | 1229 |
| **Cash Flows From Investing Activities** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Purchases of available-for-sale securities | (52923) | (9471) |
| &nbsp;&nbsp;&nbsp;&nbsp;Proceeds from maturities and paydowns of available-for-sale securities | 3389 | 4982 |
| &nbsp;&nbsp;&nbsp;&nbsp;Proceeds from sale of available-for-sale securities | 102440 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;Sale of other investments | 1862 | 4988 |
| &nbsp;&nbsp;&nbsp;&nbsp;Purchase of other investments | (1865) | (4153) |
| &nbsp;&nbsp;&nbsp;&nbsp;Net change in loans | 737 | 55392 |
| &nbsp;&nbsp;&nbsp;&nbsp;Purchase of premises and equipment | (208) | - |
| &nbsp;&nbsp;&nbsp;&nbsp;Proceeds from bank owned life insurance | - | 17807 |
| &nbsp;&nbsp;&nbsp;&nbsp;Proceeds from sale of real estate and other assets held for sale, net | 55 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash provided by investing activities | $53487 | $69545 |

---

See Notes to Consolidated Financial Statements

------

**Lincoln Bancorp and Subsidiaries**

**Consolidated Statements of Cash Flows (Continued)**

For the three months ended March 31, 2026 and 2025 (unaudited)

(Amounts in Thousands)

---

| | | |
|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** |
| | **March 31, 2026** | **March 31, 2025** |
| **Cash Flows From Financing Activities** | | |
| &nbsp;&nbsp;&nbsp;&nbsp;Net increase (decrease) in deposits | $12496 | $(24017) |
| &nbsp;&nbsp;&nbsp;&nbsp;Net change in escrow accounts | 1051 | 1372 |
| &nbsp;&nbsp;&nbsp;&nbsp;Proceeds from subordinated debentures | 33500 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;Payments of subordinated debt issuance costs, net of amortization | (851) | - |
| &nbsp;&nbsp;&nbsp;&nbsp;Repayment of notes payable | (14500) | - |
| &nbsp;&nbsp;&nbsp;&nbsp;Proceeds from Federal Home Loan Bank advances and other debt | 40000 | 90695 |
| &nbsp;&nbsp;&nbsp;&nbsp;Repayment of Federal Home Loan Bank advances and other debt | (40000) | (110205) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash provided by (used in) financing activities | 31696 | (42155) |
| Increase in Cash and Cash Equivalents | 90058 | 28619 |
| Cash and Cash Equivalents, Beginning of Year | 134276 | 18062 |
| Cash and Cash Equivalents, End of Year | $224334 | $46681 |
| **Supplemental Disclosures of Cash Flow Information** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest paid | $9671 | $12782 |
| &nbsp;&nbsp;&nbsp;&nbsp;Income taxes paid | - | - |
| &nbsp;&nbsp;&nbsp;&nbsp;Real estate acquired in settlement of loans | 284 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;Restricted cash | 1900 | 4940 |

---

See Notes to Consolidated Financial Statements

------

**Lincoln Bancorp and Subsidiaries**

**Notes to Consolidated Financial Statements**

**Note 1:&nbsp;&nbsp;&nbsp;&nbsp;Nature of Operations and Summary of Significant Accounting Policies**

***Basis of Presentation***

The accompanying interim consolidated financial statements are prepared in accordance with GAAP for interim financial information and pursuant to Article 10 of Regulation S-X of the Securities Exchange Act of 1934. Accordingly, certain disclosures accompanying annual consolidated financial statements are omitted. In the opinion of management, all significant intercompany accounts and transactions have been eliminated and adjustments, consisting solely of normal recurring accruals and considered necessary for the fair presentation of financial statements for the interim periods, have been included. The current period's results of operations are not necessarily indicative of the results that ultimately may be achieved for the year. The interim condensed consolidated financial statements and notes thereto should be read in conjunction with the audited consolidated financial statements and notes thereto for the year ended December 31, 2025, which are included herein (See the INDEX TO CONSOLIDATED FINANCIAL STATEMENTS).

***Nature of Operations and Operating Segments***

Lincoln Bancorp (the "Company") is a bank holding company which owns 100% of the outstanding common stock of Lincoln Savings Bank (the "Bank"). The Bank's services are offered to individuals, businesses, governmental units and institutional customers in Iowa communities including Adel, Allison, Ankeny, Aplington, Clive, Cedar Falls, Des Moines, Garwin, Greene, Grinnell, Hudson, Lincoln, Nashua, Reinbeck, Tama, Waterloo and the surrounding areas. The Bank is actively engaged in many areas of commercial banking, including acceptance of demand, savings and time deposits; making commercial, real estate, agricultural and consumer loans; and other banking services tailored for its individual customers. The Bank also operates an embedded finance division, partnering with several corporate Fintech clients which offer payment sources and business products. The Bank's trust department administers estates, personal trusts, conservatorships, pension and profit-sharing funds along with providing other management services to customers.

***Principles of Consolidation***

The consolidated financial statements include the accounts of the Company and its wholly owned subsidiary, Lincoln Savings Bank, and its wholly owned subsidiaries, LSB Financial Services Inc and LSB Capital Management Inc. All significant intercompany balances and transactions have been eliminated in consolidation. The Company also owns 100% of Lincoln Bancorp Capital Trust II, which was formed for the purpose of issuing trust preferred securities as discussed more fully in <u>[Note 10. Subordinated Debentures and Junior Subordinated Debentures](#i7085be1544ff4b7d9fd2b45737811e0a_139)</u>. In accordance with generally accepted accounting principles (GAAP), this Trust is not included in the consolidated financial statements. This investment is accounted for under the equity method of accounting.

***Use of Estimates and Changes in Accounting Standards***

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. The results for the three months ended March 31, 2026 may not be indicative of results for the year ending December 31, 2026, or for any other period.

In some cases, the Company could be required to apply a new or revised standard retroactively, which would result in the recasting of our prior period financial statements.

All significant accounting policies followed in the preparation of the quarterly financial statements are disclosed in our Annual Report for the year ended December 31, 2025, which are included herein (See the <u>[INDEX TO CONSOLIDATED FINANCIAL STATEMENTS](#i7085be1544ff4b7d9fd2b45737811e0a_79)</u>).

------

**Lincoln Bancorp and Subsidiaries**

**Notes to Consolidated Financial Statements**

***Accounting Standards Pending Adoption***

In November 2024, the FASB issued ASU No. 2024-03, *Income Statement-Reporting Comprehensive Income-Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses*. The amendments in this ASU require disclosure in the notes to the financial statements, specified information about certain costs and expenses at each interim and annual reporting period. Additionally, in January 2025, the FASB issued ASU No. 2025-01, *Income Statement-Reporting Comprehensive Income-Expense Disaggregation Disclosures (Subtopic 220-40): Clarifying the Effective Date*. This ASU amends the effective date of ASU No. 2024-03 to clarify that all public business entities are required to adopt the guidance in annual reporting periods beginning after December 15, 2026, and interim periods within annual reporting periods beginning after December 15, 2027. Early adoption of ASU No. 2024-03 is permitted. The Company is currently evaluating the impact of the ASU on the Company's consolidated financial statements.

In November 2025, the FASB issued ASU No. 2025-08, *Financial Instruments-Credit Losses (Topic 326): Purchased Loans*. The ASU expands the population of acquired financial assets accounted for using the "gross-up approach" when recording the initial allowance for credit losses through an adjustment to the initial amortized cost basis. Acquired loans are deemed purchased seasoned loans and accounted for using the gross-up approach upon acquisition if criteria established by the new guidance are met. This change aims to enhance comparability, consistency and better reflect the economics of acquiring financial assets. This ASU is effective for annual reporting periods beginning after December 15, 2026 and interim reporting periods within those annual reporting periods. Early adoption is permitted. The Company is currently evaluating the impact of the ASU on the Company's consolidated financial statements.

In November 2025, the FASB issued ASU No. 2025-09, *Derivatives and Hedging (Topic 815): Hedge Accounting Improvements*. The ASU enables entities to apply hedge accounting to a greater number of highly effective economic hedges in multiple areas. The ASU expands the hedged risks permitted to be aggregated in a group of individual forecasted transactions, enabling entities to apply hedge accounting to potentially broader portfolios of forecasted transactions. The ASU is effective for public business entities for annual reporting periods beginning after December 15, 2026, and interim periods within those annual reporting periods. For all other entities the effective date is for annual reporting periods beginning after December 15, 2027. Early adoption is permitted. The Company is currently evaluating the impact of the ASU on the Company's consolidated financial statements.

In December 2025, the FASB issued ASU No. 2025-11, *Interim Reporting (Topic 270): Narrow-Scope Improvements*. The ASU clarifies the applicability of the interim reporting guidance, the types of interim reporting, and the form and content of interim financial statements in accordance with generally accepted accounting principles. The amendments in this ASU are effective for public business entities for interim periods within annual periods beginning after December 15, 2027. For all other entities, the amendments are effective for interim periods within annual periods beginning after December 15, 2028. Early adoption is permitted. The amendments can be applied either prospectively or retrospectively to any or all prior periods presented in the financial statements. The Company is currently evaluating the impact of the ASU on the Company's consolidated financial statements.

In December 2025, the FASB issued ASU No. 2025-12, *Codification Improvements*. The amendments in this ASU update the FASB Accounting Standards Codification for a broad range of topics arising from technical corrections, unintended application of the Codification, clarifications, and other minor improvements. The amendments in this ASU are effective for all entities for annual periods beginning after December 15, 2026, and interim periods within those annual periods. Early adoption is permitted in both interim and annual periods in which financial statements have not yet been issued or made available for issuance. An entity may elect to adopt the amendments on an issue-by-issue basis. The Company is currently evaluating the impact of the ASU on the Company's consolidated financial statements.

------

**Lincoln Bancorp and Subsidiaries**

**Notes to Consolidated Financial Statements**

**Note 2:&nbsp;&nbsp;&nbsp;&nbsp;Securities**

The amortized cost and approximate fair values, together with gross unrealized gains and losses, of securities are in the following table (Amounts in Thousands):

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** |
| | **Amortized Cost** | **Gross<br>Unrealized<br>Gains** | **Gross<br>Unrealized<br>Losses** | **Fair Value** |
| Debt Securities |  |  |  |  |
| Asset-backed securities | $9077 | $- | $(30) | $9047 |
| Collateralized mortgage obligations | 88807 | 73 | (3274) | 85606 |
| Government-sponsored |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;mortgage-backed securities | 24653 | - | (739) | 23914 |
| State and political subdivisions | 121560 | 1 | (13235) | 108326 |
| U.S. Treasuries | 20632 | - | (158) | 20474 |
| U.S government agencies | - | - | - | - |
| Collateralized debt obligations | 25965 | 214 | (146) | 26033 |
|  | $290694 | $288 | $(17582) | $273400 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** |
| | **Amortized Cost** | **Gross Unrealized<br>Gains** | **Gross Unrealized Losses** | **Fair Value** |
| Debt Securities |  |  |  |  |
| Asset-backed securities | $2386 | $19 | $- | $2405 |
| Collateralized mortgage obligations | 102824 | 154 | (3618) | 99360 |
| Government-sponsored |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;mortgage-backed securities | 49911 | 152 | (5042) | 45021 |
| State and political subdivisions | 168260 | 26 | (22274) | 146012 |
| U.S. Treasuries | 14942 | - | (703) | 14239 |
| U.S government agencies | - | - | - | - |
| Collateralized debt obligations | 22950 | 60 | (138) | 22872 |
|  | $361273 | $411 | $(31775) | $329909 |

---

The amortized cost and estimated fair value of available-for-sale debt securities classified according to their contractual maturities at March 31, 2026 are shown below (Amounts in Thousands):

---

| | | |
|:---|:---|:---|
| | **Amortized<br>Cost** | **Fair<br>Value** |
| U.S. government agencies, treasuries & state and political subdivisions |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Due in one year or less | $335 | $332 |
| &nbsp;&nbsp;&nbsp;&nbsp;Due after one year through five years | 24602 | 24162 |
| &nbsp;&nbsp;&nbsp;&nbsp;Due after five years through ten years | 25322 | 22941 |
| &nbsp;&nbsp;&nbsp;&nbsp;Due over ten years | 91933 | 81365 |
|  | 142192 | 128800 |
| Collateralized mortgage obligations | 88807 | 85606 |
| Government-sponsored mortgage-backed securities | 24653 | 23914 |
| Collateralized debt obligations | 25965 | 26033 |
| Asset-backed securities | 9077 | 9047 |
|  | $290694 | $273400 |

---

Expected maturities will differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties.

------

**Lincoln Bancorp and Subsidiaries**

**Notes to Consolidated Financial Statements**

The carrying value of debt securities pledged as collateral, to secure public deposits and for other purposes, was $102.4 million and $139.8 million at March 31, 2026 and December 31, 2025, respectively.

Gross gains of $0 and $0 and gross losses of approximately $17.7 million and $0 resulting from sales of available-for-sale debt securities were realized for the three months ended 2026 and 2025, respectively.

Certain investments in debt securities are reported in the consolidated financial statements at an amount less than their historical cost. Total fair value of these investments at March 31, 2026 and December 31, 2025, was $247.6 million and $275.1 million, of the Company's available-for-sale debt securities portfolio. These declines primarily resulted from recent changes in market interest rates.

The following table shows the total available-for-sale debt securities and aggregated depreciation by security type:

---

| | | |
|:---|:---|:---|
| | **Number of<br>securities in a<br>loss position** | **Aggregate<br>depreciation** |
| **Available-for-sale Debt Securities** | | |
| Asset-backed securities | 3 | 0.4% |
| Collateralized mortgage obligations | 26 | 4.1% |
| Government-sponsored |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;mortgage-backed securities | 15 | 3.0% |
| State and political subdivisions | 145 | 11.2% |
| U.S. Treasuries | 5 | 0.8% |
| Collateralized debt obligations | 5 | 1.1% |
|  | 199 | 6.6% |

---

The following table shows the Company's investments' gross unrealized losses and fair value of the Company's investments for which an allowance for credit losses has not been recorded, aggregated by investment class and length of time that individual debt securities have been in a continuous unrealized loss position were as follows (Amounts in Thousands):

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** |
| | **Less than 12 Months** | **Less than 12 Months** | **12 Months or More** | **12 Months or More** | **Total** | **Total** |
| | **Fair Value** | **Unrealized<br>Losses** | **Fair Value** | **Unrealized<br>Losses** | **Fair Value** | **Unrealized<br>Losses** |
| **Available-for-Sale Debt Securities** | | | | | | |
| Asset-backed securities | $7046 | $(30) | $- | $- | $7046 | $(30) |
| Collateralized mortgage obligations | 63927 | (682) | 13268 | (2592) | 77195 | (3274) |
| Government-sponsored |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;mortgage-backed securities | 4986 | - | 18897 | (739) | 23883 | (739) |
| State and political subdivisions | - | - | 105435 | (13235) | 105435 | (13235) |
| U.S. Treasuries | 20474 | (158) | - | - | 20474 | (158) |
| U.S. government agencies | - | - | - | - | - | - |
| Collateralized debt obligations | 10652 | (103) | 2917 | (43) | 13569 | (146) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total temporarily impaired securities | $107085 | $(973) | $140517 | $(16609) | $247602 | $(17582) |

---

------

**Lincoln Bancorp and Subsidiaries**

**Notes to Consolidated Financial Statements**

As of March 31, 2026, 15 government-sponsored mortgage-backed securities and 26 collateralized mortgage obligations with unrealized losses totaling $4.0 million were held by the Company. Management evaluated the payment history of these securities and considered the implied U.S. government guarantee of these agency securities and the level of credit enhancement for non-agency securities. Based on this evaluation, management concluded that the decline in fair value was not attributable to credit losses.

As of March 31, 2026, 145 state and political subdivisions securities with total unrealized losses of $13.2 million were held by the Company. Management evaluated these securities through a process that included consideration of credit agency ratings and payment history. In addition, management evaluated securities by considering the yield spread to treasury securities and the most recent financial information available. Based on this evaluation, management concluded that the decline in fair value was not attributable to credit losses.

As of March 31, 2026, 5 U.S. Treasuries and no U.S. government agencies securities with a total unrealized loss of $158 thousand were held by the Company. Management considered the explicit or implied U.S. treasury and U.S. government guarantee of these securities. Based on this evaluation, management concluded that the decline in fair value was not attributable to credit losses.

As of March 31, 2026, 5 collateralized debt obligations with unrealized losses of $146 thousand were held by the Company. Management evaluated these securities through a process that included consideration of credit agency ratings, priority of cash flows and the amount of over-collateralization. In addition, management may evaluate securities by considering the yield spread to treasury securities and the most recent financial information available. Based on this evaluation, management concluded that the decline in fair value was not attributable to credit losses.

As of March 31, 2026, 3 asset-backed securities debt obligations with unrealized losses of $30 thousand were held by the Company. Management considered these student loan floaters securities as they perform well in rates scenarios due to their floating rate coupon. In addition, Management evaluated these securities through a process that included consideration of credit agency ratings and payment history. Based on this evaluation, management concluded that the decline in fair value was not attributable to credit losses.

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** |
| | **Less than 12 Months** | **Less than 12 Months** | **12 Months or More** | **12 Months or More** | **Total** | **Total** |
| | **Fair Value** | **Unrealized<br>Losses** | **Fair Value** | **Unrealized<br>Losses** | **Fair Value** | **Unrealized<br>Losses** |
| **Available-for-Sale Debt Securities** | | | | | | |
| Collateralized mortgage obligations | $36022 | $(222) | $43159 | $(3396) | $79181 | $(3618) |
| Government-sponsored mortgage-backed securities | - | - | 28763 | (5042) | 28763 | (5042) |
| State and political subdivisions | - | - | 138099 | (22274) | 138099 | (22274) |
| U.S. Treasuries | - | - | 14239 | (703) | 14239 | (703) |
| U.S. government agencies |  | - | - | - | - | - |
| Collateralized debt obligations | 14812 | (138) | - | - | 14812 | (138) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total temporarily impaired securities | $50834 | $(360) | $224260 | $(31415) | $275094 | $(31775) |

---

------

**Lincoln Bancorp and Subsidiaries**

**Notes to Consolidated Financial Statements**

Other investments were as follows (Amounts in Thousands):

---

| | | |
|:---|:---|:---|
| | **March 31, 2026** | **December 31, 2025** |
| Federal Home Loan Bank stock | $4451 | $4513 |
| Bankers Bank stock | 1072 | 1072 |
| Investment in Lincoln Bancorp Capital Trust II | 280 | 280 |
| Farmer Mac stock | 240 | 281 |
| Other | 1576 | 1511 |
|  | $7619 | $7657 |

---

**Note 3:&nbsp;&nbsp;&nbsp;&nbsp;Loans and Allowance for Credit Losses**

Classes of loans include (Amounts in Thousands):

---

| | | |
|:---|:---|:---|
| | **March 31, 2026** | **December 31, 2025** |
| Real Estate: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Construction - Land and commercial development | $46936 | $41508 |
| &nbsp;&nbsp;&nbsp;&nbsp;Multi-family | 177647 | 179265 |
| &nbsp;&nbsp;&nbsp;&nbsp;Commercial | 324232 | 327023 |
| &nbsp;&nbsp;&nbsp;&nbsp;1-4 Family include construction | 238372 | 241626 |
| Agricultural and Farmland | 161516 | 164525 |
| Commercial & National credit & SBA/Government guaranteed | 213432 | 209522 |
| Loans to Individuals - Other | 3222 | 3487 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total loans | 1165357 | 1166956 |
| Less: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Net deferred loan fees, premiums and discounts | 662 | 920 |
| &nbsp;&nbsp;&nbsp;&nbsp;Allowance for credit losses | 17964 | 17865 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net loans | $1146731 | $1148171 |

---

The following tables present the balance in the allowance for credit losses and unfunded commitment liability based on portfolio segment for the periods indicated (Amounts in Thousands):

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Three Months Ended March 31, 2026** | **Three Months Ended March 31, 2026** | **Three Months Ended March 31, 2026** | **Three Months Ended March 31, 2026** | **Three Months Ended March 31, 2026** | **Three Months Ended March 31, 2026** | **Three Months Ended March 31, 2026** | **Three Months Ended March 31, 2026** |
| | **Real Estate:<br>Construction -<br>Land** | **Real Estate:<br>Multi-family** | **Real Estate:<br>Commercial** | **Real Estate:<br>1-4 Family /<br>Construction** | **Agricultural<br>and Farmland** | **Commercial<br>National<br>credit &<br>SBA/Gov't<br>guaranteed** | **Loans to<br>Individuals -<br>Other** | **Total** |
| **Allowance for credit losses** | | | | | | | | |
| Beginning balance | $1306 | $945 | $9535 | $2164 | $975 | $2892 | $48 | $17865 |
| &nbsp;&nbsp;&nbsp;&nbsp;Provision (Credit) | (453) | 322 | (919) | 238 | (71) | 1046 | (1) | 162 |
| &nbsp;&nbsp;&nbsp;&nbsp;Charged off | - | - | - | (102) | - | - | (14) | (116) |
| &nbsp;&nbsp;&nbsp;&nbsp;Recoveries | - | 15 | - | - | - | 31 | 7 | 53 |
| Ending balance | $853 | $1282 | $8616 | $2300 | $904 | $3969 | $40 | $17964 |

---

------

**Lincoln Bancorp and Subsidiaries**

**Notes to Consolidated Financial Statements**

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Three Months Ended March 31, 2026** | **Three Months Ended March 31, 2026** | **Three Months Ended March 31, 2026** | **Three Months Ended March 31, 2026** | **Three Months Ended March 31, 2026** | **Three Months Ended March 31, 2026** | **Three Months Ended March 31, 2026** | **Three Months Ended March 31, 2026** |
| | **Real Estate: Construction - Land** | **Real Estate: Multi-family** | **Real Estate: Commercial** | **Real Estate: 1-4 Family / Construction** | **Agricultural and Farmland** | **Commercial, National credit & SBA/Gov't guaranteed** | **Loans to Individuals - Other** | **Total** |
| **Unfunded Commitment Liability** | | | | | | | | |
| Beginning balance | $249 | $1 | $16 | $9 | $1 | $359 | $1 | $636 |
| &nbsp;&nbsp;&nbsp;&nbsp;Provision (Credit) | (60) | - | (3) | 1 | - | 25 | - | (37) |
| Ending balance | $189 | $1 | $13 | $10 | $1 | $384 | $1 | $599 |

---

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Three Months Ended March 31, 2025** | **Three Months Ended March 31, 2025** | **Three Months Ended March 31, 2025** | **Three Months Ended March 31, 2025** | **Three Months Ended March 31, 2025** | **Three Months Ended March 31, 2025** | **Three Months Ended March 31, 2025** | **Three Months Ended March 31, 2025** |
| | **Real Estate:<br>Construction -<br>Land** | **Real Estate:<br>Multi-family** | **Real Estate:<br>Commercial** | **Real Estate:<br>1-4 Family /<br>Construction** | **Agricultural<br>and<br>Farmland** | **Commercial,<br>National<br>credit &<br>SBA/Gov't<br>guaranteed** | **Loans to<br>Individuals -<br>Other** | **Total** |
| **Allowance for credit losses** | | | | | | | | |
| Beginning balance | $1112 | $874 | $6930 | $2470 | $1003 | $3595 | $25 | $16009 |
| &nbsp;&nbsp;&nbsp;&nbsp;Provision (Credit) | (166) | 68 | 467 | (33) | 167 | (231) | 288 | 560 |
| &nbsp;&nbsp;&nbsp;&nbsp;Charged off | - | - | - | (4) | - | (62) | (113) | (179) |
| &nbsp;&nbsp;&nbsp;&nbsp;Recoveries | - | - | - | 2 | - | 74 | 2 | 78 |
| Ending balance | $946 | $942 | $7397 | $2435 | $1170 | $3376 | $202 | $16468 |

---

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Three Months Ended March 31, 2025** | **Three Months Ended March 31, 2025** | **Three Months Ended March 31, 2025** | **Three Months Ended March 31, 2025** | **Three Months Ended March 31, 2025** | **Three Months Ended March 31, 2025** | **Three Months Ended March 31, 2025** | **Three Months Ended March 31, 2025** |
| | **Real Estate:<br>Construction -<br>Land** | **Real Estate:<br>Multi-family** | **Real Estate:<br>Commercial** | **Real Estate:<br>1-4 Family /<br>Construction** | **Agricultural<br>and<br>Farmland** | **Commercial,<br>National<br>credit &<br>SBA/Gov't<br>guaranteed** | **Loans to<br>Individuals -<br>Other** | **Total** |
| **Unfunded Commitment Liability** | | | | | | | | |
| Beginning balance | $21 | $1 | $4 | $12 | $1 | $96 | $1 | $136 |
| &nbsp;&nbsp;&nbsp;&nbsp;Provision (Credit) | 300 | - | 11 | - | - | 38 | 1 | 350 |
| Ending balance | $321 | $1 | $15 | $12 | $1 | $134 | $2 | $486 |

---

***Internal Risk Categories***

Loan grades are numbered 1 through 9. Grades 1 through 6 are considered satisfactory grades. The grade of 7, or Watch, represents loans of lower quality and is considered criticized. The grades of 8, or Substandard, and 9, or Doubtful, refer to assets that are classified. The use and application of these grades by the Company will be uniform and shall conform to the Company's policy.

**Pass (1-6)** Loans in this category have enough cash flow from operations to service all obligations. They exhibit good financial strength, and collateral protection is viewed as an adequate secondary source of repayment and guarantor support a tertiary repayment source.

**Watch (7)** Loans in this category are generally adequately collateralized, but the financial performance of the borrower has shown a downturn and needs to improve in order to generate sufficient cash flow for overall performance. Loans in this category will remain at this rating for a limited time (12 – 24 months maximum) as the performance needs to improve or the loan will be downgraded to a "8" or substandard rating.

**Substandard (8)** Loans with inadequate financial condition not meeting our Company's credit standards and/or ability to meet scheduled payments. Loss is possible. Loans in this category will be transferred to nonaccrual status with interest charged off if past due 90 days or more, unless well secured and in the process of collection.

------

**Lincoln Bancorp and Subsidiaries**

**Notes to Consolidated Financial Statements**

**Doubtful (9)** Loans with a weak financial condition making collection in full improbable. The possibility of principal loss is high but because of certain important and reasonably specific pending factors, full charge-off is deferred until more exact status can be determined. A partial charge-off of principal may occur to more clearly exhibit the true value of the asset. Loans in this category are on nonaccrual status and interest charged off.

Risk characteristics applicable to each segment of the loan portfolio are described as follows.

**Construction – Land and Commercial Development**–The Company provides financing for both horizontal (land development) and vertical (construction) financing, with a primary focus within our identified lending footprint. Land development financing is broad in scope, serving both commercial and residential developers. The loan policy outlines the underwriting criteria for each of these areas. These loans are generally structured with variable rates based on the Prime interest rate with loan maturities driven by the project scope, generally 12 – 18 months. Guarantor financial strength and liquidity play a vital role in underwriting these credits as collateral liquidation is generally the primary source of repayment.

**Multi-family Real Estate**-The company provides many types of multifamily real estate financing, ranging from smaller properties to larger multi building complexes, as well as standard multifamily to more urban mixed use properties. Underwriting guidelines for these loans are laid out in the loan policy, with available market data including vacancy and absorption rates used in the analysis. Project economics are stressed to ensure their ability to withstand changes in rents, expenses, and occupancy. Loan amortizations for multifamily properties range from 20 – 30 years depending on the age of the property. Interest rates for these types of properties are predominantly adjustable, with the initial fixed rate periods generally not exceeding five years.

**Commercial Real Estate**-The Company focuses on both owner and non-owner occupied commercial real estate properties. Property types included within this segment would consist of industrial, warehouse, flex, and office for example. Underwriting guidelines for these loans are documented in the loan policy. Market data, vacancy rates, lease rates and duration are some of the items used within the analysis. Loan amortizations for commercial real estate properties are generally 20 years, with adjustable interest rates.

For commercial real estate loans, the Approval is generally based on the following factors:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Sufficient cash flow to support debt repayment

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Lease terms that match or exceed the term of the loan

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Positive earnings and financial trends

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Reasonable expense rate assumptions

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Financial strength of the history of the tenants

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Value and marketability of collateral

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Financial strength and liquidity of the guarantors and sponsors

**1-4 Family Real Estate including Construction**-The Company provides many types of loans involving the purchase or refinance of real property including consumer mortgages, home construction, home improvement and small lines of credit. The loan policy addresses specific credit guidelines for each type. Many of the consumer real estate loans underwritten by the Company, other than home equity lines of credit (HELOC), conform to the underwriting requirements of Fannie Mae or other secondary market aggregators to allow the Company to resell loans in the secondary market. The Company structures most loans that will not conform to those underwriting requirements as adjustable rate mortgages that mature or adjust in one to five years, and then retains these loans in the Bank's portfolio. Servicing rights are generally not retained on the residential real estate loans sold in the secondary market except for select loans sold to the Federal Home Loan Bank MPF program. The loan policy establishes minimum appraisal and other credit guidelines. HELOC loans are included in consumer real estate loans and total $24.7 million and $24.8 million at March 31, 2026 and December 31, 2025, respectively.

------

**Lincoln Bancorp and Subsidiaries**

**Notes to Consolidated Financial Statements**

**Agricultural and Farmland**-Agricultural and agricultural real estate loans are subject to underwriting standards and processes similar to commercial loans. The Company provides a wide range of agricultural loans, including lines of credit for working capital and operational purposes, and term loans for the acquisition of real estate, facilities, equipment and other purposes. Approval is generally based on the following factors:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Sufficient cash flow to support debt repayment

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Ability and stability of current management of the borrower

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Positive earnings and financial trends

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Earnings projections based on reasonable assumptions

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Financial strength of the industry and business

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Value and marketability of collateral

Collateral for agricultural loans generally includes accounts receivable, inventory (typically grain or livestock) and equipment. Collateral for agricultural real estate loans is generally real estate and improvements. The loan policy specifies approved collateral types and corresponding maximum advance percentages. The value of collateral pledged on loans typically exceeds the loan amount by a margin sufficient to absorb potential erosion of its value in the event of foreclosure and cover the loan amount plus costs incurred to convert it to cash.

The loan policy specifies maximum term limits for agricultural loans. For agricultural real estate term loans, the maximum amortization is 30 years. The loan policy includes guidelines for real estate appraisals, including minimum appraisal standards based on certain transactions. Where the purpose of the loan is to finance depreciable equipment, the term loan generally does not exceed the estimated useful life of the asset. For lines of credit, the typical maximum term is 365 days. However, longer maturities may be approved if the loan is secured by readily marketable collateral or if collateral margin is so abundant that risk is sufficiently mitigated. In addition, the Company often takes personal guarantees to help assure repayment. Loans may be made on an unsecured basis if warranted by the overall financial condition of the borrower.

**Commercial, Shared National Credits, & SBA/Government Guaranteed**–For commercial loans, the Company focuses on small and mid-sized businesses with primary operations in transportation, warehousing and manufacturing, as well as service industry companies such as retailers and hospitality.

Collateral for commercial loans generally includes accounts receivable, inventory and equipment. The loan policy specifies approved collateral types and corresponding maximum advance percentages. The value of collateral pledged on loans typically exceeds the loan amount by a margin sufficient to absorb potential erosion of its value in the event of foreclosure and cover the loan amount plus costs incurred to convert it to cash.

The loan policy specifies maximum term limits for commercial loans. For commercial non-real estate term loans, the maximum term is 7 years. Where the purpose of the loan is to finance depreciable equipment, the term loan generally does not exceed the estimated useful life of the asset. For lines of credit, the typical maximum term is 365 days. Longer maturities may be approved if the loan is secured by readily marketable collateral.

In addition, the Company as a matter of policy takes personal guarantees to help assure repayment. Loans may be made on an unsecured basis if warranted by the overall financial condition of the borrower.

In some instances, for all loans, it may be appropriate to originate or purchase loans that are exceptions to the guidelines and limits established within the loan policy described above and below. In general, exceptions to the loan policy do not significantly deviate from the guidelines and limits established within the loan policy and, if there are exceptions, they are clearly noted as such, specifically identified in loan approval documents, and tracked for reporting purposes.

The Company also engages with the shared national credit market or leverage loan market under the advisement of a third-party asset manager. A specific Leveraged Lending Policy is established with a series of guidelines,

------

**Lincoln Bancorp and Subsidiaries**

**Notes to Consolidated Financial Statements**

thresholds, and parameters to guide the bank's activities in the origination and management of Leveraged Loans and risk management associated with the Leveraged Loan portfolio. The Company acquires direct assignment interests in leveraged loans only on a safe, sound, and collectible basis where current and accurate financial information on the borrower indicates a reasonable expectation the borrower has the financial ability to service and repay the debt in compliance with applicable laws, regulations, and bank policies.

**Loans to Individuals**-The Company provides many types of consumer and other loans including motor vehicle, signature loans and small personal credit lines. The loan policy addresses specific credit guidelines by consumer loan type.

For consumer real estate loans, and consumer and other loans, these large groups of smaller balance homogenous loans are collectively evaluated for impairment. The Company applies a quantitative factor based on historical charge-off experience in total for each of these segments. Accordingly, the Company generally does not separately identify individual consumer real estate loans, and/or consumer and other loans for impairment disclosures, unless such loans are the subject of a restructuring agreement due to financial difficulties of the borrower.

The following tables present the credit risk profile of the Company's loan portfolio based on internal rating category and payment activity for the periods indicated (Amounts in Thousands):

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** |
| | **Year of Origination** | **Year of Origination** | **Year of Origination** | **Year of Origination** | **Year of Origination** | **Year of Origination** | |
| | **2026** | **2025** | **2024** | **2023** | **2022** | **Prior** |<br>**Total** |
| **Real Estate: Construction - Land** |  |  |  |  |  |  |  |
| Risk rating |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Pass | $2476 | $11814 | $12831 | $1061 | $12272 | $3175 | $43629 |
| &nbsp;&nbsp;&nbsp;&nbsp;Watch | - | - | - | - | - | - | - |
| &nbsp;&nbsp;&nbsp;&nbsp;Substandard | - | - | - | - | 1613 | 1694 | 3307 |
| &nbsp;&nbsp;&nbsp;&nbsp;Doubtful | - | - | - | - | - | - | - |
| Total Real Estate: Construction - Land | $2476 | $11814 | $12831 | $1061 | $13885 | $4869 | $46936 |
| Real Estate: Construction - Land |  |  |  |  |  |  |  |
| Year-to-date current period gross write offs | $- | $- | $- | $- | $- | $- | $- |

---

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Year of Origination** | **Year of Origination** | **Year of Origination** | **Year of Origination** | **Year of Origination** | **Year of Origination** | |
| | **2026** | **2025** | **2024** | **2023** | **2022** | **Prior** |<br>**Total** |
| **Real Estate: Multi-family** |  |  |  |  |  |  |  |
| Risk rating |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Pass | $131 | $- | $12230 | $469 | $44468 | $86146 | $143444 |
| &nbsp;&nbsp;&nbsp;&nbsp;Watch | - | - | - | - | 2756 | 25608 | 28364 |
| &nbsp;&nbsp;&nbsp;&nbsp;Substandard | - | - | - | - | - | 5839 | 5839 |
| &nbsp;&nbsp;&nbsp;&nbsp;Doubtful | - | - | - | - | - | - | - |
| Total Real Estate: Multi-family | $131 | $- | $12230 | $469 | $47224 | $117593 | $177647 |
| Real Estate: Multi-family |  |  |  |  |  |  |  |
| Year-to-date current period gross write offs | $- | $- | $- | $- | $- | $- | $- |

---

------

**Lincoln Bancorp and Subsidiaries**

**Notes to Consolidated Financial Statements**

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Year of Origination** | **Year of Origination** | **Year of Origination** | **Year of Origination** | **Year of Origination** | **Year of Origination** | |
| | **2026** | **2025** | **2024** | **2023** | **2022** | **Prior** |<br>**Total** |
| **Real Estate: Commercial** |  |  |  |  |  |  |  |
| Risk rating |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Pass | $1106 | $11460 | $6048 | $17802 | $92511 | $150180 | $279107 |
| &nbsp;&nbsp;&nbsp;&nbsp;Watch | - | - | - | 1 | 1899 | 5037 | 6937 |
| &nbsp;&nbsp;&nbsp;&nbsp;Substandard | - | - | - | 1778 | 5952 | 30458 | 38188 |
| &nbsp;&nbsp;&nbsp;&nbsp;Doubtful | - | - | - | - | - | - | - |
| Total Real Estate: Commercial | $1106 | $11460 | $6048 | $19581 | $100362 | $185675 | $324232 |
| Real Estate: Commercial |  |  |  |  |  |  |  |
| Year-to-date current period gross write offs | $- | $- | $- | $- | $- | $- | $- |

---

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Year of Origination** | **Year of Origination** | **Year of Origination** | **Year of Origination** | **Year of Origination** | **Year of Origination** | |
| | **2026** | **2025** | **2024** | **2023** | **2022** | **Prior** |<br>**Total** |
| **Agricultural and Farmland** |  |  |  |  |  |  |  |
| Risk rating |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Pass | $10390 | $16755 | $14210 | $10846 | $26239 | $83065 | $161505 |
| &nbsp;&nbsp;&nbsp;&nbsp;Watch | - | - | - | - | - | 11 | 11 |
| &nbsp;&nbsp;&nbsp;&nbsp;Substandard | - | - | - | - | - | - | - |
| &nbsp;&nbsp;&nbsp;&nbsp;Doubtful | - | - | - | - | - | - | - |
| Total Agricultural and Farmland | $10390 | $16755 | $14210 | $10846 | $26239 | $83076 | $161516 |
| Agricultural and Farmland |  |  |  |  |  |  |  |
| Year-to-date current period gross write offs | $- | $- | $- | $- | $- | $- | $- |

---

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Year of Origination** | **Year of Origination** | **Year of Origination** | **Year of Origination** | **Year of Origination** | **Year of Origination** | |
| | **2026** | **2025** | **2024** | **2023** | **2022** | **Prior** |<br>**Total** |
| **Commercial, National credit & SBA/Gov't guaranteed** |  |  |  |  |  |  |  |
| Risk rating |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Pass | $3862 | $48157 | $48223 | $28447 | $31537 | $37710 | $197936 |
| &nbsp;&nbsp;&nbsp;&nbsp;Watch | - | 712 | 257 | 1228 | 925 | 754 | 3876 |
| &nbsp;&nbsp;&nbsp;&nbsp;Substandard | - | 794 | 478 | 3469 | 4179 | 1952 | 10872 |
| &nbsp;&nbsp;&nbsp;&nbsp;Doubtful | - | - | - | 748 | - | - | 748 |
| Total Commercial, National credit & SBA/ Gov't guaranteed | $3862 | $49663 | $48958 | $33892 | $36641 | $40416 | $213432 |
| Commercial, National credit & SBA/Gov't guaranteed |  |  |  |  |  |  |  |
| Year-to-date current period gross write offs | $- | $- | $- | $- | $- | $- | $- |

---

------

**Lincoln Bancorp and Subsidiaries**

**Notes to Consolidated Financial Statements**

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| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Year of Origination** | **Year of Origination** | **Year of Origination** | **Year of Origination** | **Year of Origination** | **Year of Origination** | |
| | **2026** | **2025** | **2024** | **2023** | **2022** | **Prior** |<br>**Total** |
| **Real Estate: 1-4 Family / Construction** |  |  |  |  |  |  |  |
| Payment performance |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Performing | $11007 | $21697 | $34256 | $27145 | $78301 | $64794 | $237200 |
| &nbsp;&nbsp;&nbsp;&nbsp;Nonperforming | - | 215 | - | - | 593 | 364 | 1172 |
| Total Real Estate: 1-4 Family / Construction | $11007 | $21912 | $34256 | $27145 | $78894 | $65158 | $238372 |
| Real Estate: 1-4 Family / Construction |  |  |  |  |  |  |  |
| Year-to-date current period gross write offs | $- | $- | $102 | $- | $- | $- | $102 |

---

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Year of Origination** | **Year of Origination** | **Year of Origination** | **Year of Origination** | **Year of Origination** | **Year of Origination** | |
| | **2026** | **2025** | **2024** | **2023** | **2022** | **Prior** |<br>**Total** |
| **Loans to Individuals - Other** |  |  |  |  |  |  |  |
| Payment performance |  |  |  |  |  |  |  |
| Performing | $523 | $745 | $540 | $472 | $332 | $599 | $3211 |
| Nonperforming | - | - | - | 2 | 9 | - | 11 |
| Total Loans to Individuals - Other | $523 | $745 | $540 | $474 | $341 | $599 | $3222 |
| Loans to Individuals - Other |  |  |  |  |  |  |  |
| Year-to-date current period gross write offs | $14 | $- | $- | $- | $- | $- | $14 |

---

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** |
| | **Year of Origination** | **Year of Origination** | **Year of Origination** | **Year of Origination** | **Year of Origination** | **Year of Origination** | |
| | **2026** | **2025** | **2024** | **2023** | **2022** | **Prior** |<br>**Total** |
| **All Loan Segments** |  |  |  |  |  |  |  |
| Risk rating |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pass | $17966 | $88186 | $93543 | $58624 | $207028 | $360274 | $825621 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Watch | - | 711 | 257 | 1228 | 5580 | 31412 | 39188 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Substandard | - | 794 | 478 | 5248 | 11743 | 39943 | 58206 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Doubtful | - | - | - | 748 | - | - | 748 |
|  | $17966 | $89691 | $94278 | $65848 | $224351 | $431629 | $923763 |
| Payment performance |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Performing | $11529 | $22443 | $34796 | $27617 | $78633 | $65393 | $240411 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Nonperforming | - | 214 | - | 2 | 602 | 365 | 1183 |
|  | $11529 | $22657 | $34796 | $27619 | $79235 | $65758 | $241594 |
| Total Loans by Year of Origination | $29495 | $112348 | $129074 | $93467 | $303586 | $497387 | $1165357 |

---

------

**Lincoln Bancorp and Subsidiaries**

**Notes to Consolidated Financial Statements**

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** |
| | **Year of Origination** | **Year of Origination** | **Year of Origination** | **Year of Origination** | **Year of Origination** | **Year of Origination** | |
| | **2025** | **2024** | **2023** | **2022** | **2021** | **Prior** |<br>**Total** |
| **Real Estate: Construction - Land** |  |  |  |  |  |  |  |
| Risk rating |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Pass | $8455 | $12851 | $1072 | $12619 | $162 | $3060 | $38219 |
| &nbsp;&nbsp;&nbsp;&nbsp;Watch | - | - | - | - | - | - | - |
| &nbsp;&nbsp;&nbsp;&nbsp;Substandard | - | - | - | 1595 | - | 1694 | 3289 |
| &nbsp;&nbsp;&nbsp;&nbsp;Doubtful | - | - | - | - | - | - | - |
| Total Real Estate: Construction - Land | $8455 | $12851 | $1072 | $14214 | $162 | $4754 | $41508 |
| Real Estate: Construction - Land |  |  |  |  |  |  |  |
| Year-to-date current period gross write offs | $- | $- | $- | $- | $- | $- | $- |

---

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Year of Origination** | **Year of Origination** | **Year of Origination** | **Year of Origination** | **Year of Origination** | **Year of Origination** | |
| | **2025** | **2024** | **2023** | **2022** | **2021** | **Prior** |<br>**Total** |
| **Real Estate: Multi-family** |  |  |  |  |  |  |  |
| Risk rating |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Pass | $- | $12249 | $474 | $44719 | $65618 | $21645 | $144705 |
| &nbsp;&nbsp;&nbsp;&nbsp;Watch | - | - | - | 2776 | 8371 | 17429 | 28576 |
| &nbsp;&nbsp;&nbsp;&nbsp;Substandard | - | - | - | - | 5839 | 145 | 5984 |
| &nbsp;&nbsp;&nbsp;&nbsp;Doubtful | - | - | - | - | - | - | - |
| Total Real Estate: Multi-family | $- | $12249 | $474 | $47495 | $79828 | $39219 | $179265 |
| Real Estate: Multi-family |  |  |  |  |  |  |  |
| Year-to-date current period gross write offs | $- | $- | $- | $- | $- | $- | $- |

---

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Year of Origination** | **Year of Origination** | **Year of Origination** | **Year of Origination** | **Year of Origination** | **Year of Origination** | |
| | **2025** | **2024** | **2023** | **2022** | **2021** | **Prior** |<br>**Total** |
| **Real Estate: Commercial** |  |  |  |  |  |  |  |
| Risk rating |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Pass | $10911 | $5856 | $18107 | $94323 | $62365 | $82390 | $273952 |
| &nbsp;&nbsp;&nbsp;&nbsp;Watch | - | - | - | 3427 | 3003 | 11622 | 18052 |
| &nbsp;&nbsp;&nbsp;&nbsp;Substandard | - | - | 1818 | 4527 | 18610 | 10064 | 35019 |
| &nbsp;&nbsp;&nbsp;&nbsp;Doubtful | - | - | - | - | - | - | - |
| Total Real Estate: Commercial | $10911 | $5856 | $19925 | $102277 | $83978 | $104076 | $327023 |
| Real Estate: Commercial |  |  |  |  |  |  |  |
| Year-to-date current period gross write offs | $- | $- | $- | $- | $- | $- | $- |

---

------

**Lincoln Bancorp and Subsidiaries**

**Notes to Consolidated Financial Statements**

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Year of Origination** | **Year of Origination** | **Year of Origination** | **Year of Origination** | **Year of Origination** | **Year of Origination** | |
| | **2025** | **2024** | **2023** | **2022** | **2021** | **Prior** |<br>**Total** |
| **Agricultural and Farmland** |  |  |  |  |  |  |  |
| Risk rating |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Pass | $20532 | $15388 | $13674 | $27318 | $23237 | $64361 | $164510 |
| &nbsp;&nbsp;&nbsp;&nbsp;Watch | - | - | - | - | - | 15 | 15 |
| &nbsp;&nbsp;&nbsp;&nbsp;Substandard | - | - | - | - | - | - | - |
| &nbsp;&nbsp;&nbsp;&nbsp;Doubtful | - | - | - | - | - | - | - |
| Total Agricultural and Farmland | $20532 | $15388 | $13674 | $27318 | $23237 | $64376 | $164525 |
| Agricultural and Farmland |  |  |  |  |  |  |  |
| Year-to-date current period gross write offs | $- | $- | $- | $- | $- | $- | $- |

---

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Year of Origination** | **Year of Origination** | **Year of Origination** | **Year of Origination** | **Year of Origination** | **Year of Origination** | |
| | **2025** | **2024** | **2023** | **2022** | **2021** | **Prior** |<br>**Total** |
| **Commercial, National credit & SBA/Gov't guaranteed** |  |  |  |  |  |  |  |
| Risk rating |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Pass | $42410 | $48095 | $32596 | $33304 | $9344 | $29515 | $195264 |
| &nbsp;&nbsp;&nbsp;&nbsp;Watch | 1471 | 521 | 2510 | 1162 | 485 | 987 | 7136 |
| &nbsp;&nbsp;&nbsp;&nbsp;Substandard | - | 151 | 2227 | 2922 | 137 | 938 | 6375 |
| &nbsp;&nbsp;&nbsp;&nbsp;Doubtful | - | - | 746 | - | - | 1 | 747 |
| Total Commercial, National credit & SBA/ Gov't guaranteed | $43881 | $48767 | $38079 | $37388 | $9966 | $31441 | $209522 |
| Commercial, National credit & SBA/Gov't guaranteed |  |  |  |  |  |  |  |
| Year-to-date current period gross write offs | $- | $- | $- | $62 | $816 | $- | $878 |

---

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Year of Origination** | **Year of Origination** | **Year of Origination** | **Year of Origination** | **Year of Origination** | **Year of Origination** | |
| | **2025** | **2024** | **2023** | **2022** | **2021** | **Prior** |<br>**Total** |
| **Real Estate: 1-4 Family / Construction** |  |  |  |  |  |  |  |
| Payment performance |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Performing | $22063 | $39841 | $28828 | $80395 | $18732 | $50603 | $240462 |
| &nbsp;&nbsp;&nbsp;&nbsp;Nonperforming | 214 | 334 | - | 170 | 57 | 389 | 1164 |
| Total Real Estate: 1-4 Family / Construction | $22277 | $40175 | $28828 | $80565 | $18789 | $50992 | $241626 |
| Real Estate: 1-4 Family / Construction |  |  |  |  |  |  |  |
| Year-to-date current period gross write offs | $- | $- | $- | $- | $- | $4 | $4 |

---

------

**Lincoln Bancorp and Subsidiaries**

**Notes to Consolidated Financial Statements**

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Year of Origination** | **Year of Origination** | **Year of Origination** | **Year of Origination** | **Year of Origination** | **Year of Origination** | |
| | **2025** | **2024** | **2023** | **2022** | **2021** | **Prior** |<br>**Total** |
| **Loans to Individuals - Other** |  |  |  |  |  |  |  |
| Payment performance |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Performing | $1130 | $774 | $533 | $374 | $55 | $610 | $3476 |
| &nbsp;&nbsp;&nbsp;&nbsp;Nonperforming | - | - | 2 | 9 | - | - | 11 |
| Total Loans to Individuals - Other | $1130 | $774 | $535 | $383 | $55 | $610 | $3487 |
| Loans to Individuals - Other |  |  |  |  |  |  |  |
| Year-to-date current period gross write offs | $530 | $- | $5 | $2 | $1 | $2 | $540 |

---

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Year of Origination** | **Year of Origination** | **Year of Origination** | **Year of Origination** | **Year of Origination** | **Year of Origination** | |
| | **2025** | **2024** | **2023** | **2022** | **2021** | **Prior** |<br>**Total** |
| **All Loan Segments** |  |  |  |  |  |  |  |
| Risk rating |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Pass | $82308 | $94439 | $65923 | $212283 | $160726 | $200971 | $816650 |
| &nbsp;&nbsp;&nbsp;&nbsp;Watch | 1471 | 521 | 2510 | 7365 | 11859 | 30053 | 53779 |
| &nbsp;&nbsp;&nbsp;&nbsp;Substandard | - | 151 | 4045 | 9044 | 24586 | 12841 | 50667 |
| &nbsp;&nbsp;&nbsp;&nbsp;Doubtful | - | - | 746 | - | - | 1 | 747 |
|  | $83779 | $95111 | $73224 | $228692 | $197171 | $243866 | $921843 |
| Payment performance |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Performing | $23193 | $40615 | $29361 | $80769 | $18787 | $51213 | $243938 |
| &nbsp;&nbsp;&nbsp;&nbsp;Nonperforming | 214 | 334 | 2 | 179 | 57 | 389 | 1175 |
|  | $23407 | $40949 | $29363 | $80948 | $18844 | $51602 | $245113 |
| Total Loans by Year of Origination | $107186 | $136060 | $102587 | $309640 | $216015 | $295468 | $1166956 |

---

Performing loans are those which are accruing and less than 90 days past due. Nonperforming loans are those on nonaccrual, accruing loans that are greater than or equal to 90 days past due, and those with modifications for borrowers experiencing financial difficulties.

The Company evaluates the loan risk grading system definitions and allowance for credit loss methodology on an ongoing basis.

------

**Lincoln Bancorp and Subsidiaries**

**Notes to Consolidated Financial Statements**

The following tables present the Company's loan portfolio aging analysis of the recorded investment in loans for the periods indicated (Amounts in Thousands):

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** |
| | **30-59 Days<br>Past Due** | **60-89 Days<br>Past Due** | **Total Loans<br>> 90 Days &<br>Accruing** | **Total Past<br>Due** | **Nonaccrual<br>with<br>Allowance<br>for Credit<br>Loss** | **Nonaccrual<br>With No<br>Allowance for<br>Credit Loss** | **Current** | **Total Loans<br>Receivable** |
| Real Estate: Construction - Land | $- | $- | $- | $- | $- | $3307 | $43629 | $46936 |
| Real Estate: Multi-family | 164 | - | - | 164 | 5839 | - | 171644 | 177647 |
| Real Estate: Commercial | 975 | - | 3400 | 4375 | 23401 | 2322 | 294134 | 324232 |
| Real Estate: 1-4 Family / Construction | 3570 | 718 | 40 | 4328 | 316 | 856 | 232872 | 238372 |
| Agricultural and Farmland | 11 | - | - | 11 | - | - | 161505 | 161516 |
| Commercial, National credit & SBA/Gov't guaranteed | 749 | 1774 | - | 2523 | 3944 | 3278 | 203687 | 213432 |
| Loans to Individuals - Other | - | - | - | - | 11 | - | 3211 | 3222 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total | $5469 | $2492 | $3440 | $11401 | $33511 | $9763 | $1110682 | $1165357 |

---

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** |
| | **30-59 Days<br>Past Due** | **60-89 Days<br>Past Due** | **Total Loans<br>> 90 Days<br>& Accruing** | **Total Past<br>Due** | **Nonaccrual<br>with<br>Allowance<br>for Credit<br>Loss** | **Nonaccrual<br>With No<br>Allowance for<br>Credit Loss** | **Current** | **Total Loans<br>Receivable** |
| Real Estate: Construction - Land | $- | $- | $- | $- | $1595 | $1694 | $38219 | $41508 |
| Real Estate: Multi-family | - | - | - | - | - | 145 | 179120 | 179265 |
| Real Estate: Commercial | - | - | - | - | 16865 | 8654 | 301504 | 327023 |
| Real Estate: 1-4 Family / Construction | 635 | 1446 | 32 | 2113 | 316 | 816 | 238381 | 241626 |
| Agricultural and Farmland | - | - | - | - | - | - | 164525 | 164525 |
| Commercial, National credit & SBA/Gov't guaranteed | 939 | 843 | - | 1782 | 2829 | 3542 | 201369 | 209522 |
| Loans to Individuals - Other | 1 | - | - | 1 | 11 | - | 3475 | 3487 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total | $1575 | $2289 | $32 | $3896 | $21616 | $14851 | $1126593 | $1166956 |

---

------

**Lincoln Bancorp and Subsidiaries**

**Notes to Consolidated Financial Statements**

The following table presents the amortized cost basis of collateral dependent loans by class of loans for the periods indicated (Amounts in Thousands):

---

| | | | |
|:---|:---|:---|:---|
| | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** |
| | **Real<br>Estate** | **Equipment** | **Total** |
| Real Estate: Construction - Land | $3307 | $- | $3307 |
| Real Estate: Multi-family | 8071 | - | 8071 |
| Real Estate: Commercial | 2756 | - | 2756 |
| Real Estate: 1-4 Family / Construction | 4993 | 895 | 5888 |
| Commercial, National credit & SBA/Gov't guaranteed | 4901 | 4352 | 9253 |
| Loans to Individuals - Other | - | - | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total | $24028 | $5247 | $29275 |

---

---

| | | | |
|:---|:---|:---|:---|
| | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** |
| | **Real<br>Estate** | **Equipment** | **Total** |
| Real Estate: Construction - Land | $3289 | $- | $3289 |
| Real Estate: Multi-family | 212 | - | 212 |
| Real Estate: Commercial | 4359 | - | 4359 |
| Real Estate: 1-4 Family / Construction | 4976 | 895 | 5871 |
| Commercial, National credit & SBA/Gov't guaranteed | 3958 | 3308 | 7266 |
| Loans to Individuals - Other | - | - | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total | $16794 | $4203 | $20997 |

---

The following table presents the amortized cost basis of loans for the periods indicated that were both experiencing financial difficulty and modified during the respective periods, by class and by type of modification (Amounts in Thousands):

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** |
| | **Interest<br>Only<br>Payment<br>Extension** | **Payment<br>Delay** | **Term<br>Extension** | **Total Class of<br>Financing<br>Receivable** |
| Real Estate: Multifamily | $- | $- | $- | $- |
| Real Estate: 1-4 Family / Construction | - | - | - | - |
| Commercial, National credit & SBA/Gov't guaranteed | - | - | - | - |
| &nbsp;&nbsp;&nbsp;&nbsp;Total | $- | $- | $- | $- |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** |
| | **Interest<br>Only<br>Payment<br>Extension** | **Payment<br>Delay** | **Term<br>Extension** | **Total Class of<br>Financing<br>Receivable** |
| Real Estate: Multifamily | $- | $- | $- | $- |
| Real Estate: 1-4 Family / Construction | 1725 | 170 | 1279 | 3174 |
| Commercial, National credit & SBA/Gov't guaranteed | 573 | - | 1317 | 1890 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total | $2298 | $170 | $2596 | $5064 |

---

------

**Lincoln Bancorp and Subsidiaries**

**Notes to Consolidated Financial Statements**

The following tables describes the financial effect of the modifications made to borrowers experiencing financial difficulty of loans for the periods indicated (Amounts in Thousands):

---

| | |
|:---|:---|
| | **March 31, 2026** |
| | **Weighted - Average Term Extension (in years)** |
| Real Estate: Multifamily | - |
| Real Estate: 1-4 Family / Construction | - |
| Commercial, National credit & SBA/Gov't guaranteed | - |

---

---

| | |
|:---|:---|
| | **December 31, 2025** |
| | **Weighted - Average Term Extension (in years)** |
| Real Estate: Multifamily | - |
| Real Estate: 1-4 Family / Construction | 0.30 |
| Commercial, National credit & SBA/Gov't guaranteed | 0.92 |

---

Upon the Company's determination that a modified loan (or portion of a loan) has subsequently been deemed uncollectible, the loan (or a portion of the loan) is written off. Therefore, the amortized cost basis of the loan is reduced by the uncollectible amount and the allowance for credit losses is adjusted by the same amount.

The following table provides the amortized cost basis of loans that experienced a payment default during the period and were modified in the 12 months before default to borrowers experiencing financial difficulty for the periods indicated (Amounts in Thousands):

---

| | | | |
|:---|:---|:---|:---|
| | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** |
| | **Interest Only<br>Payment Extension** | **Payment Delay** | **Term Extension** |
| Commercial, National credit & SBA/Gov't guaranteed | $- | $- | $- |
|  | $- | $- | $- |

---

---

| | | | |
|:---|:---|:---|:---|
| | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** |
| | **Interest Only<br>Payment Extension** | **Payment Delay** | **Term Extension** |
| Commercial, National credit & SBA/Gov't guaranteed | $315 | $- | $- |
|  | $315 | $- | $- |

---

The Company closely monitors the performance of the loans that are modified to borrowers experiencing financial difficulty to understand the effectiveness of its modification efforts. The following table depicts the performance of loans that have been modified in the last 12 months for the periods indicated (Amounts in Thousands):

---

| | | | |
|:---|:---|:---|:---|
| | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** |
| | **Current** | **30-89 Days Past Due** | **90+ Days Past Due** |
| Real Estate: Multifamily | $- | $- | $- |
| Real Estate: 1-4 Family / Construction | 2744 | - | - |
| Commercial, National credit & SBA/Gov't guaranteed | 253 | - | - |
|  | $2997 | $- | $- |

---

------

**Lincoln Bancorp and Subsidiaries**

**Notes to Consolidated Financial Statements**

---

| | | | |
|:---|:---|:---|:---|
| | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** |
| | **Current** | **30-89 Days Past Due** | **90+ Days Past Due** |
| Real Estate: Multifamily | $- | $- | $- |
| Real Estate: 1-4 Family / Construction | 3174 | - | - |
| Commercial, National credit & SBA/Gov't guaranteed | 1575 | 315 | - |
|  | $4749 | $315 | $- |

---

Loans serviced for others include certain USDA and SBA commercial loans and other commercial loan participations, as well as certain consumer real estate loans. Loans sold and serviced for others totaled $151 million and $174.1 million at March 31, 2026 and December 31, 2025, respectively. These amounts are not included in the accompanying consolidated balance sheet.

In the course of conducting the bank activities of originating SBA loans and selling those loans in the secondary market, various representations and warranties are made to the purchasers of the SBA loans. Under the representations and warranties, failure by the Company to comply with the underwriting standards and eligibility requirements could result in the Company being required to repurchase the SBA loan or to reimburse the investor for losses incurred (i.e. make whole requests) if such failure cannot be cured by the Company within the specified period following discovery. During the quarter ended March 31, 2026 and the year ended December 31, 2025, no SBA loans were repurchased as a result of underwriting standard exceptions.

At March 31, 2026 and December 31, 2025, the Company had reserved $1,276,800 and $1,290,800, respectively, for probable losses from representation and warranty obligations. The reserve is included in other liabilities and is based on the Company's repurchase and loss trends, and quantitative and qualitative factors that may result in anticipated losses different than historical loss trends, including loan vintage, underwriting characteristics and macroeconomic trends.

At March 31, 2026 and December 31, 2025, the Company had six consumer loans totaling $612,293 and five consumer loans totaling $517,062 in the process of foreclosure, respectively.

At March 31, 2026 and December 31, 2025, the Company had no 1-4 Family real estate properties in Other Real Estate.

The following table presents information regarding participation loans purchased and sold during the three months ended March 31, 2026 and year ended December 31, 2025 (Amounts in Thousands):

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** |
| | **Real Estate:<br>Construction<br>- Land** | **Real Estate:<br>Multi-family** | **Real Estate:<br>Commercial** | **Real Estate:<br>1-4 Family /<br>Construction** | **Agricultural<br>and<br>Farmland** | **Commercial,<br>National<br>credit &<br>SBA/Gov't<br>guaranteed** | **Loans to<br>Individuals -<br>Other** | **Total** |
| Purchases | $- | $- | $- | $- | $- | $- | $- | $- |
| Sales | 1796 | - | - | - | - | 361 | - | 2157 |

---

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** |
| | **Real Estate:<br>Construction<br>- Land** | **Real Estate:<br>Multi-family** | **Real Estate:<br>Commercial** | **Real Estate:<br>1-4 Family /<br>Construction** | **Agricultural<br>and<br>Farmland** | **Commercial,<br>National<br>credit &<br>SBA/Gov't<br>guaranteed** | **Loans to<br>Individuals -<br>Other** | **Total** |
| Purchases | $- | $- | $- | $- | $- | $3240 | $- | $3240 |
| Sales | 1649 | - | - | - | - | 3623 | - | 5272 |

---

------

**Lincoln Bancorp and Subsidiaries**

**Notes to Consolidated Financial Statements**

**Note 4:&nbsp;&nbsp;&nbsp;&nbsp;Derivative Financial Instruments**

In the normal course of business, the Company uses various derivative financial instruments to manage its interest rate risk and market risks in accommodating the needs of its customers. These instruments carry varying degrees of credit, interest rate and market or liquidity risks. Derivative instruments are recognized as either assets or liabilities in the accompanying consolidated financial statements and are measured at fair value.

***Fair Value Hedges***

For derivative instruments that are designated and qualify as a fair value hedge, the change in the fair value of the derivative as well as the offsetting change in the fair value of the hedged item attributable to the hedged risks are recognized in current earnings.

Interest rate swap agreements are entered into to reduce the exposure to changes in the fair value of fixed-rate municipal securities in both individual fair value hedges and a portfolio fair value hedge.

The change in fair value of the interest rate swap agreement and the underlying municipal investment securities are recorded as gains or losses in interest income from non-taxable investment securities. The notional amounts of the municipal investment securities being hedged were $4.8 million at March 31, 2026 and $30.9 million at December 31, 2025, respectively, and reflects the balance sheet restructure in the first quarter of 2026. Beginning in 2024, interest rate swaps with notional amounts of $100.0 million at December 31, 2025 was designated as a fair value hedge of a layer of a closed portfolio of callable municipal investment securities. This interest rate swap was terminated in the first quarter of 2026.

As a result of the balance sheet restructure in the first quarter of 2026 and related terminations of certain fair value hedges, the Bank recognized a net gain of approximately $2.0 million. The gain was recorded in "Net realized (losses) gains on sale of available-for-sale debt securities" in the consolidated statements of operations.

The following amounts were recorded on the balance sheet related to cumulative-basis adjustments for fair value hedges (Amounts in Thousands):

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Carrying amount of the<br>hedged assets** | **Carrying amount of the<br>hedged assets** | **Cumulative amount of fair<br>value hedging adjustment<br>included in the carrying<br>amount of the hedged assets** | **Cumulative amount of fair<br>value hedging adjustment<br>included in the carrying<br>amount of the hedged assets** |
| | **March 31, 2026** | **December 31, 2025** | **March 31, 2026** | **December 31, 2025** |
| **Line item in the consolidated balance sheet in which the hedged item is included** | | | | |
| Securities available-for-sale <sup>(A)</sup> | $4969 | $158048 | $200 | $2106 |

---

_________________

(A)For December 31, 2025, the carrying amount of hedged assets includes the amortized cost basis of closed portfolios used to designate hedging relationships in which the hedged item is the portfolio layer expected to be remaining at the end of the hedging relationship. The carrying amount of the portfolio layer designated as the hedged item was $127,128. No amounts were separately included at March 31, 2026, as the related swap was terminated.

***Cash Flow Hedges***

As a strategy to manage the risks of increasing funding costs, the Company entered into multiple forward-starting interest rate swap agreements to effectively convert the repricing of the rollover of short-term debt into fixed rate debt. The short-term debt, in the form of FHLB advances or brokered certificates of deposit, will be renewed at each three-month interval through maturity at prevailing market rates. The underlying debt instruments have no credit, price or interest rate risk once renewed. The swap agreements provide for the Company to receive interest from the counterparty at compound Secured Overnight Funding Rate (SOFR) and to pay interest to the counterparty at a fixed rate of between 3.24% and 4.11% on notional amounts of $60.0 million at March 31, 2026 and December 31, 2025, respectively. Under the agreement, the Company pays or receives the net interest amount quarterly, with the quarterly settlements included in interest expense.

------

**Lincoln Bancorp and Subsidiaries**

**Notes to Consolidated Financial Statements**

The change in fair value of the derivative is reported as a component of other comprehensive income and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings.

The following table presents the fair value of derivative instruments for the periods indicated (Amounts in Thousands):

---

| | | |
|:---|:---|:---|
| | **Fair Value** | **Balance Sheet<br>Location** |
| March 31, 2026 |  |  |
| Interest rate swaps | $(302) | Other liabilities |
| Interest rate swaps | 304 | Other assets |
|  | $2 |  |

---

---

| | | |
|:---|:---|:---|
| | **Fair Value** | **Balance Sheet<br>Location** |
| December 31, 2025 |  |  |
| Interest rate swaps | $(893) | Other liabilities |
| Interest rate swaps | 2439 | Other assets |
|  | $1546 |  |

---

The following tables presents the effect of derivative instruments on the statements of operations for the periods indicated (Amounts in Thousands):

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Location and Amount of Gain (Loss) Recognized in Income on Fair Value and Cash Flow Hedging Relationships** | **Location and Amount of Gain (Loss) Recognized in Income on Fair Value and Cash Flow Hedging Relationships** | **Location and Amount of Gain (Loss) Recognized in Income on Fair Value and Cash Flow Hedging Relationships** | **Location and Amount of Gain (Loss) Recognized in Income on Fair Value and Cash Flow Hedging Relationships** |
| | **Three Months Ended March 31, 2026** | **Three Months Ended March 31, 2026** | **Three Months Ended March 31, 2025** | **Three Months Ended March 31, 2025** |
| | **Interest<br>Income** | **Interest<br>Expense** | **Interest<br>Income** | **Interest<br>Expense** |
| Cash Flow Hedges - Interest rate swaps | $- | $(7) |  | $304 |
| Fair Value Hedges - Interest rate swaps | (153) |  | 225 | - |
|  | $(153) | $(7) | $225 | $304 |

---

The following table presents the effect of cash flow hedge accounting on the statements of comprehensive income (loss) for the periods indicated (Amounts in Thousands):

---

| | | |
|:---|:---|:---|
| | **Amount of Gain (Loss)<br>Recognized in AOCI** | **Amount of Gain (Loss)<br>Recognized in AOCI** |
|<br>**Cash Flow Hedges** | **Three Months Ended<br>March 31, 2026** | **Three Months Ended<br>March 31, 2025** |
| Interest rate swaps | $317 | $(291) |

---

**Note 5:&nbsp;&nbsp;&nbsp;&nbsp;Goodwill**

The carrying amount of goodwill as of March 31, 2026 and December 31, 2025 was $18.8 million.

------

**Lincoln Bancorp and Subsidiaries**

**Notes to Consolidated Financial Statements**

**Note 6:&nbsp;&nbsp;&nbsp;&nbsp;Deposits**

The following tables presents the composition of our deposits for the periods indicated (Amounts in Thousands):

---

| | | |
|:---|:---|:---|
| | **March 31, 2026** | **December 31, 2025** |
| Noninterest bearing deposits | $227562 | $245236 |
| Interest bearing deposits | 434559 | 387439 |
| Money market deposits | 104894 | 104583 |
| Savings deposits | 293673 | 276727 |
| Brokered deposits | 74827 | 106263 |
| Time deposits of $250 and under | 262493 | 269588 |
| Time deposits over $250 | 122609 | 117235 |
|  | $1520617 | $1507071 |

---

At March 31, 2026, the scheduled maturities of time deposits for the remaining nine months ending December 31, 2026 and the succeeding annual periods were as follows (Amounts in Thousands):

---

| | |
|:---|:---|
| 2026 | 357294 |
| 2027 | 99824 |
| 2028 | 2572 |
| 2029 | 194 |
| 2030 | 42 |
| 2031 | 3 |
|  | $459929 |

---

**Note 7:&nbsp;&nbsp;&nbsp;&nbsp;Federal Home Loan Bank Advances and Federal Funds Lines**

Advances from the Federal Home Loan Bank, bear interest and are due for the remaining nine months ending December 31, 2026 and the succeeding annual periods as follows (Amounts in Thousands):

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **March 31, 2026** | **March 31, 2026** | **December 31, 2025** | **December 31, 2025** |
| | **Weighted<br>Average<br>Interest Rate<br>at Year End** | **Balance<br>Due** | **Weighted<br>Average<br>Interest Rate<br>at Year End** | **Balance<br>Due** |
| Year ending December 31: |  |  |  |  |
| 2026 | 3.91% | $60000 | 4.05% | $70000 |
| 2027 | 3.69% | 10000 |  | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total |  | $70000 |  | $70000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Overnight borrowings |  | - |  | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total FHLB advances |  | $70000 |  | $70000 |

---

The Federal Home Loan Bank advances are secured by Federal Home Loan Bank stock, included in other investments on the consolidated balance sheet, totaling $4.5 million as of both March 31, 2026 and December 31, 2025. Additionally, qualifying consumer, commercial and agriculture mortgage loans of approximately $294.6 million and $303.9 million as of March 31, 2026 and December 31, 2025, respectively, are pledged as collateral on Federal Home Loan Bank advances. Advances, at interest rates from 3.69% to 4.05%, are subject to restrictions or penalties in the event of prepayment.

------

**Lincoln Bancorp and Subsidiaries**

**Notes to Consolidated Financial Statements**

<u>Federal Funds Lines</u>: The Bank has unsecured federal funds lines totaling $30.0 million from multiple correspondent banking relationships. There were no borrowings from such lines at either March 31, 2026 or December 31, 2025.

**Note 8:&nbsp;&nbsp;&nbsp;&nbsp;Accumulated Other Comprehensive Loss**

The following table summarizes the balances of each component of accumulated other comprehensive income (loss) (AOCI), included in stockholders' equity for the periods indicated (Amounts in Thousands):

---

| | | |
|:---|:---|:---|
| | **March 31, 2026** | **December 31, 2025** |
| Net unrealized loss on available for sale securities | (17095) | (29259) |
| Net unrealized gain (loss) on derivatives used for cash flow hedges | (198) | (515) |
| Tax Effect | 4030 | 7282 |
| &nbsp;&nbsp;&nbsp;&nbsp;Net of Tax Amount | $(13263) | $(22492) |

---

Amounts reclassified from AOCI and affected line items in the statement of operations during the three months ended March 31, 2026 and 2025, were as follows (Amounts in Thousands):

---

| | | | |
|:---|:---|:---|:---|
| | **Three Months Ended March 31, 2026** | **Three Months Ended March 31, 2025** | **Affected line item in the Statements of Operations** |
| Unrealized gain (loss) on available-for- sale securities | $(15690) | $- | Net realized (losses) gains on sale of available-for-sale securities |
| Tax Effect | 3659 | - | Provision for Income Taxes benefit (expense) |
| Total Reclassification out of OCI | $(12031) | $- |  |

---

**Note 9: Notes Payable**

Notes payable was as follows for the periods indicated (Amounts in Thousands):

---

| | | |
|:---|:---|:---|
| | **March 31, 2026** | **December 31, 2025** |
| Line of credit, bank, variable (WSJ Prime Rate) minus 0.25% with a floor of 4.50%, final principal and interest payment due April 1, 2026, collateralized by shares of Lincoln Savings Bank. <sup>(A)</sup>  | $- | $14500 |
|  | $- | $14500 |

---

__________________

(A)The Company had a credit agreement with this note holder that contained various covenants. These covenants primarily consisted of capital ratios and loan performance ratios. The line of credit of $15 million was due April 1, 2026. This line of credit was paid-off in January 2026.

**Note 10:&nbsp;&nbsp;&nbsp;&nbsp; Subordinated Debentures and Junior Subordinated Debentures**

On January 15, 2026, we entered into Subordinated Note Purchase Agreements with eighteen purchasers pursuant to which the Company offered and sold $33,500,000 in aggregate principal amount of its 9.00% Fixed-to-Floating Rate Subordinated Notes Due 2036. The Company paid placement agency fees of $670,000, resulting in net proceeds of $32,830,000. Further, the Company paid approximately $870,000 in subordinated debt issuance costs in the first quarter of 2026 associated with this transaction.

Junior subordinated debentures are due to Lincoln Bancorp Capital Trust II, a 100%-owned, nonconsolidated subsidiary of the Company. The debentures were issued on June 21, 2007, in conjunction with the Trust's issuance of 9,000,000 shares of Company Obligated Mandatorily Redeemable Preferred Securities. The debentures bear the same interest rate and terms as the preferred securities. The preferred securities provide for cumulative cash distributions calculated at a rate equal to the 3-month CME Term SOFR rate of interest, plus one hundred seventy (170) basis points (5.37562% at March 31, 2026). The maximum rate of interest payable will be no higher than that

------

**Lincoln Bancorp and Subsidiaries**

**Notes to Consolidated Financial Statements**

allowed by New York state law. The Company may, at one or more times, defer interest payments on the debentures for up to 20 consecutive quarters, but not beyond September 15, 2037. At the end of the deferral period, all accumulated and unpaid distributions will be paid. The securities will be redeemed no later than September 15, 2037. The Company also has an optional redemption, after receiving the requisite approvals, to redeem the debentures in whole or in part, on or after the interest payment date in June 2012. The securities will be redeemed at par value. Holders of the securities have no voting rights, are unsecured and rank junior in priority of payments to all of the Company's indebtedness and senior to the Company's capital stock. The debentures are included on the balance sheets as liabilities; however, for regulatory purposes are allowed in the calculation of Tier 1 Capital as of March 31, 2026 and December 31, 2025, subject to certain limitations.

**Note 11:&nbsp;&nbsp;&nbsp;&nbsp; Income Taxes**

The tax effects of temporary differences related to deferred taxes on the consolidated balance sheets were (Amounts in Thousands):

---

| | | |
|:---|:---|:---|
| | **March 31, 2026** | **December 31, 2025** |
| Deferred tax assets |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Allowance for credit losses | $4310 | $4310 |
| &nbsp;&nbsp;&nbsp;&nbsp;Deferred compensation | 795 | 795 |
| &nbsp;&nbsp;&nbsp;&nbsp;Loans held for sale | 8 | 8 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other | 1746 | 1746 |
| &nbsp;&nbsp;&nbsp;&nbsp;Federal net operating loss | 7424 | 3704 |
| &nbsp;&nbsp;&nbsp;&nbsp;State net operating loss | 1531 | 1018 |
| &nbsp;&nbsp;&nbsp;&nbsp;Unrealized losses on available-for-sale securities | 3890 | 7307 |
| &nbsp;&nbsp;&nbsp;&nbsp;Premise and equipment | 344 | 344 |
|  | 20048 | 19232 |
| Deferred tax liabilities |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Prepaid expenses | 232 | 232 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other | 234 | 395 |
| &nbsp;&nbsp;&nbsp;&nbsp;Deferred loan fees | 629 | 629 |
| &nbsp;&nbsp;&nbsp;&nbsp;Goodwill | 2869 | 2869 |
| &nbsp;&nbsp;&nbsp;&nbsp;Unrealized gains on equity securities | 245 | 245 |
| &nbsp;&nbsp;&nbsp;&nbsp;Unrealized gains on derivative transactions | - | 360 |
|  | 4209 | 4730 |
| &nbsp;&nbsp;&nbsp;&nbsp;Less: Valuation allowance | (668) | (668) |
| Net deferred tax asset | $15171 | $13834 |

---

The Company has evaluated the realizability of the deferred tax assets and considered both positive and negative assurance in assessing the likelihood of realization. The net deferred tax assets are expected to be utilized through future taxable earnings and tax planning strategies.

The Company has recorded a valuation allowance against the tax effect of the net operating loss (NOL) carryforwards, as management believes it is more likely than not that these carryforwards will expire without being utilized. The federal NOLs carry forward indefinitely, while the Iowa NOL can be carried forward in various amounts through 2045.

**Note 12:&nbsp;&nbsp;&nbsp;&nbsp; Regulatory Matters**

The Company and the Bank are subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the

------

**Lincoln Bancorp and Subsidiaries**

**Notes to Consolidated Financial Statements**

Company's and the Bank's financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company and the Bank must meet specific capital guidelines that involve quantitative measures of assets, liabilities and certain off-balance-sheet items as calculated under regulatory accounting practices. The capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings and other factors. Furthermore, the Company and Bank's regulators could require adjustments to regulatory capital not reflected in these consolidated financial statements.

Quantitative measures established by regulation to ensure capital adequacy require the Company and the Bank to maintain minimum amounts and ratios (set forth in the table below) of total and Tier I capital (as defined in the regulations) to risk-weighted assets (as defined), of Tier I capital (as defined) to average assets (as defined) and of Common Equity Tier I capital (as defined) to risk-weighted assets. Management believes, as of March 31, 2026 and December 31, 2025, that the Company and the Bank meet all capital adequacy requirements to which they are subject.

As of March 31, 2026, the most recent notification from FDIC categorized the Bank as well capitalized under the regulatory framework for prompt corrective action. To be categorized as well-capitalized, the Bank must maintain capital ratios as set forth in the table. There are no conditions or events since that notification that management believes have changed the Bank's category.

On January 15, 2026, the Company entered into Subordinated Note Purchase Agreements with eighteen purchasers pursuant to which the Company offered and sold $33,500,000 in aggregate principal amount of its 9.00% Fixed-to-Floating Rate Subordinated Notes Due 2036. The Company paid placement agency fees of $670,000, resulting in net proceeds of $32,830,000. As of March 31, 2026, 100% of the Subordinated Notes qualified as Tier 2 capital. Per applicable Federal Reserve rules and regulations, the amount of the subordinated notes qualifying as Tier 2 regulatory capital will be phased-out by 20% of the amount of the subordinated notes in each of the five years beginning on the fifth anniversary preceding the maturity date of the subordinated notes.

------

**Lincoln Bancorp and Subsidiaries**

**Notes to Consolidated Financial Statements**

The Company's and the Bank's actual capital amounts and ratios are also presented in the table on the following page (Amounts in Thousands):

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Actual** | **Actual** | **Minimum Capital Requirement** | **Minimum Capital Requirement** | **Minimum to Be Well Capitalized** | **Minimum to Be Well Capitalized** |
| | **Amount** | **Ratio** | **Amount** | **Ratio** | **Amount** | **Ratio** |
| **As of March 31, 2026** | | | | | | |
| &nbsp;&nbsp;&nbsp;&nbsp;Total Capital |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(to Risk-Weighted Assets) |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Consolidated | $184360 | 14.20% | $103852 | 8.00% | N/A | N/A |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Lincoln Savings Bank | 175049 | 13.52% | 103592 | 8.00% | 129490 | 10.00% |
| &nbsp;&nbsp;&nbsp;&nbsp;Tier I Capital |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(to Risk-Weighted Assets) |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Consolidated | $135496 | 10.44% | $77889 | 6.00% | N/A | N/A |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Lincoln Savings Bank | 158834 | 12.27% | 77694 | 6.00% | 103592 | 8.00% |
| &nbsp;&nbsp;&nbsp;&nbsp;Tier I Capital |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(to Total Adjusted Assets) |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Consolidated | $135496 | 7.58% | $71461 | 4.00% | N/A | N/A |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Lincoln Savings Bank | 158834 | 9.00% | 70603 | 4.00% | 88254 | 5.00% |
| &nbsp;&nbsp;&nbsp;&nbsp;Common Equity Tier I Capital (CET1) |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(to Risk-Weighted Assets) |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Consolidated | $126496 | 9.74% | $58417 | 4.50% | N/A | N/A |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Lincoln Savings Bank | 158834 | 12.27% | 58271 | 4.50% | 84169 | 6.50% |
| **As of December 31, 2025** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Total Capital |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(to Risk-Weighted Assets) |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Consolidated | $165159 | 12.34% | $107093 | 8.00% | N/A | N/A |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Lincoln Savings Bank | 177940 | 13.41% | 106166 | 8.00% | 132708 | 10.00% |
| &nbsp;&nbsp;&nbsp;&nbsp;Tier I Capital |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(to Risk-Weighted Assets) |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Consolidated | $148555 | 11.10% | $80320 | 6.00% | N/A | N/A |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Lincoln Savings Bank | 161336 | 12.16% | 79625 | 6.00% | 106166 | 8.00% |
| &nbsp;&nbsp;&nbsp;&nbsp;Tier I Capital |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(to Total Adjusted Assets) |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Consolidated | $148555 | 8.30% | $71581 | 4.00% | N/A | N/A |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Lincoln Savings Bank | 161336 | 9.05% | 71290 | 4.00% | 89113 | 5.00% |
| &nbsp;&nbsp;&nbsp;&nbsp;Common Equity Tier I Capital (CET1) |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(to Risk-Weighted Assets) |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Consolidated | $139555 | 10.43% | $60240 | 4.50% | N/A | N/A |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Lincoln Savings Bank | 161336 | 12.16% | 59718 | 4.50% | 86260 | 6.50% |

---

The above minimum capital requirements exclude the capital conservation buffer required to avoid limitations on capital distributions, including dividend payments and certain discretionary bonus payments to executive officers. The capital conservation buffer was 2.50% at March 31, 2026 and December 31, 2025. The net unrealized gain or loss on available-for-sale securities and derivatives is not included in computing regulatory capital.

------

**Lincoln Bancorp and Subsidiaries**

**Notes to Consolidated Financial Statements**

The Company and Bank are subject to certain restrictions on the amount of dividends that it may declare without prior regulatory approval. The Company has adopted a resolution not to pay dividends, incur debt or repurchase or redeem stock without prior regulatory approval.

**Note 13:&nbsp;&nbsp;&nbsp;&nbsp; Employee Benefit Plans**

***Equity Plans***

On April 5, 2019, the Company's stockholders voted to approve the Lincoln Bancorp 2019 Equity Incentive Plan (the "2019 Plan"). The 2019 Plan provides for the grant of up to 400,000 shares of Common Stock under equity awards including stock options, stock awards, restricted stock, stock appreciation rights, performance units, or other equity-based awards payable in cash or stock to key employees and directors of the Company and the Bank. As of March 31, 2026, 37,187 shares of the Company's common stock remained available for future awards under the 2019 plan.

During the three months ended March 31, 2026, the company recognized $135.0 thousand of compensation expense related to the restricted stock. In comparison during the three months ended March 31, 2025, the Company recognized $183.0 thousand, related to the restricted stock units.

The following is a summary of non-vested restricted stock unit activity for the three months ended March 31, 2026 and March 31, 2025.

---

| | | |
|:---|:---|:---|
| | **March 31, 2026** | **March 31, 2025** |
| Nonvested at December 31, 2025 | 164000 | 74166 |
| Granted upon satisfaction of a performance factor |  | - |
| Granted upon service requirements | 14000 | 17000 |
| Vested | (15000) | - |
| Forfeited |  | (53333) |
| Non-vested at March 31, 2026 | 163000 | 37833 |

---

**Note 14:&nbsp;&nbsp;&nbsp;&nbsp; Disclosures About Fair Value of Assets and Liabilities**

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value measurements must maximize the use of observable inputs and minimize the use of unobservable inputs. There is a hierarchy of three levels of inputs that may be used to measure fair value:

**Level 1** Quoted prices in active markets for identical assets or liabilities

**Level 2** Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities

**Level 3** Unobservable inputs supported by little or no market activity and are significant to the fair value of the assets or liabilities

------

**Lincoln Bancorp and Subsidiaries**

**Notes to Consolidated Financial Statements**

***Recurring Measurements***

The following table presents the fair value measurements of assets and liabilities recognized in the accompanying balance sheets measured at fair value on a recurring basis and the level within the fair value hierarchy in which the fair value measurements fall for the periods indicated (Amounts in Thousands):

---

| | | | | |
|:---|:---|:---|:---|:---|
| | | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** |
| | | **Fair Value Measurements Using** | **Fair Value Measurements Using** | **Fair Value Measurements Using** |
| |<br><br>**Fair Value** | **Quoted Prices <br>in Active <br>Markets for <br>Identical <br>Assets**<br>**(Level 1)** | **Significant <br>Other <br>Observable <br>Inputs**<br>**(Level 2)** | **Significant <br>Unobservable <br>Inputs**<br>**(Level 3)** |
| Asset-backed securities | $9047 | $- | $9047 | $- |
| Collateralized mortgage |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;obligations | 85606 | - | 85606 | - |
| Government-sponsored |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;mortgage-backed securities | 23914 | - | 23914 | - |
| State and political subdivisions | 108326 | - | 108326 | - |
| U.S. Treasuries | 20474 | 20474 | - | - |
| Collateralized debt obligations | 26033 | - | 26033 | - |
| Farmer Mac stock | 240 | 240 | - | - |
| Interest rate swap asset | 304 | - | 304 | - |
| Interest rate swap liability | (302) | - | (302) | - |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| | | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** |
| | | **Fair Value Measurements Using** | **Fair Value Measurements Using** | **Fair Value Measurements Using** |
| |<br><br>**Fair Value** | **Quoted Prices in Active Markets for Identical Assets**<br>**(Level 1)** | **Significant Other Observable Inputs**<br>**(Level 2)** | **Significant Unobservable Inputs**<br>**(Level 3)** |
| Asset-backed securities | $2405 | $- | $2405 | $- |
| Collateralized mortgage |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;obligations | 99360 | - | 99360 | - |
| Government-sponsored |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;mortgage-backed securities | 45021 | - | 45021 | - |
| State and political subdivisions | 146012 | - | 146012 | - |
| U.S. Treasuries | 14239 | 14239 | - | - |
| Collateralized debt obligations | 22872 | - | 22872 | - |
| Farmer Mac stock | 281 | 281 | - | - |
| Interest rate swap asset | 2439 | - | 2439 | - |
| Interest rate swap liability | (893) | - | (893) | - |

---

For additional information regarding the valuation methodologies used to measure the Company's assets and liabilities recorded at fair value, and for estimating fair value for financial instruments not recorded at fair value, refer to Note 1. Nature of Operations and Summary of Significant Accounting Policies and Note 16. Disclosures About Fair Value of Assets and Liabilities to the consolidated financial statements in the Company's 2025 Annual Report. There have been no significant changes in the valuation techniques during the three months ended March 31, 2026.

------

**Lincoln Bancorp and Subsidiaries**

**Notes to Consolidated Financial Statements**

***Nonrecurring Measurements***

The following table presents the fair value measurement of assets measured at fair value on a nonrecurring basis and the level within the fair value hierarchy in which the fair value measurements fall for the periods indicated (Amounts in Thousands):

---

| | | | | |
|:---|:---|:---|:---|:---|
| | | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** |
| | | **Fair Value Measurements Using** | **Fair Value Measurements Using** | **Fair Value Measurements Using** |
| |<br><br>**Fair Value** | **Quoted Prices <br>in Active <br>Markets for <br>Identical <br>Assets**<br>**(Level 1)** | **Significant <br>Other <br>Observable <br>Inputs**<br>**(Level 2)** | **Significant <br>Unobservable <br>Inputs**<br>**(Level 3)** |
| Collateral dependent loans | $9613 | $- | $- | $9613 |
| Individually evaluated loans | 26350 | - | - | 26350 |
| Equity securities - without readily determinable value | 1072 | - | 1072 | - |
| Other real estate | 10201 | - | - | 10201 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| | | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** |
| | | **Fair Value Measurements Using** | **Fair Value Measurements Using** | **Fair Value Measurements Using** |
| |<br><br>**Fair Value** | **Quoted Prices <br>in Active <br>Markets for <br>Identical <br>Assets**<br>**(Level 1)** | **Significant <br>Other <br>Observable <br>Inputs**<br>**(Level 2)** | **Significant <br>Unobservable <br>Inputs**<br>**(Level 3)** |
| Collateral dependent loans | $4602 | $- | $- | $4602 |
| Individually evaluated loans | 20062 | - | - | 20062 |
| Equity securities - without readily determinable value | 1072 | - | 1072 | - |
| Other real estate | 9966 | - | - | 9966 |

---

Following is a description of the valuation methodologies and inputs used for assets measured at fair value on a nonrecurring basis and recognized in the accompanying balance sheet, as well as the general classification of such assets pursuant to the valuation hierarchy. For assets classified within Level 3 of the fair value hierarchy, the process used to develop the reported fair value, along with the range of inputs for each Level 3 asset is also included.

***Collateral-Dependent Loans, Net of Allowance for Credit Losses***

The estimated fair value of collateral-dependent loans is based on the appraised fair value of the collateral, less estimated cost to sell. Collateral-dependent loans are classified within Level 3 of the fair value hierarchy.

The Company considers the appraisal or evaluation as the starting point for determining fair value and then considers other factors and events in the environment that may affect the fair value. Appraisals of the collateral underlying collateral-dependent loans are obtained when the loan is determined to be collateral-dependent and subsequently as deemed necessary by management. Appraisals are reviewed for accuracy and consistency by management. Appraisers are selected from the list of approved appraisers maintained by management. The appraised values are reduced by discounts to consider lack of marketability and estimated cost to sell if repayment or satisfaction of the loan is dependent on the sale of the collateral. These discounts and estimates are developed by management by comparison to historical results. The range of inputs used in the valuation was between 25% and 100%.

***Individually Evaluated Loans, Net of Allowance for Credit Losses***

The estimated fair value of the individually evaluated loans is based upon a discounted cash flow analysis, with related inputs, Individually evaluated loans are classified within Level 3 of the fair value hierarchy.

------

**Lincoln Bancorp and Subsidiaries**

**Notes to Consolidated Financial Statements**

Under the discounted cash flows analysis, the fair value is determined based upon the difference between the amortized cost basis and the present value of the cash flows expected to be collected. Expected cash flows are discounted at the effective interest rate of the asset. The effective interest rate used to discount cash flows is the contractual interest rate adjusted for net deferred fees or costs, premium, or discount existing at the origination or acquisition of the asset. The effective interest rate represents management's expected yield over the contractual life of the asset upon its origination or acquisition. If the financial asset's contractual interest rate varies based on subsequent changes in an independent factor, that financial asset's effective interest rate shall be calculated based on the factor as it changes over the life of the financial asset. The range of inputs used in the valuation was between 0% and 100%.

***Other Real Estate***

Other real estate (ORE) is carried at the lower of fair value at acquisition date or current estimated fair value, less estimated cost to sell when the real estate is acquired. Estimated fair value of ORE is based on appraisals or evaluations. ORE is classified within Level 3 of the fair value hierarchy.

Appraisals of ORE are obtained when deemed necessary by management. Appraisals are reviewed for accuracy and consistency by management. Appraisers are selected from the list of approved appraisers maintained by management. The inputs used in the valuation were 7%.

***Equity Securities***

Equity securities without a readily determinable fair value are carried at cost, minus impairment, if any, plus or minus changes resulting from observable price changes for the identical or a similar investment.

***Fair Value of Financial Instruments***

The following table presents estimated fair values of the Company's financial instruments for the periods indicated (Amounts in Thousands):

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** |
| | **Carrying <br>Amount** | **Fair Value** | **Level 1** | **Level 2** | **Level 3** |
| Financial Assets |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Cash and due from banks | $125736 | $125736 | $125736 | $- | $- |
| &nbsp;&nbsp;&nbsp;&nbsp;Federal funds sold | 98598 | 98598 | 98598 | - | - |
| &nbsp;&nbsp;&nbsp;&nbsp;Available-for-sale debt securities | 273400 | 273400 | 20474 | 252926 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;Other investments | 7619 | 7619 | 240 | 7379 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;Loans held for sale | 129 | 129 | - | 129 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;Loans, net of allowance for losses | 1146731 | 1120880 | - | - | 1120880 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accrued interest receivable | 8857 | 8857 | - | 8857 | - |
| Financial Liabilities |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Deposits | 1520617 | 1519430 | 1060689 | 458741 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;Federal Home Loan Bank advances | 70000 | 69999 | - | 69999 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;Notes payable | - | - | - |  | - |
| &nbsp;&nbsp;&nbsp;&nbsp;Subordinated debentures | 32649 | 32649 | - | 32649 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;Junior subordinated debentures | 9279 | 9279 | - | 9279 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;Accrued interest payable | 3105 | 3105 | - | 3105 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;Off-balance sheet instruments |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loan commitments | - | - | - | - | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Standby letters of credit | - | - | - | - | - |

---

------

**Lincoln Bancorp and Subsidiaries**

**Notes to Consolidated Financial Statements**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** |
| | **Carrying <br>Amount** | **Fair Value** | **Level 1** | **Level 2** | **Level 3** |
| Financial Assets |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Cash and due from banks | $61730 | $61730 | $61730 | $- | $- |
| &nbsp;&nbsp;&nbsp;&nbsp;Federal funds sold | 72546 | 72546 | 72546 | - | - |
| &nbsp;&nbsp;&nbsp;&nbsp;Available-for-sale debt securities | 329909 | 329909 | 14239 | 315670 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;Other investments | 7657 | 7657 | 281 | 7376 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;Loans held for sale | 605 | 605 | - | 605 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;Loans, net of allowance for losses | 1148171 | 1120820 | - | - | 1120820 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accrued interest receivable | 10478 | 10478 | - | 10478 | - |
| Financial Liabilities |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Deposits | 1507071 | 1507972 | 1013984 | 493988 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;Federal Home Loan Bank advances | 70000 | 70055 | - | 70055 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;Notes payable | 14500 | 14500 | - | 14500 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;Junior subordinated debentures | 9279 | 9279 | - | 9279 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;Accrued interest payable | 2533 | 2533 | - | 2533 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;Off-balance sheet instruments |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loan commitments | - | - | - | - | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Standby letters of credit | - | - | - | - | - |

---

**Note 15:&nbsp;&nbsp;&nbsp;&nbsp;Significant Estimates and Concentrations**

Accounting principles generally accepted in the United States of America require disclosure of certain significant estimates and current vulnerabilities due to certain concentrations. Estimates related to the allowance for credit losses are reflected in the footnote regarding loans. Current vulnerabilities due to certain concentrations of credit risk are discussed in the footnote on commitments and credit risk.

***General Litigation***

The Company is subject to claims and lawsuits that arise primarily in the ordinary course of business. It is the opinion of management that the disposition or ultimate resolution of such claims and lawsuits will not have a material adverse effect on the consolidated financial position, results of operations and cash flows of the Company.

**Note 16:&nbsp;&nbsp;&nbsp;&nbsp;Commitments and Credit Risk**

***Commitments to Originate Loans***

Commitments to originate loans are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since a portion of the commitments may expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. Each customer's creditworthiness is evaluated on a case-by-case basis. The amount of collateral obtained, if deemed necessary, is based on management's credit evaluation of the counterparty. Collateral held varies, but may include accounts receivable, inventory, property, plant and equipment, commercial real estate and residential real estate.

At March 31, 2026 and December 31, 2025, the Company had outstanding commitments to originate loans aggregating $778 thousand and $135 thousand, respectively.

***Standby Letters of Credit***

Standby letters of credit are irrevocable conditional commitments issued by the Bank to guarantee the performance of a customer to a third party. Financial standby letters of credit are primarily issued to support public and private borrowing arrangements, including commercial paper, bond financing and similar transactions. Performance standby letters of credit are issued to guarantee performance of certain customers under nonfinancial

------

**Lincoln Bancorp and Subsidiaries**

**Notes to Consolidated Financial Statements**

contractual obligations. The credit risk involved in issuing standby letters of credit is essentially the same as that involved in extending loans to customers. Should the Bank be obligated to perform under the standby letters of credit, the Bank may seek recourse from the customer for reimbursement of amounts paid.

The Bank had total outstanding standby letters of credit amounting to $4.4 million and $4.6 million, at March 31, 2026 and December 31, 2025, respectively.

***Lines of Credit***

Lines of credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Lines of credit generally have fixed expiration dates. Since a portion of the line may expire without being drawn upon, the total unused lines do not necessarily represent future cash requirements. Each customer's creditworthiness is evaluated on a case-by-case basis. The amount of collateral obtained, if deemed necessary, is based on management's credit evaluation of the counterparty. Collateral held varies but may include accounts receivable, inventory, property, plant and equipment, commercial real estate and residential real estate. Management uses the same credit policies in granting lines of credit as it does for on-balance-sheet instruments.

At March 31, 2026 and December 31, 2025, the Bank had granted unused lines of credit to borrowers aggregating $265.1 million and $259.6 million, respectively, for commercial lines-of-credit, revolving credit lines and overdraft protection agreements.

***Concentrations of Credit Risk***

Substantially all of the Bank's loans and commitments to extend credit have been granted to customers in the Bank's market area. A significant portion of the Bank's loan portfolio consists of loans to finance the construction and development of real estate, companies involved in agribusiness and loans to farmers. The Bank's lending policies for agriculture and nonagricultural customers require loans that are well collateralized and supported by cash flows. Credit losses from loans related to the agricultural economy are consistent with credit losses experienced in the loan portfolio as a whole. The amount of collateral obtained on loans made by the Bank is based on management's credit evaluation of the borrower. Collateral held varies but may include accounts receivable, inventory, crops, equipment, livestock, real estate and other income-producing properties.

The nature of the Bank's business requires that it maintain amounts due from banks which, at times, may exceed federally insured limits. In the opinion of management, no material risk of loss exists due to the institution's financial condition and the fact they are well capitalized.

**Note 17:&nbsp;&nbsp;&nbsp;&nbsp;(Loss) Earnings Per Share**

The following table presents the computation of basic and diluted (loss) earnings per common share for the periods indicated:

---

| | | |
|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** |
| | **March 31, 2026** | **March 31, 2025** |
| Computation of weighted average number of basic shares: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Weighted average shares outstanding (basic) | 7316526 | 7236278 |
| (Loss) Income available to common shareholders (in thousands) | $(12601) | $(192) |
| Basic (loss) earnings per share: | $(1.72) | $(0.03) |
| Computation of weighted average number of diluted shares: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Weighted average shares outstanding (diluted) | 7316526 | 7236278 |
| (Loss) Income available to common shareholders (in thousands) | $(12601) | $(192) |
| Diluted (loss) earnings per share: | $(1.72) | $(0.03) |

---

------

**Lincoln Bancorp and Subsidiaries**

**Notes to Consolidated Financial Statements**

**Note 18:&nbsp;&nbsp;&nbsp;&nbsp;Other Noninterest Income and Other Noninterest Expense**

The following table presents additional disaggregation of the other noninterest income and other noninterest expense for the periods indicated:

---

| | | |
|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** |
| | **March 31, 2026** | **March 31, 2025** |
| **Other Noninterest Income** | | |
| Card revenue | $589 | $570 |
| Bank-owned life insurance | 367 | 399 |
| Other | 976 | 618 |
| &nbsp;&nbsp;&nbsp;&nbsp; Total | $1932 | $1587 |
| **Other Noninterest Expense** |  |  |
| FDIC assessment | $471 | $456 |
| Legal and professional | 1000 | 494 |
| Other | 2978 | 2058 |
|  | $4449 | $3008 |

---

**Note 19:&nbsp;&nbsp;&nbsp;&nbsp;Subsequent Events**

Subsequent events have been evaluated through June 25, 2026 which is the date the financial statements were issued.

------

**Report of Independent Registered Public Accounting Firm**

To the Shareholders, Board of Directors, and Audit Committee

Lincoln Bancorp

***Opinion on the Consolidated Financial Statements***

We have audited the accompanying consolidated balance sheet of Lincoln Bancorp (the "Company") as of December 31, 2024, the related consolidated statements of operations, comprehensive loss, stockholders' equity, and cash flows for the year ended December 31, 2024, and the related notes (collectively referred to as the "financial statements"). In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the Company as of December 31, 2024, and the results of its operations and its cash flows for the year ended December 31, 2024, in conformity with accounting principles generally accepted in the United States of America.

***Basis for Opinion***

These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's financial statements based on our audit.

We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) ("PCAOB") and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audit in accordance with the standards of the PCAOB and in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.

Our audit included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audit also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audit provides a reasonable basis for our opinion.

We have served as the Company's auditor since 2013, except for the period from May 19, 2025 to March 22, 2026.

/s/ Forvis Mazars, LLP

**Springfield, Missouri**

**May 14, 2026, except as to Note 21, which is as of June 25, 2026**

------

**REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM**

To the Stockholders and the Board of Directors of Lincoln Bancorp and Subsidiaries

**Opinion on the Consolidated Financial Statements**

We have audited the accompanying consolidated balance sheet of Lincoln Bancorp and Subsidiaries (the "Company") as of December 31, 2025, and the related consolidated statements of operations, comprehensive income (loss), stockholders' equity and cash flows for the year then ended and the related notes to the consolidated financial statements (the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2025, and the results of its operations and its cash flows for the year then ended, in conformity with accounting principles generally accepted in the United States of America.

**Basis for Opinion**

These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's financial statements based on our audit. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audit we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion.

Our audit included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audit also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audit provides a reasonable basis for our opinion.

We have served as the Company's auditor since 2025.

/s/ Wipfli LLP

Milwaukee, Wisconsin

May 14, 2026

------

**Lincoln Bancorp and Subsidiaries**

**Consolidated Balance Sheets**

For the years ended December 31, 2025 and 2024

(Amounts in Thousands)

---

| | | |
|:---|:---|:---|
| | **2025** | **2024** |
| **Assets** |  |  |
| Cash and due from banks | $61730 | $16933 |
| Federal funds sold | 72546 | 1129 |
| &nbsp;&nbsp;&nbsp;&nbsp;Cash and cash equivalents | 134276 | 18062 |
| Available-for-sale debt securities (amortized cost basis of $361,273 and $304,452 at December 31, 2025 and 2024) (Note 2) | 329909 | 265346 |
| Loans held for sale | 605 | 900 |
| Loans, net of allowance for credit losses of $17,865 and $16,009 at December 31, 2025 and 2024 (Note 3) | 1148171 | 1398227 |
| Premises and equipment, net (Note 4) | 39672 | 41326 |
| Other real estate | 9966 | 5858 |
| Accrued interest receivable | 10478 | 11311 |
| Cash surrender value of life insurance | 36887 | 35303 |
| Other investments (Note 2) | 7657 | 8232 |
| Goodwill (Note 6) | 18805 | 18805 |
| Other assets | 23952 | 46032 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total assets | $1760378 | $1849402 |
| **Liabilities and Stockholders' Equity** |  |  |
| **Liabilities** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Noninterest-bearing deposits | $245236 | $253014 |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest-bearing deposits | 1261835 | 1328676 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total deposits (Note 7) | 1507071 | 1581690 |
| &nbsp;&nbsp;&nbsp;&nbsp;Federal Home Loan Bank advances (Note 8) | 70000 | 89510 |
| &nbsp;&nbsp;&nbsp;&nbsp;Notes payable (Note 10) | 14500 | 14500 |
| &nbsp;&nbsp;&nbsp;&nbsp;Junior subordinated debentures (Note 11) | 9279 | 9279 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accrued interest payable | 2533 | 3396 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other liabilities | 19181 | 14169 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities | 1622564 | 1712544 |
| Stockholders' Equity: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Class A Common stock, $0.01 par value; authorized 25,000,000 shares; 6,778,670 shares issued and 6,654,688 shares outstanding at December 31, 2025, and 6,778,670 shares issued and 6,712,091 shares outstanding at December 31, 2024 | 68 | 68 |
| &nbsp;&nbsp;&nbsp;&nbsp;Class B Common stock, $0.01 par value; authorized 25,000,000 shares; 656,328 shares issued and outstanding at December 31, 2025 and 2024 | 7 | 7 |
| &nbsp;&nbsp;&nbsp;&nbsp;Additional paid-in capital | 65745 | 65673 |
| &nbsp;&nbsp;&nbsp;&nbsp;Retained earnings | 97635 | 100083 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accumulated other comprehensive loss, net of income taxes (Note 9) | (22492) | (25783) |
| &nbsp;&nbsp;&nbsp;&nbsp;Treasury stock, at cost <br>Common - 123,982 shares at December 31, 2025 and 66,579 shares at December 31, 2024 | (1635) | (973) |
| &nbsp;&nbsp;&nbsp;&nbsp;Unallocated common stock of Employee Stock Ownership (ESOP), 90,498 and 132,141 shares at December 31, 2025 and 2024 | (1514) | (2217) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total stockholders' equity | 137814 | 136858 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities and stockholders' equity | $1760378 | $1849402 |

---

See Notes to Consolidated Financial Statements

------

**Lincoln Bancorp and Subsidiaries**

**Consolidated Statements of Operations**

For the years ended December 31, 2025 and 2024

(Amounts in Thousands)

---

| | | |
|:---|:---|:---|
| | **2025** | **2024** |
| **Interest Income** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Loans, including fees | $75002 | $81733 |
| &nbsp;&nbsp;&nbsp;&nbsp;Investment securities |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Taxable | 10225 | 8344 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Tax-exempt | 4165 | 4370 |
| &nbsp;&nbsp;&nbsp;&nbsp;Federal funds sold | 1535 | 277 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total interest income | 90927 | 94724 |
| **Interest Expense** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Deposits | 42096 | 49335 |
| &nbsp;&nbsp;&nbsp;&nbsp;Federal funds purchased and securities sold under |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;agreements to repurchase | - | 4 |
| &nbsp;&nbsp;&nbsp;&nbsp;Federal Home Loan Bank advances | 2820 | 3645 |
| &nbsp;&nbsp;&nbsp;&nbsp;Notes payable and junior subordinated debentures | 1608 | 1838 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total interest expense | 46524 | 54822 |
| **Net Interest Income**  | 44403 | 39902 |
| **Provision for Credit Losses**  | 3501 | 5378 |
| **Net Interest Income After Provision for Credit Losses**  | 40902 | 34524 |
| **Noninterest Income** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Trust fees | 1045 | 891 |
| &nbsp;&nbsp;&nbsp;&nbsp;Brokerage service commissions | 2305 | 3350 |
| &nbsp;&nbsp;&nbsp;&nbsp;Service charges on deposit accounts | 1176 | 1203 |
| &nbsp;&nbsp;&nbsp;&nbsp;Net gains on mortgage loan sales | 255 | 1504 |
| &nbsp;&nbsp;&nbsp;&nbsp;Net gains on SBA and USDA loan sales | 109 | 1001 |
| &nbsp;&nbsp;&nbsp;&nbsp;Net realized gains on sale of available-for-sale debt securities | - | 10 |
| &nbsp;&nbsp;&nbsp;&nbsp;Unrealized gains on equity securities | 8 | 57 |
| &nbsp;&nbsp;&nbsp;&nbsp;Gain on the sale of business unit | - | 7320 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other noninterest income | 8046 | 9481 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total noninterest income | 12944 | 24817 |
| **Noninterest Expense** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Salaries and employee benefits | 29584 | 34244 |
| &nbsp;&nbsp;&nbsp;&nbsp;Occupancy | 4086 | 4204 |
| &nbsp;&nbsp;&nbsp;&nbsp;Furniture, equipment and software expense | 7020 | 7578 |
| &nbsp;&nbsp;&nbsp;&nbsp;Net losses on sales of other real estate and real estate expense | 1874 | 143 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other noninterest expense | 14195 | 15039 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total noninterest expense | 56759 | 61208 |
| **Loss Before Income Tax**  | (2913) | (1867) |
| **Credit for Income Taxes (Note 12)**  | (465) | (472) |
| **Net Loss**  | $(2448) | $(1395) |
| **Earnings Per Share** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Basic | $(0.34) | $(0.19) |
| &nbsp;&nbsp;&nbsp;&nbsp;Diluted | $(0.34) | $(0.19) |

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See Notes to Consolidated Financial Statements

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**Lincoln Bancorp and Subsidiaries**

**Consolidated Statements of Comprehensive Income (Loss)**

For the years ended December 31, 2025 and 2024

(Amounts in Thousands)

---

| | | |
|:---|:---|:---|
| | **2025** | **2024** |
| **Net Loss**  | $(2448) | $(1395) |
| **Other Comprehensive Income (Loss)** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Securities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Unrealized appreciation (depreciation) on available-for-sale debt securities | 4873 | (4396) |
| &nbsp;&nbsp;&nbsp;&nbsp;Reclassification adjustment for (gain) loss included in net loss | - | (10) |
| &nbsp;&nbsp;&nbsp;&nbsp;Income tax benefit (expense) | (1125) | 1024 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other comprehensive gain (loss) on available-for-sale debt securities | 3748 | (3382) |
| &nbsp;&nbsp;&nbsp;&nbsp;Derivatives used in cash flow hedging relationships: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Unrealized gain (loss) on derivatives | (596) | 1098 |
| &nbsp;&nbsp;&nbsp;&nbsp;Income tax benefit (expense) | 139 | (256) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other comprehensive gain (loss) on cash flow hedges | (457) | 842 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other comprehensive income (loss), net of tax | 3291 | (2540) |
| **Comprehensive Income (Loss)**  | $843 | $(3935) |

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See Notes to Consolidated Financial Statements

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**Lincoln Bancorp and Subsidiaries**

**Consolidated Statements of Stockholders' Equity**

For the years ended December 31, 2025 and 2024

(Amounts in Thousands)

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| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Class A<br>Common<br>Stock** | **Class B<br>Common<br>Stock** | **Additional<br>Paid-in<br>Capital** | **Retained<br>Earnings** | **Accumulated<br>Other<br>Comprehensive<br>Income (Loss)** | **Treasury<br>Stock** | **Unearned<br>ESOP<br>Shares** | **Total** |
| **Balance, January 1, 2024**  | $68 | $7 | $66048 | $101478 | $(23243) | $(1737) | $(3046) | $139575 |
| &nbsp;&nbsp;&nbsp;&nbsp;Net loss | - | - | - | (1395) | - | - | - | (1395) |
| &nbsp;&nbsp;&nbsp;&nbsp;Other comprehensive loss | - | - | - | - | (2540) | - | - | (2540) |
| &nbsp;&nbsp;&nbsp;&nbsp;Issuance of 39,915 shares of common stock out of treasury stock for stock based compensation plan | - | - | (121) | - | - | 703 | - | 582 |
| &nbsp;&nbsp;&nbsp;&nbsp;Purchase of 65,733 shares of treasury stock | - | - | - | - | - | (958) | - | (958) |
| &nbsp;&nbsp;&nbsp;&nbsp;Sale of 57,756 shares of treasury stock | - | - | (177) | - | - | 1019 | - | 842 |
| &nbsp;&nbsp;&nbsp;&nbsp;ESOP shares earned | - | - | (77) | - | - | - | 829 | 752 |
| **Balance, December 31, 2024**  | 68 | 7 | 65673 | 100083 | (25783) | (973) | (2217) | 136858 |
| &nbsp;&nbsp;&nbsp;&nbsp;Net loss | - | - | - | (2448) | - | - | - | (2448) |
| &nbsp;&nbsp;&nbsp;&nbsp;Other comprehensive income | - | - | - | - | 3291 | - | - | 3291 |
| &nbsp;&nbsp;&nbsp;&nbsp;Issuance of 20,264 shares of common stock out of treasury stock for stock based compensation plan | - | - | (47) | - | - | 298 | - | 251 |
| &nbsp;&nbsp;&nbsp;&nbsp;Purchase of 77,667 shares of treasury stock | - | - | - | - | - | (960) | - | (960) |
| &nbsp;&nbsp;&nbsp;&nbsp;Stock based compensation | - | - | 308 | - | - | - | - | 308 |
| &nbsp;&nbsp;&nbsp;&nbsp;ESOP shares earned | - | - | (189) | - | - | - | 703 | 514 |
| **Balance, December 31, 2025**  | $68 | $7 | $65745 | $97635 | $(22492) | $(1635) | $(1514) | $137814 |

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See Notes to Consolidated Financial Statements

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**Lincoln Bancorp and Subsidiaries**

**Consolidated Statements of Cash Flows**

For the years ended December 31, 2025 and 2024

(Amounts in Thousands)

---

| | | |
|:---|:---|:---|
| | **2025** | **2024** |
| **Operating Activities** |  |  |
| Net loss | $(2448) | $(1395) |
| Items not requiring (providing) cash |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Depreciation | 2265 | 2487 |
| &nbsp;&nbsp;&nbsp;&nbsp;Provision for credit losses | 3501 | 5378 |
| &nbsp;&nbsp;&nbsp;&nbsp;Amortization and accretion, net | 934 | 441 |
| &nbsp;&nbsp;&nbsp;&nbsp;Deferred income taxes | (639) | (722) |
| &nbsp;&nbsp;&nbsp;&nbsp;Gain on the sale of business unit | - | (7320) |
| &nbsp;&nbsp;&nbsp;&nbsp;Net gains on sale of loans | (364) | (2505) |
| &nbsp;&nbsp;&nbsp;&nbsp;Gain on sale and write down of fixed assets and other assets | - | (4) |
| &nbsp;&nbsp;&nbsp;&nbsp;Net realized (gain) loss on available-for-sale securities | - | (10) |
| &nbsp;&nbsp;&nbsp;&nbsp;Unrealized gain on equity securities | (8) | (57) |
| &nbsp;&nbsp;&nbsp;&nbsp;Origination of loans held for sale | (12431) | (63593) |
| &nbsp;&nbsp;&nbsp;&nbsp;Proceeds from sale of loans held for sale | 13090 | 67583 |
| &nbsp;&nbsp;&nbsp;&nbsp;Stock based compensation | 308 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;ESOP shares earned | 514 | 752 |
| &nbsp;&nbsp;&nbsp;&nbsp;Amortization of right-of-use asset | 122 | 62 |
| &nbsp;&nbsp;&nbsp;&nbsp;Increase in cash value of life insurance | (1584) | (1523) |
| &nbsp;&nbsp;&nbsp;&nbsp;Stock based compensation expense from share issuance | 251 | 582 |
| &nbsp;&nbsp;&nbsp;&nbsp;Net loss on other real estate due to writedown or sale | 1754 | - |
| Changes in |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest receivable | 833 | 227 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other assets | (1336) | 3115 |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest payable and other liabilities | 3441 | (2652) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash provided by operating activities | 8203 | 846 |
| **Investing Activities** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Purchases of available-for-sale securities | (82583) | (78111) |
| &nbsp;&nbsp;&nbsp;&nbsp;Purchase of bank owned life insurance | - | (20000) |
| &nbsp;&nbsp;&nbsp;&nbsp;Proceeds from maturities and paydowns of available-for-sale securities | 25557 | 16944 |
| &nbsp;&nbsp;&nbsp;&nbsp;Proceeds from sale of available-for-sale securities | - | 49242 |
| &nbsp;&nbsp;&nbsp;&nbsp;Sale of other investments | 10423 | 29779 |
| &nbsp;&nbsp;&nbsp;&nbsp;Purchase of other investments | (9840) | (31829) |
| &nbsp;&nbsp;&nbsp;&nbsp;Net change in loans | 240219 | (15271) |
| &nbsp;&nbsp;&nbsp;&nbsp;Purchase of premises and equipment | (721) | (298) |
| &nbsp;&nbsp;&nbsp;&nbsp;Proceeds from bank owned life insurance | 19847 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;Proceeds from sale of premises and equipment | - | 26 |
| &nbsp;&nbsp;&nbsp;&nbsp;Proceeds from sale of business unit | - | 8428 |
| &nbsp;&nbsp;&nbsp;&nbsp;Proceeds from sale of real estate and other assets held for sale, net | 198 | 1097 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash provided by (used in) investing activities | $203100 | $(39993) |

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See Notes to Consolidated Financial Statements

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**Lincoln Bancorp and Subsidiaries**

**Consolidated Statements of Cash Flows (Continued)**

For the years ended December 31, 2025 and 2024

(Amounts in Thousands)

---

| | | |
|:---|:---|:---|
| | **2025** | **2024** |
| **Financing Activities** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Net (decrease) increase in deposits | $(74782) | $(72071) |
| &nbsp;&nbsp;&nbsp;&nbsp;Net change in escrow accounts | 163 | 364 |
| &nbsp;&nbsp;&nbsp;&nbsp;Proceeds from Federal Home Loan Bank advances and other debt | 211478 | 723730 |
| &nbsp;&nbsp;&nbsp;&nbsp;Repayment of Federal Home Loan Bank advances and other debt | (230988) | (684220) |
| &nbsp;&nbsp;&nbsp;&nbsp;Proceeds from sale of treasury stock | - | 842 |
| &nbsp;&nbsp;&nbsp;&nbsp;Purchase of treasury stock | (960) | (958) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash used in financing activities | (95089) | (32313) |
| **Increase (Decrease) in Cash and Cash Equivalents**  | 116214 | (71460) |
| **Cash and Cash Equivalents, Beginning of Year**  | 18062 | 89522 |
| **Cash and Cash Equivalents, End of Year**  | $134276 | $18062 |
| **Supplemental Cash Flows Information** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest paid | $47387 | $54566 |
| &nbsp;&nbsp;&nbsp;&nbsp;Income taxes paid | 40 | 20 |
| &nbsp;&nbsp;&nbsp;&nbsp;Real estate acquired in settlement of loans | 6060 | 5858 |
| &nbsp;&nbsp;&nbsp;&nbsp;Net transfers from property and equipment to other assets | - | 955 |
| &nbsp;&nbsp;&nbsp;&nbsp;Restricted cash | 4940 | 4940 |

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See Notes to Consolidated Financial Statements

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**Note 1:&nbsp;&nbsp;&nbsp;&nbsp;Nature of Operations and Summary of Significant Accounting Policies**

***Nature of Operations and Operating Segments***

Lincoln Bancorp (the "Company") is a bank holding company which owns 100% of the outstanding common stock of Lincoln Savings Bank (the "Bank"). The Bank's services are offered to individuals, businesses, governmental units and institutional customers in Iowa communities including Adel, Allison, Ankeny, Aplington, Clive, Cedar Falls, Des Moines, Garwin, Greene, Grinnell, Hudson, Lincoln, Nashua, Reinbeck, Tama, Waterloo and the surrounding areas. The Bank is actively engaged in many areas of commercial banking, including acceptance of demand, savings and time deposits; making commercial, real estate, agricultural and consumer loans; and other banking services tailored for its individual customers. The Bank also operates an embedded finance division, partnering with several corporate Fintech clients which offer payment sources and business products. The Bank's trust department administers estates, personal trusts, conservatorships, pension and profit-sharing funds along with providing other management services to customers.

***Principles of Consolidation***

The consolidated financial statements include the accounts of the Company and its wholly owned subsidiary, Lincoln Savings Bank, and its wholly owned subsidiaries, LSB Financial Services Inc and LSB Capital Management Inc. All significant intercompany balances and transactions have been eliminated in consolidation. The Company also owns 100% of Lincoln Bancorp Capital Trust II, which was formed for the purpose of issuing trust preferred securities as discussed more fully in *Note 11*. In accordance with generally accepted accounting principles (GAAP), this Trust is not included in the consolidated financial statements. This investment is accounted for under the equity method of accounting.

***Use of Estimates and Changes in Accounting Standards***

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Material estimates that are particularly susceptible to significant change relate to the determination of the allowance for credit losses, valuation of real estate acquired in connection with foreclosures or in satisfaction of loans, goodwill, and fair values of financial instruments, and valuation of deferred tax assets.

In some cases, the Company could be required to apply a new or revised standard retroactively, which would result in the recasting of our prior period financial statements.

***Cash Equivalents***

The Company considers all liquid investments with original maturities of three months or less to be cash equivalents. At December 31, 2025 and 2024, cash equivalents consisted of money market accounts with brokers. The Company is required to maintain restricted cash as swap collateral to support changes in market value of the swap. As of December 31, 2025 and 2024, the restricted cash amount was $4,940,000 and $4,940,000, respectively. At December 31, 2025, the Company's cash accounts exceeded federally insured limits by approximately $50.9 million.

***Debt Securities***

Available-for-sale (AFS) debt securities, which include any security for which the Company has no immediate plan to sell but which may be sold in the future, are recorded at fair value, with unrealized gains and losses excluded from earnings and reported in other comprehensive income (loss). Purchase premiums and discounts are recognized in interest income using the interest method over the terms of the debt securities. Gains and losses on the sale of debt securities are recorded on the trade date and are determined using the specific identification method.

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Available-for-sale debt securities in unrealized loss positions are evaluated for impairment related to credit losses at least quarterly. For available-for-sale debt securities, a decline in fair value due to credit loss results in recording an allowance for credit losses to the extent the fair value is less than the amortized cost basis. Declines in fair value that have not been reduced through an allowance for credit losses, such as declines due to changes in market interest rates, are recorded through other comprehensive income (loss), net of applicable taxes.

Impairment may result from credit deterioration of the issuer or collateral underlying the security. In performing an assessment of whether any decline in fair value is due to a credit loss, all relevant information is considered at the individual security level. Performance indicators considered related to the underlying assets include default rates, delinquency rates, percentage of nonperforming assets, debt-to-collateral ratios, third-party guarantees, current levels of subordination, vintage, geographic concentration, analyst reports and forecasts, credit ratings and other market data. In assessing whether a credit loss exists, we compare the present value of cash flows expected to be collected from the security with the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis for the security, a credit loss exists and an allowance for credit losses is recorded, limited to the amount the fair value is less than amortized cost basis. Accrued interest receivable on available-for-sale debt securities totaled $2.2 million and $2.0 million at December 31, 2025 and 2024, respectively and is included in accrued interest receivable on the consolidated balance sheet and is excluded from the estimate of credit losses.

***Equity Securities***

The Company measures equity investments (except those accounted for under the equity method of accounting or those that result in consolidation of the investee) at fair value with changes in fair value recognized in net income (loss). The Company measures equity securities without a readily determinable fair value at cost, minus impairment, if any, plus or minus changes resulting from observable price changes for the identical or similar investment. For equity securities and equity investments measured under the practicability exception, the Company performs a qualitative assessment for equity investments without readily determinable fair values considering impairment indicators to evaluate whether an impairment exists. If an impairment exists, the Company will recognize a loss based on the difference between carrying value and fair value. Gains and losses on the sale of equity securities are recorded on the trade date and are determined using the specific identification method.

During the year ended December 31, 2022, the Company entered into an agreement with an investment fund designed to help accelerate technology adoption at banks. During the year ended December 31, 2022, the Company committed up to $2 million in capital for these equity funds, however, the Company is not obligated to fund these commitments prior to a capital call. The Company contributed approximately $337,000 and $264,000 during the years ended December 31, 2025 and December 31, 2024, respectively, resulting in an equity interest of approximately $1,511,000 and $1,174,000 for the years ended December 31, 2025 and 2024, respectively, and is included in other investments on the consolidated balance sheet.

***Loans Held for Sale***

Mortgage loans originated and intended for sale in the secondary market are carried at the lower of cost or fair value in the aggregate. Net unrealized losses, if any, are recognized through a valuation allowance by charges to noninterest income. Gains and losses on loan sales are recorded in noninterest income, and direct loan origination costs and fees are deferred at origination of the loan and are recognized in noninterest income upon sale of the loan.

***Loans***

Loans that management has the intent and ability to hold for the foreseeable future or until maturity or payoffs are reported at their outstanding principal balances adjusted for unearned income, charge-offs, the allowance for credit losses, any unamortized deferred fees or costs on originated loans and unamortized premiums or discounts on purchased loans.

For loans amortized at cost, interest income is accrued based on the unpaid principal balance. Loan origination fees, net of certain direct origination costs, as well as premiums and discounts, are deferred and amortized as a level yield adjustment over the respective term of the loan.

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Accrued interest receivable on loans totaled $8.2 million and $9.2 million at December 31, 2025 and 2024, respectively and is included in accrued interest receivable on the consolidated balance sheet and is excluded from the estimate of credit losses.

The accrual of interest is discontinued at the time the loan is 90 days past due unless the credit is well-secured and in process of collection. Past-due status is based on contractual terms of the loan. In all cases, loans are placed on nonaccrual or charged off at an earlier date if collection of principal or interest is considered doubtful.

All interest accrued but not collected for loans that are placed on nonaccrual or charged off are reversed against interest income. The interest on these loans is accounted for on the cash-basis or cost-recovery method, until qualifying for return to accrual. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured.

Discounts and premiums on purchased residential real estate loans are amortized to income using the interest method over the remaining period to contractual maturity, adjusted for anticipated prepayments. Discounts and premiums on purchased consumer loans are recognized over the expected lives of the loans using methods that approximate the interest method.

***Allowance for Credit Losses***

The allowance for credit losses is an estimate of expected losses inherent within the Company's existing loans held for investment portfolio. The allowance for credit losses for loans held for investment, as reported in our consolidated balance sheet, is adjusted by a credit loss provision expense, which is reported in earnings, and reduced by the charge-off of loan amounts, net of recoveries.

The credit loss estimation process involves procedures to appropriately consider the unique characteristics of loan portfolio segments, which consist of agricultural, 1-4 family first and junior liens, commercial, and consumer lending. These segments are further disaggregated into loan classes (pools), the level at which credit risk is monitored. For each of these pools, the Company generates cash flow projections at the instrument level wherein payment expectations are adjusted for estimated prepayment speed, curtailments, time to recovery, probability of default and loss given default. The modeling of expected prepayment speeds, curtailment rates, and time to recovery are based on historical internal data.

The allowance level is influenced by loan volumes, loan credit quality, indicator migration or delinquency status, historic loss experience and other conditions influencing loss expectations, such as reasonable and supportable forecasts of economic conditions. The methodology for estimating the amount of expected credit losses reported in the allowance for credit losses has two basic components: first, a pooled component for estimate expected credit losses for pools of loans that share similar risk characteristics; and second, an asset-specific component involving individual loans that do not share risk characteristics with other loans and the measurement of expected credit losses for such individual loans. For the pooled loan component, the Company uses a discounted cash flow method to estimate expected credit losses.

*Discounted cash flow (DCF) method:* In estimating the component of the allowance for credit losses for loans that share similar risk characteristics with other loans, such loans are segregated into loan classes. Loans are designated into loan classes based on loans pooled by product types and similar risk characteristics or areas of risk concentration. In determining the allowance for credit losses, we derive an estimated credit loss assumption from a model that categories loan pools based on loan type and purpose. This model calculates an expected loss percentage for each loan class by considering the probability of default, using life-of-loan analysis periods for all loan segments, and the historical severity of loss, based on the aggregate net lifetime losses incurred per loan class. The default and severity factors used to calculate the allowance for credit losses for loans that share similar risk characteristics with other loans are adjusted for differences between the historical period used to calculated historical default and loss severity rates and expected conditions over the remaining lives of the loans in the portfolio related to: (1) lending and credit policies and procedures; (2) local and national economic business conditions that affect the collectability of the portfolio; (3) the volume and type of credit extended (4) the experience, ability, and depth of the lending and credit management (5) the volume and severity of past due, nonaccrual, modified and classified loans; (6) the quality of our loan review system and oversight by the Board of Directors and (7) the existence of, or changes in the level

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of, any concentrations of credit. Such factors are used to adjust the historical probabilities of default and severity of loss so that they reflect management expectation of future conditions based on a reasonable and supportable forecast. The Company uses regression analysis of historical internal and peer data to determine which variables are best suited to be economic variables utilized when modeling lifetime probability of default and loss given default. This analysis also determines how expected probability of default and loss given default will react to forecasted levels of the economic variables.

For all DCF models, management has determined that four quarters represents a reasonable and supportable forecast period and reverts back to a historical loss rate over eight quarters on a straight-line basis. Other internal and external indicators of economic forecasts are also considered by management when developing the forecast metrices.

*Collateral dependent financial assets:* For a loan that does not share risk characteristics with other loans, expected credit loss is measured based on net realizable value, that is, the difference between the discounted value of the expected future cash flows, based on the original effective interest rate, and the amortized cost basis of the loan. For these loans, we recognize expected credit loss equal to the amount by which the net realizable value of the loan is less than the amortized cost basis of the loan (which is net of previous charge-offs and deferred loan fees and costs), except when the loan is collateral dependent, that is, when the borrower is experiencing financial difficulty and repayment is expected to be provided substantially through the operation or sale of the collateral. In these cases, expected credit loss is measured as the difference between the amortized cost basis of the loan and the fair value of the collateral. The fair value of the collateral is adjusted for the estimated cost to sell if repayment or satisfaction of a loan is dependent on the sale (rather than only on the operation) of the collateral.

*Allowance for credit losses(ACL) on off-balance sheet credit exposures, including unfunded loan commitments:* The Company maintains a separate allowance for credit losses from off-balance-sheet credit exposures, including unfunded loan commitments, which is included in other liabilities on the consolidated balance sheet. Management estimates the amount of expected losses by calculating a commitment usage factor over the contractual period for exposures that are not unconditionally cancellable by the Company and applying the loss factors used in the ACL methodology to the results of the usage calculation to estimate the liability for credit losses related to unfunded commitments for each loan type. No credit loss estimate is reported for off-balance-sheet (OBS) credit exposures that are unconditionally cancellable by the Company, such as for undrawn amounts under such arrangements that may be drawn prior to the cancellation of the arrangement. The allowance for credit losses on OBS credit exposures is adjusted as credit loss provision expense. Categories of OBS credit exposures correspond to the loan portfolio segments described previously.

***Premises and Equipment***

Land is carried at cost. Depreciable assets are stated at cost less accumulated depreciation. Depreciation is charged to expense principally using the straight-line method.

The estimated useful lives for each major depreciable classification of premises and equipment are as follows:

Buildings and improvements 10 – 50 years <br> Furniture and equipment 3 – 10 years

***Federal Home Loan Bank Stock***

Federal Home Loan Bank (FHLB) stock is a required investment for institutions that are members of the Federal Home Loan Bank system. The required investment in the common stock is based on a predetermined formula, carried at cost and evaluated for impairment.

***Other Real Estate Owned***

Assets acquired through, or in lieu of, loan foreclosure are held for sale and are initially recorded at fair value less cost to sell at the date of foreclosure, establishing a new cost basis. Subsequent to foreclosure, valuations are periodically performed by management and the assets are carried at the lower of carrying amount or fair value less

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cost to sell. Revenue and expenses from operations and changes in the valuation allowance are included in net income (loss) or expense from foreclosed assets.

***Company-owned Life Insurance***

The Company has purchased life insurance policies on certain key executives. Company-owned life insurance is recorded at the amount that can be realized under the insurance contract at the balance sheet date, which is the cash surrender value adjusted for other charges or other amounts due that are probable at settlement.

***Goodwill and Indefinite-Lived Intangible Assets***

Goodwill and indefinite-lived intangibles are evaluated annually for impairment or more frequently if impairment indicators are present. If the implied fair value of goodwill or the fair value of the indefinite-lived intangible is lower than their carrying amounts, an impairment loss is recognized in an amount equal to the difference. The Company sold a business line in January 2024 and reduced goodwill $535,817 and other intangibles $99,833. Subsequent increases in goodwill value are not recognized in the consolidated financial statements.

***Derivatives***

The Company uses interest rate swaps as part of its interest rate risk management. FASB Accounting Standards Codification (ASC) Topic 815 establishes accounting and reporting standards for derivative instruments and hedging activities. The Company records all interest rate swaps on the balance sheet at fair value. Derivatives used as a hedge of the fair value of a recognized asset or liability are considered fair value hedges. Derivatives used to hedge the exposure to variability in expected future cash flows are considered cash flow hedges. To qualify for hedge accounting, the Company must comply with detailed rules and documentation requirements at the inception of the hedge, and hedge effectiveness is assessed at inception and periodically throughout the life of the hedging relationship.

For derivatives designated as cash flow hedges, the effective portion of changes in the fair value of the derivative is initially reported in other comprehensive income (loss) and subsequently reclassified to interest income or expense when the hedged transaction affects earnings, while the ineffective portion of changes in fair value of the derivative, if any, is recognized immediately in other noninterest income. The Company assesses the effectiveness of each hedging relationship by comparing the cumulative changes in cash flows of the derivative hedging instruments with the cumulative changes in cash flows of the designated hedged item or transaction. No component of the change in the fair value of the hedging instrument is excluded from the assessment of hedge effectiveness.

For derivatives designated as fair value hedges, changes in the fair value of derivatives along with the loss or gain on the hedged asset or liability that is attributable to the hedged risk are recorded in current period earnings.

The Company does not use derivatives for trading or speculative purposes.

***Stock-based Compensation***

Compensation cost is recognized for restricted stock awards issued to employees, based on the fair value of these awards at the date of grant. Compensation cost is recognized over the required service period, generally defined as the vesting period.

***Earnings Per Share***

Basic earnings per share is computed using the weighted average number of actual common shares outstanding during the period.

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The following table presents calculations of earnings per share:

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| | | |
|:---|:---|:---|
| | **Year Ended December 31,** | **Year Ended December 31,** |
| | **2025** | **2024** |
| Computation of weighted average number of basic shares: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Weighted average shares outstanding (basic) | 7241843 | 7159044 |
| Income (Loss) available to common shareholders (in thousands) | $(2448) | $(1395) |
| Basic earnings per share: | $(0.34) | $(0.19) |
| Computation of weighted average number of diluted shares: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Weighted average shares outstanding (diluted) | 7241843 | 7159044 |
| Income (Loss) available to common shareholders (in thousands) | $(2448) | $(1395) |
| Diluted earnings per share: | $(0.34) | $(0.19) |

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***Treasury Stock***

Common stock shares repurchased are recorded at cost. Cost of shares retired or reissued is determined using the first-in, first-out method.

***Description of Capital Stock***

The Company has authorized 100,000 shares of preferred stock, with a par value of $0.01 per share and there were no shares designated or outstanding.

Holders of our Class A Common Stock are entitled to one vote per share held on the applicable record date, while our Class B Common Stock is non-voting.

***Trust Assets***

Trust assets (other than cash deposits) held by the Bank in fiduciary or agency capacities for its customers are not included in the accompanying consolidated balance sheets since such items are not assets of the Bank.

***Transfers of Financial Assets***

Transfers of financial assets are accounted for as sales, when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when (1) the assets have been isolated from the Company—put presumptively beyond the reach of the transferor and its creditors, even in bankruptcy or other receivership, (2) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets and (3) the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity or the ability to unilaterally cause the holder to return specific assets.

***Income Taxes***

The Company accounts for income taxes in accordance with income tax accounting guidance (ASC 740, *Income Taxes*). The income tax accounting guidance results in two components of income tax expense: current and deferred. Current income tax expense reflects taxes to be paid or refunded for the current period by applying the provisions of the enacted tax law to the taxable income or excess of deductions over revenues.

The Company determines deferred income taxes using the liability (or balance sheet) method. Under this method, the net deferred tax asset or liability is based on the tax effects of the differences between the book and tax bases of assets and liabilities, and enacted changes in tax rates and laws are recognized in the period in which they occur. Deferred income tax expense results from changes in deferred tax assets and liabilities between periods. Deferred tax assets are reduced by a valuation allowance if, based on the weight of evidence available, it is more likely than not that some portion or all of a deferred tax asset will not be realized.

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Tax positions are recognized if it is more likely than not, based on the technical merits, that the tax position will be realized or sustained upon examination. The term more likely than not means a likelihood of more than 50 percent; the terms examined and upon examination also include resolution of the related appeals or litigation processes, if any. A tax position that meets the more-likely-than-not recognition threshold is initially and subsequently measured as the largest amount of tax benefit that has a greater than 50 percent likelihood of being realized upon settlement with a taxing authority that has full knowledge of all relevant information. The determination of whether or not a tax position has met the more-likely-than-not recognition threshold considers the facts, circumstances and information available at the reporting date and is subject to management's judgment. With a few exceptions, the Company is no longer subject to U.S. federal, state and local or non-U.S. income tax examinations by tax authorities for years before 2022.

The Company recognizes interest and penalties on income taxes as a component of income tax expense.

***Comprehensive Income (Loss)***

Comprehensive income (loss) consists of net loss and other comprehensive income (loss), net of applicable income taxes. Other comprehensive income (loss) includes unrealized appreciation (depreciation) on available-for-sale securities and unrealized and realized gains and losses in derivative financial instruments that qualify for cash flow hedge accounting.

***Accounting Standards Pending Adoption***

In November 2024, the FASB issued ASU No. 2024-03, *Income Statement-Reporting Comprehensive Income-Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses*. The amendments in this ASU require disclosure in the notes to the financial statements, specified information about certain costs and expenses at each interim and annual reporting period. Additionally, in January 2025, the FASB issued ASU No. 2025-01, *Income Statement-Reporting Comprehensive Income-Expense Disaggregation Disclosures (Subtopic 220-40): Clarifying the Effective Date*. This ASU amends the effective date of ASU No. 2024-03 to clarify that all public business entities are required to adopt the guidance in annual reporting periods beginning after December 15, 2026, and interim periods within annual reporting periods beginning after December 15, 2027. Early adoption of ASU No. 2024-03 is permitted. The Company is currently evaluating the impact of the ASU on the Company's consolidated financial statements.

In July 2025, the FASB issued ASU 2025-05, *Financial Instruments - Credit Losses (Topic 326) - Measurement of Credit Losses for Accounts Receivable and Contract Assets*. This ASU introduces a practical expedient that all entities are able to utilize when estimating expected credit losses on current accounts receivable and/or current contract assets arising from transactions that are accounted for under Topic 606. The amendments are effective for annual reporting periods beginning after December 15, 2025, and interim reporting periods within those annual reporting periods. The practical expedient, if elected, should be applied prospectively. The Company is currently evaluating the impact of the ASU on the Company's consolidated financial statements.

In November 2025, the FASB issued ASU No. 2025-08, *Financial Instruments-Credit Losses (Topic 326): Purchased Loans*. The ASU expands the population of acquired financial assets accounted for using the "gross-up approach" when recording the initial allowance for credit losses through an adjustment to the initial amortized cost basis. Acquired loans are deemed purchased seasoned loans and accounted for using the gross-up approach upon acquisition if criteria established by the new guidance are met. This change aims to enhance comparability, consistency and better reflect the economics of acquiring financial assets. This ASU is effective for annual reporting periods beginning after December 15, 2026 and interim reporting periods within those annual reporting periods. Early adoption is permitted. The Company is currently evaluating the impact of the ASU on the Company's consolidated financial statements.

In November 2025, the FASB issued ASU No. 2025-09, *Derivatives and Hedging (Topic 815): Hedge Accounting Improvements*. The ASU enables entities to apply hedge accounting to a greater number of highly effective economic hedges in multiple areas. The ASU expands the hedged risks permitted to be aggregated in a group of individual forecasted transactions, enabling entities to apply hedge accounting to potentially broader portfolios of forecasted transactions. The ASU is effective for public business entities for annual reporting periods

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beginning after December 15, 2026, and interim periods within those annual reporting periods. For all other entities the effective date is for annual reporting periods beginning after December 15, 2027. Early adoption is permitted. The Company is currently evaluating the impact of the ASU on the Company's consolidated financial statements.

In December 2025, the FASB issued ASU No. 2025-11, *Interim Reporting (Topic 270): Narrow-Scope Improvements*. The ASU clarifies the applicability of the interim reporting guidance, the types of interim reporting, and the form and content of interim financial statements in accordance with generally accepted accounting principles. The amendments in this ASU are effective for public business entities for interim periods within annual periods beginning after December 15, 2027. For all other entities, the amendments are effective for interim periods within annual periods beginning after December 15, 2028. Early adoption is permitted. The amendments can be applied either prospectively or retrospectively to any or all prior periods presented in the financial statements. The Company is currently evaluating the impact of the ASU on the Company's consolidated financial statements.

In December 2025, the FASB issued ASU No. 2025-12, *Codification Improvements*. The amendments in this ASU update the FASB Accounting Standards Codification for a broad range of topics arising from technical corrections, unintended application of the Codification, clarifications, and other minor improvements. The amendments in this ASU are effective for all entities for annual periods beginning after December 15, 2026, and interim periods within those annual periods. Early adoption is permitted in both interim and annual periods in which financial statements have not yet been issued or made available for issuance. An entity may elect to adopt the amendments on an issue-by-issue basis. The Company is currently evaluating the impact of the ASU on the Company's consolidated financial statements.

***Adopted Accounting Standards***

In December 2023, the FASB issued ASU 2023-09, Income Tax (Topic 740): Improvements to Income Tax Disclosures. The amendments is this ASU improve the transparency of income tax disclosures by requiring consistent categories and greater disaggregation of information in the rate reconciliations table, as well as income taxes paid disaggregated by jurisdiction. These expanded disclosures allow investors to better assess how an entity's overall operations, including the related tax risks, tax planning, and operational opportunities, affect its income tax rate and prospects for future cash flows. The updated guidance is effective for annual periods beginning after December 15, 2025, with early adoption permitted. The adoption was applied on a retrospective basis and did not have a material impact on the Company's consolidated financial statements.

On November 27, 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280) - Improvements to Reportable Segment Disclosures. Enhanced disclosures about significant segment expenses are included within this ASU. The amendments are effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, with an option to early adopt. The amendments should be applied retrospectively to all prior periods presented in the financial statements, with the segment expense categories and amounts disclosed in prior periods being based on the significant segment expense categories identified and disclosed in the period of adoption. The adoption of ASU 2023-07 did not have a material impact on the Company's consolidated financial statements.

***Revenue from Contracts with Customers***

Accounting principles (ASC 606, *Revenue from Contracts with Customers*) require that an entity recognize revenue to depict the transfer of promised goods and services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods and services. The guidance includes a five-step model to apply to revenue recognition, consisting of the following: (1) identify the contract; (2) identify the performance obligation in the contract; (3) determine the transaction price; (4) allocate the transaction price to the performance obligations; and (5) recognize revenue when or as the performance obligation is satisfied. ASC 606 does not apply to revenue associated with financial instruments, including revenue from loans and securities, as well as certain noninterest income categories, such as gains or losses associated with mortgage servicing rights and income from bank owned life insurance. Descriptions of the Company's primary revenue contracts within the scope of this revenue recognition guidance are discussed in detail below.

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<u>Trust and brokerage services fee income</u>: A contract between the Company and its customers to provide fiduciary and / or investment administration services on trust accounts and brokerage accounts in exchange for a fee. Trust services and brokerage fee income is generally based upon the month-end market value of the assets under management and the applicable fee rate, which is recognized over the period the underlying trust or brokerage account is serviced (generally monthly). Such contracts are generally cancellable at any time, with the customer subject to a pro-rated fee in the month of termination.

<u>Service charges on deposit accounts</u>: The deposit contract obligates the Company to serve as a custodian of the customer's deposited funds and generally can be terminated at will by either party. This contract permits the customer to access the funds on deposit and request additional services related to the deposit account. Service charges on deposit accounts consist of account analysis fees (net fees earned on analyzed business and public checking accounts), monthly service charges, nonsufficient fund ("NSF") charges, and other deposit account related charges. The Company's performance obligation for account analysis fees and monthly service charges is generally satisfied, and the related revenue recognized over the period in which the service is provided (typically on a monthly basis); while NSF charges and other deposit account related charges are largely transactional based, and the related revenue is recognized at the time the service is provided.

<u>Other income</u>: Other noninterest income includes several items, such as debit card income, ATM fees, merchant services income, income from our finance division, and other fee income. Debit card income is primarily comprised of interchange fees earned whenever the Company's debit cards are processed through card payment networks such as Visa. ATM fees are primarily generated when a Company cardholder uses a non-Company ATM, or a non-Company cardholder uses a Company ATM. Merchant services income mainly represents fees charged to merchants to process their debit card transactions, in addition to account management fees. The revenue recognized from our finance division consists primarily of fees earned from partnerships with several corporate Fintech clients that offer payment sources and business products. Other fee income includes revenue from processing wire transfers, cashier's checks, lock box fees, check orders, and other services. The Company's performance obligation, except for revenue recognized from the finance division, is completed and the fees are recognized as the service is provided (i.e., when the customer uses a debit card). The Company's performance obligation for revenue from the finance division is generally satisfied, and the related revenue recognized over the period in which the service is provided (typically on a monthly basis).

**Note 2:&nbsp;&nbsp;&nbsp;&nbsp;Securities**

The amortized cost and approximate fair values, together with gross unrealized gains and losses, of securities are in the following table (Amounts in Thousands):

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| | | | | |
|:---|:---|:---|:---|:---|
| | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** |
| | **Amortized Cost** | **Gross<br>Unrealized<br>Gains** | **Gross<br>Unrealized<br>Losses** | **Fair Value** |
| Debt Securities |  |  |  |  |
| Asset-backed securities | $2386 | $19 | $- | $2405 |
| Collateralized mortgage obligations | 102824 | 154 | (3618) | 99360 |
| Government-sponsored mortgage-backed securities | 49911 | 152 | (5042) | 45021 |
| State and political subdivisions | 168260 | 26 | (22274) | 146012 |
| U.S. Treasuries | 14942 | - | (703) | 14239 |
| U.S government agencies | - | - | - | - |
| Collateralized debt obligations | 22950 | 60 | (138) | 22872 |
|  | $361273 | $411 | $(31775) | $329909 |

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| | | | | |
|:---|:---|:---|:---|:---|
| | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
| | **Amortized Cost** | **Gross Unrealized<br>Gains** | **Gross Unrealized Losses** | **Fair Value** |
| Debt Securities |  |  |  |  |
| Collateralized mortgage obligations | $60163 | $- | $(4531) | $55632 |
| Government-sponsored mortgage-backed securities | 55695 | - | (7616) | 48079 |
| State and political subdivisions | 169179 | 12 | (25585) | 143606 |
| U.S. Treasuries | 14915 | - | (1354) | 13561 |
| U.S government agencies | 3000 | - | (32) | 2968 |
| Collateralized debt obligations | 1500 | - | - | 1500 |
|  | $304452 | $12 | $(39118) | $265346 |

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The amortized cost and estimated fair value of available-for-sale debt securities classified according to their contractual maturities at December 31, 2025 are shown below (Amounts in Thousands):

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| | | |
|:---|:---|:---|
| | **Amortized<br>Cost** | **Fair<br>Value** |
| U.S. government agencies, treasuries & state and political subdivisions |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Due in one year or less | $80 | $80 |
| &nbsp;&nbsp;&nbsp;&nbsp;Due after one year through five years | 26763 | 25816 |
| &nbsp;&nbsp;&nbsp;&nbsp;Due after five years through ten years | 18237 | 16427 |
| &nbsp;&nbsp;&nbsp;&nbsp;Due over ten years | 138122 | 117928 |
|  | 183202 | 160251 |
| Collateralized mortgage obligations | 102824 | 99360 |
| Government-sponsored mortgage-backed securities | 49911 | 45021 |
| Collateralized debt obligations | 22950 | 22872 |
| Asset-backed securities | 2386 | 2405 |
|  | $361273 | $329909 |

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Expected maturities will differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties.

The carrying value of debt securities pledged as collateral, to secure public deposits and for other purposes, was $139.8 million and $137.9 million at December 31, 2025 and 2024, respectively.

Gross gains of $0 and $562,900 and gross losses of $0 and $552,900 resulting from sales of available-for-sale debt securities were realized for 2025 and 2024, respectively.

Certain investments in debt securities are reported in the consolidated financial statements at an amount less than their historical cost. Total fair value of these investments at December 31, 2025 and 2024, was $275.1 million and $259.2 million, of the Company's available-for-sale debt securities portfolio. These declines primarily resulted from recent changes in market interest rates.

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The following table shows the total available-for-sale debt securities and aggregated depreciation by security type:

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| | | |
|:---|:---|:---|
| | **Number of<br>securities in a<br>loss position** | **Aggregate<br>depreciation** |
| **Available-for-sale Debt Securities** | | |
| Collateralized mortgage obligations | 21 | 4.4% |
| Government-sponsored |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;mortgage-backed securities | 22 | 14.9% |
| State and political subdivisions | 215 | 13.9% |
| U.S. Treasuries | 3 | 4.7% |
| Collateralized debt obligations | 6 | 0.9% |
|  | 267 | 10.4% |

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The following table shows the Company's investments' gross unrealized losses and fair value of the Company's investments for which an allowance for credit losses has not been recorded, aggregated by investment class and length of time that individual debt securities have been in a continuous unrealized loss position at December 31, 2025 and 2024 (Amounts in Thousands):

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Less than 12 Months** | **Less than 12 Months** | **December 31, 2025<br>12 Months or More** | **December 31, 2025<br>12 Months or More** | **Total** | **Total** |
| | **Fair Value** | **Unrealized<br>Losses** | **Fair Value** | **Unrealized<br>Losses** | **Fair Value** | **Unrealized<br>Losses** |
| **Available-for-Sale Debt Securities** | | | | | | |
| Collateralized mortgage obligations | $36022 | $(222) | $43159 | $(3396) | $79181 | $(3618) |
| Government-sponsored |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;mortgage-backed securities | - | - | 28763 | (5042) | 28763 | (5042) |
| State and political subdivisions | - | - | 138099 | (22274) | 138099 | (22274) |
| U.S. Treasuries | - | - | 14239 | (703) | 14239 | (703) |
| U.S. government agencies | - | - | - | - | - | - |
| Collateralized debt obligations | 14812 | (138) | - | - | 14812 | (138) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total temporarily impaired securities | $50834 | $(360) | $224260 | $(31415) | $275094 | $(31775) |

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As of December 31, 2025, 22 government-sponsored mortgage-backed securities and 21 collateralized mortgage obligations with unrealized losses totaling $8.7 million were held by the Company. Management evaluated the payment history of these securities and considered the implied U.S. government guarantee of these agency securities and the level of credit enhancement for non-agency securities. Based on this evaluation, management concluded that the decline in fair value was not attributable to credit losses.

As of December 31, 2025, 215 state and political subdivisions securities with total unrealized losses of $22.3 million were held by the Company. Management evaluated these securities through a process that included consideration of credit agency ratings and payment history. In addition, management evaluated securities by considering the yield spread to treasury securities and the most recent financial information available. Based on this evaluation, management concluded that the decline in fair value was not attributable to credit losses.

As of December 31, 2025, 3 U.S. treasuries and no U.S. government agencies securities with a total unrealized loss of $0.7 million were held by the Company. Management considered the explicit or implied U.S. treasury and U.S. government guarantee of these securities. Based on this evaluation, management concluded that the decline in fair value was not attributable to credit losses.

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As of December 31, 2025, 6 collateralized debt obligations with unrealized losses of $0.1 million were held by the Company. Management evaluated these securities through a process that included consideration of credit agency ratings, priority of cash flows and the amount of over-collateralization. In addition, management may evaluate securities by considering the yield spread to treasury securities and the most recent financial information available. Based on this evaluation, management concluded that the decline in fair value was not attributable to credit losses.

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Less than 12 Months** | **Less than 12 Months** | **December 31, 2024<br>12 Months or More** | **December 31, 2024<br>12 Months or More** | **Total** | **Total** |
| | **Fair Value** | **Unrealized<br>Losses** | **Fair Value** | **Unrealized<br>Losses** | **Fair Value** | **Unrealized<br>Losses** |
| **Available-for-Sale Debt Securities** | | | | | | |
| Collateralized mortgage obligations | $39547 | $(275) | $16085 | $(4256) | $55632 | $(4531) |
| Government-sponsored mortgage-backed securities | 17645 | (406) | 30434 | (7210) | 48079 | (7616) |
| State and political subdivisions | 16779 | (438) | 122167 | (25147) | 138946 | (25585) |
| U.S. Treasuries | - | - | 13561 | (1354) | 13561 | (1354) |
| U.S. government agencies | - | - | 2968 | (32) | 2968 | (32) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total temporarily impaired securities | $73971 | $(1119) | $185215 | $(37999) | $259186 | $(39118) |

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Other investments at December 31, 2025 and 2024 were as follows (Amounts in Thousands):

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| | | |
|:---|:---|:---|
| | **2025** | **2024** |
| Federal Home Loan Bank stock | $4513 | $5450 |
| Bankers Bank stock | 1072 | 1021 |
| Investment in Lincoln Bancorp Capital Trust II | 280 | 280 |
| Farmer Mac stock | 281 | 307 |
| Other | 1511 | 1174 |
|  | $7657 | $8232 |

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**Note 3:&nbsp;&nbsp;&nbsp;&nbsp;Loans and Allowance for Credit Losses**

Classes of loans at December 31, 2025 and 2024 include (Amounts in Thousands):

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| | | |
|:---|:---|:---|
| | **2025** | **2024** |
| Real Estate: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Construction - Land and commercial development | $41508 | $75425 |
| &nbsp;&nbsp;&nbsp;&nbsp;Multi-family | 179265 | 188337 |
| &nbsp;&nbsp;&nbsp;&nbsp;Commercial | 327023 | 392884 |
| &nbsp;&nbsp;&nbsp;&nbsp;1-4 Family include construction | 241626 | 279905 |
| Agricultural and Farmland | 164525 | 171345 |
| Commercial & National credit & SBA/Government guaranteed | 209522 | 302494 |
| Loans to Individuals - Other | 3487 | 4449 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total loans | 1166956 | 1414839 |
| Less: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Net deferred loan fees, premiums and discounts | 920 | 603 |
| &nbsp;&nbsp;&nbsp;&nbsp;Allowance for credit losses | 17865 | 16009 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net loans | $1148171 | $1398227 |

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The following tables present the balance in the allowance for credit losses and unfunded commitment liability based on portfolio segment as of December 31, 2025 and 2024 (Amounts in Thousands):

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| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **2025** | **2025** | **2025** | **2025** | **2025** | **2025** | **2025** | **2025** |
| | **Real Estate:<br>Construction -<br>Land** | **Real Estate:<br>Multi-family** | **Real Estate:<br>Commercial** | **Real Estate:<br>1-4 Family /<br>Construction** | **Agricultural<br>and Farmland** | **Commercial<br>National<br>credit &<br>SBA/Gov't<br>guaranteed** | **Loans to<br>Individuals -<br>Other** | **Total** |
| **Allowance for credit losses** |  |  |  |  |  |  |  |  |
| Balance, beginning of year | $1112 | $874 | $6930 | $2470 | $1003 | $3595 | $25 | $16009 |
| &nbsp;&nbsp;&nbsp;&nbsp;Provision (Credit) | 194 | 71 | 2605 | (320) | (28) | (63) | 542 | 3001 |
| &nbsp;&nbsp;&nbsp;&nbsp;Charged off | - | - | - | (4) | - | (878) | (540) | (1422) |
| &nbsp;&nbsp;&nbsp;&nbsp;Recoveries | - | - | - | 18 | - | 238 | 21 | 277 |
| Balance, end of year | $1306 | $945 | $9535 | $2164 | $975 | $2892 | $48 | $17865 |

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| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **2025** | **2025** | **2025** | **2025** | **2025** | **2025** | **2025** | **2025** |
| | **Real Estate: Construction - Land** | **Real Estate: Multi-family** | **Real Estate: Commercial** | **Real Estate: 1-4 Family / Construction** | **Agricultural and Farmland** | **Commercial, National credit & SBA/Gov't guaranteed** | **Loans to Individuals - Other** | **Total** |
| **Unfunded Commitment Liability** |  |  |  |  |  |  |  |  |
| Balance, beginning of year | $21 | $1 | $4 | $12 | $1 | $96 | $1 | $136 |
| &nbsp;&nbsp;&nbsp;&nbsp;Provision (Credit) | 228 | - | 12 | (3) | - | 263 | - | 500 |
| Balance, end of year | $249 | $1 | $16 | $9 | $1 | $359 | $1 | $636 |

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| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **2024** | **2024** | **2024** | **2024** | **2024** | **2024** | **2024** | **2024** |
| | **Real Estate:<br>Construction -<br>Land** | **Real Estate:<br>Multi-family** | **Real Estate:<br>Commercial** | **Real Estate:<br>1-4 Family /<br>Construction** | **Agricultural<br>and<br>Farmland** | **Commercial,<br>National<br>credit &<br>SBA/Gov't<br>guaranteed** | **Loans to<br>Individuals -<br>Other** | **Total** |
| **Allowance for credit losses** |  |  |  |  |  |  |  |  |
| Balance, beginning of year | $3959 | $898 | $8109 | $2869 | $962 | $4999 | $27 | $21823 |
| &nbsp;&nbsp;&nbsp;&nbsp;Provision (Credit) | 1155 | (24) | 4498 | (301) | 97 | 217 | 74 | 5716 |
| &nbsp;&nbsp;&nbsp;&nbsp;Charged off | (4002) | - | (5677) | (216) | (58) | (2624) | (97) | (12674) |
| &nbsp;&nbsp;&nbsp;&nbsp;Recoveries | - | - | - | 118 | 2 | 1003 | 21 | 1144 |
| Balance, end of year | $1112 | $874 | $6930 | $2470 | $1003 | $3595 | $25 | $16009 |

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| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **2024** | **2024** | **2024** | **2024** | **2024** | **2024** | **2024** | **2024** |
| | **Real Estate:<br>Construction -<br>Land** | **Real Estate:<br>Multi-family** | **Real Estate:<br>Commercial** | **Real Estate:<br>1-4 Family /<br>Construction** | **Agricultural<br>and<br>Farmland** | **Commercial,<br>National<br>credit &<br>SBA/Gov't<br>guaranteed** | **Loans to<br>Individuals -<br>Other** | **Total** |
| **Unfunded Commitment Liability** |  |  |  |  |  |  |  |  |
| Balance, beginning of year | $216 | $1 | $4 | $28 | $1 | $223 | $1 | $474 |
| &nbsp;&nbsp;&nbsp;&nbsp;Provision (Credit) | (195) | - | - | (16) | - | (127) | - | (338) |
| Balance, end of year | $21 | $1 | $4 | $12 | $1 | $96 | $1 | $136 |

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Net loan charge-offs were $1.1 million for the year ended December 31, 2025, a decrease of $10.4 million from the prior year net charge-offs of $11.5 million. This decrease stemmed primarily from elevated charge-offs in the year ended December 31, 2024, from a few larger commercial relationships.

***Internal Risk Categories***

Loan grades are numbered 1 through 9. Grades 1 through 6 are considered satisfactory grades. The grade of 7, or Watch, represents loans of lower quality and is considered criticized. The grades of 8, or Substandard, and 9, or Doubtful, refer to assets that are classified. The use and application of these grades by the Company will be uniform and shall conform to the Company's policy.

**Pass (1-6)** Loans in this category have enough cash flow from operations to service all obligations. They exhibit good financial strength, and collateral protection is viewed as an adequate secondary source of repayment and guarantor support a tertiary repayment source.

**Watch (7)** Loans in this category are generally adequately collateralized, but the financial performance of the borrower has shown a downturn and needs to improve in order to generate sufficient cash flow for overall performance. Loans in this category will remain at this rating for a limited time (12 – 24 months maximum) as the performance needs to improve or the loan will be downgraded to a "8" or substandard rating.

**Substandard (8)** Loans with inadequate financial condition not meeting our Company's credit standards and/or ability to meet scheduled payments. Loss is possible. Loans in this category will be transferred to nonaccrual status with interest charged off if past due 90 days or more, unless well secured and in the process of collection.

**Doubtful (9)** Loans with a weak financial condition making collection in full improbable. The possibility of principal loss is high but because of certain important and reasonably specific pending factors, full charge-off is deferred until more exact status can be determined. A partial charge-off of principal may occur to more clearly exhibit the true value of the asset. Loans in this category are on nonaccrual status and interest charged off.

Risk characteristics applicable to each segment of the loan portfolio are described as follows.

**Construction – Land and Commercial Development**–The Company provides financing for both horizontal (land development) and vertical (construction) financing, with a primary focus within our identified lending footprint. Land development financing is broad in scope, serving both commercial and residential developers. The loan policy outlines the underwriting criteria for each of these areas. These loans are generally structured with variable rates based on the Prime interest rate with loan maturities driven by the project scope, generally 12 – 18 months. Guarantor financial strength and liquidity play a vital role in underwriting these credits as collateral liquidation is generally the primary source of repayment.

**Multi-family Real Estate**-The company provides many types of multifamily real estate financing, ranging from smaller properties to larger multi building complexes, as well as standard multifamily to more urban mixed use properties. Underwriting guidelines for these loans are laid out in the loan policy, with available market data including vacancy and absorption rates used in the analysis. Project economics are stressed to ensure their ability to withstand changes in rents, expenses, and occupancy. Loan amortizations for multifamily properties range from 20 – 30 years depending on the age of the property. Interest rates for these types of properties are predominantly adjustable, with the initial fixed rate periods generally not exceeding five years.

**Commercial Real Estate**-The Company focuses on both owner and non-owner occupied commercial real estate properties. Property types included within this segment would consist of industrial, warehouse, flex, and office for example. Underwriting guidelines for these loans are documented in the loan policy. Market data, vacancy rates, lease rates and duration are some of the items used within the analysis. Loan amortizations for commercial real estate properties are generally 20 years, with adjustable interest rates.

For commercial real estate loans, the Approval is generally based on the following factors:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Sufficient cash flow to support debt repayment

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Lease terms that match or exceed the term of the loan

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Positive earnings and financial trends

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Reasonable expense rate assumptions

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Financial strength of the history of the tenants

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Value and marketability of collateral

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Financial strength and liquidity of the guarantors and sponsors

**1-4 Family Real Estate including Construction**-The Company provides many types of loans involving the purchase or refinance of real property including consumer mortgages, home construction, home improvement and small lines of credit. The loan policy addresses specific credit guidelines for each type. Many of the consumer real estate loans underwritten by the Company, other than home equity lines of credit (HELOC), conform to the underwriting requirements of Fannie Mae or other secondary market aggregators to allow the Company to resell loans in the secondary market. The Company structures most loans that will not conform to those underwriting requirements as adjustable rate mortgages that mature or adjust in one to five years, and then retains these loans in the Bank's portfolio. Servicing rights are generally not retained on the residential real estate loans sold in the secondary market except for select loans sold to the Federal Home Loan Bank MPF program. The loan policy establishes minimum appraisal and other credit guidelines. HELOC loans are included in consumer real estate loans and total $24.8 million and $23.5 million at December 31, 2025 and 2024, respectively.

**Agricultural and Farmland**-Agricultural and agricultural real estate loans are subject to underwriting standards and processes similar to commercial loans. The Company provides a wide range of agricultural loans, including lines of credit for working capital and operational purposes, and term loans for the acquisition of real estate, facilities, equipment and other purposes. Approval is generally based on the following factors:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Sufficient cash flow to support debt repayment

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Ability and stability of current management of the borrower

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Positive earnings and financial trends

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Earnings projections based on reasonable assumptions

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Financial strength of the industry and business

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Value and marketability of collateral

Collateral for agricultural loans generally includes accounts receivable, inventory (typically grain or livestock) and equipment. Collateral for agricultural real estate loans is generally real estate and improvements. The loan policy specifies approved collateral types and corresponding maximum advance percentages. The value of collateral pledged on loans typically exceeds the loan amount by a margin sufficient to absorb potential erosion of its value in the event of foreclosure and cover the loan amount plus costs incurred to convert it to cash.

The loan policy specifies maximum term limits for agricultural loans. For agricultural real estate term loans, the maximum amortization is 30 years. The loan policy includes guidelines for real estate appraisals, including minimum appraisal standards based on certain transactions. Where the purpose of the loan is to finance depreciable equipment, the term loan generally does not exceed the estimated useful life of the asset. For lines of credit, the typical maximum term is 365 days. However, longer maturities may be approved if the loan is secured by readily marketable collateral or if collateral margin is so abundant that risk is sufficiently mitigated. In addition, the Company often takes personal guarantees to help assure repayment. Loans may be made on an unsecured basis if warranted by the overall financial condition of the borrower.

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**Commercial, Shared National Credits, & SBA/Government Guaranteed**–For commercial loans, the Company focuses on small and mid-sized businesses with primary operations in transportation, warehousing and manufacturing, as well as service industry companies such as retailers and hospitality.

Collateral for commercial loans generally includes accounts receivable, inventory and equipment. The loan policy specifies approved collateral types and corresponding maximum advance percentages. The value of collateral pledged on loans typically exceeds the loan amount by a margin sufficient to absorb potential erosion of its value in the event of foreclosure and cover the loan amount plus costs incurred to convert it to cash.

The loan policy specifies maximum term limits for commercial loans. For commercial non-real estate term loans, the maximum term is 7 years. Where the purpose of the loan is to finance depreciable equipment, the term loan generally does not exceed the estimated useful life of the asset. For lines of credit, the typical maximum term is 365 days. Longer maturities may be approved if the loan is secured by readily marketable collateral.

In addition, the Company as a matter of policy takes personal guarantees to help assure repayment. Loans may be made on an unsecured basis if warranted by the overall financial condition of the borrower.

In some instances, for all loans, it may be appropriate to originate or purchase loans that are exceptions to the guidelines and limits established within the loan policy described above and below. In general, exceptions to the loan policy do not significantly deviate from the guidelines and limits established within the loan policy and, if there are exceptions, they are clearly noted as such, specifically identified in loan approval documents, and tracked for reporting purposes.

The Company also engages with the shared national credit market or leverage loan market under the advisement of a third-party asset manager. A specific Leveraged Lending Policy is established with a series of guidelines, thresholds, and parameters to guide the bank's activities in the origination and management of Leveraged Loans and risk management associated with the Leveraged Loan portfolio. The Company acquires direct assignment interests in leveraged loans only on a safe, sound, and collectible basis where current and accurate financial information on the borrower indicates a reasonable expectation the borrower has the financial ability to service and repay the debt in compliance with applicable laws, regulations, and bank policies.

**Loans to Individuals**-The Company provides many types of consumer and other loans including motor vehicle, signature loans and small personal credit lines. The loan policy addresses specific credit guidelines by consumer loan type.

For consumer real estate loans, and consumer and other loans, these large groups of smaller balance homogenous loans are collectively evaluated for impairment. The Company applies a quantitative factor based on historical charge-off experience in total for each of these segments. Accordingly, the Company generally does not separately identify individual consumer real estate loans, and/or consumer and other loans for impairment disclosures, unless such loans are the subject of a restructuring agreement due to financial difficulties of the borrower.

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The following tables present the credit risk profile of the Company's loan portfolio based on internal rating category and payment activity as of December 31, 2025 and 2024 (Amounts in Thousands):

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| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | **2025** | **2025** | **2025** | **2025** | **2025** | **2025** | **2025** |
| | **Year of Origination** | **Year of Origination** | **Year of Origination** | **Year of Origination** | **Year of Origination** | **Year of Origination** | |
| | **2025** | **2024** | **2023** | **2022** | **2021** | **Prior** |<br>**Total** |
| **Real Estate: Construction - Land** |  |  |  |  |  |  |  |
| Risk rating |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Pass | $8455 | $12851 | $1072 | $12619 | $162 | $3060 | $38219 |
| &nbsp;&nbsp;&nbsp;&nbsp;Watch | - | - | - | - | - | - | - |
| &nbsp;&nbsp;&nbsp;&nbsp;Substandard | - | - | - | 1595 | - | 1694 | 3289 |
| &nbsp;&nbsp;&nbsp;&nbsp;Doubtful | - | - | - | - | - | - | - |
| Total Real Estate: Construction - Land | $8455 | $12851 | $1072 | $14214 | $162 | $4754 | $41508 |
| Real Estate: Construction - Land |  |  |  |  |  |  |  |
| Current period gross write offs | $- | $- | $- | $- | $- | $- | $- |

---

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| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Year of Origination** | **Year of Origination** | **Year of Origination** | **Year of Origination** | **Year of Origination** | **Year of Origination** | |
| | **2025** | **2024** | **2023** | **2022** | **2021** | **Prior** |<br>**Total** |
| **Real Estate: Multi-family** |  |  |  |  |  |  |  |
| Risk rating |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Pass | $- | $12249 | $474 | $44719 | $65618 | $21645 | $144705 |
| &nbsp;&nbsp;&nbsp;&nbsp;Watch | - | - | - | 2776 | 8371 | 17429 | 28576 |
| &nbsp;&nbsp;&nbsp;&nbsp;Substandard | - | - | - | - | 5839 | 145 | 5984 |
| &nbsp;&nbsp;&nbsp;&nbsp;Doubtful | - | - | - | - | - | - | - |
| Total Real Estate: Multi-family | $- | $12249 | $474 | $47495 | $79828 | $39219 | $179265 |
| Real Estate: Multi-family |  |  |  |  |  |  |  |
| Current period gross write offs | $- | $- | $- | $- | $- | $- | $- |

---

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Year of Origination** | **Year of Origination** | **Year of Origination** | **Year of Origination** | **Year of Origination** | **Year of Origination** | |
| | **2025** | **2024** | **2023** | **2022** | **2021** | **Prior** |<br>**Total** |
| **Real Estate: Commercial** |  |  |  |  |  |  |  |
| Risk rating |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Pass | $10911 | $5856 | $18107 | $94323 | $62365 | $82390 | $273952 |
| &nbsp;&nbsp;&nbsp;&nbsp;Watch | - | - | - | 3427 | 3003 | 11622 | 18052 |
| &nbsp;&nbsp;&nbsp;&nbsp;Substandard | - | - | 1818 | 4527 | 18610 | 10064 | 35019 |
| &nbsp;&nbsp;&nbsp;&nbsp;Doubtful | - | - | - | - | - | - | - |
| Total Real Estate: Commercial | $10911 | $5856 | $19925 | $102277 | $83978 | $104076 | $327023 |
| Real Estate: Commercial |  |  |  |  |  |  |  |
| Current period gross write offs | $- | $- | $- | $- | $- | $- | $- |

---

------

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| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Year of Origination** | **Year of Origination** | **Year of Origination** | **Year of Origination** | **Year of Origination** | **Year of Origination** | |
| | **2025** | **2024** | **2023** | **2022** | **2021** | **Prior** |<br>**Total** |
| **Agricultural and Farmland** |  |  |  |  |  |  |  |
| Risk rating |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Pass | $20532 | $15388 | $13674 | $27318 | $23237 | $64361 | $164510 |
| &nbsp;&nbsp;&nbsp;&nbsp;Watch | - | - | - | - | - | 15 | 15 |
| &nbsp;&nbsp;&nbsp;&nbsp;Substandard | - | - | - | - | - | - | - |
| &nbsp;&nbsp;&nbsp;&nbsp;Doubtful | - | - | - | - | - | - | - |
| Total Agricultural and Farmland | $20532 | $15388 | $13674 | $27318 | $23237 | $64376 | $164525 |
| Agricultural and Farmland |  |  |  |  |  |  |  |
| Current period gross write offs | $- | $- | $- | $- | $- | $- | $- |

---

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Year of Origination** | **Year of Origination** | **Year of Origination** | **Year of Origination** | **Year of Origination** | **Year of Origination** | |
| | **2025** | **2024** | **2023** | **2022** | **2021** | **Prior** |<br>**Total** |
| **Commercial, National credit & SBA/Gov't guaranteed** |  |  |  |  |  |  |  |
| Risk rating |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Pass | $42410 | $48095 | $32596 | $33304 | $9344 | $29515 | $195264 |
| &nbsp;&nbsp;&nbsp;&nbsp;Watch | 1471 | 521 | 2510 | 1162 | 485 | 987 | 7136 |
| &nbsp;&nbsp;&nbsp;&nbsp;Substandard | - | 151 | 2227 | 2922 | 137 | 938 | 6375 |
| &nbsp;&nbsp;&nbsp;&nbsp;Doubtful | - | - | 746 | - | - | 1 | 747 |
| Total Commercial, National credit & SBA/ Gov't guaranteed | $43881 | $48767 | $38079 | $37388 | $9966 | $31441 | $209522 |
| Commercial, National credit & SBA/Gov't guaranteed |  |  |  |  |  |  |  |
| Current period gross write offs | $- | $- | $- | $62 | $816 | $- | $878 |

---

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| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Year of Origination** | **Year of Origination** | **Year of Origination** | **Year of Origination** | **Year of Origination** | **Year of Origination** | |
| | **2025** | **2024** | **2023** | **2022** | **2021** | **Prior** |<br>**Total** |
| **Real Estate: 1-4 Family / Construction** |  |  |  |  |  |  |  |
| Payment performance |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Performing | $22063 | $39841 | $28828 | $80395 | $18732 | $50603 | $240462 |
| &nbsp;&nbsp;&nbsp;&nbsp;Nonperforming | 214 | 334 | - | 170 | 57 | 389 | 1164 |
| Total Real Estate: 1-4 Family / Construction | $22277 | $40175 | $28828 | $80565 | $18789 | $50992 | $241626 |
| Real Estate: 1-4 Family / Construction |  |  |  |  |  |  |  |
| Current period gross write offs | $- | $- | $- | $- | $- | $4 | $4 |

---

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| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Year of Origination** | **Year of Origination** | **Year of Origination** | **Year of Origination** | **Year of Origination** | **Year of Origination** | |
| | **2025** | **2024** | **2023** | **2022** | **2021** | **Prior** |<br>**Total** |
| **Loans to Individuals - Other** |  |  |  |  |  |  |  |
| Payment performance |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Performing | $1130 | $774 | $533 | $374 | $55 | $610 | $3476 |
| &nbsp;&nbsp;&nbsp;&nbsp;Nonperforming | - | - | 2 | 9 | - | - | 11 |
| Total Loans to Individuals - Other | $1130 | $774 | $535 | $383 | $55 | $610 | $3487 |
| Loans to Individuals - Other |  |  |  |  |  |  |  |
| Current period gross write offs | $530 | $- | $5 | $2 | $1 | $2 | $540 |

---

------

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| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | **2025** | **2025** | **2025** | **2025** | **2025** | **2025** | |
| | **Year of Origination** | **Year of Origination** | **Year of Origination** | **Year of Origination** | **Year of Origination** | **Year of Origination** | |
| | **2025** | **2024** | **2023** | **2022** | **2021** | **Prior** |<br>**Total** |
| **All Loan Segments** |  |  |  |  |  |  |  |
| Risk rating |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pass | $82308 | $94439 | $65923 | $212283 | $160726 | $200971 | $816650 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Watch | 1471 | 521 | 2510 | 7365 | 11859 | 30053 | 53779 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Substandard | - | 151 | 4045 | 9044 | 24586 | 12841 | 50667 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Doubtful | - | - | 746 | - | - | 1 | 747 |
|  | $83779 | $95111 | $73224 | $228692 | $197171 | $243866 | 921843 |
| Payment performance |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Performing | $23193 | $40615 | $29361 | $80769 | $18787 | $51213 | $243938 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Nonperforming | 214 | 334 | 2 | 179 | 57 | 389 | 1175 |
|  | $23407 | $40949 | $29363 | $80948 | $18844 | $51602 | $245113 |
| Total Loans by Year of Origination | $107186 | $136060 | $102587 | $309640 | $216015 | $295468 | $1166956 |

---

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| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | **2024** | **2024** | **2024** | **2024** | **2024** | **2024** | |
| | **Year of Origination** | **Year of Origination** | **Year of Origination** | **Year of Origination** | **Year of Origination** | **Year of Origination** | |
| | **2024** | **2023** | **2022** | **2021** | **2020** | **Prior** |<br>**Total** |
| **Real Estate: Construction - Land** |  |  |  |  |  |  |  |
| Risk rating |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Pass | $13196 | $5125 | $35472 | $176 | $836 | $3004 | $57809 |
| &nbsp;&nbsp;&nbsp;&nbsp;Watch | - | - | 1671 | - | 1755 | 7743 | 11169 |
| &nbsp;&nbsp;&nbsp;&nbsp;Substandard | - | 62 | 385 | - | - | - | 447 |
| &nbsp;&nbsp;&nbsp;&nbsp;Doubtful | - | - | - | 6000 | - | - | 6000 |
| Total Real Estate: Construction - Land | $13196 | $5187 | $37528 | $6176 | $2591 | $10747 | $75425 |
| Real Estate: Construction - Land |  |  |  |  |  |  |  |
| Current period gross write offs | $- | $- | $- | $4002 | $- | $- | $4002 |

---

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| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Year of Origination** | **Year of Origination** | **Year of Origination** | **Year of Origination** | **Year of Origination** | **Year of Origination** | |
| | **2024** | **2023** | **2022** | **2021** | **2020** | **Prior** |<br>**Total** |
| **Real Estate: Multi-family** |  |  |  |  |  |  |  |
| Risk rating |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Pass | $12881 | $2492 | $34400 | $87333 | $18764 | $16332 | $172202 |
| &nbsp;&nbsp;&nbsp;&nbsp;Watch | - | - | - | - | 4745 | 5460 | 10205 |
| &nbsp;&nbsp;&nbsp;&nbsp;Substandard | - | - | - | 5789 | - | 141 | 5930 |
| &nbsp;&nbsp;&nbsp;&nbsp;Doubtful | - | - | - | - | - | - | - |
| Total Real Estate: Multi-family | $12881 | $2492 | $34400 | $93122 | $23509 | $21933 | $188337 |
| Real Estate: Multi-family |  |  |  |  |  |  |  |
| Current period gross write offs | $- | $- | $- | $- | $- | $- | $- |

---

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| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Year of Origination** | **Year of Origination** | **Year of Origination** | **Year of Origination** | **Year of Origination** | **Year of Origination** | |
| | **2024** | **2023** | **2022** | **2021** | **2020** | **Prior** |<br>**Total** |
| **Real Estate: Commercial** |  |  |  |  |  |  |  |
| Risk rating |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Pass | $7012 | $25330 | $129006 | $77786 | $24727 | $84215 | $348076 |
| &nbsp;&nbsp;&nbsp;&nbsp;Watch | - | 471 | 1980 | 2095 | 2089 | 8391 | 15026 |
| &nbsp;&nbsp;&nbsp;&nbsp;Substandard | - | 1871 | 4589 | 14688 | - | 8634 | 29782 |
| &nbsp;&nbsp;&nbsp;&nbsp;Doubtful | - | - | - | - | - | - | - |
| Total Real Estate: Commercial | $7012 | $27672 | $135575 | $94569 | $26816 | $101240 | $392884 |
| Real Estate: Commercial |  |  |  |  |  |  |  |
| Current period gross write offs | $- | $- | $2483 | $406 | $133 | $2655 | $5677 |

---

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| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Year of Origination** | **Year of Origination** | **Year of Origination** | **Year of Origination** | **Year of Origination** | **Year of Origination** | |
| | **2024** | **2023** | **2022** | **2021** | **2020** | **Prior** |<br>**Total** |
| **Agricultural and Farmland** |  |  |  |  |  |  |  |
| Risk rating |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Pass | $20671 | $18061 | $32844 | $24979 | $7555 | $67207 | $171317 |
| &nbsp;&nbsp;&nbsp;&nbsp;Watch | - | - | - | - | - | 28 | 28 |
| &nbsp;&nbsp;&nbsp;&nbsp;Substandard | - | - | - | - | - | - | - |
| &nbsp;&nbsp;&nbsp;&nbsp;Doubtful | - | - | - | - | - | - | - |
| Total Agricultural and Farmland | $20671 | $18061 | $32844 | $24979 | $7555 | $67235 | $171345 |
| Agricultural and Farmland |  |  |  |  |  |  |  |
| Current period gross write offs | $- | $58 | $- | $- | $- | $- | $58 |

---

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| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Year of Origination** | **Year of Origination** | **Year of Origination** | **Year of Origination** | **Year of Origination** | **Year of Origination** | |
| | **2024** | **2023** | **2022** | **2021** | **2020** | **Prior** |<br>**Total** |
| **Commercial, National credit & SBA/Gov't guaranteed** |  |  |  |  |  |  |  |
| Risk rating |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Pass | $74146 | $69451 | $69048 | $41006 | $3109 | $35621 | $292381 |
| &nbsp;&nbsp;&nbsp;&nbsp;Watch | 169 | 1986 | 713 | 677 | 123 | 112 | 3780 |
| &nbsp;&nbsp;&nbsp;&nbsp;Substandard | 171 | 364 | 4468 | 48 | - | 312 | 5363 |
| &nbsp;&nbsp;&nbsp;&nbsp;Doubtful | - | 950 | - | - | 20 | - | 970 |
| Total Commercial, National credit & SBA/ Gov't guaranteed | $74486 | $72751 | $74229 | $41731 | $3252 | $36045 | $302494 |
| Commercial, National credit & SBA/Gov't guaranteed |  |  |  |  |  |  |  |
| Current period gross write offs | $- | $670 | $396 | $353 | $167 | $1038 | $2624 |

---

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| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Year of Origination** | **Year of Origination** | **Year of Origination** | **Year of Origination** | **Year of Origination** | **Year of Origination** | |
| | **2024** | **2023** | **2022** | **2021** | **2020** | **Prior** |<br>**Total** |
| **Real Estate: 1-4 Family / Construction** |  |  |  |  |  |  |  |
| Payment performance |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Performing | $75265 | $38597 | $93851 | $21958 | $10929 | $38227 | $278827 |
| &nbsp;&nbsp;&nbsp;&nbsp;Nonperforming | - | - | 571 | - | - | 507 | 1078 |
| Total Real Estate: 1-4 Family / Construction | $75265 | $38597 | $94422 | $21958 | $10929 | $38734 | $279905 |
| Real Estate: 1-4 Family / Construction |  |  |  |  |  |  |  |
| Current period gross write offs | $- | $- | $44 | $71 | $25 | $76 | $216 |

---

------

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Year of Origination** | **Year of Origination** | **Year of Origination** | **Year of Origination** | **Year of Origination** | **Year of Origination** | |
| | **2024** | **2023** | **2022** | **2021** | **2020** | **Prior** |<br>**Total** |
| **Loans to Individuals - Other** |  |  |  |  |  |  |  |
| Payment performance |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Performing | $1895 | $985 | $598 | $188 | $306 | $472 | $4444 |
| &nbsp;&nbsp;&nbsp;&nbsp;Nonperforming | - | 5 | - | - | - | - | 5 |
| Total Loans to Individuals - Other | $1895 | $990 | $598 | $188 | $306 | $472 | $4449 |
| Loans to Individuals - Other |  |  |  |  |  |  |  |
| Current period gross write offs | $96 | $- | $- | $- | $- | $1 | $97 |

---

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| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | **2024<br>Year of Origination** | **2024<br>Year of Origination** | **2024<br>Year of Origination** | **2024<br>Year of Origination** | **2024<br>Year of Origination** | **2024<br>Year of Origination** | |
| | **2024** | **2023** | **2022** | **2021** | **2020** | **Prior** |<br>**Total** |
| **All Loan Segments** |  |  |  |  |  |  |  |
| Risk rating |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Pass | $127906 | $120459 | $300769 | $231280 | $54991 | $206380 | $1041785 |
| &nbsp;&nbsp;&nbsp;&nbsp;Watch | 169 | 2457 | 4364 | 2772 | 8712 | 21734 | 40208 |
| &nbsp;&nbsp;&nbsp;&nbsp;Substandard | 171 | 2297 | 9442 | 20525 | - | 9087 | 41522 |
| &nbsp;&nbsp;&nbsp;&nbsp;Doubtful | - | 950 | - | 6000 | 20 | - | 6970 |
|  | $128246 | $126163 | $314575 | $260577 | $63723 | $237201 | $1130485 |
| Payment performance |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Performing | $77160 | $39582 | $94449 | $22146 | $11235 | $38699 | $283271 |
| &nbsp;&nbsp;&nbsp;&nbsp;Nonperforming | - | 5 | 571 | - | - | 507 | 1083 |
|  | $77160 | $39587 | $95020 | $22146 | $11235 | $39206 | $284354 |
| Total Loans by Year of Origination | $205406 | $165750 | $409595 | $282723 | $74958 | $276407 | $1414839 |

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Performing loans are those which are accruing and less than 90 days past due. Nonperforming loans are those on nonaccrual, accruing loans that are greater than or equal to 90 days past due, and those with modifications for borrowers experiencing financial difficulties.

The Company evaluates the loan risk grading system definitions and allowance for credit loss methodology on an ongoing basis.

The following tables present the Company's loan portfolio aging analysis of the recorded investment in loans as of December 31, 2025 and 2024 (Amounts in Thousands):

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| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **2025** | **2025** | **2025** | **2025** | **2025** | **2025** | **2025** | **2025** |
| | **30-59 Days<br>Past Due** | **60-89 Days<br>Past Due** | **Total Loans<br>> 90 Days &<br>Accruing** | **Total Past<br>Due** | **Nonaccrual<br>with<br>Allowance<br>for Credit<br>Loss** | **Nonaccrual<br>With No<br>Allowance for<br>Credit Loss** | **Current** | **Total Loans<br>Receivable** |
| Real Estate: Construction - Land | $- | $- | $- | $- | $1595 | $1694 | $38219 | $41508 |
| Real Estate: Multi-family | - | - | - | - | - | 145 | 179120 | 179265 |
| Real Estate: Commercial | - | - | - | - | 16865 | 8654 | 301504 | 327023 |
| Real Estate: 1-4 Family / Construction | 635 | 1446 | 32 | 2113 | 316 | 816 | 238381 | 241626 |
| Agricultural and Farmland | - | - | - | - | - | - | 164525 | 164525 |
| Commercial, National credit & SBA/Gov't guaranteed | 939 | 843 | - | 1782 | 2829 | 3542 | 201369 | 209522 |
| Loans to Individuals - Other | 1 | - | - | 1 | 11 | - | 3475 | 3487 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total | $1575 | $2289 | $32 | $3896 | $21616 | $14851 | $1126593 | $1166956 |

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| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **2024** | **2024** | **2024** | **2024** | **2024** | **2024** | **2024** | **2024** |
| | **30-59 Days<br>Past Due** | **60-89 Days<br>Past Due** | **Total Loans<br>> 90 Days<br>& Accruing** | **Total Past<br>Due** | **Nonaccrual<br>with<br>Allowance<br>for Credit<br>Loss** | **Nonaccrual<br>With No<br>Allowance for<br>Credit Loss** | **Current** | **Total Loans<br>Receivable** |
| Real Estate: Construction - Land | $- | $- | $- | $- | $- | $6000 | $69425 | $75425 |
| Real Estate: Multi-family | - | - | - | - | - | 141 | 188196 | 188337 |
| Real Estate: Commercial | - | - | - | - | - | 382 | 392502 | 392884 |
| Real Estate: 1-4 Family / Construction | 3214 | 2394 | 302 | 5910 | 815 | 263 | 272917 | 279905 |
| Agricultural and Farmland | - | - | - | - | - | - | 171345 | 171345 |
| Commercial, National credit & SBA/Gov't guaranteed | 670 | 1697 | - | 2367 | 1132 | 3331 | 295664 | 302494 |
| Loans to Individuals - Other | 33 | 4 | - | 37 | 5 | - | 4407 | 4449 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total | $3917 | $4095 | $302 | $8314 | $1952 | $10117 | $1394456 | $1414839 |

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The following table presents the amortized cost basis of collateral dependent loans by class of loans as of December 31, 2025 and 2024 (Amounts in Thousands):

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| | | | |
|:---|:---|:---|:---|
| | **2025** | **2025** | **2025** |
| | **Real<br>Estate** | **Equipment** | **Total** |
| Real Estate: Construction - Land | $3289 | $- | $3289 |
| Real Estate: Multi-family | 212 | - | 212 |
| Real Estate: Commercial | 4359 | - | 4359 |
| Real Estate: 1-4 Family / Construction | 4976 | 895 | 5871 |
| Commercial, National credit & SBA/Gov't guaranteed | 3958 | 3308 | 7266 |
| Loans to Individuals - Other | - | - | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total | $16794 | $4203 | $20997 |

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| | | | |
|:---|:---|:---|:---|
| | **2024** | **2024** | **2024** |
| | **Real<br>Estate** | **Equipment** | **Total** |
| Real Estate: Construction - Land | $9425 | $- | $9425 |
| Real Estate: Multi-family | 5930 | - | 5930 |
| Real Estate: Commercial | 2477 | - | 2477 |
| Real Estate: 1-4 Family / Construction | 1994 | - | 1994 |
| Commercial, National credit & SBA/Gov't guaranteed | 4597 | 831 | 5428 |
| Loans to Individuals - Other | - | 3 | 3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total | $24423 | $834 | $25257 |

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The following table presents the amortized cost basis of loans at December 31, 2025 and 2024 that were both experiencing financial difficulty and modified during the year ended December 31, 2025 and 2024, by class and by type of modification (Amounts in Thousands):

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| | | | | |
|:---|:---|:---|:---|:---|
| | **2025** | **2025** | **2025** | **2025** |
| | **Interest<br>Only<br>Payment<br>Extension** | **Payment<br>Delay** | **Term<br>Extension** | **Total Class of<br>Financing<br>Receivable** |
| Real Estate: Multifamily | $- | $- | $- | $- |
| Real Estate: 1-4 Family / Construction | 1725 | 170 | 1279 | 3174 |
| Commercial, National credit & SBA/Gov't guaranteed | 573 | - | 1317 | 1890 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total | $2298 | $170 | $2596 | $5064 |

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| | | | | |
|:---|:---|:---|:---|:---|
| | **2024** | **2024** | **2024** | **2024** |
| | **Interest<br>Only<br>Payment<br>Extension** | **Payment<br>Delay** | **Term<br>Extension** | **Total Class of<br>Financing<br>Receivable** |
| Real Estate: Multifamily | $- | $- | $5788 | $5788 |
| Real Estate: 1-4 Family / Construction | - | - | - | - |
| Commercial, National credit & SBA/Gov't guaranteed | 194 | - | 291 | 485 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total | $194 | $- | $6079 | $6273 |

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The following tables describes the financial effect of the modifications made to borrowers experiencing financial difficulty of loans at December 31, 2025 and 2024 (Amounts in Thousands):

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| | |
|:---|:---|
| | **2025** |
| | **Weighted - Average Term Extension (in years)** |
| Real Estate: Multifamily | 0.00 |
| Real Estate: 1-4 Family / Construction | 0.30 |
| Commercial, National credit & SBA/Gov't guaranteed | 0.92 |

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| | |
|:---|:---|
| | **2024** |
| | **Weighted - Average Term Extension (in years)** |
| Real Estate: Multifamily | 0.83 |
| Real Estate: 1-4 Family / Construction | 0.00 |
| Commercial, National credit & SBA/Gov't guaranteed | 0.50 |

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Upon the Company's determination that a modified loan (or portion of a loan) has subsequently been deemed uncollectible, the loan (or a portion of the loan) is written off. Therefore, the amortized cost basis of the loan is reduced by the uncollectible amount and the allowance for credit losses is adjusted by the same amount.

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The following table provides the amortized cost basis of loans that experienced a payment default during the period and were modified in the 12 months before default to borrowers experiencing financial difficulty at December 31, 2025 and 2024 (Amounts in Thousands):

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| | | | |
|:---|:---|:---|:---|
| | **2025** | **2025** | **2025** |
| | **Interest Only<br>Payment Extension** | **Payment Delay** | **Term Extension** |
| Commercial, National credit & SBA/Gov't guaranteed | $315 | $- | $- |
|  | $315 | $- | $- |

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| | | | |
|:---|:---|:---|:---|
| | **2024** | **2024** | **2024** |
| | **Interest Only<br>Payment Extension** | **Payment Delay** | **Term Extension** |
| Commercial, National credit & SBA/Gov't guaranteed | $- | $- | $291 |
|  | $- | $- | $291 |

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The Company closely monitors the performance of the loans that are modified to borrowers experiencing financial difficulty to understand the effectiveness of its modification efforts. The following table depicts the performance of loans that have been modified in the last 12 months at December 31, 2025 and 2024 (Amounts in Thousands):

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| | | |
|:---|:---|:---|
| | **2025** | **2025** |
| | **Current** | **30-89 Days Past Due** |
| Real Estate: Multifamily | $- | $- |
| Real Estate: 1-4 Family / Construction | 3174 | - |
| Commercial, National credit & SBA/Gov't guaranteed | 1575 | 315 |
|  | $4749 | $315 |

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| | | |
|:---|:---|:---|
| | **2024** | **2024** |
| | **Current** | **90+ Days Past Due** |
| Real Estate: Multifamily | $5788 | $- |
| Real Estate: 1-4 Family / Construction | - | - |
| Commercial, National credit & SBA/Gov't guaranteed | 194 | 291 |
|  | $5982 | $291 |

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Loans serviced for others include certain USDA and SBA commercial loans and other commercial loan participations, as well as certain consumer real estate loans. Loans sold and serviced for others totaled $174.1 million and $196.0 million at December 31, 2025 and 2024, respectively. These amounts are not included in the accompanying consolidated balance sheet.

In the course of conducting the bank activities of originating SBA loans and selling those loans in the secondary market, various representations and warranties are made to the purchasers of the SBA loans. Under the representations and warranties, failure by the Company to comply with the underwriting standards and eligibility requirements could result in the Company being required to repurchase the SBA loan or to reimburse the investor for losses incurred (i.e. make whole requests) if such failure cannot be cured by the Company within the specified period following discovery. During the years ended December 31, 2025, and 2024, no SBA loans were repurchased as a result of underwriting standard exceptions.

At December 31, 2025 and 2024, the Company had reserved $1,290,800 and $955,300, respectively, for probable losses from representation and warranty obligations. The reserve is included in other liabilities and is

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based on the Company's repurchase and loss trends, and quantitative and qualitative factors that may result in anticipated losses different than historical loss trends, including loan vintage, underwriting characteristics and macroeconomic trends.

At December 31, 2025 and December 31, 2024, the Company had five consumer loans totaling $517,062 and one consumer real estate loan in the process of foreclosure for $39,778, respectively.

At December 31, 2025 and 2024, the Company had no 1-4 Family real estate properties in Other Real Estate.

The following table presents information regarding participation loans purchased and sold during the years ended December 31, 2025 and 2024 (Amounts in Thousands):

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| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **2025** | **2025** | **2025** | **2025** | **2025** | **2025** | **2025** | **2025** |
| | **Real Estate:<br>Construction<br>- Land** | **Real Estate:<br>Multi-family** | **Real Estate:<br>Commercial** | **Real Estate:<br>1-4 Family /<br>Construction** | **Agricultural<br>and<br>Farmland** | **Commercial,<br>National<br>credit &<br>SBA/Gov't<br>guaranteed** | **Loans to<br>Individuals -<br>Other** | **Total** |
| Purchases | $- | $- | $- | $- | $- | $3240 | $- | $3240 |
| Sales | 1649 | - | - | - | - | 3623 | - | 5272 |

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| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **2024** | **2024** | **2024** | **2024** | **2024** | **2024** | **2024** | **2024** |
| | **Real Estate:<br>Construction<br>- Land** | **Real Estate:<br>Multi-family** | **Real Estate:<br>Commercial** | **Real Estate:<br>1-4 Family /<br>Construction** | **Agricultural<br>and<br>Farmland** | **Commercial,<br>National<br>credit &<br>SBA/Gov't<br>guaranteed** | **Loans to<br>Individuals -<br>Other** | **Total** |
| Purchases | $- | $- | $- | $- | $- | $4123 | $- | $4123 |
| Sales | 1535 | - | 1564 | 6968 | - | 13085 | - | 23152 |

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**Note 4:&nbsp;&nbsp;&nbsp;&nbsp;Premises and Equipment and Leases**

Major classifications of premises and equipment, stated at cost, are as follows (Amounts in Thousands):

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| | | |
|:---|:---|:---|
| | **2025** | **2024** |
| Land | $4026 | $4026 |
| Buildings and improvements | 50433 | 50198 |
| Furniture and equipment | 18290 | 17922 |
|  | 72749 | 72146 |
| Less accumulated depreciation | 33077 | 30820 |
| &nbsp;&nbsp;&nbsp;&nbsp;Net premises and equipment | $39672 | $41326 |

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Included in occupancy and furniture, equipment and software expense is depreciation expense of $2.3 million and $2.5 million for the years ended December 31, 2025 and 2024.

***Leases***

The Company accounts for its operating leases in accordance with ASC 842, Leases, which requires lessees to record almost all leases on the balance sheet as a right-of-use ("ROU") asset and lease liability. The Company accounts for lease and non-lease components in contracts in which the Company is a lessee as a single lease component and excludes leases having an original term of 12 months or less and no option to purchase the underlying asset.

The Company has a lease agreement in which it is the lessee, with lease terms exceeding twelve months, for IT equipment. Operating right-of-use assets are included in the other assets line of the consolidated balance sheet and operating lease liabilities are included in the other liabilities line of the consolidated balance sheet.

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These amounts were determined based on the present value of remaining minimum lease payments, discounted using the Company's incremental borrowing rate as of the date of adoption. The discount rate utilized was the Bankers Bank or FHLB Bank borrowing rate for the term corresponding to the expected term of the lease. As of December 31, 2025, the remaining expected lease terms range from 2.33 years to 6.50 years with a weighted average lease term of 5.68 years and a weighted-average discount rate of 4.15%. As of December 31, 2024, the remaining expected lease terms range from 0 years to 3.33 years, with a weighted average lease term of 3.33 years and a weighted-average discount rate of 4.04%.

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| | | |
|:---|:---|:---|
| | **At or For the Year Ended December 31, 2025 (In Thousands)** | **At or For the Year Ended December 31, 2024 (In Thousands)** |
| **Consolidated Balance Sheet** | | |
| &nbsp;&nbsp;&nbsp;&nbsp;Operating leases right of use asset | $649 | $205 |
| &nbsp;&nbsp;&nbsp;&nbsp;Operating leases liability | 663 | 212 |
| **Consolidated Statement of Income (Loss)** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Operating lease costs classified as occupancy and equipment expense (includes short-term lease costs and amortization of right of use asset) | $136 | $78 |
| **Supplemental Cash Flow Information** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Cash paid for amounts included in the measurement of lease liabilities: |  |  |
| &nbsp;&nbsp;Operating cash flows from operating leases | $109 | $68 |

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For the years ended December 31, 2025 and 2024, lease expense was $135,972 and $77,578, respectively. At December 31, 2025 future expected lease payments for leases with terms exceeding one year were as follows (Amounts in Thousands):

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| | |
|:---|:---|
| Future lease payments expected: |  |
| &nbsp;&nbsp;&nbsp;&nbsp;2026 | 148 |
| &nbsp;&nbsp;&nbsp;&nbsp;2027 | 149 |
| &nbsp;&nbsp;&nbsp;&nbsp;2028 | 112 |
| &nbsp;&nbsp;&nbsp;&nbsp;2029 | 95 |
| &nbsp;&nbsp;&nbsp;&nbsp;2030 | 96 |
| Thereafter | 148 |
| Less interest portion of lease payments | (85) |
| Lease liability | $663 |

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**Note 5:&nbsp;&nbsp;&nbsp;&nbsp;Derivative Financial Instruments**

In the normal course of business, the Company uses various derivative financial instruments to manage its interest rate risk and market risks in accommodating the needs of its customers. These instruments carry varying degrees of credit, interest rate and market or liquidity risks. Derivative instruments are recognized as either assets or liabilities in the accompanying consolidated financial statements and are measured at fair value.

***Fair Value Hedges***

For derivative instruments that are designated and qualify as a fair value hedge, the change in the fair value of the derivative as well as the offsetting change in the fair value of the hedged item attributable to the hedged risks are recognized in current earnings.

Interest rate swap agreements are entered into to reduce the exposure to changes in the fair value of fixed-rate municipal securities in both individual fair value hedges and a portfolio fair value hedge.

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The change in fair value of the interest rate swap agreement and the underlying municipal investment securities are recorded as gains or losses in interest income from non-taxable investment securities. The notional amounts of the municipal investment securities being hedged were $30.9 million at December 31, 2025 and 2024, respectively. Beginning in 2024, interest rate swaps with notional amounts of $100.0 million at December 31, 2025 and 2024, respectively, were designated as a fair value hedge of a layer of a closed portfolio of callable municipal investment securities.

As of December 31, 2025 and 2024, the following amounts were recorded on the balance sheet related to cumulative-basis adjustments for fair value hedges (Amounts in Thousands):

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Carrying amount of the<br>hedged assets** | **Carrying amount of the<br>hedged assets** | **Cumulative amount of fair<br>value hedging adjustment<br>included in the carrying<br>amount of the hedged assets** | **Cumulative amount of fair<br>value hedging adjustment<br>included in the carrying<br>amount of the hedged assets** |
| | **2025** | **2024** | **2025** | **2024** |
| **Line item in the consolidated balance sheet in which the hedged item is included** |  |  |  |  |
| Securities available-for-sale <sup>(A)</sup> | $158048 | $158179 | $2106 | $4975 |

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_________________

(A)For 2025 and 2024, the carrying amount of hedged assets includes the amortized cost basis of closed portfolios used to designate hedging relationships in which the hedged item is the portfolio layer expected to be remaining at the end of the hedging relationship. The carrying amount of the portfolio layer designated as the hedged item was $127,128.

***Cash Flow Hedges***

As a strategy to manage the risks of increasing funding costs, the Company entered into multiple forward-starting interest rate swap agreements to effectively convert the repricing of the rollover of short-term debt into fixed rate debt. The short-term debt, in the form of FHLB advances or brokered certificates of deposit, will be renewed at each three-month interval through maturity at prevailing market rates. The underlying debt instruments have no credit, price or interest rate risk once renewed. The swap agreements provide for the Company to receive interest from the counterparty at compound Secured Overnight Funding Rate (SOFR) and to pay interest to the counterparty at a fixed rate of between 3.24% and 4.11% on notional amounts of $60.0 million and $90.0 million at December 31, 2025 and 2024, respectively. Under the agreement, the Company pays or receives the net interest amount quarterly, with the quarterly settlements included in interest expense.

The company executed forward-starting interest rate swap transactions in October 2023 to effectively convert $30 million of variable rate debt to fixed rate debt with an effective date of October 2023 and an expiration date of October 2026. In January 2025, the bank exercised its option to unwind the swaps for a net termination loss of $257,000; and paid off the related hedged items. For accounting purposes, these swap transactions were designated as a cash flow hedge of changes in cash flows attributable to changes in SOFR, the benchmark interest rate being hedged, associated with the interest payments made on the amount of the Bank's debt principal.

The change in fair value of the derivative is reported as a component of other comprehensive income and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings.

The following table presents the fair value of derivative instruments as of December 31, 2025 and 2024 (Amounts in Thousands):

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| | | |
|:---|:---|:---|
| | **Fair Value** | **Balance Sheet<br>Location** |
| December 31, 2025 |  |  |
| Interest rate swaps | $(893) | Other liabilities |
| Interest rate swaps | 2439 | Other assets |
|  | $1546 |  |

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| | | |
|:---|:---|:---|
| | **Fair Value** | **Balance Sheet<br>Location** |
| December 31, 2024 |  |  |
| Interest rate swaps | $(387) | Other liabilities |
| Interest rate swaps | 5443 | Other assets |
|  | $5056 |  |

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The following tables presents the effect of derivative instruments on the statements of operations for the years ended December 31, 2025 and 2024 (Amounts in Thousands):

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Location and Amount of Gain (Loss) Recognized in Income on Fair Value and Cash Flow Hedging Relationships** | **Location and Amount of Gain (Loss) Recognized in Income on Fair Value and Cash Flow Hedging Relationships** | **Location and Amount of Gain (Loss) Recognized in Income on Fair Value and Cash Flow Hedging Relationships** | **Location and Amount of Gain (Loss) Recognized in Income on Fair Value and Cash Flow Hedging Relationships** |
| | **2025** | **2025** | **2024** | **2024** |
| | **Interest<br>Income** | **Interest<br>Expense** | **Interest<br>Income** | **Interest<br>Expense** |
| Cash Flow Hedges - Interest rate swaps | $- | $323 | $- | $1062 |
| Fair Value Hedges - Interest rate swaps | 1630 | - | 1720 | - |
|  | $1630 | $323 | $1720 | $1062 |

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The following table presents the effect of cash flow hedge accounting on the statements of comprehensive income (loss) (Amounts in Thousands):

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| | | |
|:---|:---|:---|
| | **Amount of Gain (Loss)<br>Recognized in AOCI** | **Amount of Gain (Loss)<br>Recognized in AOCI** |
|<br>**Cash Flow Hedges** | **2025** | **2024** |
| Interest rate swaps | $(596) | $1098 |

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**Note 6:&nbsp;&nbsp;&nbsp;&nbsp;Goodwill**

The changes in the carrying amount of goodwill for the years ended December 31, 2025 and 2024, were (Amounts in Thousands):

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| | | |
|:---|:---|:---|
| | **2025** | **2024** |
| Balance as of January 1 | $18805 | $19340 |
| &nbsp;&nbsp;&nbsp;&nbsp;Sale of business unit | - | (535) |
| Balance as of December 31 | $18805 | $18805 |

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**Note 7:&nbsp;&nbsp;&nbsp;&nbsp;Deposits**

The following tables presents the composition of our deposits for the years ended December 31, 2025 and 2024 (Amounts in Thousands):

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| | | |
|:---|:---|:---|
| | **2025** | **2024** |
| Noninterest bearing deposits | $245236 | $253014 |
| Interest bearing deposits | 387439 | 363764 |
| Money market deposits | 104583 | 116686 |
| Savings deposits | 276727 | 218096 |
| Brokered deposits | 106263 | 169481 |
| Time deposits of $250 and under | 269588 | 329795 |
| Time deposits over $250 | 117235 | 130854 |
|  | $1507071 | $1581690 |

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At December 31, 2025, the scheduled maturities of time deposits are as follows (Amounts in Thousands):

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| | |
|:---|:---|
| 2026 | 453570 |
| 2027 | 39129 |
| 2028 | 218 |
| 2029 | 127 |
| 2030 | 42 |
|  | $493086 |

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**Note 8:&nbsp;&nbsp;&nbsp;&nbsp;Federal Home Loan Bank Advances and Federal Funds Lines**

Advances from the Federal Home Loan Bank as of December 31, 2025 and 2024, bear interest and are due as follows (Amounts in Thousands):

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| | | | | |
|:---|:---|:---|:---|:---|
| | **2025** | **2025** | **2024** | **2024** |
| | **Weighted<br>Average<br>Interest Rate<br>at Year End** | **Balance<br>Due** | **Weighted<br>Average<br>Interest Rate<br>at Year End** | **Balance<br>Due** |
| Year ending December 31: |  |  |  |  |
| 2025 |  | $- | 3.70% | $80000 |
| 2026 | 4.05% | 70000 |  | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total |  | $70000 |  | $80000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Overnight borrowings |  | - | 4.62% | 9510 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total FHLB advances |  | $70000 |  | $89510 |

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The Federal Home Loan Bank advances are secured by Federal Home Loan Bank stock, included in other investments on the consolidated balance sheet, totaling $4.5 million and $5.4 million as of December 31, 2025 and 2024, respectively. Additionally, qualifying consumer, commercial and agriculture mortgage loans of approximately $303.9 million and $342.1 million as of December 31, 2025 and 2024, respectively, are pledged as collateral on Federal Home Loan Bank advances. Advances, at interest rates from 3.82% to 4.30%, are subject to restrictions or penalties in the event of prepayment.

<u>Federal Funds Lines</u>: The Bank has unsecured federal funds lines totaling $30.0 million from multiple correspondent banking relationships. There were no borrowings from such lines at either December 31, 2025 or December 31, 2024.

**Note 9:&nbsp;&nbsp;&nbsp;&nbsp;Accumulated Other Comprehensive Loss**

The following table summarizes the balances of each component of accumulated other comprehensive income (loss) (AOCI), included in stockholders' equity, at December 31, 2025 and 2024 (Amounts in Thousands):

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| | | |
|:---|:---|:---|
| | **2025** | **2024** |
| Net unrealized loss on available for sale securities | $(29259) | $(34132) |
| Net unrealized gain (loss) on derivatives used for cash flow hedges | (515) | 81 |
| Tax Effect | 7282 | 8268 |
| &nbsp;&nbsp;&nbsp;&nbsp;Net of Tax Amount | $(22492) | $(25783) |

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Amounts reclassified from AOCI and affected line items in the statement of operations during the years ended December 31, 2025 and 2024, were as follows (Amounts in Thousands):

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| | | | | |
|:---|:---|:---|:---|:---|
| | **2025** | **2024** | **2024** | **Affected line item in the Statements of Operations** |
| Unrealized gain (loss) on available-for- sale securities | $- | $(1320) | <sup>(A)</sup> | Net realized gains (losses) on sale of available-for-sale securities |
| Tax Effect | - | 307 |  | Provision for Income Taxes (expense) benefit |
| Total Reclassification out of OCI | $- | $(1013) |  |  |

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__________________

(A)Difference of $1.33 million compared to the Consolidated Statements of Comprehensive Income (Loss) stems from the sale of municipal securities, with related swap terminations in April 2024 as part of a portfolio restructure.

**Note 10:&nbsp;&nbsp;&nbsp;&nbsp; Notes Payable**

Notes payable as of December 31, 2025 and 2024, are as follows (Amounts in Thousands):

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| | | |
|:---|:---|:---|
| | **2025** | **2024** |
| Line of credit, bank, variable (WSJ Prime Rate) minus 0.25% with a floor of 4.50%, final principal and interest payment due April 1, 2026, collateralized by shares of Lincoln Savings Bank. <sup>(A) (B)</sup> | $14500 | $14500 |
|  | $14500 | $14500 |

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__________________

(A)The line of credit was paid off in January 2026.

(B)The Company has a credit agreement with this note holder that contains various covenants. These covenants primarily consist of capital ratios and loan performance ratios. The line of credit of $15 million is due April 1, 2026.

**Note 11: Junior Subordinated Debentures**

Junior subordinated debentures are due to Lincoln Bancorp Capital Trust II, a 100%-owned, nonconsolidated subsidiary of the Company. The debentures were issued on June 21, 2007, in conjunction with the Trust's issuance of 9,000,000 shares of Company Obligated Mandatorily Redeemable Preferred Securities. The debentures bear the same interest rate and terms as the preferred securities. The preferred securities provide for cumulative cash distributions calculated at a rate equal to the 3-month CME Term SOFR rate of interest, plus one hundred seventy (170) basis points (5.42481% at December 31, 2025). The maximum rate of interest payable will be no higher than that allowed by New York state law. The Company may, at one or more times, defer interest payments on the debentures for up to 20 consecutive quarters, but not beyond September 15, 2037. At the end of the deferral period, all accumulated and unpaid distributions will be paid. The securities will be redeemed no later than September 15, 2037. The Company also has an optional redemption, after receiving the requisite approvals, to redeem the debentures in whole or in part, on or after the interest payment date in June 2012. The securities will be redeemed at par value. Holders of the securities have no voting rights, are unsecured and rank junior in priority of payments to all of the Company's indebtedness and senior to the Company's capital stock. The debentures are included on the balance sheets as liabilities; however, for regulatory purposes are allowed in the calculation of Tier 1 Capital as of December 31, 2025 and 2024, subject to certain limitations.

**Note 12: Income Taxes**

The provision for income taxes includes these components (Amounts in Thousands):

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| | | |
|:---|:---|:---|
| | **2025** | **2024** |
| Current income taxes | $173 | $250 |
| Deferred income taxes | (417) | (970) |
| Valuation Allowance | (221) | 248 |
| &nbsp;&nbsp;&nbsp;&nbsp;Income tax expense | $(465) | $(472) |

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For the years ended December 31, 2025 and 2024, federal and state income taxes paid were as follows (Amounts in Thousands):

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| | | |
|:---|:---|:---|
| | **2025** | **2024** |
| Federal | $- | 20 |
| State - Iowa | 40 | - |
| Total income taxes paid | $40 | 20 |

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A reconciliation of income tax expense at the statutory rate to the Company's actual income tax expense is shown below (Amounts in Thousands):

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| | | | | |
|:---|:---|:---|:---|:---|
| | **2025** | **Percent** | **2024** | **Percent** |
| Computed at the statutory rate (21%) | $(612) | 20.9% | $(388) | 20.8% |
| State income taxes, net | (154) | 5.3% | 74 | (4.0)% |
| Change in valuation allowance | 220 | (7.6)% | (248) | 13.3% |
| Nontaxable or nondeductible items: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Tax-exempt income | (995) | 34.2% | (1078) | 57.8% |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest expense limitation | 1695 | (58.2)% | 332 | (17.8)% |
| &nbsp;&nbsp;&nbsp;&nbsp;Key person life insurance | (354) | 12.2% | 360 | (19.3)% |
| &nbsp;&nbsp;&nbsp;&nbsp;Modified endowment penalty | - | 0.0% | 317 | (17.0)% |
| &nbsp;&nbsp;&nbsp;&nbsp;Other nondeductible expense | 16 | (0.6)% | 19 | (1.0)% |
| &nbsp;&nbsp;&nbsp;&nbsp;Other, net | (281) | 9.8% | 140 | (7.5)% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income tax expense | $(465) | 16.0% | $(472) | 25.3% |

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The tax effects of temporary differences related to deferred taxes on the consolidated balance sheets were (Amounts in Thousands):

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| | | |
|:---|:---|:---|
| | **2025** | **2024** |
| Deferred tax assets |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Allowance for credit losses | $4310 | $3761 |
| &nbsp;&nbsp;&nbsp;&nbsp;Deferred compensation | 795 | 798 |
| &nbsp;&nbsp;&nbsp;&nbsp;Loans held for sale | 8 | 8 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other | 1746 | 542 |
| &nbsp;&nbsp;&nbsp;&nbsp;Federal net operating loss | 3704 | 4701 |
| &nbsp;&nbsp;&nbsp;&nbsp;State net operating loss | 1018 | 709 |
| &nbsp;&nbsp;&nbsp;&nbsp;Unrealized losses on available-for-sale securities | 7307 | 9110 |
| &nbsp;&nbsp;&nbsp;&nbsp;Premise and equipment | 344 | 575 |
|  | 19232 | 20204 |
| Deferred tax liabilities |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Prepaid expenses | 232 | 274 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other | 395 | 329 |
| &nbsp;&nbsp;&nbsp;&nbsp;Deferred loan fees | 629 | 682 |
| &nbsp;&nbsp;&nbsp;&nbsp;Goodwill | 2869 | 2869 |
| &nbsp;&nbsp;&nbsp;&nbsp;Unrealized gains on equity securities | 245 | 244 |
| &nbsp;&nbsp;&nbsp;&nbsp;Unrealized gains on derivative transactions | 360 | 1178 |
|  | 4730 | 5576 |
| &nbsp;&nbsp;&nbsp;&nbsp;Less: Valuation allowance | (668) | (447) |
| Net deferred tax asset | $13834 | $14181 |

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The Company has evaluated the realizability of the deferred tax assets and considered both positive and negative assurance in assessing the likelihood of realization. The net deferred tax assets are expected to be utilized through future taxable earnings and tax planning strategies.

At December 31, 2025, the Company had a federal net operating loss (NOL) carryforward of approximately $17.6 million. This NOL carries forward indefinitely. At December 31, 2025, the Company had an Iowa NOL carryforward of approximately $27.4 million that can be carried forward in various amounts through 2045.

**Note 13:&nbsp;&nbsp;&nbsp;&nbsp;Regulatory Matters**

The Company and the Bank are subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Company's and the Bank's financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company and the Bank must meet specific capital guidelines that involve quantitative measures of assets, liabilities and certain off-balance-sheet items as calculated under regulatory accounting practices. The capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings and other factors. Furthermore, the Company and Bank's regulators could require adjustments to regulatory capital not reflected in these consolidated financial statements.

Quantitative measures established by regulation to ensure capital adequacy require the Company and the Bank to maintain minimum amounts and ratios (set forth in the table below) of total and Tier I capital (as defined in the regulations) to risk-weighted assets (as defined), of Tier I capital (as defined) to average assets (as defined) and of Common Equity Tier I capital (as defined) to risk-weighted assets. Management believes, as of December 31, 2025 and 2024, that the Company and the Bank meet all capital adequacy requirements to which they are subject.

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As of December 31, 2025, the most recent notification from FDIC categorized the Bank as well capitalized under the regulatory framework for prompt corrective action. To be categorized as well-capitalized, the Bank must maintain capital ratios as set forth in the table. There are no conditions or events since that notification that management believes have changed the Bank's category.

The Company's and the Bank's actual capital amounts and ratios are also presented in the table on the following page (Amounts in Thousands):

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Actual** | **Actual** | **Minimum Capital Requirement** | **Minimum Capital Requirement** | **Minimum to Be Well Capitalized** | **Minimum to Be Well Capitalized** |
| | **Amount** | **Ratio** | **Amount** | **Ratio** | **Amount** | **Ratio** |
| **As of December 31, 2025** | | | | | | |
| &nbsp;&nbsp;&nbsp;&nbsp;Total Capital |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(to Risk-Weighted Assets) |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Consolidated | $166166 | 12.41% | $107115 | 8.00% | N/A | N/A |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Lincoln Savings Bank | 177161 | 13.32% | 106380 | 8.00% | 132975 | 10.00% |
| &nbsp;&nbsp;&nbsp;&nbsp;Tier I Capital |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(to Risk-Weighted Assets) |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Consolidated | $149529 | 11.17% | $80336 | 6.00% | N/A | N/A |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Lincoln Savings Bank | 160524 | 12.07% | 79785 | 6.00% | 106380 | 8.00% |
| &nbsp;&nbsp;&nbsp;&nbsp;Tier I Capital |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(to Total Adjusted Assets) |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Consolidated | $149529 | 8.34% | $71726 | 4.00% | N/A | N/A |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Lincoln Savings Bank | 160524 | 9.00% | 71270 | 4.00% | 89088 | 5.00% |
| &nbsp;&nbsp;&nbsp;&nbsp;Common Equity Tier I Capital (CET1) |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(to Risk-Weighted Assets) |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Consolidated | $140529 | 10.50% | $60252 | 4.50% | N/A | N/A |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Lincoln Savings Bank | 160524 | 12.07% | 59839 | 4.50% | 86434 | 6.50% |
| **As of December 31, 2024** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Total Capital |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(to Risk-Weighted Assets) |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Consolidated | $166882 | 10.87% | $122864 | 8.00% | N/A | N/A |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Lincoln Savings Bank | 176370 | 11.59% | 121688 | 8.00% | 152110 | 10.00% |
| &nbsp;&nbsp;&nbsp;&nbsp;Tier I Capital |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(to Risk-Weighted Assets) |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Consolidated | $151917 | 9.89% | $92148 | 6.00% | N/A | N/A |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Lincoln Savings Bank | 161405 | 10.61% | 91266 | 6.00% | 121688 | 8.00% |
| &nbsp;&nbsp;&nbsp;&nbsp;Tier I Capital |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(to Total Adjusted Assets) |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Consolidated | $151917 | 8.14% | $74691 | 4.00% | N/A | N/A |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Lincoln Savings Bank | 161405 | 8.69% | 74292 | 4.00% | 92866 | 5.00% |
| &nbsp;&nbsp;&nbsp;&nbsp;Common Equity Tier I Capital (CET1) |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(to Risk-Weighted Assets) |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Consolidated | $142917 | 9.31% | $69111 | 4.50% | N/A | N/A |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Lincoln Savings Bank | 161405 | 10.61% | 68450 | 4.50% | 98872 | 6.50% |

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The above minimum capital requirements exclude the capital conservation buffer required to avoid limitations on capital distributions, including dividend payments and certain discretionary bonus payments to executive officers.

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The capital conservation buffer was 2.50% at December 31, 2025 and 2024. The net unrealized gain or loss on available-for-sale securities and derivatives is not included in computing regulatory capital.

The Company and Bank are subject to certain restrictions on the amount of dividends that it may declare without prior regulatory approval. The Company has adopted a resolution not to pay dividends, incur debt or repurchase or redeem stock without prior regulatory approval.

**Note 14:&nbsp;&nbsp;&nbsp;&nbsp;Related Party Transactions**

At December 31, 2025 and 2024, the Bank had loans outstanding to principal officers and directors and their affiliates in the amount of $7.3 million and $13.1 million, respectively. During the years ended December 31, 2025 and 2024, respectively, total principal additions were $414,000 and $12.4 million and total principal payments were $6.2 million and $3.8 million.

Deposits from principal officers and directors and their affiliates held by the Bank at December 31, 2025 and 2024, totaled $25.7 million and $14.7 million, respectively.

In management's opinion, such loans and other extensions of credit and deposits were made in the ordinary course of business and were made on substantially the same terms (including interest rates and collateral) as those prevailing at the time for comparable transactions with other persons. Further, in management's opinion, these loans did not involve more than normal risk of collectability or present other unfavorable features.

**Note 15:&nbsp;&nbsp;&nbsp;&nbsp;Employee Benefit Plans**

***Employee Stock Ownership Plan (ESOP)***

The Company has an employee stock ownership plan (the "Plan") and a related trust to provide retirement benefits to its employees.

In 2014, the Plan borrowed $874,198 from the Company to purchase shares of Lincoln Bancorp stock from terminated participants. This loan matured and was paid off on June 29, 2024.

In 2014, the Plan borrowed $921,132 from the Company to pay off notes to a commercial bank. This loan matured and was paid off on December 30, 2024.

In 2014, the Plan borrowed $600,000 from the Company to purchase shares of Lincoln Bancorp stock. This loan matures December 30, 2044 and bears an interest rate of 3.25%. The loan was collateralized by 44,094.75 shares of Lincoln Bancorp stock. The loan balance at December 31, 2025 and 2024, was $443,600 and $460,229, respectively.

In 2015, the Plan borrowed $2,500,000 from the Company to purchase shares of Lincoln Bancorp Preferred C stock. This loan matured and was paid off on July 15, 2025 and bore interest at a rate of 3.25%. The loan was collateralized initially by 2,500 shares of Lincoln Bancorp Preferred C stock, which were converted to 159,574 shares of Lincoln Bancorp common stock on July 20, 2020. The loan balance at December 31, 2024, was $287,682.

In 2016, the Plan borrowed $336,802 from the Company to purchase shares of Lincoln Bancorp stock from terminated participants. This loan matures October 21, 2026 and bears an interest rate of 3.50%. The loan was collateralized by 22,972.77 shares of Lincoln Bancorp stock. The loan balance at December 31, 2025 and 2024, was $39,202 and $77,060, respectively.

In 2018, the Plan borrowed $4,000,035 from the Company to purchase shares of Lincoln Bancorp Common A stock. This loan matures July 24, 2028 and bears an interest rate of 4.15%. The loan was collateralized by 219,180 shares of Lincoln Bancorp Common A stock. The loan balance at December 31, 2025 and 2024 was $1,269,250 and $1,696,215, respectively.

The Company makes annual contributions to the ESOP equal to the ESOP's debt service less dividends received by the ESOP. Dividends received by the ESOP are used for debt service to the extent allowed under any

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applicable law. Company contributions to the Plan are allocated based on the participant compensation in relation to total compensation for all participants. Forfeited balances of terminated participants' non-vested account balance may be used to reinstate previously forfeited account balances of former participants, satisfy any contribution that may be required or pay any administrative expenses of the Plan, with any remaining forfeitures allocated among the participant accounts in a similar manner as employer contributions. The Plan follows a vesting schedule, with participants being fully vested in their account balance after six years. The Bank contributed $962,000 and $1,054,750 to the trust for the years ended December 31, 2025 and 2024, respectively.

In the event a terminated plan participant desires to sell his or her shares of the Company's stock or for certain employees who elect to diversify their account balances, the Company may be required to purchase the shares from the participant at their fair market value. During the years ended December 31, 2025 and 2024, the Company purchased 77,231 and 57,756 shares from Plan participants, respectively. The fair value of ESOP shares is based on an independent annual appraisal. This contingent repurchase liability totaled approximately $11.0 million and $12.9 million at December 31, 2025 and 2024, respectively.

Shares of common stock held by the ESOP at December 31, 2025 and 2024 are as follows:

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| | | |
|:---|:---|:---|
| | **2025** | **2024** |
| Allocated shares | 876893 | 903133 |
| Shares released for allocation | 41642 | 51534 |
| Unreleased (unearned) shares | 90498 | 132141 |
| &nbsp;&nbsp;&nbsp;&nbsp;Ending ESOP common shares | 1009033 | 1086808 |
| Approximate fair value of unreleased (unearned) common shares | $1118555 | $1926617 |

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***Supplemental Income & Deferred Compensation Agreements***

The Bank and the Company have also entered into supplemental income and deferred compensation agreements with some of its directors and key executives, which provide for an annual retirement benefit commencing at age 65. The present value of the estimated liability under the agreements is being accrued over the years required to attain full eligibility as provided in the contract and is included in accrued expenses and other liabilities. At December 31, 2025 and 2024, $3,751,407 and $3,792,711, respectively, has been accrued and included in other liabilities under these agreements. Expense attributable to these agreements totaled $1,101,876 and $1,197,356 for the years ended December 31, 2025 and 2024, respectively. Payments totaled $988,681 and $1,190,911 for the years ended December 31, 2025 and 2024, respectively.

***Equity Plans***

On April 5, 2019, the Company's stockholders voted to approve the Lincoln Bancorp 2019 Equity Incentive Plan (the "2019 Plan"). The 2019 Plan provides for the grant of up to 400,000 shares of Common Stock under equity awards including stock options, stock awards, restricted stock, stock appreciation rights, performance units, or other equity-based awards payable in cash or stock to key employees and directors of the Company and the Bank.

During the years ended December 31, 2025 and 2024, 7,764 and 6,582 restricted stock units (RSUs), respectively, were granted to directors. During 2025, RSU's were issued to employees with a maximum of 79,000 RSUs to be granted to key employees under the 2019 Plan, while in 2024, the maximum RSU's to be issued under this same plan was 140,166. The director RSUs were immediately vested and expense of $95,963 and $95,965 ($12.36 and $14.58 per share equal to the fair value of awards on the grant date) was recognized for 2025 and 2024, respectively. In addition, during 2024, 10,000 shares were granted and immediately vested to a director and additional expense of $145,800 was recognized.

The awards to the key employees represent annual tranches that vest over two years for each tranche. Employee awards are subject to both service and performance thresholds requirements. There are two possible levels of awards for key employees RSUs: "target" and "maximum". Performance thresholds include return on asset measurements and certain subjective measurements determined by the Company's compensation committee. The grant date for each tranche is established when all significant terms have been established and subjective measurements by the

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Company's compensation committee have been completed. As of December 31, 2025, the Company recognized $81,600 in compensation expense for the vesting of 12,500 shares of the 2024 RSU tranche, as well as an estimate of $312,324 in compensation expense for the vesting of the 2025 RSU tranche. As of December 31, 2024, the Company recognized $326,584 in compensation expense for the vesting of 23,333 shares of the 2023 RSU tranche, as well as an estimate of $72,900 in compensation expense for the vesting of the 2024 RSU tranche. The estimated compensation expense will be adjusted if necessary to equal fair value once an independent appraisal is completed in 2026. Management does not expect a significant adjustment will be necessary.

Due to the fact that the measurements cannot be determined at the time of the grant, the Company estimated that the most likely outcome is the achievement of the target level. If during the performance periods, additional information becomes available to lead the Company to believe a different level will be achieved for each performance period, the Company will reassess the number of RSUs that will vest for the grant and adjust its compensation expense accordingly on a prospective basis. As of December 31, 2025, and 2024, there were $664,116 and $343,000, respectively, of estimated unrecognized compensation expense related to nonvested RSU target shares, which will be recognized over the remaining vesting periods.

***401(k) Profit Sharing Plan***

The company has a 401(k) profit sharing plan covering substantially all employees. Employees may contribute a percentage of their compensation up to the maximum allowable by the IRS. Employer profit-sharing contributions and company matching contributions are discretionary as determined by the Company's Board of Directors. Employer contributions charged to expense for 2025 and 2024 were $227,000 and $294,000, respectively.

**Note 16:&nbsp;&nbsp;&nbsp;&nbsp;Disclosures About Fair Value of Assets and Liabilities**

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value measurements must maximize the use of observable inputs and minimize the use of unobservable inputs. There is a hierarchy of three levels of inputs that may be used to measure fair value:

**Level 1** Quoted prices in active markets for identical assets or liabilities

**Level 2** Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities

**Level 3** Unobservable inputs supported by little or no market activity and are significant to the fair value of the assets or liabilities

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***Recurring Measurements***

The following table presents the fair value measurements of assets and liabilities recognized in the accompanying balance sheets measured at fair value on a recurring basis and the level within the fair value hierarchy in which the fair value measurements fall at December 31, 2025 and 2024 (Amounts in Thousands):

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| | | | | |
|:---|:---|:---|:---|:---|
| | | **2025** | **2025** | **2025** |
| | | **Fair Value Measurements Using** | **Fair Value Measurements Using** | **Fair Value Measurements Using** |
| |<br><br>**Fair Value** | **Quoted Prices <br>in Active <br>Markets for <br>Identical <br>Assets**<br>**(Level 1)** | **Significant <br>Other <br>Observable <br>Inputs**<br>**(Level 2)** | **Significant <br>Unobservable <br>Inputs**<br>**(Level 3)** |
| Asset-backed securities | $2405 | $- | $2405 | $- |
| Collateralized mortgage |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;obligations | 99360 | - | 99360 | - |
| Government-sponsored |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;mortgage-backed securities | 45021 | - | 45021 | - |
| State and political subdivisions | 146012 | - | 146012 | - |
| U.S. Treasuries | 14239 | 14239 | - | - |
| Collateralized debt obligations | 22872 | - | 22872 | - |
| Farmer Mac stock | 281 | 281 | - | - |
| Interest rate swap asset | 2439 | - | 2439 | - |
| Interest rate swap liability | (893) | - | (893) | - |

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| | | | | |
|:---|:---|:---|:---|:---|
| | | **2024** | **2024** | **2024** |
| | | **Fair Value Measurements Using** | **Fair Value Measurements Using** | **Fair Value Measurements Using** |
| |<br><br>**Fair Value** | **Quoted Prices in Active Markets for Identical Assets**<br>**(Level 1)** | **Significant Other Observable Inputs**<br>**(Level 2)** | **Significant Unobservable Inputs**<br>**(Level 3)** |
| Collateralized mortgage |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;obligations | $55632 | $- | $55632 | $- |
| Government-sponsored |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;mortgage-backed securities | 48079 | - | 48079 | - |
| State and political subdivisions | 143606 | - | 143606 | - |
| U.S. Treasuries | 13561 | 13561 | - | - |
| U.S. government agencies | 2968 | - | 2968 | - |
| Collateralized debt obligations | 1500 | - | 1500 | - |
| Farmer Mac stock | 307 | 307 | - | - |
| Interest rate swap asset | 5443 | - | 5443 | - |
| Interest rate swap liability | (387) | - | (387) | - |

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Following is a description of the valuation methodologies and inputs used for assets and liabilities measured at fair value on a recurring basis and recognized in the accompanying balance sheets, as well as the general classification of such assets pursuant to the valuation hierarchy. There have been no significant changes in the valuation techniques during the year ended December 31, 2025. For assets classified within Level 3 of the fair value hierarchy, the process used to develop the reported fair value is described below.

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***Available-for-Sale Securities and Farmer Mac Stock***

Where quoted market prices are available in an active market, securities are classified within Level 1 of the valuation hierarchy. If quoted market prices are not available, then fair values are estimated by using quoted prices of securities with similar characteristics or independent asset pricing services and pricing models, the inputs of which are market-based or independently sourced market parameters, including, but not limited to, yield curves, interest rates, volatilities, prepayments, defaults, cumulative loss projections and cash flows. Such securities are classified in Level 2 of the valuation hierarchy. In certain cases where Level 1 or Level 2 inputs are not available, securities are classified within Level 3 of the hierarchy.

***Interest Rate Swap Agreements***

The fair value is estimated using forward-looking interest rate curves and is calculated using discounted cash flows that are observable or that can be corroborated by observable market data and, therefore, are classified within Level 2 of the valuation hierarchy.

***Nonrecurring Measurements***

The following table presents the fair value measurement of assets measured at fair value on a nonrecurring basis and the level within the fair value hierarchy in which the fair value measurements fall at December 31, 2025 and 2024 (Amounts in Thousands):

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| | | | | |
|:---|:---|:---|:---|:---|
| | | **2025** | **2025** | **2025** |
| | | **Fair Value Measurements Using** | **Fair Value Measurements Using** | **Fair Value Measurements Using** |
| |<br><br>**Fair Value** | **Quoted Prices <br>in Active <br>Markets for <br>Identical <br>Assets**<br>**(Level 1)** | **Significant <br>Other <br>Observable <br>Inputs**<br>**(Level 2)** | **Significant <br>Unobservable <br>Inputs**<br>**(Level 3)** |
| Collateral dependent loans | $4602 | $- | $- | $4602 |
| Individually evaluated loans | 20062 | - |  | 20062 |
| Equity securities - without readily determinable value | 1072 | - | 1072 | - |
| Other real estate | 9966 | - | - | 9966 |

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| | | | | |
|:---|:---|:---|:---|:---|
| | | **2024** | **2024** | **2024** |
| | | **Fair Value Measurements Using** | **Fair Value Measurements Using** | **Fair Value Measurements Using** |
| |<br><br>**Fair Value** | **Quoted Prices <br>in Active <br>Markets for <br>Identical <br>Assets**<br>**(Level 1)** | **Significant <br>Other <br>Observable <br>Inputs**<br>**(Level 2)** | **Significant <br>Unobservable <br>Inputs**<br>**(Level 3)** |
| Collateral dependent loans | $10825 | $- | $- | $10825 |
| Individually evaluated loans | 26538 | - |  | 26358 |
| Equity securities - without readily determinable value | 1021 | - | 1021 | - |
| Other real estate | 5858 | - | - | 5858 |

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Following is a description of the valuation methodologies and inputs used for assets measured at fair value on a nonrecurring basis and recognized in the accompanying balance sheet, as well as the general classification of such assets pursuant to the valuation hierarchy. For assets classified within Level 3 of the fair value hierarchy, the process used to develop the reported fair value is described below.

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***Collateral-Dependent Loans, Net of Allowance for Credit Losses***

The estimated fair value of collateral-dependent loans is based on the appraised fair value of the collateral, less estimated cost to sell. Collateral-dependent loans are classified within Level 3 of the fair value hierarchy.

The Company considers the appraisal or evaluation as the starting point for determining fair value and then considers other factors and events in the environment that may affect the fair value. Appraisals of the collateral underlying collateral-dependent loans are obtained when the loan is determined to be collateral-dependent and subsequently as deemed necessary by management. Appraisals are reviewed for accuracy and consistency by management. Appraisers are selected from the list of approved appraisers maintained by management. The appraised values are reduced by discounts to consider lack of marketability and estimated cost to sell if repayment or satisfaction of the loan is dependent on the sale of the collateral. These discounts and estimates are developed by management by comparison to historical results. The range of inputs used in the valuation was between 25% and 100%.

***Individually Evaluated Loans, Net of Allowance for Credit Losses***

The estimated fair value of the individually evaluated loans is based upon a discounted cash flow analysis, with related inputs, Individually evaluated loans are classified within Level 3 of the fair value hierarchy.

Under the discounted cash flows analysis, the fair value is determined based upon the difference between the amortized cost basis and the present value of the cash flows expected to be collected. Expected cash flows are discounted at the effective interest rate of the asset. The effective interest rate used to discount cash flows is the contractual interest rate adjusted for net deferred fees or costs, premium, or discount existing at the origination or acquisition of the asset. The effective interest rate represents management's expected yield over the contractual life of the asset upon its origination or acquisition. If the financial asset's contractual interest rate varies based on subsequent changes in an independent factor, that financial asset's effective interest rate shall be calculated based on the factor as it changes over the life of the financial asset. The range of inputs used in the valuation was between 0% and 100%.

***Equity Securities***

Equity securities without a readily determinable fair value are carried at cost, minus impairment, if any, plus or minus changes resulting from observable price changes for the identical or a similar investment.

***Other Real Estate***

Other real estate (ORE) is carried at the lower of fair value at acquisition date or current estimated fair value, less estimated cost to sell when the real estate is acquired. Estimated fair value of ORE is based on appraisals or evaluations. ORE is classified within Level 3 of the fair value hierarchy.

Appraisals of ORE are obtained when deemed necessary by management. Appraisals are reviewed for accuracy and consistency by management. Appraisers are selected from the list of approved appraisers maintained by management. The inputs used in the valuation were 7%.

------

***Fair Value of Financial Instruments***

The following table presents estimated fair values of the Company's financial instruments at December 31, 2025 and 2024 (Amounts in Thousands):

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **2025** | **2025** | **2025** | **2025** | **2025** |
| | **Carrying <br>Amount** | **Fair Value** | **Level 1** | **Level 2** | **Level 3** |
| Financial Assets |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Cash and due from banks | $61730 | $61730 | $61730 | $- | $- |
| &nbsp;&nbsp;&nbsp;&nbsp;Federal funds sold | 72546 | 72546 | 72546 | - | - |
| &nbsp;&nbsp;&nbsp;&nbsp;Available-for-sale debt securities | 329909 | 329909 | 14239 | 315670 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;Other investments | 7657 | 7657 | 281 | 7376 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;Loans held for sale | 605 | 605 | - | 605 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;Loans, net of allowance for losses | 1148171 | 1120820 | - | - | 1120820 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accrued interest receivable | 10478 | 10478 | - | 10478 | - |
| Financial Liabilities |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Deposits | 1507071 | 1507972 | 1013984 | 493988 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;Federal Home Loan Bank advances | 70000 | 70055 | - | 70055 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;Notes payable | 14500 | 14500 | - | 14500 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;Junior subordinated debentures | 9279 | 9279 | - | 9279 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;Accrued interest payable | 2533 | 2533 | - | 2533 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;Off-balance sheet instruments |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loan commitments | - | - | - | - | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Standby letters of credit | - | - | - | - | - |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **2024** | **2024** | **2024** | **2024** | **2024** |
| | **Carrying <br>Amount** | **Fair Value** | **Level 1** | **Level 2** | **Level 3** |
| Financial Assets |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Cash and due from banks | $16933 | $16933 | $16933 | $- | $- |
| &nbsp;&nbsp;&nbsp;&nbsp;Federal funds sold | 1129 | 1129 | 1129 | - | - |
| &nbsp;&nbsp;&nbsp;&nbsp;Available-for-sale debt securities | 265346 | 265346 | 13561 | 251785 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;Other investments | 8232 | 8232 | 307 | 7925 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;Loans held for sale | 900 | 900 | - | 900 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;Loans, net of allowance for losses | 1398227 | 1355279 | - | - | 1355279 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accrued interest receivable | 11311 | 11311 | - | 11311 | - |
| Financial Liabilities |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Deposits | 1581690 | 1581524 | 951560 | 629964 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;Federal Home Loan Bank advances | 89510 | 89392 | - | 89392 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;Notes payable | 14500 | 14500 | - | 14500 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;Junior subordinated debentures | 9279 | 9279 | - | 9279 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;Accrued interest payable | 3396 | 3396 | - | 3396 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;Off-balance sheet instruments |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loan commitments | - | - | - | - | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Standby letters of credit | - | - | - | - | - |

---

------

The following methods were used to estimate the fair value of all other financial instruments recognized in the accompanying balance sheets at amounts other than fair value.

***Cash and Due from Banks, Federal Funds Sold and Other Investments***

The carrying amount approximates fair value.

***Loans Held for Sale***

The carrying amount approximates fair value due to the insignificant time between origination and date of sale. The carrying amount is the amount funded and accrued interest.

***Loans***

The fair value of loans is estimated on an exit price basis incorporating contractual cash flow, prepayments, discount spreads, credit loss and liquidity premiums.

***Accrued Interest Receivable and Payable***

The carrying amount approximates fair value. The carrying amount is determined using the interest rate, balance and last payment date.

***Deposits***

Fair value of term deposits is estimated by discounting the future cash flows using rates of similar deposits with similar maturities. The estimated fair value of demand, NOW, savings and money market deposits are the book value since rates are regularly adjusted to market rates and amounts are payable on demand at the reporting date.

***Federal Home Loan Bank Advances, Notes Payable and Junior Subordinated Debentures***

Fair value for the Federal Home Loan Bank advances is estimated by discounting the future cash flows using rates of similar advances with similar maturities. The carrying amount for Notes Payable and Junior Subordinated Debentures approximates fair value.

***Commitments to Originate Loans and Letters of Credit***

The fair value of commitments to originate loans is estimated using the fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements and the present creditworthiness of the counterparties. For fixed rate loan commitments, fair value also considers the difference between current levels of interest rates and the committed rates.

The fair values of letters of credit are based on fees currently charged for similar agreements or on the estimated cost to terminate or otherwise settle the obligations with the counterparties at the reporting date. The fair values of commitments to originate loans and letters of credit is not presented because the amounts are not deemed significant.

**Note 17:&nbsp;&nbsp;&nbsp;&nbsp;Significant Estimates and Concentrations**

Accounting principles generally accepted in the United States of America require disclosure of certain significant estimates and current vulnerabilities due to certain concentrations. Estimates related to the allowance for credit losses are reflected in the footnote regarding loans. Current vulnerabilities due to certain concentrations of credit risk are discussed in the footnote on commitments and credit risk.

***General Litigation***

The Company is subject to claims and lawsuits that arise primarily in the ordinary course of business. It is the opinion of management that the disposition or ultimate resolution of such claims and lawsuits will not have a material adverse effect on the consolidated financial position, results of operations and cash flows of the Company.

------

**Note 18:&nbsp;&nbsp;&nbsp;&nbsp;Commitments and Credit Risk**

***Commitments to Originate Loans***

Commitments to originate loans are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since a portion of the commitments may expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. Each customer's creditworthiness is evaluated on a case-by-case basis. The amount of collateral obtained, if deemed necessary, is based on management's credit evaluation of the counterparty. Collateral held varies, but may include accounts receivable, inventory, property, plant and equipment, commercial real estate and residential real estate.

At December 31, 2025 and 2024, the Company had outstanding commitments to originate loans aggregating $135,000 and $1.40 million, respectively.

***Standby Letters of Credit***

Standby letters of credit are irrevocable conditional commitments issued by the Bank to guarantee the performance of a customer to a third party. Financial standby letters of credit are primarily issued to support public and private borrowing arrangements, including commercial paper, bond financing and similar transactions. Performance standby letters of credit are issued to guarantee performance of certain customers under nonfinancial contractual obligations. The credit risk involved in issuing standby letters of credit is essentially the same as that involved in extending loans to customers. Should the Bank be obligated to perform under the standby letters of credit, the Bank may seek recourse from the customer for reimbursement of amounts paid.

The Bank had total outstanding standby letters of credit amounting to $4.60 million and $4.40 million, at December 31, 2025 and 2024, respectively.

***Lines of Credit***

Lines of credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Lines of credit generally have fixed expiration dates. Since a portion of the line may expire without being drawn upon, the total unused lines do not necessarily represent future cash requirements. Each customer's creditworthiness is evaluated on a case-by-case basis. The amount of collateral obtained, if deemed necessary, is based on management's credit evaluation of the counterparty. Collateral held varies but may include accounts receivable, inventory, property, plant and equipment, commercial real estate and residential real estate. Management uses the same credit policies in granting lines of credit as it does for on-balance-sheet instruments.

At December 31, 2025 and 2024, the Bank had granted unused lines of credit to borrowers aggregating $259.58 million and $211.68 million, respectively, for commercial lines-of-credit, revolving credit lines and overdraft protection agreements.

***Concentrations of Credit Risk***

Substantially all of the Bank's loans and commitments to extend credit have been granted to customers in the Bank's market area. A significant portion of the Bank's loan portfolio consists of loans to finance the construction and development of real estate, companies involved in agribusiness and loans to farmers. The Bank's lending policies for agriculture and nonagricultural customers require loans that are well collateralized and supported by cash flows. Credit losses from loans related to the agricultural economy are consistent with credit losses experienced in the loan portfolio as a whole. The amount of collateral obtained on loans made by the Bank is based on management's credit evaluation of the borrower. Collateral held varies but may include accounts receivable, inventory, crops, equipment, livestock, real estate and other income-producing properties.

The nature of the Bank's business requires that it maintain amounts due from banks which, at times, may exceed federally insured limits. In the opinion of management, no material risk of loss exists due to the institution's financial condition and the fact they are well capitalized.

------

**Note 19:&nbsp;&nbsp;&nbsp;&nbsp;Operating Segments**

The Company's activities are considered to be one operating segment. This determination was based upon factors such as the Company's organizational structure, the reporting package provided to the Company's chief operating decision maker ("CODM"), methodology for allocation of resources, and the level at which budgets are reviewed and approved by the CODM. The Company is engaged in many areas of commercial banking, operates an embedded finance division that partners with several corporate Fintech clients, and provides services to customers through the Bank's trust department. These services are offered to individuals, businesses, governmental units and institutional customers in various Iowa communities, described further in Note 1.

The accounting policies of the reportable segment are the same as those described in Note 1.

The Company's chief executive officer is the CODM. The CODM assesses performance for the reportable segment and decides how to allocate resources based on net income (loss) that is reported in the consolidated statements of operations. The CODM uses net income (loss) to evaluate income (loss) generated from the segment assets (return on assets) to make decisions about allocating capital, such as to the business or to pay dividends. Additionally, net income (loss) is used by the CODM to monitor budget versus actual results monthly.

The following table summarizes segment revenue, segment profit or loss and significant segment expenses for the years ended December 31, 2025 and 2024.

---

| | | |
|:---|:---|:---|
| | **2025** | **2024** |
| Interest income | $90927 | $94724 |
| Interest expense | 46524 | 54822 |
| &nbsp;&nbsp;&nbsp;&nbsp;Net interest income | 44403 | 39902 |
| Noninterest income | 12944 | 24817 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total revenue | 57347 | 64719 |
| Less: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Salaries and employee benefits | 29584 | 34244 |
| &nbsp;&nbsp;&nbsp;&nbsp;Occupancy <sup>(1)</sup> | 4086 | 4204 |
| &nbsp;&nbsp;&nbsp;&nbsp;Furniture, equipment and software expense <sup>(1)</sup> | 7020 | 7578 |
| &nbsp;&nbsp;&nbsp;&nbsp;Provision for credit losses | 3501 | 5378 |
| &nbsp;&nbsp;&nbsp;&nbsp;Credit for income taxes | (465) | (472) |
| &nbsp;&nbsp;&nbsp;&nbsp;Other noninterest expense <sup>(2)</sup> | 16069 | 15182 |
| Net loss | $(2448) | $(1395) |

---

__________________

(1)Included in occupancy and furniture, equipment and software expense is depreciation expense of $2.3 million and $2.5 million for the years ended December 31, 2025 and 2024.

(2)Other segment items included in segment net loss includes net losses on sales of other real estate and real estate expense and other noninterest expense.

------

**Note 20:&nbsp;&nbsp;&nbsp;&nbsp;Parent Company Only Condensed Financial Statements**

The following are condensed balance sheets of Lincoln Bancorp as of December 31, 2025 and December 31, 2024 (parent company only):

---

| | | |
|:---|:---|:---|
| | **2025** | **2024** |
| **Assets** |  |  |
| Cash | $2379 | $3501 |
| Investment in Lincoln Savings Bank | 154882 | 151828 |
| Investment in Lincoln Bancorp Capital Trust II | 280 | 280 |
| Other assets | 8909 | 8150 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total assets | $166450 | $163759 |
| **Liabilities and Stockholders' Equity** |  |  |
| Junior subordinated debentures | $9279 | $9279 |
| Notes payable | 14500 | 14500 |
| Accrued expenses and other liabilities | 4857 | 3122 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total liabilities | 28636 | 26901 |
| Total stockholders' equity | 137814 | 136858 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total liabilities and stockholders' equity | $166450 | $163759 |

---

The following are condensed statements of operations of Lincoln Bancorp for the years ended December 31, 2025 and December 31, 2024 (parent company only):

---

| | | |
|:---|:---|:---|
| | **2025** | **2024** |
| **Income** |  |  |
| Dividend income from Lincoln Savings Bank | $- | $3497 |
| Dividend income from Lincoln Bancorp Capital Trust II | 17 | 20 |
| Interest and other income | 80 | 121 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total operating income | 97 | 3638 |
| **Expense** |  |  |
| Interest expense | 1608 | 1838 |
| Other expenses | 921 | 803 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total operating expenses | 2529 | 2641 |
| (Loss) earnings before income taxes and equity in undistributed loss of subsidiaries | (2432) | 997 |
| Equity in undistributed loss of subsidiaries | (545) | (3335) |
| Credit for income taxes | (529) | (943) |
| &nbsp;&nbsp;&nbsp;&nbsp;Net loss | $(2448) | $(1395) |

---

------

The following are condensed statements of cash flows of Lincoln Bancorp for the years ended December 31, 2025 and December 31, 2024 (parent company only):

---

| | | |
|:---|:---|:---|
| | **2025** | **2024** |
| **Operating Activities** |  |  |
| Net loss | $(2448) | $(1395) |
| Adjustments to reconcile net loss to net cash (used in) provided by operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Equity in undistributed loss of subsidiaries | 545 | 3335 |
| &nbsp;&nbsp;&nbsp;&nbsp;Deferred income taxes | (161) | (244) |
| &nbsp;&nbsp;&nbsp;&nbsp;Stock based compensation | 308 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;ESOP shares earned | 514 | 752 |
| &nbsp;&nbsp;&nbsp;&nbsp;Stock based compensation expense from share issuance | 251 | 582 |
| &nbsp;&nbsp;&nbsp;&nbsp;Net change in other assets and liabilities | 1166 | (1140) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Net cash (used in) provided by operating activities**  | $175 | $1890 |
| **Investing Activities** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Purchase of other investments | $(337) | $(264) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Net cash used in investing activities**  | $(337) | $(264) |
| **Financing Activities** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Proceeds from sale of treasury stock | $- | $842 |
| &nbsp;&nbsp;&nbsp;&nbsp;Purchase of treasury stock | (960) | (958) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Net cash used in financing activities**  | $(960) | $(116) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(Decrease) increase in cash and cash equivalents**  | $(1122) | $1510 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Cash and cash equivalents, beginning of year**  | 3501 | 1991 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Cash and cash equivalents, end of year**  | $2379 | $3501 |

---

**Note 21:&nbsp;&nbsp;&nbsp;&nbsp;Other Noninterest Income and Other Noninterest Expense**

The following table presents additional disaggregation of the other noninterest income and other noninterest expense for the years ended December 31, 2025 and 2024:

---

| | | |
|:---|:---|:---|
| | **2025** | **2024** |
| **Other Noninterest Income** |  |  |
| Card revenue | $2406 | $2350 |
| Bank-owned life insurance | 1582 | 1364 |
| Loss contingency |  | 2685 |
| Insurance proceeds | 1015 |  |
| Other | 3043 | 3082 |
| &nbsp;&nbsp;&nbsp;&nbsp; Total  | $8046 | $9481 |
| **Other Noninterest Expense** |  |  |
| FDIC assessment | $2827 | $1783 |
| Legal and professional | 1755 | 4474 |
| Other | 9613 | 8782 |
|  | $14195 | $15039 |

---

------

**Note 22:&nbsp;&nbsp;&nbsp;&nbsp;Subsequent Events**

On January 15, 2026, Lincoln Bancorp completed an offering of $33.5 million in aggregate principal amount of its 9.00% Fixed-to-Floating Rate Subordinated Notes due 2036 (the "Notes") pursuant to Subordinated Note Purchase Agreements (collectively, the "Note Purchase Agreement") with certain qualified institutional buyers and institutional accredited investors (the "Purchasers"). The Notes were offered and sold by the Company in a private placement transaction in reliance on exemptions from the registration requirements of the Securities Act of 1933, as amended (the "Securities Act"), pursuant to Section 4(a)(2) of the Securities Act and Regulation D thereunder. The Company intends to use the net proceeds from the offering for general corporate purposes, including enhancing regulatory capital and repayment of indebtedness.

The Company implemented balance sheet repositioning strategies, executed in January 2026, which resulted in a loss on sale of securities. The company sold $176.6 million in available-for-sale securities recognizing a loss totaling $15.7 million.

Subsequent events have been evaluated through May 14, 2026 which is the date the financial statements were issued.

------

**PART II**

**INFORMATION NOT REQUIRED IN PROSPECTUS**

**Item 13. Other Expenses of Issuance and Distribution**

The following table sets forth the costs and expenses, other than any underwriting discounts and commissions, payable by the registrant in connection with the sale of common stock being registered. All amounts are estimates except for the SEC registration fee.

---

| | |
|:---|:---|
| **Item** | **Amount to be paid** |
| SEC registration fee | $1403 |
| Printing fees and expenses | 130413 |
| Legal fees and expenses | 880653 |
| Accounting fees and expenses | 391275 |
| **Total**  | $1403744 |

---

__________________

**Item 14. Indemnification of Directors and Officers**

Under the Iowa Business Corporation Act, we must indemnify a director who was wholly successful, on the merits or otherwise, in the defense of any proceeding to which the director was a party because the director is or was a director of the Company against reasonable expenses incurred by the director in connection with the proceeding. We may indemnify only those directors and officers who have met the relevant standard of conduct under the Iowa Business Corporation Act, which includes acting in good faith and not against the best interests of the Company. We may not indemnify a director or officer in connection with a proceeding by or in the right of the Company (except to the extent of the reasonable expenses incurred by the director or officer in connection with the proceeding) or where the director or officer received a financial benefit to which he or she was not entitled. Additionally, we may not indemnify an officer in connection with any proceeding for liability arising out of conduct that constitutes an intentional infliction of harm on the Company or its shareholders, or an intentional violation of criminal law.

As permitted by the Iowa Business Corporation Act, our Articles of Incorporation provide that we are required to indemnify our directors and officers to the fullest extent permitted by Iowa law, and that such indemnification is intended to be mandatory rather than discretionary. In addition, our Bylaws authorize our board of directors, in its discretion, to provide indemnification to employees and agents of the Company to the extent permitted under applicable law. Our Articles of Incorporation further provide for the elimination of personal monetary liability of directors to the Company or its shareholders to the maximum extent permitted by the Iowa Business Corporation Act, subject to specified statutory exceptions, and provide that any future expansion of permissible indemnification or limitation of liability under Iowa law will automatically apply to our directors and officers without further action.

We maintain a directors' and officers' liability insurance policy. This policy insures our directors and officers against certain losses arising from alleged wrongful acts committed in their capacities as directors and officers to the extent such losses are not otherwise indemnified by the Company and reimburses us for amounts we have lawfully paid as indemnification to such persons. The policy contains customary terms, conditions, limitations, and exclusions. Consistent with our Bylaws, such insurance is intended to be the primary source of recovery, with any required indemnification by the Company being excess of available insurance proceeds.

**Item 15. Recent Sales of Unregistered Securities**

On January 15, 2026, we entered into Subordinated Note Purchase Agreements with eighteen purchasers pursuant to which the Company offered and sold $33,500,000 in aggregate principal amount of its 9.00% Fixed-to-Floating Rate Subordinated Notes Due 2036. The Company paid placement agency fees of $670,000, resulting in net proceeds of $32,830,000. The Company made the offering pursuant to the exemptions from registration afforded by Section 4(a)(2) of the Securities Act, Rule 501(a)(1)-(3) and (5)-(7) and Rule 506 of Regulation D, promulgated

------

under the Securities Act, where each purchaser was an "institutional accredited investor" or "accredited investor" within the meaning of Rule 501 of Regulation D.

**Item 16. Exhibits**

The exhibits filed as part of this registration statement are as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(a)List of Exhibits**

---

| | |
|:---|:---|
| **Number** | **Description** |
| 3.1 | <u>[Amended and Restated Articles of Incorporation](exhibit31s-1.htm)</u> |
| 3.2 | <u>[Amended and Restated Bylaws](exhibit32s-1.htm)</u> |
| 4.1 | <u>[Form of Certificate of Common Stock](exhibit41-sx1.htm)</u> |
| 4.2 | <u>[Form of](exhibit42s-1execution.htm)[9.00% Fixed-to-Floating Rate Subordinated Note Due 2036 (Global)](exhibit42s-1execution.htm)</u> |
| 4.3 | <u>[F](exhibit43s-1execution.htm)[orm of](exhibit43s-1execution.htm)[9.00% Fixed-to-Floating Rate Subordinated Note Due 2036](exhibit43s-1execution.htm)</u> |
| 4.4 | <u>[Floating Rate Junior Subordinated Deferrable Interest Debenture](exhibit44s-1.htm)</u> |
| 4.5 | <u>[Indenture, dated December June 21, 2007 with Lincoln Bancorp as Issuer and Wilmington Trust Company as Trustee – Floating Rate Junior Subordinated Deferrable Interest Debentures due 2037](exhibit45s-1.htm)</u> |
| 5.1 | <u>[Opinion of Alston & Bird LLP](exhibit51-sx1.htm)</u> |
| 10.1 | <u>[Stock Purchase Agreement between Lincoln Bancorp and Castle Creek Capital Partners VII, LP dated October 22, 2018](exhibit101s-1execution.htm)</u> |
| 10.2 | <u>[Registration Rights Agreement among Lincoln Bancorp, Castle Creek Capital Partners VII, LP and EJF Sidecar Fund, Series LLC – Small Financial Equities Series, dated as of](exhibit102-sx1.htm)[D](exhibit102-sx1.htm)[ecember 4](exhibit102-sx1.htm)[, 2018](exhibit102-sx1.htm)</u> |
| 10.3 | <u>[Amendment to Registration Rights Agreement between Lincoln Bancorp and Castle Creek Capital Partners VII, LP dated December 8, 2023](exhibit103s-1.htm)</u> |
| 10.4 | <u>[Stock Purchase Agreement between Lincoln Bancorp and EJF Sidecar Fund, Series LLC – Small Financial Equities Series, dated](exhibit104s-1.htm)[November 26](exhibit104s-1.htm)[, 2018](exhibit104s-1.htm)</u> |
| 10.5 | <u>[Employment Agreement](exhibit105-sx1.htm)[b](exhibit105-sx1.htm)[y and among](exhibit105-sx1.htm)[Lincoln Bancorp](exhibit105-sx1.htm)[, Lincoln Savings Bank](exhibit105-sx1.htm)[and Sean](exhibit105-sx1.htm)[Willett](exhibit105-sx1.htm)</u>, dated as of December 5, 2023 |
| 10.6 | <u>[Employment Agreement](exhibit106-sx1.htm)[by and among Lincoln Bancorp, Lincoln Savings Bank and Andy](exhibit106-sx1.htm)[Borrmann](exhibit106-sx1.htm)</u>, dated as of September 9, 2024 |
| 10.7 | <u>[Employment Agreement](exhibit107-sx1.htm)[by and between Lincoln Savings Bank](exhibit107-sx1.htm)[and](exhibit107-sx1.htm)[Emily](exhibit107-sx1.htm)[Girsch](exhibit107-sx1.htm)</u>, dated as of September 16, 2024 |
| 10.8 | <u>[Employment Agreement](exhibit108-sx1.htm)[by and among Lincoln Bancorp, Lincoln Savings Bank and](exhibit108-sx1.htm)[Karen](exhibit108-sx1.htm)[Barnes](exhibit108-sx1.htm)</u>, dated as of June 9, 2025 |
| 10.9 | <u>[Employment Agreement](exhibit109-sx1.htm)[by](exhibit109-sx1.htm)[and be](exhibit109-sx1.htm)[tween Lincoln Savings Bank and Rebecca](exhibit109-sx1.htm)[Bell](exhibit109-sx1.htm)[, dated as of December 12, 2025](exhibit109-sx1.htm)</u> |
| 10.10 | <u>[Employment Agreement](exhibit1010-sx1.htm)[by and between](exhibit1010-sx1.htm)[Lincoln Savings Bank and](exhibit1010-sx1.htm)[Dan](exhibit1010-sx1.htm)[Downs](exhibit1010-sx1.htm)[, dated as of](exhibit1010-sx1.htm)[April 3, 2015](exhibit1010-sx1.htm)</u> |
| 10.11 | <u>[Lincoln Bancorp 2019 Equity Incentive Plan (](exhibit1011-sx1.htm)["](exhibit1011-sx1.htm)[2019 Plan](exhibit1011-sx1.htm)["](exhibit1011-sx1.htm)[)](exhibit1011-sx1.htm)</u> |
| 10.12 | <u>[Lincoln Bancorp 2026 Equity Incentive Plan](exhibit1012-sx1.htm)</u> |
| 10.13 | <u>[Form of Restricted Stock Unit Award Agreement under the 2019 Plan](exhibit1013-sx1.htm)</u> |
| 16.1 | <u>[Letter from Forvis Mazars, LLP, dated](exhibit161-sx1.htm)[J](exhibit161-sx1.htm)[une](exhibit161-sx1.htm)[25](exhibit161-sx1.htm)[, 2026, regarding change in accountants.](exhibit161-sx1.htm)</u>  |
| 21.1 | <u>[List of Subsidiaries](exhibit211-sx1.htm)</u>  |
| 23.1 | <u>[Consent of Wipfli LLP](exhibit231-sx1.htm)</u> |
| 23.2 | <u>[Consent of Forvis Mazars, LLP](exhibit232-sx1.htm)</u> |

---

------

---

| | |
|:---|:---|
| **Number** | **Description** |
| 23.3 | <u>[Consent of Alston & Bird LLP (included in Exhibit 5.1)](exhibit51-sx1.htm)</u> |
| 24.1 | <u>[Power of Attorney (included on the signature page hereto)](#i7085be1544ff4b7d9fd2b45737811e0a_193)</u> |
| 107 | <u>[Filing Fee Table](lsb-s1exfilingfees.htm)</u> |

---

__________________

\*To be filed by amendment.

†Certain of the exhibits and schedules to this Exhibit have been omitted in accordance with Regulation S-K Item 601(a)(5). The Registrant agrees to furnish a copy of all omitted exhibits and schedules to the SEC upon its request.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(b)Financial Statement Schedules:** None

**Item 17. Undertakings.**

Insofar as indemnification for liabilities arising under the Securities Act of 1933 (the "Securities Act") may be permitted to directors, officers and controlling persons of the registrant pursuant to the indemnification provisions described herein, or otherwise, the registrant has been advised that in the opinion of the SEC such indemnification is against public policy as expressed in the Securities Act and is, therefore, unenforceable. In the event that a claim for indemnification against such liabilities (other than the payment by the registrant of expenses incurred or paid by a director, officer or controlling person of the registrant in the successful defense of any action, suit or proceeding) is asserted by such director, officer or controlling person in connection with the securities being registered, the registrant will, unless in the opinion of its counsel the matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction the question whether such indemnification by it is against public policy as expressed in the Securities Act of 1933 and will be governed by the final adjudication of such issue.

The undersigned registrant hereby undertakes that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)For purposes of determining any liability under the Securities Act of 1933, the information omitted from the form of prospectus filed as part of this registration statement in reliance upon Rule 430A and contained in a form of prospectus filed by the registrant pursuant to Rule 424(b)(1) or (4) or 497(h) under the Securities Act shall be deemed to be part of this registration statement as of the time it was declared effective.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)For the purpose of determining any liability under the Securities Act of 1933, each post-effective amendment that contains a form of prospectus shall be deemed to be a new registration statement relating to the securities offered therein, and the offering of such securities at that time shall be deemed to be the initial *bona fide* offering thereof.

------

**SIGNATURES**

Pursuant to the requirements of the Securities Act of 1933, as amended, the registrant has duly caused this registration statement to be signed on its behalf by the undersigned, thereunto duly authorized, in Reinbeck, Iowa, on the 25th day of June, 2026.

---

| | |
|:---|:---|
| LINCOLN BANCORP | LINCOLN BANCORP |
| By: | /s/ Sean Willett |
|  | Sean Willett |
|  | President and Chief Executive Officer |

---

**POWER OF ATTORNEY**

KNOW ALL PERSONS BY THESE PRESENTS, that each person whose signature appears below constitutes and appoints Sean Willett and Andy Borrmann, and each one of them, as his or her true and lawful attorneys-in-fact and agents, with full power of substitution and resubstitution, for him or her and in their name, place and stead, in any and all capacities, to sign any and all amendments (including post-effective amendments) to this registration statement, and to sign any registration statement for the same offering covered by this registration statement that is to be effective on filing pursuant to Rule 462(b) under the Securities Act of 1933, as amended, and all post-effective amendments thereto, and to file the same, with all exhibits thereto and other documents in connection therewith, with the Securities and Exchange Commission, granting unto said attorneys-in-fact and agents, and each of them, full power and authority to do and perform each and every act and thing requisite and necessary to be done in connection therewith, as fully to all intents and purposes as he or she might or could do in person, hereby ratifying and confirming all that said attorneys- in-fact and agents or any of them, or his or her substitute or substitutes, may lawfully do or cause to be done by virtue hereof.

------

Pursuant to the requirements of the Securities Act of 1933, as amended, this registration statement has been signed below by the following persons in the capacities and on the dates indicated.

---

| | | |
|:---|:---|:---|
| **Name** | **Position** | **Date** |
| /s/ Sean Willett | Director, President and Chief Executive Officer and Director<br>*(Principal Executive Officer)* | June 25, 2026 |
| Sean Willett | Director, President and Chief Executive Officer and Director<br>*(Principal Executive Officer)* | June 25, 2026 |
| /s/ Andy Borrmann | Executive Vice President and Chief Financial Officer<br>*(Principal Financial and Accounting Officer)* | June 25, 2026 |
| Andy Borrmann | Executive Vice President and Chief Financial Officer<br>*(Principal Financial and Accounting Officer)* | June 25, 2026 |
| /s/ W. Scott Bush | Director | June 25, 2026 |
| W. Scott Bush | Director | June 25, 2026 |
| /s/ Spencer Cohn | Director | June 25, 2026 |
| Spencer Cohn | Director | June 25, 2026 |
| /s/ David Deeds | Director | June 25, 2026 |
| David Deeds | Director | June 25, 2026 |
| /s/ Rodney Foster | Director | June 25, 2026 |
| Rodney Foster | Director | June 25, 2026 |
| /s/ Sally Hollis | Chairman | June 25, 2026 |
| Sally Hollis | Chairman | June 25, 2026 |
| /s/ Michael Peterson | Director | June 25, 2026 |
| Michael Peterson | Director | June 25, 2026 |
| /s/ Denny Presnall | Director | June 25, 2026 |
| Denny Presnall | Director | June 25, 2026 |
| /s/ John Teeple | Director | June 25, 2026 |
| John Teeple | Director | June 25, 2026 |

---

## Ex-Filing

?xml version='1.0' encoding='ASCII'? EX-FILING FEES

---

| |
|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Calculation of Filing Fee Tables**  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **S-1**  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **LINCOLN BANCORP /IA/**  |

---

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Security Type**  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Security Class Title**  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Fee Calculation or Carry Forward Rule**  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Amount Registered**  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Proposed Maximum Offering Price Per Unit**  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Maximum Aggregate Offering Price**  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Fee Rate**  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Amount of Registration Fee**  |
| **Newly Registered Securities** | **Newly Registered Securities** | **Newly Registered Securities** | **Newly Registered Securities** | **Newly Registered Securities** | **Newly Registered Securities** | **Newly Registered Securities** | **Newly Registered Securities** | **Newly Registered Securities** | **Newly Registered Securities** |
| Fees to be Paid | 1 | Equity | Common Stock, par value $0.01 per share, of the Selling Shareholders | 457(a) | 821917 | $12.36 | $10158894.12 | 0.0001381 | $1402.94 |
| Fees Previously Paid |  |  |  |  |  |  |  |  |  |
| **Carry Forward Securities** | **Carry Forward Securities** | **Carry Forward Securities** | **Carry Forward Securities** | **Carry Forward Securities** | **Carry Forward Securities** | **Carry Forward Securities** | **Carry Forward Securities** | **Carry Forward Securities** | **Carry Forward Securities** |
| Carry Forward Securities |  |  |  |  |  |  |  |  |  |
|  |  |  | Total Offering Amounts: | Total Offering Amounts: | Total Offering Amounts: |  | $10158894.12  |  | $1402.94  |
|  |  |  | Total Fees Previously Paid:  | Total Fees Previously Paid:  | Total Fees Previously Paid:  |  |  |  | $0.00  |
|  |  |  | Total Fee Offsets:  | Total Fee Offsets:  | Total Fee Offsets:  |  |  |  | $0.00  |
|  |  |  | Net Fee Due:  | Net Fee Due:  | Net Fee Due:  |  |  |  | $1402.94  |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Offering Note** <br>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <sup>1</sup> The offering reflects the number of shares of common stock that the selling shareholders may offer for resale from time to time pursuant to this registration statement. The proposed maximum offering price per unit and the proposed maximum aggregate offering price are estimated solely for purposes of calculating the registration fee pursuant to Rule 457(a) under the Securities Act of 1933, as amended, and are based on a good-faith estimate of the value of the registrant's common stock. The proposed maximum offering price per unit does not necessarily represent the actual resale price of the shares. We will not receive any proceeds from the sale of shares by the selling shareholders.

---

| |
|:---|
| |
| **Rules 457(b) and 0-11(a)(2)** |
| Fee Offset Claims |
| Fee Offset Sources |
| **Rule 457(p)** |
| Fee Offset Claims |
| Fee Offset Sources |

---

## Exhibit 3.1

**Exhibit 3.1**

**AMENDED AND RESTATED ARTICLES OF INCORPORATION** 

**OF**

**LINCOLN BANCORP**

TO THE SECRETARY OF STATE

OF THE STATE OF IOWA:

Pursuant to the provisions of Sections 1003 and 1007 of the Iowa Business Corporation Act, Chapter 490, Code of Iowa, the undersigned corporation adopts the following Amended and Restated Articles of Incorporation:

**<u>ARTICLE I</u>**

The name of the corporation is Lincoln Bancorp (the "corporation").

**<u>ARTICLE II</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.The aggregate number of shares of stock of all classes which the corporation shall have authority to issue is fifty million one hundred thousand (50,100,000) shares, of which twenty-five million (25,000,000) shares shall be Class A Common Stock, par value $0.01 per share ("Class A Common Stock"), twenty-five million (25,000,000) shares shall be Class B Common Stock, par value $0.01 per share ("Class B Common Stock" and, together with the Class A Common Stock, the "Common Stock"), and one hundred thousand (100,000) shares shall be preferred stock, par value $0.01 per share ("Preferred Stock"). Each outstanding share of Class A Common Stock as of July 10, 2017 was automatically converted into 300 shares of Class A Common Stock upon the filing of an amendment to the corporation's Articles of Incorporation by the Secretary of State of Iowa on such date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.The Board of Directors of the corporation is hereby granted the authority, subject to the provisions of this Article II and to the limitations prescribed by law, to classify the unissued shares of Preferred Stock into one or more series of Preferred Stock and with respect to each such series to fix by resolution or resolutions providing for the issuance of such series the terms, including the preferences, rights and limitations, of such series, in each case without shareholder approval. Each series shall consist of such number of shares as shall be stated in the resolution or resolutions providing for the issuance of such series together with such additional number of shares as the Board of Directors by resolution or resolutions adopted from time to time may determine to issue as a part of the series. The Board of Directors may from time to time decrease the number of shares of any series of Preferred Stock (but not below the number thereof then outstanding) by providing that any unissued shares previously

------

assigned to such series shall no longer constitute part thereof and restoring such unissued shares to the status of authorized but unissued shares of Preferred Stock.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.The authority of the Board of Directors with respect to each series of Preferred Stock shall include, but not be limited to, the determination or fixing of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)The designation of the series.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)The dividend rate, if any, of the series, the conditions and dates upon which any dividends payable on the series shall be payable, the relation which the dividends payable on the series shall bear to the dividends payable on any other class or classes of stock or any other series of Preferred Stock, and whether the dividends shall be cumulative, noncumulative or partially cumulative.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)Whether the shares of the series shall be subject to redemption by the corporation and whether such redemption is at the option of the corporation, the holder of shares of the series or any other person, and, if made subject to redemption, the times, prices and other terms and conditions of the redemption.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)The rights of the holders of the shares of the series upon the dissolution of, or upon the distribution of assets of, the corporation, and the amount payable on the shares of the series in the event of voluntary or involuntary liquidation of the corporation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)The terms and amount of any sinking fund provided for the purchase or redemption of the shares of the series.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)Whether or not the shares of the series shall be convertible into or exchangeable for shares of any other classes or of any other series of any class or classes of stock of the corporation and, if provision be made for conversion or exchange, the times, prices, rates, adjustments, and other terms and conditions of the conversion or exchange.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)The extent, if any, to which the holders of the shares of the series shall be entitled to vote with respect to the election of directors or otherwise.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.The holders of shares of each series of Preferred Stock shall be entitled upon liquidation or dissolution, or upon the distribution of the assets, of the corporation to such preferences as provided in the resolution or resolutions creating the series, and no more, before any distribution of the assets of the corporation shall be made to the holders of any other series of Preferred Stock or to the holders of shares of Common Stock. Whenever the holders of shares of Preferred Stock of all series shall have been paid the full amounts to which they shall be entitled by reason of

------

such preferences, the holders of shares of Common Stock shall be entitled to share ratably in all the remaining assets of the corporation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.Except as otherwise required by law, each holder of shares of Class A Common Stock shall be entitled to one vote for each share of Class A Common Stock held on the applicable record date by such shareholder of record on the books of the corporation on all matters voted upon by shareholders of the corporation; provided, however, that holders of Class A Common Stock, as such, shall not be entitled to vote on any amendment to these Amended and Restated Articles of Incorporation that relates solely to the terms, number of shares, powers, designations, preferences, or relative, participating, optional or other annual rights (including, without limitation, voting rights), or to qualifications, limitations or restrictions thereon, of the Preferred Stock or any series thereof, with respect to which the holders of outstanding shares of Preferred Stock or any series thereof are entitled, either separately or together with the holders of outstanding shares of one or more other classes or series of capital stock of the corporation, to vote thereon pursuant to these Amended and Restated Articles of Incorporation, as amended from time to time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.Except as otherwise required by law, no holder of shares of Class B Common Stock shall have any right to vote such shares on any matter voted upon by shareholders of the corporation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.Except as otherwise required by law and except for such voting rights with respect to the election of directors or other matters as may be stated in the resolution or resolutions of the Board of Directors providing for the issuance of any series of Preferred Stock, no holder of any series of Preferred Stock shall have any right to vote shares of Preferred Stock on any matters voted upon by shareholders of the corporation.

**<u>ARTICLE III</u>**

The business and affairs of the corporation shall be managed by or under the direction of the Board of Directors. The number of directors of the corporation shall be fixed from time to time by resolution adopted by the affirmative vote of a majority of the Board of Directors of the corporation.

The Board of Directors of the corporation shall be divided into three classes, Class I, Class II and Class III, as nearly equal in number as the then total number of directors constituting the entire Board of Directors permits with the term of office of one class expiring each year.

Prior to the 2018 annual meeting of shareholders, the Board of Directors shall determine which directors shall be designated as Class I, Class II and Class III directors. The term of the initial Class I directors shall terminate on the date of the 2018 annual meeting of shareholders; the term of the initial Class II directors shall terminate on the date of the 2019 annual meeting of shareholders; and the term of the initial Class III directors shall terminate on the date of the 2020

------

annual meeting of shareholders. At each annual meeting of shareholders beginning in 2018, successors to the class of directors whose term expires at that annual meeting shall be elected for a three-year term.

Except as may be stated in the resolution or resolutions of the Board of Directors providing for the issuance of any series of Preferred Stock, the shareholders may remove one or more directors of the corporation only for cause. As used herein, "for cause" means either (i) conviction of a felony by a court of competent jurisdiction and such conviction is no longer subject to direct appeal or (ii) adjudication for gross negligence or dishonest conduct in the performance of a director's duty to this corporation by a court of competent jurisdiction and such adjudication is no longer subject to direct appeal.

**<u>ARTICLE IV</u>**

Shareholders shall not have any preemptive right to purchase all or any part of any newly issued shares of stock of the corporation now or hereafter authorized or issued, or any securities exchangeable for or convertible into such shares, or any warrants or other instruments evidencing rights or options to subscribe for, purchase, or otherwise acquire such shares, except, in each case, as the Board of Directors may from time to time approve, and on such terms as the Board of Directors may from time to time approve.

**<u>ARTICLE V</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.A director of this corporation shall not be personally liable to the corporation or its shareholders for monetary damages for any action taken, or any failure to take any action, as a director, except for liability for: (i) the amount of a financial benefit received by a director to which the director is not entitled; (ii) an intentional infliction of harm on the corporation or the shareholders; (iii) a violation of Section 833 of the Iowa Business Corporation Act; or (iv) an intentional violation of criminal law. No amendment to or repeal of this Article shall apply to or have any effect on the liability or alleged liability of any director of the corporation for or with respect to any acts or omissions of such director occurring prior to such amendment or repeal. If Iowa law is hereafter changed to permit further elimination or limitation of the liability of directors for monetary damages to the corporation or its shareholders, then the liability of the director of this corporation shall be eliminated or limited to the fullest extent then permitted. The directors of this corporation have agreed to serve as directors in reliance upon the provisions of this Article.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.This corporation shall, to the maximum extent permitted by the Iowa Business Corporation Act, indemnify each director and officer (as such terms are defined in Section 850(2) of the Iowa Business Corporation Act) against liability (as such term is defined in Section 850(5) of the Iowa Business Corporation Act) for any action taken, or any failure to take any action, as a director or officer, except liability for any of the following: (i) receipt of a financial benefit to which the director or officer is not entitled; (ii) an intentional infliction of harm on the

------

corporation or the shareholders; (iii) in the case of a director, a violation of Section 833 of the Iowa Business Corporation Act; or (iv) an intentional violation of criminal law. Without limiting the foregoing, the corporation shall exercise all of its permissive powers as often as necessary to indemnify and advance expenses to its directors or officers to the fullest extent permitted by law. If the Iowa Business Corporation Act is hereafter amended to authorize broader indemnification or advancement for expenses, then the indemnification and advancement obligations of the corporation shall be deemed amended automatically and without any further action to require indemnification and advancement for expenses of directors and officers to the fullest extent permitted by law. Any repeal or modification of this Article by the shareholders of the corporation shall be prospective only and shall not adversely affect any indemnification or advancement obligations of the corporation with respect to any state of facts existing at or prior to the time of such repeal or modification.

**<u>ARTICLE VI</u>**

The shareholders shall be permitted to call a special meeting of shareholders in accordance with Section 702 of the Iowa Business Corporation Act if and only if the holders of at least twenty-five percent (25%) of all the votes entitled to be cast on any issue proposed to be considered at the proposed special meeting sign, date, and deliver to the corporation one or more written demands for the meeting describing the purpose or purposes for which it is to be held.

## Exhibit 3.2

**Exhibit 3.2**

**AMENDED AND RESTATED BYLAWS**

**OF**

**LINCOLN BANCORP**

(hereinafter referred to as "Corporation")

**ARTICLE I**

**Offices**

The principal office of the Corporation shall be located at any place, either within or without the State of Iowa, as designated in the Corporation's most current Biennial Report filed with the Iowa Secretary of State. The Corporation may have such other offices, either within or without the State of Iowa, as the Board of Directors may designate or as the business of the Corporation may require from time to time.

The registered office of the Corporation required by the Iowa Business Corporation Act to be continuously maintained in the State of Iowa may be, but need not be, the same as its principal office in the State of Iowa, and the address of the registered office may be changed from time to time by the Board of Directors in accordance with the Iowa Business Corporation Act.

**ARTICLE II**

**Shareholders**

Section 2.1&nbsp;&nbsp;&nbsp;&nbsp;<u>Annual Meeting.</u> The annual meeting of the shareholders, for the election of directors and for the transaction of such other business as may properly come before the meeting, shall be held at such date, time and place as the Board of Directors shall determine from time to time and set forth in the notice of meeting. If the election of directors shall not be held on the day designated for the annual meeting of the shareholders, or at any adjournment thereof, the Board of Directors shall cause the election to be held at a special meeting of the shareholders as soon thereafter as may be convenient.

Section 2.2&nbsp;&nbsp;&nbsp;&nbsp;<u>Special Meetings.</u> Special meetings of the shareholders, for any purpose or purposes, unless otherwise provided by law, may be called by the Chairman of the Board, Chief Executive Officer or President or by shareholders entitled to cast at least twenty-five percent (25%) of all the votes entitled to be cast on any issue proposed to be considered at the meeting. Such written demand shall state the purpose or purposes for which such meeting is to be called, and no business other than that so specified in such demand shall be considered at any special meeting.

Section 2.3&nbsp;&nbsp;&nbsp;&nbsp;<u>Place of Shareholders' Meetings.</u> The Board of Directors may designate any place, either within or without the State of Iowa, as the place of meeting for any annual meeting or special meeting, or a meeting can be held virtually with no designated physical location. The Board of Directors, in its sole discretion, and subject to such guidelines and procedures as the Board of Directors may adopt, may allow shareholders and proxyholders not physically present at a meeting of shareholders to participate in a meeting of the shareholders and be deemed present in person and vote at a meeting of shareholders, whether such meeting is to be

------

held at a designated place or solely by means of remote communication or both. The Corporation shall implement reasonable measures to verify that each person deemed present and permitted to vote at the meeting by means of remote communications is a shareholder or proxyholder; provide such shareholders and proxyholders a reasonable opportunity to participate in the meeting and to vote on matters submitted to the shareholders, including an opportunity to read or hear the proceedings of the meetings substantially concurrently with such proceedings; and if any shareholder or proxyholder votes or takes other action at the meeting by means of remote communication, a record of such vote or other action shall be maintained by the Corporation.

Section 2.4&nbsp;&nbsp;&nbsp;&nbsp;<u>Notice of Meetings.</u> Written notice stating the date, time and place of each annual and special shareholders' meeting and, in the case of a special meeting, the purpose or purposes for which the meeting is called, shall be given or sent to each shareholder of record entitled to vote at such meeting, by any means of delivery, not less than ten (10) nor more than sixty (60) days before the date of the meeting. Notice can be given in person, by mail or by electronic transmission, if it is retrievable in perceivable form and the Corporation and the shareholder have consented in writing to use this form of electronic communication. The notice must include the record date for determining the shareholders entitled to vote at the meeting, if such date is different than the record date for determining the shareholders entitled to notice of the meeting. If participation by remote communication is allowed, the notice must also describe the means of remote communication to be used. If mailed postpaid and correctly addressed to the shareholder's address as shown in the Corporation's current record of shareholders, such notice will be effective upon deposit in the United States mail. If electronically transmitted, such notice will be effective when electronically transmitted to the shareholder in a manner authorized by the shareholder.

Without limiting the manner by which notice otherwise may be given effectively to shareholders, any notice to shareholders given by the Corporation under any provision of the Iowa Business Corporation Act, the Articles of Incorporation or these bylaws shall be effective if given by a form of electronic transmission consented to by the shareholder to whom notice is given and shall be deemed delivered immediately upon electronic transmission of such notice. Any such consent shall be revocable by the shareholder by written notice to the Corporation or as otherwise provided by law. Any such consent shall be deemed revoked if the Corporation is unable to deliver by electronic transmission two consecutive notices given by the Corporation in accordance with such consent and such inability becomes known to the Secretary or an Assistant Secretary of the Corporation or to the transfer agent, or other person responsible for the giving of notice; provided, however, the inadvertent failure to treat such inability as a revocation shall not invalidate any meeting or other action. "Electronic transmission" means any form of communication, not directly involving the physical transmission of paper, that creates a record that may be retained, retrieved, and reviewed by a recipient thereof, and that may be directly reproduced in paper form by such a recipient through an automated process.

Section 2.5&nbsp;&nbsp;&nbsp;&nbsp;<u>Waiver of Notice and Waiver of Objections.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A)&nbsp;&nbsp;&nbsp;&nbsp;A written waiver of notice of any meeting of the shareholders signed by a shareholder entitled to such notice, whether before or after the date and time stated in such notice

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for the holding of such meeting, shall be equivalent to the giving of such notice to such shareholder in due time as required by law and these bylaws. Any such waiver shall be delivered to the Corporation for inclusion in the minutes or filing with the corporate records.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B)&nbsp;&nbsp;&nbsp;&nbsp;A shareholder's attendance at any shareholders' meeting, in person or by proxy, waives (i) objection to lack of notice of such meeting and irregularities in any notice given, unless the shareholder at the beginning of the meeting or promptly upon the shareholder's arrival objects to holding the meeting or transacting business at the meeting, and (ii) objection to consideration of a particular matter at the meeting that is not within the purpose or purposes described in the meeting notice, unless the shareholder objects to considering the matter when it is presented.

Section 2.6&nbsp;&nbsp;&nbsp;&nbsp;<u>Record Date.</u> For the purpose of determining shareholders entitled to notice of or to vote at any meeting of shareholders or any adjournment thereof, or shareholders entitled to receive a distribution, or in order to make a determination of shareholders for any other proper purpose, the Board of Directors may fix a future date, not more than seventy (70) days before the meeting or action requiring such determination of shareholders, as the record date, and, in case of a meeting of shareholders, not less than ten (10) days before the date of such meeting. If no record date is fixed for the determination of shareholders entitled to notice of or to vote at a meeting of shareholders, or shareholders entitled to receive payment of a distribution, the date on which notice of the meeting is mailed or the date of action by the Board of Directors declaring such distribution is adopted, as the case may be, shall be the record date for such determination of shareholders. When a determination of shareholders entitled to vote at any meeting of shareholders has been made as provided in this Section 2.6, such determination shall apply to any adjournment thereof, unless the Board of Directors fixes a new record date, which it must do if the meeting is adjourned to a new date more than one hundred twenty (120) days after the date fixed for the original meeting.

Section 2.7&nbsp;&nbsp;&nbsp;&nbsp;<u>Shareholders' List.</u> After fixing a record date for a meeting, the Secretary shall prepare an alphabetical list of the names of all shareholders who are entitled to notice of and to vote at the shareholders' meeting. The list must be arranged by voting group and within each voting group by class or series of shares, and show the address of and number of shares held by each shareholder. The shareholders' list must be available for inspection by any shareholder at the Corporation's principal office at such shareholder's expense or at a place identified in the meeting notice in the city where the meeting will be held beginning two business days after notice of the meeting is given and continuing through the meeting. The Corporation shall make the shareholders' list available at the meeting, and any shareholder, or a shareholder's agent or attorney, is entitled to inspect the list at any time during the meeting or any adjournment thereof.

Section 2.8&nbsp;&nbsp;&nbsp;&nbsp;<u>Quorum.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A)&nbsp;&nbsp;&nbsp;&nbsp;A majority of the votes entitled to be cast on a matter by a voting group, represented in person or by proxy, constitutes a quorum of that voting group for action on that matter. If less than a majority of such votes are represented at a meeting, a majority of the votes so represented may adjourn the meeting from time to time.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B)&nbsp;&nbsp;&nbsp;&nbsp;When a meeting is adjourned to a different date, time or place, notice need not be given if the new date, time or place is announced at the meeting before adjournment; provided, however, that if the date of any adjourned meeting is more than one hundred twenty (120) days after the date fixed for the original meeting, or if a new record date is fixed for the adjourned meeting, notice of the adjourned meeting must be given in conformity with these bylaws. At such adjourned meeting at which there is a quorum, any business may be transacted which might have been transacted at the meeting as originally notified.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C)&nbsp;&nbsp;&nbsp;&nbsp;The shareholders present at a duly organized meeting may continue to transact business until adjournment, notwithstanding the withdrawal of votes entitled to be cast leaving less than a quorum.

Section 2.9&nbsp;&nbsp;&nbsp;&nbsp;<u>Conduct of the Meeting.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A)&nbsp;&nbsp;&nbsp;&nbsp;At each meeting of shareholders, a Chairperson shall preside. The Chairperson shall be appointed by the Board of Directors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B)&nbsp;&nbsp;&nbsp;&nbsp;The Chairperson shall determine the order of business and shall have the authority to establish rules for the conduct of the meeting. Any rules adopted for, and the conduct of, the meeting shall be fair to the shareholders.

Section 2.10&nbsp;&nbsp;&nbsp;&nbsp;<u>Proxies.</u> At all meetings of shareholders, a shareholder entitled to vote may vote either in person or by proxy appointed in writing or by electronic transmission by the shareholder or by the shareholder's agent or attorney-in-fact. An electronic transmission must contain or be accompanied by information from which it can be determined that the shareholder or the shareholder's agent or attorney-in-fact authorized the electronic transmission. Such appointment of a proxy is effective when received by the officer or agent of the Corporation authorized to tabulate votes, before or at the time of the meeting. No proxy shall be valid after eleven months from the date of its execution, unless otherwise provided in the appointment. An appointment of a proxy is revocable unless the appointment form or electronic transmission states that it is irrevocable and the appointment is coupled with an interest.

Section 2.11&nbsp;&nbsp;&nbsp;&nbsp;<u>Voting of Shares.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A)&nbsp;&nbsp;&nbsp;&nbsp;Except as otherwise provided by law or the Articles of Incorporation, each outstanding share regardless of class shall be entitled to one vote on each matter submitted to a vote at a shareholders' meeting. Shareholders do not have the right to cumulate their votes for directors unless the Articles of Incorporation so provide.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B)&nbsp;&nbsp;&nbsp;&nbsp;If a quorum exists, action on a matter by a voting group is approved if the votes cast within the voting group favoring the action exceed the votes cast opposing the action, unless the Articles of Incorporation or the Iowa Business Corporation Act provide otherwise. Unless otherwise provided by the Articles of Incorporation or these bylaws, the vote required for election of a director by the shareholders shall, except in a contested election, be the affirmative vote of a majority of the votes cast in favor of or against the election of a nominee at a meeting of shareholders. In a contested election, directors shall be elected by a plurality of the votes cast

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at a meeting of shareholders by the holders of shares entitled to vote in the election. An election shall be considered contested if, as of the record date, there are more nominees for election than positions on the board of directors to be filled by election at the meeting.

Section 2.12&nbsp;&nbsp;&nbsp;&nbsp;<u>Voting of Shares by Certain Shareholders.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A)&nbsp;&nbsp;&nbsp;&nbsp;Absent special circumstances, the shares of the Corporation are not entitled to vote if they are treasury shares or if they are owned, directly or indirectly, by a second corporation, and the Corporation owns, directly or indirectly, a majority of the shares entitled to vote for directors of the second corporation. The foregoing does not limit the power of the Corporation to vote any shares, including its own shares, held by it in a fiduciary capacity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B)&nbsp;&nbsp;&nbsp;&nbsp;Shares standing in the name of another corporation may be voted by such officer, agent or proxy as the bylaws of such corporation may prescribe, or, in the absence of such provision, as the board of directors of such corporation may determine. Shares held by an administrator, executor, guardian or conservator may be voted by such fiduciary, either in person or by proxy, without a transfer of such shares into such fiduciary's name. Shares standing in the name of a trustee may be voted by such trustee, either in person or by proxy, but no trustee shall be entitled to vote such shares without a transfer of such shares into the trustee's name. Shares standing in the name of a receiver may be voted by such receiver, and shares held by or under the control of a receiver may be voted by such receiver without the transfer thereof into the receiver's name if authority to do so is contained in an appropriate order of the court by which such receiver was appointed. A shareholder whose shares are pledged shall be entitled to vote such shares until the shares have been transferred into the name of the pledgee, and thereafter, the pledgee shall be entitled to vote the shares so transferred.

Section 2.13&nbsp;&nbsp;&nbsp;&nbsp;<u>Action Without Meeting.</u> Any action required or permitted to be taken at a shareholders' meeting may be taken without a meeting or vote, if one or more written consents describing the action taken are signed by the shareholders of outstanding shares having not less than ninety percent (90%) of the votes entitled to be cast at a meeting at which all shares entitled to vote on the action were present and voted, and are delivered to the Corporation for inclusion in the minutes or filing with the corporate records. To be effective, valid written consents from a sufficient number of shareholders must be obtained within 60 days of the earliest dated consent. A shareholder may revoke a consent by delivering to the Corporation a revocation signed by the shareholder prior to the receipt by the Corporation of sufficient written consents to take the corporate action. If not otherwise fixed by law or in accordance with these bylaws, the record date for determining shareholders entitled to take action without a meeting is the date the first shareholder signs such a written consent.

Section 2.14&nbsp;&nbsp;&nbsp;&nbsp;<u>Voting Group.</u> The term "voting group" means all shares of one or more classes or series that under the Articles of Incorporation or the Iowa Business Corporation Act are entitled to vote and be counted together collectively on a matter at a meeting of shareholders. All shares entitled by the Articles of Incorporation or the Iowa Business Corporation Act to vote generally on a matter are, for that purpose, a single voting group.

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Section 2.15&nbsp;&nbsp;&nbsp;&nbsp;<u>Facsimile and Electronic Signatures.</u> Facsimile and electronic signatures of any shareholder may be used whenever as authorized by the Board of Directors or a committee thereof. An "electronic signature" is any electronic symbol or process attached to or logically associated with a document sent by electronic transmission and executed or adopted by a person with such intent to sign such document. "Electronic signature" includes: (i) a unique password or unique identification assigned to a person by the Corporation; (ii) a person's typed name attached to or part of an electronic transmission sent by or from a source authorized by such person such as an e-mail address provided by such person as that person's e-mail address; (iii) a person's facsimile signature; and (iv) any other form of electronic signature approved by the Board of Directors.

Section 2.16&nbsp;&nbsp;&nbsp;&nbsp;<u>Notice of Shareholder Proposals.</u> At an annual meeting of the shareholders, only such business shall be conducted as shall have been properly brought before the meeting. To be properly brought before an annual meeting, business must be (i) specified in the notice of meeting (or any supplement thereto) given by or at the direction of the Board of Directors, (ii) otherwise properly brought before the meeting by or at the direction of the Board of Directors, or (iii) a proper matter for shareholder action that has been properly brought before the meeting by a shareholder who complies with the notice procedures set forth in this Section and who is a shareholder of record on the date of the giving of notice provided for in this Section 2.16 and on the record date for the determination of shareholders entitled to vote at such annual meeting and on the date of the meeting. For such business to be considered properly brought before the meeting by a shareholder, such shareholder must, in addition to any other applicable requirements, have given timely notice in proper form of such shareholder's intent to bring such business before such meeting. To be timely given, a shareholder's notice must be delivered to, or mailed and received by, the Secretary at the principal executive offices of the Corporation not later than the close of business on the ninetieth (90<sup>th</sup>) day, nor earlier than the close of business on the one hundred twentieth (120<sup>th</sup>) day, prior to the anniversary date of the immediately preceding year's annual meeting; provided, however, that in the event that the annual meeting is called for a date that is not within thirty (30) days before or after such anniversary date, notice by the shareholder to be timely must be so delivered not later than the close of business on the tenth (10<sup>th</sup>) day following the date on which such notice of the date of the meeting was mailed or public disclosure of the date of the meeting was made, whichever occurs first. To be in proper form, a shareholder's notice to the Secretary shall be in writing and shall set forth: (a) the name and record address of the shareholder who intends to propose the business and the class or series and number of shares of capital stock of the Corporation which are owned beneficially or of record by such shareholder; (b) a representation that the shareholder is a holder of record of stock of the Corporation entitled to vote at such meeting and intends to appear in person or by proxy at the meeting to introduce the business specified in the notice; (c) a brief description of the business desired to be brought before the annual meeting and the reasons for conducting such business at the annual meeting; (d) any material interest of the shareholder in such business; and (e) any other information that is required to be provided by the shareholder under Regulation 14A under the Securities Exchange Act of 1934, as amended (the "Exchange Act"). In addition to being timely, a shareholder's notice shall promptly update and supplement any information previously provided to the Corporation under this Section 2.16, if necessary, so that the information provided or required to be provided shall be continue to be true and complete as of

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the date that is ten (10) business days prior to the meeting or any adjournment or postponement thereof, and such update and supplement shall be delivered to the Secretary at the registered office of the Corporation not later than five (5) business days prior to the date for the meeting or the applicable adjournment or postponement thereof in the case of an adjourned or postponed meeting.

Notwithstanding the foregoing, in order to include information with respect to a shareholder proposal in the proxy statement and form of proxy for a shareholder's meeting, shareholders must provide notice as required by, and otherwise comply with the requirements of, the Exchange Act and the regulations promulgated thereunder. No business shall be conducted at the annual meeting except business brought before the annual meeting in accordance with the procedures set forth in this Section. The Chairperson of the meeting may refuse to acknowledge the proposal of any business not made in compliance with the foregoing procedure. In addition, if the shareholder (or a qualified representative of the shareholder) does not appear at the meeting of shareholders to present a nomination or proposal, such nomination or proposal shall be disregarded, notwithstanding that proxies in respect of such vote may have been received by the Corporation. Except as required by law, nothing in this Section shall obligate the Corporation or the Board of Directors to include in any proxy statement or other shareholder communication distributed on behalf of the Corporation or the Board of Directors information with respect to any proposal submitted by a shareholder.

Section 2.17&nbsp;&nbsp;&nbsp;&nbsp;<u>Nominations for Directors.</u> Subject to the rights granted to a particular class or series of stock, nominations for the election of directors may be made (i) by or at the direction of the Board of Directors or (ii) by any shareholder entitled to vote for the election of directors who complies with the procedures set forth in this Section. In addition to any other applicable requirements, all nominations by shareholders must be given in a timely manner in proper written form to the Secretary. To be timely given, a shareholder's notice must be delivered to, or mailed and received by, to the Secretary at the registered office of the Corporation, in the case of an annual meeting, in accordance with the provisions set forth in Section 2.16, and, in the case of a special meeting of shareholders called for the purpose of electing directors, not later than the close of business on the tenth (10<sup>th</sup>) day following the day on which notice of the date of the special meeting was mailed or public disclosure of the date of the special meeting was made, whichever occurs first. To be in proper written form, the shareholder's notice must set forth in writing as to each person whom the shareholder proposes to nominate for election as a director (a) the name, age, business address and residence address of the person, (b) the principal occupation or employment of the person, (c) the class or series and number of shares of capital stock of the Corporation which are owned beneficially or of record by the person, (d) a description of all arrangements or understandings between the shareholder and each nominee and any other person or persons (naming such person or persons) pursuant to which the nominations are to be made by the shareholder, and (e) any other information relating to such person that is required to be disclosed in solicitations of proxies for elections of directors, or is otherwise required, in each case pursuant to Regulation 14A under the Exchange Act (including without limitation such person's written consent to being named in the proxy statement, if any, as a nominee and to serving as a director if elected). The shareholder's notice must also contain as to such shareholder giving notice the information required to be

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provided under Section 2.16. No person shall be eligible for election as a director unless nominated in accordance with the procedures set forth in these bylaws. The presiding officer of the meeting may refuse to acknowledge the nomination of any person not made in compliance with the foregoing procedures. Except as required by law, nothing in this Section shall obligate the Corporation or the Board of Directors to include in any proxy statement or other shareholder communication distributed on behalf of the Corporation or the Board of Directors information with respect to any nominee for director submitted by a shareholder.

**ARTICLE III**

**Board of Directors**

Section 3.1&nbsp;&nbsp;&nbsp;&nbsp;<u>General Powers.</u> The business and affairs of the Corporation shall be managed by or under the direction of its Board of Directors.

Section 3.2&nbsp;&nbsp;&nbsp;&nbsp;<u>Number, Tenure and Qualifications.</u> The Board of Directors of the Corporation shall consist of no fewer than five (5) directors and no more than fourteen (14) directors, with such number determined from time to time by a majority of the directors. Directors need not be residents of the State of Iowa or officers or employees of the Corporation.

Section 3.3&nbsp;&nbsp;&nbsp;&nbsp;<u>Chairperson; Vice-Chairperson</u>. The Board of Directors may appoint a director as Chairperson or Vice-Chairperson from time to time. Any Chairperson or Vice-Chairperson shall have the duties set forth in Section 3.9 of these bylaws, and shall have such other duties and responsibilities as may be assigned by the Board of Directors from time to time. Any Chairperson or Vice-Chairperson may be removed, with or without cause, by the Board of Directors. If the Chairperson is unable to serve his or her full term, the Vice-Chairperson will become the Interim Chairperson until the position may be filled by the Board of Directors. The officers of the Board of Directors shall be nominated by the Governance Committee and appointed annually by the Board of Directors at the first meeting of the Board of Directors held after each annual meeting of the shareholders. If the appointment of officers shall not be made at such meeting, such appointment shall be made as soon thereafter as may be convenient. Vacancies may be filled or new positions created and filled at any meeting of the Board of Directors.

Section 3.4&nbsp;&nbsp;&nbsp;&nbsp;<u>Annual Meeting.</u> Immediately after the final adjournment of each annual meeting of the shareholders for the election of directors, the Board of Directors shall meet, at the same place where said meeting of shareholders finally adjourned, for the election of officers and the transaction of other business. Notice of such meeting need not be given. Such meeting may be held at any other time or place as shall be specified in a notice given as hereinafter provided for special meetings of the Board of Directors or in a consent and waiver of notice thereof signed by all the directors, at which meeting the same matters shall be acted upon as is above provided.

Section 3.5&nbsp;&nbsp;&nbsp;&nbsp;<u>Regular Meetings.</u> Regular meetings of the Board of Directors shall be held at such place and at such times as the Board of Directors shall by resolution fix and determine from time to time. No notice shall be required for any such regular meeting of the Board.

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Section 3.6&nbsp;&nbsp;&nbsp;&nbsp;<u>Special Meetings; Notice.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A)&nbsp;&nbsp;&nbsp;&nbsp;Special meetings of the Board of Directors may be called by or at the request of the Chairman of the Board or the Chief Executive Officer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B)&nbsp;&nbsp;&nbsp;&nbsp;Notice of any special meeting shall be delivered to each director at least twenty-four (24) hours before the date on which the meeting is to be held, in person; by mail or other method of delivery; or by telephone, voice mail, electronic mail or transmission or other electronic means reasonable under the circumstances. If notice is in the form of an electronic transmission it must be retrievable in perceivable form and the Corporation and the director must have consented in writing to use this form of electronic communication. Each notice shall state the date, time and place of the meeting. The notice need not describe the purpose of the meeting.

Section 3.7&nbsp;&nbsp;&nbsp;&nbsp;<u>Waiver of Notice.</u> A director may waive any notice of any meeting before or after the date and time of the meeting. To be valid the waiver must be in writing, signed by the director entitled to the notice or consented to by electronic transmission, and filed with the minutes or corporate records. A director's attendance at or participation in a meeting waives any required notice to that director of the meeting unless the director at the beginning of the meeting or promptly upon the director's arrival objects to holding the meeting or transacting business at the meeting and does not thereafter vote for or assent to action taken at the meeting.

Section 3.8&nbsp;&nbsp;&nbsp;&nbsp;<u>Director's Assent Presumed.</u> A director of the Corporation who is present at a meeting of the Board of Directors when corporate action is taken is deemed to have assented to the action taken unless the director objects at the beginning of the meeting or promptly upon the director's arrival to holding the meeting or transacting business at the meeting, the director's dissent or abstention from the action taken is entered in the minutes of the meeting or the director delivers written notice of the director's dissent or abstention to the presiding officer of the meeting before its adjournment or to the Corporation immediately after the adjournment of the meeting. Such right to dissent or abstention is not available to a director who voted in favor of the action taken.

Section 3.9&nbsp;&nbsp;&nbsp;&nbsp;<u>Order of Business.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A)&nbsp;&nbsp;&nbsp;&nbsp;At meetings of the Board of Directors, business shall be transacted in such order as, from time to time, the Board of Directors may determine by resolution.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B)&nbsp;&nbsp;&nbsp;&nbsp;At each meeting of the Board of Directors, the Chairperson or, in his or her absence, Vice Chairperson, or, in their absence, the Chief Executive Officer, or, in their absence, the President, or, in their absence, the most senior Vice President present, or, otherwise, the person designated by the vote of a majority of the directors present shall preside.

Section 3.10&nbsp;&nbsp;&nbsp;&nbsp;<u>Quorum and Manner of Acting.</u> A majority of the number of directors then holding office shall constitute a quorum for the transaction of business; but, if at any meeting of the Board of Directors there is less than a quorum present, a majority of the directors present may adjourn the meeting from time to time until a quorum shall be present. Notice of any adjourned meeting need not be given. At all meetings of directors, a quorum being present, the

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act of the majority of the directors present at the meeting shall be the act of the Board of Directors.

Section 3.11&nbsp;&nbsp;&nbsp;&nbsp;<u>Resignation.</u> A director of the Corporation may resign at any time by delivering written notice of resignation to the Board of Directors, its Chairperson or the Corporation. The resignation is effective when delivered unless the notice specifies a later effective time. A vacancy shall be deemed to exist at the time a resignation is tendered, and the Board of Directors may, then or thereafter, elect a successor to take office when the resignation by its terms becomes effective.

Section 3.12&nbsp;&nbsp;&nbsp;&nbsp;<u>Removal by Shareholders.</u> A director may be removed, only for cause, by the shareholders only at a meeting called for that purpose in the manner prescribed by law. As used herein, "for cause" means either (i) conviction of a felony by a court of competent jurisdiction and such conviction is no longer subject to direct appeal or (ii) adjudication for gross negligence or dishonest conduct in the performance of a director's duty to this Corporation by a court of competent jurisdiction and such adjudication is no longer subject to direct appeal.

Section 3.13&nbsp;&nbsp;&nbsp;&nbsp;<u>Vacancies.</u> Any vacancy occurring on the Board of Directors, including a vacancy resulting from an increase in the number of directors, may be filled by the affirmative vote of a majority of the directors then in office, or, if the directors remaining in office constitute fewer than a quorum of the Board of Directors, by the affirmative vote of a majority of all such directors remaining in office. A director elected to fill a vacancy shall be elected to serve only until the next election of directors by the shareholders.

Section 3.14&nbsp;&nbsp;&nbsp;&nbsp;<u>Compensation.</u> The Board of Directors, by the affirmative vote of a majority of directors then in office, and irrespective of any personal interest of any of its members, shall have authority to establish reasonable compensation of all directors for services to the Corporation as directors, officers or otherwise. By resolution of the Board of Directors the directors may be paid their expenses, if any, of attendance at each meeting of the Board. No such payment shall preclude any director from serving the Corporation in any other capacity and receiving compensation therefor.

Section 3.15&nbsp;&nbsp;&nbsp;&nbsp;<u>Action Without Meeting.</u> Any action required or permitted to be taken by the Board of Directors may be taken without a meeting if each director signs, or consents to by electronic transmission, a valid written consent, describing the action to be taken. Action taken without a meeting is effective when consents signed by all the directors are delivered to the Corporation unless the consent specifies a different effective time. A director may revoke a consent by delivering to the Corporation a revocation signed by the director, prior to the receipt by the Corporation of valid written consents signed by all the directors.

Section 3.16&nbsp;&nbsp;&nbsp;&nbsp;<u>Conference Telephone Meetings.</u> The Board of Directors may meet via conference telephone or similar means of communications by which all directors participating in the meeting can simultaneously hear each other. Participation in a meeting pursuant to this section shall constitute presence in person at such meeting.

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Section 3.17&nbsp;&nbsp;&nbsp;&nbsp;<u>Committees.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A)&nbsp;&nbsp;&nbsp;&nbsp;The Board of Directors, by resolution adopted by a majority of the number of directors then in office, may establish one or more committees and appoint one (1) or more members of the Board of Directors to serve on any committee. Each such committee shall have the powers and duties delegated to it by the Board of Directors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B)&nbsp;&nbsp;&nbsp;&nbsp;A committee of the Board of Directors shall not: (i) authorize or approve distributions, except according to formula or method, or within limits, prescribed by the Board of Directors; (ii) approve or propose to shareholders of the Corporation action that the law requires be approved by shareholders; or (iii) fill vacancies on the Board of Directors of the Corporation or on any of its committees.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C)&nbsp;&nbsp;&nbsp;&nbsp;Sections 3.5 - 3.8, 3.10, 3.15 and 3.16 of these bylaws apply both to committees of the Board of Directors and their members.

Section 3.18&nbsp;&nbsp;&nbsp;&nbsp;<u>Facsimile and Electronic Signatures.</u> Facsimile and electronic signatures of any director of the Corporation may be used whenever as authorized by the Board of Directors or a committee thereof. An "electronic signature" is any electronic symbol or process attached to or logically associated with a document sent by electronic transmission and executed or adopted by a person with such intent to sign such document. "Electronic signature" includes: (i) a unique password or unique identification assigned to a person by the Corporation; (ii) a person's typed name attached to or part of an electronic transmission sent by or from a source authorized by such person such as an e-mail address provided by such person as that person's e-mail address; (iii) a person's facsimile signature; and (iv) any other form of electronic signature approved by the Board of Directors.

**ARTICLE IV**

**Officers**

Section 4.1&nbsp;&nbsp;&nbsp;&nbsp;<u>Designated Officers.</u> The officers of the Corporation shall be a Chief Executive Officer, a President, one or more Vice Presidents, a Secretary and a Treasurer, each of whom shall be appointed by the Board of Directors. Such other officers, assistant officers and acting officers as may be deemed necessary may be appointed by the Board of Directors. Any two (2) or more offices may be held by the same individual. In its discretion, the Board of Directors may delegate the powers or duties of any officer to any other officer or agent, notwithstanding any provision of these bylaws.

Section 4.2&nbsp;&nbsp;&nbsp;&nbsp;<u>Election and Term of Office.</u> The officers of the Corporation shall be nominated by the Governance Committee and appointed annually by the Board of Directors at the first meeting of the Board of Directors held after each annual meeting of the shareholders. If the appointment of officers shall not be made at such meeting, such appointment shall be made as soon thereafter as may be convenient. Each officer shall hold office until his or her successor shall have been duly elected and shall have qualified or until his or her death or until he or she shall resign or shall have been removed in the manner hereinafter provided. Vacancies may be

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filled or new offices created and filled at any meeting of the Board of Directors. Appointment of an officer shall not of itself create contract rights.

Section 4.3&nbsp;&nbsp;&nbsp;&nbsp;<u>Resignation.</u> Any officer may resign at any time by delivering written notice of resignation to the Corporation. The resignation is effective when delivered unless the notice specifies a later effective time. An officer's resignation does not affect the Corporation's contract rights, if any, with the officer.

Section 4.4&nbsp;&nbsp;&nbsp;&nbsp;<u>Removal.</u> Any officer may be removed, with or without cause, by the Board of Directors, but such removal shall be without prejudice to the contract rights, if any, of the officer so removed. Officers appointed in accordance with the provisions of Sections 4.10 and 4.11 may be removed by any superior officer upon whom the power to appoint shall have been conferred by the Board of Directors.

Section 4.5&nbsp;&nbsp;&nbsp;&nbsp;<u>Chief Executive Officer.</u> The Chief Executive Officer shall, in the absence of the Chairman of the Board and any Vice Chairmen at such time or their inability or refusal to act, preside at all meetings of the shareholders and of the Board of Directors. The Chief Executive Officer shall be the principal executive officer of the Corporation and, subject to the general powers of the Board of Directors, shall have the responsibility for the general management and control of the business and affairs of the Corporation. The Chief Executive Officer may sign, with the Treasurer, any Assistant Treasurer, or any other officer of the Corporation authorized by the Board of Directors, certificates for shares of the Corporation, the issuance of which shall have been authorized by resolution of the Board of Directors, and any deeds, mortgages, bonds, contracts or other instruments which the Board of Directors has authorized to be executed, except in cases where the signing and execution thereof shall be expressly delegated by the Board of Directors or by these bylaws to some other officer or agent of the Corporation, or shall be required by law to be otherwise signed or executed. The Chief Executive Officer shall in general perform all duties incident to the office of the Chief Executive Officer and such other duties as from time to time may be assigned by the Board of Directors or prescribed by the bylaws.

Section 4.6&nbsp;&nbsp;&nbsp;&nbsp;<u>The President.</u> The President shall, subject to the discretion of the Chief Executive Officer, in general assist in the management of the business and affairs of the Corporation. The President may sign, with the Treasurer, any Assistant Treasurer, or any other officer of the Corporation authorized by the Board of Directors, certificates for shares of the Corporation, the issuance of which shall have been authorized by resolution of the Board of Directors, and any deeds, mortgages, bonds, contracts or other instruments which the Board of Directors has authorized to be executed, except in cases where the signing and execution thereof shall be expressly delegated by the Board of Directors or by these bylaws to some other officer or agent of the Corporation, or shall be required by law to be otherwise signed or executed. The President shall in general perform all duties incident to the office of President and such other duties as from time to time may be assigned by the Board of Directors or prescribed by the bylaws.

Section 4.7&nbsp;&nbsp;&nbsp;&nbsp;<u>Vice Presidents.</u> The Vice President or Vice Presidents shall perform such duties as from time to time may be assigned to him or her by the Board of Directors, Chief

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Executive Officer and/or President. Any Vice President may sign, with the Treasurer, any Assistant Treasurer or any other officer of the Corporation authorized by the Board of Directors, certificates for shares of the Corporation, the issuance of which shall have been authorized by resolution of the Board of Directors or as prescribed by the bylaws.

Section 4.8&nbsp;&nbsp;&nbsp;&nbsp;<u>The Secretary.</u> The Secretary shall: (a) keep the minutes of the shareholders' and Board of Directors' meetings in one or more books provided for that purpose; (b) maintain and authenticate records of the Corporation required to be kept by law and attend to delivering all notices of the Corporation in accordance with the provisions of these bylaws or as required by law; (c) be custodian of the corporate records; (d) maintain a record of the shareholders of the Corporation, their post office addresses as furnished by each such shareholder, and the number of shares of each class of shares held by them respectively, and prepare the shareholders' list as required by Section 2.7 of these bylaws; (e) have general charge of the share records of the Corporation; and (f) in general perform all duties incident to the office of Secretary and such other duties as from time to time may be assigned by the Chief Executive Officer, President or by the Board of Directors or prescribed by the bylaws.

Section 4.9&nbsp;&nbsp;&nbsp;&nbsp;<u>The Treasurer.</u> The Treasurer: (a) shall have charge and custody of and be responsible for all funds and securities of the Corporation; (b) shall keep full and accurate records and accounts in books belonging to the Corporation, showing the transactions of the Corporation, its accounts, liabilities and financial condition and see that all expenditures are duly authorized and are evidenced by proper receipts and vouchers; (c) shall deposit in the name of the Corporation in such depository or depositories as are approved by the Board of Directors, all moneys that may come into the Treasurer's hands for the Corporation's account; (d) shall render an account of the financial condition of the Corporation at least annually; (e) may, with the Chief Executive Officer, President or a Vice President, sign certificates for shares of the Corporation, the issuance of which shall have been authorized by resolution of the Board of Directors; and (f) in general perform all duties incident to the office of Treasurer and such other duties as from time to time may be assigned by the Chief Executive Officer, President or by the Board of Directors or prescribed by the bylaws.

Section 4.10&nbsp;&nbsp;&nbsp;&nbsp;<u>Assistant Secretaries and Assistant Treasurers.</u> There shall be such number of Assistant Secretaries and Assistant Treasurers as the Board of Directors may from time to time authorize and appoint. The Assistant Secretaries and Assistant Treasurers, in general, shall perform such duties as shall be assigned to them by the Secretary or the Treasurer, respectively, or by the Chief Executive Officer, President or the Board of Directors and any Assistant Treasurer may, with the Chief Executive Officer, President or a Vice President, sign certificates for shares of the Corporation, the issuance of which shall have been authorized by a resolution of the Board of Directors.

Section 4.11&nbsp;&nbsp;&nbsp;&nbsp;<u>Other Assistants and Acting Officers.</u> The Board of Directors shall have the power to appoint any individual to act as assistant to any other officer, or to perform the duties of any other officer whenever for any reason it is impracticable for such officer to act personally, and such assistant or acting officer so appointed by the Board of Directors shall have the power to perform all the duties of the office to which such individual is so appointed to be

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assistant, or as to which such individual is so appointed to act, except as such power may be otherwise defined or restricted by the Board of Directors.

Section 4.12&nbsp;&nbsp;&nbsp;&nbsp;<u>Salaries.</u> The salaries of the officers shall be fixed from time to time by the Board of Directors, and no officer shall be prevented from receiving such salary by reason of the fact that such officer is also a director of the Corporation.

Section 4.13&nbsp;&nbsp;&nbsp;&nbsp;<u>Facsimile and Electronic Signatures</u>. Facsimile and electronic signatures of any officer or officers of the Corporation may be used whenever as authorized by the Board of Directors or a committee thereof. An "electronic signature" is any electronic symbol or process attached to or logically associated with a document sent by electronic transmission and executed or adopted by a person with such intent to sign such document. "Electronic signature" includes: (i) a unique password or unique identification assigned to a person by the Corporation; (ii) a person's typed name attached to or part of an electronic transmission sent by or from a source authorized by such person such as an e-mail address provided by such person as that person's e-mail address; (iii) a person's facsimile signature; and (iv) any other form of electronic signature approved by the Board of Directors.

**ARTICLE V**

**Contracts, Loans, Checks and Deposits**

Section 5.1&nbsp;&nbsp;&nbsp;&nbsp;<u>Contracts.</u> The Board of Directors may authorize any officer or agent to enter into any contract or execute and deliver any instrument in the name of and on behalf of the Corporation and such authority may be general or confined to specific instances.

Section 5.2&nbsp;&nbsp;&nbsp;&nbsp;<u>Loans.</u> No loans shall be contracted on behalf of the Corporation and no evidences of indebtedness shall be issued in its name unless authorized by a resolution of the Board of Directors. Such authority may be general or confined to specific instances.

Section 5.3&nbsp;&nbsp;&nbsp;&nbsp;<u>Checks, Drafts, etc.</u> All checks, drafts or other orders for the payment of money, notes or other evidences of indebtedness issued in the name of the Corporation shall be signed by such officer or agent of the Corporation and in such manner as shall from time to time be determined by resolution of the Board of Directors.

Section 5.4&nbsp;&nbsp;&nbsp;&nbsp;<u>Deposits.</u> All funds of the Corporation not otherwise employed shall be deposited from time to time to the credit of the Corporation in such banks, trusts companies or other depositories as the Board of Directors may select.

**ARTICLE VI**

**Certificates for Shares, Their Issuance and Transfer**

Section 6.1&nbsp;&nbsp;&nbsp;&nbsp;<u>Consideration for Shares.</u> The Board of Directors may authorize shares to be issued for consideration consisting of any tangible or intangible property or benefit to the Corporation, including cash, promissory notes, services performed, contracts for services to be performed, or other securities of the Corporation. Before the Corporation issues shares, the

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Board of Directors must determine that the consideration received or to be received for shares to be issued is adequate.

Section 6.2&nbsp;&nbsp;&nbsp;&nbsp;<u>Certificates for Shares.</u> Every shareholder of the Corporation shall be entitled to a certificate, or certificates, in such form as the Board of Directors shall prescribe, certifying the number and class of shares of the Corporation owned; *provided, however*, that the Board of Directors of the Corporation may permit or require by resolution some or all of any class or series to be uncertificated shares. No certificate shall be issued for any share until such share is fully paid.

Section 6.3&nbsp;&nbsp;&nbsp;&nbsp;<u>Execution of Certificates.</u> The certificates for shares of stock shall be numbered in the order in which they shall be issued and shall be signed by the Chief Executive Officer, President or a Vice President and the Treasurer or an Assistant Treasurer or any other officer of the Corporation authorized by the Board of Directors. The signatures of persons signing for the Corporation upon a certificate may be facsimiles if the certificate is countersigned by a transfer agent, or registered by a registrar, other than the Corporation itself or an employee of the Corporation. In case any officer or other authorized person who has signed or whose facsimile signature has been placed upon such certificate for the Corporation shall have ceased to be such officer or employee or agent before such certificate is issued, it may be issued by the Corporation with the same effect as if he were such officer or employee or agent at the date of its issue.

Section 6.4&nbsp;&nbsp;&nbsp;&nbsp;<u>Share Record.</u> A record shall be kept by the Secretary, or by any other officer, employee or agent designated by the Board of Directors of the names and address of all shareholders and the number and class of shares held by each represented by such certificates and the respective dates thereof and in case of cancellation, the respective dates of cancellation. Said record shall be kept at the registered office or principal place of business of the Corporation.

Section 6.5&nbsp;&nbsp;&nbsp;&nbsp;<u>Cancellation.</u> Every certificate surrendered to the Corporation for exchange or transfer shall be canceled, and no new certificate or certificates shall be issued in exchange for any existing certificate until such existing certificate shall have been so canceled, except as provided in Section 6.8 of these bylaws.

Section 6.6&nbsp;&nbsp;&nbsp;&nbsp;<u>Transfers of Shares.</u> Stock of the Corporation shall be transferable in the manner prescribed by applicable law and in these bylaws. Transfers of stock shall be made on the books of the Corporation, and in the case of certificated shares of stock, only by the person named in the certificate or by such person's attorney lawfully constituted in writing and upon the surrender of the certificate therefor, properly endorsed for transfer and payment of all necessary transfer taxes; or, in the case of uncertificated shares of stock, upon receipt of proper transfer instructions from the registered holder of the shares or by such person's attorney lawfully constituted in writing, and upon payment of all necessary transfer taxes and compliance with appropriate procedures for transferring shares in uncertificated form; provided, however, that such surrender and endorsement, compliance or payment of taxes shall not be required in any case in which the officers of the Corporation shall determine to waive such requirement. No transfer of stock shall be valid as against the Corporation for any purpose until it shall have been entered in the stock records of the Corporation by an entry showing from and to whom

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transferred. Except as otherwise provided by law, the person in whose name shares stand on the books of the Corporation shall be deemed the owner thereof for all purposes as regards the Corporation.

Section 6.7&nbsp;&nbsp;&nbsp;&nbsp;<u>Regulations.</u> The Board of Directors may make such other rules and regulations as it may deem expedient, not inconsistent with law, concerning the issue, transfer and registration of shares of the Corporation.

Section 6.8&nbsp;&nbsp;&nbsp;&nbsp;<u>Lost, Destroyed, or Mutilated Certificates.</u> In the event of the loss, theft or destruction of any certificate for shares, another certificate may be issued in its place pursuant to such regulations as the Board of Directors may establish concerning proof of such loss, theft or destruction and concerning the giving of a satisfactory bond or indemnity.

Section 6.9&nbsp;&nbsp;&nbsp;&nbsp;<u>General Restriction on Transfer of Shares.</u> Except as otherwise provided in this Article VI, no share or shares of stock of the Corporation shall be sold, given, assigned, bequeathed or otherwise transferred, voluntarily or involuntarily, by any shareholder, his or her executor, administrator, trustee in bankruptcy, receiver or other legal representative, or by any other person owning or holding any share or shares of stock of the Corporation, nor shall any share or shares of stock of the Corporation be sold or otherwise transferred by operation or any act or process of law or equity, to any person, firm or corporation whomsoever, including any shareholder of the Corporation, unless and until such share or shares of stock shall first have been offered for sale to the Corporation in the manner and upon the terms and conditions hereinafter provided. This general restriction shall not apply to a transfer, by whatever means, to a spouse, or lineal descendent of the shareholder, or to a trust or to a court-appointed fiduciary for the benefit of such persons.

Section 6.10&nbsp;&nbsp;&nbsp;&nbsp;<u>Recognition of Transferees.</u> Any person becoming the owner or holder of any share or shares of stock of the Corporation by purchase, gift, assignment, bequest or other transfer, or by distribution of the estate of a decedent, bankrupt or of an insolvent, however liquidation of the estate of the latter be made, or by purchase upon foreclosure of a pledge or hypothecation, whether pursuant to sale or otherwise, or by purchase at execution or other judicial sale, or by operation of any act or process of law or equity, which were not first offered for sale to the Corporation before such acquisition under the circumstances and in the manner and upon the terms and conditions hereinbefore and hereinafter provided, shall first be required to offer the same for sale to the Corporation in the manner and upon the terms and conditions hereinafter provided.

Section 6.11&nbsp;&nbsp;&nbsp;&nbsp;<u>Voluntary Transfers - Offer for Sale to Corporation.</u> Any shareholder who desires to sell or otherwise transfer any or all of his shares of stock of the Corporation shall first offer the same for sale to the Corporation by giving to the Corporation written notice, delivered to the President or Secretary of the Corporation, designating (1) the number of shares of stock proposed to be sold or otherwise transferred, or the number of shares received and the consideration exchanged therefore by the present holder without the same having first been offered and the price to be paid therefore per share or consideration for sale pursuant to a bona fide offer as provided herein, as the case may be, and (2) the number of the certificate or certificates therefore and (3) the name of the proposed transferee or, in the case of shares

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received without having first been offered for sale as provided herein, the consideration in exchange therefore.

Section 6.12&nbsp;&nbsp;&nbsp;&nbsp;<u>Voluntary Transfers - Acceptance of Offer by Corporation.</u> The Board of Directors of the Corporation shall within forty-five (45) days after receipt of said offer of sale (or within one hundred twenty (120) days after receipt if acceptance of the offer by the Corporation requires prior regulatory approval) notify the offeror in writing whether it desires to purchase the stock so offered for sale at the purchase price as hereinafter defined. In the event that the Board of Directors notifies the offeror of its acceptance of the offer for sale, said notification shall specify a date not less than five (5) nor more than fifteen (15) days after the date of such notice as the date on which the stock will be taken up and payment made therefore at the office of the Corporation. Upon the consummation of the purchase and payment of the price therefore and delivery of the cash payment hereinafter provided for, the Shareholder shall deliver to the Corporation a certificate for the stock purchased, which shall thereafter be held as Treasury Stock or shall be retired, as the Board of Directors shall direct. If the Corporation shall not purchase and pay for all of the shares so offered for sale, it shall be deemed to have rejected said offer.

Section 6.13&nbsp;&nbsp;&nbsp;&nbsp;<u>Involuntary Transfer - Offer to Corporation</u>. In the event of bankruptcy, insolvency or in the event of any levy or attachment of his or her stock in the Corporation or the interest represented thereby or any right or interests therein or thereunder, such Shareholder shall be deemed to have offered his or her stock for sale to the Corporation as of the date the Corporation receives notice of such bankruptcy, insolvency, levy or attachment, whereupon the Corporation shall have the first option to purchase said shares of stock in the manner and during the time as provided in the foregoing Sections 6.11 and 6.12.

Section 6.14&nbsp;&nbsp;&nbsp;&nbsp;<u>Purchase Price.</u> The term "purchase price" as used in these Bylaws shall mean the "book value" of the share or shares of stock offered for sale as determined in Section 6.15 of these Bylaws.

Section 6.15&nbsp;&nbsp;&nbsp;&nbsp;<u>Book Value.</u> Except as provided below, whenever in these Bylaws the term "book value" is used, the term shall mean the book value of shares of the Corporation, determined by the net worth of the Corporation as shown on the balance sheet of the Corporation prepared for the end of the preceding semi-annual period prepared in the same manner as the balance sheet submitted in the Annual Report (F.R.Y-6) of the Corporation to the Federal Reserve System. If for valid reasons the directors of the Corporation determine that book value as above computed does not accurately measure the actual value of shares of the Corporation, by appropriate resolution the directors may establish a different book value and in so doing express the reasons for such action; provided, however, that such book value shall in no event be less than the book value as determined by the net worth of the Corporation as shown on the balance sheet of the Corporation prepared for the end of the preceding semi-annual period prepared in the same manner as the balance sheet submitted in the Annual Report (F.R.Y.-6) of the Corporation to the Federal Reserve System.

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Section 6.16&nbsp;&nbsp;&nbsp;&nbsp;<u>Payment of Purchase Price.</u> The purchase price to be paid by the Corporation when purchasing stock pursuant to the provisions of these Bylaws shall be payable in cash in full on the date of settlement for and delivery of the stock.

Section 6.17&nbsp;&nbsp;&nbsp;&nbsp;<u>Failure of Corporation to Purchase.</u> Upon receipt of written notice of the Corporation's refusal to purchase the share or shares offered to it for sale, or if the Corporation shall not purchase and pay for such share or shares of stock at the determined purchase price and upon the terms and conditions and within the time limitations hereinbefore prescribed, then the owner or holder of such share or shares of stock may sell or otherwise transfer the same to, and only to, the proposed transferee, at the proposed price pursuant to a bona fide offer, but if said sale or transfer be not then made, the provisions of these Bylaws shall again apply.

Section 6.18&nbsp;&nbsp;&nbsp;&nbsp;<u>General Intent of Restrictions on Transfer.</u> In all cases the Corporation shall not be required to accept any offer for the sale of any share or shares of stock of the Corporation. Failure of the Corporation to purchase any share or shares of stock offered for sale and the sale or transfer thereof to any other person, firm or corporation, shall not, as to any future sale or other transfer of said share or shares of stock or of any share or shares of stock issued in lieu thereof, discharge any such share or shares of stock from any of the obligations and restrictions contained in these Bylaws, it being the intent that all restrictions herein contained and hereby imposed upon any and all sales or other transfers of shares of stock of the Corporation shall apply to all shares of stock, whensoever, howsoever or by whomsoever acquired, unless so excepted in Section 6.9, in the hands of all owners or holders, whether original shareholders or subsequent purchasers or transferees and whether acquired through the voluntary or involuntary act of a shareholder or his legal representative or by operation of law and whether a part of the first authorized issue or of any subsequent or increased issue.

Section 6.19&nbsp;&nbsp;&nbsp;&nbsp;<u>Endorsement on Stock Certificates.</u> The Corporation shall endorse on the certificate or certificates of stock now held or hereafter issued while the foregoing restrictions on transfer are in force the following restrictive legend or a restrictive legend having similar wording:

"The sale or other transfer of this certificate is subject to the restrictions set out in Article VI of the Bylaws of the Corporation, which are on file at the office of the Secretary of the Corporation."

**ARTICLE VII**

**Fiscal Year**

The fiscal year of the Corporation shall begin on the first day of January and end on the last day of December in each year.

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**ARTICLE VIII**

**Distributions**

The Board of Directors may from time to time declare and the Corporation may make distributions on its outstanding shares in the manner and upon the terms and conditions provided by its Articles of Incorporation or the Iowa Business Corporation Act.

**ARTICLE IX**

**Corporate Seal**

The Corporation shall have no corporate seal.

**ARTICLE X**

**Exculpation and Indemnification**

Section 10.1&nbsp;&nbsp;&nbsp;&nbsp;<u>Exculpation.</u> A director of this Corporation shall not be personally liable to the Corporation or its shareholders for monetary damages for any action taken, or any failure to take any action, as a director, except for liability for: (i) the amount of a financial benefit received by a director to which the director is not entitled; (ii) an intentional infliction of harm on the Corporation or the shareholders; (iii) a violation of Section 833 of the Iowa Business Corporation Act; or (iv) an intentional violation of criminal law. No amendment to or repeal of this Section shall apply to or have any effect on the liability or alleged liability of any director of the Corporation for or with respect to any acts or omissions of such director occurring prior to such amendment or repeal. If Iowa law is hereafter changed to permit further elimination or limitation of the liability of directors for monetary damages to the Corporation or its shareholders, then the liability of the director of this Corporation shall be eliminated or limited to the fullest extent then permitted. The directors of the Corporation have agreed to serve as directors in reliance upon the provisions of this Section.

Section 10.2&nbsp;&nbsp;&nbsp;&nbsp;<u>Indemnification</u>. The Corporation shall, to the maximum extent permitted by the Iowa Business Corporation Act, indemnify each director and officer (as such terms are defined in Section 850(2) of the Iowa Business Corporation Act) against liability (as such term is defined in Section 850(5) of the Iowa Business Corporation Act) for any action taken, or any failure to take any action, as a director or officer, except liability for any of the following: (i) receipt of a financial benefit to which the director or officer is not entitled; (ii) an intentional infliction of harm on the Corporation or the shareholders; (iii) in the case of a director, a violation of Section 833 of the Iowa Business Corporation Act; or (iv) an intentional violation of criminal law. Without limiting the foregoing, the Corporation shall exercise all of its permissive powers as often as necessary to indemnify and advance expenses to its directors or officers to the fullest extent permitted by law. If the Iowa Business Corporation Act is hereafter amended to authorize broader indemnification or advancement for expenses, then the indemnification and advancement obligations of the Corporation shall be deemed amended automatically and without any further action to require indemnification and advancement for expenses of directors and officers to the fullest extent permitted by law. Any repeal or modification of this Article by the shareholders of the Corporation shall be prospective only and shall not adversely affect any

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indemnification or advancement obligations of the Corporation with respect to any state of facts existing at or prior to the time of such repeal or modification.

Section 10.3&nbsp;&nbsp;&nbsp;&nbsp;<u>Other Rights</u>. Subject to the Iowa Business Corporation Act, the indemnification provided hereunder shall not be deemed exclusive of any other rights to which the persons indemnified may be entitled under any agreement, vote of disinterested directors or otherwise, both as to activity in such person's official capacity and as to activity in another capacity while holding such office, and shall continue as to a person who has ceased to be a director or officer.

Section 10.4&nbsp;&nbsp;&nbsp;&nbsp;<u>Insurance</u>. The Corporation, at its expense, shall have the power to purchase and maintain insurance on behalf of the Corporation and on behalf of its directors and officers against any liability asserted against such persons in their capacities as directors or officers or arising out of their status as directors or officers, whether or not the Corporation would have the power to indemnify the director or officer against such liability hereunder or under the Iowa Business Corporation Act. The Corporation's obligation to indemnify hereunder shall be in excess of any insurance purchase and maintained by the Corporation, but such insurance shall be the primary source of satisfaction of such obligation of the Corporation. To the extent that indemnification is paid to or on behalf of a director or officer by such insurance, such payments shall be deemed to be in satisfaction of the Corporation's obligation to indemnify such director or officer.

Section 10.5&nbsp;&nbsp;&nbsp;&nbsp;<u>Indemnification of Employees and Agents</u>. The Board of Directors of the Corporation by resolution may provide indemnification by the Corporation to any employee or agent of the Corporation to the extent permitted by the Iowa Business Corporation Act.

**ARTICLE XI**

**Voting of Shares Owned by the Corporation**

Subject always to the specific directions of the Board of Directors, any shares issued by any other corporation and owned or controlled by the Corporation may be voted at any shareholders' meeting of such other corporation by the Chief Executive Officer if present, or if absent, the President of the Corporation if present, or if absent, by any Vice President of the Corporation who may be present. Whenever, in the judgment of the Chief Executive Officer, or if absent, the President, or if absent, of any Vice President, it is desirable for the Corporation to execute a proxy or give a shareholder's consent in respect to any shares issued by any other corporation and owned by the Corporation, such proxy or consent shall be executed in the name of the Corporation by the Chief Executive Officer, President or a Vice President of the Corporation and shall be attested by the Secretary or an Assistant Secretary of the Corporation without necessity of any authorization by the Board of Directors. Any person designated in the manner described above as the proxy of the Corporation shall have full right, power and authority to vote the shares issued by such other corporation and owned by the Corporation the same as such shares might be voted by the Corporation.

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**ARTICLE XII**

**"Deliver" or "Delivery"**

"Deliver" or "delivery" includes electronic transmission. Therefore, in these bylaws, if a notice, consent, proxy or other document is required to be delivered, delivery may be made by electronic transmission, including electronic mail.

**ARTICLE XIII**

**Electronic Transmission**

Section 13.1&nbsp;&nbsp;&nbsp;&nbsp;<u>Definition of Electronic Transmission.</u> "Electronic transmission" or "electronically transmitted" means any process of communication not directly involving the physical transfer of paper that is suitable for the retention, retrieval, and reproduction of information by the recipient. Notice by electronic transmission is written notice. Notices and written consents may be given by electronic transmission and as otherwise provided in Article II, Section 2.10 (Proxies). Each written consent given by electronic transmission shall contain an electronic signature of the person giving such written consent.

Section 13.2&nbsp;&nbsp;&nbsp;&nbsp;Notice or other communications may be delivered by electronic transmission that cannot be directly reproduced in paper form by the recipient through an automated process used in conventional commercial practice only if consented to by the recipient or if all of the following apply:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A)&nbsp;&nbsp;&nbsp;&nbsp;The electronic transmission is otherwise retrievable in perceivable form.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B)&nbsp;&nbsp;&nbsp;&nbsp;The sender and the recipient have consented in writing to the use of such form of electronic transmission.

Section 13.3&nbsp;&nbsp;&nbsp;&nbsp;<u>Revocation of Consent.</u> Any consent to receive notice by electronic transmission may be revoked by the person who consented by written or electronic notice to the person to whom the consent was delivered. Any such consent is also deemed revoked if all of the following apply:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A)&nbsp;&nbsp;&nbsp;&nbsp;The Corporation is unable to deliver two consecutive electronic transmissions given by the Corporation in accordance with such consent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B)&nbsp;&nbsp;&nbsp;&nbsp;Inability to deliver two consecutive electronic transmissions becomes known to the Secretary or an assistant Secretary of the Corporation or to the transfer agent, or other person responsible for the giving of notice or other communications; provided, however, the inadvertent failure to treat such inability to deliver notices as a revocation shall not invalidate any meeting or other action.

Section 13.4&nbsp;&nbsp;&nbsp;&nbsp;<u>Receipt of Electronic Transmission.</u> Unless otherwise agreed between the sender and the recipient, an electronic transmission is received when all of the following apply:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A)&nbsp;&nbsp;&nbsp;&nbsp;The electronic transmission enters an information processing system that the recipient has designated or uses for the purposes of receiving electronic transmissions or

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information of the type sent, and from which the recipient is able to retrieve the electronic transmission. Receipt of an electronic acknowledgment from such an information processing system establishes that an electronic transmission was received but, by itself, does not establish that the content sent corresponds to the content received.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B)&nbsp;&nbsp;&nbsp;&nbsp;The electronic transmission is in a form capable of being processed by that system.

An electronic transmission is received under this section even if no individual is aware of its receipt.

**ARTICLE XIV**

**Amendments to bylaws**

These bylaws may be amended or repealed by a majority vote of the Board of Directors or by the shareholders at any regular or special meeting; provided, however, that the shareholders may from time to time specify particular provisions of the bylaws which shall not be amended or repealed by the Board of Directors.

## Exhibit 4.1

**Exhibit 4.1**

![lsb-sx1xxformofcertifica001.jpg](lsb-sx1xxformofcertifica001.jpg)

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![lsb-sx1xxformofcertifica002.jpg](lsb-sx1xxformofcertifica002.jpg)

## Exhibit 4.2

**Exhibit 4.2**

**LINCOLN BANCORP**

**9.00% FIXED-TO-FLOATING RATE SUBORDINATED NOTE DUE 2036**

THE INDEBTEDNESS EVIDENCED BY THIS SUBORDINATED NOTE IS SUBORDINATED TO AND JUNIOR IN RIGHT OF PAYMENT TO SENIOR INDEBTEDNESS (AS DEFINED IN <u>SECTION</u> <u>3</u> OF THIS SUBORDINATED NOTE) OF LINCOLN BANCORP (THE "<u>COMPANY</u>"), INCLUDING OBLIGATIONS OF THE COMPANY TO ITS GENERAL CREDITORS AND SECURED CREDITORS (OTHER THAN OBLIGATIONS TO TRADE CREDITORS INCURRED BY THE COMPANY IN THE COMPANY'S ORDINARY COURSE OF BUSINESS), AND IS UNSECURED. IT IS INELIGIBLE AS COLLATERAL FOR ANY EXTENSION OF CREDIT BY THE COMPANY OR ANY OF ITS SUBSIDIARIES. IN THE EVENT OF LIQUIDATION ALL HOLDERS OF SENIOR INDEBTEDNESS OF THE COMPANY SHALL BE ENTITLED TO BE PAID IN FULL WITH SUCH INTEREST AS MAY BE PROVIDED BY LAW BEFORE ANY PAYMENT SHALL BE MADE ON ACCOUNT OF PRINCIPAL OF OR INTEREST ON THIS SUBORDINATED NOTE. AFTER PAYMENT IN FULL OF ALL SUMS OWING TO SUCH HOLDERS OF SENIOR INDEBTEDNESS, THE HOLDER OF THIS SUBORDINATED NOTE, TOGETHER WITH THE HOLDERS OF ANY OBLIGATIONS OF THE COMPANY RANKING ON A PARITY WITH THE SUBORDINATED NOTES, SHALL BE ENTITLED TO BE PAID FROM THE REMAINING ASSETS OF THE COMPANY THE UNPAID PRINCIPAL AMOUNT OF THIS SUBORDINATED NOTE PLUS ACCRUED AND UNPAID INTEREST THEREON BEFORE ANY PAYMENT OR OTHER DISTRIBUTION, WHETHER IN CASH, PROPERTY OR OTHERWISE, SHALL BE MADE (I) WITH RESPECT TO ANY OBLIGATION THAT BY ITS TERMS EXPRESSLY IS JUNIOR IN THE RIGHT OF PAYMENT TO THE SUBORDINATED NOTES, (II) WITH RESPECT TO ANY INDEBTEDNESS BETWEEN THE COMPANY AND ANY OF ITS SUBSIDIARIES OR AFFILIATES, OR (III) ON ACCOUNT OF ANY SHARES OF CAPITAL STOCK OF THE COMPANY.

THIS SUBORDINATED NOTE IS A GLOBAL SUBORDINATED NOTE AND IS REGISTERED IN THE NAME OF CEDE & CO AS NOMINEE OF THE DEPOSITORY TRUST COMPANY ("DTC") OR A NOMINEE OF DTC. THIS SUBORDINATED NOTE IS EXCHANGEABLE FOR SUBORDINATED NOTES REGISTERED IN THE NAME OF A PERSON OTHER THAN DTC OR ITS NOMINEE ONLY IN THE LIMITED CIRCUMSTANCES DESCRIBED IN <u>SECTION 5</u> OF THIS SUBORDINATED NOTE, AND NO TRANSFER OF THIS SUBORDINATED NOTE (OTHER THAN A TRANSFER OF THIS SUBORDINATED NOTE AS A WHOLE BY DTC TO A NOMINEE OF DTC OR BY A NOMINEE OF DTC TO DTC OR ANOTHER NOMINEE OF DTC) MAY BE REGISTERED EXCEPT IN LIMITED CIRCUMSTANCES SPECIFIED IN THIS SUBORDINATED NOTE.

UNLESS THIS SUBORDINATED NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF DTC TO THE COMPANY OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE, OR PAYMENT, AND ANY SUBORDINATED NOTE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT HEREON IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

TRANSFERS OF THIS SUBORDINATED NOTE WILL BE LIMITED TO TRANSFERS IN WHOLE, BUT NOT IN PART, TO NOMINEES OF DTC OR A SUCCESSOR THEREOF OR SUCH SUCCESSOR'S NOMINEE AND TRANSFERS OF PORTIONS OF THIS SUBORDINATED NOTE WILL BE LIMITED TO TRANSFERS MADE IN ACCORDANCE WITH RESTRICTIONS SET FORTH HEREIN.

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THE INDEBTEDNESS EVIDENCED BY THIS SUBORDINATED NOTE IS NOT A DEPOSIT AND IS NOT INSURED BY THE FEDERAL DEPOSIT INSURANCE CORPORATION OR ANY OTHER GOVERNMENT AGENCY OR FUND.

THE COMPANY MAY REQUIRE PRIOR WRITTEN CONSENT OF THE BOARD OF GOVERNORS OF THE FEDERAL RESERVE IN ORDER TO PREPAY ANY PART OF THE PRINICIPAL OF THIS SUBORDINATED NOTE.

THIS SUBORDINATED NOTE WILL BE ISSUED AND MAY BE TRANSFERRED ONLY IN MINIMUM DENOMINATIONS OF $100,000 AND MULTIPLES OF $1,000 IN EXCESS THEREOF. ANY ATTEMPTED TRANSFER OF THIS SUBORDINATED NOTE IN A DENOMINATION OF LESS THAN $100,000 SHALL BE DEEMED TO BE VOID AND OF NO LEGAL EFFECT WHATSOEVER. ANY SUCH PURPORTED TRANSFEREE SHALL BE DEEMED NOT TO BE THE HOLDER OF THIS SUBORDINATED NOTE FOR ANY PURPOSE, INCLUDING, BUT NOT LIMITED TO, THE RECEIPT OF PAYMENTS ON THIS SUBORDINATED NOTE, AND SUCH PURPORTED TRANSFEREE SHALL BE DEEMED TO HAVE NO INTEREST WHATSOEVER IN THIS SUBORDINATED NOTE.

THIS SUBORDINATED NOTE MAY BE SOLD ONLY IN COMPLIANCE WITH APPLICABLE FEDERAL AND STATE SECURITIES LAWS. THIS SUBORDINATED NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "<u>SECURITIES</u> <u>ACT</u>"), OR ANY APPLICABLE STATE SECURITIES LAWS, OR ANY OTHER APPLICABLE SECURITIES LAWS. NEITHER THIS SUBORDINATED NOTE NOR ANY INTEREST OR PARTICIPATION HEREIN MAY BE REOFFERED, SOLD, ASSIGNED, TRANSFERRED, PLEDGED, ENCUMBERED OR OTHERWISE DISPOSED OF IN THE ABSENCE OF SUCH REGISTRATION OR UNLESS SUCH TRANSACTION IS EXEMPT FROM, OR NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT-AND STATE SECURITIES LAWS.

**CERTAIN ERISA CONSIDERATIONS**:

THE HOLDER OF THIS SUBORDINATED NOTE, OR ANY INTEREST HEREIN, BY ITS ACCEPTANCE HEREOF OR THEREOF AGREES, REPRESENTS AND WARRANTS THAT IT IS NOT AN EMPLOYEE BENEFIT PLAN, INDIVIDUAL RETIREMENT ACCOUNT OR OTHER PLAN OR ARRANGEMENT SUBJECT TO TITLE I OF THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED ("<u>ERISA</u>"), OR SECTION 4975 OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE "<u>CODE</u>") (EACH, A "<u>PLAN</u>"), OR AN ENTITY WHOSE UNDERLYING ASSETS INCLUDE "PLAN ASSETS" BY REASON OF ANY PLAN'S INVESTMENT IN THE ENTITY, AND NO PERSON INVESTING "PLAN ASSETS" OF ANY PLAN MAY ACQUIRE OR HOLD THIS SUBORDINATED NOTE OR ANY INTEREST HEREIN, UNLESS SUCH PURCHASER OR HOLDER IS ELIGIBLE FOR THE EXEMPTIVE RELIEF AVAILABLE UNDER U.S. DEPARTMENT OF LABOR PROHIBITED TRANSACTION CLASS EXEMPTION 96-23, 95-60, 91-38, 90-1 OR 84-14 OR ANOTHER APPLICABLE EXEMPTION OR ITS PURCHASE AND HOLDING OF THIS SUBORDINATED NOTE, OR ANY INTEREST HEREIN, ARE NOT PROHIBITED BY SECTION 406 OF ERISA OR SECTION 4975 OF THE CODE WITH RESPECT TO SUCH PURCHASE AND HOLDING. ANY PURCHASER OR HOLDER OF THIS SUBORDINATED NOTE OR ANY INTEREST HEREIN WILL BE DEEMED TO HAVE REPRESENTED BY ITS PURCHASE AND HOLDING THEREOF THAT EITHER: (I) IT IS NOT AN EMPLOYEE BENEFIT PLAN OR OTHER PLAN TO WHICH TITLE I OF ERISA OR SECTION 4975 OF THE CODE IS APPLICABLE, A TRUSTEE OR OTHER PERSON ACTING ON BEHALF OF ANY SUCH EMPLOYEE BENEFIT PLAN OR OTHER PLAN, OR ANY OTHER PERSON OR ENTITY USING THE "PLAN ASSETS" OF ANY SUCH EMPLOYEE BENEFIT PLAN OR OTHER PLAN TO

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FINANCE SUCH PURCHASE OR (II) SUCH PURCHASE OR HOLDING WILL NOT RESULT IN A PROHIBITED TRANSACTION UNDER SECTION 406 OF ERISA OR SECTION 4975 OF THE CODE FOR WHICH FULL EXEMPTIVE RELIEF IS NOT AVAILABLE UNDER APPLICABLE STATUTORY OR ADMINISTRATIVE EXEMPTION.

**ANY FIDUCIARY OF ANY PLAN WHO IS CONSIDERING THE ACQUISITION OF THIS SUBORDINATED NOTE OR ANY INTEREST HEREIN SHOULD CONSULT WITH HIS OR HER LEGAL COUNSEL PRIOR TO ACQUIRING THIS SUBORDINATED NOTE OR ANY INTEREST HEREIN.**

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No.: CUSIP (QIBs):

**LINCOLN BANCORP**

**9.00% FIXED-TO-FLOATING RATE SUBORDINATED NOTE DUE 2036**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.&nbsp;&nbsp;&nbsp;&nbsp;<u>Subordinated Notes</u>**.**&nbsp;&nbsp;&nbsp;&nbsp;**This Subordinated Note is one of a duly authorized issue of notes of Lincoln Bancorp, an Iowa corporation and a bank holding company (the "<u>Company</u>"), designated as the "9.00% Fixed-to-Floating Rate Subordinated Notes due 2036" (the "<u>Subordinated Notes</u>") issued pursuant to those Subordinated Note Purchase Agreements, dated as of the Issue Date (as defined herein), between the Company and the several purchasers of the Subordinated Notes identified on the signature pages thereto (each, a "<u>Purchase Agreement</u>" and collectively, the "<u>Purchase Agreements</u>").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.&nbsp;&nbsp;&nbsp;&nbsp;<u>Payment</u>**.**&nbsp;&nbsp;&nbsp;&nbsp;**The Company, for value received, promises to pay to Cede & Co., or its registered assigns, as nominee for the Depository Trust Company ("<u>DTC</u>"), the principal sum of [&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ] (U.S.) ($[&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ]), plus accrued but unpaid interest on January 15, 2036 ("<u>Maturity</u> <u>Date</u>") and to pay interest thereon (i) from and including the Issue Date (as defined below) of the Subordinated Notes to but excluding January 15, 2031 or the earlier redemption date contemplated by <u>Section 4</u> of this Subordinated Note at the rate of 9.00% per annum, computed on the basis of a 360-day year consisting of twelve 30-day months and payable semi-annually in arrears on January 15, and July 15 of each year (each, a "<u>Fixed Rate Interest Payment Date</u>"), beginning July 15, 2026, and (ii) from and including January 15, 2031 to but excluding the Maturity Date or the earlier redemption date contemplated by <u>Section 4</u> of this Subordinated Note, at the rate per annum, reset quarterly, equal to the Floating Interest Rate (as defined below) determined on the Floating Interest Determination Date (as defined below) of the applicable interest period plus 536 basis points, computed on the basis of a 360-day year and the actual number of days elapsed and payable quarterly in arrears on January 15, April 15, July 15 and October 15 (each quarterly period, a "<u>Floating Rate Period</u>") of each year (each, a "<u>Floating Rate</u> <u>Interest Payment Date</u>"). In the event that the Floating Interest Rate for the Floating Rate Period is less than zero, the Floating Interest Rate for such Floating Rate Period shall be deemed to be zero. Dollar amounts resulting from this calculation shall be rounded to the nearest cent, with one-half cent being rounded up. The term "<u>Floating Interest Determination Date</u>" means the date upon which the Floating Interest Rate is determined by the Calculation Agent (as defined below) pursuant to the Three-Month Term SOFR Conventions (as defined below). Any payment of principal of or interest on this Subordinated Note that would otherwise become due and payable on a day which is not a Business Day shall become due and payable on the next succeeding Business Day, with the same force and effect as if made on the date for payment of such principal or interest, and no interest will accrue in respect of such payment for the period after such day; provided, that in the event that any scheduled Floating Rate Interest Payment Date falls on a day that is not a Business Day and the next succeeding Business Day falls in the next succeeding calendar month, such Floating Rate Interest Payment Date will be accelerated to the immediately preceding Business Day, and, in each such case, the amounts payable on such Business Day will include interest accrued to, but excluding, such Business Day.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(a)**&nbsp;&nbsp;&nbsp;&nbsp;The Company shall take such actions as are necessary to ensure that from the commencement of the Floating Rate Period for so long as any of the Subordinated Notes remain outstanding there will at all times be a Calculation Agent appointed to calculate the Floating Interest Rate in respect of each Floating Rate Period. The calculation of the Floating Interest Rate for each applicable Floating Rate Period by the Calculation Agent will (in the absence of manifest error) be final and binding. The Calculation Agent's determination of any interest rate and its calculation of interest payments for any period will be maintained on file at the Calculation Agent's principal offices and, will be made available to any Noteholder (as defined below) upon request. The Calculation Agent may be removed by the Company at any time. If the Calculation Agent is unable or unwilling to act as Calculation Agent or is removed by the Company, the Company will promptly appoint a replacement Calculation Agent. The Calculation Agent may not resign its duties without a successor having been duly appointed; provided, that if a successor

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Calculation Agent has not been appointed by the Company and such successor accepted such position within thirty (30) calendar days after the giving of notice of resignation by the Calculation Agent, then the resigning Calculation Agent may petition, at the expense of the Company, any court of competent jurisdiction for the appointment of a successor Calculation Agent with respect to such series. For the avoidance of doubt, if at any time there is no Calculation Agent appointed by the Company, then the Company shall be the Calculation Agent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(b)**&nbsp;&nbsp;&nbsp;&nbsp;An "<u>Interest Payment Date</u>" is either a Fixed Rate Interest Payment Date or a Floating Rate Interest Payment Date, as applicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(c)**&nbsp;&nbsp;&nbsp;&nbsp;The "<u>Floating Interest Rate</u>" means:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(i)**&nbsp;&nbsp;&nbsp;&nbsp;initially Three-Month Term SOFR (as defined below).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(ii)**&nbsp;&nbsp;&nbsp;&nbsp;Notwithstanding the foregoing <u>clause (i)</u> of this <u>Section 2(c)</u>:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(A)**&nbsp;&nbsp;&nbsp;&nbsp;If the Calculation Agent determines prior to the relevant Floating Interest Determination Date that a Benchmark Transition Event and its related Benchmark Replacement Date (each of such terms as defined below) have occurred with respect to Three-Month Term SOFR, then the Company shall promptly provide notice of such determination to the Noteholders and <u>Section 2(d)</u> will thereafter apply to all determinations, calculations and quotations made or obtained for the purposes of calculating the Floating Interest Rate payable on the Subordinated Notes during a relevant Floating Rate Period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(B)**&nbsp;&nbsp;&nbsp;&nbsp;However, if the Calculation Agent determines that a Benchmark Transition Event and its related Benchmark Replacement Date have occurred with respect to Three-Month Term SOFR, but for any reason the Benchmark Replacement has not been determined as of the relevant Floating Interest Determination Date, the Floating Interest Rate for the applicable Floating Rate Period will be equal to the Floating Interest Rate on the last Floating Interest Determination Date for the Subordinated Notes, as determined by the Calculation Agent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(d)&nbsp;&nbsp;&nbsp;&nbsp;<u>Effect of Benchmark Transition Event</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(i)**&nbsp;&nbsp;&nbsp;&nbsp;If the Calculation Agent determines that a Benchmark Transition Event and its related Benchmark Replacement Date have occurred prior to the Reference Time (as defined below) in respect of any determination of the Benchmark (as defined below) on any date, the Benchmark Replacement will replace the then-current Benchmark for all purposes relating to the Subordinated Notes during the relevant Floating Rate Period in respect of such determination on such date and all determinations on all subsequent dates.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(ii)**&nbsp;&nbsp;&nbsp;&nbsp;In connection with the implementation of a Benchmark Replacement, the Calculation Agent will have the right to make Benchmark Replacement Conforming Changes from time to time and such changes shall become effective without consent from the Noteholders or any other party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(iii)**&nbsp;&nbsp;&nbsp;&nbsp;The Calculation Agent is expressly authorized to make certain determinations, decisions and elections under the Subordinated Notes, including with respect to the use of Three-Month Term SOFR as the Benchmark under this <u>Section 2(d)</u>. Any determination, decision or election that may be made by the Calculation Agent pursuant to the benchmark transition provisions set forth herein, including any determination with respect to a tenor, rate or adjustment or of the occurrence or non-occurrence of an event, circumstance or date, and any decision to take or refrain from taking any action or any selection:

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(A)**&nbsp;&nbsp;&nbsp;&nbsp;will be conclusive and binding absent manifest error;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(B)**&nbsp;&nbsp;&nbsp;&nbsp;if made by the Company as the Calculation Agent, will be made in the Company's sole discretion;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(C)**&nbsp;&nbsp;&nbsp;&nbsp;if made by the Calculation Agent other than the Company, will be made after consultation with the Company, and the Calculation Agent will not make any such determination, decision or election to which the Company reasonably objects; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(D)**&nbsp;&nbsp;&nbsp;&nbsp;notwithstanding anything to the contrary in this Subordinated Note or the Purchase Agreement, shall become effective without consent from the Noteholders or any other party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(iv)**&nbsp;&nbsp;&nbsp;&nbsp;If the Calculation Agent fails to make any determination, decision or election that it is required to make under the terms of the Subordinated Notes, then the Company will make such determination, decision or election on the same basis as described above.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(v)**&nbsp;&nbsp;&nbsp;&nbsp;For the avoidance of doubt, after a Benchmark Transition Event and its related Benchmark Replacement Date have occurred, interest payable on this Subordinated Note for the Floating Rate Period will be an annual rate equal to the sum of the applicable Benchmark Replacement and the spread specified on the face hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(vi)**&nbsp;&nbsp;&nbsp;&nbsp;If the then-current Benchmark is Three-Month Term SOFR, the Calculation Agent will have the right to establish the Three-Month Term SOFR Conventions, and if any of the foregoing provisions concerning the calculation of the interest rate and the payment of interest during the Floating Rate Period are inconsistent with any of the Three-Month Term SOFR Conventions determined by the Calculation Agent, then the relevant Three-Month Term SOFR Conventions will apply.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(vii)**&nbsp;&nbsp;&nbsp;&nbsp;As used in this Subordinated Note:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(A)**&nbsp;&nbsp;&nbsp;&nbsp;"<u>Benchmark</u>" means, initially, Three-Month Term SOFR; provided that if the Calculation Agent determines on or prior to the Reference Time that a Benchmark Transition Event and its related Benchmark Replacement Date have occurred with respect to Three-Month Term SOFR or the then-current Benchmark, then "Benchmark" means the applicable Benchmark Replacement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(B)**&nbsp;&nbsp;&nbsp;&nbsp;"<u>Benchmark Replacement</u>" means the Interpolated Benchmark with respect to the then-current Benchmark, plus the Benchmark Replacement Adjustment for such Benchmark; provided that if (a) the Calculation Agent cannot determine the Interpolated Benchmark as of the Benchmark Replacement Date or (b) the then-current Benchmark is Three-Month Term SOFR and a Benchmark Transition Event and its related Benchmark Replacement Date have occurred with respect to Three-Month Term SOFR (in which event no Interpolated Benchmark with respect to Three-Month Term SOFR shall be determined), then "<u>Benchmark Replacement</u>" means the first alternative set forth in the order below that can be determined by the Calculation Agent as of the Benchmark Replacement Date:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)&nbsp;&nbsp;&nbsp;&nbsp;the sum of: (i) Compounded SOFR and (ii) the Benchmark Replacement Adjustment;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)&nbsp;&nbsp;&nbsp;&nbsp;the sum of: (i) the alternate rate of interest that has been selected or recommended by the Relevant Governmental Body as the replacement for the then-

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current Benchmark for the applicable Corresponding Tenor and (ii) the Benchmark Replacement Adjustment;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3)&nbsp;&nbsp;&nbsp;&nbsp;the sum of: (i) the ISDA Fallback Rate and (ii) the Benchmark Replacement Adjustment;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4)&nbsp;&nbsp;&nbsp;&nbsp;the sum of: (i) the alternate rate of interest that has been selected by the Calculation Agent as the replacement for the then-current Benchmark for the applicable Corresponding Tenor giving due consideration to any industry-accepted rate of interest as a replacement for the then-current Benchmark for U.S. dollar denominated floating rate notes at such time and (ii) the Benchmark Replacement Adjustment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(C)**&nbsp;&nbsp;&nbsp;&nbsp;"<u>Benchmark Replacement Adjustment</u>" means the first alternative set forth in the order below that can be determined by the Calculation Agent as of the Benchmark Replacement Date:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)&nbsp;&nbsp;&nbsp;&nbsp;the spread adjustment, or method for calculating or determining such spread adjustment, (which may be a positive or negative value or zero) that has been selected or recommended by the Relevant Governmental Body for the applicable Unadjusted Benchmark Replacement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)&nbsp;&nbsp;&nbsp;&nbsp;if the applicable Unadjusted Benchmark Replacement is equivalent to the ISDA Fallback Rate, then the ISDA Fallback Adjustment;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3)&nbsp;&nbsp;&nbsp;&nbsp;the spread adjustment (which may be a positive or negative value or zero) that has been selected by the Calculation Agent giving due consideration to any industry-accepted spread adjustment, or method for calculating or determining such spread adjustment, for the replacement of the then-current Benchmark with the applicable Unadjusted Benchmark Replacement for U.S. dollar denominated floating rate notes at such time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(D)**&nbsp;&nbsp;&nbsp;&nbsp;"<u>Benchmark Replacement Conforming Changes</u>" means, with respect to any Benchmark Replacement, any technical, administrative or operational changes (including changes to the definition of "Floating Rate Period," timing and frequency of determining rates with respect to each Floating Rate Period and making payments of interest, rounding of amounts or tenors, and other administrative matters) that the Calculation Agent decides may be appropriate to reflect the adoption of such Benchmark Replacement in a manner substantially consistent with market practice (or, if the Calculation Agent decides that adoption of any portion of such market practice is not administratively feasible or if the Calculation Agent determines that no market practice for use of the Benchmark Replacement exists, in such other manner as the Calculation Agent determines is reasonably necessary).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(E)**&nbsp;&nbsp;&nbsp;&nbsp;"<u>Benchmark Replacement Date</u>" means the earliest to occur of the following events with respect to the then-current Benchmark:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)&nbsp;&nbsp;&nbsp;&nbsp;in the case of <u>clause (1)</u> of the definition of "Benchmark Transition Event," the relevant Reference Time in respect of any determination; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)&nbsp;&nbsp;&nbsp;&nbsp;in the case of <u>clause (2)</u> or clause <u>(3)</u> of the definition of "Benchmark Transition Event," the later of (i) the date of the public statement or

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publication of information referenced therein and (ii) the date on which the administrator of the Benchmark permanently or indefinitely ceases to provide the Benchmark; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3)&nbsp;&nbsp;&nbsp;&nbsp;in the case of <u>clause (4)</u> of the definition of "Benchmark Transition Event," the date of the public statement or publication of information referenced therein.

For the avoidance of doubt, for purposes of the definitions of Benchmark Replacement Date and Benchmark Transition Event, references to the Benchmark also include any reference rate underlying the Benchmark (for example, if the Benchmark becomes Compounded SOFR, references to the Benchmark would include SOFR).

For the avoidance of doubt, if the event giving rise to the Benchmark Replacement Date occurs on the same day as, but earlier than, the Reference Time in respect of any determination, the Benchmark Replacement Date will be deemed to have occurred prior to the Reference Time for such determination.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(F)**&nbsp;&nbsp;&nbsp;&nbsp;"<u>Benchmark Transition Event</u>" means the occurrence of one or more of the following events with respect to the then-current Benchmark:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)&nbsp;&nbsp;&nbsp;&nbsp;if the Benchmark is Three-Month Term SOFR, (i) the Relevant Governmental Body has not selected or recommended a forward-looking term rate for a tenor of three months based on SOFR, (ii) the development of a forward-looking term rate for a tenor of three months based on SOFR that has been recommended or selected by the Relevant Governmental Body is not complete or (iii) the Company determines that the use of a forward-looking rate for a tenor of three months based on SOFR is not administratively feasible;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)&nbsp;&nbsp;&nbsp;&nbsp;a public statement or publication of information by or on behalf of the administrator of the Benchmark announcing that such administrator has ceased or will cease to provide the Benchmark, permanently or indefinitely, provided that, at the time of such statement or publication, there is no successor administrator that will continue to provide the Benchmark;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3)&nbsp;&nbsp;&nbsp;&nbsp;a public statement or publication of information by the regulatory supervisor for the administrator of the Benchmark, the central bank for the currency of the Benchmark, an insolvency official with jurisdiction over the administrator for the Benchmark, a resolution authority with jurisdiction over the administrator for the Benchmark or a court or an entity with similar insolvency or resolution authority over the administrator for the Benchmark, which states that the administrator of the Benchmark has ceased or will cease to provide the Benchmark permanently or indefinitely, provided that, at the time of such statement or publication, there is no successor administrator that will continue to provide the Benchmark; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4)&nbsp;&nbsp;&nbsp;&nbsp;a public statement or publication of information by the regulatory supervisor for the administrator of the Benchmark announcing that the Benchmark is no longer representative.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(G)**&nbsp;&nbsp;&nbsp;&nbsp;"<u>Business Day</u>" means any day that is not a Saturday or Sunday and that is not a day on which banks in the State of Iowa are generally authorized or required by law or executive order to be closed.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(H)**&nbsp;&nbsp;&nbsp;&nbsp;"<u>Calculation Agent</u>" means the agent (which may be the Company or an affiliate of the Company) as may be appointed by the Company to act as Calculation Agent for the Subordinated Notes prior to the commencement of the Floating Rate Period to act in accordance with <u>Section 2</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(I)**&nbsp;&nbsp;&nbsp;&nbsp;"<u>Compounded SOFR</u>" means the compounded average of SOFRs for the applicable Corresponding Tenor, with the rate, or methodology for this rate, and conventions for this rate being established by the Calculation Agent in accordance with:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)&nbsp;&nbsp;&nbsp;&nbsp;the rate, or methodology for this rate and conventions for this rate selected or recommended by the Relevant Governmental Body for determining Compounded SOFR; provided that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)&nbsp;&nbsp;&nbsp;&nbsp;if, and to the extent that, the Calculation Agent determines that Compounded SOFR cannot be determined in accordance with <u>clause (1)</u> above, then the rate, or methodology for this rate, and conventions for this rate that have been selected by the Calculation Agent giving due consideration to any industry-accepted market practice for U.S. dollar denominated floating rate notes at such time.

For the avoidance of doubt, the calculation of Compounded SOFR will exclude the Benchmark Replacement Adjustment and the spread of 536 basis points per annum.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(J)**&nbsp;&nbsp;&nbsp;&nbsp;"<u>Corresponding Tenor</u>" with respect to a Benchmark Replacement means a tenor (including overnight) having approximately the same length (disregarding Business Day adjustment) as the applicable tenor for the then-current Benchmark.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(K)**&nbsp;&nbsp;&nbsp;&nbsp;"<u>FRBNY</u>" means the Federal Reserve Bank of New York.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(L)**&nbsp;&nbsp;&nbsp;&nbsp;"<u>FRBNY's Website</u>" means the website of the FRBNY at http://www.newyorkfed.org, or any successor source.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(M)**&nbsp;&nbsp;&nbsp;&nbsp;"<u>Interpolated Benchmark</u>" with respect to the Benchmark means the rate determined for the Corresponding Tenor by interpolating on a linear basis between: (1) the Benchmark for the longest period (for which the Benchmark is available) that is shorter than the Corresponding Tenor and (2) the Benchmark for the shortest period (for which the Benchmark is available) that is longer than the Corresponding Tenor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(N)**&nbsp;&nbsp;&nbsp;&nbsp;"<u>ISDA</u>" means the International Swaps and Derivatives Association, Inc. or any successor thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(O)**&nbsp;&nbsp;&nbsp;&nbsp;"<u>ISDA Definitions</u>" means the 2006 ISDA Definitions published by the ISDA or any successor thereto, as amended or supplemented from time to time, or any successor definitional booklet for interest rate derivatives published from time to time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(P)**&nbsp;&nbsp;&nbsp;&nbsp;"<u>ISDA Fallback Adjustment</u>" means the spread adjustment (which may be a positive or negative value or zero) that would apply for derivatives transactions referencing the ISDA Definitions to be determined upon the occurrence of an index cessation event with respect to the Benchmark for the applicable tenor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(Q)**&nbsp;&nbsp;&nbsp;&nbsp;"<u>ISDA Fallback Rate</u>" means the rate that would apply for derivatives transactions referencing the ISDA Definitions to be effective upon the occurrence of an index

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cessation date with respect to the Benchmark for the applicable tenor excluding the applicable ISDA Fallback Adjustment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(R)**&nbsp;&nbsp;&nbsp;&nbsp;"<u>Reference Time</u>" with respect to any determination of the Benchmark means (a) if the Benchmark is Three-Month Term SOFR, the time determined by the Calculation Agent after giving effect to the Three-Month Term SOFR Conventions, and (b) if the Benchmark is not Three-Month Term SOFR, the time determined by the Calculation Agent after giving effect to the Benchmark Replacement Conforming Changes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(S)**&nbsp;&nbsp;&nbsp;&nbsp;"<u>Relevant Governmental Body</u>" means the Board of Governors of the Federal Reserve System (the "<u>Federal Reserve</u>") and/or the FRBNY, or a committee officially endorsed or convened by the Federal Reserve and/or the FRBNY or any successor thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(T)**&nbsp;&nbsp;&nbsp;&nbsp;"<u>SOFR</u>" means the daily Secured Overnight Financing Rate published by the FRBNY, as the administrator of the Benchmark (or a successor administrator), on the FRBNY's Website (or such successor's website).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(U)**&nbsp;&nbsp;&nbsp;&nbsp;"<u>Term SOFR</u>" means the forward-looking term rate for the applicable Corresponding Tenor based on SOFR that as published by the Term SOFR Administrator.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(V)**&nbsp;&nbsp;&nbsp;&nbsp;"<u>Term SOFR Administrator</u>" means CME Group Benchmark Administration Limited (CBA) (or a successor administrator of Three-Month Term SOFR selected by the Calculation Agent in its reasonable discretion).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(W)**&nbsp;&nbsp;&nbsp;&nbsp;"<u>Three-Month Term SOFR</u>" means the rate for Term SOFR for a tenor of three months that is published by the Term SOFR Administrator at the Reference Time for any Floating Rate Period, as determined by the Calculation Agent after giving effect to the Three-Month Term SOFR Conventions, provided, however, that in the event that Three-Month Term SOFR is less than zero, Three Month Term SOFR shall be deemed to be zero. All percentages used in or resulting from any calculation of Three-Month Term SOFR shall be rounded, if necessary, to the nearest one-hundred-thousandth of a percentage point, with 0.000005% rounded up to 0.00001%.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(X)**&nbsp;&nbsp;&nbsp;&nbsp;"<u>Three-Month Term SOFR Conventions</u>" means any determination, decision or election with respect to any technical, administrative or operational matter (including with respect to the manner and timing of the publication of Three-Month Term SOFR, or changes to the definition of "Floating Rate Period," timing and frequency of determining Three-Month Term SOFR with respect to each Floating Rate Period and making payments of interest, rounding of amounts or tenors, and other administrative matters) that the Calculation Agent decides may be appropriate to reflect the use of Three-Month Term SOFR as the Benchmark in a manner substantially consistent with market practice (or, if the Calculation Agent decides that adoption of any portion of such market practice is not administratively feasible or if the Calculation Agent determines that no market practice for the use of Three-Month Term SOFR exists, in such other manner as the Calculation Agent determines is reasonably necessary).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(Y)&nbsp;&nbsp;&nbsp;&nbsp;**"<u>Unadjusted Benchmark Replacement</u>" means the Benchmark Replacement excluding the Benchmark Replacement Adjustment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.&nbsp;&nbsp;&nbsp;&nbsp;<u>Subordination</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(a)**&nbsp;&nbsp;&nbsp;&nbsp;The indebtedness of the Company evidenced by this Subordinated Note, including the principal and interest on this Subordinated Note, shall be subordinate and junior in right of payment to the

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prior payment in full of all existing claims of creditors of the Company and depositors of the Company's wholly owned subsidiary, Lincoln Savings Bank (the "<u>Bank</u>") whether now outstanding or subsequently created, assumed, guaranteed or incurred (collectively, "<u>Senior Indebtedness</u>"), which shall consist of principal of (and premium, if any) and interest, if any, on: (i) all indebtedness and obligations of, or guaranteed or assumed by, the Company for money borrowed, and any other liabilities for borrowed money whether or not evidenced by bonds, debentures, securities, notes or other similar instruments, and including, but not limited to, deposits of the Bank and all obligations to the Company's general creditors and secured creditors; (ii) any deferred obligations of the Company for the payment of the purchase price of property or assets acquired other than in the ordinary course of business; (iii) all obligations, contingent or otherwise, of the Company in respect of any letters of credit, bankers' acceptances, security purchase facilities and similar direct credit substitutes; (iv) any capital lease obligations of the Company; (v) all obligations of the Company in respect of interest rate swap, cap or other agreements, interest rate future or option contracts, currency swap agreements, currency future or option contracts, commodity contracts and other similar arrangements or derivative products; (vi) any obligation of the Company to its general creditors, as defined for purposes of the capital adequacy regulations of the Federal Reserve applicable to the Company, as the same may be amended or modified from time to time; (vii) all obligations that are similar to those in clauses (i) through (vi) of other Persons (as such term is defined in the Purchase Agreement) for the payment of which the Company is responsible or liable as obligor, guarantor or otherwise arising from an off-balance sheet guarantee; (viii) all obligations of the types referred to in clauses (i) through (vii) of other Persons secured by a lien on any property or asset of the Company, and (ix) in the case of clauses (i) through (viii) above, all amendments, renewals, extensions, modifications and refundings of such indebtedness and obligations; *except* "Senior Indebtedness" does not include (A) the Subordinated Notes, (B) any obligation that by its terms expressly is junior to, or ranks equally in right of payment with, the Subordinated Notes, (C) any existing subordinated notes as of the date of this issuance of this Subordinated Note, to which this Subordinated Note shall be pari passu, or (D) any indebtedness between the Company and any of its subsidiaries or Affiliates. This Subordinated Note is not secured by any assets of the Company or any subsidiary or Affiliate of the Company. The term "<u>Affiliate(s)</u>" means, with respect to any Person, such Person's immediate family members, partners, members or parent and subsidiary corporations, and any other Person directly or indirectly controlling, controlled by, or under common control with said Person and their respective Affiliates.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(b)**&nbsp;&nbsp;&nbsp;&nbsp;In the event of any liquidation of the Company, holders of Senior Indebtedness of the Company shall be entitled to be paid in full with such interest as may be provided by law before any payment shall be made on account of principal of or interest on this Subordinated Note. Additionally, in the event of any insolvency, dissolution, assignment for the benefit of creditors or any liquidation or winding up of or relating to the Company, whether voluntary or involuntary, holders of Senior Indebtedness shall be entitled to be paid in full before any payment shall be made on account of the principal of or interest on the Subordinated Notes, including this Subordinated Note. In the event of any such proceeding, after payment in full of all sums owing with respect to the Senior Indebtedness, the registered holders of the Subordinated Notes from time to time (each, a "<u>Noteholder</u>" and, collectively, the <u>"Noteholders</u>"), together with the holders of any obligations of the Company ranking on parity with the Subordinated Notes, shall be entitled to be paid from the remaining assets of the Company the unpaid principal thereof, and the unpaid interest thereon before any payment or other distribution, whether in cash, property or otherwise, shall be made (i) with respect to any obligation that by its terms expressly is junior to in the right of payment to the Subordinated Notes, (ii) with respect to any indebtedness between the Company and any of its subsidiaries or Affiliates, or (iii) on account of any capital stock.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(c)**&nbsp;&nbsp;&nbsp;&nbsp;If there shall have occurred and be continuing (i) a default in any payment with respect to any Senior Indebtedness or (ii) an event of default with respect to any Senior Indebtedness as a result of which the maturity thereof is accelerated, unless and until such payment default or event of default shall have been cured or waived or shall have ceased to exist, no payments shall be made by the Company with

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respect to the Subordinated Notes, notwithstanding the provisions of <u>Section 18</u> hereof. The provisions of this subsection shall not apply to any payment with respect to which <u>Section 3(b)</u> above would be applicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(d)**&nbsp;&nbsp;&nbsp;&nbsp;Nothing herein shall act to prohibit, limit or impede the Company from issuing additional debt of the Company having the same rank as the Subordinated Notes or which may be junior or senior in rank to the Subordinated Notes. Each Noteholder, by its acceptance hereof, agrees to and shall be bound by the provisions of this <u>Section 3</u>. Each Noteholder, by its acceptance hereof, further acknowledges and agrees that the foregoing subordination provisions are, and are intended to be, an inducement and a consideration for each holder of any Senior Indebtedness, whether such Senior Indebtedness was created or acquired before or after the issuance of the Subordinated Notes, to acquire and continue to hold, or to continue to hold, such Senior Indebtedness, and such holder of Senior Indebtedness shall be deemed conclusively to have relied on such subordination provisions in acquiring and continuing to hold or in continuing to hold such Senior Indebtedness.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.&nbsp;&nbsp;&nbsp;&nbsp;<u>Redemption</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(a)&nbsp;&nbsp;&nbsp;&nbsp;<u>Redemption Prior to Fifth Anniversary</u>**. This Subordinated Note shall not be redeemable by the Company, in whole or in part, prior to the fifth (5<sup>th</sup>) anniversary of the date upon which this Subordinated Note was originally issued (the "<u>Issue Date</u>"), except in the event of: (i) a Tier 2 Capital Event (as defined below), (ii) a Tax Event (as defined below) or (iii) an Investment Company Event (as defined below). Upon the occurrence of a Tier 2 Capital Event, a Tax Event or an Investment Company Event, subject to <u>Section 4(f)</u> below, the Company may redeem this Subordinated Note in whole, but not in part, at any time, upon giving not less than ten (10) calendar days' notice to the Noteholder at an amount equal to one hundred percent (100%) of the outstanding principal amount being redeemed plus accrued but unpaid interest, to but excluding the redemption date. "<u>Tier 2 Capital</u> <u>Event</u>" means the receipt by the Company of an opinion of counsel to the Company to the effect that there is more than an insubstantial risk that this Subordinated Note no longer qualifies as "Tier 2" capital (as defined by the Federal Reserve or its then equivalent) as a result of a change in law or regulation or in the interpretation or application of law or regulation by any judicial, legislative or regulatory authority that becomes effective after the Issue Date. "<u>Tax Event</u>" means the receipt by the Company of an opinion of counsel to the Company that as a result of any amendment to, or change (including any final and adopted (or enacted) prospective change) in, the laws (or any regulations thereunder) of the United States of America or any political subdivision or taxing authority thereof or therein, or as a result of any official administrative pronouncement or judicial decision interpreting or applying such laws or regulations, there is more than an insubstantial risk that interest payable by the Company on the Subordinated Notes is not, or within one hundred and twenty (120) calendar days after the receipt of such opinion will not be, deductible by the Company, in whole or in part, for U.S. federal income tax purposes. "<u>Investment</u> <u>Company Event</u>" means the receipt by the Company of an opinion of counsel to the Company to the effect that there is more than an insubstantial risk that the Company is or, within one hundred and twenty (120) calendar days after the receipt of such opinion will be, required to register as an investment company pursuant to the Investment Company Act of 1940, as amended.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(b)&nbsp;&nbsp;&nbsp;&nbsp;<u>Redemption on or after Fifth Anniversary</u>**. On or after the first Interest Payment Date after the fifth (5<sup>th</sup>) anniversary of the Issue Date, subject to <u>Section 4(f)</u> below, this Subordinated Note shall be redeemable at the option of and by the Company, in whole or in part, at any time and from time to time upon any Interest Payment Date, at an amount equal to one hundred percent (100%) of the outstanding principal amount being redeemed plus accrued but unpaid interest, to but excluding the redemption date. In the case of any redemption of this Subordinated Note pursuant to the first sentence of this <u>Section 4(b),</u> the Company will give the Noteholder notice of redemption, which notice shall indicate the aggregate principal amount of Subordinated Notes to be redeemed, which amount must be an amount having an

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integral multiplier of $1,000, not less than thirty (30) nor more than forty-five (45) calendar days prior to the proposed redemption date. On or after the fifth (5<sup>th</sup>) anniversary of the Issue Date, the Company may redeem this Subordinated Note, in whole or in part, upon the occurrence of a Tier 2 Capital Event, Tax Event or an Investment Company Event, upon giving not less than ten (10) calendar days' notice to the Noteholder, which notice of redemption shall indicate the aggregate principal amount of Subordinated Notes to be redeemed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(c)&nbsp;&nbsp;&nbsp;&nbsp;<u>Partial Redemption</u>**. If less than the then outstanding principal amount of this Subordinated Note is redeemed, (i) a new Subordinated Note shall be issued representing the unredeemed portion without charge to the holder thereof and (ii) such redemption shall be effected on a pro rata basis as to the Noteholders, provided, however, that the Company may round the portion to be redeemed of this Subordinated Note up or down so that the unredeemed amount remains an authorized denomination hereunder, without any impact on the pro rata amount to be redeemed from other Noteholders (which will be provided to the Paying Agent and Registrar in writing). For purposes of clarity, upon a partial redemption, a like percentage of the principal amount of every Subordinated Note held by every Noteholder shall be redeemed; provided, however, that the Company may round the portion to be redeemed of this Subordinated Note up or down so that the unredeemed amount remains an authorized denomination hereunder, without any impact on the pro rata amount to be redeemed from other Noteholders (which will be provided to the Paying Agent and Registrar in writing). Such redemptions shall be made on a pro rata pass-through distribution of principal among all of the Subordinated Notes outstanding at the time thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(d)&nbsp;&nbsp;&nbsp;&nbsp;<u>No Redemption at Option of Noteholder</u>**. This Subordinated Note is not subject to redemption at the option of the Noteholder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(e)&nbsp;&nbsp;&nbsp;&nbsp;<u>Effectiveness of Redemption</u>**. If notice of redemption has been duly given and notwithstanding that this Subordinated Note has been called for redemption but has not yet been surrendered for cancellation, on and after the date fixed for redemption interest shall cease to accrue on the portion of this Subordinated Note called for redemption, this Subordinated Note shall no longer be deemed outstanding with respect to the portion called for redemption and all rights with respect to the portion of this Subordinated Note called for redemption shall forthwith on such date fixed for redemption cease and terminate unless the Company shall default in the payment of the redemption price, except only the right of the Noteholder to receive the amount payable on such redemption, without interest. For purposes of clarity, any redemption made pursuant to the terms of this Subordinated Note shall be made on a pro rata basis, and, for purposes of a redemption processed through DTC, in accordance with its rules and procedures, as a "Pro Rata Pass-Through Distribution of Principal".

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(f)&nbsp;&nbsp;&nbsp;&nbsp;<u>Regulatory Approvals</u>**. Any such redemption pursuant to this <u>Section 4</u> shall be subject to receipt of any and all required federal and state regulatory approvals or non-objections, including, but not limited to, the consent of the Federal Reserve.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(g)&nbsp;&nbsp;&nbsp;&nbsp;<u>Purchase and Resale of the Subordinated Notes</u>**. Subject to any required federal and state regulatory approvals or non-objections and the provisions of this Subordinated Note, the Company shall have the right to purchase any of the Subordinated Notes at any time in the open market, private transactions or otherwise. If the Company purchases any Subordinated Notes, it may, in its discretion, hold, resell or cancel any of the purchased Subordinated Notes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.&nbsp;&nbsp;&nbsp;&nbsp;<u>Global Subordinated Notes</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(a)**&nbsp;&nbsp;&nbsp;&nbsp;Provided that applicable depository eligibility requirements are met, upon the written election of any Noteholder that is a Qualified Institutional Buyer, as defined in Rule 144A under the Securities Act, the Company shall use its commercially reasonable efforts to cause the Subordinated Notes

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owned by such Noteholders to be issued in the form of one or more Global Subordinated Notes (each, a "<u>Global</u> <u>Subordinated Note</u>") registered in the name of The Depository Trust Company or another organization registered as a clearing agency under the Securities Exchange Act of 1934, as amended (the "<u>Exchange Act</u>"), and designated as Depositary by the Company or any successor thereto (the "<u>Depositary</u>") or a nominee thereof and delivered to such Depositary or a nominee thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(b)**&nbsp;&nbsp;&nbsp;&nbsp;Notwithstanding any other provision herein, no Global Subordinated Note may be exchanged in whole or in part for Subordinated Notes registered, and no transfer of a Global Subordinated Note in whole or in part may be registered, in the name of any person other than the Depositary for such Global Subordinated Note or a nominee thereof unless (i) such Depositary advises the Company in writing that such Depositary is no longer willing or able to properly discharge its responsibilities as Depositary with respect to such Global Subordinated Note, and no qualified successor is appointed by the Company within ninety (90) calendar days of receipt by the Company of such notice, (ii) such Depositary ceases to be a clearing agency registered under the Exchange Act and no successor is appointed by the Company within ninety (90) calendar days after obtaining knowledge of such event, (iii) the Company elects to terminate the book-entry system through the Depositary or (iv) an Event of Default (as defined in <u>Section 6</u>) shall have occurred and be continuing. Upon the occurrence of any event specified in clause (i), (ii), (iii) or (iv) of this <u>Section 5(b),</u> the Company or its agent shall notify the Depositary and instruct the Depositary to notify all owners of beneficial interests in such Global Subordinated Note of the occurrence of such event and of the availability of Subordinated Notes to such owners of beneficial interests requesting the same.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(c)**&nbsp;&nbsp;&nbsp;&nbsp;If any Global Subordinated Note is to be exchanged for other Subordinated Notes or canceled in part, or if another Subordinated Note is to be exchanged in whole or in part for a beneficial interest in any Global Subordinated Note, then either (i) such Global Subordinated Note shall be so surrendered for exchange or cancellation as provided in this <u>Section 5</u> or (ii) the principal amount thereof shall be reduced or increased by an amount equal to the portion thereof to be so exchanged or canceled, or equal to the principal amount of such other Subordinated Note to be so exchanged for a beneficial interest therein, as the case may be, by means of an appropriate adjustment made on the records of the Company or, if applicable, the Company's registrar and transfer agent ("<u>Registrar</u>"), whereupon the Company or, if applicable, the Registrar, in accordance with the applicable rules and procedures of the Depositary ("<u>Applicable Depositary Procedures</u>"), shall instruct the Depositary or its authorized representative to make a corresponding adjustment to its records. Upon any such surrender or adjustment of a Global Subordinated Note by the Depositary, accompanied by registration instructions, the Company shall execute and deliver any Subordinated Notes issuable in exchange for such Global Subordinated Note (or any portion thereof) in accordance with the instructions of the Depositary.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(d)**&nbsp;&nbsp;&nbsp;&nbsp;Every Subordinated Note executed and delivered upon registration of transfer of, or in exchange for or in lieu of, a Global Subordinated Note or any portion thereof shall be executed and delivered in the form of, and shall be, a Global Subordinated Note, unless such Subordinated Note is registered in the name of a person other than the Depositary for such Global Subordinated Note or a nominee thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(e)**&nbsp;&nbsp;&nbsp;&nbsp;The Depositary or its nominee, as the registered owner of a Global Subordinated Note, shall be the holder of such Global Subordinated Note for all purposes under this Subordinated Note, and owners of beneficial interests in a Global Subordinated Note shall hold such interests pursuant to Applicable Depositary Procedures. Accordingly, any such owner's beneficial interest in a Global Subordinated Note shall be shown only on, and the transfer of such interest shall be effected only through, records maintained by the Depositary or its nominee or its Depositary participants. If applicable, the Registrar shall be entitled to deal with the Depositary for all purposes relating to a Global Subordinated Note (including the payment of principal and interest thereon and the giving of instructions or directions by owners of beneficial interests therein and the giving of notices) as the sole holder of the Subordinated Note and shall have no obligations

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to the owners of beneficial interests therein. The Registrar shall have no liability in respect of any transfers undertaken by the Depositary.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(f)**&nbsp;&nbsp;&nbsp;&nbsp;The rights of owners of beneficial interests in a Global Subordinated Note shall be exercised only through the Depositary and shall be limited to those established by law and agreements between such owners and the Depositary and/or its participants.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(g)**&nbsp;&nbsp;&nbsp;&nbsp;No holder of any beneficial interest in any Global Subordinated Note held on its behalf by a Depositary shall have any rights with respect to such Global Subordinated Note, and such Depositary may be treated by the Company and any agent of the Company as the owner of such Global Subordinated Note for all purposes whatsoever. Neither the Company nor any agent of the Company will have any responsibility or liability for any aspect of the records relating to or payments made on account of beneficial ownership interests of a Global Subordinated Note or maintaining, supervising or reviewing any records relating to such beneficial ownership interests. Notwithstanding the foregoing, nothing herein shall prevent the Company or any agent of the Company from giving effect to any written certification, proxy or other authorization furnished by a Depositary or impair, as between a Depositary and such holders of beneficial interests, the operation of customary practices governing the exercise of the rights of the Depositary (or its nominee) as holder of any Subordinated Note.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.&nbsp;&nbsp;&nbsp;&nbsp;<u>Events of Default; Acceleration</u>**. Each of the following events shall constitute an "<u>Event</u> <u>of Default</u>":

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(a)**&nbsp;&nbsp;&nbsp;&nbsp;the entry of a decree or order for relief in respect of the Company by a court having jurisdiction in the premises in an involuntary case or proceeding under any applicable bankruptcy, insolvency, or reorganization law, now or hereafter in effect of the United States of America or any political subdivision thereof, and such decree or order will have continued unstayed and in effect for a period of sixty (60) consecutive calendar days;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(b)**&nbsp;&nbsp;&nbsp;&nbsp;the commencement by the Company of a voluntary case under any applicable bankruptcy, insolvency or reorganization law, now or hereafter in effect of the United States of America or any political subdivision thereof, or the consent by the Company to the entry of a decree or order for relief in an involuntary case or proceeding under any such law;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(c)** (i) the appointment by a competent governmental agency having primary regulatory authority over any Major Constituent Bank (as such term is defined in the Purchase Agreement) under any applicable federal or state banking, insolvency or similar law now or hereafter in effect of a receiver of any such Major Constituent Bank or (ii) the entry of a decree or order in any case or proceeding under any applicable federal or state banking, insolvency or other similar law now or hereafter in effect appointing any receiver of any Major Constituent Bank;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(d)** the Company (i) becomes insolvent or is unable to pay its debts as they mature, (ii) makes an assignment for the benefit of creditors, (iii) admits in writing its inability to pay its debts as they mature, or (iv) ceases to be a bank holding company or financial holding company under the Bank Holding Company Act of 1956, as amended;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(e)** the failure of the Company to pay any installment of interest on any of the Subordinated Notes as and when the same will become due and payable, and the continuation of such failure for a period of fifteen (15) consecutive calendar days;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(f)** the failure of the Company to pay all or any part of the principal of any of the Subordinated Notes as and when the same will become due and payable;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(g)** the liquidation of the Company (for the avoidance of doubt, "liquidation" does not include any merger, consolidation, sale of equity or assets or reorganization (exclusive of a reorganization in bankruptcy) of the Company or any of its subsidiaries);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(h)** the failure of the Company to perform any other covenant or agreement on the part of the Company contained in the Subordinated Notes, and the continuation of such failure for a period of thirty (30) consecutive calendar days after the date on which notice specifying such failure, stating that such notice is a "Notice of Default" hereunder and demanding that the Company remedy the same, will have been given, in the manner set forth in <u>Section 22</u>, to the Company by a Noteholder; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(i)** the default by the Company under any bond, debenture, note or other evidence of indebtedness (which in no event shall include any terms of capital stock issued by the Company) for money borrowed by the Company having an aggregate principal amount outstanding of at least $15,000,000, whether such indebtedness now exists or is created or incurred in the future, which default (i) constitutes a failure to pay any portion of the principal of such indebtedness when due and payable after the expiration of any applicable grace period or (ii) results in such indebtedness becoming due or being declared due and payable prior to the date on which it otherwise would have become due and payable without, in the case of clause (i), such indebtedness having been discharged or, in the case of clause (ii), without such indebtedness having been discharged or such acceleration having been rescinded or annulled.

Unless the principal amount of this Subordinated Note already shall have become due and payable, if an Event of Default described in <u>Section 6(a)</u> or <u>Section 6(b)</u> shall have occurred and be continuing, the principal amount of this Subordinated Note shall be immediately due and payable without notice, demand, declaration or other action on the part of the Noteholder. The Company waives demand, presentment for payment, notice of nonpayment, notice of protest and all other notices. Notwithstanding the foregoing, because the Company will treat the Subordinated Notes as Tier 2 Capital, upon the occurrence of an Event of Default other than an Event of Default described in <u>Section 6(a)</u> or <u>Section</u> <u>6(b)</u>, the Noteholders may not accelerate the Maturity Date of the Subordinated Notes and make the principal of, and any accrued and unpaid interest on, the Subordinated Notes, immediately due and payable. The Company, within forty-five (45) calendar days after the receipt of written notice from any Noteholder of the occurrence of an Event of Default with respect to this Subordinated Note, shall mail to all Noteholders, at their addresses shown on the Security Register (as defined in <u>Section 14</u> below), such written notice of Event of Default, unless such Event of Default shall have been cured or waived before the giving of such notice as certified by the Company in writing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7.&nbsp;&nbsp;&nbsp;&nbsp;<u>Failure to Make Payments</u>**. In the event of an Event of Default under <u>Section 6(c)</u>, <u>Section 6(d)</u> or <u>Section 6(e)</u>, the Company will, upon demand of the Noteholder, pay to the Noteholder the amount then due and payable on this Subordinated Note for principal and interest (without acceleration of this Subordinated Note in any manner), with interest on the overdue principal and interest at the per annum rate borne by this Subordinated Note, to the extent permitted by applicable law. If the Company fails to pay such amount upon such demand, the Noteholder may, among other things, institute a judicial proceeding for the collection of the sums so due and unpaid and, together with such amount as shall be sufficient to cover the reasonable and documented costs and expenses of collection, including the reasonable compensation, expenses, disbursements and advances of such Noteholder, its agents and counsel, may prosecute such proceeding to judgment or final decree and may enforce the same against the Company and collect the amounts adjudged or decreed to be payable in the manner provided by law out of the property of the Company.

Upon the occurrence of a failure by the Company to make any required payment of principal or interest on this Subordinated Note or an Event of Default, until such failure or Event of Default is cured by the Company or waived by the Noteholders in accordance with <u>Section 17</u> hereof, the Company shall not,

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except as may be required by any federal or state bank regulatory agency: (a) declare or pay any dividends or distributions on, or redeem, purchase, acquire, or make a liquidation payment with respect to, any of the Company's capital stock; (b) make any payment of principal of or interest or premium, if any, on or repay, repurchase or redeem any indebtedness of the Company that ranks equal with or junior to the Subordinated Notes; or (c) make any payments under any guarantee that ranks equal with or junior to the Subordinated Notes, other than (i) any dividends or distributions payable solely in shares of, or options, warrants or rights to subscribe for or purchase shares of, any class of the Company's common stock; (ii) any declaration of a non-cash dividend in connection with the implementation of a shareholders' rights plan, or the issuance of stock under any such plan in the future, or the redemption or repurchase of any such rights pursuant thereto; (iii) as a result of a reclassification of the Company's capital stock or the exchange or conversion of one class or series of the Company's capital stock for another class or series of the Company's capital stock; (iv) the purchase of fractional interests in shares of the Company's capital stock pursuant to the conversion or exchange provisions of such capital stock or the security being converted or exchanged; or (v) purchases of any class of the Company's common stock related to the issuance of common stock or rights under any benefit plans for the Company's directors, officers or employees or any of the Company's dividend reinvestment plans (the foregoing clauses (i) through (v) are collectively referred to as the "<u>Permitted</u> <u>Dividends</u>").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8.&nbsp;&nbsp;&nbsp;&nbsp;<u>Affirmative Covenants of the Company</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(a)&nbsp;&nbsp;&nbsp;&nbsp;<u>Notice of Certain Events</u>**. To the extent permitted by applicable statute, rule or regulation, the Company shall provide written notice to the Noteholder of the occurrence of any of the following events as soon as practicable, but in no event later than fifteen (15) Business Days following the Company becoming aware of the occurrence of such event:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(i)**&nbsp;&nbsp;&nbsp;&nbsp;the Company or any of its banking subsidiaries become less than "well- capitalized" as defined under the then-applicable regulatory capital standards;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(ii)**&nbsp;&nbsp;&nbsp;&nbsp;the Company or any of the Company's subsidiaries, or any executive officer of the Company or its subsidiaries (in such capacity), becomes subject to any formal, written regulatory enforcement action (as defined by the applicable Regulatory Agency (as such term is defined in the Purchase Agreement));

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(iii)** the dollar amount of any nonperforming assets of the Company on a consolidated basis as of the end of a given fiscal quarter as a percentage of the Company's total loan portfolio increases by three percent (3%) or more from the end of the preceding fiscal quarter;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(iv)** the appointment, resignation, removal or termination of the chief executive officer, president, chief financial officer or chief credit officer of the Company or the Bank; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(v)** a transaction results in a change in ownership of twenty-five percent (25%) or more of the outstanding securities of the Company entitled to vote for the election of directors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(b)&nbsp;&nbsp;&nbsp;&nbsp;<u>Payment of Principal and Interest</u>**. The Company covenants and agrees for the benefit of the Noteholder that it will duly and punctually pay the principal of, and interest on, this Subordinated Note, in accordance with the terms hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(c)&nbsp;&nbsp;&nbsp;&nbsp;<u>Maintenance of Office</u>**. The Company will maintain an office or agency in the city of Reinbeck, Iowa where Subordinated Notes may be surrendered for registration of transfer or for exchange and where notices and demands to or upon the Company in respect of the Subordinated Notes may be served. The Company may also from time to time designate one or more other offices or agencies where

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the Subordinated Notes may be presented or surrendered for any or all such purposes and may from time to time rescind such designations; *provided* that no such designation or rescission will in any manner relieve the Company of its obligation to maintain an office or agency in the city of Reinbeck, Iowa. The Company will give prompt written notice to the Noteholders of any such designation or rescission and of any change in the location of any such other office or agency.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(d)&nbsp;&nbsp;&nbsp;&nbsp;<u>Corporate Existence</u>**. The Company will do or cause to be done all things necessary to preserve and keep in full force and effect: (i) the corporate existence of the Company and the Bank; (ii) the existence (corporate or other) of each subsidiary; and (iii) the rights (charter and statutory), licenses and franchises of the Company and each of its subsidiaries; *provided*, *however*, that the Company will not be required to preserve the existence (corporate or other) of any of its subsidiaries or any such right, license or franchise of the Company or any of its subsidiaries if the Board of Directors of the Company determines, in its reasonable judgment after consultation with legal counsel, that the preservation thereof is no longer desirable in the conduct of the business of the Company and its subsidiaries taken as a whole and that the loss thereof will not be disadvantageous in any material respect to the Noteholders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(e)&nbsp;&nbsp;&nbsp;&nbsp;<u>Maintenance of Properties</u>**. The Company will, and will cause each of its subsidiaries to, cause all its properties used or useful in the conduct of its business to be maintained and kept in good condition, repair and working order and supplied with all necessary equipment and will cause to be made all necessary repairs, renewals, replacements, betterments and improvements thereof, all as in the judgment of the Company may be necessary so that the business carried on in connection therewith may be properly and advantageously conducted at all times; *provided*, *however*, that nothing in this <u>Section 8</u> will prevent the Company or any subsidiary from discontinuing the operation and maintenance of any of their respective properties if such discontinuance is, in the judgment of the Board of Directors of the Company or of any subsidiary, as the case may be, desirable in the conduct of its business.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(f)&nbsp;&nbsp;&nbsp;&nbsp;<u>Transfer of Voting Stock</u>**. Except as contemplated by <u>Section 9(b)</u>, the Company will not, nor will it permit the Bank to, directly or indirectly, sell, assign, transfer or otherwise dispose of any shares of, securities convertible into, or options, warrants or rights to subscribe for or purchase shares of, Voting Stock (as defined below) of the Bank or any successor thereof or any subsidiary of the Company that is a depository institution and that has consolidated assets equal to 30% or more of the Company's consolidated assets ("<u>Material Subsidiary</u>"), nor will the Company permit the Material Subsidiary to issue any shares of, or securities convertible into, or options, warrants or rights to subscribe for or purchase shares of, Voting Stock of the Material Subsidiary if, in each case, after giving effect to any such transaction and to the issuance of the maximum number of shares of Voting Stock of the Material Subsidiary issuable upon the exercise of all such convertible securities, options, warrants or rights, the Company would cease to own, directly or indirectly, at least 80% of the issued and outstanding Voting Stock of the Material Subsidiary. "<u>Voting Stock</u>" means outstanding shares of capital stock having voting power for the election of directors, whether at all times or only so long as no senior class of stock has such voting power because of default in dividends or other default.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(g)&nbsp;&nbsp;&nbsp;&nbsp;<u>Waiver of Certain Covenants</u>**. The Company may omit in any particular instance to comply with any term, provision or condition set forth in <u>Section 8(c)</u>, <u>Section 8(d)</u>, <u>Section 8(e)</u>, or <u>Section 8(f)</u> above, with respect to this Subordinated Note if before the time for such compliance the Noteholders of at least a majority in aggregate principal amount of the outstanding Subordinated Notes (excluding any Subordinated Notes held by the Company or any of its Affiliates), by act of such Noteholders, either will waive such compliance in such instance or generally will have waived compliance with such term, provision or condition, but no such waiver will extend to or affect such term, provision or condition except to the extent so expressly waived, and, until such waiver will become effective, the obligations of the Company in respect of any such term, provision or condition will remain in full force and effect.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(h)&nbsp;&nbsp;&nbsp;&nbsp;<u>Compliance Certificate</u>**. The Company will deliver to the Noteholders, within one hundred and twenty (120) calendar days after the end of each fiscal year, an Officer's Certificate covering the preceding calendar year, stating whether or not, to the best of his or her knowledge, the Company is in default in the performance and observance of any of the terms, provisions and conditions of this Subordinated Note (without regard to notice requirements or periods of grace) and if the Company will be in default, specifying all such defaults and the nature and status thereof of which he or she may have knowledge.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(i)&nbsp;&nbsp;&nbsp;&nbsp;<u>Tier 2 Capital</u>**. Whether or not the Company is subject to consolidated capital requirements under applicable regulations of the Federal Reserve, if all or any portion of the Subordinated Notes ceases to qualify as Tier 2 Capital, other than due to the limitation imposed on the capital treatment of subordinated debt during the five (5) years immediately preceding the Maturity Date of the Subordinated Notes, the Company will promptly notify the Noteholder and thereafter, subject to the Company's right to redeem the Subordinated Notes under such circumstances pursuant to the terms of the Subordinated Notes, if requested by the Company, the Company and the Noteholder will work together in good faith to execute and deliver all agreements as reasonably necessary in order to restructure the applicable portions of the obligations evidenced by the Subordinated Notes to qualify as Tier 2 Capital; *provided*, *however*, that nothing contained in this <u>Section 8(</u>i<u>)</u> shall limit the Company's right to redeem the Subordinated Notes upon the occurrence of a Tier 2 Capital Event pursuant to <u>Section 4(a)</u> or <u>Section</u> <u>4(b)</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(j)&nbsp;&nbsp;&nbsp;&nbsp;<u>Compliance with Laws</u>**. The Company shall comply with the requirements of all laws, regulations, orders and decrees applicable to it or its properties, except for such noncompliance that would not reasonably be expected to have a Material Adverse Effect (as such term is defined in the Purchase Agreement) on the Company and its subsidiaries taken as a whole.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(k)&nbsp;&nbsp;&nbsp;&nbsp;<u>Taxes and Assessments</u>**. The Company shall punctually pay and discharge all material taxes, assessments, and other governmental charges or levies imposed upon it or upon its income or upon any of its properties; *provided* that no such taxes, assessments or other governmental charges need be paid if they are being contested in good faith by the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(l)&nbsp;&nbsp;&nbsp;&nbsp;<u>Financial Statements; Access to Records</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(i)**&nbsp;&nbsp;&nbsp;&nbsp;Not later than forty-five (45) calendar days following the end of each semi-annual or quarterly period, as applicable, for which the Company has not timely submitted a Consolidated Financial Statement for Holding Companies Reporting Form Y-9C to the Federal Reserve, upon request, the Company shall provide the Noteholder with a copy of the Company's unaudited parent company only balance sheet and statement of income (loss) for and as of the end of such immediately preceding fiscal quarter, prepared in accordance with past practice. Quarterly financial statements, if required herein, shall be unaudited and need not comply with generally accepted accounting principles ("GAAP").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(ii)**&nbsp;&nbsp;&nbsp;&nbsp;Not later than one hundred and twenty (120) calendar days from the end of each fiscal year, upon request the Company shall provide the Noteholder with copies of the Company's audited financial statements consisting of the consolidated balance sheet of the Company as of the fiscal year end and the related statements of income (loss) and retained earnings, stockholders' equity and cash flows for the fiscal year then ended. Such financial statements shall be prepared in accordance with GAAP applied on a consistent basis throughout the period involved.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(m)&nbsp;&nbsp;&nbsp;&nbsp;<u>Designated NRSRO Rating</u>**. The Company will use commercially reasonable efforts to maintain a rating by a Designated NRSRO (as defined below) while any Subordinated Notes remain outstanding. The term "Designated NRSRO" means a "nationally recognized statistical rating organization" (NRSRO) within the meaning of Section 3(a)(62) of the Exchange Act, that is designated as

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a "Credit Rating Provider" (or other similar designation) by the National Association of Insurance Commissioners (NAIC).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9.&nbsp;&nbsp;&nbsp;&nbsp;<u>Negative Covenants of the Company</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(a)&nbsp;&nbsp;&nbsp;&nbsp;<u>Limitation on Dividends</u>**. The Company shall not declare or pay any dividend or make any distribution on capital stock or other equity securities of any kind of the Company, in each case, except: (i) in such amounts as permitted by applicable regulations and only upon receipt of any regulatory approval; or (ii) Permitted Dividends.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(b)&nbsp;&nbsp;&nbsp;&nbsp;<u>Merger or Sale of Assets</u>**. The Company shall not merge into another entity, effect a Change in Bank Control (as defined below), or convey, transfer or lease substantially all of its properties and assets to any person, unless:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(i)**&nbsp;&nbsp;&nbsp;&nbsp;the continuing entity into which the Company is merged or the person which acquires by conveyance or transfer or which leases substantially all of the properties and assets of the Company shall be a corporation, association or other legal entity organized and existing under the laws of the United States of America, any State thereof or the District of Columbia and expressly assumes the due and punctual payment of the principal of and any premium and interest on the Subordinated Notes according to their terms, and the due and punctual performance of all covenants and conditions hereof on the part of the Company to be performed or observed; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(ii)**&nbsp;&nbsp;&nbsp;&nbsp;immediately after giving effect to such transaction, no Event of Default, and no event which, after notice or lapse of time or both, would become an Event of Default, shall have occurred and be continuing.

"<u>Change in Bank Control</u>" means the sale, transfer, lease or conveyance by the Company, or an issuance of stock by the Bank other than to the Company, in either case resulting in ownership by the Company of less than eighty percent (80%) of the Bank.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**10.&nbsp;&nbsp;&nbsp;&nbsp;<u>Denominations</u>**. The Subordinated Notes are issuable only in registered form without interest coupons in minimum denominations of $100,000 and integral multiples of $1,000 in excess thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**11.&nbsp;&nbsp;&nbsp;&nbsp;<u>Charges and Transfer Taxes</u>**. No service charge will be made for any registration of transfer or exchange of this Subordinated Note, or any redemption or repayment of this Subordinated Note, or any conversion or exchange of this Subordinated Note for other types of securities or property, but the Company may require payment of a sum sufficient to pay all taxes, assessments or other governmental charges that may be imposed in connection with the transfer or exchange of this Subordinated Note from the Noteholder requesting such transfer or exchange.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**12.&nbsp;&nbsp;&nbsp;&nbsp;<u>Payment Procedures</u>**. Payment of the principal and interest payable on the Maturity Date, or the earlier redemption date contemplated by Section 4 of this Subordinated Note, will be made by check, by wire transfer or by Automated Clearing House (ACH) transfer in immediately available funds to a bank account in the United States of America designated by the Noteholder if such Noteholder shall have previously provided wire instructions to the Company, upon presentation and surrender of this Subordinated Note at the Payment Office (as defined herein) or at such other place or places as the Company shall designate by notice to the Noteholders as the Payment Office, *provided* that this Subordinated Note is presented to the Company in time for the Company to make such payments in such funds in accordance with its normal procedures. Payments of interest (other than interest payable on the Maturity Date) shall be made by wire transfer on each Interest Payment Date in immediately available funds or check mailed to the registered Noteholder, as such Person's address appears on the Security Register (as defined herein).

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Interest payable on any Interest Payment Date shall be payable to the Noteholder in whose name this Subordinated Note is registered at the close of business on the fifteenth (15<sup>th</sup>) calendar day prior to the applicable Interest Payment Date, without regard to whether such date is a Business Day, except that interest not paid on the Interest Payment Date, if any, will be paid to the Noteholder in whose name this Subordinated Note is registered at the close of business on a special record date fixed by the Company (a "<u>Special Record Date</u>"), notice of which shall be given to the Noteholder not less than ten (10) calendar days prior to such Special Record Date. To the extent permitted by applicable law, interest shall accrue, at the rate at which interest accrues on the principal of this Subordinated Note, on any amount of principal or interest on this Subordinated Note not paid when due. All payments on this Subordinated Note shall be applied first against costs and expenses of the Noteholder, if any, for which the Company is liable under this Subordinated Note; then against interest due hereunder; and then against principal due hereunder. The Noteholder acknowledges and agrees that the payment of all or any portion of the outstanding principal amount of this Subordinated Note and all interest hereon shall be *pari passu* in right of payment and in all other respects to the other Subordinated Notes. In the event that the Noteholder receives payments in excess of its pro rata share of the Company's payments to the Noteholders of all of the Subordinated Notes, then the Noteholder shall hold in trust all such excess payments for the benefit of the Noteholders of the other Subordinated Notes and shall pay such amounts held in trust to such other Noteholders upon demand by such Noteholders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**13.&nbsp;&nbsp;&nbsp;&nbsp;<u>Form of Payment</u>**. Payments of principal of and interest on this Subordinated Note shall be made in such coin or currency of the United States of America as at the time of payment shall be legal tender for the payment of public and private debts.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**14.&nbsp;&nbsp;&nbsp;&nbsp;<u>Registration of Transfer, Security Register</u>**. Except as otherwise provided herein, this Subordinated Note is transferable in whole or in part and may be exchanged for a like aggregate principal amount of Subordinated Notes of other authorized denominations, by the Noteholder in person, or by its attorney duly authorized in writing, at the Payment Office or the offices of the Registrar. The Company or the Registrar shall maintain a register providing for the registration of the Subordinated Notes and any exchange or transfer thereof (the "<u>Security Register</u>"). Upon surrender or presentation of this Subordinated Note for exchange or registration of transfer, the Company or the Registrar shall execute and deliver in exchange therefor a Subordinated Note or Subordinated Notes of like aggregate principal amount, each in a minimum denomination of $100,000 or any amount in excess thereof which is an integral multiple of $1,000 (and, in the absence of an opinion of counsel satisfactory to the Company to the contrary, bearing the restrictive legend(s) set forth hereinabove) and that is or are registered in such name or names requested by the Noteholder. Any Subordinated Note presented or surrendered for registration of transfer or for exchange shall be duly endorsed and accompanied by a written instrument of transfer in such form as is attached hereto and incorporated herein, duly executed by the Noteholder or its attorney duly authorized in writing, with such tax identification number or other information for each Person in whose name a Subordinated Note is to be issued, and accompanied by evidence of compliance with any restrictive legend(s) appearing on such Subordinated Note or Subordinated Notes as the Company may reasonably request to comply with applicable law. Such transferee will be solely responsible for delivering to the Company or the Registrar a mailing address or other information necessary for the Company or the Registrar to deliver notices and payments to such transferee. No exchange or registration of transfer of this Subordinated Note shall be made on or after (i) the fifteenth (15<sup>th</sup>) calendar day immediately preceding the Maturity Date or (ii) the due delivery of notice of redemption.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**15.&nbsp;&nbsp;&nbsp;&nbsp;<u>Priority</u>**. The Subordinated Notes rank *pari passu* among themselves and *pari passu*, in the event of any insolvency proceeding, dissolution, assignment for the benefit of creditors, reorganization, restructuring of debt, marshaling of assets and liabilities or similar proceeding or any liquidation or winding up of the Company, with all other present or future unsecured subordinated debt obligations of the

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Company, except any unsecured subordinated debt that, pursuant to its express terms, is senior or subordinate in right of payment to the Subordinated Notes and all Senior Indebtedness.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**16.&nbsp;&nbsp;&nbsp;&nbsp;<u>Ownership</u>**. Prior to due presentment of this Subordinated Note for registration of transfer, the Company may treat the Noteholder in whose name this Subordinated Note is registered in the Security Register as the absolute owner of this Subordinated Note for receiving payments of principal and interest on this Subordinated Note and for all other purposes whatsoever, whether or not this Subordinated Note be overdue, and the Company shall not be affected by any notice to the contrary.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**17.&nbsp;&nbsp;&nbsp;&nbsp;<u>Waiver and Consent</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(a)**&nbsp;&nbsp;&nbsp;&nbsp;Any consent or waiver given by the Noteholder shall be conclusive and binding upon such Noteholder and upon all future Noteholders of this Subordinated Note and of any Subordinated Note issued upon the registration of transfer hereof or in exchange therefor or in lieu hereof, whether or not notation of such consent or waiver is made upon this Subordinated Note. No delay or omission of the Noteholder to exercise any right or remedy accruing upon any Event of Default shall impair such right or remedy or constitute a waiver of any such Event of Default or an acquiescence therein. Any insured depository institution which shall be a Noteholder or which otherwise shall have any beneficial ownership interest in this Subordinated Note shall, by its acceptance of such Subordinated Note (or beneficial interest therein), be deemed to have waived any right of offset with respect to the repayment of the indebtedness evidenced thereby.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(b)**&nbsp;&nbsp;&nbsp;&nbsp;No waiver or amendment of any term, provision, condition, covenant or agreement in the Subordinated Notes shall be effective except with the consent of the Noteholders holding more than fifty percent (50%) in aggregate principal amount (excluding any Subordinated Notes held by the Company or any of its Affiliates) of the Subordinated Notes at the time outstanding; *provided*, *however*, that, without the consent of each Noteholder of an affected Subordinated Note, no such amendment or waiver may: (i) reduce the principal amount of any Subordinated Note; (ii) reduce the rate of or change the time for payment of interest on any Subordinated Note; (iii) extend the maturity of any Subordinated Note; (iv) change the currency in which payment of the obligations of the Company under the Subordinated Notes are to be made; (v) lower the percentage of aggregate principal amount of outstanding Subordinated Notes required to approve any amendment of the Subordinated Notes; (vi) make any changes to <u>Section</u> <u>4(c)</u> (Partial Redemption); <u>Section 6</u> (Events of Default; Acceleration); <u>Section 7</u> (Failure to Make Payments); <u>Section 15</u> (Priority) or <u>Section 17</u> (Waiver and Consent) of the Subordinated Notes that adversely affects the rights of any Noteholder; or (vii) disproportionately and adversely affect any of the Noteholders of the then outstanding Subordinated Notes. Notwithstanding the foregoing, the Company may amend or supplement the Subordinated Notes without the consent of the Noteholders to cure any ambiguity, defect or inconsistency or to provide for uncertificated Subordinated Notes in addition to or in place of certificated Subordinated Notes, or to make any change that does not adversely affect the rights of any Noteholder of any of the Subordinated Notes. No failure to exercise or delay in exercising, by any Noteholder of the Subordinated Notes, of any right, power or privilege hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of any right, power or privilege preclude any other or further exercise thereof, or the exercise of any other right or remedy provided by law, except as restricted hereby. The rights and remedies provided in this Subordinated Note are cumulative and not exclusive of any right or remedy provided by law or equity. No notice or demand on the Company in any case shall, in itself, entitle the Company to any other or further notice or demand in similar or other circumstances or constitute a waiver of the rights of the Noteholders to any other or further action in any circumstances without notice or demand. No consent or waiver, expressed or implied, by the Noteholders to or of any breach or default by the Company in the performance of its obligations hereunder shall be deemed or construed to be a consent or waiver to or of any other breach or default in the performance of the same or any other obligations of the Company hereunder. Failure on the part of the Noteholders to complain of any acts or failure to act or to

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declare an Event of Default, irrespective of how long such failure continues, shall not constitute a waiver by the Noteholders of their rights hereunder or impair any rights, powers or remedies on account of any breach or default by the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**18.&nbsp;&nbsp;&nbsp;&nbsp;<u>Absolute and Unconditional Obligation of the Company</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(a)**&nbsp;&nbsp;&nbsp;&nbsp;No provisions of this Subordinated Note shall alter or impair the obligation of the Company, which is absolute and unconditional, to pay the principal and interest on this Subordinated Note at the times, places and rate, and in the coin or currency, herein prescribed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(b)**&nbsp;&nbsp;&nbsp;&nbsp;No delay or omission of the Noteholder to exercise any right or remedy accruing upon any Event of Default shall impair such right or remedy or constitute a waiver of any such Event of Default or an acquiescence therein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**19.&nbsp;&nbsp;&nbsp;&nbsp;<u>Successors and Assigns</u>**. This Subordinated Note shall be binding upon the Company and inure to the benefit of the Noteholder and its respective successors and permitted assigns. The Noteholder may assign all, or any part of, or any interest in, the Noteholder's rights and benefits hereunder. To the extent of any such assignment, such assignee shall have the same rights and benefits against the Company and shall agree to be bound by and to comply with the terms and conditions of the Purchase Agreement as it would have had if it were the Noteholder hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**20.&nbsp;&nbsp;&nbsp;&nbsp;<u>No Sinking Fund; Convertibility</u>**. This Subordinated Note is not entitled to the benefit of any sinking fund. This Subordinated Note is not convertible into or exchangeable for any of the equity securities, other securities or assets of the Company or any subsidiary of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**21.&nbsp;&nbsp;&nbsp;&nbsp;<u>No Recourse Against Others</u>**. No recourse under or upon any obligation, covenant or agreement contained in this Subordinated Note, or for any claim based thereon or otherwise in respect thereof, will be had against any past, present or future shareholder, employee, officer, or director, as such, of the Company or of any predecessor or successor, either directly or through the Company or any predecessor or successor, under any rule of law, statute or constitutional provision or by the enforcement of any assessment or by any legal or equitable proceeding or otherwise, all such liability being expressly waived and released by the acceptance of this Subordinated Note by the Noteholder and as part of the consideration for the issuance of this Subordinated Note.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**22.&nbsp;&nbsp;&nbsp;&nbsp;<u>Notices</u>**. All notices to the Company under this Subordinated Note shall be in writing and shall be delivered personally, or mailed, postage prepaid, by U.S. registered or certified mail, return receipt requested, or sent by a responsible overnight commercial courier promising next business day delivery, to the Company at 508 Main Street, Reinbeck, Iowa 50669, Attention: Sean Willett, or to such other address as the Company may provide to the Noteholders (the "<u>Payment Office</u>"). All notices to the Noteholders shall be in writing and shall be mailed, postage prepaid, by U.S. registered or certified mail, return receipt requested, or sent by email to each Noteholder at such Noteholder's address as set forth in the Security Register. Any notice given in accordance with the foregoing shall be deemed given when delivered personally or, if mailed, three (3) Business Days after it shall have been deposited in the U.S. mail as aforesaid or, if sent by overnight courier, the Business Day following the date of delivery to such courier (provided that next business day delivery was requested), or if emailed, upon confirmation of receipt.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**23.&nbsp;&nbsp;&nbsp;&nbsp;<u>Further Issues</u>**. The Company may, without the consent of the Noteholders of the Subordinated Notes, create and issue additional notes having the same terms and conditions of the Subordinated Notes (except for the Issue Date) so that such further notes shall be consolidated and form a single series with the Subordinated Notes.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**24.&nbsp;&nbsp;&nbsp;&nbsp;<u>Governing Law; Interpretation</u>**. THIS SUBORDINATED NOTE WILL BE DEEMED TO BE A CONTRACT MADE UNDER THE LAWS OF THE STATE OF NEW YORK AND WILL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK WITHOUT REGARD TO CONFLICT OF LAW PRINCIPLES THEREOF (OTHER THAN SECTION 5-1401 OF THE NEW YORK GENERAL OBLIGATIONS LAW). THIS SUBORDINATED NOTE IS INTENDED TO MEET THE CRITERIA FOR QUALIFICATION OF THE OUTSTANDING PRINCIPAL AS TIER 2 CAPITAL UNDER THE REGULATORY GUIDELINES OF THE FEDERAL RESERVE, AND THE TERMS HEREOF SHALL BE INTERPRETED IN A MANNER TO SATISFY SUCH INTENT.

*[Signature Page Follows]*

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IN WITNESS WHEREOF, the undersigned has caused this Subordinated Note to be duly executed and attested.

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| | |
|:---|:---|
| **LINCOLN BANCORP** | **LINCOLN BANCORP** |
| By: |  |
| Name: | Sean Willett |
| Title: | President and Chief Executive Officer |

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*[Signature Page to Subordinated Note]*

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**<u>PAYING AGENT CERTIFICATE OF AUTHENTICATION</u>**

This is one of the Subordinated Notes of Lincoln Bancorp referred to in the within- mentioned Subordinated Note Purchase Agreement. This Certificate of Authentication must accompany any Subordinated Note issued pursuant to the terms of said Subordinated Note Purchase Agreement in order to be validly issued thereunder.

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| | | |
|:---|:---|:---|
| **UMB BANK, N.A.** | **UMB BANK, N.A.** | **UMB BANK, N.A.** |
| as Paying Agent | as Paying Agent | as Paying Agent |
| By: |  |  |
|  | Name: | James Henry |
|  | Title: | Vice President |

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***[UMB Signature Page to Subordinated Note]***

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**ASSIGNMENT FORM**

To assign this Subordinated Note, fill in the form below: (I) or (we) assign and transfer this Subordinated Note to:

(Print or type assignee's name, address and zip code)

 <br> (Print or type assignee's social security or tax identification no.)

and irrevocably appoint <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u> as agent to transfer this Subordinated Note on the books of the Company. The agent may substitute another to act for it.

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| | | |
|:---|:---|:---|
| Date: | Your signature: | Your signature: |
| | | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Sign exactly as your name appears on |
| | | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;the face of this Subordinated Note) |
| | Tax identification no: | Tax identification no: |
| Signature guarantee: | Signature guarantee: | Signature guarantee: |

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*(Signatures must be guaranteed by an eligible guarantor institution (banks, stockbrokers, savings and loan associations and credit unions with membership in an approved signature guarantee medallion program), pursuant to Rule 17Ad-15 promulgated under the Securities Exchange Act of 1934, as amended (the "<u>Exchange Act</u>".))*

The undersigned certifies that it [is / is not] an Affiliate of the Company and that, to its knowledge, the proposed transferee [is / is not] an Affiliate of the Company.

In connection with any transfer or exchange of this Subordinated Note occurring prior to the date that is one year after the later of the date of original issuance of this Subordinated Note and the last date, if any, on which this Subordinated Note was owned by the Company or any Affiliate of the Company, the undersigned confirms that this Subordinated Note is being:

CHECK ONE BOX BELOW:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)acquired for the undersigned's own account, without transfer;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)transferred to the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3)transferred in accordance and in compliance with Rule 144A under the Securities Act of 1933, as amended (the "<u>Securities Act</u>");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4)transferred under an effective registration statement under the Securities Act;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5)transferred in accordance with and in compliance with Regulation S under the Securities Act;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6)transferred to an institutional "accredited investor" (as defined in Rule 501(a)(1), (2), (3) or (7) under the Securities Act);

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(7)transferred to an "accredited investor" (as defined in Rule 501(a)(4) under the Securities Act), not referred to in item (6) that has been provided with the information designated under Section 4(d) of the Securities Act; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(8)transferred in accordance with another available exemption from the registration requirements of the Securities Act.

Unless one of the boxes is checked, the Company will refuse to register this Subordinated Note in the name of any Person other than the registered holder thereof; *provided*, *however*, that if box (5), (6), (7) or (8) is checked, the Company may require, prior to registering any such transfer of this Subordinated Note, in its sole discretion, such legal opinions, certifications and other information as the Company may reasonably request to confirm that such transfer is being made pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act, such as the exemption provided by Rule 144 under the Securities Act.

 <u>Assignor's signature:</u>

<u>Signature guarantee:</u>

*(Signatures must be guaranteed by an eligible guarantor institution (banks, stockbrokers, savings and loan associations and credit unions with membership in an approved signature guarantee medallion program), pursuant to Exchange Act Rule 17Ad-l5).*

TO BE COMPLETED BY PURCHASER IF BOX (1) OR (3) ABOVE IS CHECKED:

The undersigned represents and warrants that it is purchasing this Subordinated Note for its own account or an account with respect to which it exercises sole investment discretion and that it and any such account is a "qualified institutional buyer" within the meaning of Rule 144A under the Securities Act and is aware that the sale to it is being made in reliance on Rule 144A and acknowledges that it has received such information regarding the Company as the undersigned has requested pursuant to Rule 144A or has determined not to request such information and that it is aware that the transferor is relying upon the undersigned's foregoing representations in order to claim the exemption from registration provided by Rule 144A.

Date:  Assignee's signature: 

## Exhibit 4.3

**Exhibit 4.3**

**LINCOLN BANCORP**

**9.00% FIXED-TO-FLOATING RATE SUBORDINATED NOTE DUE 2036**

THE INDEBTEDNESS EVIDENCED BY THIS SUBORDINATED NOTE IS SUBORDINATED TO AND JUNIOR IN RIGHT OF PAYMENT TO SENIOR INDEBTEDNESS (AS DEFINED IN <u>SECTION 3</u> OF THIS SUBORDINATED NOTE) OF LINCOLN BANCORP (THE "<u>COMPANY</u>"), INCLUDING OBLIGATIONS OF THE COMPANY TO ITS GENERAL CREDITORS AND SECURED CREDITORS (OTHER THAN OBLIGATIONS TO TRADE CREDITORS INCURRED BY THE COMPANY IN THE COMPANY'S ORDINARY COURSE OF BUSINESS), AND IS UNSECURED. IT IS INELIGIBLE AS COLLATERAL FOR ANY EXTENSION OF CREDIT BY THE COMPANY OR ANY OF ITS SUBSIDIARIES. IN THE EVENT OF LIQUIDATION ALL HOLDERS OF SENIOR INDEBTEDNESS OF THE COMPANY SHALL BE ENTITLED TO BE PAID IN FULL WITH SUCH INTEREST AS MAY BE PROVIDED BY LAW BEFORE ANY PAYMENT SHALL BE MADE ON ACCOUNT OF PRINCIPAL OF OR INTEREST ON THIS SUBORDINATED NOTE. AFTER PAYMENT IN FULL OF ALL SUMS OWING TO SUCH HOLDERS OF SENIOR INDEBTEDNESS, THE HOLDER OF THIS SUBORDINATED NOTE, TOGETHER WITH THE HOLDERS OF ANY OBLIGATIONS OF THE COMPANY RANKING ON A PARITY WITH THE SUBORDINATED NOTES, SHALL BE ENTITLED TO BE PAID FROM THE REMAINING ASSETS OF THE COMPANY THE UNPAID PRINCIPAL AMOUNT OF THIS SUBORDINATED NOTE PLUS ACCRUED AND UNPAID INTEREST THEREON BEFORE ANY PAYMENT OR OTHER DISTRIBUTION, WHETHER IN CASH, PROPERTY OR OTHERWISE, SHALL BE MADE (I) WITH RESPECT TO ANY OBLIGATION THAT BY ITS TERMS EXPRESSLY IS JUNIOR IN THE RIGHT OF PAYMENT TO THE SUBORDINATED NOTES, (II) WITH RESPECT TO ANY INDEBTEDNESS BETWEEN THE COMPANY AND ANY OF ITS SUBSIDIARIES OR AFFILIATES, OR (III) ON ACCOUNT OF ANY SHARES OF CAPITAL STOCK OF THE COMPANY.

THE INDEBTEDNESS EVIDENCED BY THIS SUBORDINATED NOTE IS NOT A DEPOSIT AND IS NOT INSURED BY THE FEDERAL DEPOSIT INSURANCE CORPORATION OR ANY OTHER GOVERNMENT AGENCY OR FUND.

THE COMPANY MAY REQUIRE PRIOR WRITTEN CONSENT OF THE BOARD OF GOVERNORS OF THE FEDERAL RESERVE IN ORDER TO PREPAY ANY PART OF THE PRINICIPAL OF THIS SUBORDINATED NOTE.

THIS SUBORDINATED NOTE WILL BE ISSUED AND MAY BE TRANSFERRED ONLY IN MINIMUM DENOMINATIONS OF $100,000 AND MULTIPLES OF $1,000 IN EXCESS THEREOF. ANY ATTEMPTED TRANSFER OF THIS SUBORDINATED NOTE IN A DENOMINATION OF LESS THAN $100,000 SHALL BE DEEMED TO BE VOID AND OF NO LEGAL EFFECT WHATSOEVER. ANY SUCH PURPORTED TRANSFEREE SHALL BE DEEMED NOT TO BE THE HOLDER OF THIS SUBORDINATED NOTE FOR ANY PURPOSE, INCLUDING, BUT NOT LIMITED TO, THE RECEIPT OF PAYMENTS ON THIS SUBORDINATED NOTE, AND SUCH PURPORTED TRANSFEREE SHALL BE DEEMED TO HAVE NO INTEREST WHATSOEVER IN THIS SUBORDINATED NOTE.

THIS SUBORDINATED NOTE MAY BE SOLD ONLY IN COMPLIANCE WITH APPLICABLE FEDERAL AND STATE SECURITIES LAWS. THIS SUBORDINATED NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "<u>SECURITIES</u> <u>ACT</u>"), OR ANY APPLICABLE STATE SECURITIES LAWS, OR ANY OTHER APPLICABLE SECURITIES LAWS. NEITHER THIS SUBORDINATED NOTE NOR ANY INTEREST OR PARTICIPATION HEREIN MAY BE REOFFERED, SOLD, ASSIGNED, TRANSFERRED, PLEDGED, ENCUMBERED OR OTHERWISE DISPOSED OF IN THE ABSENCE OF SUCH REGISTRATION OR UNLESS SUCH

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TRANSACTION IS EXEMPT FROM, OR NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND STATE SECURITIES LAWS.

**CERTAIN ERISA CONSIDERATIONS:**

THE HOLDER OF THIS SUBORDINATED NOTE, OR ANY INTEREST HEREIN, BY ITS ACCEPTANCE HEREOF OR THEREOF AGREES, REPRESENTS AND WARRANTS THAT IT IS NOT AN EMPLOYEE BENEFIT PLAN, INDIVIDUAL RETIREMENT ACCOUNT OR OTHER PLAN OR ARRANGEMENT SUBJECT TO TITLE I OF THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED ("<u>ERISA</u>"), OR SECTION 4975 OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE "<u>CODE</u>") (EACH, A "<u>PLAN</u>"), OR AN ENTITY WHOSE UNDERLYING ASSETS INCLUDE "PLAN ASSETS" BY REASON OF ANY PLAN'S INVESTMENT IN THE ENTITY, AND NO PERSON INVESTING "PLAN ASSETS" OF ANY PLAN MAY ACQUIRE OR HOLD THIS SUBORDINATED NOTE OR ANY INTEREST HEREIN, UNLESS SUCH PURCHASER OR HOLDER IS ELIGIBLE FOR THE EXEMPTIVE RELIEF AVAILABLE UNDER U.S. DEPARTMENT OF LABOR PROHIBITED TRANSACTION CLASS EXEMPTION 96-23, 95-60, 91-38, 90-1 OR 84-14 OR ANOTHER APPLICABLE EXEMPTION OR ITS PURCHASE AND HOLDING OF THIS SUBORDINATED NOTE, OR ANY INTEREST HEREIN, ARE NOT PROHIBITED BY SECTION 406 OF ERISA OR SECTION 4975 OF THE CODE WITH RESPECT TO SUCH PURCHASE AND HOLDING. ANY PURCHASER OR HOLDER OF THIS SUBORDINATED NOTE OR ANY INTEREST HEREIN WILL BE DEEMED TO HAVE REPRESENTED BY ITS PURCHASE AND HOLDING THEREOF THAT EITHER: (I) IT IS NOT AN EMPLOYEE BENEFIT PLAN OR OTHER PLAN TO WHICH TITLE I OF ERISA OR SECTION 4975 OF THE CODE IS APPLICABLE, A TRUSTEE OR OTHER PERSON ACTING ON BEHALF OF ANY SUCH EMPLOYEE BENEFIT PLAN OR OTHER PLAN, OR ANY OTHER PERSON OR ENTITY USING THE "PLAN ASSETS" OF ANY SUCH EMPLOYEE BENEFIT PLAN OR OTHER PLAN TO FINANCE SUCH PURCHASE OR (II) SUCH PURCHASE OR HOLDING WILL NOT RESULT IN A PROHIBITED TRANSACTION UNDER SECTION 406 OF ERISA OR SECTION 4975 OF THE CODE FOR WHICH FULL EXEMPTIVE RELIEF IS NOT AVAILABLE UNDER APPLICABLE STATUTORY OR ADMINISTRATIVE EXEMPTION.

**ANY FIDUCIARY OF ANY PLAN WHO IS CONSIDERING THE ACQUISITION OF THIS SUBORDINATED NOTE OR ANY INTEREST HEREIN SHOULD CONSULT WITH HIS OR HER LEGAL COUNSEL PRIOR TO ACQUIRING THIS SUBORDINATED NOTE OR ANY INTEREST HEREIN.**

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No.: CUSIP (Accredited Investors):

**LINCOLN BANCORP**

**9.00% FIXED-TO-FLOATING RATE SUBORDINATED NOTE DUE 2036**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.**&nbsp;&nbsp;&nbsp;&nbsp;**<u>Subordinated Notes</u>**. This Subordinated Note is one of a duly authorized issue of notes of Lincoln Bancorp, an Iowa corporation and a bank holding company (the "<u>Company</u>"), designated as the "9.00% Fixed-to-Floating Rate Subordinated Notes due 2036" (the "<u>Subordinated Notes</u>") issued pursuant to those Subordinated Note Purchase Agreements, dated as of the Issue Date (as defined herein), between the Company and the several purchasers of the Subordinated Notes identified on the signature pages thereto (each, a "<u>Purchase Agreement</u>" and collectively, the "<u>Purchase Agreements</u>").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.&nbsp;&nbsp;&nbsp;&nbsp;<u>Payment</u>**. The Company, for value received, promises to pay to [&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ], the principal sum of [&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ] (U.S.) ($[ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ]), plus accrued but unpaid interest on January 15, 2036 ("<u>Maturity Date</u>") and to pay interest thereon (i) from and including the Issue Date (as defined below) of the Subordinated Notes to but excluding January 15, 2031 or the earlier redemption date contemplated by <u>Section 4</u> of this Subordinated Note at the rate of 9.00% per annum, computed on the basis of a 360-day year consisting of twelve 30-day months and payable semi-annually in arrears on January 15, and July 15 of each year (each, a "<u>Fixed Rate Interest Payment Date</u>"), beginning July 15, 2026, and (ii) from and including January 15, 2031 to but excluding the Maturity Date or the earlier redemption date contemplated by <u>Section 4</u> of this Subordinated Note, at the rate per annum, reset quarterly, equal to the Floating Interest Rate (as defined below) determined on the Floating Interest Determination Date (as defined below) of the applicable interest period plus 536 basis points, computed on the basis of a 360-day year and the actual number of days elapsed and payable quarterly in arrears on January 15, April 15, July 15 and October 15 (each quarterly period, a "<u>Floating Rate Period</u>") of each year (each, a "<u>Floating Rate Interest Payment Date</u>"). In the event that the Floating Interest Rate for the Floating Rate Period is less than zero, the Floating Interest Rate for such Floating Rate Period shall be deemed to be zero. Dollar amounts resulting from this calculation shall be rounded to the nearest cent, with one-half cent being rounded up. The term "<u>Floating Interest Determination Date</u>" means the date upon which the Floating Interest Rate is determined by the Calculation Agent (as defined below) pursuant to the Three-Month Term SOFR Conventions (as defined below). Any payment of principal of or interest on this Subordinated Note that would otherwise become due and payable on a day which is not a Business Day shall become due and payable on the next succeeding Business Day, with the same force and effect as if made on the date for payment of such principal or interest, and no interest will accrue in respect of such payment for the period after such day; provided, that in the event that any scheduled Floating Rate Interest Payment Date falls on a day that is not a Business Day and the next succeeding Business Day falls in the next succeeding calendar month, such Floating Rate Interest Payment Date will be accelerated to the immediately preceding Business Day, and, in each such case, the amounts payable on such Business Day will include interest accrued to, but excluding, such Business Day.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(a)**&nbsp;&nbsp;&nbsp;&nbsp;The Company shall take such actions as are necessary to ensure that from the commencement of the Floating Rate Period for so long as any of the Subordinated Notes remain outstanding there will at all times be a Calculation Agent appointed to calculate the Floating Interest Rate in respect of each Floating Rate Period. The calculation of the Floating Interest Rate for each applicable Floating Rate Period by the Calculation Agent will (in the absence of manifest error) be final and binding. The Calculation Agent's determination of any interest rate and its calculation of interest payments for any period will be maintained on file at the Calculation Agent's principal offices and, will be made available to any Noteholder (as defined below) upon request. The Calculation Agent may be removed by the Company at any time. If the Calculation Agent is unable or unwilling to act as Calculation Agent or is removed by the Company, the Company will promptly appoint a replacement Calculation Agent. The Calculation Agent

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may not resign its duties without a successor having been duly appointed; provided, that if a successor Calculation Agent has not been appointed by the Company and such successor accepted such position within thirty (30) calendar days after the giving of notice of resignation by the Calculation Agent, then the resigning Calculation Agent may petition, at the expense of the Company, any court of competent jurisdiction for the appointment of a successor Calculation Agent with respect to such series. For the avoidance of doubt, if at any time there is no Calculation Agent appointed by the Company, then the Company shall be the Calculation Agent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(b)**&nbsp;&nbsp;&nbsp;&nbsp;An "<u>Interest Payment Date</u>" is either a Fixed Rate Interest Payment Date or a Floating Rate Interest Payment Date, as applicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(c)**&nbsp;&nbsp;&nbsp;&nbsp;The "<u>Floating Interest Rate</u>" means:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(i)**&nbsp;&nbsp;&nbsp;&nbsp;initially Three-Month Term SOFR (as defined below).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(ii)**&nbsp;&nbsp;&nbsp;&nbsp;Notwithstanding the foregoing <u>clause (i)</u> of this <u>Section 2(c)</u>:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(A)**&nbsp;&nbsp;&nbsp;&nbsp;If the Calculation Agent determines prior to the relevant Floating Interest Determination Date that a Benchmark Transition Event and its related Benchmark Replacement Date (each of such terms as defined below) have occurred with respect to Three-Month Term SOFR, then the Company shall promptly provide notice of such determination to the Noteholders and <u>Section 2(d)</u> will thereafter apply to all determinations, calculations and quotations made or obtained for the purposes of calculating the Floating Interest Rate payable on the Subordinated Notes during a relevant Floating Rate Period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(B)**&nbsp;&nbsp;&nbsp;&nbsp;However, if the Calculation Agent determines that a Benchmark Transition Event and its related Benchmark Replacement Date have occurred with respect to Three-Month Term SOFR, but for any reason the Benchmark Replacement has not been determined as of the relevant Floating Interest Determination Date, the Floating Interest Rate for the applicable Floating Rate Period will be equal to the Floating Interest Rate on the last Floating Interest Determination Date for the Subordinated Notes, as determined by the Calculation Agent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(d)**&nbsp;&nbsp;&nbsp;&nbsp;<u>Effect of Benchmark Transition Event</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(i)**&nbsp;&nbsp;&nbsp;&nbsp;If the Calculation Agent determines that a Benchmark Transition Event and its related Benchmark Replacement Date have occurred prior to the Reference Time (as defined below) in respect of any determination of the Benchmark (as defined below) on any date, the Benchmark Replacement will replace the then-current Benchmark for all purposes relating to the Subordinated Notes during the relevant Floating Rate Period in respect of such determination on such date and all determinations on all subsequent dates.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(ii)**&nbsp;&nbsp;&nbsp;&nbsp;In connection with the implementation of a Benchmark Replacement, the Calculation Agent will have the right to make Benchmark Replacement Conforming Changes from time to time and such changes shall become effective without consent from the Noteholders or any other party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(iii)**&nbsp;&nbsp;&nbsp;&nbsp;The Calculation Agent is expressly authorized to make certain determinations, decisions and elections under the Subordinated Notes, including with respect to the use of Three-Month Term SOFR as the Benchmark under this <u>Section 2(d)</u>. Any determination, decision or election that may be made by the Calculation Agent pursuant to the benchmark transition provisions set forth herein, including any determination with respect to a tenor, rate or adjustment or of the occurrence or non-

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occurrence of an event, circumstance or date, and any decision to take or refrain from taking any action or any selection:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(A)**&nbsp;&nbsp;&nbsp;&nbsp;will be conclusive and binding absent manifest error;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(B)**&nbsp;&nbsp;&nbsp;&nbsp;if made by the Company as the Calculation Agent, will be made in the Company's sole discretion;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(C)**&nbsp;&nbsp;&nbsp;&nbsp;if made by the Calculation Agent other than the Company, will be made after consultation with the Company, and the Calculation Agent will not make any such determination, decision or election to which the Company reasonably objects; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(D)**&nbsp;&nbsp;&nbsp;&nbsp;notwithstanding anything to the contrary in this Subordinated Note or the Purchase Agreement, shall become effective without consent from the Noteholders or any other party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(iv)**&nbsp;&nbsp;&nbsp;&nbsp;If the Calculation Agent fails to make any determination, decision or election that it is required to make under the terms of the Subordinated Notes, then the Company will make such determination, decision or election on the same basis as described above.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(v)**&nbsp;&nbsp;&nbsp;&nbsp;For the avoidance of doubt, after a Benchmark Transition Event and its related Benchmark Replacement Date have occurred, interest payable on this Subordinated Note for the Floating Rate Period will be an annual rate equal to the sum of the applicable Benchmark Replacement and the spread specified on the face hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(vi)**&nbsp;&nbsp;&nbsp;&nbsp;If the then-current Benchmark is Three-Month Term SOFR, the Calculation Agent will have the right to establish the Three-Month Term SOFR Conventions, and if any of the foregoing provisions concerning the calculation of the interest rate and the payment of interest during the Floating Rate Period are inconsistent with any of the Three-Month Term SOFR Conventions determined by the Calculation Agent, then the relevant Three-Month Term SOFR Conventions will apply.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(vii)**&nbsp;&nbsp;&nbsp;&nbsp;As used in this Subordinated Note:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(A)**&nbsp;&nbsp;&nbsp;&nbsp;"<u>Benchmark</u>" means, initially, Three-Month Term SOFR; provided that if the Calculation Agent determines on or prior to the Reference Time that a Benchmark Transition Event and its related Benchmark Replacement Date have occurred with respect to Three-Month Term SOFR or the then-current Benchmark, then "Benchmark" means the applicable Benchmark Replacement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(B)**&nbsp;&nbsp;&nbsp;&nbsp;"<u>Benchmark Replacement</u>" means the Interpolated Benchmark with respect to the then-current Benchmark, plus the Benchmark Replacement Adjustment for such Benchmark; provided that if (a) the Calculation Agent cannot determine the Interpolated Benchmark as of the Benchmark Replacement Date or (b) the then-current Benchmark is Three-Month Term SOFR and a Benchmark Transition Event and its related Benchmark Replacement Date have occurred with respect to Three-Month Term SOFR (in which event no Interpolated Benchmark with respect to Three-Month Term SOFR shall be determined), then "<u>Benchmark Replacement</u>" means the first alternative set forth in the order below that can be determined by the Calculation Agent as of the Benchmark Replacement Date:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)&nbsp;&nbsp;&nbsp;&nbsp;the sum of: (i) Compounded SOFR and (ii) the Benchmark Replacement Adjustment;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)&nbsp;&nbsp;&nbsp;&nbsp;the sum of: (i) the alternate rate of interest that has been selected or recommended by the Relevant Governmental Body as the replacement for the then- current Benchmark for the applicable Corresponding Tenor and (ii) the Benchmark Replacement Adjustment;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3)&nbsp;&nbsp;&nbsp;&nbsp;the sum of: (i) the ISDA Fallback Rate and (ii) the Benchmark Replacement Adjustment;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4)&nbsp;&nbsp;&nbsp;&nbsp;the sum of: (i) the alternate rate of interest that has been selected by the Calculation Agent as the replacement for the then-current Benchmark for the applicable Corresponding Tenor giving due consideration to any industry-accepted rate of interest as a replacement for the then-current Benchmark for U.S. dollar denominated floating rate notes at such time and (ii) the Benchmark Replacement Adjustment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(C)**&nbsp;&nbsp;&nbsp;&nbsp;"<u>Benchmark Replacement Adjustment</u>" means the first alternative set forth in the order below that can be determined by the Calculation Agent as of the Benchmark Replacement Date:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)&nbsp;&nbsp;&nbsp;&nbsp;the spread adjustment, or method for calculating or determining such spread adjustment, (which may be a positive or negative value or zero) that has been selected or recommended by the Relevant Governmental Body for the applicable Unadjusted Benchmark Replacement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)&nbsp;&nbsp;&nbsp;&nbsp;if the applicable Unadjusted Benchmark Replacement is equivalent to the ISDA Fallback Rate, then the ISDA Fallback Adjustment;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3)&nbsp;&nbsp;&nbsp;&nbsp;the spread adjustment (which may be a positive or negative value or zero) that has been selected by the Calculation Agent giving due consideration to any industry-accepted spread adjustment, or method for calculating or determining such spread adjustment, for the replacement of the then-current Benchmark with the applicable Unadjusted Benchmark Replacement for U.S. dollar denominated floating rate notes at such time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(D)**&nbsp;&nbsp;&nbsp;&nbsp;"<u>Benchmark Replacement Conforming Changes</u>" means, with respect to any Benchmark Replacement, any technical, administrative or operational changes (including changes to the definition of "Floating Rate Period," timing and frequency of determining rates with respect to each Floating Rate Period and making payments of interest, rounding of amounts or tenors, and other administrative matters) that the Calculation Agent decides may be appropriate to reflect the adoption of such Benchmark Replacement in a manner substantially consistent with market practice (or, if the Calculation Agent decides that adoption of any portion of such market practice is not administratively feasible or if the Calculation Agent determines that no market practice for use of the Benchmark Replacement exists, in such other manner as the Calculation Agent determines is reasonably necessary).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(E)**&nbsp;&nbsp;&nbsp;&nbsp;"<u>Benchmark Replacement Date</u>" means the earliest to occur of the following events with respect to the then-current Benchmark:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)&nbsp;&nbsp;&nbsp;&nbsp;in the case of <u>clause (1)</u> of the definition of "Benchmark Transition Event," the relevant Reference Time in respect of any determination; or

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)&nbsp;&nbsp;&nbsp;&nbsp;in the case of <u>clause (2)</u> or clause <u>(3)</u> of the definition of "Benchmark Transition Event," the later of (i) the date of the public statement or publication of information referenced therein and (ii) the date on which the administrator of the Benchmark permanently or indefinitely ceases to provide the Benchmark; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3)&nbsp;&nbsp;&nbsp;&nbsp;in the case of <u>clause (4)</u> of the definition of "Benchmark Transition Event," the date of the public statement or publication of information referenced therein.

For the avoidance of doubt, for purposes of the definitions of Benchmark Replacement Date and Benchmark Transition Event, references to the Benchmark also include any reference rate underlying the Benchmark (for example, if the Benchmark becomes Compounded SOFR, references to the Benchmark would include SOFR).

For the avoidance of doubt, if the event giving rise to the Benchmark Replacement Date occurs on the same day as, but earlier than, the Reference Time in respect of any determination, the Benchmark Replacement Date will be deemed to have occurred prior to the Reference Time for such determination.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(F)**&nbsp;&nbsp;&nbsp;&nbsp;"<u>Benchmark Transition Event</u>" means the occurrence of one or more of the following events with respect to the then-current Benchmark:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)&nbsp;&nbsp;&nbsp;&nbsp;if the Benchmark is Three-Month Term SOFR, (i) the Relevant Governmental Body has not selected or recommended a forward-looking term rate for a tenor of three months based on SOFR, (ii) the development of a forward-looking term rate for a tenor of three months based on SOFR that has been recommended or selected by the Relevant Governmental Body is not complete or (iii) the Company determines that the use of a forward-looking rate for a tenor of three months based on SOFR is not administratively feasible;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)&nbsp;&nbsp;&nbsp;&nbsp;a public statement or publication of information by or on behalf of the administrator of the Benchmark announcing that such administrator has ceased or will cease to provide the Benchmark, permanently or indefinitely, provided that, at the time of such statement or publication, there is no successor administrator that will continue to provide the Benchmark;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3)&nbsp;&nbsp;&nbsp;&nbsp;a public statement or publication of information by the regulatory supervisor for the administrator of the Benchmark, the central bank for the currency of the Benchmark, an insolvency official with jurisdiction over the administrator for the Benchmark, a resolution authority with jurisdiction over the administrator for the Benchmark or a court or an entity with similar insolvency or resolution authority over the administrator for the Benchmark, which states that the administrator of the Benchmark has ceased or will cease to provide the Benchmark permanently or indefinitely, provided that, at the time of such statement or publication, there is no successor administrator that will continue to provide the Benchmark; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4)&nbsp;&nbsp;&nbsp;&nbsp;a public statement or publication of information by the regulatory supervisor for the administrator of the Benchmark announcing that the Benchmark is no longer representative.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(G)**&nbsp;&nbsp;&nbsp;&nbsp;"<u>Business Day</u>" means any day that is not a Saturday or Sunday and that is not a day on which banks in the State of Iowa are generally authorized or required by law or executive order to be closed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(H)**&nbsp;&nbsp;&nbsp;&nbsp;"<u>Calculation Agent</u>" means the agent (which may be the Company or an affiliate of the Company) as may be appointed by the Company to act as Calculation Agent for the Subordinated Notes prior to the commencement of the Floating Rate Period to act in accordance with <u>Section 2</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(I)**&nbsp;&nbsp;&nbsp;&nbsp;"<u>Compounded SOFR</u>" means the compounded average of SOFRs for the applicable Corresponding Tenor, with the rate, or methodology for this rate, and conventions for this rate being established by the Calculation Agent in accordance with:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)&nbsp;&nbsp;&nbsp;&nbsp;the rate, or methodology for this rate and conventions for this rate selected or recommended by the Relevant Governmental Body for determining Compounded SOFR; provided that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)&nbsp;&nbsp;&nbsp;&nbsp;if, and to the extent that, the Calculation Agent determines that Compounded SOFR cannot be determined in accordance with <u>clause (1)</u> above, then the rate, or methodology for this rate, and conventions for this rate that have been selected by the Calculation Agent giving due consideration to any industry-accepted market practice for U.S. dollar denominated floating rate notes at such time.

For the avoidance of doubt, the calculation of Compounded SOFR will exclude the Benchmark Replacement Adjustment and the spread of 536 basis points per annum.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(J)**&nbsp;&nbsp;&nbsp;&nbsp;"<u>Corresponding Tenor</u>" with respect to a Benchmark Replacement means a tenor (including overnight) having approximately the same length (disregarding Business Day adjustment) as the applicable tenor for the then-current Benchmark.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(K)**&nbsp;&nbsp;&nbsp;&nbsp;"<u>FRBNY</u>" means the Federal Reserve Bank of New York.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(L)**&nbsp;&nbsp;&nbsp;&nbsp;"<u>FRBNY's Website</u>" means the website of the FRBNY at http://www.newyorkfed.org, or any successor source.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(M)**&nbsp;&nbsp;&nbsp;&nbsp;"<u>Interpolated Benchmark</u>" with respect to the Benchmark means the rate determined for the Corresponding Tenor by interpolating on a linear basis between: (1) the Benchmark for the longest period (for which the Benchmark is available) that is shorter than the Corresponding Tenor and (2) the Benchmark for the shortest period (for which the Benchmark is available) that is longer than the Corresponding Tenor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(N)**&nbsp;&nbsp;&nbsp;&nbsp;"<u>ISDA</u>" means the International Swaps and Derivatives Association, Inc. or any successor thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(O)**&nbsp;&nbsp;&nbsp;&nbsp;"<u>ISDA Definitions</u>" means the 2006 ISDA Definitions published by the ISDA or any successor thereto, as amended or supplemented from time to time, or any successor definitional booklet for interest rate derivatives published from time to time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(P)**&nbsp;&nbsp;&nbsp;&nbsp;"<u>ISDA Fallback Adjustment</u>" means the spread adjustment (which may be a positive or negative value or zero) that would apply for derivatives transactions referencing the

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ISDA Definitions to be determined upon the occurrence of an index cessation event with respect to the Benchmark for the applicable tenor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(Q)**&nbsp;&nbsp;&nbsp;&nbsp;"<u>ISDA Fallback Rate</u>" means the rate that would apply for derivatives transactions referencing the ISDA Definitions to be effective upon the occurrence of an index cessation date with respect to the Benchmark for the applicable tenor excluding the applicable ISDA Fallback Adjustment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(R)**&nbsp;&nbsp;&nbsp;&nbsp;"<u>Reference Time</u>" with respect to any determination of the Benchmark means (a) if the Benchmark is Three-Month Term SOFR, the time determined by the Calculation Agent after giving effect to the Three-Month Term SOFR Conventions, and (b) if the Benchmark is not Three-Month Term SOFR, the time determined by the Calculation Agent after giving effect to the Benchmark Replacement Conforming Changes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(S)**&nbsp;&nbsp;&nbsp;&nbsp;"<u>Relevant Governmental Body</u>" means the Board of Governors of the Federal Reserve System (the "<u>Federal Reserve</u>") and/or the FRBNY, or a committee officially endorsed or convened by the Federal Reserve and/or the FRBNY or any successor thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(T)**&nbsp;&nbsp;&nbsp;&nbsp;"<u>SOFR</u>" means the daily Secured Overnight Financing Rate published by the FRBNY, as the administrator of the Benchmark (or a successor administrator), on the FRBNY's Website (or such successor's website).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(U)**&nbsp;&nbsp;&nbsp;&nbsp;"<u>Term SOFR</u>" means the forward-looking term rate for the applicable Corresponding Tenor based on SOFR that as published by the Term SOFR Administrator.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(V)**&nbsp;&nbsp;&nbsp;&nbsp;"<u>Term SOFR Administrator</u>" means CME Group Benchmark Administration Limited (CBA) (or a successor administrator of Three-Month Term SOFR selected by the Calculation Agent in its reasonable discretion).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(W)**&nbsp;&nbsp;&nbsp;&nbsp;"<u>Three-Month Term SOFR</u>" means the rate for Term SOFR for a tenor of three months that is published by the Term SOFR Administrator at the Reference Time for any Floating Rate Period, as determined by the Calculation Agent after giving effect to the Three-Month Term SOFR Conventions, provided, however, that in the event that Three-Month Term SOFR is less than zero, Three Month Term SOFR shall be deemed to be zero. All percentages used in or resulting from any calculation of Three-Month Term SOFR shall be rounded, if necessary, to the nearest one-hundred-thousandth of a percentage point, with 0.000005% rounded up to 0.00001%.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(X)**&nbsp;&nbsp;&nbsp;&nbsp;"<u>Three-Month Term SOFR Conventions</u>" means any determination, decision or election with respect to any technical, administrative or operational matter (including with respect to the manner and timing of the publication of Three-Month Term SOFR, or changes to the definition of "Floating Rate Period," timing and frequency of determining Three-Month Term SOFR with respect to each Floating Rate Period and making payments of interest, rounding of amounts or tenors, and other administrative matters) that the Calculation Agent decides may be appropriate to reflect the use of Three-Month Term SOFR as the Benchmark in a manner substantially consistent with market practice (or, if the Calculation Agent decides that adoption of any portion of such market practice is not administratively feasible or if the Calculation Agent determines that no market practice for the use of Three-Month Term SOFR exists, in such other manner as the Calculation Agent determines is reasonably necessary).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(Y)&nbsp;&nbsp;&nbsp;&nbsp;**"<u>Unadjusted Benchmark Replacement</u>" means the Benchmark Replacement excluding the Benchmark Replacement Adjustment.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.&nbsp;&nbsp;&nbsp;&nbsp;<u>Subordination</u>.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(a)**&nbsp;&nbsp;&nbsp;&nbsp;The indebtedness of the Company evidenced by this Subordinated Note, including the principal and interest on this Subordinated Note, shall be subordinate and junior in right of payment to the prior payment in full of all existing claims of creditors of the Company and depositors of the Company's wholly owned subsidiary, Lincoln Savings Bank (the "<u>Bank</u>") whether now outstanding or subsequently created, assumed, guaranteed or incurred (collectively, "<u>Senior Indebtedness</u>"), which shall consist of principal of (and premium, if any) and interest, if any, on: (i) all indebtedness and obligations of, or guaranteed or assumed by, the Company for money borrowed, and any other liabilities for borrowed money whether or not evidenced by bonds, debentures, securities, notes or other similar instruments, and including, but not limited to, deposits of the Bank and all obligations to the Company's general creditors and secured creditors; (ii) any deferred obligations of the Company for the payment of the purchase price of property or assets acquired other than in the ordinary course of business; (iii) all obligations, contingent or otherwise, of the Company in respect of any letters of credit, bankers' acceptances, security purchase facilities and similar direct credit substitutes; (iv) any capital lease obligations of the Company; (v) all obligations of the Company in respect of interest rate swap, cap or other agreements, interest rate future or option contracts, currency swap agreements, currency future or option contracts, commodity contracts and other similar arrangements or derivative products; (vi) any obligation of the Company to its general creditors, as defined for purposes of the capital adequacy regulations of the Federal Reserve applicable to the Company, as the same may be amended or modified from time to time; (vii) all obligations that are similar to those in clauses (i) through (vi) of other Persons (as such term is defined in the Purchase Agreement) for the payment of which the Company is responsible or liable as obligor, guarantor or otherwise arising from an off-balance sheet guarantee; (viii) all obligations of the types referred to in clauses (i) through (vii) of other Persons secured by a lien on any property or asset of the Company, and (ix) in the case of clauses (i) through (viii) above, all amendments, renewals, extensions, modifications and refundings of such indebtedness and obligations; except "Senior Indebtedness" does not include (A) the Subordinated Notes, (B) any obligation that by its terms expressly is junior to, or ranks equally in right of payment with, the Subordinated Notes, (C) any existing subordinated notes as of the date of this issuance of this Subordinated Note, to which this Subordinated Note shall be pari passu, or (D) any indebtedness between the Company and any of its subsidiaries or Affiliates. This Subordinated Note is not secured by any assets of the Company or any subsidiary or Affiliate of the Company. The term "<u>Affiliate(s)</u>" means, with respect to any Person, such Person's immediate family members, partners, members or parent and subsidiary corporations, and any other Person directly or indirectly controlling, controlled by, or under common control with said Person and their respective Affiliates.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(b)**&nbsp;&nbsp;&nbsp;&nbsp;In the event of any liquidation of the Company, holders of Senior Indebtedness of the Company shall be entitled to be paid in full with such interest as may be provided by law before any payment shall be made on account of principal of or interest on this Subordinated Note. Additionally, in the event of any insolvency, dissolution, assignment for the benefit of creditors or any liquidation or winding up of or relating to the Company, whether voluntary or involuntary, holders of Senior Indebtedness shall be entitled to be paid in full before any payment shall be made on account of the principal of or interest on the Subordinated Notes, including this Subordinated Note. In the event of any such proceeding, after payment in full of all sums owing with respect to the Senior Indebtedness, the registered holders of the Subordinated Notes from time to time (each, a "<u>Noteholder</u>" and, collectively, the "<u>Noteholders</u>"), together with the holders of any obligations of the Company ranking on parity with the Subordinated Notes, shall be entitled to be paid from the remaining assets of the Company the unpaid principal thereof, and the unpaid interest thereon before any payment or other distribution, whether in cash, property or otherwise, shall be made (i) with respect to any obligation that by its terms expressly is junior to in the right of payment to the Subordinated Notes, (ii) with respect to any indebtedness between the Company and any of its subsidiaries or Affiliates, or (iii) on account of any capital stock.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(c)**&nbsp;&nbsp;&nbsp;&nbsp;If there shall have occurred and be continuing (i) a default in any payment with respect to any Senior Indebtedness or (ii) an event of default with respect to any Senior Indebtedness as a result of which the maturity thereof is accelerated, unless and until such payment default or event of default shall have been cured or waived or shall have ceased to exist, no payments shall be made by the Company with respect to the Subordinated Notes, notwithstanding the provisions of <u>Section 18</u> hereof. The provisions of this subsection shall not apply to any payment with respect to which <u>Section 3(b)</u> above would be applicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(d)**&nbsp;&nbsp;&nbsp;&nbsp;Nothing herein shall act to prohibit, limit or impede the Company from issuing additional debt of the Company having the same rank as the Subordinated Notes or which may be junior or senior in rank to the Subordinated Notes. Each Noteholder, by its acceptance hereof, agrees to and shall be bound by the provisions of this <u>Section 3</u>. Each Noteholder, by its acceptance hereof, further acknowledges and agrees that the foregoing subordination provisions are, and are intended to be, an inducement and a consideration for each holder of any Senior Indebtedness, whether such Senior Indebtedness was created or acquired before or after the issuance of the Subordinated Notes, to acquire and continue to hold, or to continue to hold, such Senior Indebtedness, and such holder of Senior Indebtedness shall be deemed conclusively to have relied on such subordination provisions in acquiring and continuing to hold or in continuing to hold such Senior Indebtedness.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.&nbsp;&nbsp;&nbsp;&nbsp;<u>Redemption</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(a)**&nbsp;&nbsp;&nbsp;&nbsp;**<u>Redemption Prior to Fifth Anniversary</u>**. This Subordinated Note shall not be redeemable by the Company, in whole or in part, prior to the fifth (5<sup>th</sup>) anniversary of the date upon which this Subordinated Note was originally issued (the "<u>Issue Date</u>"), except in the event of: (i) a Tier 2 Capital Event (as defined below), (ii) a Tax Event (as defined below) or (iii) an Investment Company Event (as defined below). Upon the occurrence of a Tier 2 Capital Event, a Tax Event or an Investment Company Event, subject to <u>Section 4(f)</u> below, the Company may redeem this Subordinated Note in whole, but not in part, at any time, upon giving not less than ten (10) calendar days' notice to the Noteholder at an amount equal to one hundred percent (100%) of the outstanding principal amount being redeemed plus accrued but unpaid interest, to but excluding the redemption date. "<u>Tier 2 Capital Event</u>" means the receipt by the Company of an opinion of counsel to the Company to the effect that there is more than an insubstantial risk that this Subordinated Note no longer qualifies as "Tier 2" capital (as defined by the Federal Reserve or its then equivalent) as a result of a change in law or regulation or in the interpretation or application of law or regulation by any judicial, legislative or regulatory authority that becomes effective after the Issue Date. "<u>Tax Event</u>" means the receipt by the Company of an opinion of counsel to the Company that as a result of any amendment to, or change (including any final and adopted (or enacted) prospective change) in, the laws (or any regulations thereunder) of the United States of America or any political subdivision or taxing authority thereof or therein, or as a result of any official administrative pronouncement or judicial decision interpreting or applying such laws or regulations, there is more than an insubstantial risk that interest payable by the Company on the Subordinated Notes is not, or within one hundred and twenty (120) calendar days after the receipt of such opinion will not be, deductible by the Company, in whole or in part, for U.S. federal income tax purposes. "<u>Investment</u> <u>Company Event</u>" means the receipt by the Company of an opinion of counsel to the Company to the effect that there is more than an insubstantial risk that the Company is or, within one hundred and twenty (120) calendar days after the receipt of such opinion will be, required to register as an investment company pursuant to the Investment Company Act of 1940, as amended.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(b)**&nbsp;&nbsp;&nbsp;&nbsp;**<u>Redemption on or after Fifth Anniversary</u>**. On or after the first Interest Payment Date after the fifth (5<sup>th</sup>) anniversary of the Issue Date, subject to <u>Section 4(f)</u> below, this Subordinated Note shall be redeemable at the option of and by the Company, in whole or in part, at any time and from time to time upon any Interest Payment Date, at an amount equal to one hundred percent (100%) of the outstanding

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principal amount being redeemed plus accrued but unpaid interest, to but excluding the redemption date. In the case of any redemption of this Subordinated Note pursuant to the first sentence of this <u>Section 4(b)</u>, the Company will give the Noteholder notice of redemption, which notice shall indicate the aggregate principal amount of Subordinated Notes to be redeemed, which amount must be an amount having an integral multiplier of $1,000, not less than thirty (30) nor more than forty-five (45) calendar days prior to the proposed redemption date. On or after the fifth (5<sup>th</sup>) anniversary of the Issue Date, the Company may redeem this Subordinated Note, in whole or in part, upon the occurrence of a Tier 2 Capital Event, Tax Event or an Investment Company Event, upon giving not less than ten (10) calendar days' notice to the Noteholder, which notice of redemption shall indicate the aggregate principal amount of Subordinated Notes to be redeemed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(c)**&nbsp;&nbsp;&nbsp;&nbsp;**<u>Partial Redemption</u>**. If less than the then outstanding principal amount of this Subordinated Note is redeemed, (i) a new Subordinated Note shall be issued representing the unredeemed portion without charge to the holder thereof and (ii) such redemption shall be effected on a pro rata basis as to the Noteholders, provided, however, that the Company may round the portion to be redeemed of this Subordinated Note up or down so that the unredeemed amount remains an authorized denomination hereunder, without any impact on the pro rata amount to be redeemed from other Noteholders (which will be provided to the Paying Agent and Registrar in writing). For purposes of clarity, upon a partial redemption, a like percentage of the principal amount of every Subordinated Note held by every Noteholder shall be redeemed; provided, however, that the Company may round the portion to be redeemed of this Subordinated Note up or down so that the unredeemed amount remains an authorized denomination hereunder, without any impact on the pro rata amount to be redeemed from other Noteholders (which will be provided to the Paying Agent and Registrar in writing). Such redemptions shall be made on a pro rata pass-through distribution of principal among all of the Subordinated Notes outstanding at the time thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(d)&nbsp;&nbsp;&nbsp;&nbsp;<u>No Redemption at Option of Noteholder</u>**. This Subordinated Note is not subject to redemption at the option of the Noteholder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(e)&nbsp;&nbsp;&nbsp;&nbsp;<u>Effectiveness of Redemption</u>**. If notice of redemption has been duly given and notwithstanding that this Subordinated Note has been called for redemption but has not yet been surrendered for cancellation, on and after the date fixed for redemption interest shall cease to accrue on the portion of this Subordinated Note called for redemption, this Subordinated Note shall no longer be deemed outstanding with respect to the portion called for redemption and all rights with respect to the portion of this Subordinated Note called for redemption shall forthwith on such date fixed for redemption cease and terminate unless the Company shall default in the payment of the redemption price, except only the right of the Noteholder to receive the amount payable on such redemption, without interest. For purposes of clarity, any redemption made pursuant to the terms of this Subordinated Note shall be made on a pro rata basis.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(f)&nbsp;&nbsp;&nbsp;&nbsp;<u>Regulatory Approvals</u>**. Any such redemption pursuant to this <u>Section 4</u> shall be subject to receipt of any and all required federal and state regulatory approvals or non-objections, including, but not limited to, the consent of the Federal Reserve.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(g)&nbsp;&nbsp;&nbsp;&nbsp;<u>Purchase and Resale of the Subordinated Notes</u>**. Subject to any required federal and state regulatory approvals or non-objections and the provisions of this Subordinated Note, the Company shall have the right to purchase any of the Subordinated Notes at any time in the open market, private transactions or otherwise. If the Company purchases any Subordinated Notes, it may, in its discretion, hold, resell or cancel any of the purchased Subordinated Notes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.&nbsp;&nbsp;&nbsp;&nbsp;<u>Reserved</u>**.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.&nbsp;&nbsp;&nbsp;&nbsp;<u>Events of Default; Acceleration</u>**. Each of the following events shall constitute an "<u>Event</u> <u>of Default</u>":

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(a)**&nbsp;&nbsp;&nbsp;&nbsp;the entry of a decree or order for relief in respect of the Company by a court having jurisdiction in the premises in an involuntary case or proceeding under any applicable bankruptcy, insolvency, or reorganization law, now or hereafter in effect of the United States of America or any political subdivision thereof, and such decree or order will have continued unstayed and in effect for a period of sixty (60) consecutive calendar days;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(b)**&nbsp;&nbsp;&nbsp;&nbsp;the commencement by the Company of a voluntary case under any applicable bankruptcy, insolvency or reorganization law, now or hereafter in effect of the United States of America or any political subdivision thereof, or the consent by the Company to the entry of a decree or order for relief in an involuntary case or proceeding under any such law;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(c)** (i) the appointment by a competent governmental agency having primary regulatory authority over any Major Constituent Bank (as such term is defined in the Purchase Agreement) under any applicable federal or state banking, insolvency or similar law now or hereafter in effect of a receiver of any such Major Constituent Bank or (ii) the entry of a decree or order in any case or proceeding under any applicable federal or state banking, insolvency or other similar law now or hereafter in effect appointing any receiver of any Major Constituent Bank;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(d)** the Company (i) becomes insolvent or is unable to pay its debts as they mature, (ii) makes an assignment for the benefit of creditors, (iii) admits in writing its inability to pay its debts as they mature, or (iv) ceases to be a bank holding company or financial holding company under the Bank Holding Company Act of 1956, as amended;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(e)** the failure of the Company to pay any installment of interest on any of the Subordinated Notes as and when the same will become due and payable, and the continuation of such failure for a period of fifteen (15) consecutive calendar days;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(f)** the failure of the Company to pay all or any part of the principal of any of the Subordinated Notes as and when the same will become due and payable;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(g)** the liquidation of the Company (for the avoidance of doubt, "liquidation" does not include any merger, consolidation, sale of equity or assets or reorganization (exclusive of a reorganization in bankruptcy) of the Company or any of its subsidiaries);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(h)** the failure of the Company to perform any other covenant or agreement on the part of the Company contained in the Subordinated Notes, and the continuation of such failure for a period of thirty (30) consecutive calendar days after the date on which notice specifying such failure, stating that such notice is a "Notice of Default" hereunder and demanding that the Company remedy the same, will have been given, in the manner set forth in <u>Section 22</u>, to the Company by a Noteholder; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(i)** the default by the Company under any bond, debenture, note or other evidence of indebtedness (which in no event shall include any terms of capital stock issued by the Company) for money borrowed by the Company having an aggregate principal amount outstanding of at least $15,000,000, whether such indebtedness now exists or is created or incurred in the future, which default (i) constitutes a failure to pay any portion of the principal of such indebtedness when due and payable after the expiration of any applicable grace period or (ii) results in such indebtedness becoming due or being declared due and payable prior to the date on which it otherwise would have become due and payable without, in the case of clause

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(i), such indebtedness having been discharged or, in the case of clause (ii), without such indebtedness having been discharged or such acceleration having been rescinded or annulled.

Unless the principal amount of this Subordinated Note already shall have become due and payable, if an Event of Default described in <u>Section 6(a)</u> or <u>Section 6(b)</u> shall have occurred and be continuing, the principal amount of this Subordinated Note shall be immediately due and payable without notice, demand, declaration or other action on the part of the Noteholder. The Company waives demand, presentment for payment, notice of nonpayment, notice of protest and all other notices. Notwithstanding the foregoing, because the Company will treat the Subordinated Notes as Tier 2 Capital, upon the occurrence of an Event of Default other than an Event of Default described in <u>Section 6(a) or Section</u> <u>6(b),</u> the Noteholders may not accelerate the Maturity Date of the Subordinated Notes and make the principal of, and any accrued and unpaid interest on, the Subordinated Notes, immediately due and payable. The Company, within forty-five (45) calendar days after the receipt of written notice from any Noteholder of the occurrence of an Event of Default with respect to this Subordinated Note, shall mail to all Noteholders, at their addresses shown on the Security Register (as defined in <u>Section 14</u> below), such written notice of Event of Default, unless such Event of Default shall have been cured or waived before the giving of such notice as certified by the Company in writing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7.&nbsp;&nbsp;&nbsp;&nbsp;<u>Failure to Make Payments</u>**. In the event of an Event of Default under <u>Section 6(c)</u>, <u>Section 6(d)</u> or <u>Section 6(e)</u>, the Company will, upon demand of the Noteholder, pay to the Noteholder the amount then due and payable on this Subordinated Note for principal and interest (without acceleration of this Subordinated Note in any manner), with interest on the overdue principal and interest at the per annum rate borne by this Subordinated Note, to the extent permitted by applicable law. If the Company fails to pay such amount upon such demand, the Noteholder may, among other things, institute a judicial proceeding for the collection of the sums so due and unpaid and, together with such amount as shall be sufficient to cover the reasonable and documented costs and expenses of collection, including the reasonable compensation, expenses, disbursements and advances of such Noteholder, its agents and counsel, may prosecute such proceeding to judgment or final decree and may enforce the same against the Company and collect the amounts adjudged or decreed to be payable in the manner provided by law out of the property of the Company.

Upon the occurrence of a failure by the Company to make any required payment of principal or interest on this Subordinated Note or an Event of Default, until such failure or Event of Default is cured by the Company or waived by the Noteholders in accordance with <u>Section 17</u> hereof, the Company shall not, except as may be required by any federal or state bank regulatory agency: (a) declare or pay any dividends or distributions on, or redeem, purchase, acquire, or make a liquidation payment with respect to, any of the Company's capital stock; (b) make any payment of principal of or interest or premium, if any, on or repay, repurchase or redeem any indebtedness of the Company that ranks equal with or junior to the Subordinated Notes; or (c) make any payments under any guarantee that ranks equal with or junior to the Subordinated Notes, other than (i) any dividends or distributions payable solely in shares of, or options, warrants or rights to subscribe for or purchase shares of, any class of the Company's common stock; (ii) any declaration of a non-cash dividend in connection with the implementation of a shareholders' rights plan, or the issuance of stock under any such plan in the future, or the redemption or repurchase of any such rights pursuant thereto; (iii) as a result of a reclassification of the Company's capital stock or the exchange or conversion of one class or series of the Company's capital stock for another class or series of the Company's capital stock; (iv) the purchase of fractional interests in shares of the Company's capital stock pursuant to the conversion or exchange provisions of such capital stock or the security being converted or exchanged; or (v) purchases of any class of the Company's common stock related to the issuance of common stock or rights under any benefit plans for the Company's directors, officers or employees or any of the Company's dividend reinvestment plans (the foregoing clauses (i) through (v) are collectively referred to as the "<u>Permitted Dividends</u>").

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8.&nbsp;&nbsp;&nbsp;&nbsp;<u>Affirmative Covenants of the Company</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(a)&nbsp;&nbsp;&nbsp;&nbsp;<u>Notice of Certain Events</u>**. To the extent permitted by applicable statute, rule or regulation, the Company shall provide written notice to the Noteholder of the occurrence of any of the following events as soon as practicable, but in no event later than fifteen (15) Business Days following the Company becoming aware of the occurrence of such event:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(i)**&nbsp;&nbsp;&nbsp;&nbsp;the Company or any of its banking subsidiaries become less than "well- capitalized" as defined under the then-applicable regulatory capital standards;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(ii)**&nbsp;&nbsp;&nbsp;&nbsp;the Company or any of the Company's subsidiaries, or any executive officer of the Company or its subsidiaries (in such capacity), becomes subject to any formal, written regulatory enforcement action (as defined by the applicable Regulatory Agency (as such term is defined in the Purchase Agreement));

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(iii)** the dollar amount of any nonperforming assets of the Company on a consolidated basis as of the end of a given fiscal quarter as a percentage of the Company's total loan portfolio increases by three percent (3%) or more from the end of the preceding fiscal quarter;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(iv)** the appointment, resignation, removal or termination of the chief executive officer, president, chief financial officer or chief credit officer of the Company or the Bank; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(v)** a transaction results in a change in ownership of twenty-five percent (25%) or more of the outstanding securities of the Company entitled to vote for the election of directors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(b)&nbsp;&nbsp;&nbsp;&nbsp;<u>Payment of Principal and Interest</u>**. The Company covenants and agrees for the benefit of the Noteholder that it will duly and punctually pay the principal of, and interest on, this Subordinated Note, in accordance with the terms hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(c)&nbsp;&nbsp;&nbsp;&nbsp;<u>Maintenance of Office</u>**. The Company will maintain an office or agency in the city of Reinbeck, Iowa where Subordinated Notes may be surrendered for registration of transfer or for exchange and where notices and demands to or upon the Company in respect of the Subordinated Notes may be served. The Company may also from time to time designate one or more other offices or agencies where the Subordinated Notes may be presented or surrendered for any or all such purposes and may from time to time rescind such designations; provided that no such designation or rescission will in any manner relieve the Company of its obligation to maintain an office or agency in the city of Reinbeck, Iowa. The Company will give prompt written notice to the Noteholders of any such designation or rescission and of any change in the location of any such other office or agency.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(d)&nbsp;&nbsp;&nbsp;&nbsp;<u>Corporate Existence</u>**. The Company will do or cause to be done all things necessary to preserve and keep in full force and effect: (i) the corporate existence of the Company and the Bank; (ii) the existence (corporate or other) of each subsidiary; and (iii) the rights (charter and statutory), licenses and franchises of the Company and each of its subsidiaries; provided, however, that the Company will not be required to preserve the existence (corporate or other) of any of its subsidiaries or any such right, license or franchise of the Company or any of its subsidiaries if the Board of Directors of the Company determines, in its reasonable judgment after consultation with legal counsel, that the preservation thereof is no longer desirable in the conduct of the business of the Company and its subsidiaries taken as a whole and that the loss thereof will not be disadvantageous in any material respect to the Noteholders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(e)&nbsp;&nbsp;&nbsp;&nbsp;<u>Maintenance of Properties</u>**. The Company will, and will cause each of its subsidiaries to, cause all its properties used or useful in the conduct of its business to be maintained and kept in good

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condition, repair and working order and supplied with all necessary equipment and will cause to be made all necessary repairs, renewals, replacements, betterments and improvements thereof, all as in the judgment of the Company may be necessary so that the business carried on in connection therewith may be properly and advantageously conducted at all times; provided, however, that nothing in this <u>Section 8</u> will prevent the Company or any subsidiary from discontinuing the operation and maintenance of any of their respective properties if such discontinuance is, in the judgment of the Board of Directors of the Company or of any subsidiary, as the case may be, desirable in the conduct of its business.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(f)&nbsp;&nbsp;&nbsp;&nbsp;<u>Transfer of Voting Stock</u>**. Except as contemplated by <u>Section 9(b)</u>, the Company will not, nor will it permit the Bank to, directly or indirectly, sell, assign, transfer or otherwise dispose of any shares of, securities convertible into, or options, warrants or rights to subscribe for or purchase shares of, Voting Stock (as defined below) of the Bank or any successor thereof or any subsidiary of the Company that is a depository institution and that has consolidated assets equal to 30% or more of the Company's consolidated assets ("<u>Material Subsidiary</u>"), nor will the Company permit the Material Subsidiary to issue any shares of, or securities convertible into, or options, warrants or rights to subscribe for or purchase shares of, Voting Stock of the Material Subsidiary if, in each case, after giving effect to any such transaction and to the issuance of the maximum number of shares of Voting Stock of the Material Subsidiary issuable upon the exercise of all such convertible securities, options, warrants or rights, the Company would cease to own, directly or indirectly, at least 80% of the issued and outstanding Voting Stock of the Material Subsidiary. "<u>Voting Stock</u>" means outstanding shares of capital stock having voting power for the election of directors, whether at all times or only so long as no senior class of stock has such voting power because of default in dividends or other default.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(g)&nbsp;&nbsp;&nbsp;&nbsp;<u>Waiver of Certain Covenants</u>**. The Company may omit in any particular instance to comply with any term, provision or condition set forth in <u>Section 8(c),</u> <u>Section 8(d),</u> <u>Section 8(e),</u> or <u>Section 8(f)</u> above, with respect to this Subordinated Note if before the time for such compliance the Noteholders of at least a majority in aggregate principal amount of the outstanding Subordinated Notes (excluding any Subordinated Notes held by the Company or any of its Affiliates), by act of such Noteholders, either will waive such compliance in such instance or generally will have waived compliance with such term, provision or condition, but no such waiver will extend to or affect such term, provision or condition except to the extent so expressly waived, and, until such waiver will become effective, the obligations of the Company in respect of any such term, provision or condition will remain in full force and effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(h)&nbsp;&nbsp;&nbsp;&nbsp;<u>Compliance Certificate</u>**. The Company will deliver to the Noteholders, within one hundred and twenty (120) calendar days after the end of each fiscal year, an Officer's Certificate covering the preceding calendar year, stating whether or not, to the best of his or her knowledge, the Company is in default in the performance and observance of any of the terms, provisions and conditions of this Subordinated Note (without regard to notice requirements or periods of grace) and if the Company will be in default, specifying all such defaults and the nature and status thereof of which he or she may have knowledge.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(i)&nbsp;&nbsp;&nbsp;&nbsp;<u>Tier 2 Capital</u>**. Whether or not the Company is subject to consolidated capital requirements under applicable regulations of the Federal Reserve, if all or any portion of the Subordinated Notes ceases to qualify as Tier 2 Capital, other than due to the limitation imposed on the capital treatment of subordinated debt during the five (5) years immediately preceding the Maturity Date of the Subordinated Notes, the Company will promptly notify the Noteholder and thereafter, subject to the Company's right to redeem the Subordinated Notes under such circumstances pursuant to the terms of the Subordinated Notes, if requested by the Company, the Company and the Noteholder will work together in good faith to execute and deliver all agreements as reasonably necessary in order to restructure the applicable portions of the obligations evidenced by the Subordinated Notes to qualify as Tier 2 Capital; provided, however, that

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nothing contained in this <u>Section 8(</u>i<u>)</u> shall limit the Company's right to redeem the Subordinated Notes upon the occurrence of a Tier 2 Capital Event pursuant to <u>Section 4(a)</u> or <u>Section 4(b)</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(j)&nbsp;&nbsp;&nbsp;&nbsp;<u>Compliance with Laws</u>**. The Company shall comply with the requirements of all laws, regulations, orders and decrees applicable to it or its properties, except for such noncompliance that would not reasonably be expected to have a Material Adverse Effect (as such term is defined in the Purchase Agreement) on the Company and its subsidiaries taken as a whole.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(k)&nbsp;&nbsp;&nbsp;&nbsp;<u>Taxes and Assessments</u>**. The Company shall punctually pay and discharge all material taxes, assessments, and other governmental charges or levies imposed upon it or upon its income or upon any of its properties; provided that no such taxes, assessments or other governmental charges need be paid if they are being contested in good faith by the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(l)&nbsp;&nbsp;&nbsp;&nbsp;<u>Financial Statements; Access to Records</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(i)**&nbsp;&nbsp;&nbsp;&nbsp;Not later than forty-five (45) calendar days following the end of each semi-annual or quarterly period, as applicable, for which the Company has not timely submitted a Consolidated Financial Statement for Holding Companies Reporting Form Y-9C to the Federal Reserve, upon request, the Company shall provide the Noteholder with a copy of the Company's unaudited parent company only balance sheet and statement of income (loss) for and as of the end of such immediately preceding fiscal quarter, prepared in accordance with past practice. Quarterly financial statements, if required herein, shall be unaudited and need not comply with generally accepted accounting principles ("GAAP").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(ii)**&nbsp;&nbsp;&nbsp;&nbsp;Not later than one hundred and twenty (120) calendar days from the end of each fiscal year, upon request the Company shall provide the Noteholder with copies of the Company's audited financial statements consisting of the consolidated balance sheet of the Company as of the fiscal year end and the related statements of income (loss) and retained earnings, stockholders' equity and cash flows for the fiscal year then ended. Such financial statements shall be prepared in accordance with GAAP applied on a consistent basis throughout the period involved.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(m)&nbsp;&nbsp;&nbsp;&nbsp;<u>Designated NRSRO Rating</u>**. The Company will use commercially reasonable efforts to maintain a rating by a Designated NRSRO (as defined below) while any Subordinated Notes remain outstanding. The term "Designated NRSRO" means a "nationally recognized statistical rating organization" (NRSRO) within the meaning of Section 3(a)(62) of the Exchange Act, that is designated as a "Credit Rating Provider" (or other similar designation) by the National Association of Insurance Commissioners (NAIC).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9.&nbsp;&nbsp;&nbsp;&nbsp;<u>Negative Covenants of the Company</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(a)&nbsp;&nbsp;&nbsp;&nbsp;<u>Limitation on Dividends</u>**. The Company shall not declare or pay any dividend or make any distribution on capital stock or other equity securities of any kind of the Company, in each case, except: (i) in such amounts as permitted by applicable regulations and only upon receipt of any regulatory approval; or (ii) Permitted Dividends.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(b)&nbsp;&nbsp;&nbsp;&nbsp;<u>Merger or Sale of Assets</u>**. The Company shall not merge into another entity, effect a Change in Bank Control (as defined below), or convey, transfer or lease substantially all of its properties and assets to any person, unless:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(i)**&nbsp;&nbsp;&nbsp;&nbsp;the continuing entity into which the Company is merged or the person which acquires by conveyance or transfer or which leases substantially all of the properties and assets of the Company shall be a corporation, association or other legal entity organized and existing under the laws of

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the United States of America, any State thereof or the District of Columbia and expressly assumes the due and punctual payment of the principal of and any premium and interest on the Subordinated Notes according to their terms, and the due and punctual performance of all covenants and conditions hereof on the part of the Company to be performed or observed; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(ii)**&nbsp;&nbsp;&nbsp;&nbsp;immediately after giving effect to such transaction, no Event of Default, and no event which, after notice or lapse of time or both, would become an Event of Default, shall have occurred and be continuing.

"<u>Change in Bank Control</u>" means the sale, transfer, lease or conveyance by the Company, or an issuance of stock by the Bank other than to the Company, in either case resulting in ownership by the Company of less than eighty percent (80%) of the Bank.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**10.&nbsp;&nbsp;&nbsp;&nbsp;<u>Denominations</u>**. The Subordinated Notes are issuable only in registered form without interest coupons in minimum denominations of $100,000 and integral multiples of $1,000 in excess thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**11.&nbsp;&nbsp;&nbsp;&nbsp;<u>Charges and Transfer Taxes</u>**. No service charge will be made for any registration of transfer or exchange of this Subordinated Note, or any redemption or repayment of this Subordinated Note, or any conversion or exchange of this Subordinated Note for other types of securities or property, but the Company may require payment of a sum sufficient to pay all taxes, assessments or other governmental charges that may be imposed in connection with the transfer or exchange of this Subordinated Note from the Noteholder requesting such transfer or exchange.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**12.&nbsp;&nbsp;&nbsp;&nbsp;<u>Payment Procedures</u>**. Payment of the principal and interest payable on the Maturity Date, or the earlier redemption date contemplated by Section 4 of this Subordinated Note, will be made by check, by wire transfer or by Automated Clearing House (ACH) transfer in immediately available funds to a bank account in the United States of America designated by the Noteholder if such Noteholder shall have previously provided wire instructions to the Company, upon presentation and surrender of this Subordinated Note at the Payment Office (as defined herein) or at such other place or places as the Company shall designate by notice to the Noteholders as the Payment Office, provided that this Subordinated Note is presented to the Company in time for the Company to make such payments in such funds in accordance with its normal procedures. Payments of interest (other than interest payable on the Maturity Date) shall be made by wire transfer on each Interest Payment Date in immediately available funds or check mailed to the registered Noteholder, as such Person's address appears on the Security Register (as defined herein). Interest payable on any Interest Payment Date shall be payable to the Noteholder in whose name this Subordinated Note is registered at the close of business on the fifteenth (15<sup>th</sup>) calendar day prior to the applicable Interest Payment Date, without regard to whether such date is a Business Day, except that interest not paid on the Interest Payment Date, if any, will be paid to the Noteholder in whose name this Subordinated Note is registered at the close of business on a special record date fixed by the Company (a "<u>Special Record Date</u>"), notice of which shall be given to the Noteholder not less than ten (10) calendar days prior to such Special Record Date. To the extent permitted by applicable law, interest shall accrue, at the rate at which interest accrues on the principal of this Subordinated Note, on any amount of principal or interest on this Subordinated Note not paid when due. All payments on this Subordinated Note shall be applied first against costs and expenses of the Noteholder, if any, for which the Company is liable under this Subordinated Note; then against interest due hereunder; and then against principal due hereunder. The Noteholder acknowledges and agrees that the payment of all or any portion of the outstanding principal amount of this Subordinated Note and all interest hereon shall be pari passu in right of payment and in all other respects to the other Subordinated Notes. In the event that the Noteholder receives payments in excess of its pro rata share of the Company's payments to the Noteholders of all of the Subordinated Notes, then the Noteholder shall hold in trust all such excess payments for the benefit of the Noteholders of the other

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Subordinated Notes and shall pay such amounts held in trust to such other Noteholders upon demand by such Noteholders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**13.&nbsp;&nbsp;&nbsp;&nbsp;<u>Form of Payment</u>**. Payments of principal of and interest on this Subordinated Note shall be made in such coin or currency of the United States of America as at the time of payment shall be legal tender for the payment of public and private debts.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**14.&nbsp;&nbsp;&nbsp;&nbsp;<u>Registration of Transfer, Security Register</u>**. Except as otherwise provided herein, this Subordinated Note is transferable in whole or in part and may be exchanged for a like aggregate principal amount of Subordinated Notes of other authorized denominations, by the Noteholder in person, or by its attorney duly authorized in writing, at the Payment Office or the offices of the Registrar. The Company or the Registrar shall maintain a register providing for the registration of the Subordinated Notes and any exchange or transfer thereof (the "<u>Security Register</u>"). Upon surrender or presentation of this Subordinated Note for exchange or registration of transfer, the Company or the Registrar shall execute and deliver in exchange therefor a Subordinated Note or Subordinated Notes of like aggregate principal amount, each in a minimum denomination of $100,000 or any amount in excess thereof which is an integral multiple of $1,000 (and, in the absence of an opinion of counsel satisfactory to the Company to the contrary, bearing the restrictive legend(s) set forth hereinabove) and that is or are registered in such name or names requested by the Noteholder. Any Subordinated Note presented or surrendered for registration of transfer or for exchange shall be duly endorsed and accompanied by a written instrument of transfer in such form as is attached hereto and incorporated herein, duly executed by the Noteholder or its attorney duly authorized in writing, with such tax identification number or other information for each Person in whose name a Subordinated Note is to be issued, and accompanied by evidence of compliance with any restrictive legend(s) appearing on such Subordinated Note or Subordinated Notes as the Company may reasonably request to comply with applicable law. Such transferee will be solely responsible for delivering to the Company or the Registrar a mailing address or other information necessary for the Company or the Registrar to deliver notices and payments to such transferee. No exchange or registration of transfer of this Subordinated Note shall be made on or after (i) the fifteenth (15<sup>th</sup>) calendar day immediately preceding the Maturity Date or (ii) the due delivery of notice of redemption.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**15.&nbsp;&nbsp;&nbsp;&nbsp;<u>Priority</u>**. The Subordinated Notes rank pari passu among themselves and *pari passu*, in the event of any insolvency proceeding, dissolution, assignment for the benefit of creditors, reorganization, restructuring of debt, marshaling of assets and liabilities or similar proceeding or any liquidation or winding up of the Company, with all other present or future unsecured subordinated debt obligations of the Company, except any unsecured subordinated debt that, pursuant to its express terms, is senior or subordinate in right of payment to the Subordinated Notes and all Senior Indebtedness.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**16.&nbsp;&nbsp;&nbsp;&nbsp;<u>Ownership</u>**. Prior to due presentment of this Subordinated Note for registration of transfer, the Company may treat the Noteholder in whose name this Subordinated Note is registered in the Security Register as the absolute owner of this Subordinated Note for receiving payments of principal and interest on this Subordinated Note and for all other purposes whatsoever, whether or not this Subordinated Note be overdue, and the Company shall not be affected by any notice to the contrary.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**17.&nbsp;&nbsp;&nbsp;&nbsp;<u>Waiver and Consent</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(a)**&nbsp;&nbsp;&nbsp;&nbsp;Any consent or waiver given by the Noteholder shall be conclusive and binding upon such Noteholder and upon all future Noteholders of this Subordinated Note and of any Subordinated Note issued upon the registration of transfer hereof or in exchange therefor or in lieu hereof, whether or not notation of such consent or waiver is made upon this Subordinated Note. No delay or omission of the Noteholder to exercise any right or remedy accruing upon any Event of Default shall impair such right or remedy or constitute a waiver of any such Event of Default or an acquiescence therein. Any insured depository

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institution which shall be a Noteholder or which otherwise shall have any beneficial ownership interest in this Subordinated Note shall, by its acceptance of such Subordinated Note (or beneficial interest therein), be deemed to have waived any right of offset with respect to the repayment of the indebtedness evidenced thereby.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(b)**&nbsp;&nbsp;&nbsp;&nbsp;No waiver or amendment of any term, provision, condition, covenant or agreement in the Subordinated Notes shall be effective except with the consent of the Noteholders holding more than fifty percent (50%) in aggregate principal amount (excluding any Subordinated Notes held by the Company or any of its Affiliates) of the Subordinated Notes at the time outstanding; *provided*, *however*, that, without the consent of each Noteholder of an affected Subordinated Note, no such amendment or waiver may: (i) reduce the principal amount of any Subordinated Note; (ii) reduce the rate of or change the time for payment of interest on any Subordinated Note; (iii) extend the maturity of any Subordinated Note; (iv) change the currency in which payment of the obligations of the Company under the Subordinated Notes are to be made; (v) lower the percentage of aggregate principal amount of outstanding Subordinated Notes required to approve any amendment of the Subordinated Notes; (vi) make any changes to <u>Section</u> <u>4(c)</u> (Partial Redemption); <u>Section 6</u> (Events of Default; Acceleration); <u>Section 7</u> (Failure to Make Payments); <u>Section 15</u> (Priority) or <u>Section 17</u> (Waiver and Consent) of the Subordinated Notes that adversely affects the rights of any Noteholder; or (vii) disproportionately and adversely affect any of the Noteholders of the then outstanding Subordinated Notes. Notwithstanding the foregoing, the Company may amend or supplement the Subordinated Notes without the consent of the Noteholders to cure any ambiguity, defect or inconsistency or to provide for uncertificated Subordinated Notes in addition to or in place of certificated Subordinated Notes, or to make any change that does not adversely affect the rights of any Noteholder of any of the Subordinated Notes. No failure to exercise or delay in exercising, by any Noteholder of the Subordinated Notes, of any right, power or privilege hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of any right, power or privilege preclude any other or further exercise thereof, or the exercise of any other right or remedy provided by law, except as restricted hereby. The rights and remedies provided in this Subordinated Note are cumulative and not exclusive of any right or remedy provided by law or equity. No notice or demand on the Company in any case shall, in itself, entitle the Company to any other or further notice or demand in similar or other circumstances or constitute a waiver of the rights of the Noteholders to any other or further action in any circumstances without notice or demand. No consent or waiver, expressed or implied, by the Noteholders to or of any breach or default by the Company in the performance of its obligations hereunder shall be deemed or construed to be a consent or waiver to or of any other breach or default in the performance of the same or any other obligations of the Company hereunder. Failure on the part of the Noteholders to complain of any acts or failure to act or to declare an Event of Default, irrespective of how long such failure continues, shall not constitute a waiver by the Noteholders of their rights hereunder or impair any rights, powers or remedies on account of any breach or default by the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**18.&nbsp;&nbsp;&nbsp;&nbsp;<u>Absolute and Unconditional Obligation of the Company</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(a)** No provisions of this Subordinated Note shall alter or impair the obligation of the Company, which is absolute and unconditional, to pay the principal and interest on this Subordinated Note at the times, places and rate, and in the coin or currency, herein prescribed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(b)** No delay or omission of the Noteholder to exercise any right or remedy accruing upon any Event of Default shall impair such right or remedy or constitute a waiver of any such Event of Default or an acquiescence therein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**19.&nbsp;&nbsp;&nbsp;&nbsp;<u>Successors and Assigns</u>**. This Subordinated Note shall be binding upon the Company and inure to the benefit of the Noteholder and its respective successors and permitted assigns. The Noteholder may assign all, or any part of, or any interest in, the Noteholder's rights and benefits hereunder. To the

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extent of any such assignment, such assignee shall have the same rights and benefits against the Company and shall agree to be bound by and to comply with the terms and conditions of the Purchase Agreement as it would have had if it were the Noteholder hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**20.&nbsp;&nbsp;&nbsp;&nbsp;<u>No Sinking Fund; Convertibility</u>**. This Subordinated Note is not entitled to the benefit of any sinking fund. This Subordinated Note is not convertible into or exchangeable for any of the equity securities, other securities or assets of the Company or any subsidiary of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**21.&nbsp;&nbsp;&nbsp;&nbsp;<u>No Recourse Against Others</u>**. No recourse under or upon any obligation, covenant or agreement contained in this Subordinated Note, or for any claim based thereon or otherwise in respect thereof, will be had against any past, present or future shareholder, employee, officer, or director, as such, of the Company or of any predecessor or successor, either directly or through the Company or any predecessor or successor, under any rule of law, statute or constitutional provision or by the enforcement of any assessment or by any legal or equitable proceeding or otherwise, all such liability being expressly waived and released by the acceptance of this Subordinated Note by the Noteholder and as part of the consideration for the issuance of this Subordinated Note.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**22.&nbsp;&nbsp;&nbsp;&nbsp;<u>Notices</u>**. All notices to the Company under this Subordinated Note shall be in writing and shall be delivered personally, or mailed, postage prepaid, by U.S. registered or certified mail, return receipt requested, or sent by a responsible overnight commercial courier promising next business day delivery, to the Company at 508 Main Street, Reinbeck, Iowa 50669, Attention: Sean Willett, or to such other address as the Company may provide to the Noteholders (the "<u>Payment Office</u>"). All notices to the Noteholders shall be in writing and shall be mailed, postage prepaid, by U.S. registered or certified mail, return receipt requested, or sent by email to each Noteholder at such Noteholder's address as set forth in the Security Register. Any notice given in accordance with the foregoing shall be deemed given when delivered personally or, if mailed, three (3) Business Days after it shall have been deposited in the U.S. mail as aforesaid or, if sent by overnight courier, the Business Day following the date of delivery to such courier (provided that next business day delivery was requested), or if emailed, upon confirmation of receipt.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**23.&nbsp;&nbsp;&nbsp;&nbsp;<u>Further Issues</u>**. The Company may, without the consent of the Noteholders of the Subordinated Notes, create and issue additional notes having the same terms and conditions of the Subordinated Notes (except for the Issue Date) so that such further notes shall be consolidated and form a single series with the Subordinated Notes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**24.&nbsp;&nbsp;&nbsp;&nbsp;<u>Governing Law; Interpretation</u>**. THIS SUBORDINATED NOTE WILL BE DEEMED TO BE A CONTRACT MADE UNDER THE LAWS OF THE STATE OF NEW YORK AND WILL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK WITHOUT REGARD TO CONFLICT OF LAW PRINCIPLES THEREOF (OTHER THAN SECTION 5-1401 OF THE NEW YORK GENERAL OBLIGATIONS LAW). THIS SUBORDINATED NOTE IS INTENDED TO MEET THE CRITERIA FOR QUALIFICATION OF THE OUTSTANDING PRINCIPAL AS TIER 2 CAPITAL UNDER THE REGULATORY GUIDELINES OF THE FEDERAL RESERVE, AND THE TERMS HEREOF SHALL BE INTERPRETED IN A MANNER TO SATISFY SUCH INTENT.

*[Signature Page Follows]*

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IN WITNESS WHEREOF, the undersigned has caused this Subordinated Note to be duly executed and attested.

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| |
|:---|
| **LINCOLN BANCORP** |
| By: |
| Name: Sean Willett |
| Title:&nbsp;&nbsp;&nbsp;&nbsp;President and Chief Executive Officer  |

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*[Signature Page to Subordinated Note]*

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**<u>PAYING AGENT CERTIFICATE OF AUTHENTICATION</u>**

This is one of the Subordinated Notes of Lincoln Bancorp referred to in the within- mentioned Subordinated Note Purchase Agreement. This Certificate of Authentication must accompany any Subordinated Note issued pursuant to the terms of said Subordinated Note Purchase Agreement in order to be validly issued thereunder.

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| | |
|:---|:---|
| **UMB BANK, N.A.**<br>as Paying Agent | **UMB BANK, N.A.**<br>as Paying Agent |
| By: |  |
|  | Name: James Henry |
|  | Title: &nbsp;&nbsp;&nbsp;&nbsp;Vice President |

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***[UMB Signature Page to Subordinated Note]***

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**ASSIGNMENT FORM**

To assign this Subordinated Note, fill in the form below: (I) or (we) assign and transfer this Subordinated Note to:

(Print or type assignee's name, address and zip code)

(Print or type assignee's social security or tax identification no.)

and irrevocably appoint ___________________________________ as agent to transfer this Subordinated Note on the books of the Company. The agent may substitute another to act for it.

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| | |
|:---|:---|
| Date:________________________ | Your signature:_________________________________ |
|  | (Sign exactly as your name appears on<br>the face of this Subordinated Note) |
|  | Tax identification no:____________________________ |
| Signature guarantee:___________________________________________________________________ | Signature guarantee:___________________________________________________________________ |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*(Signatures must be guaranteed by an eligible guarantor institution (banks, stockbrokers, savings and loan associations and credit unions with membership in an approved signature guarantee medallion program), pursuant to Rule 17Ad-15 promulgated under the Securities Exchange Act of 1934, as amended (the "<u>Exchange Act</u>".))* | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*(Signatures must be guaranteed by an eligible guarantor institution (banks, stockbrokers, savings and loan associations and credit unions with membership in an approved signature guarantee medallion program), pursuant to Rule 17Ad-15 promulgated under the Securities Exchange Act of 1934, as amended (the "<u>Exchange Act</u>".))* |

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The undersigned certifies that it [is / is not] an Affiliate of the Company and that, to its knowledge, the proposed transferee [is / is not] an Affiliate of the Company.

In connection with any transfer or exchange of this Subordinated Note occurring prior to the date that is one year after the later of the date of original issuance of this Subordinated Note and the last date, if any, on which this Subordinated Note was owned by the Company or any Affiliate of the Company, the undersigned confirms that this Subordinated Note is being:

CHECK ONE BOX BELOW:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)acquired for the undersigned's own account, without transfer;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)transferred to the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3)transferred in accordance and in compliance with Rule 144A under the Securities Act of 1933, as amended (the "<u>Securities Act</u>");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4)transferred under an effective registration statement under the Securities Act;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5)transferred in accordance with and in compliance with Regulation S under the Securities Act;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6)transferred to an institutional "accredited investor" (as defined in Rule 501(a)(1), (2), (3) or (7) under the Securities Act);

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(7)transferred to an "accredited investor" (as defined in Rule 501(a)(4) under the Securities Act), not referred to in item (6) that has been provided with the information designated under Section 4(d) of the Securities Act; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(8)transferred in accordance with another available exemption from the registration requirements of the Securities Act.

Unless one of the boxes is checked, the Company will refuse to register this Subordinated Note in the name of any Person other than the registered holder thereof; *provided*, *however*, that if box (5), (6), (7) or (8) is checked, the Company may require, prior to registering any such transfer of this Subordinated Note, in its sole discretion, such legal opinions, certifications and other information as the Company may reasonably request to confirm that such transfer is being made pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act, such as the exemption provided by Rule 144 under the Securities Act.

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| |
|:---|
| Assignor's signature:_____________________________ |
| Signature guarantee:___________________________________________________________________ |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*(Signatures must be guaranteed by an eligible guarantor institution (banks, stockbrokers, savings and loan associations and credit unions with membership in an approved signature guarantee medallion program), pursuant to Exchange Act Rule 17Ad-l5).* |

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TO BE COMPLETED BY PURCHASER IF BOX (1) OR (3) ABOVE IS CHECKED:

The undersigned represents and warrants that it is purchasing this Subordinated Note for its own account or an account with respect to which it exercises sole investment discretion and that it and any such account is a "qualified institutional buyer" within the meaning of Rule 144A under the Securities Act and is aware that the sale to it is being made in reliance on Rule 144A and acknowledges that it has received such information regarding the Company as the undersigned has requested pursuant to Rule 144A or has determined not to request such information and that it is aware that the transferor is relying upon the undersigned's foregoing representations in order to claim the exemption from registration provided by Rule 144A.

Date:________________________ Assignee's signature:_____________________________

## Exhibit 4.4

**Exhibit 4.4**

**FLOATING RATE JUNIOR SUBORDINATED DEFERRABLE INTEREST DEBENTURE**

THIS SECURITY IS NOT A SAVINGS ACCOUNT OR DEPOSIT AND IT IS NOT INSURED BY THE UNITED STATES OR ANY AGENCY OR FUND OF THE UNITED STATES, INCLUDING THE FEDERAL DEPOSIT INSURANCE CORPORATION

THIS SECURITY HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT"), ANY STATE SECURITIES LAWS OR ANY OTHER APPLICABLE SECURITIES LAW. NEITHER THIS SECURITY NOR ANY INTEREST OR PARTICIPATION HEREIN MAY BE REOFFERED, SOLD, ASSIGNED, TRANSFERRED, PLEDGED, ENCUMBERED OR OTHERWISE DISPOSED OF IN THE ABSENCE OF SUCH REGISTRATION OR UNLESS SUCH TRANSACTION IS EXEMPT FROM, OR NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND ANY APPLICABLE STATE SECURITIES LAWS. THE HOLDER OF THIS SECURITY BY ITS ACCEPTANCE HEREOF AGREES TO OFFER, SELL OR OTHERWISE TRANSFER THIS SECURITY ONLY (A) TO THE COMPANY, (B) PURSUANT TO A REGISTRATION STATEMENT THAT HAS BEEN DECLARED EFFECTIVE UNDER THE SECURITIES ACT, (C) TO A PERSON WHOM THE SELLER REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER IN A TRANSACTION MEETING THE REQUIREMENTS OF RULE 144A SO LONG AS THIS SECURITY IS ELIGIBLE FOR RESALE PURSUANT TO RULE 144A IN ACCORDANCE WITH RULE 144A, (D) TO A NON-U.S. PERSON IN AN OFFSHORE TRANSACTION IN ACCORDANCE WITH RULE 903 OR RULE 904 (AS APPLICABLE) OF REGULATIONS UNDER THE SECURITIES ACT, (E) TO AN INSTITUTIONAL "ACCREDITED INVESTOR" WITHIN THE MEANING OF SUBPARAGRAPH (A) OF RULE 501 UNDER THE SECURITIES ACT THAT IS ACQUIRING THIS SECURITY FOR ITS OWN ACCOUNT, OR FOR THE ACCOUNT OF SUCH AN INSTITUTIONAL ACCREDITED INVESTOR, FOR INVESTMENT PURPOSES AND NOT WITH A VIEW TO, OR FOR OFFER OR SALE IN CONNECTION WITH, ANY DISTRIBUTION IN VIOLATION OF THE SECURITIES ACT, OR (F) PURSUANT TO ANY OTHER AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT, SUBJECT TO THE COMPANY'S RIGHT PRIOR TO ANY SUCH OFFER, SALE OR TRANSFER TO REQUIRE THE DELIVERY OF AN OPINION OF COUNSEL, CERTIFICATION AND/OR OTHER INFORMATION SATISFACTORY TO IT IN ACCORDANCE WITH THE INDENTURE, A COPY OF WHICH MAY BE OBTAINED FROM THE COMPANY

THE HOLDER OF THIS SECURITY BY ITS ACCEPTANCE HEREOF ALSO AGREES, REPRESENTS AND WARRANTS THAT IT IS NOT AN EMPLOYEE BENEFIT, INDIVIDUAL RETIREMENT ACCOUNT OR OTHER PLAN OR ARRANGEMENT SUBJECT TO TITLE I OF THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED ("ERISA"), OR SECTION 4975 OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE "CODE") (EACH A "PLAN"), OR AN ENTITY WHOSE UNDERLYING ASSETS INCLUDE "PLAN ASSETS" BY REASON OF ANY PLAN'S INVESTMENT IN THE ENTITY, AND NO PERSON INVESTING "PLAN ASSETS" OF ANY PLAN MAY ACQUIRE OR HOLD THE SECURITIES OR ANY INTEREST THEREIN, UNLESS SUCH PURCHASER OR HOLDER IS ELIGIBLE FOR EXEMPTIVE RELIEF AVAILABLE UNDER U.S. DEPARTMENT OF LABOR PROHIBITED TRANSACTION CLASS EXEMPTION 96-23, 95-60, 91-38, 90-1 OR 84-14 OR ANOTHER APPLICABLE EXEMPTION OR ITS PURCHASE AND HOLDING OF THIS SECURITY IS NOT PROHIBITED BY SECTION 406 OF ERISA OR SECTION 4975 OF THE CODE WITH RESPECT TO SUCH PURCHASE OR HOLDING ANY PURCHASER OR HOLDER OF THE SECURITIES OR ANY INTEREST THEREIN WILL BE DEEMED IO HAVE REPRESENTED BY ITS PURCHASE AND HOLDING THEREOF THAT EITHER (i) IT IS NOT AN EMPLOYEE BENEFIT PLAN WITHIN THE

Lincoln Bancorp/Junior Subordinated Deferrable Interest Debenture

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MEANING OF SECTION 3(3) OF ERISA, OR A PLAN TO WHICH SECTION 4975 OF THE CODE IS APPLICABLE, A TRUSTEE OR OTHER PERSON ACTING ON BEHALF OF AN EMPLOYEE BENEFIT PLAN OR PLAN, OR ANY OTHER PERSON OR ENTITY USING THE ASSETS OF ANY EMPLOYEE BENEFIT PLAN OR PLAN TO FINANCE SUCH PURCHASE, OR (ii) SUCH PURCHASE WILL NOT RESULT IN A PROHIBITED TRANSACTION UNDER SECTION 406 OF ERISA OR SECTION 4975 OF THE CODE FOR WHICH THERE IS NO APPLICABLE STATUTORY OR ADMINISTRATIVE EXEMPTION

THIS SECURITY WILL BE ISSUED AND MAY BE TRANSFERRED ONLY IN BLOCKS HAVING AN AGGREGATE PRINCIPAL AMOUNT OF NOT LESS THAN $100,000.00 AND MULTIPLES OF $1,000.00 IN EXCESS THEREOF. ANY ATTEMPTED TRANSFER OF THIS SECURITY IN A BLOCK HAVING AN AGGREGATE PRINCIPAL AMOUNT OF LESS THAN $100,000.00 SHALL BE DEEMED TO BE VOID AND OF NO LEGAL EFFECT WHATSOEVER

THE HOLDER OF THIS SECURITY AGREES THAT IT WILL COMPLY WITH THE FOREGOING RESTRICTIONS

IN CONNECTION WITH ANY TRANSFER, THE HOLDER WILL DELIVER TO THE REGISTRAR AND TRANSFER AGENT SUCH CERTIFICATES AND OTHER INFORMATION AS MAY BE REQUIRED BY THE INDENTURE TO CONFIRM THAT THE TRANSFER COMPLIES WITH THE FOREGOING RESTRICTIONS

Floating Rate Junior Subordinated Deferrable Interest Debenture

of

Lincoln Bancorp

June 21, 2007

Lincoln Bancorp, an Iowa corporation (the ''Company" which term includes any successor Person under the Indenture hereinafter referred to), for value received promises to pay to Wilmington Trust Company, not in its individual capacity but solely as Institutional Trustee for Lincoln Bancorp Capital Trust II (the "Holder ") or registered assigns, the principal sum of nine million two hundred seventy-nine thousand dollars ($9,279,000.00) on September 15, 2037, and to pay interest on said principal sum from June 21, 2007, or from the most recent Interest Payment Date (as defined below) to which interest has been paid or duly provided for, quarterly (subject to deferral as set forth herein) in arrears on March 15, June 15, September 15 and December 15 of each year or if such day is not a Business Day, then the next succeeding Business Day (each such date, an "Interest Payment Date") (it being understood that interest accrues for any such non-Business Day), commencing on the Interest Payment Date in September 2007, at an annual rate equal to 680% beginning on (and including) the date of original issuance and ending on (but excluding) the Interest Payment Date in September 2007 and at an annual rate for each successive period beginning on (and including) the Interest Payment Date in September 2007, and each succeeding Interest Payment Date, and ending on (but excluding) the next succeeding Interest Payment Date (each a "Distribution Period"), equal to 3-Month LIBOR, determined as described below, plus 1.44% (the "Coupon Rate"), applied to the principal amount hereof, until the principal hereof is paid or duly provided for or made available for payment, and on any overdue principal and (without duplication and to the extent that payment of such interest is enforceable under applicable law) on any overdue installment of interest (including Additional Interest) at the Interest Rate in effect for each applicable period, compounded quarterly, from the dates such amounts are due until they are paid or made available for payment. The amount of interest payable for any period will be computed on the basis

Lincoln Bancorp/Junior Subordinated Deferrable Interest Debenture

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of the actual number of days in the Distribution Period concerned divided by 360 The interest installment so payable, and punctually paid or duly provided for, on any Inter est Payment Date will, as provided in the Indenture, be paid to the Person in whose name this Debenture (or one or more Predecessor Securities) is registered at the close of business on the regular record date for such interest installment, which shall be fifteen Business Days prior to the day on which the relevant Interest Payment Date occurs. Any such interest installment not so punctually paid or duly provided for shall forthwith cease to be payable to the Holder on such regular record date and may be paid to the Person in whose name this Debenture (or one or more Predecessor Securities) is registered at the close of business on a special record date.

"3-Month LIBOR" as used herein, means the London interbank offered interest rate for three- month U.S., dollar deposits determined by the Trustee in the following order of priority: (i) the rate (expressed as a percentage per annum) for U S. dollar deposits having a three-month maturity that appears on Reuters Page LIBOR01 as of 11:00 am. (London time) on the related Determination Date ("Reuters Page LIBOR01" means the display designated as "LIBOR01" on Reuters or such other page as may replace Reuters Page LIBOR01 on that service or such other service or services as may be nominated by the British Bankers' Association as the information vendor for the purpose of displaying London interbank offered rates for U.S. dollar deposits); (ii) if such rate cannot be identified on the related Determination Date, the Trustee will request the principal London offices of four leading banks in the London interbank market to provide such banks' offered quotations (expressed as percentages per annum) to prime banks in the London interbank market for U.S. dollar deposits having a three-month maturity as of 11:00 am. (London time) on such Determination Date If at least two quotations are provided, 3- Month LIBOR will be the arithmetic mean of such quotations; (iii) if fewer than two such quotations are provided as requested in clause (ii) above, the Trustee will request four major New York City banks to provide such banks' offered quotations (expressed as percentages per annum) to leading European banks for loans in U .S. dollar s as of 11:00 a m. (London time) on such Determination Date. If at least two such quotations are provided, 3-Month LIBOR will be the arithmetic mean of such quotations; and (iv) if fewer than two such quotations are provided as requested in clause (iii) above, 3-Month LIBOR will be a 3-Month LIBOR determined with respect to the Distribution Period immediately preceding such current Distribution Period. If the rate for U.S. dollar deposits having a three-month maturity that initially appears on Reuters Page LIBOR01 as of 11:00 am. (London time) on the related Determination Date is superseded on the Reuters Page LIBOR01 by a corrected rate by 12:00 noon (London time) on such Determination Date, then the corrected rate as so substituted on the applicable page will be the applicable 3-Month LIBOR for such Determination Date As used herein, "Determination Date" means the date that is two London Banking Days (i.e.., a business day in which dealings in deposits in U.S dollars are transacted in the London interbank market) preceding the commencement of the relevant Distribution Period.

The Interest Rate for any Distribution Period will at no time be higher than the maximum rate then permitted by New York law as the same may be modified by United States law

All percentages resulting from any calculations on the Debentures will be rounded, if necessary, to the nearest one hundred-thousandth of a percentage point, with five one-millionths of a percentage point rounded upward (e g., 9876545% (or 09876545) being rounded to 987655% (or 0987655), and all dollar amounts used in or resulting from such calculation will be rounded to the nearest cent (with one- half cent being rounded upward)).

The principal of and interest on this Debenture shall be payable at the office or agency of the Trustee (or other paying agent appointed by the Company) maintained for that purpose in any coin or currency of the United States of America that at the time of payment is legal tender for payment of public

Lincoln Bancorp/Junior Subordinated Deferrable Interest Debenture

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and private debts; <u>provided</u>, <u>however</u>, that payment of interest may be made by check mailed to the registered holder at such address as shall appear in the Debenture Register if a request for a wire transfer by such holder has not been received by the Company or by wire transfer to an account appropriately designated by the holder hereof. Notwithstanding the foregoing, so long as the holder of this Debenture is the Institutional Trustee, the payment of the principal of and interest on this Debenture will be made in immediately available funds at such place and to such account as may be designated by the Trustee

So long as no Acceleration Event of Default has occurred and is continuing, the Company shall have the right, from time to time, and without causing an Event of Default, to defer payments of interest on the Debentures by extending the interest payment period on the Debentures at any time and from time to time during the term of the Debentures, for up to 20 consecutive quarterly periods (each such extended interest payment period, an "Extension Period"), during which Extension Period no interest (including Additional Interest) shall be due and payable (except any Additional Sums that may be due and payable). No Extension Period may end on a date other than an Interest Payment Date. During an Extension Period, interest will continue to accrue on the Debentures, and interest on such accrued interest will accrue at an annual rate equal to the Interest Rate in effect for such Extension Period, compounded quarterly from the date such interest would have been payable were it not for the Extension Period, to the extent permitted by law (such interest referred to herein as "Additional Interest"). At the end of any such Extension Period the Company shall pay all interest then accrued and unpaid on the Debentures (together with Additional Interest thereon); <u>provided</u>, <u>however</u>, that no Extension Period may extend beyond the Maturity Date; <u>provided further</u>, <u>however</u>, that during any such Extension Period, the Company shall not and shall not permit any Affiliate to engage in any of the activities or transactions described on the reverse side hereof and in the Indenture. Prior to the termination of any Extension Period, the Company may further extend such period, provided that such period together with all such previous and further consecutive extensions thereof shall not exceed 20 consecutive quarterly periods, or extend beyond the Maturity Date. Upon the termination of any Extension Period and upon the payment of all accrued and unpaid interest and Additional Interest, the Company may commence a new Extension Period, subject to the foregoing requirements No interest or Additional Interest shall be due and payable during an Extension Period, except at the end thereof, but each installment of interest that would otherwise have been due and payable during such Extension Period shall bear Additional Interest. The Company must give the Trustee notice of its election to begin or extend an Extension Period by the close of business at least 15 Business Days prior to the Interest Payment Date with respect to which interest on the Debentures would have been payable except for the election to begin or extend such Extension Period.

The indebtedness evidenced by this Debenture is, to the extent provided in the Indenture, subordinate and junior in right of payment to the prior payment in full of all Senior Indebtedness, and this Debenture is issued subject to the provisions of the Indenture with respect thereto. Each holder of this Debenture, by accepting the same, (a) agrees to and shall be bound by such provisions, (b) authorizes and directs the Trustee on his or her behalf to take such action as may be necessary or appropriate to acknowledge or effectuate the subordination so provided and (c) appoints the Trustee his or her attorney- in-fact for any and all such purposes. Each holder hereof, by his or her acceptance hereof, hereby waives all notice of the acceptance of the subordination provisions contained herein and in the Indenture by each holder of Senior Indebtedness, whether now outstanding or hereafter incurred, and waives reliance by each such holder upon said provisions.

This Debenture shall not be entitled to any benefit under the Indenture hereinafter referred to, be valid or become obligatory for any purpose until the certificate of authentication hereon shall have been signed by or on behalf of the Trustee.

Lincoln Bancorp/Junior Subordinated Deferrable Interest Debenture

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The provisions of this Debenture are continued on the reverse side hereof and such provisions shall for- all purposes have the same effect as though fully set forth at this place.

*Signatures appear on the following page*

Lincoln Bancorp/Junior Subordinated Deferrable Interest Debenture

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IN WITNESS WHEREOF, the Company has duly executed this certificate.

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| | | | |
|:---|:---|:---|:---|
| LINCOLN BANCORP | LINCOLN BANCORP | LINCOLN BANCORP | LINCOLN BANCORP |
| By | /s/ Steve Tscherter | /s/ Steve Tscherter | /s/ Steve Tscherter |
| | | Name: | Steve Tscherter |
| | | Title: | Vice President |

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<u>CERTIFICATE OF AUTHENTICATION</u>

This is one of the Debentures referred to in the within-mentioned Indenture.

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| | |
|:---|:---|
| WILMINGTON TRUST COMPANY , as Trustee | WILMINGTON TRUST COMPANY , as Trustee |
| By: | /s/ |
|  | Authorized Officer |

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Lincoln Bancorp/Junior Subordinated Deferrable Interest Debenture

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REVERSE OF DEBENTURE

This Debenture is one of the floating rate junior subordinated deferrable interest debentures of the Company, all issued or to be issued under and pursuant to the Indenture dated as of June 21, 2007 (the "Indenture"), duly executed and delivered between the Company and the Trustee, to which Indenture reference is hereby made for a description of the rights, limitations of rights, obligations, duties and immunities thereunder of the Trustee, the Company and the holders of the Debentures. The Debentures are limited in aggregate principal amount as specified in the Indenture.

Upon the occurrence and continuation of a Special Event prior to the Interest Payment Date in June 2012, the Company shall have the right to redeem the Debentures in whole, but not in part, at any Interest Payment Date, within 120 days following the occurrence of such Special Event, at the Special Redemption Price

In addition, the Company shall have the right to redeem the Debentures, in whole or in part, but in all cases in a principal amount with integral multiples of $1,000,00, on any Interest Payment Date on or after the Interest Payment Date in June 2012, at the Redemption Price

Prior to 10:00 a.m. New York City time on the Redemption Date or Special Redemption Date, as applicable, the Company will deposit with the Trustee or with one or more paying agents an amount of money sufficient to redeem on the Redemption Date or the Special Redemption Date, as applicable, all the Debentures so called for redemption at the appropriate Redemption Price or Special Redemption Price

If all, or less than all, the Debentures are to be redeemed, the Company will give the Trustee notice not less than 45 nor more than 60 days, respectively, prior to the Redemption Date or Special Redemption Date, as applicable, as to the aggregate principal amount of Debentures to be redeemed and the Trustee shall select, in such manner as in its sole discretion it shall deem appropriate and fair, the Debentures or portions thereof (in integral multiples of $1,000,00) to be redeemed

Notwithstanding the foregoing, any redemption of Debentures by the Company shall be subject to the receipt of any and all required regulatory approvals

In case an Acceleration Event of Default shall have occurred and be continuing, upon demand of the Trustee, the principal of all of the Debentures shall become due and payable in the manner, with the effect and subject to the conditions provided in the Indenture

The Indenture contains provisions permitting the Company and the Trustee, with the consent of the holders of not less than a majority in aggregate principal amount of the Debentures at the time outstanding, to execute supplemental indentures for the purpose of adding any provisions to or changing in any manner or eliminating any of the provisions of this Indenture or of any supplemental indenture or of modifying in any manner the rights of the holders of the Debentures; <u>provided</u>, <u>however</u>, that no such supplemental indenture shall without the consent of the holders of each Debenture then outstanding and affected thereby (i) change the fixed maturity of any Debenture, or reduce the principal amount thereof or any premium thereon, or reduce the rate or extend the time of payment of interest thereon, or reduce any amount payable on redemption thereof or make the principal thereof or any interest or premium thereon payable in any coin or currency other than that provided in the Debentures, or impair or affect the tight of any Security holder to institute suit for payment thereof or impair the right of repayment, if any, at the option of the holder, or (ii) reduce the aforesaid percentage of Debentures the holders of which are required to consent to any such supplemental indenture

The Indenture also contains provisions permitting the holders of a majority in aggregate principal amount of the Debentures at the time outstanding on behalf of the holders of all of the Debentures to waive (or modify any previously granted waiver of) any past default or Event of Default, and its consequences, except a default (a) in the payment of principal of, premium, if any, or interest on any of the Debentures, (b) in respect of covenants or provisions hereof or of the Indenture which cannot be modified or amended without the consent of the holder of each Debenture affected, or (c) in respect of the covenants contained in Section 39 of the Indenture; <u>provided</u>, <u>however,</u> that if the Debentures are held by the Trust or a trustee of such trust, such waiver or modification to such waiver shall not be effective until the holders of a majority in Liquidation Amount of Trust Securities of the Trust shall have consented to such waiver or modification to such waiver, <u>provided</u>, <u>further</u>, that if the consent of the holder of each outstanding Debenture is required, such waiver shall not be effective until each holder of the Trust Securities of the Trust shall have consented to such waiver Upon any such waiver, the default covered thereby shall be deemed to be cured for all purposes of the Indenture and the Company, the Trustee and the holders of the Debentures shall be restored to their former positions and rights hereunder, respectively; but no such waiver shall extend to any subsequent or other default or Event of Default or impair any right consequent thereon. Whenever any default or Event of Default hereunder shall have been waived as permitted by the Indenture, said default or Event of Default shall for all purposes of the Debentures and the Indenture be deemed to have been cured and to be not continuing

Lincoln Bancorp/Junior Subordinated Deferrable Interest Debenture

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No reference herein to the Indenture and no provision of this Debenture or of the Indenture shall alter or impair the obligation of the Company, which is absolute and unconditional, to pay the principal of and premium, if any, and interest, including Additional Interest, on this Debenture at the time and place and at the rate and in the money herein prescribed

The Company has agreed that if Debentures are initially issued to the Trust or a trustee of such Trust in connection with the issuance of Trust Securities by the Trust (regardless of whether Debentures continue to be held by such Trust) and (i) there shall have occurred and be continuing an Event of Default, (ii) the Company shall be in default with respect to its payment of any obligations under the Capital Securities Guarantee, or (iii) the Company shall have given notice of its election to defer payments of interest on the Debentures by extending the interest payment period as provided herein and such Extension Period, or any extension thereof, shall be continuing, then the Company shall not, and shall not allow any Affiliate of the Company to, (x) declare or pay any dividends or distributions on, or redeem, purchase, acquire, or make a liquidation payment with respect to, any of the Company's capital stock or its Affiliates' capital stock (other than payments of dividends or distributions to the Company) or make any guarantee payments with respect to the foregoing or (y) make any payment of principal of or interest or premium, if any, on or repay, repurchase or redeem any debt securities of the Company or any Affiliate that rank *pari passu* in all respects with or junior in interest to the Debentures (other than, with respect to clauses (x) and (y) above, (1) repurchases, redemptions or other acquisitions of shares of capital stock of the Company in connection with any employment contract, benefit plan or other similar arrangement with or for the benefit of one or more employees, officers, directors or consultants, in connection with a dividend reinvestment or stockholder stock purchase plan or in connection with the issuance of capital stock of the Company (or securities convertible into or exercisable for such capital stock) as consideration in an acquisition transaction entered into prior to the applicable Extension Period, if any, (2) as a result of any exchange or conversion of any class or series of the Company's capital stock (or any capital stock of a subsidiary of the Company) for any class or series of the Company's capital stock or of any class or series of the Company's indebtedness for any class or series of the Company's capital stock, (3) the purchase of fractional interests in shares of the Company's capital stock pursuant to the conversion or exchange provisions of such capital stock or the security being converted or exchanged, (4) any declaration of a dividend in connection with any stockholders' rights plan, or the issuance of rights, stock or other property under any stockholders' rights plan, or the redemption or repurchase of rights pursuant thereto, (5) any dividend in the form of stock, warrants, options or other rights where the dividend stock or the stock issuable upon exercise of such warrants, options or other rights is the same stock as that on which the dividend is being paid or ranks *pari passu* with or junior to such stock and any cash payments in lieu of fractional shares issued in connection therewith, or (6) payments under the Capital Securities Guarantee).

The Debentures are issuable only in registered, certificated form without coupons and in minimum denominations of $100,000.00 and any multiple of $1,000.00 in excess thereof As provided in the Indenture and subject to the transfer restrictions and limitations as may be contained herein and therein from time to time, this Debenture is transferable by the holder hereof on the Debenture Register of the Company Upon due presentment for registration of transfer of any Debenture at the Principal Office of the Trustee or at any office or agency of the Company maintained for such purpose as provided in Section 32 of the Indenture, the Company shall execute, the Company or the Trustee shall register and the Trustee or the Authenticating Agent shall authenticate and make available for delivery in the name of the transferee or transferees a new Debenture for a like aggregate principal amount. All Debentures presented for registration of transfer or for exchange or payment shall (if so required by the Company or the Trustee or the Authenticating Agent) be duly endorsed by, or be accompanied by a written instrument or instruments of transfer in form satisfactory to, the Company and the Trustee or the Authenticating Agent duly executed by the holder or his attorney duly authorized in writing No service charge shall be made for any exchange or registration of transfer of Debentures, but the Company or the Trustee may require payment of a sum sufficient to cover any tax, fee or other governmental charge that may be imposed in connection therewith

Prior to due presentment for registration of transfer of any Debenture, the Company, the Trustee, any Authenticating Agent, any paying agent, any transfer agent and any Debenture registrar may deem the Person in whose name such Debenture shall be registered upon the Debenture Register to be, and may treat him as, the absolute owner of such Debenture (whether or not such Debenture shall be overdue) for the purpose of receiving payment of or on account of the principal of, premium, if any, and interest on such Debenture and for all other purposes; and neither the Company nor the Trustee nor any Authenticating Agent nor any paying agent nor any transfer agent nor any Debenture registrar shall be affected by any notice to the contrary. All such payments so made to any holder for the time being or upon his order shall be valid, and, to the extent of the sum or sums so paid, effectual to satisfy and discharge the liability for moneys payable upon any such Debenture

No recourse for the payment of the principal of or premium, if any, or interest on any Debenture, or for any claim based thereon or otherwise in respect thereof, and no recourse under or upon any obligation, covenant or agreement of the Company in the Indenture or in any supplemental indenture, or in any such Debenture, or because of the creation of any indebtedness represented thereby, shall be had against any incorporator, stockholder, employee, officer or director, as such, past, present or future, of the Company or of any successor Person of the Company, either directly or through the Company or any successor Person of the Company, whether by virtue of any constitution, statute or rule of law, or by the enforcement of any assessment or

Lincoln Bancorp/Junior Subordinated Deferrable Interest Debenture

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penalty or otherwise, it being expressly understood that all such liability is hereby expressly waived and released as a condition of, and as a consideration for, the execution of the Indenture and the issue of the Debentures.

Capitalized terms used and not defined in this Debenture shall have the meanings assigned in the Indenture dated as of the date of original issuance of this Debenture between the Trustee and the Company

THE INDENTURE AND THE DEBENTURES SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK WITHOUT REGARD TO CONFLICT OF LAW PRINCIPLES THEREOF

Lincoln Bancorp/Junior Subordinated Deferrable Interest Debenture

## Exhibit 4.5

**Exhibit 4.5**

**LINCOLN BANCORP, as Issuer**

**INDENTURE**

**Dated as of June 21, 2007**

**WILMINGTON TRUST COMPANY, as Trustee**

**FLOATING RATE JUNIOR SUBORDINATED DEFERRABLE INTEREST DEBENTURES**

**DUE 2037**

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**<u>**TABLE OF CONTENTS**</u>**

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| | | |
|:---|:---|:---|
| | | <u>Page</u> |
| ARTICLE I. DEFINITIONS | ARTICLE I. DEFINITIONS | 1 |
| Section 1.1. | Definitions | 1 |
| ARTICLE II. DEBENTURES | ARTICLE II. DEBENTURES | 8 |
| Section 2.1. | Authentication and Dating | 8 |
| Section 2.2. | Form of Trustee's Certificate of Authentication | 9 |
| Section 2.3. | Form and Denomination of Debentures | 9 |
| Section 2.4. | Execution of Debentures | 9 |
| Section 2.5. | Exchange and Registration of Transfer of Debentures | 10 |
| Section 2.6. | Mutilated, Destroyed, Lost or Stolen Debentures | 12 |
| Section 2.7. | Temporary Debentures | 12 |
| Section 2.8. | Payment of Interest and Additional Interest | 13 |
| Section 2.9. | Cancellation of Debentures Paid, etc | 14 |
| Section 2.10. | Computation of Interest | 14 |
| Section 2.11. | Extension of Interest Payment Period | 15 |
| Section 2.12. | CUSIP Numbers | 16 |
| ARTICLE III. PARTICULAR COVENANTS OF THE COMPANY | ARTICLE III. PARTICULAR COVENANTS OF THE COMPANY | 17 |
| Section 3.1. | Payment of Principal, Premium and Interest; Agreed Treatment of the Debentures | 17 |
| Section 3.2. | Offices for Notices and Payments, etc | 17 |
| Section 3.3. | Appointments to Fill Vacancies in Trustee's Office | 18 |
| Section 3.4. | Provision as to Paying Agent | 18 |
| Section 3.5. | Certificate to Trustee | 19 |
| Section 3.6. | Additional Sums | 19 |
| Section 3.7. | Compliance with Consolidation Provisions | 19 |
| Section 3.8. | Limitation on Dividends | 19 |
| Section 3.9. | Covenants as to the Trust | 20 |
| Section 3.10. | Additional Junior Indebtedness | 20 |
| Section 3.11. | Subsidiary; Insured Depository Institution | 20 |
| ARTICLE IV. SECURITYHOLDERS' LISTS AND REPORTS BY THE COMPANY AND THE TRUSTEE | ARTICLE IV. SECURITYHOLDERS' LISTS AND REPORTS BY THE COMPANY AND THE TRUSTEE | 20 |
| Section 4.1. | Securityholders' Lists | 20 |
| Section 4.2. | Preservation and Disclosure of Lists | 21 |
| Section 4.3. | Reports by the Company | 22 |
| ARTICLE V. REMEDIES OF THE TRUSTEE AND SECURITYHOLDERS UPON AN EVENT OF DEFAULT | ARTICLE V. REMEDIES OF THE TRUSTEE AND SECURITYHOLDERS UPON AN EVENT OF DEFAULT | 22 |
| Section 5.1. | Events of Default | 22 |
| Section 5.2. | Payment of Debentures on Default; Suit Therefor | 24 |
| Section 5.3. | Application of Moneys Collected by Trustee | 25 |
| Section 5.4. | Proceedings by Securityholders | 25 |
| Section 5.5. | Proceedings by Trustee | 26 |

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| | | |
|:---|:---|:---|
| Section 5.6. | Remedies Cumulative and Continuing; Delay or Omission Not a Waiver | 26 |
| Section 5.7. | Direction of Proceedings and Waiver of Defaults by Majority of Securityholders | 26 |
| Section 5.8. | Notice of Defaults | 27 |
| Section 5.9. | Undertaking to Pay Costs | 27 |
| ARTICLE VI. CONCERNING THE TRUSTEE | ARTICLE VI. CONCERNING THE TRUSTEE | 28 |
| Section 6.1. | Duties and Responsibilities of Trustee | 28 |
| Section 6.2. | Reliance on Documents, Opinions, etc | 28 |
| Section 6.3. | No Responsibility for Recitals, etc | 29 |
| Section 6.4. | Trustee, Authenticating Agent, Paying Agents, Transfer Agents or Registrar May Own Debentures | 30 |
| Section 6.5. | Moneys to be Held in Trust | 30 |
| Section 6.6. | Compensation and Expenses of Trustee | 30 |
| Section 6.7. | Officers' Certificate as Evidence | 31 |
| Section 6.8. | Eligibility of Trustee | 31 |
| Section 6.9. | Resignation or Removal of Trustee | 31 |
| Section 6.10. | Acceptance by Successor Trustee | 32 |
| Section 6.11. | Succession by Merger, etc | 33 |
| Section 6.12. | Authenticating Agents | 33 |
| ARTICLE VII. CONCERNING THE SECURITYHOLDERS | ARTICLE VII. CONCERNING THE SECURITYHOLDERS | 34 |
| Section 7.1. | Action by Securityholders | 34 |
| Section 7.2. | Proof of Execution by Securityholders | 35 |
| Section 7.3. | Who Are Deemed Absolute Owners | 35 |
| Section 7.4. | Debentures Owned by Company Deemed Not Outstanding | 35 |
| Section 7.5. | Revocation of Consents; Future Holders Bound | 35 |
| ARTICLE VIII. SECURITYHOLDERS' MEETINGS | ARTICLE VIII. SECURITYHOLDERS' MEETINGS | 36 |
| Section 8.1. | Purposes of Meetings | 36 |
| Section 8.2. | Call of Meetings by Trustee | 36 |
| Section 8.3. | Call of Meetings by Company or Securityholders | 36 |
| Section 8.4. | Qualifications for Voting | 37 |
| Section 8.5. | Regulations | 37 |
| Section 8.6. | Voting | 37 |
| Section 8.7. | Quorum; Actions | 38 |
| ARTICLE IX. SUPPLEMENTAL INDENTURES | ARTICLE IX. SUPPLEMENTAL INDENTURES | 38 |
| Section 9.1. | Supplemental Indentures without Consent of Securityholders | 38 |
| Section 9.2. | Supplemental Indentures with Consent of Securityholders | 39 |
| Section 9.3. | Effect of Supplemental Indentures | 40 |
| Section 9.4. | Notation on Debentures | 40 |
| Section 9.5. | Evidence of Compliance of Supplemental Indenture to be Furnished to Trustee | 40 |
| ARTICLE X. REDEMPTION OF SECURITIES | ARTICLE X. REDEMPTION OF SECURITIES | 41 |
| Section 10.1. | Optional Redemption | 41 |
| Section 10.2. | Special Event Redemption | 41 |

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| | | |
|:---|:---|:---|
| Section 10.3. | Notice of Redemption; Selection of Debentures | 41 |
| Section 10.4. | Payment of Debentures Called for Redemption | 42 |
| ARTICLE XI. CONSOLIDATION, MERGER, SALE, CONVEYANCE AND LEASE | ARTICLE XI. CONSOLIDATION, MERGER, SALE, CONVEYANCE AND LEASE | 42 |
| Section 11.1. | Company May Consolidate, etc., on Certain Terms | 42 |
| Section 11.2. | Successor Entity to be Substituted | 42 |
| Section 11.3. | Opinion of Counsel to be Given to Trustee | 43 |
| ARTICLE XII. SATISFACTION AND DISCHARGE OF INDENTURE | ARTICLE XII. SATISFACTION AND DISCHARGE OF INDENTURE | 43 |
| Section 12.1. | Discharge of Indenture | 43 |
| Section 12.2. | Deposited Moneys to be Held in Trust by Trustee | 44 |
| Section 12.3. | Paying Agent to Repay Moneys Held | 44 |
| Section 12.4. | Return of Unclaimed Moneys | 44 |
| ARTICLE XIII. IMMUNITY OF INCORPORATORS, STOCKHOLDERS, OFFICERS AND DIRECTORS | ARTICLE XIII. IMMUNITY OF INCORPORATORS, STOCKHOLDERS, OFFICERS AND DIRECTORS | 44 |
| Section 13.1. | Indenture and Debentures Solely Corporate Obligations | 44 |
| ARTICLE XIV. MISCELLANEOUS PROVISIONS | ARTICLE XIV. MISCELLANEOUS PROVISIONS | 44 |
| Section 14.1. | Successors | 44 |
| Section 14.2. | Official Acts by Successor Entity | 44 |
| Section 14.3. | Surrender of Company Powers | 45 |
| Section 14.4. | Addresses for Notices, etc | 45 |
| Section 14.5. | Governing Law | 45 |
| Section 14.6. | Evidence of Compliance with Conditions Precedent | 45 |
| Section 14.7. | **Table of Contents**, Headings, etc | 45 |
| Section 14.8. | Execution in Counterparts | 46 |
| Section 14.9. | Separability | 46 |
| Section 14.10. | Assignment | 46 |
| Section 14.11. | Acknowledgment of Rights | 46 |
| ARTICLE XV. SUBORDINATION OF DEBENTURES | ARTICLE XV. SUBORDINATION OF DEBENTURES | 46 |
| Section 15.1. | Agreement to Subordinate | 46 |
| Section 15.2. | Default on Senior Indebtedness | 47 |
| Section 15.3. | Liquidation, Dissolution, Bankruptcy | 47 |
| Section 15.4. | Subrogation | 48 |
| Section 15.5. | Trustee to Effectuate Subordination | 49 |
| Section 15.6. | Notice by the Company | 49 |
| Section 15.7. | Rights of the Trustee; Holders of Senior Indebtedness | 49 |
| Section 15.8. | Subordination May Not Be Impaired | 50 |

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Exhibit A &nbsp;&nbsp;&nbsp;&nbsp;Form of Floating Rate Junior Subordinated Deferrable Interest Debenture

Exhibit B &nbsp;&nbsp;&nbsp;&nbsp;Form of Certificate to Trustee

Exhibit C &nbsp;&nbsp;&nbsp;&nbsp;Form of Quarterly Report

iii

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THIS INDENTURE, dated as of June 21, 2007, between Lincoln Bancorp, an Iowa corporation (the "<u>Company</u>"), and Wilmington Trust Company, a Delaware banking corporation, as debenture trustee (the "<u>Trustee</u>").

WITNESSETH:

WHEREAS, for its lawful corporate purposes, the Company has duly authorized the issuance of its Floating Rate Junior Subordinated Deferrable Interest Debentures due 2037 (the "<u>Debentures</u>") under this Indenture to provide, among other things, for the execution and authentication, delivery and administration thereof, and the Company has duly authorized the execution of this Indenture; and

WHEREAS, all acts and things necessary to make this Indenture a valid agreement according to its terms, have been done and performed;

NOW, THEREFORE, This Indenture Witnesseth:

In consideration of the premises, and the purchase of the Debentures by the holders thereof, the Company covenants and agrees with the Trustee for the equal and proportionate benefit of the respective holders from time to time of the Debentures as follows:

**ARTICLE I.**

**<u>DEFINITIONS</u>**

**Section 1.1. <u>Definitions</u>**. The terms defined in this Section 1.1 (except as herein otherwise expressly provided or unless the context otherwise requires) for all purposes of this Indenture and of any indenture supplemental hereto shall have the respective meanings specified in this Section 1.1. All accounting terms used herein and not expressly defined shall have the meanings assigned to such terms in accordance with generally accepted accounting principles and the term "generally accepted accounting principles" means such accounting principles as are generally accepted in the United States at the time of any computation. The words "herein," "hereof" and "hereunder" and other words of similar import refer to this Indenture as a whole and not to any particular Article, Section or other subdivision.

"<u>Acceleration Event of Default</u>" means an Event of Default under Section 5.1(a), (d), (e) or (f), whatever the reason for such Acceleration Event of Default and whether it shall be voluntary or involuntary or be effected by operation of law or pursuant to any judgment, decree or order of any court or any order, rule or regulation of any administrative or governmental body.

"<u>Additional Interest</u>" has the meaning set forth in Section 2.11.

"<u>Additional Junior Indebtedness</u>" means, without duplication and other than the Debentures, any indebtedness, liabilities or obligations of the Company, or any Subsidiary of the Company, under debt securities (or guarantees in respect of debt securities) initially issued after the date of this Indenture to any trust, or a trustee of a trust, partnership or other entity affiliated with the Company that is, directly or indirectly, a finance subsidiary (as such term is defined in Rule 3a-5 under the Investment Company Act of 1940) or other financing vehicle of the Company or any Subsidiary of the Company in connection with the issuance by that entity of preferred securities or other securities that are eligible to qualify for Tier 1

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capital treatment (or its then equivalent) for purposes of the capital adequacy guidelines of the Federal Reserve, as then in effect and applicable to the Company (or, if the Company is not a bank holding company, such guidelines applied to the Company as if the Company were subject to such guidelines); <u>provided</u>, <u>however</u>, that the inability of the Company to treat all or any portion of the Additional Junior Indebtedness as Tier 1 capital shall not disqualify it as Additional Junior Indebtedness if such inability results from the Company having cumulative preferred stock, minority interests in consolidated subsidiaries, or any other class of security or interest which the Federal Reserve now or may hereafter accord Tier 1 capital treatment (including the Debentures) in excess of the amount which may qualify for treatment as Tier 1 capital under applicable capital adequacy guidelines.

"<u>Additional Sums</u>" has the meaning set forth in Section 3.6.

"<u>Affiliate</u>" has the same meaning as given to that term in Rule 405 of the Securities Act or any successor rule thereunder.

"<u>Authenticating Agent</u>" means any agent or agents of the Trustee which at the time shall be appointed and acting pursuant to Section 6.12.

"<u>Bankruptcy Law</u>" means Title 11, U.S. Code, or any similar federal or state law for the relief of debtors.

"<u>Board of Directors</u>" means the board of directors or the executive committee or any other duly authorized designated officers of the Company.

"<u>Board Resolution</u>" means a copy of a resolution certified by the Secretary or an Assistant Secretary of the Company to have been duly adopted by the Board of Directors and to be in full force and effect on the date of such certification and delivered to the Trustee.

"<u>Business Day</u>" means any day other than a Saturday, Sunday or any other day on which banking institutions in New York City or Wilmington, Delaware are permitted or required by any applicable law or executive order to close.

"<u>Capital Securities</u>" means undivided beneficial interests in the assets of the Trust which rank *pari passu* with Common Securities issued by the Trust; <u>provided</u>, <u>however</u>, that upon the occurrence and continuance of an Event of Default (as defined in the Declaration), the rights of holders of such Common Securities to payment in respect of distributions and payments upon liquidation, redemption and otherwise are subordinated to the rights of holders of such Capital Securities.

"<u>Capital Securities Guarantee</u>" means the guarantee agreement that the Company enters into with Wilmington Trust Company, as guarantee trustee, or other Persons that operates directly or indirectly for the benefit of holders of Capital Securities of the Trust.

"<u>Capital Treatment Event</u>" means the receipt by the Company and the Trust of an opinion of counsel experienced in such matters to the effect that, as a result of the occurrence of any amendment to, or change (including any announced prospective change) in, the laws, rules or regulations of the United States or any political subdivision thereof or therein, or as the result of any official or administrative

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pronouncement or action or decision interpreting or applying such laws, rules or regulations, which amendment or change is effective or which pronouncement, action or decision is announced on or after the date of original issuance of the Debentures, there is more than an insubstantial risk that the Company will not, within 90 days of the date of such opinion, be entitled to treat an amount equal to the aggregate liquidation amount of the Capital Securities as "Tier 1 Capital" (or its then equivalent) for purposes of the capital adequacy guidelines of the Federal Reserve, as then in effect and applicable to the Company (or if the Company is not a bank holding company or otherwise is not subject to the Federal Reserve's risk-based capital adequacy guidelines, such guidelines applied to the Company as if the Company were subject to such guidelines); <u>provided</u>, <u>however</u>, that the inability of the Company to treat all or any portion of the liquidation amount of the Capital Securities as Tier l Capital shall not constitute the basis for a Capital Treatment Event, if such inability results from the Company having cumulative preferred stock, minority interests in consolidated subsidiaries, or any other class of security or interest which the Federal Reserve or OTS, as applicable, may now or hereafter accord Tier 1 Capital treatment in excess of the amount which may now or hereafter qualify for treatment as Tier 1 Capital under applicable capital adequacy guidelines; <u>provided further</u>, <u>however</u>, that the distribution of Debentures in connection with the liquidation of the Trust shall not in and of itself constitute a Capital Treatment Event unless such liquidation shall have occurred in connection with a Tax Event or an Investment Company Event.

"<u>Certificate</u>" means a certificate signed by any one of the principal executive officer, the principal financial officer or the principal accounting officer of the Company.

"<u>Common Securities</u>" means undivided beneficial interests in the assets of the Trust which rank *pari passu* with Capital Securities issued by the Trust; <u>provided</u>, <u>however</u>, that upon the occurrence and continuance of an Event of Default (as defined in the Declaration), the rights of holders of such Common Securities to payment in respect of distributions and payments upon liquidation, redemption and otherwise are subordinated to the rights of holders of such Capital Securities.

"<u>Company</u>" means Lincoln Bancorp, an Iowa corporation, and, subject to the provisions of Article XI, shall include its successors and assigns.

"<u>Coupon Rate</u>" has the meaning set forth in Section 2.8.

"<u>Debenture</u>" or "<u>Debentures</u>" has the meaning stated in the first recital of this Indenture.

"<u>Debenture Register</u>" has the meaning specified in Section 2.5.

"<u>Declaration</u>" means the Amended and Restated Declaration of Trust of the Trust, as amended or supplemented from time to time.

"<u>Default</u>" means any event, act or condition that with notice or lapse of time, or both, would constitute an Event of Default.

"<u>Defaulted Interest</u>" has the meaning set forth in Section 2.8.

"<u>Distribution Period</u>" means (i) with respect to interest paid on the first Interest Payment Date, the period beginning on (and including) the date of original issuance and ending on (but excluding) the

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Interest Payment Date in September 2007 and (ii) thereafter, with respect to interest paid on each successive Interest Payment Date, the period beginning on (and including) the preceding Interest Payment Date and ending on (but excluding) such current Interest Payment Date.

"<u>Determination Date</u>" has the meaning set forth in Section 2.10.

"<u>Event of Default</u>" means any event specified in Section 5.1, continued for the period of time, if any, and after the giving of the notice, if any, therein designated.

"<u>Extension Period</u>" has the meaning set forth in Section 2.11.

"<u>Federal Reserve</u>" means the Board of Governors of the Federal Reserve System, or its designated district bank, as applicable, and any successor federal agency that is primarily responsible for regulating the activities of bank holding companies.

"<u>Indenture</u>" means this instrument as originally executed or, if amended or supplemented as herein provided, as so amended or supplemented, or both.

"<u>Institutional Trustee</u>" has the meaning set forth in the Declaration.

"<u>Interest Payment Date</u>" means March 15, June 15, September 15 and December 15 of each year during the term of this Indenture, or if such day is not a Business Day, then the next succeeding Business Day (it being understood that interest accrues for any such non-Business Day), commencing in September 2007.

"<u>Interest Rate</u>" means for the Distribution Period beginning on (and including) the date of original issuance and ending on (but excluding) the Interest Payment Date in September 2007 the rate per annum of 6.80%, and for each Distribution Period beginning on or after the Interest Payment Date in September 2007, the Coupon Rate for such Distribution Period.

"<u>Investment Company Event</u>" means the receipt by the Company and the Trust of an opinion of counsel experienced in such matters to the effect that, as a result of the occurrence of a change in law or regulation or written change (including any announced prospective change) in interpretation or application of law or regulation by any legislative body, court, governmental agency or regulatory authority, there is more than an insubstantial risk that the Trust is or, within 90 days of the date of such opinion will be considered an "investment company" that is required to be registered under the Investment Company Act of 1940, as amended which change or prospective change becomes effective or would become effective, as the case may be, on or after the date of the issuance of the Debentures.

"<u>Liquidation Amount</u>" means the stated amount of $1,000.00 per Trust Security.

"<u>Maturity Date</u>" means September 15, 2037.

"<u>Officers' Certificate</u>" means a certificate signed by the Chairman of the Board, the Chief Executive Officer, the Vice Chairman, the President, any Managing Director or any Vice President, and by the Treasurer, an Assistant Treasurer, the Comptroller, an Assistant Comptroller, the Secretary or an

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Assistant Secretary of the Company, and delivered to the Trustee. Each such certificate shall include the statements provided for in Section 14.6 if and to the extent required by the provisions of such Section.

"<u>Opinion of Counsel</u>" means an opinion in writing signed by legal counsel, who may be an employee of or counsel to the Company, or may be other counsel reasonably satisfactory to the Trustee. Each such opinion shall include the statements provided for in Section 14.6 if and to the extent required by the provisions of such Section.

"<u>OTS</u>" means the Office of Thrift Supervision and any successor federal agency that is primarily responsible for regulating the activities of savings and loan holding companies.

The term "<u>outstanding</u>," when used with reference to Debentures, means, subject to the provisions of Section 7.4, as of any particular time, all Debentures authenticated and delivered by the Trustee or the Authenticating Agent under this Indenture, except:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;Debentures theretofore canceled by the Trustee or the Authenticating Agent or delivered to the Trustee for cancellation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;Debentures, or portions thereof, for the payment or redemption of which moneys in the necessary amount shall have been deposited in trust with the Trustee or with any paying agent (other than the Company) or shall have been set aside and segregated in trust by the Company (if the Company shall act as its own paying agent); <u>provided</u>, <u>however</u>, that, if such Debentures, or portions thereof, are to be redeemed prior to maturity thereof, notice of such redemption shall have been given as provided in Section 10.3 or provision satisfactory to the Trustee shall have been made for giving such notice; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;Debentures paid pursuant to Section 2.6 or in lieu of or in substitution for which other Debentures shall have been authenticated and delivered pursuant to the terms of Section 2.6 unless proof satisfactory to the Company and the Trustee is presented that any such Debentures are held by bona fide holders in due course.

"<u>Person</u>" means any individual, corporation, limited liability company, partnership, joint venture, association, joint-stock company, trust, unincorporated organization or government or any agency or political subdivision thereof.

"<u>Predecessor Security</u>" of any particular Debenture means every previous Debenture evidencing all or a portion of the same debt as that evidenced by such particular Debenture; and, for purposes of this definition, any Debenture authenticated and delivered under Section 2.6 in lieu of a lost, destroyed or stolen Debenture shall be deemed to evidence the same debt as the lost, destroyed or stolen Debenture.

"<u>Principal Office of the Trustee</u>," or other similar term, means the office of the Trustee, at which at any particular time its corporate trust business shall be principally administered, which at the time of the execution of this Indenture shall be Rodney Square North, 1100 North Market Street, Wilmington, Delaware 19890-1600, Attention: Corporate Trust Administration.

"<u>Redemption Date</u>" has the meaning set forth in Section 10.1.

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"<u>Redemption Price</u>" means 100% of the principal amount of the Debentures being redeemed, plus accrued and unpaid interest (including any Additional Interest) on such Debentures to the Redemption Date.

"<u>Responsible Officer</u>" means, with respect to the Trustee, any officer within the Principal Office of the Trustee, including any vice-president, any assistant vice-president, any secretary, any assistant secretary, the treasurer, any assistant treasurer, any trust officer or other officer of the Principal Trust Office of the Trustee customarily performing functions similar to those performed by any of the above designated officers and also means, with respect to a particular corporate trust matter, any other officer to whom such matter is referred because of that officer's knowledge of and familiarity with the particular subject.

"<u>Reuters Page LIBOR01</u>" has the meaning set forth in Section 2.10.

"<u>Securities Act</u>" means the Securities Act of 1933, as amended from time to time or any successor legislation.

"<u>Securityholder</u>," "holder of Debentures," or other similar terms, means any Person in whose name at the time a particular Debenture is registered on the register kept by the Company or the Trustee for that purpose in accordance with the terms hereof.

"<u>Senior Indebtedness</u>" means, with respect to the Company, (i) the principal, premium, if any, and interest in respect of (A) indebtedness of the Company for all borrowed and purchased money and (B) indebtedness evidenced by securities, debentures, notes, bonds or other similar instruments issued by the Company; (ii) all capital lease obligations of the Company; (iii) all obligations of the Company issued or assumed as the deferred purchase price of property, all conditional sale obligations of the Company and all obligations of the Company under any title retention agreement; (iv) all obligations of the Company for the reimbursement of any letter of credit, any banker's acceptance, any security purchase facility, any repurchase agreement or similar arrangement, any interest rate swap, any other hedging arrangement, any obligation under options or any similar credit or other transaction; (v) all obligations of the Company associated with derivative products such as interest and foreign exchange rate contracts, commodity contracts, and similar arrangements; (vi) all obligations of the type referred to in clauses (i) through (v) above of other Persons for the payment of which the Company is responsible or liable as obligor, guarantor or otherwise including, without limitation, similar obligations arising from off-balance sheet guarantees and direct credit substitutes; and (vii) all obligations of the type referred to in clauses (i) through (vi) above of other Persons secured by any lien on any property or asset of the Company (whether or not such obligation is assumed by the Company), whether incurred on or prior to the date of this Indenture or thereafter incurred. Notwithstanding the foregoing, "Senior Indebtedness" shall not include (1) any Additional Junior Indebtedness, (2) Debentures issued pursuant to this Indenture and guarantees in respect of such Debentures, (3) trade accounts payable of the Company arising in the ordinary course of business (such trade accounts payable being *pari passu* in right of payment to the Debentures), or (4) obligations with respect to which (a) in the instrument creating or evidencing the same or pursuant to which the same is outstanding, it is provided that such obligations are *pari passu*, junior or otherwise not superior in right of payment to the Debentures and (b) the Company, prior to the issuance thereof, has

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notified (and, if then required under the applicable guidelines of the regulating entity, has received approval from) the Federal Reserve (if the Company is a bank holding company) or the OTS (if the Company is a savings and loan holding company). Senior Indebtedness shall continue to be Senior Indebtedness and be entitled to the subordination provisions irrespective of any amendment, modification or waiver of any term of such Senior Indebtedness.

"<u>Special Event</u>" means any of a Capital Treatment Event, an Investment Company Event or a Tax Event.

"<u>Special Redemption Date</u>" has the meaning set forth in Section 10.2.

"<u>Special Redemption Price</u>" means the price set forth in the following table for any Special Redemption Date that occurs on the date indicated below (or if such day is not a Business Day, then the next succeeding Business Day), expressed as the percentage of the principal amount of the Debentures being redeemed:

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| | |
|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**<u>Month in which Special Redemption Date Occurs</u>** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**<u>Special Redemption Price</u>** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;September 2007 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;104.625% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;December 2007 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;104.300% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;March 2008 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;104.000% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;June 2008 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;103.650% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;September 2008 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;103.350% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;December 2008 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;103.000% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;March 2009 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;102.700% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;June 2009 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;102.350% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;September 2009 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;102.050% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;December 2009 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;101.700% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;March 2010 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;101.400% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;June 2010 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;101.050% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;September 2010 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;100.750% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;December 2010 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;100.450% |

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| | |
|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;March 2011 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;100.200% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;June 2011 and thereafter | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;100.000% |

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plus, in each case, accrued and unpaid interest (including any Additional Interest) on such Debentures to the Special Redemption Date.

"<u>Subsidiary</u>" means with respect to any Person, (i) any corporation at least a majority of the outstanding voting stock of which is owned, directly or indirectly, by such Person or by one or more of its Subsidiaries, or by such Person and one or more of its Subsidiaries, (ii) any general partnership, joint venture or similar entity, at least a majority of the outstanding partnership or similar interests of which shall at the time be owned by such Person, or by one or more of its Subsidiaries, or by such Person and one or more of its Subsidiaries and (iii) any limited partnership of which such Person or any of its Subsidiaries is a general partner. For the purposes of this definition, "voting stock" means shares, interests, participations or other equivalents in the equity interest (however designated) in such Person having ordinary voting power for the election of a majority of the directors (or the equivalent) of such Person, other than shares, interests, participations or other equivalents having such power only by reason of the occurrence of a contingency.

"<u>Tax Event</u>" means the receipt by the Company and the Trust of an opinion of counsel experienced in such matters to the effect that, as a result of any amendment to or change (including any announced prospective change) in the laws or any regulations thereunder of the United States or any political subdivision or taxing authority thereof or therein, or as a result of any official administrative pronouncement (including any private letter ruling, technical advice memorandum, field service advice, regulatory procedure, notice or announcement, including any notice or announcement of intent to adopt such procedures or regulations) (an "<u>Administrative Action</u>") or judicial decision interpreting or applying such laws or regulations, regardless of whether such Administrative Action or judicial decision is issued to or in connection with a proceeding involving the Company or the Trust and whether or not subject to review or appeal, which amendment, clarification, change, Administrative Action or decision is enacted, promulgated or announced, in each case on or after the date of original issuance of the Debentures, there is more than an insubstantial risk that: (i) the Trust is, or will be within 90 days of the date of such opinion, subject to United States federal income tax with respect to income received or accrued on the Debentures; (ii) interest payable by the Company on the Debentures is not, or within 90 days of the date of such opinion, will not be, deductible by the Company, in whole or in part, for United States federal income tax purposes; or (iii) the Trust is, or will be within 90 days of the date of such opinion, subject to more than a de minimis amount of other taxes, duties or other governmental charges.

"<u>3-Month LIBOR</u>" has the meaning set forth in Section 2.10.

"<u>Trust</u>" shall mean Lincoln Bancorp Capital Trust II, a Delaware statutory trust, or any other similar trust created for the purpose of issuing Capital Securities in connection with the issuance of Debentures under this Indenture, of which the Company is the sponsor.

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"<u>Trust Securities</u>" means Common Securities and Capital Securities of the Trust.

"<u>Trustee</u>" means Wilmington Trust Company, and, subject to the provisions of Article VI hereof, shall also include its successors and assigns as Trustee hereunder.

**ARTICLE II.**

**<u>DEBENTURES</u>**

**Section 2.1.&nbsp;&nbsp;&nbsp;&nbsp;<u>Authentication and Dating</u>.** Upon the execution and delivery of this Indenture, or from time to time thereafter, Debentures in an aggregate principal amount not in excess of $9,279,000.00 may be executed and delivered by the Company to the Trustee for authentication, and the Trustee, upon receipt of a written authentication order from the Company, shall thereupon authenticate and make available for delivery said Debentures to or upon the written order of the Company, signed by its Chairman of the Board of Directors, Chief Executive Officer, Vice Chairman, the President, one of its Managing Directors or one of its Vice Presidents without any further action by the Company hereunder. Notwithstanding anything to the contrary contained herein, the Trustee shall be fully protected in relying upon the aforementioned authentication order and written order in authenticating and delivering said Debentures. In authenticating such Debentures, and accepting the additional responsibilities under this Indenture in relation to such Debentures, the Trustee shall be entitled to receive, and (subject to Section 6.1) shall be fully protected in relying upon:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;a copy of any Board Resolution or Board Resolutions relating thereto and, if applicable, an appropriate record of any action taken pursuant to such resolution, in each case certified by the Secretary or an Assistant Secretary of the Company, as the case may be; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;an Opinion of Counsel prepared in accordance with Section 14.6 which shall also state:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)&nbsp;&nbsp;&nbsp;&nbsp;that such Debentures, when authenticated and delivered by the Trustee and issued by the Company in each case in the manner and subject to any conditions specified in such Opinion of Counsel, will constitute valid and legally binding obligations of the Company, subject to or limited by applicable bankruptcy, insolvency, reorganization, conservatorship, receivership, moratorium and other statutory or decisional laws relating to or affecting creditors' rights or the reorganization of financial institutions (including, without limitation, preference and fraudulent conveyance or transfer laws), heretofore or hereafter enacted or in effect, affecting the rights of creditors generally; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)&nbsp;&nbsp;&nbsp;&nbsp;that all laws and requirements in respect of the execution and delivery by the Company of the Debentures have been complied with and that authentication and delivery of the Debentures by the Trustee will not violate the terms of this Indenture.

The Trustee shall have the right to decline to authenticate and deliver any Debentures under this Section if the Trustee, being advised in writing by counsel, determines that such action may not lawfully be taken or if a Responsible Officer of the Trustee in good faith shall determine that such action would expose the Trustee to personal liability to existing holders.

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The definitive Debentures shall be typed, printed, lithographed or engraved on steel engraved borders or may be produced in any other manner, all as determined by the officers executing such Debentures, as evidenced by their execution of such Debentures.

**Section 2.2.&nbsp;&nbsp;&nbsp;&nbsp;<u>Form of Trustee's Certificate of Authentication</u>.** The Trustee's certificate of authentication on all Debentures shall be in substantially the following form:

This is one of the Debentures referred to in the within-mentioned Indenture.

WILMINGTON TRUST COMPANY, as Trustee

By

Authorized Signer

**Section 2.3.&nbsp;&nbsp;&nbsp;&nbsp;<u>Form and Denomination of Debentures</u>.** The Debentures shall be substantially in the form of Exhibit A attached hereto. The Debentures shall be in registered, certificated form without coupons and in minimum denominations of $100,000.00 and any multiple of $1,000.00 in excess thereof. Any attempted transfer of the Debentures in a block having an aggregate principal amount of less than $100,000.00 shall be deemed to be void and of no legal effect whatsoever. Any such purported transferee shall be deemed not to be a holder of such Debentures for any purpose, including, but not limited to the receipt of payments on such Debentures, and such purported transferee shall be deemed to have no interest whatsoever in such Debentures. The Debentures shall be numbered, lettered, or otherwise distinguished in such manner or in accordance with such plans as the officers executing the same may determine with the approval of the Trustee as evidenced by the execution and authentication thereof.

**Section 2.4.&nbsp;&nbsp;&nbsp;&nbsp;<u>Execution of Debentures</u>.** The Debentures shall be signed in the name and on behalf of the Company by the manual or facsimile signature of its Chairman of the Board of Directors, Chief Executive Officer, Vice Chairman, President, one of its Managing Directors or one of its Executive Vice Presidents, Senior Vice Presidents or Vice Presidents. Only such Debentures as shall bear thereon a certificate of authentication substantially in the form herein before recited, executed by the Trustee or the Authenticating Agent by the manual signature of an authorized signer, shall be entitled to the benefits of this Indenture or be valid or obligatory for any purpose. Such certificate by the Trustee or the Authenticating Agent upon any Debenture executed by the Company shall be conclusive evidence that the Debenture so authenticated has been duly authenticated and delivered hereunder and that the holder is entitled to the benefits of this Indenture.

In case any officer of the Company who shall have signed any of the Debentures shall cease to be such officer before the Debentures so signed shall have been authenticated and delivered by the Trustee or the Authenticating Agent, or disposed of by the Company, such Debentures nevertheless may be authenticated and delivered or disposed of as though the Person who signed such Debentures had not ceased to be such officer of the Company; and any Debenture may be signed on behalf of the Company by such Persons as, at the actual date of the execution of such Debenture, shall be the proper officers of the Company, although at the date of the execution of this Indenture any such person was not such an officer.

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Every Debenture shall be dated the date of its authentication.

**Section 2.5.&nbsp;&nbsp;&nbsp;&nbsp;<u>Exchange and Registration of Transfer of Debentures</u>.** The Company shall cause to be kept, at the office or agency maintained for the purpose of registration of transfer and for exchange as provided in Section 3.2, a register (the "<u>Debenture Register</u>") for the Debentures issued hereunder in which, subject to such reasonable regulations as it may prescribe, the Company shall provide for the registration and transfer of all Debentures as in this Article II provided. The Debenture Register shall be in written form or in any other form capable of being converted into written form within a reasonable time.

Debentures to be exchanged may be surrendered at the Principal Office of the Trustee or at any office or agency to be maintained by the Company for such purpose as provided in Section 3.2, and the Company shall execute, the Company or the Trustee shall register and the Trustee or the Authenticating Agent shall authenticate and make available for delivery in exchange therefor the Debenture or Debentures which the Securityholder making the exchange shall be entitled to receive. Upon due presentment for registration of transfer of any Debenture at the Principal Office of the Trustee or at any office or agency of the Company maintained for such purpose as provided in Section 3.2, the Company shall execute, the Company or the Trustee shall register and the Trustee or the Authenticating Agent shall authenticate and make available for delivery in the name of the transferee or transferees a new Debenture for a like aggregate principal amount. Registration or registration of transfer of any Debenture by the Trustee or by any agent of the Company appointed pursuant to Section 3.2, and delivery of such Debenture, shall be deemed to complete the registration or registration of transfer of such Debenture.

All Debentures presented for registration of transfer or for exchange or payment shall (if so required by the Company or the Trustee or the Authenticating Agent) be duly endorsed by, or be accompanied by a written instrument or instruments of transfer in form satisfactory to the Company and the Trustee or the Authenticating Agent duly executed by the holder or his attorney duly authorized in writing.

No service charge shall be made for any exchange or registration of transfer of Debentures, but the Company or the Trustee may require payment of a sum sufficient to cover any tax, fee or other governmental charge that may be imposed in connection therewith.

The Company or the Trustee shall not be required to exchange or register a transfer of any Debenture for a period of 15 days next preceding the date of selection of Debentures for redemption.

Notwithstanding anything herein to the contrary, Debentures may not be transferred except in compliance with the restricted securities legend set forth below, unless otherwise determined by the Company, upon the advice of counsel expert in securities law, in accordance with applicable law:

THIS SECURITY IS NOT A SAVINGS ACCOUNT OR DEPOSIT AND IT IS NOT INSURED BY THE UNITED STATES OR ANY AGENCY OR FUND OF THE UNITED STATES, INCLUDING THE FEDERAL DEPOSIT INSURANCE CORPORATION.

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THIS SECURITY HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT"), ANY STATE SECURITIES LAWS OR ANY OTHER APPLICABLE SECURITIES LAW. NEITHER THIS SECURITY NOR ANY INTEREST OR PARTICIPATION HEREIN MAY BE REOFFERED, SOLD, ASSIGNED, TRANSFERRED, PLEDGED, ENCUMBERED OR OTHERWISE DISPOSED OF IN THE ABSENCE OF SUCH REGISTRATION OR UNLESS SUCH TRANSACTION IS EXEMPT FROM, OR NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND ANY APPLICABLE STATE SECURITIES LAWS. THE HOLDER OF THIS SECURITY BY ITS ACCEPTANCE HEREOF AGREES TO OFFER, SELL OR OTHERWISE TRANSFER THIS SECURITY ONLY (A) TO THE COMPANY, (B) PURSUANT TO A REGISTRATION STATEMENT THAT HAS BEEN DECLARED EFFECTIVE UNDER THE SECURITIES ACT, (C) TO A PERSON WHOM THE SELLER REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER IN A TRANSACTION MEETING THE REQUIREMENTS OF RULE 144A SO LONG AS THIS SECURITY IS ELIGIBLE FOR RESALE PURSUANT TO RULE 144A IN ACCORDANCE WITH RULE 144A, (D) TO A NON-U.S. PERSON IN AN OFFSHORE TRANSACTION IN ACCORDANCE WITH RULE 903 OR RULE 904 (AS APPLICABLE) OF REGULATION S UNDER THE SECURITIES ACT, (E) TO AN INSTITUTIONAL "ACCREDITED INVESTOR" WITHIN THE MEANING OF SUBPARAGRAPH (A) OF RULE 501 UNDER THE SECURITIES ACT THAT IS ACQUIRING THIS SECURITY FOR ITS OWN ACCOUNT, OR FOR THE ACCOUNT OF SUCH AN INSTITUTIONAL ACCREDITED INVESTOR, FOR INVESTMENT PURPOSES AND NOT WITH A VIEW TO, OR FOR OFFER OR SALE IN CONNECTION WITH, ANY DISTRIBUTION IN VIOLATION OF THE SECURITIES ACT, OR (F) PURSUANT TO ANY OTHER AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT, SUBJECT TO THE COMPANY'S RIGHT PRIOR TO ANY SUCH OFFER, SALE OR TRANSFER TO REQUIRE THE DELIVERY OF AN OPINION OF COUNSEL, CERTIFICATION AND/OR OTHER INFORMATION SATISFACTORY TO IT IN ACCORDANCE WITH THE INDENTURE, A COPY OF WHICH MAY BE OBTAINED FROM THE COMPANY.

THE HOLDER OF THIS SECURITY BY ITS ACCEPTANCE HEREOF ALSO AGREES, REPRESENTS AND WARRANTS THAT IT IS NOT AN EMPLOYEE BENEFIT, INDIVIDUAL RETIREMENT ACCOUNT OR OTHER PLAN OR ARRANGEMENT SUBJECT TO TITLE I OF THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED ("ERISA"), OR SECTION 4975 OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE "CODE") (EACH A "PLAN"), OR AN ENTITY WHOSE UNDERLYING ASSETS INCLUDE "PLAN ASSETS" BY REASON OF ANY PLAN'S INVESTMENT IN THE ENTITY, AND NO PERSON INVESTING "PLAN ASSETS" OF ANY PLAN MAY ACQUIRE OR HOLD THE SECURITIES OR ANY INTEREST THEREIN, UNLESS SUCH PURCHASER OR HOLDER IS ELIGIBLE FOR EXEMPTIVE RELIEF AVAILABLE UNDER U.S. DEPARTMENT OF LABOR PROHIBITED TRANSACTION CLASS EXEMPTION 96-23, 95-60, 91-38, 90-1 OR 84-14 OR ANOTHER APPLICABLE EXEMPTION OR ITS PURCHASE AND HOLDING OF THIS SECURITY IS NOT PROHIBITED BY SECTION 406 OF ERISA OR SECTION 4975 OF THE CODE WITH RESPECT TO SUCH PURCHASE OR HOLDING. ANY PURCHASER OR HOLDER OF THE SECURITIES OR ANY INTEREST THEREIN WILL BE DEEMED TO HAVE REPRESENTED BY ITS PURCHASE AND

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HOLDING THEREOF THAT EITHER (i) IT IS NOT AN EMPLOYEE BENEFIT PLAN WITHIN THE MEANING OF SECTION 3(3) OF ERISA, OR A PLAN TO WHICH SECTION 4975 OF THE CODE IS APPLICABLE, A TRUSTEE OR OTHER PERSON ACTING ON BEHALF OF AN EMPLOYEE BENEFIT PLAN OR PLAN, OR ANY OTHER PERSON OR ENTITY USING THE ASSETS OF ANY EMPLOYEE BENEFIT PLAN OR PLAN TO FINANCE SUCH PURCHASE, OR (ii) SUCH PURCHASE WILL NOT RESULT IN A PROHIBITED TRANSACTION UNDER SECTION 406 OF ERISA OR SECTION 4975 OF THE CODE FOR WHICH THERE IS NO APPLICABLE STATUTORY OR ADMINISTRATIVE EXEMPTION.

THIS SECURITY WILL BE ISSUED AND MAY BE TRANSFERRED ONLY IN BLOCKS HAVING AN AGGREGATE PRINCIPAL AMOUNT OF NOT LESS THAN $100,000.00 AND MULTIPLES OF $1,000.00 IN EXCESS THEREOF. ANY ATTEMPTED TRANSFER OF THIS SECURITY IN A BLOCK HAVING AN AGGREGATE PRINCIPAL AMOUNT OF LESS THAN $100,000.00 SHALL BE DEEMED TO BE VOID AND OF NO LEGAL EFFECT WHATSOEVER.

THE HOLDER OF THIS SECURITY AGREES THAT IT WILL COMPLY WITH THE FOREGOING RESTRICTIONS.

**Section 2.6.&nbsp;&nbsp;&nbsp;&nbsp;<u>Mutilated, Destroyed, Lost or Stolen Debentures</u>.** In case any Debenture shall become mutilated or be destroyed, lost or stolen, the Company shall execute, and upon its written request the Trustee shall authenticate and deliver, a new Debenture bearing a number not contemporaneously outstanding, in exchange and substitution for the mutilated Debenture, or in lieu of and in substitution for the Debenture so destroyed, lost or stolen. In every case the applicant for a substituted Debenture shall furnish to the Company and the Trustee such security or indemnity as may be required by them to save each of them harmless, and, in every case of destruction, loss or theft, the applicant shall also furnish to the Company and the Trustee evidence to their satisfaction of the destruction, loss or theft of such Debenture and of the ownership thereof.

The Trustee may authenticate any such substituted Debenture and deliver the same upon the written request or authorization of any officer of the Company. Upon the issuance of any substituted Debenture, the Company may require the payment of a sum sufficient to cover any tax or other governmental charge that may be imposed in relation thereto and any other expenses connected therewith. In case any Debenture which has matured or is about to mature or has been called for redemption in full shall become mutilated or be destroyed, lost or stolen, the Company may, instead of issuing a substitute Debenture, pay or authorize the payment of the same (without surrender thereof except in the case of a mutilated Debenture) if the applicant for such payment shall furnish to the Company and the Trustee such security or indemnity as may be required by them to save each of them harmless and, in case of destruction, loss or theft, evidence satisfactory to the Company and to the Trustee of the destruction, loss or theft of such Debenture and of the ownership thereof.

Every substituted Debenture issued pursuant to the provisions of this Section 2.6 by virtue of the fact that any such Debenture is destroyed, lost or stolen shall constitute an additional contractual obligation of the Company, whether or not the destroyed, lost or stolen Debenture shall be found at any time, and shall be entitled to all the benefits of this Indenture equally and proportionately with any and all

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other Debentures duly issued hereunder. All Debentures shall be held and owned upon the express condition that, to the extent permitted by applicable law, the foregoing provisions are exclusive with respect to the replacement or payment of mutilated, destroyed, lost or stolen Debentures and shall preclude any and all other rights or remedies notwithstanding any law or statute existing or hereafter enacted to the contrary with respect to the replacement or payment of negotiable instruments or other securities without their surrender.

**Section 2.7.&nbsp;&nbsp;&nbsp;&nbsp;<u>Temporary Debentures</u>.** Pending the preparation of definitive Debentures, the Company may execute and the Trustee shall authenticate and make available for delivery temporary Debentures that are typed, printed or lithographed. Temporary Debentures shall be issuable in any authorized denomination, and substantially in the form of the definitive Debentures in lieu of which they are issued but with such omissions, insertions and variations as may be appropriate for temporary Debentures, all as may be determined by the Company. Every such temporary Debenture shall be executed by the Company and be authenticated by the Trustee upon the same conditions and in substantially the same manner, and with the same effect, as the definitive Debentures. Without unreasonable delay the Company will execute and deliver to the Trustee or the Authenticating Agent definitive Debentures and thereupon any or all temporary Debentures may be surrendered in exchange therefor, at the principal corporate trust office of the Trustee or at any office or agency maintained by the Company for such purpose as provided in Section 3.2, and the Trustee or the Authenticating Agent shall authenticate and make available for delivery in exchange for such temporary Debentures a like aggregate principal amount of such definitive Debentures. Such exchange shall be made by the Company at its own expense and without any charge therefor except that in case of any such exchange involving a registration of transfer the Company may require payment of a sum sufficient to cover any tax, fee or other governmental charge that may be imposed in relation thereto. Until so exchanged, the temporary Debentures shall in all respects be entitled to the same benefits under this Indenture as definitive Debentures authenticated and delivered hereunder.

**Section 2.8.&nbsp;&nbsp;&nbsp;&nbsp;<u>Payment of Interest and Additional Interest</u>.** Interest at the Interest Rate and any Additional Interest on any Debenture that is payable, and is punctually paid or duly provided for, on any Interest Payment Date for Debentures shall be paid to the Person in whose name said Debenture (or one or more Predecessor Securities) is registered at the close of business on the regular record date for such interest installment except that interest and any Additional Interest payable on the Maturity Date shall be paid to the Person to whom principal is paid.

Each Debenture shall bear interest for the period beginning on (and including) the date of original issuance and ending on (but excluding) the Interest Payment Date in September 2007 at a rate per annum of 6.80%, and shall bear interest for each successive Distribution Period beginning on or after the Interest Payment Date in September 2007 at a rate per annum equal to the 3-Month LIBOR, determined as described in Section 2.10, plus 1.44% (the "<u>Coupon Rate</u>"), applied to the principal amount thereof, until the principal thereof becomes due and payable, and on any overdue principal and to the extent that payment of such interest is enforceable under applicable law (without duplication) on any overdue installment of interest (including Additional Interest) at the Interest Rate in effect for each applicable period compounded quarterly. Interest shall be payable (subject to any relevant Extension Period)

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quarterly in arrears on each Interest Payment Date with the first installment of interest to be paid on the Interest Payment Date in September 2007.

Any interest on any Debenture, including Additional Interest, that is payable, but is not punctually paid or duly provided for, on any Interest Payment Date (herein called "<u>Defaulted Interest</u>") shall forthwith cease to be payable to the registered holder on the relevant regular record date by virtue of having been such holder; and such Defaulted Interest shall be paid by the Company to the Persons in whose names such Debentures (or their respective Predecessor Securities) are registered at the close of business on a special record date for the payment of such Defaulted Interest, which shall be fixed in the following manner: the Company shall notify the Trustee in writing at least 25 days prior to the date of the proposed payment of the amount of Defaulted Interest proposed to be paid on each such Debenture and the date of the proposed payment, and at the same time the Company shall deposit with the Trustee an amount of money equal to the aggregate amount proposed to be paid in respect of such Defaulted Interest or shall make arrangements satisfactory to the Trustee for such deposit prior to the date of the proposed payment, such money when deposited to be held in trust for the benefit of the Persons entitled to such Defaulted Interest as in this clause provided. Thereupon the Trustee shall fix a special record date for the payment of such Defaulted Interest which shall not be more than 15 nor less than 10 days prior to the date of the proposed payment and not less than 10 days after the receipt by the Trustee of the notice of the proposed payment. The Trustee shall promptly notify the Company of such special record date and, in the name and at the expense of the Company, shall cause notice of the proposed payment of such Defaulted Interest and the special record date therefor to be mailed, first class postage prepaid, to each Securityholder at its address as it appears in the Debenture Register, not less than 10 days prior to such special record date. Notice of the proposed payment of such Defaulted Interest and the special record date therefor having been mailed as aforesaid, such Defaulted Interest shall be paid to the Persons in whose names such Debentures (or their respective Predecessor Securities) are registered on such special record date and shall be no longer payable.

The Company may make payment of any Defaulted Interest on any Debentures in any other lawful manner after notice given by the Company to the Trustee of the proposed payment method; <u>provided</u>, <u>however</u>, the Trustee in its sole discretion deems such payment method to be practical.

Any interest (including Additional Interest) scheduled to become payable on an Interest Payment Date occurring during an Extension Period shall not be Defaulted Interest and shall be payable on such other date as may be specified in the terms of such Debentures.

The term "regular record date" as used in this Section shall mean the close of business on the 15th Business Day preceding the applicable Interest Payment Date.

Subject to the foregoing provisions of this Section, each Debenture delivered under this Indenture upon registration of transfer of or in exchange for or in lieu of any other Debenture shall carry the rights to interest accrued and unpaid, and to accrue, that were carried by such other Debenture.

**Section 2.9.&nbsp;&nbsp;&nbsp;&nbsp;<u>Cancellation of Debentures Paid, etc</u>.** All Debentures surrendered for the purpose of payment, redemption, exchange or registration of transfer, shall, if surrendered to the

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Company or any paying agent, be surrendered to the Trustee and promptly canceled by it, or, if surrendered to the Trustee or any Authenticating Agent, shall be promptly canceled by it, and no Debentures shall be issued in lieu thereof except as expressly permitted by any of the provisions of this Indenture. All Debentures canceled by any Authenticating Agent shall be delivered to the Trustee. The Trustee shall destroy all canceled Debentures unless the Company otherwise directs the Trustee in writing. If the Company shall acquire any of the Debentures, however, such acquisition shall not operate as a redemption or satisfaction of the indebtedness represented by such Debentures unless and until the same are surrendered to the Trustee for cancellation.

**Section 2.10.&nbsp;&nbsp;&nbsp;&nbsp;<u>Computation of Interest</u>.** The amount of interest payable for each Distribution Period will be calculated by applying the Interest Rate to the principal amount outstanding at the commencement of the Distribution Period on the basis of the actual number of days in the Distribution Period concerned divided by 360. All percentages resulting from any calculations on the Debentures will be rounded, if necessary, to the nearest one hundred-thousandth of a percentage point, with five one- millionths of a percentage point rounded upward (e.g., 9.876545% (or .09876545) being rounded to 9.87655% (or .0987655), and all dollar amounts used in or resulting from such calculation will be rounded to the nearest cent (with one-half cent being rounded upward)).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;"<u>3-Month LIBOR</u>" means the London interbank offered interest rate for three-month, U.S. dollar deposits determined by the Trustee in the following order of priority:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)&nbsp;&nbsp;&nbsp;&nbsp;the rate (expressed as a percentage per annum) for U.S. dollar deposits having a three-month maturity that appears on Reuters Page LIBOR01 as of 11:00 a.m. (London time) on the related Determination Date (as defined below). "Reuters Page LIBOR01" means the display designated as "LIBOR01" on Reuters or such other page as may replace Reuters Page LIBOR01 on that service or such other service or services as may be nominated by the British Bankers' Association as the information vendor for the purpose of displaying London interbank offered rates for U.S. dollar deposits;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)&nbsp;&nbsp;&nbsp;&nbsp;if such rate cannot be identified on the related Determination Date, the Trustee will request the principal London offices of four leading banks in the London interbank market to provide such banks' offered quotations (expressed as percentages per annum) to prime banks in the London interbank market for U.S. dollar deposits having a three-month maturity as of 11:00 a.m. (London time) on such Determination Date. If at least two quotations are provided, 3-Month LIBOR will be the arithmetic mean of such quotations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3)&nbsp;&nbsp;&nbsp;&nbsp;if fewer than two such quotations are provided as requested in clause (2) above, the Trustee will request four major New York City banks to provide such banks' offered quotations (expressed as percentages per annum) to leading European banks for loans in U.S. dollars as of 11:00 a.m. (London time) on such Determination Date. If at least two such quotations are provided, 3-Month LIBOR will be the arithmetic mean of such quotations; and

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4)&nbsp;&nbsp;&nbsp;&nbsp;if fewer than two such quotations are provided as requested in clause (3) above, 3-Month LIBOR will be a 3-Month LIBOR determined with respect to the Distribution Period immediately preceding such current Distribution Period.

If the rate for U.S. dollar deposits having a three-month maturity that initially appears on Reuters Page LIBOR01 as of 11:00 a.m. (London time) on the related Determination Date is superseded on the Reuters Page LIBOR01 by a corrected rate by 12:00 noon (London time) on such Determination Date, then the corrected rate as so substituted on the applicable page will be the applicable 3-Month LIBOR for such Determination Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;The Interest Rate for any Distribution Period will at no time be higher than the maximum rate then permitted by New York law as the same may be modified by United States law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;"<u>Determination Date</u>" means the date that is two London Banking Days (i.e., a business day in which dealings in deposits in U.S. dollars are transacted in the London interbank market) preceding the particular Distribution Period for which a Coupon Rate is being determined.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;The Trustee shall notify the Company, the Institutional Trustee and any securities exchange or interdealer quotation system on which the Capital Securities are listed, of the Coupon Rate and the Determination Date for each Distribution Period, in each case as soon as practicable after the determination thereof but in no event later than the thirtieth (30th) day of the relevant Distribution Period. Failure to notify the Company, the Institutional Trustee or any securities exchange or interdealer quotation system, or any defect in said notice, shall not affect the obligation of the Company to make payment on the Debentures at the applicable Coupon Rate. Any error in the calculation of the Coupon Rate by the Trustee may be corrected at any time by notice delivered as above provided. Upon the request of a holder of a Debenture, the Trustee shall provide the Coupon Rate then in effect and, if determined, the Coupon Rate for the next Distribution Period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;Subject to the corrective rights set forth above, all certificates, communications, opinions, determinations, calculations, quotations and decisions given, expressed, made or obtained for the purposes of the provisions relating to the payment and calculation of interest on the Debentures and distributions on the Capital Securities by the Trustee or the Institutional Trustee will (in the absence of willful default, bad faith and manifest error) be final, conclusive and binding on the Trust, the Company and all of the holders of the Debentures and the Capital Securities, and no liability shall (in the absence of willful default, bad faith or manifest error) attach to the Trustee or the Institutional Trustee in connection with the exercise or non-exercise by either of them or their respective powers, duties and discretion.

**Section 2.11.&nbsp;&nbsp;&nbsp;&nbsp;<u>Extension of Interest Payment Period</u>.** So long as no Acceleration Event of Default has occurred and is continuing, the Company shall have the right, from time to time, and without causing an Event of Default, to defer payments of interest on the Debentures by extending the interest payment period on the Debentures at any time and from time to time during the term of the Debentures, for up to 20 consecutive quarterly periods (each such extended interest payment period, an "<u>Extension</u> <u>Period</u>"), during which Extension Period no interest (including Additional Interest) shall be due and payable (except any Additional Sums that may be due and payable). No Extension Period may end on a

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date other than an Interest Payment Date. During an Extension Period, interest will continue to accrue on the Debentures, and interest on such accrued interest will accrue at an annual rate equal to the Interest Rate in effect for such Extension Period, compounded quarterly from the date such interest would have been payable were it not for the Extension Period, to the extent permitted by law (such interest referred to herein as "<u>Additional Interest</u>"). At the end of any such Extension Period the Company shall pay all interest then accrued and unpaid on the Debentures (together with Additional Interest thereon); <u>provided</u>, <u>however</u>, that no Extension Period may extend beyond the Maturity Date; <u>provided further</u>, <u>however</u>, that during any such Extension Period, the Company shall not and shall not permit any Affiliate to (i) declare or pay any dividends or distributions on, or redeem, purchase, acquire, or make a liquidation payment with respect to, any of the Company's or such Affiliate's capital stock (other than payments of dividends or distributions to the Company) or make any guarantee payments with respect to the foregoing or (ii) make any payment of principal of or interest or premium, if any, on or repay, repurchase or redeem any debt securities of the Company or any Affiliate that rank *pari passu* in all respects with or junior in interest to the Debentures (other than, with respect to clauses (i) or (ii) above, (a) repurchases, redemptions or other acquisitions of shares of capital stock of the Company in connection with any employment contract, benefit plan or other similar arrangement with or for the benefit of one or more employees, officers, directors or consultants, in connection with a dividend reinvestment or stockholder stock purchase plan or in connection with the issuance of capital stock of the Company (or securities convertible into or exercisable for such capital stock) as consideration in an acquisition transaction entered into prior to the applicable Extension Period, (b) as a result of any exchange or conversion of any class or series of the Company's capital stock (or any capital stock of a subsidiary of the Company) for any class or series of the Company's capital stock or of any class or series of the Company's indebtedness for any class or series of the Company's capital stock, (c) the purchase of fractional interests in shares of the Company's capital stock pursuant to the conversion or exchange provisions of such capital stock or the security being converted or exchanged, (d) any declaration of a dividend in connection with any stockholders' rights plan, or the issuance of rights, stock or other property under any stockholders' rights plan, or the redemption or repurchase of rights pursuant thereto, (e) any dividend in the form of stock, warrants, options or other rights where the dividend stock or the stock issuable upon exercise of such warrants, options or other rights is the same stock as that on which the dividend is being paid or ranks *pari passu* with or junior to such stock and any cash payments in lieu of fractional shares issued in connection therewith, or (f) payments under the Capital Securities Guarantee). Prior to the termination of any Extension Period, the Company may further extend such period, provided that such period together with all such previous and further consecutive extensions thereof shall not exceed 20 consecutive quarterly periods, or extend beyond the Maturity Date. Upon the termination of any Extension Period and upon the payment of all accrued and unpaid interest and Additional Interest, the Company may commence a new Extension Period, subject to the foregoing requirements. No interest or Additional Interest shall be due and payable during an Extension Period, except at the end thereof, but each installment of interest that would otherwise have been due and payable during such Extension Period shall bear Additional Interest to the extent permitted by applicable law. The Company must give the Trustee notice of its election to begin or extend an Extension Period by the close of business at least 15 Business Days prior to the Interest Payment Date with respect to which interest on the Debentures would

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have been payable except for the election to begin or extend such Extension Period. The Trustee shall give notice of the Company's election to begin a new Extension Period to the Securityholders.

**Section 2.12.&nbsp;&nbsp;&nbsp;&nbsp;<u>CUSIP Numbers</u>.** The Company in issuing the Debentures may use "CUSIP" numbers (if then generally in use), and, if so, the Trustee shall use CUSIP numbers in notices of redemption as a convenience to Securityholders; <u>provided</u>, <u>however</u>, that any such notice may state that no representation is made as to the correctness of such numbers either as printed on the Debentures or as contained in any notice of a redemption and that reliance may be placed only on the other identification numbers printed on the Debentures, and any such redemption shall not be affected by any defect in or omission of such numbers. The Company will promptly notify the Trustee in writing of any change in the CUSIP numbers.

**ARTICLE III.**

**<u>PARTICULAR COVENANTS OF THE COMPANY</u>**

**Section 3.1. <u>Payment of Principal, Premium and Interest; Agreed Treatment of the</u> <u>Debentures</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;The Company covenants and agrees that it will duly and punctually pay or cause to be paid the principal of and premium, if any, and interest and any Additional Interest and other payments on the Debentures at the place, at the respective times and in the manner provided in this Indenture and the Debentures. Each installment of interest on the Debentures may be paid (i) by mailing checks for such interest payable to the order of the holders of Debentures entitled thereto as they appear on the registry books of the Company if a request for a wire transfer has not been received by the Company or (ii) by wire transfer to any account with a banking institution located in the United States designated in writing by such Person to the paying agent no later than the related record date. Notwithstanding the foregoing, so long as the holder of this Debenture is the Institutional Trustee, the payment of the principal of and interest on this Debenture will be made in immediately available funds at such place and to such account as may be designated by the Institutional Trustee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;The Company will treat the Debentures as indebtedness, and the amounts payable in respect of the principal amount of such Debentures as interest, for all United States federal income tax purposes. All payments in respect of such Debentures will be made free and clear of United States withholding tax to any beneficial owner thereof that has provided an Internal Revenue Service Form W8 BEN (or any substitute or successor form) establishing its non-United States status for United States federal income tax purposes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;As of the date of this Indenture, the Company has no present intention to exercise its right under Section 2.11 to defer payments of interest on the Debentures by commencing an Extension Period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;As of the date of this Indenture, the Company believes that the likelihood that it would exercise its right under Section 2.11 to defer payments of interest on the Debentures by commencing an Extension Period at any time during which the Debentures are outstanding is remote because of the restrictions that would be imposed on the Company's ability to declare or pay dividends or distributions on, or to redeem, purchase or make a liquidation payment with respect to, any of its outstanding equity

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and on the Company's ability to make any payments of principal of or interest on, or repurchase or redeem, any of its debt securities that rank *pari passu* in all respects with (or junior in interest to) the Debentures.

**Section 3.2.&nbsp;&nbsp;&nbsp;&nbsp;<u>Offices for Notices and Payments, etc</u>.** So long as any of the Debentures remain outstanding, the Company will maintain in Wilmington, Delaware, an office or agency where the Debentures may be presented for payment, an office or agency where the Debentures may be presented for registration of transfer and for exchange as in this Indenture provided and an office or agency where notices and demands to or upon the Company in respect of the Debentures or of this Indenture may be served. The Company will give to the Trustee written notice of the location of any such office or agency and of any change of location thereof. Until otherwise designated from time to time by the Company in a notice to the Trustee, or specified as contemplated by Section 2.5, such office or agency for all of the above purposes shall be the office or agency of the Trustee. In case the Company shall fail to maintain any such office or agency in Wilmington, Delaware, or shall fail to give such notice of the location or of any change in the location thereof, presentations and demands may be made and notices may be served at the Principal Office of the Trustee.

In addition to any such office or agency, the Company may from time to time designate one or more offices or agencies outside Wilmington, Delaware, where the Debentures may be presented for registration of transfer and for exchange in the manner provided in this Indenture, and the Company may from time to time rescind such designation, as the Company may deem desirable or expedient; <u>provided</u>, <u>however</u>, that no such designation or rescission shall in any manner relieve the Company of its obligation to maintain any such office or agency in Wilmington, Delaware, for the purposes above mentioned. The Company will give to the Trustee prompt written notice of any such designation or rescission thereof.

**Section 3.3.&nbsp;&nbsp;&nbsp;&nbsp;<u>Appointments to Fill Vacancies in Trustee's Office</u>.** The Company, whenever necessary to avoid or fill a vacancy in the office of Trustee, will appoint, in the manner provided in Section 6.9, a Trustee, so that there shall at all times be a Trustee hereunder.

**Section 3.4.&nbsp;&nbsp;&nbsp;&nbsp;<u>Provision as to Paying Agent</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;If the Company shall appoint a paying agent other than the Trustee, it will cause such paying agent to execute and deliver to the Trustee an instrument in which such agent shall agree with the Trustee, subject to the provision of this Section 3.4,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)&nbsp;&nbsp;&nbsp;&nbsp;that it will hold all sums held by it as such agent for the payment of the principal of and premium, if any, or interest, if any, on the Debentures (whether such sums have

been paid to it by the Company or by any other obligor on the Debentures) in trust for the benefit of the holders of the Debentures;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)&nbsp;&nbsp;&nbsp;&nbsp;that it will give the Trustee prompt written notice of any failure by the Company (or by any other obligor on the Debentures) to make any payment of the principal of and premium, if any, or interest, if any, on the Debentures when the same shall be due and payable; and

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3)&nbsp;&nbsp;&nbsp;&nbsp;that it will, at any time during the continuance of any Event of Default, upon the written request of the Trustee, forthwith pay to the Trustee all sums so held in trust by such paying agent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;If the Company shall act as its own paying agent, it will, on or before each due date of the principal of and premium, if any, or interest or other payments, if any, on the Debentures, set aside, segregate and hold in trust for the benefit of the holders of the Debentures a sum sufficient to pay such principal, premium, interest or other payments so becoming due and will notify the Trustee in writing of any failure to take such action and of any failure by the Company (or by any other obligor under the Debentures) to make any payment of the principal of and premium, if any, or interest or other payments, if any, on the Debentures when the same shall become due and payable.

Whenever the Company shall have one or more paying agents for the Debentures, it will, on or prior to each due date of the principal of and premium, if any, or interest, if any, on the Debentures, deposit with a paying agent a sum sufficient to pay the principal, premium, interest or other payments so becoming due, such sum to be held in trust for the benefit of the Persons entitled thereto and (unless such paying agent is the Trustee) the Company shall promptly notify the Trustee in writing of its action or failure to act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;Anything in this Section 3.4 to the contrary notwithstanding, the Company may, at any time, for the purpose of obtaining a satisfaction and discharge with respect to the Debentures, or for any other reason, pay, or direct any paying agent to pay to the Trustee all sums held in trust by the Company or any such paying agent, such sums to be held by the Trustee upon the trusts herein contained.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;Anything in this Section 3.4 to the contrary notwithstanding, the agreement to hold sums in trust as provided in this Section 3.4 is subject to Sections 12.3 and 12.4.

**Section 3.5.&nbsp;&nbsp;&nbsp;&nbsp;<u>Certificate to Trustee</u>.** The Company will deliver to the Trustee on or before 120 days after the end of each fiscal year, so long as Debentures are outstanding hereunder, a Certificate stating that in the course of the performance by the signers of their duties as officers of the Company they would normally have knowledge of any default during such fiscal year by the Company in the performance of any covenants contained herein, stating whether or not they have knowledge of any such default and, if so, specifying each such default of which the signers have knowledge and the nature and status thereof. A form of this Certificate is attached hereto as <u>Exhibit B</u>.

**Section 3.6.&nbsp;&nbsp;&nbsp;&nbsp;<u>Additional Sums</u>.** If and for so long as the Trust is the holder of all Debentures and the Trust is required to pay any additional taxes (including withholding taxes), duties, assessments or other governmental charges as a result of a Tax Event, the Company will pay such additional amounts ("<u>Additional Sums</u>") on the Debentures as shall be required so that the net amounts received and retained by the Trust after paying taxes (including withholding taxes), duties, assessments or other governmental charges will be equal to the amounts the Trust would have received if no such taxes, duties, assessments or other governmental charges had been imposed. Whenever in this Indenture or the Debentures there is a reference in any context to the payment of principal of or interest on the Debentures, such mention shall be deemed to include mention of payments of the Additional Sums provided for in this paragraph to the

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extent that, in such context, Additional Sums are, were or would be payable in respect thereof pursuant to the provisions of this paragraph and express mention of the payment of Additional Sums (if applicable) in any provisions hereof shall not be construed as excluding Additional Sums in those provisions hereof where such express mention is not made; <u>provided</u>, <u>however</u>, that the deferral of the payment of interest during an Extension Period pursuant to Section 2.11 shall not defer the payment of any Additional Sums that may be due and payable.

**Section 3.7.&nbsp;&nbsp;&nbsp;&nbsp;<u>Compliance with Consolidation Provisions</u>.** The Company will not, while any of the Debentures remain outstanding, consolidate with, or merge into, or merge into itself, or sell or convey all or substantially all of its property to any other Person unless the provisions of Article XI hereof are complied with.

**Section 3.8.&nbsp;&nbsp;&nbsp;&nbsp;<u>Limitation on Dividends</u>.** If Debentures are initially issued to the Trust or a trustee of such Trust in connection with the issuance of Trust Securities by the Trust (regardless of whether Debentures continue to be held by such Trust) and (i) there shall have occurred and be continuing an Event of Default, (ii) the Company shall be in default with respect to its payment of any obligations under the Capital Securities Guarantee, or (iii) the Company shall have given notice of its election to defer payments of interest on the Debentures by extending the interest payment period as provided herein and such period, or any extension thereof, shall be continuing, then the Company shall not, and shall not allow any Affiliate of the Company to, (x) declare or pay any dividends or distributions on, or redeem, purchase, acquire, or make a liquidation payment with respect to, any of the Company's capital stock or its Affiliates' capital stock (other than payments of dividends or distributions to the Company) or make any guarantee payments with respect to the foregoing or (y) make any payment of principal of or interest or premium, if any, on or repay, repurchase or redeem any debt securities of the Company or any Affiliate that rank *pari passu* in all respects with or junior in interest to the Debentures (other than, with respect to clauses (x) and (y) above, (1) repurchases, redemptions or other acquisitions of shares of capital stock of the Company in connection with any employment contract, benefit plan or other similar arrangement with or for the benefit of one or more employees, officers, directors or consultants, in connection with a dividend reinvestment or stockholder stock purchase plan or in connection with the issuance of capital stock of the Company (or securities convertible into or exercisable for such capital stock) as consideration in an acquisition transaction entered into prior to the applicable Extension Period, if any, (2) as a result of any exchange or conversion of any class or series of the Company's capital stock (or any capital stock of a subsidiary of the Company) for any class or series of the Company's capital stock or of any class or series of the Company's indebtedness for any class or series of the Company's capital stock, (3) the purchase of fractional interests in shares of the Company's capital stock pursuant to the conversion or exchange provisions of such capital stock or the security being converted or exchanged, (4) any declaration of a dividend in connection with any stockholders' rights plan, or the issuance of rights, stock or other property under any stockholders' rights plan, or the redemption or repurchase of rights pursuant thereto, (5) any dividend in the form of stock, warrants, options or other rights where the dividend stock or the stock issuable upon exercise of such warrants, options or other rights is the same stock as that on which the dividend is being paid or ranks *pari passu* with or junior to such stock and any cash payments in lieu of fractional shares issued in connection therewith, or (6) payments under the Capital Securities Guarantee).

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**Section 3.9.&nbsp;&nbsp;&nbsp;&nbsp;<u>Covenants as to the Trust</u>.** For so long as the Trust Securities remain outstanding, the Company shall maintain 100% ownership of the Common Securities; <u>provided</u>, <u>however</u>, that any permitted successor of the Company under this Indenture may succeed to the Company's ownership of such Common Securities. The Company, as owner of the Common Securities, shall, except in connection with a distribution of Debentures to the holders of Trust Securities in liquidation of the Trust, the redemption of all of the Trust Securities or certain mergers, consolidations or amalgamations, each as permitted by the Declaration, cause the Trust (a) to remain a statutory trust, (b) to otherwise continue to be classified as a grantor trust for United States federal income tax purposes, and (c) to cause each holder of Trust Securities to be treated as owning an undivided beneficial interest in the Debentures.

**Section 3.10.&nbsp;&nbsp;&nbsp;&nbsp;<u>Additional Junior Indebtedness</u>**. The Company shall not, and it shall not cause or permit any Subsidiary of the Company to, incur, issue or be obligated on any Additional Junior Indebtedness, either directly or indirectly, by way of guarantee, suretyship or otherwise, other than Additional Junior Indebtedness (i) that, by its terms, is expressly stated to be either junior and subordinate or *pari passu* in all respects to the Debentures, and (ii) of which the Company has notified (and, if then required under the applicable guidelines of the regulating entity, has received approval from) the Federal Reserve, if the Company is a bank holding company, or the OTS, if the Company is a savings and loan holding company.

**Section 3.11.&nbsp;&nbsp;&nbsp;&nbsp;<u>Subsidiary; Insured Depository Institution</u>**. So long as any of the Debentures remain outstanding, at least one operating Subsidiary of the Company shall be an insured depository institution, as such term is defined in Section 3(c)(2) of the Federal Deposit Insurance Act, as amended.

**ARTICLE IV.**

**<u>SECURITYHOLDERS' LISTS AND REPORTS</u>**

**<u>BY THE COMPANY AND THE TRUSTEE</u>**

**Section 4.1.&nbsp;&nbsp;&nbsp;&nbsp;<u>Securityholders' Lists</u>.** The Company covenants and agrees that it will furnish or cause to be furnished to the Trustee:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;on each regular record date for the Debentures, a list, in such form as the Trustee may reasonably require, of the names and addresses of the Securityholders of the Debentures as of such record date; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;at such other times as the Trustee may request in writing, within 30 days after the receipt by the Company of any such request, a list of similar form and content as of a date not more than 15 days prior to the time such list is furnished;

except that no such lists need be furnished under this Section 4.1 so long as the Trustee is in possession thereof by reason of its acting as Debenture registrar.

**Section 4.2.&nbsp;&nbsp;&nbsp;&nbsp;<u>Preservation and Disclosure of Lists</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;The Trustee shall preserve, in as current a form as is reasonably practicable, all information as to the names and addresses of the holders of Debentures (1) contained in the most recent

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list furnished to it as provided in Section 4.1 or (2) received by it in the capacity of Debentures registrar (if so acting) hereunder. The Trustee may destroy any list furnished to it as provided in Section 4.1 upon receipt of a new list so furnished.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;In case three or more holders of Debentures (hereinafter referred to as "applicants") apply in writing to the Trustee and furnish to the Trustee reasonable proof that each such applicant has owned a Debenture for a period of at least 6 months preceding the date of such application, and such application states that the applicants desire to communicate with other holders of Debentures with respect to their rights under this Indenture or under such Debentures and is accompanied by a copy of the form of proxy or other communication which such applicants propose to transmit, then the Trustee shall within 5 Business Days after the receipt of such application, at its election, either:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)&nbsp;&nbsp;&nbsp;&nbsp;afford such applicants access to the information preserved at the time by the Trustee in accordance with the provisions of subsection (a) of this Section 4.2, or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)&nbsp;&nbsp;&nbsp;&nbsp;inform such applicants as to the approximate number of holders of Debentures whose names and addresses appear in the information preserved at the time by the Trustee in accordance with the provisions of subsection (a) of this Section 4.2, and as to the approximate cost of mailing to such Securityholders the form of proxy or other communication, if any, specified in such application.

If the Trustee shall elect not to afford such applicants access to such information, the Trustee shall, upon the written request of such applicants, mail to each Securityholder whose name and address appear in the information preserved at the time by the Trustee in accordance with the provisions of subsection (a) of this Section 4.2 a copy of the form of proxy or other communication which is specified in such request with reasonable promptness after a tender to the Trustee of the material to be mailed and of payment, or provision for the payment, of the reasonable expenses of mailing, unless within five days after such tender, the Trustee shall mail to such applicants and file with the Securities and Exchange Commission, if permitted or required by applicable law, together with a copy of the material to be mailed, a written statement to the effect that, in the opinion of the Trustee, such mailing would be contrary to the best interests of the holders of all Debentures, as the case may be, or would be in violation of applicable law. Such written statement shall specify the basis of such opinion. If said Commission, as permitted or required by applicable law, after opportunity for a hearing upon the objections specified in the written statement so filed, shall enter an order refusing to sustain any of such objections or if, after the entry of an order sustaining one or more of such objections, said Commission shall find, after notice and opportunity for hearing, that all the objections so sustained have been met and shall enter an order so declaring, the Trustee shall mail copies of such material to all such Securityholders with reasonable promptness after the entry of such order and the renewal of such tender; otherwise the Trustee shall be relieved of any obligation or duty to such applicants respecting their application.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;Each and every holder of Debentures, by receiving and holding the same, agrees with the Company and the Trustee that neither the Company nor the Trustee nor any paying agent shall be held accountable by reason of the disclosure of any such information as to the names and addresses of the holders of Debentures in accordance with the provisions of subsection (b) of this Section 4.2, regardless

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of the source from which such information was derived, and that the Trustee shall not be held accountable by reason of mailing any material pursuant to a request made under said subsection (b).

**Section 4.3.&nbsp;&nbsp;&nbsp;&nbsp;<u>Reports by the Company</u>**. The Company shall furnish to the holders of the Capital Securities and to prospective purchasers of the Capital Securities, upon their request, the information required to be furnished pursuant to Rule 144A(d)(4) under the Securities Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;The Company shall furnish to (i) the Bank of New York, with a copy to FTN Financial Capital Markets and Keefe, Bruyette & Woods, Inc., and (ii) any beneficial owner of the Capital Securities reasonably identified to the Company, a completed quarterly report in the form attached hereto as <u>Exhibit C</u>, which report shall be so furnished by the Company not later than 50 days after the end of each of the first three fiscal quarters of each fiscal year of the Company and not later than 100 days after the end of each fiscal year of the Company along with a copy of the Company's most recently filed (1) FR Y-9C filed with the Federal Reserve if the Company is a bank holding company, (2) FR Y-9SP filed with the Federal Reserve if the Company is a small bank holding company or (3) H-(b)11 filed with the OTS if the Company is a savings and loan holding company.

**ARTICLE V.**

**<u>REMEDIES OF THE TRUSTEE AND SECURITYHOLDERS</u>**

**<u>UPON AN EVENT OF DEFAULT</u>**

**Section 5.1.&nbsp;&nbsp;&nbsp;&nbsp;<u>Events of Default</u>**. "Event of Default," wherever used herein, means any one of the following events (whatever the reason for such Event of Default and whether it shall be voluntary or involuntary or be effected by operation of law or pursuant to any judgment, decree or order of any court or any order, rule or regulation of any administrative or governmental body):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;the Company defaults in the payment of any interest upon any Debenture, including any Additional Interest in respect thereof, following the nonpayment of any such interest for twenty or more consecutive Distribution Periods; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;the Company defaults in the payment of all or any part of the principal of (or premium, if any, on) any Debentures as and when the same shall become due and payable either at maturity, upon redemption, by declaration of acceleration or otherwise; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;the Company defaults in the performance of, or breaches, any of its covenants or agreements in this Indenture or in the terms of the Debentures established as contemplated in this Indenture (other than a covenant or agreement a default in whose performance or whose breach is elsewhere in this Section specifically dealt with), and continuance of such default or breach for a period of 60 days after there has been given, by registered or certified mail, to the Company by the Trustee or to the Company and the Trustee by the holders of at least 25% in aggregate principal amount of the outstanding Debentures, a written notice specifying such default or breach and requiring it to be remedied and stating that such notice is a "Notice of Default" hereunder; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;a court of competent jurisdiction shall enter a decree or order for relief in respect of the Company in an involuntary case under any applicable bankruptcy, insolvency, reorganization or other

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similar law now or hereafter in effect, or appointing a receiver, liquidator, assignee, custodian, trustee, sequestrator (or similar official) of the Company or for any substantial part of its property, or ordering the winding-up or liquidation of its affairs and such decree or order shall remain unstayed and in effect for a period of 90 consecutive days; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;the Company shall commence a voluntary case under any applicable bankruptcy, insolvency, reorganization or other similar law now or hereafter in effect, shall consent to the entry of an order for relief in an involuntary case under any such law, or shall consent to the appointment of or taking possession by a receiver, liquidator, assignee, trustee, custodian, sequestrator (or other similar official) of the Company or of any substantial part of its property, or shall make any general assignment for the benefit of creditors, or shall fail generally to pay its debts as they become due; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;&nbsp;&nbsp;the Trust shall have voluntarily or involuntarily liquidated, dissolved, wound-up its business or otherwise terminated its existence except in connection with (i) the distribution of the Debentures to holders of such Trust Securities in liquidation of their interests in the Trust, (ii) the redemption of all of the outstanding Trust Securities or (iii) certain mergers, consolidations or amalgamations, each as permitted by the Declaration.

If an Acceleration Event of Default occurs and is continuing with respect to the Debentures, then, and in each and every such case, unless the principal of the Debentures shall have already become due and payable, either the Trustee or the holders of not less than 25% in aggregate principal amount of the Debentures then outstanding hereunder, by notice in writing to the Company (and to the Trustee if given by Securityholders), may declare the entire principal of the Debentures and the interest accrued thereon, if any, to be due and payable immediately, and upon any such declaration the same shall become immediately due and payable. If an Event of Default under Section 5.1(b) or (c) occurs and is continuing with respect to the Debentures, then, and in each and every such case, unless the principal of the Debentures shall have already become due and payable, either the Trustee or the holders of not less than 25% in aggregate principal amount of the Debentures then outstanding hereunder, by notice in writing to the Company (and to the Trustee if given by Securityholders), may proceed to remedy the default or breach thereunder by such appropriate judicial proceedings as the Trustee or such holders shall deem most effectual to remedy the defaulted covenant or enforce the provisions of this Indenture so breached, either by suit in equity or by action at law, for damages or otherwise.

The foregoing provisions, however, are subject to the condition that if, at any time after the principal of the Debentures shall have been so declared due and payable, and before any judgment or decree for the payment of the moneys due shall have been obtained or entered as hereinafter provided, (i) the Company shall pay or shall deposit with the Trustee a sum sufficient to pay all matured installments of interest upon all the Debentures and the principal of and premium, if any, on the Debentures which shall have become due otherwise than by acceleration (with interest upon such principal and premium, if any, and Additional Interest) and such amount as shall be sufficient to cover reasonable compensation to the Trustee and each predecessor Trustee, their respective agents, attorneys and counsel, and all other amounts due to the Trustee pursuant to Section 6.6, if any, and (ii) all Events of Default under this Indenture, other than the non-payment of the principal of or premium, if any, on Debentures which shall have become due by acceleration, shall have been cured, waived or otherwise remedied as provided

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herein -- then and in every such case the holders of a majority in aggregate principal amount of the Debentures then outstanding, by written notice to the Company and to the Trustee, may waive all defaults and rescind and annul such declaration and its consequences, but no such waiver or rescission and annulment shall extend to or shall affect any subsequent default or shall impair any right consequent thereon.

In case the Trustee shall have proceeded to enforce any right under this Indenture and such proceedings shall have been discontinued or abandoned because of such rescission or annulment or for any other reason or shall have been determined adversely to the Trustee, then and in every such case the Company, the Trustee and the holders of the Debentures shall be restored respectively to their several positions and rights hereunder, and all rights, remedies and powers of the Company, the Trustee and the holders of the Debentures shall continue as though no such proceeding had been taken.

**Section 5.2.&nbsp;&nbsp;&nbsp;&nbsp;<u>Payment of Debentures on Default; Suit Therefor</u>.** The Company covenants that upon the occurrence of an Event of Default pursuant to Section 5.1(a) or (b) then, upon demand of the Trustee, the Company will pay to the Trustee, for the benefit of the holders of the Debentures the whole amount that then shall have become due and payable on all Debentures for principal and premium, if any, or interest, or both, as the case may be, with Additional Interest accrued on the Debentures (to the extent that payment of such interest is enforceable under applicable law and, if the Debentures are held by the Trust or a trustee of such Trust, without duplication of any other amounts paid by the Trust or a trustee in respect thereof); and, in addition thereto, such further amount as shall be sufficient to cover the costs and expenses of collection, including a reasonable compensation to the Trustee, its agents, attorneys and counsel, and any other amounts due to the Trustee under Section 6.6. In case the Company shall fail forthwith to pay such amounts upon such demand, the Trustee, in its own name and as trustee of an express trust, shall be entitled and empowered to institute any actions or proceedings at law or in equity for the collection of the sums so due and unpaid, and may prosecute any such action or proceeding to judgment or final decree, and may enforce any such judgment or final decree against the Company or any other obligor on such Debentures and collect in the manner provided by law out of the property of the Company or any other obligor on such Debentures wherever situated the moneys adjudged or decreed to be payable.

In case there shall be pending proceedings for the bankruptcy or for the reorganization of the Company or any other obligor on the Debentures under Bankruptcy Law, or in case a receiver or trustee shall have been appointed for the property of the Company or such other obligor, or in the case of any other similar judicial proceedings relative to the Company or other obligor upon the Debentures, or to the creditors or property of the Company or such other obligor, the Trustee, irrespective of whether the principal of the Debentures shall then be due and payable as therein expressed or by declaration of acceleration or otherwise and irrespective of whether the Trustee shall have made any demand pursuant to the provisions of this Section 5.2, shall be entitled and empowered, by intervention in such proceedings or otherwise,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;to file and prove a claim or claims for the whole amount of principal and interest owing and unpaid in respect of the Debentures,

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp;in case of any judicial proceedings, to file such proofs of claim and other papers or documents as may be necessary or advisable in order to have the claims of the Trustee (including any claim for reasonable compensation to the Trustee and each predecessor Trustee, and their respective agents, attorneys and counsel, and for reimbursement of all other amounts due to the Trustee under Section 6.6), and of the Securityholders allowed in such judicial proceedings relative to the Company or any other obligor on the Debentures, or to the creditors or property of the Company or such other obligor, unless prohibited by applicable law and regulations, to vote on behalf of the holders of the Debentures in any election of a trustee or a standby trustee in arrangement, reorganization, liquidation or other bankruptcy or insolvency proceedings or Person performing similar functions in comparable proceedings,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;&nbsp;&nbsp;&nbsp;to collect and receive any moneys or other property payable or deliverable on any such claims, and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv)&nbsp;&nbsp;&nbsp;&nbsp;to distribute the same after the deduction of its charges and expenses.

Any receiver, assignee or trustee in bankruptcy or reorganization is hereby authorized by each of the Securityholders to make such payments to the Trustee, and, in the event that the Trustee shall consent to the making of such payments directly to the Securityholders, to pay to the Trustee such amounts as shall be sufficient to cover reasonable compensation to the Trustee, each predecessor Trustee and their respective agents, attorneys and counsel, and all other amounts due to the Trustee under Section 6.6.

Nothing herein contained shall be construed to authorize the Trustee to authorize or consent to or accept or adopt on behalf of any Securityholder any plan of reorganization, arrangement, adjustment or composition affecting the Debentures or the rights of any holder thereof or to authorize the Trustee to vote in respect of the claim of any Securityholder in any such proceeding.

All rights of action and of asserting claims under this Indenture, or under any of the Debentures, may be enforced by the Trustee without the possession of any of the Debentures, or the production thereof at any trial or other proceeding relative thereto, and any such suit or proceeding instituted by the Trustee shall be brought in its own name as trustee of an express trust, and any recovery of judgment shall be for the ratable benefit of the holders of the Debentures.

In any proceedings brought by the Trustee (and also any proceedings involving the interpretation of any provision of this Indenture to which the Trustee shall be a party), the Trustee shall be held to represent all the holders of the Debentures, and it shall not be necessary to make any holders of the Debentures parties to any such proceedings.

**Section 5.3.&nbsp;&nbsp;&nbsp;&nbsp;<u>Application of Moneys Collected by Trustee</u>.** Any moneys collected by the Trustee pursuant to this Article V shall be applied in the following order, at the date or dates fixed by the Trustee for the distribution of such moneys, upon presentation of the several Debentures in respect of which moneys have been collected, and stamping thereon the payment, if only partially paid, and upon surrender thereof if fully paid:

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First: To the payment of costs and expenses incurred by, and reasonable fees of, the Trustee, its agents, attorneys and counsel, and of all other amounts due to the Trustee under Section 6.6;

Second: To the payment of all Senior Indebtedness of the Company if and to the extent required by Article XV;

Third: To the payment of the amounts then due and unpaid upon Debentures for principal (and premium, if any), and interest on the Debentures, in respect of which or for the benefit of which money has been collected, ratably, without preference or priority of any kind, according to the amounts due on such Debentures (including Additional Interest); and

Fourth: The balance, if any, to the Company.

**Section 5.4.&nbsp;&nbsp;&nbsp;&nbsp;<u>Proceedings by Securityholders</u>.** No holder of any Debenture shall have any right to institute any suit, action or proceeding for any remedy hereunder, unless such holder previously shall have given to the Trustee written notice of an Event of Default with respect to the Debentures and unless the holders of not less than 25% in aggregate principal amount of the Debentures then outstanding shall have given the Trustee a written request to institute such action, suit or proceeding and shall have offered to the Trustee such reasonable indemnity as it may require against the costs, expenses and liabilities to be incurred thereby, and the Trustee for 60 days after its receipt of such notice, request and offer of indemnity shall have failed to institute any such action, suit or proceeding.

Notwithstanding any other provisions in this Indenture, however, the right of any holder of any Debenture to receive payment of the principal of, premium, if any, and interest, on such Debenture when due, or to institute suit for the enforcement of any such payment, shall not be impaired or affected without the consent of such holder and by accepting a Debenture hereunder it is expressly understood, intended and covenanted by the taker and holder of every Debenture with every other such taker and holder and the Trustee, that no one or more holders of Debentures shall have any right in any manner whatsoever by virtue or by availing itself of any provision of this Indenture to affect, disturb or prejudice the rights of the holders of any other Debentures, or to obtain or seek to obtain priority over or preference to any other such holder, or to enforce any right under this Indenture, except in the manner herein provided and for the equal, ratable and common benefit of all holders of Debentures. For the protection and enforcement of the provisions of this Section, each and every Securityholder and the Trustee shall be entitled to such relief as can be given either at law or in equity.

**Section 5.5.&nbsp;&nbsp;&nbsp;&nbsp;<u>Proceedings by Trustee</u>.** In case of an Event of Default hereunder the Trustee may in its discretion proceed to protect and enforce the rights vested in it by this Indenture by such appropriate judicial proceedings as the Trustee shall deem most effectual to protect and enforce any of such rights, either by suit in equity or by action at law or by proceeding in bankruptcy or otherwise, whether for the specific enforcement of any covenant or agreement contained in this Indenture or in aid of the exercise of any power granted in this Indenture, or to enforce any other legal or equitable right vested in the Trustee by this Indenture or by law.

**Section 5.6.&nbsp;&nbsp;&nbsp;&nbsp;<u>Remedies Cumulative and Continuing; Delay or Omission Not a Waiver</u>.** Except as otherwise provided in Section 2.6, all powers and remedies given by this Article V to the

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Trustee or to the Securityholders shall, to the extent permitted by law, be deemed cumulative and not exclusive of any other powers and remedies available to the Trustee or the holders of the Debentures, by judicial proceedings or otherwise, to enforce the performance or observance of the covenants and agreements contained in this Indenture or otherwise established with respect to the Debentures, and no delay or omission of the Trustee or of any holder of any of the Debentures to exercise any right, remedy or power accruing upon any Event of Default occurring and continuing as aforesaid shall impair any such right, remedy or power, or shall be construed to be a waiver of any such default or an acquiescence therein; and, subject to the provisions of Section 5.4, every power and remedy given by this Article V or by law to the Trustee or to the Securityholders may be exercised from time to time, and as often as shall be deemed expedient, by the Trustee (in accordance with its duties under Section 6.1) or by the Securityholders.

**Section 5.7.&nbsp;&nbsp;&nbsp;&nbsp;<u>Direction of Proceedings and Waiver of Defaults by Majority of</u> <u>Securityholders</u>.** The holders of a majority in aggregate principal amount of the Debentures affected (voting as one class) at the time outstanding shall have the right to direct the time, method, and place of conducting any proceeding for any remedy available to the Trustee, or exercising any trust or power conferred on the Trustee with respect to such Debentures; <u>provided</u>, <u>however</u>, that (subject to the provisions of Section 6.1) the Trustee shall have the right to decline to follow any such direction if the Trustee shall determine that the action so directed would be unjustly prejudicial to the holders not taking part in such direction or if the Trustee being advised by counsel determines that the action or proceeding so directed may not lawfully be taken or if a Responsible Officer of the Trustee shall determine that the action or proceedings so directed would involve the Trustee in personal liability.

The holders of a majority in aggregate principal amount of the Debentures at the time outstanding may on behalf of the holders of all of the Debentures waive (or modify any previously granted waiver of) any past default or Event of Default, and its consequences, except a default (a) in the payment of principal of, premium, if any, or interest on any of the Debentures, (b) in respect of covenants or provisions hereof which cannot be modified or amended without the consent of the holder of each Debenture affected, or (c) in respect of the covenants contained in Section 3.9; <u>provided</u>, <u>however</u>, that if the Debentures are held by the Trust or a trustee of such trust, such waiver or modification to such waiver shall not be effective until the holders of a majority in Liquidation Amount of Trust Securities of the Trust shall have consented to such waiver or modification to such waiver, <u>provided</u>, <u>further</u>, that if the consent of the holder of each outstanding Debenture is required, such waiver shall not be effective until each holder of the Trust Securities of the Trust shall have consented to such waiver. Upon any such waiver, the default covered thereby shall be deemed to be cured for all purposes of this Indenture and the Company, the Trustee and the holders of the Debentures shall be restored to their former positions and rights hereunder, respectively; but no such waiver shall extend to any subsequent or other default or Event of Default or impair any right consequent thereon. Whenever any default or Event of Default hereunder shall have been waived as permitted by this Section, said default or Event of Default shall for all purposes of the Debentures and this Indenture be deemed to have been cured and to be not continuing.

**Section 5.8.&nbsp;&nbsp;&nbsp;&nbsp;<u>Notice of Defaults</u>.** The Trustee shall, within 90 days after the actual knowledge by a Responsible Officer of the Trustee of the occurrence of a default with respect to the Debentures, mail

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to all Securityholders, as the names and addresses of such holders appear upon the Debenture Register, notice of all defaults with respect to the Debentures known to the Trustee, unless such defaults shall have been cured before the giving of such notice (the term "defaults" for the purpose of this Section 5.8 being hereby defined to be the events specified in clauses (a), (b), (c), (d), (e) and (f) of Section 5.1, not including periods of grace, if any, provided for therein); <u>provided</u>, <u>however</u>, that, except in the case of default in the payment of the principal of, premium, if any, or interest on any of the Debentures, the Trustee shall be protected in withholding such notice if and so long as a Responsible Officer of the Trustee in good faith determines that the withholding of such notice is in the interests of the Securityholders.

**Section 5.9.&nbsp;&nbsp;&nbsp;&nbsp;<u>Undertaking to Pay Costs</u>.** All parties to this Indenture agree, and each holder of any Debenture by his acceptance thereof shall be deemed to have agreed, that any court may in its discretion require, in any suit for the enforcement of any right or remedy under this Indenture, or in any suit against the Trustee for any action taken or omitted by it as Trustee, the filing by any party litigant in such suit of an undertaking to pay the costs of such suit, and that such court may in its discretion assess reasonable costs, including reasonable attorneys' fees and expenses, against any party litigant in such suit, having due regard to the merits and good faith of the claims or defenses made by such party litigant; <u>provided</u>, <u>however</u>, that the provisions of this Section 5.9 shall not apply to any suit instituted by the Trustee, to any suit instituted by any Securityholder, or group of Securityholders, holding in the aggregate more than 10% in principal amount of the Debentures outstanding, or to any suit instituted by any Securityholder for the enforcement of the payment of the principal of (or premium, if any) or interest on any Debenture against the Company on or after the same shall have become due and payable.

**ARTICLE VI.**

**<u>CONCERNING THE TRUSTEE</u>**

**Section 6.1.&nbsp;&nbsp;&nbsp;&nbsp;<u>Duties and Responsibilities of Trustee</u>.** With respect to the holders of Debentures issued hereunder, the Trustee, prior to the occurrence of an Event of Default with respect to the Debentures and after the curing or waiving of all Events of Default which may have occurred, with respect to the Debentures, undertakes to perform such duties and only such duties as are specifically set forth in this Indenture, and no implied covenants shall be read into this Indenture against the Trustee. In case an Event of Default with respect to the Debentures has occurred (which has not been cured or waived), the Trustee shall exercise such of the rights and powers vested in it by this Indenture, and use the same degree of care and skill in their exercise, as a prudent man would exercise or use under the circumstances in the conduct of his own affairs.

No provision of this Indenture shall be construed to relieve the Trustee from liability for its own negligent action, its own negligent failure to act or its own willful misconduct, except that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;prior to the occurrence of an Event of Default with respect to Debentures and after the curing or waiving of all Events of Default which may have occurred

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)&nbsp;&nbsp;&nbsp;&nbsp;the duties and obligations of the Trustee with respect to Debentures shall be determined solely by the express provisions of this Indenture, and the Trustee shall not be

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liable except for the performance of such duties and obligations with respect to the Debentures as are specifically set forth in this Indenture, and no implied covenants or obligations shall be read into this Indenture against the Trustee, and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)&nbsp;&nbsp;&nbsp;&nbsp;in the absence of bad faith on the part of the Trustee, the Trustee may conclusively rely, as to the truth of the statements and the correctness of the opinions expressed therein, upon any certificates or opinions furnished to the Trustee and conforming to the requirements of this Indenture; but, in the case of any such certificates or opinions which by any provision hereof are specifically required to be furnished to the Trustee, the Trustee shall be under a duty to examine the same to determine whether or not they conform to the requirements of this Indenture;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;the Trustee shall not be liable for any error of judgment made in good faith by a Responsible Officer or Officers of the Trustee, unless it shall be proved that the Trustee was negligent in ascertaining the pertinent facts; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;the Trustee shall not be liable with respect to any action taken or omitted to be taken by it in good faith, in accordance with the direction of the Securityholders pursuant to Section 5.7, relating to the time, method and place of conducting any proceeding for any remedy available to the Trustee, or exercising any trust or power conferred upon the Trustee, under this Indenture.

None of the provisions contained in this Indenture shall require the Trustee to expend or risk its own funds or otherwise incur personal financial liability in the performance of any of its duties or in the exercise of any of its rights or powers, if there is ground for believing that the repayment of such funds or liability is not assured to it under the terms of this Indenture or indemnity satisfactory to the Trustee against such risk is not reasonably assured to it.

**Section 6.2.&nbsp;&nbsp;&nbsp;&nbsp;<u>Reliance on Documents, Opinions, etc</u>.** Except as otherwise provided in Section 6.1:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;the Trustee may conclusively rely and shall be fully protected in acting or refraining from acting upon any resolution, certificate, statement, instrument, opinion, report, notice, request, consent, order, bond, note, debenture or other paper or document believed by it to be genuine and to have been signed or presented by the proper party or parties;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;any request, direction, order or demand of the Company mentioned herein shall be sufficiently evidenced by an Officers' Certificate (unless other evidence in respect thereof be herein specifically prescribed); and any Board Resolution may be evidenced to the Trustee by a copy thereof certified by the Secretary or an Assistant Secretary of the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;the Trustee may consult with counsel of its selection and any advice or Opinion of Counsel shall be full and complete authorization and protection in respect of any action taken, suffered or omitted by it hereunder in good faith and in accordance with such advice or Opinion of Counsel;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;the Trustee shall be under no obligation to exercise any of the rights or powers vested in it by this Indenture at the request, order or direction of any of the Securityholders, pursuant to the provisions of this Indenture, unless such Securityholders shall have offered to the Trustee reasonable security or indemnity against the costs, expenses and liabilities which may be incurred therein or thereby;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;the Trustee shall not be liable for any action taken or omitted by it in good faith and believed by it to be authorized or within the discretion or rights or powers conferred upon it by this Indenture; nothing contained herein shall, however, relieve the Trustee of the obligation, upon the occurrence of an Event of Default with respect to the Debentures (that has not been cured or waived) to exercise with respect to Debentures such of the rights and powers vested in it by this Indenture, and to use the same degree of care and skill in their exercise, as a prudent man would exercise or use under the circumstances in the conduct of his own affairs;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;&nbsp;&nbsp;the Trustee shall not be bound to make any investigation into the facts or matters stated in any resolution, certificate, statement, instrument, opinion, report, notice, request, consent, order, approval, bond, debenture, coupon or other paper or document, unless requested in writing to do so by the holders of not less than a majority in aggregate principal amount of the outstanding Debentures affected thereby; <u>provided</u>, <u>however</u>, that if the payment within a reasonable time to the Trustee of the costs, expenses or liabilities likely to be incurred by it in the making of such investigation is, in the opinion of the Trustee, not reasonably assured to the Trustee by the security afforded to it by the terms of this Indenture, the Trustee may require reasonable indemnity against such expense or liability as a condition to so proceeding;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;&nbsp;&nbsp;&nbsp;the Trustee may execute any of the trusts or powers hereunder or perform any duties hereunder either directly or by or through agents (including any Authenticating Agent) or attorneys, and the Trustee shall not be responsible for any misconduct or negligence on the part of any such agent or attorney appointed by it with due care; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)&nbsp;&nbsp;&nbsp;&nbsp;with the exceptions of defaults under Sections 5.1(a) or (b), the Trustee shall not be charged with knowledge of any Default or Event of Default with respect to the Debentures unless a written notice of such Default or Event of Default shall have been given to the Trustee by the Company or any other obligor on the Debentures or by any holder of the Debentures.

**Section 6.3.&nbsp;&nbsp;&nbsp;&nbsp;<u>No Responsibility for Recitals, etc</u>.** The recitals contained herein and in the Debentures (except in the certificate of authentication of the Trustee or the Authenticating Agent) shall be taken as the statements of the Company, and the Trustee and the Authenticating Agent assume no responsibility for the correctness of the same. The Trustee and the Authenticating Agent make no representations as to the validity or sufficiency of this Indenture or of the Debentures. The Trustee and the Authenticating Agent shall not be accountable for the use or application by the Company of any Debentures or the proceeds of any Debentures authenticated and delivered by the Trustee or the Authenticating Agent in conformity with the provisions of this Indenture.

**Section 6.4.&nbsp;&nbsp;&nbsp;&nbsp;<u>Trustee, Authenticating Agent, Paying Agents, Transfer Agents or Registrar</u> <u>May Own Debentures</u>.** The Trustee or any Authenticating Agent or any paying agent or any transfer

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agent or any Debenture registrar, in its individual or any other capacity, may become the owner or pledgee of Debentures with the same rights it would have if it were not Trustee, Authenticating Agent, paying agent, transfer agent or Debenture registrar.

**Section 6.5.&nbsp;&nbsp;&nbsp;&nbsp;<u>Moneys to be Held in Trust</u>.** Subject to the provisions of Section 12.4, all moneys received by the Trustee or any paying agent shall, until used or applied as herein provided, be held in trust for the purpose for which they were received, but need not be segregated from other funds except to the extent required by law. The Trustee and any paying agent shall be under no liability for interest on any money received by it hereunder except as otherwise agreed in writing with the Company. So long as no Event of Default shall have occurred and be continuing, all interest allowed on any such moneys shall be paid from time to time upon the written order of the Company, signed by the Chairman of the Board of Directors, the Chief Executive Officer, the President, a Managing Director, a Vice President, the Treasurer or an Assistant Treasurer of the Company.

**Section 6.6.&nbsp;&nbsp;&nbsp;&nbsp;<u>Compensation and Expenses of Trustee</u>.** The Company covenants and agrees to pay or reimburse the Trustee upon its request for all reasonable expenses, disbursements and advances incurred or made by the Trustee in accordance with any of the provisions of this Indenture (including the reasonable compensation and the expenses and disbursements of its counsel and of all Persons not regularly in its employ) except any such expense, disbursement or advance as may arise from its negligence or willful misconduct. For purposes of clarification, this Section 6.6 does not contemplate the payment by the Company of acceptance or annual administration fees owing to the Trustee pursuant to the services to be provided by the Trustee under this Indenture or the fees and expenses of the Trustee's counsel in connection with the closing of the transactions contemplated by this Indenture. The Company also covenants to indemnify each of the Trustee or any predecessor Trustee (and its officers, agents, directors and employees) for, and to hold it harmless against, any and all loss, damage, claim, liability or expense including taxes (other than taxes based on the income of the Trustee) incurred without negligence or willful misconduct on the part of the Trustee and arising out of or in connection with the acceptance or administration of this trust, including the costs and expenses of defending itself against any claim of liability. The obligations of the Company under this Section 6.6 to compensate and indemnify the Trustee and to pay or reimburse the Trustee for expenses, disbursements and advances shall constitute additional indebtedness hereunder. Such additional indebtedness shall be secured by a lien prior to that of the Debentures upon all property and funds held or collected by the Trustee as such, except funds held in trust for the benefit of the holders of particular Debentures.

Without prejudice to any other rights available to the Trustee under applicable law, when the Trustee incurs expenses or renders services in connection with an Event of Default specified in Section 5.1(d), (e) or (f), the expenses (including the reasonable charges and expenses of its counsel) and the compensation for the services are intended to constitute expenses of administration under any applicable federal or state bankruptcy, insolvency or other similar law.

The provisions of this Section shall survive the resignation or removal of the Trustee and the defeasance or other termination of this Indenture.

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Notwithstanding anything in this Indenture or any Debenture to the contrary, the Trustee shall have no obligation whatsoever to advance funds to pay any principal of or interest on or other amounts with respect to the Debentures or otherwise advance funds to or on behalf of the Company.

**Section 6.7.&nbsp;&nbsp;&nbsp;&nbsp;<u>Officers' Certificate as Evidence</u>.** Except as otherwise provided in Sections 6.1 and 6.2, whenever in the administration of the provisions of this Indenture the Trustee shall deem it necessary or desirable that a matter be proved or established prior to taking or omitting any action hereunder, such matter (unless other evidence in respect thereof be herein specifically prescribed) may, in the absence of negligence or willful misconduct on the part of the Trustee, be deemed to be conclusively proved and established by an Officers' Certificate delivered to the Trustee, and such certificate, in the absence of negligence or willful misconduct on the part of the Trustee, shall be full warrant to the Trustee for any action taken or omitted by it under the provisions of this Indenture upon the faith thereof.

**Section 6.8.&nbsp;&nbsp;&nbsp;&nbsp;<u>Eligibility of Trustee</u>.** The Trustee hereunder shall at all times be a corporation organized and doing business under the laws of the United States of America or any state or territory thereof or of the District of Columbia or a corporation or other Person authorized under such laws to exercise corporate trust powers, having (or whose obligations under this Indenture are guaranteed by an affiliate having) a combined capital and surplus of at least 50 million U.S. dollars ($50,000,000.00) and subject to supervision or examination by federal, state, territorial, or District of Columbia authority. If such corporation publishes reports of condition at least annually, pursuant to law or to the requirements of the aforesaid supervising or examining authority, then for the purposes of this Section 6.8 the combined capital and surplus of such corporation shall be deemed to be its combined capital and surplus as set forth in its most recent records of condition so published.

The Company may not, nor may any Person directly or indirectly controlling, controlled by, or under common control with the Company, serve as Trustee.

In case at any time the Trustee shall cease to be eligible in accordance with the provisions of this Section 6.8, the Trustee shall resign immediately in the manner and with the effect specified in Section 6.9.

If the Trustee has or shall acquire any "conflicting interest" within the meaning of § 310(b) of the Trust Indenture Act of 1939, the Trustee shall either eliminate such interest or resign, to the extent and in the manner described by this Indenture.

**Section 6.9.&nbsp;&nbsp;&nbsp;&nbsp;<u>Resignation or Removal of Trustee</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;The Trustee, or any trustee or trustees hereafter appointed, may at any time resign by giving written notice of such resignation to the Company and by mailing notice thereof, at the Company's expense, to the holders of the Debentures at their addresses as they shall appear on the Debenture Register. Upon receiving such notice of resignation, the Company shall promptly appoint a successor trustee or trustees by written instrument, in duplicate, executed by order of its Board of Directors, one copy of which instrument shall be delivered to the resigning Trustee and one copy to the successor Trustee. If no successor Trustee shall have been so appointed and have accepted appointment within 30 days after the mailing of such notice of resignation to the affected Securityholders, the resigning Trustee

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may petition any court of competent jurisdiction for the appointment of a successor Trustee, or any Securityholder who has been a bona fide holder of a Debenture or Debentures for at least six months may, subject to the provisions of Section 5.9, on behalf of himself and all others similarly situated, petition any such court for the appointment of a successor Trustee. Such court may thereupon, after such notice, if any, as it may deem proper and prescribe, appoint a successor Trustee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;In case at any time any of the following shall occur --

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)&nbsp;&nbsp;&nbsp;&nbsp;the Trustee shall fail to comply with the provisions of Section 6.8 after written request therefor by the Company or by any Securityholder who has been a bona fide holder of a Debenture or Debentures for at least 6 months, or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)&nbsp;&nbsp;&nbsp;&nbsp;the Trustee shall cease to be eligible in accordance with the provisions of Section 6.8 and shall fail to resign after written request therefor by the Company or by any such Securityholder, or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3)&nbsp;&nbsp;&nbsp;&nbsp;the Trustee shall become incapable of acting, or shall be adjudged as bankrupt or insolvent, or a receiver of the Trustee or of its property shall be appointed, or any public officer shall take charge or control of the Trustee or of its property or affairs for the purpose of rehabilitation, conservation or liquidation,

then, in any such case, the Company may remove the Trustee and appoint a successor Trustee by written instrument, in duplicate, executed by order of the Board of Directors, one copy of which instrument shall be delivered to the Trustee so removed and one copy to the successor Trustee, or, subject to the provisions of Section 5.9, any Securityholder who has been a bona fide holder of a Debenture or Debentures for at least 6 months may, on behalf of himself and all others similarly situated, petition any court of competent jurisdiction for the removal of the Trustee and the appointment of a successor Trustee. Such court may thereupon, after such notice, if any, as it may deem proper and prescribe, remove the Trustee and appoint successor Trustee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;Upon prior written notice to the Company and the Trustee, the holders of a majority in aggregate principal amount of the Debentures at the time outstanding may at any time remove the Trustee and nominate a successor Trustee, which shall be deemed appointed as successor Trustee unless within 10 Business Days after such nomination the Company objects thereto, in which case, or in the case of a failure by such holders to nominate a successor Trustee, the Trustee so removed or any Securityholder, upon the terms and conditions and otherwise as in subsection (a) of this Section 6.9 provided, may petition any court of competent jurisdiction for an appointment of a successor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;Any resignation or removal of the Trustee and appointment of a successor Trustee pursuant to any of the provisions of this Section shall become effective upon acceptance of appointment by the successor Trustee as provided in Section 6.10.

**Section 6.10.&nbsp;&nbsp;&nbsp;&nbsp;<u>Acceptance by Successor Trustee</u>.** Any successor Trustee appointed as provided in Section 6.9 shall execute, acknowledge and deliver to the Company and to its predecessor Trustee an instrument accepting such appointment hereunder, and thereupon the resignation or removal of

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the retiring Trustee shall become effective and such successor Trustee, without any further act, deed or conveyance, shall become vested with all the rights, powers, duties and obligations with respect to the Debentures of its predecessor hereunder, with like effect as if originally named as Trustee herein; but, nevertheless, on the written request of the Company or of the successor Trustee, the Trustee ceasing to act shall, upon payment of any amounts then due it pursuant to the provisions of Section 6.6, execute and deliver an instrument transferring to such successor Trustee all the rights and powers of the Trustee so ceasing to act and shall duly assign, transfer and deliver to such successor Trustee all property and money held by such retiring Trustee thereunder. Upon request of any such successor Trustee, the Company shall execute any and all instruments in writing for more fully and certainly vesting in and confirming to such successor Trustee all such rights and powers. Any Trustee ceasing to act shall, nevertheless, retain a lien upon all property or funds held or collected by such Trustee to secure any amounts then due it pursuant to the provisions of Section 6.6.

If a successor Trustee is appointed, the Company, the retiring Trustee and the successor Trustee shall execute and deliver an indenture supplemental hereto which shall contain such provisions as shall be deemed necessary or desirable to confirm that all the rights, powers, trusts and duties of the retiring Trustee with respect to the Debentures as to which the predecessor Trustee is not retiring shall continue to be vested in the predecessor Trustee, and shall add to or change any of the provisions of this Indenture as shall be necessary to provide for or facilitate the administration of the Trust hereunder by more than one Trustee, it being understood that nothing herein or in such supplemental indenture shall constitute such Trustees co-trustees of the same trust and that each such Trustee shall be Trustee of a trust or trusts hereunder separate and apart from any trust or trusts hereunder administered by any other such Trustee.

No successor Trustee shall accept appointment as provided in this Section unless at the time of such acceptance such successor Trustee shall be eligible under the provisions of Section 6.8.

In no event shall a retiring Trustee be liable for the acts or omissions of any successor Trustee hereunder.

Upon acceptance of appointment by a successor Trustee as provided in this Section 6.10, the Company shall mail notice of the succession of such Trustee hereunder to the holders of Debentures at their addresses as they shall appear on the Debenture Register. If the Company fails to mail such notice within 10 Business Days after the acceptance of appointment by the successor Trustee, the successor Trustee shall cause such notice to be mailed at the expense of the Company.

**Section 6.11.&nbsp;&nbsp;&nbsp;&nbsp;<u>Succession by Merger, etc</u>.** Any corporation into which the Trustee may be merged or converted or with which it may be consolidated, or any corporation resulting from any merger, conversion or consolidation to which the Trustee shall be a party, or any corporation succeeding to all or substantially all of the corporate trust business of the Trustee, shall be the successor of the Trustee hereunder without the execution or filing of any paper or any further act on the part of any of the parties hereto; <u>provided</u> such corporation shall be otherwise eligible and qualified under this Article.

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Trustee may adopt the certificate of authentication of any predecessor Trustee, and deliver such Debentures so authenticated; and in case at that time any of the Debentures shall not have been authenticated, any successor to the Trustee may authenticate such Debentures either in the name of any predecessor hereunder or in the name of the successor Trustee; and in all such cases such certificates shall have the full force which it is anywhere in the Debentures or in this Indenture provided that the certificate of the Trustee shall have; <u>provided</u>, <u>however</u>, that the right to adopt the certificate of authentication of any predecessor Trustee or authenticate Debentures in the name of any predecessor Trustee shall apply only to its successor or successors by merger, conversion or consolidation.

**Section 6.12.&nbsp;&nbsp;&nbsp;&nbsp;<u>Authenticating Agents</u>.** There may be one or more Authenticating Agents appointed by the Trustee upon the request of the Company with power to act on its behalf and subject to its direction in the authentication and delivery of Debentures issued upon exchange or registration of transfer thereof as fully to all intents and purposes as though any such Authenticating Agent had been expressly authorized to authenticate and deliver Debentures; <u>provided</u>, <u>however</u>, that the Trustee shall have no liability to the Company for any acts or omissions of the Authenticating Agent with respect to the authentication and delivery of Debentures. Any such Authenticating Agent shall at all times be a corporation organized and doing business under the laws of the United States or of any state or territory thereof or of the District of Columbia authorized under such laws to act as Authenticating Agent, having a combined capital and surplus of at least $50,000,000.00 and being subject to supervision or examination by federal, state, territorial or District of Columbia authority. If such corporation publishes reports of condition at least annually pursuant to law or the requirements of such authority, then for the purposes of this Section 6.12 the combined capital and surplus of such corporation shall be deemed to be its combined capital and surplus as set forth in its most recent report of condition so published. If at any time an Authenticating Agent shall cease to be eligible in accordance with the provisions of this Section, it shall resign immediately in the manner and with the effect herein specified in this Section.

Any corporation into which any Authenticating Agent may be merged or converted or with which it may be consolidated, or any corporation resulting from any merger, consolidation or conversion to which any Authenticating Agent shall be a party, or any corporation succeeding to all or substantially all of the corporate trust business of any Authenticating Agent, shall be the successor of such Authenticating Agent hereunder, if such successor corporation is otherwise eligible under this Section 6.12 without the execution or filing of any paper or any further act on the part of the parties hereto or such Authenticating Agent.

Any Authenticating Agent may at any time resign by giving written notice of resignation to the Trustee and to the Company. The Trustee may at any time terminate the agency of any Authenticating Agent with respect to the Debentures by giving written notice of termination to such Authenticating Agent and to the Company. Upon receiving such a notice of resignation or upon such a termination, or in case at any time any Authenticating Agent shall cease to be eligible under this Section 6.12, the Trustee may, and upon the request of the Company shall, promptly appoint a successor Authenticating Agent eligible under this Section 6.12, shall give written notice of such appointment to the Company and shall mail notice of such appointment to all holders of Debentures as the names and addresses of such holders appear on the Debenture Register. Any successor Authenticating Agent upon acceptance of its

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appointment hereunder shall become vested with all rights, powers, duties and responsibilities with respect to the Debentures of its predecessor hereunder, with like effect as if originally named as Authenticating Agent herein.

The Company agrees to pay to any Authenticating Agent from time to time reasonable compensation for its services. Any Authenticating Agent shall have no responsibility or liability for any action taken by it as such in accordance with the directions of the Trustee.

**ARTICLE VII.**

**<u>CONCERNING THE SECURITYHOLDERS</u>**

**Section 7.1.&nbsp;&nbsp;&nbsp;&nbsp;<u>Action by Securityholders</u>.** Whenever in this Indenture it is provided that the holders of a specified percentage in aggregate principal amount of the Debentures may take any action (including the making of any demand or request, the giving of any notice, consent or waiver or the taking of any other action) the fact that at the time of taking any such action the holders of such specified percentage have joined therein may be evidenced (a) by any instrument or any number of instruments of similar tenor executed by such Securityholders in person or by agent or proxy appointed in writing, or (b) by the record of such holders of Debentures voting in favor thereof at any meeting of such Securityholders duly called and held in accordance with the provisions of Article VIII, or (c) by a combination of such instrument or instruments and any such record of such a meeting of such Securityholders or (d) by any other method the Trustee deems satisfactory.

If the Company shall solicit from the Securityholders any request, demand, authorization, direction, notice, consent, waiver or other action or revocation of the same, the Company may, at its option, as evidenced by an Officers' Certificate, fix in advance a record date for such Debentures for the determination of Securityholders entitled to give such request, demand, authorization, direction, notice, consent, waiver or other action or revocation of the same, but the Company shall have no obligation to do so. If such a record date is fixed, such request, demand, authorization, direction, notice, consent, waiver or other action or revocation of the same may be given before or after the record date, but only the Securityholders of record at the close of business on the record date shall be deemed to be Securityholders for the purposes of determining whether Securityholders of the requisite proportion of outstanding Debentures have authorized or agreed or consented to such request, demand, authorization, direction, notice, consent, waiver or other action or revocation of the same, and for that purpose the outstanding Debentures shall be computed as of the record date; <u>provided</u>, <u>however</u>, that no such authorization, agreement or consent by such Securityholders on the record date shall be deemed effective unless it shall become effective pursuant to the provisions of this Indenture not later than 6 months after the record date.

**Section 7.2.&nbsp;&nbsp;&nbsp;&nbsp;<u>Proof of Execution by Securityholders</u>.** Subject to the provisions of Section 6.1, 6.2 and 8.5, proof of the execution of any instrument by a Securityholder or his agent or proxy shall be sufficient if made in accordance with such reasonable rules and regulations as may be prescribed by the Trustee or in such manner as shall be satisfactory to the Trustee. The ownership of Debentures shall be proved by the Debenture Register or by a certificate of the Debenture registrar. The Trustee may require such additional proof of any matter referred to in this Section as it shall deem necessary.

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The record of any Securityholders' meeting shall be proved in the manner provided in Section 8.6.

**Section 7.3.&nbsp;&nbsp;&nbsp;&nbsp;<u>Who Are Deemed Absolute Owners</u>.** Prior to due presentment for registration of transfer of any Debenture, the Company, the Trustee, any Authenticating Agent, any paying agent, any transfer agent and any Debenture registrar may deem the Person in whose name such Debenture shall be registered upon the Debenture Register to be, and may treat him as, the absolute owner of such Debenture (whether or not such Debenture shall be overdue) for the purpose of receiving payment of or on account of the principal of, premium, if any, and interest on such Debenture and for all other purposes; and neither the Company nor the Trustee nor any Authenticating Agent nor any paying agent nor any transfer agent nor any Debenture registrar shall be affected by any notice to the contrary. All such payments so made to any holder for the time being or upon his order shall be valid, and, to the extent of the sum or sums so paid, effectual to satisfy and discharge the liability for moneys payable upon any such Debenture.

**Section 7.4.&nbsp;&nbsp;&nbsp;&nbsp;<u>Debentures Owned by Company Deemed Not Outstanding</u>.** In determining whether the holders of the requisite aggregate principal amount of Debentures have concurred in any direction, consent or waiver under this Indenture, Debentures which are owned by the Company or any other obligor on the Debentures or by any Person directly or indirectly controlling or controlled by or under direct or indirect common control with the Company or any other obligor on the Debentures shall be disregarded and deemed not to be outstanding for the purpose of any such determination; <u>provided</u>, <u>however</u>, that for the purposes of determining whether the Trustee shall be protected in relying on any such direction, consent or waiver, only Debentures which a Responsible Officer of the Trustee actually knows are so owned shall be so disregarded. Debentures so owned which have been pledged in good faith may be regarded as outstanding for the purposes of this Section 7.4 if the pledgee shall establish to the satisfaction of the Trustee the pledgee's right to vote such Debentures and that the pledgee is not the Company or any such other obligor or Person directly or indirectly controlling or controlled by or under direct or indirect common control with the Company or any such other obligor. In the case of a dispute as to such right, any decision by the Trustee taken upon the advice of counsel shall be full protection to the Trustee.

**Section 7.5.&nbsp;&nbsp;&nbsp;&nbsp;<u>Revocation of Consents; Future Holders Bound</u>.** At any time prior to (but not after) the evidencing to the Trustee, as provided in Section 7.1, of the taking of any action by the holders of the percentage in aggregate principal amount of the Debentures specified in this Indenture in connection with such action, any holder (in cases where no record date has been set pursuant to Section 7.1) or any holder as of an applicable record date (in cases where a record date has been set pursuant to Section 7.1) of a Debenture (or any Debenture issued in whole or in part in exchange or substitution therefor) the serial number of which is shown by the evidence to be included in the Debentures the holders of which have consented to such action may, by filing written notice with the Trustee at the Principal Office of the Trustee and upon proof of holding as provided in Section 7.2, revoke such action so far as concerns such Debenture (or so far as concerns the principal amount represented by any exchanged or substituted Debenture). Except as aforesaid any such action taken by the holder of any Debenture shall be conclusive and binding upon such holder and upon all future holders and owners of such Debenture, and of any Debenture issued in exchange or substitution therefor or on registration of

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transfer thereof, irrespective of whether or not any notation in regard thereto is made upon such Debenture or any Debenture issued in exchange or substitution therefor.

**ARTICLE VIII.**

**<u>SECURITYHOLDERS' MEETINGS</u>**

**Section 8.1.&nbsp;&nbsp;&nbsp;&nbsp;<u>Purposes of Meetings</u>.** A meeting of Securityholders may be called at any time and from time to time pursuant to the provisions of this Article VIII for any of the following purposes:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;to give any notice to the Company or to the Trustee, or to give any directions to the Trustee, or to consent to the waiving of any default hereunder and its consequences, or to take any other action authorized to be taken by Securityholders pursuant to any of the provisions of Article V;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;to remove the Trustee and nominate a successor trustee pursuant to the provisions of Article VI;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;to consent to the execution of an indenture or indentures supplemental hereto pursuant to the provisions of Section 9.2; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;to take any other action authorized to be taken by or on behalf of the holders of any specified aggregate principal amount of such Debentures under any other provision of this Indenture or under applicable law.

**Section 8.2.&nbsp;&nbsp;&nbsp;&nbsp;<u>Call of Meetings by Trustee</u>.** The Trustee may at any time call a meeting of Securityholders to take any action specified in Section 8.1, to be held at such time and at such place as the Trustee shall determine. Notice of every meeting of the Securityholders, setting forth the time and the place of such meeting and in general terms the action proposed to be taken at such meeting, shall be mailed to holders of Debentures affected at their addresses as they shall appear on the Debentures Register and, if the Company is not a holder of Debentures, to the Company. Such notice shall be mailed not less than 20 nor more than 180 days prior to the date fixed for the meeting.

**Section 8.3.&nbsp;&nbsp;&nbsp;&nbsp;<u>Call of Meetings by Company or Securityholders</u>.** In case at any time the Company pursuant to a Board Resolution, or the holders of at least 10% in aggregate principal amount of the Debentures, as the case may be, then outstanding, shall have requested the Trustee to call a meeting of Securityholders, by written request setting forth in reasonable detail the action proposed to be taken at the meeting, and the Trustee shall not have mailed the notice of such meeting within 20 days after receipt of such request, then the Company or such Securityholders may determine the time and the place for such meeting and may call such meeting to take any action authorized in Section 8.1, by mailing notice thereof as provided in Section 8.2.

**Section 8.4.&nbsp;&nbsp;&nbsp;&nbsp;<u>Qualifications for Voting</u>.** To be entitled to vote at any meeting of Securityholders a Person shall (a) be a holder of one or more Debentures with respect to which the meeting is being held or (b) a Person appointed by an instrument in writing as proxy by a holder of one or more such Debentures. The only Persons who shall be entitled to be present or to speak at any meeting of

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Securityholders shall be the Persons entitled to vote at such meeting and their counsel and any representatives of the Trustee and its counsel and any representatives of the Company and its counsel.

**Section 8.5.&nbsp;&nbsp;&nbsp;&nbsp;<u>Regulations</u>.** Notwithstanding any other provisions of this Indenture, the Trustee may make such reasonable regulations as it may deem advisable for any meeting of Securityholders, in regard to proof of the holding of Debentures and of the appointment of proxies, and in regard to the appointment and duties of inspectors of votes, the submission and examination of proxies, certificates and other evidence of the right to vote, and such other matters concerning the conduct of the meeting as it shall think fit.

The Trustee shall, by an instrument in writing, appoint a temporary chairman of the meeting, unless the meeting shall have been called by the Company or by Securityholders as provided in Section 8.3, in which case the Company or the Securityholders calling the meeting, as the case may be, shall in like manner appoint a temporary chairman. A permanent chairman and a permanent secretary of the meeting shall be elected by majority vote of the meeting.

Subject to the provisions of Section 7.4, at any meeting each holder of Debentures with respect to which such meeting is being held or proxy therefor shall be entitled to one vote for each $1,000.00 principal amount of Debentures held or represented by him; <u>provided</u>, <u>however</u>, that no vote shall be cast or counted at any meeting in respect of any Debenture challenged as not outstanding and ruled by the chairman of the meeting to be not outstanding. The chairman of the meeting shall have no right to vote other than by virtue of Debentures held by him or instruments in writing as aforesaid duly designating him as the Person to vote on behalf of other Securityholders. Any meeting of Securityholders duly called pursuant to the provisions of Section 8.2 or 8.3 may be adjourned from time to time by a majority of those present, whether or not constituting a quorum, and the meeting may be held as so adjourned without further notice.

**Section 8.6.&nbsp;&nbsp;&nbsp;&nbsp;<u>Voting</u>.** The vote upon any resolution submitted to any meeting of holders of Debentures with respect to which such meeting is being held shall be by written ballots on which shall be subscribed the signatures of such holders or of their representatives by proxy and the serial number or numbers of the Debentures held or represented by them. The permanent chairman of the meeting shall appoint two inspectors of votes who shall count all votes cast at the meeting for or against any resolution and who shall make and file with the secretary of the meeting their verified written reports in triplicate of all votes cast at the meeting. A record in duplicate of the proceedings of each meeting of Securityholders shall be prepared by the secretary of the meeting and there shall be attached to said record the original reports of the inspectors of votes on any vote by ballot taken thereat and affidavits by one or more Persons having knowledge of the facts setting forth a copy of the notice of the meeting and showing that said notice was mailed as provided in Section 8.2. The record shall show the serial numbers of the Debentures voting in favor of or against any resolution. The record shall be signed and verified by the affidavits of the permanent chairman and secretary of the meeting and one of the duplicates shall be delivered to the Company and the other to the Trustee to be preserved by the Trustee, the latter to have attached thereto the ballots voted at the meeting.

Any record so signed and verified shall be conclusive evidence of the matters therein stated.

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**Section 8.7.&nbsp;&nbsp;&nbsp;&nbsp;<u>Quorum; Actions</u>.** The Persons entitled to vote a majority in principal amount of the Debentures then outstanding shall constitute a quorum for a meeting of Securityholders; <u>provided</u>, <u>however</u>, that if any action is to be taken at such meeting with respect to a consent, waiver, request, demand, notice, authorization, direction or other action which may be given by the holders of not less than a specified percentage in principal amount of the Debentures then outstanding, the Persons holding or representing such specified percentage in principal amount of the Debentures then outstanding will constitute a quorum. In the absence of a quorum within 30 minutes of the time appointed for any such meeting, the meeting shall, if convened at the request of Securityholders, be dissolved. In any other case the meeting may be adjourned for a period of not less than 10 days as determined by the permanent chairman of the meeting prior to the adjournment of such meeting. In the absence of a quorum at any such adjourned meeting, such adjourned meeting may be further adjourned for a period of not less than 10 days as determined by the permanent chairman of the meeting prior to the adjournment of such adjourned meeting. Notice of the reconvening of any adjourned meeting shall be given as provided in Section 8.2, except that such notice need be given only once not less than 5 days prior to the date on which the meeting is scheduled to be reconvened. Notice of the reconvening of an adjourned meeting shall state expressly the percentage, as provided above, of the principal amount of the Debentures then outstanding which shall constitute a quorum.

Except as limited by the provisos in the first paragraph of Section 9.2, any resolution presented to a meeting or adjourned meeting duly reconvened at which a quorum is present as aforesaid may be adopted by the affirmative vote of the holders of a majority in principal amount of the Debentures then outstanding; <u>provided</u>, <u>however</u>, that, except as limited by the provisos in the first paragraph of Section 9.2, any resolution with respect to any consent, waiver, request, demand, notice, authorization, direction or other action which this Indenture expressly provides may be given by the holders of not less than a specified percentage in principal amount of the Debentures then outstanding may be adopted at a meeting or an adjourned meeting duly reconvened and at which a quorum is present as aforesaid only by the affirmative vote of the holders of a not less than such specified percentage in principal amount of the Debentures then outstanding.

Any resolution passed or decision taken at any meeting of holders of Debentures duly held in accordance with this Section shall be binding on all the Securityholders, whether or not present or represented at the meeting.

**ARTICLE IX.**

**<u>SUPPLEMENTAL INDENTURES</u>**

**Section 9.1.&nbsp;&nbsp;&nbsp;&nbsp;<u>Supplemental Indentures without Consent of Securityholders</u>.** The Company, when authorized by a Board Resolution, and the Trustee may from time to time and at any time enter into an indenture or indentures supplemental hereto, without the consent of the Securityholders, for one or more of the following purposes:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;to evidence the succession of another Person to the Company, or successive successions, and the assumption by the successor Person of the covenants, agreements and obligations of the Company, pursuant to Article XI hereof;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;to add to the covenants of the Company such further covenants, restrictions or conditions for the protection of the holders of Debentures as the Board of Directors shall consider to be for the protection of the holders of such Debentures, and to make the occurrence, or the occurrence and continuance, of a default in any of such additional covenants, restrictions or conditions a default or an Event of Default permitting the enforcement of all or any of the several remedies provided in this Indenture as herein set forth; <u>provided</u>, <u>however</u>, that in respect of any such additional covenant restriction or condition such supplemental indenture may provide for a particular period of grace after default (which period may be shorter or longer than that allowed in the case of other defaults) or may provide for an immediate enforcement upon such default or may limit the remedies available to the Trustee upon such default;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;to cure any ambiguity or to correct or supplement any provision contained herein or in any supplemental indenture which may be defective or inconsistent with any other provision contained herein or in any supplemental indenture, or to make such other provisions in regard to matters or questions arising under this Indenture; <u>provided</u> that any such action shall not materially adversely affect the interests of the holders of the Debentures;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;to add to, delete from, or revise the terms of Debentures, including, without limitation, any terms relating to the issuance, exchange, registration or transfer of Debentures, including to provide for transfer procedures and restrictions substantially similar to those applicable to the Capital Securities as required by Section 2.5 (for purposes of assuring that no registration of Debentures is required under the Securities Act); <u>provided</u>, <u>however</u>, that any such action shall not adversely affect the interests of the holders of the Debentures then outstanding (it being understood, for purposes of this proviso, that transfer restrictions on Debentures substantially similar to those that were applicable to Capital Securities shall not be deemed to materially adversely affect the holders of the Debentures);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;to evidence and provide for the acceptance of appointment hereunder by a successor Trustee with respect to the Debentures and to add to or change any of the provisions of this Indenture as shall be necessary to provide for or facilitate the administration of the trusts hereunder by more than one Trustee;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;&nbsp;&nbsp;to make any change (other than as elsewhere provided in this paragraph) that does not adversely affect the rights of any Securityholder in any material respect; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;&nbsp;&nbsp;&nbsp;to provide for the issuance of and establish the form and terms and conditions of the Debentures, to establish the form of any certifications required to be furnished pursuant to the terms of this Indenture or the Debentures, or to add to the rights of the holders of Debentures.

The Trustee is hereby authorized to join with the Company in the execution of any such supplemental indenture, to make any further appropriate agreements and stipulations which may be therein contained and to accept the conveyance, transfer and assignment of any property thereunder, but the Trustee shall not be obligated to, but may in its discretion, enter into any such supplemental indenture which affects the Trustee's own rights, duties or immunities under this Indenture or otherwise.

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Any supplemental indenture authorized by the provisions of this Section 9.1 may be executed by the Company and the Trustee without the consent of the holders of any of the Debentures at the time outstanding, notwithstanding any of the provisions of Section 9.2.

**Section 9.2.&nbsp;&nbsp;&nbsp;&nbsp;<u>Supplemental Indentures with Consent of Securityholders</u>.** With the consent (evidenced as provided in Section 7.1) of the holders of not less than a majority in aggregate principal amount of the Debentures at the time outstanding affected by such supplemental indenture (voting as a class), the Company, when authorized by a Board Resolution, and the Trustee may from time to time and at any time enter into an indenture or indentures supplemental hereto for the purpose of adding any provisions to or changing in any manner or eliminating any of the provisions of this Indenture or of any supplemental indenture or of modifying in any manner the rights of the holders of the Debentures; <u>provided</u>, <u>however</u>, that no such supplemental indenture shall without the consent of the holders of each Debenture then outstanding and affected thereby (i) change the fixed maturity of any Debenture, or reduce the principal amount thereof or any premium thereon, or reduce the rate or extend the time of payment of interest thereon, or reduce any amount payable on redemption thereof or make the principal thereof or any interest or premium thereon payable in any coin or currency other than that provided in the Debentures, or impair or affect the right of any Securityholder to institute suit for payment thereof or impair the right of repayment, if any, at the option of the holder, or (ii) reduce the aforesaid percentage of Debentures the holders of which are required to consent to any such supplemental indenture; <u>provided</u> <u>further</u>, <u>however</u>, that if the Debentures are held by a trust or a trustee of such trust, such supplemental indenture shall not be effective until the holders of a majority in Liquidation Amount of Trust Securities shall have consented to such supplemental indenture; <u>provided further</u>, <u>however</u>, that if the consent of the Securityholder of each outstanding Debenture is required, such supplemental indenture shall not be effective until each holder of the Trust Securities shall have consented to such supplemental indenture.

Upon the request of the Company accompanied by a Board Resolution authorizing the execution of any such supplemental indenture, and upon the filing with the Trustee of evidence of the consent of Securityholders as aforesaid, the Trustee shall join with the Company in the execution of such supplemental indenture unless such supplemental indenture affects the Trustee's own rights, duties or immunities under this Indenture or otherwise, in which case the Trustee may in its discretion, but shall not be obligated to, enter into such supplemental indenture.

Promptly after the execution by the Company and the Trustee of any supplemental indenture pursuant to the provisions of this Section, the Trustee shall transmit by mail, first class postage prepaid, a notice, prepared by the Company, setting forth in general terms the substance of such supplemental indenture, to the Securityholders as their names and addresses appear upon the Debenture Register. Any failure of the Trustee to mail such notice, or any defect therein, shall not, however, in any way impair or affect the validity of any such supplemental indenture.

It shall not be necessary for the consent of the Securityholders under this Section 9.2 to approve the particular form of any proposed supplemental indenture, but it shall be sufficient if such consent shall approve the substance thereof.

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**Section 9.3.&nbsp;&nbsp;&nbsp;&nbsp;<u>Effect of Supplemental Indentures</u>.** Upon the execution of any supplemental indenture pursuant to the provisions of this Article IX, this Indenture shall be and be deemed to be modified and amended in accordance therewith and the respective rights, limitations of rights, obligations, duties and immunities under this Indenture of the Trustee, the Company and the holders of Debentures shall thereafter be determined, exercised and enforced hereunder subject in all respects to such modifications and amendments and all the terms and conditions of any such supplemental indenture shall be and be deemed to be part of the terms and conditions of this Indenture for any and all purposes.

**Section 9.4.&nbsp;&nbsp;&nbsp;&nbsp;<u>Notation on Debentures</u>.** Debentures authenticated and delivered after the execution of any supplemental indenture pursuant to the provisions of this Article IX may bear a notation as to any matter provided for in such supplemental indenture. If the Company or the Trustee shall so determine, new Debentures so modified as to conform, in the opinion of the Board of Directors of the Company, to any modification of this Indenture contained in any such supplemental indenture may be prepared and executed by the Company, authenticated by the Trustee or the Authenticating Agent and delivered in exchange for the Debentures then outstanding.

**Section 9.5.&nbsp;&nbsp;&nbsp;&nbsp;<u>Evidence of Compliance of Supplemental Indenture to be Furnished to</u> <u>Trustee</u>.** The Trustee, subject to the provisions of Sections 6.1 and 6.2, shall, in addition to the documents required by Section 14.6, receive an Officers' Certificate and an Opinion of Counsel as conclusive evidence that any supplemental indenture executed pursuant hereto complies with the requirements of this Article IX. The Trustee shall receive an Opinion of Counsel as conclusive evidence that any supplemental indenture executed pursuant to this Article IX is authorized or permitted by, and conforms to, the terms of this Article IX and that it is proper for the Trustee under the provisions of this Article IX to join in the execution thereof.

**ARTICLE X.**

**<u>REDEMPTION OF SECURITIES</u>**

**Section 10.1.&nbsp;&nbsp;&nbsp;&nbsp;<u>Optional Redemption</u>.** The Company shall have the right (subject to the receipt by the Company of prior approval (i) if the Company is a bank holding company, from the Federal Reserve, if then required under applicable capital guidelines or policies of the Federal Reserve or (ii) if the Company is a savings and loan holding company, from the OTS, if then required under applicable capital guidelines or policies of the OTS) to redeem the Debentures, in whole or in part, but in all cases in a principal amount with integral multiples of $1,000.00, on any Interest Payment Date on or after the Interest Payment Date in June 2012 (the "<u>Redemption Date</u>"), at the Redemption Price.

**Section 10.2.&nbsp;&nbsp;&nbsp;&nbsp;<u>Special Event Redemption</u>.** If a Special Event shall occur and be continuing, the Company shall have the right (subject to the receipt by the Company of prior approval (i) if the Company is a bank holding company, from the Federal Reserve, if then required under applicable capital guidelines or policies of the Federal Reserve or (ii) if the Company is a savings and loan holding company, from the OTS, if then required under applicable capital guidelines or policies of the OTS) to redeem the Debentures in whole, but not in part, at any Interest Payment Date, within 120 days following the occurrence of such Special Event (the "<u>Special Redemption Date</u>") at the Special Redemption Price.

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**Section 10.3.&nbsp;&nbsp;&nbsp;&nbsp;<u>Notice of Redemption; Selection of Debentures</u>.** In case the Company shall desire to exercise the right to redeem all, or, as the case may be, any part of the Debentures, it shall cause to be mailed a notice of such redemption at least 30 and not more than 60 days prior to the Redemption Date or the Special Redemption Date to the holders of Debentures so to be redeemed as a whole or in part at their last addresses as the same appear on the Debenture Register. Such mailing shall be by first class mail. The notice if mailed in the manner herein provided shall be conclusively presumed to have been duly given, whether or not the holder receives such notice. In any case, failure to give such notice by mail or any defect in the notice to the holder of any Debenture designated for redemption as a whole or in part shall not affect the validity of the proceedings for the redemption of any other Debenture.

Each such notice of redemption shall specify the CUSIP number, if any, of the Debentures to be redeemed, the Redemption Date or the Special Redemption Date, as applicable, the Redemption Price or the Special Redemption Price, as applicable, at which Debentures are to be redeemed, the place or places of payment, that payment will be made upon presentation and surrender of such Debentures, that interest accrued to the date fixed for redemption will be paid as specified in said notice, and that on and after said date interest thereon or on the portions thereof to be redeemed will cease to accrue. If less than all the Debentures are to be redeemed the notice of redemption shall specify the numbers of the Debentures to be redeemed. In case the Debentures are to be redeemed in part only, the notice of redemption shall state the portion of the principal amount thereof to be redeemed and shall state that on and after the date fixed for redemption, upon surrender of such Debenture, a new Debenture or Debentures in principal amount equal to the unredeemed portion thereof will be issued.

Prior to 10:00 a.m. New York City time on the Redemption Date or Special Redemption Date, as applicable, the Company will deposit with the Trustee or with one or more paying agents an amount of money sufficient to redeem on the Redemption Date or the Special Redemption Date, as applicable, all the Debentures so called for redemption at the appropriate Redemption Price or Special Redemption Price.

If all, or less than all, the Debentures are to be redeemed, the Company will give the Trustee notice not less than 45 nor more than 60 days, respectively, prior to the Redemption Date or Special Redemption Date, as applicable, as to the aggregate principal amount of Debentures to be redeemed and the Trustee shall select, in such manner as in its sole discretion it shall deem appropriate and fair, the Debentures or portions thereof (in integral multiples of $1,000.00) to be redeemed.

**Section 10.4.&nbsp;&nbsp;&nbsp;&nbsp;<u>Payment of Debentures Called for Redemption</u>.** If notice of redemption has been given as provided in Section 10.3, the Debentures or portions of Debentures with respect to which such notice has been given shall become due and payable on the Redemption Date or Special Redemption Date, as applicable, and at the place or places stated in such notice at the applicable Redemption Price or Special Redemption Price and on and after said date (unless the Company shall default in the payment of such Debentures at the Redemption Price or Special Redemption Price, as applicable) interest on the Debentures or portions of Debentures so called for redemption shall cease to accrue. On presentation and surrender of such Debentures at a place of payment specified in said notice, such Debentures or the specified portions thereof shall be paid and redeemed by the Company at the applicable Redemption Price or Special Redemption Price.

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Upon presentation of any Debenture redeemed in part only, the Company shall execute and the Trustee shall authenticate and make available for delivery to the holder thereof, at the expense of the Company, a new Debenture or Debentures of authorized denominations, in principal amount equal to the unredeemed portion of the Debenture so presented.

**ARTICLE XI.**

**<u>CONSOLIDATION, MERGER, SALE, CONVEYANCE AND LEASE</u>**

**Section 11.1.&nbsp;&nbsp;&nbsp;&nbsp;<u>Company May Consolidate, etc., on Certain Terms</u>.** Nothing contained in this Indenture or in the Debentures shall prevent any consolidation or merger of the Company with or into any other Person (whether or not affiliated with the Company) or successive consolidations or mergers in which the Company or its successor or successors shall be a party or parties, or shall prevent any sale, conveyance, transfer or other disposition of the property of the Company or its successor or successors as an entirety, or substantially as an entirety, to any other Person (whether or not affiliated with the Company, or its successor or successors) authorized to acquire and operate the same; <u>provided</u>, <u>however</u>, that the Company hereby covenants and agrees that, upon any such consolidation, merger (where the Company is not the surviving corporation), sale, conveyance, transfer or other disposition, the due and punctual payment of the principal of (and premium, if any) and interest on all of the Debentures in accordance with their terms, according to their tenor, and the due and punctual performance and observance of all the covenants and conditions of this Indenture to be kept or performed by the Company, shall be expressly assumed by supplemental indenture satisfactory in form to the Trustee executed and delivered to the Trustee by the entity formed by such consolidation, or into which the Company shall have been merged, or by the entity which shall have acquired such property.

**Section 11.2.&nbsp;&nbsp;&nbsp;&nbsp;<u>Successor Entity to be Substituted</u>.** In case of any such consolidation, merger, sale, conveyance, transfer or other disposition and upon the assumption by the successor entity, by supplemental indenture, executed and delivered to the Trustee and satisfactory in form to the Trustee, of the due and punctual payment of the principal of and premium, if any, and interest on all of the Debentures and the due and punctual performance and observance of all of the covenants and conditions of this Indenture to be performed or observed by the Company, such successor entity shall succeed to and be substituted for the Company, with the same effect as if it had been named herein as the Company, and thereupon the predecessor entity shall be relieved of any further liability or obligation hereunder or upon the Debentures. Such successor entity thereupon may cause to be signed, and may issue in its own name, any or all of the Debentures issuable hereunder which theretofore shall not have been signed by the Company and delivered to the Trustee or the Authenticating Agent; and, upon the order of such successor entity instead of the Company and subject to all the terms, conditions and limitations in this Indenture prescribed, the Trustee or the Authenticating Agent shall authenticate and deliver any Debentures which previously shall have been signed and delivered by the officers of the Company, to the Trustee or the Authenticating Agent for authentication, and any Debentures which such successor entity thereafter shall cause to be signed and delivered to the Trustee or the Authenticating Agent for that purpose. All the Debentures so issued shall in all respects have the same legal rank and benefit under this Indenture as the Debentures theretofore or thereafter issued in accordance with the terms of this Indenture as though all of such Debentures had been issued at the date of the execution hereof.

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**Section 11.3.&nbsp;&nbsp;&nbsp;&nbsp;<u>Opinion of Counsel to be Given to Trustee</u>.** The Trustee, subject to the provisions of Sections 6.1 and 6.2, shall receive, in addition to the Opinion of Counsel required by Section 9.5, an Opinion of Counsel as conclusive evidence that any consolidation, merger, sale, conveyance, transfer or other disposition, and any assumption, permitted or required by the terms of this Article XI complies with the provisions of this Article XI.

**ARTICLE XII.**

**<u>SATISFACTION AND DISCHARGE OF INDENTURE</u>**

**Section 12.1.&nbsp;&nbsp;&nbsp;&nbsp;<u>Discharge of Indenture</u>.** When

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;the Company shall deliver to the Trustee for cancellation all Debentures theretofore authenticated (other than any Debentures which shall have been destroyed, lost or stolen and which shall have been replaced or paid as provided in Section 2.6) and not theretofore canceled, or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;all the Debentures not theretofore canceled or delivered to the Trustee for cancellation shall have become due and payable, or are by their terms to become due and payable within 1 year or are to be called for redemption within 1 year under arrangements satisfactory to the Trustee for the giving of notice of redemption, and the Company shall deposit with the Trustee, in trust, funds, which shall be immediately due and payable, sufficient to pay at maturity or upon redemption all of the Debentures (other than any Debentures which shall have been destroyed, lost or stolen and which shall have been replaced or paid as provided in Section 2.6) not theretofore canceled or delivered to the Trustee for cancellation, including principal and premium, if any, and interest due or to become due to such date of maturity or redemption date, as the case may be, but excluding, however, the amount of any moneys for the payment of principal of, and premium, if any, or interest on the Debentures (1) theretofore repaid to the Company in accordance with the provisions of Section 12.4, or (2) paid to any state or to the District of Columbia pursuant to its unclaimed property or similar laws,

and if in the case of either clause (a) or clause (b) the Company shall also pay or cause to be paid all other sums payable hereunder by the Company, then this Indenture shall cease to be of further effect except for the provisions of Sections 2.5, 2.6, 2.8, 3.1, 3.2, 3.4, 6.6, 6.8, 6.9 and 12.4 hereof shall survive until such Debentures shall mature and be paid. Thereafter, Sections 6.6 and 12.4 shall survive, and the Trustee, on demand of the Company accompanied by an Officers' Certificate and an Opinion of Counsel, each stating that all conditions precedent herein provided for relating to the satisfaction and discharge of this Indenture have been complied with, and at the cost and expense of the Company, shall execute proper instruments acknowledging satisfaction of and discharging this Indenture. The Company agrees to reimburse the Trustee for any costs or expenses thereafter reasonably and properly incurred by the Trustee in connection with this Indenture or the Debentures.

**Section 12.2.&nbsp;&nbsp;&nbsp;&nbsp;<u>Deposited Moneys to be Held in Trust by Trustee</u>.** Subject to the provisions of Section 12.4, all moneys deposited with the Trustee pursuant to Section 12.1 shall be held in trust in a

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non-interest bearing account and applied by it to the payment, either directly or through any paying agent (including the Company if acting as its own paying agent), to the holders of the particular Debentures for the payment of which such moneys have been deposited with the Trustee, of all sums due and to become due thereon for principal, and premium, if any, and interest.

**Section 12.3.&nbsp;&nbsp;&nbsp;&nbsp;<u>Paying Agent to Repay Moneys Held</u>.** Upon the satisfaction and discharge of this Indenture all moneys then held by any paying agent of the Debentures (other than the Trustee) shall, upon demand of the Company, be repaid to it or paid to the Trustee, and thereupon such paying agent shall be released from all further liability with respect to such moneys.

**Section 12.4.&nbsp;&nbsp;&nbsp;&nbsp;<u>Return of Unclaimed Moneys</u>.** Any moneys deposited with or paid to the Trustee or any paying agent for payment of the principal of, and premium, if any, or interest on Debentures and not applied but remaining unclaimed by the holders of Debentures for 2 years after the date upon which the principal of, and premium, if any, or interest on such Debentures, as the case may be, shall have become due and payable, shall, subject to applicable escheatment laws, be repaid to the Company by the Trustee or such paying agent on written demand; and the holder of any of the Debentures shall thereafter look only to the Company for any payment which such holder may be entitled to collect, and all liability of the Trustee or such paying agent with respect to such moneys shall thereupon cease.

**ARTICLE XIII.**

**<u>IMMUNITY OF INCORPORATORS, STOCKHOLDERS,</u>**

**<u>OFFICERS AND DIRECTORS</u>**

**Section 13.1.&nbsp;&nbsp;&nbsp;&nbsp;<u>Indenture and Debentures Solely Corporate Obligations</u>.** No recourse for the payment of the principal of or premium, if any, or interest on any Debenture, or for any claim based thereon or otherwise in respect thereof, and no recourse under or upon any obligation, covenant or agreement of the Company in this Indenture or in any supplemental indenture, or in any such Debenture, or because of the creation of any indebtedness represented thereby, shall be had against any incorporator, stockholder, employee, officer or director, as such, past, present or future, of the Company or of any successor Person of the Company, either directly or through the Company or any successor Person of the Company, whether by virtue of any constitution, statute or rule of law, or by the enforcement of any assessment or penalty or otherwise, it being expressly understood that all such liability is hereby expressly waived and released as a condition of, and as a consideration for, the execution of this Indenture and the issue of the Debentures.

**ARTICLE XIV.**

**<u>MISCELLANEOUS PROVISIONS</u>**

**Section 14.1.&nbsp;&nbsp;&nbsp;&nbsp;<u>Successors</u>.** All the covenants, stipulations, promises and agreements of the Company in this Indenture shall bind its successors and assigns whether so expressed or not.

**Section 14.2.&nbsp;&nbsp;&nbsp;&nbsp;<u>Official Acts by Successor Entity</u>.** Any act or proceeding by any provision of this Indenture authorized or required to be done or performed by any board, committee or officer of the Company shall and may be done and performed with like force and effect by the like board, committee,

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officer or other authorized Person of any entity that shall at the time be the lawful successor of the Company.

**Section 14.3.&nbsp;&nbsp;&nbsp;&nbsp;<u>Surrender of Company Powers</u>.** The Company by instrument in writing executed by authority of at least 2/3 (two-thirds) of its Board of Directors and delivered to the Trustee may surrender any of the powers reserved to the Company and thereupon such power so surrendered shall terminate both as to the Company, and as to any permitted successor.

**Section 14.4.&nbsp;&nbsp;&nbsp;&nbsp;<u>Addresses for Notices, etc</u>.** Any notice, consent, direction, request, authorization, waiver or demand which by any provision of this Indenture is required or permitted to be given, made, furnished or served by the Trustee or by the Securityholders on or to the Company may be given or served in writing by being deposited postage prepaid by registered or certified mail in a post office letter box addressed (until another address is filed by the Company, with the Trustee for the purpose) to the Company, 508 Main Street, Reinbeck, Iowa 50669, Attention: Emily J. Girsch. Any notice, consent, direction, request, authorization, waiver or demand by any Securityholder or the Company to or upon the Trustee shall be deemed to have been sufficiently given or made, for all purposes, if given or made in writing at the office of the Trustee, addressed to the Trustee, Rodney Square North, 1100 North Market Street, Wilmington, Delaware 19890-1600, Attention: Corporate Trust Administration. Any notice, consent, direction, request, authorization, waiver or demand on or to any Securityholder shall be deemed to have been sufficiently given or made, for all purposes, if given or made in writing at the address set forth in the Debenture Register.

**Section 14.5.&nbsp;&nbsp;&nbsp;&nbsp;<u>Governing Law</u>.** This Indenture and each Debenture shall be deemed to be a contract made under the law of the State of New York, and for all purposes shall be governed by and construed in accordance with the law of said State, without regard to conflict of laws principles thereof.

**Section 14.6.&nbsp;&nbsp;&nbsp;&nbsp;<u>Evidence of Compliance with Conditions Precedent</u>.** Upon any application or demand by the Company to the Trustee to take any action under any of the provisions of this Indenture, the Company shall furnish to the Trustee an Officers' Certificate stating that in the opinion of the signers all conditions precedent, if any, provided for in this Indenture relating to the proposed action have been complied with and an Opinion of Counsel stating that, in the opinion of such counsel, all such conditions precedent have been complied with.

Each certificate or opinion provided for in this Indenture and delivered to the Trustee with respect to compliance with a condition or covenant provided for in this Indenture shall include (1) a statement that the person making such certificate or opinion has read such covenant or condition; (2) a brief statement as to the nature and scope of the examination or investigation upon which the statements or opinions contained in such certificate or opinion are based; (3) a statement that, in the opinion of such person, he has made such examination or investigation as is necessary to enable him to express an informed opinion as to whether or not such covenant or condition has been complied with; and (4) a statement as to whether or not in the opinion of such person, such condition or covenant has been complied with.

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**Section 14.7.&nbsp;&nbsp;&nbsp;&nbsp;<u>**Table of Contents**, Headings, etc</u>.** The table of contents and the titles and headings of the articles and sections of this Indenture have been inserted for convenience of reference only, are not to be considered a part hereof, and shall in no way modify or restrict any of the terms or provisions hereof.

**Section 14.8.&nbsp;&nbsp;&nbsp;&nbsp;<u>Execution in Counterparts</u>.** This Indenture may be executed in any number of counterparts, each of which shall be an original, but such counterparts shall together constitute but one and the same instrument.

**Section 14.9.&nbsp;&nbsp;&nbsp;&nbsp;<u>Separability</u>.** In case any one or more of the provisions contained in this Indenture or in the Debentures shall for any reason be held to be invalid, illegal or unenforceable in any respect, such invalidity, illegality or unenforceability shall not affect any other provisions of this Indenture or of such Debentures, but this Indenture and such Debentures shall be construed as if such invalid or illegal or unenforceable provision had never been contained herein or therein.

**Section 14.10.&nbsp;&nbsp;&nbsp;&nbsp;<u>Assignment</u>.** The Company will have the right at all times to assign any of its rights or obligations under this Indenture to a direct or indirect wholly owned Subsidiary of the Company, provided that, in the event of any such assignment, the Company will remain liable for all such obligations. Subject to the foregoing, this Indenture is binding upon and inures to the benefit of the parties hereto and their respective successors and assigns. This Indenture may not otherwise be assigned by the parties hereto.

**Section 14.11.&nbsp;&nbsp;&nbsp;&nbsp;<u>Acknowledgment of Rights</u>.** The Company agrees that, with respect to any Debentures held by the Trust or the Institutional Trustee of the Trust, if the Institutional Trustee of the Trust fails to enforce its rights under this Indenture as the holder of Debentures held as the assets of such Trust after the holders of a majority in Liquidation Amount of the Capital Securities of such Trust have so directed such Institutional Trustee, a holder of record of such Capital Securities may, to the fullest extent permitted by law, institute legal proceedings directly against the Company to enforce such Institutional Trustee's rights under this Indenture without first instituting any legal proceedings against such trustee or any other Person. Notwithstanding the foregoing, if an Event of Default has occurred and is continuing and such event is attributable to the failure of the Company to pay interest (or premium, if any) or principal on the Debentures on the date such interest (or premium, if any) or principal is otherwise payable (or in the case of redemption, on the redemption date), the Company agrees that a holder of record of Capital Securities of the Trust may directly institute a proceeding against the Company for enforcement of payment to such holder directly of the principal of (or premium, if any) or interest on the Debentures having an aggregate principal amount equal to the aggregate Liquidation Amount of the Capital Securities of such holder on or after the respective due date specified in the Debentures.

**ARTICLE XV.**

**<u>SUBORDINATION OF DEBENTURES</u>**

**Section 15.1.&nbsp;&nbsp;&nbsp;&nbsp;<u>Agreement to Subordinate</u>.** The Company covenants and agrees, and each holder of Debentures by such Securityholder's acceptance thereof likewise covenants and agrees, that all Debentures shall be issued subject to the provisions of this Article XV; and each holder of a Debenture,

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whether upon original issue or upon transfer or assignment thereof, accepts and agrees to be bound by such provisions.

The payment by the Company of the principal of, and premium, if any, and interest on all Debentures shall, to the extent and in the manner hereinafter set forth, be subordinated and junior in right of payment to the prior payment in full of all Senior Indebtedness of the Company, whether outstanding at the date of this Indenture or thereafter incurred; <u>provided</u>, <u>however</u>, that the Debentures shall rank *pari passu* in all material respects with any current indebtedness, liabilities or obligations of the Company, or any Subsidiary of the Company, under debt securities (or guarantees in respect of debt securities) issued to any trust, or a trustee of a trust, partnership or other entity affiliated with the Company that is, directly or indirectly, a finance subsidiary (as such term is defined in Rule 3a-5 under the Investment Company Act of 1940) or other financing vehicle of the Company or any Subsidiary of the Company in connection with the issuance by that entity of preferred securities or other securities that are eligible to qualify for Tier 1 capital treatment (or its then equivalent) for purposes of the capital adequacy guidelines of the Federal Reserve, as then in effect and applicable to the Company.

No provision of this Article XV shall prevent the occurrence of any default or Event of Default hereunder.

**Section 15.2.&nbsp;&nbsp;&nbsp;&nbsp;<u>Default on Senior Indebtedness</u>.** In the event and during the continuation of any default by the Company in the payment of principal, premium, interest or any other payment due on any Senior Indebtedness of the Company following any grace period, or in the event that the maturity of any Senior Indebtedness of the Company has been accelerated because of a default and such acceleration has not been rescinded or canceled and such Senior Indebtedness has not been paid in full, then, in either case, no payment shall be made by the Company with respect to the principal (including redemption) of, or premium, if any, or interest on the Debentures.

In the event that, notwithstanding the foregoing, any payment shall be received by the Trustee when such payment is prohibited by the preceding paragraph of this Section 15.2, such payment shall, subject to Section 15.7, be held in trust for the benefit of, and shall be paid over or delivered to, the

holders of Senior Indebtedness or their respective representatives, or to the trustee or trustees under any indenture pursuant to which any of such Senior Indebtedness may have been issued, as their respective interests may appear, but only to the extent that the holders of the Senior Indebtedness (or their representative or representatives or a trustee) notify the Trustee in writing within 90 days of such payment of the amounts then due and owing on the Senior Indebtedness and only the amounts specified in such notice to the Trustee shall be paid to the holders of Senior Indebtedness.

**Section 15.3.&nbsp;&nbsp;&nbsp;&nbsp;<u>Liquidation, Dissolution, Bankruptcy</u>.** Upon any payment by the Company or distribution of assets of the Company of any kind or character, whether in cash, property or securities, to creditors upon any dissolution or winding-up or liquidation or reorganization of the Company, whether voluntary or involuntary or in bankruptcy, insolvency, receivership or other proceedings, all amounts due upon all Senior Indebtedness of the Company shall first be paid in full, or payment thereof provided for in money in accordance with its terms, before any payment is made by the Company, on account of the

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principal (and premium, if any) or interest on the Debentures. Upon any such dissolution or winding-up or liquidation or reorganization, any payment by the Company, or distribution of assets of the Company of any kind or character, whether in cash, property or securities, to which the Securityholders or the Trustee would be entitled to receive from the Company, except for the provisions of this Article XV, shall be paid by the Company, or by any receiver, trustee in bankruptcy, liquidating trustee, agent or other Person making such payment or distribution, or by the Securityholders or by the Trustee under this Indenture if received by them or it, directly to the holders of Senior Indebtedness (*pro rata* to such holders on the basis of the respective amounts of Senior Indebtedness held by such holders, as calculated by the Company) or their representative or representatives, or to the trustee or trustees under any indenture pursuant to which any instruments evidencing such Senior Indebtedness may have been issued, as their respective interests may appear, to the extent necessary to pay such Senior Indebtedness in full, in money or money's worth, after giving effect to any concurrent payment or distribution to or for the holders of such Senior Indebtedness, before any payment or distribution is made to the Securityholders or to the Trustee.

In the event that, notwithstanding the foregoing, any payment or distribution of assets of the Company of any kind or character, whether in cash, property or securities, prohibited by the foregoing, shall be received by the Trustee before all Senior Indebtedness is paid in full, or provision is made for such payment in money in accordance with its terms, such payment or distribution shall be held in trust for the benefit of and shall be paid over or delivered to the holders of such Senior Indebtedness or their representative or representatives, or to the trustee or trustees under any indenture pursuant to which any instruments evidencing such Senior Indebtedness may have been issued, as their respective interests may appear, as calculated by the Company, for application to the payment of all Senior Indebtedness, remaining unpaid to the extent necessary to pay such Senior Indebtedness in full in money in accordance with its terms, after giving effect to any concurrent payment or distribution to or for the benefit of the holders of such Senior Indebtedness.

For purposes of this Article XV, the words "cash, property or securities" shall not be deemed to include shares of stock of the Company as reorganized or readjusted, or securities of the Company or any other corporation provided for by a plan of reorganization or readjustment, the payment of which is subordinated at least to the extent provided in this Article XV with respect to the Debentures to the payment of all Senior Indebtedness, that may at the time be outstanding, provided that (i) such Senior Indebtedness is assumed by the new corporation, if any, resulting from any such reorganization or readjustment, and (ii) the rights of the holders of such Senior Indebtedness are not, without the consent of such holders, altered by such reorganization or readjustment. The consolidation of the Company with, or the merger of the Company into, another corporation or the liquidation or dissolution of the Company following the conveyance or transfer of its property as an entirety, or substantially as an entirety, to another corporation upon the terms and conditions provided for in Article XI of this Indenture shall not be deemed a dissolution, winding-up, liquidation or reorganization for the purposes of this Section if such other corporation shall, as a part of such consolidation, merger, conveyance or transfer, comply with the conditions stated in Article XI of this Indenture. Nothing in Section 15.2 or in this Section shall apply to claims of, or payments to, the Trustee under or pursuant to Section 6.6 of this Indenture.

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**Section 15.4.&nbsp;&nbsp;&nbsp;&nbsp;<u>Subrogation</u>.** Subject to the payment in full of all Senior Indebtedness, the Securityholders shall be subrogated to the rights of the holders of such Senior Indebtedness to receive payments or distributions of cash, property or securities of the Company, applicable to such Senior Indebtedness until the principal of (and premium, if any) and interest on the Debentures shall be paid in full. For the purposes of such subrogation, no payments or distributions to the holders of such Senior Indebtedness of any cash, property or securities to which the Securityholders or the Trustee would be entitled except for the provisions of this Article XV, and no payment over pursuant to the provisions of this Article XV to or for the benefit of the holders of such Senior Indebtedness by Securityholders or the Trustee, shall, as between the Company, its creditors other than holders of Senior Indebtedness of the Company, and the holders of the Debentures be deemed to be a payment or distribution by the Company to or on account of such Senior Indebtedness. It is understood that the provisions of this Article XV are and are intended solely for the purposes of defining the relative rights of the holders of the Securities, on the one hand, and the holders of such Senior Indebtedness, on the other hand.

Nothing contained in this Article XV or elsewhere in this Indenture or in the Debentures is intended to or shall impair, as between the Company, its creditors other than the holders of Senior Indebtedness, and the holders of the Debentures, the obligation of the Company, which is absolute and unconditional, to pay to the holders of the Debentures the principal of (and premium, if any) and interest on the Debentures as and when the same shall become due and payable in accordance with their terms, or is intended to or shall affect the relative rights of the holders of the Debentures and creditors of the Company, other than the holders of Senior Indebtedness, nor shall anything herein or therein prevent the Trustee or the holder of any Debenture from exercising all remedies otherwise permitted by applicable law upon default under this Indenture, subject to the rights, if any, under this Article XV of the holders of such Senior Indebtedness in respect of cash, property or securities of the Company, received upon the exercise of any such remedy.

Upon any payment or distribution of assets of the Company referred to in this Article XV, the Trustee, subject to the provisions of Article VI of this Indenture, and the Securityholders shall be entitled to conclusively rely upon any order or decree made by any court of competent jurisdiction in which such dissolution, winding-up, liquidation or reorganization proceedings are pending, or a certificate of the receiver, trustee in bankruptcy, liquidation trustee, agent or other Person making such payment or distribution, delivered to the Trustee or to the Securityholders, for the purposes of ascertaining the Persons entitled to participate in such distribution, the holders of Senior Indebtedness and other indebtedness of the Company, the amount thereof or payable thereon, the amount or amounts paid or distributed thereon and all other facts pertinent thereto or to this Article XV.

**Section 15.5.&nbsp;&nbsp;&nbsp;&nbsp;<u>Trustee to Effectuate Subordination</u>.** Each Securityholder by such Securityholder's acceptance thereof authorizes and directs the Trustee on such Securityholder's behalf to take such action as may be necessary or appropriate to effectuate the subordination provided in this Article XV and appoints the Trustee such Securityholder's attorney-in-fact for any and all such purposes.

**Section 15.6.&nbsp;&nbsp;&nbsp;&nbsp;<u>Notice by the Company</u>.** The Company shall give prompt written notice to a Responsible Officer of the Trustee at the Principal Office of the Trustee of any fact known to the Company that would prohibit the making of any payment of monies to or by the Trustee in respect of the

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Debentures pursuant to the provisions of this Article XV. Notwithstanding the provisions of this Article XV or any other provision of this Indenture, the Trustee shall not be charged with knowledge of the existence of any facts that would prohibit the making of any payment of monies to or by the Trustee in respect of the Debentures pursuant to the provisions of this Article XV, unless and until a Responsible Officer of the Trustee at the Principal Office of the Trustee shall have received written notice thereof from the Company or a holder or holders of Senior Indebtedness or from any trustee therefor; and before the receipt of any such written notice, the Trustee, subject to the provisions of Article VI of this Indenture, shall be entitled in all respects to assume that no such facts exist; <u>provided</u>, <u>however</u>, that if the Trustee shall not have received the notice provided for in this Section at least 2 Business Days prior to the date upon which by the terms hereof any money may become payable for any purpose (including, without limitation, the payment of the principal of (or premium, if any) or interest on any Debenture), then, anything herein contained to the contrary notwithstanding, the Trustee shall have full power and authority to receive such money and to apply the same to the purposes for which they were received, and shall not be affected by any notice to the contrary that may be received by it within 2 Business Days prior to such date.

The Trustee, subject to the provisions of Article VI of this Indenture, shall be entitled to conclusively rely on the delivery to it of a written notice by a Person representing himself to be a holder of Senior Indebtedness (or a trustee or representative on behalf of such holder), to establish that such notice has been given by a holder of such Senior Indebtedness or a trustee or representative on behalf of any such holder or holders. In the event that the Trustee determines in good faith that further evidence is required with respect to the right of any Person as a holder of such Senior Indebtedness to participate in any payment or distribution pursuant to this Article XV, the Trustee may request such Person to furnish evidence to the reasonable satisfaction of the Trustee as to the amount of such Senior Indebtedness held by such Person, the extent to which such Person is entitled to participate in such payment or distribution and any other facts pertinent to the rights of such Person under this Article XV, and, if such evidence is not furnished, the Trustee may defer any payment to such Person pending judicial determination as to the right of such Person to receive such payment.

**Section 15.7.&nbsp;&nbsp;&nbsp;&nbsp;<u>Rights of the Trustee; Holders of Senior Indebtedness</u>.** The Trustee in its individual capacity shall be entitled to all the rights set forth in this Article XV in respect of any Senior Indebtedness at any time held by it, to the same extent as any other holder of Senior Indebtedness, and nothing in this Indenture shall deprive the Trustee of any of its rights as such holder.

With respect to the holders of Senior Indebtedness, the Trustee undertakes to perform or to observe only such of its covenants and obligations as are specifically set forth in this Article XV, and no implied covenants or obligations with respect to the holders of such Senior Indebtedness shall be read into this Indenture against the Trustee. The Trustee shall not be deemed to owe any fiduciary duty to the holders of such Senior Indebtedness and, subject to the provisions of Article VI of this Indenture, the Trustee shall not be liable to any holder of such Senior Indebtedness if it shall pay over or deliver to Securityholders, the Company or any other Person money or assets to which any holder of such Senior Indebtedness shall be entitled by virtue of this Article XV or otherwise.

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Nothing in this Article XV shall apply to claims of, or payments to, the Trustee under or pursuant to Section 6.6.

**Section 15.8.&nbsp;&nbsp;&nbsp;&nbsp;<u>Subordination May Not Be Impaired</u>.** No right of any present or future holder of any Senior Indebtedness to enforce subordination as herein provided shall at any time in any way be prejudiced or impaired by any act or failure to act on the part of the Company, or by any act or failure to act, in good faith, by any such holder, or by any noncompliance by the Company, with the terms, provisions and covenants of this Indenture, regardless of any knowledge thereof that any such holder may have or otherwise be charged with.

Without in any way limiting the generality of the foregoing paragraph, the holders of Senior Indebtedness may, at any time and from time to time, without the consent of or notice to the Trustee or the Securityholders, without incurring responsibility to the Securityholders and without impairing or releasing the subordination provided in this Article XV or the obligations hereunder of the holders of the Debentures to the holders of such Senior Indebtedness, do any one or more of the following: (i) change the manner, place or terms of payment or extend the time of payment of, or renew or alter, such Senior Indebtedness, or otherwise amend or supplement in any manner such Senior Indebtedness or any instrument evidencing the same or any agreement under which such Senior Indebtedness is outstanding; (ii) sell, exchange, release or otherwise deal with any property pledged, mortgaged or otherwise securing such Senior Indebtedness; (iii) release any Person liable in any manner for the collection of such Senior Indebtedness; and (iv) exercise or refrain from exercising any rights against the Company, and any other Person.

*Signatures appear on the following page*

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

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| | | | |
|:---|:---|:---|:---|
| LINCOLN BANCORP | | | |
| | BY | /s/ Steve Tscherter | /s/ Steve Tscherter |
| | | Name: | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Steve Tscherter |
| | | Title: | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Vice President |
| | WILMINGTON TRUST COMPANY, as Trustee | WILMINGTON TRUST COMPANY, as Trustee | WILMINGTON TRUST COMPANY, as Trustee |
| | BY | /s/ Christopher J. Monigle | /s/ Christopher J. Monigle |
| | | Name: | Christopher J. Monigle |
| | | Title: | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Vice President |

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**EXHIBIT A**

**FORM OF FLOATING RATE JUNIOR SUBORDINATED DEFERRABLE INTEREST**

**DEBENTURE**

[FORM OF FACE OF SECURITY]

THIS SECURITY IS NOT A SAVINGS ACCOUNT OR DEPOSIT AND IT IS NOT INSURED BY THE UNITED STATES OR ANY AGENCY OR FUND OF THE UNITED STATES, INCLUDING THE FEDERAL DEPOSIT INSURANCE CORPORATION.

THIS SECURITY HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT"), ANY STATE SECURITIES LAWS OR ANY OTHER APPLICABLE SECURITIES LAW. NEITHER THIS SECURITY NOR ANY INTEREST OR PARTICIPATION HEREIN MAY BE REOFFERED, SOLD, ASSIGNED, TRANSFERRED, PLEDGED, ENCUMBERED OR OTHERWISE DISPOSED OF IN THE ABSENCE OF SUCH REGISTRATION OR UNLESS SUCH TRANSACTION IS EXEMPT FROM, OR NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND ANY APPLICABLE STATE SECURITIES LAWS. THE HOLDER OF THIS SECURITY BY ITS ACCEPTANCE HEREOF AGREES TO OFFER, SELL OR OTHERWISE TRANSFER THIS SECURITY ONLY (A) TO THE COMPANY, (B) PURSUANT TO A REGISTRATION STATEMENT THAT HAS BEEN DECLARED EFFECTIVE UNDER THE SECURITIES ACT, (C) TO A PERSON WHOM THE SELLER REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER IN A TRANSACTION MEETING THE REQUIREMENTS OF RULE 144A SO LONG AS THIS SECURITY IS ELIGIBLE FOR RESALE PURSUANT TO RULE 144A IN ACCORDANCE WITH RULE 144A, (D) TO A NON-U.S. PERSON IN AN OFFSHORE TRANSACTION IN ACCORDANCE WITH RULE 903 OR RULE 904 (AS APPLICABLE) OF REGULATION S UNDER THE SECURITIES ACT, (E) TO AN INSTITUTIONAL "ACCREDITED INVESTOR" WITHIN THE MEANING OF SUBPARAGRAPH (A) OF RULE 501 UNDER THE SECURITIES ACT THAT IS ACQUIRING THIS SECURITY FOR ITS OWN ACCOUNT, OR FOR THE ACCOUNT OF SUCH AN INSTITUTIONAL ACCREDITED INVESTOR, FOR INVESTMENT PURPOSES AND NOT WITH A VIEW TO, OR FOR OFFER OR SALE IN CONNECTION WITH, ANY DISTRIBUTION IN VIOLATION OF THE SECURITIES ACT, OR (F) PURSUANT TO ANY OTHER AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT, SUBJECT TO THE COMPANY'S RIGHT PRIOR TO ANY SUCH OFFER, SALE OR TRANSFER TO REQUIRE THE DELIVERY OF AN OPINION OF COUNSEL, CERTIFICATION AND/OR OTHER INFORMATION SATISFACTORY TO IT IN ACCORDANCE WITH THE INDENTURE, A COPY OF WHICH MAY BE OBTAINED FROM THE COMPANY.

THE HOLDER OF THIS SECURITY BY ITS ACCEPTANCE HEREOF ALSO AGREES, REPRESENTS AND WARRANTS THAT IT IS NOT AN EMPLOYEE BENEFIT, INDIVIDUAL RETIREMENT ACCOUNT OR OTHER PLAN OR ARRANGEMENT SUBJECT TO TITLE I OF THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED ("ERISA"), OR SECTION 4975 OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE "CODE")

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(EACH A "PLAN"), OR AN ENTITY WHOSE UNDERLYING ASSETS INCLUDE "PLAN ASSETS" BY REASON OF ANY PLAN'S INVESTMENT IN THE ENTITY, AND NO PERSON INVESTING "PLAN ASSETS" OF ANY PLAN MAY ACQUIRE OR HOLD THE SECURITIES OR ANY INTEREST THEREIN, UNLESS SUCH PURCHASER OR HOLDER IS ELIGIBLE FOR EXEMPTIVE RELIEF AVAILABLE UNDER U.S. DEPARTMENT OF LABOR PROHIBITED TRANSACTION CLASS EXEMPTION 96-23, 95-60, 91-38, 90-1 OR 84-14 OR ANOTHER APPLICABLE EXEMPTION OR ITS PURCHASE AND HOLDING OF THIS SECURITY IS NOT PROHIBITED BY SECTION 406 OF ERISA OR SECTION 4975 OF THE CODE WITH RESPECT TO SUCH PURCHASE OR HOLDING. ANY PURCHASER OR HOLDER OF THE SECURITIES OR ANY INTEREST THEREIN WILL BE DEEMED TO HAVE REPRESENTED BY ITS PURCHASE AND HOLDING THEREOF THAT EITHER (i) IT IS NOT AN EMPLOYEE BENEFIT PLAN WITHIN THE MEANING OF SECTION 3(3) OF ERISA, OR A PLAN TO WHICH SECTION 4975 OF THE CODE IS APPLICABLE, A TRUSTEE OR OTHER PERSON ACTING ON BEHALF OF AN EMPLOYEE BENEFIT PLAN OR PLAN, OR ANY OTHER PERSON OR ENTITY USING THE ASSETS OF ANY EMPLOYEE BENEFIT PLAN OR PLAN TO FINANCE SUCH PURCHASE, OR (ii) SUCH PURCHASE WILL NOT RESULT IN A PROHIBITED TRANSACTION UNDER SECTION 406 OF ERISA OR SECTION 4975 OF THE CODE FOR WHICH THERE IS NO APPLICABLE STATUTORY OR ADMINISTRATIVE EXEMPTION.

THIS SECURITY WILL BE ISSUED AND MAY BE TRANSFERRED ONLY IN BLOCKS HAVING AN AGGREGATE PRINCIPAL AMOUNT OF NOT LESS THAN $100,000.00 AND MULTIPLES OF $1,000.00 IN EXCESS THEREOF. ANY ATTEMPTED TRANSFER OF THIS SECURITY IN A BLOCK HAVING AN AGGREGATE PRINCIPAL AMOUNT OF LESS THAN $100,000.00 SHALL BE DEEMED TO BE VOID AND OF NO LEGAL EFFECT WHATSOEVER.

THE HOLDER OF THIS SECURITY AGREES THAT IT WILL COMPLY WITH THE FOREGOING RESTRICTIONS.

IN CONNECTION WITH ANY TRANSFER, THE HOLDER WILL DELIVER TO THE REGISTRAR AND TRANSFER AGENT SUCH CERTIFICATES AND OTHER INFORMATION AS MAY BE REQUIRED BY THE INDENTURE TO CONFIRM THAT THE TRANSFER COMPLIES WITH THE FOREGOING RESTRICTIONS.

Floating Rate Junior Subordinated Deferrable Interest Debenture

of

Lincoln Bancorp

June 21, 2007

Lincoln Bancorp, an Iowa corporation (the "Company" which term includes any successor Person under the Indenture hereinafter referred to), for value received promises to pay to Wilmington Trust Company, not in its individual capacity but solely as Institutional Trustee for Lincoln Bancorp Capital Trust II (the "Holder") or registered assigns, the principal sum of nine million two hundred

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seventy-nine thousand dollars ($9,279,000.00) on September 15, 2037, and to pay interest on said principal sum from June 21, 2007, or from the most recent Interest Payment Date (as defined below) to which interest has been paid or duly provided for, quarterly (subject to deferral as set forth herein) in arrears on March 15, June 15, September 15 and December 15 of each year or if such day is not a Business Day, then the next succeeding Business Day (each such date, an "Interest Payment Date") (it being understood that interest accrues for any such non-Business Day), commencing on the Interest Payment Date in September 2007, at an annual rate equal to 6.80% beginning on (and including) the date of original issuance and ending on (but excluding) the Interest Payment Date in September 2007 and at an annual rate for each successive period beginning on (and including) the Interest Payment Date in September 2007, and each succeeding Interest Payment Date, and ending on (but excluding) the next succeeding Interest Payment Date (each a "Distribution Period"), equal to 3-Month LIBOR, determined as described below, plus 1.44% (the "Coupon Rate"), applied to the principal amount hereof, until the principal hereof is paid or duly provided for or made available for payment, and on any overdue principal and (without duplication and to the extent that payment of such interest is enforceable under applicable law) on any overdue installment of interest (including Additional Interest) at the Interest Rate in effect for each applicable period, compounded quarterly, from the dates such amounts are due until they are paid or made available for payment. The amount of interest payable for any period will be computed on the basis of the actual number of days in the Distribution Period concerned divided by 360. The interest installment so payable, and punctually paid or duly provided for, on any Interest Payment Date will, as provided in the Indenture, be paid to the Person in whose name this Debenture (or one or more Predecessor Securities) is registered at the close of business on the regular record date for such interest installment, which shall be fifteen Business Days prior to the day on which the relevant Interest Payment Date occurs. Any such interest installment not so punctually paid or duly provided for shall forthwith cease to be payable to the Holder on such regular record date and may be paid to the Person in whose name this Debenture (or one or more Predecessor Securities) is registered at the close of business on a special record date.

"3-Month LIBOR" as used herein, means the London interbank offered interest rate for three-month U.S. dollar deposits determined by the Trustee in the following order of priority: (i) the rate (expressed as a percentage per annum) for U.S. dollar deposits having a three-month maturity that appears on Reuters Page LIBOR01 as of 11:00 a.m. (London time) on the related Determination Date ("Reuters Page LIBOR01" means the display designated as "LIBOR01" on Reuters or such other page as may replace Reuters Page LIBOR01 on that service or such other service or services as may be nominated by the British Bankers' Association as the information vendor for the purpose of displaying London interbank offered rates for U.S. dollar deposits); (ii) if such rate cannot be identified on the related Determination Date, the Trustee will request the principal London offices of four leading banks in the London interbank market to provide such banks' offered quotations (expressed as percentages per annum) to prime banks in the London interbank market for U.S. dollar deposits having a three-month maturity as of 11:00 a.m. (London time) on such Determination Date. If at least two quotations are provided, 3- Month LIBOR will be the arithmetic mean of such quotations; (iii) if fewer than two such quotations are provided as requested in clause (ii) above, the Trustee will request four major New York City banks to provide such banks' offered quotations (expressed as percentages per annum) to leading European banks for loans in U.S. dollars as of 11:00 a.m. (London time) on such Determination Date. If at least two such

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quotations are provided, 3-Month LIBOR will be the arithmetic mean of such quotations; and (iv) if fewer than two such quotations are provided as requested in clause (iii) above, 3-Month LIBOR will be a 3- Month LIBOR determined with respect to the Distribution Period immediately preceding such current Distribution Period. If the rate for U.S. dollar deposits having a three-month maturity that initially appears on Reuters Page LIBOR01 as of 11:00 a.m. (London time) on the related Determination Date is superseded on the Reuters Page LIBOR01 by a corrected rate by 12:00 noon (London time) on such Determination Date, then the corrected rate as so substituted on the applicable page will be the applicable 3-Month LIBOR for such Determination Date. As used herein, "Determination Date" means the date that is two London Banking Days (i.e., a business day in which dealings in deposits in U.S. dollars are transacted in the London interbank market) preceding the commencement of the relevant Distribution Period.

The Interest Rate for any Distribution Period will at no time be higher than the maximum rate then permitted by New York law as the same may be modified by United States law.

All percentages resulting from any calculations on the Debentures will be rounded, if necessary, to the nearest one hundred-thousandth of a percentage point, with five one-millionths of a percentage point rounded upward (e.g., 9.876545% (or .09876545) being rounded to 9.87655% (or .0987655), and all dollar amounts used in or resulting from such calculation will be rounded to the nearest cent (with one- half cent being rounded upward)).

The principal of and interest on this Debenture shall be payable at the office or agency of the Trustee (or other paying agent appointed by the Company) maintained for that purpose in any coin or currency of the United States of America that at the time of payment is legal tender for payment of public and private debts; <u>provided</u>, <u>however</u>, that payment of interest may be made by check mailed to the registered holder at such address as shall appear in the Debenture Register if a request for a wire transfer by such holder has not been received by the Company or by wire transfer to an account appropriately designated by the holder hereof. Notwithstanding the foregoing, so long as the holder of this Debenture is the Institutional Trustee, the payment of the principal of and interest on this Debenture will be made in immediately available funds at such place and to such account as may be designated by the Trustee.

So long as no Acceleration Event of Default has occurred and is continuing, the Company shall have the right, from time to time, and without causing an Event of Default, to defer payments of interest on the Debentures by extending the interest payment period on the Debentures at any time and from time to time during the term of the Debentures, for up to 20 consecutive quarterly periods (each such extended interest payment period, an "Extension Period"), during which Extension Period no interest (including Additional Interest) shall be due and payable (except any Additional Sums that may be due and payable). No Extension Period may end on a date other than an Interest Payment Date. During an Extension Period, interest will continue to accrue on the Debentures, and interest on such accrued interest will accrue at an annual rate equal to the Interest Rate in effect for such Extension Period, compounded quarterly from the date such interest would have been payable were it not for the Extension Period, to the extent permitted by law (such interest referred to herein as "Additional Interest"). At the end of any such Extension Period the Company shall pay all interest then accrued and unpaid on the Debentures (together with Additional Interest thereon); <u>provided</u>, <u>however</u>, that no Extension Period may extend beyond the Maturity Date;

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<u>provided further</u>, <u>however</u>, that during any such Extension Period, the Company shall not and shall not permit any Affiliate to engage in any of the activities or transactions described on the reverse side hereof and in the Indenture. Prior to the termination of any Extension Period, the Company may further extend such period, provided that such period together with all such previous and further consecutive extensions thereof shall not exceed 20 consecutive quarterly periods, or extend beyond the Maturity Date. Upon the termination of any Extension Period and upon the payment of all accrued and unpaid interest and Additional Interest, the Company may commence a new Extension Period, subject to the foregoing requirements. No interest or Additional Interest shall be due and payable during an Extension Period, except at the end thereof, but each installment of interest that would otherwise have been due and payable during such Extension Period shall bear Additional Interest. The Company must give the Trustee notice of its election to begin or extend an Extension Period by the close of business at least 15 Business Days prior to the Interest Payment Date with respect to which interest on the Debentures would have been payable except for the election to begin or extend such Extension Period.

The indebtedness evidenced by this Debenture is, to the extent provided in the Indenture, subordinate and junior in right of payment to the prior payment in full of all Senior Indebtedness, and this Debenture is issued subject to the provisions of the Indenture with respect thereto. Each holder of this Debenture, by accepting the same, (a) agrees to and shall be bound by such provisions, (b) authorizes and directs the Trustee on his or her behalf to take such action as may be necessary or appropriate to acknowledge or effectuate the subordination so provided and (c) appoints the Trustee his or her attorney-in-fact for any and all such purposes. Each holder hereof, by his or her acceptance hereof, hereby waives all notice of the acceptance of the subordination provisions contained herein and in the Indenture by each holder of Senior Indebtedness, whether now outstanding or hereafter incurred, and waives reliance by each such holder upon said provisions.

This Debenture shall not be entitled to any benefit under the Indenture hereinafter referred to, be valid or become obligatory for any purpose until the certificate of authentication hereon shall have been signed by or on behalf of the Trustee.

The provisions of this Debenture are continued on the reverse side hereof and such provisions shall for all purposes have the same effect as though fully set forth at this place.

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IN WITNESS WHEREOF, the Company has duly executed this certificate.

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| | |
|:---|:---|
| LINCOLN BANCORP | LINCOLN BANCORP |
| By | |
| | Name: |
| | Title: |

---

<u>CERTIFICATE OF AUTHENTICATION</u>

This is one of the Debentures referred to in the within-mentioned Indenture.

---

| | |
|:---|:---|
| WILMINGTON TRUST COMPANY, as Trustee | WILMINGTON TRUST COMPANY, as Trustee |
| By: |  |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Authorized Officer |

---

[FORM OF REVERSE OF DEBENTURE]

This Debenture is one of the floating rate junior subordinated deferrable interest debentures of the Company, all issued or to be issued under and pursuant to the Indenture dated as of June 21, 2007 (the "Indenture"), duly executed and delivered between the Company and the Trustee, to which Indenture reference is hereby made for a description of the rights, limitations of rights, obligations, duties and immunities thereunder of the Trustee, the Company and the holders of the Debentures. The Debentures are limited in aggregate principal amount as specified in the Indenture.

Upon the occurrence and continuation of a Special Event prior to the Interest Payment Date in June 2012, the Company shall have the right to redeem the Debentures in whole, but not in part, at any Interest Payment Date, within 120 days following the occurrence of such Special Event, at the Special Redemption Price.

In addition, the Company shall have the right to redeem the Debentures, in whole or in part, but in all cases in a principal amount with integral multiples of $1,000.00, on any Interest Payment Date on or after the Interest Payment Date in June 2012, at the Redemption Price.

Prior to 10:00 a.m. New York City time on the Redemption Date or Special Redemption Date, as applicable, the Company will deposit with the Trustee or with one or more paying agents an amount of money sufficient to redeem on the Redemption Date or the Special Redemption Date, as applicable, all the Debentures so called for redemption at the appropriate Redemption Price or Special Redemption Price.

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If all, or less than all, the Debentures are to be redeemed, the Company will give the Trustee notice not less than 45 nor more than 60 days, respectively, prior to the Redemption Date or Special Redemption Date, as applicable, as to the aggregate principal amount of Debentures to be redeemed and the Trustee shall select, in such manner as in its sole discretion it shall deem appropriate and fair, the Debentures or portions thereof (in integral multiples of $1,000.00) to be redeemed.

Notwithstanding the foregoing, any redemption of Debentures by the Company shall be subject to the receipt of any and all required regulatory approvals.

In case an Acceleration Event of Default shall have occurred and be continuing, upon demand of the Trustee, the principal of all of the Debentures shall become due and payable in the manner, with the effect and subject to the conditions provided in the Indenture.

The Indenture contains provisions permitting the Company and the Trustee, with the consent of the holders of not less than a majority in aggregate principal amount of the Debentures at the time outstanding, to execute supplemental indentures for the purpose of adding any provisions to or changing in any manner or eliminating any of the provisions of this Indenture or of any supplemental indenture or of modifying in any manner the rights of the holders of the Debentures; <u>provided</u>, <u>however</u>, that no such supplemental indenture shall without the consent of the holders of each Debenture then outstanding and affected thereby (i) change the fixed maturity of any Debenture, or reduce the principal amount thereof or any premium thereon, or reduce the rate or extend the time of payment of interest thereon, or reduce any amount payable on redemption thereof or make the principal thereof or any interest or premium thereon payable in any coin or currency other than that provided in the Debentures, or impair or affect the right of any Securityholder to institute suit for payment thereof or impair the right of repayment, if any, at the option of the holder, or (ii) reduce the aforesaid percentage of Debentures the holders of which are required to consent to any such supplemental indenture.

The Indenture also contains provisions permitting the holders of a majority in aggregate principal amount of the Debentures at the time outstanding on behalf of the holders of all of the Debentures to waive (or modify any previously granted waiver of) any past default or Event of Default, and its consequences, except a default (a) in the payment of principal of, premium, if any, or interest on any of the Debentures, (b) in respect of covenants or provisions hereof or of the Indenture which cannot be modified or amended without the consent of the holder of each Debenture affected, or (c) in respect of the covenants contained in Section 3.9 of the Indenture; <u>provided</u>, <u>however</u>, that if the Debentures are held by the Trust or a trustee of such trust, such waiver or modification to such waiver shall not be effective until the holders of a majority in Liquidation Amount of Trust Securities of the Trust shall have consented to such waiver or modification to such waiver, <u>provided</u>, <u>further</u>, that if the consent of the holder of each outstanding Debenture is required, such waiver shall not be effective until each holder of the Trust Securities of the Trust shall have consented to such waiver. Upon any such waiver, the default covered thereby shall be deemed to be cured for all purposes of the Indenture and the Company, the Trustee and the holders of the Debentures shall be restored to their former positions and rights hereunder, respectively; but no such waiver shall extend to any subsequent or other default or Event of Default or impair any right consequent thereon. Whenever any default or Event of Default hereunder shall have been

------

waived as permitted by the Indenture, said default or Event of Default shall for all purposes of the Debentures and the Indenture be deemed to have been cured and to be not continuing.

No reference herein to the Indenture and no provision of this Debenture or of the Indenture shall alter or impair the obligation of the Company, which is absolute and unconditional, to pay the principal of and premium, if any, and interest, including Additional Interest, on this Debenture at the time and place and at the rate and in the money herein prescribed.

The Company has agreed that if Debentures are initially issued to the Trust or a trustee of such Trust in connection with the issuance of Trust Securities by the Trust (regardless of whether Debentures continue to be held by such Trust) and (i) there shall have occurred and be continuing an Event of Default, (ii) the Company shall be in default with respect to its payment of any obligations under the Capital Securities Guarantee, or (iii) the Company shall have given notice of its election to defer payments of interest on the Debentures by extending the interest payment period as provided herein and such Extension Period, or any extension thereof, shall be continuing, then the Company shall not, and shall not allow any Affiliate of the Company to, (x) declare or pay any dividends or distributions on, or redeem, purchase, acquire, or make a liquidation payment with respect to, any of the Company's capital stock or its Affiliates' capital stock (other than payments of dividends or distributions to the Company) or make any guarantee payments with respect to the foregoing or (y) make any payment of principal of or interest or premium, if any, on or repay, repurchase or redeem any debt securities of the Company or any Affiliate that rank *pari passu* in all respects with or junior in interest to the Debentures (other than, with respect to clauses (x) and (y) above, (1) repurchases, redemptions or other acquisitions of shares of capital stock of the Company in connection with any employment contract, benefit plan or other similar arrangement with or for the benefit of one or more employees, officers, directors or consultants, in connection with a dividend reinvestment or stockholder stock purchase plan or in connection with the issuance of capital stock of the Company (or securities convertible into or exercisable for such capital stock) as consideration in an acquisition transaction entered into prior to the applicable Extension Period, if any, (2) as a result of any exchange or conversion of any class or series of the Company's capital stock (or any capital stock of a subsidiary of the Company) for any class or series of the Company's capital stock or of any class or series of the Company's indebtedness for any class or series of the Company's capital stock, (3) the purchase of fractional interests in shares of the Company's capital stock pursuant to the conversion or exchange provisions of such capital stock or the security being converted or exchanged, (4) any declaration of a dividend in connection with any stockholders' rights plan, or the issuance of rights, stock or other property under any stockholders' rights plan, or the redemption or repurchase of rights pursuant thereto, (5) any dividend in the form of stock, warrants, options or other rights where the dividend stock or the stock issuable upon exercise of such warrants, options or other rights is the same stock as that on which the dividend is being paid or ranks *pari passu* with or junior to such stock and any cash payments in lieu of fractional shares issued in connection therewith, or (6) payments under the Capital Securities Guarantee).

The Debentures are issuable only in registered, certificated form without coupons and in minimum denominations of $100,000.00 and any multiple of $1,000.00 in excess thereof. As provided in the Indenture and subject to the transfer restrictions and limitations as may be contained herein and

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therein from time to time, this Debenture is transferable by the holder hereof on the Debenture Register of the Company. Upon due presentment for registration of transfer of any Debenture at the Principal Office of the Trustee or at any office or agency of the Company maintained for such purpose as provided in Section 3.2 of the Indenture, the Company shall execute, the Company or the Trustee shall register and the Trustee or the Authenticating Agent shall authenticate and make available for delivery in the name of the transferee or transferees a new Debenture for a like aggregate principal amount. All Debentures presented for registration of transfer or for exchange or payment shall (if so required by the Company or the Trustee or the Authenticating Agent) be duly endorsed by, or be accompanied by a written instrument or instruments of transfer in form satisfactory to, the Company and the Trustee or the Authenticating Agent duly executed by the holder or his attorney duly authorized in writing. No service charge shall be made for any exchange or registration of transfer of Debentures, but the Company or the Trustee may require payment of a sum sufficient to cover any tax, fee or other governmental charge that may be imposed in connection therewith.

Prior to due presentment for registration of transfer of any Debenture, the Company, the Trustee, any Authenticating Agent, any paying agent, any transfer agent and any Debenture registrar may deem the Person in whose name such Debenture shall be registered upon the Debenture Register to be, and may treat him as, the absolute owner of such Debenture (whether or not such Debenture shall be overdue) for the purpose of receiving payment of or on account of the principal of, premium, if any, and interest on such Debenture and for all other purposes; and neither the Company nor the Trustee nor any Authenticating Agent nor any paying agent nor any transfer agent nor any Debenture registrar shall be affected by any notice to the contrary. All such payments so made to any holder for the time being or upon his order shall be valid, and, to the extent of the sum or sums so paid, effectual to satisfy and discharge the liability for moneys payable upon any such Debenture.

No recourse for the payment of the principal of or premium, if any, or interest on any Debenture, or for any claim based thereon or otherwise in respect thereof, and no recourse under or upon any obligation, covenant or agreement of the Company in the Indenture or in any supplemental indenture, or in any such Debenture, or because of the creation of any indebtedness represented thereby, shall be had against any incorporator, stockholder, employee, officer or director, as such, past, present or future, of the Company or of any successor Person of the Company, either directly or through the Company or any successor Person of the Company, whether by virtue of any constitution, statute or rule of law, or by the enforcement of any assessment or penalty or otherwise, it being expressly understood that all such liability is hereby expressly waived and released as a condition of, and as a consideration for, the execution of the Indenture and the issue of the Debentures.

Capitalized terms used and not defined in this Debenture shall have the meanings assigned in the Indenture dated as of the date of original issuance of this Debenture between the Trustee and the Company.

THE INDENTURE AND THE DEBENTURES SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK WITHOUT REGARD TO CONFLICT OF LAW PRINCIPLES THEREOF.

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**EXHIBIT B**

**FORM OF CERTIFICATE TO TRUSTEE**

Pursuant to Section 3.5 of the Indenture between Lincoln Bancorp, as the Company (the "Company"), and Wilmington Trust Company, as Trustee, dated as of June 21, 2007 (the "Indenture"), the undersigned hereby certifies as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.&nbsp;&nbsp;&nbsp;&nbsp;In my capacity as an officer of the Company, I would normally have knowledge of any default by the Company during the last fiscal year in the performance of any covenants of the Company contained in the Indenture.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.&nbsp;&nbsp;&nbsp;&nbsp;[To my knowledge, the Company is not in default in the performance of any covenants contained in the Indenture.

***or, alternatively:***

I am aware of the default(s) in the performance of covenants in the Indentures, as specified below.]

Capitalized terms used herein, and not otherwise defined herein, have the respective meanings ascribed thereto in the Indenture.

IN WITNESS WHEREOF, the undersigned has executed this Certificate.

Date:

---

| |
|:---|
| Name: |
| Title: |

---

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**EXHIBIT C**

**FORM OF QUARTERLY REPORT**

The Bank of New York

101 Barclay Street, 7E

New York, New York 10286

Attention: CDO Transaction Management Group

BANK HOLDING COMPANY

As of [March 31, June 30, September 30 or December 31], 20__

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| | |
|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Tier 1 to Risk Weighted Assets | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ratio of Double Leverage | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Non-Performing Assets to Loans and OREO | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ratio of Reserves to Non-Performing Loans | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ratio of Net Charge-Offs to Loans | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Return on Average Assets (annualized)\*\* | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net Interest Margin (annualized)\*\* | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Efficiency Ratio | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ratio of Loans to Assets | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ratio of Loans to Deposits | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total Assets |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Year to Date Income |  |

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cc: FTN Financial Capital Markets845 Crossover Lane, Suite 150Memphis, Tennessee 38117Attention: Structured Finance Group Keefe, Bruyette & Woods, Inc.787 7th Avenue, 4th FloorNew York, New York 10019Attention: Mitchell Kleinman, General Counsel

________________

\*\* To annualize Return on Average Assets and Net Interest Margin do the following:

1<sup>st</sup> Quarter-multiply income statement item by 4, then divide by balance sheet item(s)

2<sup>nd</sup> Quarter-multiply income statement item by 2,then divide by balance sheet item(s)

3<sup>rd</sup> Quarter-divide income statement item by 3, then multiply by 4, then divide by balance sheet item(s)

4<sup>th</sup> Quarter-should already be an annual number

NO ADJUSTMENT SHOULD BE MADE TO BALANCE SHEET ITEMS

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**Financial Definitions**

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| | |
|:---|:---|
| **Report Item** | **Description of Calculation** |
| "Tier 1 Capital" to Risk Weighted Assets | Tier 1 Risk Ratio: Core Capital (Tier 1)/ Risk- Adjusted Assets |
| Ratio of Double Leverage | Total equity investments in subsidiaries divided by the total equity capital. This field is calculated at the parent company level. "Subsidiaries" include bank, bank holding company, and nonbank subsidiaries. |
| Non-Performing Assets to Loans and OREO | Total Nonperforming Assets (NPLs+Foreclosed Real Estate+Other Nonaccrual & Repossessed Assets)/ Total Loans + Foreclosed Real Estate |
| Ratio of Reserves to Non-Performing Loans | Total Loan Loss and Allocated Transfer Risk Reserves/ Total Nonperforming Loans (Nonaccrual + Restructured) |
| Ratio of Net Charge-Offs to Loans | Net charge offs for the period as a percentage of average loans. |
| Return on Assets | Net Income as a percentage of Assets. |
| Net&nbsp;&nbsp;&nbsp;&nbsp;Interest Margin | (Net Interest Income Fully Taxable Equivalent, if available / Average Earning Assets) |
| Efficiency Ratio | (Noninterest Expense)/ (Net Interest Income Fully Taxable Equivalent, if available, plus Noninterest Income) |
| Ratio of Loans to Assets | Total Loans & Leases (Net of Unearned Income & Gross of Reserve)/ Total Assets |
| Ratio of Loans to Deposits | Total Loans & Leases (Net of Unearned Income & Gross of Reserve)/ Total Deposits (Includes Domestic and Foreign Deposits) |
| Total Assets | The sum of total assets. Includes cash and balances due from depository institutions; securities; federal funds sold and securities purchased under agreements to resell; loans and lease financing receivables; trading assets; premises and fixed assets; other real estate owned; investments in unconsolidated subsidiaries and associated companies; customer's liability on acceptances outstanding; intangible assets; and other assets. |
| Net Income | The sum of income (loss) before extraordinary items and other adjustments and extraordinary items; and other adjustments, net of income taxes. |

---

\* A table describing the quarterly report calculation procedures is

provided on page 2-3

## Exhibit 5.1

**Exhibit 5.1**

![alstonbirdlogoa.jpg](alstonbirdlogoa.jpg)

One Atlantic Center

1201 West Peachtree Street

Atlanta, GA 30309-3424

404-881-7000 \| Fax: 404-881-7777

June 25, 2026

Lincoln Bancorp

508 Main Street

Reinbeck, Iowa 50669

Re: Lincoln Bancorp - Registration Statement on Form S-1

Ladies and Gentlemen:

We have acted as counsel for Lincoln Bancorp, an Iowa corporation (the "<u>Company</u>"), in connection with the filing with the U.S. Securities and Exchange Commission (the "<u>Commission</u>") under the Securities Act of 1933, as amended (the "<u>Act</u>"), of a Registration Statement on Form S-1 (the "<u>Registration Statement</u>") relating to the resale registration of 821,917 shares of the Company's common stock, $0.01 par value per share (the "<u>Shares</u>"), for resale by Castle Creek Capital Partners VII, LP and EJF Sidecar Fund, Series LLC - Small Financial Equities Series, (collectively, the "<u>Selling Shareholders</u>"). The Shares may be sold by the Selling Shareholders, as set forth in the Registration Statement.

In rendering the opinion expressed below, we have (a) examined and relied on the originals, or copies certified or otherwise identified to our satisfaction, of such agreements, documents and records of the Company and such other instruments and certificates of public officials, officers and representatives of the Company and others as we have deemed necessary or appropriate for the purposes of such opinion, (b) examined and relied as to factual matters upon, and have assumed the accuracy of, the statements made in the certificates of public officials, officers and representatives of the Company and others delivered to us and (c) made such investigations of law as we have deemed necessary or appropriate as a basis for such opinion. In rendering the opinion expressed below, we have assumed, with your permission, without independent investigation or inquiry, (i) the authenticity and completeness of all documents submitted to us as originals, (ii) the genuineness of all signatures on all documents that we examined, (iii) the conformity to authentic originals and completeness of documents submitted to us as certified, conformed or reproduction copies and (iv) the legal capacity of all natural persons executing documents.

Based upon and subject to the foregoing and the additional qualifications set forth below, we are of the opinion that the Shares have been duly authorized and validly issued and are fully paid and non-assessable.

This opinion is based on the laws of the State of Iowa, as currently in effect. We do not express any opinion as to the effect of the laws of any other jurisdiction.

We hereby consent to the filing of this opinion as an exhibit to the Registration Statement and to the reference to our firm under the heading "Legal Matters" in the prospectus that is a part of the Registration Statement. In giving the foregoing consent, we do not admit that we are in the category of persons whose

Alston & Bird LLP <u>www.alston.com</u> <br> Atlanta \| Brussels \| Century City \| Charlotte \| Chicago \| Dallas \| London \| Los Angeles \| New York \| Raleigh \| San Francisco \| Silicon Valley \| Washington, D.C.

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Lincoln Bancorp

June 25, 2026

consent is required under Section 7 of the Act, or the rules and regulations of the Commission promulgated thereunder.

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| | |
|:---|:---|
| By: | /s/ Alston & Bird LLP |
|  | &nbsp;&nbsp;&nbsp;Alston & Bird LLP |

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## Exhibit 10.1

**Exhibit 10.1**

**STOCK PURCHASE AGREEMENT**

dated October 22, 2018

by and among

**LINCOLN BANCORP**

and

**THE PURCHASERS IDENTIFIED ON THE SIGNATURE PAGES HERETO**

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**STOCK PURCHASE AGREEMENT**

This Stock Purchase Agreement (this "**Agreement**") is dated as of October 22, 2018, by and among Lincoln Bancorp, an Iowa corporation (the "**Company**"), and each purchaser identified on the signature pages hereto (each, including its successors and permitted assigns, a "**Purchaser**" and collectively, the "**Purchasers**").

**RECITALS**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A.&nbsp;&nbsp;&nbsp;&nbsp;The Company and each Purchaser are executing and delivering this Agreement in reliance upon the exemption from securities registration afforded by Section 4(a)(2) of the Securities Act of 1933, as amended (the "**Securities Act**"), and Rule 506 of Regulation D ("**Regulation D**") as promulgated by the United States Securities and Exchange Commission (the "**Commission**") under the Securities Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B.&nbsp;&nbsp;&nbsp;&nbsp;Each Purchaser, severally and not jointly, wishes to purchase, and the Company wishes to sell, upon the terms and conditions stated in this Agreement, that number of shares of Class A Common Stock, par value $0.01 per share, of the Company (the "**Common Stock**"), set forth below such Purchaser's name on the signature page of this Agreement (which shall be collectively referred to herein as the "**Common Shares**" or the "**Shares**").

NOW, THEREFORE, in consideration of the mutual covenants contained in this Agreement, and for other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the Company and the Purchasers hereby agree as follows:

**ARTICLE I**

**DEFINITIONS**

Section 1.1&nbsp;&nbsp;&nbsp;&nbsp;<u>Definitions</u>. In addition to the terms defined elsewhere in this Agreement, for all purposes of this Agreement, the following terms shall have the meanings indicated in this Section 1.1:

"**Acquisition Transaction**" means (i) a merger, reorganization, share exchange, consolidation, business combination, recapitalization, dissolution, liquidation, or similar transaction pertaining to the Company or the Bank; (ii) the issuance by the Company or the Bank of securities representing twenty percent (20%) or more of its outstanding Voting Securities (after giving effect to the conversion, exercise or exchange of securities convertible into or exercisable or exchangeable for such Voting Securities); or (iii) the acquisition in any manner, directly or indirectly, of (x) twenty percent (20%) or more of the outstanding Voting Securities of the Company or the Bank (including through the acquisition of securities convertible into or exercisable or exchangeable for such Voting Securities), (y) twenty percent (20%) or more of the consolidated total assets of the Company and its Subsidiaries, taken as a whole, or (z) one or more businesses or divisions that constitute twenty percent (20%) or more of the revenues or net income of the Company and its Subsidiaries, taken as a whole.

"**Action**" means any action, suit, inquiry, notice of violation, proceeding (including any partial proceeding such as a deposition), or investigation pending or, to the Company's Knowledge, threatened against the Company, any Subsidiary, or any of their respective properties or any officer, director, or employee of the Company or any Subsidiary acting in his or her capacity as an officer, director, or employee in each case before or by any Governmental Entity.

------

"**Additional Purchase Agreement**" means any stock purchase agreement, substantially identical to this Agreement, that the Company enters into with any other purchaser of shares of Common Stock prior to the Closing Date.

"**Affiliate**" means, with respect to any Person, any other Person that, directly or indirectly through one or more intermediaries, Controls, is controlled by, or is under common control with such Person, as such terms are used in and construed under Rule 405 under the Securities Act.

"**Agency**" has the meaning set forth in Section 3.1(oo).

"**Agreement**" shall have the meaning ascribed to such term in the Preamble.

"**Articles of Incorporation**" means the Restated Articles of Incorporation of the Company and all amendments thereto, as amended as of the date hereof.

"**Bank**" means Lincoln Savings Bank, an Iowa chartered bank and wholly owned Subsidiary of the Company.

"**Bank Boards**" has the meaning set forth in Section 4.21(a).

"**Bank Regulatory Approvals**" means that a Purchaser shall have received, in its sole discretion, satisfactory feedback from the Federal Reserve (which may be the absence of any communication from the Federal Reserve) and the IDOB that it will not have "control" of the Company or the Bank for purposes of the BHCA and applicable Laws of the State of Iowa and that no notice is required under the CIBC Act or applicable Laws of the State of Iowa, and Purchaser shall have submitted all other filings with and received all other approvals required by applicable Governmental Entities, in each case as necessary to permit Purchaser to hold up to twenty-four point nine percent (24.9%) of the voting securities of the Company.

"**Benefit Plan**" has the meaning set forth in Section 3.1(qq).

"**BHCA**" has the meaning set forth in Section 3.1(b).

"**BHCA Control**" has the meaning set forth in Section 3.1(ss).

"**Board**" has the meaning set forth in this Section 1.1.

"**Board Representative**" has the meaning set forth in Section 4.21(a).

"**Burdensome Condition**" has the meaning set forth in Section 4.17.

"**Business Day**" means a day, other than a Saturday or Sunday, on which banks in the State of Iowa are open for the general transaction of business.

"**Buy-In**" has the meaning set forth in Section 4.1(d).

"**Buy-In Broker**" has the meaning set forth in Section 4.1(d).

"**Castle Creek**" means Castle Creek Capital Partners VII, L.P. and its Affiliates. Castle Creek is also a Purchaser as such term is used in this Agreement.

"**Castle Creek Indemnitors**" has the meaning set forth in Section 4.21(f).

------

"**Change in Control**" means, with respect to the Company, the occurrence of any one of the following events:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)&nbsp;&nbsp;&nbsp;&nbsp;any Person or "group" (other than the Purchasers and their Affiliates) becomes a beneficial owner (as defined in Rule 13d-3 of the Exchange Act), directly or indirectly, of fifty percent (50%) or more of the aggregate shares of Common Stock;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)&nbsp;&nbsp;&nbsp;&nbsp;any Person or "group" (other than the Purchasers and their Affiliates) becomes a beneficial owner (as defined in Rule 13d-3 of the Exchange Act), directly or indirectly, of twenty-four point nine percent (24.9%) or more of the aggregate shares of Common Stock, and in connection with such event, individuals who, on the date of this Agreement, constitute the board of directors of the Company (the "**Board**") cease for any reason to constitute at least a majority of the Board;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3)&nbsp;&nbsp;&nbsp;&nbsp;the consummation of a merger, consolidation, statutory share exchange, or similar business combination transaction that requires adoption by the Company's shareholders (a "**Business Combination**"), unless immediately following such Business Combination more than 50% of the total voting power of the corporation resulting from such Business Combination (the "**Surviving Corporation**"), or, if applicable, the ultimate parent corporation that directly or indirectly has beneficial ownership (as defined in Rules 13d-3 of the Exchange Act) of 100% of the voting securities eligible to elect directors of the Surviving Corporation, is represented by Common Stock that was outstanding immediately before such Business Combination, or securities into or for which such Common Stock was converted or exchanged;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4)&nbsp;&nbsp;&nbsp;&nbsp;the consummation of a plan of liquidation or dissolution of the Company or a sale of all or substantially all of the Company's assets approved by the shareholders of the Company; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5)&nbsp;&nbsp;&nbsp;&nbsp;the Company has entered into a definitive agreement, the consummation of which would result in the occurrence of any of the events described in clauses (1) through (4) of this definition above.

"**CIBC Act**" means the Change in Bank Control Act of 1978.

"**Class B Common Stock**" has the meaning set forth in Section 3.1(g).

"**Closing**" means the closing of the purchase and sale of the Shares on the Closing Date pursuant to this Agreement.

"**Closing Date**" means the later of (x) the date that is ten (10) Business Days following the day on which the conditions set forth in Article V (other than those that by their nature are to be satisfied at Closing, but subject to the fulfillment or waiver of those conditions) are satisfied or waived, and (y) December 3, 2018, or such other date as the parties may mutually agree.

"**Code**" means the Internal Revenue Code of 1986, including the regulations and published interpretations thereunder.

"**Commission**" has the meaning set forth in the Recitals.

"**Common Stock**" has the meaning set forth in the Recitals, and also includes any securities into which the Common Stock may hereafter be reclassified or changed.

"**Common Shares**" has the meaning set forth in the Recitals.

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"**Company**" has the meaning set forth in the preamble.

"**Company's Knowledge**" means with respect to any statement made to the knowledge of the Company, that the statement is based upon the actual knowledge, after reasonable inquiry, of Erik Skovgard or Emily Girsch.

"**Company Counsel**" means Barack Ferrazzano Kirschbaum & Nagelberg LLP.

"**Company Deliverables**" has the meaning set forth in Section 2.2(a).

"**Company Financial Statements**" has the meaning set forth in Section 3.1(h).

"**Company Reports**" has the meaning set forth in Section 3.1(kk).

"**Control**" (including the terms "controlling," "controlled by" or "under common control with") means the possession, direct or indirect, of the power to direct or cause the direction of the management and policies of a Person, whether through the ownership of voting securities, by contract or otherwise for purposes of the BHCA or the CIBC Act.

"**Covered Person**" has the meaning set forth in Section 3.1(uu).

"**CRA**" has the meaning set forth in Section 3.1(mm).

"**Delaware Courts**" means the state and federal courts sitting in the State of Delaware.

"**Disqualification Event**" has the meaning set forth in Section 3.1(uu).

"**Effective Date**" means the date on which the initial Registration Statement required by Section 2(a) of the Registration Rights Agreement is first declared effective by the Commission.

"**Environmental Laws**" has the meaning set forth in Section 3.1(k).

"**ERISA Affiliates**" has the meaning set forth in Section 3.1(qq).

"**ERISA Plan**" has the meaning set forth in Section 3.1(qq).

"**ESOP**" means the Company's Employee Stock Ownership Plan.

"**Exchange Act**" means the Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder.

"**FDIC**" means the Federal Deposit Insurance Corporation.

"**Federal Reserve**" means the Board of Governors of the Federal Reserve System.

"**Future Bank**" means any insured depository institution that becomes a Subsidiary of the Company at any time following the date hereof.

"**GAAP**" means U.S. generally accepted accounting principles as applied by the Company.

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"**Governmental Entity**" means any court, administrative agency, arbitrator, or commission or other governmental or regulatory authority or instrumentality, whether federal, state, local, or foreign, and any applicable industry self-regulatory organization or securities exchange.

"**IDOB**" means the Iowa Division of Banking.

"**Insurer**" has the meaning set forth in Section 3.1(oo).

"**Intellectual Property**" has the meaning set forth in Section 3.1(q).

"**IRS**" has the meaning set forth in Section 3.1(qq).

"**Law**" means any federal, state, county, municipal or local ordinance, permit, concession, grant, franchise, law, statute, code, rule or regulation or any judgment, ruling, order, writ, injunction or decree promulgated by any Governmental Entity.

"**Legend Removal Date**" has the meaning set forth in Section 4.1(c).

"**Lien**" means any lien, charge, claim, encumbrance, security interest, right of first offer, right of first refusal, preemptive right, mortgage, deed of trust, pledge, conditional sale agreement, restriction on transfer or other restrictions of any kind, but excluding, in the case of the Shares or the capital stock or equity interests of any Subsidiary, any that are imposed by applicable securities Laws or the Transaction Documents, or any restrictions on transfer, rights of first offer or rights of first refusal that are imposed by the Articles of Incorporation or bylaws of the Company or such Subsidiary, as applicable.

"**Loan Investor**" has the meaning set forth in Section 3.1(oo).

"**Losses**" has the meaning set forth in Section 4.8(a).

"**Material Adverse Effect**" means any event, circumstance, change or occurrence that has had or would reasonably be expected to have (i) a material and adverse effect on the operations, results of operations, assets, liabilities, properties, business or condition (financial or otherwise) of the Company and its Subsidiaries, taken as a whole, or (ii) any adverse impairment to the Company's ability to perform in any material respect on a timely basis its obligations under any Transaction Document; provided, however, that clause (i) shall not include the impact of (A) changes in banking and similar Laws of general applicability or interpretations thereof by any applicable Governmental Entity, (B) changes in GAAP or regulatory accounting requirements applicable to banks and their holding companies generally, (C) changes in general or regional economic conditions, including interest rates, affecting banks generally, or (D) the effects of any action or omission taken by the Company or the Bank in accordance with the requirements of any Transaction Document, or with the prior written consent of Purchaser, except, with respect to clauses (A), (B) and (C), to the extent that the effect of such changes has a disproportionate impact on the Company and the Subsidiaries, taken as a whole, relative to other similarly situated banks and their holding companies generally.

"**Material Contract**" means any of the following agreements of the Company or any of its Subsidiaries:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)&nbsp;&nbsp;&nbsp;&nbsp;any contract containing covenants that limit in any material respect the ability of the Company or any of its Subsidiaries to compete in any line of business or with any person or which involve any material restriction of the geographical area in which, or method by which or with whom, the Company or any of its Subsidiaries may carry on its business (other than as may be required by Law or

------

applicable regulatory authorities), and any contract that could require the disposition of any material assets or line of business of the Company or of its Subsidiaries;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)&nbsp;&nbsp;&nbsp;&nbsp;any joint venture, partnership, strategic alliance, or other similar contract (including any franchising agreement, but in any event excluding introducing broker agreements), and any contract relating to the acquisition or disposition of any material business or material assets (whether by merger, sale of stock or assets, or otherwise), which acquisition or disposition is not yet complete or where such contract contains continuing material obligations or contains continuing indemnity obligations of the Company or any of its Subsidiaries;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3)&nbsp;&nbsp;&nbsp;&nbsp;any real property lease and any other lease with annual rental payments aggregating $75,000 or more;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4)&nbsp;&nbsp;&nbsp;&nbsp;other than with respect to loans, any contract providing for, or reasonably likely to result in, the receipt or expenditure of more than $250,000 on an annual basis, including the payment or receipt of royalties or other amounts calculated based upon revenues or income;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5)&nbsp;&nbsp;&nbsp;&nbsp;any contract or arrangement reasonably likely to result in the expenditure of more than of $250,000 annually under which the Company or any of its Subsidiaries is licensed or otherwise permitted by a third party to use any Intellectual Property that is material to its business (except for any "shrinkwrap" or "click through" license agreements or other agreements for software that is generally available to the public and has not been customized for the Company or its Subsidiaries) or under which a third party is licensed or otherwise permitted to use any Intellectual Property owned by the Company or any of its Subsidiaries;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6)&nbsp;&nbsp;&nbsp;&nbsp;any contract that by its terms limits the payment of dividends or other distributions by the Company or any of its Subsidiaries;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(7)&nbsp;&nbsp;&nbsp;&nbsp;any standstill or similar agreement pursuant to which the Company or any of its Subsidiaries has agreed not to acquire assets or securities of another person;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(8)&nbsp;&nbsp;&nbsp;&nbsp;any contract that would reasonably be expected to prevent, materially delay, or materially impede the Company's ability to consummate the transactions contemplated by this Agreement and the other Transaction Documents;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(9)&nbsp;&nbsp;&nbsp;&nbsp;any contract providing for indemnification by the Company or any of its Subsidiaries of any person, except contracts entered into in the ordinary course of business consistent with past practice;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(10)&nbsp;&nbsp;&nbsp;&nbsp;any contract that contains a put, call, or similar right pursuant to which the Company or any of its Subsidiaries could be required to purchase or sell, as applicable, any equity interests or assets that have a fair market value or purchase price of more than $50,000; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(11)&nbsp;&nbsp;&nbsp;&nbsp;any other contract or agreement which is a "material contract" within the meaning of Item 601(b)(10) of Regulation S-K, other than those that are not required to be filed pursuant to the terms of such Item.

"**Material Permits**" has the meaning set forth in Section 3.1(o).

"**Minimum Ownership Interest**" has the meaning set forth in Section 4.3(b).

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"**Money Laundering Laws**" has the meaning set forth in Section 3.1(ii).

"**New Security**" has the meaning set forth in Section 4.23(a).

"**Observer**" has the meaning set forth in Section 4.21(d).

"**OFAC**" has the meaning set forth in Section 3.1(gg).

"**Offering**" has the meaning set forth in Section 4.23(c).

"**Outside Date**" means December 31, 2018.

"**Pension Plan**" has the meaning set forth in Section 3.1(qq).

"**Person**" means an individual, corporation, partnership, limited liability company, trust, business trust, association, joint stock company, joint venture, sole proprietorship, unincorporated organization or Governmental Entity.

"**Personally Identifiable Information**" means any information that is publicly available or is held or controlled by the Company or any of its Subsidiaries that, alone or in combination with other information, can be used to identify an individual or a specific device.

"**Principal Trading Market**" means the Trading Market on which the Common Stock is primarily listed on and quoted for trading.

"**Proceeding**" means an action, claim, suit, investigation, or proceeding (including, without limitation, an investigation or partial proceeding, such as a deposition), whether commenced or threatened.

"**Purchase Price**" means $18.25 per Share.

"**Purchased Shares**" means, with respect to any Purchaser, the number of Shares to be purchased by such Purchaser hereunder.

"**Purchaser**" has the meaning set forth in the Preamble.

"**Purchaser Deliverables**" has the meaning set forth in Section 2.2(b).

"**Purchaser Party**" has the meaning set forth in Section 4.8(a).

"**Questionnaire**" has the meaning set forth in Section 2.2(b)(iii).

"**Registration Rights Agreement**" has the meaning set forth in Section 2.2(a)(iii).

"**Registration Statement**" means a registration statement meeting the requirements set forth in the Registration Rights Agreement and covering the resale by the Purchasers of the Registrable Securities (as defined in the Registration Rights Agreement).

"**Regulation D**" has the meaning set forth in the Recitals.

"**Regulatory Agreement**" has the meaning set forth in Section 3.1(ll).

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"**Required Approvals**" has the meaning set forth in Section 3.1(e).

"**Response Period**" has the meaning set forth in Section 4.23(c).

"**Rule 144**" means Rule 144 promulgated by the Commission pursuant to the Securities Act, as such Rule may be amended from time to time, or any similar rule or regulation hereafter adopted by the Commission having substantially the same effect as such Rule.

"**Securities Act**" has the meaning set forth in the Recitals.

"**Series A Preferred Stock**" has the meaning set forth in Section 3.1(g)(i).

"**Series B Preferred Stock**" has the meaning set forth in Section 3.1(g)(i).

"**Series C Preferred Stock**" has the meaning set forth in Section 3.1(g)(i).

"**Shareholder Litigation**" has the meaning set forth in Section 4.20.

"**Shares**" has the meaning set forth in the Recitals.

"**Significant Subsidiary**" has the meaning set forth in Section 3.1(b).

"**Stock Certificates**" has the meaning set forth in Section 2.2(a)(i).

"**Subscription Amount**" means with respect to each Purchaser, the aggregate amount to be paid for such Purchaser's Purchased Shares hereunder, as indicated on such Purchaser's signature page to this Agreement next to the heading "Aggregate Purchase Price (Subscription Amount)".

"**Subsidiary**" means any entity in which the Company or the Bank, directly or indirectly, owns fifty percent (50%) or more of the outstanding capital stock or otherwise has Control over such entity. For the avoidance of doubt, the Subsidiaries of the Company include the Bank.

"**Superior Proposal**" has the meaning set forth in Section 4.19(f).

"**Surviving Corporation**" has the meaning set forth in this Section 1.1.

"**Takeover Law**" has the meaning set forth in Section 3.1(bb).

"**Tax**" or "**Taxes**" mean (i) any federal, state, local or foreign income, gross receipts, property, sales, use, license, excise, franchise, employment, payroll, withholding, alternative or add on minimum, ad valorem, transfer or excise tax, or any other tax, custom, duty, governmental fee or other like assessment or charge of any kind whatsoever, together with any interest or penalty, imposed by any Governmental Entity and (ii) any liability in respect of any items described in clause (i) above payable by reason of contract, assumption, transferee or successor liability, operation of law, Treasury Regulations Section 1.1502-6(a) (or any predecessor or successor thereof or analogous or similar provisions of Law) or otherwise.

"**Tax Return**" means any return, declaration, report or similar statement filed or required to be filed with respect to any Tax (including any attached schedules), including, without limitation, any information return, claim for refund, amended return or declaration of estimated Tax.

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"**Term Sheet**" means the Confidential Term Sheet, dated as of August 27, 2018, between Castle Creek and the Company.

"**Termination Fee**" has the meaning set forth in Section 6.10(c)(i).

"**Third Party Confidentiality Agreement**" has the meaning set forth in Section 4.19(b).

"**Trading Day**" means (i) a day on which the Common Stock is listed or quoted and traded on its Principal Trading Market, or (ii) if the Common Stock is not quoted on any Trading Market, a day on which the Common Stock is quoted in the over-the-counter market as reported by OTC Markets Group, Inc. (including the OTC Pink); provided, that in the event that the Common Stock is not listed or quoted as set forth in (i) and (ii) hereof, then Trading Day shall mean a Business Day.

"**Trading Market**" means whichever of the New York Stock Exchange, the NYSE Amex, the Nasdaq Global Select Market, the Nasdaq Global Market, the Nasdaq Capital Market, or any market administered by the OTC Markets Group on which the Common Stock is listed or quoted for trading on the date in question.

"**Transaction Documents**" means this Agreement, the schedules and exhibits attached hereto, including the VCOC Letter Agreement, the Registration Rights Agreement and any other documents or agreements executed by the Company or the Purchasers in connection with the transactions contemplated hereunder.

"**Transfer Agent**" means the transfer agent, if any, for the Common Shares or, if the Company has not appointed any such transfer agent, the Company.

"**Unsolicited Company Proposal**" has the meaning set forth in Section 4.19(b).

"**VCOC Letter Agreement**" means the letter agreement in the form attached hereto as <u>Exhibit F</u>, dated as of the Closing Date, between the Company and Castle Creek.

"**Voting Securities**" means the capital stock of the Company that is then entitled to vote generally in the election of directors of the Company.

**ARTICLE II**

**PURCHASE AND SALE**

Section 2.1&nbsp;&nbsp;&nbsp;&nbsp;<u>Closing</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;<u>Purchase of Shares</u>. Subject to the terms and conditions set forth in this Agreement, at the Closing the Company shall issue and sell to each Purchaser, and each Purchaser shall, severally and not jointly, purchase from the Company, the number of shares of Common Stock set forth below such Purchaser's name on the signature page of this Agreement at a per share price equal to the Purchase Price.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;<u>Closing</u>. Unless this Agreement has been terminated pursuant to Section 6.10 and subject to the satisfaction (or waiver, as applicable) of the conditions set forth in Article V and the delivery of the Company Deliverables and the Purchaser Deliverables, the Closing of the purchase and sale of the Shares shall take place remotely by electronic transmission of Closing documents and signature pages on the Closing Date, or such other means and/or date as the parties may mutually agree.

Section 2.2&nbsp;&nbsp;&nbsp;&nbsp;<u>Closing Deliveries</u>.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;On or prior to the Closing, the Company shall issue, deliver or cause to be delivered to each Purchaser (unless otherwise indicated) the following (the "**Company Deliverables**"):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;at the election of each Purchaser, (A) one or more stock certificates (if physical certificates are required by a Purchaser to be held immediately prior to the Closing; if not, then facsimile or ".pdf" copies of such certificates shall suffice for purposes of the Closing with the original stock certificates to be delivered within two (2) Business Days of the Closing Date), evidencing the Shares subscribed for by the Purchaser as of the Closing, registered in the name of such Purchaser or its nominee (the "**Stock Certificates**"), or (B) evidence of book entry of the Shares subscribed for by the Purchaser as of the Closing, registered in the name of such Purchaser or its nominee;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp;a legal opinion of Company Counsel, dated as of the Closing Date and in the form attached hereto as <u>Exhibit C</u>, executed by such counsel and addressed to the Purchasers;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;&nbsp;&nbsp;&nbsp;a registration rights agreement, substantially in the form attached hereto as <u>Exhibit A</u> (the "**Registration Rights Agreement**"), duly executed by the Company and any other purchaser of Common Stock pursuant to an Additional Purchase Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv)&nbsp;&nbsp;&nbsp;&nbsp;a certificate of the Secretary of the Company, in the form attached hereto as <u>Exhibit D</u>, dated as of the Closing Date, (a) certifying the resolutions adopted by the Board or a duly authorized committee thereof approving the transactions contemplated by this Agreement and the other Transaction Documents and the issuance of the Shares, (b) certifying the current versions of the Articles of Incorporation and bylaws, as amended, of the Company, (c) certifying the fulfillment of the conditions specified in clauses (c), (d), (h), (k), (l) and (m) of Section 5.1, and (d) certifying as to the signatures and authority of persons signing the Transaction Documents and related documents on behalf of the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v)&nbsp;&nbsp;&nbsp;&nbsp;a certificate, dated as of the Closing Date and signed by the Chief Executive Officer or Chief Financial Officer of the Company, in the form attached hereto as <u>Exhibit E</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi)&nbsp;&nbsp;&nbsp;&nbsp;a Certificate of Good Standing of the Company from the Iowa Secretary of State as of a recent date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii)&nbsp;&nbsp;&nbsp;&nbsp;a certificate of the Board of Governors of the Federal Reserve Banks to the effect that the Company is a registered bank holding company under the BHCA;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii)&nbsp;&nbsp;&nbsp;&nbsp;a certificate of the IDOB as of a recent date evidencing the corporate existence of the Bank under the Laws of the state of Iowa;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ix)&nbsp;&nbsp;&nbsp;&nbsp;a certificate of the FDIC to the effect that the Bank's deposit accounts are insured by the FDIC under the provisions of the Federal Deposit Insurance Act; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x)&nbsp;&nbsp;&nbsp;&nbsp;with respect to Castle Creek, the VCOC Letter.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;On or prior to the Closing, each Purchaser shall deliver or cause to be delivered to the Company the following (the "**Purchaser Deliverables**"):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;such Purchaser's Subscription Amount, in U.S. dollars and in immediately available funds, by wire transfer in accordance with the Company's written instructions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp;a Registration Rights Agreement duly executed by such Purchaser;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;&nbsp;&nbsp;&nbsp;a fully completed and duly executed Accredited Investor Questionnaire (the "**Questionnaire**") reasonably satisfactory to the Company, in the form attached hereto as <u>Exhibit B</u>; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv)&nbsp;&nbsp;&nbsp;&nbsp;with respect to Castle Creek, the VCOC Letter.

**ARTICLE III**

**REPRESENTATIONS AND WARRANTIES**

Section 3.1&nbsp;&nbsp;&nbsp;&nbsp;<u>Representations and Warranties of the Company</u>. The Company hereby represents and warrants to each of the Purchasers as of the date hereof and as of the Closing Date, except for the representations and warranties that speak as of a specific date, which shall be made only as of such date, except, in each case, as set forth on the applicable section of the Disclosure Schedules attached to this Agreement, and in any other section thereof to the extent the relevance of such disclosure to a particular representation or warranty is reasonably apparent, that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;<u>Subsidiaries</u>. The Company owns all of the outstanding shares of the Bank. The Company has no other direct or indirect Subsidiaries. The Company owns, directly or indirectly, all of the capital stock (except for any preferred securities issued by Subsidiaries that are trusts as set forth on Schedule 3.1(a)) or comparable equity interests of each Subsidiary free and clear of any and all Liens, and all the issued and outstanding shares of capital stock or comparable equity interest of each Subsidiary are validly issued and are fully paid, non-assessable (to the extent such concept is applicable to an equity interest of a Subsidiary) and free of preemptive and similar rights to subscribe for or purchase securities. Except in respect of the Company's Subsidiaries, the Company does not own beneficially, directly or indirectly, more than five percent (5%) of any class of equity securities or similar interests of any corporation, bank, business trust, association or similar organization, and is not, directly or indirectly, a partner in any partnership or party to any joint venture.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;<u>Organization and Qualification</u>. The Company and each of its Subsidiaries is an entity duly incorporated or otherwise organized, validly existing, and in good standing under the Laws of the jurisdiction of its incorporation or organization (as applicable), with the requisite power and authority to own or lease and use its properties and assets and to carry on its business as currently conducted. Neither the Company nor any Subsidiary is in violation of any of the provisions of its respective certificate or articles of incorporation, bylaws, or other organizational or charter documents. The Company and each of its Subsidiaries is duly qualified to conduct business and is in good standing as a foreign corporation or other entity in each jurisdiction in which the nature of the business conducted or property owned by it makes such qualification necessary, except where the failure to be so qualified or in good standing, as the case may be, would not in the reasonable judgment of the Company be expected to be material to the Company and its Subsidiaries on a consolidated basis. The Company is duly registered as a bank holding company under the Bank Holding Company Act of 1956 (the "**BHCA**"). The Bank is the Company's only Subsidiary banking institution. The Bank's deposit accounts are insured up to applicable limits by the FDIC, and all premiums and assessments required to be paid in connection therewith have been paid when due and no proceeding for the termination of such insurance is pending or, to the Company's Knowledge, threatened.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;<u>Authorization; Enforcement; Validity</u>. The Company has the requisite corporate power and authority to enter into and to consummate the transactions contemplated by each of the Transaction Documents and otherwise to carry out its obligations hereunder and thereunder, including, without limitation, to issue the Shares in accordance with the terms hereof. The Company's execution and delivery of each of the Transaction Documents and the consummation by it of the transactions contemplated hereby and thereby (including, but not limited to, the sale and delivery of the Shares

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pursuant to this Agreement and any Additional Purchase Agreements) have been duly authorized by all necessary corporate action on the part of the Company, and no further corporate action is required by the Company, the Board, or the Company's shareholders in connection therewith other than in connection with the Required Approvals. Each of the Transaction Documents has been (or upon delivery will have been) duly executed by the Company and is, or when delivered in accordance with the terms hereof or thereof, will constitute the legal, valid, and binding obligation of the Company enforceable against the Company in accordance with its terms, except (i) as such enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium, liquidation, or similar Laws relating to, or affecting generally the enforcement of, creditors' rights and remedies or by other equitable principles of general application, (ii) as limited by Laws relating to the availability of specific performance, injunctive relief, or other equitable remedies, and (iii) insofar as indemnification and contribution provisions may be limited by applicable Law. There are no shareholder agreements, voting agreements, or other similar arrangements with respect to the Company's capital stock to which the Company is a party or, to the Company's Knowledge, between or among any of the Company's shareholders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;<u>No Conflicts</u>. The execution, delivery, and performance by the Company of the Transaction Documents and the consummation by the Company of the transactions contemplated hereby or thereby (including, without limitation, the issuance of the Shares pursuant to this Agreement and any Additional Purchase Agreements) do not and will not, subject to receipt of the Required Approvals, (i) conflict with or violate any provisions of the Company's or any Subsidiary's certificate or articles of incorporation, bylaws, or otherwise result in a violation of the organizational documents of the Company or any Subsidiary, (ii) conflict with, or constitute a default (or an event that with notice or lapse of time or both would result in a default) under, result in the creation of any Lien upon any of the properties or assets of the Company or any Subsidiary or give to others any rights of termination, amendment, acceleration, or cancellation (with or without notice, lapse of time or both) of, any agreement, indenture or instrument to which the Company or any Subsidiary is a party, or (iii) subject to the Required Approvals, conflict with or result in a violation of any Law, rule, regulation, order, judgment, injunction, decree, or other restriction of any court or Governmental Entity to which the Company is subject (including federal and state securities Laws and regulations and the rules and regulations thereunder, and the rules of any self-regulatory organization to which the Company or its securities are subject, including all applicable Trading Markets, assuming in each case, without investigation, the correctness of the representations and warranties made by the Purchasers herein), or by which any property or asset of the Company is bound or affected, except in the case of clauses (ii) and (iii) such as would not have or reasonably be expected to be material to the Company and its Subsidiaries on a consolidated basis.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;<u>Filings, Consents and Approvals</u>. Neither the Company nor any of its Subsidiaries is required to obtain any consent, waiver, authorization or order of, give any notice to, or make any filing or registration with, any Governmental Entity or other Person in connection with the execution, delivery and performance by the Company of the Transaction Documents (including, without limitation, the issuance of the Shares), other than (i) the filing with the Commission of one or more Registration Statements in accordance with the requirements of the Registration Rights Agreement, (ii) filings required by applicable state securities Laws, (iii) the filing of a Notice of Exempt Offering of Securities on Form D with the Commission under Regulation D of the Securities Act and (iv) those that have been made or obtained prior to the date of this Agreement, or will otherwise be timely obtained (collectively, the "**Required Approvals**").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;&nbsp;&nbsp;<u>Issuance of the Shares</u>. The issuance of the Shares has been duly authorized and the Shares, when issued and paid for in accordance with the terms of the Transaction Documents, will be duly and validly issued, fully paid, and non-assessable and free and clear of all Liens. Assuming the accuracy of the representations and warranties of the Purchasers in this Agreement, the Shares will be issued in compliance with all applicable federal and state securities Laws.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;&nbsp;&nbsp;&nbsp;<u>Capitalization</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;The authorized capital stock of the Company consists of (1) 25,000,000 shares of Common Stock, (2) 25,000,000 shares of Class B Common Stock, par value $0.01 per share ("**Class B Common Stock**"), and (3) 100,000 shares of preferred stock, par value $0.01 per share, of which (x) 20,000 have been designated Series A Non-Cumulative Convertible Perpetual Preferred Stock, par value $0.01 per share (the "**Series A Preferred Stock**"), (y) 20,000 have been designated Series B Non- Cumulative Convertible Perpetual Preferred Stock, par value $0.01 per share (the "**Series B Preferred Stock**"), and (z) 2,500 have been designated Series C Non-Cumulative Convertible Perpetual Preferred Stock, par value $0.01 per share (the "**Series C Preferred Stock**"). As of the date hereof, there are 5,450,770 shares of Common Stock issued and 5,391,970 shares of Common Stock outstanding (58,800 shares of Common Stock are in Treasury); zero shares of Class B Common Stock issued and outstanding, 5,401 shares of Series A Preferred Stock issued and outstanding, 10,283 shares of Series B Preferred Stock issued and outstanding, and 2,500 shares of Series C Preferred Stock issued and outstanding. Other than shares of Common Stock that have been reserved for issuance upon the conversion of outstanding shares of Class B Common Stock, Series A Preferred Stock, Series B Preferred Stock or Series C Preferred Stock, no shares of Common Stock are reserved for issuance as of the date hereof. All of the outstanding shares of capital stock of the Company are duly authorized, validly issued, fully paid and non-assessable, have been issued in compliance in all material respects with all applicable federal and state securities Laws, and none of such outstanding shares was issued in violation of any preemptive rights or similar rights to subscribe for or purchase any capital stock of the Company. Other than the adjustments to the applicable conversion prices described in the Articles of Incorporation with respect to the Series A Preferred Stock, Series B Preferred Stock and Series C Preferred Stock, no shares of the Company's capital stock outstanding on the date hereof are subject to preemptive rights or any other similar rights. There are no outstanding options, warrants, scrip, rights to subscribe to, calls, or contractual commitments of any character whatsoever relating to, or, other than the shares of Class B Common Stock, Series A Preferred Stock, Series B Preferred Stock and Series C Preferred Stock outstanding as of the date hereof, securities or rights convertible into, or exercisable or exchangeable for, any shares of capital stock of the Company or any of its Subsidiaries, or, other than the Transaction Documents, other contracts, commitments, understandings or arrangements by which the Company or any of its Subsidiaries is or may become bound to issue additional shares of capital stock of the Company or any of its Subsidiaries. Except as set forth on Schedule 3.1(g)(i), there are no material outstanding debt securities, notes, credit agreements, credit facilities or other agreements, documents or instruments evidencing indebtedness of the Company or any of its Subsidiaries or by which the Company or any of its Subsidiaries is bound. There are no outstanding securities or instruments of the Company or any of its Subsidiaries that contain any redemption or similar provisions, and there are no contracts, commitments, understandings or arrangements by which the Company or any of its Subsidiaries is or may become bound to redeem a security of the Company or any of its Subsidiaries, except, in each of the foregoing cases, as set forth in the Articles of Incorporation. The Company and its Subsidiaries do not have any stock appreciation rights or "phantom stock" plans or agreements or any similar plan or agreement. There are no securities or instruments issued by or to which the Company or any of its Subsidiaries is a party containing anti-dilution or similar provisions that will be triggered by the issuance of the Shares pursuant to this Agreement and the other Transaction Documents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp;Immediately following the Closing, assuming that the Company issues 821,917 shares of Common Stock pursuant to this Agreement and any Additional Purchase Agreements, and except for any other increase or decrease in the outstanding shares of Common Stock in compliance with this Agreement: (a) 6,213,887 shares of Common Stock, (b) zero shares of Class B Common Stock, (c) 5,401 shares of Series A Preferred Stock, (d) 10,283 shares of Series B Preferred Stock, (e) 2,500 shares of Series C Preferred Stock and (f) zero shares of Non-Voting Common Stock will be issued and outstanding.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)&nbsp;&nbsp;&nbsp;&nbsp;<u>Company Financial Statements</u>. The audited consolidated balance sheets of the Company and its Subsidiaries as of December 31, 2017, 2016 and 2015 and the related consolidated statements of operations, changes in shareholders' equity and cash flows for the three years ended December 31, 2017, together with the notes thereto (the "**Audited Company Financial Statements**"), and the unaudited consolidated balance sheets of the Company and its Subsidiaries as of July 31, 2018 and the related consolidated statements of operations, changes to shareholders' equity and cash flows for the seven (7) months then ended (the "**Interim Company Financial Statements**" and, together with the Audited Company Financial Statements, the "**Company Financial Statements**") (1) have been prepared from, and are in accordance with the books and records of the Company and its Subsidiaries, (2) have been prepared in all material respects in accordance with GAAP applied on a consistent basis during the periods involved, except as may be otherwise specified in such financial statements or the notes thereto and except that the unaudited financial statements may not contain all footnotes required by GAAP and except for normal, year-end audit adjustments, and fairly present in all material respects the balance sheet of the Company and its Subsidiaries taken as a whole as of and for the dates thereof and the results of operations, shareholders' equity, and cash flows for the periods then ended, subject, in the case of unaudited financial statements, to normal, year-end audit adjustments. The Company has made available to the Purchasers complete and accurate copies of the Company Financial Statements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;<u>Tax Matters</u>. The Company and each of its Subsidiaries has (i) timely filed all material foreign, U.S. federal, state and local Tax Returns that are or were required to be filed, and all such Tax Returns are true, correct and complete in all material respects, (ii) paid all material Taxes required to be paid by it and any other material assessment, fine or penalty levied against it, whether or not shown or determined to be due on such Tax Returns, other than any such amounts (x) currently payable without penalty or interest, or (y) being contested in good faith by appropriate proceedings and for which adequate reserves have been established in accordance with GAAP; (iii) timely withheld, collected or deposited as the case may be all material Taxes (determined both individually and in the aggregate) required to be withheld, collected or deposited by it, and to the extent required, have been paid to the relevant taxing authority in accordance with applicable Law; and (iv) complied with all applicable information reporting requirements in all material respects. Neither the Company nor any Subsidiary (i) is subject to any outstanding audit, assessment, dispute or claim concerning any material Tax liability of the Company or any of its Subsidiaries either within the Company's Knowledge or claimed, pending or raised by an authority in writing; (ii) is a party to, bound by or otherwise subject to any obligation under any Tax sharing or Tax indemnity agreement or similar contract or arrangement (other than an agreement, similar contract or arrangement to which only the Company and its Subsidiaries are parties); (iii) has participated in a "listed transaction" within the meaning of Treasury Regulation Section 1.6011- 4(b)(2); or (iv) has any liability for Taxes of any Person arising from the application of Treasury Regulation Section 1.1502-6 or any analogous provision of state, local or foreign Law, or as a transferee or successor, by contract, or otherwise. No claim has been made by a tax authority in a jurisdiction where the Company or any Subsidiary does not pay Taxes or file Tax Returns asserting that the Company or any Subsidiary is or may be subject to Taxes assessed by such jurisdiction. Neither the Company nor any Subsidiary will be required to include any item of income in, or exclude any item of deduction from, taxable income for any period (or any portion thereof) ending after the Closing as a result of any: (1) installment sale or other open transaction disposition made on or prior to the Closing; (2) prepaid amount received on or prior to the Closing; (3) written and legally binding agreement with a Governmental Entity relating to taxes for any taxable period ending on or before the Closing; (4) change in method of accounting in any taxable period ending on or before the Closing; or (5) election under Section 108(i) of the Code. The Company and its Subsidiaries have not experienced an "ownership change" under Section 382 of the Code, and the consummation of the transactions contemplated by this Agreement and any Additional Purchase Agreements will not cause the Company and its Subsidiaries to experience an "ownership change" under Section 382 of the Code.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j)&nbsp;&nbsp;&nbsp;&nbsp;<u>Material Changes</u>. Since the date of the latest audited financial statements included within the Company Financial Statements, (i) there have been no events, occurrences, or developments that have had or would reasonably be expected to have, either individually or in the aggregate, a Material Adverse Effect, (ii) the Company and its Subsidiaries have not incurred any material liabilities (contingent or otherwise) other than (A) trade payables, expenses, and other liabilities incurred in the ordinary course of business consistent with past practice, (B) obligations contemplated by the Transaction Documents and any Additional Purchase Agreements and (C) liabilities not required to be reflected in the Company Financial Statements pursuant to GAAP, (iii) the Company and its Subsidiaries have not altered materially their method of accounting or the manner in which they keep their accounting books and records, except as required by GAAP, by any Governmental Authority or by applicable tax Laws, (iv) except as reflected on the Interim Company Financial Statements, the Company has not declared or made any dividend or distribution of cash or other property to its shareholders or purchased, voluntarily redeemed, or made any agreements to purchase or voluntarily redeem any shares of its capital stock and (v) there has not been any material change or amendment to, or any waiver of any material right by the Company or any of its Subsidiaries under, any Material Contract under which the Company or any of its Subsidiaries is bound or subject.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k)&nbsp;&nbsp;&nbsp;&nbsp;<u>Environmental Matters</u>. Neither the Company nor any of its Subsidiaries (i) is or has been in violation of any Law of any Governmental Entity relating to the use, disposal or release of hazardous or toxic substances or relating to the protection or restoration of the environment or human exposure to hazardous or toxic substances (collectively, "**Environmental Laws**"), (ii) is or has been liable for any off-site disposal or contamination pursuant to any Environmental Laws, (iii) except for OREO acquired after the date hereof in the ordinary course of business, owns or operates, or owned or operated any real property contaminated with any substance that is in violation of any Environmental Laws or (iv) is or has been subject to any claim relating to any Environmental Laws; in each case, which violation, contamination, liability or claim has had or would reasonably be expected to be material to the Company and its Subsidiaries on a consolidated basis; and there is no pending or, to the Company's Knowledge, threatened investigation that might lead to such a claim. Except as would not be material to the Company and its Subsidiaries on a consolidated basis, there are and have been no circumstances or conditions (including the presence of asbestos, underground storage tanks, lead products, polychlorinated biphenyls, prior manufacturing operations, dry-cleaning or automotive services) involving the Company or any of its Subsidiaries, or any currently or formerly owned or operated property of the Company or any of its Subsidiaries, that would reasonably be expected to result in any claim, liability, investigation, cost or restriction against the Company or any of its Subsidiaries, or result in any restriction on the ownership, use, or transfer of any property pursuant to any Environmental Law, or adversely affect the value of any currently owned property (other than OREO acquired after the date hereof in the ordinary course of business) of the Company or any of its Subsidiaries.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l)&nbsp;&nbsp;&nbsp;&nbsp;<u>Litigation</u>. There is and has been no Action pending or, to the Company's Knowledge, threatened, which (i) adversely affects or challenges the legality, validity, or enforceability of any of the Transaction Documents or the issuance of Purchased Shares pursuant to this Agreement or any Additional Purchase Agreement, or (ii) is reasonably likely to be material to the Company or any Subsidiary, individually or in the aggregate. Neither the Company nor any Subsidiary, nor any director or officer thereof, is or has been the subject of any Action involving a claim of violation of or liability under federal or state securities Laws or a claim of breach of fiduciary duty nor is any Action, to the Company's Knowledge, currently threatened. There is no Action by the Company or any Subsidiary pending or which the Company or any Subsidiary intends to initiate (other than collection or similar claims in the ordinary course of business). There has not been, and to the Company's Knowledge there is not pending or contemplated, any investigation by the Commission involving the Company or any current or former director or officer of the Company. There are and have been no outstanding orders, judgments, injunctions, awards or decrees of any court, arbitrator or governmental or regulatory body against the

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Company or any executive officers or directors of the Company in their capacities as such, which individually or in the aggregate, would reasonably be expected to be material to the Company or any Subsidiary.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m)&nbsp;&nbsp;&nbsp;&nbsp;<u>Employment Matters</u>. No labor dispute exists or, to the Company's Knowledge, is imminent with respect to any of the employees of the Company or any Subsidiary that would be, or would reasonably be expected to be, material to the Company and its Subsidiaries on a consolidated basis. None of the employees of the Company or any Subsidiary is a member of a union that relates to such employee's relationship with the Company or any Subsidiary, and neither the Company nor any of its Subsidiaries is a party to a collective bargaining agreement, and the Company and each Subsidiary believes that its relationship with its employees is good. To the Company's Knowledge, there is no activity involving any of the employees of the Company or any of its Subsidiaries seeking to certify a collective bargaining unit or similar organization. To the Company's Knowledge, no executive officer is, or is as of the date hereof expected to be, in violation of any material term of any employment contract, confidentiality, disclosure or proprietary information agreement or non-competition agreement, or any other contract or agreement or any restrictive covenant in favor of a third party, and to the Company's Knowledge, the continued employment of each such executive officer does not subject the Company or any Subsidiary to any liability with respect to any of the foregoing matters. Since December 31, 2013, the Company and each of its Subsidiaries are and at all times have been in compliance with all Laws and regulations relating to employment and employment practices, immigration, terms and conditions of employment and wages and hours, except where the failure to be in compliance would not have or reasonably be material to the Company and its Subsidiaries on its consolidated basis. As of the date hereof, no material employee has given notice to the Company or any of its Subsidiaries of his or her intent to terminate his or her employment or service relationship with the Company or any of its Subsidiaries. The Company and its Subsidiaries are and at all times have been in material compliance with all Laws concerning the classification of employees and independent contractors and have properly classified all such individuals for purposes of participation in employee benefit plans.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n)&nbsp;&nbsp;&nbsp;&nbsp;<u>Compliance</u>. Since December 31, 2013, neither the Company nor any of its Subsidiaries (i) are or has been in default under or in violation of (and no event has occurred that has not been waived that, with notice or lapse of time or both, would result in a default by the Company or any of its Subsidiaries under), nor has the Company or any of its Subsidiaries received written notice of a claim that it is in default under or that it is in violation of, any Material Contract (whether or not such default or violation has been waived), (ii) are or has been in violation of any order of which the Company has been made aware in writing of any court, arbitrator, or governmental body having jurisdiction over the Company or its Subsidiaries or their respective properties or assets, (iii) are or has been in violation of, or in receipt of written notice that it is in violation of, any statute, rule, regulation, policy, guideline, or order of any Governmental Entity or self-regulatory organization (including any Principal Trading Market), applicable to the Company or any of its Subsidiaries, or which would have the effect of revoking or limiting FDIC deposit insurance, except in each of the foregoing cases as would not have or reasonably be material to the Company. The Company and its Subsidiaries have conducted its business in material compliance with all applicable federal, state and foreign Laws, orders, judgments, decrees, rules, regulations, including all Laws and regulations restricting activities of bank holding companies and banking organizations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o)&nbsp;&nbsp;&nbsp;&nbsp;<u>Regulatory Permits</u>. The Company and each of its Subsidiaries possess and since January 1, 2016 have possessed all required certificates, authorizations, consents, licenses, franchises, variances, exceptions, orders, approvals and permits issued by the appropriate Governmental Entities with respect to the Company and its Subsidiaries' business, except where the failure to possess such certificates, authorizations, consents, or permits, individually or in the aggregate, has not had and would not reasonably be expected to be material to the Company and its Subsidiaries on a consolidated basis

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("**Material Permits**"), and (i) neither the Company nor any of its Subsidiaries has received any notice in writing of proceedings relating to the revocation or material adverse modification of any such Material Permits, and (ii) to the Company's Knowledge, there are no facts or circumstances that would give rise to the revocation or material adverse modification of any Material Permits.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p)&nbsp;&nbsp;&nbsp;&nbsp;<u>Title to Assets</u>. The Company and its Subsidiaries have good and marketable title to all real property and tangible personal property owned by them which is material to the business of the Company and its Subsidiaries, taken as a whole, in each case free and clear of all Liens, except such as do not materially affect the value of such property or do not interfere with the use made and proposed to be made of such property by the Company and any of its Subsidiaries. Any real property and facilities held under lease by the Company and any of its Subsidiaries are held by them under valid, subsisting, and enforceable leases with such exceptions as are not material and do not interfere with the use made and proposed to be made of such property and facilities by the Company and its Subsidiaries. No notice of a claim of default by any party to any lease entered into by the Company or any of its Subsidiaries has been delivered to either the Company or any of its Subsidiaries or is now pending, and there does not exist any event or circumstance that with notice or passing of time, or both, would constitute a default or excuse performance by any party thereto. None of the owned or leased premises or properties of the Company or any of its Subsidiaries is subject to any current or potential interests of third parties or other restrictions or limitations that would impair or be inconsistent in any material respect with the current use of such property by the Company or any of its Subsidiaries, as the case may be.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q)&nbsp;&nbsp;&nbsp;&nbsp;<u>Intellectual Property; Data Security</u>. The Company and its Subsidiaries own, possess, license, or have other rights to use all foreign and domestic patents, patent applications, trade and service marks, trade and service mark registrations, trade names, copyrights, inventions, trade secrets, technology, Internet domain names, know-how, and other intellectual property (collectively, the "**Intellectual Property**") necessary for the conduct of their respective businesses as now conducted or as proposed to be conducted free and clear of all Liens (other than rights of licensors) and such Intellectual Property is valid, subsisting and enforceable, and is not subject to any outstanding order, judgment, decree or agreement adversely affecting the Company's or its Subsidiaries' use of, or rights to, such Intellectual Property, except where the failure to own, possess, license, or have such rights would not have or reasonably be expected to be material to the Company and its Subsidiaries on a consolidated basis. Except where such violations or infringements would not be material to the Company and its Subsidiaries on a consolidated basis, (i) there are no rights of third parties (other than licensors) to any such Intellectual Property, (ii) there is and has been no infringement by third parties of any such Intellectual Property, (iii) there is and has been no pending or threatened action, suit, proceeding, or claim by others challenging the Company's and its Subsidiaries' rights in or to any such Intellectual Property, (iv) there is and has been no pending or threatened action, suit, proceeding, or claim by others challenging the validity or scope of any such Intellectual Property, and (v) there is and has been no pending or threatened action, suit, proceeding, or claim by others that the Company and/or any Subsidiary infringes or otherwise violates any patent, trademark, copyright, trade secret, or other proprietary rights of others. Except as would not reasonably be expected to be material to the Company and its Subsidiaries, taken as a whole, (A) the Company and its Subsidiaries are and at all times have been in compliance with all applicable Laws related to data privacy and data security and (B) to the Company's Knowledge, there has been no material loss or theft of data or security breach or unauthorized access or use relating to data (including Personally Identifiable Information) in the possession, custody or control of the Company or any of its Subsidiaries. (1) No claims have been asserted or, to the Company's Knowledge, threatened in writing against the Company or any of its Subsidiaries relating to data security, privacy, or the storage, transfer, use or processing of data (including Personally Identifiable Information), and (2) to the Company's Knowledge, the Company and its Subsidiaries are not and have never been the subject of any audits, investigations or other inquiries or Proceedings relating to data security, privacy, or the storage,

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transfer, use or processing of data (including Personally Identifiable Information) from any Governmental Entity, in the case of clause (1) or clause (2).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r)&nbsp;&nbsp;&nbsp;&nbsp;<u>Insurance</u>. The Company and each of the Subsidiaries are insured by insurers of recognized financial responsibility against such losses and risks and in such amounts as the Company believes to be prudent and customary in the businesses and locations in which and where the Company and the Subsidiaries are engaged. All premiums due and payable under all such policies and bonds have been timely paid, and the Company and its Subsidiaries are in material compliance with the terms of such policies and bonds. Neither the Company nor any of its Subsidiaries has received any notice of cancellation of any such insurance, nor, to the Company's Knowledge, will it or any Subsidiary be unable to renew their respective existing insurance coverage as and when such coverage expires or to obtain similar coverage from similar insurers as may be necessary to continue its business at a cost that would not have a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(s)&nbsp;&nbsp;&nbsp;&nbsp;<u>Transactions With Affiliates and Employees</u>. None of the Affiliates, officers or directors of the Company or any Subsidiary and, to the Company's Knowledge, none of the employees of the Company or any Subsidiary, is presently a party to any transaction with the Company or any Subsidiary or to a presently contemplated transaction (other than for services as employees, officers, and directors) that would be required to be disclosed pursuant to Item 404(a) of Regulation S-K promulgated under the Securities Act if the Common Stock was required to be registered with the Commission under the Securities Act or the Exchange Act, other than transactions eligible for the disclosure contemplated by Instruction 4.c thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(t)&nbsp;&nbsp;&nbsp;&nbsp;<u>Internal Control Over Financial Reporting</u>. The Company and its Subsidiaries maintain internal control over financial reporting (as such term is defined in Rule 13a-15(f) under the Exchange Act) designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with GAAP and have disclosed, based on its most recent evaluation prior to the date of this Agreement, to the Company's outside auditors and the audit committee of the Board (A) any significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting that are reasonably likely to adversely affect the Company's ability to record, process, summarize, and report financial information, and (B) any fraud, whether or not material, that involves management or other employees who have a significant role in the Company's internal control over financial reporting. Since December 31, 2015, (i) neither the Company nor any of its Subsidiaries nor, to the Company's Knowledge, any director, officer, employee, auditor, accountant or representative of the Company or any of its Subsidiaries has received or otherwise had or obtained knowledge of any material complaint, allegation, assertion or claim, whether written or oral, regarding the accounting or auditing practices, procedures, methodologies or methods of the Company or any of its Subsidiaries or their respective internal accounting controls, including any material complaint, allegation, assertion or claim that the Company or any of its Subsidiaries has engaged in questionable accounting or auditing practices, and (ii) no attorney representing the Company or any of its Subsidiaries, whether or not employed by the Company or any of its Subsidiaries, has reported evidence of a violation of securities Laws, breach of fiduciary duty or similar violation by the Company, its Subsidiaries or any of its officers, directors, employees or agents to the Board or any committee thereof or to any director or officer of the Company or any of its Subsidiaries.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(u)&nbsp;&nbsp;&nbsp;&nbsp;<u>Certain Fees</u>. Other than D.A. Davidson & Co., no person or entity will have, as a result of the transactions contemplated by this Agreement or any Additional Purchase Agreement, any valid right, interest, or claim against or upon the Company, any Subsidiary or any Purchaser for any commission, fee, or other compensation pursuant to any agreement, arrangement, or understanding entered into by or on behalf of the Company or any Subsidiary.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v)&nbsp;&nbsp;&nbsp;&nbsp;<u>Private Placement</u>. Assuming the accuracy of the Purchasers' representations and warranties set forth in Section 3.2 of this Agreement and the accuracy of the information disclosed in the Questionnaires, no registration under the Securities Act is required for the offer and sale of the Shares by the Company to the Purchasers under the Transaction Documents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(w)&nbsp;&nbsp;&nbsp;&nbsp;<u>Registration Rights</u>. Except as contemplated by the Registration Rights Agreement, and except for the rights set forth in the Articles of Incorporation with respect to Series A Preferred Stock, Series B Preferred Stock and Series C Preferred Stock, as applicable, no Person has any right to cause the Company or any Subsidiary to effect the registration under the Securities Act of any securities of the Company or any Subsidiary.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x)&nbsp;&nbsp;&nbsp;&nbsp;<u>No Objections</u>. Neither the FDIC nor the IDOB has issued any order or taken any similar action preventing or suspending the issuance or sale of the Purchased Shares to the Purchasers. The Company has filed, and will continue to file, with the FDIC and the IDOB, as applicable, all materials required to be filed by the Company in connection with the issuance and sale of the Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(y)&nbsp;&nbsp;&nbsp;&nbsp;<u>Regulation D Exemption</u>. Assuming the accuracy of the Purchasers' representations and warranties set forth in Section 3.2, none of the Company, its Subsidiaries nor, to the Company's Knowledge, any of its Affiliates or any Person acting on its behalf has, directly or indirectly, at any time within the past six months, made any offers or sales of any Company security or solicited any offers to buy any security under circumstances that would eliminate the availability of the exemption from registration under Regulation D under the Securities Act in connection with the offer and sale by the Company of the Shares as contemplated hereby.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(z)&nbsp;&nbsp;&nbsp;&nbsp;<u>Investment Company</u>. Neither the Company nor any of its Subsidiaries is required to be registered as, and is not an Affiliate of, and immediately following the Closing will not be required to register as, an "investment company" within the meaning of the Investment Company Act of 1940, as amended, and neither the Company nor any Subsidiary sponsors any person that is such an investment company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(aa)&nbsp;&nbsp;&nbsp;&nbsp;<u>Unlawful Payments</u>. Neither the Company nor any of its Subsidiaries, nor to the Company's Knowledge, any directors, officers, employees, agents, or other Persons acting at the direction of or on behalf of the Company or any of its Subsidiaries has, in the course of its actions for, or on behalf of, the Company or any of its Subsidiaries (a) directly or indirectly, used any corporate funds for unlawful contributions, gifts, entertainment, or other unlawful expenses relating to foreign or domestic political activity, (b) made any direct or indirect unlawful payments to any foreign or domestic governmental officials or employees or to any foreign or domestic political parties or campaigns from corporate funds, (c) violated any provision of the Foreign Corrupt Practices Act of 1977, or (d) made any other unlawful bribe, rebate, payoff, influence payment, kickback, or other material unlawful payment to any foreign or domestic government official or employee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(bb)&nbsp;&nbsp;&nbsp;&nbsp;<u>Application of Takeover Protections; Rights Agreements</u>. The Company has not adopted any shareholder rights plan or similar arrangement relating to accumulations of beneficial ownership of its Common Stock or a Change in Control of the Company. The Company and the Board have taken or will take all necessary action, if any, in order to render inapplicable any control share acquisition, business combination, poison pill (including any distribution under a rights agreement), or other similar anti-takeover provision under the Company's Articles of Incorporation or other organizational documents or the Laws of the jurisdiction of its incorporation or otherwise which is or could become applicable to Purchaser solely as a result of the transactions contemplated by this Agreement, including, without limitation, the Company's issuance of the Shares and any Purchaser's ownership of the Purchased Shares (each, a "**Takeover Law**").

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(cc)&nbsp;&nbsp;&nbsp;&nbsp;<u>No Undisclosed Liabilities</u>. There are no material liabilities or obligations of the Company or any of the Subsidiaries of any kind whatsoever, whether accrued, contingent, absolute, determined, determinable, or otherwise, that are required by GAAP to be set forth on a consolidated balance sheet of the Company and the Company Subsidiaries or in the notes thereto, except for (i) liabilities reflected or reserved against or provided for in the Company Financial Statements or that are otherwise disclosed in the footnotes to the financial statements for the year ended December 31, 2017, (ii) liabilities that have arisen in the ordinary and usual course of business and consistent with past practice since December 31, 2017 and (iii) liabilities incurred in connection with the negotiation and entry into, or under, the Transaction Documents or any Additional Purchase Agreements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(dd)&nbsp;&nbsp;&nbsp;&nbsp;<u>Off Balance Sheet Arrangements</u>. There is no transaction, arrangement, or other relationship between the Company (or any of its Subsidiaries) and an unconsolidated or other off-balance sheet entity that is required to be disclosed by the Company in its Company Financial Statements and is not so disclosed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ee)&nbsp;&nbsp;&nbsp;&nbsp;<u>Acknowledgment Regarding Purchasers' Purchase of Shares</u>. The Company acknowledges and agrees that each Purchaser is acting solely in the capacity of an arm's length purchaser with respect to the Transaction Documents and the transactions contemplated hereby and thereby. The Company further acknowledges that each Purchaser is not acting as a financial advisor or fiduciary of the Company (or in any similar capacity) with respect to the Transaction Documents and the transactions contemplated thereby and any advice given by any Purchaser or any of their respective representatives or agents in connection with the Transaction Documents and the transactions contemplated thereby is merely incidental to such Purchaser's purchase of the Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ff)&nbsp;&nbsp;&nbsp;&nbsp;<u>Absence of Manipulation</u>. The Company has not, and to the Company's Knowledge no one acting on its behalf has, taken, directly or indirectly, any action designed to cause the stabilization or manipulation of the price of any security of the Company to facilitate the sale or resale of any of the Purchased Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(gg)&nbsp;&nbsp;&nbsp;&nbsp;<u>OFAC</u>. Neither the Company nor any Subsidiary nor, to the Company's Knowledge, any director, officer, agent, employee, Affiliate, or Person acting on behalf of the Company or any Subsidiary is currently subject to any U.S. sanctions administered by the Office of Foreign Assets Control of the U.S. Treasury Department ("**OFAC**"); and the Company will not knowingly use the proceeds of the sale of the Purchased Shares towards any sales or operations in Cuba, Iran, Syria, Sudan or any other country sanctioned by OFAC or for the purpose of financing the activities of any Person currently subject to any U.S. sanctions administered by OFAC.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(hh)&nbsp;&nbsp;&nbsp;&nbsp;<u>Money Laundering Laws</u>. The operations of each of the Company and any Subsidiary are, and, since December 31, 2013, have been conducted at all times, in compliance in all material respects with the money laundering statutes of applicable jurisdictions, the rules and regulations thereunder, and any related or similar rules, regulations, or guidelines, issued, administered, or enforced by any applicable Governmental Entity (collectively, the "**Money Laundering Laws**"), and to the Company's Knowledge, no action, suit, or proceeding by or before any court or Governmental Entity, authority, or body or any arbitrator involving the Company and/or any Subsidiary with respect to the Money Laundering Laws is pending or threatened.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp;<u>No Additional Agreements</u>. The Company has no agreements or understandings (including, without limitation, side letters) with any Person to purchase shares of Common Stock on terms more favorable to such Person than as set forth herein (after giving effect to Section 4.16, if applicable).

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(jj)&nbsp;&nbsp;&nbsp;&nbsp;<u>Reports, Registrations and Statements</u>. Since December 31, 2015, the Company and each Subsidiary have filed all material reports, registrations, documents, filings, submissions and statements, together with any required amendments thereto, that it was required to file with the Federal Reserve, the FDIC, the IDOB and any other applicable federal or state securities or banking authorities. All such reports and statements filed with any such regulatory body or authority are collectively referred to herein as the "**Company Reports**." All such Company Reports were filed on a timely basis or the Company or the applicable Subsidiary, as applicable, received a valid extension of such time of filing and has filed any such Company Reports prior to the expiration of any such extension. As of their respective dates, the Company Reports complied in all material respects with all the rules and regulations promulgated by the Federal Reserve, the FDIC, the IDOB and any other applicable foreign, federal, or state securities or banking authorities, as the case may be.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(kk)&nbsp;&nbsp;&nbsp;&nbsp;<u>Regulatory Capitalization</u>. As of July 31, 2018, the Bank was considered "well capitalized" under the FDIC's regulatory framework for prompt corrective action (12 C.F.R. §325.103(b)(1)).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ll)&nbsp;&nbsp;&nbsp;&nbsp;<u>Agreements with Regulatory Agencies</u>. Neither the Company nor any Subsidiary is subject to any cease-and-desist or other similar order or enforcement action issued by, or is a party to any written agreement, consent agreement, or memorandum of understanding with, or is a party to any commitment letter or similar undertaking to, or is subject to any capital directive by, or since December 31, 2013, has adopted any board resolutions at the request of, any Governmental Entity that currently restricts in any material respect the conduct of its business or that in any material manner relates to its capital adequacy, its liquidity and funding policies and practices, its ability to pay dividends, its credit, risk management or compliance policies, its internal controls, its management, or its operations or business (each item in this sentence, a "**Regulatory Agreement**"), nor has the Company or any Subsidiary been advised in writing since December 31, 2013 by any Governmental Entity that it intends to issue, initiate, order, or request any such Regulatory Agreement. The Company and each of its Subsidiaries are in compliance in all material respects with all Regulatory Agreements applicable to them. The statements in this Section 3.1(ll) are for risk-allocation purposes only, and notwithstanding anything in this Agreement to the contrary, nothing in this Agreement shall constitute an obligation to disclose any information that constitutes confidential supervisory information (as defined in 12 C.F.R. Part 261).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(mm)&nbsp;&nbsp;&nbsp;&nbsp;<u>Compliance with Certain Banking Regulations</u>. There are no facts or circumstances, and the Company has no reason to believe that any facts or circumstances exist, that would cause the Bank (i) to be deemed not to be in satisfactory compliance with the Community Reinvestment Act ("**CRA**") and the regulations promulgated thereunder or to be assigned a CRA rating by federal or state banking regulators of lower than "satisfactory," (ii) to be deemed to be operating in violation, in any material respect, of the Bank Secrecy Act, the Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism (USA PATRIOT) Act of 2001, any order issued with respect to anti-money laundering by OFAC, or any other anti-money laundering Law, (iii) to be deemed not to be in satisfactory compliance, in any material respect, with the Home Mortgage Disclosure Act, the Fair Housing Act, the Community Reinvestment Act, the Equal Credit Opportunity Act, the Flood Disaster Protection Act, the Dodd-Frank Wall Street Reform and Consumer Protection Act, or (iv) to be deemed not to be in satisfactory compliance, in any material respect, with all applicable privacy of customer information requirements contained in any applicable federal and state privacy Laws as well as the provisions of all information security programs adopted by the Bank.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(nn)&nbsp;&nbsp;&nbsp;&nbsp;<u>No General Solicitation or General Advertising</u>. Neither the Company nor, to the Company's Knowledge, any person acting on its behalf has engaged or will engage in any form of general solicitation or general advertising (within the meaning of Regulation D under the Securities Act) in

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connection with any offer or sale of the Shares pursuant to this Agreement and the other Transaction Documents or any Additional Purchase Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(oo)&nbsp;&nbsp;&nbsp;&nbsp;<u>Loan Portfolio</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;Other than as may not be reasonably expected to have a Material Adverse Effect, each of the Company and its Subsidiaries has complied with in all material respects, and all documentation in connection with the origination, processing, underwriting and credit approval of any loan, lease or other extension of credit or commitment to extend credit (each, a "**Loan**") originated, purchased or serviced by the Company or any of its Subsidiaries satisfied in all material respects, (A) all applicable Laws with respect to the origination, insuring, purchase, sale, pooling, servicing, subservicing or filing of claims in connection with Loans, including all Laws relating to real estate settlement procedures, consumer credit protection, truth in lending Laws, usury limitations, fair housing, transfers of servicing, collection practices, equal credit opportunity and adjustable rate mortgages, (B) the responsibilities and obligations relating to Loans set forth in any contract or agreement between the Company or any of its Subsidiaries and any Agency, Loan Investor or Insurer, (C) the applicable rules, regulations, guidelines, handbooks and other requirements of any Agency, Loan Investor or Insurer, (D) the terms and provisions of any mortgage or other collateral documents and other Loan documents with respect to each Loan and (E) the underwriting guidelines and other loan policies and procedures of the Company or its applicable Subsidiary; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp;Since December 31, 2016, no Agency, Loan Investor or Insurer has (i) claimed in writing that the Company or any Company Subsidiary has violated or has not complied with the applicable underwriting standards with respect to Loans sold by the Company or any of its Subsidiaries to a Loan Investor or Agency, or with respect to any sale of Loan servicing rights to a Loan Investor, (ii) imposed in writing restrictions on the activities (including commitment authority) of the Company or any of its Subsidiaries or (iii) indicated in writing to the Company or any of its Subsidiaries that it has terminated or intends to terminate its relationship with the Company or any of its Subsidiaries for poor performance, poor Loan quality or concern with respect to the Company's or any Company Subsidiary's compliance with Laws.

For purposes of this Section 3.1(oo): (i) "**Agency**" means the Federal Housing Administration, the Federal Home Loan Mortgage Corporation, the Farmers Home Administration (now known as Rural Housing and Community Development Services), the Federal National Mortgage Association, the United States Department of Veterans' Affairs, the Government National Mortgage Association, the Rural Housing Service of the U.S. Department of Agriculture or any other Governmental Entity with authority to (A) determine any investment, origination, lending or servicing requirements with regard to Loans originated, purchased or serviced by the Company or any Company Subsidiary or (B) originate, purchase, or service Loans, or otherwise promote lending, including state and local housing finance authorities; (ii) "**Loan Investor**" means any person (including an Agency) having a beneficial interest in any Loan originated, purchased or serviced by the Company or any Company Subsidiary or a security backed by or representing an interest in any such Loan; and (iii) "**Insurer**" means a person who insures or guarantees for the benefit of the Loan holder all or any portion of the risk of loss upon borrower default on any of the Loans originated, purchased or serviced by the Company or any Company Subsidiary, including the Federal Housing Administration, the United States Department of Veterans' Affairs, the Rural Housing Service of the U.S. Department of Agriculture and any private mortgage insurer, and providers of hazard, title or other insurance with respect to such Loans or the related collateral.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(pp)&nbsp;&nbsp;&nbsp;&nbsp;<u>Risk Management Instruments</u>. The Company and the Subsidiaries have in place risk management policies and procedures designed to protect against risks of the type and in amounts reasonably expected to be incurred by companies of similar size and in similar lines of business as the

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Company and the Subsidiaries. Except as would not reasonably be expected to be material to the Company and its Subsidiaries on a consolidated basis, since December 31, 2015, all derivative instruments, including, swaps, caps, floors, and option agreements, whether entered into for the Company's own account, or for the account of one or more of the Subsidiaries, were entered into (1) only in the ordinary course of business, (2) in accordance with prudent practices and in all respects with all applicable Laws, and (3) with counterparties believed to be financially responsible at the time, and each of them constitutes the valid and legally binding obligation of the Company or one of the Subsidiaries, enforceable in accordance with its terms. Neither the Company nor the Subsidiaries, nor, to the Company's Knowledge, any other party thereto, is in breach of any of its obligations under any such agreement or arrangement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(qq)&nbsp;&nbsp;&nbsp;&nbsp;<u>Company Benefit Plans</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;"**Benefit Plan**" means all material employee benefit plans, programs, agreements, contracts, policies, practices, or other arrangements providing benefits to any current or former employee, officer, director or consultant of the Company or any of its Subsidiaries or any beneficiary or dependent thereof that is sponsored or maintained by the Company or any of its Subsidiaries or to which the Company or any of its Subsidiaries contributes or is obligated to contribute or is party, whether or not written, including any material "employee welfare benefit plan" within the meaning of Section 3(1) of the Employee Retirement Income Security Act of 1974, as amended ("**ERISA**"), any "employee pension benefit plan" within the meaning of Section 3(2) of ERISA (whether or not such plan is subject to ERISA) and any material bonus, incentive, deferred compensation, vacation, stock purchase, stock option or equity award, equity-based severance, employment, change of control, consulting or fringe benefit plan, program, agreement or policy. The term "Benefit Plan" also includes the "Equity Incentive Award Program Restricted Share Award Agreement" that the Company proposes to adopt in connection with this Agreement. Each Benefit Plan is listed on Schedule 3.1(qq)(i). True and complete copies of all Benefit Plans listed on Schedule 3.1(qq)(i) have been made available to Purchaser prior to the date hereof, other than the "Equity Incentive Award Program Restricted Share Award Agreement" that the Company proposes to adopt in connection with this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp;With respect to each Benefit Plan, (A) the Company and its Subsidiaries have complied, and are now in compliance in all material respects with the applicable provisions of ERISA, and the Code and all other Laws and regulations applicable to such Benefit Plan and (B) each Benefit Plan has been administered in all material respects in accordance with its terms. Except as would not reasonably be expected to be material to the Company or any of its Subsidiaries, none of the Company or any of its Subsidiaries nor any of their respective ERISA Affiliates has incurred any withdrawal liability as a result of a complete or partial withdrawal from a multiemployer plan, as those terms are defined in Part I of Subtitle E of Title IV of ERISA, that has not been satisfied in full. "**ERISA Affiliate**" means any entity, trade or business, whether or not incorporated, which together with the Company and its Subsidiaries, would be deemed a "single employer" within the meaning of Section 4001 of ERISA or Sections 414(b), (c), (m) or (o) of the Code.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;&nbsp;&nbsp;&nbsp;Each Benefit Plan which is subject to ERISA (an "**ERISA Plan**") that is an "employee pension benefit plan" within the meaning of Section 3(2) of ERISA ("**Pension Plan**") and that is intended to be qualified under Section 401 (a) of the Code, has received a favorable determination or opinion letter from the Internal Revenue Service (the "**IRS**") to the effect that it is so qualified and, to the Company's Knowledge, nothing has occurred, whether by action or failure to act, that could likely result in revocation of any such favorable determination or opinion letter or the loss of the qualification of such Benefit Plan under Section 401(a) of the Code. Neither the Company nor any of its Subsidiaries has engaged in a transaction with respect to any ERISA Plan that, assuming the taxable period of such transaction expired as of the date hereof, could subject the Company or any of its Subsidiaries to a

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material tax or material penalty imposed by either Section 4975 of the Code or Section 502(i) of ERISA. Neither the Company nor any of its Subsidiaries has incurred or reasonably expects to incur a material tax or penalty imposed by Section 4980F of the Code or Section 502 of ERISA.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv)&nbsp;&nbsp;&nbsp;&nbsp;Neither the Company, any of its Subsidiaries nor any ERISA Affiliate (x) sponsors, maintains or contributes to or has within the past six years sponsored, maintained or contributed to a Pension Plan that is subject to Subtitles C or D of Title IV of ERISA or (y) sponsors, maintains or has any liability with respect to or an obligation to contribute to or has within the past six years sponsored, maintained, had any liability with respect to, or had an obligation to contribute to a "multiemployer plan" within the meaning of Section 3(37) of ERISA.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v)&nbsp;&nbsp;&nbsp;&nbsp;None of the execution and delivery of this Agreement or any Additional Purchase Agreement, the issuance of Purchased Shares, nor the consummation of the transactions contemplated hereby or thereby will (i) constitute a "change in control" or "change of control" within the meaning of any Benefit Plan or result in any material payment or benefit (including severance, unemployment compensation, "excess parachute payment" (within the meaning of Section 280G of the Code), forgiveness of indebtedness or otherwise) becoming due to any current or former employee, officer, director or consultant of the Company or any of its Subsidiaries from the Company or any of its Subsidiaries under any Benefit Plan or any other agreement with any employee, including, for the avoidance of doubt, any employment or change in control agreements, (ii) result in payments under any of the Benefit Plans which would not be deductible under Section 162(m) or Section 280G of the Code, (iii) materially increase any compensation or benefits otherwise payable under any Benefit Plan, (iv) result in any acceleration of the time of payment or vesting of any such benefits, (v) require the funding or increase in the funding of any such benefits, or (vi) result in any limitation on the right of the Company or any of its Subsidiaries to amend, merge, terminate or receive a reversion of assets from any Benefit Plan or related trust.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi)&nbsp;&nbsp;&nbsp;&nbsp;There is no material pending or, to the Company's Knowledge, threatened, litigation relating to the Benefit Plans (other than claims for benefits in the ordinary course). Neither the Company nor any of its Subsidiaries has any obligations for retiree health and life benefits under any ERISA Plan or collective bargaining agreement, except for health continuation coverage as required by Section 4980B of the Code or Part 6 of Title I of ERISA and at no expense to the Company and its Subsidiaries.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii)&nbsp;&nbsp;&nbsp;&nbsp;Except as would not reasonably be expected to be material to the Company and except for liabilities fully reserved for or identified in the Company Financial Statements, there are no pending or, to the Company's Knowledge, threatened claims (other than claims for benefits in the ordinary course), lawsuits or arbitrations which have been asserted or instituted against (i) the Benefit Plans, (ii) any fiduciaries thereof with respect to their duties to the Benefit Plans, or (iii) the assets of any of the trusts under any of the Benefit Plans.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(rr)&nbsp;&nbsp;&nbsp;&nbsp;<u>No Change in Control</u>. Neither the Company nor any of its Subsidiaries is a party to any employment, change in control, severance, or other compensatory agreement or any benefit plan pursuant to which the issuance of the Shares to the Purchasers as contemplated by this Agreement or any Additional Purchase Agreement would trigger a "change of control" or other similar provision in any of the agreements, which results in payments to the counterparty or the acceleration of vesting of benefits.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ss)&nbsp;&nbsp;&nbsp;&nbsp;<u>Common Control</u>. The Company is not and, after giving effect to the offering and sale of the Shares, will not be under the control (as defined in the BHCA and the Federal Reserve's Regulation Y (12 C.F.R. Part 225) ("**BHCA Control**") of any company (as defined in the BHCA and the Federal Reserve's Regulation Y). The Company is not in BHCA Control of any federally insured depository

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institution other than the Bank. The Bank is not under the BHCA Control of any company (as defined in the BHCA and the Federal Reserve's Regulation Y) other than Company. Neither the Company nor the Bank controls, in the aggregate, more than five percent (5%) of the outstanding voting class, directly or indirectly, of any federally insured depository institution. The Bank is not subject to the liability of any commonly controlled depository institution pursuant to Section 5(e) of the Federal Deposit Insurance Act (12 U.S.C. § 1815(e)).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(tt)&nbsp;&nbsp;&nbsp;&nbsp;<u>Material Contracts</u>. The Company has made available to Purchaser or its respective representatives, prior to the date hereof, true, correct, and complete copies of, and listed on Schedule 3.1(tt), each Material Contract to which the Company or any of its Subsidiaries is a party or subject (whether written or oral, express or implied) as of the date of this Agreement. Each Material Contract is a valid and binding obligation of the Company or any of its Subsidiaries (as applicable) that is a party thereto and, to the Company's Knowledge, each other party to such Material Contract, except for such failures to be valid and binding as, individually or in the aggregate, would not reasonably be expected to be material to the Company and its Subsidiaries on a consolidated basis. Each such Material Contract is enforceable against the Company or any of its Subsidiaries (as applicable) that is a party thereto and, to the Company's Knowledge, each other party to such Material Contract in accordance with its terms (subject in each case to applicable bankruptcy, insolvency, reorganization, moratorium or similar Laws affecting the enforcement of creditors' rights generally and general equitable principles, regardless of whether such enforceability is considered in a proceeding of law or at equity), except for such failures to be enforceable as, individually or in the aggregate, would not reasonably be expected to be material to the Company and its Subsidiaries on a consolidated basis. Neither the Company nor any of its Subsidiaries, nor to the Company's Knowledge, any other party to a Material Contract, is in material default or material breach of a Material Contract and there does not exist any event, condition or omission that would constitute such a material default or breach (whether by lapse of time or notice or both), in each case, except as, individually or in the aggregate, would not reasonably be expected to be material to the Company and its Subsidiaries on a consolidated basis.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(uu)&nbsp;&nbsp;&nbsp;&nbsp;<u>No "Bad Actor" Disqualification</u>. The Company has exercised reasonable care, in accordance with Commission rules and guidance, and has conducted a factual inquiry including the procurement of relevant questionnaires from each Covered Person (as defined below) or other means, the nature and scope of which reflect reasonable care under the relevant facts and circumstances, to determine whether any Covered Person is subject to any of the "bad actor" disqualifications described in Rule 506(d)(1)(i) to (viii) under the Securities Act ("**Disqualification Events**"). To the Company's Knowledge, after conducting such sufficiently diligent factual inquiries, no Covered Person is subject to a Disqualification Event, except for a Disqualification Event covered by Rule 506(d)(2) or (d)(3) under the Securities Act. The Company has complied, to the extent applicable, with any disclosure obligations under Rule 506(e) under the Securities Act. "**Covered Persons**" are those persons specified in Rule 506(d)(1) under the Securities Act, including the Company, any predecessor or Affiliate of the Company, any director, executive officer, other officer participating in the offering, general partner or managing member of the Company, any beneficial owner of twenty percent (20%) or more of the Company's outstanding voting equity securities, calculated on the basis of voting power, any promoter (as defined in Rule 405 under the Securities Act) connected with the Company in any capacity at the time of the sale of the Shares, and any person that has been or will be paid (directly or indirectly) remuneration for solicitation of purchasers in connection with the sale of the Shares (a "**Solicitor**"), any general partner or managing member of any Solicitor, and any director, executive officer or other officer participating in the offering of any Solicitor or general partner or managing member of any Solicitor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vv)&nbsp;&nbsp;&nbsp;&nbsp;<u>Knowledge as to Conditions</u>. To the Company's Knowledge, there is no reason why it would be reasonable to expect that any regulatory approvals and, to the extent necessary, any other

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approvals, authorizations, filings, registrations, and notices required or otherwise a condition to the consummation of the transactions contemplated by the Transaction Documents will not be obtained.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ww)&nbsp;&nbsp;&nbsp;&nbsp;<u>Shell Company Status</u>. The Company is not, and has never been, an issuer identified in Rule 144(i)(1).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xx)&nbsp;&nbsp;&nbsp;&nbsp;<u>No Other Representations</u>. The Company has not made and does not make any representations or warranties with respect to the transactions contemplated hereby other than those specifically set forth in this Section 3.1.

Section 3.2&nbsp;&nbsp;&nbsp;&nbsp;<u>Representations and Warranties of the Purchasers</u>. Each Purchaser hereby, for itself and for no other Purchaser, represents and warrants as of the date of this Agreement and as of the Closing Date to the Company as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;<u>Organization; Authority</u>. If such Purchaser is an entity, it is duly organized, validly existing and in good standing under the Laws of the jurisdiction of its organization with the requisite corporate, partnership, limited liability company or other power and authority to enter into and to consummate the transactions contemplated by the applicable Transaction Documents and otherwise to carry out its obligations hereunder and thereunder. If such Purchaser is an entity, the execution and delivery of this Agreement and performance by such Purchaser of the transactions contemplated by this Agreement have been duly authorized by all necessary corporate or, if such Purchaser is not a corporation, such partnership, limited liability company or other applicable like action, on the part of such Purchaser, and no further approval or authorization by any person is required. This Agreement has been duly executed such Purchaser, and when delivered by such Purchaser in accordance with the terms hereof, will constitute the valid and legally binding obligation of such Purchaser, enforceable against it in accordance with its terms, except as such enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium, liquidation, or similar Laws relating to, or affecting generally the enforcement of, creditors' rights and remedies or by other equitable principles of general application.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;<u>No Conflicts</u>. The execution, delivery, and performance by such Purchaser of the Transaction Documents to which it is a party and the consummation by such Purchaser of the transactions contemplated hereby and thereby will not (i) result in a violation of the organizational documents of such Purchaser, (ii) conflict with, or constitute a default (or an event which with notice or lapse of time or both would become a default) under, or give to others any rights of termination, amendment, acceleration or cancellation of, any agreement, indenture, or instrument to which such Purchaser is a party, or (iii) result in a violation of any Law, rule, regulation, order, judgment, or decree (including federal and state securities Laws) applicable to such Purchaser, except in the case of clauses (ii) and (iii) above, for such conflicts, defaults, rights, or violations which would not, individually or in the aggregate, reasonably be expected to have a material adverse effect on the ability of such Purchaser to perform its obligations hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;<u>Investment Intent</u>. Such Purchaser understands that the Shares are "restricted securities" and have not been registered under the Securities Act or any applicable state securities Law and is acquiring the Shares as principal for its own account and not with a view to, or for distributing or reselling such Shares or any part thereof in violation of the Securities Act or any applicable state securities Laws, provided, however, that by making the representations herein, such Purchaser does not agree to hold any of the Shares for any minimum period of time and reserves the right at all times to sell or otherwise dispose of all or any part of such Shares pursuant to an effective registration statement under the Securities Act that covers such Shares, or under an exemption from such registration and in compliance with applicable federal and state securities Laws. Such Purchaser is acquiring the Shares hereunder in the ordinary course of its business. Such Purchaser does not presently have any agreement, plan, or

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understanding, directly or indirectly, with any Person, or any intent, to distribute or effect any distribution of any of the Shares (or any securities which are derivatives thereof) to or through any person or entity. Such Purchaser has had access to such financial and other information concerning the Company and its Subsidiaries as such Purchaser deemed necessary or desirable in making a decision to purchase the Shares, including an opportunity to ask questions and receive answers from officers of the Company and its Subsidiaries and to obtain additional information necessary to verify the accuracy of any information furnished to such Purchaser or to which such Purchaser had access.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;<u>Purchaser Status</u>. At the time such Purchaser was offered the Shares, it was, and at the date hereof it is, an "accredited investor" as defined in Rule 501(a) under the Securities Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;<u>Residency</u>. Such Purchaser's office in which its investment decision with respect to the Shares was made is located at the address for Purchaser set forth in Section 6.3.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;&nbsp;&nbsp;<u>No Other Representation</u>. Such Purchaser has not made and does not make any

representations or warranties with respect to the transactions contemplated hereby other than those specifically set forth in this Section 3.2.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;&nbsp;&nbsp;&nbsp;<u>Acknowledgement of No Other Representations or Warranties</u>. Except for the representations and warranties contained in Section 3.1, such Purchaser acknowledges and agrees that none of the Company, its Subsidiaries, nor any of their respective affiliates, directors, officers, investment bankers, financial advisors and counsel makes or has made any representation or warranty, either express or implied, concerning the Company or its Subsidiaries or any of their respective assets or properties or the transactions contemplated by this Agreement. Such Purchaser further acknowledges that it takes full responsibility for making its own evaluation of the adequacy and accuracy of all estimates, projections, forecasts, plans and budgets furnished to it or its representatives.

**ARTICLE IV**

**OTHER AGREEMENTS OF THE PARTIES**

Section 4.1&nbsp;&nbsp;&nbsp;&nbsp;<u>Transfer Restrictions</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;<u>Compliance with Laws</u>. Notwithstanding any other provision of this Article IV, each Purchaser covenants that the Purchased Shares may be disposed of only pursuant to an effective registration statement under, and in compliance with the requirements of, the Securities Act, or pursuant to an available exemption from, or in a transaction not subject to, the registration requirements of the Securities Act, and in compliance with any applicable state, federal or foreign securities Laws. In connection with any transfer of the Shares other than (i) pursuant to an effective registration statement, (ii) to the Company or (iii) pursuant to Rule 144 (provided that the transferor provides the Company with reasonable assurances (in the form of a seller representation letter and, if applicable, a broker representation letter) that such securities may be sold pursuant to such rule), the Company may require the transferor thereof to provide to the Company and the Transfer Agent, at the transferor's expense, an opinion of counsel selected by the transferor and reasonably acceptable to the Company and the Transfer Agent, the form and substance of which opinion shall be reasonably satisfactory to the Company and the Transfer Agent, to the effect that such transfer does not require registration of such Shares under the Securities Act. As a condition of transfer (other than pursuant to clauses (i), (ii) or (iii) of the preceding sentence), any such transferee shall agree in writing to be bound by the terms of this Agreement and shall have the rights of a Purchaser under this Agreement and, to the extent set forth therein, the Registration Rights Agreement, with respect to such transferred Shares.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;<u>Legends</u>. Certificates evidencing the Shares shall bear any legend as required by the "blue sky" laws of any state and a restrictive legend in substantially the following form, until such time as they are not required under Section 4.1(c), applicable Law, or as a result of any amendment to the bylaws of the Company, as the case may be:

The securities represented by the Certificate have not been registered under the Securities Act of 1933 as amended (The "Act"). The securities have been acquired by the registered holder hereof for such holder's own account for investment and, except with the written consent of the Corporation, may not be pledged, hypothecated, sold or transferred, in the absence of an effective registration statement for such securities under the Act unless the Corporation has received either (i) an opinion of its counsel to the effect that registration of such securities in connection with such transaction is not required under the Act or (ii) a seller representation letter or, if applicable, a broker representation letter, providing the Corporation with reasonable assurances that such securities may be sold pursuant to Rule 144 under the Act.

The sale or other transfer of this Certificate is subject to the restrictions set out in Article VI of the Bylaws of the Corporation, which are on file at the office of the Secretary of the Corporation. Such restrictions provide that no share of stock of this Corporation shall be sold, given, assigned, bequeathed or otherwise transferred, voluntarily or involuntarily by any Shareholder, his or her executor, administrator, trustee in bankruptcy, receiver or other legal representative, or by any other person owning or holding any share or shares of stock of the Corporation, nor shall any shares of stock of this Corporation be sold or otherwise transferred by operation or any act or process of law or equity, to any person, firm or corporation whomsoever, including a Shareholder of this Corporation, unless and until such shares of stock of the Corporation shall first have been offered for sale to the Corporation in the manner and upon the terms and conditions proved in the corporate Bylaws. Such restrictions do not apply to a transfer, by whatever means, to a spouse or lineal descendant of the Shareholder, or to a trust or to a court-appointed fiduciary for the benefit of such person.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;<u>Removal of Legends</u>. Upon the request of the holder, and subject to the holder's compliance with the obligations set forth in Section 4.1(a), the first paragraph of the restrictive legend set forth in Section 4.1(b) above shall be removed and the Company shall issue a certificate or book-entry shares without such restrictive legend or any other restrictive legend (other than, if applicable, the second paragraph of the restrictive legend set forth in Section 4.1(a)) to the holder of the applicable Shares upon which it is stamped, if (i) such Shares are being sold pursuant to an effective registration statement under the Securities Act, (ii) such Shares are sold or transferred pursuant to Rule 144, or (iii) such Shares are eligible for sale under Rule 144 by a holder that is not an affiliate of the Company, without the requirement for the Company to be in compliance with the current public information required under Rule 144(c)(1) (or Rule 144(i)(2), if applicable) as to such securities and without volume or manner-of- sale restrictions; *provided*, in the case of clause (iii), that the holder shall have delivered to the Company a seller representation letter and, if applicable, a broker representation letter, stating that such securities may be sold, and will continue to be eligible for sale, pursuant to such rule. Following the earlier of (i) the holder notifying the Company that Shares are being sold pursuant to an effective registration statement under the Securities Act or (ii) Rule 144 becoming available for the resale of Shares, without

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the requirement for the Company to be in compliance with the current public information required under Rule 144(c)(1) (or Rule 144(i)(2), if applicable) as to the Shares and without volume or manner-of-sale restrictions, the Company, upon the written request of the holder and, in the case of clause (ii), upon receipt of reasonable assurances (in the form of a seller representation letter and, if applicable, a broker representation letter) that such securities may be sold, and will continue to be eligible for sale, pursuant to Rule 144, shall instruct the Transfer Agent to remove the first paragraph of the legend from the Shares and shall cause its counsel to issue any legend removal opinion required by the Transfer Agent. Any fees (with respect to the Company or the Transfer Agent, Company counsel or otherwise) associated with the issuance of such opinion or the removal of such legend shall be borne by the Company. If a legend is no longer required pursuant to the foregoing, the Company will no later than ten (10) Trading Days following the delivery by a Purchaser to the Transfer Agent (with notice to the Company) of a legended certificate representing such Shares (endorsed or with stock powers attached, signatures guaranteed, and otherwise in form necessary to affect the reissuance and/or transfer) and the representation letter(s) to the extent required by Section 4.1(a) and this Section 4.1(c) (such third Trading Date, the "**Legend Removal Date**"), deliver or cause to be delivered to Purchaser a certificate representing such Shares that is free from such restrictive legend(s). Except for any restrictive legend required with respect to the limitations in the bylaws of the Company in effect as of the date hereof, the Company may not make any notation on its records or give instructions to the Transfer Agent that enlarge the restrictions on transfer set forth in this Section 4.1(c).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;If the Company shall fail for any reason or for no reason to issue to any Purchaser unlegended certificates by the Legend Removal Date in accordance with Section 4.1(c), then, in addition to all other remedies available to Purchaser, if on or after the trading day immediately following such ten (10) Trading Day period, such Purchaser purchases, or a broker (a "**Buy-In Broker**") purchases (in an open market transaction or otherwise) shares of Common Stock to deliver in satisfaction of such sale in lieu of shares of Common Stock Purchaser anticipated receiving from the Company without the applicable restrictive legend (a "**Buy-In**"), then the Company shall, within ten (10) Trading Days after such Purchaser's request, honor its obligation to deliver to such Purchaser a certificate or certificates without the applicable restrictive legends representing such shares of Common Stock and pay cash to such Purchaser in an amount equal to the excess (if any) of such Purchaser's or Buy-In Broker's total purchase price (including brokerage commissions, if any) for the shares of Common Stock so purchased over the product of (i) such number of shares of Common Stock, times (ii) the closing sale price on the Legend Removal Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;The Company shall cooperate, in accordance with reasonable and customary business practices with any and all transfers, whether by direct or indirect sale, assignment, award, confirmation, distribution, bequest, donation, trust, pledge, encumbrance, hypothecation or other transfer or disposition, for consideration or otherwise, whether voluntarily or involuntarily, by operation of law or otherwise, by the Purchasers or any of their respective successors and assigns of the Shares and other shares of Common Stock and/or Non-Voting Common Stock such party may beneficially own prior to or subsequent to the date hereof.

Section 4.2&nbsp;&nbsp;&nbsp;&nbsp;<u>Acknowledgment of Dilution</u>. The Company and each Purchaser acknowledges that the issuance of the Shares may result in dilution of the outstanding shares of Common Stock. The Company and each Purchaser further acknowledges that its obligations under the Transaction Documents, including without limitation the Company's obligation to issue the Shares pursuant to the Transaction Documents, are unconditional (except as otherwise set forth herein) absolute and not subject to any right of set off, counterclaim, delay or reduction, regardless of the effect of any such dilution or any claim the Company or any Purchaser may have against any Purchaser or the Company, and regardless of the dilutive effect that such issuance may have on the ownership of the other shareholders of the Company.

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Section 4.3&nbsp;&nbsp;&nbsp;&nbsp;<u>Access; Information; Confidentiality</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;Castle Creek shall be provided with access, information, and other rights as provided in the VCOC Letter Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;For so long as a Purchaser and its Affiliates in the aggregate own at least the lesser of: (i) five percent (5.0%) of the Common Stock then outstanding and (ii) the number of Shares purchased pursuant to this Agreement (the "**Minimum Ownership Interest**"), the Company shall provide such Purchaser with all written materials and other information given to members of the Board or the Bank Boards at the same time such materials and information are given to such members (provided, however, that such Purchaser shall not be provided any confidential supervisory information (as defined in 12 C.F.R. Part 261), information which is related to a pending or ongoing regulatory exam or which is subject to attorney-client privilege). If a Purchaser ceases to have a Minimum Ownership Interest, such Purchaser will have no further rights under this Section 4.3(b).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;Notwithstanding anything to the contrary in this Agreement, including Section 4.22, or the VCOC Letter Agreement, Purchaser shall comply with its obligations under any confidentiality agreement between the Company and Purchaser or any of its Affiliates. Without limiting the generality of the foregoing, Purchaser is expressly prohibited from disclosing to any third party or using (other than for the benefit of the Company), any confidential information obtained from or with respect to the Company, including, without limitation, any confidential business strategies or methods and any confidential corporate opportunities of the Company, *provided* that nothing herein shall prohibit Purchaser from disclosing any of the foregoing to the extent requested or required by any Governmental Entity, self-regulating organization or auditor. As used herein, "confidential information" does not include any information that was or becomes generally available to the public or is in the public domain at the time of its disclosure, other than as a result of the disclosure by Purchaser or its representatives.

Section 4.4&nbsp;&nbsp;&nbsp;&nbsp;<u>Form D and Blue Sky</u>. The Company agrees to timely file or amend a Form D with respect to the Purchased Shares as required under Regulation D. The Company, on or before the Closing Date, shall take such action as the Company shall reasonably determine is necessary in order to obtain an exemption for or to qualify the Purchased Shares for sale to the Purchasers at the Closing pursuant to this Agreement under applicable securities or "Blue Sky" Laws of the states of the United States (or to obtain an exemption from such qualification). The Company shall make all filings and reports relating to the offer and sale of the Purchased Shares required under applicable securities or "Blue Sky" Laws of the states of the United States following the Closing Date.

Section 4.5&nbsp;&nbsp;&nbsp;&nbsp;<u>No Integration</u>. The Company shall not, and shall use its reasonable best efforts to ensure that no Affiliate of the Company shall, sell, offer for sale or solicit offers to buy or otherwise negotiate in respect of any security (as defined in Section 2 of the Securities Act) that will be integrated with the offer or sale of the Purchased Shares in a manner that would require the registration under the Securities Act of the sale of the Purchased Shares to the Purchasers.

Section 4.6&nbsp;&nbsp;&nbsp;&nbsp;<u>Securities Laws Disclosure; Publicity</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;The Company shall, by 9:00 a.m., Eastern Time, on the first Trading Day immediately following the date of this Agreement, or such other date as may be mutually agreeable to the Company and the Purchasers, issue one or more press releases (collectively, the "**Initial Press Release**") reasonably acceptable to the Purchasers disclosing all material terms of the transactions contemplated hereby and by the other Transaction Documents or Additional Purchase Agreements and any other material, non-public information that the Company may have provided the Purchasers at any time prior to the filing of the Initial Press Release. Whenever any party determines, based upon the advice of such party's counsel, that

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a public announcement or other disclosure is required by or advisable with respect to any applicable Law or regulation, the parties shall discuss such disclosure with each other in good faith prior to the making of such public announcement or other disclosure.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;The Company shall, by 9:00 a.m., Eastern Time on the first Trading Day immediately following the Closing Date, issue one or more press releases reasonably acceptable to the Purchasers disclosing the Closing.

Section 4.7&nbsp;&nbsp;&nbsp;&nbsp;<u>Bank Regulatory Approvals</u>. Upon Castle Creek's request, the Company shall use its reasonable best efforts to cooperate with Castle Creek to receive the Bank Regulatory Approvals. Notwithstanding anything to the contrary in this Agreement, upon the receipt of such Bank Regulatory Approvals, all references in this Agreement to ownership and voting limitations (but not the Minimum Ownership Interest) of nine point nine percent (9.9%) shall be deemed to be deleted and replaced with twenty-four point nine percent (24.9%). Upon Castle Creek receiving such Bank Regulatory Approvals, the Company shall use its reasonable best efforts to exchange all shares of Non-Voting Common Stock held by Castle Creek into the applicable number of shares of Common Stock and to deliver such shares of Common Stock Castle Creek in book-entry form.

Section 4.8&nbsp;&nbsp;&nbsp;&nbsp;<u>Indemnification</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;<u>Indemnification of Purchasers</u>. Subject to the limitations set forth in this Section 4.8, in addition to the indemnity provided in the Registration Rights Agreement, if applicable, the Company will indemnify and hold each Purchaser and its directors, officers, shareholders, members, partners, employees, agents, and investment advisors (and any other Persons with a functionally equivalent role of a Person holding such titles notwithstanding a lack of such title or any other title), each Person who controls such Purchaser (within the meaning of Section 15 of the Securities Act and Section 20 of the Exchange Act), and the directors, officers, shareholders, agents, members, partners, employees, agents, or investment advisors (and any other Persons with a functionally equivalent role of a Person holding such titles notwithstanding a lack of such title or any other title) of such controlling person (each, a "**Purchaser Party**") harmless from any and all losses, liabilities, obligations, claims, contingencies, damages, costs, and expenses, including all judgments, amounts paid in settlements, court costs, and reasonable attorneys' fees and costs of investigation, excluding in each case any consequential, special, indirect or punitive damages (collectively, "**Losses**"), without duplication, that any such Purchaser Party may suffer or incur as a result of (i) any breach of any of the representations, warranties, covenants, or agreements made by the Company in this Agreement, and (ii) any action instituted against a Purchaser Party in such capacity, or any of them or their respective affiliates, by any shareholder of the Company who is not an affiliate of such Purchaser Party, with respect to any of the transactions contemplated by this Agreement. Any indemnification payment made pursuant to this Agreement shall be treated as an adjustment to purchase price for Tax purposes, except as otherwise required by Law or deemed impermissible under GAAP. Such payment shall not result in an adjustment to the value of the original investment reported by the Company under GAAP. Except in connection with Losses resulting from, arising out of, or caused by fraud, the indemnification rights set forth herein shall be the Purchaser's sole remedy for any breach of any of the representations and warranties any breach of covenants or agreements (other than in the case of a willful and intentional breach) by the Company after the Closing Date; provided, however, nothing in this Section 4.8(a) shall be deemed to limit or restrict the rights of any Purchaser Party to seek injunctive relief or other equitable remedies.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;<u>Third Party Claims</u>. Promptly after receipt by any Purchaser Party of notice of any demand, claim, or circumstances which would or might give rise to a claim or the commencement of any action, proceeding, or investigation in respect of which indemnity may be sought pursuant to Section 4.8(a), such Purchaser Party shall promptly notify the Company in writing and the Company may

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assume the defense thereof, including the employment of counsel reasonably satisfactory to such Purchaser Party, and shall assume the payment of all fees and expenses; <u>provided</u>, <u>however</u>, that the failure of any Purchaser Party so to notify the Company shall not relieve the Company of its obligations hereunder except to the extent that the Company is actually and materially and adversely prejudiced by such failure to notify. In any such proceeding, any Purchaser Party shall have the right to retain its own counsel, but the fees and expenses of such counsel shall be at the expense of such Purchaser Party unless (i) the Company and the Purchaser Party shall have mutually agreed to the retention of such counsel, (ii) the Company shall have failed promptly to assume the defense of such proceeding and to employ counsel reasonably satisfactory to such Purchaser Party in such proceeding, or (iii) in the reasonable judgment of counsel to such Purchaser Party, representation of both parties by the same counsel would be inappropriate due to actual or potential differing interests between them. The Company shall not be liable for any settlement of any proceeding effected without its written consent, which consent shall not be unreasonably withheld, delayed or conditioned. Without the prior written consent of the Purchaser Party, the Company shall not effect any settlement of any pending or threatened proceeding in respect of which any Purchaser Party is or could have been a party and indemnity could have been sought hereunder by such Purchaser Party, unless such settlement includes an unconditional release of such Purchaser Party from all liability arising out of such proceeding.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;<u>Limitations on the Company's Indemnification Liability</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;Except as provided otherwise in Section 4.8(c)(iv), the Company will not be liable for Losses that otherwise are indemnifiable under Section 4.8(a) until the total amount of all Losses suffered by the Purchaser Parties exceeds an amount equal to half a percent (0.5%) of the aggregate Subscription Amount paid by all Purchasers, at which point only the Losses in excess of such amount shall be recoverable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp;Except as provided otherwise in Section 4.8(c)(iv), the maximum aggregate liability of the Company for all Losses under Section 4.8(a) shall be an amount equal to ten percent (10%) of the aggregate Subscription Amount paid by all Purchasers, provided however, that the maximum aggregate liability of the Company for all Losses under Section 4.8(a) as to any individual Purchaser (together with any of such Purchaser's directors, officers, shareholders, members, partners, employees, agents, and investment advisors (and any other Persons with a functionally equivalent role of a Person holding such titles notwithstanding a lack of such title or any other title), each Person who controls such Purchaser (within the meaning of Section 15 of the Securities Act and Section 20 of the Exchange Act), and the directors, officers, shareholders, agents, members, partners, employees, agents, or investment advisors (and any other Persons with a functionally equivalent role of a Person holding such titles notwithstanding a lack of such title or any other title) of such Purchaser) is ten percent (10%) of the aggregate Subscription Amount of such individual Purchaser.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;&nbsp;&nbsp;&nbsp;Except as provided otherwise in Section 4.8(c)(iv), the Company's representations and warranties shall survive the Closing and continue in full force and effect for a period of twelve (12) months following the Closing Date. The Company shall not be liable for any claim for indemnification under this Section 4.8 unless such claim is delivered by a Purchaser Party seeking indemnification to the Company prior to the end of the applicable survival period, in which case the representation or warranty that is the subject of such claim shall survive, to the extent of such claim only, until such claim is resolved.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv)&nbsp;&nbsp;&nbsp;&nbsp;The provisions of Section 4.8(c)(i), (ii) and (iii) do not apply to (A) claims due to the inaccuracy of any of the representations or breach of any of the warranties of the Company in Sections 3.1(a), 3.1(b), 3.1(c), 3.1(f), 3.1(g), 3.1(i) or 3.1(u), or (B) indemnification claims involving fraud. The Company shall not be liable for any claim for indemnification under this Section 4.8 with respect to a

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breach of Section 3.1(i) unless such claim is delivered by a Purchaser Party prior to the end of the survival period set forth in Section 6.9.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v)&nbsp;&nbsp;&nbsp;&nbsp;Except for (i) the reference to Material Adverse Effect in clause (i) of Section 3.1(j) (and the references to "material" in the definition of such term) and (ii) references to "material" in the terms "Material Contract" and "Material Permit," for purposes of the indemnity contained in Section 4.8(a), all qualifications and limitations set forth in the parties' representations and warranties as to "materiality," "Material Adverse Effect" and words of similar import shall be disregarded in determining whether there shall have been any inaccuracy in or breach of any representations and warranties in this Agreement and the Losses arising therefrom.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;<u>Investigation</u>. Except as set forth in the Disclosure Schedules, no investigation by any Purchaser, whether prior to or after the date of this Agreement, shall limit any Purchaser Party's exercise of any right hereunder or be deemed to be a waiver of any such right.

Section 4.9&nbsp;&nbsp;&nbsp;&nbsp;<u>Use of Proceeds</u>. The Company intends to use the net proceeds from the sale of the Shares hereunder and under any Additional Purchase Agreements to strengthen the Company's current balance sheet, improve the regulatory capital of the Bank, support its operations and growth opportunities and for general corporate purposes.

Section 4.10&nbsp;&nbsp;&nbsp;&nbsp;<u>Limitation on Beneficial Ownership</u>. No Purchaser (and its Affiliates or any other Persons with which it is acting in concert) shall be entitled to purchase a number of Common Shares that would result in such Purchaser becoming, directly or indirectly, the beneficial owner (as determined under Rule 13d-3 under the Exchange Act) at the Closing of more than nine point nine percent (9.9%) of the number of shares of the Company's voting securities issued and outstanding.

Section 4.11&nbsp;&nbsp;&nbsp;&nbsp;<u>Anti-Take Over Matters</u>. If any Takeover Law may become, or may purport to be, applicable to the transactions contemplated or permitted by this Agreement, the Company and the Board shall grant such approvals and take such actions as are necessary so that the transactions contemplated or permitted by this Agreement and the other Transaction Documents may be consummated, as promptly as practicable, on the terms contemplated by this Agreement and the other Transaction Documents, as the case may be, and otherwise act to eliminate or minimize the effects of any Takeover Law on any of the transactions contemplated or permitted by this Agreement and the other Transaction Documents.

Section 4.12&nbsp;&nbsp;&nbsp;&nbsp;<u>No Additional Issuances</u>. Between the date of this Agreement and the Closing Date, except for the Shares being issued pursuant to this Agreement or pursuant to any Additional Purchase Agreements providing for the issuance of no more than 273,973 shares of Common Stock in the aggregate at a price per share no less than the Purchase Price, the Company shall not issue or agree to issue any additional shares of Common Stock or other securities that provide the holder thereof the right to convert such securities into, or acquire, shares of Common Stock. For the avoidance of doubt, nothing in this Section 4.12 shall restrict the Company from issuing securities in response or pursuant to an order or directive by the Federal Reserve with respect to capital adequacy.

Section 4.13&nbsp;&nbsp;&nbsp;&nbsp;<u>Conduct of Business</u>. From the date hereof until the earlier of the Closing Date or the termination of this Agreement in accordance with its terms, except as contemplated by this Agreement or as set forth in Schedule 4.13, the Company will, and will cause its Subsidiaries to: (i) operate their business in the ordinary course consistent with past practice; (ii) use commercially reasonable efforts to preserve intact the current business organization of the Company; (iii) use commercially reasonable efforts to retain the services of their employees, consultants, and agents; (iv) use commercially reasonable efforts to preserve the current relationships of the Company and its Subsidiaries

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with material customers and other Persons with whom the Company and its Subsidiaries have and intend to maintain significant relations; (v) use commercially reasonable efforts to maintain all of its operating assets in their current condition (normal wear and tear excepted); and (vi) refrain from (1) declaring, setting aside or paying any distributions or dividends on, or making any distributions (whether in cash, securities, or other property) in respect of, any of its capital stock, other than in the ordinary course of business, (2) splitting, combining or reclassifying any of its capital stock or issuing or authorizing the issuance of any other securities in respect of, in lieu of or in substitution for capital stock or any of its other securities, and (3) purchasing, redeeming or otherwise acquiring any capital stock, assets or other securities or any rights, warrants or options to acquire any such capital stock, assets or other securities, other than acquisitions of investment securities in the ordinary course of business and acquisitions of shares to the extent required in connection with the ESOP. Additionally, except (w) as required pursuant to existing written, binding agreements in effect prior to the date hereof and set forth in Schedule 3.1(qq), (x) as required or requested by any Governmental Entity, (y) as disclosed on Schedule 4.13 and (z) with respect to clauses (i) and (ii), except in the ordinary course of business consistent with past practice, prior to the earlier of the Closing Date and the termination of this Agreement pursuant to Section 6.10, the Company shall and shall cause its Subsidiaries to not take any of the following actions without the Purchasers' prior written consent, which shall not be unreasonably withheld, conditioned or delayed: (i) grant or provide any severance or termination payments or benefits to any director, officer or employee of the Company or any of its Subsidiaries; (ii) increase the compensation, bonus or pension, welfare, severance or other benefits of, pay any bonus to, or make any new equity awards to any director or executive officer of the Company or any of its Subsidiaries; (iii) establish, adopt, amend or terminate any Benefit Plan or amend the terms of any outstanding equity-based awards, except as may be required by applicable Law or in connection with the "Equity Incentive Award Program Restricted Share Award Agreement" that the Company proposes to adopt in connection with this Agreement; (iv) take any action to accelerate the vesting or payment, or fund or in any other way secure the payment, of compensation or benefits under any Benefit Plan, to the extent not already provided in any such Benefit Plan; (v) change any actuarial or other assumptions used to calculate funding obligations with respect to any Benefit Plan or to change the manner in which contributions to such plans are made or the basis on which such contributions are determined, except as may be required by GAAP; (vi) forgive any loans to directors, officers or employees of the Company or any of its Subsidiaries; or (vii) enter into any contract with respect to, or otherwise agree or commit to do, any of the foregoing; provided, that in no event shall any increase of any payment in the ordinary course of business under clause (ii) increase such person's compensation by more than five percent (5%) in the aggregate except pursuant to any agreement set forth in Schedule 3.1(qq). Furthermore, from the date of this Agreement until the Closing, the Company shall not, directly or indirectly, amend, modify, or waive, and the Board shall not recommend approval of any proposal to the Company's shareholders having the effect of amending, modifying, or waiving any provision in the Articles of Incorporation or bylaws of the Company in any manner adverse to Purchaser (except, for the avoidance of doubt, as contemplated by Section 4.25).

Section 4.14&nbsp;&nbsp;&nbsp;&nbsp;<u>Avoidance of Control</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;Notwithstanding anything to the contrary in this Agreement, no Purchaser (together with its Affiliates (as such term is used under the BHCA)) shall have the ability to purchase or exercise any voting rights of any class of securities in excess of nine point nine percent (9.9%) of the total outstanding voting securities of the Company. In the event any Purchaser breaches its obligations under this Section 4.14 or believes that it is reasonably likely to breach such an obligation, it shall promptly notify the Company and shall cooperate in good faith with such parties to modify ownership or make other arrangements or take any other action, in each case, as is necessary to cure or avoid such breach.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;Notwithstanding anything to the contrary in this Agreement, neither the Company nor any Subsidiary shall take any action (including, without limitation, any redemption, repurchase, rescission

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or recapitalization of Common Stock, or securities or rights, options or warrants to purchase Common Stock, or securities of any type whatsoever that are, or may become, convertible into or exchangeable into or exercisable for Common Stock in each case, where the Purchasers are not given the right to participate in such redemption, repurchase, rescission, or recapitalization to the extent of such Purchasers' pro rata proportion) that would reasonably be expected to pose a substantial risk that (a) a Purchaser's equity of the Company (together with equity owned by such Purchaser's affiliates (as such term is used under the BHCA) to exceed thirty-three point three percent (33.3%) of the Company's total equity (provided that there is no ownership or control in excess of nine point nine percent (9.9%) of any class of voting securities of the Company by such Purchaser, together with such Purchaser's affiliates) or (b) a Purchaser's ownership of any class of voting securities of the Company (together with the ownership by such Purchaser's affiliates (as such term is used under the BHCA) of voting securities of the Company) to exceed nine point nine percent (9.9%), in each case without the prior written consent of such Purchaser, or to increase to an amount that would constitute "control" under the BHCA, the CIBC Act, any applicable provisions of the Laws of the State of Iowa, or any rules or regulations promulgated thereunder (or any successor provisions) or otherwise cause such Purchaser to "control" the Company under and for purposes of the BHCA, the CIBC Act or any rules or regulations promulgated thereunder (or any successor provisions). Notwithstanding anything to the contrary in this Agreement, no Purchasers (together with its respective Affiliates (as such term is used under the BHCA)) shall have the ability to purchase more than thirty-three point three percent (33.3%) of the Company's total equity or exercise any voting rights of any class of securities in excess of nine point nine percent (9.9%) of the total outstanding voting securities of the Company. In the event either the Company or any Purchaser breaches its obligations under this Section 4.14 or believes that it is reasonably likely to breach such an obligation, it shall promptly notify the other party hereto and shall cooperate in good faith with such parties to modify ownership or, to the extent commercially reasonable, make other arrangements or take any other action, in each case, as is necessary to cure or avoid such breach.

Section 4.15&nbsp;&nbsp;&nbsp;&nbsp;<u>No Change of Control</u>. The Company shall use reasonable best efforts to obtain all necessary irrevocable waivers, adopt any required amendments and make all appropriate determinations so that the issuance of the Shares to the Purchasers will not trigger a "change of control" or other similar provision in any Material Contracts and any employment, "change in control," severance or other employee or director compensation agreements or any benefit plan of the Company or any of its Subsidiaries, which results in payments to the counterparty or the acceleration of vesting of benefits.

Section 4.16&nbsp;&nbsp;&nbsp;&nbsp;<u>Most Favored Nation</u>. Except as set forth in Schedule 4.16, during the period from the date of this Agreement through the Closing Date neither the Company nor any of its Subsidiaries shall enter into any additional, or modify any existing, agreements with any existing or future investors in the Company or any of its Subsidiaries that have the effect of establishing rights or otherwise benefiting such investor in a manner more favorable in any material respect to such investor than the rights and benefits established in favor of any Purchaser by this Agreement, unless, in any such case, such Purchaser has been provided with such rights and benefits, and any such rights and benefits shall automatically be deemed to be incorporated by reference herein, *mutatis mutandi*.

Section 4.17&nbsp;&nbsp;&nbsp;&nbsp;<u>Filings; Other Actions</u>. Each Purchaser, with respect to itself only, on the one hand, and the Company, on the other hand, will reasonably cooperate and consult with the other and use commercially reasonable efforts to provide all necessary and customary information and data, to prepare and file all necessary and customary documentation, to effect all necessary and customary applications, notices, petitions, filings and other documents, to provide evidence of non-control of the Company and the Bank, as requested by the applicable Governmental Entity, including executing and delivery to the applicable Governmental Entities customary passivity commitments, disassociation commitments, and commitments not to act in concert, with respect to the Company or the Bank, and to obtain all necessary and customary permits, consents, orders, approvals, and authorizations of, or any exemption by, all third

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parties and Governmental Entities, in each case, (i) necessary or advisable to consummate the transactions contemplated by this Agreement, and to perform the covenants contemplated by this Agreement, in each case required by it, and (ii) with respect to a Purchaser, to the extent typically provided by such Purchaser to such third parties or Governmental Entities, as applicable, under such Purchaser's policies consistently applied, to the extent such Purchaser has such policies, and subject to such confidentiality requests as such Purchaser may reasonably seek. Each of the parties hereto shall execute and deliver both before and after the Closing such further certificates, agreements, and other documents and take such other actions as the other parties may reasonably request to consummate or implement such transactions or to evidence such events or matters, subject, in each case, to clauses (i) and (ii) of the first sentence of this Section 4.17. Each Purchaser, with respect to itself only, and the Company will have the right to review in advance, and to the extent practicable each will consult with the other, in each case subject to applicable Laws relating to the exchange of information (other than confidential information related to such Purchaser and any of its respective Affiliates), which appears in any filing made with, or written materials submitted to, any third party or any Governmental Entity in connection with the transactions to which it will be party contemplated by this Agreement. In exercising the foregoing right, the parties hereto agree to act reasonably and as promptly as practicable. Each Purchaser, with respect to itself only, on the one hand, and the Company, on the other hand, agree to keep each other reasonably apprised of the status of matters referred to in this Section 4.17. Each Purchaser, with respect to itself only, on the one hand, and the Company, on the other hand, shall promptly furnish each other with copies of written communications received by it or its Affiliates from, or delivered by any of the foregoing to, any Governmental Entity in respect of the transactions contemplated by this Agreement; provided, that the party delivering any such document may redact any confidential information contained therein. Notwithstanding anything in this Section 4.17 or elsewhere in this Agreement to the contrary, no Purchaser shall be required to provide to any Person pursuant to this Agreement any of its, its Affiliates', its investment advisors' or its or their control persons' or equity holders' nonpublic, proprietary, personal, or otherwise confidential information including the identities or financial condition of limited partners, shareholders, or non-managing members of such Purchaser or its Affiliates or their investment advisors. Notwithstanding anything to the contrary in this Section 4.17, no Purchaser shall be required to perform any of the above actions if such performance would constitute or could reasonably result in any restriction or condition that (i) is materially and unreasonably burdensome, or (ii) would reduce the benefits of the transactions contemplated hereby to such Purchaser to such a degree that such Purchaser would not have entered into this Agreement had such condition or restriction been known to it on the date of this Agreement (any such condition or restriction, a "**Burdensome Condition**"); for the avoidance of doubt, any requirement to disclose the identities or financial condition of limited partners, shareholders, or non-managing members of such Purchaser or its Affiliates or its investment advisers shall be deemed a Burdensome Condition unless otherwise determined by such Purchaser in its sole discretion.

Section 4.18&nbsp;&nbsp;&nbsp;&nbsp;<u>Notice of Certain Events</u>. Each party hereto shall promptly notify the other party hereto of (a) any event, condition, fact, circumstance, occurrence, transaction or other item of which such party becomes aware prior to the Closing that would constitute a violation or breach of the Transaction Documents (or a breach of any representation or warranty contained herein or therein) or, if the same were to continue to exist as of the Closing Date, would constitute the non-satisfaction of any of the conditions set forth in Sections 5.1 or 5.2 hereof, and (b) any event, condition, fact, circumstance, occurrence, transaction or other item of which such party becomes aware that would have been required to have been disclosed pursuant to the terms of this Agreement had such event, condition, fact, circumstance, occurrence, transaction or other item existed as of the date hereof to the extent it, were it to continue to exist as of the Closing Date, would constitute the non-satisfaction of any of the conditions set forth in Sections 5.1 or 5.2; provided that delivery of any notice pursuant to this Section 4.18 shall not modify the representations, warranties, covenants, agreements or obligations of the parties (or remedies with respect thereto) or the conditions to the obligations of the parties under this Agreement.

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Section 4.19&nbsp;&nbsp;&nbsp;&nbsp;<u>No Solicitation of Competing Proposal</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;Except as provided in this Section 4.19 or as directed by any Governmental Authority, from and after the date of this Agreement until the earlier of the Closing Date and the date, if any, on which this Agreement is terminated pursuant to Section 6.10, the Company agrees that it shall not, and that it shall direct and use its reasonable best efforts to cause the Company's directors, officers, employees, agents, consultants and advisors not to, directly or indirectly, solicit, initiate, encourage or facilitate any inquiries or proposals from, discuss or negotiate with, or provide any information to, any Person relating to any Acquisition Transaction or a potential Acquisition Transaction. For the avoidance of doubt, nothing in this Section 4.19 shall prohibit the Company from negotiating and entering into Additional Purchase Agreements providing for the issuance of no more than 273,973 shares of Common Stock in the aggregate at a price per share no less than the Purchase Price.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;Notwithstanding the limitations set forth in Section 4.19(a), if after the date of this Agreement and prior to the Closing Date, the Company receives an unsolicited proposal from a third party with respect to an Acquisition Transaction that was not directly or indirectly, after the date hereof, made, encouraged, facilitated, solicited, initiated or assisted by the Company or its directors, officers, employees, agents, consultants and advisors (an "**Unsolicited Company Proposal**") which did not result from or arise in connection with a material breach of Section 4.19(a) and which: (i) constitutes a Superior Proposal (as defined in Section 4.19(f)); or (ii) which the Board determines in good faith, after consultation with the Company's outside legal and financial advisors, could reasonably be expected to result, after the taking of any of the actions referred to in either of clause (x) or (y) below, in a Superior Proposal, the Company may take the following actions after providing written notice to each Purchaser of such determination and the basis therefor: (x) furnish nonpublic information with respect to the Company and the Company Subsidiaries to the third party making such Unsolicited Company Proposal, if, and only if, prior to so furnishing such information, the Company and such third party enter into a confidentiality agreement (a "**Third Party Confidentiality Agreement**") that is no less restrictive to and no more favorable to such third party or parties than the confidentiality agreements between the Company and the Purchasers and (y) engage in discussions or negotiations with the third party with respect to the Unsolicited Company Proposal; provided, however, that the Company has complied with the requirements of Section 4.19(d) with respect to such Unsolicited Company Proposal or such Superior Proposal.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;Notwithstanding the foregoing and the limitations set forth in Section 4.19(a), if, prior to the Closing, the Board determines in good faith, after consultation with the Company's outside legal and financial advisors, that, due to the existence of a Superior Proposal or an Unsolicited Company Proposal which the Board determines in good faith, after consultation with the Company's outside legal and financial advisors, could reasonably be expected to result, after the taking of any of the actions referred to in either of clause (x) or (y) of Section 4.19(b), in a Superior Proposal, the Board may, solely with respect to a Superior Proposal, enter into a binding written agreement with respect to such Superior Proposal and terminate this Agreement (provided that the Company may not terminate this Agreement pursuant to the foregoing, and any purported termination pursuant to the foregoing shall be void and of no force or effect, unless (x) the Board determines in good faith, after consultation with the Company's outside legal and financial advisors, that failure to take such action would be reasonably likely to constitute a breach by the Board of its fiduciary duties under applicable law and (y) in advance of or concurrently with such termination the Company pays or causes to be paid the Termination Fee to each Purchaser in accordance with Section 6.10), but only if the Company shall have first: (i) provided five (5) business days' prior written notice to each Purchaser that it is prepared to enter into a binding written agreement with respect to the Superior Proposal and terminate this Agreement, and specifying the reasons therefor, including the terms and conditions of the Unsolicited Company Proposal or Superior Proposal, as applicable (including the most current version of any proposed agreement(s)), and the identity of the Person making the

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proposal; (ii) offered to provide to each Purchaser all material non-public information delivered or made available to the person making any Unsolicited Company Proposal or Superior Proposal in connection with such Unsolicited Company Proposal or Superior Proposal that was not previously delivered or made available to each Purchaser; (iii) provided to each Purchaser copies of documents relating to the Unsolicited Company Proposal or Superior Proposal provided to the Company by the Person making the proposal (or provided by the Company to such person or their representatives), including the most current version of any proposed agreement or any other letter or other document containing such Person's proposal (and the Company's response(s) thereto) and the terms and conditions thereof; and (iv) during such five (5) business day period, if requested by a Purchaser, engaged in, and caused its financial and legal advisors to engage in, good faith negotiations with such Purchaser to amend this Agreement. The Company acknowledges and agrees that (i) any change to the financial terms or (ii) any material change to any other terms of an Unsolicited Company Proposal or Superior Proposal shall require compliance with the foregoing provisions anew.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;The Company shall notify each Purchaser orally and in writing promptly (but in no event later than one (1) Business Day) after receipt by the Company, the Bank, or any of their respective directors, officers, employees, representatives, agents or advisors of any proposal or offer from any Person other than a Purchaser regarding an Acquisition Transaction or any request for non-public information by any Person other than a Purchaser in connection with an Acquisition Transaction indicating, in connection with such notice, the name of such Person and the material terms and conditions of any proposals or offers (including, if applicable, copies of any written requests, proposals or offers, including proposed agreements) and thereafter shall keep each Purchaser informed, on a current basis, of the status and terms of any such proposals or offers (including any amendments thereto) and the status of any such discussions or negotiations, including any change in the Company's intentions as previously notified.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;Nothing contained in this Agreement shall prevent the Company or its Board from issuing as "stop, look and listen" communication pursuant to Rule 14d-9(f) under the Exchange Act or complying with Rule 14d-9 and Rule 14e-2 under the Exchange Act with respect to an Acquisition Transaction or from making any disclosure to the Company shareholders if the Board (after consultation with outside counsel) concludes that its failure to do so would be inconsistent with its fiduciary duties under applicable Law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;&nbsp;&nbsp;As used in this agreement, "**Superior Proposal**" shall mean a bona fide written Unsolicited Company Proposal (not solicited or initiated in violation of Section 4.19(a)) that relates to a potential Acquisition Transaction (but changing the references to the twenty percent (20%) amounts contained in the definition of Acquisition Transaction to references to fifty percent (50%)) that is determined in good faith by the Board of the Company, after consultation with the Company's legal and financial advisors after taking into account all the terms and conditions of the Unsolicited Company Proposal and this Agreement, is on terms that are more favorable to the shareholders of the Company from a financial point of view than the transactions contemplated by the Transaction Documents (after giving effect to any changes to this Agreement proposed by Purchaser in response to such proposal or otherwise) and is, in the reasonable judgment of the Board, reasonably capable of being completed on its stated terms, taking into account all financial, regulatory, legal and other aspects of such inquiry, proposal or offer and the third party or parties making the inquiry, proposal or offer.

Section 4.20&nbsp;&nbsp;&nbsp;&nbsp;<u>Shareholder Litigation</u>. The Company shall promptly inform the Purchasers of any claim, action, suit, arbitration, mediation, demand, hearing, investigation or proceeding ("**Shareholder Litigation**") against the Company, any of its Subsidiaries or any of the past or present executive officers or directors of the Company or any of its Subsidiaries that is threatened in writing or initiated by or on behalf of any shareholder of the Company in connection with or relating to the

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transactions contemplated hereby or by the Transaction Documents. The Company shall consult with the Purchasers and keep the Purchasers informed of all material filings and developments relating to any such Shareholder Litigation.

Section 4.21&nbsp;&nbsp;&nbsp;&nbsp;<u>Governance Matters</u>. Notwithstanding anything in this Agreement or any other Transaction Document to the contrary, the rights set forth in this Section 4.21 are specific to Castle Creek, or the Purchasers, as applicable, and may not be assigned or transferred without the Company's explicit prior written consent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;Following the Closing and upon the written request of Castle Creek, the Company will promptly cause any individual designated by Castle Creek and approved by the Board (the "**Board Representative**") to be elected or appointed to the Board, subject to satisfaction of all legal and regulatory requirements regarding service and election or appointment as a director of the Company, and the boards of directors of the Bank and any Future Bank (the "**Bank Boards**"), so long as Castle Creek, together with its Affiliates, in the aggregate have a Minimum Ownership Interest. So long as Castle Creek, together with its Affiliates, has a Minimum Ownership Interest, the Company will recommend to its shareholders the election of the Board Representative to the Board at the Company's annual meeting of shareholders. If Castle Creek no longer has a Minimum Ownership Interest, Castle Creek will have no further rights under Sections 4.20(a) through 4.20(b) and, at the written request of the Board, shall cause the Board Representative to resign from the Board and the Bank Boards as promptly as possible thereafter, including by causing such director, upon appointment or election, to deliver a letter of resignation that is effective upon the date Castle Creek ceases to have a Minimum Ownership Interest.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;Subject to applicable Law, the Board Representative shall be one of the Company's nominees to serve on the Board. The Company shall use its commercially reasonable efforts to have the Board Representative elected as a director of the Company by the shareholders of the Company, and the Company shall solicit proxies for the Board Representative to the same extent as it does for any of its other Company nominees to the Board. At Castle Creek's election, the Board Representative shall be appointed to serve on the compensation committee of each of the Board and the Bank Boards. The Company shall ensure that the Board and the Bank Boards shall each have at least four (4) members for so long as Purchaser shall have the right to appoint a Board Representative.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;Subject to Section 4.21(a), upon the death, resignation, retirement, disqualification, or removal from office as a member of the Board or the Bank Boards of the Board Representative, Castle Creek shall have the right to designate the replacement for the Board Representative. The Board and the Bank Boards shall use their reasonable best efforts to take all action required to fill the vacancy resulting therefrom with such person (including such person, subject to applicable Law, being one of the Company's nominees to serve on the Board and the Bank Boards), using reasonable best efforts to have such person elected as director of the Company by the shareholders of the Company and the Company soliciting proxies for such person to the same extent as it does for any of its other nominees to the Board, as the case may be.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;The Company hereby agrees that, from and after the Closing Date, for so long as any Purchaser, together with its Affiliates, in the aggregate have a Minimum Ownership Interest, and do not have a Board Representative currently serving on the Board and the Bank Boards (or have a Board Representative whose appointment is subject to receipt of regulatory approvals), the Company shall invite a person designated by such Purchaser (the "**Observer**") to attend meetings of the Board or the Bank Boards, as applicable, in a nonvoting, nonparticipating observer capacity. The Observer shall not have any right to vote on any matter presented to the Board, the Bank Boards or any committee thereof. The Company shall give the Observer written notice of each meeting of the Board or the Bank Boards at the same time and in the same manner as the members of the Board or the Bank Boards, shall provide the

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Observer with all written materials and other information given to members of the Board or the Bank Boards at the same time such materials and information are given to such members (provided, however, that the Observer shall not be provided any confidential supervisory information (as defined in 12 C.F.R. Part 261), information which is related to a pending or ongoing regulatory exam or which is subject to attorney-client privilege) and shall permit the Observer to attend as an observer at all meetings thereof (provided, however, that the Observer shall not be entitled to attend the portion(s) of any meetings relating to confidential supervisory information, information which is related to a pending or ongoing regulatory exam or which is subject to attorney-client privilege). In the event the Company, the Bank or any Future Bank proposes to take any action by written consent in lieu of a meeting, the Company, the Bank or any Future Bank shall give written notice thereof to the Observer prior to the effective date of such consent describing the nature and substance of such action and including the proposed text of such written consents. If Purchaser no longer has a Minimum Ownership Interest, Purchaser will have no further rights under this Section 4.21(d).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;The Board Representative shall be entitled to compensation and indemnification and insurance coverage in connection with his or her role as a director to the same extent as other directors on the Board or the Bank Boards, as applicable, and shall be entitled to monthly reimbursement for reasonable and documented out-of-pocket expenses incurred in attending meetings of the Board, or any committee thereof in accordance with the policies of the Company, the Bank and any Future Bank, as applicable. The Company, the Bank and any Future Bank shall notify the Board Representative of all regular meetings and special meetings of the Board and the Bank Boards and of all regular and special meetings of any committee of the Board and the Bank Boards. The Company, the Bank and any Future Banks shall provide the Board Representative with copies of all notices, minutes, consents and other material that it provides to all members of the Board and the Bank Boards, respectively, at the same time such materials are provided to the other respective members.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;&nbsp;&nbsp;The Company acknowledges that the Board Representative may have certain rights to indemnification, advancement of expenses and/or insurance provided by Castle Creek and/or its respective Affiliates (collectively, the "**Castle Creek Indemnitors**"). The Company hereby agrees that, with respect to a claim by a Board Representative for indemnification arising out his or her service as a director of the Company, the Bank or any Future Bank, (1) it is the indemnitor of first resort (i.e., its obligations to the Board Representative with respect to indemnification, advancement of expenses and/or insurance (which obligations shall be the same as, but in no event greater than, any such obligations to members of the Board or the Bank Boards, as applicable) are primary and any obligation of the Castle Creek Indemnitors to advance expenses or to provide indemnification for the same expenses or liabilities incurred by the Board Representative are secondary), and (2) the Castle Creek Indemnitors shall have a right of contribution and/or be subrogated to the extent of such advancement or payment to all of the rights of recovery of the Board Representative against the Company.

Section 4.22&nbsp;&nbsp;&nbsp;&nbsp;<u>Corporate Opportunities</u>. Each of the parties hereto acknowledges that the Purchasers and their respective Affiliates and related investment funds may review the business plans and related proprietary information of any enterprise, including enterprises that may have products or services that compete directly or indirectly with those of the Company and its Subsidiaries, and may trade in the securities of such enterprise. None of Purchasers and their respective Affiliates, any of their respective Affiliates or related investment funds shall be precluded or in any way restricted from investing or participating in any particular enterprise, or trading in the securities thereof whether or not such enterprise has products or services that compete with those of the Company and its Subsidiaries. The parties expressly acknowledge and agree that: (a) the Purchasers, the Board Representative, the respective Affiliates of the Purchasers and their respective Affiliates have the right to, and shall have no duty (contractual or otherwise) not to, directly or indirectly, engage in the same or similar business activities or lines of business as the Company and its Subsidiaries; and (b) in the event that any Purchaser, the Board

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Representative, any Affiliate of any Purchaser or any of their respective Affiliates acquires knowledge of a potential transaction or matter that may be a corporate opportunity for the Company or any of its Subsidiaries, the Purchasers, Board Representative, Affiliates of the Purchasers or any of their respective Affiliates shall have no duty (contractual or otherwise) to communicate or present such corporate opportunity to the Company or any of its Subsidiaries, and, notwithstanding any provision of this Agreement to the contrary, shall not be liable to the Company or any of its Subsidiaries or shareholders of the Company for breach of any duty (contractual or otherwise) by reason of the fact that such Purchaser, any Affiliate thereof, any related investment fund thereof or any of their respective Affiliates, directly or indirectly, pursues or acquires such opportunity for itself, directs such opportunity to another person, or does not present such opportunity to the Company.

Section 4.23&nbsp;&nbsp;&nbsp;&nbsp;<u>Preemptive Rights</u>. The rights set forth in this Section 4.23 shall automatically terminate immediately prior to the effectiveness of any registration statement filed by the Company under the Securities Act or the Exchange Act, and are subject to Section 4.23 of the Disclosure Schedules.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;<u>Sale of New Securities</u>. For so long as a Purchaser, together with its Affiliates and, for purposes of this Section 4.23, persons who share a common discretionary investment advisor with Purchaser, satisfies the Minimum Ownership Interest, if at any time after the date hereof the Company or any of its Subsidiaries makes any nonpublic offering or sale of any equity (including Common Stock or restricted stock), or any securities, options or debt that is convertible or exchangeable into equity or that includes an equity component (such as, an "equity kicker") (including any hybrid security) (any such security, a "**New Security**") (other than (i) any Common Stock, or other securities issuable upon the exercise or conversion of any securities of the Company issued or agreed or contemplated (and disclosed to the Purchasers in writing) to be issued as of the date hereof; (ii) pursuant to the granting or exercise of employee stock options, restricted stock or other stock incentives pursuant to Company's stock incentive plans approved by the Board or the issuance of stock pursuant to the Company's employee stock purchase plan approved by the Board or similar plan where stock is being issued or offered to a trust, other entity or otherwise, for the benefit of any employees, officers or directors of the Company, in all cases not to exceed in the aggregate five percent (5%) of the outstanding shares of Common Stock (on a fully-diluted basis) as of the date hereof in accordance with Section 4.24; (iii) issuances of capital stock as full or partial consideration for a merger, acquisition, joint venture, strategic alliance, license agreement or other similar non-financing transaction; (iv) the issuance of Common Stock with an aggregate purchase price not exceeding $5,000,000 of shares of Common Stock at the Purchase Price or at a purchase price per share greater than the Purchase Price, and on terms and conditions not materially more favorable in the aggregate to the purchasers than as provided to the Purchasers under this Agreement; or (v) the issuance of no more than 273,973 shares of Common Stock in the aggregate pursuant to any Additional Purchase Agreements at a price per share no less than the Purchase Price. The amount of New Securities that a Purchaser shall be entitled to purchase in the aggregate shall be determined by multiplying (x) the total number or principal amount of such offered New Securities by (y) a fraction, the numerator of which is the total number of shares of Common Stock then held by such Purchaser (counting for such purposes all shares of Common Stock into or for which any securities owned by such Purchaser are directly or indirectly convertible or exercisable, including the Non-Voting Common Stock), if any, and the denominator of which is the total number of shares of Common Stock then outstanding (counting for such purposes all shares of Common Stock into or for which any outstanding securities are directly or indirectly convertible or exercisable). Notwithstanding anything herein to the contrary, in no event shall any Purchaser have the right to purchase New Securities hereunder to the extent such purchase would result in such Purchaser, together with any other person whose Company securities would be aggregated with such Purchaser's Company securities for purposes of any bank regulation or law, to collectively be deemed to own, control or have the power to vote securities which (assuming, for this purpose only, full conversion and/or exercise of such securities by such Purchaser) would represent more than nine point

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nine percent (9.9%) of the Voting Securities or more than thirty-three point three percent (33.3%) of the Company's total equity outstanding.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;<u>Limitation on Voting Securities</u>. Notwithstanding anything in this Section 4.23 to the contrary, upon the request of a Purchaser that such Purchaser not be issued Voting Securities in whole or in part upon the exercise of its rights to purchase New Securities, the Company shall cooperate with such Purchaser to modify the proposed issuance of New Securities to the Purchaser to provide for the issuance of non-voting securities in lieu of Voting Securities; provided, however, that to the extent, following such reasonable cooperation, such modification would cause any other Purchaser to exceed its respective ownership limitation set forth in the applicable other securities purchase agreement, the Company shall, and shall only be obligated to, issue and sell to such Purchaser such number of Voting Securities and nonvoting securities as will not cause any other Purchaser to exceed its respective ownership limitation set forth in the applicable other securities purchase agreement and that the Purchaser has indicated it is willing to hold following consummation of such Offering (as defined in Section 4.23(c) below), and any remaining securities may be offered, sold or otherwise transferred to any other person or persons in accordance with Section 4.23(e).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;<u>Notice</u>. In the event the Company proposes to offer or sell New Securities (the "**Offering**"), it shall give each Purchaser written notice of its intention, describing the price (or range of prices), anticipated amount of New Securities, timing, and other terms upon which the Company proposes to offer the same. Each Purchaser shall have ten (10) Business Days from the date of receipt of such a notice (the "**Response Period**") to notify the Company in writing that it intends to exercise its rights provided in this Section 4.23 and as to the amount of New Securities such Purchaser desires to purchase, up to the maximum amount calculated pursuant to Section 4.23. Such notice shall constitute a nonbinding indication of interest of such Purchaser to purchase the amount of New Securities so specified at the price and other terms set forth in the Company's notice to it. The failure of any Purchaser to respond within the Response Period shall be deemed to be a waiver of such Purchaser's rights under this Section 4.23 only with respect to the Offering described in the applicable notice.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;<u>Purchase Mechanism</u>. If the Purchaser exercises its rights provided in this Section 4.23, it shall enter into a definitive purchase or subscription agreement in substantially the form made available to other investors in such Offering, and consummate the purchase of the New Securities in connection with the closing of the Offering with respect to which such right has been exercised, in each case within thirty (30) calendar days after the giving of notice of such exercise, which period of time shall be extended for a maximum of one ninety (90) days in order to comply with applicable Laws and regulations (including receipt of any applicable regulatory or shareholder approvals). Notwithstanding anything to the contrary herein, the closing of the purchase of the New Securities by the Purchasers will occur no earlier than the closing of the Offering triggering the right being exercised by such Purchasers. The Company and each of the Purchasers agree to use their commercially reasonable efforts to secure any regulatory or shareholder approvals or other consents, and to comply with any law or regulation necessary in connection with the offer, sale and purchase of, such New Securities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;<u>Failure of Purchase</u>. In the event any Purchaser fails to exercise its rights provided in this Section 4.23 within the Response Period or, if so exercised, such Purchaser is unable to consummate such purchase within the time period specified in Section 4.23(d) above because of its failure to obtain any required regulatory or shareholder consent or approval, the Company shall thereafter be entitled (during the period of sixty (60) days following the conclusion of the applicable period) to sell or enter into an agreement (pursuant to which the sale of the New Securities covered thereby shall be consummated, if at all, within ninety (90) days from the date of such agreement) to sell the New Securities not elected to be purchased pursuant to this Section 4.23 by such Purchaser or which such Purchaser is unable to purchase because of such failure to obtain any such consent or approval, at a price and upon terms no more

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favorable in the aggregate to the purchasers of such New Securities than were specified in the Company's notice to such Purchaser. Notwithstanding the foregoing, if such sale is subject to the receipt of any regulatory or shareholder approval or consent or the expiration of any waiting period, the time period during which such sale may be consummated shall be extended until the expiration of five (5) Business Days after all such approvals or consents have been obtained or waiting periods expired, but in no event shall such time period exceed either one hundred and eighty (180) days from the date of the applicable agreement with respect to such sale. In the event the Company has not sold the New Securities or entered into an agreement to sell the New Securities within such 60-day period (or sold and issued New Securities in accordance with the foregoing within ninety (90) days from the date of such agreement (as such period may be extended in the manner described above for a period not to exceed one hundred and eighty (180) days from the date of such agreement)), the Company shall not thereafter offer, issue or sell such New Securities without first offering such New Securities to the Purchaser in the manner provided above.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;&nbsp;&nbsp;<u>Non-Cash Consideration</u>. In the case of the offering of securities for consideration in whole or in part other than cash, including securities acquired in exchange therefor (other than securities by their terms so exchangeable), the consideration other than cash shall be deemed to be the fair value thereof as determined by the Board and the Purchasers.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;&nbsp;&nbsp;&nbsp;<u>Cooperation</u>. The Company and each Purchaser shall cooperate in good faith to facilitate the exercise of such Purchaser's rights under this Section 4.23, including to secure any required approvals or consents.

Section 4.24&nbsp;&nbsp;&nbsp;&nbsp;<u>Equity Incentive Award Program</u>. The Company shall adopt an "Equity Incentive Award Program Restricted Share Award Agreement" in a form reasonably agreeable to the Company and Castle Creek, and the Company shall consult in good faith with Castle Creek regarding the list of recipients, award amounts (not to exceed five percent (5%) of the outstanding Stock in the aggregate, determined on a fully-diluted basis, after giving effect to the transactions contemplated hereby), and ROA targets.

Section 4.25&nbsp;&nbsp;&nbsp;&nbsp;<u>Right of First Refusal</u>. If the Company elects to exercise any of its rights under Section 6.13 of the Bylaws of the Company, as amended pursuant to Section 5.1(n) below, the Company hereby agrees to pay the consideration (or the cash value thereof, as reasonably determined by the Company) proposed to be paid in such transaction, instead of the price determined under Sections 6.14 of the Bylaws of the Company. For the avoidance of doubt, the Company and the Purchasers acknowledge and agree that Section 6.11 of the Bylaws of the Company will require the transferring shareholder to notify the Company of the proposed sale after a price has been agreed upon between the transferring shareholder and proposed transferee, but before such sale is consummated. Notwithstanding the foregoing, the Company shall not exercise its rights under Section 6.13 of the Bylaws of the Company (including as amended pursuant to Section 5.1(n) below) solely with respect to any transfer by a Purchaser to a nominee or another Affiliated fund of such Purchaser (but excluding, for the avoidance of doubt, any limited partner or other investor in Purchaser).

**ARTICLE V**

**CONDITIONS PRECEDENT TO CLOSING**

Section 5.1&nbsp;&nbsp;&nbsp;&nbsp;<u>Conditions Precedent to the Obligations of the Purchasers to Purchase Shares</u>. The obligation of each Purchaser to acquire Shares at the Closing is subject to the fulfillment, on or prior to the Closing Date, of each of the following conditions, any of which may be waived by such Purchaser (as to itself only):

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;<u>Representations and Warranties</u>. The representations and warranties of the Company contained herein shall be true and correct in all material respects (except to the extent such representations and warranties are qualified by materiality, in which case they shall be true and correct in all respects) as of the date when made and as of each Closing Date, as though made on and as of such date, except for such representations and warranties that speak as of a specific date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;<u>Performance</u>. The Company shall have performed, satisfied and complied in all material respects with all covenants and agreements required by this Agreement to be performed, satisfied or complied with by it at or prior to the Closing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;<u>No Injunction</u>. No statute, rule, regulation, executive order, decree, ruling, or injunction shall have been enacted, entered, promulgated, or endorsed by any court or Governmental Entity of competent jurisdiction, nor has there been any regulatory communication, that prohibits the consummation of any of the transactions contemplated by the Transaction Documents or restricts any Purchaser or any of a Purchaser's Affiliates from owning or voting any securities of the Company in accordance with the terms thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;<u>Consents</u>. The Company shall have obtained in a timely fashion any and all consents, permits, approvals, non-objections, registrations, and waivers necessary for it to issue and sell the Shares (including all Required Approvals), all of which shall be and remain so long as necessary in full force and effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;<u>Company Deliverables</u>. The Company shall have delivered the Company Deliverables in accordance with Section 2.2(a).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;&nbsp;&nbsp;<u>Minimum Gross Proceeds</u>. The Company shall receive at the Closing aggregate gross proceeds from the sale of Shares of at least the aggregate dollar amount set forth below the Purchasers' names on the signature pages of this Agreement, and shall simultaneously issue and deliver at the Closing to the Purchasers hereunder an aggregate number of Shares equal to such aggregate gross proceeds divided by the Purchase Price.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;&nbsp;&nbsp;&nbsp;<u>Ownership Limitation</u>. The purchase of Shares by such Purchaser shall not (i) cause such Purchaser or any of its Affiliates to violate any banking regulation, (ii) require such Purchaser or any of its affiliates to file a prior notice under the CIBC Act, or otherwise seek prior approval or non-objection of any banking regulator, (iii) require such Purchaser or any of its Affiliates to become a bank holding company or otherwise serve as a source of strength for the Company or any Bank or (iv) cause such Purchaser, together with any other person whose Company securities would be aggregated with such Purchaser's Company securities for purposes of any banking regulation or Law, to collectively be deemed to own, control or have the power to vote securities which (assuming, for this purpose only, full conversion and/or exercise of such securities by the Purchaser and such other Persons) would represent more than 9.9% of any class of voting securities of the Company outstanding at such time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)&nbsp;&nbsp;&nbsp;&nbsp;<u>Regulatory Capital Treatment</u>. The Common Shares and Non-Voting Common Stock shall qualify as "Common Equity Tier 1 capital" under 12 C.F.R. Section 217.20(b).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;<u>Non-Control Determination</u>. If the Purchased Shares to be acquired by Castle Creek exceed five percent (5.0%) of the outstanding Common Stock, Castle Creek shall have received, in its sole discretion, satisfactory feedback from the Federal Reserve and the IDOB that it will not have "control" of the Company or the Bank for purposes of the BHCA and that no notice is required under the CIBC Act.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j)&nbsp;&nbsp;&nbsp;&nbsp;<u>Burdensome Condition</u>. Since the date hereof, there shall not be imposed any Burdensome Condition.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k)&nbsp;&nbsp;&nbsp;&nbsp;<u>Material Adverse Effect</u>. No Material Adverse Effect shall have occurred since the date of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l)&nbsp;&nbsp;&nbsp;&nbsp;<u>No Change in Control</u>. The Company shall not have agreed to enter into or entered into (A) any agreement or transaction in order to raise capital, or (B) any transaction that resulted in, or would result in if consummated, a Change in Control of the Company, in each case, other than in connection with the transactions contemplated by the Transaction Documents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m)&nbsp;&nbsp;&nbsp;&nbsp;<u>Non-Performing Assets</u>. As of the end of the month immediately prior to the Closing, total nonperforming assets as a percentage of total assets shall not be more than two and one-half percent (2.5%).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n)&nbsp;&nbsp;&nbsp;&nbsp;<u>Amendment of the Bylaws</u>. The Bylaws of the Company shall have been amended as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;Section 6.14 of the Bylaws of the Company shall have been deleted in its entirety and replaced with the following:

"Section 6.14. <u>Purchase Price</u>. The term "purchase price" as used in these Bylaws shall mean the price per share offered to the offeror by the proposed transferee."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp;Section 6.15 of the Bylaws shall have been deleted.

Section 5.2&nbsp;&nbsp;&nbsp;&nbsp;<u>Conditions Precedent to the Obligations of the Company to Sell Shares</u>. The Company's obligation to sell and issue the Shares to each Purchaser at the Closing is subject to the fulfillment on or prior to the Closing Date of the following conditions, any of which may be waived by the Company:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;<u>Representations and Warranties</u>. The representations and warranties made by such Purchaser in Section 3.2 hereof shall be true and correct in all material respects as of the Closing Date, except for such representations and warranties that speak as of a specific date (which representations and warranties are so true and correct as of such date).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;<u>Performance</u>. Such Purchaser shall have performed, satisfied and complied in all material respects with all covenants, agreements and conditions required by the Transaction Documents to be performed, satisfied or complied with by such Purchaser at or prior to the Closing Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;<u>No Injunction</u>. No statute, rule, regulation, executive order, decree, ruling or injunction shall have been enacted, entered, promulgated or endorsed by any court or Governmental Entity of competent jurisdiction that prohibits the consummation of any of the transactions contemplated by the Transaction Documents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;<u>Purchasers Deliverables</u>. Such Purchaser shall have delivered its Purchaser Deliverables in accordance with Section 2.2(b).

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**ARTICLE VI**

**MISCELLANEOUS**

Section 6.1&nbsp;&nbsp;&nbsp;&nbsp;<u>Fees and Expenses</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;The Company shall reimburse Castle Creek for fifty percent (50%) of all reasonable documented and out-of-pocket fees and expenses incurred by Castle Creek in connection with due diligence efforts, the negotiation and preparation of the Transaction Documents and undertaking of the transactions contemplated by the Transaction Documents (including the preparation and review of definitive documentation and regulatory filings, travel expenses and other disbursements). In addition, the Company and Castle Creek shall each pay fifty percent (50%) of the cost (excluding travel and accommodation expenses of managing principals and senior advisors of Gateway Asset Management Company, LLC, which shall be paid by Castle Creek) of (i) the independent loan review obtained by the Company from Gateway Asset Management Company, LLC at Castle Creek's request, with member(s) of Castle Creek onsite during the review and (ii) the independent asset and liability review obtained by the Company from Performance Trust Capital Partners at Castle Creek's request. Notwithstanding the foregoing, (i) the maximum aggregate amount that the Company shall be obligated to pay pursuant to this Section 6.1(a), together with any amounts paid or reimbursed by the Company pursuant to the Term Sheet and any amounts paid directly by the Company in connection with the engagement of Gateway Asset Management Company, LLC and Performance Trust Capital Partners, shall be $125,000 and Castle Creek shall pay, or reimburse the Company, as applicable, for all such amounts in excess thereof, and (ii) the Company shall not reimburse Castle Creek for expenses and shall have no obligation to Castle Creek pursuant to this Section 6.1 in the event this Agreement is terminated by the Company pursuant to Section 6.10(a)(v) or by Castle Creek pursuant to Section 6.10(a)(viii), or by any party pursuant to Section 6.10(a)(ii) if Castle Creek shall have failed to notify the Company in writing at least five (5) Business Days prior to the Outside Date that the condition set forth in Section 5.1(i) has been satisfied or waived. For the avoidance of doubt, if Castle Creek notifies the Company in writing at least five (5) Business Days prior to the Outside Date that the condition set forth in Section 5.1(i) has been satisfied or waived, the Company's and Castle Creek's obligations under this Section 6.1 shall continue in full force and effect (unless this Agreement has otherwise been terminated pursuant to Section 6.10(a)(v) or Section 6.10(a)(viii) as described in the preceding sentence).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;Except as set forth in Section 6.1(a) and elsewhere in the Transaction Documents, the parties hereto shall be responsible for the payment of all expenses incurred by them in connection with the preparation and negotiation of the Transaction Documents and the consummation of the transactions contemplated hereby. The Company shall pay all Transfer Agent fees, stamp taxes and other taxes and duties levied in connection with the Company's sale and issuance of the Shares to the Purchasers.

Section 6.2&nbsp;&nbsp;&nbsp;&nbsp;<u>Entire Agreement</u>. The Transaction Documents, together with the exhibits and schedules thereto, contain the entire understanding of the parties with respect to the subject matter hereof and supersede all prior agreements, understandings, discussions and representations, oral or written, with respect to such matters, which the parties acknowledge have been merged into such documents, exhibits and schedules. At or after the Closing, and without further consideration, the Company and the Purchasers will execute and deliver to the other parties such further documents as may be reasonably requested in order to give practical effect to the intention of the parties under the Transaction Documents.

Section 6.3&nbsp;&nbsp;&nbsp;&nbsp;<u>Notices</u>. Any and all notices or other communications or deliveries required or permitted to be provided hereunder shall be in writing and shall be deemed given and effective on the earliest of (a) the date of transmission, if such notice or communication is delivered via facsimile or e-mail (provided the sender receives a machine-generated confirmation of successful facsimile transmission or e-mail notification or confirmation of receipt of an e-mail transmission) at the facsimile

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number or e-mail address specified in this Section 6.3 prior to 5:00 p.m., Eastern time, on a Trading Day, (b) the next Trading Day after the date of transmission, if such notice or communication is delivered via facsimile or e-mail at the facsimile number or e-mail address specified in this Section 6.3 on a day that is not a Trading Day or later than 5:00 p.m., Eastern time, on any Trading Day, (c) if sent by U.S. nationally recognized overnight courier service with next day delivery specified (receipt requested) the Trading Day following delivery to such courier service, or (d) upon actual receipt by the party to whom such notice is required to be given. The address for such notices and communications shall be as follows:

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| | | |
|:---|:---|:---|
| If to the Company: | Lincoln Bancorp <br>3254 Kimball Avenue<br>Waterloo, IA 50702 <br>Attention: Emily Girsch <br>Chief Financial Officer <br>Email: EmilyG@mylsb.com <br>Facsimile: (319) 788-6697 | Lincoln Bancorp <br>3254 Kimball Avenue<br>Waterloo, IA 50702 <br>Attention: Emily Girsch <br>Chief Financial Officer <br>Email: EmilyG@mylsb.com <br>Facsimile: (319) 788-6697 |
| With a copy to: | Barack Ferrazzano Kirschbaum & Nagelberg LLP <br>200 West Madison Street, Suite 3900<br>Chicago, IL 60606 | Barack Ferrazzano Kirschbaum & Nagelberg LLP <br>200 West Madison Street, Suite 3900<br>Chicago, IL 60606 |
|  | Attention: | Robert M. Fleetwood<br>Bill Fay |
|  | Email: | robert.fleetwood@bfkn.com<br>bill.fay@bfkn.com |
|  | Facsimile: | (312) 984-3150 |
| If to a Purchaser: | To the address set forth under such Purchaser's name on the signature page hereof; | To the address set forth under such Purchaser's name on the signature page hereof; |

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or such other address as may be designated in writing hereafter, in the same manner, by such Person.

Section 6.4&nbsp;&nbsp;&nbsp;&nbsp;<u>Amendments; Waivers; No Additional Consideration</u>. No amendment or waiver of any provision of this Agreement will be effective with respect to any party unless made in writing and signed by a duly authorized representative of such party. No waiver of any default with respect to any provision, condition, or requirement of this Agreement shall be deemed to be a continuing waiver in the future or a waiver of any subsequent default or a waiver of any other provision, condition, or requirement hereof, nor shall any delay or omission of either party to exercise any right hereunder in any manner impair the exercise of any such right.

Section 6.5&nbsp;&nbsp;&nbsp;&nbsp;<u>Construction</u>. The headings herein are for convenience only, do not constitute a part of this Agreement and shall not be deemed to limit or affect any of the provisions hereof. The language used in this Agreement will be deemed to be the language chosen by the parties to express their mutual intent, and no rules of strict construction will be applied against any party. This Agreement shall be construed as if drafted jointly by the parties, and no presumption or burden of proof shall arise favoring or disfavoring any party by virtue of the authorship of any provisions of this Agreement or any of the Transaction Documents.

Section 6.6&nbsp;&nbsp;&nbsp;&nbsp;<u>Successors and Assigns</u>. The provisions of this Agreement shall inure to the benefit of and be binding upon the parties and their successors and permitted assigns. This Agreement, or any rights or obligations hereunder, may not be assigned by the Company without the prior written consent of the Purchasers. Except as otherwise set forth herein, any Purchaser may assign its rights and obligations hereunder in whole or in part only to an Affiliate of such Purchaser and/or to any Person to

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whom such Purchaser assigns or transfers any Shares in compliance with the Transaction Documents and applicable Law, provided such transferee shall agree in writing to be bound, with respect to the transferred Shares, by the terms and conditions of this Agreement that apply to the transferring Purchaser.

Section 6.7&nbsp;&nbsp;&nbsp;&nbsp;<u>No Third-Party Beneficiaries</u>. This Agreement is intended for the benefit of the parties hereto and their respective successors and permitted assigns and is not for the benefit of, nor may any provision hereof be enforced by, any other Person, other than, solely with respect to the provisions of Section 4.8, the Purchaser Parties.

Section 6.8&nbsp;&nbsp;&nbsp;&nbsp;<u>Governing Law</u>. All questions concerning the construction, validity, enforcement and interpretation of this Agreement shall be governed by and construed in accordance with the internal Laws of the State of Delaware applicable to contracts made and to be performed entirely within such State. Each party agrees that all Proceedings concerning the interpretation, enforcement and defense of the transactions contemplated by this Agreement and any other Transaction Documents (whether brought against a party hereto or its respective Affiliates, employees or agents) exclusive basis in the state or federal courts located in the State of Delaware (the "**Delaware Courts**"). Each party hereto hereby irrevocably submits to the non-exclusive jurisdiction of the Delaware Courts for the adjudication of any dispute hereunder or in connection herewith or with any transaction contemplated hereby or discussed herein (including with respect to the enforcement of any of the Transaction Documents), and hereby irrevocably waives, and agrees not to assert in any Proceeding, any claim that it is not personally subject to the jurisdiction of any such Delaware Court, or that such Proceeding has been commenced in an improper or inconvenient forum. Each party hereto hereby irrevocably waives personal service of process and consents to process being served in any such Proceeding by mailing a copy thereof via registered or certified mail or overnight delivery (with evidence of delivery) to such party at the address in effect for notices to it under this Agreement and agrees that such service shall constitute good and sufficient service of process and notice thereof. Nothing contained herein shall be deemed to limit in any way any right to serve process in any manner permitted by Law. **EACH PARTY HERETO HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY.**

Section 6.9&nbsp;&nbsp;&nbsp;&nbsp;<u>Survival</u>. The representations, warranties, agreements, and covenants contained herein shall survive the Closing and the delivery of the Shares as follows: (i) the representations and warranties of the Company set forth in Sections 3.1(a), 3.1(b), 3.1(c), 3.1(f), 3.1(g) and 3.1(u) shall survive indefinitely, (ii) the representations and warranties of the Company set forth in Section 3.1(i) shall survive for the applicable statute of limitations, (iii) all other representations and warranties of the Company set forth in Section 3.1 shall survive for a period of 12 months following the Closing and the delivery of the Shares, and (iv) all representations and warranties of the Purchasers set forth in Section 3.2 shall terminate six months following the Closing and the delivery of the Shares.

Section 6.10&nbsp;&nbsp;&nbsp;&nbsp;<u>Termination</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;This Agreement may be terminated and the sale and purchase of the Shares abandoned at any time prior to the Closing:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;by mutual written agreement of the Company and any Purchaser (with respect to itself only);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp;by the Company or any Purchaser (with respect to itself only) upon written notice to the other parties, in the event that the Closing has not been consummated on or prior to 5:00 p.m.,

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Central Time, on the Outside Date; <u>provided</u>, <u>that</u>, that the right to terminate this Agreement pursuant to this Section 6.10(a)(ii) shall not be available to any party whose failure to fulfill any obligation under this Agreement shall have been the cause of, or shall have resulted in, the failure of the Closing to occur on or prior to such date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;&nbsp;&nbsp;&nbsp;by the Company or any Purchaser, upon written notice to the other parties, in the event that any Governmental Entity shall have issued any order, decree or injunction or taken any other action restraining, enjoining or prohibiting any of the transactions contemplated by this Agreement, and such order, decree, injunction or other action shall have become final and nonappealable;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv)&nbsp;&nbsp;&nbsp;&nbsp;by any Purchaser (with respect to itself only), upon written notice to the Company, if there has been a breach of any representation, warranty, covenant or agreement made by the Company in this Agreement, or any such representation or warranty shall have become untrue after the date of this Agreement, in each case such that a closing condition in Section 5.1(a) or Section 5.1(b) would not be satisfied;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v)&nbsp;&nbsp;&nbsp;&nbsp;by the Company (with respect to a Purchaser), upon written notice to such Purchaser, if there has been a breach of any representation, warranty, covenant or agreement made by such Purchaser in this Agreement, or any such representation or warranty shall have become untrue after the date of this Agreement, in each case such that a closing condition in Section 5.2(a) or Section 5.2(b) would not be satisfied;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi)&nbsp;&nbsp;&nbsp;&nbsp;by the Company or any Purchaser, upon written notice to the other parties, if the Company has entered into a binding written agreement with respect to a Superior Proposal in compliance with Section 4.19 and has paid or caused to be paid the Termination Fee (as defined in Section 6.16(c)) to the Purchasers in compliance with Section 6.10(c);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii)&nbsp;&nbsp;&nbsp;&nbsp;prior to the Closing, by any Purchaser, upon written notice to the Company, if the Company shall have materially breached Section 4.19; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii)&nbsp;&nbsp;&nbsp;&nbsp;by any Purchaser, upon written notice to the Company, if such Purchaser or any of its Affiliates receives written notice from or is otherwise advised by the Federal Reserve or the IDOB that the Federal Reserve or the IDOB, as applicable, will not grant (or intends to rescind if previously granted) any of the confirmations or determinations referred to in Section 5.1(i).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;In the event of a termination pursuant to this Section 6.10, the Company shall promptly notify all non-terminating Purchasers.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;<u>Termination Fee and Redemption</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;If either the Company or any Purchaser terminates this Agreement pursuant to Section 6.10(a)(vi) or any Purchaser terminates this Agreement pursuant to Section 6.10(a)(vii), the Company shall pay or cause to be paid to each Purchaser by wire transfer of immediately available funds to an account designated by such Purchaser in writing to the Company a sum equal to five percent (5%) of such Purchaser's Subscription Amount (the "**Termination Fee**"). The amount of the Termination Fee shall be in addition to any amount payable by the Company to Purchaser pursuant to Section 6.1. If the Company terminates this Agreement pursuant to Section 6.10(a)(vi), the Termination Fee shall be paid in same-day funds prior to or simultaneously with the termination of this Agreement. If any Purchaser terminates this Agreement pursuant to Section 6.10(a)(vii), the Termination Fee shall be paid by the Company within one Business Day of the termination of this Agreement. If any Purchaser terminates this Agreement pursuant to Section 6.10(a)(ii) and the Company (i) has engaged in communications with

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regard to an Unsolicited Company Proposal that was received after the date hereof and no later than five (5) Business Days prior to the Outside Date pursuant to Section 4.19(b) and has not notified Purchasers in writing of the Company's rejection of such Unsolicited Company Proposal as of the date of such termination, the Company shall pay or cause to be paid to Purchasers by wire transfer of immediately available funds to an account designated by Purchasers in writing to the Company the Termination Fee within one Business Day of the termination of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp;The parties acknowledge that the agreements contained in this Section 6.10(c) are an integral part of the transactions contemplated by this Agreement, and that without these agreements, they would not enter into this Agreement; accordingly, if the Company fails to pay or cause to be paid promptly any fee payable by it pursuant to this Section 6.10(c), then the Company shall pay or cause to be paid to Purchasers their respective costs and expenses (including attorneys' fees) in connection with collecting such fee, together with interest on the amount of the fee at the prime rate of Citibank, N.A. from the date such payment was due under this Agreement until the date of payment. The parties also acknowledge that in no event shall any Purchaser be entitled to receive more than one Termination Fee, and that any Termination Fee paid or payable pursuant to this Section 6.10(c) is not a penalty, but rather is liquidated damages in a reasonable amount that will compensate Purchasers in the circumstances in which such amount is payable, and, if payable, the receipt of the Termination Fee shall constitute Purchasers' sole and exclusive remedy.

Section 6.11&nbsp;&nbsp;&nbsp;&nbsp;<u>Effects of Termination</u>. In the event of any termination of this Agreement as provided in Section 6.10, this Agreement (other than Section 4.8 and this Article VI, which shall remain in full force and effect) shall forthwith become wholly void and of no further force and effect; provided, that nothing herein shall be deemed to release any party from any liability for any breach by such party of the terms and provisions of this Agreement.

Section 6.12&nbsp;&nbsp;&nbsp;&nbsp;<u>Execution</u>. This Agreement may be executed in two or more counterparts, all of which when taken together shall be considered one and the same agreement and shall become effective when counterparts have been signed by each party and delivered to the other party, it being understood that the parties need not sign the same counterpart. In the event that any signature is delivered by facsimile transmission, or by e-mail delivery of a ".pdf" format data file, such signature shall create a valid and binding obligation of the party executing (or on whose behalf such signature is executed) with the same force and effect as if such facsimile signature page were an original thereof.

Section 6.13&nbsp;&nbsp;&nbsp;&nbsp;<u>Severability</u>. If any provision of this Agreement is held to be invalid or unenforceable in any respect, the validity and enforceability of the remaining terms and provisions of this Agreement shall not in any way be affected or impaired thereby and the parties will attempt to agree upon a valid and enforceable provision that is a reasonable substitute therefor, and upon so agreeing, shall incorporate such substitute provision in this Agreement.

Section 6.14&nbsp;&nbsp;&nbsp;&nbsp;<u>Replacement of Shares</u>. If any certificate or instrument evidencing any Shares is mutilated, lost, stolen or destroyed, the Company shall issue or cause to be issued in exchange and substitution for and upon cancellation thereof, or in lieu of and substitution therefor, a new certificate or instrument, but only upon receipt of evidence reasonably satisfactory to the Company and the Transfer Agent of such loss, theft or destruction and the execution by the holder thereof of a customary lost certificate affidavit of that fact and an agreement to indemnify and hold harmless the Company and the Transfer Agent for any losses in connection therewith or, if required by the Transfer Agent, a bond in such form and amount as is required by the Transfer Agent. The applicants for a new certificate or instrument under such circumstances shall also pay any reasonable third-party costs associated with the issuance of such replacement Shares. If a replacement certificate or instrument evidencing any Shares is

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requested due to a mutilation thereof, the Company may require delivery of such mutilated certificate or instrument as a condition precedent to any issuance of a replacement.

Section 6.15&nbsp;&nbsp;&nbsp;&nbsp;<u>Remedies</u>. In addition to being entitled to exercise all rights provided herein or granted by Law, but subject to the limitations set forth herein, each of the Purchasers and the Company shall be entitled to specific performance under the Transaction Documents. The parties agree that monetary damages may not be adequate compensation for any loss incurred by reason of any breach of obligations described in the foregoing sentence and hereby agree to waive in any action for specific performance of any such obligation (other than in connection with any action for a temporary restraining order) the defense that a remedy at law would be adequate.

Section 6.16&nbsp;&nbsp;&nbsp;&nbsp;<u>Independent Nature of Purchasers' Obligations and Rights</u>. The obligations of each Purchaser under any Transaction Document are several and not joint with the obligations of any other Purchaser, and no Purchaser shall be responsible in any way for the performance of the obligations of any other Purchaser under any Transaction Document. The decision of each Purchaser to purchase Shares pursuant to the Transaction Documents has been made by such Purchaser independently of any other Purchaser and independently of any information, materials, statements or opinions as to the business, affairs, operations, assets, properties, liabilities, results of operations, condition (financial or otherwise) or prospects of the Company or any Subsidiary which may have been made or given by any other Purchaser or by any agent or employee of any other Purchaser, and no Purchaser and none of its agents or employees shall have any liability to any other Purchaser (or any other Person) relating to or arising from any such information, materials, statements or opinions. Nothing contained herein or in any other Transaction Document, and no action taken by any Purchaser pursuant hereto or thereto, shall be deemed to constitute the Purchasers as a partnership, an association, a joint venture or any other kind of entity, or create a presumption that the Purchasers are in any way acting in concert or as a group with respect to such obligations or the transactions contemplated by the Transaction Documents. Each Purchaser acknowledges that no other Purchaser has acted as agent for such Purchaser in connection with making its investment hereunder and that no Purchaser will be acting as agent of such Purchaser in connection with monitoring its investment in the Shares or enforcing its rights under the Transaction Documents. Each Purchaser shall be entitled to independently protect and enforce its rights, including without limitation the rights arising out of this Agreement or out of the other Transaction Documents, and it shall not be necessary for any other Purchaser to be joined as an additional party in any Proceeding for such purpose. It is expressly understood and agreed that each provision contained in this Agreement is between the Company and a Purchaser, solely, and not between the Company and the Purchasers collectively and not between and among the Purchasers.

Section 6.17&nbsp;&nbsp;&nbsp;&nbsp;<u>Rescission and Withdrawal Right</u>. Notwithstanding anything to the contrary contained in (and without limiting any similar provisions of) the Transaction Documents, whenever any party exercises a right, election, demand or option under a Transaction Document and the applicable counterparty does not timely perform its related obligations within the periods therein provided, then such party may rescind or withdraw, in its sole discretion from time to time upon written notice to the counterparty, any relevant notice, demand or election in whole or in part without prejudice to such party's future actions and rights.

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

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IN WITNESS WHEREOF, the parties hereto have caused this Securities Purchase Agreement to be duly executed by their respective authorized signatories as of the date first indicated above.

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| | |
|:---|:---|
| LINCOLN BANCORP | LINCOLN BANCORP |
| By: /s/ Erik Skovgard | By: /s/ Erik Skovgard |
| Name: | Erik Skovgard |
| Title: | Chief Executive Officer |

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[Signature Page to Stock Purchase Agreement]

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| | | |
|:---|:---|:---|
| NAME OF PURCHASER: | NAME OF PURCHASER: | NAME OF PURCHASER: |
| CASTLE CREEK CAPITAL PARTNERS VII, LP | CASTLE CREEK CAPITAL PARTNERS VII, LP | CASTLE CREEK CAPITAL PARTNERS VII, LP |
| By: | /s/ Tony Scavuzzo | /s/ Tony Scavuzzo |
| Name: | Name: | Tony Scavuzzo |
| Title: | Title: | Principal |
| Aggregate Purchase Price<br>(Subscription Amount): $<u>&nbsp;&nbsp;&nbsp;&nbsp;9,999,996.25 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>  | Aggregate Purchase Price<br>(Subscription Amount): $<u>&nbsp;&nbsp;&nbsp;&nbsp;9,999,996.25 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>  | Aggregate Purchase Price<br>(Subscription Amount): $<u>&nbsp;&nbsp;&nbsp;&nbsp;9,999,996.25 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>  |
| Aggregate Number of Shares of Common Stock to <br>be Acquired at Closing:<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 547,945&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u> | Aggregate Number of Shares of Common Stock to <br>be Acquired at Closing:<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 547,945&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u> | Aggregate Number of Shares of Common Stock to <br>be Acquired at Closing:<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 547,945&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u> |
| Tax ID No.:<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u> | Tax ID No.:<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u> | Tax ID No.:<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u> |
| Address for Notice: | Address for Notice: | Address for Notice: |
| Telephone No:<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>  | Telephone No:<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>  | Telephone No:<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>  |
| Facsimile No:<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>  | Facsimile No:<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>  | Facsimile No:<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>  |
| E-mail Address:<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>  | E-mail Address:<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>  | E-mail Address:<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>  |
| Attention:<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>  | Attention:<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>  | Attention:<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>  |

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[Signature Page to Stock Purchase Agreement]

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**EXHIBITS**

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| | |
|:---|:---|
| Exhibit A: | Form of Registration Rights Agreement |
| Exhibit B: | Accredited Investor Questionnaire |
| Exhibit C: | Form of Opinion of Company Counsel |
| Exhibit D: | Form of Secretary's Certificate |
| Exhibit E: | Form of Officer's Certificate |
| Exhibit F: | Form of VCOC Letter Agreement |

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**EXHIBIT A**

**FORM OF REGISTRATION RIGHTS AGREEMENT**

*See attached*

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**LINCOLN BANCORP**

**REGISTRATION RIGHTS AGREEMENT**

This Registration Rights Agreement (this "Agreement") is made and entered into as of [●], 2018, by and among Lincoln Bancorp, an Iowa corporation (the "<u>Company</u>"), and the purchaser(s) signatory hereto (each a "<u>Registration Rights Purchaser</u>" and collectively, the "<u>Registration Rights Purchasers</u>").

This Agreement is made pursuant to the Stock Purchase Agreement, dated as of October 22, 2018, between the Company and Castle Creek Capital Partners VII, L.P. (the "<u>Purchase Agreement</u>") [and the Stock Purchase Agreement[s], dated as of [●], 2018, between the Company and the other Registration Rights Purchaser[s] (the "<u>Additional Purchase Agreement[s]</u>")].

NOW, THEREFORE, in consideration of the mutual covenants contained in this Agreement, and for other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the Company and each of the Registration Rights Purchasers agree as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.&nbsp;&nbsp;&nbsp;&nbsp;<u>Definitions</u>. Capitalized terms used and not otherwise defined herein that are defined in the Purchase Agreement shall have the meanings given such terms in the Purchase Agreement. As used in this Agreement, the following terms shall have the following meanings:

"<u>Advice</u>" shall have the meaning set forth in Section 8(h).

"<u>Affiliate</u>" means, with respect to any Person, any other Person that directly or indirectly controls, is controlled by, or is under common control with, such Person.

"<u>Agreement</u>" shall have the meaning set forth in the Preamble.

"<u>Allowable Grace Period</u>" shall have the meaning set forth in Section 5(d).

"<u>Business Day</u>" means a day other than a Saturday or Sunday or other day on which banks located in Iowa are authorized or required by law to close.

"<u>Capital Stock</u>" means, with respect to any Person at any time, any and all shares, interests, participations or other equivalents (however designated, whether voting or non-voting) of capital stock, securities convertible into or exchangeable or exercise able for any of its shares, interests, participations or other equivalents, partnership interests (whether general or limited), limited liability company interests, or equivalent ownership interests in or issued by such Person.

"<u>Closing Date</u>" has the meaning set forth in the Purchase Agreement.

"<u>Commission</u>" means the United States Securities and Exchange Commission.

"<u>Common Stock</u>" means the voting common stock of the Company, par value $0.01 per share, and any securities into which such shares of voting common stock may hereinafter be reclassified.

"<u>Company</u>" shall have the meaning set forth in the Preamble.

"<u>Effective Date</u>" means the date that the Registration Statement filed pursuant to Section 2(a) is first declared effective by the Commission.

Exhibit A \| Page 1

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"<u>Effectiveness Deadline</u>" means, with respect to the Initial Registration Statement or the New Registration Statement, the fifth (5th) Trading Day after the date the Company is notified (orally or in writing, whichever is earlier) by the Commission that such Registration Statement will not be "reviewed" or will not be subject to further review; provided, that if the Effectiveness Deadline falls on a Saturday, Sunday or other day that the Commission is closed for business, the Effectiveness Deadline shall be extended to the next Business Day on which the Commission is open for business.

"<u>Effectiveness Period</u>" shall have the meaning set forth in Section 2(b).

"<u>Event</u>" shall have the meaning set forth in Section 2(c).

"<u>Event Date</u>" shall have the meaning set forth in Section 2(c).

"<u>Exchange Act</u>" means the Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder.

"<u>Filing Deadline</u>" means, with respect to the Initial Registration Statement required to be filed pursuant to Section 2(a), the date that is the fifth (5th) anniversary of the Closing Date, provided, that if the Filing Deadline falls on a Saturday, Sunday or other day that the Commission is closed for business, the Filing Deadline shall be extended to the next Business Day on which the Commission is open for business.

"<u>FINRA</u>" shall have the meaning set forth in Section 5(n).

"<u>Grace Period</u>" shall have the meaning set forth in Section 5(d).

"<u>Holder</u>" or "<u>Holders</u>" means the holder or holders, as the case may be, from time to time of Registrable Securities.

"<u>Holders Counsel</u>" shall have the meaning set forth in Section 5(a).

"<u>Indemnified Party</u>" shall have the meaning set forth in Section 7(c).

"<u>Indemnifying Party</u>" shall have the meaning set forth in Section 7(c).

"<u>Initial Registration Statement</u>" means shall have the meaning set forth in Section 2(a).

"<u>Liquidated Damages</u>" shall have the meaning set forth in Section 2(c).

"<u>Losses</u>" shall have the meaning set forth in Section 7(a).

"<u>New Registration Statement</u>" shall have the meaning set forth in Section 2(a).

"<u>Non-Responsive Holder</u>" shall have the meaning set forth in Section 8(d).

"<u>Other Securities</u>" means shares of Common Stock, Class B Common Stock, Series A Preferred Stock, Series B Preferred Stock, Series C Preferred Stock or shares of other Capital Stock of the Company which are entitled to registration rights contractually or under the Company's articles of incorporation, or Capital Stock which the Company is registering pursuant to a Registration Statement.

Exhibit A \| Page 2

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"<u>Person</u>" means an individual or corporation, partnership, trust, incorporated or unincorporated association, joint venture, limited liability company, joint stock company, government (or an agency or subdivision thereof) or other entity of any kind.

"<u>Piggyback Registration</u>" shall have the meaning set forth in Section 3(a).

"<u>Principal Market</u>" means the Trading Market on which the Common Stock is primarily listed on and quoted for trading.

"<u>Proceeding</u>" means an action, claim, suit, investigation or proceeding (including, without limitation, an investigation or partial proceeding, such as a deposition), whether commenced or threatened.

"<u>Prospectus</u>" means the prospectus included in a Registration Statement (including, without limitation, a prospectus that includes any information previously omitted from a prospectus filed as part of an effective registration statement in reliance upon Rule 430A promulgated under the Securities Act), as amended or supplemented by any prospectus supplement, with respect to the terms of the offering of any portion of the Registrable Securities covered by a Registration Statement, and all other amendments and supplements to the Prospectus, including post-effective amendments, and all material incorporated by reference or deemed to be incorporated by reference in such Prospectus.

"<u>Purchase Agreement</u>" shall have the meaning set forth in the Recitals.

"<u>Registrable Securities</u>" means all of the Shares and any securities issued or issuable upon any stock split, dividend or other distribution, recapitalization or similar event with respect to the Shares, provided that Shares shall cease to be Registrable Securities upon the earliest to occur of the following: (A) a sale pursuant to a Registration Statement; (B) becoming eligible for sale without time, volume or manner of sale restrictions by the Holders under Rule 144; or (C) if such Shares have ceased to be outstanding.

"<u>Registration Rights Purchaser</u>" or "<u>Registration Rights Purchasers</u>" shall have the meaning set forth in the Preamble.

"<u>Registration Statements</u>" means any one or more registration statements of the Company filed under the Securities Act that covers the resale of any of the Registrable Securities pursuant to the provisions of this Agreement (including without limitation the Initial Registration Statement, the New Registration Statement and any Remainder Registration Statements), amendments and supplements to such Registration Statements, including post-effective amendments, all exhibits and all material incorporated by reference or deemed to be incorporated by reference in such Registration Statements.

"<u>Remainder Registration Statement</u>" shall have the meaning set forth in Section 2(a).

"<u>Requested Information</u>" shall have the meaning set forth in Section 8(d).

"<u>Required Registration Statement</u>" means any Initial Registration Statement, New Registration Statement or Remainder Registration Statement.

"<u>Rule 144</u>" means Rule 144 promulgated by the Commission pursuant to the Securities Act, as such Rule may be amended from time to time, or any successor rule thereto.

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"<u>Rule 144A</u>" means Rule 144A promulgated by the Commission pursuant to the Securities Act, as such Rule may be amended from time to time, or any successor rule thereto.

"<u>Rule 415</u>" means Rule 415 promulgated by the Commission pursuant to the Securities Act, as such Rule may be amended from time to time, or any successor rule thereto.

"<u>Rule 424</u>" means Rule 424 promulgated by the Commission pursuant to the Securities Act, as such Rule may be amended from time to time, or any successor rule thereto.

"<u>SEC Guidance</u>" means (i) any publicly-available written guidance, comments, requirements or requests of the Commission staff and (ii) the Securities Act.

"<u>Securities Act</u>" means the Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder.

"<u>Shares</u>" means the shares of Common Stock issued to the Registration Rights Purchasers pursuant to the Purchase Agreement [or any Additional Purchase Agreements].

"<u>Shelf Offering</u>" shall have the meaning set forth in Section 4(a).

"<u>Take-Down Notice</u>" shall have the meaning set forth in Section 4(a).

"<u>Trading Day</u>" means (i) a day on which the Common Stock is listed or quoted and traded on its Principal Market (other than the OTC Bulletin Board), or (ii) if the Common Stock is not listed on a Trading Market (other than the OTC Bulletin Board), a day on which the Common Stock is traded in the over-the-counter market, as reported by the OTC Bulletin Board, or (iii) if the Common Stock is not quoted on any Trading Market, a day on which the Common Stock is quoted in the over-the-counter market as reported in the "pink sheets" by OTC Markets Group, Inc. (or any similar organization or agency succeeding to its functions of reporting prices); provided, that in the event that the Common Stock is not listed or quoted as set forth in (i), (ii) and (iii) hereof, then Trading Day shall mean a Business Day.

"<u>Trading Market</u>" means whichever of the New York Stock Exchange, the NYSE MKT, the Nasdaq Global Select Market, the Nasdaq Global Market, the Nasdaq Capital Market or OTC Bulletin Board on which the Common Stock is listed or quoted for trading on the date in question.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.&nbsp;&nbsp;&nbsp;&nbsp;<u>Mandatory Registration</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;On or prior to the Filing Deadline, if requested in writing by Castle Creek, the Company shall prepare and file with the Commission a Registration Statement covering the resale of all of the Registrable Securities not already covered by an existing and effective Registration Statement for an offering to be made on a continuous basis pursuant to Rule 415 or, if Rule 415 is not available for offers and sales of the Registrable Securities, by such other means of distribution of Registrable Securities as the Company may reasonably determine (the "<u>Initial Registration Statement</u>"). Notwithstanding the registration obligations set forth in this Section 2, in the event that (i) the Company's counsel determines that all such Registrable Securities cannot, as a result of the application of Rule 415, be registered for resale as a secondary offering on a single registration statement prior to filing the Initial Registration Statement, or (ii) the Commission informs the Company that all such Registrable Securities cannot, as a result of the application of Rule 415, be registered for resale as a secondary offering on a single registration statement, the Company agrees to promptly (A) inform each of the Holders thereof and, as applicable, file the Initial Registration Statement, or use its reasonable best efforts to file amendments to the Initial Registration Statement as required by the Commission and/or (B) withdraw the Initial

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Registration Statement and file a new registration statement (a "<u>New Registration Statement</u>"), in each case covering the maximum number of such Registrable Securities permitted to be registered thereon, on such form available to the Company to register for resale the Registrable Securities as a secondary offering; provided, that in the case of (ii) above, prior to filing such amendment or New Registration Statement, the Company shall be obligated to use its reasonable best efforts to advocate with the Commission for the registration of all of the Registrable Securities in accordance with the SEC Guidance, including without limitation, Securities Act Rules Compliance and Disclosure Interpretation 612.09, or any successor thereto. Notwithstanding any other provision of this Agreement, if the opinion of the Company's counsel or any SEC Guidance sets forth a limitation of the number of Registrable Securities permitted to be registered on a particular Registration Statement as a secondary offering (and, in the case of clause (ii) above, notwithstanding that the Company used reasonable best efforts to reasonably advocate with the Commission for the registration of all or a greater number of Registrable Securities), the number of Registrable Securities to be registered on such Registration Statement will be reduced on a pro rata on the basis of the aggregate number of Registrable Securities owned by each applicable Holder, and under such circumstances, the Company will not be subject to the payment of Liquidated Damages in Section 2(c). In the event the Company amends the Initial Registration Statement or files a New Registration Statement, as the case may be, under clauses (A) or (B) above, the Company will use its reasonable best efforts to file with the Commission, as promptly as allowed by Commission or SEC Guidance provided to the Company or to registrants of securities in general, one or more registration statements on such form available to the Company to register for resale those Registrable Securities that were not registered for resale on the Initial Registration Statement, as amended, or the New Registration Statement (the "<u>Remainder Registration Statements</u>"). No Holder shall be named as an "underwriter" in any Registration Statement without such Holder's prior written consent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;The Company shall use its reasonable best efforts to cause each Required Registration Statement to be declared effective by the Commission as soon as practicable, and, with respect to the Initial Registration Statement or the New Registration Statement, as applicable, no later than the Effectiveness Deadline, and shall use its reasonable best efforts to keep each Required Registration Statement continuously effective under the Securities Act until the earlier of (i) such time as all of the Registrable Securities covered by such Required Registration Statement have been publicly sold by the Holders or (ii) the date that all Registrable Securities covered by such Required Registration Statement may be sold by the Holders without volume or manner of sale restrictions under Rule 144, as determined by counsel to the Company pursuant to a written opinion letter to such effect, addressed and reasonably acceptable to the Company's transfer agent (the "<u>Effectiveness Period</u>"). The Company shall request effectiveness of a Required Registration Statement as of 5:00 p.m., New York City time, on a Trading Day. The Company shall promptly notify the Holders via facsimile or electronic mail of a ".pdf" format data file of the effectiveness of a Registration Statement within one (1) Business Day of the Effective Date. The Company shall file a final Prospectus for a Required Registration Statement with the Commission, as required by Rule 424(b) as promptly as reasonably practicable following the Effective Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;If: (i) the Initial Registration Statement is not filed with the Commission on or prior to the Filing Deadline, (ii) the Initial Registration Statement or the New Registration Statement, as applicable, is not declared effective by the Commission (or otherwise does not become effective) for any reason on or prior to the Effectiveness Deadline, or (iii) after its Effective Date, (A) such Registration Statement ceases to be effective for any reason (including without limitation by reason of a stop order, or the Company's failure to update the Registration Statement), to remain continuously effective as to all Registrable Securities for which it is required to be effective, or (B) the Holders are not permitted to utilize the Prospectus therein to resell such Registrable Securities (other than during an Allowable Grace Period), (iv) a Grace Period applicable to a Required Registration Statement exceeds the length of an Allowable Grace Period, or (v) after the Filing Deadline, and only in the event a Registration Statement is

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not effective or available to sell all Registrable Securities, the Holders are unable to sell Registrable Securities without restriction under Rule 144, (any such failure or breach in clauses (i) through (v) above being referred to as an "<u>Event</u>," and, for purposes of clauses (i), (ii), (iii) or (v), the date on which such Event occurs, or for purposes of clause (iv) the date on which such Allowable Grace Period is exceeded, being referred to as an "<u>Event Date</u>"), then in addition to any other rights the Holders may have hereunder or under applicable law, on each such Event Date and on each monthly anniversary of each such Event Date (if the applicable Event shall not have been cured by such date) until the applicable Event is cured, the Company shall pay to each Holder an amount in cash or shares of Common Stock or Non-Voting Common Stock, as appropriate, at the election of the Holder, as liquidated damages and not as a penalty ("<u>Liquidated Damages</u>"), equal to 3.0% of the aggregate purchase price paid by such Holder pursuant to the Purchase Agreement [or Additional Purchase Agreement] for any Registrable Securities held by such Holder on the Event Date, which shall be paid on no more than one (1) occasion and shall be the Holders' sole remedy for any such breaches. The parties agree that notwithstanding anything to the contrary herein or in the Purchase Agreement [or Additional Purchase Agreement], no Liquidated Damages shall be payable (i) if as of the relevant Event Date, the Registrable Securities may be sold by the Holders without volume or manner of sale restrictions under Rule 144, as determined by counsel to the Company pursuant to a written opinion letter to such effect, addressed and reasonably acceptable to the Company's transfer agent, (ii) to a Holder causing an Event that relates to or is caused by any action or inaction taken by such Holder, (iii) to a Holder in the event it is unable to lawfully sell any of its Registrable Securities (including, without limitation, in the event a Grace Period exceeds the length of an Allowable Grace Period) because of possession of material non-public information or (iv) with respect to any period after the expiration of the Effectiveness Period (it being understood that this clause shall not relieve the Company of any Liquidated Damages accruing prior to the expiration of the Effectiveness Period). If the Company fails to pay any Liquidated Damages pursuant to this Section 2(c) in full within ten (10) Business Days after the date payable, the Company will pay interest on the amount of Liquidated Damages then owing to the Holder at a rate of 1.0% per month on an annualized basis (or such lesser maximum amount that is permitted to be paid by applicable law) to the Holder, accruing daily from the date such Liquidated Damages are due until such amounts, plus all such interest thereon, are paid in full. The Liquidated Damages pursuant to the terms hereof shall apply on a daily pro-rata basis for any portion of a month prior to the cure of an Event, except in the case of the first Event Date. With respect to a Holder, the Effectiveness Deadline for a Required Registration Statement shall be extended without default or Liquidated Damages hereunder in the event that the Company's failure to obtain the effectiveness of the Registration Statement on a timely basis results from the failure of such Holder to timely provide the Company with information requested by the Company and necessary to complete the Registration Statement in accordance with the requirements of the Securities Act (in which case the Effectiveness Deadline would be extended with respect to Registrable Securities held by such Registration Rights Purchaser).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.&nbsp;&nbsp;&nbsp;&nbsp;<u>Piggyback Registration</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;If the Company intends to file a Registration Statement covering a primary or secondary offering of any of its Common Stock or Other Securities, whether or not the sale for its own account, which is not a registration solely to implement an employee benefit plan pursuant to a registration statement on Form S-8 (or successor form), a registration statement on Form S-4 (or successor form) or a transaction to which Rule 145 or any other similar rule of the Commission is applicable, the Company will promptly (and in any event at least ten (10) Business Days before the anticipated filing date) give written notice to the Holders of its intention to effect such a registration. The Company will effect the registration under the Securities Act of all Registrable Securities that the Holder(s) request(s) be included in such registration (a "<u>Piggyback Registration</u>") by a written notice delivered to the Company within five (5) Business Days after the notice given by the Company in the preceding sentence. Subject to Section 3(b), securities requested to be included in a Company registration

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pursuant to this Section 3 shall be included by the Company on the same form of Registration Statement as has been selected by the Company for the securities the Company is registering for sale referred to above. The Holders shall be permitted to withdraw all or part of the Registrable Securities from the Piggyback Registration at any time at least two (2) Business Days prior to the effective date of the Registration Statement relating to such Piggyback Registration (the "<u>Piggyback Registration Statement</u>"). If the Company elects to terminate any registration filed under this Section 3 prior to the effectiveness of such registration, the Company will have no obligation to register the securities sought to be included by the Holders in such registration under this Section 3. There shall be no limit to the number of Piggybank Registrations pursuant to this Section 3(a).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;If a Registration Statement under this Section 3 relates to an underwritten offering and the managing underwriter(s) advise(s) the Company that in its or their reasonable opinion the number of securities requested to be included in such offering exceeds the number which can be sold without adversely affecting the marketability of such offering (including an adverse effect on the per share offering price), the Company will include in such registration or Prospectus only such number of securities that in the reasonable opinion of such underwriter(s) can be sold without adversely affecting the marketability of the offering (including an adverse effect on the per share offering price), which securities will be so included in the following order of priority, subject, however, to the requirements of the Company's articles of incorporation: (i) first, the Common Stock and other securities the Company proposes to sell, (ii) second, the Registrable Securities of the Holders who have requested inclusion of Registrable Securities pursuant to this Section 3 along with any shares of Common Stock held by the Lincoln Bancorp Employee Stock Ownership Trust or Peterson Contractors, Inc. (or their respective successors) that are included in such Registration Statement, pro rata on the basis of the aggregate number of such securities or shares owned by each such person, or as such Holders and persons may otherwise agree, and (iii) third, any other securities of the Company that have been requested to be so included, subject to the terms of this Agreement. The Company shall select the investment banking firm or firms to act as the lead underwriter or underwriters in connection with an underwritten offering made pursuant to this Section 3; provided that such underwriter(s) shall be reasonably acceptable to the applicable Holder(s). No Holder may participate in any underwritten registration under this Section 3 unless such Holder (i) agrees to sell the Registrable Securities it desires to have covered by the underwritten offering on the basis provided in any underwriting arrangements in customary form and (ii) completes and executes all questionnaires, powers of attorney, indemnities, underwriting agreements and other documents reasonably required under the terms of such underwriting arrangements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.&nbsp;&nbsp;&nbsp;&nbsp;<u>Underwritten Shelf Offerings</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;At any time that a shelf registration statement covering Registrable Securities pursuant to Section 2 or Section 3 is effective, if any Holder delivers a notice to the Company (a "<u>Take-Down Notice</u>") stating that it intends to sell all or part of its Registrable Securities included by it on the shelf registration statement (a "<u>Shelf Offering</u>"), then the Company shall amend or supplement the shelf registration statement as may be necessary in order to enable such Registrable Securities to be distributed pursuant to the Shelf Offering (taking into account the inclusion of Registrable Securities by any other Holders pursuant to this Section 4(a)). In connection with any Shelf Offering, including any Shelf Offering that is an underwritten offering, such proposing Holder(s) shall also deliver the Take-Down Notice to all other holders of Registrable Securities included on such shelf Registration Statement and permit each such Holder to include its Registrable Securities included on the shelf Registration Statement in the Shelf Offering if such holder notifies the proposing Holder(s) and the Company within five days after delivery of the Take-Down Notice to such Holder.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;The Company shall have no obligation to effect an underwritten offering under this Section 4 on behalf of the holders of Registrable Securities electing to participate in such offering unless the expected gross proceeds from such offering exceed $5,000,000.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;If a Shelf Offering of Registrable Securities included in a Required Registration Statement is to be conducted as an underwritten offering, then the Holders of the majority of the Registrable Securities included in a Required Registration Statement shall select the investment banking firm or firms to act as the lead underwriter or underwriters in connection with such offering; provided, that such selection shall be reasonably acceptable to the Company. If, in connection with any such underwritten offering, the managing underwriter(s) advise(s) the Company that in its or their reasonable opinion the number of securities requested to be included in such offering exceeds the number which can be sold without adversely affecting the marketability of such offering (including an adverse effect on the per share offering price), the Company will include in such registration or Prospectus only such number of securities that in the reasonable opinion of such underwriter(s) can be sold without adversely affecting the marketability of the offering (including an adverse effect on the per share offering price), which securities will be so included in the following order of priority: (i) first, the Registrable Securities of the Holders who have requested registration of Registrable Securities pursuant to this Section 4, pro rata on the basis of the aggregate number of such securities or shares owned by each such person, or as the Holders may otherwise agree amongst themselves, (ii) second, the Common Stock and other securities the Company proposes to sell, and (iii) third, any other securities of the Company that have been requested to be so included, subject to the terms of this Agreement. No Holder may participate in any underwritten registration under this Section 4 unless such Holder (i) agrees to sell the Registrable Securities it desires to include in the underwritten offering on the basis provided in any underwriting arrangements in customary form and (ii) completes and executes all questionnaires, powers of attorney, indemnities, underwriting agreements and other documents reasonably required under the terms of such underwriting arrangements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;In addition to Sections (a) and (b) of this Section 4, a Shelf Offering of Registrable Securities included on a Piggyback Registration Statement initiated by Holders shall be subject to the procedures set forth in Section 3(b).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.&nbsp;&nbsp;&nbsp;&nbsp;<u>Registration Procedures</u>.

In connection with the Company's registration obligations hereunder:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;the Company shall, not less than three (3) Trading Days prior to the filing of a Registration Statement or any related Prospectus or any amendment or supplement thereto (except for Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, proxy statements and Current Reports on Form 8-K and any similar or successor reports), furnish to one counsel designated by a majority of the outstanding Registrable Securities ("<u>Holders Counsel</u>"), copies of such Registration Statement, Prospectus or amendment or supplement thereto, as proposed to be filed, which documents will be subject to the reasonable review of Holders Counsel; provided that each Holder shall have the right to review, prior to filing, its selling shareholder information. The Company shall not file any Registration Statement or amendment or supplement thereto containing information which Holders Counsel reasonably objects in good faith, unless the Company shall have been advised by its counsel that the information objected to is required under the Securities Act or the rules or regulations adopted thereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;(i) the Company shall prepare and file with the Commission such amendments, including post-effective amendments and supplements, to each Registration Statement and the Prospectus used in connection therewith as may be necessary to keep such Registration Statement continuously effective as to the applicable Registrable Securities for its Effectiveness Period (except during an

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Allowable Grace Period); (ii) the Company shall cause the related Prospectus to be amended or supplemented by any required Prospectus supplement (subject to the terms of this Agreement), and, as so supplemented or amended, to be filed pursuant to Rule 424 (except during an Allowable Grace Period); (iii) the Company shall respond as promptly as reasonably practicable to any comments received from the Commission with respect to each Registration Statement or any amendment thereto and, as promptly as reasonably possible, provide the Holders Counsel true and complete copies of all correspondence from and to the Commission relating to such Registration Statement that pertains to the Holders as "Selling Shareholders"; and (iv) the Company shall comply in all material respects with the provisions of the Securities Act with respect to the disposition of all Registrable Securities covered by a Registration Statement until such time as all of such Registrable Securities shall have been disposed of (subject to the terms of this Agreement) in accordance with the intended methods of disposition by the Holders thereof as set forth in such Registration Statement as so amended or in such Prospectus as so supplemented; provided, that each Holder shall be responsible for the delivery of the Prospectus to the Persons to whom such Registration Rights Purchaser sells any of the Registrable Securities (including in accordance with Rule 172 under the Securities Act), and each Holder agrees to dispose of Registrable Securities in compliance with applicable federal and state securities laws. In the case of amendments and supplements to a Registration Statement which are required to be filed pursuant to this Agreement (including pursuant to this Section 5(b)) by reason of the Company filing a report on Form 10-K, Form 10- Q or Form 8-K or any analogous report under the Exchange Act, the Company shall have incorporated such report by reference into such Registration Statement, if applicable, or shall file such amendments or supplements with the Commission as promptly as practicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;the Company shall notify the Holders (which notice shall, pursuant to clauses (ii) through (iv) hereof, be accompanied by an instruction to suspend the use of the Prospectus until the requisite changes have been made, if applicable) as promptly as reasonably practicable following the day (i)(A) when a Prospectus or any Prospectus supplement or post-effective amendment to a Registration Statement has been filed with the Commission; and (B) with respect to each Registration Statement or any post-effective amendment, when the same has become effective; (ii) of the issuance by the Commission or any other federal or state Governmental Entity of any stop order suspending the effectiveness of a Registration Statement covering any or all of the Registrable Securities or the initiation of any Proceedings for that purpose; (iii) of the receipt by the Company of any notification with respect to the suspension of the qualification or exemption from qualification of any of the Registrable Securities for sale in any jurisdiction, or the initiation or threatening of any Proceeding for such purpose; and (iv) of the occurrence of any event or passage of time that makes the financial statements included in a Registration Statement ineligible for inclusion therein or any statement made in such Registration Statement or Prospectus or any document incorporated or deemed to be incorporated therein by reference untrue in any material respect or that requires any revisions to such Registration Statement, Prospectus or other documents so that, in the case of such Registration Statement or the Prospectus, as the case may be, it will not contain any untrue statement of a material fact or omit to state any material fact required to be stated therein or necessary to make the statements therein (in the case of any Prospectus, form of prospectus or supplement thereto, in light of the circumstances under which they were made), not misleading.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;Notwithstanding anything to the contrary herein, at any time after the Registration Statement has been declared effective by the Commission, the Company may delay the disclosure of material non-public information concerning the Company if the disclosure of such information at the time is not, in the good faith judgment of the Company, in the best interests of the Company (such delay, a "<u>Grace Period</u>"). During the Grace Period, the Company shall not be required to maintain the effectiveness of any Registration Statement filed hereunder and, in any event, Holders shall suspend sales of Registrable Securities pursuant to such Registration Statements during the pendency of the Grace Period provided, the Company shall promptly (i) notify the Holders in writing of the existence of material non-public information giving rise to a Grace Period or the need to file a post-effective

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amendment, as applicable, and the date on which such Grace Period will begin, (ii) use reasonable best efforts to terminate a Grace Period as promptly as practicable provided that such termination is, in the good faith judgment of the Company, in the best interest of the Company and (iii) notify the Holders in writing of the date on which the Grace Period ends; provided, further, that, with respect to a Required Registration Statement only, no single Grace Period shall exceed forty-five (45) consecutive days, and during any three hundred sixty-five (365) day period, the aggregate of all Grace Periods shall not exceed an aggregate of ninety (90) days (each Grace Period complying with this provision being an "<u>Allowable</u> <u>Grace Period</u>"). For purposes of determining the length of a Grace Period, the Grace Period shall be deemed to begin on and include the date the Holders receive the notice referred to in clause (i) above and shall end on and include the later of the date the Holders receive the notice referred to in clause (iii) above and the date referred to in such notice; provided, that no Grace Period shall be longer than an Allowable Grace Period. Notwithstanding anything to the contrary, the Company shall use reasonable best efforts to cause the Transfer Agent to deliver unlegended Shares to a transferee of a Holder in accordance with the terms of the Purchase Agreement [or applicable Additional Purchase Agreement] in connection with any sale of Registrable Securities with respect to which a Holder has entered into an irrevocable contract for sale prior to the Holder's receipt of the notice of a Grace Period and for which the Holder has not yet settled.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;the Company shall use reasonable best efforts to avoid the issuance of, or, if issued, obtain the withdrawal of (i) any order suspending the effectiveness of a Registration Statement, or (ii) any suspension of the qualification (or exemption from qualification) of any of the Registrable Securities for sale in any jurisdiction, as soon as practicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;&nbsp;&nbsp;the Company shall, if requested by a Holder, furnish to such Holder, without charge, at least one (1) conformed copy of each Registration Statement and each amendment thereto and all exhibits to the extent requested by such Holder (including those previously furnished or incorporated by reference) promptly after the filing of such documents with the Commission; provided, that the Company shall have no obligation to provide any document pursuant to this clause that is available on the Commission's EDGAR or successor system.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;&nbsp;&nbsp;&nbsp;the Company agrees to promptly deliver to each Holder whose Registrable Securities are included in the applicable Registration Statement, without charge, as many copies of each Prospectus or Prospectuses (including each form of prospectus) and each amendment or supplement thereto as such Persons may reasonably request. The Company hereby consents to the use of such Prospectus and each amendment or supplement thereto by each of the selling Holders in connection with the offering and sale of Registrable Securities covered by such Prospectus and any amendment or supplement thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)&nbsp;&nbsp;&nbsp;&nbsp;the Company shall, prior to any resale of Registrable Securities by a Holder, use its reasonable best efforts to register or qualify or cooperate with the selling Holders in connection with the registration or qualification (or exemption from the registration or qualification) of such Registrable Securities for the resale by the Holder under the securities or Blue Sky laws of such jurisdictions within the United States as any Holder reasonably requests in writing, to keep each registration or qualification (or exemption therefrom) effective during the Effectiveness Period and to do any and all other acts or things reasonably necessary to enable the disposition in such jurisdictions of the Registrable Securities covered by each Registration Statement; provided, that the Company shall not be required to qualify generally to do business in any jurisdiction where it is not then so qualified, subject the Company to any general tax in any such jurisdiction where it is not then so subject or file a consent to service of process in any such jurisdiction.

Exhibit A \| Page 10

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;the Company shall enter into such customary agreements (including an underwriting agreement in customary form) and take all such other actions reasonably requested by the Holders of a majority of the Registrable Securities being sold in connection therewith or by the managing underwriter(s), if any, in order to expedite or facilitate the disposition of such Registrable Securities. In connection with any such permitted underwritten offering of Registrable Securities, (i) the Company shall (A) make such representations and warranties to the selling Holders and the managing underwriter(s), if any, with respect to the business of the Company and its subsidiaries, and the Registration Statement, Prospectus and documents, if any, incorporated or deemed to be incorporated by reference therein, in each case, in form, substance and scope as are customarily made by issuers in underwritten offerings, and, if true, confirm the same if and when requested, (B) use its reasonable best efforts to furnish opinions of counsel to the Company and updates thereof (which counsel and opinions (in form, scope and substance) shall be reasonably satisfactory to the managing underwriter(s), if any, addressed to each of the managing underwriter(s), if any, covering the matters customarily covered in opinions requested in underwritten offerings, (C) use its reasonable best efforts to obtain "cold comfort" letters and updates thereof from the independent certified public accountants of the Company (and, if necessary, any other independent certified public accountants of any subsidiary of the Company or of any business acquired by the Company for which financial statements and financial data are, or are required to be, included in the Registration Statement) who have certified the financial statements included in such Registration Statement, addressed to each of the managing underwriter(s), if any, such letters to be in customary form and covering matters of the type customarily covered in "cold comfort" letters in connection with underwritten offerings, (D) the underwriting agreement shall contain indemnification provisions and procedures customary in such underwritten offerings and (v) deliver such documents and certificates as may be reasonably requested by the Holders of a majority of the Registrable Securities being sold in connection therewith, their counsel and the managing underwriter(s), if any, to evidence the continued validity of the representations and warranties made pursuant to clause (A) above and to evidence compliance with any customary conditions contained in the underwriting agreement or other agreement entered into by the Company, (ii) each Holder shall not, during such period (which period shall in no event exceed one hundred and eighty (180) days, subject to any then customary "booster shot" extension (which extension shall not exceed thirty (30) days) following the effective date of any Registration Statement to the extent requested by any managing underwriter, sell, pledge, hypothecate, transfer, make any short sale of, loan, grant any option or right to purchase of, or otherwise transfer or dispose of (other than to donees who agree to be similarly bound) any Registrable Securities owned by it at any time during such period, except Registrable Securities included in such registration; provided that any release of Registrable Securities from such agreement shall be effected among the Holders on a pro rata basis according to the Registrable Securities then owned by them, and (iii) each Registration Rights Purchaser shall, and the Company shall use its reasonable best efforts to cause each of its directors and senior executive officers to, execute and deliver customary lockup agreements in such form and for such time period up to one hundred and eighty (180) days (subject to any then customary "booster shot" extensions) as may be requested by any managing underwriter. The above shall be done at each closing under such underwriting or similar agreement, or as and to the extent required thereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j)&nbsp;&nbsp;&nbsp;&nbsp;the Company shall make available for inspection by any Holder of Registrable Securities included in such Registration Statement, any underwriter participating in any disposition pursuant to such Registration Statement, and any attorney, accountant or other agent retained by any such seller or underwriter (collectively, the "<u>Inspectors</u>"), at the offices where normally kept, during reasonable business hours, all financial and other records, pertinent corporate documents and properties of the Company and its Subsidiaries (collectively, the "<u>Records</u>"), as shall be reasonably necessary to enable them to exercise their due diligence responsibility, and cause the Company's officers, directors and employees to supply all information reasonably requested by any such Inspector in connection with such Registration Statement; provided, however, that any Records that are not generally publicly available at the time of delivery of such Records shall be kept confidential by such Inspectors unless (i) the disclosure

Exhibit A \| Page 11

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of such Records is necessary in the reasonable judgment of the Inspectors to avoid or correct a misstatement or omission in the Registration Statement, or (ii) the release of such Records is ordered pursuant to a subpoena or other order from a court of competent jurisdiction; provided, further, that each Holder of Registrable Securities agrees that it will, upon learning that disclosure of such Records is sought in a court of competent jurisdiction, give notice to the Company to the extent legally permitted and allow the Company, at its expense, to undertake appropriate action and to prevent disclosure of the Records deemed confidential.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k)&nbsp;&nbsp;&nbsp;&nbsp;the Company shall, in the case of an underwritten offering, cause its officers to use their reasonable best efforts to support the marketing of the Registrable Securities covered by the Registration Statement (including, without limitation, by participation in "road shows") if requested by the managing underwriter(s) and taking into account the Company's business needs.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l)&nbsp;&nbsp;&nbsp;&nbsp;the Company shall reasonably cooperate with the Holders to facilitate the timely preparation and delivery of certificates representing Registrable Securities to be delivered to a transferee pursuant to the Registration Statement, which certificates shall be free, to the extent permitted by the Purchase Agreement [or applicable Additional Purchase Agreement,] and under law, of all restrictive legends, and to enable such Registrable Securities to be in such denominations and registered in such names as any such Holders may reasonably request. Certificates for Registrable Securities free from all restrictive legends may be transmitted by the transfer agent to a Holder by crediting the account of such Holder's prime broker with DTC as directed by such Holder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m)&nbsp;&nbsp;&nbsp;&nbsp;the Company shall following the occurrence of any event contemplated by Sections 5(c)(ii)-(iv), as promptly as reasonably practicable, as applicable: (i) use its reasonable best efforts to prevent the issuance of any stop order or obtain its withdrawal at the earliest possible moment if the stop order have been issued, or (ii) taking into account the Company's good faith assessment of any adverse consequences to the Company and its shareholders of the premature disclosure of such event, prepare and file a supplement or amendment, including a post-effective amendment, to the affected Registration Statements or a supplement to the related Prospectus or any document incorporated or deemed to be incorporated therein by reference, and file any other required document so that, as thereafter delivered, no Registration Statement nor any Prospectus will contain an untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein (in the case of any Prospectus, form of prospectus or supplement thereto, in light of the circumstances under which they were made), not misleading.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n)&nbsp;&nbsp;&nbsp;&nbsp;the Company may require each selling Holder to furnish to the Company a certified statement as to (i) the number of securities of the Company beneficially owned by such Holder and any Affiliate thereof, (ii) any Financial Industry Regulatory Authority ("<u>FINRA</u>") affiliations, (iii) any natural persons who have the power to vote or dispose of the Common Stock and (iv) any other information as may be requested by the Commission, FINRA, any state securities commission or any other government or regulatory body with jurisdiction over the Company or its activities. During any periods that the Company is unable to meet its obligations hereunder with respect to the registration of Registrable Securities because any Holder fails to furnish such information within five (5) Trading Days of the Company's request, any Liquidated Damages that are accruing at such time as to such Holder only shall be tolled and any Event that may otherwise occur solely because of such delay shall be suspended as to such Holder only, until such information is delivered to the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o)&nbsp;&nbsp;&nbsp;&nbsp;the Company shall cooperate with any registered broker through which a Holder proposes to resell its Registrable Securities in effecting a filing with FINRA pursuant to FINRA Rule 5110 as requested by any such Holder and the Company shall pay the filing fee required for the first such filing (but not additional filings) within two (2) Business Days of the request therefore.

Exhibit A \| Page 12

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p)&nbsp;&nbsp;&nbsp;&nbsp;if the Company becomes eligible to use Form S-3 during the term of this Agreement, the Company shall use its reasonable best efforts to maintain eligibility for use of Form S-3 (or any successor form thereto) for the registration of the resale of Registrable Securities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q)&nbsp;&nbsp;&nbsp;&nbsp;if requested by a Holders Counsel, the Company shall (i) promptly incorporate in a Prospectus supplement or post-effective amendment to the Registration Statement such information as the Company reasonably agrees (upon advice of counsel) is required to be included therein and (ii) make all required filings of such Prospectus supplement or such post-effective amendment as soon as reasonably practicable after the Company has received notification of the matters to be incorporated in such Prospectus supplement or post-effective amendment.

The Company may require each Holder of Registrable Securities as to which any registration is being effected to furnish to the Company in writing such information required in connection with such registration regarding such Holder and the distribution of such Registrable Securities as the Company may, from time to time, reasonably request in writing and the Company may exclude from such registration the Registrable Securities of any Holder who fails to furnish such information within a reasonable time after receiving such request.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.&nbsp;&nbsp;&nbsp;&nbsp;<u>Registration Expenses</u>. All fees and expenses incident to the Company's performance of or compliance with its obligations under this Agreement (excluding any underwriting discounts and selling commissions, stock transfer taxes and fees of counsel for the Holders) shall be borne by the Company whether or not any Registrable Securities are sold pursuant to a Registration Statement. The fees and expenses referred to in the foregoing sentence that are the Company's responsibility shall include, without limitation, (i) all registration and filing fees (including, without limitation, fees and expenses (A) with respect to filings required to be made with any Trading Market on which the Common Stock is then listed for trading, (B) with respect to compliance with applicable state securities or Blue Sky laws (including, without limitation, fees and disbursements of counsel for the Company in connection with Blue Sky qualifications or exemptions of the Registrable Securities and determination of the eligibility of the Registrable Securities for investment under the laws of such jurisdictions as requested by the Holders) and (C) if not previously paid by the Company in connection with an issuer filing, with respect to any filing that may be required to be made by any broker through which a Holder intends to make sales of Registrable Securities with FINRA pursuant to FINRA Rule 5110, so long as the broker is receiving no more than a customary brokerage commission in connection with such sale, (ii) printing expenses (including, without limitation, expenses of printing certificates for Registrable Securities and of printing prospectuses if the printing of prospectuses is reasonably requested by the Holders of a majority of the Registrable Securities included in the Registration Statement), (iii) messenger, telephone and delivery expenses of the Company, (iv) fees and disbursements of counsel for the Company, (v) Securities Act liability insurance, if the Company so desires such insurance, (vi) fees and expenses of all other Persons retained by the Company in connection with the consummation of the transactions contemplated by this Agreement, and (vii) those expenses of Castle Creek and other Registration Rights Purchasers actually and reasonably incurred, including without limitation, the reasonable attorneys' fees, provided however that the maximum aggregate amount of such expenses and fees of Castle Creek and any other Registration Rights Purchasers subject to reimbursement under this clause (vii) shall be $50,000. In addition, the Company shall be responsible for all of its internal expenses incurred in connection with the consummation of the transactions contemplated by this Agreement (including, without limitation, all salaries and expenses of its officers and employees performing legal or accounting duties), the expense of any annual audit and the fees and expenses incurred in connection with the listing of the Registrable Securities on any securities exchange as required hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.&nbsp;&nbsp;&nbsp;&nbsp;<u>Indemnification</u>.

Exhibit A \| Page 13

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;<u>Indemnification by the Company</u>. The Company shall, notwithstanding any termination of this Agreement, indemnify, defend and hold harmless each Holder and each of their respective officers, directors, agents, general partners, managing members, managers, Affiliates and employees, each Person who controls any such Holder (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act) and the officers, directors, general partners, managing members, managers, agents and employees of such controlling Person, to the fullest extent permitted by applicable law, from and against any and all losses, claims, damages, liabilities, costs (including, without limitation, reasonable costs of preparation and investigation and reasonable and documented attorneys' fees) and expenses (collectively, "<u>Losses</u>"), as incurred, that arise out of or are based upon (i) any untrue or alleged untrue statement of a material fact contained in any Registration Statement, any Prospectus or any form of prospectus or in any amendment or supplement thereto or in any preliminary prospectus, or arising out of or relating to any omission or alleged omission to state a material fact required to be stated therein or necessary to make the statements therein (in the case of any Prospectus or form of prospectus or supplement thereto, in light of the circumstances under which they were made) not misleading, or (ii) any violation or alleged violation by the Company of the Securities Act, Exchange Act or any state securities law or any rule or regulation thereunder, in connection with the performance of its obligations under this Agreement, except to the extent, but only to the extent, that (A) such untrue statements, alleged untrue statements, omissions or alleged omissions are based solely upon information regarding such Holder furnished in writing to the Company by such Holder or on behalf of such Holder expressly for use therein, or to the extent that such information relates to such Holder or such Holder's proposed method of distribution of Registrable Securities and was reviewed and approved by such Holder or Holders Counsel expressly for use in the Registration Statement, such Prospectus or such form of Prospectus or in any amendment or supplement thereto, (B) Holder's failure to deliver or cause to be delivered the Prospectus or any amendment or supplement thereto made available by the Company in compliance with Section 8(g), or (C) in the case of an occurrence of an event of the type specified in Sections 5(c)(ii)-(iv), related to the use by a Holder of an outdated or defective Prospectus after the Company has notified such Holder in writing or electronic mail that the Prospectus is outdated or defective and prior to the receipt by such Holder of the Advice contemplated and defined in Section 8(h) below, but only if and to the extent that following the receipt of the Advice the misstatement or omission giving rise to such Loss would have been corrected. Such indemnity shall remain in full force and effect regardless of any investigation made by or on behalf of an Indemnified Party (as defined in Section 7(c)) and shall survive the transfer of the Registrable Securities by the Holders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;<u>Indemnification by Holders</u>. Each Holder shall, notwithstanding any termination of this Agreement, severally and not jointly, indemnify and hold harmless the Company, its directors, officers, agents and employees, each Person who controls the Company (within the meaning of Section 15 of the Securities Act and Section 20 of the Exchange Act), and the directors, officers, agents or employees of such controlling Persons, to the fullest extent permitted by applicable law, from and against all Losses, as incurred, arising out of or are based upon (i) any untrue or alleged untrue statement of a material fact contained in any Registration Statement, any Prospectus, or any form of prospectus, or in any amendment or supplement thereto or in any preliminary prospectus, or arising out of or relating to any omission or alleged omission of a material fact required to be stated therein or necessary to make the statements therein (in the case of any Prospectus, or any form of prospectus or supplement thereto, in light of the circumstances under which they were made) not misleading (A) to the extent, but only to the extent, that such untrue statements or omissions are based solely upon information regarding such Holder furnished in writing to the Company by or on behalf of such Holder expressly for use therein, or (B) to the extent, but only to the extent, that such information relates to such Holder or such Holder's proposed method of distribution of Registrable Securities and was reviewed and approved by such Holder or Holders Counsel expressly for use in a Registration Statement, such Prospectus or such form of Prospectus or in any amendment or supplement thereto or (C) in the case of an occurrence of an event of the type specified in Sections 5(c)(ii)- (iv), to the extent, but only to the extent, related to the use by such

Exhibit A \| Page 14

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Holder of an outdated or defective Prospectus after the Company has notified such Holder in writing that the Prospectus is outdated or defective and prior to the receipt by such Holder of the Advice contemplated in Section 8(h), but only if and to the extent that following the receipt of the Advice the misstatement or omission giving rise to such Loss would have been corrected, or (ii) Holder's failure to deliver or cause to be delivered the Prospectus or any amendment or supplement thereto made available by the Company in compliance with Section 8(g). In no event shall the liability of any selling Holder hereunder be greater in amount than the dollar amount of the net proceeds received by such Holder upon the sale of the Registrable Securities giving rise to such indemnification obligation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;<u>Conduct of Indemnification Proceedings</u>. If any Proceeding shall be brought or asserted against any Person entitled to indemnity hereunder (an "<u>Indemnified Party</u>"), such Indemnified Party shall promptly notify the Person from whom indemnity is sought (the "<u>Indemnifying Party</u>") in writing, and the Indemnifying Party shall have the right to assume the defense thereof, including the employment of one (1) counsel reasonably satisfactory to the Indemnified Party and the payment of all reasonable and documented fees and expenses incurred in connection with defense thereof; provided, that the failure of any Indemnified Party to give such written notice within a reasonable time of commencement of any such Proceeding shall not relieve the Indemnifying Party of its obligations or liabilities pursuant to this Agreement, except (and only) to the extent that such failure shall have materially and adversely prejudiced the Indemnifying Party in its ability to defend such Proceeding.

An Indemnified Party shall have the right to employ separate counsel in any such Proceeding and to participate in the defense thereof, but the fees and expenses of such counsel shall be at the expense of such Indemnified Party or Indemnified Parties unless: (1) the Indemnifying Party has agreed in writing to pay such fees and expenses; (2) the Indemnifying Party shall have failed promptly to assume the defense of such Proceeding and to employ counsel reasonably satisfactory to such Indemnified Party in any such Proceeding; or (3) the named parties to any such Proceeding (including any impleaded parties) include both such Indemnified Party and the Indemnifying Party, and such Indemnified Party shall have been advised by counsel in writing that a conflict of interest exists if the same counsel were to represent such Indemnified Party and the Indemnifying Party; provided, that the Indemnifying Party shall not be liable for the fees and expenses of more than one separate firm of attorneys plus local counsel at any time for all Indemnified Parties. The Indemnifying Party shall not be liable for any settlement of any such Proceeding effected without its written consent, which consent shall not be unreasonably withheld, delayed or unreasonably conditioned. No Indemnifying Party shall, without the prior written consent of the Indemnified Party, effect any settlement of any pending Proceeding in respect of which any Indemnified Party is a party, unless such settlement includes an unconditional release of such Indemnified Party from all liability on claims that are the subject matter of such Proceeding.

Subject to the terms of this Agreement, all documented fees and expenses of the Indemnified Party (including reasonable fees and expenses to the extent incurred in connection with investigating or preparing to defend such Proceeding in a manner not inconsistent with this Section 7(c)) shall be paid to the Indemnified Party, as incurred, within twenty (20) Trading Days of written notice thereof to the Indemnifying Party; provided, that the Indemnified Party shall promptly reimburse the Indemnifying Party for that portion of such fees and expenses applicable to such actions for which such Indemnified Party is finally judicially determined to not be entitled to indemnification hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;<u>Contribution</u>. If a claim for indemnification under Section 7(a) or 7(b) is unavailable to an Indemnified Party (other than in accordance with its terms) or insufficient to hold an Indemnified Party harmless for any Losses, then each Indemnifying Party, in lieu of indemnifying such Indemnified Party, shall contribute to the amount paid or payable by such Indemnified Party as a result of such Losses, in such proportion as is appropriate to reflect the relative fault of the Indemnifying Party, on

Exhibit A \| Page 15

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the one hand, and Indemnified Party, on the other hand, in connection with the actions, statements or omissions that resulted in such Losses as well as any other relevant equitable considerations. The relative fault of such Indemnifying Party, on the one hand, and Indemnified Party, on the other hand, shall be determined by reference to, among other things, whether any action in question, including any untrue or alleged untrue statement of a material fact or omission or alleged omission of a material fact, has been taken or made by, or relates to information supplied by, such Indemnifying Party or Indemnified Party, and the parties' relative intent, knowledge, access to information and opportunity to correct or prevent such action, statement or omission. The amount paid or payable by a party as a result of any Losses shall be deemed to include, subject to the limitations set forth in this Agreement, any reasonable attorneys' or other reasonable fees or expenses incurred by such party in connection with any Proceeding to the extent such party would have been indemnified for such fees or expenses if the indemnification provided for in this Section 7(d) was available to such party in accordance with its terms. The parties hereto agree that it would not be just and equitable if contribution pursuant to this Section 7(d) were determined by pro rata allocation or by any other method of allocation that does not take into account the equitable considerations referred to in the immediately preceding paragraph. Notwithstanding the provisions of this Section 7(d), no Holder shall be required to contribute, in the aggregate, any amount in excess of the amount by which the net proceeds actually received by such Holder from the sale of the Registrable Securities subject to the Proceeding exceeds the amount of any damages that such Holder has otherwise been required to pay by reason of such untrue or alleged untrue statement or omission or alleged omission. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation.

The indemnity and contribution agreements contained in this Section 7 are in addition to any liability that the Indemnifying Parties may have to the Indemnified Parties and are not in diminution or limitation of the indemnification provisions under the Purchase Agreement [or applicable Additional Purchase Agreement].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.&nbsp;&nbsp;&nbsp;&nbsp;<u>Miscellaneous</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;<u>Remedies</u>. In the event of a breach by the Company or by a Holder of any of their obligations under this Agreement, each Holder or the Company, as the case may be, in addition to being entitled to exercise all rights granted by law and under this Agreement, including recovery of damages, will be entitled to specific performance of its rights under this Agreement. The Company and each Holder agree that monetary damages would not provide adequate compensation for any losses incurred by reason of a breach by it of any of the provisions of this Agreement and hereby further agrees that, in the event of any action for specific performance in respect of such breach, it shall waive the defense that a remedy at law would be adequate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;<u>Prohibition on Other Registrations</u>. The Company agrees not to effect or initiate a registration statement for any public sale or distribution of any securities similar to those being registered pursuant to this Agreement, or any securities convertible into or exchangeable or exercisable for such securities (other than a registration solely to implement an employee benefit plan pursuant to a registration statement on Form S-8 (or successor form), a registration statement on Form S-4 (or successor form) or a transaction to which Rule 145 or any other similar rule of the Commission is applicable), during the fourteen (14) calendar days prior to, and during the sixty (60) calendar-day period beginning on, the effective date of any Registration Statement in which the Holders of Registrable Securities are participating (except as part of any such registration, if permitted).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;<u>Rule 144 Requirements</u>. For so long as the Company is subject to the reporting requirements of the Exchange Act, the Company will use its reasonable best efforts to timely file with the

Exhibit A \| Page 16

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Commission such reports and information required to be filed by it under the Securities Act and the Exchange Act and the rules and regulations adopted by the Commission thereunder and as the Commission may require. The Company shall furnish to any Holder of Registrable Securities forthwith upon request a written statement as to its compliance with the reporting requirements of Rule 144 (or any successor exemptive rule), the Securities Act and the Exchange Act (at any time that it is subject to such reporting requirements); a copy of its most recent annual or quarterly report; and such other reports and documents as such Person may reasonably request in availing itself of any rule or regulation of the Commission allowing it to sell any such securities without registration.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;<u>Obligations of Holders and Others in a Registration</u>. Each Holder agrees to timely furnish in writing such information regarding such Person, the securities sought to be registered and the intended method of disposition of the Registrable Securities held by it, as shall be reasonably be required to effect the registration of such Registrable Securities (the "<u>Requested Information</u>") and shall take such other action as the Company may reasonably request in connection with the registration, qualification or compliance or as otherwise provided herein. At least ten (10) Business Days prior to the first anticipated filing date of a Registration Statement, the Company shall notify each holder of the information the Company requires from such Holder if such Holder elects to have any of such Holder's Registrable Securities included in the Registration Statement. If at least five (5) Business Days prior to the filing date, the Company has not received the Requested Information from a Holder (a "<u>Non-</u> <u>Responsive Holder</u>"), then the Company may exclude from any Registration Statement the Registrable Securities of such Non-Responsive Holder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;<u>Rule 144A</u>. The Company agrees that, upon the request of any Holder of Registrable Securities or any prospective purchaser of Registrable Securities designated by a Holder, the Company shall promptly provide (but in any case within fifteen (15) calendar days of a request) to such Holder or potential purchaser, the following information:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;a brief statement of the nature of the business of the Company and any subsidiaries and the products and services they offer;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp;the most recent consolidated balance sheets and profit and losses and retained earnings statements, and similar financial statements of the Company for the two (2) most recent fiscal years (such financial information shall be audited, to the extent reasonably available); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;&nbsp;&nbsp;&nbsp;such other information about the Company, any subsidiaries, and their business, financial condition and results of operations as the requesting Holder or purchaser of such Registrable Securities shall reasonably request in order to comply with Rule 144A, as amended, and in connection therewith the anti-fraud provisions of the federal and state securities laws.

The Company hereby represents and warrants to any such requesting Holder and any prospective purchaser of Registrable Securities from such Holder that the information provided by the Company pursuant to this Section 8(e) will, as of their dates, not contain any untrue statement of a material fact or omit to state a material fact necessary in order to make the statements made, in light of the circumstances under which they were made, not misleading.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;&nbsp;&nbsp;<u>Limitations on Subsequent Registration Rights</u>. The Company will not enter into any agreements with any holder or prospective holder of any securities of the Company which would grant such holder or prospective holder registration rights with respect to the securities of the Company which would have priority over the Registrable Securities with respect to the inclusion of such securities in any registration. If the Company enters into an agreement that contains terms more favorable, in form or substance, to any shareholders than the terms provided to the Holders under this Agreement, then the

Exhibit A \| Page 17

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Company will modify or revise the terms of this Agreement in order to reflect any such more favorable terms for the benefit of the Holders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;&nbsp;&nbsp;&nbsp;<u>Compliance</u>. Each Holder covenants and agrees that it will comply with the prospectus delivery requirements of the Securities Act as applicable to it (unless an exemption therefrom is available) in connection with sales of Registrable Securities pursuant to the Registration Statement and shall sell the Registrable Securities only in accordance with a method of distribution described in the Registration Statement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)&nbsp;&nbsp;&nbsp;&nbsp;<u>Discontinued Disposition</u>. By its acquisition of Registrable Securities, each Holder agrees that, upon receipt of a notice from the Company of the occurrence of any event of the kind described in Sections 5(c)(ii)-(iv), such Holder will forthwith discontinue disposition of such Registrable Securities under a Registration Statement until it is advised in writing (the "<u>Advice</u>") by the Company that the use of the applicable Prospectus (as it may have been supplemented or amended) may be resumed. The Company may provide appropriate stop orders to enforce the provisions of this paragraph.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;<u>No Inconsistent Agreements</u>. Neither the Company nor any of its Subsidiaries has entered, as of the date hereof, nor shall the Company or any of its Subsidiaries, on or after the date hereof, enter into any agreement with respect to its securities, that would have the effect of impairing the rights granted to the Holders in this Agreement or otherwise conflicts with the provisions hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j)&nbsp;&nbsp;&nbsp;&nbsp;<u>Amendments and Waivers</u>. The provisions of this Agreement, including the provisions of this sentence, may not be amended, modified or supplemented, or waived unless the same shall be in writing and signed by the Company and Holders of a majority of the then outstanding Registrable Securities; provided that any such amendment, modification, supplement or waiver that materially, adversely and disproportionately effects the rights or obligations of any Holder vis-a-vis the other Holders shall require the prior written consent of such Holder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k)&nbsp;&nbsp;&nbsp;&nbsp;<u>Notices</u>. Any and all notices or other communications or deliveries required or permitted to be provided hereunder shall be in writing and shall be deemed given and effective on the earliest of (a) the date of transmission, if such notice or communication is delivered via facsimile or e-mail (provided the sender receives a machine-generated confirmation of successful facsimile transmission or e-mail notification or confirmation of receipt of an e-mail transmission) at the facsimile number or e-mail address specified in this Section prior to 5:00 p.m., New York City time, on a Trading Day, (b) the next Trading Day after the date of transmission, if such notice or communication is delivered via facsimile at the facsimile number specified in this Section on a day that is not a Trading Day or later than 5:00 p.m., New York City time, on any Trading Day, (c) the Trading Day following the date of mailing, if sent by U.S. nationally recognized overnight courier service with next day delivery specified, or (d) upon actual receipt by the party to whom such notice is required to be given. The address for such notices and communications shall be as follows:

If to the Company:&nbsp;&nbsp;&nbsp;&nbsp;Lincoln Bancorp

3254 Kimball Avenue

Waterloo, IA 50702

Attention: Emily Girsch

Chief Financial Officer

Email: EmilyG@mylsb.com

Facsimile: (319) 788-6697

Exhibit A \| Page 18

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With a copy to:&nbsp;&nbsp;&nbsp;&nbsp;Barack Ferrazzano Kirschbaum & Nagelberg LLP

200 West Madison Street, Suite 3900

Chicago, IL 60606

Attention: Bill Fay

Email: bill.fay@bfkn.com

Facsimile: (312) 984-3150

If to a Registration Rights Purchaser:

To the address set forth under such Registration Rights Purchaser's name on the signature page hereof or such other address as may be designated in writing hereafter, in the same manner, by such Person.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l)&nbsp;&nbsp;&nbsp;&nbsp;<u>Successors and Assigns</u>. This Agreement shall inure to the benefit of and be binding upon the successors and permitted assigns of each of the parties. Nothing in this Agreement, express or implied, is intended to confer upon any party other than the parties hereto or their respective successors and assigns any rights, remedies, obligations, or liabilities under or by reason of this Agreement, except as expressly provided in this Agreement. The Company may not assign its rights (except by merger or in connection with another entity acquiring all or substantially all of the Company's assets) or obligations hereunder without the prior written consent of all of the Holders of the then outstanding Registrable Securities. No Registration Rights Purchaser may assign its rights or obligations hereunder without the prior written consent of the Company; *provided* that the rights to have the Company register Registrable Securities pursuant to this Agreement shall be automatically assigned by any Registration Rights Purchaser to any transferee of the Shares if and only if: (i) the Registration Rights Purchaser acquires Registrable Shares with an original value as of the Closing Date of at least $5,000,000 and agrees in writing with the transferee or assignee to the assignment of such rights; (ii) the Company is, within one (1) month after such transfer or assignment, furnished with written notice of (A) the name and address of such transferee or assignee and (B) the securities with respect to which such registration rights are being transferred or assigned; and (iii) at or before the time the Company received the written notice contemplated by clause (ii) of this sentence, the transferee or assignee agrees in writing with the Company to be bound by all of the provisions contained herein with respect to a Holder or Registration Rights Purchaser. In the event of any delay in filing or effectiveness of the Registration Statement as a result of such assignment by a Registration Rights Purchaser or its transferee, the Company shall not be liable for any damages arising from such delay.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m)&nbsp;&nbsp;&nbsp;&nbsp;<u>Execution and Counterparts</u>. This Agreement may be executed in two (2) or more counterparts, each of which when so executed shall be deemed to be an original and, all of which taken together shall constitute one and the same Agreement and shall become effective when counterparts have been signed by each party and delivered to the other party, it being understood that both parties need not sign the same counterpart. In the event that any signature is delivered by facsimile transmission or by e-mail delivery of a ".pdf" format data file, such signature shall create a valid and binding obligation of the party executing (or on whose behalf such signature is executed) with the same force and effect as if such facsimile or ".pdf" signature were the original thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n)&nbsp;&nbsp;&nbsp;&nbsp;<u>Governing Law and Jurisdiction</u>. This Agreement shall be governed by and construed in accordance with the internal laws of the State of Delaware applicable to contracts made and to be performed entirely within such State. All questions concerning the construction, validity, enforcement and interpretation of this Agreement shall be determined in accordance with the provisions of the Purchase Agreement [or applicable Additional Purchase Agreement].

Exhibit A \| Page 19

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o)&nbsp;&nbsp;&nbsp;&nbsp;<u>Cumulative Remedies</u>. Except as provided in Section 2(c) with respect to Liquidated Damages, the remedies provided herein are cumulative and not exclusive of any other remedies provided by law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p)&nbsp;&nbsp;&nbsp;&nbsp;<u>Severability</u>. If any term, provision, covenant or restriction of this Agreement is held by a court of competent jurisdiction to be invalid, illegal, void or unenforceable, the remainder of the terms, provisions, covenants and restrictions set forth herein shall remain in full force and effect and shall in no way be affected, impaired or invalidated, and the parties hereto shall use their good faith reasonable efforts to find and employ an alternative means to achieve the same or substantially the same result as that contemplated by such term, provision, covenant or restriction. It is hereby stipulated and declared to be the intention of the parties that they would have executed the remaining terms, provisions, covenants and restrictions without including any of such that may be hereafter declared invalid, illegal, void or unenforceable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q)&nbsp;&nbsp;&nbsp;&nbsp;<u>Headings</u>. The headings in this Agreement are for convenience only and shall not limit or otherwise affect the meaning hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r)&nbsp;&nbsp;&nbsp;&nbsp;<u>Independent Nature of Registration Rights Purchasers' Obligations and Rights</u>. The obligations of each Registration Rights Purchaser under this Agreement are several and not joint with the obligations of any other Registration Rights Purchaser hereunder, and no Registration Rights Purchaser shall be responsible in any way for the performance of the obligations of any other Registration Rights Purchaser hereunder. The decision of each Registration Rights Purchaser to purchase the Shares pursuant to the Purchase Agreement [or applicable Additional Purchase Agreement] has been made independently of any other Registration Rights Purchaser. Nothing contained herein or in any other agreement or document delivered at any closing, and no action taken by any Registration Rights Purchaser pursuant hereto or thereto, shall be deemed to constitute the Registration Rights Purchasers as a partnership, an association, a joint venture or any other kind of entity, or create a presumption that the Registration Rights Purchasers are in any way acting in concert with respect to such obligations or the transactions contemplated by this Agreement. Each Registration Rights Purchaser acknowledges that no other Registration Rights Purchaser has acted as agent for such Registration Rights Purchaser in connection with making its investment hereunder and that no Registration Rights Purchaser will be acting as agent of such Registration Rights Purchaser in connection with monitoring its investment in the Shares or enforcing its rights under the Purchase Agreement [or applicable Additional Purchase Agreement]. Each Registration Rights Purchaser shall be entitled to protect and enforce its rights, including, without limitation, the rights arising out of this Agreement, and it shall not be necessary for any other Registration Rights Purchaser to be joined as an additional party in any Proceeding for such purpose. The Company acknowledges that each of the Registration Rights Purchasers has been provided with the same Registration Rights Agreement for the purpose of closing a transaction with multiple Registration Rights Purchasers and not because it was required or requested to do so by any Registration Rights Purchaser. It is expressly understood and agreed that each provision contained in this Agreement is between the Company and a Registration Rights Purchaser, solely, and not between the Company and the Registration Rights Purchasers collectively and not between and among the Registration Rights Purchasers.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(s)&nbsp;&nbsp;&nbsp;&nbsp;<u>Entire Agreement</u>. This Agreement and the Purchase Agreement [or applicable Additional Purchase Agreement] constitute the entire agreement among the parties hereto with respect to the subject matter hereof. There are no restrictions, promises, warranties or undertakings, other than as set forth or referred to herein and in the Purchase Agreement [or applicable Additional Purchase Agreement]. This Agreement supersedes all prior agreements and understandings among the parties hereto with respect to the subject matter hereof.

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

Exhibit A \| Page 20

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IN WITNESS WHEREOF, the parties have executed this Registration Rights Agreement as of the date first written above.

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| | |
|:---|:---|
| LINCOLN BANCORP | LINCOLN BANCORP |
| By: | By: |
| Name: | Erik Skovgard |
| Title: | Chief Executive Officer |

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[Signature Page to Registration Rights Agreement]

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IN WITNESS WHEREOF, the parties have executed this Registration Rights Agreement as of the date first written above.

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| |
|:---|
| NAME OF INVESTING ENTITY |
| AUTHORIZED SIGNATORY |
| By:&nbsp;&nbsp;&nbsp;&nbsp; <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>  |
| Name: |
| Title: |
| ADDRESS FOR NOTICE |
| c/o: <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u> |
| Street:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>  |
| City/State/Zip:<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>  |
| Attention:<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>  |
| Tel: <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>  |
| Fax: <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>  |
| E-mail:<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>  |

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[Signature Page to Registration Rights Agreement]

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**EXHIBIT B**

**ACCREDITED INVESTOR QUESTIONNAIRE**

**(ALL INFORMATION WILL BE TREATED CONFIDENTIALLY)**

To: Lincoln Bancorp

This Accredited Investor Questionnaire ("**Questionnaire**") by each potential investor in connection with the offer and sale by Lincoln Bancorp, an Iowa corporation (the "**Company**") of shares of common stock, par value $0.01 per share (the "**Common Shares**" or the "**Shares**"). The Shares are being offered and sold by the Company without registration under the Securities Act of 1933, as amended (the "**Act**"), and the securities laws of certain states, in reliance on the exemptions contained in Section 4(a)(2) of the Act and on Regulation D promulgated thereunder and in reliance on similar exemptions under applicable state laws. The Company must determine that a potential investor meets certain suitability requirements before offering or selling Shares to such investor. The purpose of this Questionnaire is to assure the Company that each investor will meet the applicable suitability requirements. The information supplied by you will be used in determining whether you meet such criteria, and reliance upon the private offering exemptions from registration is based in part on the information herein supplied.

This Questionnaire does not constitute an offer to sell or a solicitation of an offer to buy any security. Your answers will be kept strictly confidential. However, by signing this Questionnaire, you will be authorizing the Company to provide a completed copy of this Questionnaire to such parties as the Company deems appropriate in order to ensure that the offer and sale of the Shares will not result in a violation of the Act or the securities laws of any state and that you otherwise satisfy the suitability standards applicable to purchasers of the Shares. Please print or type all responses and attach additional sheets of paper if necessary to complete answers to any item.

PART A. **BACKGROUND INFORMATION**

Name of Beneficial Owner of the Shares:____________________________________________________

Business Address:______________________________________________________________________

(Number and Street)

 <br> (City) (State) (Zip Code)

Telephone Number: ()__________________________________________________________________

__________________________________________________________________

***If a corporation, partnership, limited liability company, trust or other entity***:

Type of entity:_________________________________________________________________________

Were you formed for the purpose of investing in the securities being offered?

Yes ⬜ No ⬜

***If an individual***:

Residential Address:____________________________________________________________________

(Number and Street)

Exhibit B \| Page 1

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 <br> (City) (State) (Zip Code)

Telephone Number: ()__________________________________________________________________

__________________________________________________________________

Age: ________________ Citizenship: _________________ Where registered to vote: _______________

Set forth in the space provided below the state(s), if any, in the United States in which you maintained your residence during the past two years and the dates during which you resided in each state:__________

_____________________________________________________________________________________

_____________________________________________________________________________________

Are you a director or executive officer of the Company?

Yes ⬜ No ⬜

Social Security or Taxpayer Identification No.________________________________________________

________________________________________________

PART B.&nbsp;&nbsp;&nbsp;&nbsp;**ACCREDITED INVESTOR QUESTIONNAIRE**

In order for the Company to offer and sell the Shares in conformance with state and federal securities laws, the following information must be obtained regarding your investor status. Please *initial each category* applicable to you as a Purchaser of Shares.

1. A bank as defined in Section 3(a)(2) of the Securities Act, or any savings and loan association or other institution as defined in Section 3(a)(5)(A) of the Securities Act whether acting in its individual or fiduciary capacity;

2. A broker or dealer registered pursuant to Section 15 of the Securities Exchange Act of 1934;

3. An insurance company as defined in Section 2(a)(13) of the Securities Act;

4. An investment company registered under the Investment Company Act of 1940 or a business development company as defined in Section 2(a)(48) of that Act;

5. A Small Business Investment Company licensed by the U.S. Small Business Administration under Section 301(c) or (d) of the Small Business Investment Act of 1958;

6. A plan established and maintained by a state, its political subdivisions, or any agency or instrumentality of a state or its political subdivisions, for the benefit of its employees, if such plan has total assets in excess of $5,000,000;

7. An employee benefit plan within the meaning of the Employee Retirement Income Security Act of 1974, if the investment decision is made by a plan fiduciary, as defined in Section 3(21) of such act, which is either a bank, savings and loan association, insurance company, or registered investment adviser, or if the employee benefit plan has total assets in excess of $5,000,000 or, if a self-directed plan, with investment decisions made solely by persons that are accredited investors;

8. A private business development company as defined in Section 202(a)(22) of the Investment Advisers Act of 1940;

Exhibit B \| Page 2

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9. An organization described in Section 501(c)(3) of the Internal Revenue Code, corporation, Massachusetts or similar business trust, or partnership, not formed for the specific purpose of acquiring the Shares, with total assets in excess of $5,000,000;

10. A trust, with total assets in excess of $5,000,000, not formed for the specific purpose of acquiring the Shares, whose purchase is directed by a sophisticated person who has such knowledge and experience in financial and business matters that such person is capable of evaluating the merits and risks of investing in the Company;

11. A natural person whose individual net worth, or joint net worth with that person's spouse, at the time of his or her purchase exceeds $1,000,000 (*see* Note **11** below);

12. A natural person who had an individual income in excess of $200,000 in each of the two most recent years, or joint income with that person's spouse in excess of $300,000 in each of those years, and has a reasonable expectation of reaching the same income level in the current year;

13. An executive officer or director of the Company; and

14. An entity in which all of the equity owners qualify under any of the above subparagraphs. If the undersigned belongs to this investor category only, list the equity owners of the undersigned, and the investor category which each such equity owner satisfies.

**Note 11.&nbsp;&nbsp;&nbsp;&nbsp;**For purposes of calculating net worth under paragraph (11):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A)&nbsp;&nbsp;&nbsp;&nbsp;The person's primary residence shall not be included as an asset;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B)&nbsp;&nbsp;&nbsp;&nbsp;Indebtedness that is secured by the person's primary residence, up to the estimated fair market value of the primary residence at the time of the sale of securities, shall not be included as a liability (except that if the amount of such indebtedness outstanding at the time of sale of securities exceeds the amount outstanding sixty (60) days before such time, other than as a result of the acquisition of the primary residence, the amount of such excess shall be included as a liability); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C)&nbsp;&nbsp;&nbsp;&nbsp;Indebtedness that is secured by the person's primary residence in excess of the estimated fair market value of the primary residence at the time of the sale of securities shall be included as a liability.

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

Exhibit B \| Page 3

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**A.&nbsp;&nbsp;&nbsp;&nbsp;FOR EXECUTION BY AN INDIVIDUAL:**

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| | |
|:---|:---|
| | By |
| Date | |
| | Print Name: |

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**B.&nbsp;&nbsp;&nbsp;&nbsp;FOR EXECUTION BY AN ENTITY:**

---

| | |
|:---|:---|
| | Entity Name: |
| | By |
| Date | |
| | Print Name: |
| | Title: |

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**C.&nbsp;&nbsp;&nbsp;&nbsp;ADDITIONAL SIGNATURES (if required by partnership, corporation or trust document):**

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| | |
|:---|:---|
| | Entity Name: |
| | By |
| Date | |
| | Print Name: |
| | Title: |
| | By |
| Date | |
| | Print Name: |
| | Title: |

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[Signature Page to Accredited Investor Questionnaire]

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**EXHIBIT C**

**FORM OF OPINION OF COMPANY COUNSEL**

1.&nbsp;&nbsp;&nbsp;&nbsp;The Company validly exists as a corporation in good standing under the laws of the State of Iowa.

2.&nbsp;&nbsp;&nbsp;&nbsp;The Company has the corporate power and authority to execute and deliver and to perform its obligations under the Transaction Documents, including, without limitation, to issue the Shares.

3.&nbsp;&nbsp;&nbsp;&nbsp;The Company is a registered bank holding company under the Bank Holding Company Act of 1956, as amended.

4.&nbsp;&nbsp;&nbsp;&nbsp;The deposit accounts of the Bank are insured by the Federal Deposit Insurance Corporation under the provisions of the Federal Deposit Insurance Act.

5.&nbsp;&nbsp;&nbsp;&nbsp;Each of the Transaction Documents has been duly authorized, executed, and delivered by the Company and, assuming due authorization, execution, and delivery by the Purchasers (to the extent they are a party), each of the Transaction Documents constitutes a valid and binding agreement of the Company, enforceable against the Company in accordance with its terms, subject to the Enforceability Limitations.<sup>I</sup>

6.&nbsp;&nbsp;&nbsp;&nbsp;The execution and delivery by the Company of each of the Transaction Documents and the performance by the Company of its obligations under such agreements, including its issuance and sale of the Shares, do not and will not: (a) require any consent, approval, license or exemption by, order or authorization of, or filing, recording, or registration by the Company with any federal or state governmental authority, except (1) as may be required by federal securities laws with respect to the Company's obligations under the Registration Rights Agreement, (2) the filing of Form D pursuant to the United States Securities and Exchange Commission Regulation D, and (3) the filings required in accordance with Section 4.4 of the Stock Purchase Agreement, (b) violate any federal or state statute, rule, or regulation, or any rule or regulation of any Governmental Entity, or any court order, judgment, or decree, if any, listed in <u>Exhibit A</u> hereto, which exhibit lists all court orders, judgments, and decrees that the Company has certified to us are applicable to it, or (c) result in any violation of the Articles of Incorporation or Bylaws of the Company.

7.&nbsp;&nbsp;&nbsp;&nbsp;Assuming the accuracy of the representations, warranties, and compliance with the covenants and agreements of the Purchasers and the Company contained in the Stock Purchase Agreement, it is not necessary, in connection with the offer, sale, and delivery of the Shares to the Purchasers to register the Shares under the Securities Act.

8.&nbsp;&nbsp;&nbsp;&nbsp;The Shares being delivered to the Purchasers pursuant to the Stock Purchase Agreement have been duly and validly authorized and, when issued, delivered, and paid for as contemplated in the Stock Purchase Agreement, will be duly and validly issued, fully paid and non-assessable, and free of any preemptive right or similar rights contained in the Company's Articles of Incorporation or Bylaws.

<sup>I</sup> Note to draft: Enforceability Limitations will include customary enforceability exceptions, as well as the enforceability of the preemptive rights.

Exhibit C \| Page 1

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**EXHIBIT D**

**FORM OF SECRETARY'S CERTIFICATE**

The undersigned hereby certifies that he is the duly elected, qualified and acting Secretary of Lincoln Bancorp, an Iowa corporation (the "**Company**"), and that as such he is authorized to execute and deliver this certificate in the name and on behalf of the Company in connection with the Stock Purchase Agreement, dated as of October 22, 2018, by and among the Company and the investors party thereto (the "**Purchase Agreement**"), and further certifies in his official capacity, in the name and on behalf of the Company, the items set forth below. Capitalized terms used but not otherwise defined herein shall have the meaning set forth in the Purchase Agreement.

1.&nbsp;&nbsp;&nbsp;&nbsp;Attached hereto as <u>Exhibit A</u> is a true, correct and complete copy of the resolutions duly adopted by the Board of Directors of the Company by written consent on October 18, 2018. Such resolutions have not in any way been amended, modified, revoked or rescinded, have been in full force and effect since their adoption to and including the date hereof and are now in full force and effect.

2.&nbsp;&nbsp;&nbsp;&nbsp;Attached hereto as <u>Exhibit B</u> is a true, correct and complete copy of the Restated Articles of Incorporation of the Company, together with any and all amendments thereto as in effect on the date hereof.

3.&nbsp;&nbsp;&nbsp;&nbsp;Attached hereto as <u>Exhibit C</u> is a true, correct and complete copy of the bylaws of the Company and any and all amendments thereto as in effect on the date hereof.

4.&nbsp;&nbsp;&nbsp;&nbsp;Each person listed below has been duly elected or appointed to the position(s) indicated opposite his name and is duly authorized to sign the Purchase Agreement and each of the Transaction Documents on behalf of the Company, and the signature appearing opposite such person's name below is such person's genuine signature.

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|:---|:---|:---|
| **Name** | **Position** | **Signature** |

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**IN WITNESS WHEREOF**, the undersigned has hereunto set his hand as of this [•] day of [•], 2018.

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| [&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ] |
| Secretary |

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I, Erik Skovgard, Chief Executive Officer, hereby certify that [___________] is the duly elected, qualified, and acting Secretary of the Company and that the signature set forth above is his true signature.

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|:---|
| Erik Skovgard |
| Chief Executive Officer |

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Exhibit D \| Page 1

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**EXHIBIT E**

**FORM OF OFFICER'S CERTIFICATE**

The undersigned, the Chief Executive Officer of Lincoln Bancorp, an Iowa corporation (the "**Company**"), pursuant to Section 2.2(a)(vi) of the Stock Purchase Agreement, dated as of October 22, 2018, by and among the Company and the investors signatory thereto (the "**Purchase Agreement**"), hereby represents, warrants and certifies as follows (capitalized terms used but not otherwise defined herein shall have the meaning set forth in the Purchase Agreement):

1.&nbsp;&nbsp;&nbsp;&nbsp;The representations and warranties of the Company contained in the Purchase Agreement are true and correct in all material respects (except to the extent such representations and warranties are qualified by materiality, in which case they are true and correct in all respects) as of the date when made and as of the Closing Date, as though made on and as of such date, except for such representations and warranties that speak as of a specific date.

2.&nbsp;&nbsp;&nbsp;&nbsp;The Company has performed, satisfied and complied in all material respects with those covenants and agreements required by the Transaction Documents to be performed, satisfied or complied with by it at or prior to the Closing.

3.&nbsp;&nbsp;&nbsp;&nbsp;Since the date of the Purchase Agreement, there has not occurred any circumstance, event, change, development or effect that, individually or in the aggregate, has had or could reasonably be expected to have a Material Adverse Effect on the Company or the Bank.

**IN WITNESS WHEREOF**, the undersigned has executed this certificate this [•] day of [•], 2018.

  <br> Erik Skovgard

Exhibit E \| Page 1

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**EXHIBIT F**

**FORM OF VCOC LETTER AGREEMENT**

**LINCOLN BANCORP**

**3254 KIMBALL AVENUE**

**WATERLOO, IA 50702**

[✯], 2018

Castle Creek Capital Partners VII, L.P.

6051 El Tordo

Rancho Santa Fe, CA 92091

Dear Sir/Madam:

Reference is made to the Stock Purchase Agreement by and between among Lincoln Bancorp, an Iowa corporation (the "**Corporation**") and the investors party thereto, including Castle Creek Capital Partners VII, L.P., a Delaware limited partnership (the "**VCOC Investor**"), dated as of October 22, 2018 (the "**Stock Purchase Agreement**"), pursuant to which the VCOC Investor agreed to purchase from the Corporation shares of its voting common stock, $0.01 par value per share (the "**Common Stock**"). Capitalized terms used herein without definition shall have the respective meanings in the Stock Purchase Agreement

For good and valuable consideration acknowledged to have been received, the Corporation hereby agrees that it shall:

✯&nbsp;&nbsp;&nbsp;&nbsp;For so long as the VCOC Investor, directly or through one or more Affiliates, continues to hold any Common Stock, provide the VCOC Investor or its designated representative with the governance rights set forth in the Stock Purchase Agreement;

✯&nbsp;&nbsp;&nbsp;&nbsp;For so long as the VCOC Investor, directly or through one or more Affiliates, continues to hold any Common Stock, without limitation or prejudice of any of the rights provided to the VCOC Investor under the Stock Purchase Agreement or any other agreement or otherwise, provide the VCOC Investor or its designated representative with:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;the right to visit and inspect any of the offices and properties of the Corporation and its subsidiaries and inspect the books and records of the Corporation and its subsidiaries at such times as the VCOC Investor shall reasonably request upon three (3) Business Days' notice but not more frequently than once per calendar quarter, provided, however, that such rights shall not extend to confidential bank supervisory communications, customer financial records or other "exempt records" as defined by 12 C.F.R. Part 309, or reports of examination of any national or state chartered insured bank, which information may only be disclosed by the Corporation or any subsidiary of the Corporation in accordance with the provisions and subject to the limitations of applicable law or regulation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp;consolidated balance sheets and statements of income and cash flows of the Corporation and its subsidiaries prepared in conformity with generally accepted accounting principles in the United States applied on a consistent basis (A) as of the end of each quarter of each fiscal year of the Corporation as soon as practicable after preparation thereof but in no event later than ninety (90) days after the end of such quarter, and (B) with respect to each fiscal year end statement, as

Exhibit F \| Page 1

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soon as practicable after preparation thereof but in no event later than one hundred and twenty (120) days after the end of such fiscal year together with an auditor's report thereon of a firm of established national reputation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;&nbsp;&nbsp;&nbsp;to the extent the Corporation or any of its subsidiaries is required by law or pursuant to the terms of any outstanding indebtedness of the Corporation or any subsidiary to prepare such reports, any annual reports, quarterly reports and other periodic reports pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 or otherwise, actually prepared by the Corporation or any of its subsidiaries as soon as available;

<u>provided</u>, <u>that</u>, in each case, if the Corporation makes the information described in clauses (ii) and (iii)of this bullet point available through public filings on the EDGAR system or any successor or replacement system of the United States Securities and Exchange Commission, the delivery of the information shall be deemed satisfied by such public filings.

ó&nbsp;&nbsp;&nbsp;&nbsp;For so long as the VCOC Investor, directly or through one or more Affiliates, continues to hold any Common Stock, if at any time the VCOC Investor no longer has a Board Representative serving on the Board:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;provide the VCOC Investor with copies of all materials provided to the Board at the same time as provided to the directors of the Corporation and if requested, copies of all materials provided to the boards of directors of the Company's subsidiaries; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp;inform the VCOC Investor or its designated representative in advance with respect to any significant corporate actions, including, without limitation, extraordinary dividends, mergers, acquisitions or dispositions of assets, issuances of significant amounts of debt or equity and material amendments to the certificate of incorporation or by laws of the Corporation or any of its subsidiaries, and provide the VCOC Investor or its designated representative with the right to consult with the Corporation and its subsidiaries with respect to such actions;

<u>provided</u>, that nothing in this letter agreement shall require the Corporation to provide or disclose any confidential supervisory information (as defined in 12 C.F.R. Part 261), information which is related to a pending or ongoing regulatory exam or which is subject to attorney-client privilege.

ó&nbsp;&nbsp;&nbsp;&nbsp;Make appropriate officers and directors of the Corporation, and its subsidiaries, available periodically and at such times as reasonably requested by the VCOC Investor for consultation with the VCOC Investor or its designated representative, but not more frequently than once per calendar quarter, with respect to matters relating to the business and affairs of the Corporation and its subsidiaries; and

ó&nbsp;&nbsp;&nbsp;&nbsp;If the VCOC Investor's regular outside counsel determines in writing that other rights of consultation are reasonably necessary under applicable legal authorities promulgated after the date of this agreement to preserve the qualification of VCOC Investor's investment in the Corporation as a "venture capital investment" for purposes of the United States Department of Labor Regulation published at 29 C.F.R. Section 2510.3-101(d)(3)(i) (the "**Plan Asset Regulation**"), the Corporation agrees to cooperate in good faith with the VCOC Investor to amend this letter agreement to reflect such other rights that are mutually satisfactory to the Corporation and the VCOC Investor and consistent with the Federal Reserve Policy Statement on Equity Investments in Banks and Bank Holding Companies; provided that such consultation rights shall be limited to once per calendar quarter.

Exhibit F \| Page 2

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The Corporation agrees to consider, in good faith, the recommendations of the VCOC Investor or its designated representative in connection with the matters on which it is consulted as described above, recognizing that the ultimate discretion with respect to all such matters shall be retained by the Corporation.

The VCOC Investor agrees, and will require each designated representative of the VCOC Investor to agree, to hold in confidence and not use or disclose to any third party (other than its legal counsel and accountants) any confidential information provided to or learned by such party in connection with the VCOC Investor's rights under this letter agreement except as may otherwise be required by law or legal, judicial or regulatory process, provided that the VCOC Investor takes reasonable steps to minimize the extent of any such required disclosure.

In the event the VCOC Investor transfers all or any portion of its investment in the Corporation to an affiliated entity (or to a direct or indirect wholly-owned conduit subsidiary of any such affiliated entity) that is intended to qualify as a venture capital operating company under the Plan Asset Regulation, such affiliated entity shall be afforded the same rights that the Corporation has afforded to the VCOC Investor hereunder and shall be treated, for such purposes, as a third party beneficiary hereunder.

The rights of the VCOC Investor under this letter agreement are unique to the VCOC Investor and shall not be assignable or transferrable other than to an affiliated entity that is intended to qualify as a venture capital operating company under the Plan Asset Regulation.

This letter agreement and the rights and the duties of the parties hereto shall be governed by, and construed in accordance with, the laws of the State of New York and may be executed in counterparts, each of which when so executed shall be deemed to be an original and all of which taken together shall constitute one and the same instrument.

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

Exhibit F \| Page 3

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**IN WITNESS WHEREOF**, the parties have executed this letter agreement as of the date first above written.

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|:---|
| **LINCOLN BANCORP** |
| By: |
| Name: |
| Title: |

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Agreed and acknowledged as of the date first above written:

**CASTLE CREEK CAPITAL PARTNERS VII, L.P.**

By: Castle Creek Capital VII LLC, its general partner

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|:---|:---|
| By: |  |
|  | Name: |
|  | Title: |

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[Signature Page to VCOC Letter Agreement]

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IN WITNESS WHEREOF, the parties hereto have caused this Securities Purchase Agreement to be duly executed by their respective authorized signatories as of the date first indicated above.

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| | |
|:---|:---|
| LINCOLN BANCORP | LINCOLN BANCORP |
| By: /s/ Erik Skovgard | By: /s/ Erik Skovgard |
| Name: | Erik Skovgard |
| Title: | Chief Executive Officer |

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[Signature Page to Stock Purchase Agreement]

## Exhibit 10.2

**Exhibit 10.2**

**LINCOLN BANCORP**

**REGISTRATION RIGHTS AGREEMENT**

This Registration Rights Agreement (this "Agreement") is made and entered into as of December 4, 2018, by and among Lincoln Bancorp, an Iowa corporation (the <u>"Compan</u>y"), and the purchaser(s) signatory hereto (each a "<u>Registration Rights Purchaser</u>" and collectively, the "<u>Registration</u> <u>Rights Purchasers</u>").

This Agreement is made pursuant to the Stock Purchase Agreement, dated as of October 22, 2018, between the Company and Castle Creek Capital Partners VII, L.P. (the "<u>Purchase Agreement</u>") and the Stock Purchase Agreement, dated as of November 26, 2018, between the Company and the other Registration Rights Purchaser (the "<u>Additional Purchase Agreement</u>").

NOW, THEREFORE, in consideration of the mutual covenants contained in this Agreement, and for other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the Company and each of the Registration Rights Purchasers agree as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.&nbsp;&nbsp;&nbsp;&nbsp;<u>Definitions</u>. Capitalized terms used and not otherwise defined herein that are defined in

the Purchase Agreement shall have the meanings given such terms in the Purchase Agreement. As used in this Agreement, the following terms shall have the following meanings:

"<u>Advice</u>" shall have the meaning set forth in Section 8(h).

"<u>Affiliate</u>" means, with respect to any Person, any other Person that directly or indirectly controls, is controlled by, or is under common control with, such Person.

"<u>Agreement</u>" shall have the meaning set forth in the Preamble.

"<u>Allowable Grace Period</u>" shall have the meaning set forth in Section 5(d).

"<u>Business Day</u>" means a day other than a Saturday or Sunday or other day on which banks located in Iowa are authorized or required by law to close.

"<u>Capital Stock</u>" means, with respect to any Person at any time, any and all shares, interests, participations or other equivalents (however designated, whether voting or non-voting) of capital stock, securities convertible into or exchangeable or exercise able for any of its shares, interests, participations or other equivalents, partnership interests (whether general or limited), limited liability company interests, or equivalent ownership interests in or issued by such Person.

"<u>Closing Date</u>" has the meaning set forth in the Purchase Agreement.

"<u>Commission</u>" means the United States Securities and Exchange Commission.

"<u>Common Stock</u>" means the voting common stock of the Company, par value $0.01 per share, and any securities into which such shares of voting common stock may hereinafter be reclassified.

"<u>Company</u>" shall have the meaning set forth in the Preamble.

"<u>Effective Date</u>" means the date that the Registration Statement filed pursuant to Section 2(a) is first declared effective by the Commission.

"<u>Effectiveness Deadline</u>" means, with respect to the Initial Registration Statement or the New Registration Statement, the fifth (5th) Trading Day after the date the Company is notified (orally or in

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writing, whichever is earlier) by the Commission that such Registration Statement will not be "reviewed" or will not be subject to further review; provided, that if the Effectiveness Deadline falls on a Saturday, Sunday or other day that the Commission is closed for business, the Effectiveness Deadline shall be extended to the next Business Day on which the Commission is open for business.

"<u>Effectiveness Period</u>" shall have the meaning set forth in Section 2(b).

"<u>Event</u>" shall have the meaning set forth in Section 2(c).

"<u>Event Date</u>" shall have the meaning set forth in Section 2(c).

"<u>Exchange Act</u>" means the Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder.

"<u>Filing Deadline</u>" means, with respect to the Initial Registration Statement required to be filed pursuant to Section 2(a), the date that is the fifth (5th) anniversary of the Closing Date, provided, that if the Filing Deadline falls on a Saturday, Sunday or other day that the Commission is closed for business, the Filing Deadline shall be extended to the next Business Day on which the Commission is open for business.

"<u>FINRA</u>" shall have the meaning set forth in Section 5(n).

"<u>Grace Period</u>" shall have the meaning set forth in Section 5(d).

"<u>Holder</u>" or "<u>Holders</u>" means the holder or holders, as the case may be, from time to time of Registrable Securities.

"<u>Holders Counsel</u>" shall have the meaning set forth in Section 5(a).

"<u>Indemnified Party</u>" shall have the meaning set forth in Section 7(c).

"<u>Indemnifying Party</u>" shall have the meaning set forth in Section 7(c).

"<u>Initial Registration Statement</u>" means shall have the meaning set forth in Section 2(a).

"<u>Liquidated Damages</u>" shall have the meaning set forth in Section 2(c).

"<u>Losses</u>" shall have the meaning set forth in Section 7(a).

"<u>New Registration Statement</u>" shall have the meaning set forth in Section 2(a).

"<u>Non-Responsive Holder</u>" shall have the meaning set forth in Section 8(d).

"<u>Other Securities</u>" means shares of Common Stock, Class B Common Stock, Series A Preferred Stock, Series B Preferred Stock, Series C Preferred Stock or shares of other Capital Stock of the Company which are entitled to registration rights contractually or under the Company's articles of incorporation, or Capital Stock which the Company is registering pursuant to a Registration Statement.

"<u>Person</u>" means an individual or corporation, partnership, trust, incorporated or unincorporated association, joint venture, limited liability company, joint stock company, government (or an agency or subdivision thereof) or other entity of any kind.

"<u>Piggyback Registration</u>" shall have the meaning set forth in Section 3(a).

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"<u>Principal Market</u>" means the Trading Market on which the Common Stock is primarily listed on and quoted for trading.

"<u>Proceeding</u>" means an action, claim, suit, investigation or proceeding (including, without limitation, an investigation or partial proceeding, such as a deposition), whether commenced or threatened.

"<u>Prospectus</u>" means the prospectus included in a Registration Statement (including, without limitation, a prospectus that includes any information previously omitted from a prospectus filed as part of an effective registration statement in reliance upon Rule 430A promulgated under the Securities Act), as amended or supplemented by any prospectus supplement, with respect to the terms of the offering of any portion of the Registrable Securities covered by a Registration Statement, and all other amendments and supplements to the Prospectus, including post-effective amendments, and all material incorporated by reference or deemed to be incorporated by reference in such Prospectus.

"<u>Purchase Agreement</u>" shall have the meaning set forth in the Recitals.

"<u>Registrable Securities</u>" means all of the Shares and any securities issued or issuable upon any stock split, dividend or other distribution, recapitalization or similar event with respect to the Shares, provided that Shares shall cease to be Registrable Securities upon the earliest to occur of the following: (A) a sale pursuant to a Registration Statement; (B) becoming eligible for sale without time, volume or manner of sale restrictions by the Holders under Rule 144; or (C) if such Shares have ceased to be outstanding.

"<u>Registration Rights Purchaser</u>" or "<u>Registration Rights Purchasers</u>" shall have the meaning set forth in the Preamble.

"<u>Registration Statements</u>" means any one or more registration statements of the Company filed under the Securities Act that covers the resale of any of the Registrable Securities pursuant to the provisions of this Agreement (including without limitation the Initial Registration Statement, the New Registration Statement and any Remainder Registration Statements), amendments and supplements to such Registration Statements, including post-effective amendments, all exhibits and all material incorporated by reference or deemed to be incorporated by reference in such Registration Statements.

"<u>Remainder Registration Statement</u>" shall have the meaning set forth in Section 2(a).

"<u>Requested Information</u>" shall have the meaning set forth in Section 8(d).

"<u>Required Registration Statement</u>" means any Initial Registration Statement, New Registration Statement or Remainder Registration Statement.

"<u>Rule 144</u>" means Rule 144 promulgated by the Commission pursuant to the Securities Act, as such Rule may be amended from time to time, or any successor rule thereto.

"<u>Rule 144A</u>" means Rule 144A promulgated by the Commission pursuant to the Securities Act, as such Rule may be amended from time to time, or any successor rule thereto.

"<u>Rule 415</u>" means Rule 415 promulgated by the Commission pursuant to the Securities Act, as such Rule may be amended from time to time, or any successor rule thereto.

"<u>Rule 424</u>" means Rule 424 promulgated by the Commission pursuant to the Securities Act, as such Rule may be amended from time to time, or any successor rule thereto.

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"<u>SEC Guidance</u>" means (i) any publicly-available written guidance, comments, requirements or requests of the Commission staff and (ii) the Securities Act.

"<u>Securities Act</u>" means the Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder.

"<u>Shares</u>" means the shares of Common Stock issued to the Registration Rights Purchasers pursuant to the Purchase Agreement or any Additional Purchase Agreements.

"<u>Shelf Offering</u>" shall have the meaning set forth in Section 4(a).

"<u>Take-Down Notice</u>" shall have the meaning set forth in Section 4(a).

"<u>Trading Day</u>" means (i) a day on which the Common Stock is listed or quoted and traded on its Principal Market (other than the OTC Bulletin Board), or (ii) if the Common Stock is not listed on a Trading Market (other than the OTC Bulletin Board), a day on which the Common Stock is traded in the over-the-counter market, as reported by the OTC Bulletin Board, or (iii) if the Common Stock is not quoted on any Trading Market, a day on which the Common Stock is quoted in the over-the-counter market as reported in the "pink sheets" by OTC Markets Group, Inc. (or any similar organization or agency succeeding to its functions of reporting prices); provided, that in the event that the Common Stock is not listed or quoted as set forth in (i), (ii) and (iii) hereof, then Trading Day shall mean a Business Day.

"<u>Trading Market</u>" means whichever of the New York Stock Exchange, the NYSE MKT, the Nasdaq Global Select Market, the Nasdaq Global Market, the Nasdaq Capital Market or OTC Bulletin Board on which the Common Stock is listed or quoted for trading on the date in question.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.&nbsp;&nbsp;&nbsp;&nbsp;<u>Mandatory Registration</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;On or prior to the Filing Deadline, if requested in writing by Castle Creek, the Company shall prepare and file with the Commission a Registration Statement covering the resale of all of the Registrable Securities not already covered by an existing and effective Registration Statement for an offering to be made on a continuous basis pursuant to Rule 415 or, if Rule 415 is not available for offers and sales of the Registrable Securities, by such other means of distribution of Registrable Securities as the Company may reasonably determine (the "<u>Initial Registration Statement</u>"). Notwithstanding the registration obligations set forth in this Section 2, in the event that (i) the Company's counsel determines that all such Registrable Securities cannot, as a result of the application of Rule 415, be registered for resale as a secondary offering on a single registration statement prior to filing the Initial Registration Statement, or (ii) the Commission informs the Company that all such Registrable Securities cannot, as a result of the application of Rule 415, be registered for resale as a secondary offering on a single registration statement, the Company agrees to promptly (A) inform each of the Holders thereof and, as applicable, file the Initial Registration Statement, or use its reasonable best efforts to file amendments to the Initial Registration Statement as required by the Commission and/or (B) withdraw the Initial

Registration Statement and file a new registration statement (a "<u>New Registration Statement</u>"), in each case covering the maximum number of such Registrable Securities permitted to be registered thereon, on such form available to the Company to register for resale the Registrable Securities as a secondary offering; provided, that in the case of (ii) above, prior to filing such amendment or New Registration Statement, the Company shall be obligated to use its reasonable best efforts to advocate with the Commission for the registration of all of the Registrable Securities in accordance with the SEC Guidance, including without limitation, Securities Act Rules Compliance and Disclosure Interpretation 612.09, or any successor thereto. Notwithstanding any other provision of this Agreement, if the opinion of the

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Company's counsel or any SEC Guidance sets forth a limitation of the number of Registrable Securities permitted to be registered on a particular Registration Statement as a secondary offering (and, in the case of clause (ii) above, notwithstanding that the Company used reasonable best efforts to reasonably advocate with the Commission for the registration of all or a greater number of Registrable Securities), the number of Registrable Securities to be registered on such Registration Statement will be reduced on a pro rata on the basis of the aggregate number of Registrable Securities owned by each applicable Holder, and under such circumstances, the Company will not be subject to the payment of Liquidated Damages in Section 2(c). In the event the Company amends the Initial Registration Statement or files a New Registration Statement, as the case may be, under clauses (A) or (B) above, the Company will use its reasonable best efforts to file with the Commission, as promptly as allowed by Commission or SEC Guidance provided to the Company or to registrants of securities in general, one or more registration statements on such form available to the Company to register for resale those Registrable Securities that were not registered for resale on the Initial Registration Statement, as amended, or the New Registration Statement (the "<u>Remainder Registration</u> <u>Statements</u>"). No Holder shall be named as an "underwriter" in any Registration Statement without such Holder's prior written consent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;The Company shall use its reasonable best efforts to cause each Required Registration Statement to be declared effective by the Commission as soon as practicable, and, with respect to the Initial Registration Statement or the New Registration Statement, as applicable, no later than the Effectiveness Deadline, and shall use its reasonable best efforts to keep each Required Registration Statement continuously effective under the Securities Act until the earlier of (i) such time as all of the Registrable Securities covered by such Required Registration Statement have been publicly sold by the Holders or (ii) the date that all Registrable Securities covered by such Required Registration Statement may be sold by the Holders without volume or manner of sale restrictions under Rule 144, as determined by counsel to the Company pursuant to a written opinion letter to such effect, addressed and reasonably acceptable to the Company's transfer agent (the "<u>Effectiveness Period</u>"). The Company shall request effectiveness of a Required Registration Statement as of 5:00 p.m., New York City time, on a Trading Day. The Company shall promptly notify the Holders via facsimile or electronic mail of a ".pdf" format data file of the effectiveness of a Registration Statement within one (1) Business Day of the Effective Date. The Company shall file a final Prospectus for a Required Registration Statement with the Commission, as required by Rule 424(b) as promptly as reasonably practicable following the Effective Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;If: (i) the Initial Registration Statement is not filed with the Commission on or prior to the Filing Deadline, (ii) the Initial Registration Statement or the New Registration Statement, as applicable, is not declared effective by the Commission (or otherwise does not become effective) for any reason on or prior to the Effectiveness Deadline, or (iii) after its Effective Date, (A) such Registration Statement ceases to be effective for any reason (including without limitation by reason of a stop order, or the Company's failure to update the Registration Statement), to remain continuously effective as to all Registrable Securities for which it is required to be effective, or (B) the Holders are not permitted to utilize the Prospectus therein to resell such Registrable Securities (other than during an Allowable Grace Period), (iv) a Grace Period applicable to a Required Registration Statement exceeds the length of an Allowable Grace Period, or (v) after the Filing Deadline, and only in the event a Registration Statement is not effective or available to sell all Registrable Securities, the Holders are unable to sell Registrable Securities without restriction under Rule 144, (any such failure or breach in clauses (i) through (v) above being referred to as an "<u>Event</u>," and, for purposes of clauses (i), (ii), (iii) or (v), the date on which such Event occurs, or for purposes of clause (iv) the date on which such Allowable Grace Period is exceeded, being referred to as an "<u>Event Date</u>"), then in addition to any other rights the Holders may have hereunder or under applicable law, on each such Event Date and on each monthly anniversary of each such Event

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Date (if the applicable Event shall not have been cured by such date) until the applicable Event is cured, the Company shall pay to each Holder an amount in cash or shares of Common Stock or Non-Voting Common Stock, as appropriate, at the election of the Holder, as liquidated damages and not as a penalty ("<u>Liquidated</u> <u>Damages</u>"), equal to 3.0% of the aggregate purchase price paid by such Holder pursuant to the Purchase Agreement or Additional Purchase Agreement for any Registrable Securities held by such Holder on the Event Date, which shall be paid on no more than one (1) occasion and shall be the Holders' sole remedy for any such breaches. The parties agree that notwithstanding anything to the contrary herein or in the Purchase Agreement or Additional Purchase Agreement, no Liquidated Damages shall be payable (i) if as of the relevant Event Date, the Registrable Securities may be sold by the Holders without volume or manner of sale restrictions under Rule 144, as determined by counsel to the Company pursuant to a written opinion letter to such effect, addressed and reasonably acceptable to the Company's transfer agent, (ii) to a Holder causing an Event that relates to or is caused by any action or inaction taken by such Holder, (iii) to a Holder in the event it is unable to lawfully sell any of its Registrable Securities (including, without limitation, in the event a Grace Period exceeds the length of an Allowable Grace Period) because of possession of material non-public information or (iv) with respect to any period after the expiration of the Effectiveness Period (it being understood that this clause shall not relieve the Company of any Liquidated Damages accruing prior to the expiration of the Effectiveness Period). If the Company fails to pay any Liquidated Damages pursuant to this Section 2(c) in full within ten (10) Business Days after the date payable, the Company will pay interest on the amount of Liquidated Damages then owing to the Holder at a rate of 1.0% per month on an annualized basis (or such lesser maximum amount that is permitted to be paid by applicable law) to the Holder, accruing daily from the date such Liquidated Damages are due until such amounts, plus all such interest thereon, are paid in full. The Liquidated Damages pursuant to the terms hereof shall apply on a daily pro-rata basis for any portion of a month prior to the cure of an Event, except in the case of the first Event Date. With respect to a Holder, the Effectiveness Deadline for a Required Registration Statement shall be extended without default or Liquidated Damages hereunder in the event that the Company's failure to obtain the effectiveness of the Registration Statement on a timely basis results from the failure of such Holder to timely provide the Company with information requested by the Company and necessary to complete the Registration Statement in accordance with the requirements of the Securities Act (in which case the Effectiveness Deadline would be extended with respect to Registrable Securities held by such Registration Rights Purchaser).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.&nbsp;&nbsp;&nbsp;&nbsp;<u>Piggyback Registration</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;If the Company intends to file a Registration Statement covering a primary or secondary offering of any of its Common Stock or Other Securities, whether or not the sale for its own account, which is not a registration solely to implement an employee benefit plan pursuant to a registration statement on Form S-8 (or successor form), a registration statement on Form S-4 (or successor form) or a transaction to which Rule 145 or any other similar rule of the Commission is applicable, the Company will promptly (and in any event at least ten (10) Business Days before the anticipated filing date) give written notice to the Holders of its intention to effect such a registration. The Company will effect the registration under the Securities Act of all Registrable Securities that the Holder(s) request(s) be included in such registration (a "<u>Piggyback Registration</u>") by a written notice delivered to the Company within five (5) Business Days after the notice given by the Company in the preceding sentence. Subject to Section 3(b), securities requested to be included in a Company registration pursuant to this Section 3 shall be included by the Company on the same form of Registration Statement as has been selected by the Company for the securities the Company is registering for sale referred to above. The Holders shall be permitted to withdraw all or part of the Registrable Securities from the Piggyback Registration at any time at least two (2) Business Days prior to the effective date of the

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Registration Statement relating to such Piggyback Registration (the "<u>Piggyback Registration Statement</u>"). If the Company elects to terminate any registration filed under this Section 3 prior to the effectiveness of such registration, the Company will have no obligation to register the securities sought to be included by the Holders in such registration under this Section 3. There shall be no limit to the number of Piggybank Registrations pursuant to this Section 3(a).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;If a Registration Statement under this Section 3 relates to an underwritten offering and the managing underwriter(s) advise(s) the Company that in its or their reasonable opinion the number of securities requested to be included in such offering exceeds the number which can be sold without adversely affecting the marketability of such offering (including an adverse effect on the per share offering price), the Company will include in such registration or Prospectus only such number of securities that in the reasonable opinion of such underwriter(s) can be sold without adversely affecting the marketability of the offering (including an adverse effect on the per share offering price), which securities will be so included in the following order of priority, subject, however, to the requirements of the Company's articles of incorporation: (i) first, the Common Stock and other securities the Company proposes to sell, (ii) second, the Registrable Securities of the Holders who have requested inclusion of Registrable Securities pursuant to this Section 3 along with any shares of Common Stock held by the Lincoln Bancorp Employee Stock Ownership Trust or Peterson Contractors, Inc. (or their respective successors) that are included in such Registration Statement, pro rata on the basis of the aggregate number of such securities or shares owned by each such person, or as such Holders and persons may otherwise agree, and (iii) third, any other securities of the Company that have been requested to be so included, subject to the terms of this Agreement. The Company shall select the investment banking firm or firms to act as the lead underwriter or underwriters in connection with an underwritten offering made pursuant to this Section 3; provided that such underwriter(s) shall be reasonably acceptable to the applicable Holder(s). No Holder may participate in any underwritten registration under this Section 3 unless such Holder (i) agrees to sell the Registrable Securities it desires to have covered by the underwritten offering on the basis provided in any underwriting arrangements in customary form and (ii) completes and executes all questionnaires, powers of attorney, indemnities, underwriting agreements and other documents reasonably required under the terms of such underwriting arrangements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.&nbsp;&nbsp;&nbsp;&nbsp;<u>Underwritten Shelf Offerings</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;At any time that a shelf registration statement covering Registrable Securities pursuant to Section 2 or Section 3 is effective, if any Holder delivers a notice to the Company (a "<u>Take-Down Notice</u>") stating that it intends to sell all or part of its Registrable Securities included by it on the shelf registration statement (a "<u>Shelf Offering</u>"), then the Company shall amend or supplement the shelf registration statement as may be necessary in order to enable such Registrable Securities to be distributed pursuant to the Shelf Offering (taking into account the inclusion of Registrable Securities by any other Holders pursuant to this Section 4(a)). In connection with any Shelf Offering, including any Shelf Offering that is an underwritten offering, such proposing Holder(s) shall also deliver the Take-Down Notice to all other holders of Registrable Securities included on such shelf Registration Statement and permit each such Holder to include its Registrable Securities included on the shelf Registration Statement in the Shelf Offering if such holder notifies the proposing Holder(s) and the Company within five days after delivery of the Take-Down Notice to such Holder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;The Company shall have no obligation to effect an underwritten offering under this Section 4 on behalf of the holders of Registrable Securities electing to participate in such offering unless the expected gross proceeds from such offering exceed $5,000,000.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;If a Shelf Offering of Registrable Securities included in a Required Registration Statement is to be conducted as an underwritten offering, then the Holders of the majority of the Registrable Securities included in a Required Registration Statement shall select the investment banking firm or firms to act as the lead underwriter or underwriters in connection with such offering; provided, that such selection shall be reasonably acceptable to the Company. If, in connection with any such underwritten offering, the managing underwriter(s) advise(s) the Company that in its or their reasonable opinion the number of securities requested to be included in such offering exceeds the number which can be sold without adversely affecting the marketability of such offering (including an adverse effect on the per share offering price), the Company will include in such registration or Prospectus only such number of securities that in the reasonable opinion of such underwriter(s) can be sold without adversely affecting the marketability of the offering (including an adverse effect on the per share offering price), which securities will be so included in the following order of priority: (i) first, the Registrable Securities of the Holders who have requested registration of Registrable Securities pursuant to this Section 4, pro rata on the basis of the aggregate number of such securities or shares owned by each such person, or as the Holders may otherwise agree amongst themselves, (ii) second, the Common Stock and other securities the Company proposes to sell, and (iii) third, any other securities of the Company that have been requested to be so included, subject to the terms of this Agreement. No Holder may participate in any underwritten registration under this Section 4 unless such Holder (i) agrees to sell the Registrable Securities it desires to include in the underwritten offering on the basis provided in any underwriting arrangements in customary form and (ii) completes and executes all questionnaires, powers of attorney, indemnities, underwriting agreements and other documents reasonably required under the terms of such underwriting arrangements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;In addition to Sections (a) and (b) of this Section 4, a Shelf Offering of Registrable Securities included on a Piggyback Registration Statement initiated by Holders shall be subject to the procedures set forth in Section 3(b).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.&nbsp;&nbsp;&nbsp;&nbsp;<u>Registration Procedures</u>.

In connection with the Company's registration obligations hereunder:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;the Company shall, not less than three (3) Trading Days prior to the filing of a Registration Statement or any related Prospectus or any amendment or supplement thereto (except for Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, proxy statements and Current Reports on Form 8-K and any similar or successor reports), furnish to one counsel designated by a majority of the outstanding Registrable Securities ("<u>Holders Counsel</u>"), copies of such Registration Statement, Prospectus or amendment or supplement thereto, as proposed to be filed, which documents will be subject to the reasonable review of Holders Counsel; provided that each Holder shall have the right to review, prior to filing, its selling shareholder information. The Company shall not file any Registration Statement or amendment or supplement thereto containing information which Holders Counsel reasonably objects in good faith, unless the Company shall have been advised by its counsel that the information objected to is required under the Securities Act or the rules or regulations adopted thereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;(i) the Company shall prepare and file with the Commission such amendments, including post-effective amendments and supplements, to each Registration Statement and the Prospectus used in connection therewith as may be necessary to keep such Registration Statement continuously effective as to the applicable Registrable Securities for its Effectiveness Period (except during an Allowable Grace Period); (ii) the Company shall cause the related Prospectus to be amended or supplemented by any required Prospectus supplement (subject to the terms of this Agreement), and, as so supplemented or amended, to be filed pursuant to Rule 424 (except during an Allowable Grace Period);

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(iii) the Company shall respond as promptly as reasonably practicable to any comments received from the Commission with respect to each Registration Statement or any amendment thereto and, as promptly as reasonably possible, provide the Holders Counsel true and complete copies of all correspondence from and to the Commission relating to such Registration Statement that pertains to the Holders as "Selling Shareholders"; and (iv) the Company shall comply in all material respects with the provisions of the Securities Act with respect to the disposition of all Registrable Securities covered by a Registration Statement until such time as all of such Registrable Securities shall have been disposed of (subject to the terms of this Agreement) in accordance with the intended methods of disposition by the Holders thereof as set forth in such Registration Statement as so amended or in such Prospectus as so supplemented; provided, that each Holder shall be responsible for the delivery of the Prospectus to the Persons to whom such Registration Rights Purchaser sells any of the Registrable Securities (including in accordance with Rule 172 under the Securities Act), and each Holder agrees to dispose of Registrable Securities in compliance with applicable federal and state securities laws. In the case of amendments and supplements to a Registration Statement which are required to be filed pursuant to this Agreement (including pursuant to this Section 5(b)) by reason of the Company filing a report on Form 10-K, Form 10- Q or Form 8-K or any analogous report under the Exchange Act, the Company shall have incorporated such report by reference into such Registration Statement, if applicable, or shall file such amendments or supplements with the Commission as promptly as practicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;the Company shall notify the Holders (which notice shall, pursuant to clauses (ii) through (iv) hereof, be accompanied by an instruction to suspend the use of the Prospectus until the requisite changes have been made, if applicable) as promptly as reasonably practicable following the day (i)(A) when a Prospectus or any Prospectus supplement or post-effective amendment to a Registration Statement has been filed with the Commission; and (B) with respect to each Registration Statement or any post-effective amendment, when the same has become effective; (ii) of the issuance by the Commission or any other federal or state Governmental Entity of any stop order suspending the effectiveness of a Registration Statement covering any or all of the Registrable Securities or the initiation of any Proceedings for that purpose; (iii) of the receipt by the Company of any notification with respect to the suspension of the qualification or exemption from qualification of any of the Registrable Securities for sale in any jurisdiction, or the initiation or threatening of any Proceeding for such purpose; and (iv) of the occurrence of any event or passage of time that makes the financial statements included in a Registration Statement ineligible for inclusion therein or any statement made in such Registration Statement or Prospectus or any document incorporated or deemed to be incorporated therein by reference untrue in any material respect or that requires any revisions to such Registration Statement, Prospectus or other documents so that, in the case of such Registration Statement or the Prospectus, as the case may be, it will not contain any untrue statement of a material fact or omit to state any material fact required to be stated therein or necessary to make the statements therein (in the case of any Prospectus, form of prospectus or supplement thereto, in light of the circumstances under which they were made), not misleading.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;Notwithstanding anything to the contrary herein, at any time after the Registration Statement has been declared effective by the Commission, the Company may delay the disclosure of material non-public information concerning the Company if the disclosure of such information at the time is not, in the good faith judgment of the Company, in the best interests of the Company (such delay, a "<u>Grace Period</u>"). During the Grace Period, the Company shall not be required to maintain the effectiveness of any Registration Statement filed hereunder and, in any event, Holders shall suspend sales of Registrable Securities pursuant to such Registration Statements during the pendency of the Grace Period provided, the Company shall promptly (i) notify the Holders in writing of the existence of material non-public information giving rise to a Grace Period or the need to file a post-effective

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amendment, as applicable, and the date on which such Grace Period will begin, (ii) use reasonable best efforts to terminate a Grace Period as promptly as practicable provided that such termination is, in the good faith judgment of the Company, in the best interest of the Company and (iii) notify the Holders in writing of the date on which the Grace Period ends; provided, further, that, with respect to a Required Registration Statement only, no single Grace Period shall exceed forty-five (45) consecutive days, and during any three hundred sixty-five (365) day period, the aggregate of all Grace Periods shall not exceed an aggregate of ninety (90) days (each Grace Period complying with this provision being an "<u>Allowable Grace Period</u>"). For purposes of determining the length of a Grace Period, the Grace Period shall be deemed to begin on and include the date the Holders receive the notice referred to in clause (i) above and shall end on and include the later of the date the Holders receive the notice referred to in clause (iii) above and the date referred to in such notice; provided, that no Grace Period shall be longer than an Allowable Grace Period. Notwithstanding anything to the contrary, the Company shall use reasonable best efforts to cause the Transfer Agent to deliver unlegended Shares to a transferee of a Holder in accordance with the terms of the Purchase Agreement or applicable Additional Purchase Agreement in connection with any sale of Registrable Securities with respect to which a Holder has entered into an irrevocable contract for sale prior to the Holder's receipt of the notice of a Grace Period and for which the Holder has not yet settled.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;the Company shall use reasonable best efforts to avoid the issuance of, or, if issued, obtain the withdrawal of (i) any order suspending the effectiveness of a Registration Statement, or (ii) any suspension of the qualification (or exemption from qualification) of any of the Registrable Securities for sale in any jurisdiction, as soon as practicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;&nbsp;&nbsp;the Company shall, if requested by a Holder, furnish to such Holder, without charge, at least one (1) conformed copy of each Registration Statement and each amendment thereto and all exhibits to the extent requested by such Holder (including those previously furnished or incorporated by reference) promptly after the filing of such documents with the Commission; provided, that the Company shall have no obligation to provide any document pursuant to this clause that is available on the Commission's EDGAR or successor system.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;&nbsp;&nbsp;&nbsp;the Company agrees to promptly deliver to each Holder whose Registrable Securities are included in the applicable Registration Statement, without charge, as many copies of each Prospectus or Prospectuses (including each form of prospectus) and each amendment or supplement thereto as such Persons may reasonably request. The Company hereby consents to the use of such Prospectus and each amendment or supplement thereto by each of the selling Holders in connection with the offering and sale of Registrable Securities covered by such Prospectus and any amendment or supplement thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)&nbsp;&nbsp;&nbsp;&nbsp;the Company shall, prior to any resale of Registrable Securities by a Holder, use its reasonable best efforts to register or qualify or cooperate with the selling Holders in connection with the registration or qualification (or exemption from the registration or qualification) of such Registrable Securities for the resale by the Holder under the securities or Blue Sky laws of such jurisdictions within the United States as any Holder reasonably requests in writing, to keep each registration or qualification (or exemption therefrom) effective during the Effectiveness Period and to do any and all other acts or things reasonably necessary to enable the disposition in such jurisdictions of the Registrable Securities covered by each Registration Statement; provided, that the Company shall not be required to qualify generally to do business in any jurisdiction where it is not then so qualified, subject the Company to any general tax in any such jurisdiction where it is not then so subject or file a consent to service of process in any such jurisdiction.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;the Company shall enter into such customary agreements (including an underwriting agreement in customary form) and take all such other actions reasonably requested by the Holders of a majority of the Registrable Securities being sold in connection therewith or by the managing underwriter(s), if any, in order to expedite or facilitate the disposition of such Registrable Securities. In connection with any such permitted underwritten offering of Registrable Securities, (i) the Company shall (A) make such representations and warranties to the selling Holders and the managing underwriter(s), if any, with respect to the business of the Company and its subsidiaries, and the Registration Statement, Prospectus and documents, if any, incorporated or deemed to be incorporated by reference therein, in each case, in form, substance and scope as are customarily made by issuers in underwritten offerings, and, if true, confirm the same if and when requested, (B) use its reasonable best efforts to furnish opinions of counsel to the Company and updates thereof (which counsel and opinions (in form, scope and substance) shall be reasonably satisfactory to the managing underwriter(s), if any, addressed to each of the managing underwriter(s), if any, covering the matters customarily covered in opinions requested in underwritten offerings, (C) use its reasonable best efforts to obtain "cold comfort" letters and updates thereof from the independent certified public accountants of the Company (and, if necessary, any other independent certified public accountants of any subsidiary of the Company or of any business acquired by the Company for which financial statements and financial data are, or are required to be, included in the Registration Statement) who have certified the financial statements included in such Registration Statement, addressed to each of the managing underwriter(s), if any, such letters to be in customary form and covering matters of the type customarily covered in "cold comfort" letters in connection with underwritten offerings, (D) the underwriting agreement shall contain indemnification provisions and procedures customary in such underwritten offerings and (v) deliver such documents and certificates as may be reasonably requested by the Holders of a majority of the Registrable Securities being sold in connection therewith, their counsel and the managing underwriter(s), if any, to evidence the continued validity of the representations and warranties made pursuant to clause (A) above and to evidence compliance with any customary conditions contained in the underwriting agreement or other agreement entered into by the Company, (ii) each Holder shall not, during such period (which period shall in no event exceed one hundred and eighty (180) days, subject to any then customary "booster shot" extension (which extension shall not exceed thirty (30) days) following the effective date of any Registration Statement to the extent requested by any managing underwriter, sell, pledge, hypothecate, transfer, make any short sale of, loan, grant any option or right to purchase of, or otherwise transfer or dispose of (other than to donees who agree to be similarly bound) any Registrable Securities owned by it at any time during such period, except Registrable Securities included in such registration; provided that any release of Registrable Securities from such agreement shall be effected among the Holders on a pro rata basis according to the Registrable Securities then owned by them, and (iii) each Registration Rights Purchaser shall, and the Company shall use its reasonable best efforts to cause each of its directors and senior executive officers to, execute and deliver customary lockup agreements in such form and for such time period up to one hundred and eighty (180) days (subject to any then customary "booster shot" extensions) as may be requested by any managing underwriter. The above shall be done at each closing under such underwriting or similar agreement, or as and to the extent required thereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j)&nbsp;&nbsp;&nbsp;&nbsp;the Company shall make available for inspection by any Holder of Registrable Securities included in such Registration Statement, any underwriter participating in any disposition pursuant to such Registration Statement, and any attorney, accountant or other agent retained by any such seller or underwriter (collectively, the "<u>Inspectors</u>"), at the offices where normally kept, during reasonable business hours, all financial and other records, pertinent corporate documents and properties of the Company and its Subsidiaries (collectively, the "<u>Records</u>"), as shall be reasonably necessary to enable them to exercise their due diligence responsibility, and cause the Company's officers, directors and employees to supply all information reasonably requested by any such Inspector in connection with such

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Registration Statement; provided, however, that any Records that are not generally publicly available at the time of delivery of such Records shall be kept confidential by such Inspectors unless (i) the disclosure

of such Records is necessary in the reasonable judgment of the Inspectors to avoid or correct a misstatement or omission in the Registration Statement, or (ii) the release of such Records is ordered pursuant to a subpoena or other order from a court of competent jurisdiction; provided, further, that each Holder of Registrable Securities agrees that it will, upon learning that disclosure of such Records is sought in a court of competent jurisdiction, give notice to the Company to the extent legally permitted and allow the Company, at its expense, to undertake appropriate action and to prevent disclosure of the Records deemed confidential.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k)&nbsp;&nbsp;&nbsp;&nbsp;the Company shall, in the case of an underwritten offering, cause its officers to use their reasonable best efforts to support the marketing of the Registrable Securities covered by the Registration Statement (including, without limitation, by participation in "road shows") if requested by the managing underwriter(s) and taking into account the Company's business needs.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l)&nbsp;&nbsp;&nbsp;&nbsp;the Company shall reasonably cooperate with the Holders to facilitate the timely preparation and delivery of certificates representing Registrable Securities to be delivered to a transferee pursuant to the Registration Statement, which certificates shall be free, to the extent permitted by the Purchase Agreement or applicable Additional Purchase Agreement, and under law, of all restrictive legends, and to enable such Registrable Securities to be in such denominations and registered in such names as any such Holders may reasonably request. Certificates for Registrable Securities free from all restrictive legends may be transmitted by the transfer agent to a Holder by crediting the account of such Holder's prime broker with DTC as directed by such Holder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m)&nbsp;&nbsp;&nbsp;&nbsp;the Company shall following the occurrence of any event contemplated by Sections 5(c)(ii)-(iv), as promptly as reasonably practicable, as applicable: (i) use its reasonable best efforts to prevent the issuance of any stop order or obtain its withdrawal at the earliest possible moment if the stop order have been issued, or (ii) taking into account the Company's good faith assessment of any adverse consequences to the Company and its shareholders of the premature disclosure of such event, prepare and file a supplement or amendment, including a post-effective amendment, to the affected Registration Statements or a supplement to the related Prospectus or any document incorporated or deemed to be incorporated therein by reference, and file any other required document so that, as thereafter delivered, no Registration Statement nor any Prospectus will contain an untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein (in the case of any Prospectus, form of prospectus or supplement thereto, in light of the circumstances under which they were made), not misleading.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n)&nbsp;&nbsp;&nbsp;&nbsp;the Company may require each selling Holder to furnish to the Company a certified statement as to (i) the number of securities of the Company beneficially owned by such Holder and any Affiliate thereof, (ii) any Financial Industry Regulatory Authority ("<u>FINRA</u>") affiliations, (iii) any natural persons who have the power to vote or dispose of the Common Stock and (iv) any other information as may be requested by the Commission, FINRA, any state securities commission or any other government or regulatory body with jurisdiction over the Company or its activities. During any periods that the Company is unable to meet its obligations hereunder with respect to the registration of Registrable Securities because any Holder fails to furnish such information within five (5) Trading Days of the Company's request, any Liquidated Damages that are accruing at such time as to such Holder only shall be tolled and any Event that may otherwise occur solely because of such delay shall be suspended as to such Holder only, until such information is delivered to the Company.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o)&nbsp;&nbsp;&nbsp;&nbsp;the Company shall cooperate with any registered broker through which a Holder proposes to resell its Registrable Securities in effecting a filing with FINRA pursuant to FINRA Rule 5110 as requested by any such Holder and the Company shall pay the filing fee required for the first such filing (but not additional filings) within two (2) Business Days of the request therefore.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p)&nbsp;&nbsp;&nbsp;&nbsp;if the Company becomes eligible to use Form S-3 during the term of this Agreement, the Company shall use its reasonable best efforts to maintain eligibility for use of Form S-3 (or any successor form thereto) for the registration of the resale of Registrable Securities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q)&nbsp;&nbsp;&nbsp;&nbsp;if requested by a Holders Counsel, the Company shall (i) promptly incorporate in a Prospectus supplement or post-effective amendment to the Registration Statement such information as the Company reasonably agrees (upon advice of counsel) is required to be included therein and (ii) make all required filings of such Prospectus supplement or such post-effective amendment as soon as reasonably practicable after the Company has received notification of the matters to be incorporated in such Prospectus supplement or post-effective amendment.

The Company may require each Holder of Registrable Securities as to which any registration is being effected to furnish to the Company in writing such information required in connection with such registration regarding such Holder and the distribution of such Registrable Securities as the Company may, from time to time, reasonably request in writing and the Company may exclude from such registration the Registrable Securities of any Holder who fails to furnish such information within a reasonable time after receiving such request.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.&nbsp;&nbsp;&nbsp;&nbsp;<u>Registration Expenses</u>. All fees and expenses incident to the Company's performance of or compliance with its obligations under this Agreement (excluding any underwriting discounts and selling commissions, stock transfer taxes and fees of counsel for the Holders) shall be borne by the Company whether or not any Registrable Securities are sold pursuant to a Registration Statement. The fees and expenses referred to in the foregoing sentence that are the Company's responsibility shall include, without limitation, (i) all registration and filing fees (including, without limitation, fees and expenses (A) with respect to filings required to be made with any Trading Market on which the Common Stock is then listed for trading, (B) with respect to compliance with applicable state securities or Blue Sky laws (including, without limitation, fees and disbursements of counsel for the Company in connection with Blue Sky qualifications or exemptions of the Registrable Securities and determination of the eligibility of the Registrable Securities for investment under the laws of such jurisdictions as requested by the Holders) and (C) if not previously paid by the Company in connection with an issuer filing, with respect to any filing that may be required to be made by any broker through which a Holder intends to make sales of Registrable Securities with FINRA pursuant to FINRA Rule 5110, so long as the broker is receiving no more than a customary brokerage commission in connection with such sale, (ii) printing expenses (including, without limitation, expenses of printing certificates for Registrable Securities and of printing prospectuses if the printing of prospectuses is reasonably requested by the Holders of a majority of the Registrable Securities included in the Registration Statement), (iii) messenger, telephone and delivery expenses of the Company, (iv) fees and disbursements of counsel for the Company, (v) Securities Act liability insurance, if the Company so desires such insurance, (vi) fees and expenses of all other Persons retained by the Company in connection with the consummation of the transactions contemplated by this Agreement, and (vii) those expenses of Castle Creek and other Registration Rights Purchasers actually and reasonably incurred, including without limitation, the reasonable attorneys' fees, provided however that the maximum aggregate amount of such expenses and fees of Castle Creek and any other Registration Rights Purchasers subject to reimbursement under this clause (vii) shall be $50,000. In addition, the Company shall be responsible for all of its internal expenses incurred in connection with the consummation of the transactions contemplated by this Agreement (including,

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without limitation, all salaries and expenses of its officers and employees performing legal or accounting duties), the expense of any annual audit and the fees and expenses incurred in connection with the listing of the Registrable Securities on any securities exchange as required hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.&nbsp;&nbsp;&nbsp;&nbsp;<u>Indemnification</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;<u>Indemnification by the Company</u>. The Company shall, notwithstanding any termination of this Agreement, indemnify, defend and hold harmless each Holder and each of their respective officers, directors, agents, general partners, managing members, managers, Affiliates and employees, each Person who controls any such Holder (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act) and the officers, directors, general partners, managing members, managers, agents and employees of such controlling Person, to the fullest extent permitted by applicable law, from and against any and all losses, claims, damages, liabilities, costs (including, without limitation, reasonable costs of preparation and investigation and reasonable and documented attorneys' fees) and expenses (collectively, "<u>Losses</u>"), as incurred, that arise out of or are based upon (i) any untrue or alleged untrue statement of a material fact contained in any Registration Statement, any Prospectus or any form of prospectus or in any amendment or supplement thereto or in any preliminary prospectus, or arising out of or relating to any omission or alleged omission to state a material fact required to be stated therein or necessary to make the statements therein (in the case of any Prospectus or form of prospectus or supplement thereto, in light of the circumstances under which they were made) not misleading, or (ii) any violation or alleged violation by the Company of the Securities Act, Exchange Act or any state securities law or any rule or regulation thereunder, in connection with the performance of its obligations under this Agreement, except to the extent, but only to the extent, that (A) such untrue statements, alleged untrue statements, omissions or alleged omissions are based solely upon information regarding such Holder furnished in writing to the Company by such Holder or on behalf of such Holder expressly for use therein, or to the extent that such information relates to such Holder or such Holder's proposed method of distribution of Registrable Securities and was reviewed and approved by such Holder or Holders Counsel expressly for use in the Registration Statement, such Prospectus or such form of Prospectus or in any amendment or supplement thereto, (B) Holder's failure to deliver or cause to be delivered the Prospectus or any amendment or supplement thereto made available by the Company in compliance with Section 8(g), or (C) in the case of an occurrence of an event of the type specified in Sections 5(c)(ii)-(iv), related to the use by a Holder of an outdated or defective Prospectus after the Company has notified such Holder in writing or electronic mail that the Prospectus is outdated or defective and prior to the receipt by such Holder of the Advice contemplated and defined in Section 8(h) below, but only if and to the extent that following the receipt of the Advice the misstatement or omission giving rise to such Loss would have been corrected. Such indemnity shall remain in full force and effect regardless of any investigation made by or on behalf of an Indemnified Party (as defined in Section 7(c)) and shall survive the transfer of the Registrable Securities by the Holders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;<u>Indemnification by Holders</u>. Each Holder shall, notwithstanding any termination of this Agreement, severally and not jointly, indemnify and hold harmless the Company, its directors, officers, agents and employees, each Person who controls the Company (within the meaning of Section 15 of the Securities Act and Section 20 of the Exchange Act), and the directors, officers, agents or employees of such controlling Persons, to the fullest extent permitted by applicable law, from and against all Losses, as incurred, arising out of or are based upon (i) any untrue or alleged untrue statement of a material fact contained in any Registration Statement, any Prospectus, or any form of prospectus, or in any amendment or supplement thereto or in any preliminary prospectus, or arising out of or relating to any omission or alleged omission of a material fact required to be stated therein or necessary to make the statements therein (in the case of any Prospectus, or any form of prospectus or supplement thereto, in light of the circumstances under which they were made) not misleading (A) to the extent, but only to the

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extent, that such untrue statements or omissions are based solely upon information regarding such Holder furnished in writing to the Company by or on behalf of such Holder expressly for use therein, or (B) to the extent, but only to the extent, that such information relates to such Holder or such Holder's proposed method of distribution of Registrable Securities and was reviewed and approved by such Holder or Holders Counsel expressly for use in a Registration Statement, such Prospectus or such form of Prospectus or in any amendment or supplement thereto or (C) in the case of an occurrence of an event of the type specified in Sections 5(c)(ii)- (iv), to the extent, but only to the extent, related to the use by such

Holder of an outdated or defective Prospectus after the Company has notified such Holder in writing that the Prospectus is outdated or defective and prior to the receipt by such Holder of the Advice contemplated in Section 8(h), but only if and to the extent that following the receipt of the Advice the misstatement or omission giving rise to such Loss would have been corrected, or (ii) Holder's failure to deliver or cause to be delivered the Prospectus or any amendment or supplement thereto made available by the Company in compliance with Section 8(g). In no event shall the liability of any selling Holder hereunder be greater in amount than the dollar amount of the net proceeds received by such Holder upon the sale of the Registrable Securities giving rise to such indemnification obligation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;<u>Conduct of Indemnification Proceedings</u>. If any Proceeding shall be brought or asserted against any Person entitled to indemnity hereunder (an "<u>Indemnified Party</u>"), such Indemnified Party shall promptly notify the Person from whom indemnity is sought (the "<u>Indemnifying Party</u>") in writing, and the Indemnifying Party shall have the right to assume the defense thereof, including the employment of one (1) counsel reasonably satisfactory to the Indemnified Party and the payment of all reasonable and documented fees and expenses incurred in connection with defense thereof; provided, that the failure of any Indemnified Party to give such written notice within a reasonable time of commencement of any such Proceeding shall not relieve the Indemnifying Party of its obligations or liabilities pursuant to this Agreement, except (and only) to the extent that such failure shall have materially and adversely prejudiced the Indemnifying Party in its ability to defend such Proceeding.

An Indemnified Party shall have the right to employ separate counsel in any such Proceeding and to participate in the defense thereof, but the fees and expenses of such counsel shall be at the expense of such Indemnified Party or Indemnified Parties unless: (1) the Indemnifying Party has agreed in writing to pay such fees and expenses; (2) the Indemnifying Party shall have failed promptly to assume the defense of such Proceeding and to employ counsel reasonably satisfactory to such Indemnified Party in any such Proceeding; or (3) the named parties to any such Proceeding (including any impleaded parties) include both such Indemnified Party and the Indemnifying Party, and such Indemnified Party shall have been advised by counsel in writing that a conflict of interest exists if the same counsel were to represent such Indemnified Party and the Indemnifying Party; provided, that the Indemnifying Party shall not be liable for the fees and expenses of more than one separate firm of attorneys plus local counsel at any time for all Indemnified Parties. The Indemnifying Party shall not be liable for any settlement of any such Proceeding effected without its written consent, which consent shall not be unreasonably withheld, delayed or unreasonably conditioned. No Indemnifying Party shall, without the prior written consent of the Indemnified Party, effect any settlement of any pending Proceeding in respect of which any Indemnified Party is a party, unless such settlement includes an unconditional release of such Indemnified Party from all liability on claims that are the subject matter of such Proceeding.

Subject to the terms of this Agreement, all documented fees and expenses of the Indemnified Party (including reasonable fees and expenses to the extent incurred in connection with investigating or preparing to defend such Proceeding in a manner not inconsistent with this Section 7(c)) shall be paid to the Indemnified Party, as incurred, within twenty (20) Trading Days of written notice thereof to the Indemnifying Party; provided, that the Indemnified Party shall promptly reimburse the

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Indemnifying Party for that portion of such fees and expenses applicable to such actions for which such Indemnified Party is finally judicially determined to not be entitled to indemnification hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;<u>Contribution</u>. If a claim for indemnification under Section 7(a) or 7(b) is unavailable to an Indemnified Party (other than in accordance with its terms) or insufficient to hold an Indemnified Party harmless for any Losses, then each Indemnifying Party, in lieu of indemnifying such Indemnified Party, shall contribute to the amount paid or payable by such Indemnified Party as a result of such Losses, in such proportion as is appropriate to reflect the relative fault of the Indemnifying Party, on

the one hand, and Indemnified Party, on the other hand, in connection with the actions, statements or omissions that resulted in such Losses as well as any other relevant equitable considerations. The relative fault of such Indemnifying Party, on the one hand, and Indemnified Party, on the other hand, shall be determined by reference to, among other things, whether any action in question, including any untrue or alleged untrue statement of a material fact or omission or alleged omission of a material fact, has been taken or made by, or relates to information supplied by, such Indemnifying Party or Indemnified Party, and the parties' relative intent, knowledge, access to information and opportunity to correct or prevent such action, statement or omission. The amount paid or payable by a party as a result of any Losses shall be deemed to include, subject to the limitations set forth in this Agreement, any reasonable attorneys' or other reasonable fees or expenses incurred by such party in connection with any Proceeding to the extent such party would have been indemnified for such fees or expenses if the indemnification provided for in this Section 7(d) was available to such party in accordance with its terms. The parties hereto agree that it would not be just and equitable if contribution pursuant to this Section 7(d) were determined by pro rata allocation or by any other method of allocation that does not take into account the equitable considerations referred to in the immediately preceding paragraph. Notwithstanding the provisions of this Section 7(d), no Holder shall be required to contribute, in the aggregate, any amount in excess of the amount by which the net proceeds actually received by such Holder from the sale of the Registrable Securities subject to the Proceeding exceeds the amount of any damages that such Holder has otherwise been required to pay by reason of such untrue or alleged untrue statement or omission or alleged omission. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation.

The indemnity and contribution agreements contained in this Section 7 are in addition to any liability that the Indemnifying Parties may have to the Indemnified Parties and are not in diminution or limitation of the indemnification provisions under the Purchase Agreement or applicable Additional Purchase Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.&nbsp;&nbsp;&nbsp;&nbsp;<u>Miscellaneous</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;<u>Remedies</u>. In the event of a breach by the Company or by a Holder of any of their obligations under this Agreement, each Holder or the Company, as the case may be, in addition to being entitled to exercise all rights granted by law and under this Agreement, including recovery of damages, will be entitled to specific performance of its rights under this Agreement. The Company and each Holder agree that monetary damages would not provide adequate compensation for any losses incurred by reason of a breach by it of any of the provisions of this Agreement and hereby further agrees that, in the event of any action for specific performance in respect of such breach, it shall waive the defense that a remedy at law would be adequate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;<u>Prohibition on Other Registrations</u>. The Company agrees not to effect or initiate a registration statement for any public sale or distribution of any securities similar to those being

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registered pursuant to this Agreement, or any securities convertible into or exchangeable or exercisable for such securities (other than a registration solely to implement an employee benefit plan pursuant to a registration statement on Form S-8 (or successor form), a registration statement on Form S-4 (or successor form) or a transaction to which Rule 145 or any other similar rule of the Commission is applicable), during the fourteen (14) calendar days prior to, and during the sixty (60) calendar-day period beginning on, the effective date of any Registration Statement in which the Holders of Registrable Securities are participating (except as part of any such registration, if permitted).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;<u>Rule 144 Requirements</u>. For so long as the Company is subject to the reporting requirements of the Exchange Act, the Company will use its reasonable best efforts to timely file with the

Commission such reports and information required to be filed by it under the Securities Act and the Exchange Act and the rules and regulations adopted by the Commission thereunder and as the Commission may require. The Company shall furnish to any Holder of Registrable Securities forthwith upon request a written statement as to its compliance with the reporting requirements of Rule 144 (or any successor exemptive rule), the Securities Act and the Exchange Act (at any time that it is subject to such reporting requirements); a copy of its most recent annual or quarterly report; and such other reports and documents as such Person may reasonably request in availing itself of any rule or regulation of the Commission allowing it to sell any such securities without registration.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;<u>Obligations of Holders and Others in a Registration</u>. Each Holder agrees to timely furnish in writing such information regarding such Person, the securities sought to be registered and the intended method of disposition of the Registrable Securities held by it, as shall be reasonably be required to effect the registration of such Registrable Securities (the "<u>Requested Information</u>") and shall take such other action as the Company may reasonably request in connection with the registration, qualification or compliance or as otherwise provided herein. At least ten (10) Business Days prior to the first anticipated filing date of a Registration Statement, the Company shall notify each holder of the information the Company requires from such Holder if such Holder elects to have any of such Holder's Registrable Securities included in the Registration Statement. If at least five (5) Business Days prior to the filing date, the Company has not received the Requested Information from a Holder (a "<u>Non- Responsive Holder</u>"), then the Company may exclude from any Registration Statement the Registrable Securities of such Non-Responsive Holder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;<u>Rule 144A</u>. The Company agrees that, upon the request of any Holder of Registrable Securities or any prospective purchaser of Registrable Securities designated by a Holder, the Company shall promptly provide (but in any case within fifteen (15) calendar days of a request) to such Holder or potential purchaser, the following information:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;a brief statement of the nature of the business of the Company and any subsidiaries and the products and services they offer;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp;the most recent consolidated balance sheets and profit and losses and retained earnings statements, and similar financial statements of the Company for the two (2) most recent fiscal years (such financial information shall be audited, to the extent reasonably available); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;&nbsp;&nbsp;&nbsp;such other information about the Company, any subsidiaries, and their business, financial condition and results of operations as the requesting Holder or purchaser of such Registrable Securities shall reasonably request in order to comply with Rule 144A, as amended, and in connection therewith the anti-fraud provisions of the federal and state securities laws.

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The Company hereby represents and warrants to any such requesting Holder and any prospective purchaser of Registrable Securities from such Holder that the information provided by the Company pursuant to this Section 8(e) will, as of their dates, not contain any untrue statement of a material fact or omit to state a material fact necessary in order to make the statements made, in light of the circumstances under which they were made, not misleading.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;&nbsp;&nbsp;<u>Limitations on Subsequent Registration Rights</u>. The Company will not enter into any agreements with any holder or prospective holder of any securities of the Company which would grant such holder or prospective holder registration rights with respect to the securities of the Company which would have priority over the Registrable Securities with respect to the inclusion of such securities in any registration. If the Company enters into an agreement that contains terms more favorable, in form or substance, to any shareholders than the terms provided to the Holders under this Agreement, then the

Company will modify or revise the terms of this Agreement in order to reflect any such more favorable terms for the benefit of the Holders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;&nbsp;&nbsp;&nbsp;<u>Compliance</u>. Each Holder covenants and agrees that it will comply with the prospectus delivery requirements of the Securities Act as applicable to it (unless an exemption therefrom is available) in connection with sales of Registrable Securities pursuant to the Registration Statement and shall sell the Registrable Securities only in accordance with a method of distribution described in the Registration Statement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)&nbsp;&nbsp;&nbsp;&nbsp;<u>Discontinued Disposition</u>. By its acquisition of Registrable Securities, each Holder agrees that, upon receipt of a notice from the Company of the occurrence of any event of the kind described in Sections 5(c)(ii)-(iv), such Holder will forthwith discontinue disposition of such Registrable Securities under a Registration Statement until it is advised in writing (the "<u>Advice</u>") by the Company that the use of the applicable Prospectus (as it may have been supplemented or amended) may be resumed. The Company may provide appropriate stop orders to enforce the provisions of this paragraph.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;<u>No Inconsistent Agreements</u>. Neither the Company nor any of its Subsidiaries has entered, as of the date hereof, nor shall the Company or any of its Subsidiaries, on or after the date hereof, enter into any agreement with respect to its securities, that would have the effect of impairing the rights granted to the Holders in this Agreement or otherwise conflicts with the provisions hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j)&nbsp;&nbsp;&nbsp;&nbsp;<u>Amendments and Waivers</u>. The provisions of this Agreement, including the provisions of this sentence, may not be amended, modified or supplemented, or waived unless the same shall be in writing and signed by the Company and Holders of a majority of the then outstanding Registrable Securities; provided that any such amendment, modification, supplement or waiver that materially, adversely and disproportionately effects the rights or obligations of any Holder vis-a-vis the other Holders shall require the prior written consent of such Holder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k)&nbsp;&nbsp;&nbsp;&nbsp;<u>Notices</u>. Any and all notices or other communications or deliveries required or permitted to be provided hereunder shall be in writing and shall be deemed given and effective on the earliest of (a) the date of transmission, if such notice or communication is delivered via facsimile or e-mail (provided the sender receives a machine-generated confirmation of successful facsimile transmission or e-mail notification or confirmation of receipt of an e-mail transmission) at the facsimile number or e-mail address specified in this Section prior to 5:00 p.m., New York City time, on a Trading Day, (b) the next Trading Day after the date of transmission, if such notice or communication is delivered via facsimile at the facsimile number specified in this Section on a day that is not a Trading Day or later than 5:00 p.m., New York City time, on any Trading Day, (c) the Trading Day following the date of mailing, if sent by U.S. nationally recognized overnight courier service with next day delivery specified, or (d) upon

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actual receipt by the party to whom such notice is required to be given. The address for such notices and communications shall be as follows:

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| | |
|:---|:---|
| If to the Company: | Lincoln Bancorp |
|  | 3254 Kimball Avenue |
|  | Waterloo, IA 50702 |
|  | Attention: Emily Girsch |
|  | Chief Financial Officer |
|  | Email: EmilyG@mylsb.com |
|  | Facsimile: (319) 788-6697 |
| With a copy to: | Barack Ferrazzano Kirschbaum & Nagelberg LLP |
|  | 200 West Madison Street, Suite 3900 |
|  | Chicago, IL 60606 |
|  | Attention: Bill Fay |
|  | Email: bill.fay@bfkn.com |
|  | Facsimile: (312) 984-3150 |

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If to a Registration Rights Purchaser:

To the address set forth under such Registration Rights Purchaser's name on the signature page hereof or such other address as may be designated in writing hereafter, in the same manner, by such Person.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l)&nbsp;&nbsp;&nbsp;&nbsp;<u>Successors and Assigns</u>. This Agreement shall inure to the benefit of and be binding upon the successors and permitted assigns of each of the parties. Nothing in this Agreement, express or implied, is intended to confer upon any party other than the parties hereto or their respective successors and assigns any rights, remedies, obligations, or liabilities under or by reason of this Agreement, except as expressly provided in this Agreement. The Company may not assign its rights (except by merger or in connection with another entity acquiring all or substantially all of the Company's assets) or obligations hereunder without the prior written consent of all of the Holders of the then outstanding Registrable Securities. No Registration Rights Purchaser may assign its rights or obligations hereunder without the prior written consent of the Company; *provided* that the rights to have the Company register Registrable Securities pursuant to this Agreement shall be automatically assigned by any Registration Rights Purchaser to any transferee of the Shares if and only if: (i) the Registration Rights Purchaser acquires Registrable Shares with an original value as of the Closing Date of at least $5,000,000 and agrees in writing with the transferee or assignee to the assignment of such rights; (ii) the Company is, within one (1) month after such transfer or assignment, furnished with written notice of (A) the name and address of such transferee or assignee and (B) the securities with respect to which such registration rights are being transferred or assigned; and (iii) at or before the time the Company received the written notice contemplated by clause (ii) of this sentence, the transferee or assignee agrees in writing with the Company to be bound by all of the provisions contained herein with respect to a Holder or Registration Rights Purchaser. In the event of any delay in filing or effectiveness of the Registration Statement as a result of such assignment by a Registration Rights Purchaser or its transferee, the Company shall not be liable for any damages arising from such delay.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m)&nbsp;&nbsp;&nbsp;&nbsp;<u>Execution and Counterparts</u>. This Agreement may be executed in two (2) or more counterparts, each of which when so executed shall be deemed to be an original and, all of which taken together shall constitute one and the same Agreement and shall become effective when counterparts have been signed by each party and delivered to the other party, it being understood that both parties need not sign the same counterpart. In the event that any signature is delivered by facsimile transmission or by e-mail delivery of a ".pdf" format data file, such signature shall create a valid and binding obligation of the party executing (or on whose behalf such signature is executed) with the same force and effect as if such facsimile or ".pdf" signature were the original thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n)&nbsp;&nbsp;&nbsp;&nbsp;<u>Governing Law and Jurisdiction</u>. This Agreement shall be governed by and construed in accordance with the internal laws of the State of Delaware applicable to contracts made and to be performed entirely within such State. All questions concerning the construction, validity, enforcement and interpretation of this Agreement shall be determined in accordance with the provisions of the Purchase Agreement or applicable Additional Purchase Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o)&nbsp;&nbsp;&nbsp;&nbsp;<u>Cumulative Remedies</u>. Except as provided in Section 2(c) with respect to Liquidated Damages, the remedies provided herein are cumulative and not exclusive of any other remedies provided by law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p)&nbsp;&nbsp;&nbsp;&nbsp;<u>Severability</u>. If any term, provision, covenant or restriction of this Agreement is held by a court of competent jurisdiction to be invalid, illegal, void or unenforceable, the remainder of the terms, provisions, covenants and restrictions set forth herein shall remain in full force and effect and shall in no way be affected, impaired or invalidated, and the parties hereto shall use their good faith reasonable efforts to find and employ an alternative means to achieve the same or substantially the same result as that contemplated by such term, provision, covenant or restriction. It is hereby stipulated and declared to be the intention of the parties that they would have executed the remaining terms, provisions, covenants and restrictions without including any of such that may be hereafter declared invalid, illegal, void or unenforceable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q)&nbsp;&nbsp;&nbsp;&nbsp;<u>Headings</u>. The headings in this Agreement are for convenience only and shall not limit or otherwise affect the meaning hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r)&nbsp;&nbsp;&nbsp;&nbsp;<u>Independent Nature of Registration Rights Purchasers' Obligations and Rights</u>. The obligations of each Registration Rights Purchaser under this Agreement are several and not joint with the obligations of any other Registration Rights Purchaser hereunder, and no Registration Rights Purchaser shall be responsible in any way for the performance of the obligations of any other Registration Rights Purchaser hereunder. The decision of each Registration Rights Purchaser to purchase the Shares pursuant to the Purchase Agreement or applicable Additional Purchase Agreement has been made independently of any other Registration Rights Purchaser. Nothing contained herein or in any other agreement or document delivered at any closing, and no action taken by any Registration Rights Purchaser pursuant hereto or thereto, shall be deemed to constitute the Registration Rights Purchasers as a partnership, an association, a joint venture or any other kind of entity, or create a presumption that the Registration Rights Purchasers are in any way acting in concert with respect to such obligations or the transactions contemplated by this Agreement. Each Registration Rights Purchaser acknowledges that no other Registration Rights Purchaser has acted as agent for such Registration Rights Purchaser in connection with making its investment hereunder and that no Registration Rights Purchaser will be acting as agent of such Registration Rights Purchaser in connection with monitoring its investment in the Shares or enforcing its rights under the Purchase Agreement or applicable Additional Purchase Agreement. Each Registration Rights Purchaser shall be entitled to protect and enforce its rights, including, without limitation, the rights arising out of this Agreement, and it shall not be necessary for any other Registration

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Rights Purchaser to be joined as an additional party in any Proceeding for such purpose. The Company acknowledges that each of the Registration Rights Purchasers has been provided with the same Registration Rights Agreement for the purpose of closing a transaction with multiple Registration Rights Purchasers and not because it was required or requested to do so by any Registration Rights Purchaser. It is expressly understood and agreed that each provision contained in this Agreement is between the Company and a Registration Rights Purchaser, solely, and not between the Company and the Registration Rights Purchasers collectively and not between and among the Registration Rights Purchasers.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(s)&nbsp;&nbsp;&nbsp;&nbsp;<u>Entire Agreement</u>. This Agreement and the Purchase Agreement or applicable Additional Purchase Agreement constitute the entire agreement among the parties hereto with respect to the subject matter hereof. There are no restrictions, promises, warranties or undertakings, other than as set forth or referred to herein and in the Purchase Agreement or applicable Additional Purchase Agreement. This Agreement supersedes all prior agreements and understandings among the parties hereto with respect to the subject matter hereof.

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IN WITNESS WHEREOF, the parties have executed this Registration Rights Agreement as of the date first written above.

---

| | |
|:---|:---|
| LINCOLN BANCORP | LINCOLN BANCORP |
| By: | /s/ Erik Skovgard |
| Name: Erik Skovgard | Name: Erik Skovgard |
| Title: Chief Executive Officer | Title: Chief Executive Officer |

---

[Signature Page to Registration Rights Agreement]

------

IN WITNESS WHEREOF, the parties have executed this Registration Rights Agreement as of the date first written above.

---

| | |
|:---|:---|
| **CASTLE CREEK CAPITAL PARTNERS VII, LP** | **CASTLE CREEK CAPITAL PARTNERS VII, LP** |
| By: | /s/ David Volk |
| Name: David Volk | Name: David Volk |
| Title:&nbsp;&nbsp;&nbsp;&nbsp; Principal | Title:&nbsp;&nbsp;&nbsp;&nbsp; Principal |
| ADDRESS FOR NOTICE | ADDRESS FOR NOTICE |
| Street: | Street: |
| City/State/Zip:  | City/State/Zip:  |
| Attention:  | Attention:  |
| Tel:  | Tel:  |
| Fax:&nbsp;&nbsp;&nbsp;&nbsp; | Fax:&nbsp;&nbsp;&nbsp;&nbsp; |
| E-mail: | E-mail: |

---

[Signature Page to Registration Rights Agreement]

------

IN WITNESS WHEREOF, the parties have executed this Registration Rights Agreement as of the date first written above.

---

| | |
|:---|:---|
| NAME OF INVESTING ENTITY | NAME OF INVESTING ENTITY |
| **EJF SIDECAR FUND, SERIES LLC - SMALL** | **EJF SIDECAR FUND, SERIES LLC - SMALL** |
| **FINANCIAL EQUITIES SERIES** | **FINANCIAL EQUITIES SERIES** |
| By: EJF Capital LLC | By: EJF Capital LLC |
| Its: Managing Member | Its: Managing Member |
| By: | /s/ Emanuel J. Friedman |
| Name: Emanuel J. Friedman | Name: Emanuel J. Friedman |
| Title:Chief Executive Officer | Title:Chief Executive Officer |
| ADDRESS FOR NOTICE | ADDRESS FOR NOTICE |
| EJF Capital LLC | EJF Capital LLC |
| Attention: | Attention: |
| Telephone No: | Telephone No: |
| Facsimile No: | Facsimile No: |
| E-mail Address: | E-mail Address: |

---

[Signature Page to Registration Rights Agreement]

## Exhibit 10.3

**Exhibit 10.3**

**AMENDMENT TO REGISTRATION RIGHTS AGREEMENT**

This Amendment to Registration Rights Agreement, dated as of December 8, 2023 (this "<u>Amendment</u>"), by and between Lincoln Bancorp, an Iowa corporation (the "<u>Company</u>"), and Castle Creek Capital Partners VII, LP, a Delaware limited partnership (the "<u>Registration Rights Purchaser</u>"), amends that certain Registration Rights Agreement, dated as of December 4, 2018 (the "<u>Registration</u> <u>Rights Agreement</u>"), by and between the Company and the Registration Rights Purchaser.

WHEREAS, the Company and the Registration Rights Purchaser desire to amend the Registration Rights Agreement on the terms set forth in this Amendment.

NOW, THEREFORE, in consideration of the mutual covenants contained in this Amendment, and for other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the Company and the Registration Rights Purchaser agree as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.<u>Amendment to Filing Deadline Definition</u>. The definition of "Filing Deadline" in Section 1 of the Registration Rights Agreement is hereby amended to change "the date that is the fifth (5th) anniversary of the Closing Date" to "December 31, 2025".

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.<u>Entire Agreement</u>. Except as expressly amended by this Amendment, all of the terms and provisions of the Registration Rights Agreement are unchanged and remain in full force and effect. From and after the date of this Amendment, any reference to "this Agreement" or "hereto" in the Registration Rights Agreement and any reference to "the Registration Rights Agreement" in this Amendment or in any other document or instrument executed or delivered in connection therewith or herewith shall be construed as a reference to the Registration Rights Agreement as amended by this Amendment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.<u>Counterparts</u>. This Amendment may be executed in any number of counterparts, each of which shall be deemed an original as against any party whose signature appears thereon, and all of which together shall constitute one and the same instrument. This Amendment shall become binding when one or more counterparts hereof, individually or taken together, shall bear the signatures of all of the parties reflected hereon as the signatories. Photographic copies of such signed counterparts (including via fax or .pdf) or other electronic signatures may be used in lieu of the originals for any purpose.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.<u>Miscellaneous</u>. The following section of the Registration Rights Agreement shall apply to this Amendment, *mutatis mutandis* as if such provisions were set forth herein at length: Section 8(n) (Governing Law and Jurisdiction).

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IN WITNESS WHEREOF, the parties have executed this Amendment as of the date first written above.

---

| | |
|:---|:---|
| LINCOLN BANCORP | LINCOLN BANCORP |
| /s/ Emily J Curson | /s/ Emily J Curson |
| Name: | Emily J Curson |
| Title: | Interim CEO |
| CASTLE CREEK CAPITAL PARTNERS VII, LP | CASTLE CREEK CAPITAL PARTNERS VII, LP |
| By: Castle Creek Capital VII LLC, its general partner | By: Castle Creek Capital VII LLC, its general partner |
| /s/ Spencer Cohn | /s/ Spencer Cohn |
| Name: | Spencer Cohn |
| Title: Director | Title: Director |

---

## Exhibit 10.4

**Exhibit 10.4**

**STOCK PURCHASE AGREEMENT**

dated November 26, 2018

by and among

**LINCOLN BANCORP**

and

**THE PURCHASERS IDENTIFIED ON THE SIGNATURE PAGES HERETO**

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**STOCK PURCHASE AGREEMENT**

This Stock Purchase Agreement (this "**Agreement**") is dated as of November 26, 2018, by and among Lincoln Bancorp, an Iowa corporation (the "**Company**"), and each purchaser identified on the signature pages hereto (each, including its successors and permitted assigns, a "**Purchaser**" and collectively, the "**Purchasers**").

**RECITALS**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A.&nbsp;&nbsp;&nbsp;&nbsp;The Company and each Purchaser are executing and delivering this Agreement in reliance upon the exemption from securities registration afforded by Section 4(a)(2) of the Securities Act of 1933, as amended (the "**Securities Act**"), and Rule 506 of Regulation D ("**Regulation D**") as promulgated by the United States Securities and Exchange Commission (the "**Commission**") under the Securities Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B.&nbsp;&nbsp;&nbsp;&nbsp;Each Purchaser, severally and not jointly, wishes to purchase, and the Company wishes to sell, upon the terms and conditions stated in this Agreement, that number of shares of Class A Common Stock, par value $0.01 per share, of the Company (the "**Common Stock**"), set forth below such Purchaser's name on the signature page of this Agreement (which shall be collectively referred to herein as the "**Common Shares**" or the "**Shares**").

NOW, THEREFORE, in consideration of the mutual covenants contained in this Agreement, and for other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the Company and the Purchasers hereby agree as follows:

**ARTICLE I**

**DEFINITIONS**

Section 1.1&nbsp;&nbsp;&nbsp;&nbsp;<u>Definitions</u>. In addition to the terms defined elsewhere in this Agreement, for all purposes of this Agreement, the following terms shall have the meanings indicated in this Section 1.1:

"**Acquisition Transaction**" means (i) a merger, reorganization, share exchange, consolidation, business combination, recapitalization, dissolution, liquidation, or similar transaction pertaining to the Company or the Bank; (ii) the issuance by the Company or the Bank of securities representing twenty percent (20%) or more of its outstanding Voting Securities (after giving effect to the conversion, exercise or exchange of securities convertible into or exercisable or exchangeable for such Voting Securities); or (iii) the acquisition in any manner, directly or indirectly, of (x) twenty percent (20%) or more of the outstanding Voting Securities of the Company or the Bank (including through the acquisition of securities convertible into or exercisable or exchangeable for such Voting Securities), (y) twenty percent (20%) or more of the consolidated total assets of the Company and its Subsidiaries, taken as a whole, or (z) one or more businesses or divisions that constitute twenty percent (20%) or more of the revenues or net income of the Company and its Subsidiaries, taken as a whole.

"**Action**" means any action, suit, inquiry, notice of violation, proceeding (including any partial proceeding such as a deposition), or investigation pending or, to the Company's Knowledge, threatened against the Company, any Subsidiary, or any of their respective properties or any officer, director, or employee of the Company or any Subsidiary acting in his or her capacity as an officer, director, or employee in each case before or by any Governmental Entity.

"**Additional Purchase Agreement**" means the stock purchase agreement, dated as of October 22, 2018, between the Company and Castle Creek Capital Partners VII, L.P..

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"**Affiliate**" means, with respect to any Person, any other Person that, directly or indirectly through one or more intermediaries, Controls, is controlled by, or is under common control with such Person, as such terms are used in and construed under Rule 405 under the Securities Act.

"**Agency**" has the meaning set forth in Section 3.1(oo).

"**Agreement**" shall have the meaning ascribed to such term in the Preamble.

"**Articles of Incorporation**" means the Restated Articles of Incorporation of the Company and all amendments thereto, as amended as of the date hereof.

"**Bank**" means Lincoln Savings Bank, an Iowa chartered bank and wholly owned Subsidiary of the Company.

"**Bank Boards**" has the meaning set forth in Section 4.21(a).

"**Benefit Plan**" has the meaning set forth in Section 3.1(qq).

"**BHCA**" has the meaning set forth in Section 3.1(b).

"**BHCA Control**" has the meaning set forth in Section 3.1(ss).

"**Board**" has the meaning set forth in this Section 1.1.

"**Board Representative**" has the meaning set forth in Section 4.21(a).

"**Burdensome Condition**" has the meaning set forth in Section 4.17.

"**Business Day**" means a day, other than a Saturday or Sunday, on which banks in the State of Iowa are open for the general transaction of business.

"**Buy-In**" has the meaning set forth in Section 4.1(d).

"**Buy-In Broker**" has the meaning set forth in Section 4.1(d).

"**Castle Creek**" means Castle Creek Capital Partners VII, L.P. and its Affiliates.

"**Change in Control**" means, with respect to the Company, the occurrence of any one of the following events:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)&nbsp;&nbsp;&nbsp;&nbsp;any Person or "group" (other than the Purchasers and their Affiliates) becomes a beneficial owner (as defined in Rule 13d-3 of the Exchange Act), directly or indirectly, of fifty percent (50%) or more of the aggregate shares of Common Stock;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)&nbsp;&nbsp;&nbsp;&nbsp;any Person or "group" (other than the Purchasers and their Affiliates) becomes a beneficial owner (as defined in Rule 13d-3 of the Exchange Act), directly or indirectly, of twenty-four point nine percent (24.9%) or more of the aggregate shares of Common Stock, and in connection with such event, individuals who, on the date of this Agreement, constitute the board of directors of the Company (the "**Board**") cease for any reason to constitute at least a majority of the Board;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3)&nbsp;&nbsp;&nbsp;&nbsp;the consummation of a merger, consolidation, statutory share exchange, or similar business combination transaction that requires adoption by the Company's shareholders (a "**Business**

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**Combination**"), unless immediately following such Business Combination more than 50% of the total voting power of the corporation resulting from such Business Combination (the "**Surviving Corporation**"), or, if applicable, the ultimate parent corporation that directly or indirectly has beneficial ownership (as defined in Rules 13d-3 of the Exchange Act) of 100% of the voting securities eligible to elect directors of the Surviving Corporation, is represented by Common Stock that was outstanding immediately before such Business Combination, or securities into or for which such Common Stock was converted or exchanged;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4)&nbsp;&nbsp;&nbsp;&nbsp;the consummation of a plan of liquidation or dissolution of the Company or a sale of all or substantially all of the Company's assets approved by the shareholders of the Company; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5)&nbsp;&nbsp;&nbsp;&nbsp;the Company has entered into a definitive agreement, the consummation of which would result in the occurrence of any of the events described in clauses (1) through (4) of this definition above.

"**CIBC Act**" means the Change in Bank Control Act of 1978.

"**Class B Common Stock**" has the meaning set forth in Section 3.1(g).

"**Closing**" means the closing of the purchase and sale of the Shares on the Closing Date pursuant to this Agreement.

"**Closing Date**" means the later of (x) the date that is ten (10) Business Days following the day on which the conditions set forth in Article V (other than those that by their nature are to be satisfied at Closing, but subject to the fulfillment or waiver of those conditions) are satisfied or waived, and (y) December 3, 2018, or such other date as the parties may mutually agree.

"**Code**" means the Internal Revenue Code of 1986, including the regulations and published interpretations thereunder.

"**Commission**" has the meaning set forth in the Recitals.

"**Common Stock**" has the meaning set forth in the Recitals, and also includes any securities into which the Common Stock may hereafter be reclassified or changed.

"**Common Shares**" has the meaning set forth in the Recitals.

"**Company**" has the meaning set forth in the preamble.

"**Company's Knowledge**" means with respect to any statement made to the knowledge of the Company, that the statement is based upon the actual knowledge, after reasonable inquiry, of Erik Skovgard or Emily Girsch.

"**Company Counsel**" means Barack Ferrazzano Kirschbaum & Nagelberg LLP.

"**Company Deliverables**" has the meaning set forth in Section 2.2(a).

"**Company Financial Statements**" has the meaning set forth in Section 3.1(h).

"**Company Reports**" has the meaning set forth in Section 3.1(kk).

"**Control**" (including the terms "controlling," "controlled by" or "under common control with") means the possession, direct or indirect, of the power to direct or cause the direction of the management

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and policies of a Person, whether through the ownership of voting securities, by contract or otherwise for purposes of the BHCA or the CIBC Act.

"**Covered Person**" has the meaning set forth in Section 3.1(uu).

"**CRA**" has the meaning set forth in Section 3.1(mm).

"**Delaware Courts**" means the state and federal courts sitting in the State of Delaware.

"**Disqualification Event**" has the meaning set forth in Section 3.1(uu).

"**Effective Date**" means the date on which the initial Registration Statement required by Section 2(a) of the Registration Rights Agreement is first declared effective by the Commission.

"**Environmental Laws**" has the meaning set forth in Section 3.1(k).

"**ERISA Affiliates**" has the meaning set forth in Section 3.1(qq).

"**ERISA Plan**" has the meaning set forth in Section 3.1(qq).

"**ESOP**" means the Company's Employee Stock Ownership Plan.

"**Exchange Act**" means the Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder.

"**FDIC**" means the Federal Deposit Insurance Corporation.

"**Federal Reserve**" means the Board of Governors of the Federal Reserve System.

"**Future Bank**" means any insured depository institution that becomes a Subsidiary of the Company at any time following the date hereof.

"**GAAP**" means U.S. generally accepted accounting principles as applied by the Company.

"**Governmental Entity**" means any court, administrative agency, arbitrator, or commission or other governmental or regulatory authority or instrumentality, whether federal, state, local, or foreign, and any applicable industry self-regulatory organization or securities exchange.

"**IDOB**" means the Iowa Division of Banking.

"**Insurer**" has the meaning set forth in Section 3.1(oo).

"**Intellectual Property**" has the meaning set forth in Section 3.1(q).

"**IRS**" has the meaning set forth in Section 3.1(qq).

"**Law**" means any federal, state, county, municipal or local ordinance, permit, concession, grant, franchise, law, statute, code, rule or regulation or any judgment, ruling, order, writ, injunction or decree promulgated by any Governmental Entity.

"**Legend Removal Date**" has the meaning set forth in Section 4.1(c).

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"**Lien**" means any lien, charge, claim, encumbrance, security interest, right of first offer, right of first refusal, preemptive right, mortgage, deed of trust, pledge, conditional sale agreement, restriction on transfer or other restrictions of any kind, but excluding, in the case of the Shares or the capital stock or equity interests of any Subsidiary, any that are imposed by applicable securities Laws or the Transaction Documents, or any restrictions on transfer, rights of first offer or rights of first refusal that are imposed by the Articles of Incorporation or bylaws of the Company or such Subsidiary, as applicable.

"**Loan Investor**" has the meaning set forth in Section 3.1(oo).

"**Losses**" has the meaning set forth in Section 4.8(a).

"**Material Adverse Effect**" means any event, circumstance, change or occurrence that has had or would reasonably be expected to have (i) a material and adverse effect on the operations, results of operations, assets, liabilities, properties, business or condition (financial or otherwise) of the Company and its Subsidiaries, taken as a whole, or (ii) any adverse impairment to the Company's ability to perform in any material respect on a timely basis its obligations under any Transaction Document; provided, however, that clause (i) shall not include the impact of (A) changes in banking and similar Laws of general applicability or interpretations thereof by any applicable Governmental Entity, (B) changes in GAAP or regulatory accounting requirements applicable to banks and their holding companies generally, (C) changes in general or regional economic conditions, including interest rates, affecting banks generally, or (D) the effects of any action or omission taken by the Company or the Bank in accordance with the requirements of any Transaction Document, or with the prior written consent of Purchaser, except, with respect to clauses (A), (B) and (C), to the extent that the effect of such changes has a disproportionate impact on the Company and the Subsidiaries, taken as a whole, relative to other similarly situated banks and their holding companies generally.

"**Material Contract**" means any of the following agreements of the Company or any of its Subsidiaries:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)&nbsp;&nbsp;&nbsp;&nbsp;any contract containing covenants that limit in any material respect the ability of the Company or any of its Subsidiaries to compete in any line of business or with any person or which involve any material restriction of the geographical area in which, or method by which or with whom, the Company or any of its Subsidiaries may carry on its business (other than as may be required by Law or applicable regulatory authorities), and any contract that could require the disposition of any material assets or line of business of the Company or of its Subsidiaries;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)&nbsp;&nbsp;&nbsp;&nbsp;any joint venture, partnership, strategic alliance, or other similar contract (including any franchising agreement, but in any event excluding introducing broker agreements), and any contract relating to the acquisition or disposition of any material business or material assets (whether by merger, sale of stock or assets, or otherwise), which acquisition or disposition is not yet complete or where such contract contains continuing material obligations or contains continuing indemnity obligations of the Company or any of its Subsidiaries;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3)&nbsp;&nbsp;&nbsp;&nbsp;any real property lease and any other lease with annual rental payments aggregating $75,000 or more;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4)&nbsp;&nbsp;&nbsp;&nbsp;other than with respect to loans, any contract providing for, or reasonably likely to result in, the receipt or expenditure of more than $250,000 on an annual basis, including the payment or receipt of royalties or other amounts calculated based upon revenues or income;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5)&nbsp;&nbsp;&nbsp;&nbsp;any contract or arrangement reasonably likely to result in the expenditure of more than of $250,000 annually under which the Company or any of its Subsidiaries is licensed or otherwise permitted by a third party to use any Intellectual Property that is material to its business (except for any "shrinkwrap" or "click through" license agreements or other agreements for software that is generally available to the public and has not been customized for the Company or its Subsidiaries) or under which a third party is licensed or otherwise permitted to use any Intellectual Property owned by the Company or any of its Subsidiaries;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6)&nbsp;&nbsp;&nbsp;&nbsp;any contract that by its terms limits the payment of dividends or other distributions by the Company or any of its Subsidiaries;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(7)&nbsp;&nbsp;&nbsp;&nbsp;any standstill or similar agreement pursuant to which the Company or any of its Subsidiaries has agreed not to acquire assets or securities of another person;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(8)&nbsp;&nbsp;&nbsp;&nbsp;any contract that would reasonably be expected to prevent, materially delay, or materially impede the Company's ability to consummate the transactions contemplated by this Agreement and the other Transaction Documents;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(9)&nbsp;&nbsp;&nbsp;&nbsp;any contract providing for indemnification by the Company or any of its Subsidiaries of any person, except contracts entered into in the ordinary course of business consistent with past practice;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(10)&nbsp;&nbsp;&nbsp;&nbsp;any contract that contains a put, call, or similar right pursuant to which the Company or any of its Subsidiaries could be required to purchase or sell, as applicable, any equity interests or assets that have a fair market value or purchase price of more than $50,000; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(11)&nbsp;&nbsp;&nbsp;&nbsp;any other contract or agreement which is a "material contract" within the meaning of Item 601(b)(10) of Regulation S-K, other than those that are not required to be filed pursuant to the terms of such Item.

"**Material Permits**" has the meaning set forth in Section 3.1(o).

"**Minimum Ownership Interest**" has the meaning set forth in Section 4.3(b).

"**Money Laundering Laws**" has the meaning set forth in Section 3.1(ii).

"**New Security**" has the meaning set forth in Section 4.23(a).

"**Observer**" has the meaning set forth in Section 4.21(d).

"**OFAC**" has the meaning set forth in Section 3.1(gg).

"**Offering**" has the meaning set forth in Section 4.23(c).

"**Outside Date**" means December 31, 2018.

"**Pension Plan**" has the meaning set forth in Section 3.1(qq).

"**Person**" means an individual, corporation, partnership, limited liability company, trust, business trust, association, joint stock company, joint venture, sole proprietorship, unincorporated organization or Governmental Entity.

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"**Personally Identifiable Information**" means any information that is publicly available or is held or controlled by the Company or any of its Subsidiaries that, alone or in combination with other information, can be used to identify an individual or a specific device.

"**Principal Trading Market**" means the Trading Market on which the Common Stock is primarily listed on and quoted for trading.

"**Private Placement Memorandum**" means the confidential private placement memorandum of the Company, dated May 1, 2018, as supplemented by the supplement to confidential private placement memorandum, dated July 24, 2018.

"**Proceeding**" means an action, claim, suit, investigation, or proceeding (including, without limitation, an investigation or partial proceeding, such as a deposition), whether commenced or threatened.

"**Purchase Price**" means $18.25 per Share.

"**Purchased Shares**" means, with respect to any Purchaser, the number of Shares to be purchased by such Purchaser hereunder.

"**Purchaser**" has the meaning set forth in the Preamble.

"**Purchaser Deliverables**" has the meaning set forth in Section 2.2(b).

"**Purchaser Party**" has the meaning set forth in Section 4.8(a).

"**Questionnaire**" has the meaning set forth in Section 2.2(b)(iii).

"**Registration Rights Agreement**" has the meaning set forth in Section 2.2(a)(iii).

"**Registration Statement**" means a registration statement meeting the requirements set forth in the Registration Rights Agreement and covering the resale by the Purchasers of the Registrable Securities (as defined in the Registration Rights Agreement).

"**Regulation D**" has the meaning set forth in the Recitals.

"**Regulatory Agreement**" has the meaning set forth in Section 3.1(ll).

"**Required Approvals**" has the meaning set forth in Section 3.1(e).

"**Response Period**" has the meaning set forth in Section 4.23(c).

"**Rule 144**" means Rule 144 promulgated by the Commission pursuant to the Securities Act, as such Rule may be amended from time to time, or any similar rule or regulation hereafter adopted by the Commission having substantially the same effect as such Rule.

"**Securities Act**" has the meaning set forth in the Recitals.

"**Series A Preferred Stock**" has the meaning set forth in Section 3.1(g)(i).

"**Series B Preferred Stock**" has the meaning set forth in Section 3.1(g)(i).

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"**Series C Preferred Stock**" has the meaning set forth in Section 3.1(g)(i).

"**Shareholder Litigation**" has the meaning set forth in Section 4.20.

"**Shares**" has the meaning set forth in the Recitals.

"**Significant Subsidiary**" has the meaning set forth in Section 3.1(b).

"**Stock Certificates**" has the meaning set forth in Section 2.2(a)(i).

"**Subscription Amount**" means with respect to each Purchaser, the aggregate amount to be paid for such Purchaser's Purchased Shares hereunder, as indicated on such Purchaser's signature page to this Agreement next to the heading "Aggregate Purchase Price (Subscription Amount)".

"**Subsidiary**" means any entity in which the Company or the Bank, directly or indirectly, owns fifty percent (50%) or more of the outstanding capital stock or otherwise has Control over such entity. For the avoidance of doubt, the Subsidiaries of the Company include the Bank.

"**Superior Proposal**" has the meaning set forth in Section 4.19(f).

"**Surviving Corporation**" has the meaning set forth in this Section 1.1.

"**Takeover Law**" has the meaning set forth in Section 3.1(bb).

"**Tax**" or "**Taxes**" mean (i) any federal, state, local or foreign income, gross receipts, property, sales, use, license, excise, franchise, employment, payroll, withholding, alternative or add on minimum, ad valorem, transfer or excise tax, or any other tax, custom, duty, governmental fee or other like assessment or charge of any kind whatsoever, together with any interest or penalty, imposed by any Governmental Entity and (ii) any liability in respect of any items described in clause (i) above payable by reason of contract, assumption, transferee or successor liability, operation of law, Treasury Regulations Section 1.1502-6(a) (or any predecessor or successor thereof or analogous or similar provisions of Law) or otherwise.

"**Tax Return**" means any return, declaration, report or similar statement filed or required to be filed with respect to any Tax (including any attached schedules), including, without limitation, any information return, claim for refund, amended return or declaration of estimated Tax.

"**Termination Fee**" has the meaning set forth in Section 6.10(c)(i).

"**Third Party Confidentiality Agreement**" has the meaning set forth in Section 4.19(b).

"**Trading Day**" means (i) a day on which the Common Stock is listed or quoted and traded on its Principal Trading Market, or (ii) if the Common Stock is not quoted on any Trading Market, a day on which the Common Stock is quoted in the over-the-counter market as reported by OTC Markets Group, Inc. (including the OTC Pink); provided, that in the event that the Common Stock is not listed or quoted as set forth in (i) and (ii) hereof, then Trading Day shall mean a Business Day.

"**Trading Market**" means whichever of the New York Stock Exchange, the NYSE Amex, the Nasdaq Global Select Market, the Nasdaq Global Market, the Nasdaq Capital Market, or any market administered by the OTC Markets Group on which the Common Stock is listed or quoted for trading on the date in question.

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"**Transaction Documents**" means this Agreement, the schedules and exhibits attached hereto, including the Registration Rights Agreement and any other documents or agreements executed by the Company or the Purchasers in connection with the transactions contemplated hereunder.

"**Transfer Agent**" means the transfer agent, if any, for the Common Shares or, if the Company has not appointed any such transfer agent, the Company.

"**Unsolicited Company Proposal**" has the meaning set forth in Section 4.19(b).

"**Voting Securities**" means the capital stock of the Company that is then entitled to vote generally in the election of directors of the Company.

**ARTICLE II**

**PURCHASE AND SALE**

Section 2.1&nbsp;&nbsp;&nbsp;&nbsp;<u>Closing</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;<u>Purchase of Shares</u>. Subject to the terms and conditions set forth in this Agreement, at the Closing the Company shall issue and sell to each Purchaser, and each Purchaser shall, severally and not jointly, purchase from the Company, the number of shares of Common Stock set forth below such Purchaser's name on the signature page of this Agreement at a per share price equal to the Purchase Price.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;<u>Closing</u>. Unless this Agreement has been terminated pursuant to Section 6.10 and subject to the satisfaction (or waiver, as applicable) of the conditions set forth in Article V and the delivery of the Company Deliverables and the Purchaser Deliverables, the Closing of the purchase and sale of the Shares shall take place remotely by electronic transmission of Closing documents and signature pages on the Closing Date, or such other means and/or date as the parties may mutually agree.

Section 2.2&nbsp;&nbsp;&nbsp;&nbsp;<u>Closing Deliveries</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;On or prior to the Closing, the Company shall issue, deliver or cause to be delivered to each Purchaser (unless otherwise indicated) the following (the "**Company Deliverables**"):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;at the election of each Purchaser, (A) one or more stock certificates (if physical certificates are required by a Purchaser to be held immediately prior to the Closing; if not, then facsimile or ".pdf" copies of such certificates shall suffice for purposes of the Closing with the original stock certificates to be delivered within two (2) Business Days of the Closing Date), evidencing the Shares subscribed for by the Purchaser as of the Closing, registered in the name of such Purchaser or its nominee (the "**Stock Certificates**"), or (B) evidence of book entry of the Shares subscribed for by the Purchaser as of the Closing, registered in the name of such Purchaser or its nominee;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp;a legal opinion of Company Counsel, dated as of the Closing Date and in the form attached hereto as <u>Exhibit C</u>, executed by such counsel and addressed to the Purchasers;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;&nbsp;&nbsp;&nbsp;a registration rights agreement, substantially in the form attached hereto as <u>Exhibit A</u> (the "**Registration Rights Agreement**"), duly executed by the Company and any other purchaser of Common Stock pursuant to an Additional Purchase Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv)&nbsp;&nbsp;&nbsp;&nbsp;a certificate of the Secretary of the Company, in the form attached hereto as <u>Exhibit D</u>, dated as of the Closing Date, (a) certifying the resolutions adopted by the Board or a duly authorized committee thereof approving the transactions contemplated by this Agreement and the other

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Transaction Documents and the issuance of the Shares, (b) certifying the current versions of the Articles of Incorporation and bylaws, as amended, of the Company, and (c) certifying as to the signatures and authority of persons signing the Transaction Documents and related documents on behalf of the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v)&nbsp;&nbsp;&nbsp;&nbsp;a certificate, dated as of the Closing Date and signed by the Chief Executive Officer or Chief Financial Officer of the Company, in the form attached hereto as <u>Exhibit E</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi)&nbsp;&nbsp;&nbsp;&nbsp;a Certificate of Good Standing of the Company from the Iowa Secretary of State as of a recent date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii)&nbsp;&nbsp;&nbsp;&nbsp;a certificate of the Board of Governors of the Federal Reserve Banks to the effect that the Company is a registered bank holding company under the BHCA;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii)&nbsp;&nbsp;&nbsp;&nbsp;a certificate of the IDOB as of a recent date evidencing the corporate existence of the Bank under the Laws of the state of Iowa; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ix)&nbsp;&nbsp;&nbsp;&nbsp;a certificate of the FDIC to the effect that the Bank's deposit accounts are insured by the FDIC under the provisions of the Federal Deposit Insurance Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;On or prior to the Closing, each Purchaser shall deliver or cause to be delivered to the Company the following (the "**Purchaser Deliverables**"):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;such Purchaser's Subscription Amount, in U.S. dollars and in immediately available funds, by wire transfer in accordance with the Company's written instructions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp;a Registration Rights Agreement duly executed by such Purchaser; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;&nbsp;&nbsp;&nbsp;a fully completed and duly executed Accredited Investor Questionnaire (the "**Questionnaire**") reasonably satisfactory to the Company, in the form attached hereto as <u>Exhibit B</u>.

**ARTICLE III**

**REPRESENTATIONS AND WARRANTIES**

Section 3.1&nbsp;&nbsp;&nbsp;&nbsp;<u>Representations and Warranties of the Company</u>. The Company hereby represents and warrants to each of the Purchasers as of the date hereof and as of the Closing Date, except for the representations and warranties that speak as of a specific date, which shall be made only as of such date, except, in each case, as set forth on the applicable section of the Disclosure Schedules attached to this Agreement, and in any other section thereof to the extent the relevance of such disclosure to a particular representation or warranty is reasonably apparent, that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;<u>Subsidiaries</u>. The Company owns all of the outstanding shares of the Bank. The Company has no other direct or indirect Subsidiaries. The Company owns, directly or indirectly, all of the capital stock (except for any preferred securities issued by Subsidiaries that are trusts as set forth on Schedule 3.1(a)) or comparable equity interests of each Subsidiary free and clear of any and all Liens, and all the issued and outstanding shares of capital stock or comparable equity interest of each Subsidiary are validly issued and are fully paid, non-assessable (to the extent such concept is applicable to an equity interest of a Subsidiary) and free of preemptive and similar rights to subscribe for or purchase securities. Except in respect of the Company's Subsidiaries, the Company does not own beneficially, directly or indirectly, more than five percent (5%) of any class of equity securities or similar interests of any

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corporation, bank, business trust, association or similar organization, and is not, directly or indirectly, a partner in any partnership or party to any joint venture.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;<u>Organization and Qualification</u>. The Company and each of its Subsidiaries is an entity duly incorporated or otherwise organized, validly existing, and in good standing under the Laws of the jurisdiction of its incorporation or organization (as applicable), with the requisite power and authority to own or lease and use its properties and assets and to carry on its business as currently conducted. Neither the Company nor any Subsidiary is in violation of any of the provisions of its respective certificate or articles of incorporation, bylaws, or other organizational or charter documents. The Company and each of its Subsidiaries is duly qualified to conduct business and is in good standing as a foreign corporation or other entity in each jurisdiction in which the nature of the business conducted or property owned by it makes such qualification necessary, except where the failure to be so qualified or in good standing, as the case may be, would not in the reasonable judgment of the Company be expected to be material to the Company and its Subsidiaries on a consolidated basis. The Company is duly registered as a bank holding company under the Bank Holding Company Act of 1956 (the "**BHCA**"). The Bank is the Company's only Subsidiary banking institution. The Bank's deposit accounts are insured up to applicable limits by the FDIC, and all premiums and assessments required to be paid in connection therewith have been paid when due and no proceeding for the termination of such insurance is pending or, to the Company's Knowledge, threatened.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;<u>Authorization; Enforcement; Validity</u>. The Company has the requisite corporate power and authority to enter into and to consummate the transactions contemplated by each of the Transaction Documents and otherwise to carry out its obligations hereunder and thereunder, including, without limitation, to issue the Shares in accordance with the terms hereof. The Company's execution and delivery of each of the Transaction Documents and the consummation by it of the transactions contemplated hereby and thereby (including, but not limited to, the sale and delivery of the Shares pursuant to this Agreement and any Additional Purchase Agreements) have been duly authorized by all necessary corporate action on the part of the Company, and no further corporate action is required by the Company, the Board, or the Company's shareholders in connection therewith other than in connection with the Required Approvals. Each of the Transaction Documents has been (or upon delivery will have been) duly executed by the Company and is, or when delivered in accordance with the terms hereof or thereof, will constitute the legal, valid, and binding obligation of the Company enforceable against the Company in accordance with its terms, except (i) as such enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium, liquidation, or similar Laws relating to, or affecting generally the enforcement of, creditors' rights and remedies or by other equitable principles of general application, (ii) as limited by Laws relating to the availability of specific performance, injunctive relief, or other equitable remedies, and (iii) insofar as indemnification and contribution provisions may be limited by applicable Law. There are no shareholder agreements, voting agreements, or other similar arrangements with respect to the Company's capital stock to which the Company is a party or, to the Company's Knowledge, between or among any of the Company's shareholders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;<u>No Conflicts</u>. The execution, delivery, and performance by the Company of the Transaction Documents and the consummation by the Company of the transactions contemplated hereby or thereby (including, without limitation, the issuance of the Shares pursuant to this Agreement and any Additional Purchase Agreements) do not and will not, subject to receipt of the Required Approvals, (i) conflict with or violate any provisions of the Company's or any Subsidiary's certificate or articles of incorporation, bylaws, or otherwise result in a violation of the organizational documents of the Company or any Subsidiary, (ii) conflict with, or constitute a default (or an event that with notice or lapse of time or both would result in a default) under, result in the creation of any Lien upon any of the properties or assets of the Company or any Subsidiary or give to others any rights of termination, amendment, acceleration, or cancellation (with or without notice, lapse of time or both) of, any agreement, indenture

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or instrument to which the Company or any Subsidiary is a party, or (iii) subject to the Required Approvals, conflict with or result in a violation of any Law, rule, regulation, order, judgment, injunction, decree, or other restriction of any court or Governmental Entity to which the Company is subject (including federal and state securities Laws and regulations and the rules and regulations thereunder, and the rules of any self-regulatory organization to which the Company or its securities are subject, including all applicable Trading Markets, assuming in each case, without investigation, the correctness of the representations and warranties made by the Purchasers herein), or by which any property or asset of the Company is bound or affected, except in the case of clauses (ii) and (iii) such as would not have or reasonably be expected to be material to the Company and its Subsidiaries on a consolidated basis.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;<u>Filings, Consents and Approvals</u>. Neither the Company nor any of its Subsidiaries is required to obtain any consent, waiver, authorization or order of, give any notice to, or make any filing or registration with, any Governmental Entity or other Person in connection with the execution, delivery and performance by the Company of the Transaction Documents (including, without limitation, the issuance of the Shares), other than (i) the filing with the Commission of one or more Registration Statements in accordance with the requirements of the Registration Rights Agreement, (ii) filings required by applicable state securities Laws, (iii) the filing of a Notice of Exempt Offering of Securities on Form D with the Commission under Regulation D of the Securities Act and (iv) those that have been made or obtained prior to the date of this Agreement, or will otherwise be timely obtained (collectively, the "**Required Approvals**").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;&nbsp;&nbsp;<u>Issuance of the Shares</u>. The issuance of the Shares has been duly authorized and the Shares, when issued and paid for in accordance with the terms of the Transaction Documents, will be duly and validly issued, fully paid, and non-assessable and free and clear of all Liens. Assuming the accuracy of the representations and warranties of the Purchasers in this Agreement, the Shares will be issued in compliance with all applicable federal and state securities Laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;&nbsp;&nbsp;&nbsp;<u>Capitalization</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;The authorized capital stock of the Company consists of (1) 25,000,000 shares of Common Stock, (2) 25,000,000 shares of Class B Common Stock, par value $0.01 per share ("**Class B Common Stock**"), and (3) 100,000 shares of preferred stock, par value $0.01 per share, of which (x) 20,000 have been designated Series A Non-Cumulative Convertible Perpetual Preferred Stock, par value $0.01 per share (the "**Series A Preferred Stock**"), (y) 20,000 have been designated Series B Non- Cumulative Convertible Perpetual Preferred Stock, par value $0.01 per share (the "**Series B Preferred Stock**"), and (z) 2,500 have been designated Series C Non-Cumulative Convertible Perpetual Preferred Stock, par value $0.01 per share (the "**Series C Preferred Stock**"). As of the date hereof, there are 5,450,770 shares of Common Stock issued and 5,391,970 shares of Common Stock outstanding (58,800 shares of Common Stock are in Treasury); zero shares of Class B Common Stock issued and outstanding, 5,401 shares of Series A Preferred Stock issued and outstanding, 10,283 shares of Series B Preferred Stock issued and outstanding, and 2,500 shares of Series C Preferred Stock issued and outstanding. Other than shares of Common Stock that have been reserved for issuance upon the conversion of outstanding shares of Class B Common Stock, Series A Preferred Stock, Series B Preferred Stock or Series C Preferred Stock, no shares of Common Stock are reserved for issuance as of the date hereof. All of the outstanding shares of capital stock of the Company are duly authorized, validly issued, fully paid and non-assessable, have been issued in compliance in all material respects with all applicable federal and state securities Laws, and none of such outstanding shares was issued in violation of any preemptive rights or similar rights to subscribe for or purchase any capital stock of the Company. Other than the adjustments to the applicable conversion prices described in the Articles of Incorporation with respect to the Series A Preferred Stock, Series B Preferred Stock and Series C Preferred Stock, no shares of the Company's capital stock outstanding on the date hereof are subject to preemptive rights or any other

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similar rights. There are no outstanding options, warrants, scrip, rights to subscribe to, calls, or contractual commitments of any character whatsoever relating to, or, other than the shares of Class B Common Stock, Series A Preferred Stock, Series B Preferred Stock and Series C Preferred Stock outstanding as of the date hereof, securities or rights convertible into, or exercisable or exchangeable for, any shares of capital stock of the Company or any of its Subsidiaries, or, other than the Transaction Documents, other contracts, commitments, understandings or arrangements by which the Company or any of its Subsidiaries is or may become bound to issue additional shares of capital stock of the Company or any of its Subsidiaries. Except as set forth on Schedule 3.1(g)(i), there are no material outstanding debt securities, notes, credit agreements, credit facilities or other agreements, documents or instruments evidencing indebtedness of the Company or any of its Subsidiaries or by which the Company or any of its Subsidiaries is bound. There are no outstanding securities or instruments of the Company or any of its Subsidiaries that contain any redemption or similar provisions, and there are no contracts, commitments, understandings or arrangements by which the Company or any of its Subsidiaries is or may become bound to redeem a security of the Company or any of its Subsidiaries, except, in each of the foregoing cases, as set forth in the Articles of Incorporation. The Company and its Subsidiaries do not have any stock appreciation rights or "phantom stock" plans or agreements or any similar plan or agreement. There are no securities or instruments issued by or to which the Company or any of its Subsidiaries is a party containing anti-dilution or similar provisions that will be triggered by the issuance of the Shares pursuant to this Agreement and the other Transaction Documents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp;Immediately following the Closing, assuming that the Company issues 821,917 shares of Common Stock pursuant to this Agreement and any Additional Purchase Agreements, and except for any other increase or decrease in the outstanding shares of Common Stock in compliance with this Agreement: (a) 6,213,887 shares of Common Stock, (b) zero shares of Class B Common Stock, (c) 5,401 shares of Series A Preferred Stock, (d) 10,283 shares of Series B Preferred Stock, (e) 2,500 shares of Series C Preferred Stock and (f) zero shares of Non-Voting Common Stock will be issued and outstanding.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)&nbsp;&nbsp;&nbsp;&nbsp;<u>Company Financial Statements</u>. The audited consolidated balance sheets of the Company and its Subsidiaries as of December 31, 2017, 2016 and 2015 and the related consolidated statements of operations, changes in shareholders' equity and cash flows for the three years ended December 31, 2017, together with the notes thereto (the "**Audited Company Financial Statements**"), and the unaudited consolidated balance sheets of the Company and its Subsidiaries as of July 31, 2018 and the related consolidated statements of operations, changes to shareholders' equity and cash flows for the seven (7) months then ended (the "**Interim Company Financial Statements**" and, together with the Audited Company Financial Statements, the "**Company Financial Statements**") (1) have been prepared from, and are in accordance with the books and records of the Company and its Subsidiaries, (2) have been prepared in all material respects in accordance with GAAP applied on a consistent basis during the periods involved, except as may be otherwise specified in such financial statements or the notes thereto and except that the unaudited financial statements may not contain all footnotes required by GAAP and except for normal, year-end audit adjustments, and fairly present in all material respects the balance sheet of the Company and its Subsidiaries taken as a whole as of and for the dates thereof and the results of operations, shareholders' equity, and cash flows for the periods then ended, subject, in the case of unaudited financial statements, to normal, year-end audit adjustments. The Company has made available to the Purchasers complete and accurate copies of the Company Financial Statements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;<u>Tax Matters</u>. The Company and each of its Subsidiaries has (i) timely filed all material foreign, U.S. federal, state and local Tax Returns that are or were required to be filed, and all such Tax Returns are true, correct and complete in all material respects, (ii) paid all material Taxes required to be paid by it and any other material assessment, fine or penalty levied against it, whether or not shown or determined to be due on such Tax Returns, other than any such amounts (x) currently payable without

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penalty or interest, or (y) being contested in good faith by appropriate proceedings and for which adequate reserves have been established in accordance with GAAP; (iii) timely withheld, collected or deposited as the case may be all material Taxes (determined both individually and in the aggregate) required to be withheld, collected or deposited by it, and to the extent required, have been paid to the relevant taxing authority in accordance with applicable Law; and (iv) complied with all applicable information reporting requirements in all material respects. Neither the Company nor any Subsidiary (i) is subject to any outstanding audit, assessment, dispute or claim concerning any material Tax liability of the Company or any of its Subsidiaries either within the Company's Knowledge or claimed, pending or raised by an authority in writing; (ii) is a party to, bound by or otherwise subject to any obligation under any Tax sharing or Tax indemnity agreement or similar contract or arrangement (other than an agreement, similar contract or arrangement to which only the Company and its Subsidiaries are parties); (iii) has participated in a "listed transaction" within the meaning of Treasury Regulation Section 1.6011- 4(b)(2); or (iv) has any liability for Taxes of any Person arising from the application of Treasury Regulation Section 1.1502-6 or any analogous provision of state, local or foreign Law, or as a transferee or successor, by contract, or otherwise. No claim has been made by a tax authority in a jurisdiction where the Company or any Subsidiary does not pay Taxes or file Tax Returns asserting that the Company or any Subsidiary is or may be subject to Taxes assessed by such jurisdiction. Neither the Company nor any Subsidiary will be required to include any item of income in, or exclude any item of deduction from, taxable income for any period (or any portion thereof) ending after the Closing as a result of any: (1) installment sale or other open transaction disposition made on or prior to the Closing; (2) prepaid amount received on or prior to the Closing; (3) written and legally binding agreement with a Governmental Entity relating to taxes for any taxable period ending on or before the Closing; (4) change in method of accounting in any taxable period ending on or before the Closing; or (5) election under Section 108(i) of the Code. The Company and its Subsidiaries have not experienced an "ownership change" under Section 382 of the Code, and the consummation of the transactions contemplated by this Agreement and any Additional Purchase Agreements will not cause the Company and its Subsidiaries to experience an "ownership change" under Section 382 of the Code.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j)&nbsp;&nbsp;&nbsp;&nbsp;<u>Material Changes</u>. Since the date of the latest audited financial statements included within the Company Financial Statements, (i) there have been no events, occurrences, or developments that have had or would reasonably be expected to have, either individually or in the aggregate, a Material Adverse Effect, (ii) the Company and its Subsidiaries have not incurred any material liabilities (contingent or otherwise) other than (A) trade payables, expenses, and other liabilities incurred in the ordinary course of business consistent with past practice, (B) obligations contemplated by the Transaction Documents and any Additional Purchase Agreements and (C) liabilities not required to be reflected in the Company Financial Statements pursuant to GAAP, (iii) the Company and its Subsidiaries have not altered materially their method of accounting or the manner in which they keep their accounting books and records, except as required by GAAP, by any Governmental Authority or by applicable tax Laws, (iv) except as reflected on the Interim Company Financial Statements, the Company has not declared or made any dividend or distribution of cash or other property to its shareholders or purchased, voluntarily redeemed, or made any agreements to purchase or voluntarily redeem any shares of its capital stock and (v) there has not been any material change or amendment to, or any waiver of any material right by the Company or any of its Subsidiaries under, any Material Contract under which the Company or any of its Subsidiaries is bound or subject.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k)&nbsp;&nbsp;&nbsp;&nbsp;<u>Environmental Matters</u>. Neither the Company nor any of its Subsidiaries (i) is or has been in violation of any Law of any Governmental Entity relating to the use, disposal or release of hazardous or toxic substances or relating to the protection or restoration of the environment or human exposure to hazardous or toxic substances (collectively, "**Environmental Laws**"), (ii) is or has been liable for any off-site disposal or contamination pursuant to any Environmental Laws, (iii) except for OREO acquired after the date hereof in the ordinary course of business, owns or operates, or owned or

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operated any real property contaminated with any substance that is in violation of any Environmental Laws or (iv) is or has been subject to any claim relating to any Environmental Laws; in each case, which violation, contamination, liability or claim has had or would reasonably be expected to be material to the Company and its Subsidiaries on a consolidated basis; and there is no pending or, to the Company's Knowledge, threatened investigation that might lead to such a claim. Except as would not be material to the Company and its Subsidiaries on a consolidated basis, there are and have been no circumstances or conditions (including the presence of asbestos, underground storage tanks, lead products, polychlorinated biphenyls, prior manufacturing operations, dry-cleaning or automotive services) involving the Company or any of its Subsidiaries, or any currently or formerly owned or operated property of the Company or any of its Subsidiaries, that would reasonably be expected to result in any claim, liability, investigation, cost or restriction against the Company or any of its Subsidiaries, or result in any restriction on the ownership, use, or transfer of any property pursuant to any Environmental Law, or adversely affect the value of any currently owned property (other than OREO acquired after the date hereof in the ordinary course of business) of the Company or any of its Subsidiaries.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l)&nbsp;&nbsp;&nbsp;&nbsp;<u>Litigation</u>. There is and has been no Action pending or, to the Company's Knowledge, threatened, which (i) adversely affects or challenges the legality, validity, or enforceability of any of the Transaction Documents or the issuance of Purchased Shares pursuant to this Agreement or any Additional Purchase Agreement, or (ii) is reasonably likely to be material to the Company or any Subsidiary, individually or in the aggregate. Neither the Company nor any Subsidiary, nor any director or officer thereof, is or has been the subject of any Action involving a claim of violation of or liability under federal or state securities Laws or a claim of breach of fiduciary duty nor is any Action, to the Company's Knowledge, currently threatened. There is no Action by the Company or any Subsidiary pending or which the Company or any Subsidiary intends to initiate (other than collection or similar claims in the ordinary course of business). There has not been, and to the Company's Knowledge there is not pending or contemplated, any investigation by the Commission involving the Company or any current or former director or officer of the Company. There are and have been no outstanding orders, judgments, injunctions, awards or decrees of any court, arbitrator or governmental or regulatory body against the Company or any executive officers or directors of the Company in their capacities as such, which individually or in the aggregate, would reasonably be expected to be material to the Company or any Subsidiary.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m)&nbsp;&nbsp;&nbsp;&nbsp;<u>Employment Matters</u>. No labor dispute exists or, to the Company's Knowledge, is imminent with respect to any of the employees of the Company or any Subsidiary that would be, or would reasonably be expected to be, material to the Company and its Subsidiaries on a consolidated basis. None of the employees of the Company or any Subsidiary is a member of a union that relates to such employee's relationship with the Company or any Subsidiary, and neither the Company nor any of its Subsidiaries is a party to a collective bargaining agreement, and the Company and each Subsidiary believes that its relationship with its employees is good. To the Company's Knowledge, there is no activity involving any of the employees of the Company or any of its Subsidiaries seeking to certify a collective bargaining unit or similar organization. To the Company's Knowledge, no executive officer is, or is as of the date hereof expected to be, in violation of any material term of any employment contract, confidentiality, disclosure or proprietary information agreement or non-competition agreement, or any other contract or agreement or any restrictive covenant in favor of a third party, and to the Company's Knowledge, the continued employment of each such executive officer does not subject the Company or any Subsidiary to any liability with respect to any of the foregoing matters. Since December 31, 2013, the Company and each of its Subsidiaries are and at all times have been in compliance with all Laws and regulations relating to employment and employment practices, immigration, terms and conditions of employment and wages and hours, except where the failure to be in compliance would not have or reasonably be material to the Company and its Subsidiaries on its consolidated basis. As of the date hereof, no material employee has given notice to the Company or any of its Subsidiaries of his or her

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intent to terminate his or her employment or service relationship with the Company or any of its Subsidiaries. The Company and its Subsidiaries are and at all times have been in material compliance with all Laws concerning the classification of employees and independent contractors and have properly classified all such individuals for purposes of participation in employee benefit plans.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n)&nbsp;&nbsp;&nbsp;&nbsp;<u>Compliance</u>. Since December 31, 2013, neither the Company nor any of its Subsidiaries (i) are or has been in default under or in violation of (and no event has occurred that has not been waived that, with notice or lapse of time or both, would result in a default by the Company or any of its Subsidiaries under), nor has the Company or any of its Subsidiaries received written notice of a claim that it is in default under or that it is in violation of, any Material Contract (whether or not such default or violation has been waived), (ii) are or has been in violation of any order of which the Company has been made aware in writing of any court, arbitrator, or governmental body having jurisdiction over the Company or its Subsidiaries or their respective properties or assets, (iii) are or has been in violation of, or in receipt of written notice that it is in violation of, any statute, rule, regulation, policy, guideline, or order of any Governmental Entity or self-regulatory organization (including any Principal Trading Market), applicable to the Company or any of its Subsidiaries, or which would have the effect of revoking or limiting FDIC deposit insurance, except in each of the foregoing cases as would not have or reasonably be material to the Company. The Company and its Subsidiaries have conducted its business in material compliance with all applicable federal, state and foreign Laws, orders, judgments, decrees, rules, regulations, including all Laws and regulations restricting activities of bank holding companies and banking organizations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o)&nbsp;&nbsp;&nbsp;&nbsp;<u>Regulatory Permits</u>. The Company and each of its Subsidiaries possess and since January 1, 2016 have possessed all required certificates, authorizations, consents, licenses, franchises, variances, exceptions, orders, approvals and permits issued by the appropriate Governmental Entities with respect to the Company and its Subsidiaries' business, except where the failure to possess such certificates, authorizations, consents, or permits, individually or in the aggregate, has not had and would not reasonably be expected to be material to the Company and its Subsidiaries on a consolidated basis ("**Material Permits**"), and (i) neither the Company nor any of its Subsidiaries has received any notice in writing of proceedings relating to the revocation or material adverse modification of any such Material Permits, and (ii) to the Company's Knowledge, there are no facts or circumstances that would give rise to the revocation or material adverse modification of any Material Permits.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p)&nbsp;&nbsp;&nbsp;&nbsp;<u>Title to Assets</u>. The Company and its Subsidiaries have good and marketable title to all real property and tangible personal property owned by them which is material to the business of the Company and its Subsidiaries, taken as a whole, in each case free and clear of all Liens, except such as do not materially affect the value of such property or do not interfere with the use made and proposed to be made of such property by the Company and any of its Subsidiaries. Any real property and facilities held under lease by the Company and any of its Subsidiaries are held by them under valid, subsisting, and enforceable leases with such exceptions as are not material and do not interfere with the use made and proposed to be made of such property and facilities by the Company and its Subsidiaries. No notice of a claim of default by any party to any lease entered into by the Company or any of its Subsidiaries has been delivered to either the Company or any of its Subsidiaries or is now pending, and there does not exist any event or circumstance that with notice or passing of time, or both, would constitute a default or excuse performance by any party thereto. None of the owned or leased premises or properties of the Company or any of its Subsidiaries is subject to any current or potential interests of third parties or other restrictions or limitations that would impair or be inconsistent in any material respect with the current use of such property by the Company or any of its Subsidiaries, as the case may be.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q)&nbsp;&nbsp;&nbsp;&nbsp;<u>Intellectual Property; Data Security</u>. The Company and its Subsidiaries own, possess, license, or have other rights to use all foreign and domestic patents, patent applications, trade and service

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marks, trade and service mark registrations, trade names, copyrights, inventions, trade secrets, technology, Internet domain names, know-how, and other intellectual property (collectively, the "**Intellectual Property**") necessary for the conduct of their respective businesses as now conducted or as proposed to be conducted free and clear of all Liens (other than rights of licensors) and such Intellectual Property is valid, subsisting and enforceable, and is not subject to any outstanding order, judgment, decree or agreement adversely affecting the Company's or its Subsidiaries' use of, or rights to, such Intellectual Property, except where the failure to own, possess, license, or have such rights would not have or reasonably be expected to be material to the Company and its Subsidiaries on a consolidated basis. Except where such violations or infringements would not be material to the Company and its Subsidiaries on a consolidated basis, (i) there are no rights of third parties (other than licensors) to any such Intellectual Property, (ii) there is and has been no infringement by third parties of any such Intellectual Property, (iii) there is and has been no pending or threatened action, suit, proceeding, or claim by others challenging the Company's and its Subsidiaries' rights in or to any such Intellectual Property, (iv) there is and has been no pending or threatened action, suit, proceeding, or claim by others challenging the validity or scope of any such Intellectual Property, and (v) there is and has been no pending or threatened action, suit, proceeding, or claim by others that the Company and/or any Subsidiary infringes or otherwise violates any patent, trademark, copyright, trade secret, or other proprietary rights of others. Except as would not reasonably be expected to be material to the Company and its Subsidiaries, taken as a whole, (A) the Company and its Subsidiaries are and at all times have been in compliance with all applicable Laws related to data privacy and data security and (B) to the Company's Knowledge, there has been no material loss or theft of data or security breach or unauthorized access or use relating to data (including Personally Identifiable Information) in the possession, custody or control of the Company or any of its Subsidiaries. (1) No claims have been asserted or, to the Company's Knowledge, threatened in writing against the Company or any of its Subsidiaries relating to data security, privacy, or the storage, transfer, use or processing of data (including Personally Identifiable Information), and (2) to the Company's Knowledge, the Company and its Subsidiaries are not and have never been the subject of any audits, investigations or other inquiries or Proceedings relating to data security, privacy, or the storage, transfer, use or processing of data (including Personally Identifiable Information) from any Governmental Entity, in the case of clause (1) or clause (2).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r)&nbsp;&nbsp;&nbsp;&nbsp;<u>Insurance</u>. The Company and each of the Subsidiaries are insured by insurers of recognized financial responsibility against such losses and risks and in such amounts as the Company believes to be prudent and customary in the businesses and locations in which and where the Company and the Subsidiaries are engaged. All premiums due and payable under all such policies and bonds have been timely paid, and the Company and its Subsidiaries are in material compliance with the terms of such policies and bonds. Neither the Company nor any of its Subsidiaries has received any notice of cancellation of any such insurance, nor, to the Company's Knowledge, will it or any Subsidiary be unable to renew their respective existing insurance coverage as and when such coverage expires or to obtain similar coverage from similar insurers as may be necessary to continue its business at a cost that would not have a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(s)&nbsp;&nbsp;&nbsp;&nbsp;<u>Transactions With Affiliates and Employees</u>. None of the Affiliates, officers or directors of the Company or any Subsidiary and, to the Company's Knowledge, none of the employees of the Company or any Subsidiary, is presently a party to any transaction with the Company or any Subsidiary or to a presently contemplated transaction (other than for services as employees, officers, and directors) that would be required to be disclosed pursuant to Item 404(a) of Regulation S-K promulgated under the Securities Act if the Common Stock was required to be registered with the Commission under the Securities Act or the Exchange Act, other than transactions eligible for the disclosure contemplated by Instruction 4.c thereto.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(t)&nbsp;&nbsp;&nbsp;&nbsp;<u>Internal Control Over Financial Reporting</u>. The Company and its Subsidiaries maintain internal control over financial reporting (as such term is defined in Rule 13a-15(f) under the Exchange Act) designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with GAAP and have disclosed, based on its most recent evaluation prior to the date of this Agreement, to the Company's outside auditors and the audit committee of the Board (A) any significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting that are reasonably likely to adversely affect the Company's ability to record, process, summarize, and report financial information, and (B) any fraud, whether or not material, that involves management or other employees who have a significant role in the Company's internal control over financial reporting. Since December 31, 2015, (i) neither the Company nor any of its Subsidiaries nor, to the Company's Knowledge, any director, officer, employee, auditor, accountant or representative of the Company or any of its Subsidiaries has received or otherwise had or obtained knowledge of any material complaint, allegation, assertion or claim, whether written or oral, regarding the accounting or auditing practices, procedures, methodologies or methods of the Company or any of its Subsidiaries or their respective internal accounting controls, including any material complaint, allegation, assertion or claim that the Company or any of its Subsidiaries has engaged in questionable accounting or auditing practices, and (ii) no attorney representing the Company or any of its Subsidiaries, whether or not employed by the Company or any of its Subsidiaries, has reported evidence of a violation of securities Laws, breach of fiduciary duty or similar violation by the Company, its Subsidiaries or any of its officers, directors, employees or agents to the Board or any committee thereof or to any director or officer of the Company or any of its Subsidiaries.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(u)&nbsp;&nbsp;&nbsp;&nbsp;<u>Certain Fees</u>. Other than D.A. Davidson & Co., no person or entity will have, as a result of the transactions contemplated by this Agreement or any Additional Purchase Agreement, any valid right, interest, or claim against or upon the Company, any Subsidiary or any Purchaser for any commission, fee, or other compensation pursuant to any agreement, arrangement, or understanding entered into by or on behalf of the Company or any Subsidiary.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v)&nbsp;&nbsp;&nbsp;&nbsp;<u>Private Placement</u>. Assuming the accuracy of the Purchasers' representations and warranties set forth in Section 3.2 of this Agreement and the accuracy of the information disclosed in the Questionnaires, no registration under the Securities Act is required for the offer and sale of the Shares by the Company to the Purchasers under the Transaction Documents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(w)&nbsp;&nbsp;&nbsp;&nbsp;<u>Registration Rights</u>. Except as contemplated by the Registration Rights Agreement, and except for the rights set forth in the Articles of Incorporation with respect to Series A Preferred Stock, Series B Preferred Stock and Series C Preferred Stock, as applicable, no Person has any right to cause the Company or any Subsidiary to effect the registration under the Securities Act of any securities of the Company or any Subsidiary.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x)&nbsp;&nbsp;&nbsp;&nbsp;<u>No Objections</u>. Neither the FDIC nor the IDOB has issued any order or taken any similar action preventing or suspending the issuance or sale of the Purchased Shares to the Purchasers. The Company has filed, and will continue to file, with the FDIC and the IDOB, as applicable, all materials required to be filed by the Company in connection with the issuance and sale of the Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(y)&nbsp;&nbsp;&nbsp;&nbsp;<u>Regulation D Exemption</u>. Assuming the accuracy of the Purchasers' representations and warranties set forth in Section 3.2, none of the Company, its Subsidiaries nor, to the Company's Knowledge, any of its Affiliates or any Person acting on its behalf has, directly or indirectly, at any time within the past six months, made any offers or sales of any Company security or solicited any offers to buy any security under circumstances that would eliminate the availability of the exemption from registration under Regulation D under the Securities Act in connection with the offer and sale by the Company of the Shares as contemplated hereby.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(z)&nbsp;&nbsp;&nbsp;&nbsp;<u>Investment Company</u>. Neither the Company nor any of its Subsidiaries is required to be registered as, and is not an Affiliate of, and immediately following the Closing will not be required to register as, an "investment company" within the meaning of the Investment Company Act of 1940, as amended, and neither the Company nor any Subsidiary sponsors any person that is such an investment company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(aa)&nbsp;&nbsp;&nbsp;&nbsp;<u>Unlawful Payments</u>. Neither the Company nor any of its Subsidiaries, nor to the Company's Knowledge, any directors, officers, employees, agents, or other Persons acting at the direction of or on behalf of the Company or any of its Subsidiaries has, in the course of its actions for, or on behalf of, the Company or any of its Subsidiaries (a) directly or indirectly, used any corporate funds for unlawful contributions, gifts, entertainment, or other unlawful expenses relating to foreign or domestic political activity, (b) made any direct or indirect unlawful payments to any foreign or domestic governmental officials or employees or to any foreign or domestic political parties or campaigns from corporate funds, (c) violated any provision of the Foreign Corrupt Practices Act of 1977, or (d) made any other unlawful bribe, rebate, payoff, influence payment, kickback, or other material unlawful payment to any foreign or domestic government official or employee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(bb)&nbsp;&nbsp;&nbsp;&nbsp;<u>Application of Takeover Protections; Rights Agreements</u>. The Company has not adopted any shareholder rights plan or similar arrangement relating to accumulations of beneficial ownership of its Common Stock or a Change in Control of the Company. The Company and the Board have taken or will take all necessary action, if any, in order to render inapplicable any control share acquisition, business combination, poison pill (including any distribution under a rights agreement), or other similar anti-takeover provision under the Company's Articles of Incorporation or other organizational documents or the Laws of the jurisdiction of its incorporation or otherwise which is or could become applicable to Purchaser solely as a result of the transactions contemplated by this Agreement, including, without limitation, the Company's issuance of the Shares and any Purchaser's ownership of the Purchased Shares (each, a "**Takeover Law**").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(cc)&nbsp;&nbsp;&nbsp;&nbsp;<u>No Undisclosed Liabilities</u>. There are no material liabilities or obligations of the Company or any of the Subsidiaries of any kind whatsoever, whether accrued, contingent, absolute, determined, determinable, or otherwise, that are required by GAAP to be set forth on a consolidated balance sheet of the Company and the Company Subsidiaries or in the notes thereto, except for (i) liabilities reflected or reserved against or provided for in the Company Financial Statements or that are otherwise disclosed in the footnotes to the financial statements for the year ended December 31, 2017, (ii) liabilities that have arisen in the ordinary and usual course of business and consistent with past practice since December 31, 2017 and (iii) liabilities incurred in connection with the negotiation and entry into, or under, the Transaction Documents or any Additional Purchase Agreements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(dd)&nbsp;&nbsp;&nbsp;&nbsp;<u>Off Balance Sheet Arrangements</u>. There is no transaction, arrangement, or other relationship between the Company (or any of its Subsidiaries) and an unconsolidated or other off-balance sheet entity that is required to be disclosed by the Company in its Company Financial Statements and is not so disclosed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ee)&nbsp;&nbsp;&nbsp;&nbsp;<u>Acknowledgment Regarding Purchasers' Purchase of Shares</u>. The Company acknowledges and agrees that each Purchaser is acting solely in the capacity of an arm's length purchaser with respect to the Transaction Documents and the transactions contemplated hereby and thereby. The Company further acknowledges that each Purchaser is not acting as a financial advisor or fiduciary of the Company (or in any similar capacity) with respect to the Transaction Documents and the transactions contemplated thereby and any advice given by any Purchaser or any of their respective representatives or agents in connection with the Transaction Documents and the transactions contemplated thereby is merely incidental to such Purchaser's purchase of the Shares.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ff)&nbsp;&nbsp;&nbsp;&nbsp;<u>Absence of Manipulation</u>. The Company has not, and to the Company's Knowledge no one acting on its behalf has, taken, directly or indirectly, any action designed to cause the stabilization or manipulation of the price of any security of the Company to facilitate the sale or resale of any of the Purchased Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(gg)&nbsp;&nbsp;&nbsp;&nbsp;<u>OFAC</u>. Neither the Company nor any Subsidiary nor, to the Company's Knowledge, any director, officer, agent, employee, Affiliate, or Person acting on behalf of the Company or any Subsidiary is currently subject to any U.S. sanctions administered by the Office of Foreign Assets Control of the U.S. Treasury Department ("**OFAC**"); and the Company will not knowingly use the proceeds of the sale of the Purchased Shares towards any sales or operations in Cuba, Iran, Syria, Sudan or any other country sanctioned by OFAC or for the purpose of financing the activities of any Person currently subject to any U.S. sanctions administered by OFAC.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(hh)&nbsp;&nbsp;&nbsp;&nbsp;<u>Money Laundering Laws</u>. The operations of each of the Company and any Subsidiary are, and, since December 31, 2013, have been conducted at all times, in compliance in all material respects with the money laundering statutes of applicable jurisdictions, the rules and regulations thereunder, and any related or similar rules, regulations, or guidelines, issued, administered, or enforced by any applicable Governmental Entity (collectively, the "**Money Laundering Laws**"), and to the Company's Knowledge, no action, suit, or proceeding by or before any court or Governmental Entity, authority, or body or any arbitrator involving the Company and/or any Subsidiary with respect to the Money Laundering Laws is pending or threatened.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp;<u>No Additional Agreements</u>. The Company has no agreements or understandings (including, without limitation, side letters) with any Person to purchase shares of Common Stock on terms more favorable to such Person than as set forth herein (after giving effect to Section 4.16, if applicable).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(jj)&nbsp;&nbsp;&nbsp;&nbsp;<u>Reports, Registrations and Statements</u>. Since December 31, 2015, the Company and each Subsidiary have filed all material reports, registrations, documents, filings, submissions and statements, together with any required amendments thereto, that it was required to file with the Federal Reserve, the FDIC, the IDOB and any other applicable federal or state securities or banking authorities. All such reports and statements filed with any such regulatory body or authority are collectively referred to herein as the "**Company Reports**." All such Company Reports were filed on a timely basis or the Company or the applicable Subsidiary, as applicable, received a valid extension of such time of filing and has filed any such Company Reports prior to the expiration of any such extension. As of their respective dates, the Company Reports complied in all material respects with all the rules and regulations promulgated by the Federal Reserve, the FDIC, the IDOB and any other applicable foreign, federal, or state securities or banking authorities, as the case may be.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(kk)&nbsp;&nbsp;&nbsp;&nbsp;<u>Regulatory Capitalization</u>. As of July 31, 2018, the Bank was considered "well capitalized" under the FDIC's regulatory framework for prompt corrective action (12 C.F.R. §325.103(b)(1)).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ll)&nbsp;&nbsp;&nbsp;&nbsp;<u>Agreements with Regulatory Agencies</u>. Neither the Company nor any Subsidiary is subject to any cease-and-desist or other similar order or enforcement action issued by, or is a party to any written agreement, consent agreement, or memorandum of understanding with, or is a party to any commitment letter or similar undertaking to, or is subject to any capital directive by, or since December 31, 2013, has adopted any board resolutions at the request of, any Governmental Entity that currently restricts in any material respect the conduct of its business or that in any material manner relates to its capital adequacy, its liquidity and funding policies and practices, its ability to pay dividends, its credit, risk management or compliance policies, its internal controls, its management, or its operations or business (each item in this sentence, a "**Regulatory Agreement**"), nor has the Company or any

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Subsidiary been advised in writing since December 31, 2013 by any Governmental Entity that it intends to issue, initiate, order, or request any such Regulatory Agreement. The Company and each of its Subsidiaries are in compliance in all material respects with all Regulatory Agreements applicable to them. The statements in this Section 3.1(ll) are for risk-allocation purposes only, and notwithstanding anything in this Agreement to the contrary, nothing in this Agreement shall constitute an obligation to disclose any information that constitutes confidential supervisory information (as defined in 12 C.F.R. Part 261).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(mm)&nbsp;&nbsp;&nbsp;&nbsp;<u>Compliance with Certain Banking Regulations</u>. There are no facts or circumstances, and the Company has no reason to believe that any facts or circumstances exist, that would cause the Bank (i) to be deemed not to be in satisfactory compliance with the Community Reinvestment Act ("**CRA**") and the regulations promulgated thereunder or to be assigned a CRA rating by federal or state banking regulators of lower than "satisfactory," (ii) to be deemed to be operating in violation, in any material respect, of the Bank Secrecy Act, the Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism (USA PATRIOT) Act of 2001, any order issued with respect to anti-money laundering by OFAC, or any other anti-money laundering Law, (iii) to be deemed not to be in satisfactory compliance, in any material respect, with the Home Mortgage Disclosure Act, the Fair Housing Act, the Community Reinvestment Act, the Equal Credit Opportunity Act, the Flood Disaster Protection Act, the Dodd-Frank Wall Street Reform and Consumer Protection Act, or (iv) to be deemed not to be in satisfactory compliance, in any material respect, with all applicable privacy of customer information requirements contained in any applicable federal and state privacy Laws as well as the provisions of all information security programs adopted by the Bank.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(nn)&nbsp;&nbsp;&nbsp;&nbsp;<u>No General Solicitation or General Advertising</u>. Neither the Company nor, to the Company's Knowledge, any person acting on its behalf has engaged or will engage in any form of general solicitation or general advertising (within the meaning of Regulation D under the Securities Act) in connection with any offer or sale of the Shares pursuant to this Agreement and the other Transaction Documents or any Additional Purchase Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(oo)&nbsp;&nbsp;&nbsp;&nbsp;<u>Loan Portfolio</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;Other than as may not be reasonably expected to have a Material Adverse Effect, each of the Company and its Subsidiaries has complied with in all material respects, and all documentation in connection with the origination, processing, underwriting and credit approval of any loan, lease or other extension of credit or commitment to extend credit (each, a "**Loan**") originated, purchased or serviced by the Company or any of its Subsidiaries satisfied in all material respects, (A) all applicable Laws with respect to the origination, insuring, purchase, sale, pooling, servicing, subservicing or filing of claims in connection with Loans, including all Laws relating to real estate settlement procedures, consumer credit protection, truth in lending Laws, usury limitations, fair housing, transfers of servicing, collection practices, equal credit opportunity and adjustable rate mortgages, (B) the responsibilities and obligations relating to Loans set forth in any contract or agreement between the Company or any of its Subsidiaries and any Agency, Loan Investor or Insurer, (C) the applicable rules, regulations, guidelines, handbooks and other requirements of any Agency, Loan Investor or Insurer, (D) the terms and provisions of any mortgage or other collateral documents and other Loan documents with respect to each Loan and (E) the underwriting guidelines and other loan policies and procedures of the Company or its applicable Subsidiary; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp;Since December 31, 2016, no Agency, Loan Investor or Insurer has (i) claimed in writing that the Company or any Company Subsidiary has violated or has not complied with the applicable underwriting standards with respect to Loans sold by the Company or any of its Subsidiaries to a Loan Investor or Agency, or with respect to any sale of Loan servicing rights to a Loan Investor, (ii) imposed in writing restrictions on the activities (including commitment authority) of the Company or

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any of its Subsidiaries or (iii) indicated in writing to the Company or any of its Subsidiaries that it has terminated or intends to terminate its relationship with the Company or any of its Subsidiaries for poor performance, poor Loan quality or concern with respect to the Company's or any Company Subsidiary's compliance with Laws.

For purposes of this Section 3.1(oo): (i) "**Agency**" means the Federal Housing Administration, the Federal Home Loan Mortgage Corporation, the Farmers Home Administration (now known as Rural Housing and Community Development Services), the Federal National Mortgage Association, the United States Department of Veterans' Affairs, the Government National Mortgage Association, the Rural Housing Service of the U.S. Department of Agriculture or any other Governmental Entity with authority to (A) determine any investment, origination, lending or servicing requirements with regard to Loans originated, purchased or serviced by the Company or any Company Subsidiary or (B) originate, purchase, or service Loans, or otherwise promote lending, including state and local housing finance authorities; (ii) "**Loan Investor**" means any person (including an Agency) having a beneficial interest in any Loan originated, purchased or serviced by the Company or any Company Subsidiary or a security backed by or representing an interest in any such Loan; and (iii) "**Insurer**" means a person who insures or guarantees for the benefit of the Loan holder all or any portion of the risk of loss upon borrower default on any of the Loans originated, purchased or serviced by the Company or any Company Subsidiary, including the Federal Housing Administration, the United States Department of Veterans' Affairs, the Rural Housing Service of the U.S. Department of Agriculture and any private mortgage insurer, and providers of hazard, title or other insurance with respect to such Loans or the related collateral.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(pp)&nbsp;&nbsp;&nbsp;&nbsp;<u>Risk Management Instruments</u>. The Company and the Subsidiaries have in place risk management policies and procedures designed to protect against risks of the type and in amounts reasonably expected to be incurred by companies of similar size and in similar lines of business as the Company and the Subsidiaries. Except as would not reasonably be expected to be material to the Company and its Subsidiaries on a consolidated basis, since December 31, 2015, all derivative instruments, including, swaps, caps, floors, and option agreements, whether entered into for the Company's own account, or for the account of one or more of the Subsidiaries, were entered into (1) only in the ordinary course of business, (2) in accordance with prudent practices and in all respects with all applicable Laws, and (3) with counterparties believed to be financially responsible at the time, and each of them constitutes the valid and legally binding obligation of the Company or one of the Subsidiaries, enforceable in accordance with its terms. Neither the Company nor the Subsidiaries, nor, to the Company's Knowledge, any other party thereto, is in breach of any of its obligations under any such agreement or arrangement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(qq)&nbsp;&nbsp;&nbsp;&nbsp;<u>Company Benefit Plans</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;"**Benefit Plan**" means all material employee benefit plans, programs, agreements, contracts, policies, practices, or other arrangements providing benefits to any current or former employee, officer, director or consultant of the Company or any of its Subsidiaries or any beneficiary or dependent thereof that is sponsored or maintained by the Company or any of its Subsidiaries or to which the Company or any of its Subsidiaries contributes or is obligated to contribute or is party, whether or not written, including any material "employee welfare benefit plan" within the meaning of Section 3(1) of the Employee Retirement Income Security Act of 1974, as amended ("**ERISA**"), any "employee pension benefit plan" within the meaning of Section 3(2) of ERISA (whether or not such plan is subject to ERISA) and any material bonus, incentive, deferred compensation, vacation, stock purchase, stock option or equity award, equity-based severance, employment, change of control, consulting or fringe benefit plan, program, agreement or policy. The term "Benefit Plan" also includes the "Equity Incentive Award Program Restricted Share Award Agreement" that the Company proposes to adopt in connection with this Agreement. Each Benefit Plan is listed on Schedule 3.1(qq)(i). True and

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complete copies of all Benefit Plans listed on Schedule 3.1(qq)(i) have been made available to Purchaser prior to the date hereof, other than the "Equity Incentive Award Program Restricted Share Award Agreement" that the Company proposes to adopt in connection with this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp;With respect to each Benefit Plan, (A) the Company and its Subsidiaries have complied, and are now in compliance in all material respects with the applicable provisions of ERISA, and the Code and all other Laws and regulations applicable to such Benefit Plan and (B) each Benefit Plan has been administered in all material respects in accordance with its terms. Except as would not reasonably be expected to be material to the Company or any of its Subsidiaries, none of the Company or any of its Subsidiaries nor any of their respective ERISA Affiliates has incurred any withdrawal liability as a result of a complete or partial withdrawal from a multiemployer plan, as those terms are defined in Part I of Subtitle E of Title IV of ERISA, that has not been satisfied in full. "**ERISA Affiliate**" means any entity, trade or business, whether or not incorporated, which together with the Company and its Subsidiaries, would be deemed a "single employer" within the meaning of Section 4001 of ERISA or Sections 414(b), (c), (m) or (o) of the Code.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;&nbsp;&nbsp;&nbsp;Each Benefit Plan which is subject to ERISA (an "**ERISA Plan**") that is an "employee pension benefit plan" within the meaning of Section 3(2) of ERISA ("**Pension Plan**") and that is intended to be qualified under Section 401 (a) of the Code, has received a favorable determination or opinion letter from the Internal Revenue Service (the "**IRS**") to the effect that it is so qualified and, to the Company's Knowledge, nothing has occurred, whether by action or failure to act, that could likely result in revocation of any such favorable determination or opinion letter or the loss of the qualification of such Benefit Plan under Section 401(a) of the Code. Neither the Company nor any of its Subsidiaries has engaged in a transaction with respect to any ERISA Plan that, assuming the taxable period of such transaction expired as of the date hereof, could subject the Company or any of its Subsidiaries to a material tax or material penalty imposed by either Section 4975 of the Code or Section 502(i) of ERISA. Neither the Company nor any of its Subsidiaries has incurred or reasonably expects to incur a material tax or penalty imposed by Section 4980F of the Code or Section 502 of ERISA.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv)&nbsp;&nbsp;&nbsp;&nbsp;Neither the Company, any of its Subsidiaries nor any ERISA Affiliate (x) sponsors, maintains or contributes to or has within the past six years sponsored, maintained or contributed to a Pension Plan that is subject to Subtitles C or D of Title IV of ERISA or (y) sponsors, maintains or has any liability with respect to or an obligation to contribute to or has within the past six years sponsored, maintained, had any liability with respect to, or had an obligation to contribute to a "multiemployer plan" within the meaning of Section 3(37) of ERISA.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v)&nbsp;&nbsp;&nbsp;&nbsp;None of the execution and delivery of this Agreement or any Additional Purchase Agreement, the issuance of Purchased Shares, nor the consummation of the transactions contemplated hereby or thereby will (i) constitute a "change in control" or "change of control" within the meaning of any Benefit Plan or result in any material payment or benefit (including severance, unemployment compensation, "excess parachute payment" (within the meaning of Section 280G of the Code), forgiveness of indebtedness or otherwise) becoming due to any current or former employee, officer, director or consultant of the Company or any of its Subsidiaries from the Company or any of its Subsidiaries under any Benefit Plan or any other agreement with any employee, including, for the avoidance of doubt, any employment or change in control agreements, (ii) result in payments under any of the Benefit Plans which would not be deductible under Section 162(m) or Section 280G of the Code, (iii) materially increase any compensation or benefits otherwise payable under any Benefit Plan, (iv) result in any acceleration of the time of payment or vesting of any such benefits, (v) require the funding or increase in the funding of any such benefits, or (vi) result in any limitation on the right of the Company or any of its Subsidiaries to amend, merge, terminate or receive a reversion of assets from any Benefit Plan or related trust.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi)&nbsp;&nbsp;&nbsp;&nbsp;There is no material pending or, to the Company's Knowledge, threatened, litigation relating to the Benefit Plans (other than claims for benefits in the ordinary course). Neither the Company nor any of its Subsidiaries has any obligations for retiree health and life benefits under any ERISA Plan or collective bargaining agreement, except for health continuation coverage as required by Section 4980B of the Code or Part 6 of Title I of ERISA and at no expense to the Company and its Subsidiaries.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii)&nbsp;&nbsp;&nbsp;&nbsp;Except as would not reasonably be expected to be material to the Company and except for liabilities fully reserved for or identified in the Company Financial Statements, there are no pending or, to the Company's Knowledge, threatened claims (other than claims for benefits in the ordinary course), lawsuits or arbitrations which have been asserted or instituted against (i) the Benefit Plans, (ii) any fiduciaries thereof with respect to their duties to the Benefit Plans, or (iii) the assets of any of the trusts under any of the Benefit Plans.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(rr)&nbsp;&nbsp;&nbsp;&nbsp;<u>No Change in Control</u>. Neither the Company nor any of its Subsidiaries is a party to any employment, change in control, severance, or other compensatory agreement or any benefit plan pursuant to which the issuance of the Shares to the Purchasers as contemplated by this Agreement or any Additional Purchase Agreement would trigger a "change of control" or other similar provision in any of the agreements, which results in payments to the counterparty or the acceleration of vesting of benefits.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ss)&nbsp;&nbsp;&nbsp;&nbsp;<u>Common Control</u>. The Company is not and, after giving effect to the offering and sale of the Shares, will not be under the control (as defined in the BHCA and the Federal Reserve's Regulation Y (12 C.F.R. Part 225) ("**BHCA Control**") of any company (as defined in the BHCA and the Federal Reserve's Regulation Y). The Company is not in BHCA Control of any federally insured depository institution other than the Bank. The Bank is not under the BHCA Control of any company (as defined in the BHCA and the Federal Reserve's Regulation Y) other than Company. Neither the Company nor the Bank controls, in the aggregate, more than five percent (5%) of the outstanding voting class, directly or indirectly, of any federally insured depository institution. The Bank is not subject to the liability of any commonly controlled depository institution pursuant to Section 5(e) of the Federal Deposit Insurance Act (12 U.S.C. § 1815(e)).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(tt)&nbsp;&nbsp;&nbsp;&nbsp;<u>Material Contracts</u>. The Company has made available to Purchaser or its respective representatives, prior to the date hereof, true, correct, and complete copies of, and listed on Schedule 3.1(tt), each Material Contract to which the Company or any of its Subsidiaries is a party or subject (whether written or oral, express or implied) as of the date of this Agreement. Each Material Contract is a valid and binding obligation of the Company or any of its Subsidiaries (as applicable) that is a party thereto and, to the Company's Knowledge, each other party to such Material Contract, except for such failures to be valid and binding as, individually or in the aggregate, would not reasonably be expected to be material to the Company and its Subsidiaries on a consolidated basis. Each such Material Contract is enforceable against the Company or any of its Subsidiaries (as applicable) that is a party thereto and, to the Company's Knowledge, each other party to such Material Contract in accordance with its terms (subject in each case to applicable bankruptcy, insolvency, reorganization, moratorium or similar Laws affecting the enforcement of creditors' rights generally and general equitable principles, regardless of whether such enforceability is considered in a proceeding of law or at equity), except for such failures to be enforceable as, individually or in the aggregate, would not reasonably be expected to be material to the Company and its Subsidiaries on a consolidated basis. Neither the Company nor any of its Subsidiaries, nor to the Company's Knowledge, any other party to a Material Contract, is in material default or material breach of a Material Contract and there does not exist any event, condition or omission that would constitute such a material default or breach (whether by lapse of time or notice or both), in each case, except as, individually or in the aggregate, would not reasonably be expected to be material to the Company and its Subsidiaries on a consolidated basis.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(uu)&nbsp;&nbsp;&nbsp;&nbsp;<u>No "Bad Actor" Disqualification</u>. The Company has exercised reasonable care, in accordance with Commission rules and guidance, and has conducted a factual inquiry including the procurement of relevant questionnaires from each Covered Person (as defined below) or other means, the nature and scope of which reflect reasonable care under the relevant facts and circumstances, to determine whether any Covered Person is subject to any of the "bad actor" disqualifications described in Rule 506(d)(1)(i) to (viii) under the Securities Act ("**Disqualification Events**"). To the Company's Knowledge, after conducting such sufficiently diligent factual inquiries, no Covered Person is subject to a Disqualification Event, except for a Disqualification Event covered by Rule 506(d)(2) or (d)(3) under the Securities Act. The Company has complied, to the extent applicable, with any disclosure obligations under Rule 506(e) under the Securities Act. "**Covered Persons**" are those persons specified in Rule 506(d)(1) under the Securities Act, including the Company, any predecessor or Affiliate of the Company, any director, executive officer, other officer participating in the offering, general partner or managing member of the Company, any beneficial owner of twenty percent (20%) or more of the Company's outstanding voting equity securities, calculated on the basis of voting power, any promoter (as defined in Rule 405 under the Securities Act) connected with the Company in any capacity at the time of the sale of the Shares, and any person that has been or will be paid (directly or indirectly) remuneration for solicitation of purchasers in connection with the sale of the Shares (a "**Solicitor**"), any general partner or managing member of any Solicitor, and any director, executive officer or other officer participating in the offering of any Solicitor or general partner or managing member of any Solicitor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vv)&nbsp;&nbsp;&nbsp;&nbsp;<u>Knowledge as to Conditions</u>. To the Company's Knowledge, there is no reason why it would be reasonable to expect that any regulatory approvals and, to the extent necessary, any other approvals, authorizations, filings, registrations, and notices required or otherwise a condition to the consummation of the transactions contemplated by the Transaction Documents will not be obtained.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ww)&nbsp;&nbsp;&nbsp;&nbsp;<u>Shell Company Status</u>. The Company is not, and has never been, an issuer identified in Rule 144(i)(1).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xx)&nbsp;&nbsp;&nbsp;&nbsp;<u>No Other Representations</u>. The Company has not made and does not make any representations or warranties with respect to the transactions contemplated hereby other than those specifically set forth in this Section 3.1.

Section 3.2&nbsp;&nbsp;&nbsp;&nbsp;<u>Representations and Warranties of the Purchasers</u>. Each Purchaser hereby, for itself and for no other Purchaser, represents and warrants as of the date of this Agreement and as of the Closing Date to the Company as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;<u>Organization; Authority</u>. If such Purchaser is an entity, it is duly organized, validly existing and in good standing under the Laws of the jurisdiction of its organization with the requisite corporate, partnership, limited liability company or other power and authority to enter into and to consummate the transactions contemplated by the applicable Transaction Documents and otherwise to carry out its obligations hereunder and thereunder. If such Purchaser is an entity, the execution and delivery of this Agreement and performance by such Purchaser of the transactions contemplated by this Agreement have been duly authorized by all necessary corporate or, if such Purchaser is not a corporation, such partnership, limited liability company or other applicable like action, on the part of such Purchaser, and no further approval or authorization by any person is required. This Agreement has been duly executed such Purchaser, and when delivered by such Purchaser in accordance with the terms hereof, will constitute the valid and legally binding obligation of such Purchaser, enforceable against it in accordance with its terms, except as such enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium, liquidation, or similar Laws relating to, or affecting generally the enforcement of, creditors' rights and remedies or by other equitable principles of general application.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;<u>No Conflicts</u>. The execution, delivery, and performance by such Purchaser of the Transaction Documents to which it is a party and the consummation by such Purchaser of the transactions contemplated hereby and thereby will not (i) result in a violation of the organizational documents of such Purchaser, (ii) conflict with, or constitute a default (or an event which with notice or lapse of time or both would become a default) under, or give to others any rights of termination, amendment, acceleration or cancellation of, any agreement, indenture, or instrument to which such Purchaser is a party, or (iii) result in a violation of any Law, rule, regulation, order, judgment, or decree (including federal and state securities Laws) applicable to such Purchaser, except in the case of clauses (ii) and (iii) above, for such conflicts, defaults, rights, or violations which would not, individually or in the aggregate, reasonably be expected to have a material adverse effect on the ability of such Purchaser to perform its obligations hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;<u>Investment Intent</u>. Such Purchaser understands that the Shares are "restricted securities" and have not been registered under the Securities Act or any applicable state securities Law and is acquiring the Shares as principal for its own account and not with a view to, or for distributing or reselling such Shares or any part thereof in violation of the Securities Act or any applicable state securities Laws, provided, however, that by making the representations herein, such Purchaser does not agree to hold any of the Shares for any minimum period of time and reserves the right at all times to sell or otherwise dispose of all or any part of such Shares pursuant to an effective registration statement under the Securities Act that covers such Shares, or under an exemption from such registration and in compliance with applicable federal and state securities Laws. Such Purchaser is acquiring the Shares hereunder in the ordinary course of its business. Such Purchaser does not presently have any agreement, plan, or understanding, directly or indirectly, with any Person, or any intent, to distribute or effect any distribution of any of the Shares (or any securities which are derivatives thereof) to or through any person or entity. Such Purchaser has had access to such financial and other information concerning the Company and its Subsidiaries as such Purchaser deemed necessary or desirable in making a decision to purchase the Shares, including an opportunity to ask questions and receive answers from officers of the Company and its Subsidiaries and to obtain additional information necessary to verify the accuracy of any information furnished to such Purchaser or to which such Purchaser had access.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;<u>Purchaser Status</u>. At the time such Purchaser was offered the Shares, it was, and at the date hereof it is, an "accredited investor" as defined in Rule 501(a) under the Securities Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;<u>Residency</u>. Such Purchaser's office in which its investment decision with respect to the Shares was made is located at the address for Purchaser set forth in Section 6.3.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;&nbsp;&nbsp;<u>No Other Representation</u>. Such Purchaser has not made and does not make any representations or warranties with respect to the transactions contemplated hereby other than those specifically set forth in this Section 3.2.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;&nbsp;&nbsp;&nbsp;<u>Acknowledgement of No Other Representations or Warranties</u>. Except for the representations and warranties contained in Section 3.1, such Purchaser acknowledges and agrees that none of the Company, its Subsidiaries, nor any of their respective affiliates, directors, officers, investment bankers, financial advisors and counsel makes or has made any representation or warranty, either express or implied, concerning the Company or its Subsidiaries or any of their respective assets or properties or the transactions contemplated by this Agreement. Such Purchaser further acknowledges that it takes full responsibility for making its own evaluation of the adequacy and accuracy of all estimates, projections, forecasts, plans and budgets furnished to it or its representatives.

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**ARTICLE IV**

**OTHER AGREEMENTS OF THE PARTIES**

Section 4.1&nbsp;&nbsp;&nbsp;&nbsp;<u>Transfer Restrictions</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;<u>Compliance with Laws</u>. Notwithstanding any other provision of this Article IV, each Purchaser covenants that the Purchased Shares may be disposed of only pursuant to an effective registration statement under, and in compliance with the requirements of, the Securities Act, or pursuant to an available exemption from, or in a transaction not subject to, the registration requirements of the Securities Act, and in compliance with any applicable state, federal or foreign securities Laws. In connection with any transfer of the Shares other than (i) pursuant to an effective registration statement, (ii) to the Company or (iii) pursuant to Rule 144 (provided that the transferor provides the Company with reasonable assurances (in the form of a seller representation letter and, if applicable, a broker representation letter) that such securities may be sold pursuant to such rule), the Company may require the transferor thereof to provide to the Company and the Transfer Agent, at the transferor's expense, an opinion of counsel selected by the transferor and reasonably acceptable to the Company and the Transfer Agent, the form and substance of which opinion shall be reasonably satisfactory to the Company and the Transfer Agent, to the effect that such transfer does not require registration of such Shares under the Securities Act. As a condition of transfer (other than pursuant to clauses (i), (ii) or (iii) of the preceding sentence), any such transferee shall agree in writing to be bound by the terms of this Agreement and shall have the rights of a Purchaser under this Agreement and, to the extent set forth therein, the Registration Rights Agreement, with respect to such transferred Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;<u>Legends</u>. Certificates evidencing the Shares shall bear any legend as required by the "blue sky" laws of any state and a restrictive legend in substantially the following form, until such time as they are not required under Section 4.1(c), applicable Law, or as a result of any amendment to the bylaws of the Company, as the case may be:

The securities represented by the Certificate have not been registered under the Securities Act of 1933 as amended (The "Act"). The securities have been acquired by the registered holder hereof for such holder's own account for investment and, except with the written consent of the Corporation, may not be pledged, hypothecated, sold or transferred, in the absence of an effective registration statement for such securities under the Act unless the Corporation has received either (i) an opinion of its counsel to the effect that registration of such securities in connection with such transaction is not required under the Act or (ii) a seller representation letter or, if applicable, a broker representation letter, providing the Corporation with reasonable assurances that such securities may be sold pursuant to Rule 144 under the Act.

The sale or other transfer of this Certificate is subject to the restrictions set out in Article VI of the Bylaws of the Corporation, which are on file at the office of the Secretary of the Corporation. Such restrictions provide that no share of stock of this Corporation shall be sold, given, assigned, bequeathed or otherwise transferred, voluntarily or involuntarily by any Shareholder, his or her executor, administrator, trustee in bankruptcy, receiver or other legal representative, or by any other person owning or holding any share or shares of stock of the Corporation, nor shall any shares of stock of this Corporation be sold or otherwise transferred by operation or any act or process of law or equity,

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to any person, firm or corporation whomsoever, including a Shareholder of this Corporation, unless and until such shares of stock of the Corporation shall first have been offered for sale to the Corporation in the manner and upon the terms and conditions proved in the corporate Bylaws. Such restrictions do not apply to a transfer, by whatever means, to a spouse or lineal descendant of the Shareholder, or to a trust or to a court-appointed fiduciary for the benefit of such person.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;<u>Removal of Legends</u>. Upon the request of the holder, and subject to the holder's compliance with the obligations set forth in Section 4.1(a), the first paragraph of the restrictive legend set forth in Section 4.1(b) above shall be removed and the Company shall issue a certificate or book-entry shares without such restrictive legend or any other restrictive legend (other than, if applicable, the second paragraph of the restrictive legend set forth in Section 4.1(a)) to the holder of the applicable Shares upon which it is stamped, if (i) such Shares are being sold pursuant to an effective registration statement under the Securities Act, (ii) such Shares are sold or transferred pursuant to Rule 144, or (iii) such Shares are eligible for sale under Rule 144 by a holder that is not an affiliate of the Company, without the requirement for the Company to be in compliance with the current public information required under Rule 144(c)(1) (or Rule 144(i)(2), if applicable) as to such securities and without volume or manner-of- sale restrictions; *provided*, in the case of clause (iii), that the holder shall have delivered to the Company a seller representation letter and, if applicable, a broker representation letter, stating that such securities may be sold, and will continue to be eligible for sale, pursuant to such rule. Following the earlier of (i) the holder notifying the Company that Shares are being sold pursuant to an effective registration statement under the Securities Act or (ii) Rule 144 becoming available for the resale of Shares, without the requirement for the Company to be in compliance with the current public information required under Rule 144(c)(1) (or Rule 144(i)(2), if applicable) as to the Shares and without volume or manner-of-sale restrictions, the Company, upon the written request of the holder and, in the case of clause (ii), upon receipt of reasonable assurances (in the form of a seller representation letter and, if applicable, a broker representation letter) that such securities may be sold, and will continue to be eligible for sale, pursuant to Rule 144, shall instruct the Transfer Agent to remove the first paragraph of the legend from the Shares and shall cause its counsel to issue any legend removal opinion required by the Transfer Agent. Any fees (with respect to the Company or the Transfer Agent, Company counsel or otherwise) associated with the issuance of such opinion or the removal of such legend shall be borne by the Company. If a legend is no longer required pursuant to the foregoing, the Company will no later than ten (10) Trading Days following the delivery by a Purchaser to the Transfer Agent (with notice to the Company) of a legended certificate representing such Shares (endorsed or with stock powers attached, signatures guaranteed, and otherwise in form necessary to affect the reissuance and/or transfer) and the representation letter(s) to the extent required by Section 4.1(a) and this Section 4.1(c) (such third Trading Date, the "**Legend Removal Date**"), deliver or cause to be delivered to Purchaser a certificate representing such Shares that is free from such restrictive legend(s). Except for any restrictive legend required with respect to the limitations in the bylaws of the Company in effect as of the date hereof, the Company may not make any notation on its records or give instructions to the Transfer Agent that enlarge the restrictions on transfer set forth in this Section 4.1(c).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;If the Company shall fail for any reason or for no reason to issue to any Purchaser unlegended certificates by the Legend Removal Date in accordance with Section 4.1(c), then, in addition to all other remedies available to Purchaser, if on or after the trading day immediately following such ten (10) Trading Day period, such Purchaser purchases, or a broker (a "**Buy-In Broker**") purchases (in an open market transaction or otherwise) shares of Common Stock to deliver in satisfaction of such sale in lieu of shares of Common Stock Purchaser anticipated receiving from the Company without the applicable restrictive legend (a "**Buy-In**"), then the Company shall, within ten (10) Trading Days after such Purchaser's request, honor its obligation to deliver to such Purchaser a certificate or certificates

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without the applicable restrictive legends representing such shares of Common Stock and pay cash to such Purchaser in an amount equal to the excess (if any) of such Purchaser's or Buy-In Broker's total purchase price (including brokerage commissions, if any) for the shares of Common Stock so purchased over the product of (i) such number of shares of Common Stock, times (ii) the closing sale price on the Legend Removal Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;The Company shall cooperate, in accordance with reasonable and customary business practices with any and all transfers, whether by direct or indirect sale, assignment, award, confirmation, distribution, bequest, donation, trust, pledge, encumbrance, hypothecation or other transfer or disposition, for consideration or otherwise, whether voluntarily or involuntarily, by operation of law or otherwise, by the Purchasers or any of their respective successors and assigns of the Shares and other shares of Common Stock and/or Non-Voting Common Stock such party may beneficially own prior to or subsequent to the date hereof.

Section 4.2&nbsp;&nbsp;&nbsp;&nbsp;<u>Acknowledgment of Dilution</u>. The Company and each Purchaser acknowledges that the issuance of the Shares may result in dilution of the outstanding shares of Common Stock. The Company and each Purchaser further acknowledges that its obligations under the Transaction Documents, including without limitation the Company's obligation to issue the Shares pursuant to the Transaction Documents, are unconditional (except as otherwise set forth herein) absolute and not subject to any right of set off, counterclaim, delay or reduction, regardless of the effect of any such dilution or any claim the Company or any Purchaser may have against any Purchaser or the Company, and regardless of the dilutive effect that such issuance may have on the ownership of the other shareholders of the Company.

Section 4.3&nbsp;&nbsp;&nbsp;&nbsp;<u>Access; Information; Confidentiality</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;For so long as a Purchaser and its Affiliates in the aggregate own at least the lesser of: (i) five percent (5.0%) of the Common Stock then outstanding and (ii) the number of Shares purchased pursuant to this Agreement (the "**Minimum Ownership Interest**"), the Company shall provide such Purchaser with all written materials and other information given to members of the Board or the Bank Boards at the same time such materials and information are given to such members (provided, however, that such Purchaser shall not be provided any confidential supervisory information (as defined in 12 C.F.R. Part 261), information which is related to a pending or ongoing regulatory exam or which is subject to attorney-client privilege). If a Purchaser ceases to have a Minimum Ownership Interest, such Purchaser will have no further rights under this Section 4.3(b).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;Notwithstanding anything to the contrary in this Agreement, including Section 4.22, Purchaser shall comply with its obligations under any confidentiality agreement between the Company and Purchaser or any of its Affiliates. Without limiting the generality of the foregoing, Purchaser is expressly prohibited from disclosing to any third party or using (other than for the benefit of the Company), any confidential information obtained from or with respect to the Company, including, without limitation, any confidential business strategies or methods and any confidential corporate opportunities of the Company, *provided* that nothing herein shall prohibit Purchaser from disclosing any of the foregoing to the extent requested or required by any Governmental Entity, self-regulating organization or auditor. As used herein, "confidential information" does not include any information that was or becomes generally available to the public or is in the public domain at the time of its disclosure, other than as a result of the disclosure by Purchaser or its representatives.

Section 4.4&nbsp;&nbsp;&nbsp;&nbsp;<u>Form D and Blue Sky</u>. The Company agrees to timely file or amend a Form D with respect to the Purchased Shares as required under Regulation D. The Company, on or before the Closing Date, shall take such action as the Company shall reasonably determine is necessary in order to obtain an exemption for or to qualify the Purchased Shares for sale to the Purchasers at the Closing

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pursuant to this Agreement under applicable securities or "Blue Sky" Laws of the states of the United States (or to obtain an exemption from such qualification). The Company shall make all filings and reports relating to the offer and sale of the Purchased Shares required under applicable securities or "Blue Sky" Laws of the states of the United States following the Closing Date.

Section 4.5&nbsp;&nbsp;&nbsp;&nbsp;<u>No Integration</u>. The Company shall not, and shall use its reasonable best efforts to ensure that no Affiliate of the Company shall, sell, offer for sale or solicit offers to buy or otherwise negotiate in respect of any security (as defined in Section 2 of the Securities Act) that will be integrated with the offer or sale of the Purchased Shares in a manner that would require the registration under the Securities Act of the sale of the Purchased Shares to the Purchasers.

Section 4.6&nbsp;&nbsp;&nbsp;&nbsp;<u>Securities Laws Disclosure; Publicity</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;The Company shall, by 9:00 a.m., Eastern Time, on the first Trading Day immediately following the date of this Agreement, or such other date as may be mutually agreeable to the Company and the Purchasers, issue one or more press releases (collectively, the "**Initial Press Release**") reasonably acceptable to the Purchasers disclosing all material terms of the transactions contemplated hereby and by the other Transaction Documents or Additional Purchase Agreements and any other material, non-public information that the Company may have provided the Purchasers at any time prior to the filing of the Initial Press Release. Whenever any party determines, based upon the advice of such party's counsel, that a public announcement or other disclosure is required by or advisable with respect to any applicable Law or regulation, the parties shall discuss such disclosure with each other in good faith prior to the making of such public announcement or other disclosure.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;The Company shall, by 9:00 a.m., Eastern Time on the first Trading Day immediately following the Closing Date, issue one or more press releases reasonably acceptable to the Purchasers disclosing the Closing.

Section 4.7&nbsp;&nbsp;&nbsp;&nbsp;[Reserved]

Section 4.8&nbsp;&nbsp;&nbsp;&nbsp;<u>Indemnification</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;<u>Indemnification of Purchasers</u>. Subject to the limitations set forth in this Section 4.8, in addition to the indemnity provided in the Registration Rights Agreement, if applicable, the Company will indemnify and hold each Purchaser and its directors, officers, shareholders, members, partners, employees, agents, and investment advisors (and any other Persons with a functionally equivalent role of a Person holding such titles notwithstanding a lack of such title or any other title), each Person who controls such Purchaser (within the meaning of Section 15 of the Securities Act and Section 20 of the Exchange Act), and the directors, officers, shareholders, agents, members, partners, employees, agents, or investment advisors (and any other Persons with a functionally equivalent role of a Person holding such titles notwithstanding a lack of such title or any other title) of such controlling person (each, a "**Purchaser Party**") harmless from any and all losses, liabilities, obligations, claims, contingencies, damages, costs, and expenses, including all judgments, amounts paid in settlements, court costs, and reasonable attorneys' fees and costs of investigation, excluding in each case any consequential, special, indirect or punitive damages (collectively, "**Losses**"), without duplication, that any such Purchaser Party may suffer or incur as a result of (i) any breach of any of the representations, warranties, covenants, or agreements made by the Company in this Agreement, (ii) any action instituted against a Purchaser Party in such capacity, or any of them or their respective affiliates, by any shareholder of the Company who is not an affiliate of such Purchaser Party, with respect to any of the transactions contemplated by this Agreement, and (iii) any action instituted against the Company by any shareholder of the Company with respect to the Private Placement Memorandum. Any indemnification payment made pursuant to this

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Agreement shall be treated as an adjustment to purchase price for Tax purposes, except as otherwise required by Law or deemed impermissible under GAAP. Such payment shall not result in an adjustment to the value of the original investment reported by the Company under GAAP. Except in connection with Losses resulting from, arising out of, or caused by fraud, the indemnification rights set forth herein shall be the Purchaser's sole remedy for any breach of any of the representations and warranties any breach of covenants or agreements (other than in the case of a willful and intentional breach) by the Company after the Closing Date; provided, however, nothing in this Section 4.8(a) shall be deemed to limit or restrict the rights of any Purchaser Party to seek injunctive relief or other equitable remedies.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;<u>Third Party Claims</u>. Promptly after receipt by any Purchaser Party of notice of any demand, claim, or circumstances which would or might give rise to a claim or the commencement of any action, proceeding, or investigation in respect of which indemnity may be sought pursuant to Section 4.8(a), such Purchaser Party shall promptly notify the Company in writing and the Company may assume the defense thereof, including the employment of counsel reasonably satisfactory to such Purchaser Party, and shall assume the payment of all fees and expenses; <u>provided</u>, <u>however</u>, that the failure of any Purchaser Party so to notify the Company shall not relieve the Company of its obligations hereunder except to the extent that the Company is actually and materially and adversely prejudiced by such failure to notify. In any such proceeding, any Purchaser Party shall have the right to retain its own counsel, but the fees and expenses of such counsel shall be at the expense of such Purchaser Party unless (i) the Company and the Purchaser Party shall have mutually agreed to the retention of such counsel, (ii) the Company shall have failed promptly to assume the defense of such proceeding and to employ counsel reasonably satisfactory to such Purchaser Party in such proceeding, or (iii) in the reasonable judgment of counsel to such Purchaser Party, representation of both parties by the same counsel would be inappropriate due to actual or potential differing interests between them. The Company shall not be liable for any settlement of any proceeding effected without its written consent, which consent shall not be unreasonably withheld, delayed or conditioned. Without the prior written consent of the Purchaser Party, the Company shall not effect any settlement of any pending or threatened proceeding in respect of which any Purchaser Party is or could have been a party and indemnity could have been sought hereunder by such Purchaser Party, unless such settlement includes an unconditional release of such Purchaser Party from all liability arising out of such proceeding.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;<u>Limitations on the Company's Indemnification Liability</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;Except as provided otherwise in Section 4.8(c)(iv), the Company will not be liable for Losses that otherwise are indemnifiable under clauses (i) and (ii) of Section 4.8(a) until the total amount of all such Losses suffered by the Purchaser Parties exceeds an amount equal to half a percent (0.5%) of the aggregate Subscription Amount paid by all Purchasers, at which point only such Losses in excess of such amount shall be recoverable thereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp;Except as provided otherwise in Section 4.8(c)(iv), the maximum aggregate liability of the Company for all Losses under clauses (i) and (ii) of Section 4.8(a) shall be an amount equal to ten percent (10%) of the aggregate Subscription Amount paid by all Purchasers, provided however, that, as to any individual Purchaser (together with any of such Purchaser's directors, officers, shareholders, members, partners, employees, agents, and investment advisors (and any other Persons with a functionally equivalent role of a Person holding such titles notwithstanding a lack of such title or any other title), each Person who controls such Purchaser (within the meaning of Section 15 of the Securities Act and Section 20 of the Exchange Act), and the directors, officers, shareholders, agents, members, partners, employees, agents, or investment advisors (and any other Persons with a functionally equivalent role of a Person holding such titles notwithstanding a lack of such title or any other title) of such Purchaser), the maximum aggregate liability of the Company for all Losses under clauses (i) and (ii) of Section 4.8(a) is ten percent (10%) of the aggregate Subscription Amount of such individual Purchaser,

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and the maximum aggregate liability of the Company for all Losses under Section 4.8(a) is the aggregate Subscription Amount of such individual Purchaser.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;&nbsp;&nbsp;&nbsp;Except as provided otherwise in Section 4.8(c)(iv), the Company's representations and warranties shall survive the Closing and continue in full force and effect for a period of twelve (12) months following the Closing Date. The Company shall not be liable for any claim for indemnification under this Section 4.8 unless such claim is delivered by a Purchaser Party seeking indemnification to the Company prior to the end of the applicable survival period, in which case the representation or warranty that is the subject of such claim shall survive, to the extent of such claim only, until such claim is resolved.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv)&nbsp;&nbsp;&nbsp;&nbsp;The provisions of Section 4.8(c)(i), (ii) and (iii) do not apply to (A) claims due to the inaccuracy of any of the representations or breach of any of the warranties of the Company in Sections 3.1(a), 3.1(b), 3.1(c), 3.1(f), 3.1(g), 3.1(i) or 3.1(u), or (B) indemnification claims involving fraud. The Company shall not be liable for any claim for indemnification under this Section 4.8 with respect to a breach of Section 3.1(i) unless such claim is delivered by a Purchaser Party prior to the end of the survival period set forth in Section 6.9.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v)&nbsp;&nbsp;&nbsp;&nbsp;Except for (i) the reference to Material Adverse Effect in clause (i) of Section 3.1(j) (and the references to "material" in the definition of such term) and (ii) references to "material" in the terms "Material Contract" and "Material Permit," for purposes of the indemnity contained in Section 4.8(a), all qualifications and limitations set forth in the parties' representations and warranties as to "materiality," "Material Adverse Effect" and words of similar import shall be disregarded in determining whether there shall have been any inaccuracy in or breach of any representations and warranties in this Agreement and the Losses arising therefrom.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;<u>Investigation</u>. Except as set forth in the Disclosure Schedules, no investigation by any Purchaser, whether prior to or after the date of this Agreement, shall limit any Purchaser Party's exercise of any right hereunder or be deemed to be a waiver of any such right.

Section 4.9&nbsp;&nbsp;&nbsp;&nbsp;<u>Use of Proceeds</u>. The Company intends to use the net proceeds from the sale of the Shares hereunder and under any Additional Purchase Agreements to strengthen the Company's current balance sheet, improve the regulatory capital of the Bank, support its operations and growth opportunities and for general corporate purposes.

Section 4.10&nbsp;&nbsp;&nbsp;&nbsp;<u>Limitation on Beneficial Ownership</u>. No Purchaser (and its Affiliates or any other Persons with which it is acting in concert) shall be entitled to purchase a number of Common Shares that would result in such Purchaser becoming, directly or indirectly, the beneficial owner (as determined under Rule 13d-3 under the Exchange Act) at the Closing of more than nine point nine percent (9.9%) of the number of shares of the Company's voting securities issued and outstanding.

Section 4.11&nbsp;&nbsp;&nbsp;&nbsp;<u>Anti-Take Over Matters</u>. If any Takeover Law may become, or may purport to be, applicable to the transactions contemplated or permitted by this Agreement, the Company and the Board shall grant such approvals and take such actions as are necessary so that the transactions contemplated or permitted by this Agreement and the other Transaction Documents may be consummated, as promptly as practicable, on the terms contemplated by this Agreement and the other Transaction Documents, as the case may be, and otherwise act to eliminate or minimize the effects of any Takeover Law on any of the transactions contemplated or permitted by this Agreement and the other Transaction Documents.

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Section 4.12&nbsp;&nbsp;&nbsp;&nbsp;<u>No Additional Issuances</u>. Between the date of this Agreement and the Closing Date, except for the Shares being issued pursuant to this Agreement or pursuant to any Additional Purchase Agreements providing for the issuance of no more than 547,945 shares of Common Stock in the aggregate at a price per share no less than the Purchase Price, the Company shall not issue or agree to issue any additional shares of Common Stock or other securities that provide the holder thereof the right to convert such securities into, or acquire, shares of Common Stock. For the avoidance of doubt, nothing in this Section 4.12 shall restrict the Company from issuing securities in response or pursuant to an order or directive by the Federal Reserve with respect to capital adequacy.

Section 4.13&nbsp;&nbsp;&nbsp;&nbsp;<u>Conduct of Business</u>. From the date hereof until the earlier of the Closing Date or the termination of this Agreement in accordance with its terms, except as contemplated by this Agreement or as set forth in Schedule 4.13, the Company will, and will cause its Subsidiaries to: (i) operate their business in the ordinary course consistent with past practice; (ii) use commercially reasonable efforts to preserve intact the current business organization of the Company; (iii) use commercially reasonable efforts to retain the services of their employees, consultants, and agents; (iv) use commercially reasonable efforts to preserve the current relationships of the Company and its Subsidiaries with material customers and other Persons with whom the Company and its Subsidiaries have and intend to maintain significant relations; (v) use commercially reasonable efforts to maintain all of its operating assets in their current condition (normal wear and tear excepted); and (vi) refrain from (1) declaring, setting aside or paying any distributions or dividends on, or making any distributions (whether in cash, securities, or other property) in respect of, any of its capital stock, other than in the ordinary course of business, (2) splitting, combining or reclassifying any of its capital stock or issuing or authorizing the issuance of any other securities in respect of, in lieu of or in substitution for capital stock or any of its other securities, and (3) purchasing, redeeming or otherwise acquiring any capital stock, assets or other securities or any rights, warrants or options to acquire any such capital stock, assets or other securities, other than acquisitions of investment securities in the ordinary course of business and acquisitions of shares to the extent required in connection with the ESOP. Additionally, except (w) as required pursuant to existing written, binding agreements in effect prior to the date hereof and set forth in Schedule 3.1(qq), (x) as required or requested by any Governmental Entity, (y) as disclosed on Schedule 4.13 and (z) with respect to clauses (i) and (ii), except in the ordinary course of business consistent with past practice, prior to the earlier of the Closing Date and the termination of this Agreement pursuant to Section 6.10, the Company shall and shall cause its Subsidiaries to not take any of the following actions without the Purchasers' prior written consent, which shall not be unreasonably withheld, conditioned or delayed: (i) grant or provide any severance or termination payments or benefits to any director, officer or employee of the Company or any of its Subsidiaries; (ii) increase the compensation, bonus or pension, welfare, severance or other benefits of, pay any bonus to, or make any new equity awards to any director or executive officer of the Company or any of its Subsidiaries; (iii) establish, adopt, amend or terminate any Benefit Plan or amend the terms of any outstanding equity-based awards, except as may be required by applicable Law or in connection with the "Equity Incentive Award Program Restricted Share Award Agreement" that the Company proposes to adopt in connection with this Agreement; (iv) take any action to accelerate the vesting or payment, or fund or in any other way secure the payment, of compensation or benefits under any Benefit Plan, to the extent not already provided in any such Benefit Plan; (v) change any actuarial or other assumptions used to calculate funding obligations with respect to any Benefit Plan or to change the manner in which contributions to such plans are made or the basis on which such contributions are determined, except as may be required by GAAP; (vi) forgive any loans to directors, officers or employees of the Company or any of its Subsidiaries; or (vii) enter into any contract with respect to, or otherwise agree or commit to do, any of the foregoing; provided, that in no event shall any increase of any payment in the ordinary course of business under clause (ii) increase such person's compensation by more than five percent (5%) in the aggregate except pursuant to any agreement set forth in Schedule 3.1(qq). Furthermore, from the date of this Agreement until the Closing, the Company shall not, directly or indirectly, amend, modify, or waive, and the Board shall not recommend approval of any

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proposal to the Company's shareholders having the effect of amending, modifying, or waiving any provision in the Articles of Incorporation or bylaws of the Company in any manner adverse to Purchaser (except, for the avoidance of doubt, as contemplated by Section 4.25).

Section 4.14&nbsp;&nbsp;&nbsp;&nbsp;<u>Avoidance of Control</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;Notwithstanding anything to the contrary in this Agreement, no Purchaser (together with its Affiliates (as such term is used under the BHCA)) shall have the ability to purchase or exercise any voting rights of any class of securities in excess of nine point nine percent (9.9%) of the total outstanding voting securities of the Company. In the event any Purchaser breaches its obligations under this Section 4.14 or believes that it is reasonably likely to breach such an obligation, it shall promptly notify the Company and shall cooperate in good faith with such parties to modify ownership or make other arrangements or take any other action, in each case, as is necessary to cure or avoid such breach.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;Notwithstanding anything to the contrary in this Agreement, neither the Company nor any Subsidiary shall take any action (including, without limitation, any redemption, repurchase, rescission or recapitalization of Common Stock, or securities or rights, options or warrants to purchase Common Stock, or securities of any type whatsoever that are, or may become, convertible into or exchangeable into or exercisable for Common Stock in each case, where the Purchasers are not given the right to participate in such redemption, repurchase, rescission, or recapitalization to the extent of such Purchasers' pro rata proportion) that would reasonably be expected to pose a substantial risk that (a) a Purchaser's equity of the Company (together with equity owned by such Purchaser's affiliates (as such term is used under the BHCA) to exceed thirty-three point three percent (33.3%) of the Company's total equity (provided that there is no ownership or control in excess of nine point nine percent (9.9%) of any class of voting securities of the Company by such Purchaser, together with such Purchaser's affiliates) or (b) a Purchaser's ownership of any class of voting securities of the Company (together with the ownership by such Purchaser's affiliates (as such term is used under the BHCA) of voting securities of the Company) to exceed nine point nine percent (9.9%), in each case without the prior written consent of such Purchaser, or to increase to an amount that would constitute "control" under the BHCA, the CIBC Act, any applicable provisions of the Laws of the State of Iowa, or any rules or regulations promulgated thereunder (or any successor provisions) or otherwise cause such Purchaser to "control" the Company under and for purposes of the BHCA, the CIBC Act or any rules or regulations promulgated thereunder (or any successor provisions). Notwithstanding anything to the contrary in this Agreement, no Purchasers (together with its respective Affiliates (as such term is used under the BHCA)) shall have the ability to purchase more than thirty-three point three percent (33.3%) of the Company's total equity or exercise any voting rights of any class of securities in excess of nine point nine percent (9.9%) of the total outstanding voting securities of the Company. In the event either the Company or any Purchaser breaches its obligations under this Section 4.14 or believes that it is reasonably likely to breach such an obligation, it shall promptly notify the other party hereto and shall cooperate in good faith with such parties to modify ownership or, to the extent commercially reasonable, make other arrangements or take any other action, in each case, as is necessary to cure or avoid such breach.

Section 4.15&nbsp;&nbsp;&nbsp;&nbsp;<u>No Change of Control</u>. The Company shall use reasonable best efforts to obtain all necessary irrevocable waivers, adopt any required amendments and make all appropriate determinations so that the issuance of the Shares to the Purchasers will not trigger a "change of control" or other similar provision in any Material Contracts and any employment, "change in control," severance or other employee or director compensation agreements or any benefit plan of the Company or any of its Subsidiaries, which results in payments to the counterparty or the acceleration of vesting of benefits.

Section 4.16&nbsp;&nbsp;&nbsp;&nbsp;<u>Most Favored Nation</u>. Except as set forth in Schedule 4.16, during the period from the date of this Agreement through the Closing Date neither the Company nor any of its Subsidiaries

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shall enter into any additional, or modify any existing, agreements with any existing or future investors in the Company or any of its Subsidiaries that have the effect of establishing rights or otherwise benefiting such investor in a manner more favorable in any material respect to such investor than the rights and benefits established in favor of any Purchaser by this Agreement, unless, in any such case, such Purchaser has been provided with such rights and benefits, and any such rights and benefits shall automatically be deemed to be incorporated by reference herein, *mutatis mutandi*.

Section 4.17&nbsp;&nbsp;&nbsp;&nbsp;<u>Filings; Other Actions</u>. Each Purchaser, with respect to itself only, on the one hand, and the Company, on the other hand, will reasonably cooperate and consult with the other and use commercially reasonable efforts to provide all necessary and customary information and data, to prepare and file all necessary and customary documentation, to effect all necessary and customary applications, notices, petitions, filings and other documents, to provide evidence of non-control of the Company and the Bank, as requested by the applicable Governmental Entity, including executing and delivery to the applicable Governmental Entities customary passivity commitments, disassociation commitments, and commitments not to act in concert, with respect to the Company or the Bank, and to obtain all necessary and customary permits, consents, orders, approvals, and authorizations of, or any exemption by, all third parties and Governmental Entities, in each case, (i) necessary or advisable to consummate the transactions contemplated by this Agreement, and to perform the covenants contemplated by this Agreement, in each case required by it, and (ii) with respect to a Purchaser, to the extent typically provided by such Purchaser to such third parties or Governmental Entities, as applicable, under such Purchaser's policies consistently applied, to the extent such Purchaser has such policies, and subject to such confidentiality requests as such Purchaser may reasonably seek. Each of the parties hereto shall execute and deliver both before and after the Closing such further certificates, agreements, and other documents and take such other actions as the other parties may reasonably request to consummate or implement such transactions or to evidence such events or matters, subject, in each case, to clauses (i) and (ii) of the first sentence of this Section 4.17. Each Purchaser, with respect to itself only, and the Company will have the right to review in advance, and to the extent practicable each will consult with the other, in each case subject to applicable Laws relating to the exchange of information (other than confidential information related to such Purchaser and any of its respective Affiliates), which appears in any filing made with, or written materials submitted to, any third party or any Governmental Entity in connection with the transactions to which it will be party contemplated by this Agreement. In exercising the foregoing right, the parties hereto agree to act reasonably and as promptly as practicable. Each Purchaser, with respect to itself only, on the one hand, and the Company, on the other hand, agree to keep each other reasonably apprised of the status of matters referred to in this Section 4.17. Each Purchaser, with respect to itself only, on the one hand, and the Company, on the other hand, shall promptly furnish each other with copies of written communications received by it or its Affiliates from, or delivered by any of the foregoing to, any Governmental Entity in respect of the transactions contemplated by this Agreement; provided, that the party delivering any such document may redact any confidential information contained therein. Notwithstanding anything in this Section 4.17 or elsewhere in this Agreement to the contrary, no Purchaser shall be required to provide to any Person pursuant to this Agreement any of its, its Affiliates', its investment advisors' or its or their control persons' or equity holders' nonpublic, proprietary, personal, or otherwise confidential information including the identities or financial condition of limited partners, shareholders, or non-managing members of such Purchaser or its Affiliates or their investment advisors. Notwithstanding anything to the contrary in this Section 4.17, no Purchaser shall be required to perform any of the above actions if such performance would constitute or could reasonably result in any restriction or condition that (i) is materially and unreasonably burdensome, or (ii) would reduce the benefits of the transactions contemplated hereby to such Purchaser to such a degree that such Purchaser would not have entered into this Agreement had such condition or restriction been known to it on the date of this Agreement (any such condition or restriction, a "**Burdensome Condition**"); for the avoidance of doubt, any requirement to disclose the identities or financial condition of limited partners, shareholders, or non-managing members

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of such Purchaser or its Affiliates or its investment advisers shall be deemed a Burdensome Condition unless otherwise determined by such Purchaser in its sole discretion.

Section 4.18&nbsp;&nbsp;&nbsp;&nbsp;<u>Notice of Certain Events</u>. Each party hereto shall promptly notify the other party hereto of (a) any event, condition, fact, circumstance, occurrence, transaction or other item of which such party becomes aware prior to the Closing that would constitute a violation or breach of the Transaction Documents (or a breach of any representation or warranty contained herein or therein) or, if the same were to continue to exist as of the Closing Date, would constitute the non-satisfaction of any of the conditions set forth in Sections 5.1 or 5.2 hereof, and (b) any event, condition, fact, circumstance, occurrence, transaction or other item of which such party becomes aware that would have been required to have been disclosed pursuant to the terms of this Agreement had such event, condition, fact, circumstance, occurrence, transaction or other item existed as of the date hereof to the extent it, were it to continue to exist as of the Closing Date, would constitute the non-satisfaction of any of the conditions set forth in Sections 5.1 or 5.2; provided that delivery of any notice pursuant to this Section 4.18 shall not modify the representations, warranties, covenants, agreements or obligations of the parties (or remedies with respect thereto) or the conditions to the obligations of the parties under this Agreement.

Section 4.19&nbsp;&nbsp;&nbsp;&nbsp;<u>No Solicitation of Competing Proposal</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;Except as provided in this Section 4.19 or as directed by any Governmental Authority, from and after the date of this Agreement until the earlier of the Closing Date and the date, if any, on which this Agreement is terminated pursuant to Section 6.10, the Company agrees that it shall not, and that it shall direct and use its reasonable best efforts to cause the Company's directors, officers, employees, agents, consultants and advisors not to, directly or indirectly, solicit, initiate, encourage or facilitate any inquiries or proposals from, discuss or negotiate with, or provide any information to, any Person relating to any Acquisition Transaction or a potential Acquisition Transaction. For the avoidance of doubt, nothing in this Section 4.19 shall prohibit the Company from negotiating and entering into Additional Purchase Agreements providing for the issuance of no more than 547,945 shares of Common Stock in the aggregate at a price per share no less than the Purchase Price.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;Notwithstanding the limitations set forth in Section 4.19(a), if after the date of this Agreement and prior to the Closing Date, the Company receives an unsolicited proposal from a third party with respect to an Acquisition Transaction that was not directly or indirectly, after the date hereof, made, encouraged, facilitated, solicited, initiated or assisted by the Company or its directors, officers, employees, agents, consultants and advisors (an "**Unsolicited Company Proposal**") which did not result from or arise in connection with a material breach of Section 4.19(a) and which: (i) constitutes a Superior Proposal (as defined in Section 4.19(f)); or (ii) which the Board determines in good faith, after consultation with the Company's outside legal and financial advisors, could reasonably be expected to result, after the taking of any of the actions referred to in either of clause (x) or (y) below, in a Superior Proposal, the Company may take the following actions after providing written notice to each Purchaser of such determination and the basis therefor: (x) furnish nonpublic information with respect to the Company and the Company Subsidiaries to the third party making such Unsolicited Company Proposal, if, and only if, prior to so furnishing such information, the Company and such third party enter into a confidentiality agreement (a "**Third Party Confidentiality Agreement**") that is no less restrictive to and no more favorable to such third party or parties than the confidentiality agreements between the Company and the Purchasers and (y) engage in discussions or negotiations with the third party with respect to the Unsolicited Company Proposal; provided, however, that the Company has complied with the requirements of Section 4.19(d) with respect to such Unsolicited Company Proposal or such Superior Proposal.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;Notwithstanding the foregoing and the limitations set forth in Section 4.19(a), if, prior to the Closing, the Board determines in good faith, after consultation with the Company's outside legal and financial advisors, that, due to the existence of a Superior Proposal or an Unsolicited Company Proposal which the Board determines in good faith, after consultation with the Company's outside legal and financial advisors, could reasonably be expected to result, after the taking of any of the actions referred to in either of clause (x) or (y) of Section 4.19(b), in a Superior Proposal, the Board may, solely with respect to a Superior Proposal, enter into a binding written agreement with respect to such Superior Proposal and terminate this Agreement (provided that the Company may not terminate this Agreement pursuant to the foregoing, and any purported termination pursuant to the foregoing shall be void and of no force or effect, unless (x) the Board determines in good faith, after consultation with the Company's outside legal and financial advisors, that failure to take such action would be reasonably likely to constitute a breach by the Board of its fiduciary duties under applicable law and (y) in advance of or concurrently with such termination the Company pays or causes to be paid the Termination Fee to each Purchaser in accordance with Section 6.10), but only if the Company shall have first: (i) provided five (5) business days' prior written notice to each Purchaser that it is prepared to enter into a binding written agreement with respect to the Superior Proposal and terminate this Agreement, and specifying the reasons therefor, including the terms and conditions of the Unsolicited Company Proposal or Superior Proposal, as applicable (including the most current version of any proposed agreement(s)), and the identity of the Person making the proposal; (ii) offered to provide to each Purchaser all material non-public information delivered or made available to the person making any Unsolicited Company Proposal or Superior Proposal in connection with such Unsolicited Company Proposal or Superior Proposal that was not previously delivered or made available to each Purchaser; (iii) provided to each Purchaser copies of documents relating to the Unsolicited Company Proposal or Superior Proposal provided to the Company by the Person making the proposal (or provided by the Company to such person or their representatives), including the most current version of any proposed agreement or any other letter or other document containing such Person's proposal (and the Company's response(s) thereto) and the terms and conditions thereof; and (iv) during such five (5) business day period, if requested by a Purchaser, engaged in, and caused its financial and legal advisors to engage in, good faith negotiations with such Purchaser to amend this Agreement. The Company acknowledges and agrees that (i) any change to the financial terms or (ii) any material change to any other terms of an Unsolicited Company Proposal or Superior Proposal shall require compliance with the foregoing provisions anew.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;The Company shall notify each Purchaser orally and in writing promptly (but in no event later than one (1) Business Day) after receipt by the Company, the Bank, or any of their respective directors, officers, employees, representatives, agents or advisors of any proposal or offer from any Person other than a Purchaser regarding an Acquisition Transaction or any request for non-public information by any Person other than a Purchaser in connection with an Acquisition Transaction indicating, in connection with such notice, the name of such Person and the material terms and conditions of any proposals or offers (including, if applicable, copies of any written requests, proposals or offers, including proposed agreements) and thereafter shall keep each Purchaser informed, on a current basis, of the status and terms of any such proposals or offers (including any amendments thereto) and the status of any such discussions or negotiations, including any change in the Company's intentions as previously notified.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;Nothing contained in this Agreement shall prevent the Company or its Board from issuing as "stop, look and listen" communication pursuant to Rule 14d-9(f) under the Exchange Act or complying with Rule 14d-9 and Rule 14e-2 under the Exchange Act with respect to an Acquisition Transaction or from making any disclosure to the Company shareholders if the Board (after consultation with outside counsel) concludes that its failure to do so would be inconsistent with its fiduciary duties under applicable Law.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;&nbsp;&nbsp;As used in this agreement, "**Superior Proposal**" shall mean a bona fide written Unsolicited Company Proposal (not solicited or initiated in violation of Section 4.19(a)) that relates to a potential Acquisition Transaction (but changing the references to the twenty percent (20%) amounts contained in the definition of Acquisition Transaction to references to fifty percent (50%)) that is determined in good faith by the Board of the Company, after consultation with the Company's legal and financial advisors after taking into account all the terms and conditions of the Unsolicited Company Proposal and this Agreement, is on terms that are more favorable to the shareholders of the Company from a financial point of view than the transactions contemplated by the Transaction Documents (after giving effect to any changes to this Agreement proposed by Purchaser in response to such proposal or otherwise) and is, in the reasonable judgment of the Board, reasonably capable of being completed on its stated terms, taking into account all financial, regulatory, legal and other aspects of such inquiry, proposal or offer and the third party or parties making the inquiry, proposal or offer.

Section 4.20&nbsp;&nbsp;&nbsp;&nbsp;<u>Shareholder Litigation</u>. The Company shall promptly inform the Purchasers of any claim, action, suit, arbitration, mediation, demand, hearing, investigation or proceeding ("**Shareholder Litigation**") against the Company, any of its Subsidiaries or any of the past or present executive officers or directors of the Company or any of its Subsidiaries that is threatened in writing or initiated by or on behalf of any shareholder of the Company in connection with or relating to the transactions contemplated hereby or by the Transaction Documents. The Company shall consult with the Purchasers and keep the Purchasers informed of all material filings and developments relating to any such Shareholder Litigation.

Section 4.21&nbsp;&nbsp;&nbsp;&nbsp;<u>Governance Matters</u>. Notwithstanding anything in this Agreement or any other Transaction Document to the contrary, the rights set forth in this Section 4.21 are specific to the Purchasers, as applicable, and may not be assigned or transferred without the Company's explicit prior written consent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;The Company hereby agrees that, from and after the Closing Date, for so long as any Purchaser, together with its Affiliates, in the aggregate have a Minimum Ownership Interest, the Company shall invite a person designated by such Purchaser (the "**Observer**") to attend meetings of the Board or the Bank Boards, as applicable, in a nonvoting, nonparticipating observer capacity. The Observer shall not have any right to vote on any matter presented to the Board, the Bank Boards or any committee thereof. The Company shall give the Observer written notice of each meeting of the Board or the Bank Boards at the same time and in the same manner as the members of the Board or the Bank Boards, shall provide the Observer with all written materials and other information given to members of the Board or the Bank Boards at the same time such materials and information are given to such members (provided, however, that the Observer shall not be provided any confidential supervisory information (as defined in 12 C.F.R. Part 261), information which is related to a pending or ongoing regulatory exam or which is subject to attorney-client privilege) and shall permit the Observer to attend as an observer at all meetings thereof (provided, however, that the Observer shall not be entitled to attend the portion(s) of any meetings relating to confidential supervisory information, information which is related to a pending or ongoing regulatory exam or which is subject to attorney-client privilege). In the event the Company, the Bank or any Future Bank proposes to take any action by written consent in lieu of a meeting, the Company, the Bank or any Future Bank shall give written notice thereof to the Observer prior to the effective date of such consent describing the nature and substance of such action and including the proposed text of such written consents. If Purchaser no longer has a Minimum Ownership Interest, Purchaser will have no further rights under this Section 4.21(a).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;The Board Representative shall be entitled to compensation and indemnification and insurance coverage in connection with his or her role as a director to the same extent as other directors on the Board or the Bank Boards, as applicable, and shall be entitled to monthly reimbursement for

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reasonable and documented out-of-pocket expenses incurred in attending meetings of the Board, or any committee thereof in accordance with the policies of the Company, the Bank and any Future Bank, as applicable. The Company, the Bank and any Future Bank shall notify the Board Representative of all regular meetings and special meetings of the Board and the Bank Boards and of all regular and special meetings of any committee of the Board and the Bank Boards. The Company, the Bank and any Future Banks shall provide the Board Representative with copies of all notices, minutes, consents and other material that it provides to all members of the Board and the Bank Boards, respectively, at the same time such materials are provided to the other respective members.

Section 4.22&nbsp;&nbsp;&nbsp;&nbsp;<u>Corporate Opportunities</u>. Each of the parties hereto acknowledges that the Purchasers and their respective Affiliates and related investment funds may review the business plans and related proprietary information of any enterprise, including enterprises that may have products or services that compete directly or indirectly with those of the Company and its Subsidiaries, and may trade in the securities of such enterprise. None of Purchasers and their respective Affiliates, any of their respective Affiliates or related investment funds shall be precluded or in any way restricted from investing or participating in any particular enterprise, or trading in the securities thereof whether or not such enterprise has products or services that compete with those of the Company and its Subsidiaries. The parties expressly acknowledge and agree that: (a) the Purchasers, the Board Representative, the respective Affiliates of the Purchasers and their respective Affiliates have the right to, and shall have no duty (contractual or otherwise) not to, directly or indirectly, engage in the same or similar business activities or lines of business as the Company and its Subsidiaries; and (b) in the event that any Purchaser, the Board Representative, any Affiliate of any Purchaser or any of their respective Affiliates acquires knowledge of a potential transaction or matter that may be a corporate opportunity for the Company or any of its Subsidiaries, the Purchasers, Board Representative, Affiliates of the Purchasers or any of their respective Affiliates shall have no duty (contractual or otherwise) to communicate or present such corporate opportunity to the Company or any of its Subsidiaries, and, notwithstanding any provision of this Agreement to the contrary, shall not be liable to the Company or any of its Subsidiaries or shareholders of the Company for breach of any duty (contractual or otherwise) by reason of the fact that such Purchaser, any Affiliate thereof, any related investment fund thereof or any of their respective Affiliates, directly or indirectly, pursues or acquires such opportunity for itself, directs such opportunity to another person, or does not present such opportunity to the Company.

Section 4.23&nbsp;&nbsp;&nbsp;&nbsp;<u>Preemptive Rights</u>. The rights set forth in this Section 4.23 shall automatically terminate immediately prior to the effectiveness of any registration statement filed by the Company under the Securities Act or the Exchange Act, and are subject to Section 4.23 of the Disclosure Schedules.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;<u>Sale of New Securities</u>. For so long as a Purchaser, together with its Affiliates and, for purposes of this Section 4.23, persons who share a common discretionary investment advisor with Purchaser, satisfies the Minimum Ownership Interest, if at any time after the date hereof the Company or any of its Subsidiaries makes any nonpublic offering or sale of any equity (including Common Stock or restricted stock), or any securities, options or debt that is convertible or exchangeable into equity or that includes an equity component (such as, an "equity kicker") (including any hybrid security) (any such security, a "**New Security**") (other than (i) any Common Stock, or other securities issuable upon the exercise or conversion of any securities of the Company issued or agreed or contemplated (and disclosed to the Purchasers in writing) to be issued as of the date hereof; (ii) pursuant to the granting or exercise of employee stock options, restricted stock or other stock incentives pursuant to Company's stock incentive plans approved by the Board or the issuance of stock pursuant to the Company's employee stock purchase plan approved by the Board or similar plan where stock is being issued or offered to a trust, other entity or otherwise, for the benefit of any employees, officers or directors of the Company, in all cases not to exceed in the aggregate five percent (5%) of the outstanding shares of Common Stock (on a fully-diluted basis) as of the date hereof in accordance with Section 4.24; (iii) issuances of capital stock as full or

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partial consideration for a merger, acquisition, joint venture, strategic alliance, license agreement or other similar non-financing transaction; (iv) the issuance of Common Stock with an aggregate purchase price not exceeding $5,000,000 of shares of Common Stock at the Purchase Price or at a purchase price per share greater than the Purchase Price, and on terms and conditions not materially more favorable in the aggregate to the purchasers than as provided to the Purchasers under this Agreement; or (v) the issuance of no more than 547,945 shares of Common Stock in the aggregate pursuant to any Additional Purchase Agreements at a price per share no less than the Purchase Price. The amount of New Securities that a Purchaser shall be entitled to purchase in the aggregate shall be determined by multiplying (x) the total number or principal amount of such offered New Securities by (y) a fraction, the numerator of which is the total number of shares of Common Stock then held by such Purchaser (counting for such purposes all shares of Common Stock into or for which any securities owned by such Purchaser are directly or indirectly convertible or exercisable, including the Non-Voting Common Stock), if any, and the denominator of which is the total number of shares of Common Stock then outstanding (counting for such purposes all shares of Common Stock into or for which any outstanding securities are directly or indirectly convertible or exercisable). Notwithstanding anything herein to the contrary, in no event shall any Purchaser have the right to purchase New Securities hereunder to the extent such purchase would result in such Purchaser, together with any other person whose Company securities would be aggregated with such Purchaser's Company securities for purposes of any bank regulation or law, to collectively be deemed to own, control or have the power to vote securities which (assuming, for this purpose only, full conversion and/or exercise of such securities by such Purchaser) would represent more than nine point nine percent (9.9%) of the Voting Securities or more than thirty-three point three percent (33.3%) of the Company's total equity outstanding.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;<u>Limitation on Voting Securities</u>. Notwithstanding anything in this Section 4.23 to the contrary, upon the request of a Purchaser that such Purchaser not be issued Voting Securities in whole or in part upon the exercise of its rights to purchase New Securities, the Company shall cooperate with such Purchaser to modify the proposed issuance of New Securities to the Purchaser to provide for the issuance of non-voting securities in lieu of Voting Securities; provided, however, that to the extent, following such reasonable cooperation, such modification would cause any other Purchaser to exceed its respective ownership limitation set forth in the applicable other securities purchase agreement, the Company shall, and shall only be obligated to, issue and sell to such Purchaser such number of Voting Securities and nonvoting securities as will not cause any other Purchaser to exceed its respective ownership limitation set forth in the applicable other securities purchase agreement and that the Purchaser has indicated it is willing to hold following consummation of such Offering (as defined in Section 4.23(c) below), and any remaining securities may be offered, sold or otherwise transferred to any other person or persons in accordance with Section 4.23(e).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;<u>Notice</u>. In the event the Company proposes to offer or sell New Securities (the "**Offering**"), it shall give each Purchaser written notice of its intention, describing the price (or range of prices), anticipated amount of New Securities, timing, and other terms upon which the Company proposes to offer the same. Each Purchaser shall have ten (10) Business Days from the date of receipt of such a notice (the "**Response Period**") to notify the Company in writing that it intends to exercise its rights provided in this Section 4.23 and as to the amount of New Securities such Purchaser desires to purchase, up to the maximum amount calculated pursuant to Section 4.23. Such notice shall constitute a nonbinding indication of interest of such Purchaser to purchase the amount of New Securities so specified at the price and other terms set forth in the Company's notice to it. The failure of any Purchaser to respond within the Response Period shall be deemed to be a waiver of such Purchaser's rights under this Section 4.23 only with respect to the Offering described in the applicable notice.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;<u>Purchase Mechanism</u>. If the Purchaser exercises its rights provided in this Section 4.23, it shall enter into a definitive purchase or subscription agreement in substantially the form made available

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to other investors in such Offering, and consummate the purchase of the New Securities in connection with the closing of the Offering with respect to which such right has been exercised, in each case within thirty (30) calendar days after the giving of notice of such exercise, which period of time shall be extended for a maximum of one ninety (90) days in order to comply with applicable Laws and regulations (including receipt of any applicable regulatory or shareholder approvals). Notwithstanding anything to the contrary herein, the closing of the purchase of the New Securities by the Purchasers will occur no earlier than the closing of the Offering triggering the right being exercised by such Purchasers. The Company and each of the Purchasers agree to use their commercially reasonable efforts to secure any regulatory or shareholder approvals or other consents, and to comply with any law or regulation necessary in connection with the offer, sale and purchase of, such New Securities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;<u>Failure of Purchase</u>. In the event any Purchaser fails to exercise its rights provided in this Section 4.23 within the Response Period or, if so exercised, such Purchaser is unable to consummate such purchase within the time period specified in Section 4.23(d) above because of its failure to obtain any required regulatory or shareholder consent or approval, the Company shall thereafter be entitled (during the period of sixty (60) days following the conclusion of the applicable period) to sell or enter into an agreement (pursuant to which the sale of the New Securities covered thereby shall be consummated, if at all, within ninety (90) days from the date of such agreement) to sell the New Securities not elected to be purchased pursuant to this Section 4.23 by such Purchaser or which such Purchaser is unable to purchase because of such failure to obtain any such consent or approval, at a price and upon terms no more favorable in the aggregate to the purchasers of such New Securities than were specified in the Company's notice to such Purchaser. Notwithstanding the foregoing, if such sale is subject to the receipt of any regulatory or shareholder approval or consent or the expiration of any waiting period, the time period during which such sale may be consummated shall be extended until the expiration of five (5) Business Days after all such approvals or consents have been obtained or waiting periods expired, but in no event shall such time period exceed either one hundred and eighty (180) days from the date of the applicable agreement with respect to such sale. In the event the Company has not sold the New Securities or entered into an agreement to sell the New Securities within such 60-day period (or sold and issued New Securities in accordance with the foregoing within ninety (90) days from the date of such agreement (as such period may be extended in the manner described above for a period not to exceed one hundred and eighty (180) days from the date of such agreement)), the Company shall not thereafter offer, issue or sell such New Securities without first offering such New Securities to the Purchaser in the manner provided above.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;&nbsp;&nbsp;<u>Non-Cash Consideration</u>. In the case of the offering of securities for consideration in whole or in part other than cash, including securities acquired in exchange therefor (other than securities by their terms so exchangeable), the consideration other than cash shall be deemed to be the fair value thereof as determined by the Board and the Purchasers.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;&nbsp;&nbsp;&nbsp;<u>Cooperation</u>. The Company and each Purchaser shall cooperate in good faith to facilitate the exercise of such Purchaser's rights under this Section 4.23, including to secure any required approvals or consents.

Section 4.24&nbsp;&nbsp;&nbsp;&nbsp;<u>Equity Incentive Award Program</u>. The Company shall adopt an "Equity Incentive Award Program Restricted Share Award Agreement" in a form reasonably agreeable to the Company and Castle Creek.

Section 4.25&nbsp;&nbsp;&nbsp;&nbsp;<u>Right of First Refusal</u>. The Company shall not exercise its rights under Section 6.11 of the Bylaws of the Company solely with respect to any transfer by a Purchaser to a nominee or another Affiliated fund of such Purchaser (but excluding, for the avoidance of doubt, any limited partner or other investor in Purchaser).

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**ARTICLE V**

**CONDITIONS PRECEDENT TO CLOSING**

Section 5.1&nbsp;&nbsp;&nbsp;&nbsp;<u>Conditions Precedent to the Obligations of the Purchasers to Purchase Shares</u>. The obligation of each Purchaser to acquire Shares at the Closing is subject to the fulfillment, on or prior to the Closing Date, of each of the following conditions, any of which may be waived by such Purchaser (as to itself only):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;<u>Representations and Warranties</u>. The representations and warranties of the Company contained herein shall be true and correct in all material respects (except to the extent such representations and warranties are qualified by materiality, in which case they shall be true and correct in all respects) as of the date when made and as of each Closing Date, as though made on and as of such date, except for such representations and warranties that speak as of a specific date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;<u>Performance</u>. The Company shall have performed, satisfied and complied in all material respects with all covenants and agreements required by this Agreement to be performed, satisfied or complied with by it at or prior to the Closing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;<u>No Injunction</u>. No statute, rule, regulation, executive order, decree, ruling, or injunction shall have been enacted, entered, promulgated, or endorsed by any court or Governmental Entity of competent jurisdiction, nor has there been any regulatory communication, that prohibits the consummation of any of the transactions contemplated by the Transaction Documents or restricts any Purchaser or any of a Purchaser's Affiliates from owning or voting any securities of the Company in accordance with the terms thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;<u>Consents</u>. The Company shall have obtained in a timely fashion any and all consents, permits, approvals, non-objections, registrations, and waivers necessary for it to issue and sell the Shares (including all Required Approvals), all of which shall be and remain so long as necessary in full force and effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;<u>Company Deliverables</u>. The Company shall have delivered the Company Deliverables in accordance with Section 2.2(a).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;&nbsp;&nbsp;<u>Minimum Gross Proceeds</u>. The Company shall receive at the Closing aggregate gross proceeds from the sale of Shares of at least the aggregate dollar amount set forth below the Purchasers' names on the signature pages of this Agreement, and shall simultaneously issue and deliver at the Closing to the Purchasers hereunder an aggregate number of Shares equal to such aggregate gross proceeds divided by the Purchase Price.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;&nbsp;&nbsp;&nbsp;<u>Ownership Limitation</u>. The purchase of Shares by such Purchaser shall not (i) cause such Purchaser or any of its Affiliates to violate any banking regulation, (ii) require such Purchaser or any of its affiliates to file a prior notice under the CIBC Act, or otherwise seek prior approval or non-objection of any banking regulator, (iii) require such Purchaser or any of its Affiliates to become a bank holding company or otherwise serve as a source of strength for the Company or any Bank or (iv) cause such Purchaser, together with any other person whose Company securities would be aggregated with such Purchaser's Company securities for purposes of any banking regulation or Law, to collectively be deemed to own, control or have the power to vote securities which (assuming, for this purpose only, full conversion and/or exercise of such securities by the Purchaser and such other Persons) would represent more than 9.9% of any class of voting securities of the Company outstanding at such time.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)&nbsp;&nbsp;&nbsp;&nbsp;<u>Regulatory Capital Treatment</u>. The Common Shares and Non-Voting Common Stock shall qualify as "Common Equity Tier 1 capital" under 12 C.F.R. Section 217.20(b).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;[Reserved]

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j)&nbsp;&nbsp;&nbsp;&nbsp;<u>Burdensome Condition</u>. Since the date hereof, there shall not be imposed any Burdensome Condition.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k)&nbsp;&nbsp;&nbsp;&nbsp;<u>Material Adverse Effect</u>. No Material Adverse Effect shall have occurred since the date of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l)&nbsp;&nbsp;&nbsp;&nbsp;<u>No Change in Control</u>. The Company shall not have agreed to enter into or entered into (A) any agreement or transaction in order to raise capital, or (B) any transaction that resulted in, or would result in if consummated, a Change in Control of the Company, in each case, other than in connection with the transactions contemplated by the Transaction Documents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m)&nbsp;&nbsp;&nbsp;&nbsp;<u>Non-Performing Assets</u>. As of the end of the month immediately prior to the Closing, total nonperforming assets as a percentage of total assets shall not be more than two and one-half percent (2.5%).

Section 5.2&nbsp;&nbsp;&nbsp;&nbsp;<u>Conditions Precedent to the Obligations of the Company to Sell Shares</u>. The Company's obligation to sell and issue the Shares to each Purchaser at the Closing is subject to the fulfillment on or prior to the Closing Date of the following conditions, any of which may be waived by the Company:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;<u>Representations and Warranties</u>. The representations and warranties made by such Purchaser in Section 3.2 hereof shall be true and correct in all material respects as of the Closing Date, except for such representations and warranties that speak as of a specific date (which representations and warranties are so true and correct as of such date).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;<u>Performance</u>. Such Purchaser shall have performed, satisfied and complied in all material respects with all covenants, agreements and conditions required by the Transaction Documents to be performed, satisfied or complied with by such Purchaser at or prior to the Closing Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;<u>No Injunction</u>. No statute, rule, regulation, executive order, decree, ruling or injunction shall have been enacted, entered, promulgated or endorsed by any court or Governmental Entity of competent jurisdiction that prohibits the consummation of any of the transactions contemplated by the Transaction Documents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;<u>Purchasers Deliverables</u>. Such Purchaser shall have delivered its Purchaser Deliverables in accordance with Section 2.2(b).

**ARTICLE VI**

**MISCELLANEOUS**

Section 6.1&nbsp;&nbsp;&nbsp;&nbsp;<u>Fees and Expenses</u>. Except as set forth elsewhere in the Transaction Documents, the parties hereto shall be responsible for the payment of all expenses incurred by them in connection with the preparation and negotiation of the Transaction Documents and the consummation of the transactions contemplated hereby. The Company shall pay all Transfer Agent fees, stamp taxes and other taxes and duties levied in connection with the Company's sale and issuance of the Shares to the Purchasers.

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Section 6.2&nbsp;&nbsp;&nbsp;&nbsp;<u>Entire Agreement</u>. The Transaction Documents, together with the exhibits and schedules thereto, contain the entire understanding of the parties with respect to the subject matter hereof and supersede all prior agreements, understandings, discussions and representations, oral or written, with respect to such matters, which the parties acknowledge have been merged into such documents, exhibits and schedules. At or after the Closing, and without further consideration, the Company and the Purchasers will execute and deliver to the other parties such further documents as may be reasonably requested in order to give practical effect to the intention of the parties under the Transaction Documents.

Section 6.3&nbsp;&nbsp;&nbsp;&nbsp;<u>Notices</u>. Any and all notices or other communications or deliveries required or permitted to be provided hereunder shall be in writing and shall be deemed given and effective on the earliest of (a) the date of transmission, if such notice or communication is delivered via facsimile or e-mail (provided the sender receives a machine-generated confirmation of successful facsimile transmission or e-mail notification or confirmation of receipt of an e-mail transmission) at the facsimile number or e-mail address specified in this Section 6.3 prior to 5:00 p.m., Eastern time, on a Trading Day, (b) the next Trading Day after the date of transmission, if such notice or communication is delivered via facsimile or e-mail at the facsimile number or e-mail address specified in this Section 6.3 on a day that is not a Trading Day or later than 5:00 p.m., Eastern time, on any Trading Day, (c) if sent by U.S. nationally recognized overnight courier service with next day delivery specified (receipt requested) the Trading Day following delivery to such courier service, or (d) upon actual receipt by the party to whom such notice is required to be given. The address for such notices and communications shall be as follows:

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| | |
|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If to the Company: | &nbsp;&nbsp;Lincoln Bancorp<br>3254 Kimball Avenue<br>Waterloo, IA 50702<br>Attention: Emily Girsch<br>Chief Financial Officer<br>Email: EmilyG@mylsb.com<br>Facsimile: (319) 788-6697 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;With a copy to: | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Barack Ferrazzano Kirschbaum & Nagelberg LLP 200 West Madison Street, Suite 3900<br>Chicago, IL 60606<br>Attention: Robert M. Fleetwood<br>Bill Fay<br>Email:&nbsp;&nbsp;&nbsp;&nbsp;robert.fleetwood@bfkn.com<br>bill.fay@bfkn.com<br>Facsimile: (312) 984-3150 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If to a Purchaser: | &nbsp;&nbsp;To the address set forth under such Purchaser's name on the signature page hereof; |

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or such other address as may be designated in writing hereafter, in the same manner, by such Person.

Section 6.4&nbsp;&nbsp;&nbsp;&nbsp;<u>Amendments; Waivers; No Additional Consideration</u>. No amendment or waiver of any provision of this Agreement will be effective with respect to any party unless made in writing and signed by a duly authorized representative of such party. No waiver of any default with respect to any provision, condition, or requirement of this Agreement shall be deemed to be a continuing waiver in the future or a waiver of any subsequent default or a waiver of any other provision, condition, or requirement hereof, nor shall any delay or omission of either party to exercise any right hereunder in any manner impair the exercise of any such right.

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Section 6.5&nbsp;&nbsp;&nbsp;&nbsp;<u>Construction</u>. The headings herein are for convenience only, do not constitute a part of this Agreement and shall not be deemed to limit or affect any of the provisions hereof. The language used in this Agreement will be deemed to be the language chosen by the parties to express their mutual intent, and no rules of strict construction will be applied against any party. This Agreement shall be construed as if drafted jointly by the parties, and no presumption or burden of proof shall arise favoring or disfavoring any party by virtue of the authorship of any provisions of this Agreement or any of the Transaction Documents.

Section 6.6&nbsp;&nbsp;&nbsp;&nbsp;<u>Successors and Assigns</u>. The provisions of this Agreement shall inure to the benefit of and be binding upon the parties and their successors and permitted assigns. This Agreement, or any rights or obligations hereunder, may not be assigned by the Company without the prior written consent of the Purchasers. Except as otherwise set forth herein, any Purchaser may assign its rights and obligations hereunder in whole or in part only to an Affiliate of such Purchaser and/or to any Person to whom such Purchaser assigns or transfers any Shares in compliance with the Transaction Documents and applicable Law, provided such transferee shall agree in writing to be bound, with respect to the transferred Shares, by the terms and conditions of this Agreement that apply to the transferring Purchaser.

Section 6.7&nbsp;&nbsp;&nbsp;&nbsp;<u>No Third-Party Beneficiaries</u>. This Agreement is intended for the benefit of the parties hereto and their respective successors and permitted assigns and is not for the benefit of, nor may any provision hereof be enforced by, any other Person, other than, solely with respect to the provisions of Section 4.8, the Purchaser Parties.

Section 6.8&nbsp;&nbsp;&nbsp;&nbsp;<u>Governing Law</u>. All questions concerning the construction, validity, enforcement and interpretation of this Agreement shall be governed by and construed in accordance with the internal Laws of the State of Delaware applicable to contracts made and to be performed entirely within such State. Each party agrees that all Proceedings concerning the interpretation, enforcement and defense of the transactions contemplated by this Agreement and any other Transaction Documents (whether brought against a party hereto or its respective Affiliates, employees or agents) exclusive basis in the state or federal courts located in the State of Delaware (the "**Delaware Courts**"). Each party hereto hereby irrevocably submits to the non-exclusive jurisdiction of the Delaware Courts for the adjudication of any dispute hereunder or in connection herewith or with any transaction contemplated hereby or discussed herein (including with respect to the enforcement of any of the Transaction Documents), and hereby irrevocably waives, and agrees not to assert in any Proceeding, any claim that it is not personally subject to the jurisdiction of any such Delaware Court, or that such Proceeding has been commenced in an improper or inconvenient forum. Each party hereto hereby irrevocably waives personal service of process and consents to process being served in any such Proceeding by mailing a copy thereof via registered or certified mail or overnight delivery (with evidence of delivery) to such party at the address in effect for notices to it under this Agreement and agrees that such service shall constitute good and sufficient service of process and notice thereof. Nothing contained herein shall be deemed to limit in any way any right to serve process in any manner permitted by Law. **EACH PARTY HERETO HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY.**

Section 6.9&nbsp;&nbsp;&nbsp;&nbsp;<u>Survival</u>. The representations, warranties, agreements, and covenants contained herein shall survive the Closing and the delivery of the Shares as follows: (i) the representations and warranties of the Company set forth in Sections 3.1(a), 3.1(b), 3.1(c), 3.1(f), 3.1(g) and 3.1(u) shall survive indefinitely, (ii) the representations and warranties of the Company set forth in Section 3.1(i) shall survive for the applicable statute of limitations, (iii) all other representations and warranties of the Company set forth in Section 3.1 shall survive for a period of 12 months following the Closing and the

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delivery of the Shares, and (iv) all representations and warranties of the Purchasers set forth in Section 3.2 shall terminate six months following the Closing and the delivery of the Shares.

Section 6.10&nbsp;&nbsp;&nbsp;&nbsp;<u>Termination</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;This Agreement may be terminated and the sale and purchase of the Shares abandoned at any time prior to the Closing:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;by mutual written agreement of the Company and any Purchaser (with respect to itself only);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp;by the Company or any Purchaser (with respect to itself only) upon written notice to the other parties, in the event that the Closing has not been consummated on or prior to 5:00 p.m., Central Time, on the Outside Date; <u>provided</u>, <u>that</u>, that the right to terminate this Agreement pursuant to this Section 6.10(a)(ii) shall not be available to any party whose failure to fulfill any obligation under this Agreement shall have been the cause of, or shall have resulted in, the failure of the Closing to occur on or prior to such date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;&nbsp;&nbsp;&nbsp;by the Company or any Purchaser, upon written notice to the other parties, in the event that any Governmental Entity shall have issued any order, decree or injunction or taken any other action restraining, enjoining or prohibiting any of the transactions contemplated by this Agreement, and such order, decree, injunction or other action shall have become final and nonappealable;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv)&nbsp;&nbsp;&nbsp;&nbsp;by any Purchaser (with respect to itself only), upon written notice to the Company, if there has been a breach of any representation, warranty, covenant or agreement made by the Company in this Agreement, or any such representation or warranty shall have become untrue after the date of this Agreement, in each case such that a closing condition in Section 5.1(a) or Section 5.1(b) would not be satisfied;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v)&nbsp;&nbsp;&nbsp;&nbsp;by the Company (with respect to a Purchaser), upon written notice to such Purchaser, if there has been a breach of any representation, warranty, covenant or agreement made by such Purchaser in this Agreement, or any such representation or warranty shall have become untrue after the date of this Agreement, in each case such that a closing condition in Section 5.2(a) or Section 5.2(b) would not be satisfied;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi)&nbsp;&nbsp;&nbsp;&nbsp;by the Company or any Purchaser, upon written notice to the other parties, if the Company has entered into a binding written agreement with respect to a Superior Proposal in compliance with Section 4.19 and has paid or caused to be paid the Termination Fee (as defined in Section 6.16(c)) to the Purchasers in compliance with Section 6.10(c);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii)&nbsp;&nbsp;&nbsp;&nbsp;prior to the Closing, by any Purchaser, upon written notice to the Company, if the Company shall have materially breached Section 4.19; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii)&nbsp;&nbsp;&nbsp;&nbsp;by any Purchaser, upon written notice to the Company, if such Purchaser or any of its Affiliates receives written notice from or is otherwise advised by the Federal Reserve or the IDOB that the Federal Reserve or the IDOB, as applicable, will not grant (or intends to rescind if previously granted) any of the confirmations or determinations referred to in Section 5.1(i).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;In the event of a termination pursuant to this Section 6.10, the Company shall promptly notify all non-terminating Purchasers.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;<u>Termination Fee and Redemption</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;If either the Company or any Purchaser terminates this Agreement pursuant to Section 6.10(a)(vi) or any Purchaser terminates this Agreement pursuant to Section 6.10(a)(vii), the Company shall pay or cause to be paid to each Purchaser by wire transfer of immediately available funds to an account designated by such Purchaser in writing to the Company a sum equal to five percent (5%) of such Purchaser's Subscription Amount (the "**Termination Fee**"). The amount of the Termination Fee shall be in addition to any amount payable by the Company to Purchaser pursuant to Section 6.1. If the Company terminates this Agreement pursuant to Section 6.10(a)(vi), the Termination Fee shall be paid in same-day funds prior to or simultaneously with the termination of this Agreement. If any Purchaser terminates this Agreement pursuant to Section 6.10(a)(vii), the Termination Fee shall be paid by the Company within one Business Day of the termination of this Agreement. If any Purchaser terminates this Agreement pursuant to Section 6.10(a)(ii) and the Company (i) has engaged in communications with regard to an Unsolicited Company Proposal that was received after the date hereof and no later than five (5) Business Days prior to the Outside Date pursuant to Section 4.19(b) and has not notified Purchasers in writing of the Company's rejection of such Unsolicited Company Proposal as of the date of such termination, the Company shall pay or cause to be paid to Purchasers by wire transfer of immediately available funds to an account designated by Purchasers in writing to the Company the Termination Fee within one Business Day of the termination of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp;The parties acknowledge that the agreements contained in this Section 6.10(c) are an integral part of the transactions contemplated by this Agreement, and that without these agreements, they would not enter into this Agreement; accordingly, if the Company fails to pay or cause to be paid promptly any fee payable by it pursuant to this Section 6.10(c), then the Company shall pay or cause to be paid to Purchasers their respective costs and expenses (including attorneys' fees) in connection with collecting such fee, together with interest on the amount of the fee at the prime rate of Citibank, N.A. from the date such payment was due under this Agreement until the date of payment. The parties also acknowledge that in no event shall any Purchaser be entitled to receive more than one Termination Fee, and that any Termination Fee paid or payable pursuant to this Section 6.10(c) is not a penalty, but rather is liquidated damages in a reasonable amount that will compensate Purchasers in the circumstances in which such amount is payable, and, if payable, the receipt of the Termination Fee shall constitute Purchasers' sole and exclusive remedy.

Section 6.11&nbsp;&nbsp;&nbsp;&nbsp;<u>Effects of Termination</u>. In the event of any termination of this Agreement as provided in Section 6.10, this Agreement (other than Section 4.8 and this Article VI, which shall remain in full force and effect) shall forthwith become wholly void and of no further force and effect; provided, that nothing herein shall be deemed to release any party from any liability for any breach by such party of the terms and provisions of this Agreement.

Section 6.12&nbsp;&nbsp;&nbsp;&nbsp;<u>Execution</u>. This Agreement may be executed in two or more counterparts, all of which when taken together shall be considered one and the same agreement and shall become effective when counterparts have been signed by each party and delivered to the other party, it being understood that the parties need not sign the same counterpart. In the event that any signature is delivered by facsimile transmission, or by e-mail delivery of a ".pdf" format data file, such signature shall create a valid and binding obligation of the party executing (or on whose behalf such signature is executed) with the same force and effect as if such facsimile signature page were an original thereof.

Section 6.13&nbsp;&nbsp;&nbsp;&nbsp;<u>Severability</u>. If any provision of this Agreement is held to be invalid or unenforceable in any respect, the validity and enforceability of the remaining terms and provisions of this Agreement shall not in any way be affected or impaired thereby and the parties will attempt to agree upon

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a valid and enforceable provision that is a reasonable substitute therefor, and upon so agreeing, shall incorporate such substitute provision in this Agreement.

Section 6.14&nbsp;&nbsp;&nbsp;&nbsp;<u>Replacement of Shares</u>. If any certificate or instrument evidencing any Shares is mutilated, lost, stolen or destroyed, the Company shall issue or cause to be issued in exchange and substitution for and upon cancellation thereof, or in lieu of and substitution therefor, a new certificate or instrument, but only upon receipt of evidence reasonably satisfactory to the Company and the Transfer Agent of such loss, theft or destruction and the execution by the holder thereof of a customary lost certificate affidavit of that fact and an agreement to indemnify and hold harmless the Company and the Transfer Agent for any losses in connection therewith or, if required by the Transfer Agent, a bond in such form and amount as is required by the Transfer Agent. The applicants for a new certificate or instrument under such circumstances shall also pay any reasonable third-party costs associated with the issuance of such replacement Shares. If a replacement certificate or instrument evidencing any Shares is requested due to a mutilation thereof, the Company may require delivery of such mutilated certificate or instrument as a condition precedent to any issuance of a replacement.

Section 6.15&nbsp;&nbsp;&nbsp;&nbsp;<u>Remedies</u>. In addition to being entitled to exercise all rights provided herein or granted by Law, but subject to the limitations set forth herein, each of the Purchasers and the Company shall be entitled to specific performance under the Transaction Documents. The parties agree that monetary damages may not be adequate compensation for any loss incurred by reason of any breach of obligations described in the foregoing sentence and hereby agree to waive in any action for specific performance of any such obligation (other than in connection with any action for a temporary restraining order) the defense that a remedy at law would be adequate.

Section 6.16&nbsp;&nbsp;&nbsp;&nbsp;<u>Independent Nature of Purchasers' Obligations and Rights</u>. The obligations of each Purchaser under any Transaction Document are several and not joint with the obligations of any other Purchaser, and no Purchaser shall be responsible in any way for the performance of the obligations of any other Purchaser under any Transaction Document. The decision of each Purchaser to purchase Shares pursuant to the Transaction Documents has been made by such Purchaser independently of any other Purchaser and independently of any information, materials, statements or opinions as to the business, affairs, operations, assets, properties, liabilities, results of operations, condition (financial or otherwise) or prospects of the Company or any Subsidiary which may have been made or given by any other Purchaser or by any agent or employee of any other Purchaser, and no Purchaser and none of its agents or employees shall have any liability to any other Purchaser (or any other Person) relating to or arising from any such information, materials, statements or opinions. Nothing contained herein or in any other Transaction Document, and no action taken by any Purchaser pursuant hereto or thereto, shall be deemed to constitute the Purchasers as a partnership, an association, a joint venture or any other kind of entity, or create a presumption that the Purchasers are in any way acting in concert or as a group with respect to such obligations or the transactions contemplated by the Transaction Documents. Each Purchaser acknowledges that no other Purchaser has acted as agent for such Purchaser in connection with making its investment hereunder and that no Purchaser will be acting as agent of such Purchaser in connection with monitoring its investment in the Shares or enforcing its rights under the Transaction Documents. Each Purchaser shall be entitled to independently protect and enforce its rights, including without limitation the rights arising out of this Agreement or out of the other Transaction Documents, and it shall not be necessary for any other Purchaser to be joined as an additional party in any Proceeding for such purpose. It is expressly understood and agreed that each provision contained in this Agreement is between the Company and a Purchaser, solely, and not between the Company and the Purchasers collectively and not between and among the Purchasers.

Section 6.17&nbsp;&nbsp;&nbsp;&nbsp;<u>Rescission and Withdrawal Right</u>. Notwithstanding anything to the contrary contained in (and without limiting any similar provisions of) the Transaction Documents, whenever any

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party exercises a right, election, demand or option under a Transaction Document and the applicable counterparty does not timely perform its related obligations within the periods therein provided, then such party may rescind or withdraw, in its sole discretion from time to time upon written notice to the counterparty, any relevant notice, demand or election in whole or in part without prejudice to such party's future actions and rights.

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

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IN WITNESS WHEREOF, the parties hereto have caused this Securities Purchase Agreement to be duly executed by their respective authorized signatories as of the date first indicated above.

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| | | |
|:---|:---|:---|
| LINCOLN BANCORP | LINCOLN BANCORP | LINCOLN BANCORP |
| By: | /s/ Erik Skovgard | /s/ Erik Skovgard |
| Name: | Name: | Erik Skovgard |
| Title: | Title: | Chief Executive Officer |

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[Signature Page to Stock Purchase Agreement]

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| | |
|:---|:---|
| NAME OF PURCHASER: | NAME OF PURCHASER: |
| **EJF SIDECAR FUND, SERIES LLC – SMALL FINANCIAL EQUITIES SERIES** | **EJF SIDECAR FUND, SERIES LLC – SMALL FINANCIAL EQUITIES SERIES** |
| By: EJF Capital LLC | By: EJF Capital LLC |
| Its: Managing Member | Its: Managing Member |
| By: | /s/ Emanuel J. Friedman |
| Name: Emanuel J. Friedman | Name: Emanuel J. Friedman |
| Title: Chief Executive Officer | Title: Chief Executive Officer |
| Aggregate Purchase Price<br>(Subscription Amount): $<u>&nbsp;&nbsp;&nbsp;&nbsp;4,999,989.00</u><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u> <br>Aggregate Number of Shares of Common Stock to be Acquired at Closing:<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 273,972</u> <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u> <br>Tax ID No.:<u>&nbsp;&nbsp;&nbsp;&nbsp;</u><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u> <br>Address for Notice:<br>With a copy to (which copy alone shall not constitute notice): | Aggregate Purchase Price<br>(Subscription Amount): $<u>&nbsp;&nbsp;&nbsp;&nbsp;4,999,989.00</u><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u> <br>Aggregate Number of Shares of Common Stock to be Acquired at Closing:<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 273,972</u> <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u> <br>Tax ID No.:<u>&nbsp;&nbsp;&nbsp;&nbsp;</u><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u> <br>Address for Notice:<br>With a copy to (which copy alone shall not constitute notice): |

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[Signature Page to Stock Purchase Agreement]

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Delivery Instructions:<br>(if different than above)<br>c/o&nbsp;&nbsp;&nbsp;&nbsp;<u>Citigroup Custody/Transfer&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u><br>Street <u>399 Park Ave., Level "C"</u> <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u> <br>City/State/Zip: <u>New York NY 10022</u><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u> <br>Attention: <u>Winsome White</u><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u> <br>Telephone No.: <u>212-559-5669</u><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u><br>

[Signature Page to Stock Purchase Agreement]

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**EXHIBITS**

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| | |
|:---|:---|
| Exhibit A: | Form of Registration Rights Agreement |
| Exhibit B: | Accredited Investor Questionnaire |
| Exhibit C: | Form of Opinion of Company Counsel |
| Exhibit D: | Form of Secretary's Certificate |
| Exhibit E: | Form of Officer's Certificate |

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**EXHIBIT A**

**FORM OF REGISTRATION RIGHTS AGREEMENT**

*See attached*

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**LINCOLN BANCORP**

**REGISTRATION RIGHTS AGREEMENT**

This Registration Rights Agreement (this "Agreement") is made and entered into as of [•], 2018, by and among Lincoln Bancorp, an Iowa corporation (the "<u>Company</u>"), and the purchaser(s) signatory hereto (each a "<u>Registration Rights Purchaser</u>" and collectively, the "<u>Registration Rights</u> <u>Purchasers</u>").

This Agreement is made pursuant to the Stock Purchase Agreement, dated as of October 22, 2018, between the Company and Castle Creek Capital Partners VII, L.P. (the "<u>Purchase Agreement</u>") and the Stock Purchase Agreement, dated as of November 26, 2018, between the Company and the other Registration Rights Purchaser (the "<u>Additional Purchase Agreement</u>").

NOW, THEREFORE, in consideration of the mutual covenants contained in this Agreement, and for other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the Company and each of the Registration Rights Purchasers agree as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.&nbsp;&nbsp;&nbsp;&nbsp;<u>Definitions</u>. Capitalized terms used and not otherwise defined herein that are defined in the Purchase Agreement shall have the meanings given such terms in the Purchase Agreement. As used in this Agreement, the following terms shall have the following meanings:

"<u>Advice</u>" shall have the meaning set forth in Section 8(h).

"<u>Affiliate</u>" means, with respect to any Person, any other Person that directly or indirectly controls, is controlled by, or is under common control with, such Person.

"<u>Agreement</u>" shall have the meaning set forth in the Preamble.

"<u>Allowable Grace Period</u>" shall have the meaning set forth in Section 5(d).

"<u>Business Day</u>" means a day other than a Saturday or Sunday or other day on which banks located in Iowa are authorized or required by law to close.

"<u>Capital Stock</u>" means, with respect to any Person at any time, any and all shares, interests, participations or other equivalents (however designated, whether voting or non-voting) of capital stock, securities convertible into or exchangeable or exercise able for any of its shares, interests, participations or other equivalents, partnership interests (whether general or limited), limited liability company interests, or equivalent ownership interests in or issued by such Person.

"<u>Closing Date</u>" has the meaning set forth in the Purchase Agreement.

"<u>Commission</u>" means the United States Securities and Exchange Commission.

"<u>Common Stock</u>" means the voting common stock of the Company, par value $0.01 per share, and any securities into which such shares of voting common stock may hereinafter be reclassified.

"<u>Company</u>" shall have the meaning set forth in the Preamble.

"<u>Effective Date</u>" means the date that the Registration Statement filed pursuant to Section 2(a) is first declared effective by the Commission.

Exhibit A \| Page 1

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"<u>Effectiveness Deadline</u>" means, with respect to the Initial Registration Statement or the New Registration Statement, the fifth (5th) Trading Day after the date the Company is notified (orally or in writing, whichever is earlier) by the Commission that such Registration Statement will not be "reviewed" or will not be subject to further review; provided, that if the Effectiveness Deadline falls on a Saturday, Sunday or other day that the Commission is closed for business, the Effectiveness Deadline shall be extended to the next Business Day on which the Commission is open for business.

"<u>Effectiveness Period</u>" shall have the meaning set forth in Section 2(b).

"<u>Event</u>" shall have the meaning set forth in Section 2(c).

"<u>Event Date</u>" shall have the meaning set forth in Section 2(c).

"<u>Exchange Act</u>" means the Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder.

"<u>Filing Deadline</u>" means, with respect to the Initial Registration Statement required to be filed pursuant to Section 2(a), the date that is the fifth (5th) anniversary of the Closing Date, provided, that if the Filing Deadline falls on a Saturday, Sunday or other day that the Commission is closed for business, the Filing Deadline shall be extended to the next Business Day on which the Commission is open for business.

"<u>FINRA</u>" shall have the meaning set forth in Section 5(n).

"<u>Grace Period</u>" shall have the meaning set forth in Section 5(d).

"<u>Holder</u>" or "<u>Holders</u>" means the holder or holders, as the case may be, from time to time of Registrable Securities.

"<u>Holders Counsel</u>" shall have the meaning set forth in Section 5(a).

"<u>Indemnified Party</u>" shall have the meaning set forth in Section 7(c).

"<u>Indemnifying Party</u>" shall have the meaning set forth in Section 7(c).

"<u>Initial Registration Statement</u>" means shall have the meaning set forth in Section 2(a).

"<u>Liquidated Damages</u>" shall have the meaning set forth in Section 2(c).

"<u>Losses</u>" shall have the meaning set forth in Section 7(a).

"<u>New Registration Statement</u>" shall have the meaning set forth in Section 2(a).

"<u>Non-Responsive Holder</u>" shall have the meaning set forth in Section 8(d).

"<u>Other Securities</u>" means shares of Common Stock, Class B Common Stock, Series A Preferred Stock, Series B Preferred Stock, Series C Preferred Stock or shares of other Capital Stock of the Company which are entitled to registration rights contractually or under the Company's articles of incorporation, or Capital Stock which the Company is registering pursuant to a Registration Statement.

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"<u>Person</u>" means an individual or corporation, partnership, trust, incorporated or unincorporated association, joint venture, limited liability company, joint stock company, government (or an agency or subdivision thereof) or other entity of any kind.

"<u>Piggyback Registration</u>" shall have the meaning set forth in Section 3(a).

"<u>Principal Market</u>" means the Trading Market on which the Common Stock is primarily listed on and quoted for trading.

"<u>Proceeding</u>" means an action, claim, suit, investigation or proceeding (including, without limitation, an investigation or partial proceeding, such as a deposition), whether commenced or threatened.

"<u>Prospectus</u>" means the prospectus included in a Registration Statement (including, without limitation, a prospectus that includes any information previously omitted from a prospectus filed as part of an effective registration statement in reliance upon Rule 430A promulgated under the Securities Act), as amended or supplemented by any prospectus supplement, with respect to the terms of the offering of any portion of the Registrable Securities covered by a Registration Statement, and all other amendments and supplements to the Prospectus, including post-effective amendments, and all material incorporated by reference or deemed to be incorporated by reference in such Prospectus.

"<u>Purchase Agreement</u>" shall have the meaning set forth in the Recitals.

"<u>Registrable Securities</u>" means all of the Shares and any securities issued or issuable upon any stock split, dividend or other distribution, recapitalization or similar event with respect to the Shares, provided that Shares shall cease to be Registrable Securities upon the earliest to occur of the following: (A) a sale pursuant to a Registration Statement; (B) becoming eligible for sale without time, volume or manner of sale restrictions by the Holders under Rule 144; or (C) if such Shares have ceased to be outstanding.

"<u>Registration Rights Purchaser</u>" or "<u>Registration Rights Purchasers</u>" shall have the meaning set forth in the Preamble.

"<u>Registration Statements</u>" means any one or more registration statements of the Company filed under the Securities Act that covers the resale of any of the Registrable Securities pursuant to the provisions of this Agreement (including without limitation the Initial Registration Statement, the New Registration Statement and any Remainder Registration Statements), amendments and supplements to such Registration Statements, including post-effective amendments, all exhibits and all material incorporated by reference or deemed to be incorporated by reference in such Registration Statements.

"<u>Remainder Registration Statement</u>" shall have the meaning set forth in Section 2(a).

"<u>Requested Information</u>" shall have the meaning set forth in Section 8(d).

"<u>Required Registration Statement</u>" means any Initial Registration Statement, New Registration Statement or Remainder Registration Statement.

"<u>Rule 144</u>" means Rule 144 promulgated by the Commission pursuant to the Securities Act, as such Rule may be amended from time to time, or any successor rule thereto.

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"<u>Rule 144A</u>" means Rule 144A promulgated by the Commission pursuant to the Securities Act, as such Rule may be amended from time to time, or any successor rule thereto.

"<u>Rule 415</u>" means Rule 415 promulgated by the Commission pursuant to the Securities Act, as such Rule may be amended from time to time, or any successor rule thereto.

"<u>Rule 424</u>" means Rule 424 promulgated by the Commission pursuant to the Securities Act, as such Rule may be amended from time to time, or any successor rule thereto.

"<u>SEC Guidance</u>" means (i) any publicly-available written guidance, comments, requirements or requests of the Commission staff and (ii) the Securities Act.

"<u>Securities Act</u>" means the Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder.

"<u>Shares</u>" means the shares of Common Stock issued to the Registration Rights Purchasers pursuant to the Purchase Agreement or any Additional Purchase Agreement.

"<u>Shelf Offering</u>" shall have the meaning set forth in Section 4(a).

"<u>Take-Down Notice</u>" shall have the meaning set forth in Section 4(a).

"<u>Trading Day</u>" means (i) a day on which the Common Stock is listed or quoted and traded on its Principal Market (other than the OTC Bulletin Board), or (ii) if the Common Stock is not listed on a Trading Market (other than the OTC Bulletin Board), a day on which the Common Stock is traded in the over-the-counter market, as reported by the OTC Bulletin Board, or (iii) if the Common Stock is not quoted on any Trading Market, a day on which the Common Stock is quoted in the over-the-counter market as reported in the "pink sheets" by OTC Markets Group, Inc. (or any similar organization or agency succeeding to its functions of reporting prices); provided, that in the event that the Common Stock is not listed or quoted as set forth in (i), (ii) and (iii) hereof, then Trading Day shall mean a Business Day.

"<u>Trading Market</u>" means whichever of the New York Stock Exchange, the NYSE MKT, the Nasdaq Global Select Market, the Nasdaq Global Market, the Nasdaq Capital Market or OTC Bulletin Board on which the Common Stock is listed or quoted for trading on the date in question.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.&nbsp;&nbsp;&nbsp;&nbsp;<u>Mandatory Registration</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;On or prior to the Filing Deadline, if requested in writing by Castle Creek, the Company shall prepare and file with the Commission a Registration Statement covering the resale of all of the Registrable Securities not already covered by an existing and effective Registration Statement for an offering to be made on a continuous basis pursuant to Rule 415 or, if Rule 415 is not available for offers and sales of the Registrable Securities, by such other means of distribution of Registrable Securities as the Company may reasonably determine (the "<u>Initial Registration Statement</u>"). Notwithstanding the registration obligations set forth in this Section 2, in the event that (i) the Company's counsel determines that all such Registrable Securities cannot, as a result of the application of Rule 415, be registered for resale as a secondary offering on a single registration statement prior to filing the Initial Registration Statement, or (ii) the Commission informs the Company that all such Registrable Securities cannot, as a result of the application of Rule 415, be registered for resale as a secondary offering on a single registration statement, the Company agrees to promptly (A) inform each of the Holders thereof and, as applicable, file the Initial Registration Statement, or use its reasonable best efforts to file amendments to the Initial Registration Statement as required by the Commission and/or (B) withdraw the Initial

Exhibit A \| Page 4

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Registration Statement and file a new registration statement (a "<u>New Registration Statement</u>"), in each case covering the maximum number of such Registrable Securities permitted to be registered thereon, on such form available to the Company to register for resale the Registrable Securities as a secondary offering; provided, that in the case of (ii) above, prior to filing such amendment or New Registration Statement, the Company shall be obligated to use its reasonable best efforts to advocate with the Commission for the registration of all of the Registrable Securities in accordance with the SEC Guidance, including without limitation, Securities Act Rules Compliance and Disclosure Interpretation 612.09, or any successor thereto. Notwithstanding any other provision of this Agreement, if the opinion of the Company's counsel or any SEC Guidance sets forth a limitation of the number of Registrable Securities permitted to be registered on a particular Registration Statement as a secondary offering (and, in the case of clause (ii) above, notwithstanding that the Company used reasonable best efforts to reasonably advocate with the Commission for the registration of all or a greater number of Registrable Securities), the number of Registrable Securities to be registered on such Registration Statement will be reduced on a pro rata on the basis of the aggregate number of Registrable Securities owned by each applicable Holder, and under such circumstances, the Company will not be subject to the payment of Liquidated Damages in Section 2(c). In the event the Company amends the Initial Registration Statement or files a New Registration Statement, as the case may be, under clauses (A) or (B) above, the Company will use its reasonable best efforts to file with the Commission, as promptly as allowed by Commission or SEC Guidance provided to the Company or to registrants of securities in general, one or more registration statements on such form available to the Company to register for resale those Registrable Securities that were not registered for resale on the Initial Registration Statement, as amended, or the New Registration Statement (the "<u>Remainder Registration Statements</u>"). No Holder shall be named as an "underwriter" in any Registration Statement without such Holder's prior written consent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;The Company shall use its reasonable best efforts to cause each Required Registration Statement to be declared effective by the Commission as soon as practicable, and, with respect to the Initial Registration Statement or the New Registration Statement, as applicable, no later than the Effectiveness Deadline, and shall use its reasonable best efforts to keep each Required Registration Statement continuously effective under the Securities Act until the earlier of (i) such time as all of the Registrable Securities covered by such Required Registration Statement have been publicly sold by the Holders or (ii) the date that all Registrable Securities covered by such Required Registration Statement may be sold by the Holders without volume or manner of sale restrictions under Rule 144, as determined by counsel to the Company pursuant to a written opinion letter to such effect, addressed and reasonably acceptable to the Company's transfer agent (the "<u>Effectiveness Period</u>"). The Company shall request effectiveness of a Required Registration Statement as of 5:00 p.m., New York City time, on a Trading Day. The Company shall promptly notify the Holders via facsimile or electronic mail of a ".pdf" format data file of the effectiveness of a Registration Statement within one (1) Business Day of the Effective Date. The Company shall file a final Prospectus for a Required Registration Statement with the Commission, as required by Rule 424(b) as promptly as reasonably practicable following the Effective Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;If: (i) the Initial Registration Statement is not filed with the Commission on or prior to the Filing Deadline, (ii) the Initial Registration Statement or the New Registration Statement, as applicable, is not declared effective by the Commission (or otherwise does not become effective) for any reason on or prior to the Effectiveness Deadline, or (iii) after its Effective Date, (A) such Registration Statement ceases to be effective for any reason (including without limitation by reason of a stop order, or the Company's failure to update the Registration Statement), to remain continuously effective as to all Registrable Securities for which it is required to be effective, or (B) the Holders are not permitted to utilize the Prospectus therein to resell such Registrable Securities (other than during an Allowable Grace Period), (iv) a Grace Period applicable to a Required Registration Statement exceeds the length of an Allowable Grace Period, or (v) after the Filing Deadline, and only in the event a Registration Statement is

Exhibit A \| Page 5

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not effective or available to sell all Registrable Securities, the Holders are unable to sell Registrable Securities without restriction under Rule 144, (any such failure or breach in clauses (i) through (v) above being referred to as an "<u>Event</u>," and, for purposes of clauses (i), (ii), (iii) or (v), the date on which such Event occurs, or for purposes of clause (iv) the date on which such Allowable Grace Period is exceeded, being referred to as an "<u>Event Date</u>"), then in addition to any other rights the Holders may have hereunder or under applicable law, on each such Event Date and on each monthly anniversary of each such Event Date (if the applicable Event shall not have been cured by such date) until the applicable Event is cured, the Company shall pay to each Holder an amount in cash or shares of Common Stock or Non-Voting Common Stock, as appropriate, at the election of the Holder, as liquidated damages and not as a penalty ("<u>Liquidated Damages</u>"), equal to 3.0% of the aggregate purchase price paid by such Holder pursuant to the Purchase Agreement or Additional Purchase Agreement for any Registrable Securities held by such Holder on the Event Date, which shall be paid on no more than one (1) occasion and shall be the Holders' sole remedy for any such breaches. The parties agree that notwithstanding anything to the contrary herein or in the Purchase Agreement or Additional Purchase Agreement, no Liquidated Damages shall be payable (i) if as of the relevant Event Date, the Registrable Securities may be sold by the Holders without volume or manner of sale restrictions under Rule 144, as determined by counsel to the Company pursuant to a written opinion letter to such effect, addressed and reasonably acceptable to the Company's transfer agent, (ii) to a Holder causing an Event that relates to or is caused by any action or inaction taken by such Holder, (iii) to a Holder in the event it is unable to lawfully sell any of its Registrable Securities (including, without limitation, in the event a Grace Period exceeds the length of an Allowable Grace Period) because of possession of material non-public information or (iv) with respect to any period after the expiration of the Effectiveness Period (it being understood that this clause shall not relieve the Company of any Liquidated Damages accruing prior to the expiration of the Effectiveness Period). If the Company fails to pay any Liquidated Damages pursuant to this Section 2(c) in full within ten (10) Business Days after the date payable, the Company will pay interest on the amount of Liquidated Damages then owing to the Holder at a rate of 1.0% per month on an annualized basis (or such lesser maximum amount that is permitted to be paid by applicable law) to the Holder, accruing daily from the date such Liquidated Damages are due until such amounts, plus all such interest thereon, are paid in full. The Liquidated Damages pursuant to the terms hereof shall apply on a daily pro-rata basis for any portion of a month prior to the cure of an Event, except in the case of the first Event Date. With respect to a Holder, the Effectiveness Deadline for a Required Registration Statement shall be extended without default or Liquidated Damages hereunder in the event that the Company's failure to obtain the effectiveness of the Registration Statement on a timely basis results from the failure of such Holder to timely provide the Company with information requested by the Company and necessary to complete the Registration Statement in accordance with the requirements of the Securities Act (in which case the Effectiveness Deadline would be extended with respect to Registrable Securities held by such Registration Rights Purchaser).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.&nbsp;&nbsp;&nbsp;&nbsp;<u>Piggyback Registration</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;If the Company intends to file a Registration Statement covering a primary or secondary offering of any of its Common Stock or Other Securities, whether or not the sale for its own account, which is not a registration solely to implement an employee benefit plan pursuant to a registration statement on Form S-8 (or successor form), a registration statement on Form S-4 (or successor form) or a transaction to which Rule 145 or any other similar rule of the Commission is applicable, the Company will promptly (and in any event at least ten (10) Business Days before the anticipated filing date) give written notice to the Holders of its intention to effect such a registration. The Company will effect the registration under the Securities Act of all Registrable Securities that the Holder(s) request(s) be included in such registration (a "<u>Piggyback Registration</u>") by a written notice delivered to the Company within five (5) Business Days after the notice given by the Company in the preceding sentence. Subject to Section 3(b), securities requested to be included in a Company registration

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pursuant to this Section 3 shall be included by the Company on the same form of Registration Statement as has been selected by the Company for the securities the Company is registering for sale referred to above. The Holders shall be permitted to withdraw all or part of the Registrable Securities from the Piggyback Registration at any time at least two (2) Business Days prior to the effective date of the Registration Statement relating to such Piggyback Registration (the "<u>Piggyback Registration Statement</u>"). If the Company elects to terminate any registration filed under this Section 3 prior to the effectiveness of such registration, the Company will have no obligation to register the securities sought to be included by the Holders in such registration under this Section 3. There shall be no limit to the number of Piggybank Registrations pursuant to this Section 3(a).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;If a Registration Statement under this Section 3 relates to an underwritten offering and the managing underwriter(s) advise(s) the Company that in its or their reasonable opinion the number of securities requested to be included in such offering exceeds the number which can be sold without adversely affecting the marketability of such offering (including an adverse effect on the per share offering price), the Company will include in such registration or Prospectus only such number of securities that in the reasonable opinion of such underwriter(s) can be sold without adversely affecting the marketability of the offering (including an adverse effect on the per share offering price), which securities will be so included in the following order of priority, subject, however, to the requirements of the Company's articles of incorporation: (i) first, the Common Stock and other securities the Company proposes to sell, (ii) second, the Registrable Securities of the Holders who have requested inclusion of Registrable Securities pursuant to this Section 3 along with any shares of Common Stock held by the Lincoln Bancorp Employee Stock Ownership Trust or Peterson Contractors, Inc. (or their respective successors) that are included in such Registration Statement, pro rata on the basis of the aggregate number of such securities or shares owned by each such person, or as such Holders and persons may otherwise agree, and (iii) third, any other securities of the Company that have been requested to be so included, subject to the terms of this Agreement. The Company shall select the investment banking firm or firms to act as the lead underwriter or underwriters in connection with an underwritten offering made pursuant to this Section 3; provided that such underwriter(s) shall be reasonably acceptable to the applicable Holder(s). No Holder may participate in any underwritten registration under this Section 3 unless such Holder (i) agrees to sell the Registrable Securities it desires to have covered by the underwritten offering on the basis provided in any underwriting arrangements in customary form and (ii) completes and executes all questionnaires, powers of attorney, indemnities, underwriting agreements and other documents reasonably required under the terms of such underwriting arrangements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.&nbsp;&nbsp;&nbsp;&nbsp;<u>Underwritten Shelf Offerings</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;At any time that a shelf registration statement covering Registrable Securities pursuant to Section 2 or Section 3 is effective, if any Holder delivers a notice to the Company (a "<u>Take-Down Notice</u>") stating that it intends to sell all or part of its Registrable Securities included by it on the shelf registration statement (a "<u>Shelf Offering</u>"), then the Company shall amend or supplement the shelf registration statement as may be necessary in order to enable such Registrable Securities to be distributed pursuant to the Shelf Offering (taking into account the inclusion of Registrable Securities by any other Holders pursuant to this Section 4(a)). In connection with any Shelf Offering, including any Shelf Offering that is an underwritten offering, such proposing Holder(s) shall also deliver the Take-Down Notice to all other holders of Registrable Securities included on such shelf Registration Statement and permit each such Holder to include its Registrable Securities included on the shelf Registration Statement in the Shelf Offering if such holder notifies the proposing Holder(s) and the Company within five days after delivery of the Take-Down Notice to such Holder.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;The Company shall have no obligation to effect an underwritten offering under this Section 4 on behalf of the holders of Registrable Securities electing to participate in such offering unless the expected gross proceeds from such offering exceed $5,000,000.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;If a Shelf Offering of Registrable Securities included in a Required Registration Statement is to be conducted as an underwritten offering, then the Holders of the majority of the Registrable Securities included in a Required Registration Statement shall select the investment banking firm or firms to act as the lead underwriter or underwriters in connection with such offering; provided, that such selection shall be reasonably acceptable to the Company. If, in connection with any such underwritten offering, the managing underwriter(s) advise(s) the Company that in its or their reasonable opinion the number of securities requested to be included in such offering exceeds the number which can be sold without adversely affecting the marketability of such offering (including an adverse effect on the per share offering price), the Company will include in such registration or Prospectus only such number of securities that in the reasonable opinion of such underwriter(s) can be sold without adversely affecting the marketability of the offering (including an adverse effect on the per share offering price), which securities will be so included in the following order of priority: (i) first, the Registrable Securities of the Holders who have requested registration of Registrable Securities pursuant to this Section 4, pro rata on the basis of the aggregate number of such securities or shares owned by each such person, or as the Holders may otherwise agree amongst themselves, (ii) second, the Common Stock and other securities the Company proposes to sell, and (iii) third, any other securities of the Company that have been requested to be so included, subject to the terms of this Agreement. No Holder may participate in any underwritten registration under this Section 4 unless such Holder (i) agrees to sell the Registrable Securities it desires to include in the underwritten offering on the basis provided in any underwriting arrangements in customary form and (ii) completes and executes all questionnaires, powers of attorney, indemnities, underwriting agreements and other documents reasonably required under the terms of such underwriting arrangements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;In addition to Sections (a) and (b) of this Section 4, a Shelf Offering of Registrable Securities included on a Piggyback Registration Statement initiated by Holders shall be subject to the procedures set forth in Section 3(b).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.&nbsp;&nbsp;&nbsp;&nbsp;<u>Registration Procedures</u>.

In connection with the Company's registration obligations hereunder:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;the Company shall, not less than three (3) Trading Days prior to the filing of a Registration Statement or any related Prospectus or any amendment or supplement thereto (except for Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, proxy statements and Current Reports on Form 8-K and any similar or successor reports), furnish to one counsel designated by a majority of the outstanding Registrable Securities ("<u>Holders Counsel</u>"), copies of such Registration Statement, Prospectus or amendment or supplement thereto, as proposed to be filed, which documents will be subject to the reasonable review of Holders Counsel; provided that each Holder shall have the right to review, prior to filing, its selling shareholder information. The Company shall not file any Registration Statement or amendment or supplement thereto containing information which Holders Counsel reasonably objects in good faith, unless the Company shall have been advised by its counsel that the information objected to is required under the Securities Act or the rules or regulations adopted thereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;(i) the Company shall prepare and file with the Commission such amendments, including post-effective amendments and supplements, to each Registration Statement and the Prospectus used in connection therewith as may be necessary to keep such Registration Statement continuously effective as to the applicable Registrable Securities for its Effectiveness Period (except during an

Exhibit A \| Page 8

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Allowable Grace Period); (ii) the Company shall cause the related Prospectus to be amended or supplemented by any required Prospectus supplement (subject to the terms of this Agreement), and, as so supplemented or amended, to be filed pursuant to Rule 424 (except during an Allowable Grace Period); (iii) the Company shall respond as promptly as reasonably practicable to any comments received from the Commission with respect to each Registration Statement or any amendment thereto and, as promptly as reasonably possible, provide the Holders Counsel true and complete copies of all correspondence from and to the Commission relating to such Registration Statement that pertains to the Holders as "Selling Shareholders"; and (iv) the Company shall comply in all material respects with the provisions of the Securities Act with respect to the disposition of all Registrable Securities covered by a Registration Statement until such time as all of such Registrable Securities shall have been disposed of (subject to the terms of this Agreement) in accordance with the intended methods of disposition by the Holders thereof as set forth in such Registration Statement as so amended or in such Prospectus as so supplemented; provided, that each Holder shall be responsible for the delivery of the Prospectus to the Persons to whom such Registration Rights Purchaser sells any of the Registrable Securities (including in accordance with Rule 172 under the Securities Act), and each Holder agrees to dispose of Registrable Securities in compliance with applicable federal and state securities laws. In the case of amendments and supplements to a Registration Statement which are required to be filed pursuant to this Agreement (including pursuant to this Section 5(b)) by reason of the Company filing a report on Form 10-K, Form 10- Q or Form 8-K or any analogous report under the Exchange Act, the Company shall have incorporated such report by reference into such Registration Statement, if applicable, or shall file such amendments or supplements with the Commission as promptly as practicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;the Company shall notify the Holders (which notice shall, pursuant to clauses (ii) through (iv) hereof, be accompanied by an instruction to suspend the use of the Prospectus until the requisite changes have been made, if applicable) as promptly as reasonably practicable following the day (i)(A) when a Prospectus or any Prospectus supplement or post-effective amendment to a Registration Statement has been filed with the Commission; and (B) with respect to each Registration Statement or any post-effective amendment, when the same has become effective; (ii) of the issuance by the Commission or any other federal or state Governmental Entity of any stop order suspending the effectiveness of a Registration Statement covering any or all of the Registrable Securities or the initiation of any Proceedings for that purpose; (iii) of the receipt by the Company of any notification with respect to the suspension of the qualification or exemption from qualification of any of the Registrable Securities for sale in any jurisdiction, or the initiation or threatening of any Proceeding for such purpose; and (iv) of the occurrence of any event or passage of time that makes the financial statements included in a Registration Statement ineligible for inclusion therein or any statement made in such Registration Statement or Prospectus or any document incorporated or deemed to be incorporated therein by reference untrue in any material respect or that requires any revisions to such Registration Statement, Prospectus or other documents so that, in the case of such Registration Statement or the Prospectus, as the case may be, it will not contain any untrue statement of a material fact or omit to state any material fact required to be stated therein or necessary to make the statements therein (in the case of any Prospectus, form of prospectus or supplement thereto, in light of the circumstances under which they were made), not misleading.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;Notwithstanding anything to the contrary herein, at any time after the Registration Statement has been declared effective by the Commission, the Company may delay the disclosure of material non-public information concerning the Company if the disclosure of such information at the time is not, in the good faith judgment of the Company, in the best interests of the Company (such delay, a "<u>Grace Period</u>"). During the Grace Period, the Company shall not be required to maintain the effectiveness of any Registration Statement filed hereunder and, in any event, Holders shall suspend sales of Registrable Securities pursuant to such Registration Statements during the pendency of the Grace Period provided, the Company shall promptly (i) notify the Holders in writing of the existence of material non-public information giving rise to a Grace Period or the need to file a post-effective

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amendment, as applicable, and the date on which such Grace Period will begin, (ii) use reasonable best efforts to terminate a Grace Period as promptly as practicable provided that such termination is, in the good faith judgment of the Company, in the best interest of the Company and (iii) notify the Holders in writing of the date on which the Grace Period ends; provided, further, that, with respect to a Required Registration Statement only, no single Grace Period shall exceed forty-five (45) consecutive days, and during any three hundred sixty-five (365) day period, the aggregate of all Grace Periods shall not exceed an aggregate of ninety (90) days (each Grace Period complying with this provision being an "<u>Allowable Grace Period</u>"). For purposes of determining the length of a Grace Period, the Grace Period shall be deemed to begin on and include the date the Holders receive the notice referred to in clause (i) above and shall end on and include the later of the date the Holders receive the notice referred to in clause (iii) above and the date referred to in such notice; provided, that no Grace Period shall be longer than an Allowable Grace Period. Notwithstanding anything to the contrary, the Company shall use reasonable best efforts to cause the Transfer Agent to deliver unlegended Shares to a transferee of a Holder in accordance with the terms of the Purchase Agreement or applicable Additional Purchase Agreement in connection with any sale of Registrable Securities with respect to which a Holder has entered into an irrevocable contract for sale prior to the Holder's receipt of the notice of a Grace Period and for which the Holder has not yet settled.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;the Company shall use reasonable best efforts to avoid the issuance of, or, if issued, obtain the withdrawal of (i) any order suspending the effectiveness of a Registration Statement, or (ii) any suspension of the qualification (or exemption from qualification) of any of the Registrable Securities for sale in any jurisdiction, as soon as practicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;&nbsp;&nbsp;the Company shall, if requested by a Holder, furnish to such Holder, without charge, at least one (1) conformed copy of each Registration Statement and each amendment thereto and all exhibits to the extent requested by such Holder (including those previously furnished or incorporated by reference) promptly after the filing of such documents with the Commission; provided, that the Company shall have no obligation to provide any document pursuant to this clause that is available on the Commission's EDGAR or successor system.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;&nbsp;&nbsp;&nbsp;the Company agrees to promptly deliver to each Holder whose Registrable Securities are included in the applicable Registration Statement, without charge, as many copies of each Prospectus or Prospectuses (including each form of prospectus) and each amendment or supplement thereto as such Persons may reasonably request. The Company hereby consents to the use of such Prospectus and each amendment or supplement thereto by each of the selling Holders in connection with the offering and sale of Registrable Securities covered by such Prospectus and any amendment or supplement thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)&nbsp;&nbsp;&nbsp;&nbsp;the Company shall, prior to any resale of Registrable Securities by a Holder, use its reasonable best efforts to register or qualify or cooperate with the selling Holders in connection with the registration or qualification (or exemption from the registration or qualification) of such Registrable Securities for the resale by the Holder under the securities or Blue Sky laws of such jurisdictions within the United States as any Holder reasonably requests in writing, to keep each registration or qualification (or exemption therefrom) effective during the Effectiveness Period and to do any and all other acts or things reasonably necessary to enable the disposition in such jurisdictions of the Registrable Securities covered by each Registration Statement; provided, that the Company shall not be required to qualify generally to do business in any jurisdiction where it is not then so qualified, subject the Company to any general tax in any such jurisdiction where it is not then so subject or file a consent to service of process in any such jurisdiction.

Exhibit A \| Page 10

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;the Company shall enter into such customary agreements (including an underwriting agreement in customary form) and take all such other actions reasonably requested by the Holders of a majority of the Registrable Securities being sold in connection therewith or by the managing underwriter(s), if any, in order to expedite or facilitate the disposition of such Registrable Securities. In connection with any such permitted underwritten offering of Registrable Securities, (i) the Company shall (A) make such representations and warranties to the selling Holders and the managing underwriter(s), if any, with respect to the business of the Company and its subsidiaries, and the Registration Statement, Prospectus and documents, if any, incorporated or deemed to be incorporated by reference therein, in each case, in form, substance and scope as are customarily made by issuers in underwritten offerings, and, if true, confirm the same if and when requested, (B) use its reasonable best efforts to furnish opinions of counsel to the Company and updates thereof (which counsel and opinions (in form, scope and substance) shall be reasonably satisfactory to the managing underwriter(s), if any, addressed to each of the managing underwriter(s), if any, covering the matters customarily covered in opinions requested in underwritten offerings, (C) use its reasonable best efforts to obtain "cold comfort" letters and updates thereof from the independent certified public accountants of the Company (and, if necessary, any other independent certified public accountants of any subsidiary of the Company or of any business acquired by the Company for which financial statements and financial data are, or are required to be, included in the Registration Statement) who have certified the financial statements included in such Registration Statement, addressed to each of the managing underwriter(s), if any, such letters to be in customary form and covering matters of the type customarily covered in "cold comfort" letters in connection with underwritten offerings, (D) the underwriting agreement shall contain indemnification provisions and procedures customary in such underwritten offerings and (v) deliver such documents and certificates as may be reasonably requested by the Holders of a majority of the Registrable Securities being sold in connection therewith, their counsel and the managing underwriter(s), if any, to evidence the continued validity of the representations and warranties made pursuant to clause (A) above and to evidence compliance with any customary conditions contained in the underwriting agreement or other agreement entered into by the Company, (ii) each Holder shall not, during such period (which period shall in no event exceed one hundred and eighty (180) days, subject to any then customary "booster shot" extension (which extension shall not exceed thirty (30) days) following the effective date of any Registration Statement to the extent requested by any managing underwriter, sell, pledge, hypothecate, transfer, make any short sale of, loan, grant any option or right to purchase of, or otherwise transfer or dispose of (other than to donees who agree to be similarly bound) any Registrable Securities owned by it at any time during such period, except Registrable Securities included in such registration; provided that any release of Registrable Securities from such agreement shall be effected among the Holders on a pro rata basis according to the Registrable Securities then owned by them, and (iii) each Registration Rights Purchaser shall, and the Company shall use its reasonable best efforts to cause each of its directors and senior executive officers to, execute and deliver customary lockup agreements in such form and for such time period up to one hundred and eighty (180) days (subject to any then customary "booster shot" extensions) as may be requested by any managing underwriter. The above shall be done at each closing under such underwriting or similar agreement, or as and to the extent required thereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j)&nbsp;&nbsp;&nbsp;&nbsp;the Company shall make available for inspection by any Holder of Registrable Securities included in such Registration Statement, any underwriter participating in any disposition pursuant to such Registration Statement, and any attorney, accountant or other agent retained by any such seller or underwriter (collectively, the "<u>Inspectors</u>"), at the offices where normally kept, during reasonable business hours, all financial and other records, pertinent corporate documents and properties of the Company and its Subsidiaries (collectively, the "<u>Records</u>"), as shall be reasonably necessary to enable them to exercise their due diligence responsibility, and cause the Company's officers, directors and employees to supply all information reasonably requested by any such Inspector in connection with such Registration Statement; provided, however, that any Records that are not generally publicly available at the time of delivery of such Records shall be kept confidential by such Inspectors unless (i) the disclosure

Exhibit A \| Page 11

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of such Records is necessary in the reasonable judgment of the Inspectors to avoid or correct a misstatement or omission in the Registration Statement, or (ii) the release of such Records is ordered pursuant to a subpoena or other order from a court of competent jurisdiction; provided, further, that each Holder of Registrable Securities agrees that it will, upon learning that disclosure of such Records is sought in a court of competent jurisdiction, give notice to the Company to the extent legally permitted and allow the Company, at its expense, to undertake appropriate action and to prevent disclosure of the Records deemed confidential.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k)&nbsp;&nbsp;&nbsp;&nbsp;the Company shall, in the case of an underwritten offering, cause its officers to use their reasonable best efforts to support the marketing of the Registrable Securities covered by the Registration Statement (including, without limitation, by participation in "road shows") if requested by the managing underwriter(s) and taking into account the Company's business needs.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l)&nbsp;&nbsp;&nbsp;&nbsp;the Company shall reasonably cooperate with the Holders to facilitate the timely preparation and delivery of certificates representing Registrable Securities to be delivered to a transferee pursuant to the Registration Statement, which certificates shall be free, to the extent permitted by the Purchase Agreement or applicable Additional Purchase Agreement, and under law, of all restrictive legends, and to enable such Registrable Securities to be in such denominations and registered in such names as any such Holders may reasonably request. Certificates for Registrable Securities free from all restrictive legends may be transmitted by the transfer agent to a Holder by crediting the account of such Holder's prime broker with DTC as directed by such Holder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m)&nbsp;&nbsp;&nbsp;&nbsp;the Company shall following the occurrence of any event contemplated by Sections 5(c)(ii)-(iv), as promptly as reasonably practicable, as applicable: (i) use its reasonable best efforts to prevent the issuance of any stop order or obtain its withdrawal at the earliest possible moment if the stop order have been issued, or (ii) taking into account the Company's good faith assessment of any adverse consequences to the Company and its shareholders of the premature disclosure of such event, prepare and file a supplement or amendment, including a post-effective amendment, to the affected Registration Statements or a supplement to the related Prospectus or any document incorporated or deemed to be incorporated therein by reference, and file any other required document so that, as thereafter delivered, no Registration Statement nor any Prospectus will contain an untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein (in the case of any Prospectus, form of prospectus or supplement thereto, in light of the circumstances under which they were made), not misleading.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n)&nbsp;&nbsp;&nbsp;&nbsp;the Company may require each selling Holder to furnish to the Company a certified statement as to (i) the number of securities of the Company beneficially owned by such Holder and any Affiliate thereof, (ii) any Financial Industry Regulatory Authority ("<u>FINRA</u>") affiliations, (iii) any natural persons who have the power to vote or dispose of the Common Stock and (iv) any other information as may be requested by the Commission, FINRA, any state securities commission or any other government or regulatory body with jurisdiction over the Company or its activities. During any periods that the Company is unable to meet its obligations hereunder with respect to the registration of Registrable Securities because any Holder fails to furnish such information within five (5) Trading Days of the Company's request, any Liquidated Damages that are accruing at such time as to such Holder only shall be tolled and any Event that may otherwise occur solely because of such delay shall be suspended as to such Holder only, until such information is delivered to the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o)&nbsp;&nbsp;&nbsp;&nbsp;the Company shall cooperate with any registered broker through which a Holder proposes to resell its Registrable Securities in effecting a filing with FINRA pursuant to FINRA Rule 5110 as requested by any such Holder and the Company shall pay the filing fee required for the first such filing (but not additional filings) within two (2) Business Days of the request therefore.

Exhibit A \| Page 12

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p)&nbsp;&nbsp;&nbsp;&nbsp;if the Company becomes eligible to use Form S-3 during the term of this Agreement, the Company shall use its reasonable best efforts to maintain eligibility for use of Form S-3 (or any successor form thereto) for the registration of the resale of Registrable Securities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q)&nbsp;&nbsp;&nbsp;&nbsp;if requested by a Holders Counsel, the Company shall (i) promptly incorporate in a Prospectus supplement or post-effective amendment to the Registration Statement such information as the Company reasonably agrees (upon advice of counsel) is required to be included therein and (ii) make all required filings of such Prospectus supplement or such post-effective amendment as soon as reasonably practicable after the Company has received notification of the matters to be incorporated in such Prospectus supplement or post-effective amendment.

The Company may require each Holder of Registrable Securities as to which any registration is being effected to furnish to the Company in writing such information required in connection with such registration regarding such Holder and the distribution of such Registrable Securities as the Company may, from time to time, reasonably request in writing and the Company may exclude from such registration the Registrable Securities of any Holder who fails to furnish such information within a reasonable time after receiving such request.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.&nbsp;&nbsp;&nbsp;&nbsp;<u>Registration Expenses</u>. All fees and expenses incident to the Company's performance of or compliance with its obligations under this Agreement (excluding any underwriting discounts and selling commissions, stock transfer taxes and fees of counsel for the Holders) shall be borne by the Company whether or not any Registrable Securities are sold pursuant to a Registration Statement. The fees and expenses referred to in the foregoing sentence that are the Company's responsibility shall include, without limitation, (i) all registration and filing fees (including, without limitation, fees and expenses (A) with respect to filings required to be made with any Trading Market on which the Common Stock is then listed for trading, (B) with respect to compliance with applicable state securities or Blue Sky laws (including, without limitation, fees and disbursements of counsel for the Company in connection with Blue Sky qualifications or exemptions of the Registrable Securities and determination of the eligibility of the Registrable Securities for investment under the laws of such jurisdictions as requested by the Holders) and (C) if not previously paid by the Company in connection with an issuer filing, with respect to any filing that may be required to be made by any broker through which a Holder intends to make sales of Registrable Securities with FINRA pursuant to FINRA Rule 5110, so long as the broker is receiving no more than a customary brokerage commission in connection with such sale, (ii) printing expenses (including, without limitation, expenses of printing certificates for Registrable Securities and of printing prospectuses if the printing of prospectuses is reasonably requested by the Holders of a majority of the Registrable Securities included in the Registration Statement), (iii) messenger, telephone and delivery expenses of the Company, (iv) fees and disbursements of counsel for the Company, (v) Securities Act liability insurance, if the Company so desires such insurance, (vi) fees and expenses of all other Persons retained by the Company in connection with the consummation of the transactions contemplated by this Agreement, and (vii) those expenses of Castle Creek and other Registration Rights Purchasers actually and reasonably incurred, including without limitation, the reasonable attorneys' fees, provided however that the maximum aggregate amount of such expenses and fees of Castle Creek and any other Registration Rights Purchasers subject to reimbursement under this clause (vii) shall be $50,000. In addition, the Company shall be responsible for all of its internal expenses incurred in connection with the consummation of the transactions contemplated by this Agreement (including, without limitation, all salaries and expenses of its officers and employees performing legal or accounting duties), the expense of any annual audit and the fees and expenses incurred in connection with the listing of the Registrable Securities on any securities exchange as required hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.&nbsp;&nbsp;&nbsp;&nbsp;<u>Indemnification</u>.

Exhibit A \| Page 13

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;<u>Indemnification by the Company</u>. The Company shall, notwithstanding any termination of this Agreement, indemnify, defend and hold harmless each Holder and each of their respective officers, directors, agents, general partners, managing members, managers, Affiliates and employees, each Person who controls any such Holder (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act) and the officers, directors, general partners, managing members, managers, agents and employees of such controlling Person, to the fullest extent permitted by applicable law, from and against any and all losses, claims, damages, liabilities, costs (including, without limitation, reasonable costs of preparation and investigation and reasonable and documented attorneys' fees) and expenses (collectively, "<u>Losses</u>"), as incurred, that arise out of or are based upon (i) any untrue or alleged untrue statement of a material fact contained in any Registration Statement, any Prospectus or any form of prospectus or in any amendment or supplement thereto or in any preliminary prospectus, or arising out of or relating to any omission or alleged omission to state a material fact required to be stated therein or necessary to make the statements therein (in the case of any Prospectus or form of prospectus or supplement thereto, in light of the circumstances under which they were made) not misleading, or (ii) any violation or alleged violation by the Company of the Securities Act, Exchange Act or any state securities law or any rule or regulation thereunder, in connection with the performance of its obligations under this Agreement, except to the extent, but only to the extent, that (A) such untrue statements, alleged untrue statements, omissions or alleged omissions are based solely upon information regarding such Holder furnished in writing to the Company by such Holder or on behalf of such Holder expressly for use therein, or to the extent that such information relates to such Holder or such Holder's proposed method of distribution of Registrable Securities and was reviewed and approved by such Holder or Holders Counsel expressly for use in the Registration Statement, such Prospectus or such form of Prospectus or in any amendment or supplement thereto, (B) Holder's failure to deliver or cause to be delivered the Prospectus or any amendment or supplement thereto made available by the Company in compliance with Section 8(g), or (C) in the case of an occurrence of an event of the type specified in Sections 5(c)(ii)-(iv), related to the use by a Holder of an outdated or defective Prospectus after the Company has notified such Holder in writing or electronic mail that the Prospectus is outdated or defective and prior to the receipt by such Holder of the Advice contemplated and defined in Section 8(h) below, but only if and to the extent that following the receipt of the Advice the misstatement or omission giving rise to such Loss would have been corrected. Such indemnity shall remain in full force and effect regardless of any investigation made by or on behalf of an Indemnified Party (as defined in Section 7(c)) and shall survive the transfer of the Registrable Securities by the Holders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;<u>Indemnification by Holders</u>. Each Holder shall, notwithstanding any termination of this Agreement, severally and not jointly, indemnify and hold harmless the Company, its directors, officers, agents and employees, each Person who controls the Company (within the meaning of Section 15 of the Securities Act and Section 20 of the Exchange Act), and the directors, officers, agents or employees of such controlling Persons, to the fullest extent permitted by applicable law, from and against all Losses, as incurred, arising out of or are based upon (i) any untrue or alleged untrue statement of a material fact contained in any Registration Statement, any Prospectus, or any form of prospectus, or in any amendment or supplement thereto or in any preliminary prospectus, or arising out of or relating to any omission or alleged omission of a material fact required to be stated therein or necessary to make the statements therein (in the case of any Prospectus, or any form of prospectus or supplement thereto, in light of the circumstances under which they were made) not misleading (A) to the extent, but only to the extent, that such untrue statements or omissions are based solely upon information regarding such Holder furnished in writing to the Company by or on behalf of such Holder expressly for use therein, or (B) to the extent, but only to the extent, that such information relates to such Holder or such Holder's proposed method of distribution of Registrable Securities and was reviewed and approved by such Holder or Holders Counsel expressly for use in a Registration Statement, such Prospectus or such form of Prospectus or in any amendment or supplement thereto or (C) in the case of an occurrence of an event of the type specified in Sections 5(c)(ii)- (iv), to the extent, but only to the extent, related to the use by such

Exhibit A \| Page 14

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Holder of an outdated or defective Prospectus after the Company has notified such Holder in writing that the Prospectus is outdated or defective and prior to the receipt by such Holder of the Advice contemplated in Section 8(h), but only if and to the extent that following the receipt of the Advice the misstatement or omission giving rise to such Loss would have been corrected, or (ii) Holder's failure to deliver or cause to be delivered the Prospectus or any amendment or supplement thereto made available by the Company in compliance with Section 8(g). In no event shall the liability of any selling Holder hereunder be greater in amount than the dollar amount of the net proceeds received by such Holder upon the sale of the Registrable Securities giving rise to such indemnification obligation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;<u>Conduct of Indemnification Proceedings</u>. If any Proceeding shall be brought or asserted against any Person entitled to indemnity hereunder (an "<u>Indemnified Party</u>"), such Indemnified Party shall promptly notify the Person from whom indemnity is sought (the "<u>Indemnifying Party</u>") in writing, and the Indemnifying Party shall have the right to assume the defense thereof, including the employment of one (1) counsel reasonably satisfactory to the Indemnified Party and the payment of all reasonable and documented fees and expenses incurred in connection with defense thereof; provided, that the failure of any Indemnified Party to give such written notice within a reasonable time of commencement of any such Proceeding shall not relieve the Indemnifying Party of its obligations or liabilities pursuant to this Agreement, except (and only) to the extent that such failure shall have materially and adversely prejudiced the Indemnifying Party in its ability to defend such Proceeding.

An Indemnified Party shall have the right to employ separate counsel in any such Proceeding and to participate in the defense thereof, but the fees and expenses of such counsel shall be at the expense of such Indemnified Party or Indemnified Parties unless: (1) the Indemnifying Party has agreed in writing to pay such fees and expenses; (2) the Indemnifying Party shall have failed promptly to assume the defense of such Proceeding and to employ counsel reasonably satisfactory to such Indemnified Party in any such Proceeding; or (3) the named parties to any such Proceeding (including any impleaded parties) include both such Indemnified Party and the Indemnifying Party, and such Indemnified Party shall have been advised by counsel in writing that a conflict of interest exists if the same counsel were to represent such Indemnified Party and the Indemnifying Party; provided, that the Indemnifying Party shall not be liable for the fees and expenses of more than one separate firm of attorneys plus local counsel at any time for all Indemnified Parties. The Indemnifying Party shall not be liable for any settlement of any such Proceeding effected without its written consent, which consent shall not be unreasonably withheld, delayed or unreasonably conditioned. No Indemnifying Party shall, without the prior written consent of the Indemnified Party, effect any settlement of any pending Proceeding in respect of which any Indemnified Party is a party, unless such settlement includes an unconditional release of such Indemnified Party from all liability on claims that are the subject matter of such Proceeding.

Subject to the terms of this Agreement, all documented fees and expenses of the Indemnified Party (including reasonable fees and expenses to the extent incurred in connection with investigating or preparing to defend such Proceeding in a manner not inconsistent with this Section 7(c)) shall be paid to the Indemnified Party, as incurred, within twenty (20) Trading Days of written notice thereof to the Indemnifying Party; provided, that the Indemnified Party shall promptly reimburse the Indemnifying Party for that portion of such fees and expenses applicable to such actions for which such Indemnified Party is finally judicially determined to not be entitled to indemnification hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;<u>Contribution</u>. If a claim for indemnification under Section 7(a) or 7(b) is unavailable to an Indemnified Party (other than in accordance with its terms) or insufficient to hold an Indemnified Party harmless for any Losses, then each Indemnifying Party, in lieu of indemnifying such Indemnified Party, shall contribute to the amount paid or payable by such Indemnified Party as a result of such Losses, in such proportion as is appropriate to reflect the relative fault of the Indemnifying Party, on

Exhibit A \| Page 15

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the one hand, and Indemnified Party, on the other hand, in connection with the actions, statements or omissions that resulted in such Losses as well as any other relevant equitable considerations. The relative fault of such Indemnifying Party, on the one hand, and Indemnified Party, on the other hand, shall be determined by reference to, among other things, whether any action in question, including any untrue or alleged untrue statement of a material fact or omission or alleged omission of a material fact, has been taken or made by, or relates to information supplied by, such Indemnifying Party or Indemnified Party, and the parties' relative intent, knowledge, access to information and opportunity to correct or prevent such action, statement or omission. The amount paid or payable by a party as a result of any Losses shall be deemed to include, subject to the limitations set forth in this Agreement, any reasonable attorneys' or other reasonable fees or expenses incurred by such party in connection with any Proceeding to the extent such party would have been indemnified for such fees or expenses if the indemnification provided for in this Section 7(d) was available to such party in accordance with its terms. The parties hereto agree that it would not be just and equitable if contribution pursuant to this Section 7(d) were determined by pro rata allocation or by any other method of allocation that does not take into account the equitable considerations referred to in the immediately preceding paragraph. Notwithstanding the provisions of this Section 7(d), no Holder shall be required to contribute, in the aggregate, any amount in excess of the amount by which the net proceeds actually received by such Holder from the sale of the Registrable Securities subject to the Proceeding exceeds the amount of any damages that such Holder has otherwise been required to pay by reason of such untrue or alleged untrue statement or omission or alleged omission. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation.

The indemnity and contribution agreements contained in this Section 7 are in addition to any liability that the Indemnifying Parties may have to the Indemnified Parties and are not in diminution or limitation of the indemnification provisions under the Purchase Agreement or applicable Additional Purchase Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.&nbsp;&nbsp;&nbsp;&nbsp;<u>Miscellaneous</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;<u>Remedies</u>. In the event of a breach by the Company or by a Holder of any of their obligations under this Agreement, each Holder or the Company, as the case may be, in addition to being entitled to exercise all rights granted by law and under this Agreement, including recovery of damages, will be entitled to specific performance of its rights under this Agreement. The Company and each Holder agree that monetary damages would not provide adequate compensation for any losses incurred by reason of a breach by it of any of the provisions of this Agreement and hereby further agrees that, in the event of any action for specific performance in respect of such breach, it shall waive the defense that a remedy at law would be adequate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;<u>Prohibition on Other Registrations</u>. The Company agrees not to effect or initiate a registration statement for any public sale or distribution of any securities similar to those being registered pursuant to this Agreement, or any securities convertible into or exchangeable or exercisable for such securities (other than a registration solely to implement an employee benefit plan pursuant to a registration statement on Form S-8 (or successor form), a registration statement on Form S-4 (or successor form) or a transaction to which Rule 145 or any other similar rule of the Commission is applicable), during the fourteen (14) calendar days prior to, and during the sixty (60) calendar-day period beginning on, the effective date of any Registration Statement in which the Holders of Registrable Securities are participating (except as part of any such registration, if permitted).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;<u>Rule 144 Requirements</u>. For so long as the Company is subject to the reporting requirements of the Exchange Act, the Company will use its reasonable best efforts to timely file with the

Exhibit A \| Page 16

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Commission such reports and information required to be filed by it under the Securities Act and the Exchange Act and the rules and regulations adopted by the Commission thereunder and as the Commission may require. The Company shall furnish to any Holder of Registrable Securities forthwith upon request a written statement as to its compliance with the reporting requirements of Rule 144 (or any successor exemptive rule), the Securities Act and the Exchange Act (at any time that it is subject to such reporting requirements); a copy of its most recent annual or quarterly report; and such other reports and documents as such Person may reasonably request in availing itself of any rule or regulation of the Commission allowing it to sell any such securities without registration.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;<u>Obligations of Holders and Others in a Registration</u>. Each Holder agrees to timely furnish in writing such information regarding such Person, the securities sought to be registered and the intended method of disposition of the Registrable Securities held by it, as shall be reasonably be required to effect the registration of such Registrable Securities (the "<u>Requested Information</u>") and shall take such other action as the Company may reasonably request in connection with the registration, qualification or compliance or as otherwise provided herein. At least ten (10) Business Days prior to the first anticipated filing date of a Registration Statement, the Company shall notify each holder of the information the Company requires from such Holder if such Holder elects to have any of such Holder's Registrable Securities included in the Registration Statement. If at least five (5) Business Days prior to the filing date, the Company has not received the Requested Information from a Holder (a "<u>Non-</u> <u>Responsive Holder</u>"), then the Company may exclude from any Registration Statement the Registrable Securities of such Non-Responsive Holder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;<u>Rule 144A</u>. The Company agrees that, upon the request of any Holder of Registrable Securities or any prospective purchaser of Registrable Securities designated by a Holder, the Company shall promptly provide (but in any case within fifteen (15) calendar days of a request) to such Holder or potential purchaser, the following information:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;a brief statement of the nature of the business of the Company and any subsidiaries and the products and services they offer;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp;the most recent consolidated balance sheets and profit and losses and retained earnings statements, and similar financial statements of the Company for the two (2) most recent fiscal years (such financial information shall be audited, to the extent reasonably available); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;&nbsp;&nbsp;&nbsp;such other information about the Company, any subsidiaries, and their business, financial condition and results of operations as the requesting Holder or purchaser of such Registrable Securities shall reasonably request in order to comply with Rule 144A, as amended, and in connection therewith the anti-fraud provisions of the federal and state securities laws.

The Company hereby represents and warrants to any such requesting Holder and any prospective purchaser of Registrable Securities from such Holder that the information provided by the Company pursuant to this Section 8(e) will, as of their dates, not contain any untrue statement of a material fact or omit to state a material fact necessary in order to make the statements made, in light of the circumstances under which they were made, not misleading.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;&nbsp;&nbsp;<u>Limitations on Subsequent Registration Rights</u>. The Company will not enter into any agreements with any holder or prospective holder of any securities of the Company which would grant such holder or prospective holder registration rights with respect to the securities of the Company which would have priority over the Registrable Securities with respect to the inclusion of such securities in any registration. If the Company enters into an agreement that contains terms more favorable, in form or substance, to any shareholders than the terms provided to the Holders under this Agreement, then the

Exhibit A \| Page 17

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Company will modify or revise the terms of this Agreement in order to reflect any such more favorable terms for the benefit of the Holders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;&nbsp;&nbsp;&nbsp;<u>Compliance</u>. Each Holder covenants and agrees that it will comply with the prospectus delivery requirements of the Securities Act as applicable to it (unless an exemption therefrom is available) in connection with sales of Registrable Securities pursuant to the Registration Statement and shall sell the Registrable Securities only in accordance with a method of distribution described in the Registration Statement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)&nbsp;&nbsp;&nbsp;&nbsp;<u>Discontinued Disposition</u>. By its acquisition of Registrable Securities, each Holder agrees that, upon receipt of a notice from the Company of the occurrence of any event of the kind described in Sections 5(c)(ii)-(iv), such Holder will forthwith discontinue disposition of such Registrable Securities under a Registration Statement until it is advised in writing (the "<u>Advice</u>") by the Company that the use of the applicable Prospectus (as it may have been supplemented or amended) may be resumed. The Company may provide appropriate stop orders to enforce the provisions of this paragraph.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;<u>No Inconsistent Agreements</u>. Neither the Company nor any of its Subsidiaries has entered, as of the date hereof, nor shall the Company or any of its Subsidiaries, on or after the date hereof, enter into any agreement with respect to its securities, that would have the effect of impairing the rights granted to the Holders in this Agreement or otherwise conflicts with the provisions hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j)&nbsp;&nbsp;&nbsp;&nbsp;<u>Amendments and Waivers</u>. The provisions of this Agreement, including the provisions of this sentence, may not be amended, modified or supplemented, or waived unless the same shall be in writing and signed by the Company and Holders of a majority of the then outstanding Registrable Securities; provided that any such amendment, modification, supplement or waiver that materially, adversely and disproportionately effects the rights or obligations of any Holder vis-a-vis the other Holders shall require the prior written consent of such Holder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k)&nbsp;&nbsp;&nbsp;&nbsp;<u>Notices</u>. Any and all notices or other communications or deliveries required or permitted to be provided hereunder shall be in writing and shall be deemed given and effective on the earliest of (a) the date of transmission, if such notice or communication is delivered via facsimile or e-mail (provided the sender receives a machine-generated confirmation of successful facsimile transmission or e-mail notification or confirmation of receipt of an e-mail transmission) at the facsimile number or e-mail address specified in this Section prior to 5:00 p.m., New York City time, on a Trading Day, (b) the next Trading Day after the date of transmission, if such notice or communication is delivered via facsimile at the facsimile number specified in this Section on a day that is not a Trading Day or later than 5:00 p.m., New York City time, on any Trading Day, (c) the Trading Day following the date of mailing, if sent by U.S. nationally recognized overnight courier service with next day delivery specified, or (d) upon actual receipt by the party to whom such notice is required to be given. The address for such notices and communications shall be as follows:

If to the Company: Lincoln Bancorp3254 Kimball AvenueWaterloo, IA 50702Attention: Emily GirschChief Financial OfficerEmail: EmilyG@mylsb.comFacsimile: (319) 788-6697 <br>

Exhibit A \| Page 18

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With a copy to: Barack Ferrazzano Kirschbaum & Nagelberg LLP200 West Madison Street, Suite 3900Chicago, IL 60606Attention: Bill FayEmail: bill.fay@bfkn.com Facsimile: (312) 984-3150

If to a Registration Rights Purchaser:

To the address set forth under such Registration Rights Purchaser's name on the signature page hereof or such other address as may be designated in writing hereafter, in the same manner, by such Person.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l)&nbsp;&nbsp;&nbsp;&nbsp;<u>Successors and Assigns</u>. This Agreement shall inure to the benefit of and be binding upon the successors and permitted assigns of each of the parties. Nothing in this Agreement, express or implied, is intended to confer upon any party other than the parties hereto or their respective successors and assigns any rights, remedies, obligations, or liabilities under or by reason of this Agreement, except as expressly provided in this Agreement. The Company may not assign its rights (except by merger or in connection with another entity acquiring all or substantially all of the Company's assets) or obligations hereunder without the prior written consent of all of the Holders of the then outstanding Registrable Securities. No Registration Rights Purchaser may assign its rights or obligations hereunder without the prior written consent of the Company; *provided* that the rights to have the Company register Registrable Securities pursuant to this Agreement shall be automatically assigned by any Registration Rights Purchaser to any transferee of the Shares if and only if: (i) the Registration Rights Purchaser acquires Registrable Shares with an original value as of the Closing Date of at least $5,000,000 and agrees in writing with the transferee or assignee to the assignment of such rights; (ii) the Company is, within one (1) month after such transfer or assignment, furnished with written notice of (A) the name and address of such transferee or assignee and (B) the securities with respect to which such registration rights are being transferred or assigned; and (iii) at or before the time the Company received the written notice contemplated by clause (ii) of this sentence, the transferee or assignee agrees in writing with the Company to be bound by all of the provisions contained herein with respect to a Holder or Registration Rights Purchaser. In the event of any delay in filing or effectiveness of the Registration Statement as a result of such assignment by a Registration Rights Purchaser or its transferee, the Company shall not be liable for any damages arising from such delay.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m)&nbsp;&nbsp;&nbsp;&nbsp;<u>Execution and Counterparts</u>. This Agreement may be executed in two (2) or more counterparts, each of which when so executed shall be deemed to be an original and, all of which taken together shall constitute one and the same Agreement and shall become effective when counterparts have been signed by each party and delivered to the other party, it being understood that both parties need not sign the same counterpart. In the event that any signature is delivered by facsimile transmission or by e-mail delivery of a ".pdf" format data file, such signature shall create a valid and binding obligation of the party executing (or on whose behalf such signature is executed) with the same force and effect as if such facsimile or ".pdf" signature were the original thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n)&nbsp;&nbsp;&nbsp;&nbsp;<u>Governing Law and Jurisdiction</u>. This Agreement shall be governed by and construed in accordance with the internal laws of the State of Delaware applicable to contracts made and to be performed entirely within such State. All questions concerning the construction, validity, enforcement and interpretation of this Agreement shall be determined in accordance with the provisions of the Purchase Agreement or applicable Additional Purchase Agreement.

Exhibit A \| Page 19

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o)&nbsp;&nbsp;&nbsp;&nbsp;<u>Cumulative Remedies</u>. Except as provided in Section 2(c) with respect to Liquidated Damages, the remedies provided herein are cumulative and not exclusive of any other remedies provided by law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p)&nbsp;&nbsp;&nbsp;&nbsp;<u>Severability</u>. If any term, provision, covenant or restriction of this Agreement is held by a court of competent jurisdiction to be invalid, illegal, void or unenforceable, the remainder of the terms, provisions, covenants and restrictions set forth herein shall remain in full force and effect and shall in no way be affected, impaired or invalidated, and the parties hereto shall use their good faith reasonable efforts to find and employ an alternative means to achieve the same or substantially the same result as that contemplated by such term, provision, covenant or restriction. It is hereby stipulated and declared to be the intention of the parties that they would have executed the remaining terms, provisions, covenants and restrictions without including any of such that may be hereafter declared invalid, illegal, void or unenforceable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q)&nbsp;&nbsp;&nbsp;&nbsp;<u>Headings</u>. The headings in this Agreement are for convenience only and shall not limit or otherwise affect the meaning hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r)&nbsp;&nbsp;&nbsp;&nbsp;<u>Independent Nature of Registration Rights Purchasers' Obligations and Rights</u>. The obligations of each Registration Rights Purchaser under this Agreement are several and not joint with the obligations of any other Registration Rights Purchaser hereunder, and no Registration Rights Purchaser shall be responsible in any way for the performance of the obligations of any other Registration Rights Purchaser hereunder. The decision of each Registration Rights Purchaser to purchase the Shares pursuant to the Purchase Agreement or applicable Additional Purchase Agreement has been made independently of any other Registration Rights Purchaser. Nothing contained herein or in any other agreement or document delivered at any closing, and no action taken by any Registration Rights Purchaser pursuant hereto or thereto, shall be deemed to constitute the Registration Rights Purchasers as a partnership, an association, a joint venture or any other kind of entity, or create a presumption that the Registration Rights Purchasers are in any way acting in concert with respect to such obligations or the transactions contemplated by this Agreement. Each Registration Rights Purchaser acknowledges that no other Registration Rights Purchaser has acted as agent for such Registration Rights Purchaser in connection with making its investment hereunder and that no Registration Rights Purchaser will be acting as agent of such Registration Rights Purchaser in connection with monitoring its investment in the Shares or enforcing its rights under the Purchase Agreement or applicable Additional Purchase Agreement. Each Registration Rights Purchaser shall be entitled to protect and enforce its rights, including, without limitation, the rights arising out of this Agreement, and it shall not be necessary for any other Registration Rights Purchaser to be joined as an additional party in any Proceeding for such purpose. The Company acknowledges that each of the Registration Rights Purchasers has been provided with the same Registration Rights Agreement for the purpose of closing a transaction with multiple Registration Rights Purchasers and not because it was required or requested to do so by any Registration Rights Purchaser. It is expressly understood and agreed that each provision contained in this Agreement is between the Company and a Registration Rights Purchaser, solely, and not between the Company and the Registration Rights Purchasers collectively and not between and among the Registration Rights Purchasers.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(s)&nbsp;&nbsp;&nbsp;&nbsp;<u>Entire Agreement</u>. This Agreement and the Purchase Agreement or applicable Additional Purchase Agreement constitute the entire agreement among the parties hereto with respect to the subject matter hereof. There are no restrictions, promises, warranties or undertakings, other than as set forth or referred to herein and in the Purchase Agreement or applicable Additional Purchase Agreement. This Agreement supersedes all prior agreements and understandings among the parties hereto with respect to the subject matter hereof.

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

Exhibit A \| Page 20

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IN WITNESS WHEREOF, the parties have executed this Registration Rights Agreement as of the date first written above.

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| | | |
|:---|:---|:---|
| LINCOLN BANCORP | LINCOLN BANCORP | LINCOLN BANCORP |
| By: |  |  |
| Name: | Name: | Erik Skovgard |
| Title: | Chief Executive Officer | Chief Executive Officer |

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[Signature Page to Registration Rights Agreement]

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IN WITNESS WHEREOF, the parties have executed this Registration Rights Agreement as of the date first written above.

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| |
|:---|
| NAME OF INVESTING ENTITY |
| AUTHORIZED SIGNATORY |
| By: |
| Name: |
| Title: |

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ADDRESS FOR NOTICE<br>c/o: ________________________________________<br>Street:&nbsp;&nbsp;&nbsp;&nbsp; ____________________________________<br>City/State/Zip:________________________________<br>Attention:____________________________________<br>Tel: ________________________________________<br>Fax: ________________________________________<br>E-mail:______________________________________<br>

[Signature Page to Registration Rights Agreement]

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**EXHIBIT B**

**ACCREDITED INVESTOR QUESTIONNAIRE**

**(ALL INFORMATION WILL BE TREATED CONFIDENTIALLY)**

To: Lincoln Bancorp

This Accredited Investor Questionnaire ("**Questionnaire**") by each potential investor in connection with the offer and sale by Lincoln Bancorp, an Iowa corporation (the "**Company**") of shares of common stock, par value $0.01 per share (the "**Common Shares**" or the "**Shares**"). The Shares are being offered and sold by the Company without registration under the Securities Act of 1933, as amended (the "**Act**"), and the securities laws of certain states, in reliance on the exemptions contained in Section 4(a)(2) of the Act and on Regulation D promulgated thereunder and in reliance on similar exemptions under applicable state laws. The Company must determine that a potential investor meets certain suitability requirements before offering or selling Shares to such investor. The purpose of this Questionnaire is to assure the Company that each investor will meet the applicable suitability requirements. The information supplied by you will be used in determining whether you meet such criteria, and reliance upon the private offering exemptions from registration is based in part on the information herein supplied.

This Questionnaire does not constitute an offer to sell or a solicitation of an offer to buy any security. Your answers will be kept strictly confidential. However, by signing this Questionnaire, you will be authorizing the Company to provide a completed copy of this Questionnaire to such parties as the Company deems appropriate in order to ensure that the offer and sale of the Shares will not result in a violation of the Act or the securities laws of any state and that you otherwise satisfy the suitability standards applicable to purchasers of the Shares. Please print or type all responses and attach additional sheets of paper if necessary to complete answers to any item.

PART A. &nbsp;&nbsp;&nbsp;&nbsp;**BACKGROUND INFORMATION**

Name of Beneficial Owner of the Shares:____________________________________________________

Business Address:______________________________________________________________________

(Number and Street)

_____________________________________________________________________________________

(City)&nbsp;&nbsp;&nbsp;&nbsp;(State)&nbsp;&nbsp;&nbsp;&nbsp;(Zip Code)

Telephone Number: ()_________________________________________________________________

_________________________________________________________________

***If a corporation, partnership, limited liability company, trust or other entity***:

Type of entity:_________________________________________________________________________

Were you formed for the purpose of investing in the securities being offered?

Yes ⬜ No ⬜

***If an individual***:

Residential Address:____________________________________________________________________

(Number and Street)

Exhibit B \| Page 1

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_____________________________________________________________________________________

(City)&nbsp;&nbsp;&nbsp;&nbsp;(State)&nbsp;&nbsp;&nbsp;&nbsp;(Zip Code)

Telephone Number: ()_________________________________________________________________

_________________________________________________________________

Age: ________________ Citizenship: ________________ Where registered to vote:_________________

Set forth in the space provided below the state(s), if any, in the United States in which you maintained your residence during the past two years and the dates during which you resided in each state:__________

_____________________________________________________________________________________

_____________________________________________________________________________________

Are you a director or executive officer of the Company?

Yes ⬜ No ⬜

Social Security or Taxpayer Identification No.________________________________________________

________________________________________________

PART B.&nbsp;&nbsp;&nbsp;&nbsp;**ACCREDITED INVESTOR QUESTIONNAIRE**

In order for the Company to offer and sell the Shares in conformance with state and federal securities laws, the following information must be obtained regarding your investor status. Please *initial each category* applicable to you as a Purchaser of Shares.

⬜ 1.&nbsp;&nbsp;&nbsp;&nbsp;A bank as defined in Section 3(a)(2) of the Securities Act, or any savings and loan association or other institution as defined in Section 3(a)(5)(A) of the Securities Act whether acting in its individual or fiduciary capacity;

⬜ 2.&nbsp;&nbsp;&nbsp;&nbsp;A broker or dealer registered pursuant to Section 15 of the Securities Exchange Act of 1934;

⬜ 3.&nbsp;&nbsp;&nbsp;&nbsp;An insurance company as defined in Section 2(a)(13) of the Securities Act;

⬜ 4.&nbsp;&nbsp;&nbsp;&nbsp;An investment company registered under the Investment Company Act of 1940 or a business development company as defined in Section 2(a)(48) of that Act;

⬜ 5.&nbsp;&nbsp;&nbsp;&nbsp;A Small Business Investment Company licensed by the U.S. Small Business Administration under Section 301(c) or (d) of the Small Business Investment Act of 1958;

⬜ 6.&nbsp;&nbsp;&nbsp;&nbsp;A plan established and maintained by a state, its political subdivisions, or any agency or instrumentality of a state or its political subdivisions, for the benefit of its employees, if such plan has total assets in excess of $5,000,000;

⬜ 7.&nbsp;&nbsp;&nbsp;&nbsp;An employee benefit plan within the meaning of the Employee Retirement Income Security Act of 1974, if the investment decision is made by a plan fiduciary, as defined in Section 3(21) of such act, which is either a bank, savings and loan association, insurance company, or registered investment adviser, or if the employee benefit plan has total assets in excess of $5,000,000 or, if a self-directed plan, with investment decisions made solely by persons that are accredited investors;

⬜ 8.&nbsp;&nbsp;&nbsp;&nbsp;A private business development company as defined in Section 202(a)(22) of the Investment Advisers Act of 1940;

Exhibit B \| Page 2

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⬜ 9.&nbsp;&nbsp;&nbsp;&nbsp;An organization described in Section 501(c)(3) of the Internal Revenue Code, corporation, Massachusetts or similar business trust, or partnership, not formed for the specific purpose of acquiring the Shares, with total assets in excess of $5,000,000;

⬜ 10.&nbsp;&nbsp;&nbsp;&nbsp;A trust, with total assets in excess of $5,000,000, not formed for the specific purpose of acquiring the Shares, whose purchase is directed by a sophisticated person who has such knowledge and experience in financial and business matters that such person is capable of evaluating the merits and risks of investing in the Company;

⬜ 11.&nbsp;&nbsp;&nbsp;&nbsp;A natural person whose individual net worth, or joint net worth with that person's spouse, at the time of his or her purchase exceeds $1,000,000 (*see* Note **11** below);

⬜ 12.&nbsp;&nbsp;&nbsp;&nbsp;A natural person who had an individual income in excess of $200,000 in each of the two most recent years, or joint income with that person's spouse in excess of $300,000 in each of those years, and has a reasonable expectation of reaching the same income level in the current year;

⬜ 13.&nbsp;&nbsp;&nbsp;&nbsp;An executive officer or director of the Company; and

⬜ 14.&nbsp;&nbsp;&nbsp;&nbsp;An entity in which all of the equity owners qualify under any of the above subparagraphs. If the undersigned belongs to this investor category only, list the equity owners of the undersigned, and the investor category which each such equity owner satisfies.

**Note 11.&nbsp;&nbsp;&nbsp;&nbsp;**For purposes of calculating net worth under paragraph (11):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A)&nbsp;&nbsp;&nbsp;&nbsp;The person's primary residence shall not be included as an asset;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B)&nbsp;&nbsp;&nbsp;&nbsp;Indebtedness that is secured by the person's primary residence,&nbsp;&nbsp;&nbsp;&nbsp;up&nbsp;&nbsp;&nbsp;&nbsp;to&nbsp;&nbsp;&nbsp;&nbsp;the&nbsp;&nbsp;&nbsp;&nbsp;estimated fair

market value of the primary residence at the time of the sale of&nbsp;&nbsp;&nbsp;&nbsp;securities,&nbsp;&nbsp;&nbsp;&nbsp;shall&nbsp;&nbsp;&nbsp;&nbsp;not be

included as a liability (except that if the amount of such indebtedness outstanding at the time of sale of securities exceeds the amount outstanding sixty (60) days before such time, other than as a result of the acquisition of the primary residence, the amount of such excess shall be included as a liability); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C)&nbsp;&nbsp;&nbsp;&nbsp;Indebtedness that is secured by the person's primary residence in excess of the estimated fair market value of the primary residence at the time of the sale of securities shall be included as a liability.

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

Exhibit B \| Page 3

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| | |
|:---|:---|
| **A.&nbsp;&nbsp;&nbsp;&nbsp;FOR EXECUTION BY AN INDIVIDUAL:** | **A.&nbsp;&nbsp;&nbsp;&nbsp;FOR EXECUTION BY AN INDIVIDUAL:** |
| | By |
| Date | |
| Date | Print Name: |

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| | |
|:---|:---|
| **B.&nbsp;&nbsp;&nbsp;&nbsp;FOR EXECUTION BY AN ENTITY:** | **B.&nbsp;&nbsp;&nbsp;&nbsp;FOR EXECUTION BY AN ENTITY:** |
| | Entity Name: |
| | By |
| Date | |
| | Print Name: |
| | Title: |

---

---

| | |
|:---|:---|
| **C.&nbsp;&nbsp;&nbsp;&nbsp;ADDITIONAL SIGNATURES (if required by partnership, corporation or trust document):** | **C.&nbsp;&nbsp;&nbsp;&nbsp;ADDITIONAL SIGNATURES (if required by partnership, corporation or trust document):** |
| | Entity Name: |
| | By |
| Date | |
| | Print Name: |
| | Title: |
| | By |
| Date | |
| | Print Name: |
| | Title: |

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[Signature Page to Accredited Investor Questionnaire]

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**EXHIBIT C**

**FORM OF OPINION OF COMPANY COUNSEL**

&nbsp;&nbsp;&nbsp;&nbsp;1.&nbsp;&nbsp;&nbsp;&nbsp;Based solely on our review of the Good Standing Certificate, the Company validly exists as a corporation in good standing under the laws of the State of Iowa.

&nbsp;&nbsp;&nbsp;&nbsp;2.&nbsp;&nbsp;&nbsp;&nbsp;The Company has the corporate power and authority to execute and deliver and to perform its obligations under the Transaction Documents, including, without limitation, to issue the Shares.

&nbsp;&nbsp;&nbsp;&nbsp;3.&nbsp;&nbsp;&nbsp;&nbsp;The Company is a registered bank holding company under the Bank Holding Company Act of 1956, as amended.

&nbsp;&nbsp;&nbsp;&nbsp;4.&nbsp;&nbsp;&nbsp;&nbsp;The deposit accounts of the Bank are insured by the Federal Deposit Insurance Corporation under the provisions of the Federal Deposit Insurance Act.

&nbsp;&nbsp;&nbsp;&nbsp;5.&nbsp;&nbsp;&nbsp;&nbsp;Each of the Transaction Documents has been duly authorized, executed and delivered by the Company and, assuming due authorization, execution and delivery by the Purchaser, each of the Transaction Documents constitutes a valid and binding agreement of the Company, enforceable against the Company in accordance with its terms, subject to the Enforceability Limitations; provided that we express no opinion regarding the enforceability of Section 4.23 (Preemptive Rights) of the Purchase Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;6.&nbsp;&nbsp;&nbsp;&nbsp;The execution and delivery by the Company of each of the Transaction Documents and the performance by the Company of its obligations under such agreements, including its issuance and sale of the Shares, do not and will not: (a) require any consent, approval, license or exemption by, order or authorization of, or filing, recording, or registration by the Company with any federal or state governmental authority, except (1) as may be required by federal securities laws with respect to the Company's obligations under the Registration Rights Agreement and (2) the filing of Form D pursuant to the United States Securities and Exchange Commission Regulation D, (b) violate any federal or state statute, rule, or regulation, or any rule or regulation of any Governmental Entity, or any court order, judgment or decree listed on <u>Exhibit A</u> hereto, which exhibit lists all court orders, judgments and decrees that the Company has certified to us are applicable to it, or (c) result in any violation of the Restated Articles of Incorporation or Bylaws of the Company, provided that we express no opinion in this clause (c) regarding Section 4.23 (Preemptive Rights) of the Purchase Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;7.&nbsp;&nbsp;&nbsp;&nbsp;Assuming the accuracy of the representations and warranties, and compliance with the covenants and agreements, of the Purchaser and the Company contained in the Stock Purchase Agreement, it is not necessary, in connection with the offer, sale and delivery of the Shares to the Purchaser, to register the Shares under the Securities Act.

&nbsp;&nbsp;&nbsp;&nbsp;8.&nbsp;&nbsp;&nbsp;&nbsp;The Shares being delivered to the Purchaser pursuant to the Stock Purchase Agreement have been duly and validly authorized and, when issued, delivered and paid for as contemplated in the Stock Purchase Agreement, will be duly and validly issued, fully paid and non-assessable, and free of any preemptive right or similar rights contained in the Company's Restated Articles of Incorporation or Bylaws.

Exhibit C \| Page 1

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**EXHIBIT D**

**FORM OF SECRETARY'S CERTIFICATE**

The undersigned hereby certifies that he is the duly elected, qualified and acting Secretary of Lincoln Bancorp, an Iowa corporation (the "**Company**"), and that as such he is authorized to execute and deliver this certificate in the name and on behalf of the Company in connection with the Stock Purchase Agreement, dated as of November 26, 2018, by and among the Company and the investors party thereto (the "**Purchase Agreement**"), and further certifies in his official capacity, in the name and on behalf of the Company, the items set forth below. Capitalized terms used but not otherwise defined herein shall have the meaning set forth in the Purchase Agreement.

1.&nbsp;&nbsp;&nbsp;&nbsp;Attached hereto as <u>Exhibit A</u> is a true, correct and complete copy of the resolutions duly adopted by the Board of Directors of the Company by written consent on October 18, 2018. Such resolutions have not in any way been amended, modified, revoked or rescinded, have been in full force and effect since their adoption to and including the date hereof and are now in full force and effect.

2.&nbsp;&nbsp;&nbsp;&nbsp;Attached hereto as <u>Exhibit B</u> is a true, correct and complete copy of the Restated Articles of Incorporation of the Company, together with any and all amendments thereto as in effect on the date hereof.

3.&nbsp;&nbsp;&nbsp;&nbsp;Attached hereto as <u>Exhibit C</u> is a true, correct and complete copy of the bylaws of the Company and any and all amendments thereto as in effect on the date hereof.

4.&nbsp;&nbsp;&nbsp;&nbsp;Each person listed below has been duly elected or appointed to the position(s) indicated opposite his name and is duly authorized to sign the Purchase Agreement and each of the Transaction Documents on behalf of the Company, and the signature appearing opposite such person's name below is such person's genuine signature.

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| | | |
|:---|:---|:---|
| **Name** | **Position** | **Signature** |

---

**IN WITNESS WHEREOF**, the undersigned has hereunto set his hand as of this [•] day of [•], 2018.

___________________________________________

[ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ]

Secretary

I, Erik Skovgard, Chief Executive Officer, hereby certify that [___________] is the duly elected,

qualified, and acting Secretary of the Company and that the signature set forth above is his true signature.

___________________________________________

Erik Skovgard

Chief Executive Officer

Exhibit D \| Page 2

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**EXHIBIT E**

**FORM OF OFFICER'S CERTIFICATE**

The undersigned, the Chief Executive Officer of Lincoln Bancorp, an Iowa corporation (the "**Company**"), pursuant to Section 2.2(a)(vi) of the Stock Purchase Agreement, dated as of November 26, 2018, by and among the Company and the investors signatory thereto (the "**Purchase Agreement**"), hereby represents, warrants and certifies as follows (capitalized terms used but not otherwise defined herein shall have the meaning set forth in the Purchase Agreement):

1.&nbsp;&nbsp;&nbsp;&nbsp;The representations and warranties of the Company contained in the Purchase Agreement are true and correct in all material respects (except to the extent such representations and warranties are qualified by materiality, in which case they are true and correct in all respects) as of the date when made and as of the Closing Date, as though made on and as of such date, except for such representations and warranties that speak as of a specific date.

2.&nbsp;&nbsp;&nbsp;&nbsp;The Company has performed, satisfied and complied in all material respects with those covenants and agreements required by the Transaction Documents to be performed, satisfied or complied with by it at or prior to the Closing.

3.&nbsp;&nbsp;&nbsp;&nbsp;Since the date of the Purchase Agreement, there has not occurred any circumstance, event, change, development or effect that, individually or in the aggregate, has had or could reasonably be expected to have a Material Adverse Effect on the Company or the Bank.

4.&nbsp;&nbsp;&nbsp;&nbsp;Each of the conditions specified in clauses (c), (d), (h), (k), (l) and (m) of Section 5.1 of the Purchase Agreement has been satisfied.

**IN WITNESS WHEREOF**, the undersigned has executed this certificate this [•] day of [•], 2018.

 <br> Erik Skovgard

Exhibit E \| Page 1

## Exhibit 10.5

**Exhibit 10.5**

**LINCOLN BANCORP**

**LINCOLN SAVINGS BANK**

**<u>EMPLOYMENT AGREEMENT</u>**

This **Employment Agreement** ("**Agreement**") is made and entered into as of December 5, 2023 (the "**Effective Date**"), by and between **Lincoln Bancorp** (the "**Company**"), **Lincoln Savings Bank** (the "**Bank**," and together with the Company, the "**Employer**"), and Sean Willett ("**Executive**," and together with the Employer, the "**Parties**").

**RECITALS**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**A.&nbsp;&nbsp;&nbsp;&nbsp;**The Employer desires to employ Executive pursuant to the terms of this Agreement, and Executive desires to be employed pursuant to the terms of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**B.&nbsp;&nbsp;&nbsp;&nbsp;**The Parties have made commitments to each other on a variety of important issues concerning Executive's employment, including the performance that will be expected of Executive, the compensation Executive will be paid, how long and under what circumstances Executive will remain employed and the financial details relating to any decision that either the Employer or Executive may make to terminate this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**C.&nbsp;&nbsp;&nbsp;&nbsp;**The Parties desire to enter into this Agreement as of the Effective Date and, to the extent provided herein, to have this Agreement supersede the terms of all prior employment agreements between the Parties, whether or not in writing, and any such prior employment agreements shall become null and void as of the Effective Date, and the parties thereunder shall have no rights or interests therein.

**AGREEMENTS**

In consideration of the foregoing and the mutual promises and covenants of the Parties set forth in this Agreement, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties, intending to be legally bound, hereby expressly covenant and agree as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.&nbsp;&nbsp;&nbsp;&nbsp;<u>Employment Period</u>.** The Employer shall employ Executive, and Executive shall be so employed, during the Employment Period in accordance with the terms of this Agreement. The "**Employment Period**" shall be the period beginning on the Effective Date and ending on December 31, 2025, unless sooner terminated as provided herein. The Employment Period shall automatically be extended for one (1) additional year beginning on January 1, 2026 and on each January 1 thereafter unless either Party notifies the other Party, by written notice delivered no later than ninety (90) days prior to such January 1, that the Employment Period shall not be extended for an additional year. Notwithstanding any provision of this Agreement to the contrary, if a Change in Control occurs during the Employment Period, this Agreement shall remain in effect for the twenty-four (24) months following the Change in Control and shall then terminate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.&nbsp;&nbsp;&nbsp;&nbsp;<u>Duties</u>.** During the Employment Period, Executive shall devote Executive's full business time, energies, and talents to serving as the Company's Chief Executive Officer and the Bank's Chief Executive Officer and President at the direction of the Company Board. Executive shall have such duties and responsibilities as may be assigned to Executive from time to time by the Company Board, which duties and responsibilities shall be commensurate with Executive's position, shall perform all duties assigned to Executive faithfully and efficiently, subject to the direction of the Company Board and shall have such authorities and powers as are inherent to the undertakings applicable to Executive's position

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and necessary to carry out the responsibilities and duties required of Executive hereunder. Executive shall perform the duties required by this Agreement at the Employer's Iowa headquarters, or such other location agreed to by the Parties, unless the nature of such duties requires otherwise. Notwithstanding the foregoing provisions of this **Section 2,** during the Employment Period, Executive may devote reasonable time to activities other than those required under this Agreement, including activities of a charitable, educational, religious or similar nature (including professional associations) to the extent such activities do not, in the reasonable judgment of the Company Board, inhibit, prohibit, interfere with or conflict with Executive's duties under this Agreement or conflict in any material way with the business of the Employer or an Affiliate; *provided, however,* that Executive shall not serve on the board of directors of any business (other than the Employer or any Affiliate) or hold any other position with any business without receiving the prior written consent of the Company Board.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.&nbsp;&nbsp;&nbsp;&nbsp;<u>Compensation and Benefits</u>.** Subject to the terms of this Agreement, during the Employment Period, while Executive is employed by the Employer, the Employer shall compensate Executive for Executive's services as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;*Annual Base Salary.* Executive shall be compensated with a salary at an annual rate of Five Hundred Thousand Dollars ($500,000) (the **"Annual Base Salary"),** which shall be payable in accordance with the normal payroll practices of the Employer then in effect. Executive's Annual Base Salary shall be reviewed by the Company Board at least once per year, beginning on January 1, 2025, and on each anniversary of such date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;*Annual Incentive Bonus.* At the sole discretion of the Company Board, Executive shall be eligible to receive performance-based annual incentive bonuses (each, the **"Incentive Bonus")** from the Employer for each fiscal year ending during the Employment Period, commencing with the 2024 fiscal year. Executive's annual Incentive Bonus target shall be equal to forty percent (40%) of Executive's Annual Base Salary. Any such Incentive Bonus shall be paid to Executive as soon as reasonably practicable following the completion of the respective fiscal year audit by the Employer's auditor; provided, that Executive must be actively employed on the payment date for such Incentive Bonus.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;*Relocation Benefits.* In consideration of Executive's relocation to Iowa, the Company shall provide Executive with the following relocation benefits:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;The Company shall pay Executive a one-time lump-sum cash payment in the amount of Seventy-Five Thousand Dollars ($75,000) (the **"Relocation Bonus"),** less any required withholdings under applicable law, payable to Executive within thirty (30) days of the Effective Date; provided, that Executive acknowledges and agrees that, in the event of Executive's voluntary termination of employment (without Good Reason) or Executive's Termination for Cause prior to December 31, 2025, Executive shall be required to repay the Company, within thirty (30) days of the effective date of such termination, (A) One Hundred Percent (100%) of the gross Relocation Bonus if the effective date of such termination occurs on or prior to December 31, 2024; or (B) Fifty Percent (50%) of the gross Relocation Bonus if the effective date of such termination occurs on or after January 1, 2025 and on or before December 31, 2025. If Executive fails to timely repay any such amount, Executive shall also be liable for the Company's costs and expenses, including reasonable attorneys' fees, incurred in pursuit of repayment of such amount.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp;Commencing with the month in which the Effective Date occurs through June 30, 2024, the Company shall pay Executive a monthly housing allowance of Two Thousand Dollars ($2,000) (the **"Housing Allowance"),** less any required withholdings under applicable law. The Housing Allowance shall be paid in accordance with Company's normal payroll practices.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;*Equity Awards*.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;As soon as commercially practicable following the Effective Date, and subject to Company Board approval, Executive shall receive an equity award of restricted stock units over Ten Thousand (10,000) shares of the Company's common stock (the "**Sign-On Award**"). The Sign-On Award shall be subject to the Company's 2019 Equity Incentive Plan, as may be amended from time to time (the "**2019 EIP**") and the award agreement issued by the Company Board with respect thereto, and, subject to such terms and conditions, such award shall become vested on the first (1<sup>st</sup>) anniversary of the Effective Date, provided that Executive remains actively employed through such anniversary date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp;As soon as commercially practicable following January 1, 2024, and subject to Company Board approval, Executive shall receive an equity award of restricted stock units over Forty Thousand (40,000) shares of the Company's common stock (the "**2024 Performance Award**"). The 2024 Performance Award shall be subject to terms and conditions that are substantially similar to those set forth in the 2019 EIP and the Company's customary form of award agreement used thereunder, provided that such award may, in the discretion of the Company Board, be issued outside of the 2019 EIP and be evidenced by documentation intended to accomplish such issuance, and, subject to such terms and conditions, such award shall become vested, provided that (i) the Company achieves a 0.80% return on assets in the fourth (4<sup>th</sup>) quarter of 2024, and (ii) Executive remains actively employed through the date the Company Board (or applicable committee thereof) certifies the achievement of such performance goal.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;&nbsp;&nbsp;&nbsp;As soon as commercially practicable following January 1, 2025, and subject to Company Board approval, Executive shall receive an equity award of restricted stock units over Forty Thousand (40,000) shares of the Company's common stock (the "**2025 Performance Award**"). The 2025 Performance Award shall be subject to terms and conditions that are substantially similar to those set forth in the 2019 EIP and the Company's customary form of award agreement used thereunder, provided that such award may, in the discretion of the Company Board, be issued outside of the 2019 EIP and be evidenced by documentation intended to accomplish such issuance, and, subject to such terms and conditions, such award shall become vested, provided that (i) the Company achieves a 1.00% return on assets in the fourth (4<sup>th</sup>) quarter of 2025, and (ii) Executive remains actively employed through the date the Company Board (or applicable committee thereof) certifies the achievement of such performance goal.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv)&nbsp;&nbsp;&nbsp;&nbsp;As soon as commercially practicable following January 1, 2026, and subject to Company Board approval, Executive shall receive an equity award of restricted stock units over Forty Thousand (40,000) shares of the Company's common stock (the "**2026 Performance Award**"). The 2026 Performance Award shall be subject to terms and conditions that are substantially similar to those set forth in the 2019 EIP and the Company's customary form of award agreement used thereunder, provided that such award may, in the discretion of the Company Board, be issued outside of the 2019 EIP and be evidenced by documentation intended to accomplish such issuance, and, subject to such terms and conditions, such award shall become vested, provided that (i) the Company and/or Executive achieve certain performance goals, which such performance goals the Company Board will determine in 2024, in its sole discretion, and (ii) Executive remains actively employed through the date the Company Board (or applicable committee thereof) certifies the achievement of such performance goals.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;*2024 Travel Expenses*. During the 2024 calendar year, Employer shall, upon Executive's presentation of appropriate documentation to Employer in accordance with the Employer's reimbursement policies in effect from time to time, reimburse up to Twenty-Four Thousand Dollars

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($24,000) of ground and air transportation travel expenses that Executive incurs from Lincoln, Iowa to his current residence (determined as of the Effective Date).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;&nbsp;&nbsp;*Other Benefits*. During the Employment Period, Executive and Executive's dependents, as the case may be, shall be eligible to participate, subject to the terms thereof, in all pension and similar benefit plans (including qualified, non-qualified and supplemental plans) and all medical, dental, vision, disability, group and executive life, accidental death and travel accident insurance and other similar welfare benefit plans and programs of the Employer as may be in effect from time to time with respect to senior executives employed by the Employer, on as favorable a basis as other similarly situated senior executives.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.&nbsp;&nbsp;&nbsp;&nbsp;<u>Rights upon Termination</u>.** Executive's right to benefits, if any, for periods after the Termination Date shall be determined in accordance with this **Section[4:](#i959953af4c7e4337be9302d39605c33f_1)**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;**<u>Minimum Benefits</u>.** If the Termination Date occurs during the Employment Period for any reason, Executive shall be entitled to the Minimum Benefits in addition to any other benefits to which Executive may be entitled under the following provisions of this **Section[4](#i959953af4c7e4337be9302d39605c33f_1)**or the express terms of any employee benefit plan or as required by law. Any benefits to be provided to Executive pursuant to this **Section[4(a)](#i959953af4c7e4337be9302d39605c33f_1)**shall be provided within thirty (30) days after the Termination Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;**<u>Termination for Cause; Death; Disability; Voluntary Resignation; NonRenewal</u>.** If the Termination Date occurs during the Employment Period and is a result of a Termination for Cause, Executive's death or Disability, or a termination by Executive other than for Good Reason, or if this Agreement expires due to notice of non-renewal by either Party as provided under **Section[1](#i959953af4c7e4337be9302d39605c33f_1)**or at the end of a Covered Period, then, other than the Minimum Benefits, Executive shall have no right to benefits under this Agreement (and the Employer and its Affiliates shall have no obligation to provide any such benefits) for periods after the Termination Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;**<u>Termination other than a Termination for Cause or a Termination for Good Reason</u>.** If, other than during a Covered Period, Executive's employment is subject to a Termination, then, in addition to the Minimum Benefits, subject to the Release requirements of **Section 5**, the Employer shall provide Executive with the following benefits:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;The Employer shall pay Executive a lump sum payment in an amount equal to the Severance Amount on the first Employer payroll date that occurs on or following the sixtieth (60<sup>th</sup>) day following the Termination Date, but in no event later than 2½ months following the end of the year in which the Termination Date occurs.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp;Executive (and Executive's dependents, as may be applicable) shall be entitled to the benefits described in **Section4(e)**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;**<u>Termination upon a Change in Control</u>.** If, during a Covered Period, Executive's employment is subject to a Termination, then, in addition to Minimum Benefits, subject to the Release requirements of **Section 5**, the Employer shall provide Executive with the following benefits:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;The Employer shall pay Executive a lump sum payment in an amount equal to the Severance Amount on the first Employer payroll date that occurs on or following the sixtieth (60<sup>th</sup>) day following the Termination Date, but in no event later than 2½ months following the end of the year in which the Termination Date occurs.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp;Executive (and Executive's dependents, as may be applicable) shall be entitled to the benefits provided in **Section4(e)**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;**<u>Medical, Dental and Vision Benefits</u>.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;If Executive's employment with the Employer is subject to a Termination, then, to the extent that Executive or any of Executive's dependents may be covered under the terms of any medical, dental or vision plans maintained for active employees of the Employer or any Affiliate, the Employer shall provide Executive and those dependents with Consolidated Omnibus Budget Reconciliation Act of 1985, as amended **("COBRA")** coverage equivalent to the coverage received while Executive was employed with the Employer for as long as Executive is eligible for and elects coverage under the health care continuation rules of COBRA. For a period of twelve (12) months, Executive shall be required to pay the same amount as Executive would pay if Executive continued in employment with the Employer during such period and thereafter Executive shall be responsible for the full cost of such continued coverage. Such coverage shall be provided only to the extent that it does not result in any additional tax or other penalty being imposed on the Employer or any Affiliate. In the event Executive or any of Executive's dependents is or becomes eligible for coverage under the terms of any other medical, dental or vision plan of a subsequent employer with plan benefits that are comparable to Employer (or any Affiliate) plan benefits, the Employer's obligations under this **Section 4(e)** shall cease with respect to the eligible Executive and dependents. Executive and Executive's dependents must notify the Employer of any subsequent employment and eligibility for such comparable coverage.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;&nbsp;&nbsp;**<u>Other Benefits</u>.** Executive's rights following a termination of employment with the Employer and its Affiliates for any reason with respect to any benefits, incentives or awards provided to Executive pursuant to the terms of any plan, program or arrangement sponsored or maintained by the Employer or an Affiliate, whether tax-qualified or not, which are not specifically addressed herein, shall be subject to the terms of such plan, program or arrangement, and this Agreement shall have no effect upon such terms except as specifically provided herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;&nbsp;&nbsp;&nbsp;**<u>Removal from any Boards and Positions</u>.** Upon Executive's termination of employment for any reason under this Agreement, Executive shall be deemed to resign (i) if a member, from the Company Board, the Board, and the board of directors of any Affiliate and any other board to which Executive has been appointed or nominated by or on behalf of the Company, (ii) from each position with the Company, the Bank, or any Affiliate, including as an officer of the Company, the Bank, or any of their Affiliates and (iii) as a fiduciary of any employee benefit plan of the Company or the Bank.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.&nbsp;&nbsp;&nbsp;&nbsp;<u>Release</u>.** Notwithstanding any provision of this Agreement to the contrary, no payments or benefits shall be owed to Executive under **Sections 4(c), 4(d),** or **4(e)** unless Executive executes and delivers to the Employer a Release within forty-five (45) days following the Termination Date, and any applicable revocation period has expired prior to the sixtieth (60<sup>th</sup>) day following the Termination Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.&nbsp;&nbsp;&nbsp;&nbsp;<u>Excise Tax Limitation</u>.** It is the intention of the Parties that no portion of any payment under this Agreement, or payments to or for the benefit of Executive under any other agreement or plan, be deemed to be an excess parachute payment, as such term is defined under Code Section 280G and the regulations promulgated thereunder. The present value of payments to or for the benefit of Executive in the nature of compensation, receipt of which is contingent on a Change in Control, and to which Code Section 280G applies shall not exceed an amount equal to $1.00 less than the maximum amount that the Employer may pay without loss of deduction under Code Section 280G(a). Any modification, reduction

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or elimination of payments necessary to accomplish the foregoing shall be done in accordance with applicable provisions of Code Section 409A.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7.&nbsp;&nbsp;&nbsp;&nbsp;<u>Restrictive Covenants</u>.** Executive acknowledges that Executive has been and will continue to be provided intimate knowledge of the business practices, trade secrets, and other confidential and proprietary information of the Employer and its Affiliates (including the Confidential Information), which, if exploited by Executive, would seriously, adversely, and irreparably affect the interests of the Employer and its Affiliates and the ability of each to continue its business and, therefore, Executive hereby agrees to be bound by the restrictions contained in this **Section 7** (the "**Restrictive Covenants**").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;**<u>Confidential Information</u>.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;Executive acknowledges that, during the course of Executive's employment with the Employer, Executive may produce and have access to confidential and/or proprietary, non-public information concerning the Employer or its Affiliates, including marketing materials, financial and other information concerning customers and prospective customers, customer lists, records, data, trade secrets, proprietary business information, pricing and profitability information and policies, strategic planning, commitments, plans, procedures, litigation, pending litigation and other information not generally available to the public (collectively, "**Confidential Information**"). Executive shall not directly or indirectly use, disclose, copy or make lists of Confidential Information for the benefit of anyone other than the Employer, either during or after Executive's employment with the Employer, except to the extent such disclosure is authorized in writing by the Employer, required by law or any competent administrative agency or judicial authority, or otherwise as reasonably necessary or appropriate in connection with the performance by Executive of Executive's duties hereunder. If Executive receives a subpoena or other court order or is otherwise required by law to provide information to a governmental authority or other person concerning the activities of the Employer or any of its Affiliates, or Executive's activities in connection with the business of the Employer or any of its Affiliates, Executive shall immediately notify the Employer of such subpoena, court order or other requirement and deliver forthwith to the Employer a copy thereof and any attachments and non-privileged correspondence related thereto. Executive shall take reasonable precautions to protect against the inadvertent disclosure of Confidential Information. Executive shall abide by the Employer's reasonable policies, as in effect from time to time, respecting avoidance of interests conflicting with those of the Employer and its Affiliates.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp;Executive shall not be held criminally or civilly liable under any federal or state trade secret law for the disclosure of a trade secret that (A) is made (1) in confidence to a federal, state, or local government official, either directly or indirectly, or to an attorney, and (2) solely for the purpose of reporting or investigating a suspected violation of law; or (B) is made in a complaint or other document filed in a lawsuit or other proceeding, if such filing is made under seal. Accordingly, Executive has the right to disclose in confidence trade secrets to federal, state, and local government officials, or to an attorney, for the sole purpose of reporting or investigating a suspected violation of law. Executive also has the right to disclose trade secrets in a document filed in a lawsuit or other proceeding, but only if the filing is made under seal and protected from public disclosure. Nothing in this Agreement is intended to conflict with 18 U.S.C. § 1833(b) or create liability for disclosures of trade secrets that are expressly allowed by 18 U.S.C. § 1833(b). Nothing in this Agreement shall be construed to authorize, or limit liability for, an act that is otherwise prohibited by law, such as the unlawful access of material by unauthorized means.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;&nbsp;&nbsp;&nbsp;Nothing contained in this **Section [7(a)](#i959953af4c7e4337be9302d39605c33f_1)**shall limit Executive's ability to file a charge or complaint with any governmental, administrative or judicial agency (each, an "**Agency**")

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pursuant to any applicable whistleblower statute or program (each, a "**Whistleblower Program**"). Executive acknowledges that this **Section [7(a)](#i959953af4c7e4337be9302d39605c33f_1)**does not limit (i) Executive's ability to communicate, in connection with a charge or complaint pursuant to any Whistleblower Program with any Agency or otherwise participate in any investigation or proceeding that may be conducted by such Agency, including providing documents or other information, without notice to the Employer, or (ii) Executive's right to receive an award for information provided to such Agency pursuant to any Whistleblower Program.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;**<u>Documents and Property</u>.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;All records, files, documents and other materials or copies thereof relating to the business of the Employer or its Affiliates that Executive prepares, receives or uses shall be and remain the sole property of the Employer and, other than in connection with the performance by Executive of Executive's duties hereunder, shall not be removed from the premises of the Employer or any of its Affiliates without the Employer's prior written consent, and shall be promptly returned to the Employer upon Executive's termination of employment for any reason, together with all copies (including copies or recordings in electronic form), abstracts, notes or reproductions of any kind made from or about the records, files, documents or other materials.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp;Executive acknowledges that Executive's access to and permission to use the Employer's and any Affiliate's computer systems, networks and equipment, and all Employer and Affiliate information contained therein, is restricted to legitimate business purposes on behalf of the Employer. Any other access to or use of such systems, network, equipment and information is without authorization and is prohibited except that Executive may use an Employer-provided computer for reasonable personal use in accordance with the Employer's technology use policy as in effect from time to time. The restrictions contained in this **Section [7(b)](#i959953af4c7e4337be9302d39605c33f_1)**extend to any personal computers or other electronic devices of Executive that are used for business purposes relating to the Employer or any Affiliate. Executive shall not transfer any Employer or Affiliate information to any personal computer or other electronic device that is not otherwise used for any business purpose relating to the Employer. Upon the termination of Executive's employment with the Employer for any reason, Executive's authorization to access and permission to use the Employer's and any Affiliate's computer systems, networks and equipment, and any Employer and Affiliate information contained therein, shall cease.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;**<u>Non-Competition and Non-Solicitation</u>.** The Parties have agreed that the primary service area of the Employer's operations, including lending and deposit taking functions, in which Executive will actively participate extends to an area that encompasses a fifty (50)-mile radius from each Bank branch and the Company's headquarters (the "**Restrictive Area**"). Therefore, as an essential ingredient of and in consideration of this Agreement and Executive's employment with the Employer, Executive, during Executive's employment with the Employer and for a period of twelve (12) months immediately following the termination of Executive's employment for any reason (the "**Restrictive Period**"), whether such termination occurs during the Employment Period or thereafter, shall not directly or indirectly do any of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;Engage or invest in, own, manage, operate, finance, control, participate in the ownership, management, operation or control of, be employed by, associated with or in any manner connected with, serve as a director, officer or consultant to, lend Executive's name or any similar name to, lend Executive's credit to or render services or advice to, in each case in the capacity that Executive provided services to the Employer or any Affiliate, any Financial Institution or Fintech Organization, excluding any Fintech Organization which, during the thirty-six (36)-month period immediately preceding the Termination Date, had no significant business relationship, dealings or interactions with the Employer or any Affiliate; *provided*, *however*, that the ownership by Executive of shares of the capital

------

stock of any Financial Institution or Fintech Organization, which shares are listed on a securities exchange or quoted on the National Association of Securities Dealers Automated Quotation System and which do not represent more than five (5) percent (5%) of the institution's outstanding capital stock, shall not violate any terms of this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp;Either for Executive or any Financial Institution or Fintech Organization: (A) induce or attempt to induce any employee of the Employer or any of its Affiliates with whom Executive had significant contact to leave the employ of the Employer or any of its Affiliates; (B) in any way interfere with the relationship between the Employer or any of its Affiliates and any employee of the Employer or any of its Affiliates with whom Executive had significant contact; or (C) induce or attempt to induce any customer, supplier, licensee or business relation of the Employer or any of its Affiliates with whom Executive had significant contact to cease doing business with the Employer or any of its Affiliates or in any way interfere with the relationship between the Employer or any of its Affiliates and their respective customers, suppliers, licensees or business relations with whom Executive had significant contact; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;&nbsp;&nbsp;&nbsp;Either for Executive or any Financial Institution or any Fintech Organization, solicit the business of any person or entity known to Executive to be a customer of the Employer or any of its Affiliates, where Executive had significant contact with such person or entity, with respect to products, activities or services that compete in whole or in part with the products, activities or services of the Employer or any of its Affiliates.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;**<u>Remedies for Breach of Restrictive Covenant</u>.** Executive has reviewed the provisions of this Agreement with legal counsel or has been given adequate opportunity to seek such counsel, and Executive acknowledges that the covenants contained in this **Section 7** are reasonable with respect to their duration, geographical area and scope. Executive further acknowledges that the restrictions contained in this **Section 7** are reasonable and necessary for the protection of the legitimate business interests of the Employer, that they create no undue hardships, that any violation of these restrictions would cause substantial injury to the Employer and such interests, and that such restrictions were a material inducement to the Employer to enter into this Agreement. In the event of any violation or threatened violation of these restrictions, the Employer, in addition to and not in limitation of, any other rights, remedies or damages available to the Employer under this Agreement or otherwise at law or in equity, shall be entitled to preliminary and permanent injunctive relief to prevent or restrain any such violation by Executive and any and all persons directly or indirectly acting for or with Executive, as the case may be.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;**<u>Other Agreements</u>.** In the event of the existence of any other agreement between the Parties that (a) is in effect during the Restrictive Period, and (b) contains restrictive covenants that conflict with any of the provisions of this **Section 7**, then the more restrictive of such provisions from such agreements shall control for the period during which such agreements would otherwise be in effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8.&nbsp;&nbsp;&nbsp;&nbsp;<u>Regulatory Suspension and Termination</u>.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;If Executive is suspended from office and/or temporarily prohibited from participating in the conduct of the affairs of the Employer by a notice served under Section 8(e)(3) (12 U.S.C. § 1818(e)(3)) or 8(g) (12 U.S.C. § 1818(g)) of the Federal Deposit Insurance Act, as amended ("**FDIA**"), the Employer's obligations under this Agreement shall be suspended as of the date of service, unless stayed by appropriate proceedings. If the charges in the notice are dismissed, the Employer may in its discretion: (i) pay Executive all or part of the compensation withheld while the obligations herein were suspended; and (ii) reinstate (in whole or in part) any of the obligations which were suspended.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;If Executive is removed and/or permanently prohibited from participating in the conduct of the affairs of the Employer by an order issued under Section 8(e) (12 U.S.C. § 1818(e)) or 8(g) (12 U.S.C. § 1818(g)) of the FDIA, all obligations of the Employer under this Agreement shall terminate as of the effective date of the order, but vested rights of the Parties shall not be affected.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;If the Employer is in default as defined in Section 3(x) (12 U.S.C. § 1813(x)(1)) of the FDIA, all obligations of the Employer under this Agreement shall terminate as of the date of default, but this subsection shall not affect any vested rights of the Parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;All obligations of the Employer under this Agreement shall be terminated, except to the extent it is determined by the Federal Deposit Insurance Corporation (the "**FDIC**") that continuation of the Agreement is necessary for the continued operation of the institution, at the time the FDIC enters into an agreement to provide assistance to or on behalf of the Employer under the authority contained in Section 13(c) (12 U.S.C. § 1823(c)) of the FDIA, or when the Employer is determined by the FDIC to be in an unsafe or unsound condition. Any rights of the Parties that have already vested, however, shall not be affected by such action.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;Any payments made to Executive pursuant to this Agreement, or otherwise, are subject to and conditioned upon their compliance with Section 18(k) (12 U.S.C. § 1828(k)) of the FDIA.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9.&nbsp;&nbsp;&nbsp;&nbsp;<u>Notices</u>.** Notices and all other communications under this Agreement shall be in writing and shall be deemed given when mailed by United States registered or certified mail, return receipt requested, postage prepaid, addressed as follows:

---

| |
|:---|
| If to the Employer: |
| Lincoln Bancorp |
| Attention: EVP, Chief Human Resources Officer |
| 508 Main St. |
| Reinbeck, IA 50669 |
| with a copy to the following counsel for Employer: |
| Andrew K. Strimaitis |
| Barack Ferrazzano Kirschbaum & Nagelberg LLP |
| 200 West Madison Street, Suite 3900 |
| Chicago, IL 60606 |
| <u>andrew.strimaitis@bfkn.com</u> |

---

If to Executive: Executive's last address on file with the Employer or to such other address as either Party may furnish to the other in writing, except that notices of changes of address shall be effective only upon receipt.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**10.&nbsp;&nbsp;&nbsp;&nbsp;<u>Applicable Law; Arbitration; Attorneys' Fees</u>.** All questions concerning the construction, validity and interpretation of this Agreement and the performance of the obligations imposed by this Agreement shall be governed by the internal laws of the State of Iowa applicable to agreements made and wholly to be performed in such state without regard to conflicts of law provisions of any jurisdiction. The Parties agree that any and all disputes arising out of the terms of this Agreement, Executive's employment Employer, Executive's service as an officer or director of the Employer, or

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Executive's compensation and benefits, their interpretation, and any of the matters herein released, will be subject to binding arbitration in Minneapolis, Minnesota or other mutually convenient available location, before the Judicial Arbitration and Mediation Services, Inc., under the American Arbitration Association's National Rules for the Resolution of Employment Disputes, supplemented by the Iowa Rules of Civil Procedure. The Parties agree that the prevailing party in any arbitration will be entitled to injunctive relief in any court of competent jurisdiction to enforce the arbitration award. The Parties agree to waive their right to have any dispute between them resolved in a court of law by a judge or jury. This paragraph will not prevent either party from seeking injunctive relief (or any other provisional remedy) from any court having jurisdiction over the Parties and the subject matter of their dispute relating to Executive's obligations under this Agreement and any confidentiality agreement by and between Executive and the Company or Bank. Any such action or proceeding by either of the Parties for injunctive or provisional relief shall be brought only in the state courts in Black Hawk County, Iowa or in the federal United States District Court for the Northern District of Iowa.

Should any Party institute any arbitration or seek injunctive or provisional relief from a court to enforce, interpret, or apply any provision of this Agreement, the Parties agree that the prevailing party shall be entitled to seek reimbursement from the non-prevailing party of their recoverable costs and expenses, including, but not limited to, reasonable attorneys' fees, but all such costs and/or fees shall be awarded in the arbitrator's or judge's sole discretion. The arbitrator or judge shall base their determination of which party prevailed upon an assessment of which party's arguments or positions could fairly be said to have prevailed over the other party's arguments or positions on major disputed issues in the action, accounting for the possibility that in some circumstances it is appropriate to conclude that neither party prevailed. Such assessment should include evaluation of the following: the amount of the net recovery and/or value of the object of the action to the prevailing party; whether the prevailing party could have secured complete relief without also pursuing claims for equitable or declaratory relief; the primary issues disputed by the parties and the relative value or importance of resolving such issues to either the prevailing party or the non-prevailing party; whether the amount of the award comprises a significant percentage of the amount sought by the prevailing party where relief is sought in the form of damages; and the most recent settlement positions of the parties. All questions concerning the construction, validity and interpretation of this Agreement and the performance of the obligations imposed by this Agreement shall be governed by the internal laws of the State of Iowa applicable to agreements made and wholly to be performed in such state without regard to conflicts of law provisions of any jurisdiction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**11.&nbsp;&nbsp;&nbsp;&nbsp;<u>Entire Agreement</u>.** This Agreement constitutes the entire agreement between the Parties concerning the subject matter hereof, and supersedes all prior negotiations, undertakings, agreements and arrangements with respect thereto, whether written or oral, except for any prior or concurrent confidentiality agreement by and between Executive and the Company or Bank. If a court of competent jurisdiction determines that any provision of this Agreement is invalid or unenforceable, then the invalidity or unenforceability of that provision shall not affect the validity or enforceability of any other provision of this Agreement and all other provisions shall remain in full force and effect. The various covenants and provisions of this Agreement are intended to be severable and to constitute independent and distinct binding obligations. Without limiting the generality of the foregoing, if the scope of any covenant contained in this Agreement is too broad to permit enforcement to its full extent, such covenant shall be enforced to the maximum extent permitted by law, and such scope may be judicially modified accordingly.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**12.&nbsp;&nbsp;&nbsp;&nbsp;<u>Withholding of Taxes</u>.** The Employer may withhold from any benefits payable under this Agreement all federal, state, city and other taxes as may be required pursuant to any law, governmental regulation or ruling.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**13.&nbsp;&nbsp;&nbsp;&nbsp;<u>No Assignment</u>.** Executive's rights to receive benefits under this Agreement shall not be assignable or transferable whether by pledge, creation of a security interest or otherwise, other than a transfer by will or by the laws of descent or distribution. In the event of any attempted assignment or transfer contrary to this **Section[13,](#i959953af4c7e4337be9302d39605c33f_1)** the Employer shall have no liability to pay any amount so attempted to be assigned or transferred. This Agreement shall inure to the benefit of and be enforceable by Executive's personal or legal representatives, executors, administrators, successors, heirs, distributees, devisees and legatees.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**14.&nbsp;&nbsp;&nbsp;&nbsp;<u>Successors</u>.** This Agreement shall be binding upon and inure to the benefit of the Employer, its successors and assigns.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**15.&nbsp;&nbsp;&nbsp;&nbsp;<u>Amendment</u>.** This Agreement may not be amended or modified except by written agreement signed by the Parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**16.&nbsp;&nbsp;&nbsp;&nbsp;<u>Code Section 409A</u>.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;This Agreement may be amended to the extent necessary (including retroactively) by the Employer to avoid the application of taxes or interest under Code Section 409A, while maintaining to the maximum extent practicable the original intent of this Agreement. If it is determined that any payments or benefits due hereunder upon Executive's termination of employment are subject to Code Section 409A, no such payments or benefits shall be payable unless such termination constitutes a "separation from service" within the meaning of Code Section 409A. To the extent any reimbursements or in-kind benefit payments under this Agreement are subject to Code Section 409A, such reimbursements and in-kind benefit payments shall be made in accordance with Treasury Regulation Section 1.409A-3(i)(1)(iv). This **Section[16](#i959953af4c7e4337be9302d39605c33f_1)**shall not be construed as a guarantee of any particular tax effect for Executive's benefits under this Agreement and the Employer does not guarantee that any such benefits will satisfy the provisions of Code Section 409A or any other provision of the Code.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;Notwithstanding any provision of this Agreement to the contrary, if Executive is determined to be a "specified employee" (as defined in Code Section 409A) as of the Termination Date, then the six (6)-month payment delay rule under Code Section 409A shall apply as set forth therein. All delayed payments shall be accumulated and paid in a lump-sum payment as of the first day of the seventh month following the Termination Date (or, if earlier, as of Executive's death). Any portion of the benefits hereunder that were not otherwise due to be paid during the six (6)-month period following the Termination Date shall be paid to Executive in accordance with the payment schedule established herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**17.&nbsp;&nbsp;&nbsp;&nbsp;<u>Definitions</u>.** As used in this Agreement, the terms defined in this **Section[17](#i959953af4c7e4337be9302d39605c33f_1)**have the meanings set forth below.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;"**Agency**" has the meaning set forth in **Section[7(a)(iii).](#i959953af4c7e4337be9302d39605c33f_1)**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;"**Agreement**" has the meaning set forth in the Preamble.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;"**Affiliate**" means each company, corporation, partnership, financial institution, or other entity that, directly or indirectly, is controlled by, controls, or is under common control with, the Employer, where "control" means (i) the ownership of fifty-one percent (51%) or more of the Voting Securities or other voting or equity interests of any corporation, partnership, joint venture or other business entity or (ii) the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of such corporation, partnership, joint venture or other business entity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;"**Annual Base Salary**" has the meaning set forth in **Section 3**.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;"**Average Incentive Bonus**" means the average of Incentive Bonuses determined for the immediately preceding three completed fiscal year performance periods of the Employer; *provided, however*, that if an Incentive Bonus has not yet been determined for a previously completed fiscal year performance period as of the Termination Date, then target Incentive Bonus shall be used with respect to such fiscal year for purposes of calculating the Average Incentive Bonus. For purposes of calculating the Average Incentive Bonus, fiscal years for which no bonus was determined to have been earned shall be included in the calculation of the three-year average; *provided, however*, if Executive is employed for fewer than three completed fiscal year performance periods, the Average Incentive Bonus will be based solely on performance for one or two such periods, as appropriate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;&nbsp;&nbsp;"**Bank**" has the meaning set forth in the Preamble.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;&nbsp;&nbsp;&nbsp;"**Base Compensation**" means the amount equal to the sum of (i) the greater of Executive's then-current Annual Base Salary or Executive's Annual Base Salary as of the date one day prior to the Change in Control, and (ii) the Average Incentive Bonus.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)&nbsp;&nbsp;&nbsp;&nbsp;"**Board**" means the board of directors of the Bank.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;"**Change in Control**" means:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;the consummation of the acquisition by any "person" (as such term is defined in Section 13(d) or 14(d) of the Securities Exchange Act of 1934 (the "**1934 Act**")) of "beneficial ownership" (within the meaning of Rule 13d-3 promulgated under the 1934 Act) of fifty percent (50%) or more of the combined voting power of the then outstanding Voting Securities of the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp;during any 12-month period, the individuals who are members of the Incumbent Board cease for any reason to a majority of the Company Board, unless either the election of, or the nomination for election by, the shareholders of any new director was approved by a vote of a majority of the Company Board, in which case such new director shall, for purposes of this Agreement, be considered as a member of the Incumbent Board; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;&nbsp;&nbsp;&nbsp;the consummation by the Company of: (A) a merger or consolidation if the shareholders immediately before such merger or consolidation do not, as a result of such merger or consolidation, own, directly or indirectly, more than fifty percent (50%) of the combined voting power of the then outstanding Voting Securities of the entity resulting from such merger or consolidation in substantially the same proportion as their ownership of the combined voting power of the Voting Securities of the Company outstanding immediately before such merger or consolidation; or (B) a complete liquidation or dissolution or an agreement for the sale or other disposition of all or substantially all of the assets of the Company.

Notwithstanding any provision in this definition to the contrary, a Change in Control shall not be deemed to occur unless the Change in Control constitutes a "change in control event" as such term is defined by Code Section 409A. Notwithstanding any provision in this definition to the contrary, a Change in Control shall not be deemed to occur solely because fifty percent (50%) or more of the combined voting power of the then outstanding Voting Securities of the Company are acquired by (A) a trustee or other fiduciary holding securities under one (1) or more employee benefit plans maintained for employees of the Company or any Affiliate of either or (B) any corporation that, immediately prior to or following such acquisition, is owned directly or indirectly by the shareholders of the Company immediately prior to such acquisition in the same proportion as their ownership of stock of the Company immediately prior to such acquisition.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j)&nbsp;&nbsp;&nbsp;&nbsp;"**COBRA**" has the meaning set forth in **Section 4(e)**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k)&nbsp;&nbsp;&nbsp;&nbsp;"**Code**" means the Internal Revenue Code of 1986, as amended.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l)&nbsp;&nbsp;&nbsp;&nbsp;"**Company**" has the meaning set forth in the Preamble.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m)&nbsp;&nbsp;&nbsp;&nbsp;"**Company Board**" means the board of directors of the&nbsp;&nbsp;&nbsp;&nbsp;Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n)&nbsp;&nbsp;&nbsp;&nbsp;"**Confidential Information**" has the meaning set forth&nbsp;&nbsp;&nbsp;&nbsp;in **Section[7(a)(i).](#i959953af4c7e4337be9302d39605c33f_1)**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o)&nbsp;&nbsp;&nbsp;&nbsp;"**Covered Period**" means the period beginning six (6)&nbsp;&nbsp;&nbsp;&nbsp;months prior to a Change in Control and ending twelve (12) months after the Change in Control.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p)&nbsp;&nbsp;&nbsp;&nbsp;"**Disability**" means that (i) Executive is unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment that can be expected to result in death or can be expected to last for a continuous period of not less than twelve (12) months, or (ii) Executive is, by reason of any medically determinable physical or mental impairment that can be expected to result in death or can be expected to last for a continuous period of not less than twelve (12) months, receiving income replacement benefits for a period of not less than three (3) consecutive months under an accident or health plan covering employees of the Employer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q)&nbsp;&nbsp;&nbsp;&nbsp;"**Effective Date**" has the meaning set forth in the Preamble.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r)&nbsp;&nbsp;&nbsp;&nbsp;"**Employer**" has the meaning set forth in the Preamble.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(s)&nbsp;&nbsp;&nbsp;&nbsp;"**Employment Period**" has the meaning set forth in **Section[1.](#i959953af4c7e4337be9302d39605c33f_1)**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(t)&nbsp;&nbsp;&nbsp;&nbsp;"**Executive**" has the meaning set forth in the Preamble.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(u)&nbsp;&nbsp;&nbsp;&nbsp;"**FDIA**" has the meaning set forth in **Section[8(a).](#i959953af4c7e4337be9302d39605c33f_1)**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v)&nbsp;&nbsp;&nbsp;&nbsp;"**FDIC**" has the meaning set forth in **Section[8(d).](#i959953af4c7e4337be9302d39605c33f_1)**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(w)&nbsp;&nbsp;&nbsp;&nbsp;"**Financial Institution**" means any person, firm, partnership, corporation or trust that owns, operates or is in the process of forming a bank, savings bank, savings and loan association, credit union or similar financial institution, or any unit, division or subsidiary of any of the foregoing, with an office located, or to be located at an address identified in a filing with any regulatory authority, within the Restrictive Area.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x)&nbsp;&nbsp;&nbsp;&nbsp;"**Fintech Organization**" means any person, firm, partnership, corporation or trust that is engaged in the business of, or is preparing to engage in, designing, implementing or delivering any technology that seeks to improve and automate the delivery and use of financial services, or any unit division or subsidiary of the foregoing, with an office located, or to be located at an address identified in any formation or organizing documentation, within the United States*.*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(y)&nbsp;&nbsp;&nbsp;&nbsp;"**Good Reason**" means the occurrence of one (1) of the following events, unless Executive agrees in writing that such event shall not constitute Good Reason:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;an adverse change in the nature, scope or status of Executive's position, authorities or duties from those in effect in accordance with **Section[2](#i959953af4c7e4337be9302d39605c33f_1)**immediately following the Effective Date, or if applicable and greater, immediately prior to the Covered Period; *provided, however*, that a -13- diminution of Executive's duties and responsibilities (including a change of Executive's title)

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by virtue of the Employer becoming a subsidiary, affiliate, division or other similar operating entity of a larger financial institution shall not constitute Good Reason where Executive continues to have similar duties and responsibilities (as determined as of the effective date of the Change in Control) with respect to such subsidiary, affiliate, division or other similar operating entity, and such subsidiary, affiliate, division, or other similar operating entity is of similar size to the Employer (as measured as of the effective date of the Change in Control);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp;an involuntary material reduction of Executive's compensation and benefits measured as of the Effective Date, or if applicable and greater, immediately prior to the Covered Period, *provided* that such reduction is greater than ten percent (10%) of the value as of the Effective Date or immediately prior to the Covered Period, as applicable, and is not part of an overall adjustment in benefits for all employees of the Employer;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;&nbsp;&nbsp;&nbsp;relocation of Executive's primary place of employment by more than fifty (50) miles from Executive's primary place of employment immediately following the Effective Date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv)&nbsp;&nbsp;&nbsp;&nbsp;failure by an acquiror to assume this Agreement at the time of a Change in Control; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v)&nbsp;&nbsp;&nbsp;&nbsp;a material breach by the Employer of this Agreement.

Notwithstanding any provision in this definition to the contrary, prior to Executive's Termination for Good Reason, Executive must give the Employer written notice of the existence of any condition set forth in clause (i) – (v) immediately above within ninety (90) days of its initial existence and the Employer shall have thirty (30) days from the date of such notice in which to cure the condition giving rise to Good Reason, if curable. If, during such thirty (30)-day period, the Employer cures the condition giving rise to Good Reason, the condition shall not constitute Good Reason. Further notwithstanding any provision in this definition to the contrary, in order to constitute a Termination for Good Reason, such Termination must occur within twelve (12) months of the initial existence of the applicable condition.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(z)&nbsp;&nbsp;&nbsp;&nbsp;"**Incentive Bonus**" has the meaning set forth in **Section 3**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(aa)&nbsp;&nbsp;&nbsp;&nbsp;"**Incumbent Board**" means the members of the Company Board as of the Effective Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(bb)&nbsp;&nbsp;&nbsp;&nbsp;"**Minimum Benefits**" means, as applicable, the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;Executive's earned but unpaid Annual Base Salary for the period ending on the Termination Date; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp;Executive's accrued but unpaid vacation time for the period ending on the Termination Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(cc)&nbsp;&nbsp;&nbsp;&nbsp;"**Parties**" has the meaning set forth in the Preamble.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(dd)&nbsp;&nbsp;&nbsp;&nbsp;"**Release**" means a general release and waiver substantially in the form attached hereto as **<u>Exhibit A</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ee)&nbsp;&nbsp;&nbsp;&nbsp;"**Restrictive Area**" has the meaning set forth in **Section[7(c);](#i959953af4c7e4337be9302d39605c33f_1)** *provided*, *however*, that, upon the termination of Executive's employment for any reason other than for Executive's

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breach of the Restrictive Covenants, the Restrictive Area shall be redefined to only encompass a fifty (50)-mile radius from the location of each Bank branch and the Company's headquarters, in each case, as of the Termination Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ff)&nbsp;&nbsp;&nbsp;&nbsp;"**Restrictive Covenants**" has the meaning set forth in **Section 7**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(gg)&nbsp;&nbsp;&nbsp;&nbsp;"**Restrictive Period**" has the meaning set forth in **Section[7(c).](#i959953af4c7e4337be9302d39605c33f_1)**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(hh)&nbsp;&nbsp;&nbsp;&nbsp;"**Severance Amount**" means:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;For any Termination that occurs during the Employment Period and not during a Covered Period, an amount equal to one hundred percent (100%) of Executive's Annual Base Salary as of the respective Termination Date; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp;For any Termination that occurs during a Covered Period, an amount equal to two hundred percent (200%) of Executive's Base Compensation as of the respective Termination Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp;"**Termination**" means the termination of Executive's employment with the Employer following the Effective Date and prior to the end of the Employment period either:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;by the Employer other than a Termination for Cause (but excluding, for the avoidance of doubt, a termination as a result of Executive's death or Disability); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp;by Executive for Good Reason.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(jj)&nbsp;&nbsp;&nbsp;&nbsp;"**Termination Date**" means the date of termination of Executive's employment with the Employer for any reason.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(kk)&nbsp;&nbsp;&nbsp;&nbsp;"**Termination for Cause**" means only a termination of Executive's employment with the Employer as a result of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;Executive's willful and continuing failure, that is not remedied within twenty (20) days after receipt of written notice of such failure from the Employer, to perform Executive's obligations hereunder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp;Executive's conviction of, or the pleading of *nolo contendere* to, a crime of embezzlement or fraud or a felony under the laws of the United States or any state thereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;&nbsp;&nbsp;&nbsp;Executive's breach of fiduciary responsibility;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv)&nbsp;&nbsp;&nbsp;&nbsp;an act of dishonesty by Executive that is materially injurious to the Employer;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v)&nbsp;&nbsp;&nbsp;&nbsp;Executive's material violation of any the Company's or the Bank's written policies or codes of conduct, including written policies related to discrimination, harassment, performance of illegal or unethical activities, and ethical misconduct; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi)&nbsp;&nbsp;&nbsp;&nbsp;Executive's willful unauthorized disclosure of Confidential Information.

Any determination of a Termination for Cause under this Agreement shall be made by resolution adopted by at least a two-thirds (2/3) vote of the Company Board at a meeting called and held

------

for that purpose. Executive shall be provided with reasonable notice of such meeting and shall be given the opportunity to be heard, with the presence of counsel, prior to such vote being taken by the Company Board.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ll)&nbsp;&nbsp;&nbsp;&nbsp;"**Voting Securities**" means any securities that ordinarily possess the power to vote in the election of directors without the happening of any precondition or contingency.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(mm)&nbsp;&nbsp;&nbsp;&nbsp;"**Whistleblower Program**" has the meaning set forth in **Section[7(a)(iii)](#i959953af4c7e4337be9302d39605c33f_1)**[.](#i959953af4c7e4337be9302d39605c33f_1)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**18.&nbsp;&nbsp;&nbsp;&nbsp;<u>Survival</u>.** The provisions of **Sections 5** through**[18](#i959953af4c7e4337be9302d39605c33f_1)**shall survive the termination of this Agreement.

**\*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; \*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; \*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; \***

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**IN WITNESS WHEREOF**, the Parties have executed this Agreement as of the Effective Date.

---

| | | | |
|:---|:---|:---|:---|
| **LINCOLN BANCORP** | **LINCOLN BANCORP** | **LINCOLN BANCORP** | **SEAN WILLETT** |
| **By:** | /s/ Sally A. Hollis | /s/ Sally A. Hollis | Sean M. Willett |
|  |  |  | (Signature) |
| **Name:** | **Name:** | Sally A. Hollis | Sean M. Willett |
|  |  |  | (Print) |
| **Its:** | Executive Chair | Executive Chair | "Executive" |

---

---

| |
|:---|
| **LINCOLN SAVINGS BANK** |
| **By:** |
| **Name:** |
| **Its:** |

---

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**<u>EXHIBIT</u> <u>A</u>**

**<u>RELEASE AND WAIVER OF CLAIMS</u>**

This **Release and Waiver of Claims** (this "**Release and Waiver**") is made and entered into by and among **Lincoln Bancorp** (the "**Company**"), **Lincoln Savings Bank** (the "**Bank**," and together with the Company, the "**Employer**"), and Sean Willett ("**Executive**," and together with the Employer, the "**Parties**").

**RECITALS**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**A.&nbsp;&nbsp;&nbsp;&nbsp;**Executive and the Employer are parties to that certain Employment Agreement, dated as of December 5, 2023 (the "**Employment Agreement**").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**B.&nbsp;&nbsp;&nbsp;&nbsp;**Pursuant to the Employment Agreement, certain benefits due to Executive are conditioned on Executive's full release of claims against the Employer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**C.&nbsp;&nbsp;&nbsp;&nbsp;**The Parties desire to settle fully and amicably all issues between them, including any issues arising out of Executive's employment with the Employer and the termination of that employment.

**AGREEMENTS**

For and in consideration of the mutual promises contained herein, and for other good and sufficient consideration, the receipt of which is hereby acknowledged, the Parties, intending to be legally bound, hereby agree as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.&nbsp;&nbsp;&nbsp;&nbsp;<u>Termination of Employment</u>.** Executive's employment with the Employer shall be terminated effective as of the close of business on <u>[&nbsp;&nbsp;&nbsp;&nbsp;]</u> (the "**Termination Date**").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.&nbsp;&nbsp;&nbsp;&nbsp;<u>Compensation and Benefits</u>.** Subject to the terms of this Release and Waiver, the Employer shall compensate Executive under this Release and Waiver as follows (collectively, the "**Severance Payments**"):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;<u>Severance Amount</u>. <u>[&nbsp;&nbsp;&nbsp;&nbsp;]</u>, payable in accordance with the terms and conditions of the Employment Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;<u>Accrued Salary and Paid Time Off</u>. Executive shall be entitled to a lump sum payment in an amount equal to Executive's earned but unpaid annual base salary and accrued but unused paid time off for the period ending on the Termination Date, with such payment to be made on the first payroll date following the Termination Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;<u>COBRA Benefits</u>. Executive and Executive's qualified beneficiaries, as applicable, shall be entitled to continuation of group health coverage following the Termination Date under the Employer's group health plan, to the extent required under the Consolidated Omnibus Budget Reconciliation Act of 1986, with Executive required to pay the same amount as Executive would pay if Executive continued in employment with the Employer during such period as described in Section 4(e) of the Employment Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;<u>Executive Acknowledgement</u>. Executive acknowledges that, subject to fulfillment of all obligations provided for herein, Executive has been fully compensated by the Employer, including under all applicable laws, and that nothing further is owed to Executive with respect to wages,

------

bonuses, severance, other compensation, or benefits. Executive further acknowledges that the Severance Payments (other than (b) and (c) immediately above) are consideration for Executive's promises contained in this Release and Waiver, and that the Severance Payments are above and beyond any wages, bonuses, severance, other compensation, or benefits to which Executive is entitled from the Employer under the terms of Executive's employment or under any other contract or law that Executive would be entitled to absent execution of this Release and Waiver.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;<u>Withholding</u>. The Severance Payments shall be subject to all taxes and other payroll deductions required by law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.&nbsp;&nbsp;&nbsp;&nbsp;<u>Termination of Benefits</u>.** Except as provided in **Section 2** above or as may be required by law, Executive's participation in all employee benefit (pension and welfare) and compensation plans of the Employer shall cease as of the Termination Date. Nothing contained herein shall limit or otherwise impair Executive's right to receive pension or similar benefit payments that are vested as of the Termination Date under any applicable tax-qualified pension or other plans, pursuant to the terms of the applicable plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.&nbsp;&nbsp;&nbsp;&nbsp;<u>Release of Claims and Waiver of Rights</u>.** Executive, on Executive's own behalf and that of Executive's heirs, executors, attorneys, administrators, successors, and assigns, fully and forever releases and discharges the Company and the Bank, their predecessors, successors, parents, subsidiaries, affiliates, and assigns, and its and their directors, officers, trustees, employees, agents, and shareholders, both in their individual and official capacities, and the current and former trustees and administrators of each retirement and other benefit plan applicable to the employees and former employees of the Company and/or the Bank, both in their official and individual capacities (the "**Releasees**"), from all liability, claims, demands, actions, and causes of action Executive now has, may have had, or may ever have, whether currently known or unknown, relating to acts or omissions as of or prior to Executive's execution of this Release and Waiver, including liability, claims, demands, actions, and causes of action:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;Relating to Executive's employment or other association with the Company and/or the Bank, or the termination of such employment;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;Relating to wages, bonuses, other compensation, or benefits;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;Relating to any employment or change in control contract;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;Relating to any employment law, including

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)The United States and State of Iowa Constitutions,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)The Iowa Civil Rights Act of 1965,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)The Iowa Wage Payment Collection Law,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv)The Civil Rights Act of 1964,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v)The Civil Rights Act of 1991,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi)The Equal Pay Act,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii)The Employee Retirement Income Security Act of 1974,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii)The Age Discrimination in Employment Act (the "**ADEA**"),

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ix)The Older Workers Benefit Protection Act,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x)The Worker Adjustment and Retraining Notification Act,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xi)The Americans with Disabilities Act,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xii)The Family and Medical Leave Act,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xiii)The Occupational Safety and Health Act,

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xiv)The Fair Labor Standards Act,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xv)The National Labor Relations Act,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xvi)The Genetic Information Nondiscrimination Act,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xvii)The Rehabilitation Act,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xviii)The Fair Credit Reporting Act,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xix)Executive Order 11246,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xx)Executive Order 11141, and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xxi)Each other federal, state, and local statute, ordinance, and regulation relating to employment;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;Relating to any right of payment for disability;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;&nbsp;&nbsp;Relating to any statutory or contractual right of payment; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;&nbsp;&nbsp;&nbsp;For relief on the basis of any alleged tort or breach of contract under the common law of the State of Iowa or any other state, including defamation, intentional or negligent infliction of emotional distress, breach of the covenant of good faith and fair dealing, promissory estoppel, and negligence.

Executive acknowledges that statutes exist that render null and void releases and waivers of any claims, rights, demands, liabilities, actions, and causes of action that are unknown to the releasing or waiving party at the time of execution of the release and waiver. Executive waives, surrenders, and shall forego any protection to which Executive would otherwise be entitled by virtue of the existence of any such statutes in any jurisdiction, including the State of Iowa.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.&nbsp;&nbsp;&nbsp;&nbsp;<u>Specific Release of ADEA Claims</u>.** In further consideration of the payments and benefits provided to Executive in this Agreement, Executive hereby irrevocably and unconditionally waives, releases, and discharges the Releasees from any and all claims, whether known or unknown, from the beginning of time through the date of Executive's execution of this Agreement, arising under the ADEA, as amended, and its implementing regulations. By signing this Agreement, Executive hereby acknowledges and confirms that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;Executive has read this Agreement in its entirety and understands all of its terms;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;by this Agreement, Executive has been advised in writing to consult with an attorney, and has consulted with such counsel, who helped to negotiate this Agreement, to the extent Executive has deemed necessary before signing this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;Executive knowingly, freely, and voluntarily agrees to all of the terms and conditions set out in this Agreement including, without limitation, the waiver, release, and covenants contained in it;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;Executive is executing this Agreement, including the waiver and release, in exchange for good and valuable consideration in addition to anything of value to which Executive is otherwise entitled;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;Executive was given at least twenty-one (21) days to consider the terms of this Agreement and consult with an attorney of Executive's choice, although Executive may sign it sooner if desired and changes to this Agreement, whether material or immaterial, do not restart the running of the twenty-one (21)-day period;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;&nbsp;&nbsp;Executive understands that Executive has seven (7) days from the date of signing this Agreement to revoke the release in this paragraph, and may do so by delivering notice of revocation to outside counsel for Employer, Allison N. Powers at Barack, Ferrazzano, Kirschbaum & Nagelberg LLP, by email (<u>allison.powers@bfkn.com</u>) before the end of the seven (7)-day period; provided, however, that Executive understands and acknowledges that should Executive choose to revoke this ADEA release, the Agreement as a whole will fail to become effective and Executive will not receive or be entitled to the Severance Payments described in **Section 2**; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;&nbsp;&nbsp;&nbsp;Executive understands that the release in this paragraph does not apply to rights and claims that may arise after the date on which Executive signs this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.&nbsp;&nbsp;&nbsp;&nbsp;<u>Exclusions from General Release.</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;Excluded from the Release and Waiver are any claims or rights arising pursuant to this Release and Waiver and any claims or rights that cannot be waived by law, as well as Executive's right to file a charge with an administrative agency or participate in any agency investigation, including with the Equal Employment Opportunity Commission. Executive is, however, waiving the right to recover any money in connection with a charge or investigation and the right to recover any money in connection with a charge filed by any other individual or by the Equal Employment Opportunity Commission or any other federal or state agency, except where such waivers are prohibited by law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;Notwithstanding the foregoing, nothing contained in this **Section 6** shall limit Executive's ability to file a charge or complaint with any governmental, administrative or judicial agency (each, an "**Agency**") pursuant to any applicable whistleblower statute or program (each, a "**Whistleblower Program**"). Executive acknowledges that this **Section 6** does not limit (A) his ability to communicate, in connection with a charge or complaint pursuant to any Whistleblower Program with any Agency or otherwise participate in any investigation or proceeding that may be conducted by such Agency, including providing documents or other information, without notice to the Employer, or (B) his right to receive an award for information provided to such Agency pursuant to any Whistleblower Program.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7.&nbsp;&nbsp;&nbsp;&nbsp;<u>Covenant Not to Sue</u>.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;A "covenant not to sue" is a legal term that means Executive promises not to file a lawsuit in court. It is different from the Release and Waiver. Besides waiving and releasing the claims covered by **Section 4** above, Executive shall never sue the Releasees in any forum for any reason covered by the Release and Waiver. Notwithstanding this covenant not to sue, Executive may bring a claim against the Employer to enforce this Release and Waiver or to challenge the validity of this Release and Waiver under the ADEA. If Executive sues any of the Releasees in violation of this Release and Waiver, Executive shall be liable to them for their reasonable attorneys' fees and costs (including the costs of experts, evidence, and counsel) and other litigation costs incurred in defending against Executive's suit. In addition, if Executive sues any of the Releasees in violation of this Release and Waiver, the Employer can require Executive to return all but a sum of $100 of the Severance Payments, which sum is, by itself, adequate consideration for the promises and covenants in this Release and Waiver. In that event, the Employer shall have no obligation to make any further Severance Payments.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;If Executive has previously filed any lawsuit against any of the Releasees, Executive shall immediately take all necessary steps and execute all necessary documents to withdraw or dismiss such lawsuit to the extent Executive's agreement to withdraw, dismiss, or not file a lawsuit would not be a violation of any applicable law or regulation.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8.&nbsp;&nbsp;&nbsp;&nbsp;<u>Non-Disparagement</u>.** At all times following the signing of this Release and Waiver, Executive shall refrain from any vilification of the Employer and shall refrain from making any false, negative, critical or disparaging statements, implied or expressed, concerning the Employer, including management style, methods of doing business, the quality of products and services, role in the community, or treatment of employees. Executive shall do nothing that would damage the Employer's business reputation or good will. Employer, for its part, will not knowingly disparage or make any derogatory statements regarding Executive; provided, however, that the Employer's obligations under this Section 8 shall be limited to communications by the Employer's senior corporate executives having the rank of Senior Vice President or above and members of the board of directors of Employer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9.&nbsp;&nbsp;&nbsp;&nbsp;<u>Restrictive Covenants</u>.** Section 7 of the Employment Agreement (entitled "Restrictive Covenants"), shall continue in full force and effect as if fully restated herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**10.&nbsp;&nbsp;&nbsp;&nbsp;<u>No Admissions</u>.** The Employer denies that any of the Releasees have taken any improper action against Executive, and this Release and Waiver shall not be admissible in any proceeding as evidence of improper action by any of the Releasees.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**11.&nbsp;&nbsp;&nbsp;&nbsp;<u>Confidentiality of Release and Waiver</u>.** Executive shall keep the existence and the terms of this Release and Waiver confidential, except for Executive's immediate family members and Executive's legal and tax advisors in connection with services related hereto and except as may be required by law or in connection with the preparation of tax returns.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**12.&nbsp;&nbsp;&nbsp;&nbsp;<u>Non-Waiver</u>.** The Employer's waiver of a breach of this Release and Waiver by Executive shall not be construed or operate as a waiver of any subsequent breach by Executive of the same or of any other provision of this Release and Waiver.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**13.&nbsp;&nbsp;&nbsp;&nbsp;<u>Governing Law</u>.** This Release and Waiver shall be governed by and construed under the laws of the State of Iowa, without regard to principles of conflict of laws (whether in the State of Iowa or any other jurisdiction) that would cause the application of the laws of any jurisdiction other than the State of Iowa.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**14.&nbsp;&nbsp;&nbsp;&nbsp;<u>Entire Agreement</u>.** This Release and Waiver sets forth the entire agreement of the Parties regarding the subject matter hereof, and shall be final and binding as to all claims that have been or could have been advanced on behalf of Executive pursuant to any claim arising out of or related in any way to Executive's employment with the Employer and the termination of that employment. This Release and Waiver may not be amended, modified, altered, or changed except by express written consent of the Parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**15.&nbsp;&nbsp;&nbsp;&nbsp;<u>Counterparts</u>.** This Release and Waiver 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 agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**16.&nbsp;&nbsp;&nbsp;&nbsp;<u>Successors</u>.** This Release and Waiver shall be binding upon and inure to the benefit of the Employer, its successors and assigns.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**17.&nbsp;&nbsp;&nbsp;&nbsp;<u>Enforcement</u>.** The provisions of this Release and Waiver shall be regarded as divisible and separable and if any provision should be declared invalid or unenforceable by a court of competent jurisdiction, the validity and enforceability of the remaining provisions shall not be affected thereby. If the scope of any restriction or requirement contained in this Release and Waiver is too broad to permit enforcement of such restriction or requirement to its full extent, then such restriction or requirement shall

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be enforced to the maximum extent permitted by law, and Executive hereby consents that any court of competent jurisdiction may so modify such scope in any proceeding brought to enforce such restriction or requirement. In addition, Executive stipulates that breach by Executive of restrictions and requirements under this Release and Waiver will cause irreparable damage to the Releasees in the case of Executive's breach and that the Employer would not have entered into this Release and Waiver without Executive binding Executive to these restrictions and requirements. In the event of Executive's breach of this Release and Waiver, in addition to any other remedies the Employer may have, and without bond and without prejudice to any other rights and remedies that the Employer may have for Executive's breach of this Release and Waiver, the Employer shall be relieved of any obligation to provide Severance Payments and shall be entitled to an injunction to prevent or restrain any such violation by Executive and all persons directly or indirectly acting for or with Executive.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**18.&nbsp;&nbsp;&nbsp;&nbsp;<u>Construction</u>.** In this Release and Waiver, unless otherwise stated, the following uses apply: (a) references to a statute or law refer to the statute or law and any amendments and any successor statutes or laws, and to all regulations promulgated under or implementing the statute or law, as amended, or its successors, as in effect at the relevant time; (b) in computing periods from a specified date to a later specified date, the words "from" and "commencing on" (and the like) mean "from and including," and the words "to," "until," and "ending on" (and the like) mean "to, and including"; (c) references to a governmental or quasi-governmental agency, authority, or instrumentality also refer to a regulatory body that succeeds to the functions of the agency, authority, or instrumentality; (d) the words "include," "includes," and "including" (and the like) mean "include, without limitation," "includes, without limitation," and "including, without limitation," (and the like) respectively; (e) the words "hereof," "herein," "hereto," "hereby," (and the like) refer to this Release and Waiver as a whole; (f) any reference to a document or set of documents, and the rights and obligations of the parties under any such documents, means such document or documents as amended from time to time, and all modifications, extensions, renewals, substitutions, or replacements thereof; (g) all words used shall be construed to be of such gender or number as the circumstances and context require; and (h) the captions and headings of preambles, recitals, sections, and exhibits appearing in or attached to this Release and Waiver have been inserted solely for convenience of reference and shall not be considered a part of this Release and Waiver, nor shall any of them affect the meaning or interpretation of this Release and Waiver or any of its provisions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**19.&nbsp;&nbsp;&nbsp;&nbsp;<u>Future Cooperation</u>.** In connection with any and all claims, disputes, or negotiations, or governmental, internal, or other investigations, lawsuits, or administrative proceedings (the "**Legal Matters**") involving any of the Releasees (collectively, the "**Disputing Parties**" and, individually, each a "**Disputing Party**"), Executive shall make Executive reasonably available, upon reasonable notice from the Employer and without the necessity of subpoena, to provide information and documents, provide declarations and statements regarding a Disputing Party, meet with attorneys and other representatives of a Disputing Party, prepare for and give depositions and testimony, and otherwise cooperate in the investigation, defense, and prosecution of any and all such Legal Matters, as may, in the good faith and judgment of the Employer, be reasonably requested. The Employer shall consult with Executive and make reasonable efforts to schedule such assistance so as not to materially disrupt Executive's business and personal affairs. The Employer shall reimburse all reasonable expenses incurred by Executive in connection with such assistance, including travel, meals, rental car, and hotel expenses, if any; *provided* such expenses are approved in advance by the Employer and are documented in a manner consistent with expense reporting policies of the Employer as may be in effect from time to time.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**20.&nbsp;&nbsp;&nbsp;&nbsp;<u>Representations by Executive</u>.** Executive acknowledges each of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;Executive is aware that this Release and Waiver includes a release of all known and unknown claims.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;Executive is legally competent to execute this Release and Waiver and Executive has not relied on any statements or explanations made by the Employer or its attorneys not otherwise set forth herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;Any modifications, material or otherwise, made to this Release and Waiver shall not restart or affect in any manner the original 21-day consideration period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;Executive has been offered at least 21 days to consider this Release and Waiver.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;Executive has been afforded the opportunity to be advised by legal counsel regarding the terms of this Release and Waiver, including the release and waiver of claims, and to negotiate such terms.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;&nbsp;&nbsp;Executive, without coercion of any kind, freely, knowingly, and voluntarily enters into this Release and Waiver.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;&nbsp;&nbsp;&nbsp;Executive has the right to rescind the Release and Waiver by written notice to the Employer within seven (7) calendar days after Executive has signed this Release and Waiver, and the Release and Waiver shall not become effective or enforceable until seven (7) calendar days after Executive has signed this Release and Waiver, as evidenced by the date set forth below Executive's signature on the signature page hereto. Any such rescission must be in writing and delivered by hand, or sent by U.S. Mail within such seven (7)-day period, to the attention of <u>[&nbsp;&nbsp;&nbsp;&nbsp;]</u>. If delivered by U.S. Mail, the rescission must be: (i) postmarked within the seven (7)-day period and (ii) sent by certified mail, return receipt requested.

**\*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; \*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; \*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; \***

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**IN WITNESS WHEREOF**, the Parties have executed this Release and Waiver as of dates set forth below their respective signatures below.

---

| | | | |
|:---|:---|:---|:---|
| **LINCOLN BANCORP** | **LINCOLN BANCORP** | **LINCOLN BANCORP** | **SEAN WILLETT** |
| **By:** | /s/ Sally A. Hollis | /s/ Sally A. Hollis | Sean M. Willett |
|  |  |  | (Signature) |
| **Name:** | **Name:** | Sally A. Hollis | Sean M. Willett |
|  |  |  | (Print) |
| **Its:** | Executive Chair | Executive Chair | "Executive" |

---

---

| |
|:---|
| **LINCOLN SAVINGS BANK** |
| **By:** |
| **Name:** |
| **Its:** |

---

## Exhibit 10.6

**Exhibit 10.6**

**LINCOLN BANCORP**

**LINCOLN SAVINGS BANK**

**<u>EMPLOYMENT AGREEMENT</u>**

This **Employment Agreement** ("**Agreement**") is made and entered into as of September 9, 2024 (the "**Effective Date**"), by and between **Lincoln Bancorp** (the "**Company**"), **Lincoln Savings Bank** (the "**Bank**," and together with the Company, the "**Employer**"), and Andrew Borrmann ("**Executive**," and together with the Employer, the "**Parties**").

**RECITALS**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**A.&nbsp;&nbsp;&nbsp;&nbsp;**The Employer desires to employ Executive as its Executive Vice President and Chief Financial Officer pursuant to the terms of this Agreement, and Executive desires to be employed pursuant to the terms of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**B.&nbsp;&nbsp;&nbsp;&nbsp;**The Parties have made commitments to each other on a variety of important issues concerning Executive's employment, including the performance that will be expected of Executive, the compensation Executive will be paid, how long and under what circumstances Executive will remain employed and the financial details relating to any decision that either the Employer or Executive may make to terminate this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**C.&nbsp;&nbsp;&nbsp;&nbsp;**The Parties desire to enter into this Agreement as of the Effective Date.

**AGREEMENTS**

In consideration of the foregoing and the mutual promises and covenants of the Parties set forth in this Agreement, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties, intending to be legally bound, hereby expressly covenant and agree as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.&nbsp;&nbsp;&nbsp;&nbsp;<u>Employment Period</u>.** The Employer shall employ Executive, and Executive shall be so employed, during the Employment Period in accordance with the terms of this Agreement. The "**Employment Period**" shall be the period beginning on the Effective Date and ending on December 31, 2026, unless sooner terminated as provided herein. The Employment Period shall automatically be extended for one (1) additional year beginning on January 1, 2027 and on each January 1 thereafter unless either Party notifies the other Party, by written notice delivered no later than ninety (90) days prior to such January 1, that the Employment Period shall not be extended for an additional year. Notwithstanding any provision of this Agreement to the contrary, if a Change in Control occurs during the Employment Period, this Agreement shall remain in effect for the two (2)-year period following the Change in Control and shall then terminate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.&nbsp;&nbsp;&nbsp;&nbsp;<u>Duties</u>.** During the Employment Period, Executive shall devote Executive's full business time, energies and talents to serving as the Executive Vice President and Chief Financial Officer of the Company and the Bank at the direction of the Chief Executive Officer (the "**CEO**") of the Company and the Bank. Executive shall have such duties and responsibilities as may be assigned to Executive from time to time by the CEO, which duties and responsibilities shall be commensurate with Executive's position, shall perform all duties assigned to Executive faithfully and efficiently, subject to the direction of the CEO and shall have such authorities and powers as are inherent to the undertakings applicable to Executive's position and necessary to carry out the responsibilities and duties required of Executive hereunder. The Employer shall permit Executive to perform the duties required by this Agreement from

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his home office in Dunwoody, Georgia or such other location agreed to by the Parties, unless the nature of such duties requires otherwise. Notwithstanding the foregoing provisions of this **Section[2,](#i66767e13920743f39300c050672a5b84_1)**during the Employment Period, Executive may devote reasonable time to activities other than those required under this Agreement, including activities of a charitable, educational, religious or similar nature (including professional associations) to the extent such activities do not, in the reasonable judgment of the CEO, inhibit, prohibit, interfere with or conflict with Executive's duties under this Agreement or conflict in any material way with the business of the Employer or an Affiliate; *provided, however,* that Executive shall not serve on the board of directors of any business (other than the Employer or any Affiliate) or hold any other position with any business without receiving the prior written consent of the CEO.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.&nbsp;&nbsp;&nbsp;&nbsp;<u>Compensation and Benefits</u>.** Subject to the terms of this Agreement, during the Employment Period, while Executive is employed by the Employer, the Employer shall compensate Executive for Executive's services as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(a)&nbsp;&nbsp;&nbsp;&nbsp;***Annual Base Salary.* Executive shall be compensated with a salary at an annual rate of Three Hundred Fifty Thousand Dollars ($350,000) (the "**Annual Base Salary**"), which shall be payable in accordance with the normal payroll practices of the Employer then in effect. Executive's Annual Base Salary shall be reviewed for increases beginning on January 1, 2025, and on each anniversary of such date, but shall not be reduced below its then current level during the Employment Period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(b)&nbsp;&nbsp;&nbsp;&nbsp;***Annual Incentive Bonus.* At the sole discretion of the Company Board, Executive shall be eligible to receive performance-based annual incentive bonuses (each, the "**Incentive Bonus**") from the Employer for each fiscal year ending during the Employment Period. The target annual bonus shall be 30% of Executive's then current base salary, based on the achievement of annual individual performance objectives and performance objectives of the Employer, established by the Company Board in good faith consultation with the Executive. Any such Incentive Bonus shall be paid to Executive as soon as reasonably practicable following the completion of the respective fiscal year audit by the Employer's auditor; provided that, the Executive must be actively employed on the payment date for such Incentive Bonus. Executive's Incentive Bonus for 2024, if any, will be pro-rated based on Executive's services to the Bank for 2024, as determined by the Company Board.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(c)&nbsp;&nbsp;&nbsp;&nbsp;***Other Benefits*. During the Employment Period, Executive and Executive's dependents, as the case may be, shall be eligible to participate, subject to the terms thereof, in all pension and similar benefit plans (including qualified, non-qualified and supplemental plans) and all medical, dental, vision, disability, group and executive life, accidental death and travel accident insurance and other similar welfare benefit plans and programs of the Employer as may be in effect from time to time with respect to senior executives employed by the Employer, on as favorable a basis as other similarly situated senior executives.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.&nbsp;&nbsp;&nbsp;&nbsp;<u>Rights upon Termination</u>.** Executive's right to benefits, if any, for periods after the Termination Date shall be determined in accordance with this **Section 4:**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(a)&nbsp;&nbsp;&nbsp;&nbsp;<u>Minimum Benefits</u>.** If the Termination Date occurs during the Employment Period for any reason, Executive shall be entitled to the Minimum Benefits in addition to any other benefits to which Executive may be entitled under the following provisions of this **Section[4](#i66767e13920743f39300c050672a5b84_1)**or the express terms of any employee benefit plan or as required by law. Any benefits to be provided to Executive pursuant to this **Section[4(a)](#i66767e13920743f39300c050672a5b84_1)**shall be provided within thirty (30) days after the Termination Date.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(b)&nbsp;&nbsp;&nbsp;&nbsp;<u>Termination for Cause; Death; Disability; Voluntary Resignation; Non-Renewal</u>.** If the Termination Date occurs during the Employment Period and is a result of a Termination for Cause, Executive's death or Disability, or a termination by Executive other than for Good Reason, or if this Agreement expires due to notice of non-renewal by either Party as provided under **Section[1](#i66767e13920743f39300c050672a5b84_1)**or at the end of a Covered Period, then, other than the Minimum Benefits, Executive shall have no right to benefits under this Agreement (and the Employer and its Affiliates shall have no obligation to provide any such benefits) for periods after the Termination Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(c)&nbsp;&nbsp;&nbsp;&nbsp;<u>Termination other than a Termination for Cause or a Termination for Good</u> <u>Reason</u>.** If, other than during a Covered Period, Executive's employment is subject to a Termination, then, in addition to the Minimum Benefits, subject to the Release requirements of **Section 5**, the Employer shall provide Executive with the following benefits:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;The Employer shall pay Executive a lump sum payment in an amount equal to the Severance Amount on the first Employer payroll date that occurs on or following the sixtieth (60<sup>th</sup>) day following the Termination Date, but in no event later than 2 ½ months following the end of the year in which the Termination Date occurs.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp;Executive (and Executive's dependents, as may be applicable) shall be entitled to the benefits described in **Section[4(e).](#i66767e13920743f39300c050672a5b84_1)**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(d)&nbsp;&nbsp;&nbsp;&nbsp;<u>Termination upon a Change in Control</u>.** If, during a Covered Period, Executive's employment is subject to a Termination, then, in addition to Minimum Benefits, subject to the Release requirements of **Section 5**, the Employer shall provide Executive with the following benefits:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;On the sixtieth (60th) day following the Termination Date, the Employer shall pay Executive a lump sum payment in an amount equal to the Severance Amount.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp;Executive (and Executive's dependents, as may be applicable) shall be entitled to the benefits provided in **Section[4(e).](#i66767e13920743f39300c050672a5b84_1)**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(e)&nbsp;&nbsp;&nbsp;&nbsp;<u>Medical, Dental and Vision Benefits</u>.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;If Executive's employment with the Employer is subject to a Termination, then, to the extent that Executive or any of Executive's dependents may be covered under the terms of any medical, dental or vision plans maintained for active employees of the Employer or any Affiliate, the Employer shall provide Executive and those dependents with Consolidated Omnibus Budget Reconciliation Act of 1985, as amended ("**COBRA**") coverage equivalent to the coverage received while Executive was employed with the Employer for as long as Executive is eligible for and elects coverage under the health care continuation rules of COBRA. For a period of twelve (12) months, Executive shall be required to pay the same amount as Executive would pay if Executive continued in employment with the Employer during such period and thereafter Executive shall be responsible for the full cost of such continued coverage. Such coverage shall be provided only to the extent that it does not result in any additional tax or other penalty being imposed on the Employer or any Affiliate. In the event Executive or any of Executive's dependents is or becomes eligible for coverage under the terms of any other medical, dental or vision plan of a subsequent employer with plan benefits that are comparable to Employer (or any Affiliate) plan benefits, the Employer's obligations under this **Section[4(e)](#i66767e13920743f39300c050672a5b84_1)**shall cease with respect to the eligible Executive and dependents. Executive and Executive's dependents must notify the Employer of any subsequent employment and eligibility for such comparable coverage.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(f)&nbsp;&nbsp;&nbsp;&nbsp;<u>Other Benefits</u>.** Executive's rights following a termination of employment with the Employer and its Affiliates for any reason with respect to any benefits, incentives or awards provided to Executive pursuant to the terms of any plan, program or arrangement sponsored or maintained by the Employer or an Affiliate, whether tax-qualified or not, which are not specifically addressed herein, shall be subject to the terms of such plan, program or arrangement, and this Agreement shall have no effect upon such terms except as specifically provided herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(g)&nbsp;&nbsp;&nbsp;&nbsp;<u>Removal from any Boards and Positions</u>.** Upon Executive's termination of employment for any reason under this Agreement, Executive shall be deemed to have also resigned (i) if a member, from the Company Board, the Board, and the board of directors of any Affiliate and any other board to which Executive has been appointed or nominated by or on behalf of the Company, (ii) from each position with the Company, the Bank, or any Affiliate, including as an officer of the Company, the Bank, or any of their Affiliates and (iii) as a fiduciary of any employee benefit plan of the Company or the Bank.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.&nbsp;&nbsp;&nbsp;&nbsp;<u>Release</u>.** Notwithstanding any provision of this Agreement to the contrary, no payments or benefits shall be owed to Executive under **Sections[4(c),](#i66767e13920743f39300c050672a5b84_1) [4(d),](#i66767e13920743f39300c050672a5b84_1)**o[r](#i66767e13920743f39300c050672a5b84_1)**[4(e)](#i66767e13920743f39300c050672a5b84_1)**unless Executive executes and delivers to the Employer a Release within forty-five (45) days following the Termination Date, and any applicable revocation period has expired prior to the sixtieth (60th) day following the Termination Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.&nbsp;&nbsp;&nbsp;&nbsp;<u>Excise Tax Limitation</u>.** It is the intention of the Parties that no portion of any payment under this Agreement, or payments to or for the benefit of Executive under any other agreement or plan, be deemed to be an excess parachute payment, as such term is defined under Code Section 280G and the regulations promulgated thereunder. The present value of payments to or for the benefit of Executive in the nature of compensation, receipt of which is contingent on a Change in Control, and to which Code Section 280G applies shall not exceed an amount equal to $1.00 less than the maximum amount that the Employer may pay without loss of deduction under Code Section 280G(a). Any modification, reduction or elimination of payments necessary to accomplish the foregoing shall be done in accordance with applicable provisions of Code Section 409A.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7.&nbsp;&nbsp;&nbsp;&nbsp;<u>Restrictive Covenants</u>.** Executive acknowledges that Executive has been and will continue to be provided intimate knowledge of the business practices, trade secrets, and other confidential and proprietary information of the Employer and its Affiliates (including the Confidential Information), which, if exploited by Executive, would seriously, adversely, and irreparably affect the interests of the Employer and its Affiliates and the ability of each to continue its business and, therefore, Executive hereby agrees to be bound by the restrictions contained in this **Section[7](#i66767e13920743f39300c050672a5b84_1)**(the "**Restrictive Covenants**").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(a)&nbsp;&nbsp;&nbsp;&nbsp;<u>Confidential Information</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;Executive acknowledges that, during the course of Executive's employment with the Employer, Executive may produce and have access to confidential and/or proprietary, non-public information concerning the Employer or its Affiliates, including marketing materials, financial and other information concerning customers and prospective customers, customer lists, records, data, trade secrets, proprietary business information, pricing and profitability information and policies, strategic planning, commitments, plans, procedures, litigation, pending litigation and other information not generally available to the public (collectively, "**Confidential Information**"). Executive shall not directly or indirectly use, disclose, copy or make lists of Confidential Information for the benefit of anyone other than the Employer, either during or after Executive's employment with the Employer, except to the extent such disclosure is authorized in writing by the Employer, required by law or any competent administrative agency or judicial authority, or otherwise as reasonably necessary or

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appropriate in connection with the performance by Executive of Executive's duties hereunder. If Executive receives a subpoena or other court order or is otherwise required by law to provide information to a governmental authority or other person concerning the activities of the Employer or any of its Affiliates, or Executive's activities in connection with the business of the Employer or any of its Affiliates, Executive shall immediately notify the Employer of such subpoena, court order or other requirement and deliver forthwith to the Employer a copy thereof and any attachments and non-privileged correspondence related thereto. Executive shall take reasonable precautions to protect against the inadvertent disclosure of Confidential Information. Executive shall abide by the Employer's reasonable policies, as in effect from time to time, respecting avoidance of interests conflicting with those of the Employer and its Affiliates.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp;Executive shall not be held criminally or civilly liable under any federal or state trade secret law for the disclosure of a trade secret that (A) is made (1) in confidence to a federal, state, or local government official, either directly or indirectly, or to an attorney, and (2) solely for the purpose of reporting or investigating a suspected violation of law; or (B) is made in a complaint or other document filed in a lawsuit or other proceeding, if such filing is made under seal. Accordingly, Executive has the right to disclose in confidence trade secrets to federal, state, and local government officials, or to an attorney, for the sole purpose of reporting or investigating a suspected violation of law. Executive also has the right to disclose trade secrets in a document filed in a lawsuit or other proceeding, but only if the filing is made under seal and protected from public disclosure. Nothing in this Agreement is intended to conflict with 18 U.S.C. § 1833(b) or create liability for disclosures of trade secrets that are expressly allowed by 18 U.S.C. § 1833(b). Nothing in this Agreement shall be construed to authorize, or limit liability for, an act that is otherwise prohibited by law, such as the unlawful access of material by unauthorized means.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;&nbsp;&nbsp;&nbsp;Nothing contained in this **Section[7(a)](#i66767e13920743f39300c050672a5b84_1)**shall limit Executive's ability to file a charge or complaint with any governmental, administrative or judicial agency (each, an "**Agency**") pursuant to any applicable whistleblower statute or program (each, a "**Whistleblower Program**"). Executive acknowledges that this **Section[7(a)](#i66767e13920743f39300c050672a5b84_1)**does not limit (i) Executive's ability to communicate, in connection with a charge or complaint pursuant to any Whistleblower Program with any Agency or otherwise participate in any investigation or proceeding that may be conducted by such Agency, including providing documents or other information, without notice to the Employer, or (ii) Executive's right to receive an award for information provided to such Agency pursuant to any Whistleblower Program.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(b)&nbsp;&nbsp;&nbsp;&nbsp;<u>Documents and Property</u>.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;All records, files, documents and other materials or copies thereof relating to the business of the Employer or its Affiliates that Executive prepares, receives or uses shall be and remain the sole property of the Employer and, other than in connection with the performance by Executive of Executive's duties hereunder, shall not be removed from the premises of the Employer or any of its Affiliates without the Employer's prior written consent, and shall be promptly returned to the Employer upon Executive's termination of employment for any reason, together with all copies (including copies or recordings in electronic form), abstracts, notes or reproductions of any kind made from or about the records, files, documents or other materials.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp;Executive acknowledges that Executive's access to and permission to use the Employer's and any Affiliate's computer systems, networks and equipment, and all Employer and Affiliate information contained therein, is restricted to legitimate business purposes on behalf of the Employer. Any other access to or use of such systems, network, equipment and information is without

------

authorization and is prohibited except that Executive may use an Employer-provided computer for reasonable personal use in accordance with the Employer's technology use policy as in effect from time to time. The restrictions contained in this **Section [7(b)](#i66767e13920743f39300c050672a5b84_1)**extend to any personal computers or other electronic devices of Executive that are used for business purposes relating to the Employer or any Affiliate. Executive shall not transfer any Employer or Affiliate information to any personal computer or other electronic device that is not otherwise used for any business purpose relating to the Employer. Upon the termination of Executive's employment with the Employer for any reason, Executive's authorization to access and permission to use the Employer's and any Affiliate's computer systems, networks and equipment, and any Employer and Affiliate information contained therein, shall cease.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(c)&nbsp;&nbsp;&nbsp;&nbsp;<u>Non-Competition and Non-Solicitation</u>.** The Parties have agreed that the primary service area of the Employer's operations, including lending and deposit taking functions, in which Executive will actively participate extends to an area that encompasses a fifty (50)-mile radius from each Bank branch and the Company's headquarters (the "**Restrictive Area**"). Therefore, as an essential ingredient of and in consideration of this Agreement and Executive's employment with the Employer, Executive, during Executive's employment with the Employer and for a period of twelve (12) months immediately following the termination of Executive's employment for any reason (the "**Restrictive Period**"), whether such termination occurs during the Employment Period or thereafter, shall not directly or indirectly, and whether remotely or while physically present, do any of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;Engage or invest in, own, manage, operate, finance, control, participate in the ownership, management, operation or control of, be employed by, associated with or in any manner connected with, serve as a director, officer or consultant to, lend Executive's name or any similar name to, lend Executive's credit to or render services or advice to, in each case in the capacity that Executive provided services to the Employer or any Affiliates, any Financial Institution or Fintech Organization, excluding any Fintech Organization which, during the thirty-six (36) month period immediately preceding the Termination Date, had no significant business relationship, dealings or interactions with the Employer or any Affiliate; *provided, however*, that the ownership by Executive of shares of the capital stock of any Financial Institution or Fintech Organization, which shares are listed on a securities exchange or quoted on the National Association of Securities Dealers Automated Quotation System and which do not represent more than five percent (5%) of the institution's outstanding capital stock, shall not violate any terms of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp;Either for Executive or any Financial Institution or Fintech Organization: (A) induce or attempt to induce any employee of the Employer or any of its Affiliates with whom Executive had significant contact to leave the employ of the Employer or any of its Affiliates; (B) in any way interfere with the relationship between the Employer or any of its Affiliates and any employee of the Employer or any of its Affiliates with whom Executive had significant contact; or (C) induce or attempt to induce any customer, supplier, licensee or business relation of the Employer or any of its Affiliates with whom Executive had significant contact to cease doing business with the Employer or any of its Affiliates or in any way interfere with the relationship between the Employer or any of its Affiliates and their respective customers, suppliers, licensees or business relations with whom Executive had significant contact; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;&nbsp;&nbsp;&nbsp;Either for Executive or any Financial Institution or any Fintech Organization, solicit the business of any person or entity known to Executive to be a customer of the Employer or any of its Affiliates, where Executive had significant contact with such person or entity, with respect to products, activities or services that compete in whole or in part with the products, activities or services of the Employer or any of its Affiliates.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(d)&nbsp;&nbsp;&nbsp;&nbsp;<u>Remedies for Breach of Restrictive Covenant</u>.** Executive has reviewed the provisions of this Agreement with legal counsel or has been given adequate opportunity to seek such counsel, and Executive acknowledges that the covenants contained in this **Section 7** are reasonable with respect to their duration, geographical area and scope. Executive further acknowledges that the restrictions contained in this **Section[7](#i66767e13920743f39300c050672a5b84_1)**are reasonable and necessary for the protection of the legitimate business interests of the Employer, that they create no undue hardships, that any violation of these restrictions would cause substantial injury to the Employer and such interests, and that such restriction s were a material inducement to the Employer to enter into this Agreement. In the event of any violation or threatened violation of these restrictions, the Employer, in addition to and not in limitation of, any other rights, remedies or damages available to the Employer under this Agreement or otherwise at law or in equity, shall be entitled to preliminary and permanent injunctive relief to prevent or restrain any such violation by Executive and any and all persons directly or indirectly acting for or with Executive, as the case may be.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(e)&nbsp;&nbsp;&nbsp;&nbsp;<u>Other Agreements</u>.** In the event of the existence of any other agreement between the Parties that (a) is in effect during the Restrictive Period, and (b) contains restrictive covenants that conflict with any of the provisions of this **Section[7,](#i66767e13920743f39300c050672a5b84_1)** then the more restrictive of such provisions from such agreements shall control for the period during which such agreements would otherwise be in effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8.&nbsp;&nbsp;&nbsp;&nbsp;<u>Regulatory Suspension and Termination</u>.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(a)&nbsp;&nbsp;&nbsp;&nbsp;**If Executive is suspended from office and/or temporarily prohibited from participating in the conduct of the affairs of the Employer by a notice served under Section 8(e)(3) (12 U.S.C. § 1818(e)(3)) or 8(g) (12 U.S.C. § 1818(g)) of the Federal Deposit Insurance Act, as amended ("**FDIA**"), the Employer's obligations under this Agreement shall be suspended as of the date of service, unless stayed by appropriate proceedings. If the charges in the notice are dismissed, the Employer may in its discretion: (i) pay Executive all or part of the compensation withheld while the obligations herein were suspended; and (ii) reinstate (in whole or in part) any of the obligations which were suspended.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(b)&nbsp;&nbsp;&nbsp;&nbsp;**If Executive is removed and/or permanently prohibited from participating in the conduct of the affairs of the Employer by an order issued under Section 8(e) (12 U.S.C. § 1818(e)) or 8(g) (12 U.S.C. § 1818(g)) of the FDIA, all obligations of the Employer under this Agreement shall terminate as of the effective date of the order, but vested rights of the Parties shall not be affected.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(c)&nbsp;&nbsp;&nbsp;&nbsp;**If the Employer is in default as defined in Section 3(x) (12 U.S.C. § 1813(x)(1)) of the FDIA, all obligations of the Employer under this Agreement shall terminate as of the date of default, but this subsection shall not affect any vested rights of the Parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(d)&nbsp;&nbsp;&nbsp;&nbsp;**All obligations of the Employer under this Agreement shall be terminated, except to the extent it is determined by the Federal Deposit Insurance Corporation (the "**FDIC**") that continuation of the Agreement is necessary for the continued operation of the institution, at the time the FDIC enters into an agreement to provide assistance to or on behalf of the Employer under the authority contained in Section 13(c) (12 U.S.C. § 1823(c)) of the FDIA, or when the Employer is determined by the FDIC to be in an unsafe or unsound condition. Any rights of the Parties that have already vested, however, shall not be affected by such action.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(e)&nbsp;&nbsp;&nbsp;&nbsp;**Any payments made to Executive pursuant to this Agreement, or otherwise, are subject to and conditioned upon their compliance with Section 18(k) (12 U.S.C. § 1828(k)) of the FDIA.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9.&nbsp;&nbsp;&nbsp;&nbsp;<u>Notices</u>.** Notices and all other communications under this Agreement shall be in writing and shall be deemed given when mailed by United States registered or certified mail, return receipt requested, postage prepaid, addressed as follows:

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| |
|:---|
| If to the Employer: |
| Lincoln Savings Bank |
| Attention: Jim Denholm |
| Executive Vice President and |
| Chief People Officer |
| 360 Westfield Avenue, Suite 6 |
| Waterloo, IA 50701 |
| with a copy to the following counsel for Employer: |
| Allison N. Powers |
| Barack Ferrazzano Kirschbaum & Nagelberg LLP |
| 200 West Madison Street, Suite 3900 |
| Chicago, IL 60606 |
| <u>allison.powers@bfkn.com</u> |

---

If to Executive: Executive's last address on file with the Employer or to such other address as either Party may furnish to the other in writing, except that notices of changes of address shall be effective only upon receipt.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**10.&nbsp;&nbsp;&nbsp;&nbsp;<u>Applicable Law; Arbitration; Attorneys' Fees</u>.** All questions concerning the construction, validity and interpretation of this Agreement and the performance of the obligations imposed by this Agreement shall be governed by the internal laws of the State of New York applicable to agreements made and wholly to be performed in such state without regard to conflicts of law provisions of any jurisdiction. The Parties agree that any and all disputes arising out of the terms of this Agreement, Executive's employment Employer, Executive's service as an officer or director of the Employer, or Executive's compensation and benefits, their interpretation, and any of the matters herein released, will be subject to binding arbitration in Atlanta, Georgia before the Judicial Arbitration and Mediation Services, Inc., under the American Arbitration Association's National Rules for the Resolution of Employment Disputes, supplemented by applicable Georgia rules of civil procedure. The Parties agree that the prevailing party in any arbitration will be entitled to injunctive relief in any court of competent jurisdiction to enforce the arbitration award. The Parties agree to waive their right to have any dispute between them resolved in a court of law by a judge or jury. This paragraph will not prevent either party from seeking injunctive relief (or any other provisional remedy) from any court having jurisdiction over the Parties and the subject matter of their dispute relating to Executive's obligations under this Agreement and any confidentiality agreement by and between Executive and the Company or Bank. Any such action or proceeding by either of the Parties for injunctive or provisional relief shall be brought only in the state courts in the 8th Judicial District of the New York Supreme Court or in the federal United States District Court for the Western District of New York.

Should any Party institute any arbitration or seek injunctive or provisional relief from a court to enforce, interpret, or apply any provision of this Agreement, the Parties agree that the prevailing party shall be entitled to seek reimbursement from the non-prevailing party of their recoverable costs and

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expenses, including, but not limited to, reasonable attorneys' fees, but all such costs and/or fees shall be awarded in the arbitrator's or judge's sole discretion. The arbitrator or judge shall base their determination of which party prevailed upon an assessment of which party's arguments or positions could fairly be said to have prevailed over the other party's arguments or positions on major disputed issues in the action, accounting for the possibility that in some circumstances it is appropriate to conclude that neither party prevailed. Such assessment should include evaluation of the following: the amount of the net recovery and/or value of the object of the action to the prevailing party; whether the prevailing party could have secured complete relief without also pursuing claims for equitable or declaratory relief; the primary issues disputed by the parties and the relative value or importance of resolving such issues to either the prevailing party or the non-prevailing party; whether the amount of the award comprises a significant percentage of the amount sought by the prevailing party where relief is sought in the form of damages; and the most recent settlement positions of the parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**11.&nbsp;&nbsp;&nbsp;&nbsp;<u>Entire Agreement</u>.** This Agreement constitutes the entire agreement between the Parties concerning the subject matter hereof, and supersedes all prior negotiations, undertakings, agreements and arrangements with respect thereto, whether written or oral. If a court of competent jurisdiction determines that any provision of this Agreement is invalid or unenforceable, then the invalidity or unenforceability of that provision shall not affect the validity or enforceability of any other provision of this Agreement and all other provisions shall remain in full force and effect. The various covenants and provisions of this Agreement are intended to be severable and to constitute independent and distinct binding obligations. Without limiting the generality of the foregoing, if the scope of any covenant contained in this Agreement is too broad to permit enforcement to its full extent, such covenant shall be enforced to the maximum extent permitted by law, and such scope may be judicially modified accordingly.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**12.&nbsp;&nbsp;&nbsp;&nbsp;<u>Withholding of Taxes</u>.** The Employer may withhold from any benefits payable under this Agreement all federal, state, city and other taxes as may be required pursuant to any law, governmental regulation or ruling.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**13.&nbsp;&nbsp;&nbsp;&nbsp;<u>No Assignment</u>.** Executive's rights to receive benefits under this Agreement shall not be assignable or transferable whether by pledge, creation of a security interest or otherwise, other than a transfer by will or by the laws of descent or distribution. In the event of any attempted assignment or transfer contrary to this **Section 13,** the Employer shall have no liability to pay any amount so attempted to be assigned or transferred. This Agreement shall inure to the benefit of and be enforceable by Executive's personal or legal representatives, executors, administrators, successors, heirs, distributees, devisees and legatees.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**14.&nbsp;&nbsp;&nbsp;&nbsp;<u>Successors</u>.** This Agreement shall be binding upon and inure to the benefit of the Employer, its successors and assigns.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**15.&nbsp;&nbsp;&nbsp;&nbsp;<u>Amendment</u>.** This Agreement may not be amended or modified except by written agreement signed by the Parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**16.&nbsp;&nbsp;&nbsp;&nbsp;<u>Code Section 409A</u>.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(a)&nbsp;&nbsp;&nbsp;&nbsp;**This Agreement may be amended to the extent necessary (including retroactively) by the Employer to avoid the application of taxes or interest under Code Section 409A, while maintaining to the maximum extent practicable the original intent of this Agreement. If it is determined that any payments or benefits due hereunder upon Executive's termination of employment are subject to Code Section 409A, no such payments or benefits shall be payable unless such termination constitutes a "separation from service" within the meaning of Code Section 409A. To the extent any

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reimbursements or in-kind benefit payments under this Agreement are subject to Code Section 409A, such reimbursements and in-kind benefit payments shall be made in accordance with Treasury Regulation Section 1.409A-3(i)(1)(iv). This **Section 16** shall not be construed as a guarantee of any particular tax effect for Executive's benefits under this Agreement and the Employer does not guarantee that any such benefits will satisfy the provisions of Code Section 409A or any other provision of the Code.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(b)&nbsp;&nbsp;&nbsp;&nbsp;**Notwithstanding any provision of this Agreement to the contrary, if Executive is determined to be a "specified employee" (as defined in Code Section 409A) as of the Termination Date, then the six (6)-month payment delay rule under Code Section 409A shall apply as set forth therein. All delayed payments shall be accumulated and paid in a lump-sum payment as of the first day of the seventh month following the Termination Date (or, if earlier, as of Executive's death). Any portion of the benefits hereunder that were not otherwise due to be paid during the six (6)-month period following the Termination Date shall be paid to Executive in accordance with the payment schedule established herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**17.&nbsp;&nbsp;&nbsp;&nbsp;<u>Definitions</u>.** As used in this Agreement, the terms defined in this **Section 17** have the meanings set forth below.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(a)&nbsp;&nbsp;&nbsp;&nbsp;**"**Agency**" has the meaning set forth in **Section[7(a)(iii).](#i66767e13920743f39300c050672a5b84_1)**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(b)&nbsp;&nbsp;&nbsp;&nbsp;**"**Agreement**" has the meaning set forth in the Preamble.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(c)&nbsp;&nbsp;&nbsp;&nbsp;**"**Affiliate**" means each company, corporation, partnership, financial institution, or other entity that, directly or indirectly, is controlled by, controls, or is under common control with, the Employer, where "control" means (i) the ownership of fifty-one percent (51%) or more of the Voting Securities or other voting or equity interests of any corporation, partnership, joint venture or other business entity or (ii) the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of such corporation, partnership, joint venture or other business entity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(d)&nbsp;&nbsp;&nbsp;&nbsp;**"**Annual Base Salary**" has the meaning set forth in **Section[3.](#i66767e13920743f39300c050672a5b84_1)**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(e)&nbsp;&nbsp;&nbsp;&nbsp;**"**Average Incentive Bonus**" means the average of Incentive Bonuses determined for the immediately preceding three completed fiscal year performance periods of the Employer; *provided, however*, that if an Incentive Bonus has not yet been determined for a previously completed fiscal year performance period as of the Termination Date, then target Incentive Bonus shall be used with respect to such fiscal year for purposes of calculating the Average Incentive Bonus. For purposes of calculating the Average Incentive Bonus, fiscal years for which no bonus was determined to have been earned shall be included in the calculation of the three-year average; *provided, however*, if Executive is employed for fewer than three completed fiscal year performance periods, the Average Incentive Bonus will be based solely on performance for one or two such periods, as appropriate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(f)&nbsp;&nbsp;&nbsp;&nbsp;**"**Bank**" has the meaning set forth in the Preamble.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(g)&nbsp;&nbsp;&nbsp;&nbsp;**"**Base Compensation**" means the amount equal to the sum of (i) the greater of Executive's then-current Annual Base Salary or Executive's Annual Base Salary as of the date one day prior to the Change in Control, and (ii) the Average Incentive Bonus.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(h)&nbsp;&nbsp;&nbsp;&nbsp;**"**Board**" means the board of directors of the Bank.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(i)&nbsp;&nbsp;&nbsp;&nbsp;**"**CEO**" has the meaning set forth in **Section[2.](#i66767e13920743f39300c050672a5b84_1)**

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(j)&nbsp;&nbsp;&nbsp;&nbsp;**"**Change in Control**" means:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;the consummation of the acquisition by any "person" (as such term is defined in Section 13(d) or 14(d) of the Securities Exchange Act of 1934 (the "**1934 Act**")) of "beneficial ownership" (within the meaning of Rule 13d-3 promulgated under the 1934 Act) of fifty percent (50%) or more of the combined voting power of the then outstanding Voting Securities of the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp;during any 12-month period, the individuals who are members of the Incumbent Board cease for any reason to a majority of the Company Board, unless either the election of, or the nomination for election by, the shareholders of any new director was approved by a vote of a majority of the Company Board, in which case such new director shall, for purposes of this Agreement, be considered as a member of the Incumbent Board; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;&nbsp;&nbsp;&nbsp;the consummation by the Company of: (A) a merger or consolidation if the shareholders immediately before such merger or consolidation do not, as a result of such merger or consolidation, own, directly or indirectly, more than fifty percent (50%) of the combined voting power of the then outstanding Voting Securities of the entity resulting from such merger or consolidation in substantially the same proportion as their ownership of the combined voting power of the Voting Securities of the Company outstanding immediately before such merger or consolidation; or (B) a complete liquidation or dissolution or an agreement for the sale or other disposition of all or substantially all of the assets of the Company.

Notwithstanding any provision in this definition to the contrary, a Change in Control shall not be deemed to occur unless the Change in Control constitutes a "change in control event" as such term is defined by Code Section 409A. Notwithstanding any provision in this definition to the contrary, a Change in Control shall not be deemed to occur solely because fifty percent (50%) or more of the combined voting power of the then outstanding Voting Securities of the Company are acquired by (A) a trustee or other fiduciary holding securities under one (1) or more employee benefit plans maintained for employees of the Company or any Affiliate of either or (B) any corporation that, immediately prior to or following such acquisition, is owned directly or indirectly by the shareholders of the Company immediately prior to such acquisition in the same proportion as their ownership of stock of the Company immediately prior to such acquisition.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(k)&nbsp;&nbsp;&nbsp;&nbsp;**"**COBRA**" has the meaning set forth in **Section[4(e).](#i66767e13920743f39300c050672a5b84_1)**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(l)&nbsp;&nbsp;&nbsp;&nbsp;**"**Code**" means the Internal Revenue Code of 1986, as amended.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(m)&nbsp;&nbsp;&nbsp;&nbsp;**"**Company**" has the meaning set forth in the Preamble.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(n)&nbsp;&nbsp;&nbsp;&nbsp;**"**Company Board**" means the board of directors of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(o)&nbsp;&nbsp;&nbsp;&nbsp;**"**Confidential Information**" has the meaning set forth in **Section[7(a)(i).](#i66767e13920743f39300c050672a5b84_1)**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(p)&nbsp;&nbsp;&nbsp;&nbsp;**"**Covered Period**" means the period beginning six (6) months prior to a Change in Control and ending twelve (12) months after the Change in Control.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(q)&nbsp;&nbsp;&nbsp;&nbsp;**"**Disability**" means that (i) Executive is unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment that can be expected to result in death or can be expected to last for a continuous period of not less than twelve (12) months, or (ii) Executive is, by reason of any medically determinable physical or mental impairment that can be expected to result in death or can be expected to last for a continuous period of not less than twelve

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(12) months, receiving income replacement benefits for a period of not less than three (3) consecutive months under an accident or health plan covering employees of the Employer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(r)&nbsp;&nbsp;&nbsp;&nbsp;**"**Effective Date**" has the meaning set forth in the Preamble.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(s)&nbsp;&nbsp;&nbsp;&nbsp;**"**Employer**" has the meaning set forth in the Preamble.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(t)&nbsp;&nbsp;&nbsp;&nbsp;**"**Employment Period**" has the meaning set forth in **Section[1.](#i66767e13920743f39300c050672a5b84_1)**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(u)&nbsp;&nbsp;&nbsp;&nbsp;**"**Executive**" has the meaning set forth in the Preamble.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(v)&nbsp;&nbsp;&nbsp;&nbsp;**"**FDIA**" has the meaning set forth in **Section 8(a).**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(w)&nbsp;&nbsp;&nbsp;&nbsp;**"**FDIC**" has the meaning set forth in **Section 8(d).**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(x)&nbsp;&nbsp;&nbsp;&nbsp;**"**Financial Institution**" means any person, firm, partnership, corporation or trust that owns, operates or is in the process of forming a bank, savings bank, savings and loan association, credit union or similar financial institution, or any unit, division or subsidiary of any of the foregoing, with an office located, or to be located at an address identified in a filing with any regulatory authority, within the Restrictive Area.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(y)&nbsp;&nbsp;&nbsp;&nbsp;**"**Fintech Organization**" means any person, firm, partnership, corporation or trust that is engaged in the business of, or is preparing to engage in, designing, implementing or delivering any technology that seeks to improve and automate the delivery and use of financial services, or any unit division or subsidiary of the foregoing, with an office located, or to be located at an address identified in any formation or organizing documentation, within the United States*.*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(z)&nbsp;&nbsp;&nbsp;&nbsp;**"**Good Reason**" means the occurrence of one (1) of the following events, unless Executive agrees in writing that such event shall not constitute Good Reason:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;an adverse change in the nature, scope or status of Executive's position, authorities or duties from those in effect in accordance with **Section[2](#i66767e13920743f39300c050672a5b84_1)**immediately following the Effective Date, or if applicable and greater, immediately prior to the Covered Period; *provided, however*, that a diminution of Executive's duties and responsibilities (including a change of Executive's title) by virtue of the Employer becoming a subsidiary, affiliate, division or other similar operating entity of a larger financial institution shall not constitute Good Reason where Executive continues to have similar duties and responsibilities (as determined as of the effective date of the Change in Control) with respect to such subsidiary, affiliate, division or other similar operating entity, and such subsidiary, affiliate, division, or other similar operating entity is of similar size to the Employer (as measured as of the effective date of the Change in Control);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp;an involuntary material reduction of Executive's compensation and benefits measured as of the Effective Date, or if applicable and greater, immediately prior to the Covered Period, *provided* that such reduction is greater than ten percent (10%) of the value as of the Effective Date or immediately prior to the Covered Period, as applicable, and is not part of an overall adjustment in benefits for all employees of the Employer;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;&nbsp;&nbsp;&nbsp;relocation of Executive's primary place of employment by more than fifty (50) miles from Executive's primary place of employment immediately following the Effective Date;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv)&nbsp;&nbsp;&nbsp;&nbsp;failure by an acquiror to assume this Agreement at the time of a Change in Control; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v)&nbsp;&nbsp;&nbsp;&nbsp;a material breach by the Employer of this Agreement.

Notwithstanding any provision in this definition to the contrary, prior to Executive's Termination for Good Reason, Executive must give the Employer written notice of the existence of any condition set forth in clause (i) – (v) immediately above within ninety (90) days of its initial existence and the Employer shall have thirty (30) days from the date of such notice in which to cure the condition giving rise to Good Reason, if curable. If, during such thirty (30)-day period, the Employer cures the condition giving rise to Good Reason, the condition shall not constitute Good Reason. Further notwithstanding any provision in this definition to the contrary, in order to constitute a Termination for Good Reason, such Termination must occur within twelve (12) months of the initial existence of the applicable condition.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(aa)&nbsp;&nbsp;&nbsp;&nbsp;"**Incentive Bonus**" has the meaning set forth in **Section[3.](#i66767e13920743f39300c050672a5b84_1)**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(bb)&nbsp;&nbsp;&nbsp;&nbsp;"**Incumbent Board**" means the members of the Company Board as of the

Effective Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(cc)&nbsp;&nbsp;&nbsp;&nbsp;"**Minimum Benefits**" means, as applicable, the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;Executive's earned but unpaid Annual Base Salary for the period ending on the Termination Date; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp;Executive's accrued but unpaid vacation time for the period ending on the Termination Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(dd)&nbsp;&nbsp;&nbsp;&nbsp;"**Parties**" has the meaning set forth in the Preamble.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ee)&nbsp;&nbsp;&nbsp;&nbsp;"**Release**" means a general release and waiver substantially in the form attached hereto as **<u>Exhibit A</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ff)&nbsp;&nbsp;&nbsp;&nbsp;"**Restrictive Area**" has the meaning set forth in **Section[7(c).](#i66767e13920743f39300c050672a5b84_1)**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(gg)&nbsp;&nbsp;&nbsp;&nbsp;"**Restrictive Covenants**" has the meaning set forth in **Section**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(hh)&nbsp;&nbsp;&nbsp;&nbsp;"**Restrictive Period**" has the meaning set forth in **Section[7(c).](#i66767e13920743f39300c050672a5b84_1)**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp;"**Severance Amount**" means:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;For any Termination that occurs during the Employment Period and not during a Covered Period, an amount equal to one hundred percent (100%) of Executive's Annual Base Salary as of the respective Termination Date; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp;For any Termination that occurs during a Covered Period, an amount equal to two hundred percent (200%) of Executive's Base Compensation as of the respective Termination Date.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(jj)&nbsp;&nbsp;&nbsp;&nbsp;"**Termination**" means the termination of Executive's employment with the Employer following the Effective Date and prior to the end of the Employment Period either:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;by the Employer, other than a Termination for Cause (but excluding, for the avoidance of doubt, a termination as a result of Executive's death or Disability); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp;by Executive for Good Reason.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(kk)&nbsp;&nbsp;&nbsp;&nbsp;"**Termination Date**" means the date of termination of Executive's employment with the Employer for any reason.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ll)&nbsp;&nbsp;&nbsp;&nbsp;"**Termination for Cause**" means only a termination of Executive's employment with the Employer as a result of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;Executive's willful and continuing failure, that is not remedied within twenty (20) days after receipt of written notice of such failure from the Employer, to perform Executive's obligations hereunder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp;Executive's conviction of, or the pleading of *nolo contendere* to, a crime of embezzlement or fraud or a felony under the laws of the United States or any state thereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;&nbsp;&nbsp;&nbsp;Executive's breach of fiduciary responsibility to the Employer;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv)&nbsp;&nbsp;&nbsp;&nbsp;an act of dishonesty by Executive that is materially injurious to the Employer;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v)&nbsp;&nbsp;&nbsp;&nbsp;Executive's material violation of any the Company's or the Bank's written policies or codes of conduct, including written policies related to discrimination, harassment, performance of illegal or unethical activities, and ethical misconduct; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi)&nbsp;&nbsp;&nbsp;&nbsp;Executive's willful unauthorized disclosure of Confidential Information.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(mm)&nbsp;&nbsp;&nbsp;&nbsp;"**Voting Securities**" means any securities that ordinarily possess the power to vote in the election of directors without the happening of any precondition or contingency.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(nn)&nbsp;&nbsp;&nbsp;&nbsp;"**Whistleblower Program**" has the meaning set forth in **Section[7(a)(iii)](#i66767e13920743f39300c050672a5b84_1)**[.](#i66767e13920743f39300c050672a5b84_1)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**18.&nbsp;&nbsp;&nbsp;&nbsp;<u>Survival</u>.** The provisions of **Sections[5](#i66767e13920743f39300c050672a5b84_1)**through **18** shall survive the termination of this Agreement.

**\*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; \*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; \*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; \***

------

**IN WITNESS WHEREOF**, the Parties have executed this Agreement as of the Effective Date.

---

| | | | |
|:---|:---|:---|:---|
| **LINCOLN BANCORP** | **LINCOLN BANCORP** | **LINCOLN BANCORP** | **ANDREW BORRMANN** |
| **By:** | /s/ Sean M Willett | /s/ Sean M Willett | /s/ Andrew Borrmann |
|  |  |  | (Signature) |
| **Name:** | **Name:** | Sean M Willett | 5405 Forest Springs Dr |
|  |  |  | (Address) |
| **Its:** | CEO | CEO | Dunwoody GA 30338 |
|  |  |  | (Address) |

---

---

| |
|:---|
| **LINCOLN SAVINGS BANK** |
| **By:** |
| **Name:** |
| **Its:** |

---

------

**<u>EXHIBIT A</u>**

**<u>RELEASE AND WAIVER OF CLAIMS</u>**

This **Release and Waiver of Claims** (this "**Release and Waiver**") is made and entered into by and among **Lincoln Bancorp** (the "**Company**"), **Lincoln Savings Bank** (the "**Bank**," and together with the Company, or the "**Employer**"), and Andrew Borrmann ("**Executive**," and together with the Employer, the "**Parties**").

**RECITALS**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**A.&nbsp;&nbsp;&nbsp;&nbsp;**Executive and the Employer are parties to that certain Employment Agreement, dated as of [✯], 2024 (the "**Employment Agreement**").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**B.&nbsp;&nbsp;&nbsp;&nbsp;**Pursuant to the Employment Agreement, certain benefits due to Executive are conditioned on Executive's full release of claims against the Employer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**C.&nbsp;&nbsp;&nbsp;&nbsp;**The Parties desire to settle fully and amicably all issues between them, including any issues arising out of Executive's employment with the Employer and the termination of that employment.

**AGREEMENTS**

For and in consideration of the mutual promises contained herein, and for other good and sufficient consideration, the receipt of which is hereby acknowledged, the Parties, intending to be legally bound, hereby agree as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.&nbsp;&nbsp;&nbsp;&nbsp;<u>Termination of Employment</u>.** Executive's employment with the Employer shall be terminated effective as of the close of business on <u>[&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;]</u> (the "**Termination Date**").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.&nbsp;&nbsp;&nbsp;&nbsp;<u>Compensation and Benefits</u>.** Subject to the terms of this Release and Waiver, the Employer shall compensate Executive under this Release and Waiver as follows (collectively, the "**Severance Payments**"):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;<u>Severance Amount</u>. <u>[&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ]</u>, payable in accordance with the terms and conditions of the Employment Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;<u>Accrued Salary and Paid Time Off</u>. Executive shall be entitled to a lump sum payment in an amount equal to Executive's earned but unpaid annual base salary and accrued but unused paid time off for the period ending on the Termination Date, with such payment to be made on the first payroll date following the Termination Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;<u>COBRA Benefits</u>. Executive and Executive's qualified beneficiaries, as applicable, shall be entitled to continuation of group health coverage following the Termination Date under the Employer's group health plan, to the extent required under the Consolidated Omnibus Budget Reconciliation Act of 1986, with Executive required to pay the same amount as Executive would pay if Executive continued in employment with the Employer during such period as described in Section 4(e) of the Employment Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;<u>Executive Acknowledgement</u>. Executive acknowledges that, subject to fulfillment of all obligations provided for herein, Executive has been fully compensated by the Employer, including under all applicable laws, and that nothing further is owed to Executive with respect to wages,

------

bonuses, severance, other compensation, or benefits. Executive further acknowledges that the Severance Payments (other than (b) and (c) immediately above) are consideration for Executive's promises contained in this Release and Waiver, and that the Severance Payments are above and beyond any wages, bonuses, severance, other compensation, or benefits to which Executive is entitled from the Employer under the terms of Executive's employment or under any other contract or law that Executive would be entitled to absent execution of this Release and Waiver.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;<u>Withholding</u>. The Severance Payments shall be subject to all taxes and other payroll deductions required by law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.&nbsp;&nbsp;&nbsp;&nbsp;<u>Termination of Benefits</u>.** Except as provided in **Section 2** above or as may be required by law, Executive's participation in all employee benefit (pension and welfare) and compensation plans of the Employer shall cease as of the Termination Date. Nothing contained herein shall limit or otherwise impair Executive's right to receive pension or similar benefit payments that are vested as of the Termination Date under any applicable tax-qualified pension or other plans, pursuant to the terms of the applicable plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.&nbsp;&nbsp;&nbsp;&nbsp;<u>Release of Claims and Waiver of Rights</u>.** Executive, on Executive's own behalf and that of Executive's heirs, executors, attorneys, administrators, successors, and assigns, fully and forever releases and discharges Lincoln Bancorp (the "**Company**"), and the Bank, their predecessors, successors, parents, subsidiaries, affiliates, and assigns, and its and their directors, officers, trustees, employees, agents, and shareholders, both in their individual and official capacities, and the current and former trustees and administrators of each retirement and other benefit plan applicable to the employees and former employees of the Company and/or the Bank, both in their official and individual capacities (the "**Releasees**"), from all liability, claims, demands, actions, and causes of action Executive now has, may have had, or may ever have, whether currently known or unknown, relating to acts or omissions as of or prior to Executive's execution of this Release and Waiver, including liability, claims, demands, actions, and causes of action:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;Relating to Executive's employment or other association with the Company and/or the Bank, or the termination of such employment;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;Relating to wages, bonuses, other compensation, or benefits;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;Relating to any employment or change in control contract;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;Relating to any employment law, including

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)The Georgia Fair Employment Practices Act 0f 1978,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)The Georgia General Age Discrimination Law of 1971,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)The Georgia Equal Employment for Persons with Disabilities Code of 1981,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv)The Georgia Sex Discrimination in Employment Act of 1966

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v)The Georgia Equal Pay for Equal Work Act,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi)The Georgia Workers' Compensation Act,

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii)The Georgia Constitution,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii)The Civil Rights Act of 1964,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ix)The Civil Rights Act of 1991,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x)The Equal Pay Act,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xi)The Employee Retirement Income Security Act of 1974,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xii)The Age Discrimination in Employment Act (the "ADEA"),

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xiii)The Older Workers Benefit Protection Act,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xiv)The Worker Adjustment and Retraining Notification Act,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xv)The Americans with Disabilities Act,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xvi)The Family and Medical Leave Act,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xvii)The Occupational Safety and Health Act,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xviii)The Fair Labor Standards Act,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xix)The National Labor Relations Act,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xx)The Genetic Information Nondiscrimination Act,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xxi)The Rehabilitation Act,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xxii)The Fair Credit Reporting Act,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xxiii)Executive Order 11246,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xxiv)Executive Order 11141, and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xxv)Each other federal, state, and local statute, ordinance, and regulation relating to employment;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;Relating to any right of payment for disability;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;&nbsp;&nbsp;Relating to any statutory or contractual right of payment; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;&nbsp;&nbsp;&nbsp;For relief on the basis of any alleged tort or breach of contract under the common law of the State of New York or any other state, including defamation, intentional or negligent infliction of emotional distress, breach of the covenant of good faith and fair dealing, promissory estoppel, and negligence.

Executive acknowledges that statutes exist that render null and void releases and waivers of any claims, rights, demands, liabilities, actions, and causes of action that are unknown to the releasing or waiving party at the time of execution of the release and waiver. Executive waives, surrenders, and

------

shall forego any protection to which Executive would otherwise be entitled by virtue of the existence of any such statutes in any jurisdiction, including the State of New York.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.&nbsp;&nbsp;&nbsp;&nbsp;<u>Specific Release of ADEA Claims</u>.** In further consideration of the payments and benefits provided to Executive in this Agreement, Executive hereby irrevocably and unconditionally waives, releases, and discharges the Releasees from any and all claims, whether known or unknown, from the beginning of time through the date of Executive's execution of this Agreement, arising under the ADEA, as amended, and its implementing regulations. By signing this Agreement, Executive hereby acknowledges and confirms that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;Executive has read this Agreement in its entirety and understands all of its terms;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;by this Agreement, Executive has been advised in writing to consult with an attorney, and has consulted with such counsel, who helped to negotiate this Agreement, to the extent Executive has deemed necessary before signing this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;Executive knowingly, freely, and voluntarily agrees to all of the terms and conditions set out in this Agreement including, without limitation, the waiver, release, and covenants contained in it;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;Executive is executing this Agreement, including the waiver and release, in exchange for good and valuable consideration in addition to anything of value to which Executive is otherwise entitled;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;Executive was given at least twenty-one (21) days to consider the terms of this Agreement and consult with an attorney of Executive's choice, although Executive may sign it sooner if desired and changes to this Agreement, whether material or immaterial, do not restart the running of the twenty-one (21)-day period;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;&nbsp;&nbsp;Executive understands that Executive has seven (7) days from the date of signing this Agreement to revoke the release in this paragraph, and may do so by delivering notice of revocation to outside counsel for Employer, Allison N. Powers at Barack, Ferrazzano, Kirschbaum & Nagelberg LLP, by email (<u>allison.powers@bfkn.com</u>) before the end of the seven (7)-day period; provided, however, that Executive understands and acknowledges that should Executive choose to revoke this ADEA release, the Agreement as a whole will fail to become effective and Executive will not receive or be entitled to the Severance Payments described in **Section 2**; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;&nbsp;&nbsp;&nbsp;Executive understands that the release in this paragraph does not apply to rights and claims that may arise after the date on which Executive signs this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.&nbsp;&nbsp;&nbsp;&nbsp;<u>Exclusions from General Release</u>.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;Excluded from the Release and Waiver are any claims or rights arising pursuant to this Release and Waiver and any claims or rights that cannot be waived by law, as well as Executive's right to file a charge with an administrative agency or participate in any agency investigation, including with the Equal Employment Opportunity Commission. Executive is, however, waiving the right to recover any money in connection with a charge or investigation and the right to recover any money in connection with a charge filed by any other individual or by the Equal Employment Opportunity Commission or any other federal or state agency, except where such waivers are prohibited by law.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;Notwithstanding the foregoing, nothing contained in this **Section 6** shall limit Executive's ability to file a charge or complaint with any governmental, administrative or judicial agency (each, an "**Agency**") pursuant to any applicable whistleblower statute or program (each, a "**Whistleblower Program**"). Executive acknowledges that this **Section 6** does not limit (A) his ability to communicate, in connection with a charge or complaint pursuant to any Whistleblower Program with any Agency or otherwise participate in any investigation or proceeding that may be conducted by such Agency, including providing documents or other information, without notice to the Employer, or (B) his right to receive an award for information provided to such Agency pursuant to any Whistleblower Program.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7.&nbsp;&nbsp;&nbsp;&nbsp;<u>Covenant Not to Sue</u>.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;A "covenant not to sue" is a legal term that means Executive promises not to file a lawsuit in court. It is different from the Release and Waiver. Besides waiving and releasing the claims covered by **Section 4** above, Executive shall never sue the Releasees in any forum for any reason covered by the Release and Waiver. Notwithstanding this covenant not to sue, Executive may bring a claim against the Employer to enforce this Release and Waiver or to challenge the validity of this Release and Waiver under the ADEA. If Executive sues any of the Releasees in violation of this Release and Waiver, Executive shall be liable to them for their reasonable attorneys' fees and costs (including the costs of experts, evidence, and counsel) and other litigation costs incurred in defending against Executive's suit. In addition, if Executive sues any of the Releasees in violation of this Release and Waiver, the Employer can require Executive to return all but a sum of $100 of the Severance Payments, which sum is, by itself, adequate consideration for the promises and covenants in this Release and Waiver. In that event, the Employer shall have no obligation to make any further Severance Payments.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;If Executive has previously filed any lawsuit against any of the Releasees, Executive shall immediately take all necessary steps and execute all necessary documents to withdraw or dismiss such lawsuit to the extent Executive's agreement to withdraw, dismiss, or not file a lawsuit would not be a violation of any applicable law or regulation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8.&nbsp;&nbsp;&nbsp;&nbsp;<u>Non-Disparagement</u>.** At all times following the signing of this Release and Waiver, Executive shall refrain from any vilification of the Employer and shall refrain from making any false, negative, critical or disparaging statements, implied or expressed, concerning the Employer, including management style, methods of doing business, the quality of products and services, role in the community, or treatment of employees. Executive shall do nothing that would damage the Employer's business reputation or good will. Employer, for its part, will not knowingly disparage or make any derogatory statements regarding Executive; provided, however, that the Employer's obligations under this **Section 8** shall be limited to communications by the Employer's senior corporate executives having the rank of Senior Vice President or above and members of the board of directors of Employer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9.&nbsp;&nbsp;&nbsp;&nbsp;<u>Restrictive Covenants</u>.** Section[7](#i66767e13920743f39300c050672a5b84_1)of the Employment Agreement (entitled "Restrictive Covenants"), shall continue in full force and effect as if fully restated herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**10.&nbsp;&nbsp;&nbsp;&nbsp;<u>No Admissions</u>.** The Employer denies that any of the Releasees have taken any improper action against Executive, and this Release and Waiver shall not be admissible in any proceeding as evidence of improper action by any of the Releasees.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**11.&nbsp;&nbsp;&nbsp;&nbsp;<u>Confidentiality of Release and Waiver</u>.** Executive shall keep the existence and the terms of this Release and Waiver confidential, except for Executive's immediate family members and

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Executive's legal and tax advisors in connection with services related hereto and except as may be required by law or in connection with the preparation of tax returns.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**12.&nbsp;&nbsp;&nbsp;&nbsp;<u>Non-Waiver</u>.** The Employer's waiver of a breach of this Release and Waiver by Executive shall not be construed or operate as a waiver of any subsequent breach by Executive of the same or of any other provision of this Release and Waiver.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**13.&nbsp;&nbsp;&nbsp;&nbsp;<u>Governing Law</u>.** This Release and Waiver shall be governed by and construed under the laws of the State of Georgia, without regard to principles of conflict of laws (whether in the State of Georgia or any other jurisdiction) that would cause the application of the laws of any jurisdiction other than the State of Georgia.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**14.&nbsp;&nbsp;&nbsp;&nbsp;<u>Entire Agreement</u>.** This Release and Waiver sets forth the entire agreement of the Parties regarding the subject matter hereof and shall be final and binding as to all claims that have been or could have been advanced on behalf of Executive pursuant to any claim arising out of or related in any way to Executive's employment with the Employer and the termination of that employment. This Release and Waiver may not be amended, modified, altered, or changed except by express written consent of the Parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**15.&nbsp;&nbsp;&nbsp;&nbsp;<u>Counterparts</u>.** This Release and Waiver 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 agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**16.&nbsp;&nbsp;&nbsp;&nbsp;<u>Successors</u>.** This Release and Waiver shall be binding upon and inure to the benefit of the parties to this Release and Waiver, their successors and assigns.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**17.&nbsp;&nbsp;&nbsp;&nbsp;<u>Enforcement</u>.** The provisions of this Release and Waiver shall be regarded as divisible and separable and if any provision should be declared invalid or unenforceable by a court of competent jurisdiction, the validity and enforceability of the remaining provisions shall not be affected thereby. If the scope of any restriction or requirement contained in this Release and Waiver is too broad to permit enforcement of such restriction or requirement to its full extent, then such restriction or requirement shall be enforced to the maximum extent permitted by law, and Executive hereby consents that any court of competent jurisdiction may so modify such scope in any proceeding brought to enforce such restriction or requirement. In addition, Executive stipulates that breach by Executive of restrictions and requirements under this Release and Waiver will cause irreparable damage to the Releasees in the case of Executive's breach and that the Employer would not have entered into this Release and Waiver without Executive binding Executive to these restrictions and requirements. In the event of Executive's breach of this Release and Waiver, in addition to any other remedies the Employer may have, and without bond and without prejudice to any other rights and remedies that the Employer may have for Executive's breach of this Release and Waiver, the Employer shall be relieved of any obligation to provide Severance Payments and shall be entitled to an injunction to prevent or restrain any such violation by Executive and all persons directly or indirectly acting for or with Executive.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**18.&nbsp;&nbsp;&nbsp;&nbsp;<u>Construction</u>.** In this Release and Waiver, unless otherwise stated, the following uses apply: (a) references to a statute or law refer to the statute or law and any amendments and any successor statutes or laws, and to all regulations promulgated under or implementing the statute or law, as amended, or its successors, as in effect at the relevant time; (b) in computing periods from a specified date to a later specified date, the words "from" and "commencing on" (and the like) mean "from and including," and the words "to," "until," and "ending on" (and the like) mean "to, and including"; (c) references to a governmental or quasi-governmental agency, authority, or instrumentality also refer to a regulatory body

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that succeeds to the functions of the agency, authority, or instrumentality; (d) the words "include," "includes," and "including" (and the like) mean "include, without limitation," "includes, without limitation," and "including, without limitation," (and the like) respectively; (e) the words "hereof," "herein," "hereto," "hereby," (and the like) refer to this Release and Waiver as a whole; (f) any reference to a document or set of documents, and the rights and obligations of the parties under any such documents, means such document or documents as amended from time to time, and all modifications, extensions, renewals, substitutions, or replacements thereof; (g) all words used shall be construed to be of such gender or number as the circumstances and context require; and (h) the captions and headings of preambles, recitals, sections, and exhibits appearing in or attached to this Release and Waiver have been inserted solely for convenience of reference and shall not be considered a part of this Release and Waiver, nor shall any of them affect the meaning or interpretation of this Release and Waiver or any of its provisions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**19.&nbsp;&nbsp;&nbsp;&nbsp;<u>Future Cooperation</u>.** In connection with any and all claims, disputes, or negotiations, or governmental, internal, or other investigations, lawsuits, or administrative proceedings (the "**Legal Matters**") involving any of the Releasees (collectively, the "**Disputing Parties**" and, individually, each a "**Disputing Party**"), Executive shall make Executive reasonably available, upon reasonable notice from the Employer and without the necessity of subpoena, to provide information and documents, provide declarations and statements regarding a Disputing Party, meet with attorneys and other representatives of a Disputing Party, prepare for and give depositions and testimony, and otherwise cooperate in the investigation, defense, and prosecution of any and all such Legal Matters, as may, in the good faith and judgment of the Employer, be reasonably requested. The Employer shall consult with Executive and make reasonable efforts to schedule such assistance so as not to materially disrupt Executive's business and personal affairs. The Employer shall reimburse all reasonable expenses incurred by Executive in connection with such assistance, including travel, meals, rental car, and hotel expenses, if any; *provided* such expenses are approved in advance by the Employer and are documented in a manner consistent with expense reporting policies of the Employer as may be in effect from time to time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**20.&nbsp;&nbsp;&nbsp;&nbsp;<u>Representations by Executive</u>.** Executive acknowledges each of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;Executive is aware that this Release and Waiver includes a release of all known and unknown claims.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;Executive is legally competent to execute this Release and Waiver and Executive has not relied on any statements or explanations made by the Employer or its attorneys not otherwise set forth herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;Any modifications, material or otherwise, made to this Release and Waiver shall not restart or affect in any manner the original 21-day consideration period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;Executive has been offered at least 21 days to consider this Release and Waiver.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;Executive has been afforded the opportunity to be advised by legal counsel regarding the terms of this Release and Waiver, including the release and waiver of claims, and to negotiate such terms.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;&nbsp;&nbsp;Executive, without coercion of any kind, freely, knowingly, and voluntarily enters into this Release and Waiver.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;&nbsp;&nbsp;&nbsp;Executive has the right to rescind the Release and Waiver by written notice to the Employer within seven (7) calendar days after Executive has signed this Release and Waiver, and the Release and Waiver shall not become effective or enforceable until seven (7) calendar days after Executive has signed this Release and Waiver, as evidenced by the date set forth below Executive's signature on the signature page hereto. Any such rescission must be in writing and delivered by hand, or sent by U.S. Mail within such seven (7)-day period, to the attention of <u>[&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ]</u>. If delivered by U.S. Mail, the rescission must be: (i) postmarked within the seven (7)-day period and (ii) sent by certified mail, return receipt requested.

**\*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; \*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;\*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;\***

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**IN WITNESS WHEREOF,** the Parties have executed this Release and Waiver as of dates set forth below their respective signatures below.

---

| | |
|:---|:---|
| **LINCOLN BANCORP** | |
| **By:** | **ANDREW BORRMANN** |
|  | (Signature) |
| **Name:** |  |
|  | (Address) |
| **Its:** |  |
|  | (Address) |

---

---

| |
|:---|
| **LINCOLN SAVINGS BANK** |
| **By:** |
| **Name:** |
| **Its:** |

---

## Exhibit 10.7

**Exhibit 10.7**

**LINCOLN SAVINGS BANK**

**<u>EMPLOYMENT AGREEMENT</u>**

This **Employment Agreement** ("**Agreement**") is made and entered into as of September 16, 2024 (the "**Effective Date**"), by and between **Lincoln Savings Bank** (the "**Bank**" or the "**Employer**"), and Emily Girsch ("**Executive**," and together with the Employer, the "**Parties**").

**RECITALS**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**A.&nbsp;&nbsp;&nbsp;&nbsp;**The Employer desires to employ Executive as its Executive Vice President, Chief Administrative Officer pursuant to the terms of this Agreement, and Executive desires to be employed pursuant to the terms of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**B.&nbsp;&nbsp;&nbsp;&nbsp;**The Parties have made commitments to each other on a variety of important issues concerning Executive's employment, including the performance that will be expected of Executive, the compensation Executive will be paid, how long and under what circumstances Executive will remain employed and the financial details relating to any decision that either the Employer or Executive may make to terminate this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**C.&nbsp;&nbsp;&nbsp;&nbsp;**The Parties desire to enter into this Agreement as of the Effective Date.

**AGREEMENTS**

In consideration of the foregoing and the mutual promises and covenants of the Parties set forth in this Agreement, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties, intending to be legally bound, hereby expressly covenant and agree as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.&nbsp;&nbsp;&nbsp;&nbsp;<u>Employment Period</u>.** The Employer shall employ Executive, and Executive shall be so employed, during the Employment Period in accordance with the terms of this Agreement. The "**Employment Period**" shall be the period beginning on the Effective Date and ending on December 31, 2025, unless sooner terminated as provided herein. The Employment Period shall automatically be extended for one (1) additional year beginning on January 1, 2026 and on each January 1 thereafter unless either Party notifies the other Party, by written notice delivered no later than ninety (90) days prior to such January 1, that the Employment Period shall not be extended for an additional year. Notwithstanding any provision of this Agreement to the contrary, if a Change in Control occurs during the Employment Period, this Agreement shall remain in effect for the two (2)-year period following the Change in Control and shall then terminate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.&nbsp;&nbsp;&nbsp;&nbsp;<u>Duties</u>.** During the Employment Period, Executive shall devote Executive's full business time, energies and talents to serving as the Bank's Chief Administrative Officer at the direction of the Chief Executive Officer (the "**CEO**") of Lincoln Bancorp (the "**Company**") and the Bank. Executive shall have such duties and responsibilities as may be assigned to Executive from time to time by the CEO, which duties and responsibilities shall be commensurate with Executive's position, shall perform all duties assigned to Executive faithfully and efficiently, subject to the direction of the CEO and shall have such authorities and powers as are inherent to the undertakings applicable to Executive's position and necessary to carry out the responsibilities and duties required of Executive hereunder. Notwithstanding the foregoing provisions of this **Section[2,](#i671c611926ef4f31a88e0d03e59812c5_1)**during the Employment Period, Executive may devote reasonable time to activities other than those required under this Agreement, including activities of a

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charitable, educational, religious or similar nature (including professional associations) to the extent such activities do not, in the reasonable judgment of the CEO, inhibit, prohibit, interfere with or conflict with Executive's duties under this Agreement or conflict in any material way with the business of the Employer or an Affiliate; *provided, however,* that Executive shall not serve on the board of directors of any business (other than the Employer or any Affiliate) or hold any other position with any business without receiving the prior written consent of the CEO.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.&nbsp;&nbsp;&nbsp;&nbsp;<u>Compensation and Benefits</u>.** Subject to the terms of this Agreement, during the Employment Period, while Executive is employed by the Employer, the Employer shall compensate Executive for Executive's services as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(a)&nbsp;&nbsp;&nbsp;&nbsp;***Annual Base Salary.* Executive shall be compensated with a salary at an annual rate of Three Hundred Fifty Thousand Dollars ($350,000) (the "**Annual Base Salary**"), which shall be payable in accordance with the normal payroll practices of the Employer then in effect. Executive's Annual Base Salary shall be reviewed for increases beginning on January 1, 2025, and on each anniversary of such date, but shall not be reduced below its then current level during the Employment Period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(b)&nbsp;&nbsp;&nbsp;&nbsp;***Annual Incentive Bonus.* At the sole discretion of the Company Board, Executive shall be eligible to receive performance-based annual incentive bonuses (each, the "**Incentive Bonus**") from the Employer for each fiscal year ending during the Employment Period. The target annual bonus shall be 30% of Executive's then current base salary, based on the achievement of annual individual performance objectives and performance objectives of the Employer, established by the Board in good faith consultation with the Executive. Any such Incentive Bonus shall be paid to Executive as soon as reasonably practicable following the completion of the respective fiscal year audit by the Employer's auditor; provided that, the Executive must be actively employed on the payment date for such Incentive Bonus. Executive's Incentive Bonus for 2024, if any, will be pro-rated based on Executive's services to the Bank for 2024, as determined by the Company Board.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(c)&nbsp;&nbsp;&nbsp;&nbsp;***Other Benefits*. During the Employment Period, Executive and Executive's dependents, as the case may be, shall be eligible to participate, subject to the terms thereof, in all pension and similar benefit plans (including qualified, non-qualified and supplemental plans) and all medical, dental, vision, disability, group and executive life, accidental death and travel accident insurance and other similar welfare benefit plans and programs of the Employer as may be in effect from time to time with respect to senior executives employed by the Employer, on as favorable a basis as other similarly situated senior executives.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(d)&nbsp;&nbsp;&nbsp;&nbsp;***Retention Bonus*. Executive will be eligible to receive an aggregate cash bonus in an amount equal to One Hundred Ninety-Five Thousand Dollars ($195,000) payable in three equal installments of Sixty-Five Thousand Dollars ($65,000) (each a "Retention Bonus Installment Amount") as described in this Section 3(d), provided Executive remains actively employed by the Employer (and not in a notice period) on each of December 31, 2023, June 30, 2024, and December 31, 2024 (each a "Retention Bonus Vesting Date"). Subject to the foregoing, the applicable Retention Bonus Installment Amount shall be paid on the first regular pay date following the applicable Retention Bonus Vesting Date (but in no event later than 2½ months following the end of the year in which the applicable Retention Bonus Installment Amount is earned) (each a "Retention Bonus Payment Date"). For the avoidance of doubt, if Executive's employment terminates for any reason prior to a Retention Bonus Vesting Date, Executive shall forfeit all unpaid Retention Bonus Installment Amounts. Notwithstanding the foregoing,

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if Executive's employment is terminated as a result of a Termination for Cause at any time prior to a Retention Bonus Payment Date, Executive shall forfeit any unpaid Retention Bonus Installment Amounts.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.&nbsp;&nbsp;&nbsp;&nbsp;<u>Rights upon Termination</u>.** Executive's right to benefits, if any, for periods after the Termination Date shall be determined in accordance with this **Section[4:](#i671c611926ef4f31a88e0d03e59812c5_1)**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(a)&nbsp;&nbsp;&nbsp;&nbsp;<u>Minimum Benefits</u>.** If the Termination Date occurs during the Employment Period for any reason, Executive shall be entitled to the Minimum Benefits in addition to any other benefits to which Executive may be entitled under the following provisions of this **Section[4](#i671c611926ef4f31a88e0d03e59812c5_1)**or the express terms of any employee benefit plan or as required by law. Any benefits to be provided to Executive pursuant to this **Section 4(a)** shall be provided within thirty (30) days after the Termination Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(b)&nbsp;&nbsp;&nbsp;&nbsp;<u>Termination for Cause; Death; Disability; Voluntary Resignation; Non-Renewal</u>.** If the Termination Date occurs during the Employment Period and is a result of a Termination for Cause, Executive's death or Disability, or a termination by Executive other than for Good Reason, or if this Agreement expires due to notice of non-renewal by either Party as provided under **Section 1** or at the end of a Covered Period, then, other than the Minimum Benefits, Executive shall have no right to benefits under this Agreement (and the Employer and its Affiliates shall have no obligation to provide any such benefits) for periods after the Termination Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(c)&nbsp;&nbsp;&nbsp;&nbsp;<u>Termination other than a Termination for Cause or a Termination for Good</u> <u>Reason</u>.** If, other than during a Covered Period, Executive's employment is subject to a Termination, then, in addition to the Minimum Benefits, subject to the Release requirements of **Section 5,** the Employer shall provide Executive with the following benefits:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;The Employer shall pay Executive a lump sum payment in an amount equal to the Severance Amount on the first Employer payroll date that occurs on or following the sixtieth (60<sup>th</sup>) day following the Termination Date, but in no event later than 2 ½ months following the end of the year <u>in</u> which the Termination Date occurs.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp;Executive (and Executive's dependents, as may be applicable) shall be entitled to the benefits described in **Section 4(e).**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(d)&nbsp;&nbsp;&nbsp;&nbsp;<u>Termination upon a Change in Control</u>.** If, during a Covered Period, Executive's employment is subject to a Termination, then, in addition to Minimum Benefits, subject to the Release requirements of **Section 5,** the Employer shall provide Executive with the following benefits:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;On the sixtieth (60th) day following the Termination Date, the Employer shall pay Executive a lump sum payment in an amount equal to the Severance Amount.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp;Executive (and Executive's dependents, as may be applicable) shall be entitled to the benefits provided in **Section 4(e).**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(e)&nbsp;&nbsp;&nbsp;&nbsp;<u>Medical, Dental and Vision Benefits</u>.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;If Executive's employment with the Employer is subject to a Termination, then, to the extent that Executive or any of Executive's dependents may be covered under the terms of any medical, dental or vision plans maintained for active employees of the Employer or any Affiliate, the Employer shall provide Executive and those dependents with Consolidated Omnibus Budget

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Reconciliation Act of 1985, as amended **("COBRA"),** coverage equivalent to the coverage received while Executive was employed with the Employer for as long as Executive is eligible for and elects coverage under the health care continuation rules of COBRA. For a period of twelve (12) months, Executive shall be required to pay the same amount as Executive would pay if Executive continued <u>in</u> employment with the Employer during such period and thereafter Executive shall be responsible for the full cost of such continued coverage. Such coverage shall be provided only to the extent that it does not result in any additional tax or other penalty being imposed on the Employer or any Affiliate. In the event Executive or any of Executive's dependents is or becomes eligible for coverage under the terms of any other medical, dental or vision plan of a subsequent employer with plan benefits that are comparable to Employer (or any Affiliate) plan benefits, the Employer's obligations under this **Section 4(e)** shall cease with respect to the eligible Executive and dependents. Executive and Executive's dependents must notify the Employer of any subsequent employment and eligibility for such comparable coverage.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(f)&nbsp;&nbsp;&nbsp;&nbsp;<u>Other Benefits</u>.** Executive's rights following a termination of employment with the Employer and its Affiliates for any reason with respect to any benefits, incentives or awards provided to Executive pursuant to the terms of any plan, program or arrangement sponsored or maintained by the Employer or an Affiliate, whether tax-qualified or not, which are not specifically addressed herein, shall be subject to the terms of such plan, program or arrangement, and this Agreement shall have no effect upon such terms except as specifically provided herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(g)&nbsp;&nbsp;&nbsp;&nbsp;<u>Removal from any Boards and Positions</u>.** Upon Executive's termination of employment for any reason under this Agreement, Executive shall be deemed to have also resigned (i) if a member, from the Company Board, the Board, and the board of directors of any Affiliate and any other board to which Executive has been appointed or nominated by or on behalf of the Company, (ii) from each position with the Company, the Bank, or any Affiliate, including as an officer of the Company, the Bank, or any of their Affiliates and (iii) as a fiduciary of any employee benefit plan of the Company or the Bank.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.&nbsp;&nbsp;&nbsp;&nbsp;<u>Release</u>.** Notwithstanding any provision of this Agreement to the contrary, no payments or benefits shall be owed to Executive under **Sections 4(c)**, **4(d)**, or **4(e)** unless Executive executes and delivers to the Employer a Release within forty-five (45) days following the Termination Date, and any applicable revocation period has expired prior to the sixtieth (60th) day following the Termination Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.&nbsp;&nbsp;&nbsp;&nbsp;<u>Excise Tax Limitation</u>.** It is the intention of the Parties that no portion of any payment under this Agreement, or payments to or for the benefit of Executive under any other agreement or plan, be deemed to be an excess parachute payment, as such term is defined under Code Section 280G and the regulations promulgated thereunder. The present value of payments to or for the benefit of Executive in the nature of compensation, receipt of which is contingent on a Change in Control, and to which Code Section 280G applies shall not exceed an amount equal to $1.00 less than the maximum amount that the Employer may pay without loss of deduction under Code Section 280G(a). Any modification, reduction or elimination of payments necessary to accomplish the foregoing shall be done in accordance with applicable provisions of Code Section 409A.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7.&nbsp;&nbsp;&nbsp;&nbsp;<u>Restrictive Covenants</u>.** Executive acknowledges that Executive has been and will continue to be provided intimate knowledge of the business practices, trade secrets, and other confidential and proprietary information of the Employer and its Affiliates (including the Confidential Information), which, if exploited by Executive, would seriously, adversely, and irreparably affect the interests of the Employer and its Affiliates and the ability of each to continue its business and, therefore, Executive hereby agrees to be bound by the restrictions contained in this **Section[7](#i671c611926ef4f31a88e0d03e59812c5_1)**(the "**Restrictive Covenants**").

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(a)&nbsp;&nbsp;&nbsp;&nbsp;<u>Confidential Information</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;Executive acknowledges that, during the course of Executive's employment with the Employer, Executive may produce and have access to confidential and/or proprietary, non-public information concerning the Employer or its Affiliates, including marketing materials, financial and other information concerning customers and prospective customers, customer lists, records, data, trade secrets, proprietary business information, pricing and profitability information and policies, strategic planning, commitments, plans, procedures, litigation, pending litigation and other information not generally available to the public (collectively, "**Confidential Information**"). Executive shall not directly or indirectly use, disclose, copy or make lists of Confidential Information for the benefit of anyone other than the Employer, either during or after Executive's employment with the Employer, except to the extent such disclosure is authorized in writing by the Employer, required by law or any competent administrative agency or judicial authority, or otherwise as reasonably necessary or appropriate in connection with the performance by Executive of Executive's duties hereunder. If Executive receives a subpoena or other court order or is otherwise required by law to provide information to a governmental authority or other person concerning the activities of the Employer or any of its Affiliates, or Executive's activities in connection with the business of the Employer or any of its Affiliates, Executive shall immediately notify the Employer of such subpoena, court order or other requirement and deliver forthwith to the Employer a copy thereof and any attachments and non-privileged correspondence related thereto. Executive shall take reasonable precautions to protect against the inadvertent disclosure of Confidential Information. Executive shall abide by the Employer's reasonable policies, as in effect from time to time, respecting avoidance of interests conflicting with those of the Employer and its Affiliates.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp;Executive shall not be held criminally or civilly liable under any federal or state trade secret law for the disclosure of a trade secret that (A) is made (1) in confidence to a federal, state, or local government official, either directly or indirectly, or to an attorney, and (2) solely for the purpose of reporting or investigating a suspected violation of law; or (B) is made in a complaint or other document filed in a lawsuit or other proceeding, if such filing is made under seal. Accordingly, Executive has the right to disclose in confidence trade secrets to federal, state, and local government officials, or to an attorney, for the sole purpose of reporting or investigating a suspected violation of law. Executive also has the right to disclose trade secrets in a document filed in a lawsuit or other proceeding, but only if the filing is made under seal and protected from public disclosure. Nothing in this Agreement is intended to conflict with 18 U.S.C. § 1833(b) or create liability for disclosures of trade secrets that are expressly allowed by 18 U.S.C. § 1833(b). Nothing in this Agreement shall be construed to authorize, or limit liability for, an act that is otherwise prohibited by law, such as the unlawful access of material by unauthorized means.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;&nbsp;&nbsp;&nbsp;Nothing contained in this **Section[7(a)](#i671c611926ef4f31a88e0d03e59812c5_1)**shall limit Executive's ability to file a charge or complaint with any governmental, administrative or judicial agency (each, an "**Agency**") pursuant to any applicable whistleblower statute or program (each, a "**Whistleblower Program**"). Executive acknowledges that this **Section[7(a)](#i671c611926ef4f31a88e0d03e59812c5_1)**does not limit (i) Executive's ability to communicate, in connection with a charge or complaint pursuant to any Whistleblower Program with any Agency or otherwise participate in any investigation or proceeding that may be conducted by such Agency, including providing documents or other information, without notice to the Employer, or (ii) Executive's right to receive an award for information provided to such Agency pursuant to any Whistleblower Program.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(b)&nbsp;&nbsp;&nbsp;&nbsp;<u>Documents and Property</u>.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;All records, files, documents and other materials or copies thereof relating to the business of the Employer or its Affiliates that Executive prepares, receives or uses shall be and remain the sole property of the Employer and, other than in connection with the performance by Executive of Executive's duties hereunder, shall not be removed from the premises of the Employer or any of its Affiliates without the Employer's prior written consent, and shall be promptly returned to the Employer upon Executive's termination of employment for any reason, together with all copies (including copies or recordings in electronic form), abstracts, notes or reproductions of any kind made from or about the records, files, documents or other materials.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp;Executive acknowledges that Executive's access to and permission to use the Employer's and any Affiliate's computer systems, networks and equipment, and all Employer and Affiliate information contained therein, is restricted to legitimate business purposes on behalf of the Employer. Any other access to or use of such systems, network, equipment and information is without authorization and is prohibited except that Executive may use an Employer-provided computer for reasonable personal use in accordance with the Employer's technology use policy as in effect from time to time. The restrictions contained in this **Section [7(b)](#i671c611926ef4f31a88e0d03e59812c5_1)**extend to any personal computers or other electronic devices of Executive that are used for business purposes relating to the Employer or any Affiliate. Executive shall not transfer any Employer or Affiliate information to any personal computer or other electronic device that is not otherwise used for any business purpose relating to the Employer. Upon the termination of Executive's employment with the Employer for any reason, Executive's authorization to access and permission to use the Employer's and any Affiliate's computer systems, networks and equipment, and any Employer and Affiliate information contained therein, shall cease.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(c)&nbsp;&nbsp;&nbsp;&nbsp;<u>Non-Solicitation</u>.** The Parties have agreed that the primary service area of the Employer's operations, including lending and deposit taking functions, in which Executive will actively participate extends to an area that encompasses a fifty (50)-mile radius from each Bank branch and the Company's headquarters (the "**Restrictive Area**"). Therefore, as an essential ingredient of and in consideration of this Agreement and Executive's employment with the Employer, Executive, during Executive's employment with the Employer and for a period of twelve (12) months immediately following the termination of Executive's employment for any reason (the "**Restrictive Period**"), whether such termination occurs during the Employment Period or thereafter, shall not directly or indirectly do any of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;Either for Executive or any Financial Institution or Fintech Organization: (A) induce or attempt to induce any employee of the Employer or any of its Affiliates with whom Executive had significant contact to leave the employ of the Employer or any of its Affiliates; (B) in any way interfere with the relationship between the Employer or any of its Affiliates and any employee of the Employer or any of its Affiliates with whom Executive had significant contact; or (C) induce or attempt to induce any customer, supplier, licensee or business relation of the Employer or any of its Affiliates with whom Executive had significant contact to cease doing business with the Employer or any of its Affiliates or in any way interfere with the relationship between the Employer or any of its Affiliates and their respective customers, suppliers, licensees or business relations with whom Executive had significant contact; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp;Either for Executive or any Financial Institution or any Fintech Organization, solicit the business of any person or entity known to Executive to be a customer of the Employer or any of its Affiliates, where Executive had significant contact with such person or entity, with

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respect to products, activities or services that compete in whole or in part with the products, activities or services of the Employer or any of its Affiliates.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(d)&nbsp;&nbsp;&nbsp;&nbsp;<u>Remedies for Breach of Restrictive Covenant</u>.** Executive has reviewed the provisions of this Agreement with legal counsel or has been given adequate opportunity to seek such counsel, and Executive acknowledges that the covenants contained in this **Section 7** are reasonable with respect to their duration, geographical area and scope. Executive further acknowledges that the restrictions contained in this **Section[7](#i671c611926ef4f31a88e0d03e59812c5_1)**are reasonable and necessary for the protection of the legitimate business interests of the Employer, that they create no undue hardships, that any violation of these restrictions would cause substantial injury to the Employer and such interests, and that such restriction s were a material inducement to the Employer to enter into this Agreement. In the event of any violation or threatened violation of these restrictions, the Employer, in addition to and not in limitation of, any other rights, remedies or damages available to the Employer under this Agreement or otherwise at law or in equity, shall be entitled to preliminary and permanent injunctive relief to prevent or restrain any such violation by Executive and any and all persons directly or indirectly acting for or with Executive, as the case may be.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(e)&nbsp;&nbsp;&nbsp;&nbsp;<u>Other Agreements</u>.** In the event of the existence of any other agreement between the Parties that (a) is in effect during the Restrictive Period, and (b) contains restrictive covenants that conflict with any of the provisions of this **Section[7,](#i671c611926ef4f31a88e0d03e59812c5_1)** then the more restrictive of such provisions from such agreements shall control for the period during which such agreements would otherwise be in effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8.&nbsp;&nbsp;&nbsp;&nbsp;<u>Regulatory Suspension and Termination</u>.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(a)&nbsp;&nbsp;&nbsp;&nbsp;**If Executive is suspended from office and/or temporarily prohibited from participating in the conduct of the affairs of the Employer by a notice served under Section 8(e)(3) (12 U.S.C. § 1818(e)(3)) or 8(g) (12 U.S.C. § 1818(g)) of the Federal Deposit Insurance Act, as amended ("**FDIA**"), the Employer's obligations under this Agreement shall be suspended as of the date of service, unless stayed by appropriate proceedings. If the charges in the notice are dismissed, the Employer may in its discretion: (i) pay Executive all or part of the compensation withheld while the obligations herein were suspended; and (ii) reinstate (in whole or in part) any of the obligations which were suspended.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(b)&nbsp;&nbsp;&nbsp;&nbsp;**If Executive is removed and/or permanently prohibited from participating in the conduct of the affairs of the Employer by an order issued under Section 8(e) (12 U.S.C. § 1818(e)) or 8(g) (12 U.S.C. § 1818(g)) of the FDIA, all obligations of the Employer under this Agreement shall terminate as of the effective date of the order, but vested rights of the Parties shall not be affected.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(c)&nbsp;&nbsp;&nbsp;&nbsp;**If the Employer is in default as defined in Section 3(x) (12 U.S.C. § 1813(x)(1)) of the FDIA, all obligations of the Employer under this Agreement shall terminate as of the date of default, but this subsection shall not affect any vested rights of the Parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(d)&nbsp;&nbsp;&nbsp;&nbsp;**All obligations of the Employer under this Agreement shall be terminated, except to the extent it is determined by the Federal Deposit Insurance Corporation (the "**FDIC**") that continuation of the Agreement is necessary for the continued operation of the institution, at the time the FDIC enters into an agreement to provide assistance to or on behalf of the Employer under the authority contained in Section 13(c) (12 U.S.C. § 1823(c)) of the FDIA, or when the Employer is determined by the FDIC to be in an unsafe or unsound condition. Any rights of the Parties that have already vested, however, shall not be affected by such action.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(e)&nbsp;&nbsp;&nbsp;&nbsp;**Any payments made to Executive pursuant to this Agreement, or otherwise, are subject to and conditioned upon their compliance with Section 18(k) (12 U.S.C. § 1828(k)) of the FDIA.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9.&nbsp;&nbsp;&nbsp;&nbsp;<u>Notices</u>.** Notices and all other communications under this Agreement shall be in writing and shall be deemed given when mailed by United States registered or certified mail, return receipt requested, postage prepaid, addressed as follows:

If to the Employer:

Lincoln Savings Bank

Attention: Chief People Officer

360 Westfield Avenue, Suite 6

Waterloo, IA 50701

with a copy to the following counsel for Employer:

Allison N. Powers

Barack Ferrazzano Kirschbaum & Nagelberg LLP

200 West Madison Street, Suite 3900

Chicago, IL 60606

<u>allison.powers@bfkn.com</u>

If to Executive: Executive's last address on file with the Employer

or to such other address as either Party may furnish to the other in writing, except that notices of changes of address shall be effective only upon receipt.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**10.&nbsp;&nbsp;&nbsp;&nbsp;<u>Applicable Law; Arbitration; Attorneys' Fees</u>.** All questions concerning the construction, validity and interpretation of this Agreement and the performance of the obligations imposed by this Agreement shall be governed by the internal laws of the State of New York applicable to agreements made and wholly to be performed in such state without regard to conflicts of law provisions of any jurisdiction. The Parties agree that any and all disputes arising out of the terms of this Agreement, Executive's employment Employer, Executive's service as an officer or director of the Employer, or Executive's compensation and benefits, their interpretation, and any of the matters herein released, will be subject to binding arbitration in New York, New York before the Judicial Arbitration and Mediation Services, Inc., under the American Arbitration Association's National Rules for the Resolution of Employment Disputes, supplemented by the New York Civil Practice Laws and Rules. The Parties agree that the prevailing party in any arbitration will be entitled to injunctive relief in any court of competent jurisdiction to enforce the arbitration award. The Parties agree to waive their right to have any dispute between them resolved in a court of law by a judge or jury. This paragraph will not prevent either party from seeking injunctive relief (or any other provisional remedy) from any court having jurisdiction over the Parties and the subject matter of their dispute relating to Executive's obligations under this Agreement and any confidentiality agreement by and between Executive and the Company or Bank. Any such action or proceeding by either of the Parties for injunctive or provisional relief shall be brought only in the state courts in the 8th Judicial District of the New York Supreme Court or in the federal United States District Court for the Western District of New York.

Should any Party institute any arbitration or seek injunctive or provisional relief from a court to enforce, interpret, or apply any provision of this Agreement, the Parties agree that the prevailing party shall be entitled to seek reimbursement from the non-prevailing party of their recoverable costs and

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expenses, including, but not limited to, reasonable attorneys' fees, but all such costs and/or fees shall be awarded in the arbitrator's or judge's sole discretion. The arbitrator or judge shall base their determination of which party prevailed upon an assessment of which party's arguments or positions could fairly be said to have prevailed over the other party's arguments or positions on major disputed issues in the action, accounting for the possibility that in some circumstances it is appropriate to conclude that neither party prevailed. Such assessment should include evaluation of the following: the amount of the net recovery and/or value of the object of the action to the prevailing party; whether the prevailing party could have secured complete relief without also pursuing claims for equitable or declaratory relief; the primary issues disputed by the parties and the relative value or importance of resolving such issues to either the prevailing party or the non-prevailing party; whether the amount of the award comprises a significant percentage of the amount sought by the prevailing party where relief is sought in the form of damages; and the most recent settlement positions of the parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**11.&nbsp;&nbsp;&nbsp;&nbsp;<u>Entire Agreement</u>.** This Agreement constitutes the entire agreement between the Parties concerning the subject matter hereof, and supersedes all prior negotiations, undertakings, agreements and arrangements with respect thereto, whether written or oral, except for any prior or concurrent confidentiality agreement by and between Executive and the Company or Bank. If a court of competent jurisdiction determines that any provision of this Agreement is invalid or unenforceable, then the invalidity or unenforceability of that provision shall not affect the validity or enforceability of any other provision of this Agreement and all other provisions shall remain in full force and effect. The various covenants and provisions of this Agreement are intended to be severable and to constitute independent and distinct binding obligations. Without limiting the generality of the foregoing, if the scope of any covenant contained in this Agreement is too broad to permit enforcement to its full extent, such covenant shall be enforced to the maximum extent permitted by law, and such scope may be judicially modified accordingly.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**12.&nbsp;&nbsp;&nbsp;&nbsp;<u>Withholding of Taxes</u>.** The Employer may withhold from any benefits payable under this Agreement all federal, state, city and other taxes as may be required pursuant to any law, governmental regulation or ruling.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**13.&nbsp;&nbsp;&nbsp;&nbsp;<u>No Assignment</u>.** Executive's rights to receive benefits under this Agreement shall not be assignable or transferable whether by pledge, creation of a security interest or otherwise, other than a transfer by will or by the laws of descent or distribution. In the event of any attempted assignment or transfer contrary to this **Section[13,](#i671c611926ef4f31a88e0d03e59812c5_1)**the Employer shall have no liability to pay any amount so attempted to be assigned or transferred. This Agreement shall inure to the benefit of and be enforceable by Executive's personal or legal representatives, executors, administrators, successors, heirs, distributees, devisees and legatees.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**14.&nbsp;&nbsp;&nbsp;&nbsp;<u>Successors</u>.** This Agreement shall be binding upon and inure to the benefit of the Employer, its successors and assigns.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**15.&nbsp;&nbsp;&nbsp;&nbsp;<u>Amendment</u>.** This Agreement may not be amended or modified except by written agreement signed by the Parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**16.&nbsp;&nbsp;&nbsp;&nbsp;<u>Code Section 409A</u>.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(a)&nbsp;&nbsp;&nbsp;&nbsp;**This Agreement may be amended to the extent necessary (including retroactively) by the Employer to avoid the application of taxes or interest under Code Section 409A, while maintaining to the maximum extent practicable the original intent of this Agreement. If it is

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determined that any payments or benefits due hereunder upon Executive's termination of employment are subject to Code Section 409A, no such payments or benefits shall be payable unless such termination constitutes a "separation from service" within the meaning of Code Section 409A. To the extent any reimbursements or in-kind benefit payments under this Agreement are subject to Code Section 409A, such reimbursements and in-kind benefit payments shall be made in accordance with Treasury Regulation Section 1.409A-3(i)(1)(iv). This **Section[16](#i671c611926ef4f31a88e0d03e59812c5_1)**shall not be construed as a guarantee of any particular tax effect for Executive's benefits under this Agreement and the Employer does not guarantee that any such benefits will satisfy the provisions of Code Section 409A or any other provision of the Code.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(b)&nbsp;&nbsp;&nbsp;&nbsp;**Notwithstanding any provision of this Agreement to the contrary, if Executive is determined to be a "specified employee" (as defined in Code Section 409A) as of the Termination Date, then the six (6)-month payment delay rule under Code Section 409A shall apply as set forth therein. All delayed payments shall be accumulated and paid in a lump-sum payment as of the first day of the seventh month following the Termination Date (or, if earlier, as of Executive's death). Any portion of the benefits hereunder that were not otherwise due to be paid during the six (6)-month period following the Termination Date shall be paid to Executive in accordance with the payment schedule established herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**17.&nbsp;&nbsp;&nbsp;&nbsp;<u>Definitions</u>.** As used in this Agreement, the terms defined in this **Section[17](#i671c611926ef4f31a88e0d03e59812c5_1)**have the meanings set forth below.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(a)&nbsp;&nbsp;&nbsp;&nbsp;**"**Agency**" has the meaning set forth in **Section[7(a)(iii).](#i671c611926ef4f31a88e0d03e59812c5_1)**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(b)&nbsp;&nbsp;&nbsp;&nbsp;**"**Agreement**" has the meaning set forth in the Preamble.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(c)&nbsp;&nbsp;&nbsp;&nbsp;**"**Affiliate**" means each company, corporation, partnership, financial institution, or other entity that, directly or indirectly, is controlled by, controls, or is under common control with, the Employer, where "control" means (i) the ownership of fifty-one percent (51%) or more of the Voting Securities or other voting or equity interests of any corporation, partnership, joint venture or other business entity or (ii) the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of such corporation, partnership, joint venture or other business entity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(d)&nbsp;&nbsp;&nbsp;&nbsp;**"**Annual Base Salary**" has the meaning set forth in **Section[3.](#i671c611926ef4f31a88e0d03e59812c5_1)**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(e)&nbsp;&nbsp;&nbsp;&nbsp;**"**Average Incentive Bonus**" means the average of Incentive Bonuses determined for the immediately preceding three completed fiscal year performance periods of the Employer; *provided, however*, that if an Incentive Bonus has not yet been determined for a previously completed fiscal year performance period as of the Termination Date, then target Incentive Bonus shall be used with respect to such fiscal year for purposes of calculating the Average Incentive Bonus. For purposes of calculating the Average Incentive Bonus, fiscal years for which no bonus was determined to have been earned shall be included in the calculation of the three-year average; *provided, however*, if Executive is employed for fewer than three completed fiscal year performance periods, the Average Incentive Bonus will be based solely on performance for one or two such periods, as appropriate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(f)&nbsp;&nbsp;&nbsp;&nbsp;**"**Bank**" has the meaning set forth in the Preamble.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(g)&nbsp;&nbsp;&nbsp;&nbsp;**"**Base Compensation**" means the amount equal to the sum of (i) the greater of Executive's then-current Annual Base Salary or Executive's Annual Base Salary as of the date one day prior to the Change in Control, and (ii) the Average Incentive Bonus.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(h)&nbsp;&nbsp;&nbsp;&nbsp;**"**Board**" means the board of directors of the Bank.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(i)&nbsp;&nbsp;&nbsp;&nbsp;**"**CEO**" has the meaning set forth in **Section[2.](#i671c611926ef4f31a88e0d03e59812c5_1)**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(j)&nbsp;&nbsp;&nbsp;&nbsp;**"**Change in Control**" means:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;the consummation of the acquisition by any "person" (as such term is defined in Section 13(d) or 14(d) of the Securities Exchange Act of 1934 (the "**1934 Act**")) of "beneficial ownership" (within the meaning of Rule 13d-3 promulgated under the 1934 Act) of fifty percent (50%) or more of the combined voting power of the then outstanding Voting Securities of the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp;during any 12-month period, the individuals who are members of the Incumbent Board cease for any reason to a majority of the Company Board, unless either the election of, or the nomination for election by, the shareholders of any new director was approved by a vote of a majority of the Company Board, in which case such new director shall, for purposes of this Agreement, be considered as a member of the Incumbent Board; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;&nbsp;&nbsp;&nbsp;the consummation by the Company of: (A) a merger or consolidation if the shareholders immediately before such merger or consolidation do not, as a result of such merger or consolidation, own, directly or indirectly, more than fifty percent (50%) of the combined voting power of the then outstanding Voting Securities of the entity resulting from such merger or consolidation in substantially the same proportion as their ownership of the combined voting power of the Voting Securities of the Company outstanding immediately before such merger or consolidation; or (B) a complete liquidation or dissolution or an agreement for the sale or other disposition of all or substantially all of the assets of the Company.

Notwithstanding any provision in this definition to the contrary, a Change in Control shall not be deemed to occur unless the Change in Control constitutes a "change in control event" as such term is defined by Code Section 409A. Notwithstanding any provision in this definition to the contrary, a Change in Control shall not be deemed to occur solely because fifty percent (50%) or more of the combined voting power of the then outstanding Voting Securities of the Company are acquired by (A) a trustee or other fiduciary holding securities under one (1) or more employee benefit plans maintained for employees of the Company or any Affiliate of either or (B) any corporation that, immediately prior to or following such acquisition, is owned directly or indirectly by the shareholders of the Company immediately prior to such acquisition in the same proportion as their ownership of stock of the Company immediately prior to such acquisition.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(k)&nbsp;&nbsp;&nbsp;&nbsp;**"**COBRA**" has the meaning set forth in **Section 4(e)**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(l)&nbsp;&nbsp;&nbsp;&nbsp;**"**Code**" means the Internal Revenue Code of 1986, as amended.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(m)&nbsp;&nbsp;&nbsp;&nbsp;**"**Company**" has the meaning set forth in the **Section 2**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(n)&nbsp;&nbsp;&nbsp;&nbsp;**"**Company Board**" means the board of directors of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(o)&nbsp;&nbsp;&nbsp;&nbsp;**"**Confidential Information**" has the meaning set forth in **Section[7(a)(i).](#i671c611926ef4f31a88e0d03e59812c5_1)**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(p)&nbsp;&nbsp;&nbsp;&nbsp;**"**Covered Period**" means the period beginning six (6) months prior to a Change in Control and ending twelve (12) months after the Change in Control.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(q)&nbsp;&nbsp;&nbsp;&nbsp;**"**Disability**" means that (i) Executive is unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment that can be

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expected to result in death or can be expected to last for a continuous period of not less than twelve (12) months, or (ii) Executive is, by reason of any medically determinable physical or mental impairment that can be expected to result in death or can be expected to last for a continuous period of not less than twelve (12) months, receiving income replacement benefits for a period of not less than three (3) consecutive months under an accident or health plan covering employees of the Employer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(r)&nbsp;&nbsp;&nbsp;&nbsp;**"**Effective Date**" has the meaning set forth in the Preamble.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(s)&nbsp;&nbsp;&nbsp;&nbsp;**"**Employer**" has the meaning set forth in the Preamble.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(t)&nbsp;&nbsp;&nbsp;&nbsp;**"**Employment Period**" has the meaning set forth in **Section[1.](#i671c611926ef4f31a88e0d03e59812c5_1)**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(u)&nbsp;&nbsp;&nbsp;&nbsp;**"**Executive**" has the meaning set forth in the Preamble.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(v)&nbsp;&nbsp;&nbsp;&nbsp;**"**FDIA**" has the meaning set forth in **Section[8(a).](#i671c611926ef4f31a88e0d03e59812c5_1)**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(w)&nbsp;&nbsp;&nbsp;&nbsp;**"**FDIC**" has the meaning set forth in **Section[8(d).](#i671c611926ef4f31a88e0d03e59812c5_1)**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(x)&nbsp;&nbsp;&nbsp;&nbsp;**"**Financial Institution**" means any person, firm, partnership, corporation or trust that owns, operates or is in the process of forming a bank, savings bank, savings and loan association, credit union or similar financial institution, or any unit, division or subsidiary of any of the foregoing, with an office located, or to be located at an address identified in a filing with any regulatory authority, within the Restrictive Area.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(y)&nbsp;&nbsp;&nbsp;&nbsp;**"**Fintech Organization**" means any person, firm, partnership, corporation or trust that is engaged in the business of, or is preparing to engage in, designing, implementing or delivering any technology that seeks to improve and automate the delivery and use of financial services, or any unit division or subsidiary of the foregoing, with an office located, or to be located at an address identified in any formation or organizing documentation, within the United States*.*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(z)&nbsp;&nbsp;&nbsp;&nbsp;**"**Good Reason**" means the occurrence of one (1) of the following events, unless Executive agrees in writing that such event shall not constitute Good Reason:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;an adverse change in the nature, scope or status of Executive's position, authorities or duties from those in effect in accordance with **Section[2](#i671c611926ef4f31a88e0d03e59812c5_1)**immediately following the Effective Date, or if applicable and greater, immediately prior to the Covered Period; *provided, however*, that a diminution of Executive's duties and responsibilities (including a change of Executive's title) by virtue of the Employer becoming a subsidiary, affiliate, division or other similar operating entity of a larger financial institution shall not constitute Good Reason where Executive continues to have similar duties and responsibilities (as determined as of the effective date of the Change in Control) with respect to such subsidiary, affiliate, division or other similar operating entity, and such subsidiary, affiliate, division, or other similar operating entity is of similar size to the Employer (as measured as of the effective date of the Change in Control);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp;an involuntary material reduction of Executive's compensation and benefits measured as of the Effective Date, or if applicable and greater, immediately prior to the Covered Period, *provided* that such reduction is greater than ten percent (10%) of the value as of the Effective Date or immediately prior to the Covered Period, as applicable, and is not part of an overall adjustment in benefits for all employees of the Employer;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;&nbsp;&nbsp;&nbsp;relocation of Executive's primary place of employment by more than fifty (50) miles from Executive's primary place of employment immediately following the Effective Date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv)&nbsp;&nbsp;&nbsp;&nbsp;failure by an acquiror to assume this Agreement at the time of a Change in Control; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v)&nbsp;&nbsp;&nbsp;&nbsp;a material breach by the Employer of this Agreement.

Notwithstanding any provision in this definition to the contrary, prior to Executive's Termination for Good Reason, Executive must give the Employer written notice of the existence of any condition set forth in clause (i) – (v) immediately above within ninety (90) days of its initial existence and the Employer shall have thirty (30) days from the date of such notice in which to cure the condition giving rise to Good Reason, if curable. If, during such thirty (30)-day period, the Employer cures the condition giving rise to Good Reason, the condition shall not constitute Good Reason. Further notwithstanding any provision in this definition to the contrary, in order to constitute a Termination for Good Reason, such Termination must occur within twelve (12) months of the initial existence of the applicable condition.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(aa)&nbsp;&nbsp;&nbsp;&nbsp;"**Incentive Bonus**" has the meaning set forth in **Section[3.](#i671c611926ef4f31a88e0d03e59812c5_1)**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(bb)&nbsp;&nbsp;&nbsp;&nbsp;"**Incumbent Board**" means the members of the Company Board as of the Effective Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(cc)&nbsp;&nbsp;&nbsp;&nbsp;"**Minimum Benefits**" means, as applicable, the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;Executive's earned but unpaid Annual Base Salary for the period ending on the Termination Date; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp;Executive's accrued but unpaid vacation time for the period ending on the Termination Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(dd)&nbsp;&nbsp;&nbsp;&nbsp;"**Parties**" has the meaning set forth in the Preamble.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ee)&nbsp;&nbsp;&nbsp;&nbsp;"**Release**" means a general release and waiver substantially in the form attached hereto as **<u>Exhibit A</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ff)&nbsp;&nbsp;&nbsp;&nbsp;"**Restrictive Area**" has the meaning set forth in **Section[7(c).](#i671c611926ef4f31a88e0d03e59812c5_1)**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(gg)&nbsp;&nbsp;&nbsp;&nbsp;"**Restrictive Covenants**" has the meaning set forth in **Section**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(hh)&nbsp;&nbsp;&nbsp;&nbsp;"**Restrictive Period**" has the meaning set forth in **Section[7(c).](#i671c611926ef4f31a88e0d03e59812c5_1)**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp;"**Severance Amount**" means:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;For any Termination that occurs during the Employment Period and not during a Covered Period, an amount equal to one hundred percent (100%) of Executive's Annual Base Salary as of the respective Termination Date;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp;For any Termination that occurs during a Covered Period, an amount equal to one hundred fifty percent (150%) of Executive's Base Compensation as of the respective Termination Date; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(jj)&nbsp;&nbsp;&nbsp;&nbsp;"**Termination**" means the termination of Executive's employment with the Employer following the Effective Date and prior to the end of the Employment period either:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;by the Employer, other than a Termination for Cause (but excluding, for the avoidance of doubt, or a termination as a result of Executive's death or Disability); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp;by Executive for Good Reason.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(kk)&nbsp;&nbsp;&nbsp;&nbsp;"**Termination Date**" means the date of termination of Executive's employment with the Employer for any reason.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ll)&nbsp;&nbsp;&nbsp;&nbsp;"**Termination for Cause**" means only a termination of Executive's employment with the Employer as a result of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;Executive's willful and continuing failure, that is not remedied within twenty (20) days after receipt of written notice of such failure from the Employer, to perform Executive's obligations hereunder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp;Executive's conviction of, or the pleading of *nolo contendere* to, a crime of embezzlement or fraud or a felony under the laws of the United States or any state thereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;&nbsp;&nbsp;&nbsp;Executive's breach of fiduciary responsibility to the Employer;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv)&nbsp;&nbsp;&nbsp;&nbsp;an act of dishonesty by Executive that is materially injurious to the Employer;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v)&nbsp;&nbsp;&nbsp;&nbsp;Executive's material violation of any the Company's or the Bank's written policies or codes of conduct, including written policies related to discrimination, harassment, performance of illegal or unethical activities, and ethical misconduct; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi)&nbsp;&nbsp;&nbsp;&nbsp;Executive's willful unauthorized disclosure of Confidential Information.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(mm)&nbsp;&nbsp;&nbsp;&nbsp;"**Voting Securities**" means any securities that ordinarily possess the power to vote in the election of directors without the happening of any precondition or contingency.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(nn)&nbsp;&nbsp;&nbsp;&nbsp;"**Whistleblower Program**" has the meaning set forth in **Section[7(a)(iii)](#i671c611926ef4f31a88e0d03e59812c5_1)**[.](#i671c611926ef4f31a88e0d03e59812c5_1)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**18.&nbsp;&nbsp;&nbsp;&nbsp;<u>Survival</u>.** The provisions of **Sections[5](#i671c611926ef4f31a88e0d03e59812c5_1)**through**[18](#i671c611926ef4f31a88e0d03e59812c5_1)**shall survive the termination of this Agreement.

**\*\*\*\***

------

**IN WITNESS WHEREOF,** the Parties have executed this Agreement as of the Effective Date.

---

| | | | |
|:---|:---|:---|:---|
| **LINCOLN SAVINGS BANK** | **LINCOLN SAVINGS BANK** | **LINCOLN SAVINGS BANK** | **EMILY GIRSCH** |
| **By:** | /s/ Jim Denholm | /s/ Jim Denholm | /s/ Emily Gisrsh |
|  |  |  | (Signature) |
| **Name:** | **Name:** | Jim Denholm | 2320 Boxwood Dr |
|  |  |  | (Address) |
| **Its:** | EVP, Chief People Officer | EVP, Chief People Officer | Cedar Falls, IA 50613 |
|  |  |  | (Address) |

---

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**<u>EXHIBIT A</u>**

**<u>RELEASE AND WAIVER OF CLAIMS</u>**

This **Release and Waiver of Claims** (this "**Release and Waiver**") is made and entered into by and among **Lincoln Savings Bank** (the "**Bank**" or the "**Employer**"), and Emily Girsch ("**Executive**," and together with the Employer, the "**Parties**").

**RECITALS**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**A.&nbsp;&nbsp;&nbsp;&nbsp;**Executive and the Employer are parties to that certain Employment Agreement, dated as of September 16, 2024 (the "**Employment Agreement**").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**B.&nbsp;&nbsp;&nbsp;&nbsp;**Pursuant to the Employment Agreement, certain benefits due to Executive are conditioned on Executive's full release of claims against the Employer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**C.&nbsp;&nbsp;&nbsp;&nbsp;**The Parties desire to settle fully and amicably all issues between them, including any issues arising out of Executive's employment with the Employer and the termination of that employment.

**AGREEMENTS**

For and in consideration of the mutual promises contained herein, and for other good and sufficient consideration, the receipt of which is hereby acknowledged, the Parties, intending to be legally bound, hereby agree as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.&nbsp;&nbsp;&nbsp;&nbsp;<u>Termination of Employment</u>.** Executive's employment with the Employer shall be terminated effective as of the close of business on [_____________] (the "**Termination Date**").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.&nbsp;&nbsp;&nbsp;&nbsp;<u>Compensation and Benefits</u>.** Subject to the terms of this Release and Waiver, the Employer shall compensate Executive under this Release and Waiver as follows (collectively, the "**Severance Payments**"):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;<u>Severance Amount</u>. [________________], payable in accordance with the terms and conditions of the Employment Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;<u>Accrued Salary and Paid Time Off</u>. Executive shall be entitled to a lump sum payment in an amount equal to Executive's earned but unpaid annual base salary and accrued but unused paid time off for the period ending on the Termination Date, with such payment to be made on the first payroll date following the Termination Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;<u>COBRA Benefits</u>. Executive and Executive's qualified beneficiaries, as applicable, shall be entitled to continuation of group health coverage following the Termination Date under the Employer's group health plan, to the extent required under the Consolidated Omnibus Budget Reconciliation Act of 1986, with Executive required to pay the same amount as Executive would pay if Executive continued in employment with the Employer during such period as described in Section 4(e) of the Employment Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;<u>Executive Acknowledgement</u>. Executive acknowledges that, subject to fulfillment of all obligations provided for herein, Executive has been fully compensated by the Employer, including under all applicable laws, and that nothing further is owed to Executive with respect to wages,

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bonuses, severance, other compensation, or benefits. Executive further acknowledges that the Severance Payments (other than (b) and (c) immediately above) are consideration for Executive's promises contained in this Release and Waiver, and that the Severance Payments are above and beyond any wages, bonuses, severance, other compensation, or benefits to which Executive is entitled from the Employer under the terms of Executive's employment or under any other contract or law that Executive would be entitled to absent execution of this Release and Waiver.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;<u>Withholding</u>. The Severance Payments shall be subject to all taxes and other payroll deductions required by law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.&nbsp;&nbsp;&nbsp;&nbsp;<u>Termination of Benefits</u>.** Except as provided in **Section 2** above or as may be required by law, Executive's participation in all employee benefit (pension and welfare) and compensation plans of the Employer shall cease as of the Termination Date. Nothing contained herein shall limit or otherwise impair Executive's right to receive pension or similar benefit payments that are vested as of the Termination Date under any applicable tax-qualified pension or other plans, pursuant to the terms of the applicable plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.&nbsp;&nbsp;&nbsp;&nbsp;<u>Release of Claims and Waiver of Rights</u>.** Executive, on Executive's own behalf and that of Executive's heirs, executors, attorneys, administrators, successors, and assigns, fully and forever releases and discharges Lincoln Bancorp (the "**Company**"), and the Bank, their predecessors, successors, parents, subsidiaries, affiliates, and assigns, and its and their directors, officers, trustees, employees, agents, and shareholders, both in their individual and official capacities, and the current and former trustees and administrators of each retirement and other benefit plan applicable to the employees and former employees of the Company and/or the Bank, both in their official and individual capacities (the "**Releasees**"), from all liability, claims, demands, actions, and causes of action Executive now has, may have had, or may ever have, whether currently known or unknown, relating to acts or omissions as of or prior to Executive's execution of this Release and Waiver, including liability, claims, demands, actions, and causes of action:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;Relating to Executive's employment or other association with the Company and/or the Bank, or the termination of such employment;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;Relating to wages, bonuses, other compensation, or benefits;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;Relating to any employment or change in control contract;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;Relating to any employment law, including

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;The Civil Rights Act of 1964,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp;The Civil Rights Act of 1991,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;&nbsp;&nbsp;&nbsp;The Equal Pay Act,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv)&nbsp;&nbsp;&nbsp;&nbsp;The Employee Retirement Income Security Act of 1974,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v)&nbsp;&nbsp;&nbsp;&nbsp;The Age Discrimination in Employment Act (the "ADEA"),

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi)&nbsp;&nbsp;&nbsp;&nbsp;The Older Workers Benefit Protection Act,

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii)&nbsp;&nbsp;&nbsp;&nbsp;The Worker Adjustment and Retraining Notification Act,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii)&nbsp;&nbsp;&nbsp;&nbsp;The Americans with Disabilities Act,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ix)&nbsp;&nbsp;&nbsp;&nbsp;The Family and Medical Leave Act,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x)&nbsp;&nbsp;&nbsp;&nbsp;The Occupational Safety and Health Act,The Fair Labor Standards Act,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xi)&nbsp;&nbsp;&nbsp;&nbsp;The National Labor Relations Act,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xii)&nbsp;&nbsp;&nbsp;&nbsp;The Genetic Information Nondiscrimination Act,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xiii)&nbsp;&nbsp;&nbsp;&nbsp;The Rehabilitation Act,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xiv)&nbsp;&nbsp;&nbsp;&nbsp;The Fair Credit Reporting Act,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xv)&nbsp;&nbsp;&nbsp;&nbsp;Executive Order 11246,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xvi)&nbsp;&nbsp;&nbsp;&nbsp;Executive Order 11141,&nbsp;&nbsp;&nbsp;&nbsp;and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xvii)&nbsp;&nbsp;&nbsp;&nbsp;Each other federal, state, and local statute, ordinance, and regulation relating to employment;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;Relating to any right of payment for disability;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;&nbsp;&nbsp;Relating to any statutory or contractual right of payment; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.&nbsp;&nbsp;&nbsp;&nbsp;<u>Specific Release of ADEA Claims</u>.** In further consideration of the payments and benefits provided to Executive in this Agreement, the Executive hereby irrevocably and unconditionally waives, releases, and discharges the Releasees from any and all claims, whether known or unknown, from the beginning of time through the date of Executive's execution of this Agreement, arising under the ADEA, as amended, and its implementing regulations. By signing this Agreement, Executive hereby acknowledges and confirms that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;Executive has read this Agreement in its entirety and understands all of its terms;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;by this Agreement, Executive has been advised in writing to consult with an attorney, and has consulted with such counsel, who helped to negotiate this Agreement, to the extent Executive has deemed necessary before signing this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;Executive knowingly, freely, and voluntarily agrees to all of the terms and conditions set out in this Agreement including, without limitation, the waiver, release, and covenants contained in it;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;Executive is executing this Agreement, including the waiver and release, in exchange for good and valuable consideration in addition to anything of value to which Executive is otherwise entitled;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;Executive was given at least twenty-one (21) days to consider the terms of this Agreement and consult with an attorney of Executive's choice, although Executive may sign it sooner if

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desired and changes to this Agreement, whether material or immaterial, do not restart the running of the twenty-one (21)-day period;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;&nbsp;&nbsp;Executive understands that Executive has seven (7) days from the date of signing this Agreement to revoke the release in this paragraph, and may do so by delivering notice of revocation to outside counsel for Employer, Allison N. Powers at Barack, Ferrazzano, Kirschbaum & Nagelberg LLP, by email (<u>allison.powers@bfkn.com</u>) before the end of the seven (7)-day period; provided, however, that Executive understands and acknowledges that should Executive choose to revoke this ADEA release, the Agreement as a whole will fail to become effective and Executive will not receive or be entitled to the Severance Payments described in **Section 2**; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;&nbsp;&nbsp;&nbsp;Executive understands that the release in this paragraph does not apply to rights and claims that may arise after the date on which Executive signs this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.&nbsp;&nbsp;&nbsp;&nbsp;<u>Exclusions from General Release</u>.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;Excluded from the Release and Waiver are any claims or rights arising pursuant to this Release and Waiver and any claims or rights that cannot be waived by law, Executive's claims to defense and indemnity in accordance with Company's or Employer's by-laws or any directors and officers insurance policies that Executive is a beneficiary under, as well as Executive's right to file a charge with an administrative agency or participate in any agency investigation, including with the Equal Employment Opportunity Commission. Executive is, however, waiving the right to recover any money in connection with a charge or investigation and the right to recover any money in connection with a charge filed by any other individual or by the Equal Employment Opportunity Commission or any other federal or state agency, except where such waivers are prohibited by law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;Notwithstanding the foregoing, nothing contained in this **Section 6** shall limit Executive's ability to file a charge or complaint with any governmental, administrative or judicial agency (each, an "**Agency**") pursuant to any applicable whistleblower statute or program (each, a "**Whistleblower Program**"). Executive acknowledges that this **Section 6** does not limit (A) his ability to communicate, in connection with a charge or complaint pursuant to any Whistleblower Program with any Agency or otherwise participate in any investigation or proceeding that may be conducted by such Agency, including providing documents or other information, without notice to the Employer, or (B) his right to receive an award for information provided to such Agency pursuant to any Whistleblower Program.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7.&nbsp;&nbsp;&nbsp;&nbsp;<u>Covenant Not to Sue</u>.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;A "covenant not to sue" is a legal term that means Executive promises not to file a lawsuit in court. It is different from the Release and Waiver. Besides waiving and releasing the claims covered by **Section 4** above, Executive shall never sue the Releasees in any forum for any reason covered by the Release and Waiver. Notwithstanding this covenant not to sue, Executive may bring a claim against the Employer to enforce this Release and Waiver or to challenge the validity of this Release and Waiver under the ADEA. If Executive sues any of the Releasees in violation of this Release and Waiver, Executive shall be liable to them for their reasonable attorneys' fees and costs (including the costs of experts, evidence, and counsel) and other litigation costs incurred in defending against Executive's suit. In addition, if Executive sues any of the Releasees in violation of this Release and Waiver, the Employer can require Executive to return all but a sum of $100 of the Severance Payments, which sum is, by itself,

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adequate consideration for the promises and covenants in this Release and Waiver. In that event, the Employer shall have no obligation to make any further Severance Payments.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;If Executive has previously filed any lawsuit against any of the Releasees, Executive shall immediately take all necessary steps and execute all necessary documents to withdraw or dismiss such lawsuit to the extent Executive's agreement to withdraw, dismiss, or not file a lawsuit would not be a violation of any applicable law or regulation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8.&nbsp;&nbsp;&nbsp;&nbsp;<u>Non-Disparagement</u>.** At all times following the signing of this Release and Waiver, Executive shall refrain from any vilification of the Employer and shall refrain from making any false, negative, critical or disparaging statements, implied or expressed, concerning the Employer, including management style, methods of doing business, the quality of products and services, role in the community, or treatment of employees. Executive shall do nothing that would damage the Employer's business reputation or good will. Employer, for its part, will not knowingly disparage or make any derogatory statements regarding Executive; provided, however, that the Employer's obligations under this **Section 8** shall be limited to communications by the Employer's senior corporate executives having the rank of Senior Vice President or above and members of the board of directors of Employer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9.&nbsp;&nbsp;&nbsp;&nbsp;<u>Restrictive Covenants</u>.** Section[7](#i671c611926ef4f31a88e0d03e59812c5_1)of the Employment Agreement (entitled "Restrictive Covenants"), shall continue in full force and effect as if fully restated herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**10.&nbsp;&nbsp;&nbsp;&nbsp;<u>No Admissions</u>.** The Employer denies that any of the Releasees have taken any improper action against Executive, and this Release and Waiver shall not be admissible in any proceeding as evidence of improper action by any of the Releasees.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**11.&nbsp;&nbsp;&nbsp;&nbsp;<u>Confidentiality of Release and Waiver</u>.** Executive shall keep the existence and the terms of this Release and Waiver confidential, except for Executive's immediate family members and Executive's legal and tax advisors in connection with services related hereto and except as may be required by law or in connection with the preparation of tax returns.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**12.&nbsp;&nbsp;&nbsp;&nbsp;<u>Non-Waiver</u>.** The Employer's waiver of a breach of this Release and Waiver by Executive shall not be construed or operate as a waiver of any subsequent breach by Executive of the same or of any other provision of this Release and Waiver.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**13.&nbsp;&nbsp;&nbsp;&nbsp;<u>Governing Law</u>.** This Release and Waiver shall be governed by and construed under the laws of the State of Iowa without regard to principles of conflict of laws (whether in the State of Iowa or any other jurisdiction) that would cause the application of the laws of any jurisdiction other than the State of Iowa.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**14.&nbsp;&nbsp;&nbsp;&nbsp;<u>Entire Agreement</u>.** This Release and Waiver sets forth the entire agreement of the Parties regarding the subject matter hereof and shall be final and binding as to all claims that have been or could have been advanced on behalf of Executive pursuant to any claim arising out of or related in any way to Executive's employment with the Employer and the termination of that employment. This Release and Waiver may not be amended, modified, altered, or changed except by express written consent of the Parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**15.&nbsp;&nbsp;&nbsp;&nbsp;<u>Counterparts</u>.** This Release and Waiver 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 agreement.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**16.&nbsp;&nbsp;&nbsp;&nbsp;<u>Successors</u>.** This Release and Waiver shall be binding upon and inure to the benefit of the parties to this Release and Waiver, their successors and assigns.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**17.&nbsp;&nbsp;&nbsp;&nbsp;<u>Enforcement</u>.** The provisions of this Release and Waiver shall be regarded as divisible and separable and if any provision should be declared invalid or unenforceable by a court of competent jurisdiction, the validity and enforceability of the remaining provisions shall not be affected thereby. If the scope of any restriction or requirement contained in this Release and Waiver is too broad to permit enforcement of such restriction or requirement to its full extent, then such restriction or requirement shall be enforced to the maximum extent permitted by law, and Executive hereby consents that any court of competent jurisdiction may so modify such scope in any proceeding brought to enforce such restriction or requirement. In addition, Executive stipulates that breach by Executive of restrictions and requirements under this Release and Waiver will cause irreparable damage to the Releasees in the case of Executive's breach and that the Employer would not have entered into this Release and Waiver without Executive binding Executive to these restrictions and requirements. In the event of Executive's breach of this Release and Waiver, in addition to any other remedies the Employer may have, and without bond and without prejudice to any other rights and remedies that the Employer may have for Executive's breach of this Release and Waiver, the Employer shall be relieved of any obligation to provide Severance Payments and shall be entitled to an injunction to prevent or restrain any such violation by Executive and all persons directly or indirectly acting for or with Executive.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**18.&nbsp;&nbsp;&nbsp;&nbsp;<u>Construction</u>.** In this Release and Waiver, unless otherwise stated, the following uses apply: (a) references to a statute or law refer to the statute or law and any amendments and any successor statutes or laws, and to all regulations promulgated under or implementing the statute or law, as amended, or its successors, as in effect at the relevant time; (b) in computing periods from a specified date to a later specified date, the words "from" and "commencing on" (and the like) mean "from and including," and the words "to," "until," and "ending on" (and the like) mean "to, and including"; (c) references to a governmental or quasi-governmental agency, authority, or instrumentality also refer to a regulatory body that succeeds to the functions of the agency, authority, or instrumentality; (d) the words "include," "includes," and "including" (and the like) mean "include, without limitation," "includes, without limitation," and "including, without limitation," (and the like) respectively; (e) the words "hereof," "herein," "hereto," "hereby," (and the like) refer to this Release and Waiver as a whole; (f) any reference to a document or set of documents, and the rights and obligations of the parties under any such documents, means such document or documents as amended from time to time, and all modifications, extensions, renewals, substitutions, or replacements thereof; (g) all words used shall be construed to be of such gender or number as the circumstances and context require; and (h) the captions and headings of preambles, recitals, sections, and exhibits appearing in or attached to this Release and Waiver have been inserted solely for convenience of reference and shall not be considered a part of this Release and Waiver, nor shall any of them affect the meaning or interpretation of this Release and Waiver or any of its provisions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**19.&nbsp;&nbsp;&nbsp;&nbsp;<u>Future Cooperation</u>.** In connection with any and all claims, disputes, or negotiations, or governmental, internal, or other investigations, lawsuits, or administrative proceedings (the "**Legal Matters**") involving any of the Releasees (collectively, the "**Disputing Parties**" and, individually, each a "**Disputing Party**"), Executive shall make Executive reasonably available, upon reasonable notice from the Employer and without the necessity of subpoena, to provide information and documents, provide declarations and statements regarding a Disputing Party, meet with attorneys and other representatives of a Disputing Party, prepare for and give depositions and testimony, and otherwise cooperate in the investigation, defense, and prosecution of any and all such Legal Matters, as may, in the good faith and judgment of the Employer, be reasonably requested. The Employer shall consult with Executive and make

------

reasonable efforts to schedule such assistance so as not to materially disrupt Executive's business and personal affairs. The Employer shall reimburse all reasonable expenses incurred by Executive in connection with such assistance, including travel, meals, rental car, and hotel expenses, if any (and attorney's fees and costs); *provided* such expenses are approved in advance by the Employer and are documented in a manner consistent with expense reporting policies of the Employer as may be in effect from time to time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**20.&nbsp;&nbsp;&nbsp;&nbsp;<u>Representations by Executive</u>.** Executive acknowledges each of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;Executive is aware that this Release and Waiver includes a release of all known and unknown claims.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;Executive is legally competent to execute this Release and Waiver and Executive has not relied on any statements or explanations made by the Employer or its attorneys not otherwise set forth herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;Any modifications, material or otherwise, made to this Release and Waiver shall not restart or affect in any manner the original 21-day consideration period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;Executive has been offered at least 21 days to consider this Release and Waiver.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;Executive has been afforded the opportunity to be advised by legal counsel regarding the terms of this Release and Waiver, including the release and waiver of claims, and to negotiate such terms.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;&nbsp;&nbsp;Executive, without coercion of any kind, freely, knowingly, and voluntarily enters into this Release and Waiver.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;&nbsp;&nbsp;&nbsp;Executive has the right to rescind the Release and Waiver by written notice to the Employer within seven (7) calendar days after Executive has signed this Release and Waiver, and the Release and Waiver shall not become effective or enforceable until seven (7) calendar days after Executive has signed this Release and Waiver, as evidenced by the date set forth below Executive's signature on the signature page hereto. Any such rescission must be in writing and delivered by hand, or sent by U.S. Mail within such seven (7)-day period, to the attention of [_____________________]. If delivered by U.S. Mail, the rescission must be: (i) postmarked within the seven (7)-day period and (ii) sent by certified mail, return receipt requested.

**\*&nbsp;&nbsp;&nbsp;&nbsp;\*&nbsp;&nbsp;&nbsp;&nbsp;\*&nbsp;&nbsp;&nbsp;&nbsp;\***

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**IN WITNESS WHEREOF,** the Parties have executed this Release and Waiver as of dates set forth below their respective signatures below.

---

| | |
|:---|:---|
| **LINCOLN SAVINGS BANK** | |
| **By:** | **EMILY GIRSCH** |
|  | (Signature) |
| **Name:** |  |
|  | (Address) |
| **Its:** |  |
|  | (Address) |

---

## Exhibit 10.8

**Exhibit 10.8**

**LINCOLN BANCORP**

**LINCOLN SAVINGS BANK**

**<u>EMPLOYMENT AGREEMENT</u>**

This **Employment Agreement** ("**Agreement**") is made and entered into as of June 9, 2025 (the "**Effective Date**"), by and between **Lincoln Bancorp** (the "**Company**"), **Lincoln Savings Bank** (the "**Bank**," and together with the Company, the "**Employer**"), and Karen Kothari Barnes ("**Executive**," and together with the Employer, the "**Parties**").

**RECITALS**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**A.&nbsp;&nbsp;&nbsp;&nbsp;**The Employer desires to employ Executive pursuant to the terms of this Agreement, and Executive desires to be employed pursuant to the terms of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**B.&nbsp;&nbsp;&nbsp;&nbsp;**The Parties have made commitments to each other on a variety of important issues concerning Executive's employment, including the performance that will be expected of Executive, the compensation Executive will be paid, how long and under what circumstances Executive will remain employed and the financial details relating to any decision that either the Employer or Executive may make to terminate this Agreement.

**C.&nbsp;&nbsp;&nbsp;&nbsp;**The Parties desire to enter into this Agreement as of the Effective Date

**AGREEMENTS**

In consideration of the foregoing and the mutual promises and covenants of the Parties set forth in this Agreement, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties, intending to be legally bound, hereby expressly covenant and agree as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.&nbsp;&nbsp;&nbsp;&nbsp;<u>Employment Period</u>.** The Employer shall employ Executive, and Executive shall be so employed, during the Employment Period in accordance with the terms of this Agreement. The "**Employment Period**" shall be the period beginning on the Effective Date and ending on December 31, 2026, unless sooner terminated as provided herein. The Employment Period shall automatically be extended for one (1) additional year beginning on January 1, 2027 and on each January 1 thereafter unless either Party notifies the other Party, by written notice delivered no later than ninety (90) days prior to such January 1, that the Employment Period shall not be extended for an additional year.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.&nbsp;&nbsp;&nbsp;&nbsp;<u>Duties</u>.** During the Employment Period, Executive shall devote Executive's full business time, energies, and talents to serving as the Company's EVP, Chief Risk Officer and General Counsel at the direction of the Chief Executive Officer (CEO) of Lincoln Bankcorp (the Company) and the Bank. Executive shall have such duties and responsibilities as may be assigned to Executive from time to time by the CEO, which duties and responsibilities shall be commensurate with Executive's position, shall perform all duties assigned to Executive faithfully and efficiently, subject to the direction of the CEO and shall have such authorities and powers as are inherent to the undertakings applicable to Executive's position and necessary to carry out the responsibilities and duties required of Executive hereunder. Executive shall perform the duties required by this Agreement at the Employer's Iowa headquarters, or such other location agreed to by the Parties, unless the nature of such duties requires otherwise.

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Notwithstanding the foregoing provisions of this **Section[1,](#i8a992ac759434578a47621c4b51563fd_1)** during the Employment Period, Executive may devote reasonable time to activities other than those required under this Agreement, including activities of a charitable, educational, religious or similar nature (including professional associations) to the extent such activities do not, in the reasonable judgment of the CEO, inhibit, prohibit, interfere with or conflict with Executive's duties under this Agreement or conflict in any material way with the business of the Employer or an Affiliate; *provided, however,* that Executive shall not serve on the board of directors of any business (other than the Employer or any Affiliate) or hold any other position with any business without receiving the prior written consent of the CEO.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.&nbsp;&nbsp;&nbsp;&nbsp;<u>Compensation and Benefits</u>.** Subject to the terms of this Agreement, during the Employment Period, while Executive is employed by the Employer, the Employer shall compensate Executive for Executive's services as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;*Annual Base Salary.* Executive shall be compensated with a salary at an annual rate of two-hundred and sixty-five thousandC dollars ($265,000 numeric dollar amount) (the "**Annual Base Salary**"), which shall be payable in accordance with the normal payroll practices of the Employer then in effect. Executive's Annual Base Salary shall be reviewed for increases beginning on January 1, 2026, and on each anniversary of such date, but shall not be reduced below its then current level during the Employment Period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;*Annual Incentive Bonus.* At the sole discretion of the Company Board, Executive shall be eligible to receive performance-based annual incentive bonuses (each, the "**Incentive Bonus**") from the Employer for each fiscal year ending during the Employment Period. The target annual bonus shall be 20% of the Executive's then current base salary, based on the achievement of annual individual performance objectives and performance objectives of the Employer, established by the Board in good faith consultation with the Executive. Any such Incentive Bonus shall be paid to the Executive as soon as reasonably practicable following the completion of the respective fiscal year audit by the Employer's auditor; provided that, the Executive must be actively employed on the payment date for such Incentive Bonus. Executive's Incentive Bonus for 2025, if any, will be pro-rated based on Executive's services to the Bank for 2025, as determined by the Company Board.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;*Other Benefits*. During the Employment Period, Executive and Executive's dependents, as the case may be, shall be eligible to participate, subject to the terms thereof, in all pension and similar benefit plans (including qualified, nonqualified and supplemental plans) and all medical, dental, vision, disability, group and executive life, accidental death and travel accident insurance and other similar welfare benefit plans and programs of the Employer as may be in effect from time to time with respect to senior executives employed by the Employer, on as favorable a basis as other similarly situated senior executives.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.&nbsp;&nbsp;&nbsp;&nbsp;<u>Rights upon Termination</u>.** Executive's right to benefits, if any, for periods after the Termination Date shall be determined in accordance with this **Section[4:](#i8a992ac759434578a47621c4b51563fd_1)**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;**<u>Minimum Benefits</u>.** If the Termination Date occurs during the Employment Period for any reason, Executive shall be entitled to the Minimum Benefits in addition to any other benefits to which Executive may be entitled under the

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following provisions of this **Section[4](#i8a992ac759434578a47621c4b51563fd_1)**or the express terms of any employee benefit plan or as required by law. Any benefits to be provided to Executive pursuant to this **Section[4(a)](#i8a992ac759434578a47621c4b51563fd_1)**shall be provided within thirty (30) days after the Termination Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;**<u>Termination for Cause; Death; Disability; Voluntary Resignation; Non-Renewal</u>.** If the Termination Date occurs during the Employment Period and is a result of a Termination for Cause, Executive's death or Disability, or a termination by Executive other than for Good Reason, or if this Agreement expires due to notice of non-renewal by either Party as provided under **Section[1,](#i8a992ac759434578a47621c4b51563fd_1)** then, other than the Minimum Benefits, Executive shall have no right to benefits under this Agreement (and the Employer and its Affiliates shall have no obligation to provide any such benefits) for periods after the Termination Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;**<u>Termination other than a Termination for Cause or a Termination for Good Reason</u>.** If Executive's employment is subject to a Termination, then, in addition to the Minimum Benefits, subject to the Release requirements of **Section 5**, the Employer shall provide Executive with the following benefits:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;The Employer shall pay Executive a lump sum payment in an amount equal to the Severance Amount on the first Employer payroll date that occurs on or following the sixtieth (60<sup>th</sup>) day following the Termination Date, but in no event later than 2½ months following the end of the year in which the Termination Date occurs.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp;Executive (and Executive's dependents, as may be applicable) shall be entitled to the benefits described in **Section[4(d).](#i8a992ac759434578a47621c4b51563fd_1)**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;**<u>Medical, Dental and Vision Benefits</u>.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;If Executive's employment with the Employer is subject to a Termination, then, to the extent that Executive or any of Executive's dependents may be covered under the terms of any medical, dental or vision plans maintained for active employees of the Employer or any Affiliate, the Employer shall provide Executive and those dependents with Consolidated Omnibus Budget Reconciliation Act of 1985, as amended ("**COBRA**") coverage equivalent to the coverage received while Executive was employed with the Employer for as long as Executive is eligible for and elects coverage under the health care continuation rules of COBRA. For a period of twelve (12) months, Executive shall be required to pay the same amount as Executive would pay if Executive continued in employment with the Employer during such period and thereafter Executive shall be responsible for the full cost of such continued coverage. Such coverage shall be provided only to the extent that it does not result in any additional tax or other penalty being imposed on the Employer or any Affiliate. In the event Executive or any of Executive's dependents is or becomes eligible for coverage under the terms of any other medical, dental or vision plan of a subsequent employer with plan benefits that are comparable to Employer (or any Affiliate) plan benefits, the Employer's obligations under this **Section[4(d)](#i8a992ac759434578a47621c4b51563fd_1)**shall cease with respect to the eligible Executive and dependents. Executive and Executive's dependents must notify the Employer of any subsequent employment and eligibility for such comparable coverage.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;**<u>Other Benefits</u>.** Executive's rights following a termination of employment with the Employer and its Affiliates for any reason with respect to any benefits, incentives or awards provided to Executive pursuant to the terms of any plan,

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program or arrangement sponsored or maintained by the Employer or an Affiliate, whether tax-qualified or not, which are not specifically addressed herein, shall be subject to the terms of such plan, program or arrangement, and this Agreement shall have no effect upon such terms except as specifically provided herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;&nbsp;&nbsp;**<u>Removal from any Boards and Positions</u>.** Upon Executive's termination of employment for any reason under this Agreement, Executive shall be deemed to resign (i) if a member, from the Company Board, the Board, and the board of directors of any Affiliate and any other board to which Executive has been appointed or nominated by or on behalf of the Company, (ii) from each position with the Company, the Bank, or any Affiliate, including as an officer of the Company, the Bank, or any of their Affiliates and (iii) as a fiduciary of any employee benefit plan of the Company or the Bank.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.&nbsp;&nbsp;&nbsp;&nbsp;<u>Release</u>.** Notwithstanding any provision of this Agreement to the contrary, no payments or benefits shall be owed to Executive under **Sections 4(c), 4(d), or 4(e)** unless Executive executes and delivers to the Employer a Release within forty-five (45) days following the Termination Date, and any applicable revocation period has expired prior to the sixtieth (60<sup>th</sup>) day following the Termination Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.&nbsp;&nbsp;&nbsp;&nbsp;<u>Excise Tax Limitation</u>.** It is the intention of the Parties that no portion of any payment under this Agreement, or payments to or for the benefit of Executive under any other agreement or plan, be deemed to be an excess parachute payment, as such term is defined under Code Section 280G and the regulations promulgated thereunder. The present value of payments to or for the benefit of Executive in the nature of compensation, and to which Code Section 280G applies shall not exceed an amount equal to $1.00 less than the maximum amount that the Employer may pay without loss of deduction under Code Section 280G(a). Any modification, reduction or elimination of payments necessary to accomplish the foregoing shall be done in accordance with applicable provisions of Code Section 409A.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7.&nbsp;&nbsp;&nbsp;&nbsp;<u>Restrictive Covenants</u>.** Executive acknowledges that Executive has been and will continue to be provided intimate knowledge of the business practices, trade secrets, and other confidential and proprietary information of the Employer and its Affiliates (including the Confidential Information), which, if exploited by Executive, would seriously, adversely, and irreparably affect the interests of the Employer and its Affiliates and the ability of each to continue its business and, therefore, Executive hereby agrees to be bound by the restrictions contained in this **Section 7** (the **"Restrictive Covenants").**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;**<u>Confidential Information</u>.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;Executive acknowledges that, during the course of Executive's employment with the Employer, Executive may produce and have access to confidential and/or proprietary, non-public information concerning the Employer or its Affiliates, including marketing materials, financial and other information concerning customers and prospective customers, customer lists, records, data, trade secrets, proprietary business information, pricing and profitability information and policies, strategic planning, commitments, plans, procedures, litigation, pending litigation and other information not generally available to the public (collectively, **"Confidential Information").** Executive shall not directly or indirectly use, disclose, copy or make lists of Confidential Information for the benefit of anyone other than the Employer, either during or after Executive's employment with the Employer, except to the extent such disclosure is authorized in writing by the Employer, required by law or any competent administrative agency or judicial authority, or otherwise as reasonably necessary or appropriate in connection with the performance by Executive of Executive's duties hereunder. If

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Executive receives a subpoena or other court order or is otherwise required by law to provide information to a governmental authority or other person concerning the activities of the Employer or any of its Affiliates, or Executive's activities in connection with the business of the Employer or any of its Affiliates, Executive shall immediately notify the Employer of such subpoena, court order or other requirement and deliver forthwith to the Employer a copy thereof and any attachments and non-privileged correspondence related thereto. Executive shall take reasonable precautions to protect against the inadvertent disclosure of Confidential Information. Executive shall abide by the Employer's reasonable policies, as in effect from time to time, respecting avoidance of interests conflicting with those of the Employer and its Affiliates.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp;Executive shall not be held criminally or civilly liable under any federal or state trade secret law for the disclosure of a trade secret that (A) is made (1) in confidence to a federal, state, or local government official, either directly or indirectly, or to an attorney, and (2) solely for the purpose of reporting or investigating a suspected violation of law; or (B) is made in a complaint or other document filed in a lawsuit or other proceeding, if such filing is made under seal. Accordingly, Executive has the right to disclose in confidence trade secrets to federal, state, and local government officials, or to an attorney, for the sole purpose of reporting or investigating a suspected violation of law. Executive also has the right to disclose trade secrets in a document filed in a lawsuit or other proceeding, but only if the filing is made under seal and protected from public disclosure. Nothing in this Agreement is intended to conflict with 18 U.S.C. § 1833(b) or create liability for disclosures of trade secrets that are expressly allowed by 18 U.S.C. § 1833(b). Nothing in this Agreement shall be construed to authorize, or limit liability for, an act that is otherwise prohibited by law, such as the unlawful access of material by unauthorized means.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;&nbsp;&nbsp;&nbsp;Nothing contained in this **Section 7(a)** shall limit Executive's ability to file a charge or complaint with any governmental, administrative or judicial agency (each, an "**Agency**") pursuant to any applicable whistleblower statute or program (each, a "**Whistleblower Program**"). Executive acknowledges that this **Section 7(a)** does not limit (i) Executive's ability to communicate, in connection with a charge or complaint pursuant to any Whistleblower Program with any Agency or otherwise participate in any investigation or proceeding that may be conducted by such Agency, including providing documents or other information, without notice to the Employer, or (ii) Executive's right to receive an award for information provided to such Agency pursuant to any Whistleblower Program.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;**<u>Documents and Property</u>.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;All records, files, documents and other materials or copies thereof relating to the business of the Employer or its Affiliates that Executive prepares, receives or uses shall be and remain the sole property of the Employer and, other than in connection with the performance by Executive of Executive's duties hereunder, and shall be promptly returned to the Employer upon Executive's termination of employment for any reason, together with all copies (including copies or recordings in electronic form), abstracts, notes or reproductions of any kind made from or about the records, files, documents or other materials.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp;Executive acknowledges that Executive's access to and permission to use the Employer's and any Affiliate's computer systems, networks and equipment, and all Employer and Affiliate information contained therein, is restricted to legitimate business purposes on behalf of the Employer. Any other access to or use of such systems, network, equipment and information is without authorization and is prohibited except that Executive may use an Employer-provided computer for reasonable personal use in accordance with the Employer's technology use policy as in effect from time

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to time. The restrictions contained in this **Section [7(b)](#i8a992ac759434578a47621c4b51563fd_1)**extend to any personal computers or other electronic devices of Executive that are used for business purposes relating to the Employer or any Affiliate. Executive shall not transfer any Employer or Affiliate information to any personal computer or other electronic device that is not otherwise used for any business purpose relating to the Employer. Upon the termination of Executive's employment with the Employer for any reason, Executive's authorization to access and permission to use the Employer's and any Affiliate's computer systems, networks and equipment, and any Employer and Affiliate information contained therein, shall cease.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;**<u>Non-Solicitation</u>.** The Parties have agreed that the primary service area of the Employer's operations, including lending and deposit taking functions, in which Executive will actively participate extends to an area that encompasses a fifty (50)-mile radius from each Bank branch and the Company's headquarters (the "**Restrictive Area**"). Therefore, as an essential ingredient of and in consideration of this Agreement and Executive's employment with the Employer, Executive, during Executive's employment with the Employer and for a period of twelve (12) months immediately following the termination of Executive's employment for any reason (the "**Restrictive Period**"), whether such termination occurs during the Employment Period or thereafter, shall not directly or indirectly do any of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;Either for Executive or any Financial Institution or Fintech Organization: (A) induce or attempt to induce any employee of the Employer or any of its Affiliates with whom Executive had significant contact to leave the employ of the Employer or any of its Affiliates; (B) in any way interfere with the relationship between the Employer or any of its Affiliates and any employee of the Employer or any of its Affiliates with whom Executive had significant contact; or (C) induce or attempt to induce any customer, supplier, licensee or business relation of the Employer or any of its Affiliates with whom Executive had significant contact to cease doing business with the Employer or any of its Affiliates or in any way interfere with the relationship between the Employer or any of its Affiliates and their respective customers, suppliers, licensees or business relations with whom Executive had significant contact; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp;Either for Executive or any Financial Institution or any Fintech Organization, solicit the business of any person or entity known to Executive to be a customer of the Employer or any of its Affiliates, where Executive had significant contact with such person or entity, with respect to products, activities or services that compete in whole or in part with the products, activities or services of the Employer or any of its Affiliates.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;**<u>Remedies for Breach of Restrictive Covenant</u>.** Executive has reviewed the provisions of this Agreement with legal counsel or has been given adequate opportunity to seek such counsel, and Executive acknowledges that the covenants contained in this **Section 7** are reasonable with respect to their duration, geographical area and scope. Executive further acknowledges that the restrictions contained in this **Section 7** are reasonable and necessary for the protection of the legitimate business interests of the Employer, that they create no undue hardships, that any violation of these restrictions would cause substantial injury to the Employer and such interests, and that such restrictions were a material inducement to the Employer to enter into this Agreement. In the event of any violation or threatened violation of these restrictions, the Employer, in addition to and not in limitation of, any other rights, remedies or damages available to the Employer under this Agreement or

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otherwise at law or in equity, shall be entitled to preliminary and permanent injunctive relief to prevent or restrain any such violation by Executive and any and all persons directly or indirectly acting for or with Executive, as the case may be.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;**<u>Other Agreements</u>.** In the event of the existence of any other agreement between the Parties that (a) is in effect during the Restrictive Period, and (b) contains restrictive covenants that conflict with any of the provisions of this **Section 7**, then the more restrictive of such provisions from such agreements shall control for the period during which such agreements would otherwise be in effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8.&nbsp;&nbsp;&nbsp;&nbsp;<u>Regulatory Suspension and Termination</u>.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;If Executive is suspended from office and/or temporarily prohibited from participating in the conduct of the affairs of the Employer by a notice served under Section 8(e)(3) (12 U.S.C. § 1818(e)(3)) or 8(g) (12 U.S.C. § 1818(g)) of the Federal Deposit Insurance Act, as amended ("**FDIA**"), the Employer's obligations under this Agreement shall be suspended as of the date of service, unless stayed by appropriate proceedings. If the charges in the notice are dismissed, the Employer may in its discretion: (i) pay Executive all or part of the compensation withheld while the obligations herein were suspended; and (ii) reinstate (in whole or in part) any of the obligations which were suspended.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;If Executive is removed and/or permanently prohibited from participating in the conduct of the affairs of the Employer by an order issued under Section 8(e) (12 U.S.C. § 1818(e)) or 8(g) (12 U.S.C. § 1818(g)) of the FDIA, all obligations of the Employer under this Agreement shall terminate as of the effective date of the order, but vested rights of the Parties shall not be affected.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;If the Employer is in default as defined in Section 3(x) (12 U.S.C. § 1813(x)(1)) of the FDIA, all obligations of the Employer under this Agreement shall terminate as of the date of default, but this subsection shall not affect any vested rights of the Parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;All obligations of the Employer under this Agreement shall be terminated, except to the extent it is determined by the Federal Deposit Insurance Corporation (the "**FDIC**") that continuation of the Agreement is necessary for the continued operation of the institution, at the time the FDIC enters into an agreement to provide assistance to or on behalf of the Employer under the authority contained in Section 13(c) (12 U.S.C. § 1823(c)) of the FDIA, or when the Employer is determined by the FDIC to be in an unsafe or unsound condition. Any rights of the Parties that have already vested, however, shall not be affected by such action.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;Any payments made to Executive pursuant to this Agreement, or otherwise, are subject to and conditioned upon their compliance with Section 18(k) (12 U.S.C. § 1828(k)) of the FDIA.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9.&nbsp;&nbsp;&nbsp;&nbsp;<u>Notices</u>.** Notices and all other communications under this Agreement shall be in writing and shall be deemed given when mailed by United States registered or certified mail, return receipt requested, postage prepaid, addressed as follows:

If to the Employer:

Lincoln Bancorp

Attention: EVP, Chief People Officer

508 Main St.

Reinbeck, IA 50669

with a copy to the following counsel for Employer:

Andrew K. Strimaitis

Barack Ferrazzano Kirschbaum & Nagelberg LLP

200 West Madison Street, Suite 3900

Chicago, IL 60606

<u>andrew.strimaitis@bfkn.com</u>

If to Executive: Executive's last address on file with the Employer

or to such other address as either Party may furnish to the other in writing, except that notices of changes of address shall be effective only upon receipt.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**10.&nbsp;&nbsp;&nbsp;&nbsp;<u>Applicable Law; Arbitration; Attorneys' Fees</u>.** All questions concerning the construction, validity and interpretation of this Agreement and the performance of the obligations imposed by this Agreement shall be governed by the internal laws of the State of Iowa applicable to agreements made and wholly to be performed in such state without regard to conflicts of law provisions of any jurisdiction. The Parties agree that any and all disputes arising out of the terms of this Agreement, Executive's employment Employer, Executive's service as an officer or director of the Employer, or Executive's compensation and benefits, their interpretation, and any of the matters herein released, will be subject to binding arbitration in Des Moines, Iowa or other mutually convenient available location, before the Judicial Arbitration and Mediation Services, Inc., under the American Arbitration Association's National Rules for the Resolution of Employment Disputes, supplemented by the Iowa Rules of Civil Procedure. The Parties agree that the prevailing party in any arbitration will be entitled to injunctive relief in any court of competent jurisdiction to enforce the arbitration award. The Parties agree to waive their right to have any dispute between them resolved in a court of law by a judge or jury. This paragraph will not prevent either party from seeking injunctive relief (or any other provisional remedy) from any court having jurisdiction over the Parties and the subject matter of their dispute relating to Executive's obligations under this Agreement and any confidentiality agreement by and between Executive and the Company or Bank. Any such action or proceeding by either of the Parties for injunctive or provisional relief shall be brought only in the state courts in Polk County, Iowa or in the federal United States District Court for the Northern District of Iowa.

Should any Party institute any arbitration or seek injunctive or provisional relief from a court to enforce, interpret, or apply any provision of this Agreement, the Parties agree that each party will be responsible for their own costs and expenses. The arbitrator or judge shall base their determination of which party prevailed upon an assessment of which party's arguments or positions could fairly be said to have prevailed over the other party's arguments or positions on major disputed issues in the action, accounting for the possibility that in some circumstances it is appropriate to conclude that neither party

------

prevailed. Such assessment should include evaluation of the following: the amount of the net recovery and/or value of the object of the action to the prevailing party; whether the prevailing party could have secured complete relief without also pursuing claims for equitable or declaratory relief; the primary issues disputed by the parties and the relative value or importance of resolving such issues to either the prevailing party or the non-prevailing party; whether the amount of the award comprises a significant percentage of the amount sought by the prevailing party where relief is sought in the form of damages; and the most recent settlement positions of the parties. All questions concerning the construction, validity and interpretation of this Agreement and the performance of the obligations imposed by this Agreement shall be governed by the internal laws of the State of Iowa applicable to agreements made and wholly to be performed in such state without regard to conflicts of law provisions of any jurisdiction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**11.&nbsp;&nbsp;&nbsp;&nbsp;<u>Entire Agreement</u>.** This Agreement constitutes the entire agreement, along with the Restricted Stock Agreement, between the Parties concerning the subject matter hereof, and supersedes all prior negotiations, undertakings, agreements and arrangements with respect thereto, whether written or oral, except for any prior or concurrent confidentiality agreement by and between Executive and the Company or Bank. If a court of competent jurisdiction determines that any provision of this Agreement is invalid or unenforceable, then the invalidity or unenforceability of that provision shall not affect the validity or enforceability of any other provision of this Agreement and all other provisions shall remain in full force and effect. The various covenants and provisions of this Agreement are intended to be severable and to constitute independent and distinct binding obligations. Without limiting the generality of the foregoing, if the scope of any covenant contained in this Agreement is too broad to permit enforcement to its full extent, such covenant shall be enforced to the maximum extent permitted by law, and such scope may be judicially modified accordingly.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**12.&nbsp;&nbsp;&nbsp;&nbsp;<u>Withholding of Taxes</u>.** The Employer may withhold from any benefits payable under this Agreement all federal, state, city and other taxes as may be required pursuant to any law, governmental regulation or ruling.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**13.&nbsp;&nbsp;&nbsp;&nbsp;<u>No Assignment</u>.** Executive's rights to receive benefits under this Agreement shall not be assignable or transferable whether by pledge, creation of a security interest or otherwise, other than a transfer by will or by the laws of descent or distribution. In the event of any attempted assignment or transfer contrary to this **Section[13,](#i8a992ac759434578a47621c4b51563fd_1)** the Employer shall have no liability to pay any amount so attempted to be assigned or transferred. This Agreement shall inure to the benefit of and be enforceable by Executive's personal or legal representatives, executors, administrators, successors, heirs, distributees, devisees and legatees.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**14.&nbsp;&nbsp;&nbsp;&nbsp;<u>Successors</u>.** This Agreement shall be binding upon and inure to the benefit of the Employer, its successors and assigns.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**15.&nbsp;&nbsp;&nbsp;&nbsp;<u>Amendment</u>.** This Agreement may not be amended or modified except by written agreement signed by the Parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**16.&nbsp;&nbsp;&nbsp;&nbsp;<u>Code Section 409A</u>.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;This Agreement may be amended to the extent necessary (including retroactively) by the Employer to avoid the application of taxes or interest under Code Section 409A, while maintaining to the maximum extent practicable the original intent of this Agreement. If it is determined that any payments or benefits due hereunder upon Executive's termination of employment are subject to Code Section

------

409A, no such payments or benefits shall be payable unless such termination constitutes a "separation from service" within the meaning of Code Section 409A. To the extent any reimbursements or in-kind benefit payments under this Agreement are subject to Code Section 409A, such reimbursements and in-kind benefit payments shall be made in accordance with Treasury Regulation Section 1.409A-3(i)(1)(iv). This **Section[16](#i8a992ac759434578a47621c4b51563fd_1)**shall not be construed as a guarantee of any particular tax effect for Executive's benefits under this Agreement and the Employer does not guarantee that any such benefits will satisfy the provisions of Code Section 409A or any other provision of the Code.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;Notwithstanding any provision of this Agreement to the contrary, if Executive is determined to be a "specified employee" (as defined in Code Section 409A) as of the Termination Date, then the six (6)-month payment delay rule under Code Section 409A shall apply as set forth therein. All delayed payments shall be accumulated and paid in a lump-sum payment as of the first day of the seventh month following the Termination Date (or, if earlier, as of Executive's death). Any portion of the benefits hereunder that were not otherwise due to be paid during the six (6)-month period following the Termination Date shall be paid to Executive in accordance with the payment schedule established herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**17.&nbsp;&nbsp;&nbsp;&nbsp;<u>Definitions</u>.** As used in this Agreement, the terms defined in this **Section[17](#i8a992ac759434578a47621c4b51563fd_1)**have the meanings set forth below.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;"**Agency**" has the meaning set forth in **Section[7(a)(iii).](#i8a992ac759434578a47621c4b51563fd_1)**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;"**Agreement**" has the meaning set forth in the Preamble.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;"**Affiliate**" means each company, corporation, partnership, financial institution, or other entity that, directly or indirectly, is controlled by, controls, or is under common control with, the Employer, where "control" means (i) the ownership of fifty-one percent (51%) or more of the Voting Securities or other voting or equity interests of any corporation, partnership, joint venture or other business entity or (ii) the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of such corporation, partnership, joint venture or other business entity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;"**Annual Base Salary**" has the meaning set forth in **Section[3.](#i8a992ac759434578a47621c4b51563fd_1)**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;"**Average Incentive Bonus**" means the average of Incentive Bonuses determined for the immediately preceding three completed fiscal year performance periods of the Employer; *provided, however*, that if an Incentive Bonus has not yet been determined for a previously completed fiscal year performance period as of the Termination Date, then target Incentive Bonus shall be used with respect to such fiscal year for purposes of calculating the Average Incentive Bonus. For purposes of calculating the Average Incentive Bonus, fiscal years for which no bonus was determined to have been earned shall be included in the calculation of the three-year average; *provided, however*, if Executive is employed for fewer than three completed fiscal year performance periods, the Average Incentive Bonus will be based solely on performance for one or two such periods, as appropriate.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;&nbsp;&nbsp;"**Bank**" has the meaning set forth in the Preamble.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;&nbsp;&nbsp;&nbsp;"**Base Compensation**" means the amount equal to the sum of (i) the greater of Executive's then-current Annual Base Salary or Executive's Annual Base Salary and (ii) the Average Incentive Bonus.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)&nbsp;&nbsp;&nbsp;&nbsp;"**Board**" means the board of directors of the Bank.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;"**COBRA**" has the meaning set forth in **Section[4(d).](#i8a992ac759434578a47621c4b51563fd_1)**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j)&nbsp;&nbsp;&nbsp;&nbsp;"**Code**" means the Internal Revenue Code of 1986, as amended.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k)&nbsp;&nbsp;&nbsp;&nbsp;"**Company**" has the meaning set forth in the Preamble.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l)&nbsp;&nbsp;&nbsp;&nbsp;"**Company Board**" means the board of directors of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m)&nbsp;&nbsp;&nbsp;&nbsp;"**Confidential Information**" has the meaning set forth in **Section 7(a)(i)**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n)&nbsp;&nbsp;&nbsp;&nbsp;"**Disability**" means that (i) Executive is unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment that can be expected to result in death or can be expected to last for a continuous period of not less than twelve (12) months, or (ii) Executive is, by reason of any medically determinable physical or mental impairment that can be expected to result in death or can be expected to last for a continuous period of not less than twelve (12) months, receiving income replacement benefits for a period of not less than three (3) consecutive months under an accident or health plan covering employees of the Employer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o)&nbsp;&nbsp;&nbsp;&nbsp;"**Effective Date**" has the meaning set forth in the Preamble.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p)&nbsp;&nbsp;&nbsp;&nbsp;"**Employer**" has the meaning set forth in the Preamble.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q)&nbsp;&nbsp;&nbsp;&nbsp;"**Employment Period**" has the meaning set forth in **Section[1.](#i8a992ac759434578a47621c4b51563fd_1)**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r)&nbsp;&nbsp;&nbsp;&nbsp;"**Executive**" has the meaning set forth in the Preamble.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(s)&nbsp;&nbsp;&nbsp;&nbsp;"**FDIA**" has the meaning set forth in **Section[8(a).](#i8a992ac759434578a47621c4b51563fd_1)**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(t)&nbsp;&nbsp;&nbsp;&nbsp;"**FDIC**" has the meaning set forth in **Section[8(d).](#i8a992ac759434578a47621c4b51563fd_1)**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(u)&nbsp;&nbsp;&nbsp;&nbsp;"**Financial Institution**" means any person, firm, partnership, corporation or trust that owns, operates or is in the process of forming a bank, savings bank, savings and loan association, credit union or similar financial institution, or any unit, division or subsidiary of any of the foregoing, with an office located, or to be located at an address identified in a filing with any regulatory authority, within the Restrictive Area.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v)&nbsp;&nbsp;&nbsp;&nbsp;"**Fintech Organization**" means any person, firm, partnership, corporation or trust that is engaged in the business of, or is preparing to engage in, designing, implementing or delivering any technology that seeks to improve and automate the delivery and use of financial services, or any unit division or subsidiary of the foregoing, with an office located, or to be located at an address identified in any formation or organizing documentation, within the United States*.*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(w)&nbsp;&nbsp;&nbsp;&nbsp;"**Good Reason**" means the occurrence of one (1) of the following events, unless Executive agrees in writing that such event shall not constitute Good Reason:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;an adverse change in the nature, scope or status of Executive's position, authorities or duties from those in effect in accordance with **Section[1](#i8a992ac759434578a47621c4b51563fd_1)**immediately following the Effective Date; *provided, however*, that a diminution of Executive's duties and responsibilities (including a change of Executive's title) by virtue of the Employer becoming a subsidiary, affiliate, division or other similar operating entity of a larger financial institution shall not constitute Good Reason where Executive continues to have similar duties and responsibilities with respect to such subsidiary, affiliate, division or other similar operating entity, and such subsidiary, affiliate, division, or other similar operating entity is of similar size to the Employer;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp;an involuntary material reduction of Executive's compensation and benefits measured as of the Effective Date, or if applicable and greater, *provided* that such reduction is greater than ten percent (10%) of the value as of the Effective Date, as applicable, and is not part of an overall adjustment in benefits for all employees of the Employer;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;&nbsp;&nbsp;&nbsp;relocation of Executive's primary place of employment by more than fifty (50) miles from Executive's primary place of employment immediately following the Effective Date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv)&nbsp;&nbsp;&nbsp;&nbsp;a material breach by the Employer of this Agreement.

Notwithstanding any provision in this definition to the contrary, prior to Executive's Termination for Good Reason, Executive must give the Employer written notice of the existence of any condition set forth in clause (i) – (v) immediately above within ninety (90) days of its initial existence and the Employer shall have thirty (30) days from the date of such notice in which to cure the condition giving rise to Good Reason, if curable. If, during such thirty (30)-day period, the Employer cures the condition giving rise to Good Reason, the condition shall not constitute Good Reason. Further notwithstanding any provision in this definition to the contrary, in order to constitute a Termination for Good Reason, such Termination must occur within twelve (12) months of the initial existence of the applicable condition.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x)&nbsp;&nbsp;&nbsp;&nbsp;"**Incentive Bonus**" has the meaning set forth in **Section[3.](#i8a992ac759434578a47621c4b51563fd_1)**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(y)&nbsp;&nbsp;&nbsp;&nbsp;"**Incumbent Board**" means the members of the Company Board as of the Effective Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(z)&nbsp;&nbsp;&nbsp;&nbsp;"**Minimum Benefits**" means, as applicable, the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;Executive's unpaid Annual Base Salary for the period ending on the Employment Period of the year the termination occurs; and

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp;Executive's unpaid vacation time for the period ending on the Employment Period of the year the termination occurs; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;&nbsp;&nbsp;&nbsp;Executive's unpaid annual bonus for the period ending on the Employment Period of the year the termination occurs.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(aa)&nbsp;&nbsp;&nbsp;&nbsp;"**Parties**" has the meaning set forth in the Preamble.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(bb)&nbsp;&nbsp;&nbsp;&nbsp;"**Release**" means a general release and waiver as agreed upon by the Parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(cc)&nbsp;&nbsp;&nbsp;&nbsp;"**Restrictive Area**" has the meaning set forth in **Section 7(c)**; *provided*, *however*, that, upon the termination of Executive's employment for any reason other than for Executive's breach of the Restrictive Covenants, the Restrictive Area shall be redefined to only encompass a fifty (50)-mile radius from the location of each Bank branch and the Company's headquarters, in each case, as of the Termination Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(dd)&nbsp;&nbsp;&nbsp;&nbsp;"**Restrictive Covenants**" has the meaning set forth in **Section 7**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ee)&nbsp;&nbsp;&nbsp;&nbsp;"**Restrictive Period**" has the meaning set forth in **Section 7(c)**.

(ff)&nbsp;&nbsp;&nbsp;&nbsp;"**Severance Amount**" means:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;For any Termination that occurs during the Employment Period, an amount equal to one hundred percent (100%) of Executive's Annual Base Salary as of the respective Termination Date; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(gg)&nbsp;&nbsp;&nbsp;&nbsp;"**Termination**" means the termination of Executive's employment with the Employer following the Effective Date and prior to the end of the Employment period either:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp;by the Employer other than a Termination for Cause (but excluding, for the avoidance of doubt, a termination as a result of Executive's death or Disability); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;&nbsp;&nbsp;&nbsp;by Executive for Good Reason.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(hh)&nbsp;&nbsp;&nbsp;&nbsp;"**Termination Date**" means the date of termination of Executive's employment with the Employer for any reason.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp;"**Termination for Cause**" means only a termination of Executive's employment with the Employer as a result of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;Executive's willful and continuing failure, that is not remedied within twenty (20) days after receipt of written notice of such failure from the Employer, to perform Executive's obligations hereunder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp;Executive's conviction of, or the pleading of *nolo contendere* to, a crime of embezzlement or fraud or a felony under the laws of the United States or any state thereof;

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;&nbsp;&nbsp;&nbsp;Executive's breach of fiduciary responsibility;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv)&nbsp;&nbsp;&nbsp;&nbsp;an act of dishonesty by Executive that is materially injurious to the Employer;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v)&nbsp;&nbsp;&nbsp;&nbsp;Executive's material violation of any the Company's or the Bank's written policies or codes of conduct, including written policies related to discrimination, harassment, performance of illegal or unethical activities, and ethical misconduct; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi)&nbsp;&nbsp;&nbsp;&nbsp;Executive's willful unauthorized disclosure of Confidential Information.

Any determination of a Termination for Cause under this Agreement shall be made by resolution adopted by at least a two-thirds (2/3) vote of the Company Board at a meeting called and held for that purpose. Executive shall be provided with reasonable notice of such meeting and shall be given the opportunity to be heard, with the presence of counsel, prior to such vote being taken by the Company Board.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(jj)&nbsp;&nbsp;&nbsp;&nbsp;"**Voting Securities**" means any securities that ordinarily possess the power to vote in the election of directors without the happening of any precondition or contingency.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(kk)&nbsp;&nbsp;&nbsp;&nbsp;"**Whistleblower Program**" has the meaning set forth in **Section [7(a)(iii).](#i8a992ac759434578a47621c4b51563fd_1)**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**18.&nbsp;&nbsp;&nbsp;&nbsp;<u>Survival</u>.** The provisions of **Sections 5** through**[18](#i8a992ac759434578a47621c4b51563fd_1)**shall survive the termination of this Agreement.

**\*&nbsp;&nbsp;&nbsp;&nbsp;\*&nbsp;&nbsp;&nbsp;&nbsp;\*&nbsp;&nbsp;&nbsp;&nbsp;\***

**IN WITNESS WHEREOF**, the Parties have executed this Agreement as of the Effective Date.

---

| | | | |
|:---|:---|:---|:---|
| **LINCOLN BANCORP** | **LINCOLN BANCORP** | **LINCOLN BANCORP** | **Executive** |
| **By:** | /s/ Sean Willet | /s/ Sean Willet | /s/ Karen Barnes |
|  |  |  | (Signature) |
| **Name:** | **Name:** | Sean Willet | Karen Barnes |
|  |  |  | (Print) |
| **Its:** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;President/CEO | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;President/CEO |  |

---

------

---

| | | |
|:---|:---|:---|
| **LINCOLN SAVINGS BANK** | **LINCOLN SAVINGS BANK** | **LINCOLN SAVINGS BANK** |
| **By:** | /s/ Jim Denholm | /s/ Jim Denholm |
| **Name:** | **Name:** | Jim Denholm |
| **Its:** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Chief People Officer | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Chief People Officer |

---

## Exhibit 10.9

**Exhibit 10.9**

EMPLOYMENT AGREEMENT

This Employment Agreement is made and entered into this 12th day of December, 2025, by and between Lincoln Savings Bank and Rebecca Bell.

**RECITALS**:

Employer wishes to employ Employee under the terms and conditions contained in this Agreement and Employee agrees to accept such employment. This Agreement shall become effective on your first day of employment.

**NOW, THEREFORE,** in consideration of the premises and the promises and covenants set forth in this Agreement, the parties agree as follows:

1.&nbsp;&nbsp;&nbsp;&nbsp;**Employment.** Employer agrees to employ Employee as an at-will employee under the

terms of this Agreement and Employee agrees to be employed under said terms. Employee agrees to devote his/her entire working time and attention to activities necessary for the solicitation, sale and servicing potential new and existing customers of Employer, related duties assigned by Employer relating to its conduct of a banking and financial services business and any other activities relating to public relations and civic affairs as the Employer may reasonably request. Employer may modify, delete, or add to the job duties assigned to Employee at any time during his employment under this Agreement. Employee will not, during the term of his employment under this Agreement, be self-employed, be employed or contracted by another person or entity, employ others work, or in any way own or be a representative of or agent for any other agency, broker, or company, unless Employee has made full disclosure and obtained written authorization from the President of Employer or his designee to engage in such activities.

Employee further agrees to perform his/her job duties in accordance with then existing local, state, or federal law or regulation and the policies and procedures of Employer. Employee will be subject to the terms and provisions of the LSB Employee Handbook, as it may be amended from time to time, and other policies and procedures of Employer, except to the extent that those terms and provisions are inconsistent with the terms of this Agreement and then the provisions of the Agreement shall prevail.

Employee agrees that his employment relationship is at-will and can be terminated by Employee or Employer with or without cause and with or without notice at any time. Nothing in this Agreement is intended or should be construed as altering that at-will relationship in any way.

2.&nbsp;&nbsp;&nbsp;&nbsp;**Termination of Employment.** Employee's employment under this Agreement shall terminate upon the happening of any of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A)&nbsp;&nbsp;&nbsp;&nbsp;Death of Employee.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B)&nbsp;&nbsp;&nbsp;&nbsp;Permanent disability (as defined by long-term disability benefit provided by Employer's insurance carrier) of Employee such that Employee is unable to perform the essential functions of his job as determined by the President of Employer and/or the Board of Directors of Employer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C)&nbsp;&nbsp;&nbsp;&nbsp;Termination of Employee by Employer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D)&nbsp;&nbsp;&nbsp;&nbsp;Resignation or retirement by Employee.

3.&nbsp;&nbsp;&nbsp;&nbsp;**Confidential Information.** Employee agrees to treat as confidential all records of Employer whether in original, duplicated, copied, recorded, computerized or other form, that contain or refer to trade secrets or other confidential or proprietary information of Employer or its customers (collectively "Confidential Information"), including without limitation the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A)&nbsp;&nbsp;&nbsp;&nbsp;the names, addresses, and telephone numbers of its customers and prospective customers (collectively "customers"), the investment/insurance portfolios of its customers and any information concerning customers' past, present, or future insurance or investment activities, any documents or records reflecting work in process, and any information relating to Employer's customers' financial relationships, customers' income, net worth or other business or personal financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B)&nbsp;&nbsp;&nbsp;&nbsp;any information concerning Employer's methods, operations, financing, services, pricing information, compensation data, pending projects and proposals, research and development strategies, production reports, financial and marketing information, technological developments, software, computer systems, techniques, processes, as well as policy or procedure manuals or training materials; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C)&nbsp;&nbsp;&nbsp;&nbsp;any other secret or confidential information relating to the products, services, customers, sales, technology, and business affairs of Employer.

Employee acknowledges that such Confidential Information constitutes a unique and valuable asset of Employer acquired at great expense by Employer, which is vital to the success of Employer. Employee further acknowledges that any disclosure or other use of such information other than for the sole benefit of Employer would be wrongful and would cause irreparable harm to Employer. Employee also acknowledges that Employer has taken and is taking all reasonable measures to protect its legitimate interests in its Confidential Information, its customers, and employees. Employee further acknowledges that the restrictions, geographic scope, and time-period set forth in this Agreement are reasonably necessary in order to protect Employer's legitimate interests.

Employee agrees that he/she will not at any time either during or subsequent to his/her employment with Employer use, disclose or transmit, either directly or indirectly, any Confidential Information to any person, firm, corporation, association, or other entity,

------

and will not remove this information, whether in original, duplicated or other form, from the premises of Employer, except as required in the ordinary course of Employer's business. Employee agrees to keep Confidential Information secret and in strict confidence during the term of this Agreement and at all times thereafter and will not disclose any of such information except to the extent such disclosure is necessary for the performance of his/her duties or required by applicable law.

In the event of Employee's voluntary or involuntary termination from Employer, for any reason, or at any time at the request of the President of Employer, Employee will immediately return all property or materials, which contain Confidential Information, **including** any original, computerized, or duplicated records or portions of such materials.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.&nbsp;&nbsp;&nbsp;&nbsp;**Non-solicitation Agreement.** During the term of Employee's employment and for two years thereafter, Employee will not, directly, or indirectly, on behalf of himself or on behalf of any other individual, association or entity, as an agent or otherwise:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A)&nbsp;&nbsp;&nbsp;&nbsp;seek financial service business from or service, solicit, induce, canvass, or contact any of the customers of Employer, who was a customer of Employer for the purpose of soliciting business, inducing such customer to acquire any product or service that currently is provided or under development by Employer from any entity other than Employer, or requesting, suggesting, recommending or otherwise advising any such customer or prospective customer to curtail, refuse , decline or withdraw his business from Employer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B)&nbsp;&nbsp;&nbsp;&nbsp;utilize Employer's Confidential Information to solicit, influence, induce, or encourage any customers or prospective customers of Employer to divert or direct their business to Employee or any other person, association, or entity by or with whom Employee is employed, associated, engaged as agent, or otherwise affiliated.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C)&nbsp;&nbsp;&nbsp;&nbsp;hire, solicit, encourage, induce, or entice any person who is then an employee of Employer to leave Employer's employment.

Employee represents that he/she is not subject to any other non-competition, non-solicitation, confidentiality, or similar restriction with a former employer that would prevent Employee from performing the duties of the position that Employee will hold with Employer. Employee also represents that he/she has no confidential information of a former employer in his/her possession, nor has Employee been asked to or did disclose any such information to Employer.

5.&nbsp;&nbsp;&nbsp;&nbsp;**Injunctive Relief.** Employee consents and agrees to the issuance of a temporary restraining order or a preliminary injunction by a court to prohibit and enjoin the breach of any provision of this Agreement. Employee understands and agrees that nothing herein shall prohibit Employer from pursuing any remedies, in law or equity, available to Employer for a breach or threatened breach of this Agreement, including a claim for money damages or injunctive relief.

------

6.&nbsp;&nbsp;&nbsp;&nbsp;**Miscellaneous Provisions.** This Agreement shall be governed by and in accordance with the laws of the State of Iowa. The provisions of this Agreement are severable. In the event any provision of this Agreement is found to be unenforceable, in whole or in part, the remainder of this Agreement will nevertheless be binding and enforceable. It is the intention of the parties that, if any court construes any provision or clause of this Agreement to be illegal, void, or unenforceable because of the duration, geographic scope or matter covered thereby, such court shall reduce the duration, area, or matter of such provision or clause and, in its reduced form, such provision or clause shall then be enforced. Employee understands that nothing in this Agreement requires him/her to continue employment with Employer for any particular length of time or requires that Employer continue to employ Employee for any particular length of time. All obligations under paragraphs 3, 4, 5 and 6 of this Agreement shall survive the termination, whether voluntary or involuntary, of Employee's employment with Employer.

The rights and obligations of Employer under this Agreement shall inure to the benefit of and shall be binding upon the successors and assigns of Employer. Employee may assign his right of payment under this Agreement, but not his obligations under this Agreement. This Agreement contains the entire agreement of the parties with respect to the issues described herein.

**<u>Employee understands that it is an express condition of his/her employment with Employer that he/she adhere to and fulfill any and all obligations of confidentiality which he/she may have to any third party as a result of any prior or current employment, consulting or other relationship.</u>**

EMPLOYEE ACKNOWLEDGES THAT HE/SHE HAS CAREFULLY REVIEWED THIS AGREEMENT PRIOR TO SIGNING IT, UNDERSTANDS ITS TERMS, AND HAS VOLUNTARILY ENTERED INTO THIS AGREEMENT.

---

| | | |
|:---|:---|:---|
| | Lincoln Savings Bank | Lincoln Savings Bank |
| Employee: | Employee: | /s/ Becky Bell |
| LSB Representative: | LSB Representative: | Callie Youngblut |
| Date: | Date: | 12/12/2025 \| 8:18 AM PST |

---

## Exhibit 10.10

**Exhibit 10.10**

EMPLOYMENT AGREEMENT

This Employment Agreement (the "Agreement") is made and entered into this <u>3</u><sup>rd</sup> day of <u>April</u> 2015, by and between Lincoln Savings Bank ("Employer") and Dan Downs ("Employee").

**RECITALS:**

Employer wishes to employ Employee under the terms and conditions contained in this Agreement and Employee agrees to accept such employment. This Agreement shall become effective on ___________, 2015.

**NOW, THEREFORE,** in consideration of the premises and the promises and covenants set forth in this Agreement, the parties agree as follows:

1.**Employment.** Employer agrees to employ Employee as an at-will employee under the terms of this Agreement and Employee agrees to be employed under said terms. Employee agrees to devote his/her entire working time and attention to activities necessary for the solicitation, sale and servicing potential new and existing customers of Employer, related duties assigned by Employer relating to its conduct of a banking and financial services business and any other activities relating to public relations and civic affairs as the Employer may reasonably request. Employer may modify, delete, or add to the job duties assigned to Employee at any time during his employment under this Agreement. Employee will not, during the term of his employment under this Agreement, be self-employed, be employed or contracted by another person or entity, employ others work, or in any way own or be a representative of or agent for any other agency, broker, or company, unless Employee has made full disclosure and obtained written authorization from the President of Employer or his designee to engage in such activities.

Employee further agrees to perform his/her job duties in accordance with then existing local, state, or federal law or regulation and the policies and procedures of Employer. Employee will be subject to the terms and provisions of the LSB Employee Handbook, as it may be amended from time to time, and other policies and procedures of Employer, except to the extent that those terms and provisions are inconsistent with the terms of this Agreement and then the provisions of the Agreement shall prevail.

Employee agrees that his employment relationship is at-will and can be terminated by Employee or Employer with or without cause and with or without notice at any time. Nothing in this Agreement is intended or should be construed as altering that at-will relationship in any way.

2.**Termination of Employment.** Employee's employment under this Agreement shall terminate upon the happening of any of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A)Death of Employee.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B)Permanent disability (as defined by long-term disability benefit provided by Employer's insurance carrier) of Employee such that Employee is unable to perform the essential functions of his job as determined by the President of Employer and/or the Board of Directors of Employer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C)Termination of Employee by Employer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D)Resignation or retirement by Employee.

3.**Confidential Information.** Employee agrees to treat as confidential all records of Employer whether in original, duplicated, copied, recorded, computerized or other form, that contain or refer to trade secrets or other confidential or proprietary information of Employer or its customers (collectively "Confidential Information"), including without limitation the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A)the names, addresses, and telephone numbers of its customers and prospective customers (collectively "customers"), the investment/insurance portfolios of its customers and any information concerning customers' past, present, or future insurance or investment activities, any documents or records reflecting work in process, and any information relating to Employer's customers' financial relationships, customers' income, net worth or other business or personal financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B)any information concerning Employer's methods, operations, financing, services, pricing information, compensation data, pending projects and proposals, research and development strategies, production reports, financial and marketing information, technological developments, software, computer systems, techniques, processes, as well as policy or procedure manuals or training materials; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C)any other secret or confidential information relating to the products, services, customers, sales, technology and business affairs of Employer.

Employee acknowledges that such Confidential Information constitutes a unique and valuable asset of Employer acquired at great expense by Employer, which is vital to the success of Employer. Employee further acknowledges that any disclosure or other use of such information other than for the sole benefit of Employer would be wrongful and would cause irreparable harm to Employer. Employee also acknowledges that Employer has taken and is taking all reasonable measures to protect its legitimate interests in its Confidential Information, its customers and employees. Employee further acknowledges that the restrictions, geographic scope, and time-period set forth in this Agreement are reasonably necessary in order to protect Employer's legitimate interests.

Employee agrees that he/she will not at any time either during or subsequent to his/her employment with Employer use, disclose or transmit, either directly or indirectly, any

------

Confidential Information to any person, firm, corporation, association or other entity, and will not remove this information, whether in original, duplicated or other form, from the premises of Employer, except as required in the ordinary course of Employer's business. Employee agrees to keep Confidential Information secret and in strict confidence during the term of this Agreement and at all times thereafter and will not disclose any of such information except to the extent such disclosure is necessary for the performance of his/her duties, or required by applicable law.

In the event of Employee's voluntary or involuntary termination from Employer, for any reason, or at any time at the request of the President of Employer, Employee will immediately return all property or materials, which contain Confidential Information, **including** any original, computerized, or duplicated records or portions of such materials.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.Non-solicitation Agreement.** During the term of Employee's employment and for two years thereafter, Employee will not, directly or indirectly, on behalf of himself or on behalf of any other individual, association or entity, as an agent or otherwise:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A)seek financial service business from or service, solicit, induce, canvass, or contact any of the customers of Employer, who was a customer of Employer for the purpose of soliciting business, inducing such customer to acquire any product or service that currently is provided or under development by Employer from any entity other than Employer, or requesting, suggesting, recommending or otherwise advising any such customer or prospective customer to curtail, refuse , decline or withdraw his business from Employer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B)utilize Employer's Confidential Information to solicit, influence, induce, or encourage any customers or prospective customers of Employer to divert or direct their business to Employee or any other person, association or entity by or with whom Employee is employed, associated, engaged as agent, or otherwise affiliated.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C)hire, solicit, encourage, induce, or entice any person who is then an employee of Employer to leave Employer's employment.

Employee represents that he/she is not subject to any other non-competition, non-solicitation, confidentiality or similar restriction with a former employer that would prevent Employee from performing the duties of the position that Employee will hold with Employer. Employee also represents that he/she has no confidential information of a former employer in his/her possession, nor has Employee been asked to or did disclose any such information to Employer.

5.**Injunctive Relief.** Employee consents and agrees to the issuance of a temporary restraining order or a preliminary injunction by a court to prohibit and enjoin the breach of any provision of this Agreement. Employee understands and agrees that nothing herein shall prohibit Employer from pursuing any remedies, in law or equity, available to

------

Employer for a breach or threatened breach of this Agreement, including a claim for money damages or injunctive relief.

6.**Miscellaneous Provisions.** This Agreement shall be governed by and in accordance with the laws of the State of Iowa. The provisions of this Agreement are severable. In the event any provision of this Agreement is found to be unenforceable, in whole or in part, the remainder of this Agreement will nevertheless be binding and enforceable. It is the intention of the parties that, if any court construes any provision or clause of this Agreement to be illegal, void or unenforceable because of the duration, geographic scope or matter covered thereby, such court shall reduce the duration, area, or matter of such provision or clause and, in its reduced form, such provision or clause shall then be enforced. Employee understands that nothing in this Agreement requires him/her to continue employment with Employer for any particular length of time or requires that Employer continue to employ Employee for any particular length of time. All obligations under paragraphs 5, 6 and 7 of this Agreement shall survive the termination, whether voluntary or involuntary, of Employee's employment with Employer.

The rights and obligations of Employer under this Agreement shall inure to the benefit of and shall be binding upon the successors and assigns of Employer. Employee may assign his right of payment under this Agreement, but not his obligations under this Agreement. This Agreement contains the entire agreement of the parties with respect to the issues described herein.

EMPLOYEE ACKNOWLEDGES THAT HE/SHE HAS CAREFULLY REVIEWED THIS AGREEMENT PRIOR TO SIGNING IT, UNDERSTANDS ITS TERMS, AND HAS VOLUNTARILY ENTERED INTO THIS AGREEMENT.

---

| | |
|:---|:---|
| | Lincoln Savings Bank |
| Employee: | /s/ Dan Downs |
| LSB Representative: | LSB Representative: |
| Date: | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4/3/2015 |

---

## Exhibit 10.11

**Exhibit 10.11**

**LINCOLN BANCORP**

**2019 EQUITY INCENTIVE PLAN**

**Article 1**

**<u>INTRODUCTION</u>**

**Section 1.1&nbsp;&nbsp;&nbsp;&nbsp;<u>Purpose, Effective Date and Term</u>.** The purpose of this **Lincoln Bancorp 2019 Equity Incentive Plan** is to promote the long-term financial success of Lincoln Bancorp and its Subsidiaries by providing a means to attract, retain and reward individuals who can and do contribute to such success, and to further align their interests with those of the Shareholders. The "**Effective Date**" of the Plan is April 5, 2019, the date of the approval of the Plan by the Shareholders. The Plan shall remain in effect as long as any Awards are outstanding; *provided, however,* that no Awards may be granted after the 10-year anniversary of the Effective Date.

**Section 1.2&nbsp;&nbsp;&nbsp;&nbsp;<u>Participation</u>.** Each employee and director of, and service provider (with respect to which issuances of securities may be registered under Form S-8) to, the Company and each Subsidiary who is granted, and currently holds, an Award in accordance with the provisions of the Plan shall be a "**Participant**" in the Plan. Award recipients shall be limited to employees and directors of, and service providers (with respect to which issuances of securities may be registered under Form S-8) to, the Company and its Subsidiaries; *provided, however,* that an Award (other than an ISO) may be granted to an individual prior to the date on which he or she first performs services as an employee, director or service provider, *provided* that such Award does not become vested prior to the date such individual commences such services.

**Section 1.3&nbsp;&nbsp;&nbsp;&nbsp;<u>Definitions</u>.** Capitalized terms in the Plan shall be defined as set forth in the Plan (including the definition provisions of **Article 9**).

**Article 2**

**<u>AWARDS</u>**

**Section 2.1&nbsp;&nbsp;&nbsp;&nbsp;<u>General</u>.** Any Award may be granted singularly or in combination with another Award (or Awards). Each Award shall be subject to the provisions of the Plan and such additional provisions as the Committee may provide in a particular Award Agreement or other documentation. Subject to the provisions of **Section 3.4(b)**, an Award may be granted as an alternative to or replacement of an existing award under the Plan, any other plan of the Company or a Subsidiary, or as the form of payment for grants or rights earned or due under any other compensation plan or arrangement of the Company or a Subsidiary, including the plan of any entity acquired by the Company or a Subsidiary. The types of Awards that may be granted include the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(a)&nbsp;&nbsp;&nbsp;&nbsp;***Stock Options*. A stock option represents the right to purchase Shares at an exercise price established by the Committee. Any stock option may be either an ISO or a nonqualified stock option that is not intended to be an ISO. No ISOs may be (i) granted after the 10-year anniversary of the Effective Date or (ii) granted to a non-employee. To the extent the aggregate Fair Market Value (determined at the time of grant) of Shares with respect to which ISOs are exercisable for the first time by any Participant during any calendar year under all plans of the Company and its Subsidiaries exceeds $100,000, the stock options or portions thereof that exceed such limit shall be treated as nonqualified stock options. Unless otherwise specifically provided by the Award Agreement, any stock option granted under the Plan shall be a nonqualified stock option. All or a portion of any ISO granted under the Plan that does not qualify as an ISO for any reason shall be deemed to be a nonqualified stock option. In

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addition, any ISO granted under the Plan may be unilaterally modified by the Committee to disqualify such stock option from ISO treatment such that it shall become a nonqualified stock option.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(b)&nbsp;&nbsp;&nbsp;&nbsp;***Stock Appreciation Rights.* A stock appreciation right (a "**SAR**") is a right to receive, in cash, Shares or a combination of both (as shall be reflected in the respective Award Agreement), an amount equal to or based upon the excess of (i) the Fair Market Value at the time of exercise of the SAR over (ii) an exercise price established by the Committee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(c)&nbsp;&nbsp;&nbsp;&nbsp;***Stock Awards.* A stock award is a grant of Shares or a right to receive Shares (or their cash equivalent or a combination of both, as shall be reflected in the respective Award Agreement) in the future, excluding Awards designated as stock options, SARs or cash incentive awards by the Committee. Such Awards may include bonus shares, stock units, performance shares, performance units, restricted stock, restricted stock units or any other equity-based Award as determined by the Committee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(d)&nbsp;&nbsp;&nbsp;&nbsp;***Cash Incentive Awards*. A cash incentive award is the grant of a right to receive a payment of cash (or Shares having a value equivalent to the cash otherwise payable, excluding Awards designated as stock options, SARs or stock awards by the Committee, all as shall be reflected in the respective Award Agreement) determined on an individual basis or as an allocation of an incentive pool that is contingent on the achievement of performance objectives established by the Committee.

**Section 2.2&nbsp;&nbsp;&nbsp;&nbsp;<u>Exercise of Stock Options and SARs</u>.** A stock option or SAR shall be exercisable in accordance with such provisions as may be established by the Committee; *provided*, *however*, that a stock option or SAR shall expire no later than 10 years after its grant date (five years in the case of an ISO granted to a 10% Shareholder). The exercise price of each stock option and SAR shall be not less than 100% of the Fair Market Value on the grant date (or, if greater, the par value of a Share); *provided, however,* that the exercise price of an ISO shall not be less than 110% of Fair Market Value on the grant date in the case of a 10% Shareholder; and *provided, further*, that, to the extent permitted under Code Section 409A, and subject to **Section 3.4(b)**, the exercise price may be higher or lower in the case of stock options and SARs granted in replacement of existing awards held by an employee, director or service provider granted by an acquired entity. The payment of the exercise price of a stock option shall be by cash or, subject to limitations imposed by applicable law, by any of the following means unless otherwise determined by the Committee from time to time: (a) by tendering, either actually or by attestation, Shares acceptable to the Committee and valued at Fair Market Value as of the day of exercise; (b) by irrevocably authorizing a third party, acceptable to the Committee, to sell Shares acquired upon exercise of the stock option and to remit to the Company no later than the third business day following exercise of a sufficient portion of the sale proceeds to pay the entire exercise price and any tax withholding resulting from such exercise; (c) by payment through a net exercise such that, without the payment of any funds, the Participant may exercise the option and receive the net number of Shares equal in value to (i) the number of Shares as to which the option is being exercised, multiplied by (ii) a fraction, the numerator of which is the Fair Market Value (on the date of exercise) less the exercise price, and the denominator of which is such Fair Market Value (the number of net Shares to be received shall be rounded down to the nearest whole number of Shares); (d) by personal, certified or cashier's check; (e) by other property deemed acceptable by the Committee or (f) by any combination thereof.

**Section 2.3&nbsp;&nbsp;&nbsp;&nbsp;<u>Minimum Vesting Period</u>.** If the right to become vested in an Award granted to an employee Participant is conditioned on the completion of a specified period of service with the Company or its Subsidiaries, without achievement of performance measures or other performance objectives (whether or not related to the performance measures) being required as a condition of vesting, and without it being granted in lieu of, or in exchange for, other compensation, or other Awards, then the

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required period of service for full vesting shall not be less than one year (subject to acceleration of vesting, to the extent permitted by the Committee, as provided herein); *provided, however,* that the required period of service for full vesting shall not apply to Awards granted to Director Participants provided that the aggregate of such director grants do not exceed 5% of the total Share reserve set forth in **Section 3.2(a)**.

**Section 2.4&nbsp;&nbsp;&nbsp;&nbsp;<u>Dividends and Dividend Equivalents</u>.** Any Award may provide the Participant with the right to receive dividend payments or dividend equivalent payments with respect to Shares subject to the Award; *provided, however,* any dividend payments or dividend equivalent payments with respect to the Award shall be withheld by the Company for the Participant's account, and interest may be credited on the amount of the dividend payments or dividend equivalent payments withheld at a rate and subject to such terms as determined by the Committee. The dividend payments or dividend equivalent payments so withheld by the Committee and attributable to any particular Award (and earnings thereon, if applicable) shall be distributed to the Participant in cash or, at the discretion of the Committee, in Shares having a Fair Market Value equal to the amount of such dividends, if applicable, upon the release of restrictions on such Award and, if such Award is forfeited, the Participant shall have no right to such dividend payments or dividend equivalent payments.

**Section 2.5&nbsp;&nbsp;&nbsp;&nbsp;<u>Forfeiture of Awards</u>.** Unless specifically provided to the contrary in an Award Agreement, upon notification of Termination of Service for Cause, any outstanding Award, whether vested or unvested, held by a Participant shall terminate immediately, such Award shall be forfeited and the Participant shall have no further rights thereunder.

**Section 2.6&nbsp;&nbsp;&nbsp;&nbsp;<u>Deferred Compensation</u>.** The Plan is, and all Awards are, intended to be exempt from (or, in the alternative, to comply with) Code Section 409A, and each shall be construed, interpreted and administered accordingly. The Company does not guarantee that any benefits that may be provided under the Plan will satisfy all applicable provisions of Code Section 409A. If any Award would be considered "deferred compensation" under Code Section 409A ("**Deferred Compensation**"), the Committee reserves the absolute right (including the right to delegate such right) to unilaterally amend the Plan or the applicable Award Agreement, without the consent of the Participant, to avoid the application of, or to maintain compliance with, Code Section 409A.

**Article 3**

**<u>SHARES SUBJECT TO PLAN</u>**

**Section 3.1&nbsp;&nbsp;&nbsp;&nbsp;<u>Available Shares</u>.** The Shares with respect to which Awards may be granted shall be Shares currently authorized but unissued, currently held or, to the extent permitted by applicable law, subsequently acquired by the Company, including Shares purchased in the open market or in private transactions.

**Section 3.2&nbsp;&nbsp;&nbsp;&nbsp;<u>Share Limitations</u>.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(a)&nbsp;&nbsp;&nbsp;&nbsp;***Share Reserve*. Subject to the following provisions of this **Section 3.2**, the maximum number of Shares that may be delivered under the Plan shall be **400,000** Shares (all of which may be granted as ISOs). The maximum number of Shares available for delivery under the Plan and the number of Shares subject to outstanding Awards shall be subject to adjustment as provided in **Section 3.4**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(b)&nbsp;&nbsp;&nbsp;&nbsp;***Reuse of Shares.* Any Shares subject to an Award that is canceled, forfeited or expires prior to exercise or realization, either in full or in part, shall again become available for issuance under the Plan. Notwithstanding anything to the contrary contained herein: shares subject to an Award

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under the Plan shall not again be made available for issuance or delivery under the Plan if such shares are (a) shares tendered in payment of a stock option, (b) shares delivered or withheld by the Company to satisfy any tax withholding obligation, or (c) shares covered by a stock-settled SAR or other Awards that were not issued upon the settlement of the Award.

**Section 3.3&nbsp;&nbsp;&nbsp;&nbsp;<u>Limitations on Grants to Individuals</u>.** The following limitations shall apply with respect to Awards:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(a)&nbsp;&nbsp;&nbsp;&nbsp;***Awards to Non-Director Participants.* With respect to any Award other than an Award to a Director Participant:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;*Share-Based Awards.* The maximum number of Shares that may be subject to Share-based Awards, including but not limited to ISOs, granted to any one Participant during any calendar year shall be **26,000**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp;*Cash Incentive Awards and Share-Based Awards Settled in Cash.* The maximum dollar amount that may be payable to any one Participant pursuant to cash incentive awards and cash-settled Share-based Awards that are granted to any one Participant during any calendar year shall be $500,000.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(b)&nbsp;&nbsp;&nbsp;&nbsp;***Awards to Director Participants*. With respect to any Award to a Director Participant:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;*Stock Options and SARs.* The maximum number of Shares that may be subject to Share-based Awards granted to any one Director Participant during any calendar year shall be 4,000.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp;*Cash Incentive Awards and Share-Based Awards Settled in Cash.* The maximum dollar amount that may be payable to any one Director Participant pursuant to cash incentive awards and cash-settled Share-based Awards that are granted to any one Director Participant during any calendar year shall be $75,000**.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;&nbsp;&nbsp;&nbsp;*Director Election.* The foregoing limitations shall not apply to cash-based Director fees that the Director elects to receive in the form of Shares or Share-based units equal in value to the cash-based Director fees.

**Section 3.4&nbsp;&nbsp;&nbsp;&nbsp;<u>Corporate Transactions; No Repricing</u>.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(a)&nbsp;&nbsp;&nbsp;&nbsp;***Adjustments*. To the extent permitted under Code Section 409A, to the extent applicable, in the event of a corporate transaction involving the Company or the Shares (including any stock dividend, stock split, extraordinary cash dividend, recapitalization, reorganization, merger, consolidation, split-up, spin-off, combination or exchange of shares), all outstanding Awards, the number of Shares available for delivery under the Plan under **Section 3.2** and each of the specified limitations set forth in **Section 3.3** shall be adjusted automatically to proportionately and uniformly reflect such transaction; *provided, however,* that, subject to **Section 3.4(b)**, the Committee may otherwise adjust Awards (or prevent such automatic adjustment) as it deems necessary, in its sole discretion, to preserve the benefits or potential benefits of the Awards and the Plan. Action by the Committee under this **Section 3.4(a)** may include: (i) adjustment of the number and kind of shares that may be delivered under the Plan; (ii) adjustment of the number and kind of shares subject to outstanding Awards; (iii) adjustment of the exercise price of outstanding stock options and SARs; and (iv) any other adjustments that the Committee

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determines to be equitable (which may include (A) replacement of an Award with another award that the Committee determines has comparable value and that is based on stock of a company resulting from a corporate transaction, and (B) cancellation of an Award in return for cash payment of the current value of the Award, determined as though the Award were fully vested at the time of payment, *provided* that in the case of a stock option or SAR, the amount of such payment shall be the excess of the value of the stock subject to the option or SAR at the time of the transaction over the exercise price, and *provided*, *further*, that no such payment shall be required in consideration for the cancellation of the Award if the exercise price is greater than the value of the stock at the time of such corporate transaction).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(b)&nbsp;&nbsp;&nbsp;&nbsp;***No Repricing*. Notwithstanding any provision of the Plan to the contrary, no adjustment or reduction of the exercise price of any outstanding stock option or SAR in the event of a decline in Share price shall be permitted without approval by the Shareholders or as otherwise expressly provided under **Section 3.4(a)**. The foregoing prohibition includes (i) reducing the exercise price of outstanding stock options or SARs, (ii) cancelling outstanding stock options or SARs in connection with the granting of stock options or SARs with a lower exercise price to the same individual, (iii) cancelling stock options or SARs with an exercise price in excess of the current Fair Market Value in exchange for a cash or other payment, and (iv) taking any other action that would be treated as a repricing of a stock option or SAR under the rules of the primary securities exchange or similar entity on which the Shares are listed.

**Section 3.5&nbsp;&nbsp;&nbsp;&nbsp;<u>Delivery of Shares</u>.** Delivery of Shares or other amounts under the Plan shall be subject to the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(a)&nbsp;&nbsp;&nbsp;&nbsp;***Compliance with Applicable Laws.* Notwithstanding any provision of the Plan to the contrary, the Company shall have no obligation to deliver any Shares or make any other distribution of benefits under the Plan unless such delivery or distribution complies with all applicable laws and the applicable requirements of any securities exchange or similar entity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(b)&nbsp;&nbsp;&nbsp;&nbsp;***No Certificates Required.* To the extent that the Plan provides for the delivery of Shares, the delivery may be effected on a non-certificated basis, to the extent not prohibited by applicable law or the applicable rules of any securities exchange or similar entity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(c)&nbsp;&nbsp;&nbsp;&nbsp;***Share Certificate Legend*. The Company reserves the right to place on shares acquired under the Plan a legend stating any applicable restrictions contained hereunder, pursuant to applicable securities rules, and pursuant to any Company shareholders agreement as maybe in effect from time to time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(d)&nbsp;&nbsp;&nbsp;&nbsp;***Participant's Representations and Shareholders Agreement*. The Company may require the Participant to execute an investment representation statement, in a form provided by the Company, or to execute and become a party to a Company shareholder agreement, as may be in effect on such date.

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**Article 4**

**<u>CHANGE IN CONTROL</u>**

**Section 4.1&nbsp;&nbsp;&nbsp;&nbsp;<u>Consequence of a Change in Control</u>**. Subject to the provisions of **Section 3.4** (relating to the adjustment of shares), and except as otherwise provided in the Plan or in any Award Agreement, at the time of a Change in Control:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(a)&nbsp;&nbsp;&nbsp;&nbsp;**The Committee, in its sole discretion, shall determine whether an outstanding Award under the Plan shall become fully earned and vested as of the effective date, or in anticipation, of such Change in Control.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(b)&nbsp;&nbsp;&nbsp;&nbsp;**If the Committee makes no determination in accordance with **subsection (a)** above, then subject to any forfeiture and expiration provisions otherwise applicable to the respective Awards, all stock options and SARs under the Plan then held by the Participant shall become fully exercisable immediately if, and all stock awards and cash incentive awards under the Plan then held by the Participant shall become fully earned and vested immediately if, (i) the Plan and the respective Award Agreements are not the obligations of the entity, whether the Company, a successor thereto or an assignee thereof, that conducts following a Change in Control substantially all of the business conducted by the Company and its Subsidiaries immediately prior to such Change in Control or (ii) the Plan and the respective Award Agreements are the obligations of the entity, whether the Company, a successor thereto or an assignee thereof, that conducts following a Change in Control substantially all of the business conducted by the Company and its Subsidiaries immediately prior to such Change in Control and the Participant incurs a Termination of Service without Cause or by the Participant for Good Reason following such Change in Control.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(c)&nbsp;&nbsp;&nbsp;&nbsp;**If the Committee makes no determination in accordance with **subsection (a)** above and if the vesting of an outstanding Award is conditioned upon the achievement of performance measures, then such vesting shall be subject to the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;If, at the time of the Change in Control, the established performance measures are less than 50% attained (as determined in the sole discretion of the Committee, but in any event, based pro rata in accordance with time lapsed through the date of the Change in Control in the event of any period-based performance measures), then such Award shall become vested and exercisable on a fractional basis with the numerator being equal to the percentage of attainment and the denominator being 50% upon the Change in Control.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp;If, at the time of the Change in Control, the established performance measures are at least 50% attained (as determined in the sole discretion of the Committee, but in any event based pro rata in accordance with time lapsed through the date of the Change in Control in the event of any period-based performance measures), then such Award shall become fully earned and vested immediately upon the Change in Control.

**Section 4.2&nbsp;&nbsp;&nbsp;&nbsp;<u>Definition of Change in Control</u>.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(a)&nbsp;&nbsp;&nbsp;&nbsp;**For purposes of the Plan, "**Change in Control**" means the first to occur of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;The consummation of the acquisition by any "person" (as such term is defined in Section 13(d) or 14(d) of the Exchange Act) of "beneficial ownership" (within the meaning of

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Rule 13d-3 promulgated under the Exchange Act) of 50% or more of the combined voting power of the then outstanding Voting Securities of the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp;During any 12-month period, the individuals who, as of the Effective Date, are members of the Board cease for any reason to constitute a majority of the Board, unless either the election of, or the nomination for election by, the Shareholders of any new director was approved by a vote of a majority of the Board, in which case such new director shall for purposes of the Plan be considered as a member of the Board; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;&nbsp;&nbsp;&nbsp;The consummation by the Company of (i) a merger, consolidation or other similar transaction if the Shareholders immediately before such merger, consolidation or other similar transaction do not, as a result of such merger, consolidation or other similar transaction, own, directly or indirectly, more than 50% of the combined voting power of the then outstanding Voting Securities of the entity resulting from such merger or consolidation in substantially the same proportion as their ownership of the combined voting power of the Voting Securities of the Company outstanding immediately before such merger or consolidation or (ii) a complete liquidation or dissolution of, or an agreement for the sale or other disposition of, all or substantially all of the assets of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(b)&nbsp;&nbsp;&nbsp;&nbsp;**Notwithstanding any provision in the foregoing definition of Change in Control to the contrary, a Change in Control shall not be deemed to occur solely because 50% or more of the combined voting power of the then outstanding securities of the Company are acquired by (i) a trustee or other fiduciary holding securities under one or more employee benefit plans maintained for employees of the entity or (ii) any corporation that, immediately prior to such acquisition, is owned directly or indirectly by the Shareholders in the same proportion as their ownership of Shares immediately prior to such acquisition.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(c)&nbsp;&nbsp;&nbsp;&nbsp;**Further notwithstanding any provision in the foregoing definition of Change in Control to the contrary, in the event that any Award constitutes Deferred Compensation, and the settlement of, or distribution of benefits under such Award is to be triggered by a Change in Control, then such settlement or distribution shall be subject to the event constituting the Change in Control also constituting a "change in control event" under Code Section 409A.

**Article 5**

**<u>COMMITTEE</u>**

**Section 5.1&nbsp;&nbsp;&nbsp;&nbsp;<u>Administration</u>.** The authority to control and manage the operation and administration of the Plan shall be vested in the Committee in accordance with this **Article 5**. The Committee shall be selected by the Board, *provided* that the Committee shall consist of two or more members of the Board, each of whom is a "non-employee director" (within the meaning of Rule 16b-3 promulgated under the Exchange Act) and an "independent director" (within the meaning of the rules of the securities exchange which then constitutes the principal listing for the Shares), in each case to the extent required by the Exchange Act or the applicable rules of the securities exchange which then constitutes the principal listing for the Shares, respectively. Subject to the applicable rules of any securities exchange or similar entity, if the Committee does not exist, or for any other reason determined by the Board, the Board may take any action under the Plan that would otherwise be the responsibility of the Committee.

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**Section 5.2&nbsp;&nbsp;&nbsp;&nbsp;<u>Powers of Committee</u>.** The Committee's administration of the Plan shall be subject to the other provisions of the Plan and the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(a)&nbsp;&nbsp;&nbsp;&nbsp;**The Committee shall have the authority and discretion to select from among the Company's and each Subsidiary's employees, directors and service providers those persons who shall receive Awards, to determine the time or times of receipt, to determine the types of Awards and the number of Shares covered by the Awards, to establish the terms of Awards, to cancel or suspend Awards and to reduce or eliminate any restrictions or vesting requirements applicable to an Award at any time after the grant of the Award.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(b)&nbsp;&nbsp;&nbsp;&nbsp;**The Committee shall have the authority and discretion to interpret the Plan, to establish, amend and rescind any rules and regulations relating to the Plan and to make all other determinations that may be necessary or advisable for the administration of the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(c)&nbsp;&nbsp;&nbsp;&nbsp;**The Committee shall have the authority to define terms not otherwise defined in the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(d)&nbsp;&nbsp;&nbsp;&nbsp;**Any interpretation of the Plan by the Committee and any decision made by it under the Plan shall be final and binding on all persons.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(e)&nbsp;&nbsp;&nbsp;&nbsp;**In controlling and managing the operation and administration of the Plan, the Committee shall take action in a manner that conforms to the articles and bylaws of the Company and to all applicable law.

**Section 5.3&nbsp;&nbsp;&nbsp;&nbsp;<u>Delegation by Committee</u>.** Except to the extent prohibited by applicable law, the applicable rules of any securities exchange or similar entity, the Plan, the charter of the Committee, or as necessary to comply with the exemptive provisions of Rule 16b-3 of the Exchange Act, the Committee may allocate all or any portion of its responsibilities and powers to any one or more of its members and may delegate all or any part of its responsibilities and powers under the Plan to any person or persons selected by it. The acts of such delegates shall be treated under the Plan as acts of the Committee and such delegates shall report regularly to the Committee regarding the delegated duties and responsibilities and any Awards granted. Any such allocation or delegation may be revoked by the Committee at any time.

**Section 5.4&nbsp;&nbsp;&nbsp;&nbsp;<u>Information to be Furnished to Committee</u>.** As may be permitted by applicable law, the Company and each Subsidiary shall furnish the Committee with such data and information as it determines may be required for it to discharge its duties under the Plan. The records of the Company and each Subsidiary as to an employee's or Participant's employment, termination of employment, leave of absence, reemployment and compensation shall be conclusive with respect to all persons unless determined by the Committee to be manifestly incorrect. Subject to applicable law, Participants and other persons entitled to benefits under the Plan shall furnish the Committee such evidence, data or information as the Committee considers desirable to carry out the terms of the Plan.

**Section 5.5&nbsp;&nbsp;&nbsp;&nbsp;<u>Expenses and Liabilities</u>.** All expenses and liabilities incurred by the Committee in the administration and interpretation of the Plan or any Award Agreement shall be borne by the Company. The Committee may employ attorneys, consultants, accountants or other persons in connection with the administration and interpretation of the Plan, and the Company, and its officers and directors, shall be entitled to rely upon the advice, opinions and valuations of any such persons.

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**Article 6**

**<u>AMENDMENT AND TERMINATION</u>**

**Section 6.1&nbsp;&nbsp;&nbsp;&nbsp;<u>General</u>.** The Board may, as permitted by law, at any time, amend or terminate the Plan, and may amend any Award Agreement; *provided*, *however*, that no amendment or termination may (except as provided in **Section 2.6**, **Section 3.4** and **Section 6.2**), in the absence of written consent to the change by the affected Participant (or, if the Participant is not then living, the affected beneficiary), impair the rights of any Participant or beneficiary under any Award granted prior to the date such amendment or termination is adopted by the Board; and *provided, further*, that, no amendment may (a) materially increase the benefits accruing to Participants under the Plan; (b) materially increase the aggregate number of securities that may be delivered under the Plan, other than pursuant to **Section 3.4**, or (c) materially modify the requirements for participation in the Plan, unless the amendment under (a), (b) or (c) immediately above is approved by the Shareholders.

**Section 6.2&nbsp;&nbsp;&nbsp;&nbsp;<u>Amendment to Conform to Law</u>.** Notwithstanding any provision of the Plan or an Award Agreement to the contrary, the Committee may amend the Plan or any Award Agreement, to take effect retroactively or otherwise, as deemed necessary or advisable for the purpose of conforming the Plan or the Award Agreement to any applicable law. By accepting an Award, the Participant shall be deemed to have acknowledged and consented to any amendment to an Award made pursuant to this **Section 6.2**, **Section 2.6** or **Section 3.4** without further consideration or action.

**Article 7**

**<u>PURCHASE AND SALE RIGHTS</u>**

**Section 7.1&nbsp;&nbsp;&nbsp;&nbsp;<u>Additional Conditions of Transfer</u>.** Except as permitted by the Plan or with the prior written consent of the Company, a Participant shall not sell, transfer, pledge, assign or otherwise alienate or hypothecate any Owned Shares. If a Participant sells, transfers, pledges, assigns or otherwise alienates or hypothecates any Owned Shares in breach of the Plan, the Company shall not be required to (a) transfer such Owned Shares on its books or (b) treat any transferee as owner of such Owned Shares, to accord the right to vote as such owner or to pay dividends to any such transferee.

**Section 7.2&nbsp;&nbsp;&nbsp;&nbsp;<u>Legend</u>.** Each certificate evidencing Owned Shares and each certificate issued in exchange for or upon the transfer of any Owned Shares shall be stamped or otherwise imprinted with such legend as the Company may require.

**Section 7.3&nbsp;&nbsp;&nbsp;&nbsp;<u>Company's Call Rights</u>.** If the Participant incurs a Termination of Service for any reason, the Company shall have the right to purchase, and the Participant (or the Participant's estate or beneficiary, if applicable) shall be required to sell to the Company, any or all of the Owned Shares then held by such person on the following terms (the "**Company Call Right**"):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(a)&nbsp;&nbsp;&nbsp;&nbsp;**The purchase price per Owned Share shall be equal to the Fair Market Value thereof on the date on which the Call Notice is delivered; *provided*, *however*, that if the Participant's Termination of Service is for Cause, the purchase price per Owned Share shall be equal to the lesser of (i) the Fair Market Value of a Share on the date on which the Call Notice is delivered and (ii) the price paid for the Owned Share (which may be $0).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(b)&nbsp;&nbsp;&nbsp;&nbsp;**If the Company desires to exercise its right to purchase Owned Shares pursuant to this **Section 7.3**, the Company shall deliver written notice thereof (the "**Call Notice**") to the Participant (or to the Participant's estate or beneficiary, if applicable) of its intention to purchase Owned Shares within 90 days following the date of the Participant's Termination of Service. The Call Notice shall state

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that the Company has elected to exercise the Company Call Right and shall specify the number and price of Owned Shares with respect to which the Company Call Right is being exercised.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(c)&nbsp;&nbsp;&nbsp;&nbsp;**The closing of any purchase under this **Section 7.3** shall take place at the principal office of the Company on a date specified by the Company, which date shall be no later than the 30th day after the giving of the Call Notice.

**Section 7.4&nbsp;&nbsp;&nbsp;&nbsp;<u>Company's Right of First Refusal</u>.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(a)&nbsp;&nbsp;&nbsp;&nbsp;**In the event the Participant receives a bona fide offer to sell, pledge or otherwise transfer to a third party any Owned Shares, or any interest in Owned Shares, the Company shall have a "**Right of First Refusal**" with respect to all such Owned Shares. If the Participant wishes to transfer Owned Shares, the Participant shall first provide written notice (the "**Transfer Notice**") to the Company describing fully the proposed transfer, including the number of Owned Shares proposed to be transferred, the proposed transfer price and the name and address of the proposed transferee. The Transfer Notice shall be signed both by the Participant and by the proposed transferee and must constitute a binding commitment of both parties to the transfer of the Owned Shares, subject to the Company's Right of First Refusal.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(b)&nbsp;&nbsp;&nbsp;&nbsp;**In connection with its Right of First Refusal, the Company shall have the right to purchase all of the Owned Shares on the terms described in the Transfer Notice (subject to any change in such terms permitted in **Section 7.4(c)**) by delivery of a notice of exercise of the Right of First Refusal within 30 days after the date the Company receives the Transfer Notice. The Company's rights with respect to the Right of First Refusal shall be freely assignable, in whole or in part.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(c)&nbsp;&nbsp;&nbsp;&nbsp;**If the Company fails to exercise the Right of First Refusal within 30 days after the date that the Company receives the Transfer Notice, the Participant may, not later than 60 days following the date the Company receives the Transfer Notice, conclude a transfer of the Owned Shares subject to the Transfer Notice on the terms described in the Transfer Notice, *provided* that the transferee acknowledges in writing that such transferee remains bound by the Right of First Refusal with respect to any subsequent transfer of such Owned Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(d)&nbsp;&nbsp;&nbsp;&nbsp;**Any proposed transfer on terms different from those described in the Transfer Notice, as well as any subsequent proposed transfer by the Participant, shall again be subject to the Right of First Refusal and shall require compliance with the procedure described in this **Section 7.4**. If the Company exercises its Right of First Refusal, the Participant and the Company shall consummate the sale of the Owned Shares on the terms set forth in the Transfer Notice.

**Section 7.5&nbsp;&nbsp;&nbsp;&nbsp;<u>Delivery of Owned Shares to the Company</u>.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(a)&nbsp;&nbsp;&nbsp;&nbsp;**On or before the close of business on the date specified for the purchase, the Participant shall deliver to the Company all certificates representing the Participant's Owned Shares to be purchased in connection with the Company Call Right pursuant to **Section 7.3**, with appropriate executed stock transfers conveying, representing and warranting good title to the Company for the Participant's Owned Shares in compliance with the terms of the Plan and free and clear of all liens, encumbrances or claims of any third party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(b)&nbsp;&nbsp;&nbsp;&nbsp;**Within 10 days after the Company's exercise of its Right of First Refusal, the Participant shall deliver to the Company all certificates representing the Participant's Owned Shares to be purchased in connection with the Right of First Refusal pursuant to **Section 7.4**, with appropriate

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executed stock transfers conveying, representing and warranting good title to the Company for the Participant's Owned Shares in compliance with the terms of the Plan and free and clear of all liens, encumbrances or claims of any third party.

**Section 7.6&nbsp;&nbsp;&nbsp;&nbsp;<u>Payment of Purchase Price to Participant</u>.** Concurrently with the receipt of certificates by the Company in accordance with **Section 7.5**, the purchase price of the Participant's Owned Shares shall be payable, at the option of the Company, by check, with a subordinated note, by cancellation of all or a portion of any outstanding indebtedness owed by the Participant to the Company, or by a combination thereof, in each case subject to **Section 7.7**.

**Section 7.7&nbsp;&nbsp;&nbsp;&nbsp;<u>Additional Conditions</u>.** All purchases of Owned Shares by the Company pursuant to this **Article 7** shall be subject to applicable restrictions contained in the Iowa Business Corporation Act and to the terms of the credit facilities of the Company and its Subsidiaries then in effect.

**Section 7.8&nbsp;&nbsp;&nbsp;&nbsp;<u>Consequences of IPO</u>.** Following an IPO, this **Article 7** shall no longer be effective, and thereafter the Company shall no longer have a Company Call Right or a Right of First Refusal.

**Article 8**

**<u>GENERAL TERMS</u>**

**Section 8.1&nbsp;&nbsp;&nbsp;&nbsp;<u>No Implied Rights</u>.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(a)&nbsp;&nbsp;&nbsp;&nbsp;***No Rights to Specific Assets.* No person shall by reason of participation in the Plan acquire any right in or title to any assets, funds or property of the Company or any Subsidiary, including any specific funds, assets, or other property that the Company or a Subsidiary, in its sole discretion, may set aside in anticipation of a liability under the Plan. A Participant shall have only a contractual right to the Shares or amounts, if any, distributable in accordance with the provisions of the Plan, unsecured by any assets of the Company or any Subsidiary, and nothing contained in the Plan or an Award Agreement shall constitute a guarantee that the assets of the Company or any Subsidiary shall be sufficient to provide any benefits to any person.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(b)&nbsp;&nbsp;&nbsp;&nbsp;***No Contractual Right to Employment or Future Awards.* The Plan does not constitute a contract of employment, and selection as a Participant shall not give any person the right to be retained in the service of the Company or a Subsidiary or any right or claim to any benefit under the Plan, unless such right or claim has specifically accrued under the Plan. No individual shall have the right to be selected to receive an Award, or, having been so selected, to receive a future Award.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(c)&nbsp;&nbsp;&nbsp;&nbsp;***No Rights as a Shareholder*. Except as otherwise provided in the Plan, no Award shall confer upon the holder thereof any rights as a Shareholder prior to the date on which the individual fulfills all conditions for receipt of such rights.

**Section 8.2&nbsp;&nbsp;&nbsp;&nbsp;<u>Transferability</u>.** Except as otherwise provided by the Committee, Awards are not transferable except as designated by the Participant by will or by the laws of descent and distribution or pursuant to a domestic relations order. The Committee shall have the discretion to permit the transfer of Awards; *provided, however,* that such transfers shall be limited to immediate family members of Participants, trusts, partnerships, limited liability companies and other entities that are permitted to exercise rights under Awards in accordance with Form S-8 established for the primary benefit of such family members or to charitable organizations; and *provided, further,* that such transfers shall not be made for value to the Participant.

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**Section 8.3&nbsp;&nbsp;&nbsp;&nbsp;<u>Designation of Beneficiaries</u>.** A Participant hereunder may file with the Company a designation of a beneficiary or beneficiaries under the Plan and may from time to time revoke or amend any such designation. Any designation of beneficiary under the Plan shall be controlling over any other disposition, testamentary or otherwise; *provided, however,* that if the Committee is in doubt as to the entitlement of any such beneficiary to any Award, the Committee may determine to recognize only the legal representative of the Participant in which case the Company, the Committee and the members thereof shall not have any further liability to anyone.

**Section 8.4&nbsp;&nbsp;&nbsp;&nbsp;<u>Non-Exclusivity</u>.** Neither the adoption of the Plan by the Board nor the submission of the Plan to the Shareholders for approval shall be construed as creating any limitations on the power of the Board or the Committee to adopt such other incentive arrangements as either may deem desirable.

**Section 8.5&nbsp;&nbsp;&nbsp;&nbsp;<u>Award Agreement</u>.** Each Award shall be evidenced by an Award Agreement. A copy of the Award Agreement, in any medium chosen by the Committee, shall be made available to the Participant, and the Committee may require that the Participant sign a copy of the Award Agreement.

**Section 8.6&nbsp;&nbsp;&nbsp;&nbsp;<u>Form and Time of Elections</u>.** Unless otherwise specified in the Plan, each election required or permitted to be made by any Participant or other person entitled to benefits under the Plan, and any permitted modification, or revocation thereof, shall be filed with the Company at such times, in such form, and subject to such terms or conditions, not inconsistent with the provisions of the Plan, as the Committee may require.

**Section 8.7&nbsp;&nbsp;&nbsp;&nbsp;<u>Evidence</u>.** Evidence required of anyone under the Plan may be by certificate, affidavit, document or other information that the person acting on it considers pertinent and reliable, and signed, made or presented by the proper party or parties.

**Section 8.8&nbsp;&nbsp;&nbsp;&nbsp;<u>Tax Withholding</u>.** All distributions under the Plan shall be subject to withholding of all applicable taxes and the Committee may condition the delivery of any Shares or other benefits under the Plan on satisfaction of the applicable withholding obligations. Except as otherwise provided by the Committee, such withholding obligations may be satisfied (a) through cash payment by the Participant; (b) through the surrender of Shares that the Participant already owns or (c) through the surrender of Shares to which the Participant is otherwise entitled under the Plan; *provided, however,* that except as otherwise specifically provided by the Committee, such Shares under clause (c) may not be used to satisfy more than the maximum individual statutory tax rate for each applicable tax jurisdiction.

**Section 8.9&nbsp;&nbsp;&nbsp;&nbsp;<u>Successors</u>.** All obligations of the Company under the Plan shall be binding upon and inure to the benefit of any successor to the Company.

**Section 8.10&nbsp;&nbsp;&nbsp;&nbsp;<u>Indemnification</u>.** To the fullest extent permitted by law, each person who is or shall have been a member of the Committee or the Board, or an officer of the Company to whom authority was delegated in accordance with **Section 5.3**, or an employee of the Company shall be indemnified and held harmless by the Company against and from any loss (including amounts paid in settlement), cost, liability or expense (including reasonable attorneys' fees) that may be imposed upon or reasonably incurred by him or her in connection with or resulting from any claim, action, suit, or proceeding to which he or she may be a party or in which he or she may be involved by reason of any action taken or failure to act under the Plan and against and from any and all amounts paid by him or her in settlement thereof, with the Company's approval, or paid by him or her in satisfaction of any judgment in any such action, suit, or proceeding against him or her (*provided* that he or she shall give the Company

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an opportunity, at its own expense, to handle and defend the same before he or she undertakes to handle and defend it on his or her own behalf), unless such loss, cost, liability or expense is a result of his or her own willful misconduct or except as expressly provided by statute. The foregoing right of indemnification shall not be exclusive of any other rights of indemnification to which such persons may be entitled under the Company's charter or bylaws, as a matter of law, or otherwise, or any power that the Company may have to indemnify them or hold them harmless.

**Section 8.11&nbsp;&nbsp;&nbsp;&nbsp;<u>No Fractional Shares</u>.** Unless otherwise permitted by the Committee, no fractional Shares shall be delivered pursuant to the Plan or any Award. The Committee shall determine whether cash, Shares or other property shall be delivered or paid in lieu of fractional Shares or whether such fractional Shares or any rights thereto shall be forfeited or otherwise eliminated.

**Section 8.12&nbsp;&nbsp;&nbsp;&nbsp;<u>Governing Law</u>.** The Plan, all Awards, and all actions taken in connection herewith and therewith shall be governed by and construed in accordance with the laws of the State of Iowa without reference to principles of conflict of laws, except as superseded by applicable federal law.

**Section 8.13&nbsp;&nbsp;&nbsp;&nbsp;<u>Benefits Under Other Plans</u>.** Except as otherwise provided by the Committee, Awards granted to a Participant (including the grant and the receipt of benefits) shall be disregarded for purposes of determining the Participant's benefits under, or contributions to, any qualified retirement plan, nonqualified plan and any other benefit plan maintained by the Participant's employer.

**Section 8.14&nbsp;&nbsp;&nbsp;&nbsp;<u>Validity</u>.** If any provision of the Plan is determined to be illegal or invalid for any reason, said illegality or invalidity shall not affect the remaining provisions of the Plan, and the Plan shall be construed and enforced as if such illegal or invalid provision had never been included in the Plan.

**Section 8.15&nbsp;&nbsp;&nbsp;&nbsp;<u>Notice</u>.** Unless provided otherwise in an Award Agreement or policy adopted from time to time by the Committee, all communications to the Company provided for in the Plan, or any Award Agreement, shall be delivered personally or sent by registered or certified mail, return receipt requested, postage prepaid (*provided* that international mail shall be sent via overnight or two-day delivery), or sent by prepaid overnight courier to the Company at the address set forth below:

Lincoln Bancorp

Attn: **Cathy Schuler, EVP Human Resources**

508 Main Street

Reinbeck, IA 50669

Such communications shall be deemed given:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(a)&nbsp;&nbsp;&nbsp;&nbsp;**In the case of delivery by overnight service with guaranteed next day delivery, the next day or the day designated for delivery; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(b)&nbsp;&nbsp;&nbsp;&nbsp;**In the case of certified or registered U.S. mail, five days after deposit in the U.S. mail;

*provided, however,* that in no event shall any communication be deemed to be given later than the date it is actually received, *provided* it is actually received. In the event a communication is not received, it shall be deemed received only upon the showing of an original of the applicable receipt, registration or confirmation from the applicable delivery service provider.

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**Section 8.16&nbsp;&nbsp;&nbsp;&nbsp;<u>Clawback Policy</u>.** Any Award, amount or benefit received under the Plan shall be subject to potential cancellation, recoupment, rescission, payback or other similar action in accordance with any applicable Company clawback policy (the "**Policy**") or any applicable law. A Participant's receipt of an Award shall be deemed to constitute the Participant's acknowledgment of and consent to the Company's application, implementation and enforcement of (i) the Policy and any similar policy established by the Company that may apply to the Participant, whether adopted prior to or following the making of any Award and (ii) any provision of applicable law relating to cancellation, rescission, payback or recoupment of compensation, as well as the Participant's express agreement that the Company may take such actions as are necessary to effectuate the Policy, any similar policy and applicable law, without further consideration or action.

**Section 8.17&nbsp;&nbsp;&nbsp;&nbsp;<u>Breach of Restrictive Covenants</u>.** Except as otherwise provided by the Committee, notwithstanding any provision of the Plan to the contrary, if the Participant breaches a non-competition, non-solicitation, non-disclosure, non-disparagement or other restrictive covenant set forth in an Award Agreement or any other agreement between the Participant and the Company or a Subsidiary, whether during or after the Participant's Termination of Service, in addition to and not in limitation of any other rights, remedies, damages, penalties or restrictions available to the Company under the Plan, an Award Agreement, any other agreement between the Participant and the Company or a Subsidiary, or otherwise at law or in equity, the Participant shall forfeit or pay to the Company:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(a)&nbsp;&nbsp;&nbsp;&nbsp;**Any and all outstanding Awards granted to the Participant, including Awards that have become vested or exercisable;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(b)&nbsp;&nbsp;&nbsp;&nbsp;**Any Shares held by the Participant in connection with the Plan that were acquired by the Participant after the Participant's Termination of Service and within the 12-month period immediately preceding the Participant's Termination of Service;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(c)&nbsp;&nbsp;&nbsp;&nbsp;**The profit realized by the Participant from the exercise of any stock options and SARs that the Participant exercised after the Participant's Termination of Service and within the 12-month period immediately preceding the Participant's Termination of Service, which profit is the difference between the exercise price of the stock option or SAR and the Fair Market Value of any Shares or cash acquired by the Participant upon exercise of such stock option or SAR; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(d)&nbsp;&nbsp;&nbsp;&nbsp;**The profit realized by the Participant from the sale, or other disposition for consideration, of any Shares received by the Participant in connection with the Plan after the Participant's Termination of Service and within the 12-month period immediately preceding the Participant's Termination of Service and where such sale or disposition occurs in such similar time period.

**Article 9**

**<u>DEFINED TERMS; CONSTRUCTION</u>**

**Section 9.1&nbsp;&nbsp;&nbsp;&nbsp;<u>Definitions</u>.** In addition to the other definitions contained in the Plan, unless otherwise specifically provided in an Award Agreement, the following definitions shall apply:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(a)&nbsp;&nbsp;&nbsp;&nbsp;**"**10% Shareholder**" means an individual who, at the time of grant, owns Voting Securities possessing more than 10% of the total combined voting power of the Voting Securities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(b)&nbsp;&nbsp;&nbsp;&nbsp;**"**Award**" means an award under the Plan.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(c)&nbsp;&nbsp;&nbsp;&nbsp;**"**Award Agreement**" means the document that evidences the terms and conditions of an Award. Such document shall be referred to as an agreement regardless of whether a Participant's signature is required.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(d)&nbsp;&nbsp;&nbsp;&nbsp;**"**Board**" means the Board of Directors of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(e)&nbsp;&nbsp;&nbsp;&nbsp;**If the Participant is subject to an employment agreement (or other similar agreement) with the Company or a Subsidiary that provides a definition of termination for "cause" (or the like), then, for purposes of the Plan, the term "**Cause**" has the meaning set forth in such agreement; and in the absence of such a definition, "**Cause**" means (i) any act of (A) fraud or intentional misrepresentation or (B) embezzlement, misappropriation or conversion of assets or opportunities of the Company or a Subsidiary, (ii) willful violation of any law, rule or regulation in connection with the performance of the Participant's duties to the Company or a Subsidiary (other than traffic violations or similar offenses), (iii) with respect to any employee of the Company or a Subsidiary, commission of any act of moral turpitude or conviction of a felony or (iv) the willful or negligent failure of the Participant to perform the Participant's duties to the Company or a Subsidiary in any material respect.

Further, the Participant shall be deemed to have terminated for Cause if, after the Participant's Termination of Service, facts and circumstances arising during the course of the Participant's employment with the Company are discovered that would have constituted a termination for Cause.

Further, all rights a Participant has or may have under the Plan shall be suspended automatically during the pendency of any investigation by the Board or its designee or during any negotiations between the Board or its designee and the Participant regarding any actual or alleged act or omission by the Participant of the type described in the applicable definition of "Cause."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(f)&nbsp;&nbsp;&nbsp;&nbsp;**"**Call Notice**" has the meaning ascribed to it in **Section 7.3(b)**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(g)&nbsp;&nbsp;&nbsp;&nbsp;**"**Change in Control**" has the meaning ascribed to it in **Section 4.2**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(h)&nbsp;&nbsp;&nbsp;&nbsp;**"**Code**" means the Internal Revenue Code of 1986.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(i)&nbsp;&nbsp;&nbsp;&nbsp;**"**Committee**" means the Committee acting under **Article 5**, and in the event a Committee is not currently appointed, the Board.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(j)&nbsp;&nbsp;&nbsp;&nbsp;**"**Company**" means Lincoln Bancorp, an Iowa corporation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(k)&nbsp;&nbsp;&nbsp;&nbsp;**"**Company Call Right**" has the meaning ascribed to it in **Section 7.3**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(l)&nbsp;&nbsp;&nbsp;&nbsp;**"**Director Participant**" means a Participant who is a member of the Board or the board of directors of a Subsidiary that is not otherwise an employee of the Company or a Subsidiary.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(m)&nbsp;&nbsp;&nbsp;&nbsp;**"**Disability**" means the Participant is unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment that can be expected to result in death or last for a continuous period of not less than 12 months, or is, by reason of any medically determinable physical or mental impairment that can be expected to result in death or last for a continuous period of not less than 12 months, receiving income replacement benefits for a period of not less than three months under an accident or health plan covering the Company's or a Subsidiary's employees.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(n)&nbsp;&nbsp;&nbsp;&nbsp;**"**Effective Date**" has the meaning ascribed to it in **Section 1.1**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(o)&nbsp;&nbsp;&nbsp;&nbsp;**"**Exchange Act**" means the Securities Exchange Act of 1934.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(p)&nbsp;&nbsp;&nbsp;&nbsp;**"**Fair Market Value**" means, as of any date, the officially-quoted closing selling price of the Shares on such date on the principal national securities exchange on which Shares are listed or admitted to trading or, if there have been no sales with respect to Shares on such date, or if the Shares are not so listed or admitted to trading, the Fair Market Value shall be the value established by the Committee in good faith and, to the extent required, in accordance with Code Section 409A and Code Section 422.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(q)&nbsp;&nbsp;&nbsp;&nbsp;**"**Form S-8**" means a Registration Statement on Form S-8 promulgated by the U.S. Securities and Exchange Commission or any successor thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(r)&nbsp;&nbsp;&nbsp;&nbsp;**If the Participant is subject to an employment agreement (or other similar agreement) with the Company or a Subsidiary that provides a definition of termination for "good reason" (or the like), then, for purposes of the Plan, the term "**Good Reason**" has the meaning set forth in such agreement; and in the absence of such a definition, "**Good Reason**" means the occurrence of any one of the following events, unless the Participant agrees in writing that such event shall not constitute Good Reason:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;A material, adverse change in the nature, scope or status of the Participant's position, authorities or duties from those in effect immediately prior to the applicable Change in Control;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp;A material reduction in the Participant's aggregate compensation or benefits in effect immediately prior to the applicable Change in Control; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;&nbsp;&nbsp;&nbsp;Relocation of the Participant's primary place of employment of more than 50 miles from the Participant's primary place of employment immediately prior to the applicable Change in Control, or a requirement that the Participant engage in travel that is materially greater than prior to the applicable Change in Control.

Notwithstanding any provision of this definition to the contrary, prior to the Participant's Termination of Service for Good Reason, the Participant must give the Company written notice of the existence of any condition set forth in clause (i) – (iii) immediately above within 90 days of its initial existence and the Company shall have 30 days from the date of such notice in which to cure the condition giving rise to Good Reason, if curable. If, during such 30-day period, the Company cures the condition giving rise to Good Reason, the condition shall not constitute Good Reason. Further notwithstanding any provision of this definition to the contrary, in order to constitute a termination for Good Reason, such termination must occur within 12 months of the initial existence of the applicable condition.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(s)&nbsp;&nbsp;&nbsp;&nbsp;**"**IPO**" means the date on which the Company closes the first sale of its Shares to the general public pursuant to a registration statement filed with and declared effective by the Securities and Exchange Commission and under the Securities Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(t)&nbsp;&nbsp;&nbsp;&nbsp;**"**ISO**" means a stock option that is intended to satisfy the requirements applicable to an "incentive stock option" described in Code Section 422(b).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(u)&nbsp;&nbsp;&nbsp;&nbsp;**"**Owned Shares**" means Shares acquired in connection with an Award.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(v)&nbsp;&nbsp;&nbsp;&nbsp;**"**Participant**" has the meaning ascribed to it in **Section 1.2**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(w)&nbsp;&nbsp;&nbsp;&nbsp;**"**Plan**" means the Lincoln Bancorp 2019 Equity Incentive Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(x)&nbsp;&nbsp;&nbsp;&nbsp;**"**Policy**" has the meaning ascribed to it in **Section 8.16**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(y)&nbsp;&nbsp;&nbsp;&nbsp;**"**Right of First Refusal**" has the meaning ascribed to it in **Section 7.4(a)**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(z)&nbsp;&nbsp;&nbsp;&nbsp;**"**SAR**" has the meaning ascribed to it in **Section 2.1(b)**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(aa)&nbsp;&nbsp;&nbsp;&nbsp;**"**Securities Act**" means the Securities Act of 1933.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(bb)&nbsp;&nbsp;&nbsp;&nbsp;**"**Share**" means a share of the common stock of the Company, no par value per share.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(cc)&nbsp;&nbsp;&nbsp;&nbsp;**"**Shareholders**" means the shareholders of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(dd)&nbsp;&nbsp;&nbsp;&nbsp;**"**Subsidiary**" means any corporation or other entity that would be a "subsidiary corporation," as defined in Code Section 424(f), with respect to the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(ee)&nbsp;&nbsp;&nbsp;&nbsp;**"**Termination of Service**" means the first day occurring on or after a grant date on which the Participant ceases to be an employee and director of, and service provider to the Company and each Subsidiary, regardless of the reason for such cessation, subject to the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;The Participant's cessation as an employee or service provider shall not be deemed to occur by reason of the transfer of the Participant between the Company and a Subsidiary or between two Subsidiaries.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp;The Participant's cessation as an employee or service provider shall not be deemed to occur by reason of the Participant's being on a leave of absence from the Company or a Subsidiary approved by the Company or Subsidiary otherwise receiving the Participant's services.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;&nbsp;&nbsp;&nbsp;If, as a result of a sale or other transaction, the Subsidiary for whom the Participant is employed (or to whom the Participant is providing services) ceases to be a Subsidiary, and the Participant is not, following the transaction, an employee or director of, or service provider to, the Company or an entity that is then a Subsidiary, then the occurrence of such transaction shall be treated as the Participant's Termination of Service caused by the Participant being discharged by the entity for whom the Participant is employed or to whom the Participant is providing services.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv)&nbsp;&nbsp;&nbsp;&nbsp;A service provider, other than an employee or director, whose services to the Company or a Subsidiary are governed by a written agreement with such service provider shall cease to be a service provider at the time the provision of services under such written agreement ends (without renewal); and such a service provider whose services to the Company or a Subsidiary are not governed by a written agreement with the service provider shall cease to be a service provider on the date that is 90 days after the date the service provider last provides services requested by the Company or a Subsidiary.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v)&nbsp;&nbsp;&nbsp;&nbsp;Notwithstanding the foregoing, in the event that any Award constitutes deferred compensation, the term Termination of Service shall be interpreted by the Committee in a manner consistent with the definition of "separation from service" as defined under Code Section 409A.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(ff)&nbsp;&nbsp;&nbsp;&nbsp;**"**Transfer Notice**" has the meaning ascribed to it in **Section 7.4(a)**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(gg)&nbsp;&nbsp;&nbsp;&nbsp;**"**Voting Securities**" means any securities that ordinarily possess the power to vote in the election of directors without the happening of any precondition or contingency.

## Exhibit 10.12

**Exhibit 10.12**

**LINCOLN BANCORP**

**2026 EQUITY INCENTIVE PLAN**

**Article 1**

**<u>INTRODUCTION</u>**

**Section 1.1&nbsp;&nbsp;&nbsp;&nbsp;<u>Purpose, Effective Date and Term</u>.** The purpose of this **Lincoln Bancorp 2026 Equity Incentive Plan** is to promote the long-term financial success of Lincoln Bancorp and its Subsidiaries by providing a means to attract, retain and reward individuals who can and do contribute to such success, and to further align their interests with those of the Shareholders. The "**Effective Date**" of the Plan is **March 26, 2026**, the date of the approval of the Plan by the Board. The Plan shall remain in effect as long as any Awards are outstanding; provided, however, that no Awards may be granted after the 10-year anniversary of the Effective Date.

**Section 1.2&nbsp;&nbsp;&nbsp;&nbsp;<u>Participation</u>.** Each employee and director of, and service provider (with respect to which issuances of securities may be registered under Form S-8) to, the Company and each Subsidiary who is granted, and currently holds, an Award in accordance with the provisions of the Plan shall be a "**Participant**" in the Plan. Award recipients shall be limited to employees and directors of, and service providers (with respect to which issuances of securities may be registered under Form S-8) to, the Company and its Subsidiaries; *provided, however,* that an Award may be granted to an individual prior to the date on which he or she first performs services as an employee, director or service provider, *provided* that such Award does not become vested prior to the date such individual commences such services.

**Section 1.3&nbsp;&nbsp;&nbsp;&nbsp;<u>Definitions</u>.** Capitalized terms in the Plan shall be defined as set forth in the Plan (including the definition provisions of **Article 8**).

**Article 2**

**<u>AWARDS</u>**

**Section 2.1&nbsp;&nbsp;&nbsp;&nbsp;<u>General</u>.** Any Award may be granted singularly or in combination with another Award (or Awards). Each Award shall be subject to the provisions of the Plan and such additional provisions as the Committee may provide in a particular Award Agreement or other documentation. Subject to the provisions of **Section 3.3(b)**, an Award may be granted as an alternative to or replacement of an existing award under the Plan, any other plan of the Company or a Subsidiary, or as the form of payment for grants or rights earned or due under any other compensation plan or arrangement of the Company or a Subsidiary, including the plan of any entity acquired by the Company or a Subsidiary. The types of Awards that may be granted include the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(a)&nbsp;&nbsp;&nbsp;&nbsp;***Stock Options*. A stock option represents the right to purchase Shares at an exercise price established by the Committee. Any stock option granted under the Plan shall be a nonqualified stock option.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(b)&nbsp;&nbsp;&nbsp;&nbsp;***Stock Appreciation Rights.* A stock appreciation right (a "**SAR**") is a right to receive, in cash, Shares or a combination of both (as shall be reflected in the respective Award Agreement), an amount equal to or based upon the excess of (i) the Fair Market Value at the time of exercise of the SAR over (ii) an exercise price established by the Committee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(c)&nbsp;&nbsp;&nbsp;&nbsp;***Stock Awards.* A stock award is a grant of Shares or a right to receive Shares (or their cash equivalent or a combination of both, as shall be reflected in the respective Award Agreement) in the future, excluding Awards designated as stock options, SARs or cash incentive awards by the

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Committee. Such Awards may include bonus shares, stock units, performance shares, performance units, restricted stock, restricted stock units or any other equity-based Award as determined by the Committee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(d)&nbsp;&nbsp;&nbsp;&nbsp;***Cash Incentive Awards*. A cash incentive award is the grant of a right to receive a payment of cash (or Shares having a value equivalent to the cash otherwise payable, excluding Awards designated as stock options, SARs or stock awards by the Committee, all as shall be reflected in the respective Award Agreement) determined on an individual basis or as an allocation of an incentive pool that is contingent on the achievement of performance objectives established by the Committee.

**Section 2.2&nbsp;&nbsp;&nbsp;&nbsp;<u>Exercise of Stock Options and SARs</u>.** A stock option or SAR shall be exercisable in accordance with such provisions as may be established by the Committee; *provided*, *however*, that a stock option or SAR shall expire no later than 10 years after its grant date. The exercise price of each stock option and SAR shall be not less than 100% of the Fair Market Value on the grant date (or, if greater, the par value of a Share); *provided, however*, that, to the extent permitted under Code Section 409A, and subject to **Section 3.3(b)**, the exercise price may be higher or lower in the case of stock options and SARs granted in replacement of existing awards held by an employee, director or service provider granted by an acquired entity. The payment of the exercise price of a stock option shall be by cash or, subject to limitations imposed by applicable law, by any of the following means unless otherwise determined by the Committee from time to time: (a) by tendering, either actually or by attestation, Shares acceptable to the Committee and valued at Fair Market Value as of the day of exercise; (b) by irrevocably authorizing a third party, acceptable to the Committee, to sell Shares acquired upon exercise of the stock option and to remit to the Company no later than the third business day following exercise of a sufficient portion of the sale proceeds to pay the entire exercise price and any tax withholding resulting from such exercise; (c) by payment through a net exercise such that, without the payment of any funds, the Participant may exercise the option and receive the net number of Shares equal in value to (i) the number of Shares as to which the option is being exercised, multiplied by (ii) a fraction, the numerator of which is the Fair Market Value (on the date of exercise) less the exercise price, and the denominator of which is such Fair Market Value (the number of net Shares to be received shall be rounded down to the nearest whole number of Shares); (d) by personal, certified or cashier's check; (e) by other property deemed acceptable by the Committee; or (f) by any combination thereof.

**Section 2.3&nbsp;&nbsp;&nbsp;&nbsp;<u>Dividends and Dividend Equivalents</u>.** Any Award may provide the Participant with the right to receive dividend payments or dividend equivalent payments with respect to Shares subject to the Award; *provided, however,* any dividend payments or dividend equivalent payments with respect to the Award shall be withheld by the Company for the Participant's account, and interest may be credited on the amount of the dividend payments or dividend equivalent payments withheld at a rate and subject to such terms as determined by the Committee. The dividend payments or dividend equivalent payments so withheld by the Committee and attributable to any particular Award (and earnings thereon, if applicable) shall be distributed to the Participant in cash or, at the discretion of the Committee, in Shares having a Fair Market Value equal to the amount of such dividends, if applicable, upon the release of restrictions on such Award and, if such Award is forfeited, the Participant shall have no right to such dividend payments or dividend equivalent payments.

**Section 2.4&nbsp;&nbsp;&nbsp;&nbsp;<u>Forfeiture of Awards</u>.** Unless specifically provided to the contrary in an Award Agreement, upon notification of Termination of Service for Cause, any outstanding Award, whether vested or unvested, held by a Participant shall terminate immediately, such Award shall be forfeited and the Participant shall have no further rights thereunder.

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**Section 2.5&nbsp;&nbsp;&nbsp;&nbsp;<u>Deferred Compensation</u>.** The Plan is, and all Awards are, intended to be exempt from (or, in the alternative, to comply with) Code Section 409A, and each shall be construed, interpreted and administered accordingly. The Company does not guarantee that any benefits that may be provided under the Plan will satisfy all applicable provisions of Code Section 409A. Neither the Company, its Subsidiaries nor their respective directors, officers, employees or advisers (other than in his or her capacity as a Participant) shall be held liable for any taxes, interest, penalties or other monetary amounts owed by any Participant or other taxpayer as a result of the Plan or any Award. If any Award would be considered "deferred compensation" under Code Section 409A ("**Deferred Compensation**"), the Committee reserves the absolute right (including the right to delegate such right) to unilaterally amend the Plan or the applicable Award Agreement, without the consent of the Participant, to avoid the application of, or to maintain compliance with, Code Section 409A. Notwithstanding anything in the Plan or in any Award Agreement to the contrary, if any Award that would constitute Deferred Compensation would otherwise be payable or distributable under this Plan or any Award Agreement by reason of a Participant's separation from service during a period in which the Participant is a Specified Employee, then, subject to any permissible acceleration of payment by the Company under Code Section 409A: (i) the amount of such Deferred Compensation that would otherwise be payable during the six-month period immediately following the Participant's separation from service will be accumulated through and paid or provided on the first day of the seventh month following the Participant's separation from service (or, if the Participant dies during such period, within 30 days after the Participant's death) (in either case, the "**<u>Required Delay Period</u>**"); and (ii) the normal payment or distribution schedule for any remaining payments or distributions will resume at the end of the Required Delay Period.

**Article 3**

**<u>SHARES SUBJECT TO PLAN</u>**

**Section 3.1&nbsp;&nbsp;&nbsp;&nbsp;<u>Available Shares</u>.** The Shares with respect to which Awards may be granted shall be Shares currently authorized but unissued, currently held or, to the extent permitted by applicable law, subsequently acquired by the Company, including Shares purchased in the open market or in private transactions.

**Section 3.2&nbsp;&nbsp;&nbsp;&nbsp;<u>Share Limitations</u>.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(a)&nbsp;&nbsp;&nbsp;&nbsp;***Share Reserve*. Subject to the following provisions of this **Section 3.2**, the maximum number of Shares that may be delivered under the Plan shall be **600,000** Shares. The maximum number of Shares available for delivery under the Plan and the number of Shares subject to outstanding Awards shall be subject to adjustment as provided in **Section 3.3**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(b)&nbsp;&nbsp;&nbsp;&nbsp;***Reuse of Shares.* Any Shares subject to an Award that is canceled, forfeited or expires prior to exercise or realization, either in full or in part, shall again become available for issuance under the Plan. Notwithstanding anything to the contrary contained herein: shares subject to an Award under the Plan shall not again be made available for issuance or delivery under the Plan if such shares are (a) shares tendered in payment of a stock option, (b) shares delivered or withheld by the Company to satisfy any tax withholding obligation, or (c) shares covered by a stock-settled SAR or other Awards that were not issued upon the settlement of the Award.

**Section 3.3&nbsp;&nbsp;&nbsp;&nbsp;<u>Corporate Transactions; No Repricing</u>.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(a)&nbsp;&nbsp;&nbsp;&nbsp;***Adjustments*. In the event of a corporate transaction involving the Company or the Shares (including any stock dividend, stock split, extraordinary cash dividend, recapitalization,

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reorganization, merger, consolidation, split-up, spin-off, combination or exchange of shares), all outstanding Awards, the number of Shares available for delivery under the Plan under **Section 3.2** shall be adjusted automatically to proportionately and uniformly reflect such transaction; *provided, however,* that, subject to **Section 3.3(b)**, the Committee may otherwise adjust Awards (or prevent such automatic adjustment) as it deems necessary, in its sole discretion, to preserve the benefits or potential benefits of the Awards and the Plan. Action by the Committee under this **Section 3.3(a)** may include: (i) adjustment of the number and kind of shares that may be delivered under the Plan; (ii) adjustment of the number and kind of shares subject to outstanding Awards; (iii) adjustment of the exercise price of outstanding stock options and SARs; and (iv) any other adjustments that the Committee determines to be equitable (which may include (A) replacement of an Award with another award that the Committee determines has comparable value and that is based on stock of a company resulting from a corporate transaction, and (B) cancellation of an Award in return for cash payment of the current value of the Award, determined as though the Award were fully vested at the time of payment, *provided* that in the case of a stock option or SAR, the amount of such payment shall be the excess of the value of the stock subject to the option or SAR at the time of the transaction over the exercise price, and *provided*, *further*, that no such payment shall be required in consideration for the cancellation of the Award if the exercise price is greater than the value of the stock at the time of such corporate transaction). Notwithstanding the foregoing, the Committee shall not make any adjustments to outstanding Options or SARs that would constitute a modification or substitution of the stock right under Treas. Reg. Section 1.409A-1(b)(5)(v) that would be treated as the grant of a new stock right or change in the form of payment for purposes of Code Section 409A.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(b)&nbsp;&nbsp;&nbsp;&nbsp;***No Repricing*. Notwithstanding any provision of the Plan to the contrary, no adjustment or reduction of the exercise price of any outstanding stock option or SAR in the event of a decline in Share price shall be permitted without approval by the Shareholders or as otherwise expressly provided under **Section 3.3(a)**. The foregoing prohibition includes (i) reducing the exercise price of outstanding stock options or SARs, (ii) cancelling outstanding stock options or SARs in connection with the granting of stock options or SARs with a lower exercise price to the same individual, (iii) cancelling stock options or SARs with an exercise price in excess of the current Fair Market Value in exchange for a cash or other payment, and (iv) taking any other action that would be treated as a repricing of a stock option or SAR under the rules of the primary securities exchange or similar entity on which the Shares are listed.

**Section 3.4&nbsp;&nbsp;&nbsp;&nbsp;<u>Delivery of Shares</u>.** Delivery of Shares or other amounts under the Plan shall be subject to the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(a)&nbsp;&nbsp;&nbsp;&nbsp;***Compliance with Applicable Laws.* Notwithstanding any provision of the Plan to the contrary, the Company shall have no obligation to deliver any Shares or make any other distribution of benefits under the Plan unless such delivery or distribution complies with all applicable laws and the applicable requirements of any securities exchange or similar entity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(b)&nbsp;&nbsp;&nbsp;&nbsp;***No Certificates Required.* To the extent that the Plan provides for the delivery of Shares, the delivery may be effected on a non-certificated basis, to the extent not prohibited by applicable law or the applicable rules of any securities exchange or similar entity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(c)&nbsp;&nbsp;&nbsp;&nbsp;***Share Certificate Legend*. The Company reserves the right to place on shares acquired under the Plan a legend stating any applicable restrictions contained hereunder, pursuant to applicable securities rules, and pursuant to any Company shareholders agreement as maybe in effect from time to time.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(d)&nbsp;&nbsp;&nbsp;&nbsp;***Participant's Representations and Shareholders Agreement*. The Company may require the Participant to execute an investment representation statement, in a form provided by the Company, or to execute and become a party to a Company shareholder agreement, as may be in effect on such date.

**Article 4**

**<u>CHANGE IN CONTROL</u>**

**Section 4.1&nbsp;&nbsp;&nbsp;&nbsp;<u>Consequence of a Change in Control</u>**. Subject to the provisions of **Section 3.3** (relating to the adjustment of shares), and except as otherwise provided in the Plan or in any Award Agreement, at the time of a Change in Control, all stock options and SARs under the Plan then held by the Participant shall become fully exercisable immediately if, and all stock awards and cash incentive awards under the Plan then held by the Participant shall become fully earned and vested (at the "target" level in the case of performance-based Awards) immediately if, (i) the Plan and the respective Award Agreements are not the obligations of the entity, whether the Company, a successor thereto or an assignee thereof, that conducts following a Change in Control substantially all of the business conducted by the Company and its Subsidiaries immediately prior to such Change in Control or (ii) the Plan and the respective Award Agreements are the obligations of the entity, whether the Company, a successor thereto or an assignee thereof, that conducts following a Change in Control substantially all of the business conducted by the Company and its Subsidiaries immediately prior to such Change in Control and the Participant incurs a Termination of Service without Cause or by the Participant for Good Reason following such Change in Control.

**Section 4.2&nbsp;&nbsp;&nbsp;&nbsp;<u>Definition of Change in Control</u>.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(a)&nbsp;&nbsp;&nbsp;&nbsp;**For purposes of the Plan, "**Change in Control**" means the first to occur of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;The consummation of the acquisition by any "person" (as such term is defined in Section 13(d) or 14(d) of the Exchange Act) of "beneficial ownership" (within the meaning of Rule 13d-3 promulgated under the Exchange Act) of 50% or more of the combined voting power of the then outstanding Voting Securities of the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp;During any 12-month period, the individuals who, as of the Effective Date, are members of the Board cease for any reason to constitute a majority of the Board, unless either the election of, or the nomination for election by, the Shareholders of any new director was approved by a vote of a majority of the Board, in which case such new director shall for purposes of the Plan be considered as a member of the Board; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;&nbsp;&nbsp;&nbsp;The consummation by the Company of (i) a merger, consolidation or other similar transaction if the Shareholders immediately before such merger, consolidation or other similar transaction do not, as a result of such merger, consolidation or other similar transaction, own, directly or indirectly, more than 50% of the combined voting power of the then outstanding Voting Securities of the entity resulting from such merger or consolidation in substantially the same proportion as their ownership of the combined voting power of the Voting Securities of the Company outstanding immediately before such merger or consolidation or (ii) a complete liquidation or dissolution of, or an agreement for the sale or other disposition of, all or substantially all of the assets of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(b)&nbsp;&nbsp;&nbsp;&nbsp;**Notwithstanding any provision in the foregoing definition of Change in Control to the contrary, a Change in Control shall not be deemed to occur solely because 50% or more of the

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combined voting power of the then outstanding securities of the Company are acquired by (i) a trustee or other fiduciary holding securities under one or more employee benefit plans maintained for employees of the entity or (ii) any corporation that, immediately prior to such acquisition, is owned directly or indirectly by the Shareholders in the same proportion as their ownership of Shares immediately prior to such acquisition.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(c)&nbsp;&nbsp;&nbsp;&nbsp;**Further notwithstanding any provision in the foregoing definition of Change in Control to the contrary, in the event that any Award constitutes Deferred Compensation, and the settlement of, or distribution of benefits under such Award is to be triggered by a Change in Control, then such settlement or distribution shall be subject to the event constituting the Change in Control also constituting a "change in control event" under Code Section 409A.

**Article 5**

**<u>COMMITTEE</u>**

**Section 5.1&nbsp;&nbsp;&nbsp;&nbsp;<u>Administration</u>.** The authority to control and manage the operation and administration of the Plan shall be vested in the Committee in accordance with this **Article 5**. The Committee shall be selected by the Board, *provided* that the Committee shall consist of two or more members of the Board, each of whom is a "non-employee director" (within the meaning of Rule 16b-3 promulgated under the Exchange Act) and an "independent director" (within the meaning of the rules of the securities exchange which then constitutes the principal listing for the Shares), in each case to the extent required by the Exchange Act or the applicable rules of the securities exchange which then constitutes the principal listing for the Shares, respectively. Subject to the applicable rules of any securities exchange or similar entity, if the Committee does not exist, or for any other reason determined by the Board, the Board may take any action under the Plan that would otherwise be the responsibility of the Committee.

**Section 5.2&nbsp;&nbsp;&nbsp;&nbsp;<u>Powers of Committee</u>.** The Committee's administration of the Plan shall be subject to the other provisions of the Plan and the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(a)&nbsp;&nbsp;&nbsp;&nbsp;**The Committee shall have the authority and discretion to select from among the Company's and each Subsidiary's employees, directors and service providers those persons who shall receive Awards, to determine the time or times of receipt, to determine the types of Awards and the number of Shares covered by the Awards, to establish the terms of Awards, to cancel or suspend Awards and to reduce or eliminate any restrictions or vesting requirements applicable to an Award at any time after the grant of the Award.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(b)&nbsp;&nbsp;&nbsp;&nbsp;**The Committee shall have the authority and discretion to interpret the Plan, to establish, amend and rescind any rules and regulations relating to the Plan and to make all other determinations that may be necessary or advisable for the administration of the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(c)&nbsp;&nbsp;&nbsp;&nbsp;**The Committee shall have the authority to define terms not otherwise defined in the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(d)&nbsp;&nbsp;&nbsp;&nbsp;**Any interpretation of the Plan by the Committee and any decision made by it under the Plan shall be final and binding on all persons.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(e)&nbsp;&nbsp;&nbsp;&nbsp;**In controlling and managing the operation and administration of the Plan, the Committee shall take action in a manner that conforms to the articles and bylaws of the Company and to all applicable law.

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**Section 5.3&nbsp;&nbsp;&nbsp;&nbsp;<u>Delegation by Committee</u>.** Except to the extent prohibited by applicable law, the applicable rules of any securities exchange or similar entity, the Plan, the charter of the Committee, or as necessary to comply with the exemptive provisions of Rule 16b-3 of the Exchange Act, the Committee may allocate all or any portion of its responsibilities and powers to any one or more of its members and may delegate all or any part of its responsibilities and powers under the Plan to any person or persons selected by it. The acts of such delegates shall be treated under the Plan as acts of the Committee and such delegates shall report regularly to the Committee regarding the delegated duties and responsibilities and any Awards granted. Any such allocation or delegation may be revoked by the Committee at any time.

**Section 5.4&nbsp;&nbsp;&nbsp;&nbsp;<u>Information to be Furnished to Committee</u>.** As may be permitted by applicable law, the Company and each Subsidiary shall furnish the Committee with such data and information as it determines may be required for it to discharge its duties under the Plan. The records of the Company and each Subsidiary as to an employee's or Participant's employment, termination of employment, leave of absence, reemployment and compensation shall be conclusive with respect to all persons unless determined by the Committee to be manifestly incorrect. Subject to applicable law, Participants and other persons entitled to benefits under the Plan shall furnish the Committee such evidence, data or information as the Committee considers desirable to carry out the terms of the Plan.

**Section 5.5&nbsp;&nbsp;&nbsp;&nbsp;<u>Expenses and Liabilities</u>.** All expenses and liabilities incurred by the Committee in the administration and interpretation of the Plan or any Award Agreement shall be borne by the Company. The Committee may employ attorneys, consultants, accountants or other persons in connection with the administration and interpretation of the Plan, and the Company, and its officers and directors, shall be entitled to rely upon the advice, opinions and valuations of any such persons.

**Article 6**

**<u>AMENDMENT AND TERMINATION</u>**

**Section 6.1&nbsp;&nbsp;&nbsp;&nbsp;<u>General</u>.** The Board may, as permitted by law, at any time, amend or terminate the Plan, and may amend any Award Agreement; *provided*, *however*, that no amendment or termination may (except as provided in **Section 2.5**, **Section 3.3** and **Section 6.2**), in the absence of written consent to the change by the affected Participant (or, if the Participant is not then living, the affected beneficiary), impair the rights of any Participant or beneficiary under any Award granted prior to the date such amendment or termination is adopted by the Board; and *provided, further*, that, that if an amendment to the Plan would, in the reasonable opinion of the Board, constitute a material change requiring stockholder approval under applicable laws, policies or regulations or the applicable listing or other requirements of a stock exchange, then such amendment shall be subject to Shareholder approval.

**Section 6.2&nbsp;&nbsp;&nbsp;&nbsp;<u>Amendment to Conform to Law</u>.** Notwithstanding any provision of the Plan or an Award Agreement to the contrary, the Committee may amend the Plan or any Award Agreement, to take effect retroactively or otherwise, as deemed necessary or advisable for the purpose of conforming the Plan or the Award Agreement to any applicable law. By accepting an Award, the Participant shall be deemed to have acknowledged and consented to any amendment to an Award made pursuant to this **Section 6.2**, **Section 2.5** or **Section 3.3** without further consideration or action.

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**Article 7**

**<u>GENERAL TERMS</u>**

**Section 7.1&nbsp;&nbsp;&nbsp;&nbsp;<u>No Implied Rights</u>.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(a)&nbsp;&nbsp;&nbsp;&nbsp;***No Rights to Specific Assets.* No person shall by reason of participation in the Plan acquire any right in or title to any assets, funds or property of the Company or any Subsidiary, including any specific funds, assets, or other property that the Company or a Subsidiary, in its sole discretion, may set aside in anticipation of a liability under the Plan. A Participant shall have only a contractual right to the Shares or amounts, if any, distributable in accordance with the provisions of the Plan, unsecured by any assets of the Company or any Subsidiary, and nothing contained in the Plan or an Award Agreement shall constitute a guarantee that the assets of the Company or any Subsidiary shall be sufficient to provide any benefits to any person.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(b)&nbsp;&nbsp;&nbsp;&nbsp;***No Contractual Right to Employment or Future Awards.* The Plan does not constitute a contract of employment, and selection as a Participant shall not give any person the right to be retained in the service of the Company or a Subsidiary or any right or claim to any benefit under the Plan, unless such right or claim has specifically accrued under the Plan. No individual shall have the right to be selected to receive an Award, or, having been so selected, to receive a future Award.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(c)&nbsp;&nbsp;&nbsp;&nbsp;***No Rights as a Shareholder*. Except as otherwise provided in the Plan, no Award shall confer upon the holder thereof any rights as a Shareholder prior to the date on which the individual fulfills all conditions for receipt of such rights.

**Section 7.2&nbsp;&nbsp;&nbsp;&nbsp;<u>Transferability</u>.** Except as otherwise provided by the Committee, Awards are not transferable except as designated by the Participant by will or by the laws of descent and distribution or pursuant to a domestic relations order. The Committee shall have the discretion to permit the transfer of Awards; *provided, however,* that such transfers shall be limited to immediate family members of Participants, trusts, partnerships, limited liability companies and other entities that are permitted to exercise rights under Awards in accordance with Form S-8 established for the primary benefit of such family members or to charitable organizations; and *provided, further,* that such transfers shall not be made for value to the Participant.

**Section 7.3&nbsp;&nbsp;&nbsp;&nbsp;<u>Designation of Beneficiaries</u>.** A Participant hereunder may file with the Company a designation of a beneficiary or beneficiaries under the Plan and may from time to time revoke or amend any such designation. Any designation of beneficiary under the Plan shall be controlling over any other disposition, testamentary or otherwise; *provided, however,* that if the Committee is in doubt as to the entitlement of any such beneficiary to any Award, the Committee may determine to recognize only the legal representative of the Participant in which case the Company, the Committee and the members thereof shall not have any further liability to anyone.

**Section 7.4&nbsp;&nbsp;&nbsp;&nbsp;<u>Non-Exclusivity</u>.** Neither the adoption of the Plan by the Board nor the submission of the Plan to the Shareholders for approval shall be construed as creating any limitations on the power of the Board or the Committee to adopt such other incentive arrangements as either may deem desirable.

**Section 7.5&nbsp;&nbsp;&nbsp;&nbsp;<u>Award Agreement</u>.** Each Award shall be evidenced by an Award Agreement. A copy of the Award Agreement, in any medium chosen by the Committee, shall be made available to the Participant, and the Committee may require that the Participant sign a copy of the Award Agreement.

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**Section 7.6&nbsp;&nbsp;&nbsp;&nbsp;<u>Form and Time of Elections</u>.** Unless otherwise specified in the Plan, each election required or permitted to be made by any Participant or other person entitled to benefits under the Plan, and any permitted modification, or revocation thereof, shall be filed with the Company at such times, in such form, and subject to such terms or conditions, not inconsistent with the provisions of the Plan, as the Committee may require.

**Section 7.7&nbsp;&nbsp;&nbsp;&nbsp;<u>Evidence</u>.** Evidence required of anyone under the Plan may be by certificate, affidavit, document or other information that the person acting on it considers pertinent and reliable, and signed, made or presented by the proper party or parties.

**Section 7.8&nbsp;&nbsp;&nbsp;&nbsp;<u>Tax Withholding</u>.** All distributions under the Plan shall be subject to withholding of all applicable taxes and the Committee may condition the delivery of any Shares or other benefits under the Plan on satisfaction of the applicable withholding obligations. Except as otherwise provided by the Committee, such withholding obligations may be satisfied (a) through cash payment by the Participant; (b) through the surrender of Shares that the Participant already owns or (c) through the surrender of Shares to which the Participant is otherwise entitled under the Plan; *provided, however,* that except as otherwise specifically provided by the Committee, such Shares under clause (c) may not be used to satisfy more than the maximum individual statutory tax rate for each applicable tax jurisdiction.

**Section 7.9&nbsp;&nbsp;&nbsp;&nbsp;<u>Successors</u>.** All obligations of the Company under the Plan shall be binding upon and inure to the benefit of any successor to the Company.

**Section 7.10&nbsp;&nbsp;&nbsp;&nbsp;<u>Indemnification</u>.** To the fullest extent permitted by law, each person who is or shall have been a member of the Committee or the Board, or an officer of the Company to whom authority was delegated in accordance with **Section 5.3**, or an employee of the Company shall be indemnified and held harmless by the Company against and from any loss (including amounts paid in settlement), cost, liability or expense (including reasonable attorneys' fees) that may be imposed upon or reasonably incurred by him or her in connection with or resulting from any claim, action, suit, or proceeding to which he or she may be a party or in which he or she may be involved by reason of any action taken or failure to act under the Plan and against and from any and all amounts paid by him or her in settlement thereof, with the Company's approval, or paid by him or her in satisfaction of any judgment in any such action, suit, or proceeding against him or her (*provided* that he or she shall give the Company an opportunity, at its own expense, to handle and defend the same before he or she undertakes to handle and defend it on his or her own behalf), unless such loss, cost, liability or expense is a result of his or her own willful misconduct or except as expressly provided by statute. The foregoing right of indemnification shall not be exclusive of any other rights of indemnification to which such persons may be entitled under the Company's charter or bylaws, as a matter of law, or otherwise, or any power that the Company may have to indemnify them or hold them harmless.

**Section 7.11&nbsp;&nbsp;&nbsp;&nbsp;<u>No Fractional Shares</u>.** Unless otherwise permitted by the Committee, no fractional Shares shall be delivered pursuant to the Plan or any Award. The Committee shall determine whether cash, Shares or other property shall be delivered or paid in lieu of fractional Shares or whether such fractional Shares or any rights thereto shall be forfeited or otherwise eliminated.

**Section 7.12&nbsp;&nbsp;&nbsp;&nbsp;<u>Governing Law</u>.** The Plan, all Awards, and all actions taken in connection herewith and therewith shall be governed by and construed in accordance with the laws of the State of Iowa without reference to principles of conflict of laws, except as superseded by applicable federal law.

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**Section 7.13&nbsp;&nbsp;&nbsp;&nbsp;<u>Benefits Under Other Plans</u>.** Except as otherwise provided by the Committee, Awards granted to a Participant (including the grant and the receipt of benefits) shall be disregarded for purposes of determining the Participant's benefits under, or contributions to, any qualified retirement plan, nonqualified plan and any other benefit plan maintained by the Participant's employer.

**Section 7.14&nbsp;&nbsp;&nbsp;&nbsp;<u>Validity</u>.** If any provision of the Plan is determined to be illegal or invalid for any reason, said illegality or invalidity shall not affect the remaining provisions of the Plan, and the Plan shall be construed and enforced as if such illegal or invalid provision had never been included in the Plan.

**Section 7.15&nbsp;&nbsp;&nbsp;&nbsp;<u>Notice</u>.** Unless provided otherwise in an Award Agreement or policy adopted from time to time by the Committee, all communications to the Company provided for in the Plan, or any Award Agreement, shall be delivered personally or sent by registered or certified mail, return receipt requested, postage prepaid (*provided* that international mail shall be sent via overnight or two-day delivery), or sent by prepaid overnight courier to the Company at the address set forth below:

Lincoln Bancorp

Attn: Jim Denholm

360 Westfield Ave, Suite 6

Waterloo, Iowa 50701

Such communications shall be deemed given:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(a)&nbsp;&nbsp;&nbsp;&nbsp;**In the case of delivery by overnight service with guaranteed next day delivery, the next day or the day designated for delivery; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(b)&nbsp;&nbsp;&nbsp;&nbsp;**In the case of certified or registered U.S. mail, five days after deposit in the U.S. mail;

*provided, however,* that in no event shall any communication be deemed to be given later than the date it is actually received, *provided* it is actually received. In the event a communication is not received, it shall be deemed received only upon the showing of an original of the applicable receipt, registration or confirmation from the applicable delivery service provider.

**Section 7.16&nbsp;&nbsp;&nbsp;&nbsp;<u>Clawback Policy</u>.** Any Award, amount or benefit received under the Plan shall be subject to potential cancellation, recoupment, rescission, payback or other similar action in accordance with any applicable Company clawback policy (the "**Policy**") or any applicable law. A Participant's receipt of an Award shall be deemed to constitute the Participant's acknowledgment of and consent to the Company's application, implementation and enforcement of (i) the Policy and any similar policy established by the Company that may apply to the Participant, whether adopted prior to or following the making of any Award and (ii) any provision of applicable law relating to cancellation, rescission, payback or recoupment of compensation, as well as the Participant's express agreement that the Company may take such actions as are necessary to effectuate the Policy, any similar policy and applicable law, without further consideration or action.

**Section 7.17&nbsp;&nbsp;&nbsp;&nbsp;<u>Breach of Restrictive Covenants</u>.** Except as otherwise provided by the Committee, notwithstanding any provision of the Plan to the contrary, if the Participant breaches a non-competition, non-solicitation, non-disclosure, non-disparagement or other restrictive covenant set forth in an Award Agreement or any other agreement between the Participant and the Company or a Subsidiary, whether during or after the Participant's Termination of Service, in addition to and not in limitation of any other rights, remedies, damages, penalties or restrictions available to the Company under the Plan, an

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Award Agreement, any other agreement between the Participant and the Company or a Subsidiary, or otherwise at law or in equity, the Participant shall forfeit or pay to the Company:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(a)&nbsp;&nbsp;&nbsp;&nbsp;**Any and all outstanding Awards granted to the Participant, including Awards that have become vested or exercisable;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(b)&nbsp;&nbsp;&nbsp;&nbsp;**Any Shares held by the Participant in connection with the Plan that were acquired by the Participant after the Participant's Termination of Service and within the 12-month period immediately preceding the Participant's Termination of Service;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(c)&nbsp;&nbsp;&nbsp;&nbsp;**The profit realized by the Participant from the exercise of any stock options and SARs that the Participant exercised after the Participant's Termination of Service and within the 12-month period immediately preceding the Participant's Termination of Service, which profit is the difference between the exercise price of the stock option or SAR and the Fair Market Value of any Shares or cash acquired by the Participant upon exercise of such stock option or SAR; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(d)&nbsp;&nbsp;&nbsp;&nbsp;**The profit realized by the Participant from the sale, or other disposition for consideration, of any Shares received by the Participant in connection with the Plan after the Participant's Termination of Service and within the 12-month period immediately preceding the Participant's Termination of Service and where such sale or disposition occurs in such similar time period.

**Article 8**

**<u>DEFINED TERMS; CONSTRUCTION</u>**

**Section 8.1&nbsp;&nbsp;&nbsp;&nbsp;<u>Definitions</u>.** In addition to the other definitions contained in the Plan, unless otherwise specifically provided in an Award Agreement, the following definitions shall apply:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(a)&nbsp;&nbsp;&nbsp;&nbsp;**"**10% Shareholder**" means an individual who, at the time of grant, owns Voting Securities possessing more than 10% of the total combined voting power of the Voting Securities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(b)&nbsp;&nbsp;&nbsp;&nbsp;**"**Award**" means an award under the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(c)&nbsp;&nbsp;&nbsp;&nbsp;**"**Award Agreement**" means the document that evidences the terms and conditions of an Award. Such document shall be referred to as an agreement regardless of whether a Participant's signature is required.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(d)&nbsp;&nbsp;&nbsp;&nbsp;**"**Board**" means the Board of Directors of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(e)&nbsp;&nbsp;&nbsp;&nbsp;**If the Participant is subject to an employment agreement (or other similar agreement) with the Company or a Subsidiary that provides a definition of termination for "cause" (or the like), then, for purposes of the Plan, the term "**Cause**" has the meaning set forth in such agreement; and in the absence of such a definition, "**Cause**" shall mean any of the following acts by the Participant, as determined in good faith by the Company: (i) any act of (A) fraud or intentional misrepresentation or (B) embezzlement, misappropriation or conversion of assets or opportunities of the Company or a Subsidiary, (ii) willful violation of any law, rule or regulation in connection with the performance of the Participant's duties to the Company or a Subsidiary (other than traffic violations or similar offenses), (iii) with respect to any employee of the Company or a Subsidiary, commission of any act of moral turpitude or conviction of a felony or (iv) the willful or negligent failure of the Participant to perform the Participant's duties to the Company or a Subsidiary in any material respect.

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Further, the Participant shall be deemed to have terminated for Cause if, after the Participant's Termination of Service, facts and circumstances arising during the course of the Participant's employment with the Company are discovered that would have constituted a termination for Cause.

Further, all rights a Participant has or may have under the Plan shall be suspended automatically during the pendency of any investigation by the Board or its designee or during any negotiations between the Board or its designee and the Participant regarding any actual or alleged act or omission by the Participant of the type described in the applicable definition of "Cause."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(f)&nbsp;&nbsp;&nbsp;&nbsp;**"**Change in Control**" has the meaning ascribed to it in **Section 4.2**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(g)&nbsp;&nbsp;&nbsp;&nbsp;**"**Code**" means the Internal Revenue Code of 1986.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(h)&nbsp;&nbsp;&nbsp;&nbsp;**"**Committee**" means the Committee acting under **Article 5**, and in the event a Committee is not currently appointed, the Board.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(i)&nbsp;&nbsp;&nbsp;&nbsp;**"**Company**" means Lincoln Bancorp, an Iowa corporation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(j)&nbsp;&nbsp;&nbsp;&nbsp;**"**Director Participant**" means a Participant who is a member of the Board or the board of directors of a Subsidiary that is not otherwise an employee of the Company or a Subsidiary.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(k)&nbsp;&nbsp;&nbsp;&nbsp;**"**Disability**" means the Participant is unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment that can be expected to result in death or last for a continuous period of not less than 12 months, or is, by reason of any medically determinable physical or mental impairment that can be expected to result in death or last for a continuous period of not less than 12 months, receiving income replacement benefits for a period of not less than three months under an accident or health plan covering the Company's or a Subsidiary's employees.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(l)&nbsp;&nbsp;&nbsp;&nbsp;**"**Effective Date**" has the meaning ascribed to it in **Section 1.1**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(m)&nbsp;&nbsp;&nbsp;&nbsp;**"**Exchange Act**" means the Securities Exchange Act of 1934.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(n)&nbsp;&nbsp;&nbsp;&nbsp;**"**Fair Market Value**" means, as of any date, the officially-quoted closing selling price of the Shares on such date on the principal national securities exchange on which Shares are listed or admitted to trading or, if there have been no sales with respect to Shares on such date, or if the Shares are not so listed or admitted to trading, the Fair Market Value shall be the value established by the Committee in good faith and, to the extent required, in accordance with Code Section 409A and Code Section 422.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(o)&nbsp;&nbsp;&nbsp;&nbsp;**"**Form S-8**" means a Registration Statement on Form S-8 promulgated by the U.S. Securities and Exchange Commission or any successor thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(p)&nbsp;&nbsp;&nbsp;&nbsp;**If the Participant is subject to an employment agreement (or other similar agreement) with the Company or a Subsidiary that provides a definition of termination for "good reason" (or the like), then, for purposes of the Plan, the term "**Good Reason**" has the meaning set forth in such agreement; and in the absence of such a definition, "**Good Reason**" means the occurrence of any

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one of the following events, unless the Participant agrees in writing that such event shall not constitute Good Reason:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;A material, adverse change in the nature, scope or status of the Participant's position, authorities or duties from those in effect immediately prior to the applicable Change in Control;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp;A material reduction in the Participant's aggregate compensation or benefits in effect immediately prior to the applicable Change in Control; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;&nbsp;&nbsp;&nbsp;Relocation of the Participant's primary place of employment of more than 50 miles from the Participant's primary place of employment immediately prior to the applicable Change in Control, or a requirement that the Participant engage in travel that is materially greater than prior to the applicable Change in Control.

Notwithstanding any provision of this definition to the contrary, prior to the Participant's Termination of Service for Good Reason, the Participant must give the Company written notice of the existence of any condition set forth in clause (i) – (iii) immediately above within 90 days of its initial existence and the Company shall have 30 days from the date of such notice in which to cure the condition giving rise to Good Reason, if curable. If, during such 30-day period, the Company cures the condition giving rise to Good Reason, the condition shall not constitute Good Reason. Further notwithstanding any provision of this definition to the contrary, in order to constitute a termination for Good Reason, such termination must occur within 12 months of the initial existence of the applicable condition.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(q)&nbsp;&nbsp;&nbsp;&nbsp;**"**IPO**" means the date on which the Company closes the first sale of its Shares to the general public pursuant to a registration statement filed with and declared effective by the Securities and Exchange Commission and under the Securities Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(r)&nbsp;&nbsp;&nbsp;&nbsp;**"**Owned Shares**" means Shares acquired in connection with an Award.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(s)&nbsp;&nbsp;&nbsp;&nbsp;**"**Participant**" has the meaning ascribed to it in **Section 1.2**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(t)&nbsp;&nbsp;&nbsp;&nbsp;**"**Plan**" means the Lincoln Bancorp 2026 Equity Incentive Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(u)&nbsp;&nbsp;&nbsp;&nbsp;**"**Policy**" has the meaning ascribed to it in **Section 7.16**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(v)&nbsp;&nbsp;&nbsp;&nbsp;**"**SAR**" has the meaning ascribed to it in **Section 2.1(b)**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(w)&nbsp;&nbsp;&nbsp;&nbsp;**"**Securities Act**" means the Securities Act of 1933.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(x)&nbsp;&nbsp;&nbsp;&nbsp;**"**Share**" means a share of the common stock of the Company, no par value per share.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(y)&nbsp;&nbsp;&nbsp;&nbsp;**"**Shareholders**" means the shareholders of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(z)&nbsp;&nbsp;&nbsp;&nbsp;**"**Specified Employee**" has the meaning given such term in Code Section 409A and the final regulations thereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(aa)&nbsp;&nbsp;&nbsp;&nbsp;**"**Subsidiary**" means any corporation or other entity that would be a "subsidiary corporation," as defined in Code Section 424(f), with respect to the Company.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(bb)&nbsp;&nbsp;&nbsp;&nbsp;**"**Termination of Service**" means the first day occurring on or after a grant date on which the Participant ceases to be an employee and director of, and service provider to the Company and each Subsidiary, regardless of the reason for such cessation, subject to the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;The Participant's cessation as an employee or service provider shall not be deemed to occur by reason of the transfer of the Participant between the Company and a Subsidiary or between two Subsidiaries.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp;The Participant's cessation as an employee or service provider shall not be deemed to occur by reason of the Participant's being on a leave of absence from the Company or a Subsidiary approved by the Company or Subsidiary otherwise receiving the Participant's services.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;&nbsp;&nbsp;&nbsp;If, as a result of a sale or other transaction, the Subsidiary for whom the Participant is employed (or to whom the Participant is providing services) ceases to be a Subsidiary, and the Participant is not, following the transaction, an employee or director of, or service provider to, the Company or an entity that is then a Subsidiary, then the occurrence of such transaction shall be treated as the Participant's Termination of Service caused by the Participant being discharged by the entity for whom the Participant is employed or to whom the Participant is providing services.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv)&nbsp;&nbsp;&nbsp;&nbsp;A service provider, other than an employee or director, whose services to the Company or a Subsidiary are governed by a written agreement with such service provider shall cease to be a service provider at the time the provision of services under such written agreement ends (without renewal); and such a service provider whose services to the Company or a Subsidiary are not governed by a written agreement with the service provider shall cease to be a service provider on the date that is 90 days after the date the service provider last provides services requested by the Company or a Subsidiary.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v)&nbsp;&nbsp;&nbsp;&nbsp;Notwithstanding the foregoing, in the event that any Award constitutes deferred compensation, the term Termination of Service shall be interpreted by the Committee in a manner consistent with the definition of "separation from service" as defined under Code Section 409A.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(cc)&nbsp;&nbsp;&nbsp;&nbsp;**"**Voting Securities**" means any securities that ordinarily possess the power to vote in the election of directors without the happening of any precondition or contingency.

## Exhibit 10.13

**Exhibit 10.13** 

**LINCOLN BANCORP**

**2019 EQUITY INCENTIVE PLAN**

**PERFORMANCE-BASED RESTRICTED STOCK UNIT**

**<u>AWARD AGREEMENT</u>**

The Participant specified below has been granted a performance-based restricted stock unit award (the "**Award**") by **Lincoln Bancorp**, an Iowa corporation (the "**Company**"), under the **Lincoln Bancorp 2019 Equity Incentive Plan** (the "**Plan**"). The Award shall be subject to the terms of the Plan and the terms set forth in this Performance-Based Restricted Stock Unit Award Agreement ("**Award Agreement**").

**Section 1.&nbsp;&nbsp;&nbsp;&nbsp;<u>Award</u>.** The Company has granted to the Participant the Award of restricted stock units (each such unit, an "**RSU**"), where each RSU represents the right of the Participant to receive one Share in the future once the Restricted Period ends, subject to the terms of this Award Agreement and the Plan.

**Section 2.&nbsp;&nbsp;&nbsp;&nbsp;<u>Terms of Restricted Stock Unit Award</u>.** The following words and phrases relating to the Award have the following meanings:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;The "**Participant**" is **______________________________**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;The "**Grant Date**" is **______________________________**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;The maximum number of "**RSUs**" is **_____________________________**.

Except for words and phrases otherwise defined in this Award Agreement, any capitalized word or phrase in this Award Agreement has the meaning set forth in the Plan.

**Section 3.&nbsp;&nbsp;&nbsp;&nbsp;<u>Restricted Period</u>.** The Award shall be divided into four annual installments (each, an "**Installment**") as described herein. Each Installment will vest based on the Company's achievement, as judged by the Committee in its sole discretion, of the performance measures described in **Section 4** below. The "**Restricted Period**" for each Installment shall begin on the Grant Date and end as described in this **Section 3**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;The Restricted Period for the 2019 Installment shall end upon the conclusion of its Performance Period. The Restricted Period for each subsequent Installment shall end upon the first anniversary of the conclusion of the applicable Performance Period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;Notwithstanding the foregoing, the Restricted Period for an Installment for which the Performance Period has concluded shall cease immediately, and RSUs subject to such Restricted Period shall become immediately vested, upon the Participant's Termination of Service due to Disability or death.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;Upon a Change in Control, the Award shall be treated in accordance with Section 4.1 of the Plan, which states:

Section 4.1 &nbsp;&nbsp;&nbsp;&nbsp;<u>Consequence of a Change in Control</u>. Subject to the provisions of Section 3.4 (relating to the adjustment of shares), and except as otherwise provided in the Plan or in any Award Agreement, at the time of a Change in Control:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;The Committee, in its sole discretion, shall determine whether an outstanding Award under the Plan shall become fully earned and vested as of the effective date, or in anticipation, of such Change in Control.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;If the Committee makes no determination in accordance with subsection (a) above, then subject to any forfeiture and expiration provisions otherwise applicable to respective Awards, all stock options and SARs under the Plan then held by the Participant shall become fully exercisable immediately if, and all stock awards and cash incentive awards under the Plan then held by the Participant shall become fully earned and vested immediately if, (i) the Plan and the respective Award Agreements are not the obligations of the entity, whether the Company, a successor thereto or an assignee thereof, that conducts following a Change in Control substantially all of the business conducted by the Company and its Subsidiaries immediately prior to such Change in Control or (ii) the Plan and the respective Award Agreements are the obligations of the entity, whether the Company, a successor thereto or an assignee thereof, that conducts following a Change in Control substantially all of the business conducted by the Company and its Subsidiaries immediately prior to such Change in Control and the Participant incurs a Termination of Service without Cause or by the Participant for Good Reason following such Change in Control.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;If the Committee makes no determination in accordance with subsection (a) above and if the vesting of an outstanding Award is conditioned upon the achievement of performance measures, then such vesting shall be subject to the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;If, at the time of the Change in Control, the established performance measures are less than 50% attained (as determined in the sole discretion of the Committee, but in any event, based pro rata in accordance with time lapsed through the date of the Change in Control in the event of any period-based performance measures), then such Award shall become vested and exercisable on a fractional basis with the numerator being equal to the percentage of attainment and the denominator being 50% upon the Change in Control.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp;If, at the time of the Change in Control, the established performance measures are at least 50% attained (as determined in the sole discretion of the Committee, but in any event based pro rata in accordance with time lapsed through the date of the Change in Control in the event of any period-based performance measures), then such Award shall become fully earned and vested immediately upon the Change in Control.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;Except as set forth in **Section 3(b)** and **Section 3(c)**, if the Participant's Termination of Service occurs prior to delivery of RSUs pursuant to **Section 5**, the Participant shall forfeit all right, title, and interest in and to all RSUs not yet delivered as of such Termination of Service. Any RSUs that have not yet been earned, awarded, or vested shall also be forfeited immediately.

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**Section 4.&nbsp;&nbsp;&nbsp;&nbsp;<u>Performance Measurement</u>.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;With respect to this Award, Core ROA will be the performance metric upon which the vesting of a portion of the Award will be based (as described in **Section 3** above), subject to the conditions of **Section 4(d)** below. "**Core ROA**" is the Company's return on assets after accounting for certain extraordinary events or considerations (if any). Core ROA shall be determined by the Committee following the conclusion of each "**Performance Period**," each of which consists of the calendar years in 2019, 2020, 2021, and 2022. The Committee shall have absolute discretion to determine the Core ROA achieved during the Performance Period, the level of achievement (if any) of the Core ROA goals, as set forth in **Section 3(b)**, and to determine the number of RSUs, if any, the Participant has earned in accordance with the provisions of this **Section 3**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;The table below establishes the target and maximum levels of achievement for Core ROA for the Performance Period applicable to each Installment of this Award.

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| | | | |
|:---|:---|:---|:---|
| **Installment** | **Performance Period** | **Target Core ROA** | **Maximum Core ROA** |
| 2019 Installment | Jan. 1, 2019 – Dec. 31, 2019 | .95% | 1.10% |
| 2020 Installment | Jan. 1, 2020 – Dec. 31, 2020 | 1.00% | 1.15% |
| 2021 Installment | Jan. 1, 2021 – Dec. 31, 2021 | 1.15% | 1.30% |
| 2022 Installment | Jan. 1, 2022 – Dec. 31, 2022 | 1.20% | 1.35% |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;The table below establishes the number of RSUs that the Participant may earn in each Installment for achieving the target or maximum levels of performance. The Participant shall have an opportunity to vest in the number of RSUs set forth for target and maximum performance if the Committee determines, in its sole discretion, that the Company has achieved the target or maximum Core ROA goal, respectively, for the applicable Performance Period.

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| | | | | |
|:---|:---|:---|:---|:---|
| | **2019 Installment** | **2020 Installment** | **2021 Installment** | **2022 Installment** |
| Target | [# of shares] | [# of shares] | [# of shares] | [# of shares] |
| Maximum | [# of shares] | [# of shares] | [# of shares] | [# of shares] |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;Notwithstanding anything contrary in this **Section 4**, no RSUs shall be earned in the 2019 or 2020 Installments if, in the sole determination of the Committee, the Company has not made satisfactory progress toward remedying the regulatory matters described in the 2019 Memorandum of Understanding during the respective Performance Period, or if the Company is subject to an additional regulatory enforcement action during the respective Performance Period. The Committee shall have absolute discretion to determine the Company's progress for the purpose of this **Section 4(d)**.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;In the instance the Participant earns no RSUs because Core ROA during a Performance Period does not meet the target level, the Committee may exercise discretion to award some number of RSUs for the applicable Installment that is less than the number set forth in **Section 4(c)** for target performance. In the instance that the performance during a Performance Period exceeds the target level but falls below the maximum level, the Committee may exercise discretion to award some number of RSUs in excess of the number available for target performance but below the number available for maximum performance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;&nbsp;&nbsp;In the instance the Company achieves at least target performance in the 2022 Performance Period and the Committee previously did not exercise discretion pursuant to **Section 4(e)** to award RSUs in each Installment in which the Participant earned no RSUs due to below-target Core ROA, the Committee may make a "catch up" award at the level of target performance for each Installment in which the Participant earned no RSUs. The Committee may make no such "catch up" award for any Installment in which the Committee previously exercised discretion to make an award pursuant to **Section 4(e)**.

**Section 5.&nbsp;&nbsp;&nbsp;&nbsp;<u>Settlement of RSUs</u>.** Delivery of Shares or other amounts under this Award Agreement and the Plan shall be subject to the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;*Delivery of Shares*. Subject to Section 3(d), the Company shall deliver to the Participant one Share free and clear of any restrictions in settlement of each of the vested and unrestricted RSUs within 60 days following the end of the respective Restricted Period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;*Compliance with Applicable Laws.* Notwithstanding any other term of this Award Agreement or the Plan, the Company shall have no obligation to deliver any Shares or make any other distribution of benefits under this Award Agreement or the Plan unless such delivery or distribution complies with all applicable laws and the applicable rules of any securities exchange or similar entity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;*Certificates Not Required.* To the extent that this Award Agreement and the Plan provide for the issuance of Shares, such issuance may be effected on a non-certificated basis, to the extent not prohibited by applicable law or the applicable rules of any securities exchange or similar entity.

**Section 6.&nbsp;&nbsp;&nbsp;&nbsp;<u>Withholding</u>.** All deliveries of Shares pursuant to the Award shall be subject to withholding of all applicable taxes. The Company shall have the right to require the Participant (or if applicable, permitted assigns, heirs, and Designated Beneficiaries) to remit to the Company an amount sufficient to satisfy any tax requirements prior to the delivery date of any Shares in connection with the Award. As permitted by the Committee from time to time, such withholding obligation may be satisfied at the election of the Participant (a) through cash payment by the Participant, (b) through the surrender of Shares that the Participant already owns, or (c) through the surrender of Shares to which the Participant is otherwise entitled under the Plan; *provided*, *however*, that except as otherwise specifically provided by the Committee, such Shares under clause (c) may not be used to satisfy more than the maximum individual statutory tax rate for each applicable tax jurisdiction.

**Section 7.&nbsp;&nbsp;&nbsp;&nbsp;<u>Non-Transferability of Award</u>.** The Award, or any portion thereof, is not transferable except as designated by the Participant by will or by the laws of descent and distribution or pursuant to a domestic relations order. Except as provided in the immediately preceding sentence, the Award shall not be assigned, transferred, pledged, hypothecated, or otherwise disposed of by the Participant in any way whether by operation of law or otherwise, and shall not be subject to execution, attachment, or similar process. Any attempt at assignment, transfer, pledge, hypothecation, or other

------

disposition of the Award contrary to the provisions hereof, or the levy of any attachment or similar process upon the Award, shall be null and void and without effect.

**Section 8.&nbsp;&nbsp;&nbsp;&nbsp;<u>Dividend Equivalents</u>.** The Participant shall be entitled to receive a payment equal in value to any dividends and distributions paid with respect to the RSUs (other than dividends and distributions that may be issued with respect to Shares by virtue of any corporate transaction, to the extent adjustment is made pursuant to Section 3.4 of the Plan) during the Restricted Period ("**Dividend Equivalents**"); *provided*, *however*, that no Dividend Equivalents shall be payable to or for the benefit of the Participant with respect to record dates for such dividends or distributions occurring before the Grant Date or on or after the date, if any, on which the Participant has forfeited the RSUs. Dividend Equivalents shall be credited at the time the respective dividends or distributions are paid and shall be accumulated, without interest, and shall be subject to the same restrictions applicable to the underlying RSUs.

**Section 9.&nbsp;&nbsp;&nbsp;&nbsp;<u>No Shareholder Rights</u>.** The Participant shall not have any rights of a Shareholder with respect to the RSUs, including but not limited to, voting rights, prior to settlement of the RSUs pursuant to **Section 5(a)** above.

**Section 10.&nbsp;&nbsp;&nbsp;&nbsp;<u>Heirs and Successors</u>.** This Award Agreement shall be binding upon, and inure to the benefit of, the Company and its successors and assigns, and any person acquiring all or substantially all of the Company's assets or business. If any rights of the Participant or benefits distributable to the Participant under this Award Agreement have not been settled or distributed at the time of the Participant's death, such rights shall be settled for and such benefits shall be distributed to the Designated Beneficiary in accordance with the provisions of this Award Agreement and the Plan. The "**Designated Beneficiary**" shall be the beneficiary or beneficiaries designated by the Participant in a writing filed with the Committee in such form as the Committee may require. The Participant's designation of beneficiary may be amended or revoked by the Participant in accordance with any procedures established by the Committee. If a Participant fails to designate a beneficiary, or if the Designated Beneficiary does not survive the Participant, any benefits that would have been provided to the Participant shall be provided to the legal representative of the estate of the Participant. If a Participant designates a beneficiary and the Designated Beneficiary survives the Participant but dies before the provision of the Designated Beneficiary's benefits under this Award Agreement, then any benefits that would have been provided to the Designated Beneficiary shall be provided to the legal representative of the estate of the Designated Beneficiary.

**Section 11.&nbsp;&nbsp;&nbsp;&nbsp;<u>Administration</u>.** The authority to manage and control the operation and administration of this Award Agreement and the Plan shall be vested in the Committee, and the Committee shall have all powers with respect to this Award Agreement as it has with respect to the Plan. Any interpretation of this Award Agreement or the Plan by the Committee and any decision made by the Committee with respect to this Award Agreement or the Plan shall be final and binding on all persons.

**Section 12.&nbsp;&nbsp;&nbsp;&nbsp;<u>Plan Governs</u>.** Notwithstanding any provision of this Award Agreement to the contrary, this Award Agreement shall be subject to the terms of the Plan, a copy of which may be obtained by the Participant from the Company. This Award Agreement shall be subject to all interpretations, amendments, rules, and regulations promulgated by the Committee from time to time. Notwithstanding any provision of this Award Agreement to the contrary, in the event of any discrepancy between the corporate records of the Company and this Award Agreement, the corporate records of the Company shall control.

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**Section 13.&nbsp;&nbsp;&nbsp;&nbsp;<u>Not an Employment Contract</u>.** Neither the Award nor this Award Agreement shall confer on the Participant any rights with respect to continuance of employment or other service with the Company or a Subsidiary, nor shall they interfere in any way with any right the Company or a Subsidiary may otherwise have to terminate or modify the terms of the Participant's employment or other service at any time.

**Section 14.&nbsp;&nbsp;&nbsp;&nbsp;<u>Amendment</u>.** Without limitation of **Section 17** and **Section 18** below, this Award Agreement may be amended in accordance with the provisions of the Plan, and may otherwise be amended in writing by the Participant and the Company without the consent of any other person.

**Section 15.&nbsp;&nbsp;&nbsp;&nbsp;<u>Governing Law</u>.** This Award Agreement, the Plan, and all actions taken in connection herewith and therewith shall be governed by and construed in accordance with the laws of the State of Iowa, without reference to principles of conflict of laws, except as superseded by applicable federal law.

**Section 16.&nbsp;&nbsp;&nbsp;&nbsp;<u>Validity</u>.** If any provision of this Award Agreement is determined to be illegal or invalid for any reason, said illegality or invalidity shall not affect the remaining parts hereof, but this Award Agreement shall be construed and enforced as if such illegal or invalid provision had never been included herein.

**Section 17.&nbsp;&nbsp;&nbsp;&nbsp;<u>Section 409A Amendment</u>.** The Award is intended to be exempt from Code Section 409A and this Award Agreement shall be administered and interpreted in accordance with such intent. The Committee reserves the right to unilaterally amend this Award Agreement without the consent of the Participant in order to maintain an exclusion from the application of, or to maintain compliance with, Code Section 409A; and the Participant hereby acknowledges and consents to such rights of the Committee.

**Section 18.&nbsp;&nbsp;&nbsp;&nbsp;<u>Clawback</u>.** The Award and any amount or benefit received under the Plan shall be subject to potential cancellation, recoupment, rescission, payback, or other action in accordance with the terms of any applicable Company or Subsidiary clawback policy (the "**Policy**") or any applicable law, as may be in effect from time to time. The Participant hereby acknowledges and consents to the Company's or a Subsidiary's application, implementation, and enforcement of (a) the Policy and any similar policy established by the Company or a Subsidiary that may apply to the Participant together with all other similarly situated participants, whether adopted prior to or following the date of this Award Agreement and (b) any provision of applicable law relating to cancellation, rescission, payback, or recoupment of compensation, and agrees that the Company or a Subsidiary may take such actions as may be necessary to effectuate the Policy, any similar policy, and applicable law, without further consideration or action.

\*&nbsp;&nbsp;&nbsp;&nbsp;\*&nbsp;&nbsp;&nbsp;&nbsp;\*&nbsp;&nbsp;&nbsp;&nbsp;\*&nbsp;&nbsp;&nbsp;&nbsp;\*

------

**IN WITNESS WHEREOF**, the Company has caused this Award Agreement to be executed in its name and on its behalf, and the Participant acknowledges understanding and acceptance of, and agrees to, the terms of this Award Agreement, all as of the Grant Date.

---

| |
|:---|
| **LINCOLN BANCORP** |
| By:  |
| Print Name: |
| Title: |
| **PARTICIPANT** |
| Print Name: |

---

------

**LINCOLN BANCORP**

**2019 EQUITY INCENTIVE PLAN**

**<u>RESTRICTED STOCK UNIT AWARD AGREEMENT</u>**

The Participant specified below has been granted a restricted stock unit award (the "**Award**") by **Lincoln Bancorp**, an Iowa corporation (the "**Company**"), under the **Lincoln Bancorp 2019 Equity Incentive Plan** (the "**Plan**"). The Award shall be subject to the terms of the Plan and the terms set forth in this Restricted Stock Unit Award Agreement ("**Award Agreement**").

**Section 1.&nbsp;&nbsp;&nbsp;&nbsp;<u>Award</u>.** The Company has granted to the Participant the Award of restricted stock units (each such unit, an "**RSU**"), where each RSU represents the right of the Participant to receive one Share in the future once the Restricted Period ends, subject to the terms of this Award Agreement and the Plan.

**Section 2.&nbsp;&nbsp;&nbsp;&nbsp;<u>Terms of Restricted Stock Unit Award</u>.** The following words and phrases relating to the Award have the following meanings:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;The "**Participant**" is **______________________________**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;The "**Grant Date**" is **______________________________**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;The number of "**RSUs**" is **_____________________________**.

Except for words and phrases otherwise defined in this Award Agreement, any capitalized word or phrase in this Award Agreement has the meaning set forth in the Plan.

**Section 3.&nbsp;&nbsp;&nbsp;&nbsp;<u>Restricted Period</u>.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;The "**Restricted Period**" for each installment of RSUs set forth in the table immediately below (each, an "**Installment**") shall begin on the Grant Date and end as described in the schedule set forth in the table immediately below; *provided* that the Participant's Termination of Service has not occurred prior thereto:

---

| | |
|:---|:---|
| **Installment** | **Restricted Period will end on:** |
| 100% of RSUs | 1<sup>st</sup> anniversary of Grant Date |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;Upon a Change in Control, the Award shall be treated in accordance with Section 4.1 of the Plan, which states:

Section 4.1 &nbsp;&nbsp;&nbsp;&nbsp;<u>Consequence of a Change in Control</u>. Subject to the provisions of Section 3.4 (relating to the adjustment of shares), and except as otherwise provided in the Plan or in any Award Agreement, at the time of a Change in Control:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;The Committee, in its sole discretion, shall determine whether an outstanding Award under the Plan shall become fully earned and vested as of the effective date, or in anticipation, of such Change in Control.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;If the Committee makes no determination in accordance with subsection (a) above, then subject to any forfeiture and expiration provisions otherwise applicable to respective Awards, all stock options and SARs under the Plan then held by the Participant shall become fully exercisable immediately if, and all stock awards and cash incentive awards under the Plan then held by the Participant shall become fully earned and vested immediately if, (i) the Plan and the respective Award Agreements are not the obligations of the entity, whether the Company, a successor thereto or an assignee thereof, that conducts following a Change in Control substantially all of the business conducted by the Company and its Subsidiaries immediately prior to such Change in Control or (ii) the Plan and the respective Award Agreements are the obligations of the entity, whether the Company, a successor thereto or an assignee thereof, that conducts following a Change in Control substantially all of the business conducted by the Company and its Subsidiaries immediately prior to such Change in Control and the Participant incurs a Termination of Service without Cause or by the Participant for Good Reason following such Change in Control.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;If the Committee makes no determination in accordance with subsection (a) above and if the vesting of an outstanding Award is conditioned upon the achievement of performance measures, then such vesting shall be subject to the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;If, at the time of the Change in Control, the established performance measures are less than 50% attained (as determined in the sole discretion of the Committee, but in any event, based pro rata in accordance with time lapsed through the date of the Change in Control in the event of any period-based performance measures), then such Award shall become vested and exercisable on a fractional basis with the numerator being equal to the percentage of attainment and the denominator being 50% upon the Change in Control.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp;If, at the time of the Change in Control, the established performance measures are at least 50% attained (as determined in the sole discretion of the Committee, but in any event based pro rata in accordance with time lapsed through the date of the Change in Control in the event of any period-based performance measures), then such Award shall become fully earned and vested immediately upon the Change in Control.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;Notwithstanding the foregoing provisions of this **Section 3**, the Restricted Period for all of the RSUs shall cease immediately and such RSUs shall become fully vested immediately upon the Participant's Termination of Service due to the Participant's Disability, death, or Retirement. For the purpose of this Award Agreement, "**Retirement**" means the Participant's Termination of Service, other than a Termination for Cause, on or following the Participant's attainment of either age 65, or age 55 with at least 10 years of continuous service with the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;Except as set forth in **Section 3(b)** and **Section 3(c)**, if the Participant's Termination of Service occurs prior to delivery of RSUs pursuant to **Section 4**, the Participant shall forfeit all right, title, and interest in and to all RSUs not yet delivered as of such Termination of Service. Any RSUs that have not yet been earned, awarded, or vested shall also be forfeited immediately.

------

**Section 4.&nbsp;&nbsp;&nbsp;&nbsp;<u>Settlement of RSUs</u>.** Delivery of Shares or other amounts under this Award Agreement and the Plan shall be subject to the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;*Delivery of Shares*. Subject to **Section 3(d)**, the Company shall deliver to the Participant one Share free and clear of any restrictions in settlement of each of the vested and unrestricted RSUs within 60 days following the end of the respective Restricted Period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;*Compliance with Applicable Laws.* Notwithstanding any other term of this Award Agreement or the Plan, the Company shall have no obligation to deliver any Shares or make any other distribution of benefits under this Award Agreement or the Plan unless such delivery or distribution complies with all applicable laws and the applicable rules of any securities exchange or similar entity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;*Certificates Not Required.* To the extent that this Award Agreement and the Plan provide for the issuance of Shares, such issuance may be effected on a non-certificated basis, to the extent not prohibited by applicable law or the applicable rules of any securities exchange or similar entity.

**Section 5.&nbsp;&nbsp;&nbsp;&nbsp;<u>Withholding</u>.** All deliveries of Shares pursuant to the Award shall be subject to withholding of all applicable taxes. The Company shall have the right to require the Participant (or if applicable, permitted assigns, heirs, and Designated Beneficiaries) to remit to the Company an amount sufficient to satisfy any tax requirements prior to the delivery date of any Shares in connection with the Award. As permitted by the Committee from time to time, such withholding obligation may be satisfied at the election of the Participant (a) through cash payment by the Participant, (b) through the surrender of Shares that the Participant already owns, or (c) through the surrender of Shares to which the Participant is otherwise entitled under the Plan; *provided*, *however*, that except as otherwise specifically provided by the Committee, such Shares under clause (c) may not be used to satisfy more than the maximum individual statutory tax rate for each applicable tax jurisdiction.

**Section 6.&nbsp;&nbsp;&nbsp;&nbsp;<u>Non-Transferability of Award</u>.** The Award, or any portion thereof, is not transferable except as designated by the Participant by will or by the laws of descent and distribution or pursuant to a domestic relations order. Except as provided in the immediately preceding sentence, the Award shall not be assigned, transferred, pledged, hypothecated, or otherwise disposed of by the Participant in any way whether by operation of law or otherwise, and shall not be subject to execution, attachment, or similar process. Any attempt at assignment, transfer, pledge, hypothecation, or other disposition of the Award contrary to the provisions hereof, or the levy of any attachment or similar process upon the Award, shall be null and void and without effect.

**Section 7.&nbsp;&nbsp;&nbsp;&nbsp;<u>Dividend Equivalents</u>.** The Participant shall be entitled to receive a payment equal in value to any dividends and distributions paid with respect to the RSUs (other than dividends and distributions that may be issued with respect to Shares by virtue of any corporate transaction, to the extent adjustment is made pursuant to Section 3.4 of the Plan) during the Restricted Period ("**Dividend Equivalents**"); *provided*, *however*, that no Dividend Equivalents shall be payable to or for the benefit of the Participant with respect to record dates for such dividends or distributions occurring before the Grant Date or on or after the date, if any, on which the Participant has forfeited the RSUs. Dividend Equivalents shall be credited at the time the respective dividends or distributions are paid and shall be accumulated, without interest, and shall be subject to the same restrictions applicable to the underlying RSUs.

**Section 8.&nbsp;&nbsp;&nbsp;&nbsp;<u>No Shareholder Rights</u>.** The Participant shall not have any rights of a Shareholder with respect to the RSUs, including but not limited to, voting rights, prior to settlement of the RSUs pursuant to **Section 4(a)** above.

------

**Section 9.&nbsp;&nbsp;&nbsp;&nbsp;<u>Heirs and Successors</u>.** This Award Agreement shall be binding upon, and inure to the benefit of, the Company and its successors and assigns, and any person acquiring all or substantially all of the Company's assets or business. If any rights of the Participant or benefits distributable to the Participant under this Award Agreement have not been settled or distributed at the time of the Participant's death, such rights shall be settled for and such benefits shall be distributed to the Designated Beneficiary in accordance with the provisions of this Award Agreement and the Plan. The "**Designated Beneficiary**" shall be the beneficiary or beneficiaries designated by the Participant in a writing filed with the Committee in such form as the Committee may require. The Participant's designation of beneficiary may be amended or revoked by the Participant in accordance with any procedures established by the Committee. If a Participant fails to designate a beneficiary, or if the Designated Beneficiary does not survive the Participant, any benefits that would have been provided to the Participant shall be provided to the legal representative of the estate of the Participant. If a Participant designates a beneficiary and the Designated Beneficiary survives the Participant but dies before the provision of the Designated Beneficiary's benefits under this Award Agreement, then any benefits that would have been provided to the Designated Beneficiary shall be provided to the legal representative of the estate of the Designated Beneficiary.

**Section 10.&nbsp;&nbsp;&nbsp;&nbsp;<u>Administration</u>.** The authority to manage and control the operation and administration of this Award Agreement and the Plan shall be vested in the Committee, and the Committee shall have all powers with respect to this Award Agreement as it has with respect to the Plan. Any interpretation of this Award Agreement or the Plan by the Committee and any decision made by the Committee with respect to this Award Agreement or the Plan shall be final and binding on all persons.

**Section 11.&nbsp;&nbsp;&nbsp;&nbsp;<u>Plan Governs</u>.** Notwithstanding any provision of this Award Agreement to the contrary, this Award Agreement shall be subject to the terms of the Plan, a copy of which may be obtained by the Participant from the Company. This Award Agreement shall be subject to all interpretations, amendments, rules, and regulations promulgated by the Committee from time to time. Notwithstanding any provision of this Award Agreement to the contrary, in the event of any discrepancy between the corporate records of the Company and this Award Agreement, the corporate records of the Company shall control.

**Section 12.&nbsp;&nbsp;&nbsp;&nbsp;<u>Not an Employment Contract</u>.** Neither the Award nor this Award Agreement shall confer on the Participant any rights with respect to continuance of employment or other service with the Company or a Subsidiary, nor shall they interfere in any way with any right the Company or a Subsidiary may otherwise have to terminate or modify the terms of the Participant's employment or other service at any time.

**Section 13.&nbsp;&nbsp;&nbsp;&nbsp;<u>Amendment</u>.** Without limitation of **Section 16** and **Section 17** below, this Award Agreement may be amended in accordance with the provisions of the Plan, and may otherwise be amended in writing by the Participant and the Company without the consent of any other person.

**Section 14.&nbsp;&nbsp;&nbsp;&nbsp;<u>Governing Law</u>.** This Award Agreement, the Plan, and all actions taken in connection herewith and therewith shall be governed by and construed in accordance with the laws of the State of Iowa, without reference to principles of conflict of laws, except as superseded by applicable federal law.

**Section 15.&nbsp;&nbsp;&nbsp;&nbsp;<u>Validity</u>.** If any provision of this Award Agreement is determined to be illegal or invalid for any reason, said illegality or invalidity shall not affect the remaining parts hereof, but this

------

Award Agreement shall be construed and enforced as if such illegal or invalid provision had never been included herein.

**Section 16.&nbsp;&nbsp;&nbsp;&nbsp;<u>Section 409A Amendment</u>.** The Award is intended to be exempt from Code Section 409A and this Award Agreement shall be administered and interpreted in accordance with such intent. The Committee reserves the right to unilaterally amend this Award Agreement without the consent of the Participant in order to maintain an exclusion from the application of, or to maintain compliance with, Code Section 409A; and the Participant hereby acknowledges and consents to such rights of the Committee.

**Section 17.&nbsp;&nbsp;&nbsp;&nbsp;<u>Clawback</u>.** The Award and any amount or benefit received under the Plan shall be subject to potential cancellation, recoupment, rescission, payback, or other action in accordance with the terms of any applicable Company or Subsidiary clawback policy (the "**Policy**") or any applicable law, as may be in effect from time to time. The Participant hereby acknowledges and consents to the Company's or a Subsidiary's application, implementation, and enforcement of (a) the Policy and any similar policy established by the Company or a Subsidiary that may apply to the Participant together with all other similarly situated participants, whether adopted prior to or following the date of this Award Agreement and (b) any provision of applicable law relating to cancellation, rescission, payback, or recoupment of compensation, and agrees that the Company or a Subsidiary may take such actions as may be necessary to effectuate the Policy, any similar policy, and applicable law, without further consideration or action.

\*&nbsp;&nbsp;&nbsp;&nbsp;\*&nbsp;&nbsp;&nbsp;&nbsp;\*&nbsp;&nbsp;&nbsp;&nbsp;\*&nbsp;&nbsp;&nbsp;&nbsp;\*

------

**IN WITNESS WHEREOF**, the Company has caused this Award Agreement to be executed in its name and on its behalf, and the Participant acknowledges understanding and acceptance of, and agrees to, the terms of this Award Agreement, all as of the Grant Date.

---

| |
|:---|
| **LINCOLN BANCORP** |
| By:  |
| Print Name: |
| Title: |
| **PARTICIPANT** |
| Print Name: |

---

## Exhibit 16.1

**Exhibit 16.1**

June 25, 2026

Securities and Exchange Commission

100 F. Street, NE

Washington, D.C. 20549

Ladies and Gentlemen:

We have read the section titled "Change in accountants" in the Form S-1 filed by Lincoln Bancorp (the "Company") and are in agreement with the statements therein concerning Forvis Mazars, LLP. We have no basis to agree or disagree with other statements of the Company contained in the section titled "Change in accountants".

---

| |
|:---|
| Yours very truly, |
| /s/ Forvis Mazars, LLP |
| Springfield, Missouri |

---

## Exhibit 21.1

**Exhibit 21.1**

**LIST OF SUBSIDIARIES**

Lincoln Bancorp, an Iowa corporation, owns, either directly or indirectly, 100% of the stock of the following subsidiaries:

---

| | |
|:---|:---|
| **Subsidiary Name** | **State of Incorporation** |
| Lincoln Savings Bank | State of Iowa |
| LSB Financial Services, Inc. | State of Iowa |
| LSB Capital Management, Inc. | State of Iowa |

---

## Exhibit 23.1

**Exhibit 23.1**

**CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM**

We consent to the use in this Registration Statement on Form S-1 of Lincoln Bancorp and Subsidiaries, of our report dated May 14, 2026, relating to the 2025 consolidated financial statements of Lincoln Bancorp and Subsidiaries included in the Prospectus contained in such Registration Statement and to the reference to us under the heading "Experts" in the Prospectus.

/s/ Wipfli LLP

Milwaukee, Wisconsin

June 25, 2026

## Exhibit 23.2

**Exhibit 23.2**

**CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM**

We consent to the use in this Registration Statement on Form S-1 of Lincoln Bancorp of our report dated May 14, 2026, except as to Note 21, which is as of June 25, 2026, with respect to the consolidated financial statements included herein. We also consent to the reference to our firm under the caption "Experts" in this Registration Statement.

/s/ Forvis Mazars, LLP

Springfield, Missouri

June 25, 2026

<br>