Document:

Purchase and Assumption Agreement

 Exhibit 10.1 
 PURCHASE AND ASSUMPTION AGREEMENT 
 BY AND BETWEEN 
 STERLING BANK 
 AND 

FIRST BANK 
 AUGUST 7, 2009 

 PURCHASE AND ASSUMPTION AGREEMENT 
 THIS PURCHASE AND ASSUMPTION AGREEMENT (this “Agreement”) entered into as of August 7, 2009, by and between STERLING BANK, a Texas
chartered banking association (“Buyer”), and FIRST BANK, a Missouri state chartered bank (“Seller”). Buyer and Seller are referred to collectively herein as the “Parties.” 
 W I T N E S S E T H 
 WHEREAS, Buyer
and Seller are each engaged in the business of banking; 
 WHEREAS, Seller desires to sell certain assets and transfer certain liabilities
with respect to Seller’s branch operations which are listed on Exhibit A and referred to herein as the Branches; 
 WHEREAS, Buyer
desires to purchase certain assets and assume certain liabilities of Seller related to the Branches; 
 WHEREAS, the Parties desire to set
forth in writing the terms and conditions under which the transaction will be consummated. 
 NOW, THEREFORE, in consideration of the
foregoing and of the representations, warranties, covenants and agreements set forth herein, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged by the Parties, the Parties hereby agree as follows:

 ARTICLE 1 
 DEFINITIONS 
 1.1 “Accountant” has the meaning set forth in Section 2.2(d) below. 
 1.2 “Acquired Assets” means: (a) the cash on hand, cash held in the vaults, and cash items at the Branches as of the Closing Date;
(b) Tangible Personal Property; (c) Owned Real Property; (d) all transferable rights and interest of Seller in and to any leased real estate at the Branches (“Leased Property”); (e) Leasehold Improvements;
(f) Acquired Contracts; (g) Loans including the collateral for the Loans and any applicable loan instruments or documentation; (h) Intellectual Property; (i) Deposits; (j) Safe Deposit Business, (k) Books and Records
relating to such items, and (l) the Fiduciary Account provided all necessary Consents to transfer are obtained; except that the term “Acquired Assets” does not include the Excluded Assets. 
 1.3 “Acquired Contracts” means: (a) all contracts set forth on Schedule 1.3; (b) all Safe Deposit Contracts; and (c) all
equipment leases for equipment located at the Branches, including related maintenance agreements. 
 1.4 “Acquisition” means the
acquisition by Buyer of the Acquired Assets and the assumption of the Assumed Liabilities pursuant to the terms of this Agreement. 
 1.5
“Affiliate” means with respect to any Person, any Person directly or indirectly controlling, controlled by, or under common control with such other Person. For purposes of this 

  

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definition, “control” (including with correlative meaning, the terms “controlled by” and “under common control with”) as used
with respect to any Person, means the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of such Person, whether through ownership of voting securities, by contract or otherwise.

 1.6 “Agreement” has the meaning set forth in the preface above. 
 1.7 “Applicable Laws” means all applicable federal, state, county and municipal laws, codes, injunctions, judgments, orders, decrees, rulings
and charges thereunder and other governmental requirements, constitutions, ordinances, statutes, rules, regulations, and administrative interpretations and pronouncements. 
 1.8 “Assumed Liabilities” means all of Seller’s obligations arising under Acquired Contracts, Deposits, Safe Deposit Business, and
Commitments to be discharged, performed, satisfied or paid after the Closing Date, which liabilities Seller will assign and Buyer will assume as of the Closing Date in accordance with the provisions of this Agreement, except that Assumed Liabilities
shall not include Excluded Liabilities. 
 1.9 “Books and Records” has the meaning set forth in Section 7.4 of this Agreement.

 1.10 “Book Value” means, with respect to any Acquired Asset and any Assumed Liability, the dollar amount thereof stated on the
accounting records of Seller. The Book Value of any item shall be determined as of the Closing Date after adjustments made by Seller for differences in accounts, suspense items, unposted debits and credits, and other similar adjustments or
corrections. Without limiting the generality of the foregoing, the Book Value of (i) an Assumed Liability shall include all accrued and unpaid interest thereon as of the Closing Date, (ii) a Loan shall reflect adjustments for earned or
unearned interest (as it relates to the “rule of 78s” or add-on-interest loans, as applicable), if any, as of the Closing Date, and adjustments for the portion of earned or unearned loan-related credit life and/or disability insurance
premiums, FAS 91 costs, if any, attributable to Seller as of the Closing Date in each case determined for financial reporting purposes, (iii) a Commitment shall be deemed to be zero, and (iv) the Tangible Personal Property shall be the
Book Value prorated to the Closing Date. The Book Value of an Assumed Contract shall be zero. The Book Value of an Acquired Asset shall not include any adjustment for any general or specific reserves on the accounting records of Seller. Seller shall
continue to depreciate the Acquired Assets in accordance with generally accepted accounting principles applied on a basis consistent with prior periods provided that Seller shall not book depreciation less often than monthly. The Book Value of the
Owned Real Property constituting the New Northside Branch shall be deemed to be $1,000,000. The Book Value for all improvements relating to the New Northside Branch shall be deemed to be zero. 
 1.11 “Branches” means Seller’s branch offices listed on Exhibit A. (Any individual location may be referred to as “Branch” if
the context so requires.) 
 1.12 “Business Day” means a day other than (i) a Saturday, Sunday, or any holiday observed by the
Federal Reserve. 
 1.13 “Buyer” has the meaning set forth in the preface above. 
  

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 1.14 “Buyer Material Adverse Effect” means, with respect to Buyer, any condition, event, change
or occurrence that, individually or collectively, is reasonably likely to have a material adverse effect upon the ability of Buyer to perform its obligations under, and to consummate the transactions contemplated by this Agreement. 
 1.15 “Closing” has the meaning set forth in Section 2.5 below. 
 1.16 “Closing Date” has the meaning set forth in Section 2.5 below. 
 1.17 “Closing Date Balance Sheet” means an unaudited balance sheet listing the assets and liabilities of the Branches as of the close of
business on the Closing Date prepared in accordance with generally accepted accounting principles applied on a basis consistent with prior periods, which shall also include any amount due to either party based upon a proration between the parties as
required by Section 2.4. 
 1.18 “Commitments” means unfunded commitments by Seller to lend funds to customers of the Branches
on the terms and conditions set forth in the applicable commitment letters or other documentation, as such commitments exist as of the Closing Date. 
 1.19 “Consent” means any approval, consent, ratification, waiver, or other authorization (including any Governmental Authorization); provided however, Consent shall not include any third party consents
necessary for Leased Property. 
 1.20 “Contract” means any agreement, contract, obligation, promise or undertaking (whether
written or oral and whether express or implied) that is legally binding. 
 1.21 “Deposits” means all deposits (as defined in 12
U.S.C. § 1813(l)), obligations and duties incidental thereto which are assigned to the Branches, including demand deposit accounts, time and savings accounts, interest checking accounts, deposits relating to debit cards / ATM cards,
certificates of deposits, individual retirement accounts, sweep accounts and other deposit accounts, including for each, all interest accrued but unpaid and both collected and uncollected funds through the Closing Date; and including the obligations
relating to the clearance of checks and drafts drawn against the deposit liabilities, in accordance with the Books and Records of the Branches as of the close of business on the Closing Date; provided however that deposits shall not
include (a) deposits constituting official checks, travelers checks, money orders, certified checks or other items in the process of clearing on the Closing Date; (b) deposits pledged as collateral for or required as a compensating balance
or commercial deposits having a relationship in respect to any Excluded Loan; (c) any deposit account with an overdraft in excess of $1,000 outstanding as of the calendar month end immediately preceding the Closing Date; (d) individual
retirement accounts with respect to which the customer does not consent to the appointment of Buyer or its designee as custodian or does not consent to Buyer’s custodial agreement; (e) Non-Core Deposits excluded by Buyer pursuant to the
provisions of Section 6.17; (f) Late Non-Core Deposits, (g) deposits that would be presumed to be abandoned under the Texas Property Code, (h) brokered deposits, and (i) deposits of Branches excluded under Section 6.15
or 6.19 due to the inability to satisfy applicable regulatory requirements with respect to any such Branch prior to the Closing Date. 
 1.22
“Disagreement” has the meaning set forth in Section 2.2(c) below. 
  

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 1.23 “Disclosure Schedule” has the meaning set forth in the introductory paragraph of Article
4. 
 1.24 “Effective Time” has the meaning set forth in Section 2.5(b). 
 1.25 “Encumbrance” means any charge, claim, community property interest, condition, encumbrance, equitable interest, lien, option, pledge,
mortgage, security interest, right of first refusal, or restriction of any kind, including any restriction on use, voting, transfer, receipt of income, or exercise of any other attribute of ownership. 
 1.26 “Environmental Law” means any federal, state or local law, statute, ordinance, rule, regulation, code, Consent, Order, or agreement with
any Governmental Body in each case as amended from time to time relating to (1) the protection, preservation or restoration of the indoor or outdoor environment (including, without limitation, air, water vapor, surface water, groundwater,
drinking water supply, surface soil, subsurface soil, plant and animal life or any other natural resource), or (2) the use, storage, remediation, removal, inspection, monitoring, recycling, treatment, generation, transportation, processing,
handling, labeling, production, release or disposal of, or exposure to, or injury or damage by, any Hazardous Materials, including, without limitation, the Comprehensive Environmental Response, Compensation, and Liability Act of 1980
(“CERCLA”), as amended; the Hazardous Materials Transportation Act, as amended; the Resource Conservation and Recovery Act of 1976, as amended; the Federal Water Pollution Control Act, as amended; the Toxic Substances Control Act, as
amended; the Clean Air Act, as amended; and the Safe Drinking Water Act, as amended. 
 1.27 “Estimated Payment Amount” has the
meaning set forth in Section 2.2(b) of this Agreement. 
 1.28 “Excluded Assets” means: (a) any assets of the Branches
listed on Schedule 1.28(a) which are not being sold, transferred, or assigned to Buyer; (b) Seller’s rights in and to the name “First Bank”; (c) Seller’s rights to and interest in software installed on computers
and computer hardware located at the Branches; (d) Seller’s right to recover assets charged off by Seller prior to the Closing; (e) all of Seller’s corporate logos, trademarks and trade names, signs, paper stock, forms and other
supplies containing such names and logos; (f) records of Seller that are not required to be physically transferred to Buyer under this Agreement; (g) any other proprietary assets listed on Schedule 1.28(g); (h) “other real
estate owned”; (i) nonperforming loans; (j) Seller’s credit card portfolio; (k) foreclosed or repossessed personal property; (l) Excluded Loans, (m) any assets of Branches excluded under Section 6.15 or 6.19
due to the inability to satisfy applicable regulatory requirements with respect to any such Branch prior to the Closing Date; (n) the Real Estate Interests constituting the Old Northside Branch; and (o) any Fiduciary Relationship (other
than the Fiduciary Account so long as such account is transferred to Buyer). 
 1.29 “Excluded Liabilities” means Liabilities or
obligations with respect to any (a) Proceedings commenced or made known to Seller prior to the Closing Date and related to the Branches; (b) matters listed on Schedule 1.29; (c) employee benefit plans, agreements or
arrangements of Seller, (d) Proceedings commenced or made known to Seller with respect to matters described in Section 4.9 herein and arising in whole or in part with respect to operations, conditions, events, or activities at the Branches
prior to the Closing Date, regardless of when any 

  

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claim, demand, Proceeding is made or commenced; (e) any liabilities of Seller relating to Branches excluded under Section 6.15 or 6.19 due to the
inability to satisfy applicable regulatory requirements with respect to any such Branch prior to the Closing Date, (f) Liabilities or obligations of Seller with respect to any Fiduciary Relationship (other than the Fiduciary Account if such
Fiduciary Account is transferred to Buyer), (g) Liabilities or obligations relating to the Fiduciary Account arising in whole or in part with respect to operations, conditions, events, or activities prior to the Closing Date, regardless of when
any claim, demand, Proceeding is made or commenced, (h) Liabilities or obligations relating to the Fiduciary Account if such Fiduciary Account is not transferred to Buyer, (i) Liabilities or obligations of Seller relating to the Real
Estate Interests constituting the Old Northside Branch; or (j) Liabilities or obligations of Seller of any kind, character, or description not specifically identified in this Agreement or in the exhibits hereto. 
 1.30 “Excluded Loan” means any loan or Commitment not constituting a Loan. 
 1.31 “Fair Market Value” means the fair market value as determined by an appraiser that is mutually agreeable to Seller and Buyer and that is
independent and has no fewer than seven (7) years experience appraising similar property in the county in which the parcel of Owned Real Property is located. 
 1.32 “FDIC” means the Federal Deposit Insurance Corporation. 
 1.33 “Federal Funds Rate”
means the federal funds target rate as quoted by the Federal Reserve Bank of Dallas on the relevant Business Day. 
 1.34 “Fiduciary
Accounts” means the Fiduciary Relationship listed on Schedule 1.34. 
 1.35 “Fiduciary Relationships” means
(a) any and all common law or other trusts between individual, corporate or other entities with Seller as a trustee or co-trustee, including, without limitation, pension, compensation, testamentary, and charitable trusts and indentures,
(b) any and all decedents’ estates where Seller is serving as a co- or sole executor, personal representative or administrator, administrator de bonis non, administrator de bonis non with will annexed, or in any similar fiduciary capacity,
(c) any and all guardianships, conservatorships or similar positions where Seller is serving or has served as a co- or sole guardian or conservator, or any similar fiduciary capacity, (d) any and all agency and/or custodial accounts and/or
similar arrangements under which Seller is serving or has served as an agent or custodian for the owner or other party establishing the account with or without investment authority and (e) any and all escrow arrangements under which Seller
holds or held assets for any party or parties on stated terms and conditions. 
 1.36 “Governmental Authorization” means any
approval, consent, license, permit, registration, certification, exemption, waiver or other authorization issued, granted, given or otherwise made available by or under the authority of any Governmental Body or pursuant to any Applicable Law.

 1.37 “Governmental Body” means any (a) federal, state, local, municipal, foreign or other government; (b) governmental
or quasi-governmental authority of any nature (including any governmental agency, branch, department, official or entity and any court or other tribunal); or (c) body exercising, or entitled to exercise, any administrative, executive, judicial,
legislative, police, regulatory, or taxing authority. 
  

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 1.38 “Ground Leased Premises” means the Leased Property listed on Schedule 1.38.

 1.39 “Hazardous Materials” means (i) any petroleum or petroleum products, natural gas, or natural gas products, radioactive
materials, asbestos, urea formaldehyde foam insulation, transformers or other equipment that contains dielectric fluid containing levels of polychlorinated biphenyls (PCBs) and radon gas; (ii) any chemical, material, waste or substance defined,
listed, classified or described as “hazardous substance,” “hazardous waste,” “regulated substance,” “solid waste,” “hazardous material,” “extremely hazardous waste,” “restricted
hazardous waste,” “toxic substance,” “toxic pollutant,” “contaminant,” or “pollutant” under any Environmental Laws; and (iii) any material, waste or substance which is in any way regulated as
hazardous or toxic or actually or potentially causing damage or injury to human health or the environment by any Governmental Body, including mixtures thereof with other materials, and including any regulated building materials containing asbestos
or lead. 
 1.40 “Indemnifying Party” has the meaning set forth in Section 11.5(a) below. 
 1.41 “Indemnified Party” has the meaning set forth in Section 11.5(a) below. 
 1.42 “Intellectual Property” means all confidential business information relating solely to the Branches (and specifically excludes any trade
secrets, confidential information or registered or common law trade names or marks of Seller). 
 1.43 [INTENTIONALLY OMITTED] 
 1.44 “Knowledge” of a particular fact or other matter means information actually known to a Parties’ officers or directors or such other
information that a prudent person could be expected to discover after due inquiry appropriate under the circumstances. 
 1.45 “Late
Non-Core Deposits” shall mean any Non-Core Deposits originated by Seller after the date that Seller’s list of Non-Core Deposits is originated and supplied to Buyer pursuant to Section 6.17 below. 
 1.46 “Leased Property” means all transferable rights and interest of Seller in and to all real estate and improvements at the Branches.

 1.47 “Leasehold Improvements” means all improvements by Seller to the Branches. 
 1.48 “Liability” means any liability (INCLUDING WITHOUT LIMITATION, ANY STRICT LIABILITY), whether known or unknown, asserted or unasserted,
absolute or contingent, accrued or unaccrued, liquidated or unliquidated, and due or to become due, of any nature whatsoever, including any liability for Taxes. 
 1.49 “Loans” mean (a) the loans and participation interests in the loans (including servicing rights where applicable, accrued but unpaid interest and any accrued but unpaid ancillary income due under
the term of the note) and Commitments in the amounts set forth on the Books and Records of the Branches as of the close of business on the Closing Date that are identified by 

  

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Buyer to Seller on Schedule 1.49, as may be supplemented pursuant to Section 6.18 of this Agreement and (b) overdrafts of less than $1,000
in deposit accounts of the Branches. “Loans” does not include any loan or participation interest in loans or Commitments that are excluded by Buyer or repurchased by Seller pursuant to the provisions of Section 11.7 of this Agreement.

 1.50 “Loss” means any liability (INCLUDING WITHOUT LIMITATION, ANY STRICT LIABILITY), loss, cost, damage, penalty, fine,
interest, obligation or expense of any kind whatsoever (including, without limitation, reasonable attorneys’, accountants’, consultants’ or experts’ fees and disbursements) actually incurred. 
 1.51 “Loss Threshold” shall have the meaning set forth in Section 11.4 below. 
 1.52 “New Loan” has the meaning set forth in Section 6.18 below. 
 1.53 “New Northside Branch” shall mean Seller’s branch operations to be located at 2402 N. Main Street, Houston, Texas. 
 1.54 “Non-Core Deposit” shall mean certificates of deposit or money market deposit accounts originated by Seller after the date of this
Agreement, that had a rate of interest equal to or greater than 2.25% on the date of origination. 
 1.55 “Non-disclosure
Agreement” means letter agreement dated June 26, 2009 between Hovde Financial, Inc. and Sterling Bancshares, Inc. 
 1.56
[INTENTIONALLY OMITTED] 
 1.57 “Old Northside Branch” shall mean Seller’s branch operations located at 2010 N. Main, Houston,
Texas. 
 1.58 “Order” means any cease or desist order, written agreement, memorandum of understanding, decision, injunction,
judgment, order, ruling, subpoena or verdict entered, issued, made or rendered by any court, administrative agency or other Governmental Body or by any arbitrator. 
 1.59 “Ordinary Course of Business” shall mean an action taken by a Person if: 
 (i)
such action is consistent with the past practices of such Person and is taken in the ordinary course of the normal day-to-day operations of such Person; 
 (ii) if the Person is a corporation, bank, partnership, limited liability company or any other entity of any nature, such action is not required to be authorized by the board of directors of such entity (or by any
Person or group of Persons exercising similar authority) and is not required to be authorized by the shareholders or other equity owners (if any) of such entity; and 
 (iii) such action is similar in nature and magnitude to actions customarily taken in the ordinary course of the normal day-to-day
operations of other Persons that are in the same line of business of and of similar size to such Person. 
  

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 1.60 “Owned Real Property” has the meaning set forth in Section 4.11 below. 
 1.61 “Parties” has the meaning set forth in the preface above. 
 1.62 “Payment Amount” has the meaning set forth in Section 2.2 below. 
 1.63
“Person” means an individual, a partnership, a corporation, a limited liability company, an association, a joint stock company, a joint venture, an unincorporated organization, or a Governmental Body. 
 1.64 “Phase I Environmental Assessments” means an environmental assessment that is consistent with ASTM 1527.05 and that may include an
assessment of the presence, amount, physical condition and location of asbestos-containing materials and lead-based paint. 
 1.65
“Phase II Environmental Assessments” means an intensified environmental assessment that further defines previously identified conditions, circumstances or risks and that may include physical sampling and analysis of paint, building
materials or any environmental medium (including air, indoor air, surface water, groundwater, soil and subsurface strata). 
 1.66
“Potential Employee” has the meaning set forth in Section 6.7 below. 
 1.67 “Pre-Closing Balance
Sheet” means an unaudited balance sheet listing the assets and liabilities of the Branches (as of the last day of the immediately preceding month end prior to the Closing Date) prepared in accordance with generally accepted accounting
principles applied on a basis consistent with prior periods to be prepared by Seller and delivered to Buyer on or before the fifth (5th) Business Day prior to the Closing Date. 
 1.68 “Proceeding” means any action, arbitration, audit, proceeding, oversight, investigation, litigation, or suit (whether civil, criminal, administrative, investigative, or informal) commenced brought,
conducted, or heard by or before, or otherwise involving, any Governmental Body or arbitrator, involving the Branches, the Acquired Assets or the Assumed Liabilities. 
 1.69 “Real Estate Interests” means the Owned Real Property and the Leased Property constituting Branch premises. 
 1.70 “Safe Deposit Business” means the maintenance of all necessary facilities for the use of safe deposit boxes by the renters thereof, subject to the provisions of the applicable leases or other agreements
relating to such boxes, and the safekeeping of items maintained by the Branches for the benefit of its customers, pursuant to applicable safekeeping agreements, memoranda or receipts. 
 1.71 “Safe Deposit Contracts” means all customer agreements, leases, and maintenance agreements related to the Safe Deposit Business.

 1.72 “Seller Material Adverse Effect” means, with respect to Seller, any condition, event, change or occurrence that,
individually or collectively, is reasonably likely to have a material adverse effect upon (i) the condition, financial or otherwise, properties, business, assets, deposits, earnings or results of operations or cash flows of the Branches, the
Acquired Assets or the Assumed Liabilities or (ii) the ability of Seller to perform its obligations under, and to consummate the transactions contemplated by this Agreement. 
  

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 1.73 “SNDA” has the meaning set forth in Section 6.19 below. 
 1.74 “Special Assessment” means that portion of any special assessment attributable to the Acquired Assets or the Assumed Liabilities imposed
by the FDIC on insured institutions to the extent it is effective with respect to the period prior to and including the Closing Date, including any emergency special assessment imposed on deposits and/or assets as of December 31, 2009 and
payable on or after December 31, 2009. 
 1.75 “Tangible Personal Property” means all of the furniture, fixtures, equipment,
and other items of tangible personal property owned by Seller and located in, on or affixed to the premises of the Branches, except for those items which are listed as Excluded Assets. 
 1.76 “Tax” has the meaning set forth in Section 4.4(c). 
 1.77 “Tax Return” has the meaning set forth in Section 4.4(c). 
 1.78 “Third Party
Claim” has the meaning set forth in Section 11.5(a). 
 1.79 “Transferred Records” has the meaning set forth in
Section 7.5(b) below. 
 ARTICLE 2 
 PURCHASE AND SALE 
 2.1 The Acquisition. As of the Effective Time, upon the terms and
conditions set forth herein, Seller will sell, assign, transfer, convey and deliver to Buyer, and Buyer shall purchase from Seller all of the Acquired Assets (including with respect to Loans the collateral related thereto) free and clear of all
Encumbrances. Also, Seller will sell, transfer and assign to Buyer all of Seller’s right, title and interest in (including collateral relating thereto) the Assumed Liabilities and Buyer shall assume and become responsible for all of the
obligations arising under Assumed Liabilities. 
 2.2 Consideration for the Acquisition. 
 (a) In consideration for the Acquisition, Seller shall make available and transfer to Buyer, or Buyer shall make available and transfer to
Seller, the Payment Amount in accordance with this Section 2.2. The “Payment Amount” means an amount equal to the sum of the aggregate balance of all the Deposits (as set forth on the Closing Date Balance Sheet) including interest
posted or accrued with respect to the Deposits as of the close of business on the Closing Date, less an amount equal to the sum of: 
 (i) A premium for the Deposits and franchise value relating to the Branches equal to 6.0% of the average Deposit balances of the Branches for the thirty calendar days immediately preceding and including the Closing Date; provided,
however, that Non-Core Deposits shall be excluded from the Deposits for purposes of the calculation of average Deposit balances. 
  

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 (ii) The amount held as cash and cash items of the Branches as reflected on the Closing
Date Balance Sheet; 
 (iii) The Book Value of all Loans, including accrued interest as reflected on the Closing Date Balance
Sheet; 
 (iv) The Book Value of Owned Real Property; 
 (v) The net Book Value for Tangible Personal Property and Leasehold Improvements as reflected on the Closing Date Balance Sheet; and

 (vi) Buyer’s share of the pro rata adjustment of items required pursuant to Section 2.4. 
 (b) On the Closing Date, (i) Seller shall deliver to Buyer an amount estimated to be the Payment Amount, calculated as set forth
above off of the balances reflected on the Pre-Closing Balance Sheet (the “Estimated Payment Amount”) if the Estimated Payment Amount is a positive number, and (ii) Buyer shall deliver to Seller the absolute value of the Estimated
Payment Amount if the Estimated Payment Amount is a negative number. 
 (c) Within ten (10) Business Days following the
Closing Date, Seller shall prepare and deliver to Buyer the Closing Date Balance Sheet. Within ten (10) Business Days after receipt of delivery of the Closing Date Balance Sheet, Buyer may dispute all or any portion of the Closing Date Balance
Sheet by giving written notice (a “Notice of Disagreement”) to Seller setting forth in reasonable detail the basis for any such dispute (a “Disagreement”). Seller shall provide Buyer and its designees with full reasonable access,
during normal business hours, to relevant books, records, personnel and representatives of Seller and such other information as Buyer may reasonably request in connection with its review of the Closing Date Balance Sheet and with respect to the
resolution of any Disagreement. The Parties shall promptly commence good faith negotiations with a view to resolving all such Disagreements. Subject to Sections 2.5(e) and 2.5(f), if Buyer does not give a Notice of Disagreement within the ten
(10) Business Day period set forth above, Buyer shall be deemed to have irrevocably accepted such Closing Date Balance Sheet in the form delivered to Buyer by Seller. Seller shall be deemed to have irrevocably accepted the Closing Date Balance
Sheet as modified by and disclosed in Buyer’s Notice of Disagreement if Seller does not dispute all or any portion of such Notice of Disagreement by giving its written response to Buyer within ten (10) Business Days following the delivery
of such Notice of Disagreement setting forth in reasonable detail the basis for its dispute. 
 (d) In the event that a
dispute arises as to the appropriate amounts to be paid to either party pursuant to the Closing Date Balance Sheet discussed in subsection (c), each party shall pay to the other all amounts other than those as to which a dispute exists. The parties
shall refer the disputed amounts to an independent firm of certified public accountants of national standing (an “Accountant”) reasonably acceptable to Buyer and Seller, and Buyer and Seller agree to be bound by the determination of such
firm with respect to such disputed matters. Buyer and Seller shall agree upon an Accountant within fourteen (14) calendar days after the date on which either Buyer or Seller notifies the other 

  

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in writing that the referral of a disputed matter within the scope of this Section 2.2(d) is necessary. If Buyer and Seller shall fail to agree on an
Accountant within such fourteen (14) day period, then Buyer and Seller shall each choose an accountant who will mutually select a third qualifying accountant who shall be the Accountant for purposes of this Section 2.2(d). Buyer and Seller
agree to share equally the fees and charges of the Accountant appointed hereunder for its services in resolving disputes within the scope of this Section 2.2(d). 
 (e) The provisions of Section 2.2(d) are not intended to and shall not be interpreted to require that the Parties refer to an
Accountant (a) any dispute arising out of a breach by one of the Parties of its obligations under this Agreement, (b) any dispute the resolution of which requires a construction or interpretation of this Agreement other than this
Section 2.2 and the definitions related hereto, or (c) any other dispute other than (in the case of this clause (e)) a dispute related to the mathematical calculation of the Payment Amount or the accounting treatment of any asset or
liability, or item of income or expense, that affects the calculation of the Payment Amount, or both. The Parties reserve all rights and remedies, including at law or in equity, to resolve disputes other than those within the scope of
Section 2.2(d). 
 (f) Any disputed amounts retained by a Party that are later found to be due to the other Party shall
be paid to such other party promptly upon resolution with interest thereon from the Closing Date to the date paid at the applicable Federal Funds Rate. 
 2.3 Allocation. Buyer and Seller agree to allocate the purchase price to such Acquired Assets in a manner consistent with the allocation required under Section 1060 of the Internal Revenue Code
1986, as amended, and to file Internal Revenue Form 8594 consistent with such agreed allocation. 
 2.4 Pro Rata Adjustment and
Reimbursement. 
 (a) Unless otherwise provided herein, it is the intention of the Parties that Seller will operate
the Branches for its own account until the close of business on the Closing Date and that Buyer shall operate the Branches, hold the Acquired Assets and assume the Assumed Liabilities for its own account after the close of business on the Closing
Date. Thus, except as otherwise specifically provided herein, items of proration and other adjustments shall be prorated as of close of business of the Branches on the Closing Date and settled between Seller and Buyer on the Closing Date whether or
not such adjustment would normally be made as of such time. Items of proration and adjustment will be handled at Closing as an adjustment to the amount of funds to be delivered by Seller to Buyer, or Buyer to Seller, as appropriate, unless otherwise
agreed. 
 (b) For purposes of this Agreement, items of proration and other adjustments shall include, without limitation:
(i) sales, transfer, excise and use taxes and personal and real property taxes and assessments (including real property sales, transfer and excise taxes); (ii) FDIC deposit insurance assessments (including any Special Assessments);
(iii) safe deposit rental payments; and (iv) other prepaid expenses and items and accrued and unpaid liabilities, if any, as of the close of business on the Closing Date. To the extent that the amount of the foregoing items is not known on
the Closing Date, such proration shall 

  

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be based on the amount of such items for the prior month or year, as appropriate; provided, however, the Parties shall apportion all real property taxes as
provided in paragraph (c) below and Special Assessments as provided in paragraph (d) below. 
 (c) Buyer and Seller
shall apportion pro rata all real property taxes paid or payable in connection with the Owned Real Property. Such apportionment shall be made on a per diem basis as of the Closing Date and shall be based upon the fiscal year for which the same are
assessed. In the event that the applicable tax bill, or other information reasonably necessary for computing any such apportionment is not available on the Closing Date, the apportionment shall be made at Closing on the basis of the prior
period’s real estate taxes. Within thirty (30) days after receipt by the Parties of the applicable tax bill or other information reasonably necessary for computing such apportionment, Buyer and Seller shall apportion the actual taxes and,
if either Party paid more than its proper share thereof at Closing, the other party shall within seven (7) Business Days after written request therefore reimburse such party for the amount so expended. If, at Closing, the Owned Real Property is
encumbered by an assessment that is a charge or lien against the Owned Real Property arising on or before the Closing Date, and such assessment is payable in installments, then all unpaid installments of such assessments which are due and payable
after the Closing shall be paid and discharged by Buyer at or after Closing. Seller shall be responsible for payment at Closing of all accrued but unpaid installments of such assessments which are due and payable for the period prior to the Closing
Date. 
 (d) Buyer and Seller shall apportion pro rata any Special Assessment payable in connection with the Branches. Such
apportionment shall be made on a per diem basis as of the Closing Date and shall be based upon the fourth quarter of 2009 even though such Special Assessment may not be due and payable until 2010. In the event that the applicable Special Assessment,
or other information reasonably necessary for computing any such apportionment is not available on the Closing Date, the apportionment shall be estimated at Closing on the basis of the FDIC’s May 29, 2009 special assessment payable as of
June 30, 2009. 
 (e) Notwithstanding anything to the contrary contained in the foregoing provisions of this
Section 2.4 or otherwise contained in this Agreement, all excise, sales, use, transfer and similar Taxes that are payable or that arise as a result of the consummation of the purchase and sale contemplated by this Agreement shall be borne by
Seller whether such Taxes are imposed on Seller or Buyer. 
 2.5 Closing. 
 (a) The Closing shall occur by facsimile with deliveries of Closing documents by Federal Express, or in person at a mutually convenient
location, or by such other method as shall be mutually agreeable to the parties. Any executed Closing documents sent by a party or its counsel to the other party or its counsel prior to Closing shall be held in escrow by such other party or its
counsel until such executed documents are authorized to be released by a senior officer of the sending party or by the sending party counsel. The Closing shall occur on such date on which the parties mutually agree (the “Closing Date”).

  

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 (b) The Effective Time shall be at a mutually agreeable time after the close of business
for the Branches on the Closing Date. 
 (c) Promptly after the Closing Date Balance Sheet has been finally determined in
accordance with Section 2.2(c), but in no event later than five (5) Business Days following such final determination (the “Supplemental Closing Date”), the parties hereto shall hold a supplemental closing (the “Supplemental
Closing”), either by telephone, or in person at a mutually convenient location. On the Supplemental Closing Date, if the Payment Amount is less than the Estimated Payment Amount, Buyer shall refund to Seller cash having an aggregate value equal
to the difference between the Estimated Payment Amount and the Payment Amount by wire transfer or other immediately available funds. On the Supplemental Closing Date, if the Payment Amount is more than the Estimated Payment Amount, Seller shall
deliver to Buyer, by wire transfer or other immediately available funds, an amount equal to the difference between the Payment Amount and the Estimated Payment Amount. 
 (d) The post-closing settlement payment shall not bear interest. 
 (e) In the event any bookkeeping omissions or errors are discovered in preparing the Closing Date Balance Sheet for the Branches or in
completing the transfer and assumptions contemplated hereby, the parties agree to correct such errors and omissions, it being understood that no adjustments will be made that are inconsistent with the judgments, methods, policies, or accounting
principles utilized by Seller in preparing and maintaining the accounting records of the Branches. 
 (f) In the event that
Buyer or Seller discovers any errors or omissions as contemplated by subsection 2.5(e) above or any error with respect to the payments made under subsection 2.5(c) above after the Supplemental Closing, Buyer and Seller agree to promptly correct any
such error or omission, make any payments and effect any transfers or assumptions as may be necessary to reflect any such correction; provided, that interest shall not be paid with respect to any such payments. 
 ARTICLE 3 
 REPRESENTATIONS AND
WARRANTIES OF SELLER 
 3.1 Organization, Qualification, and Corporate Power. Seller is a Missouri state chartered bank
duly organized and validly existing under the laws of Missouri, with full corporate power and authority to conduct its business as now being conducted and to own or use the properties and assets that it purports to own or use. 
 3.2 Authorization of Transaction. Seller has the full corporate power and authority to execute and deliver this Agreement. Subject to
approval by any necessary federal banking regulatory authority Seller has the corporate power and authority to perform Seller’s obligations hereunder, and to consummate the Acquisition. This Agreement constitutes the valid and legally binding
obligation of Seller, enforceable in accordance with its terms and conditions, subject to bankruptcy, insolvency, reorganization, moratorium, receivership, conservatorship and similar laws relating to the rights and remedies of creditors, as well as
to general principles of equity. Except for any applications required by regulatory authorities in connection with the Acquisition, Seller is not required to give any notice to, make any filing with, or obtain any authorization, or Consent of any
third party in order to consummate the Acquisition. 
  

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 3.3 Noncontravention. Subject to the required Consents set forth in Section 3.2 and
except for matters which would not have a Seller Material Adverse Effect, neither the execution and the delivery of this Agreement by Seller, nor the consummation of the Acquisition by Seller will, directly or indirectly: 
 (a) Contravene, conflict with, or result in a violation of (i) any provision of the articles of incorporation or bylaws of Seller or
(ii) any resolution adopted by the board of directors of Seller; 
 (b) Contravene, conflict with, or result in a
violation of, or give any Governmental Body or other Person the right to challenge the Acquisition or to exercise any remedy or obtain any relief under, any Applicable Law or any Order to which Seller, or any of the assets owned or used by Seller,
may be subject; 
 (c) Contravene, conflict with, or result in a violation of the terms or requirements of, or give any
Governmental Body the right to revoke, withdraw, suspend, cancel, terminate or modify, any Governmental Authorization that is held by Seller or that otherwise relates to the Branches, the Acquired Assets or the Assumed Liabilities; or 
 (d) Contravene, conflict with, or result in a violation or breach of any provision of, or give any Person the right to declare a default
or exercise any remedy under, or to accelerate the maturity or performance of, or to cancel, terminate or modify, any Acquired Contract relating to the Branches to which Seller is a party. 
 3.4 Brokers’ Fees. With the exception of Hovde Financial, Inc., Seller has no Liability or obligation to pay any fees or commissions
to any broker, finder, or agent with respect to the Acquisition. 
 ARTICLE 4 
 REPRESENTATIONS AND WARRANTIES CONCERNING THE BRANCHES 
 Seller represents and
warrants to Buyer that the statements contained in this Article 4 are correct and complete as of the date of this Agreement and will be correct and complete as of the Closing Date (as though made then and as though the Closing Date were substituted
for the date of this Agreement throughout this Article 4, except for statements made as of a specific date), except as expressly set forth in the disclosure schedule attached hereto (the “Disclosure Schedule”). The Disclosure Schedule will
be arranged in paragraphs corresponding to the numbered and lettered paragraphs contained in this Article 4. 
 4.1 Tangible Personal
Property. Seller has good and marketable title to all of the Tangible Personal Property, free and clear of all Encumbrances, except those items under lease, which have been previously disclosed to Buyer. All Tangible Personal Property used
by the Branches is in good condition, reasonable wear and tear excepted, and is usable in the Ordinary Course of Business. Any Tangible Personal Property held under lease by Seller is held by Seller under a valid and enforceable lease with such
exceptions as are not material and do not interfere in any material respect with the use made and proposed to be made of such property by Seller. 
  

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 4.2 Deposits. Seller has provided to Buyer a true and accurate data file of all deposits
(including IRAs), and related information, which are assigned to the Branches prepared as of a date within 10 days prior to the date of the Agreement, which data shall be updated at and as of a date not earlier than thirty (30) days prior to
the Closing Date to list separately Deposits to be assumed under this Agreement and deposits that are not being assumed under this Agreement and which data shall be further updated on the Supplemental Closing Date, and, in each case as updated,
shall be true and accurate as of such date. The Deposits are insured by the FDIC to applicable legal limits. The Deposits were solicited and currently exist in material compliance with all applicable requirements of federal laws and regulations
promulgated thereunder and to the extent, if any, that their applicability to Seller is not preempted by federal laws and regulations, state and local laws and regulations promulgated thereunder (for purposes of this clause, a Deposit would not be
in material compliance if the noncompliance subjects the depository institution to any penalty or liability other than the underlying liability to pay the Deposit). 
 4.3 Undisclosed Liabilities. The Branches have no Liabilities except for (a) Liabilities reflected or reserved against in the Books previously disclosed to Buyer (b) Liabilities which have
arisen in the Ordinary Course of Business and (c) Commitments made in the Ordinary Course of Business. 
 4.4 Tax Matters.

 (a) With respect to all interest bearing accounts assigned to Buyer, the records of Seller transferred to Buyer contain or
will contain all information and documents (including without limitation properly completed Forms W 9) necessary to comply with all information reporting and Tax withholding requirements under federal and state laws, rules and regulations, and such
records identify with specificity all accounts subject to backup withholding under the Internal Revenue Code. 
 (b) All Tax
Returns required to be filed on or before the Closing Date by Seller or its Affiliates with respect to any Taxes payable in respect of the Acquired Assets or Assumed Liabilities or related to the Branches have been or will be timely filed with the
appropriate governmental agencies in all jurisdictions in which such Tax Returns are required to be filed and any inaccuracy in such Tax Returns will not have a material effect on the Acquired Assets or Assumed Liabilities. All Taxes owed by Seller
or its Affiliates with respect to the Acquired Assets or Assumed Liabilities or related to the Branches have been or will be paid. There are no claims, assessments, levies, administrative proceedings or lawsuits pending, or to the Knowledge of
Seller, threatened by any taxing authority with respect to the Acquired Assets or Assumed Liabilities or related to the Branches; and no audit or investigation of any Tax Return of Seller or its Affiliates with respect to the Acquired Assets or
Assumed Liabilities or related to the Branches is currently underway, or to the Knowledge of Seller, threatened. 
 (c) As
used in this Agreement, the term “Taxes” shall mean all taxes, however denominated, including any interest, penalties or other additions to tax that may become payable in respect thereof, imposed by any federal, territorial, state, local
or foreign 

  

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government or any agency or political subdivision of any such government, which taxes shall include, without limiting the generality of the foregoing, all
income or profits taxes (including, but not limited to, federal income taxes and state income taxes), real property gains taxes, payroll and employee withholding taxes, unemployment insurance taxes, social security taxes, sales and use taxes, ad
valorem taxes, excise taxes, franchise taxes, gross receipts taxes, business license taxes, occupation taxes, real and personal property taxes, stamp taxes, environmental taxes, transfer taxes, workers’ compensation, and other governmental
charges, and other obligations of the same or of a similar nature to any of the foregoing, which the Seller or its subsidiaries or Affiliates is required to pay, withhold or collect. As used in this Agreement, the term “Tax Returns” shall
mean all reports, estimates, declarations of estimated tax, information statements and returns relating to, or required to be filed in connection with, any Taxes, including information returns or reports with respect to backup withholding and other
payments to third parties. 
 4.5 Employee Benefits. There are no liens or other claims which affect or could affect the
Acquired Assets of any nature, whether at law or in equity, asserted or unasserted, perfected or unperfected, arising out of or relating to any employee, officer, or director of Seller, or the operation, sponsorship or participation of any such
persons or by Seller in any employee benefit plan, program, procedure or other employee benefit practice, whether or not subject to the Employee Retirement Insurance Security Act of 1974 (ERISA). There are no liabilities, breaches, violations or
defaults under any “Employee Welfare Benefit Plan” or “Employee Pension Benefit Plan” (as such terms are defined in Section 3(1) and Section 3(2) of ERISA, respectively) or any other arrangement, plan, or program or
contract sponsored, maintained or contributed to by Seller or any of its Affiliates that would subject the Acquired Assets, Buyer, its employee benefit plans, or any fiduciaries thereof to any Tax, penalties or other liabilities. Seller will retain
all liabilities and assume all obligations with regard to all Employee Pension Benefit Plans, Employee Welfare Benefit Plans, deferred compensation plans, early retirement plans, bonus or incentive programs, severance pay plans or programs, or any
similar plans, programs or obligations sponsored by the Seller or its Affiliates. 
 4.6 Compliance with Applicable Laws. The
Branches are in compliance with Applicable Laws in all material respects, including without limitation all applicable Environmental Laws. No event has occurred or circumstance exists that constitutes a material violation by the Seller in the
operation of the Branches, or a failure on the part of the Seller with respect to the Branches to comply with, any Applicable Law in any material respect, including without limitation any Environmental Law. Except for normal examinations conducted
in the ordinary course of Seller’s banking business, no Governmental Body has initiated any formal proceeding or investigation into the business or operations of the Seller or the conditions or operations at the Branches and no Governmental
Body has initiated any regulatory proceeding or investigations into the business or operations of the Branches. There is no unresolved violation, criticism or exception by any Governmental Body with respect to any report or statement relating to any
examinations of the Seller relating to the Branches, the Acquired Assets or the Assumed Liabilities. 
 4.7 Legal Proceedings;
Orders. 
 (a) There is no pending Proceeding that has been commenced by or against Seller that relates to or arises
from the business conducted by the Branches. To the 

  

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Knowledge of Seller, (i) no such Proceeding has been threatened and (ii) no event has occurred or circumstance exists that may give rise to or
serve as a basis for the commencement of any such Proceeding. 
 (b) There is no Order to which Seller, or any of the assets
owned or used by Seller, is subject that would have a Seller Material Adverse Effect. Seller is not subject to any Order that relates to the business of, or any of the assets owned or used by, the Branches. 
 4.8 Employees. No employee of the Branches is a party to, or is otherwise bound by, any employment contract, agreement or arrangement,
including any confidentiality, noncompetition, or proprietary rights agreement, between such employee and Seller or to Seller’s Knowledge, between any such employee and any third party, that in any way adversely affects or will affect
(i) the performance of his or her duties as an employee of any Branch, or (ii) the ability of the Branches to conduct their business. No employee at the Branches is represented, for purposes of collective bargaining, by a labor
organization of any type. Seller is unaware of any efforts during the past three years to unionize or organize any employees at the Branches. In relation to the Branches, no causes of action, claims, charges or administrative investigations for
wrongful discharge, violation of employment contract or employment claims based upon any state or federal law, statute, public policy, order or regulation is pending or, to Seller’s Knowledge, threatened against Seller or its Affiliates. In
relation to the Branches, Seller and its Affiliates have complied in all material respects with all laws relating to the employment of labor, including provisions relating to wages, hours, collective bargaining and the payment of social security or
other taxes, and worker’s compensation or other insurance premiums. Buyer will not incur any liability under any severance agreement, deferred compensation agreement, employment agreement, or similar agreement or plan solely as a result of the
transaction contemplated by this Agreement. Seller agrees that Buyer will not be bound to the terms of any employment, management, consulting, reimbursement, retirement, early retirement or similar agreement, whether active on the Closing Date or in
discussion or negotiation, with any Potential Employee except as expressly agreed to by the Buyer in writing. 
 4.9 Environmental
Matters. 
 (a) To Seller’s Knowledge, the Branches and the Seller in connection with the Branches (i) have
not been and are not now in violation of or subject to liability under any Environmental Law, and (ii) have been and are in full compliance with all applicable Environmental Laws. 
 (b) To Seller’s Knowledge, none of the Real Estate Interests, or Seller in connection with the Real Estate Interests, have been or
are in violation of or subject to liability under, or have failed to comply with, any Environmental Law. 
 (c) There are no
Proceedings pending or, to Seller’s Knowledge, threatened, nor have there been any past Proceedings relating to the Real Estate Interests, or Seller in connection with the Real Estate Interests, under any Environmental Law, including without
limitation any notices, demand letters or requests for information from any federal or state Governmental Body relating to any liabilities under or violations of Environmental Law. 
  

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 (d) Seller has not received any notice or allegation of any violation of or liability or
lien pursuant to any Environmental Laws with regard to the Branches. 
 (e) To Seller’s Knowledge, no Hazardous Materials
have been generated, stored, released, disposed or are otherwise present at, in, on, under or about any of the Branches or from any of the Branches except in full compliance with Environmental Laws and in a manner that would not result in any
investigation, reporting, remediation or other response pursuant to Environmental Laws. 
 (f) To Seller’s Knowledge, no
release (as defined at CERCLA, 42 U.S.C. 9601(22), without regard for the exclusions at 42 U.S.C. 9601(22)(A) and (C), of Hazardous Materials has occurred at or from any Branch, and no condition exists at or in connection with any Branch for which
applicable Environmental Laws required or require notice to any third party, further investigation, or response action. 
 (g)
Except as disclosed in the Disclosure Schedule, no asbestos is contained in any Branch or property owned, leased or operated by the Seller in connection with the Branches. 
 (h) To Seller’s Knowledge, there are no underground storage tanks on or under any Branch, nor any Hazardous Material at, in, on, or
under or emanating from any Branch in any quantity or concentration in violation of any standard or limit established pursuant to Environmental Laws. 
 (i) Seller is not required to have any Governmental Authorization under Environmental Laws in connection with any of the Branches. 
 (j) To Seller’s Knowledge, no Hazardous Materials generated from any Branch have been treated, stored, disposed or released at a
location that has been nominated or identified as a facility that is subject to any existing or potential claim under Environmental Laws. 
 4.10 Loans. Seller has provided to Buyer a true and accurate data file of all Loans, including accrued and unpaid interest thereon prepared as of a date within 10 days prior to the date of this Agreement, which data shall be
updated at and as of the Closing Date, and, in each case as updated, shall be true and accurate in all material aspects as of such date. 
 (a) Each Loan included in the Acquired Assets was made or acquired by Seller or its predecessor in the Ordinary Course of Business. 
 (b) None of the Loans are residential mortgage loans that are serviced by Seller or an Affiliate of Seller. None of the Loans are
presently serviced by third parties, and there are no obligations, agreements or understandings whatsoever that could result in any Loan becoming subject to any such third party servicing. 
 (c) There are no misrepresentations of material facts made by officers or employees of Seller in the credit files relating to the Loans,
provided that the term “facts” shall not include judgments or opinions of such officers or employees which were in good faith or information which is reflective of information supplied by the borrower or other third parties. 
  

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 (d) With respect to each Loan: 
 (i) Such Loan was solicited, originated and currently exists in material compliance with all applicable requirements of federal laws and
regulations promulgated thereunder and to the extent, if any, that their applicability to Seller is not preempted by federal laws and regulations, state and local laws and regulations promulgated thereunder (for purposes of this clause (i), a Loan
would not be in material compliance if the noncompliance adversely affects the value or collectibility of the Loan or subjects the lender to any penalty or liability); 
 (ii) Each note, agreement or other instrument evidencing a Loan and any related security agreement or instrument (including, without
limitation, any guaranty or similar instrument) constitutes a valid, legal and binding obligation of the obligor named therein, enforceable in accordance with its terms, subject as to enforcement to bankruptcy, insolvency, reorganization,
moratorium, laws governing fraudulent conveyance or equitable subordination principles and other laws of general applicability relating to or affecting creditors’ rights generally and all actions necessary to perfect any related security
interest have been duly taken or will be duly taken; 
 (iii) There has been no material modification to or material waiver of
the terms of the applicable loan documents except as reflected in writing in the loan file for such Loan; 
 (iv) To
Seller’s Knowledge, there is no valid claim or valid defense (including the defense of usury) to the enforcement of such Loan or a valid right of setoff or rescission; 
 (v) No claim or defense (including the defense of usury) to the enforcement of a Loan or a valid right of setoff or rescission has been
asserted with respect any Loan; 
 (vi) Neither Seller nor any predecessor has taken or failed to take any action that would
entitle any obligor or other party to assert successfully any claim against Seller or Buyer (including without limitation any right not to repay any such obligation or any part thereof); 
 (vii) Such Loan was made substantially in accordance with Seller’s or Seller’s predecessor’s standard underwriting and
documentation guidelines as in effect at the time of its origination and has been administered substantially in accordance with Seller’s or Seller’s predecessor’s standard loan servicing and operating procedures as in effect from time
to time; 
 (viii) The borrower is not in bankruptcy and, to Seller’s Knowledge, there are no facts, circumstances or
conditions with respect to such Loan, the collateral therefor or the borrower’s credit standing, that could reasonably be expected to cause such Loan to become delinquent or adversely affect the collectibility, the value or the marketability of
such Loan; 
  

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 (ix) There is no pending, or to Seller’s Knowledge, threatened, litigation or claims
which may affect in any way the title or interest of the Seller or the borrower in and to such Loan, the collateral for such Loan and the promissory note or the mortgage or deed of trust; and 
 (x) There are no threatened or pending foreclosures, total or partial condemnation (to Seller’s Knowledge) or repossession
proceedings or insurance claims (to Seller’s Knowledge) with respect to such Loan or the collateral for such Loan. 
 (xi) Seller has not directed, controlled or overseen the management of environmental matters of any borrower or any real estate in which the Seller in connection with the Branches holds or has held a security interest and which constitutes
a Loan so as to cause the Seller to act outside the exclusion under 42 U.S.C. § 9601(20)(E) or any other analogous provisions under applicable Environmental Laws. 
 (e) For purposes of the representations made in subsections (a) and (c) above, such representations shall be deemed to
Seller’s Knowledge for any Loan originated (and for purposes of (c)(xi) above managed) by a predecessor of Seller. 
 4.11 Owned
Real Property, Ground Leased Premises, and Tangible Personal Property. 
 (a) Schedule 4.11 of the Disclosure
Schedule lists and describes briefly all real property owned by Seller and used as Branch premises (the “Owned Real Property”). With respect to each such parcel of Owned Real Property, and each Ground Leased Premises, Seller has good,
indefeasible, and marketable fee or leasehold title to the parcel of real property, free and clear of any Encumbrance, easement, covenant, or other restriction, except for (A) liens for Taxes not yet due and payable and for installments of
special assessments not yet delinquent, (B) recorded easements, covenants, and other restrictions which do not materially impair the current use, occupancy, or value, or the marketability of title, of the Real Estate Interests and (C) any
other exception to good, indefeasible, and marketable title to the Real Estate Interests to which Buyer in its sole and absolute discretion, shall consent in writing prior to the Closing to accept as a permitted exception to good and marketable
title. 
 (b) Except as set forth in Schedule 4.11(b), for the Owned Real Property, Ground Leased Premises, and the
Tangible Personal Property (it being understood that, with respect to the Ground Leased Premises, the representations set forth herein mean that Seller is not aware of any matter referred to, but Seller is not the owner of the affected property and
may not have Knowledge of relevant information): 
 (i) there are no pending or threatened condemnation proceedings, claim of
violation of zoning laws, governmental investigation, lawsuits, or administrative actions relating to the Owned Real Property, Ground Leased Premises, or Tangible Personal Property or other matters affecting, or which might affect adversely the
current use, occupancy, or value thereof; 
  

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 (ii) there are no outstanding options or rights of first refusal to purchase the parcel
of Owned Real Property, Ground Leased Premises, or Tangible Personal Property, or any portion thereof or interest therein; 
 (iii) no written notice of any violation of zoning laws, building or fire codes or other statutes, ordinances, or regulations or of restrictive covenants relating to the use or operation of the Real Property Interests has been received by
Seller and Seller has not undertaken any construction or improvements on the Real Estate Interests within the past 6 months which could result in the imposition of any mechanics, materialmen or other similar liens on the Real Estate Interests;

 (iv) there is no pending or, to Seller’s Knowledge, contemplated rezoning proceeding or special assessment affecting
the Real Estate Interests; 
 (v) to Seller’s Knowledge, the Real Estate Interests are not subject to any special tax
valuation or special tax exemption, which upon a change in use or ownership of the Real Estate Interests will result in a “rollback tax” or similar assessment; 
 (vi) to Seller’s Knowledge, (A) access to each of the Real Estate Interests is available over public streets, (B) all
water, sewer, gas, electric, telephone, cable, drainage and other utility equipment, facilities and services required by applicable laws and regulations or necessary for the current operation of the Real Estate Interests are installed, connected and
adequate to serve the Real Estate Interests for their current use, and (C) all utility lines servicing the Real Estate Interests are located either within the boundaries of such Real Estate Interests, within lands dedicated to the public use or
within recorded easements for such purpose, and are serviced and maintained by the appropriate public or quasi-public entity; 
 (vii) to Seller’s Knowledge, Seller possesses all rights, privileges, licenses, franchises, permits and other authorizations (including certificates of occupancy) that are material to the current use, occupancy and operation of the
Real Estate Interests; 
 (viii) all permits that are material to the current use, occupancy and operation of the Real Estate
Interests are in full force and effect and Seller has not received written notice of any pending or threatened revocation, suspension or termination proceedings concerning such permits; 
 (ix) all improvements located on the Real Estate Interests, the roofs thereon, and all mechanical systems (including, without limitation,
all HVAC, plumbing, electrical, elevator, security, utility, sprinkler and safety systems) therein, are in good working order, in sound structural condition (to Seller’s Knowledge) and are free from material defect or deficiency; 
  

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 (x) Seller has not received any written notice (which remains outstanding) from a
governmental authority or body or other party alleging the existence of such defect or deficiency as set forth in clause (vii) and (viii); and 
 (xi) there has been no casualty affecting all or any material portion of the Real Estate Interests which has not been restored or for which adequate insurance proceeds will not be transferred to Buyer at Closing, with
Seller being responsible for deductibles. 
 4.12 Leased Property. The leases or sub-leases for the Leased Property (the
“Leases”) are valid, enforceable and existing leases under which Seller is entitled to possession of the leased premises as lessee. The Leases are accurately described on Schedule 4.12 attached hereto and have not been amended,
modified or supplemented except as shown on Schedule 4.12. The copies of the Leases delivered to Buyer are true, correct and complete. No event has occurred and is continuing which constitutes a default by Seller or to Seller’s
Knowledge, any other party to the Leases. Subject to Seller obtaining any necessary consents (“Landlord Consents”), the assignment of such Leases will transfer to Buyer all of Seller’s rights under the Leases. 
 4.13 Acquired Contracts. Each of the Acquired Contracts is in full force and effect. Neither Seller nor, to Seller’s Knowledge, any
other party has breached any provision or is in default of any Acquired Contracts. 
 4.14 Absence of Certain Changes and
Events. Since March 31, 2009 Seller has not: 
 (a) suffered any change which would have a Seller Material
Adverse Effect; 
 (b) except in the Ordinary Course of Business and consistent with prudent banking practices, (A) sold,
transferred, leased, pledged, mortgaged, or otherwise encumbered or (except for this Agreement) agreed to sell, transfer, lease, pledge, mortgage or otherwise encumber, any of the Acquired Assets or rights with respect thereto, or (B) canceled,
waived, compromised or agreed to cancel, waive or compromise any debts, claims or rights with respect to the Acquired Assets or the Assumed Liabilities; 
 (c) made or permitted any amendment, termination or lapse of any contract, lease, agreement, license or permit, if such amendment, termination or lapse (individually or in the aggregate) would reasonably be expected
to have a Seller Material Adverse Effect; 
 (d) made any change in any method of management or operation of the Branches not
in the Ordinary Course of Business or any accounting change, except as may be required by generally accepted accounting principles or general regulatory requirements; 
 (e) except as set forth in Schedule 4.14(e), granted any general increase in the compensation of its officers or employees located
at the Branches (including any increase pursuant to any bonus, pension, profit sharing or other plan or commitment), except for normal periodic increases made pursuant to established compensation policies applied on a basis consistent with that of
the prior year, and increases and payments necessary, in the employer’s reasonable discretion, to maintain and preserve the operation of the Branches, 

  

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all of which increases that relate to employees located at the Branches shall be promptly disclosed in writing to Buyer by Seller within forty-five
(45) days prior to the Closing Date; 
 (f) caused the Branches to transfer to Seller’s other operations any
deposits other than deposits that are not Deposits for purposes of this Agreement, except in the Ordinary Course of Business at the unsolicited request of depositors, or caused any of Seller’s other operations to transfer to the Branches any
deposits, except in the Ordinary Course of Business at the unsolicited request of depositors; 
 (g) made any change to its
customary policies for setting rates on deposits offered at the Branches, including any increase in interest rates paid unless (and only to the extent that) Seller has effected such a rate increase in its other branches; or 
 (h) entered into any other transaction or conducted its affairs, in either case related to the Acquired Assets or the Assumed Liabilities,
other than in the Ordinary Course of Business and consistent with prudent banking practices except as contemplated by this Agreement. 
 4.15
Fiduciary Matters. The Fiduciary Account has been properly administered in all material respects in conformity with the terms of the applicable governing documents and Applicable Law (including applicable standards of fiduciary
conduct), including, without limitation, with respect to accountings, distributions, allocations, credits and charges between and to income and principal accounts, investments, investment review procedures, reporting, obtaining necessary approvals,
compliance with instructions, Applicable Laws and regulations, maintenance and security of assets, fees charged and Taxes. All material information affecting fiduciary positions and records demonstrating the correctness of the foregoing
representation in this Section 4.15 for the Fiduciary Account are maintained by Seller in its normal files. In connection with the performance of services related to fiduciary positions for the Fiduciary Account, the Seller has not made any
guarantee or assurance to any Person concerning a rate of return, marketability or quality of the assets held in such account. The documents under which Seller is serving with respect to the Fiduciary Account are in full force and effect and provide
Seller with the requisite authority to act as a fiduciary. 
 ARTICLE 5 
 REPRESENTATIONS AND WARRANTIES OF BUYER 
 Buyer represents and warrants to
Seller that the statements contained in this Article 5 are correct and complete as of the date of this Agreement and will be correct and complete as of the Closing Date (as though made then as though the Closing Date were substituted for the date of
this Agreement throughout this Article 5). 
 5.1 Organization, Qualification, and Corporate Power. Buyer is a banking
association duly organized and validly existing under the laws of the State of Texas, with full corporate power and authority to conduct its business as now being conducted and to own or use the properties and assets that its purports to own or use.

  

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 5.2 Authorization of Transaction. Buyer has the full corporate power and authority to
execute and deliver this Agreement, to perform Buyer’s obligations hereunder, and to consummate the Acquisition. This Agreement constitutes the valid and legally binding obligation of Buyer, enforceable in accordance with its terms and
conditions, subject to bankruptcy, insolvency, reorganization, moratorium, receivership, conservatorship and similar laws relating to the rights and remedies of creditors, as well as to general principles of equity. Except for any applications made
to the FDIC or the Texas Department of Banking in connection with the Acquisition, Buyer is not required to give any notice to, make any filing with, or obtain any authorization, or Consent of any Governmental Body in order to consummate the
Acquisition. 
 5.3 Noncontravention. Subject to the required Consents set forth in Section 5.2 and except for matters
which would not have a Buyer Material Adverse Effect, neither the execution and the delivery of this Agreement by Buyer, nor the consummation of the Acquisition by Buyer, will directly or indirectly: 
 (a) Contravene, conflict with, or result in a violation of (i) any provision of the charter or bylaws of Buyer or (ii) any
resolution adopted by the board of directors or the shareholders of Buyer; 
 (b) Contravene, conflict with, or result in a
violation of, or give any Governmental Body or other Person the right to challenge the Acquisition or to exercise any remedy or obtain any relief under, any Applicable Law or any Order to which Buyer, or any of the assets owned or used by Buyer may
be subject; 
 (c) Contravene, conflict with, or result in a violation of the terms or requirements of, or give any
Governmental Body the right to revoke, withdraw, suspend, cancel, terminate or modify, any Governmental Authorization that is held by Buyer or that otherwise relates to the business of, or any of the assets owned or used by, Buyer; or 
 (d) Contravene, conflict with, or result in a violation or breach of any provision of, or give any Person the right to declare a default
or exercise any remedy under, or to accelerate the maturity or performance of, or to cancel, terminate or modify, any Contract to which Buyer is a party. 
 5.4 Brokers’ Fees. Except for fees payable to Carson Medlin Co. Investment Bankers, Buyer has no Liability or obligation to pay any fees or commissions to any broker, finder, or agent with respect
to the Acquisition. 
 5.5 Legal Proceedings; Orders. There are no pending proceedings or an Order pending
against Buyer that would prohibit Buyer’s fulfillment of obligations agreed to in this Agreement. 
 5.6 Financial
Condition. The financial condition and capital ratios of Buyer are sufficient to enable Buyer to consummate the Acquisition without any external financing. 
 5.7 Regulatory Condition. To Buyer’s Knowledge, there exists no fact or circumstance that would prevent or delay Buyer’s ability to obtain promptly all Consents of Governmental Bodies for the
Acquisition. 
  

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 ARTICLE 6 
 PRE-CLOSING COVENANTS 
 The Parties agree as follows with respect to the period from and after the
execution of this Agreement. 
 6.1 Operation of Business. 
 (a) From the date of this Agreement through the Closing Date, Seller shall use commercially reasonable efforts to maintain the level of
customer accounts of the Branches existing on the date hereof. 
 (b) From the date of this Agreement through the Closing
Date, Seller will not, and will not cause or allow the Branches to, engage in any practice, take any action, or enter into any transaction outside the Ordinary Course of Business without the consent of Buyer, including, without limitation, the
following: 
 (i) increase the rate of compensation of, any of the Branches officers or employees, except in the Ordinary
Course of Business or enter into any employment contracts with any Potential Employee, provided however, prior to or on the Closing Date, Seller shall pay in full all production, incentive performance or annual management bonuses to
employees that have been earned or that directly relate to achievement of employee goals; 
 (ii) except for the origination
of loans in the Ordinary Course of Business, acquire any assets or business that is material to the Branches; 
 (iii)
authorize any capital expenditure(s) which, individually or in the aggregate, exceed $25,000 for any single Branch (other than capital expenditures relating to the New Northside Branch which shall be governed by Section 6.20 herein);

 (iv) extend any new, or renew any existing, loan, credit, lease, or other type of financing or renew any such type of
financing which does not meet Seller’s customary loan policy requirements as disclosed to Buyer, except in connection with the workout of loans; 
 (v) other than in the Ordinary Course of Business consistent with past practice or as determined to be necessary or advisable by Seller in the reasonable bona fide exercise of its discretion based on changes in market
conditions applicable to the Branches, materially alter its interest rate or fee pricing policies with respect to the Deposits and the Loans or waive any material fees; or 
 (vi) directly or indirectly agree to take any of the foregoing actions. 
 6.2 Notice of Potential Material Adverse Effect. Seller will give prompt written notice to Buyer of any fact or circumstance which would
result in a Seller Material Adverse Effect, or cause a breach or threatened breach of any of the representations and warranties in Article 3 or 4 above. Buyer will give prompt written notice to Seller of any fact or circumstance which would result
in a Buyer Material Adverse Effect or cause a breach or threatened breach of any of the representations and warranties in Article 5. 
  

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 6.3 Reasonable Access. Upon reasonable notice, during normal business hours, Seller will
permit and cause the Branches to allow Buyer to investigate the Branches’ properties, books, contracts, commitments and records respecting the Acquired Assets and the Assumed Liabilities; provided, that such investigation shall be related to
the Acquisition and shall not interfere materially or unnecessarily with the Branches’ normal operations. Buyer shall, and shall cause its advisers and agents to, maintain the confidentiality of all confidential information furnished to it and
shall not use such information for any purpose except in furtherance of the Acquisition. If this Agreement is terminated, Buyer shall promptly return or certify the destruction of all documents and copies thereof, and all work papers containing
confidential information received concerning the Branches. 
 6.4 Press Releases. Prior to the Closing Date, the Parties will
consult with each other as to the form and substance of any press release or other public disclosure materially related to the Acquisition; provided, that no Party is prohibited from making any disclosure which its counsel deems necessary or
advisable in order to satisfy any requirements of Applicable Law or the rules of any national securities exchange on which securities of a Party or Affiliate of a Party are listed, in which case the Party making such public announcement or
disclosure shall give prior written notice to the other Party promptly after the disclosing Party is notified of the disclosure requirement. Neither Party will be required to seek the other Party’s approval of any public notice required for any
required regulatory filing. 
 6.5 Exclusivity. Seller will not (a) solicit, initiate, or encourage the submission of any
proposal or offer from any Person other than Buyer relating to the acquisition of any substantial portion of the assets of the Branches or (b) participate in any discussions or negotiations regarding, furnish any information with respect to,
assist or participate in, or facilitate in any other manner any effort or attempt by any Person to do or seek any of the foregoing. Seller will notify Buyer immediately if any Person makes any proposal, offer, inquiry, or contact with respect to any
of the foregoing. 
 6.6 Regulatory Matters and Approvals. Each of the Parties will cooperate and use commercially reasonable
efforts to promptly prepare and file all necessary documentation, to effect all necessary applications, notices, petitions, filings and other documents, and to obtain all necessary Governmental Authorizations. Buyer shall file all requisite
applications with the applicable Governmental Bodies no later than thirty (30) calendar days after the date of this Agreement; provided that Seller has supplied to Buyer all necessary Seller information required for such applications and Buyer
shall have provided to Seller a copy of each such application (excluding confidential sections thereof) not less than three (3) Business Days prior to the date on which such application is to be filed. Buyer shall respond (and Seller shall
assist Buyer in responding) to all requests for information from a Governmental Body in a timely manner and shall use their respective commercially reasonable efforts to respond to any request within three (3) Business Days. Each of the Parties
will (i) permit the other to review in advance and, to the extent practicable, will consult with the other Party on all characterizations of the information relating to the other Party which appear in any filing made with, or written materials
submitted to, any Governmental Body in connection with the Acquisition; and (ii) consult with the other with respect to obtaining all Governmental Authorizations necessary or advisable to consummate the 

  

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Acquisition and will keep the other Party apprised of the status of matters relating to completion of the Acquisition. Each of the Parties will promptly
furnish the other Party with copies of all written communications received by it, from, or delivered to, any Governmental Body in connection with or material to the Acquisition, except for any confidential portions thereof and shall update the other
party on any non-written correspondence with Governmental Bodies relating to Governmental Authorizations. 
 6.7 Employment.

 (a) Buyer may, but shall be under no obligation to, extend offers of employment as of the Closing Date to employees of
Seller at the Branches (such employees collectively, the “Potential Employees”). Seller shall assist, and shall cause its Affiliates to assist, Buyer’s solicitation of Potential Employees to accept employment with Buyer and/or
Affiliates of Buyer. Without limiting the foregoing, Seller shall permit Buyer to contact and solicit the Potential Employees promptly after the date of this Agreement and shall cooperate with Buyer to establish procedures for Buyer to interview the
Potential Employees and to provide Buyer with appropriate information relating to the Potential Employees (including, upon receipt of written consent from a Potential Employee if reasonably deemed necessary by Seller, a copy of each such Potential
Employee’s most recent performance review and access to each such Potential Employee’s entire personnel and employment file). 
 (b) Buyer shall notify Seller at least thirty (30) days prior to the Closing which Potential Employees Buyer desires to employ following Closing. Buyer agrees that it will offer employment to each such Potential
Employee at least thirty (30) days prior to the Closing Date. Seller shall terminate all such Potential Employees who accept employment with Buyer effective as of the Closing Date. Potential Employees who accept offers of employment by Buyer
prior to the Closing Date and become employees of Buyer by reporting for work with Buyer on the first Business Day following the Closing Date or within five (5) Business Days after the Closing Date as may be applicable to Potential Employees
who may be taking vacation as of the Closing Date shall be referred to herein as “Retained Employees.” All other Potential Employees shall not be Retained Employees and shall remain the responsibility of Seller. 
 (c) Retained Employees shall be employed by Buyer after the Closing Date upon terms and conditions of employment determined solely by
Buyer’s policies, procedures and programs. However, for purposes of Buyer’s defined contribution Employee Pension Benefit Plan and any Employee Welfare Benefit Plans (including vacation policies), time of service with the Seller prior to
the Closing Date will be credited to the Retained Employees for purposes of determining eligibility and calculating vesting (if applicable) to the greatest extent permitted under such plans and applicable law, provided that for elective benefits the
Retained Employee elects to enroll in the plan on or before 31 days from the date such Retained Employee first becomes eligible to participate in the plan. Each Retained Employee shall be permitted, to the extent permitted by law and the provisions
of Buyer’s plan, to participate in Buyer’s 401(k) plan and to roll over any eligible rollover contributions into Buyer’s 401(k) plan. Furthermore, Buyer will waive any pre-existing condition exclusions, evidence of insurability
provisions, waiting period requirements or any similar provision under the Buyer’s health benefit plans. 
  

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 (d) All wages and salaries, workers’ compensation payments, accrued and unused
vacation pay and social security and unemployment taxes of employees at the Branches (including Retained Employees) shall be paid by Seller for the period prior to and including the Closing Date. Buyer shall have no liability to any current or
former employees of Seller and/or its Affiliates for any accrued wages, sick leave, vacation time, pension obligations or any other employee benefits accrued as employees of Seller and/or its Affiliates. Buyer will have no liability and will not
assume obligations under any Employee Pension Benefit Plan or Employee Welfare Benefit Plan sponsored, maintained or contributed to by Seller or its Affiliates or any other obligations (including, without limitation, health continuation coverage,
severance obligations, fringe benefit or deferred compensation arrangements, bonus plans, incentive programs, or retiree medical coverage) to the employees or former employees at any of the Branches. Seller and/or its Affiliates will be solely
responsible for fulfilling and resolving any disputes concerning its liabilities or obligations (including, without limitation, health continuation coverage, bonus, incentive, severance obligations, fringe benefit or deferred compensation
arrangements, bonus plans, incentive programs, or retiree medical coverage) to the employees at the Branches under any such employee benefit plan or with regard to any similar plans, programs, or arrangements. 
 (e) Nothing contained herein shall (i) confer upon any former, current or future employee of Seller or its Affiliates or Buyer or its
Affiliates or any legal representative or beneficiary thereof any rights or remedies, including, without limitation, any right to employment or continued employment of any nature, for any specified period, or (ii) cause the employment status of
any former, present or future employee of Buyer or its Affiliates to be other than terminable at will. 
 (f) Seller will make
all severance and other payments and perform all obligations to Seller’s employees under any and all severance, stay-pay, or similar agreements executed between Seller and the employees of the Branches on or prior to the Closing Date.

 (g) Prior to the Closing Date, Seller and Buyer shall cooperate in order to permit Buyer to train Potential Employees who
choose to accept employment with Buyer, and Seller shall, as scheduled by Buyer for reasonable periods of time and subject to Seller’s reasonable approval, excuse such employees from their duties at the Branches for the purpose of training and
orientation by Buyer. Buyer agrees to reimburse Seller for any out-of-pocket overtime expenses of Seller for Potential Employees if such training is not available during Seller’s normal business hours for the Branches. 
 6.8 Conveyance of Customer Accounts. 
 (a) Deposit Accounts. The Parties specifically acknowledge that Buyer has the regulatory duty for all communications regarding any change in terms of deposit agreements. The Parties additionally acknowledge
that it is in the best interest of customer retention that such notice be a joint notice mailed to each customer (in accordance with deposit account contracts and/or governing law and regulation) having a Deposit to advise such persons that their
Deposits will be transferred to and assumed by Buyer hereunder. Seller and Buyer will cooperate in drafting such a joint written notice that shall be in a form 

  

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mutually acceptable to both Buyer and Seller. Such mailing shall be at Buyer’s expense. In the event that the Parties cannot agree on a joint written
notice, Buyer may in its sole discretion singly mail a notice to each customer described above. 
 (b) Loans. On the
Closing Date, title to the Loans shall be transferred from Seller to Buyer by a Bill of Sale, together with an assignment of notes and liens for real estate secured loans. Seller shall provide Buyer with a Limited Power of Attorney, in the form of
Exhibit B, to effectuate the assignment of the Loans. Seller will also endorse or execute an allonge with respect to each note to Buyer, “without recourse” and, except as otherwise specifically provided in this Agreement, without
warranties. Seller will cooperate with Buyer and shall execute any other assignment documents that Buyer may reasonably request that are acceptable for filing in accordance with any applicable law. Preparation of such additional documents shall be
Buyer’s responsibility and at Buyer’s expense; all recording fees and expenses related to the recordation of the assignments shall be the responsibility of Buyer. 
 (c) Other Notices. Buyer and Seller may mail any other joint notices or written communications to customers of the Branches as
Buyer and Seller may agree in writing to be necessary or advisable or as required by its respective regulator, in connection with consummation of the transactions contemplated hereby, all such notices and written communications to be in a form
mutually satisfactory to Buyer and Seller and shall meet all applicable regulatory requirements. Seller shall promptly provide to Buyer upon Buyer’s request the current name and address data files of converting customers to be used to mail
notices and/or letters to the affected customers of the Branches. 
 6.9 Delivery of Books and Records. Seller shall make
available to Buyer its Books and Records and shall assist Buyer with any reasonable requests that Buyer may have to facilitate Buyer’s conversion of the customer records by the Closing Date. 
 6.10 Maintenance of Properties. From the date of this Agreement and until the Effective Time, Seller will maintain the Branches in their
current condition, ordinary wear and tear excepted. 
 6.11 Cooperation. From the date of this Agreement until the Effective
Time, Seller will provide reasonable cooperation with and assist Buyer in planning a conversion to transition the business of the Branches from Seller to Buyer. Each Party shall pay its own cost relating to such conversion. Seller agrees to provide
Buyer up to three complete sets of data files/ conversion tapes prior to the final set of data files/conversion tapes for the purposes of implementing the conversion as of the Closing Date. Further, Seller agrees that it will not modify the record
layouts provided in such data files/conversion tapes prior to the Closing Date unless otherwise requested by Buyer’s servicer(s). 
 6.12 Landlord Consents. From the date of this Agreement until all necessary Landlord Consents are obtained, Seller and Buyer shall cooperate with each other and use commercially reasonable efforts to obtain all necessary
Landlord Consents to transfer Seller’s rights as lessee to the Leased Property to Buyer. 
  

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 6.13 Owned Real Property. Seller will provide Buyer, at Seller’s expense, with a
commitment for title insurance with respect to each parcel of real property comprising the Owned Real Property and the Ground Leased Premises (including all documents, instruments or agreements evidencing or creating the exceptions referenced in
such commitment) from a title insurance company reasonably acceptable to Buyer and a Texas Surveyors Association Standards and Specifications Category 1A, Condition II Survey (prepared and certified, in form reasonably acceptable to Buyer, as to all
matters shown thereon by a surveyor licensed by the State of Texas and reasonably acceptable to Buyer, which shall include a notation stating whether or not a portion of the premises are located in a 100 year flood plain, flood-prone area of special
flood hazard and if so, depicting the location of such flood-prone area of special flood hazard) within forty-five (45) days after the execution of this Agreement. Buyer shall have ten (10) Business Days after the receipt of the commitment
for title insurance to object, in writing, to any exceptions or other matters contained therein, other than for current taxes not delinquent, printed exceptions generally contained in any owner’s standard coverage policy of title insurance,
rights of government entities to make cuts and fills in connection with construction and/or maintenance of any public roadways adjoining the real property and easements and reservations of record which do not prevent the use of each such parcel of
real property as a banking branch. If no objections are made, Buyer shall be deemed to have accepted the status of title. If Buyer gives timely notice of its objections, Seller shall have the opportunity (but not the obligation) for ten
(10) days from the date of Buyer’s notice to cure the objection. Buyer shall have ten (10) Business Days after the receipt of the land title survey to object, in writing, to any matters contained therein. If no objections are made,
Buyer shall be deemed to have accepted the survey. If Buyer gives timely notice of its objections, Seller shall have the opportunity (but not the obligation) for ten (10) days from the date of Buyer notice to cure the objection. 
 6.14 Insurance Proceeds and Casualty Payments. In the event of any damage, or destruction affecting the Acquired Assets between the date
hereof and the time of the Closing, Seller shall deliver to Buyer notice of such damage or destruction and, at Buyer’s election, shall either fix or repair such damage or destruction or pay to Buyer the insurance proceeds, to the extent of the
applicable amount set forth in Section 2.2(a) hereof with respect to the Real Estate Interests and improvements, Tangible Personal Property and the replacement cost with respect to the Tangible Personal Property as the case may be, received (or
with respect to insurance proceeds, which would be received assuming Seller’s insurance policy had no deductible) by Seller as a result thereof; provided, however, that Buyer shall have the right to terminate this Agreement in the event that
the Book Value of such Acquired Assets so damaged or destroyed is in excess of $50,000, unless Seller agrees to pay Buyer the difference between the Fair Market Value of such Acquired Assets and the insurance proceeds. 
 6.15 Environmental Reports and Investigations. Within ten calendar days following the date of this Agreement, Seller will furnish
Buyer true and complete copies of all environmental assessments, reports, studies, surveys and other similar documents or information, including without limitation related correspondence, in its possession or control relating to each of the Real
Estate Interests. Prior to the Closing Date, Buyer may conduct such environmental investigations, assessments, and surveys as Buyer deems appropriate, including, without limitation, Phase I Environmental Assessments and/or Phase II Environmental
Assessments for each of the Real Estate Interests conducted by an independent and environmental investigation and testing firm selected by the Buyer. Buyer will notify Seller a reasonable time in advance of the examinations scheduled pursuant to
this Section 6.15. Seller shall use its commercially reasonable efforts to 

  

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obtain access for Buyer for the purposes of the environmental investigations for Leased Properties. If one or more of such reports confirms the existence of
a condition which could be subject to Liability under applicable Environmental Laws, and the aggregate costs of remediating such conditions are reasonably estimated not to exceed $200,000 with respect to any single Branch or $300,000 on a cumulative
basis for one or more Branches, then Buyer shall purchase such Owned Real Property on the terms set forth in Section 2.2. If such costs are reasonably estimated to exceed $200,000 for any single Branch or $300,000 in aggregate for one or more
Branches and Buyer and Seller fail to reach an agreement within thirty (30) calendar days after receipt of reports regarding the estimated remediation costs, then Buyer may elect to exclude the applicable parcel or parcels of Real Estate
Interests from the Acquisition, and the Payment Amount shall be reduced accordingly. Buyer agrees to assume the Deposits for any Branch excluded from the Acquisition pursuant to this Section 6.15, subject to Buyer’s or Seller’s
ability to satisfy all applicable regulatory requirements. Buyer and its employees, agents and representatives shall hold all contents of any Phase I or Phase II reports confidential and disclose the contents thereof only with prior written consent
of the Seller or as may be required under applicable law. Buyer shall promptly provide to Seller copies of its Phase I and Phase II reports, if any, and all other environmental reports, data and related documents if requested in writing by Seller.

 6.16 Condemnation. If prior to Closing all or any portion of the Real Estate Interests is taken or is made subject to
eminent domain or other governmental acquisition proceedings, then Seller shall promptly notify Buyer thereof, and on the Closing Date pay to the Buyer all payments received in respect thereto (or to be received after the Closing Date in the event
payment has not been made by the applicable Governmental Body prior to the Closing Date); provided, however, that the Buyer shall have the right to terminate this Agreement in the event of that the Book Value of the portion of the Real Estate
Interests and improvements so taken or made subject to eminent domain is in excess of $50,000, unless Seller agrees to pay Buyer the difference between the Fair Market Value of such portion and the condemnation award. 
 6.17 Exclusion of Non-Core Deposits. Buyer may exclude in its sole discretion from the Deposits to be assumed any
Non-Core Deposit. On or before the 40th day prior to the Closing Date, Seller shall
provide to Buyer a list of all Non-Core Deposits originated on and prior to the date of delivery of such list. On or before the 35th day prior to the Closing Date, Buyer shall provide Seller a list of excluded Non-Core Deposits. In the event any Non-Core Deposits
are originated after the 40th day prior to the Closing Date (“Late Non-Core
Deposits”), such Late Non-Core Deposits shall be automatically excluded from the Deposits being assumed by Buyer under this Agreement. 
 6.18 Additions to Loans. Prior to the Closing Date, Buyer may, in its sole discretion, include on Schedule 1.49, any loan originated by Seller and attributable to the Branches (“New
Loan”). Any such New Loan added to Schedule 1.49 shall be deemed a Loan for purposes of this Agreement. Buyer will notify Seller on or before the 30th day prior to the Closing Date of any New Loan that Buyer intends to added to Schedule 1.49; however, the parties agree that
New Loans may be added to Schedule 1.49 after the 30th day prior to the
Closing Date subject to an agreement between the parties for the transfer of any such New Loan added at a mutually agreeable time after the Closing Date. 
 6.19 Subordination, Non-disturbance and Attornment Agreements. Seller shall use its best efforts to obtain subordination, non-disturbance and attornment agreements (“SNDAs”) from 

  

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the Landlord’s lenders with respect to the Leases, which SNDAs must be in form and substance reasonably satisfactory to Buyer. If Seller is unable to
obtain SNDAs for the Ground Leased Premises and Buyer and Seller fail to reach an agreement within thirty (30) calendar days after receipt of Landlord’s lenders indication that an SNDA will not be executed, then Buyer may elect to exclude
the applicable Ground Leased Premises from the Acquisition, and the Payment Amount shall be reduced accordingly. Buyer agrees to assume the Deposits for any Branch excluded from the Acquisition pursuant to this Section 6.19, subject to
Buyer’s or Seller’s ability to satisfy all applicable regulatory requirements. 
 6.20 New Northside Branch. Seller
agrees to use its best efforts acquire the Real Estate Interests that will constitute the New Northside Branch in accordance with the purchase agreement executed between Seller and the current owner of the premises in effect on the date of this
Agreement and to take such steps so that the New Northside Branch is operational on or before the Closing Date. Seller agrees to undertake the capital improvements and make the capital expenditures set forth on Schedule 6.20 for improvements
to the New Northside Branch and Seller further agrees that such capital expenditures shall not be reimbursed to Seller by Buyer and shall not be reflected on the Closing Date Balance Sheet. Buyer and Seller agree that if the New Northside Branch is
not operational on the Closing Date, Buyer will acquire the Deposits and Loans relating to the Old Northside Branch on the Closing Date and Seller will lease or sublease, as applicable, to Buyer the premises constituting the Old Northside Branch
pending Seller’s completion of the acquisition of and the improvements to the New Northside Branch. The rent for such lease or sublease shall be nominal and shall not exceed Seller’s actual operating costs for such premises during
Buyer’s occupancy. Upon completion of the acquisition and improvements of the New Northside Branch, Seller shall sell to Buyer the Owned Real Property and Tangible Personal Property and such other of the Acquired Assets not previously
transferred to Buyer relating to the New Northside Branch in a second closing under the same terms and conditions as though the New Northside Branch were acquired on the Closing Date; provided that such second closing will occur on or before
March 31, 2010. 
 6.21 Fiduciary Account. Seller agrees to use its commercially reasonable efforts to obtain the
necessary Consent for the transfer of the Fiduciary Account to Buyer, which Consent must be in form and substance reasonably satisfactory to Buyer. In the event Seller is unable to obtain the necessary Consent for such transfer, the Fiduciary
Account shall be excluded from the Acquisition and will be deemed an Excluded Asset. 
 ARTICLE 7 
 POST-CLOSING COVENANTS 
 7.1
Continued Cooperation. The Parties agree in case at any time after the Closing any further action is necessary or desirable to carry out the purposes of this Agreement, each of the Parties will take such further action (including the
execution and delivery of such further instruments and documents) as the other Party reasonably may request, all at the sole cost and expense of the requesting Party (unless the requesting Party is entitled to indemnification therefore under Article
11 below). 
  

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 7.2 Transitional Matters Concerning Deposits. 
 (a) Without limiting the generality of the other provisions of this Agreement, Buyer will pay in accordance with law, customary banking
practices, and the respective terms of the Deposits and related Acquired Contracts all properly drawn and presented checks, drafts and withdrawal orders (including, in all cases under this Section 7.2, transactions initiated with debit cards
used by the Branches) with respect to the Deposit accounts presented to Buyer by mail, over the counter, through the check clearing system of the banking industry or any other method of general acceptance within the banking industry, whether such
checks, drafts and withdrawal orders are on forms provided by Buyer or Seller, and in other respects to discharge, in the usual course of the banking business, the duties and obligations of Seller with respect to the Deposits. 
 (b) Seller agrees, at Seller’s cost and expense, to transfer to Buyer Seller’s routing numbers for the Branches and to take all
actions necessary to accomplish such transfer. Seller agrees, at its cost and expense, to assign new account numbers to all deposits of the Branches not assumed by Buyer pursuant to the terms of this Agreement and to furnish such depositors with
checks on the forms of Seller, and to instruct such depositors to utilize Seller’s newly furnished checks, drafts and withdrawal order forms and cease using Seller’s checks, drafts and withdrawal forms previously supplied by Seller that
contain the routing numbers assigned to Buyer pursuant to the terms of this Agreement. 
 (c) Seller agrees that it will
reimburse Buyer for the amount of any uncollectible check, draft, or withdrawal order drawn on a Deposit to the extent such amount is incurred by Buyer as a result of any failure by Seller after the Closing Date to expeditiously return, revoke any
prior settlement of, give notice of dishonor or nonpayment of, or otherwise reject, before the applicable midnight deadline or other applicable deadline, any check, draft or withdrawal order drawn on Seller with regard to the deposit account and
presented to Seller before the Closing Date, that is not properly payable due to insufficient funds in the applicable deposit account, an outstanding stop payment order, or a forged check. Should any of the Branches “due from” accounts be
charged any sums with respect to any of the Deposits by reason of a forged endorsement or otherwise (hereinafter the “Reclaimed Amount”), then Buyer as assignee of such Deposit shall forthwith upon request by Seller assert a right of
setoff against such Deposit for the whole amount of Reclaimed Amount or such portion thereof that may be on deposit with Buyer in such Deposit account from time to time, and shall remit such sums to Seller forthwith thereafter, in accordance with
this Section 7.2. 
 (d) Buyer agrees that it will reimburse Seller for the amount of any uncollectible check, draft or
withdrawal order drawn on a Deposit to the extent such amount is incurred by Seller as a result of any failure by Buyer after the Closing Date to expeditiously return, revoke any prior settlement of, give notice of dishonor or nonpayment of, or
otherwise reject, before the applicable midnight deadline or other applicable deadline, any check, draft or withdrawal order drawn on Seller with regard to the Deposit account and presented any date after the Closing Date, that is not properly
payable due to insufficient funds in the applicable deposit account, an outstanding stop payment order or otherwise. 
  

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 (e) With respect to any Deposit that has a negative balance as of the close of business
on the Closing Date due to an overdraft caused by Seller’s final payment and settlement, on or before the Closing Date, of one or more checks, drafts or other items drawn against such account, other than any Deposit account that has been
excluded as an asset or liability being acquired or assumed under the terms of this Agreement (the “Overdraft Items”), which negative balance continues to exist at the close of business on the fifth day after the Closing Date after
exercise by Buyer of any setoff rights of which Buyer is aware, Buyer shall be entitled to reimbursement in immediately available funds from Seller for the amount of any such negative balance of which Buyer gives Seller notice within fifteen
(15) days after the Closing Date. Thereafter, Buyer shall continue as Seller’s agent, for a period of sixty (60) days after the Closing Date, or such shorter period as Seller shall request, to assert set off rights and promptly
forward the amount set off to Seller in immediately available funds. Buyer shall immediately deliver to Seller all Overdraft Items in Buyer’s possession (if any) for which it demands reimbursement and any payments or amounts received in respect
thereof from time to time, and Seller shall be vested with all rights, title and interest in, to and in connection with such Overdraft Items which Buyer otherwise would have had, and Seller shall be entitled to enforce and collect all rights,
remedies, claims, and causes of action against all persons and entities, including without limitation, the drawer and depositor(s) which Seller or Buyer shall have or would have had in connection with the Overdraft Item. 
 (f) Seller and Buyer shall make arrangements to provide for the daily settlement with immediately available funds by Seller of checks,
drafts, withdrawal orders and returns presented and paid by Buyer for the period between the Closing Date and sixty (60) days following the Closing Date drawn on or chargeable to accounts retained by Seller; provided however,
Buyer shall be held harmless and indemnified by Seller for acting in accordance with such arrangements. Seller shall be responsible for any costs incurred for courier or overnight shipping of information related to the daily settlements. At any time
prior to the expiration of the sixty (60) days referenced herein, Buyer shall discontinue such payments on behalf of Seller upon written request by Seller. Any checks, drafts, withdrawal orders and returns presented to Buyer following the
expiration of the sixty (60) day period, shall be returned by Buyer. 
 (g) Seller, at its expense, shall notify all
Automated Clearing House (“ACH”) originators of the transfers and assumptions and retention of deposits made pursuant to this Agreement; provided however that Buyer may, at its option, notify all such originators itself (on
behalf of Seller), also at Seller’s expense. For the sixty (60) day period immediately following the Closing Date, Buyer will, without any obligation to investigate the accuracy of such request or the balance in the accuracy of such
request or the balance in the underlying account, honor all ACH items related to accounts not assumed under this Agreement that are routed or presented to Buyer, and Seller will reimburse Buyer for all such ACH payments on a daily basis. Buyer will
not charge any fee to Seller for honoring such items and will electronically transmit such ACH to Seller. If Seller cannot receive such electronic transmissions, Buyer will make available to Seller, at Buyer’s operation center, receiving items
from the ACH tapes containing such ACH data. Following the sixty (60) day period referenced herein, Buyer will not honor any ACH item presented to Buyer unless Seller has requested that Buyer extend the time for clearing ACH items. Upon such
request, in the event that Buyer agrees to such an extension of time, Seller shall 

  

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pay Buyer a One Dollar ($1.00) fee per transaction cleared during the extension period and Buyer and Seller must agree, in writing, to the duration period;
provided however, any extension period will not be greater than sixty (60) days. If no extension period is agreed to by the Parties, items mistakenly routed or presented to Buyer after the sixty (60) day period will be returned to the
presenting party. At any time prior to the initial sixty (60) days or prior to the ending date of any extension period, Buyer shall discontinue honoring ACH items upon the written request of Seller. 
 (h) On the Closing Date, Seller shall provide Buyer with a written listing of each stop payment order, tax lien, levy, garnishment,
pledge, guardianship agreement, or other hold or restriction then in effect with respect to any of the Deposits (the “Holds”), and Buyer shall honor and comply with the terms of all valid Holds described in the above list. If, following
receipt of such list, Buyer makes any payment in violation of any such Hold, then it shall be solely liable for such payment and shall indemnify, hold harmless, and defend Seller from and against all claims, losses and liabilities, including
reasonable attorneys’ fees and expenses, arising out of any such payment. In the event that Buyer shall make any payment in violation of a Hold initiated prior to the Closing Date but not reflected in the above list, then Seller shall be solely
liable for such payment and shall indemnify, hold harmless and defend Buyer from and against all claims, losses, and liabilities, including reasonable attorneys’ fees and expenses, arising out of any such payment. 
 (i) On the Closing Date, Seller shall cycle, prepare and pay all accrued interest for each checking, savings or money market account
constituting a Deposit for which there has been any activity (other than the accrual of interest) between the last statement prior to Closing and the close of business on the Closing Date, for the period from the date of the last statement to and
including the Closing Date. Seller shall mail such closing statements, within a reasonable time following the Closing Date and provide Buyer with a copy. Interest on time deposits shall be accrued and included in the data conversion files.

 (j) Prior to the Closing Date, Seller and Buyer shall establish a mutually agreeable post-conversion trailing activity
process for settlement of converted account activities relating to trailing transactions. 
 7.3 Transitional Matters Concerning
Loans. Buyer, at its expense, will issue new coupon or payment books for the Loans and will instruct customers to destroy any coupons furnished by Seller; Buyer will also notify customers of any applicable change in terms and provide
Buyer’s information for payment remittance. For a period of sixty (60) days following the Closing, Seller will forward to Buyer on a daily basis, all loan payments received by Seller, in the form received by Seller. After the sixty day
period, Seller will forward any loan payments received on a weekly basis. 
  

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 7.4 Transfer of Books and Records. As soon as commercially reasonable following the Closing
Date, Seller shall provide the following documents which are in possession of Seller in connection with the Branches (the “Books and Records”): 
 (a) Loan Documents and Records: 
 (i) Originals (or in alternative form, if originals
are unavailable) of all documents retained by Seller in its Ordinary Course of Business evidencing or supporting each Loan, including recorded mortgages and deeds of trust, recorded assignments, promissory notes, loan applications, loan closing
statements, extension agreements, financing statements, security agreements, loan agreements, guaranties and guaranty agreements, loan commitments, letters of credit, title insurance commitments and policies, environmental survey reports, flood
certifications, borrower financial statements, motor vehicle and trailer titles, appraisals, evidence of receipt by the debtor or mortgagor of disclosure statements; and 
 (ii) An electronic database (or paper records, if an electronic database is not available) reflecting the payment history, balances and
other relevant information respecting all Loans, and payment histories with respect to all loans made by Branches which were paid off within either (A) the period for which such records have been maintained in an electronic format by Seller or
(B) the five year period preceding the Closing Date, whichever period is less. 
 (b) Deposit Records: Originals
(or an alternative form, if originals are unavailable) of all documents retained by Seller in its Ordinary Course of Business evidencing or supporting each Deposit, including signature cards, taxpayer identification number certifications, deposit
account agreements, account opening documentation, and trust or other legal documentation gathered as supporting evidence of authorization to establish a Deposit account. 
 (c) Other Records: Originals (or an alternative form, if originals are unavailable) of all documents retained by Seller in its
Ordinary Course of Business that may be reasonably related to the Acquired Assets or the operation of the Branches that are located on the Branch premises either in paper or electronic form, including investment customer records, safe deposit
records, currency transaction reports, suspicious activity reports, and debit card transaction records. 
 (d) Buyer Review
of Records: Within sixty (60) days of receipt of such records by Buyer, Buyer shall notify Seller of any deficiencies in the information provided. Seller will cure such deficiencies at Seller’s expense. For requests more than sixty
(60) days after Seller has provided such records to Buyer, Seller will permit Buyer, for reasonable cause, at Buyer’s expense, to examine, inspect, copy and reproduce files, documents or records retained by Seller relating to the assets
and liabilities transferred under this Agreement. 
 (e) Form of Records: It is understood that some of Seller’s
documents and records may be available only in the form of photocopies, file copies or other non-original and non-paper media. 
 7.5
Electronic Records, Conversion, and Servicing. 
 (a) Buyer and Seller shall cooperate and use their
commercially reasonable efforts to convert Seller’s electronic data (including data delivered pursuant to ancillary 

  

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delivery channels, for example internet banking and bill pay and debit card) regarding the Deposits and Loans to an electronic file format mutually agreeable
to both Parties on the Closing Date. Seller shall provide to Buyer within three (3) Business Days of the date of this Agreement a full set of deconversion data files from the loan, deposit, CIF, and other application systems processed on
CBS/Signature and in the native CBS/Signature file format. 
 (b) Buyer shall service customer account inquiries and other
third party requests for historical information owned by Seller and transferred to Buyer in a physical or electronic form on or after the Closing Date (the “Transferred Records”). 
 (c) Each party to this Agreement agrees to cooperate with the other party in responding to any reasonable request for information
regarding or contained in the Books and Records. Buyer shall make available the Transferred Records and Seller shall make available the retained records, for inspection by the other party, as applicable, during normal business hours of each, after
reasonable prior notice, and each party may, at their respective expense, have copies made of excerpts from the retained records or the Transferred Records, as each may deem necessary. Provided however that the Requesting Party shall be responsible
for any expenses relating to such request, including reasonable research fees charged by the other Party. 
 (d) Buyer and
Seller each agrees to permit the Governmental Bodies with authority over Buyer or Seller, as the case may be, to access the Books and Records of which Buyer or Seller has custody, after the Closing Date, and to use, inspect, make extracts from or
request copies of any such records in the manner and to the extent requested, and to duplicate, in the discretion of such Governmental Bodies, any record in the form of microfilm or microfiche pertaining to such Books and Records. 
 (e) Buyer shall not destroy any of the Transferred Records unless Buyer complies with the retention requirements of applicable law or it
receives the prior consent of Seller. Seller shall not destroy, or allow the destruction of any of the retained records, unless Seller complies with the retention requirements of applicable law or it receives the prior consent of Buyer. If requested
by Seller, the Transferred Records shall be delivered to Seller in lieu of being destroyed. 
 (f) Seller shall provide
physical access to space within the Branch facilities to Buyer, at least 30 days prior to the Closing Date for equipment staging inside the Branch relating to the deconversion; such access not to be unduly disruptive to the Branch. 
 7.6 Tax Reporting Obligations. Seller and Buyer agree that each party shall be solely responsible for providing to the Internal Revenue
Service and to each depositor, other holder of a Assumed Liability or customer, to the extent required by law, Forms 1098, 1099 INT, 1099R and 5498 and other applicable reporting forms with respect to each of the Assumed Liabilities and Acquired
Assets for the period during which Seller or Buyer, as applicable, administers such Assumed Liabilities and Acquired Assets during 2009. 
 7.7 Credit Life Insurance Refunds. Seller, or its successor, agrees to refund to Buyer the portion of premiums on the accident and health insurance and/or credit life insurance (the 

  

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“Insurance”) that may be required to be refunded by banking and insurance regulations on the Loans transferred by Seller to Buyer upon presentation
on a monthly basis by Buyer of such premium refunds. This Section 7.7 shall survive until all Loans upon which the Insurance has been purchased shall mature. Buyer shall have all legal rights under Missouri law or Texas law, as applicable,
including the right to recoup legal fees incurred, in collecting such funds from Seller or its successor. 
 7.8 Non-Solicitation of
Employees. From the date hereof until the Closing Date, Seller and its Affiliates shall not relocate, or agree to relocate, any Potential Employee to another branch or office of Seller or any affiliate of Seller unless Buyer has notified
Seller that Buyer does not intend to make an offer of employment to such Potential Employee. From and after the Closing, and for a period of four (4) years following the Closing Date, Seller and its Affiliates and their respective successors
and assigns shall not directly or indirectly hire any Retained Employee, without the prior consent of Buyer, unless such person’s employment was terminated by Buyer without cause. 
 7.9 Non-Solicitation of Business. In consideration of the purchase of Acquired Assets and assumption of Assumed Liabilities by Buyer,
neither Seller nor its Affiliates (including the directors, officers, employees or principal shareholders), successors or assigns will, for a period of four (4) years after the Closing Date, solicit or service, on behalf of itself or others,
deposits, loans, brokerage or other business from customers whose Deposits are assumed or whose Loans, safe deposit, Fiduciary Account, or any other business are acquired by Buyer hereunder; provided, however, that nothing contained in this
Section 7.9 shall be deemed to prohibit general solicitations in major metropolitan (i) newspapers, (ii) television or (iii) radio and not specifically directed or targeted to customers of the Branches, but no direct mail or
local market solicitation or advertising shall be permissible. Notwithstanding the provisions of this Section 7.9, Seller or any Affiliate may (X) continue to engage in all customary communications, including distribution of loan
solicitations and loan promotional materials, with and service any former customers of the Branches with whom Seller or any Affiliate maintains a banking, lending, brokerage or other financial relationship on the date hereof not prohibited by the
terms of this Agreement after the Closing Date, (Y) maintain an office and employees for the purposes of servicing non-performing loans originated prior to the date of this Agreement and that are not Loans (which may include renewing, extending
the maturity of, or restructuring such loans), and servicing deposits of the Branches that are excluded as Deposits, and (Z) maintain an office and employees with respect to any Branch, which Buyer has excluded under Section 6.15 or 6.19
and is not able to acquire the Deposits of which on the Closing Date due to regulatory requirements. 
 7.10 Covenant Not to
Compete. 
 (a) From and after the Closing, and for a period of four (4) years following the Closing Date, Seller
and its Affiliates, successors or assigns shall not, and shall not enter into any agreement to, acquire, lease, purchase, own, operate or use any building, office or other facility or premises located within Dallas-Fort Worth-Arlington, Texas
Metropolitan Statistical Area, the Austin-Round Rock, Texas Metropolitan Statistical Area, the San Antonio Metropolitan Statistical Area or the Houston-Sugar Land-Baytown, Texas Metropolitan Statistical Area for the purpose of making loans,
accepting deposits, cashing checks or engaging in all of the businesses in which the Branches are engaged at the Closing Date, including without limitation brokerage, investment and insurance services. 

  

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Notwithstanding the foregoing, the Parties agree that (i) Seller may maintain an office and employees for the purposes of servicing non-performing loans
originated prior to the date of this Agreement and that are not Loans (which may include renewing, extending the maturity of, or restructuring such loans), and servicing deposits of the Branches that are excluded as Deposits, (ii) maintain an
office and employees with respect to any Branch, which Buyer has excluded under Section 6.15 or 6.19 and is not able to acquire the Deposits of which on the Closing Date due to regulatory requirements, and (iii) the prohibitions contained
in this Section 7.10 shall not be applicable to a Person that is not an Affiliate of the Seller on the date hereof that becomes the successor in interest to Seller after the Closing Date. Nothing contained in this Section 7.10 shall be
construed to prevent Buyer from seeking and recovering from Seller damages sustained by it as a result of any breach or violation by Seller of the covenants or agreements contained herein. 
 (b) It is recognized and hereby acknowledged by the Parties hereto that a breach or violation by Seller of any or all of the covenants and
agreements contained in this Section 7.10 may cause irreparable harm and damage to Buyer in a monetary amount which may be virtually impossible to ascertain. As a result, Seller recognizes and hereby acknowledges that Buyer shall be entitled to
an injunction from any court of competent jurisdiction enjoining and restraining any breach or violation by Seller or any of its Affiliates, partners or agents, either directly or indirectly, and that such right to injunction shall be cumulative and
in addition to whatever other rights or remedies Buyer may posses hereunder, at law or in equity. 
 (c) The restrictions
against competition set forth above are considered by the parties to be both reasonable and essential to protect the business and goodwill of the Branches being acquired by Buyer pursuant to this Agreement. If any such restriction is found by any
court of competent jurisdiction to be unenforceable because it extends for too long a period of time or over too broad a range of activities or over too large a geographic area, such restriction shall be interpreted and reformed to extend only over
the maximum period of time, range of activities or geographic area as to which it may be enforceable. 
 7.11 Legal Inquiries.
The Parties hereby agree to the following with respect to subpoenas and certain process matters: Following the Closing, Seller will handle and process all civil and criminal subpoenas, IRS summons, court-ordered or government or agency or regulatory
demands for documents and all similar legal notices or other information, and all notices, claims, demands of any kind from customers or third parties (collectively, “Subpoenas”) served on Seller prior to the Closing Date that relate to
the Acquired Assets. Following the Closing Date, each party shall use good faith efforts to promptly forward any such Subpoenas that relate to the Acquired Assets to the other party, as applicable, to the following addresses: Sterling Bank, Legal
Dept., 10260 Westheimer, Houston, Texas 77042; and shall also send a facsimile of same to 713-507-2900, Attention Legal Dept, and First Bank, Deposit Services, 600 James S. McDonnell Blvd., Hazelwood, Missouri 63042, Mail Stop M1-199-042, Attention
Kurt Eisleben. 
 ARTICLE 8 
 CONDITIONS TO OBLIGATION TO CLOSE 
 8.1 Conditions to Obligation of Buyer. Buyer’s obligation to purchase
the Acquired Assets and assume the Assumed Liabilities as provided in Article 2 and to take the other actions required to be taken by Buyer at the Closing is subject to the satisfaction, at or prior to the Closing, of each of the following
conditions (any of which may be waived by Buyer, in whole or in part): 
 (a) Buyer and Seller shall have procured all of the
Consents required to consummate the Acquisition and all applicable waiting periods (and any extensions thereof) shall have expired or otherwise been terminated, unless such regulatory approval imposes any condition or requirement which in the
reasonable judgment of Buyer would materially adversely impact the economic or business benefits of the transactions contemplated by the Agreement or otherwise would in the reasonable judgment of the Buyer be so burdensome as to render inadvisable
the consummation of the transactions contemplated by the Agreement. 
  

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 (b) The representations and warranties of Seller set forth in Article
3 and Article 4 above shall be true and correct in all material respects on the date of this Agreement and at and as of the Closing Date (except for representations and warranties made as of a specific date and except for such breaches of
representations and warranties as of the date of this Agreement that have been cured on or prior to the earlier to occur of (i) the 30th day after written notice to the effect of any breach, and (ii) the second calendar day prior to the Closing Date). 

(c) Seller shall have performed and complied with all of its covenants hereunder through the Closing. 
 (d) Buyer shall have received all of the documents described in Section 9.1. 
 (e) No court or other governmental authority of competent jurisdiction shall have enacted, issued, promulgated, enforced or entered any
statute, rule, regulation, judgment, decree, injunction or other order (whether temporary, preliminary or permanent) which is in effect and prohibits or makes illegal the consummation of the transaction contemplated hereby. 
 (f) Buyer shall have received Landlord Consents with respect to the Leases, which Landlord Consents must be in form and substance
reasonably satisfactory to Buyer. 
 (g) There shall not have occurred a Seller Material Adverse Effect
that has not been cured on or prior to the earlier to occur of (i) the 30th day
after written notice to the effect of any breach, and (ii) the second calendar day prior to the Closing Date). 
 (h)
Buyer shall have received the funds described in Section 9.1 below. 
 8.2 Conditions to Obligation of Seller. The
obligation of Seller to consummate the transactions to be performed by it in connection with the Closing is subject to satisfaction of the following conditions: 
 (a) Buyer and Seller shall have procured all of the Consents required to consummate the Acquisition and all applicable waiting periods
(and any extensions thereof) shall have expired or otherwise been terminated. 
  

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 (b) The representations and warranties of Buyer set forth in Article
5 above shall be true and correct in all material respects on the date of this Agreement and at and as of the Closing Date(except for such breaches of representations and warranties as of the date of this Agreement that have been cured on or prior
to the earlier to occur of (i) the 30th day after written notice to the effect
of any breach, and (ii) the second calendar day prior to the Closing Date). 
 (c) Buyer shall have performed and
complied with all of its covenants hereunder in all respects through the Closing. 
 (d) Seller shall have received the funds,
if any, and documents described in Section 9.2 below. 
 ARTICLE 9 
 ITEMS TO BE DELIVERED AT OR PRIOR TO CLOSING 
 9.1 By Seller.
Seller shall execute and/or deliver, as applicable, to Buyer prior to or at the Closing: 
 (a) A certificate duly executed by
an authorized officer of Seller stating that as of the Closing Date, each of the conditions specified in Section 8.1(a) through Section 8.1(c) are satisfied in all respects; 
 (b) A Bill of Sale with respect to the Acquired Assets in a form mutually acceptable to Buyer and Seller; 
 (c) Special warranty deeds conveying the Owned Real Property, together with such instruments and documentation that may reasonably be
requested to transfer the Owned Real Property in a form mutually acceptable to Buyer and Seller; 
 (d) Title policies in the
Fair Market Value of the Owned Real Property and the Ground Leased Premises in accordance with the procedures set forth in Section 6.13; 
 (e) Assignment of the Leases in a form mutually acceptable to Buyer and Seller; 
 (f) Such
other instruments or documents as may be reasonably requested by Buyer in order to effect or carry out the intent of this Agreement; 
 (g) Contents, keys, documents and other records maintained at the Branches directly pertaining to the safe deposit boxes maintained at the Branches (whether rented or unrented) as the same may exist as of the close of business on the
Closing Date; 
 (h) All funds required to be paid to Buyer pursuant to the terms of this Agreement in immediately available
funds; and 
 (i) For Loans that are a portion of the Acquired Assets: 
 (i) The Limited Power of Attorney, attached hereto as Exhibit B; and 
  

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 (ii) Endorsement of, or allonge for, the applicable notes; and 
 (iii) Execution of any additional assignment documents provided by Buyer pursuant to Section 6.8(b). 
 9.2 By Buyer. Buyer shall deliver to Seller at or prior to the Closing: 
 (a) Any funds required to be paid to Seller pursuant to the terms of this Agreement in immediately available funds; 
 (b) A certificate duly executed by an authorized officer of Buyer stating that, as of the Closing Date, each of the conditions specified
in Section 8.2(a) through Section 8.2(c) is satisfied in all respects; and 
 (c) Such other instruments as may be
reasonably requested by Seller in order to effect or carry out the intent of this Agreement. 
 ARTICLE 10 
 TERMINATION 
 10.1 Termination of
Agreement. 
 (a) The Parties may terminate this Agreement by mutual written consent at any time prior to the Closing
Date. 
 (b) Buyer may terminate this Agreement by giving written notice to Seller any time prior to the
Closing Date (i) in the event Seller has breached any representation, warranty, or covenant contained in this Agreement in any material respect (except for a breach of representation or warranty contained in Section 4.10(a) through (d), as
to which Buyer’s sole remedies shall be as set forth in Section 11.7), Buyer has notified Seller of the breach, and the breach has continued without cure for a period of thirty (30) days after the notice of breach, (ii) if the
Closing shall not have occurred on or before December 31, 2009, by reason of the failure of any conditions precedent under Section 8.1 (unless the failure results primarily from Buyer breaching any representation, warranty, or covenant
contained in this Agreement); or (iii) there shall have occurred a Seller Material Adverse Effect and such Seller Material Adverse Effect has not been cured on or before the earlier to occur of (Y) the 30th calendar day following receipt by Seller of written notice from Buyer of a Seller Material Adverse Effect, and
(Z) the second calendar day prior to the Closing Date. 
 (c) Seller may terminate this Agreement by giving written
notice to Buyer at any time prior to the Closing Date (i) in the event Buyer has breached any representation, warranty, or covenant contained in this Agreement in any material respect, Seller has notified Buyer of the breach, and the breach has
continued without cure for a period of thirty (30) days after the notice of breach; (ii) if the Closing shall not have occurred on or before December 31, 2009, by reason of the failure of any condition precedent under Section 8.2
hereof (unless the failure results primarily from Seller breaching any representation, warranty, or covenant contained in this Agreement), or (iii) there shall have occurred a Buyer Material Adverse Effect and such Buyer Material Adverse Effect
has not 

  

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been cured on or before the earlier to occur of (Y) the 30th calendar day following receipt by Seller of written notice thereof from Buyer of a Buyer Material Adverse Effect, and (Z) the
second calendar day prior to the Closing Date. 
 10.2 Effect of Termination. If any Party terminates this Agreement pursuant
to Section 10.1 above, all rights and obligations of the Parties hereunder shall terminate without any Liability of any Party to any other Party (except for any Liability of any Party then in breach); provided, however, that the provisions
contained in Section 6.3 (confidentiality) shall survive termination. 
 ARTICLE 11 
 REMEDIES FOR BREACH OF THIS AGREEMENT 
 11.1 Survival. Unless otherwise provided herein, all of the representations, warranties, covenants and obligations in this Agreement shall survive the Closing for a period of two (2) years, except
for those representations and warranties contained in Section 4.9 herein, which shall survive the Closing Date for a period of eight (8) years and except for Seller’s covenants contained in Sections 7.8, 7.9 and 7.10 herein which
shall survive the Closing Date for a period of four (4) years. Seller will have no Liability (for indemnification or otherwise) with respect to any representation or warranty, or covenant or obligation to be performed and complied with prior to
the Closing Date unless on or before the second anniversary of the Closing Date, except with respect to claims for breaches of representations and warranties contained in Section 4.9 herein, the eighth (8th) anniversary of the Closing Date and with respect to breaches of Seller’s covenants contained in Sections
7.8, 7.9 and 7.10 herein, the fourth (4th) anniversary of the Closing Date, and
in any case promptly following receipt of notice or knowledge of any claim, Buyer notifies Seller in writing of a claim specifying the factual basis of that claim in reasonable detail to the extent then known by Buyer. Buyer will have no Liability
(for indemnification or otherwise) with respect to any representation or warranty, or covenant or obligation to be performed and complied with prior to the Closing Date, unless on or before the second anniversary of the Closing Date, and in any case
promptly following receipt of notice or knowledge of any claim, Seller notifies Buyer in writing of a claim specifying the factual basis of that claim in reasonable detail to the extent then known by Seller. 
 11.2 Indemnification for Benefit of Buyer. In the event Seller breaches (or in the event any third-party unrelated to Buyer alleges facts
that, if true, would mean Seller has breached) any of its representations, warranties, and covenants contained herein, then Seller will indemnify and hold harmless Buyer for, and will pay to Buyer the amount of, any Losses arising, directly or
indirectly, from or in connection with (a) any breach of any representation, warranty, covenant, or obligation of Seller pursuant to this Agreement, (b) all claims, Losses, Liabilities, demands and obligations, including reasonable
attorneys’ fees and expenses, and all real estate taxes, intangibles and franchise taxes, sales and use taxes, social security and unemployment taxes, all accounts payable and operating expenses (including salaries, rents and utility charges)
and which arise, or are claimed or demanded on or after the Closing Date, or that arise out of any Proceedings commenced on or after the Closing Date and that relate in whole or in part to operations, conditions, events or activities at the Branches
prior to the Closing Date and with respect to latent conditions, even if continuing on or after the Closing Date, (c) any liability of Seller or any of its Affiliates not expressly assumed by Buyer pursuant hereto; (d) any check or other
instrument drawn on or deposited into a Branch Deposit account prior to the Closing Date upon which a 

  

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forgery (signature or endorsement) or alteration claim is asserted against Buyer; (e) any chargeback occurring after the Closing Date on a Deposit
account to the extent that such chargeback exceeds the funds in the account on the date of such chargeback but solely to the extent that such chargeback resulted from a violation of Seller’s expedited funds availability policy in effect on the
date such funds were deemed collected on the account (provided, that Buyer shall reimburse Seller for any sums so indemnified to the extent that Seller recoups any funds so charged back from subsequent deposits into the Deposit account so
transferred); or (f) the ownership or operation of the Branches or their business and properties on or prior to the Closing Date, but excluding all Assumed Liabilities. 
 11.3 Indemnification Provisions for Benefit of Seller. In the event Buyer breaches (or in the event any third-party alleges facts that, if
true, would mean Buyer has breached) any of its representations, warranties, and covenants contained herein, then Buyer agrees to indemnify and hold harmless Seller for, and will pay to Seller the amount of, any Losses arising, directly or
indirectly, from or in connection with any breach of any representation, warranty, covenant, or obligation of Buyer pursuant to this Agreement, and Buyer shall indemnify Seller for all claims, Losses, Liabilities, demands and obligations, including
reasonable attorneys’ fees and expenses, and all real estate taxes, intangibles and franchise taxes, sales and use taxes, social security and unemployment taxes, all accounts payable and operating expenses (including salaries, rents and utility
charges), that Seller may receive, suffer or incur in connection with operations and transactions occurring after the Closing Date and that involve the Branches, the assets transferred or the liabilities assumed pursuant to this Agreement; except to
the extent that indemnification would be required by Seller pursuant to Section 11.2. 
 11.4 Limitations on Indemnity:

 (a) Seller will have no Liability (for indemnification or otherwise) with respect to the matters described in
Section 11.2 until the total of all Losses with respect to such matters exceeds $150,000 in the aggregate (the “Loss Threshold”), at which point Seller will be obligated to indemnify Buyer from and against all such Losses relating
back to the first dollar. Buyer will have no Liability (for indemnification or otherwise) with respect to the matters described in Section 11.3 until the total of all Losses with respect to such matters exceeds the Loss Threshold, at which
point Buyer will be obligated to indemnify Seller from and against all such Losses relating back to the first dollar (provided that Losses arising from breaches of representations and warranties as to Loans excluded from the Acquisition or
repurchased by the Seller pursuant to the provisions of Section 11.7 shall not be included in the Loss Threshold). THE PARTIES SHALL HAVE NO OBLIGATIONS UNDER THIS ARTICLE 11 FOR ANY CONSEQUENTIAL LIABILITY THE INDEMNIFIED PARTY MAY SUFFER AS
THE RESULT OF ANY DEMAND, CLAIM OR LAWSUIT. 
 (b) A claim for indemnity pursuant to this Agreement may be
made by the claiming party at any time prior to twenty-four (24) months after the Closing Date, or for claims related to Environmental Laws, eight (8) years after the Closing Date, or with respect to breaches of Seller’s covenants
contained in Sections 7.8, 7.9 and 7.10 herein, the fourth (4th) anniversary of
the Closing Date, by the giving of written notice thereof to the other party. Such written notice shall set forth in reasonable detail the basis upon which such claim for indemnity is made. In the event that any such claim is made within such

  

 Page 44 

 
prescribed twenty-four (24) month period, or for those claims relating to Environmental Laws, eight (8) year period, the indemnity relating to such
claim shall survive until such claim is resolved. Claims not made within such twenty-four (24) month period, eight (8) year period or four (4) year period, as applicable shall cease, and no indemnity shall be made therefore, except
for claims relating to the title to the Acquired Assets, which claims may be made at any time and for which the obligation for indemnity shall survive indefinitely. 
 11.5 Third Party Claims 
 (a) If any third party shall notify any Party (the
“Indemnified Party”) or the Indemnified Party obtains knowledge with respect to any matter (a “Third Party Claim”) which may give rise to a claim for indemnification against any other Party (the “Indemnifying Party”)
under this Article 11, then the Indemnified Party shall promptly (and in any event within five Business Days after receiving notice of the Third Party Claim) notify each Indemnifying Party thereof in writing; provided that the failure to so notify
shall not relieve the Indemnifying Party of its obligations except to the extent that the Indemnifying Party is actually and materially prejudiced thereby. 
 (b) Any Indemnifying Party will have the right to assume and thereafter conduct the defense of the Third Party Claim with counsel of its choice reasonably satisfactory to the Indemnified Party; provided,
however, that the Indemnifying Party will not consent to the entry of any judgment or enter into any settlement with respect to the Third Party Claim without the prior written consent of the Indemnified Party (not to be withheld unreasonably)
unless the judgment or proposed settlement involves only the payment of money damages and does not impose an injunction or other equitable relief upon the Indemnified Party and does not relate to a claim under or related to any Environmental Laws.

 (c) Unless and until an Indemnifying Party assumes the defense of a Third Party Claim as provided in Section 11.5(b),
the Indemnified Party may defend against the Third Party Claim in any manner it reasonably may deem appropriate. 
 (d) In no
event will the Indemnified Party consent to the entry of any judgment or enter into any settlement with respect to the Third Party Claim without the prior written consent of the Indemnifying Party. 
 11.6 Indemnification Procedures. Promptly following receipt of notice or knowledge of any claim, the Indemnified Party shall notify
the Indemnifying Party in writing of the claim specifying the factual basis of that claim in reasonable detail to the extent then known by the Indemnified Party. If the Indemnifying Party objects to the claim for indemnification, written notice of
such objection shall be delivered to the Indemnified Party within twenty (20) days of receipt of the written claim for indemnification. If the Parties are unable to reach an agreement regarding the claim within thirty (30) days after
receipt by the Indemnified Party of the written notice of objection (or such longer period as may be mutually agreed in writing by the Parties). 
 11.7 Breach of Representation Relating to Loans. In the event Seller has breached a representation or warranty (determined without regard to any materiality or Knowledge 

  

 Page 45 

 
qualifications contained in or otherwise applicable to any such representation or warranty) in respect of any Loan or Commitment and such breach is
discovered prior to the Closing Date or within the ninety (90) calendar day period following the Closing Date, Buyer may exclude in its sole discretion from the Loans to be purchased any such Loan and from the Commitments to be assumed any such
Commitment prior to the Closing Date or put back to Seller any such Loan or Commitment on or before the 90th day subsequent to the Closing Date. For any Loan or Commitment put back to Seller, Seller shall pay to Buyer the value attributed to such
Loan as of the Closing Date plus any interest accrued since the Closing Date minus any principal and/or interest payments received by Buyer with respect to such Loans after the Closing Date. For purposes of this Section 11.7, Loans shall not
include overdrafts. The value of a Commitment that is put back to Seller shall be zero. In the event any such Loan or Commitment is excluded from the Acquired Assets prior to the Closing Date, Seller shall not be deemed to be in breach of such
representations or warranty for purposes of Sections 8.1(b) or 10.1(b) with respect to such Loan or Commitment. Breaches of representations and warranties for Loans and Commitments discovered after the 90th calendar day following the Closing Date will be subject to the provisions of Sections 11.1 through 11.6 above.

 ARTICLE 12 
 MISCELLANEOUS 
 12.1 Governing Law; Venue. This Agreement shall be governed by and construed in accordance
with the domestic laws of the State of Texas without giving effect to any choice or conflict of law provision or rule (whether of the State of Texas or any other jurisdiction) that would cause the application of the laws of any jurisdiction other
than the State of Texas. 
 12.2 Successors and Assigns; No Third-Party Rights. No Party may assign any of its rights under
this Agreement without the prior consent of the other Parties. This Agreement will apply to, be binding in all respects upon, and inure to the benefit of the successors and permitted assigns of the Parties. Nothing expressed or referred to in this
Agreement will be construed to give any Person other than the Parties any legal or equitable right, remedy, or claim under or with respect to this Agreement or any provision of this Agreement. This Agreement and all of its provisions and conditions
are for the sole and exclusive benefit of the Parties to this Agreement and their successors and permitted assigns. 
 12.3 Entire
Agreement; Amendment. This Agreement and the other documents delivered pursuant to this Agreement at the Closing and the Non-disclosure Agreement constitute the full and entire understanding and agreement between the Parties with regard to
the subjects hereof and thereof, and supersede all prior agreements and merge all prior discussions, negotiations, proposals and offers (written or oral) between them, and no Party shall be liable or bound to any other Party in any manner by any
warranties, representations or covenants except as specifically set forth herein or therein. In the event of a conflict between the terms and provisions of the Non-disclosure Agreement and the terms and provisions of this Agreement, the terms and
provisions of this Agreement shall be controlling. 
  

 Page 46 

 12.4 Notices. All notices, requests, demands, claims, and other communications hereunder
shall be in writing and shall be given by registered or certified mail, return receipt requested, postage prepaid, by telecopier or by national overnight delivery service, and addressed to the intended recipient as set forth below: 
  

			
	If to Seller:	  	With a Copy to:
		
	Terrance M. McCarthy	  	John S. Daniels
	President	  	Attorney at Law
	First Bank	  	3333 Lee Parkway
	135 N. Meramec	  	Dallas, Texas 75219
	Clayton, Missouri 63105	  	Facsimile (214) 889- 5196
	Facsimile (314) 854-5690	  	
		
	Peter D. Wimmer	  	
	Senior Vice President and General Counsel	  	
	First Bank	  	
	135 N. Meramec, Suite 410	  	
	Clayton, Missouri 63105	  	
	Fax: (314) 854-4617	  	

  

			
	If to Buyer	  	With a Copy to:
		
	J. Downey Bridgwater	  	Annette L. Tripp
	Chairman of the Board, President and Chief Executive Officer	  	Sutherland Asbill & Brennan LLP
	Sterling Bank	  	2 Houston Center
	10260 Westheimer	  	909 Fannin, Suite 2200
	Houston, Texas 77042	  	Houston, TX 77010
	Facsimile: (713) 466-3117	  	Facsimile (713) 654-1301
		
	James W. Goolsby, Jr.,	  	
	General Counsel	  	
	Sterling Bank	  	
	10260 Westheimer	  	
	Houston, Texas 77042	  	
	Facsimile: (713) 466-3117	  	

 Any notice given in the manner aforesaid shall be deemed to have been served, and shall be effective for all
purposes hereof on the date of its receipt by the party to be notified. Any Party may change the address to which notices, requests, demands, claims, and other communications hereunder are to be delivered by giving the other Party notice in the
manner herein set forth. 
 12.5 Amendments and Waivers. Except as expressly provided in this Agreement, neither this Agreement
nor any term hereof may be amended, waived, discharged or terminated other than by a written instrument signed by the party against whom enforcement of any such amendment, waiver, discharge or termination is sought. No waiver by any Party of any
default, misrepresentation, or breach of warranty or covenant hereunder, whether intentional or not, shall be deemed to extend to any prior or subsequent default, misrepresentation, or breach of warranty or covenant hereunder or affect in any way
any rights arising by virtue of any prior or subsequent such occurrence. 
  

 Page 47 

 12.6 Counterparts. This Agreement may be executed in any number of counterparts, each of
which shall be enforceable against the parties actually executing such counterparts, and all of which together shall constitute one instrument. A signature on a counterpart may be a facsimile or an electronically transmitted signature, and such
signature shall have the same force and effect as an original signature. 
 12.7 Severability. In the event that any provision
of this Agreement becomes or is declared by a court of competent jurisdiction to be illegal, unenforceable or void, this Agreement shall continue in full force and effect without said provision. 
 12.8 Titles and Subtitles. The titles and subtitles used in this Agreement are used for convenience only and are not considered in
construing or interpreting this Agreement. 
 12.9 Construction. The Parties have participated jointly in the negotiation and
drafting of this Agreement. In the event an ambiguity or question of intent or interpretation arises, 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 of the provisions of this Agreement. All plural nouns and pronouns shall be deemed to include the singular case thereof where the context requires, and vice versa. All pronouns shall be gender neutral
unless the context otherwise requires. Any reference to any federal, state, local, or foreign statute or law shall be deemed also to refer to all rules and regulations promulgated thereunder, unless the context otherwise requires. The word
“including” shall mean including without limitation. 
 12.10 Expenses. Other than expressly provided herein, each
Party will bear its respective expenses incurred in connection with the preparation, execution, and performance of this Agreement, filing any regulatory notices or applications, and the Acquisition, including all fees and expenses of agents,
representatives, counsel, and accountants. In the event of termination of this Agreement, the obligation of each Party to pay its own expenses will be subject to any rights of such Party arising from a breach of this Agreement by another Party.

 12.11 Next Business Day. In the event that either Party is required by this Agreement to perform any action or delivery on a
Saturday, Sunday or any holiday observed by the Federal Reserve, such Party may perform the action or delivery on the following Business Day. 
 [Signature Page Follows] 
  

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 IN WITNESS WHEREOF, the Parties hereto have executed this Agreement on the date first above written. 

 

			
	STERLING BANK
		
	By:	 	 /s/ J. Downey Bridgwater

		 	J. Downey Bridgwater
		 	Chairman of the Board, President and Chief Executive Officer
	
	FIRST BANK
		
	By:	 	 /s/ Terrance M. McCarthy

		 	Terrance M. McCarthy
		 	Chairman, President and Chief Executive OfficerU.S. Geothermal : Exhibit 10.36 - Prepared by TNT Filings Inc.

Exhibit 10.36

AMENDED AND RESTATED

OPERATING AGREEMENT

THIS AMENDED AND RESTATED OPERATING AGREEMENT of RAFT RIVER ENERGY I LLC, a Delaware limited liability company (the “Company”), is dated this 9th day of August, 2006 (the “Effective
Date”), and is effective as of the Effective Time (as defined herein), by and among the Company, RAFT RIVER I HOLDINGS, LLC, a Delaware limited liability company, in its capacity as a member (“Member A”), and U.S.
GEOTHERMAL INC., an Idaho corporation in its capacity as a member (“Member B”).

RECITALS

WHEREAS, the Company was formed by virtue of its Certificate of Formation filed with the Secretary of State of the State of Delaware on August 18, 2005;

WHEREAS, prior to the date hereof, the Company has been governed by the Operating Agreement of the Company, effective as of January 4, 2006 (the “Original Operating Agreement”), between Member B and the
Company; 

WHEREAS, the Company was formed for the sole purpose of engaging in the activities and transactions contemplated by the Project Documents, including to acquire, own, maintain, manage, operate, improve, develop, finance,
pledge, encumber, mortgage, sell, lease, dispose and otherwise deal with (publicly or privately and whether with unrelated third parties or with affiliated entities) phase I of a geothermal power generation project with 13 MW nameplate to be located
on the Site in the Raft River Geothermal Resource Area in Cassia County, Idaho (the “Project”);

WHEREAS, pursuant to a Membership Admission Agreement, by and among the Company, Member A and Member B (the “Admission Agreement”), Member A purchased 500 units in the Company on the terms and subject
to the conditions set forth in the Admission Agreement and was admitted to the Company as a member of the Company; and 

WHEREAS, the parties hereto desire for the Original Operating Agreement to be amended and restated as stated herein in order to, among other things, reflect the admission of Member A as a member of the Company and the
conversion, as of the Effective Time, of Member A’s 500 units in the Company into 500 Class A Units and Member B’s 500 units in the Company into 500 Class B Units, each having the rights and preferences set forth herein. 

NOW, THEREFORE, in consideration of the declarations herein contained, the Members and the Company agree as follows: 

AGREEMENT

ARTICLE I. 

ORGANIZATION OF COMPANY

Section 1.1 

Organization; Continuation; Compliance.

Pursuant to the Delaware Limited Liability Company Act, Title 6 Del. Code §18-101, et seq. (as it may be amended from time to time, the “Act”), the Company was formed on August 18, 2005 by virtue
of the filing of its Certificate of Formation with the Delaware Secretary of State. The parties hereby ratify the execution, delivery and filing of the Certificate with the Secretary of State of the State of Delaware by the Initial Member. The
Members hereby continue the Company as a limited liability company pursuant to the Act. Each of Member A and Member B shall continue as a member of the Company upon its execution of a counterpart signature page to this Agreement. The affairs of the
Company shall be governed by this Agreement and the laws of the State of Delaware. 

Section 1.2

Name.

The name of the Company is Raft River Energy I LLC, or such other name as the Managers may from time to time hereafter designate. 

Section 1.3

Property of the Company.

All business of the Company shall be conducted in the Company name. Company Property shall be deemed to be owned by the Company as an entity, and no Member or Manager, individually or collectively, shall have any
ownership interest in such Company Property or any portion thereof. Title to any or all Company Property may be held in the name of the Company or one or more nominees, as the Managers may determine. All Company Property shall be recorded as the
property of the Company on its books and records, irrespective of the name in which legal title to such Company Property is held. 

Section 1.4

Place of Business.

The address of the office at which all of the records of the Company shall be kept and principal place of business of the Company shall be 1509 Tyrell Lane, Suite B, Boise, Idaho 83706 or such other place or places as
may be determined by the Managers.

Section 1.5

Purpose.

The purpose of the Company shall be strictly limited to activities and transactions contemplated in the Recitals and all activities necessary, suitable, convenient or incidental thereto.

Section 1.6

Powers.

The Company shall possess and may exercise all of the powers and privileges granted by the Act or by any other Law of the State of Delaware or by this Agreement (if not
prohibited by the Act), together with any powers incidental thereto, so far as such powers and privileges are necessary, suitable or convenient to the conduct, promotion or attainment of the business purposes or activities of the Company.

Section 1.7

Registered Agent.

The Company’s registered office in the State of Delaware is located at Corporation Trust Center, 1209 Orange Street, in the City of Wilmington, County of New Castle, Delaware 19801. The registered agent of the
Company for service of process at such address is The Corporation Trust Company.

Section 1.8

Term of Existence.

The Company commenced upon the filing of its Certificate with the Secretary of State of the State of Delaware and shall continue indefinitely until such time as it shall be dissolved, wound up and terminated under the
provisions of Article XI hereof. 

Section 1.9

Liability to Third Parties.

Except as required by the Act, the debts, obligations and liabilities of the Company, whether arising in contract, tort or otherwise, shall be solely the debts, obligations and liabilities of the Company, and no Member,
Manager, officer, employee, representative or agent of the Company shall be obligated personally for any such debt, obligation or liability of the Company solely by reason of being a Member or acting as a Manager, officer, employee, representative
or agent of the Company.

Section 1.10

Separateness Covenants.

(a) 

The Company shall:

(i)  

Preserve its existence as an entity duly organized, validly existing
and in good standing under the laws of the State of Delaware;

	(ii) 

Not commingle Company Property with those of any Member;

(iii) 

Maintain books and records for the Company separate from any
other Person; 

(iv) 

Conduct the Company’s own business in its own name;

(v) 

Prepare its own financial statements;

(vi) 

Pay the Company’s own liabilities out of its own funds;

(vii) 

Observe all Company formalities expressly required by this
Agreement or the Act;

 

(viii) 

Maintain an arm’s-length relationship between the Company, on the one hand, and
each Member and any Person affiliated with any Member, on the other hand;

(ix) 

Not guarantee or become obligated for the debts of any other Person or hold out
the Company’s credit as being available to satisfy the obligations of other
Persons; 

(x) 

Not acquire obligations or securities of any Member; 

(xi) 

Use stationery, invoices, and checks for all material Company business that
separately identifies the Company;

(xii) 

Not pledge Company Property for the benefit of any other Person or make any
loans or advances to any other Person except in accordance with the terms of
this Agreement and/or the Project Documents;

(xiii) 

Identify the Company as a separate entity in all material written undertakings
with third parties; and 

(xiv) 

Correct any known misunderstanding as to its status as a separate entity.

(b) 

Nothing in Section 1.10(a) shall be construed as limiting, restricting or being breached by anything contemplated by Section 6.7 hereof. 

ARTICLE II. 

DEFINITIONS, RULES OF CONSTRUCTION

In addition to terms otherwise defined herein, the following terms are used herein as defined below: 

“Act” means the Delaware Limited Liability Company Act, and any successor statute, as amended from time to time.

“Admission Agreement” has the meaning set forth in the Recitals.

“Affiliate” means, when used with reference to a specific Person (or when not referring to a specific Person shall mean an Affiliate of a Member), any Person that, directly or indirectly, through one or
more intermediaries, controls, is controlled by or is under common control with such specific Person. 

“After-Tax Basis” means, for purposes of determining a Member’s after-tax return from its investment in the Company, the return the Member realizes from cash distributions from the Company
increased or decreased by increases or decreases in the Member’s Tax liability (or net Tax benefit) resulting from allocations of the Company’s Net Profits and Net Losses. Solely, for this purpose: (i) each Member shall be assumed to be
subject to Tax at the highest marginal Federal income tax rate applicable to corporations; (ii) each dollar
of Renewable Electricity Production Credits allocated to such Member shall be
treated as a dollar of cash distributed to the Member; and (iii) each Member
shall be deemed to fully utilize any Net Losses allocated to such Member in the
year in which such Net Losses are allocated. Member A’s determination of its After-Tax Basis, as certified in writing by its Tax Manager, shall be conclusive for purposes of this Agreement, absent manifest error. 

“Agreement” means this Amended and Restated Operating Agreement, which shall govern the operation of the Company and which may be amended or supplemented from time to time in writing only in accordance
with this Agreement.

“Applicable Law” means, in respect of any Person, all provisions of constitutions, laws, statutes, rules, regulations, treaties, directives, decrees, guidelines, orders and other determinations of any
governmental authority or regulatory or self-regulatory body applicable to such Person or any of its property, including without limitation, zoning ordinances and the requirements of all Environmental Laws, environmental permits, all disclosure and
other requirements of ERISA, the requirements of OSHA, and all orders, decisions, judgments and decrees of all courts and arbitrators in proceedings or actions to which the Person in question is a party or by which it or any of its property is
subject or bound. 

“Available Cash” means, for any fiscal period, the excess, if any, of (A) the sum of (1) all cash receipts of the Company during that fiscal period from whatever source and (2) any cash reserves of the
Company existing at the start of that fiscal period, less (B) the sum of (1) all cash amounts paid or payable (without duplication) in that fiscal period on account of any expenses of any type whatsoever incurred in connection with the
Company’s business (including, but not limited to, capital expenditures, operating expenses, taxes, amortization and interest on any debt of the Company), and (2) any cash reserves maintained consistent with the Operating Budget for the working
capital, capital expenditures and future needs of the Company.

“Bankruptcy” means, with respect to any Person, if such Person (i) makes an assignment for the benefit of creditors, (ii) files a voluntary petition in bankruptcy, (iii) is adjudged a bankrupt or
insolvent, or has entered against it an order for relief, in any bankruptcy or insolvency proceeding, (iv) files a petition or answer seeking for itself any reorganization, arrangement, composition, readjustment, liquidation or similar relief under
any statute, law or regulation, (v) files an answer or other pleading admitting or failing to contest the material allegations of a petition filed against it in any proceeding of this nature, (vi) seeks, consents to or acquiesces in the appointment
of a trustee, receiver or liquidator of the Person or of all or any substantial part of its properties, or (vii) if one hundred and twenty (120) days after the commencement of any proceeding against the Person seeking reorganization, arrangement,
composition, readjustment, liquidation or similar relief under any statute, law or regulation, the proceeding has not been dismissed, or if within ninety (90) days after the appointment without such Person’s consent or acquiescence of a
trustee, receiver or liquidator of such Person or of all or any substantial part of its properties, the appointment is not vacated or stayed, or if within ninety (90) days after the expiration of any such stay, the appointment is not vacated. The
foregoing definition of “Bankruptcy” is intended to replace and shall supersede and replace the definition of “Bankruptcy” set forth in Sections 18-101(1) and 18-304 of the Act. 

“Book Value” means, for any Company Property, its adjusted basis for Federal income tax purposes, except that the initial Book Value of any asset contributed by a Member to the Company will equal the
agreed gross fair market value of the asset, and the Book Value will thereafter be adjusted consistently with Section 1.704 -1(b)(2)(iv)(g) of the Treasury Regulations for revaluations under Section 9.1(b) and for Depreciation for that asset.

“Business Day” means a day other than Saturday, Sunday or other day on which commercial banks in New York City are authorized or required by law to close.

“Capital Account” has the meaning set forth in Section 9.1.

“Capital Contribution” means, for any Member, the amount of cash and value of other property contributed or deemed contributed to the Company by that Member in accordance with Article VIII.

“Certificate of Formation” means the Certificate of Formation of Raft River Energy I LLC filed with the Secretary of State of the State of Delaware on August 18, 2005. 

“Class A Distribution Deficiency” means, with respect to any Distribution Date, the excess, if any, of (1) the sum of (a) the Projected Distributable Free Cash with respect to Member A with respect to
such Distribution Date and (b) all Projected Distributable Free Cash with respect to Member A with respect to prior Distribution Dates over (2) the sum of (a) all actual Available Cash distributed to Member A with respect to such Distribution Date
and (b) all prior Available Cash distributed to Member A with respect to prior Distribution Dates.

“Class A Initial Allocation Period” means all Fiscal Years of the Company, commencing with the Fiscal Year in which the Effective Date occurs and ending with and including the Fiscal Year in which the
tenth anniversary of the Placed In Service Date. 

“Class A Managers” has the meaning specified in Section 5.2(a).

“Class A Target Yield” shall be realized when Member A has received (1) cash distributions on the Class A Units in an aggregate amount equal to the aggregate Capital Contributions of Member A and (2)
additional cash distributions on the Class A Units which, together with the amount of any tax benefits allocated to Member A (whether or not used) resulting from allocations of the Company’s Net Losses (including Renewable Electricity
Production Credits), are sufficient to provide Member A with an annualized 10.75% internal rate of return, determined on an After-Tax Basis, with respect to such Capital Contributions (taking into account the timing and amount of such Capital
Contributions, cash distributions and allocations, as the case may be). 

“Class A Units” means the Units designated as the Class A Units, with the rights and preferences specified by this Agreement.

“Class B Initial Distribution Amount” means, for any Fiscal Year in the Class B Initial Distribution Period, $819,000. 

“Class B Initial Distribution Period” means the 48 calendar month period commencing with the first full calendar month after the Placed In Service Date. 

“Class B Managers” has the meaning specified in Section 5.2(a).

“Class B Units” means the Units designated as the Class B Units, with the rights and preferences specified by this Agreement.

“Code” means the Internal Revenue Code of 1986, as amended.

“Company Minimum Gain” has the meaning set forth in Sections 1.704 -2(b)(2) and 1.704 -2(d) of the Treasury Regulations for “partnership minimum gain.” 

“Company Property” means all interests, properties, whether real or personal, assets and rights of any type owned or held by the Company, whether owned or held by the Company at the date of its
formation or thereafter acquired. 

“Confidential Information” means (a) any information (oral or written) furnished by or on behalf of any of the Members concerning it or its owners, members, partners, officers, directors, employees,
agents, representatives, advisors or Affiliates, or the Company, (b) any materials prepared in connection with Meetings of the Members or Meetings of the Managers and (c) the Project Documents; provided, that the term “Confidential
Information” shall not include any information that (i) was already known by or in the possession of the receiving Person prior to the furnishing of such information by the disclosing Person, (ii) was or is in the public domain (either prior to
or after the furnishing of such document or information) through no fault of such receiving Person and not in violation of this Agreement, (iii) was acquired by such receiving Person from another source (if such receiving Person was not aware at the
time of such acquisition that such source was under an obligation of confidentiality with respect to such information) or (iv) is independently developed by the receiving Person without use of Confidential Information.

“Depreciation” means, for any Fiscal Year, all non-cash deductions allowable under the Code, including all deductions attributable to depreciation or cost recovery with respect to Company Property,
including any improvements made thereto and any tangible personal property located therein, or amortization of the cost of any intangible property or other assets acquired by the Company that have a useful life exceeding one year; except
that, with respect to any Company Property whose tax basis differs from its Book Value at the beginning of that Fiscal Year or other period, Depreciation means an amount that bears the same ratio to such beginning Book Value as the depreciation,
amortization or other cost recovery deduction for such period for such asset for Federal income tax purposes bears to its adjusted tax basis as of the beginning of such Fiscal Year. However, if the Federal income tax depreciation, amortization or
other cost recovery deduction for such Fiscal Year is zero, Depreciation will be determined using any method selected by the Managers, in their sole discretion. 

“Distribution Date” shall mean the fifteenth day immediately following the end of each Fiscal Quarter and any other day so designated by the Managers (or, if any such day is not a Business Day, then the
following Business Day). 

“Drilling Contract” means the Daywork Drilling Contract, dated as of May 25, 2006, by and between the Union Drilling, Inc. and U.S. Geothermal, Inc. (as may be amended, restated, supplemented, otherwise
modified or replaced), which is to be assigned by Member B to the Company as contemplated by the Transfer Plan. 

“Effective Time” has the meaning set forth in the Admission Agreement.

“Energy Sales Agreement” means the Firm Energy Sales Agreement, dated as of December 29, 2004, between Idaho Power Corporation and Member B (as may be amended, restated, supplemented, otherwise modified
or replaced), which is to be assigned by Member B to the Company as contemplated by the Transfer Plan. 

“EPC Contract” means the Engineering, Procurement and Construction Contract, dated as of December 5, 2005, between Ormat Nevada, Inc. and Member B (as may be amended, restated, supplemented, otherwise
modified or replaced), which is to be assigned by Member B to the Company as contemplated by the Transfer Plan. 

“First Distribution Period” means the period beginning on (and including) the Effective Time and ending on (and including) the last day of the fiscal quarter during which Member A has realized the
Class A Target Yield.

“Fiscal Quarter” has the meaning set forth in Section 6.6.

“Fiscal Year” has the meaning set forth in Section 6.6.

“GAAP” means United States generally accepted accounting principles as in effect from time to time.

“Guarantee” means any guarantee, credit support, assurance against loss or similar obligation of the Company with respect to an obligation of any other Person. 

“Indebtedness” means (i) any obligation of the Company for borrowed money and any obligation of the Company evidenced by bonds, debentures, notes or other similar instruments; and (ii) any capitalized
lease liability of the Company (to the extent required by GAAP to be included on the balance sheet of the Company).

“Initial Member” means Member B.

“Interconnection Agreement” means the Interconnection and Wheeling Agreement, dated as of March 9, 2006, by and between the Company and Raft River Rural Electric Cooperative, Inc. (as may be amended,
restated, supplemented, otherwise modified or replaced).

“Lien” means any mortgage, pledge, hypothecation, assignment, charge, deposit arrangement, encumbrance, lien (statutory or otherwise), adverse claim or preference, priority or other security agreement
or preferential arrangement of any kind or nature whatsoever, including any conditional sale or other title retention agreement, any financing lease involving
substantially the same economic effect as any of the foregoing and the filing of any financing statement under the Uniform Commercial Code or comparable law of any jurisdiction. 

“Majority Vote” means, (i) with respect to actions to be taken by Members, the affirmative vote or consent of Members holding, in aggregate, more than 50% of the Units then outstanding, and (ii) with
respect to actions to be taken by the Managers, the affirmative vote or consent of Managers holding more than 50% of the Manager Voting Interests. 

“Manager Voting Interests” means, with respect to (i) each Class A Manager, one (1) vote and (ii) each Class B Manager, one (1) vote. 

“Master Services Agreements” means (i) the Master Service Agreement, dated as of June 26, 2006, by and among the Company, Baker Hughes Oilfield Operations, Inc. and Baker Petrolite Corporation, (ii) the
Master Service Agreement, dated as of July 17, 2006, by and between the Company and Weatherford International, Inc., (iii) any other master services agreement that the Company may enter into with respect to contracting work, services, supplies and
equipment rental in furtherance of or pertaining to development of the Facility and (iv) any agreement entered into under a master agreement referred to in clause (i), (ii) or (iii). 

“Member” means, at any time, any Person to whom Units are issued by the Company in exchange for capital contributions in such amounts and at such times as determined by the Managers and any Person who
then owns a Unit and is admitted as a Member in accordance with this Agreement.

“Member Minimum Gain” means an amount, with respect to each Member Nonrecourse Liability, equal to the Company Minimum Gain that would result if such Member Nonrecourse Liability were treated as a
Nonrecourse Liability, determined in accordance with Section 1.704 -2(i)(3) of the Treasury Regulations. 

“Member Nonrecourse Liability” has the meaning set forth in Section 1.704 -2(b)(4) of the Treasury Regulations for “partner nonrecourse liability”. 

“Net Losses” has the meaning set forth in Section 9.2(a).

“Net Profits” has the meaning set forth in Section 9.2(a).

“Nonrecourse Deductions” has the meaning set forth in Sections 1.704 -2(b)(1) and 1.704 -2(c) of the Treasury Regulations. 

“Nonrecourse Liability” has the meaning set forth in Section 1.704 -2(b)(3) of the Treasury Regulations. 

“Notification; Notice” means a notice permitted or required to be given to any Person hereunder. Each such Notification or Notice must be given in the manner provided in Section 14.13.

“O&M Agreement” means that certain Management Services Agreement, dated as of the date hereof, between the Company and the Operator. 

“Operating Budget” has the meaning set forth in Section 5.17.

“Operator” means Raft River Services, LLC, in its capacity as Operator of the Project, and any successor operator appointed from time to time in accordance with this Agreement and the O&M
Agreement.

“Party” means each party to this agreement.

“Person” means any natural person, corporation, limited liability company, trust, joint venture, association, company, partnership or other entity. 

“Phase II” has the meaning set forth in Section 5.13.

“Pipeline Construction Contract” means the Construction Contract, dated as of May 22, 2006, by and between the Company and IBI d/b/a Industrial Builders (as may be amended, restated, supplemented,
otherwise modified or replaced).

“Placed In Service Date” is the date that the Facility is “placed in service” for Federal income tax purposes under Section 45 of the Code. 

“Power Line Construction Contract” means the Construction Contract for Well Distribution Lines, dated as of May 16, 2006, by and between the Company and Raft River Rural Electric Cooperative, Inc. (as
may be amended, restated, supplemented, otherwise modified or replaced).

“Power Transmission Agreement” means the Service Agreement for Point-to-Point Transmission Service, dated as of June 24, 2005, by and between the United States of America, Department of Energy (acting
by and through the Bonneville Power Administration) and U.S. Geothermal, Inc. (as may be amended, restated, supplemented, otherwise modified or replaced), which is to be assigned by Member B to the Company as contemplated by the Transfer Plan. 

“Project” has the meaning set forth in the Recitals.

“Project Documents” means the following documents: this Agreement, the Admission Agreement, the O&M Agreement, the Drilling Contract, the Energy Sales Agreement, the EPC Contract, the
Interconnection Agreement, the Master Services Agreements, the Pipeline Construction Contract, the Power Line Construction Contract, the Power Transmission Agreement, the Project Permits, the REC Sale Agreement, the Revolver Agreement, the Site
Leases and any other contracts to which the Company is or becomes party to in connection with the Project.

“Project Permits” means all of the permits listed on the Transfer Plan.

“Projected Distributable Free Cash” means, for any Distribution Date, the amount set forth on Schedule 4.

“REC Income” means proceeds realized from the sale or transfer of: 

(i) characteristics or attributes of energy generated by the Project such as renewable or “green” characteristics, including pursuant to the REC Sale Agreement; or (ii) emission allowances, along with any governmental payments or subsidies
(other than Renewable Electricity Production Credits). 

“Renewable Electricity Production Credits” means any qualifying tax credits claimed by Member A under Section 38 of the Code with respect to electricity produced and sold by the Company from geothermal
energy at a qualified facility as described in Section 45 of the Code.

“REC Sale Agreement” means that Renewable Energy Credit Purchase and Sale Agreement, dated as of July 29, 2006, by and between the Company and Holy Cross Energy, a Colorado cooperative electric
association, with respect to the sale and purchase of Renewable Electricity Production Credits. 

“Revolver Agreement” means that certain Revolving Credit Agreement, dated as of the date hereof, between U.S. Geothermal and the Company.

“Second Distribution Period” means the period beginning on (and including) the first day after the last day of the First Distribution Period and ending on (and including) the date that is on the
twentieth anniversary of the Placed In Service Date; provided that during such twenty year period, Member B has achieved for one complete Fiscal Quarter more than 30 MW of total net electrical generation capacity from geothermal resources in
the United States under its ownership or control (or has put such owned or controlled geothermal resources to an alternative use for one complete Fiscal Quarter that a third party financial or engineering firm, or other independent qualified expert
(the identity of whom is to be agreed upon by Member A and Member B, and failing such agreement within thirty (30) days from the time that Member B proposes such an alternative use, that a “Big Four” accounting firm) agrees is as good or
better, from a financial perspective for Member B, than ownership or control of more than 30 MW of total net electrical generation capacity); provided, further, that in the event that the standard in the first proviso is not met within
such twenty (20) year period, the Second Distribution Period will end on (and include) the first date following the twentieth anniversary of the Placed In Service Date upon which the standard in the first proviso is met. 

“Site” means the project site located in Cassia County, Idaho, approximately 40 miles southeast of Burley, the county seat. The project site encompasses 660 acres, divided into two parcels, both located
in Township 15 South Range 26 East, Boise Meridian. The first parcel, which contains the office complex and three geothermal production wells, is 240 acres and is located in Sections 22 and 23. The second parcel, 320 acres, is located in Section 25
and contains one production well and two injection wells. The company also holds seven additional leases. The first parcel covers 160 acres and includes the RRGE#2 geothermal production well. The second parcel encompasses private geothermal rights.
This description of the Site is qualified by reference to the map of the Site attached hereto as Exhibit A. 

“Site Leases” means all of the leases listed on the Transfer Plan.

“Tax Correspondence” means all written and oral communications from the Internal Revenue Service (or other taxing authority) relating to any item of income, gain, loss or deduction arising with respect
to any activities or assets of the Company, whether communicated with respect to an audit or otherwise. 

“Tax Matters Member” has the meaning set forth in Section 6.7(a).

“Taxable Year” has the meaning set forth in Section 6.7(f)(i).

“Third Distribution Period” means the period beginning on (and including) the first day after the Second Distribution Period. 

“Transfer Plan” means the plan attached as Schedule 7 hereto pursuant to which certain assets and contracts will be transferred or assigned by Member B to the Company.

“Treasury Regulations” means the Federal income tax regulations issued by the U.S. Treasury Department under the Code, as in effect on the date hereof. 

“Unit” means, with respect to any Member at any time, the ownership interest of such Member in the Company at such time. Such interest includes, without limitation, (a) all rights of a Member to receive
distributions of revenues, allocations of income and loss and distributions of liquidation proceeds under this Agreement and (b) all management rights, voting rights and rights to consent. Each Unit shall represent a 1% ownership interest in the
Company.

Words used herein, regardless of the number and gender used, shall be deemed and construed to include any other number, singular or plural, and other gender, masculine, feminine or neuter, as the context requires.
References to any act, statute or regulation means such act, statute or regulations as amended at the time and include any successor legislation or regulations. References to any agreement or instrument means such agreement or instrument as amended
or modified from time to time in accordance therewith and herewith. For purposes of this Agreement, unless the context clearly requires otherwise, (a) the words “include,” “includes” and “including” shall be deemed to
be followed by the words “without limitation,” (b) the word “or” is not exclusive and (c) the words “herein,” “hereof,” “hereby,” “hereto” and “hereunder” and words of similar
import shall refer to this Agreement as a whole and not to any particular provisions hereof. Except as otherwise stated, reference to Articles, Sections, Schedules, Exhibits and Annexes mean the Articles and Sections of, and the Schedules, Exhibits
and Annexes to, this Agreement. The Schedules, Exhibits and Annexes hereto are hereby incorporated by reference into and shall be deemed a part of this Agreement.

ARTICLE III.

MEMBERS

Section 3.1

Members.

The Members of the Company as of the Effective Time are Member A and Member B, and the addresses of, and other information needed for purposes of providing notice to, such Members are as set forth on Schedule 1,
which shall be revised from time to time as needed in order to keep such information current. As of the Effective Time, there are no other
Members of the Company and no other Person has any right to take part in the ownership of the Company.

Section 3.2

Membership Interest; Units.

(a) 

Each Member shall be entitled to the number and class of Units set forth opposite such Member’s name on Schedule 1. The Company shall not issue any certificates evidencing any Units. 

(b) 

Each Unit shall constitute a “security” within the meaning of, and governed by, Article 8 of (i) the Uniform Commercial Code (including Section 8-102(a)(15) thereof) as in effect from time to time in the
State of Delaware (6 Del. C. § 8-101, et seq.) (the “UCC”), and (ii) the Uniform Commercial Code of any other applicable jurisdiction that now or hereafter substantially includes the 1994 revisions to Article 8
thereof as adopted by the American Law Institute and the National Conference of Commissioners on Uniform State Laws and approved by the American Bar Association on February 14, 1995. Each Member hereby agrees that its interest in the Company and its
Unit for all purposes shall be personal property. Notwithstanding any provision of this Agreement to the contrary, to the extent that any provision of this Agreement is inconsistent with any non-waivable provision of Article 8 of the UCC, such
provision of Article 8 of the UCC shall control. 

Section 3.3

Authority of Members.

Other than as may be authorized by the Managers, no Member has the authority or power to act for or on behalf of the Company, to do any act that would be binding on the Company or to incur any expenditures on behalf of
the Company.

ARTICLE IV.

MEETINGS OF MEMBERS

Section 4.1

Place of Meetings.

All meetings of Members shall be held at the principal office of the Company or at such other place as may be designated by the Managers or by the Members calling the meeting.

Section 4.2

Meetings.

(a) 

An annual meeting of Members for the transaction of such business as may
properly come before the meeting shall be held at such place, on such date and
at such time as the Managers shall determine.

(b) 

Special meetings of Members for any proper purpose of purposes may be called at any time by any Manager or by the holders of a majority of either of the Class A Units or Class B Units then outstanding. 

Section 4.3

Notice.

A Notification of all meetings, stating the place, date and time of the meeting and in the case of a special meeting, the purpose or purposes for which the meeting is called, shall be delivered not less than ten (10)
nor more than sixty (60) days before the meeting to each Member.

Section 4.4

Waiver of Notice.

Attendance of a Member at a meeting shall constitute a waiver of Notification of the meeting, except where such Member attends for the express purpose of objecting to the transaction of any business on the ground that
the meeting is not lawfully called or convened. Notification of a meeting may also be waived in writing. Attendance at a meeting is not a waiver of any right to object to the consideration of matters required to be included in the Notification of
the meeting but not so included, if the objection is expressly made at the meeting.

Section 4.5

Quorum.

The presence, either in person or by proxy, of Members holding at least a majority of the outstanding Units of each class is required to constitute a quorum at any meeting of the Members.

Section 4.6

Voting.

(a) 

All Members shall be entitled to vote on any matter submitted to a vote of the
Members. Members may vote either in person or by proxy at any meeting. Each
Member shall be entitled to one (1) vote for each Unit held by such Member. 

(b) 

With respect to any matter other than a matter for which the affirmative vote of
Members owning a specified percentage of the Units is required by the Act, the
Certificate of Formation or this Agreement, the affirmative Majority Vote of the
Members at a meeting at which a quorum is present shall be the act of the
Members.

(c) 

Notwithstanding any other provision contained in this Agreement to the contrary,
no act shall be taken, sum expended, decision made, obligation incurred or power
exercised by the Company, or any officer or Manager on behalf of the Company, in
each case without the approval of Members holding at least (A) 51% of the Class
A Units then outstanding and (B) 51% of the Class B Units then outstanding, each
class voting or consenting, as the case may be, separately, with respect to any
of the following: 

(i) 

any amendment, termination, modification or waiver of any provisions of this
Agreement;

(ii) 

the redemption or other acquisition of any Units by the Company;

(iii) 

any split, combination or reclassification of any Units or other limited
liability company interests in the Company then outstanding;

 

(iv) 

the incurrence of any Indebtedness, the creation of any Lien or the issuance of any Guarantee by the Company; provided, however, that this clause (iv) shall not apply to (A) any incurrence of
Indebtedness under the Revolver Agreement during the First Distribution Period or (B) any other incurrence of Indebtedness, creation of any Lien or issuance of any Guarantee during the First Distribution Period or the Third Distribution Period if
(1) the Member which would hold a minority of the applicable voting rights (absent this clause (iv)) is given the right to review the applicable documents, and to consult with and make suggestions to the other Member (such suggestions to be
reasonably considered by such other Member) in connection with such Indebtedness, Lien or Guarantee (as the case may be) and (2) the Member which would hold a majority of the applicable voting rights (absent this clause (iv)) enters into an
agreement or other arrangement with the other Member pursuant to which such other Member is fully compensated for the economic cost of any reduction in amounts distributed to it hereunder which are attributable to debt service expenses relating to
such Indebtedness; and provided further that, unless otherwise agreed by the holders of the Class B Units, any Indebtedness incurred prior to the beginning of the Third Distribution Period shall state that it matures, or is prepayable without
penalty, at or prior to the beginning of the Third Distribution Period;

(v) 

filing or consenting to the filing of any bankruptcy, insolvency or
reorganization case or proceeding with respect to the Company, or the
institution of any proceedings with respect to the Company under any applicable
insolvency law or otherwise seeking relief with respect to the Company under any
laws relating to the relief from debts or the protection of debtors generally; 

(vi) 

seeking or consenting to the appointment of a receiver, liquidator, assignee, trustee, sequestrator, custodian or any similar official for the Company or a substantial portion of its properties; 

(vii) 

making any assignment for the benefit of the creditors of the Company;

(viii) 

the engagement in any activities not contemplated or permitted by Section 1.5;

(ix) 

the engagement in any transaction or entry into any agreement with any Member or Affiliate of any Member, or the amendment, modification or waiver of any provisions of any transactions or existing agreements with
any Member or any Affiliate of any Member; provided, however, that this clause (ix) shall not apply to (A) entry into any transaction or agreement listed on Schedule 2 or (B) during the Third Distribution Period, entry into any
transaction or agreement, or any amendment, modification or waiver of any transaction or agreement, with any Member or Affiliate of a Member if (1) the terms of such agreement, transaction, amendment, modification or waiver are no less favorable to
the Company than could be obtained by it at the relevant time in arm’s-length dealings with a Person that is not a Member, an Affiliate of a Member or an Affiliate of the Company, and (2) each of the Members shall have been
given written notice of such agreement, transaction, amendment, modification or waiver (and the terms thereof) at least 15 Business Days prior thereto; 

(x) 

the sale, lease or other disposition by the Company of any material portion of the Company Property; provided, however, that this clause (x) shall not apply to any sale of Company Property during the
Third Distribution Period if such sale (1) is for cash, (2) is for no less than fair market value (determined pursuant to an appraisal conducted by an independent expert with respect to the market for similar property (the cost of which shall be
borne by Member B) at a time no more than ninety (90) days prior to such sale date) and (3) is not made to any Affiliate of Member B; 

(xi) 

the amendment, modification or waiver of any provision of the O&M Agreement or the appointment of a replacement Operator; provided, however, that this clause (xi) shall not apply to (1) any
termination of the O&M Agreement in accordance with its terms, or (2) prior to the Third Distribution Period, appointment of any replacement of the Operator upon or following a termination of the O&M Agreement by the Company pursuant to
Section 9.2 of the O&M Agreement;

(xii) 

the termination, amendment, modification or waiver of, or any consent under any Project Document; provided, however, that this clause (xii) shall not apply to (A) any termination, amendment, modification or
waiver of, or any consent under, the O&M Agreement or any other agreement between the Company and Member B or any Affiliate of Member B or (B) any amendment or modification of any other Project Document to the extent that the O&M Agreement
expressly permits the Operator to make such amendment or modification with out the consent of the Company;

(xiii) 

the appointment or hiring of any officer or employee; or

	(xiv) 

the agreement to do any of the foregoing.

Section 4.7

Conduct of Meetings.

The Managers shall have full power and authority concerning the manner of conducting any meeting of the Members, including the determination of Persons entitled to vote, the existence of a quorum, the satisfaction of
the requirements of this Article IV, the conduct of voting, the validity and effectiveness of any proxies and the determination of any controversies, votes or challenges arising in connection with or during the meeting or voting. The Managers
shall designate a Person to serve as chairperson of any meeting and shall further designate a Person to take minutes of any meeting. The chairperson of the meeting shall have the power to adjourn the meeting from time to time, without notice, other
than announcement of the time and place of the adjourned meeting. Upon the resumption of such adjourned meeting, any business may be transacted that might have been transacted at the meeting as originally called.

Section 4.8

Action by Written Consent.

Any action that may be taken at a meeting of the Members may be taken without a meeting if a consent in writing, setting forth the action to be taken, shall be signed and dated by the Members having not less than the
minimum number of votes that would be necessary to
authorize or take such action at a meeting at which all Units entitled to vote thereon were present and voted. Such consent shall have the same force and effect as a vote of the signing Members at a meeting duly called and held pursuant to this
Article IV. No prior notice from the signing Members to the Company or other Members shall be required in connection with the use of a written consent pursuant to this Section 4.8. Notification of any action taken by means of a written
consent of Members shall, however, be sent within a reasonable time after the date of the consent by the Company to all Members who did not sign the written consent, but in any event, such Notification shall be sent no later than five (5) Business
Days after such action is taken. 

Section 4.9

Proxies.

A Member may vote either in person or by proxy executed in writing by the Member. A facsimile, telegram, telex, cablegram or similar transmission by the Member or a photographic, photostatic, facsimile or similar
reproduction of a writing executed by the Member shall be treated as an execution in writing for purposes of this Section 4.9. Proxies for use at any meeting of Members or in connection with the taking of any action by written consent shall
be filed with the Company before or at the time of the meeting or execution of the written consent, as the case may be. All proxies shall be received and taken charge of and all ballots shall be received and canvassed by the Managers who shall
decide all questions touching upon the qualification of voters, the validity of the proxies and the acceptance or rejection of votes, unless an inspector or inspectors shall have been appointed by the chairperson of the meeting, in which event such
inspector or inspectors shall decide all such questions. No proxy shall be valid after eleven (11) months from the date of its execution unless otherwise provided in the proxy. A proxy shall be revocable unless the proxy form conspicuously states
that the proxy is irrevocable and the proxy is coupled with an interest. Should a proxy designate two or more Persons to act as proxies, unless such instrument shall provide to the contrary, a majority of such Persons present at any meeting at which
their powers thereunder are to be exercised shall have and may exercise all the powers of voting or giving consents thereby conferred, or if only one be present, then such powers may be exercised by that one; or, if an even number attend and a
majority do not agree on any particular issue, the Company shall not be required to recognize such proxy with respect to such issue if such proxy does not specify how the Units that are the subject of such proxy are to be voted with respect to such
issue. 

ARTICLE V.

MANAGEMENT OF THE COMPANY

Section 5.1

Management of Business.

Except as otherwise expressly provided in this Agreement, the powers of the Company shall be exercised by or under the authority of, and the business and affairs of the Company shall be managed under the direction of,
the Management Committee. Each of the Managers is hereby designated a “manager” of the Company within the meaning of Section 18-101(10) of the Act. 

Section 5.2 

Number and Election of Managers.

(a) 

At all times that this Agreement remains in effect, the Management Committee shall consist of four Managers of the Company. During the First Distribution Period, the Managers of the Company shall be elected as
follows: (i) three (3) Managers shall be elected by the holders of the Class A Units voting separately as a class and (ii) one (1) Manager shall be elected by the holders of the Class B Units voting separately as a class. The initial Managers of the
Company shall be as set forth on Schedule 3. During the Second Distribution Period, the Managers of the Company shall be elected as follows: (i) two (2) Managers shall be elected by the holders of the Class A Units voting separately as a
class and (ii) two (2) Managers shall be elected by the holders of the Class B Units voting separately as a class. During the Third Distribution Period, the Managers of the Company shall be elected as follows: (i) one (1) Manager shall be elected by
the holders of the Class A Units voting separately as a class and (ii) three (3) Managers shall be elected by the holders of the Class B Units voting separately as a class References herein to the “Class A Managers” mean the
Managers elected by the holders of the Class A Units and references herein to the “Class B Managers” means the Managers elected by the holders of the Class B Units. 

(b) 

In any election of Managers, each Member shall vote its respective Units in such manner as necessary to cause the election of the Managers designated in accordance with the provisions of Section 5.2(a). There
shall be no cumulative voting with respect to the election of Managers. 

Section 5.3 

General Powers of Managers; Activities.

(a) 

Except as may otherwise be expressly provided in this Agreement, the Managers shall have complete and exclusive discretion in the management and control of the business and affairs of the Company, including the
right to make and control all ordinary and usual decisions concerning the business and affairs of the Company. The Managers shall, subject to Section 4.6(c), possess all power, on behalf of the Company, to do or authorize the Company or to
direct the officers of the Company, on behalf of the Company, to do all things necessary or convenient to carry out the business and affairs of the Company.

(b) 

The Managers shall devote so much of their time to the affairs of the Company
and the conduct of the Company business as they, in their sole judgment, shall
reasonably determine to be required and shall not be obligated to do or perform
any act or thing in connection with the business of the Company not expressly
set forth herein. 

Section 5.4 

Limitations on Powers of Managers.

The enumeration of powers in this Agreement shall not limit the general or implied powers of the Managers or any additional powers provided by law.

Section 5.5

Place of Meetings.

Meetings of the Managers may be held either within or without the State of Delaware at whatever place is specified in the call of the meeting. In the absence of specific designation, the meetings shall be held at the
principal office of the Company. The Managers
shall designate one of the Managers to be the chair of the Management Committee, and the chair will preside at meetings of the Managers.

Section 5.6

Regular Meetings.

The Managers shall meet at least once per Fiscal Year. No notice need be given to Managers of regular meetings for which the Managers have previously agreed upon a time and place for the meeting.

Section 5.7

Special Meetings.

Special meetings of the Managers may be held at any time upon the request of the Chief Executive Officer of the Company (if any) or any Manager. A Notification of any special meeting shall be sent to the last known
address of each Manager at least five (5) Business Days in advance of the meeting. Notification of the time, place and purpose of such meeting may be waived in writing before or after such meeting and shall be equivalent to the giving of a
Notification. Attendance of a Manager at such meeting shall also constitute a waiver of Notification thereof, except where such Manager attends for the express purpose of objecting to the transaction of any business on the ground that the meeting is
not lawfully called or convened. Neither the business to be transacted at, nor the purpose of, any regular or special meeting of the Managers need be specified in the Notification or waiver of Notification of such meeting.

Section 5.8 

Quorum of and Action by Managers.

The presence, in person or by proxy, of at least one (1) Manager elected by the holders of the Class A Units voting separately as a class and at least one (1) Manager elected by the holders of the Class B Units voting
separately as a class shall constitute a quorum for the transaction of business at any meeting of the Managers. Except as otherwise expressly set forth in this Agreement, any action to be taken or approved by the Managers hereunder must be taken or
approved by the Managers, and any action so taken or approved shall constitute the act of the Managers.

Section 5.9

Compensation.

The Managers shall serve without compensation. Managers shall be entitled to reimbursement for their reasonable out-of-pocket expenses incurred in attending any meeting.

Section 5.10

Resignation and Removal.

Any Manager may resign at any time. Such resignation shall be made in writing and shall take effect at the time specified therein, or if no time is specified, at the time of its receipt by the Company. Any Managers
serving as such by designation of specified class of Members pursuant to Section 5.2 may be removed, either for or without cause, only upon the affirmative vote of such class of Members. 

Section 5.11

Vacancies.

If any Manager ceases to serve as such, his replacement shall be elected by the holders of Units entitled to elect such former Manager pursuant to the procedures set forth in Section 5.2.

Section 5.12

Action by Written Consent.

Any action that may be taken at a meeting of the Managers may be taken without a meeting if a consent in writing, setting forth the action to be taken, shall be signed and dated by all of those Persons entitled to vote
at that meeting, and such consent shall have the same force and effect as a unanimous vote of Managers at a meeting duly called and held. No notice shall be required in connection with the use of a written consent pursuant to this Section
5.12.

Section 5.13

Other Business.

The Managers and Members may engage in or possess an interest in other business ventures of every kind and description, independently or with others, including, without limitation, the development, construction and
operation of a separate geothermal power generation project near the Project (referred to herein as “Phase II”). Neither the Company nor any Member shall have any right, by virtue of this Agreement or the Company relationship
created hereby, in or to such other ventures or activities of the Managers or any other Member or any of their respective Affiliates, or to the income or proceeds derived therefrom, and the pursuit of such ventures, even if competitive with the
business of the Company, shall not be deemed wrongful or improper.

Section 5.14

Standard of Care; Liability.

NOTWITHSTANDING ANY PROVISION TO THE CONTRARY
ELSEWHERE IN THIS AGREEMENT, TO THE EXTENT THAT, AT LAW OR IN EQUITY, THE MANAGEMENT COMMITTEE OR ANY MEMBER HAS ANY DUTIES (FIDUCIARY OR OTHERWISE) AND LIABILITIES RELATING THERETO TO THE COMPANY OR ANOTHER MEMBER OF THE COMPANY, (A) NEITHER THE
MANAGEMENT COMMITTEE NOR ANY MEMBER SHALL BE LIABLE TO THE COMPANY OR THE OTHER MEMBERS FOR ACTIONS TAKEN BY THE MANAGEMENT COMMITTEE, ANY MEMBER OR ANY OF THEIR AFFILIATES IN RELIANCE UPON THE
PROVISIONS OF THIS AGREEMENT, (B) EACH MANAGER IS EXPRESSLY PERMITTED TO SERVE AS A MANAGER OR DIRECTOR OF ANY OTHER ENTITY, INCLUDING OTHER ENTITIES IN THE SAME OR SIMILAR INDUSTRIES, (C) EACH MEMBER AND EACH MANAGER IS PERMITTED TO EXPLORE AND
DEVELOP BUSINESS OPPORTUNITIES OUTSIDE OF THE COMPANY, EVEN IF SUCH OPPORTUNITIES MAY COMPETE WITH THE ACTIVITIES OF THE COMPANY, (D) NO MANAGER OR MEMBER IS REQUIRED, BY VIRTUE OF THEIR POSITION AS A MANAGER OR MEMBER, TO PRESENT BUSINESS
OPPORTUNITIES IN THE GEOTHERMAL INDUSTRY OR UTILIZING GEOTHERMAL RESOURCES TO THE MANAGEMENT COMMITTEE OR THE COMPANY BEFORE PURSUING SUCH OPPORTUNITIES IN ANY CAPACITY OR ON BEHALF OF ANY OTHER ENTITY, AND 

(E) THE DUTIES (FIDUCIARY OR OTHERWISE) OF THE MANAGEMENT COMMITTEE, EACH MANAGER AND EACH MEMBER ARE INTENDED TO BE MODIFIED AND LIMITED TO THOSE EXPRESSLY SET FORTH IN THIS AGREEMENT, AND NO IMPLIED COVENANTS, FUNCTIONS, RESPONSIBILITIES, DUTIES,
OBLIGATIONS OR LIABILITIES SHALL BE READ INTO THIS AGREEMENT, OR OTHERWISE EXIST AGAINST THE MANAGEMENT COMMITTEE OR ANY MEMBER.

Section 5.15 

Appointment and Authority of Officers.

Subject to Section 4.6(c)(xiii), the Management Committee shall have the right to appoint officers of the Company. The scope of any such officer’s power and authority shall be as expressly set forth in a
resolution of the Managers, and no officer shall have greater power or authority than the Management Committee. Without the requisite prior approval of the Members in respect thereof, no officer shall, on behalf of the Company, authorize, engage in
or enter into any of the transactions or actions specified in Section 4.6(c). The Management Committee shall have the right to modify or limit the authority of, or remove, and officer of the Company at any time, either for or without
cause.

Section 5.16 

Execution of Company Documents.

When the taking of such action has been authorized by the Managers, the President of the Company or any other person specifically authorized by the Managers, as the case may be, may execute any contract, agreement,
instrument, certificate or other document on behalf of the Company and may execute and file on behalf of the Company with the Secretary of State of the State of Delaware any document, certificate or instrument, including without limitation any (i)
certificate of amendment to the Company’s Certificate of Formation, (ii) one or more restated certificates of formation, (iii) certificate of merger or consolidation or (iv) upon the dissolution and completion of winding up of the Company,
certificate of dissolution. 

Section 5.17 

Operating Budget.

The annual budget of the Company and any modification, amendment or supplement thereto shall be established for each year pursuant to the O&M Agreement (the “Operating Budget”).

ARTICLE VI.

BOOKS AND RECORDS; TAX MATTERS

Section 6.1

Bank Accounts; Investments.

Capital Contributions, revenues and any other Company funds shall be deposited by the Company in a bank account established in the name of the Company, or shall be invested by the Company, at the direction of the
Managers, in furtherance of the purpose of the Company set forth in Section 1.5. No other funds shall be deposited into Company bank accounts or commingled with Company investments. Funds deposited in the Company’s bank accounts may be
withdrawn only to be invested in furtherance of the Company’s purposes, to pay Company debts or obligations or to be distributed to the Members pursuant to this Agreement.

Section 6.2 

Records Required by Act; Right of Inspection.

(a) 

During the term of the Company’s existence and for a period of four (4) years
thereafter, there shall be maintained in the Company’s principal office all
records required to be kept pursuant to the Act, including a current list of the
names, addresses and Units held by each of the Members (including the dates on
which each of the Members became a Member), copies of this Agreement and the
Certificate of Formation, including all amendments or restatements, and correct
and complete books and records of account of the Company.

(b) 

On written request, a Member may examine and copy, at any reasonable time, for
any purpose reasonably related to such Member’s interest as a Member of the
Company, and at the Member’s expense, records required to be maintained under
the Act and such other information regarding the business, affairs and financial
condition of the Company as is reasonable for the Member to examine and copy.
Upon written request by any Member made to the Company at the address of the
Company’s principal office, the Company shall provide to the Member without
charge true copies of this Agreement and the Certificate of Formation and all
amendments or restatements.

Section 6.3

Books and Records of Account.

The Company shall maintain adequate books and records of account that shall be maintained on the accrual method of accounting and on a basis consistent with GAAP and appropriate provisions of the Code, containing, among
other entries, a Capital Account for each class of Units held by each Member. The Company shall also maintain books for the purpose of registering the transfer of Units. 

Section 6.4

Other Information Rights.

The Company shall furnish to each Member:

(a) 

Within twenty (20) days after the end of each calendar month and forty-five (45)
days after the end of each calendar quarter (other than for the month and
calendar quarter ending simultaneously with the end of the Company’s Fiscal
Year), an unaudited balance sheet of the Company as at the end of such month and
unaudited statements of income and of changes in cash flow of the Company for
such month and for the current Fiscal Year to the end of such month setting
forth in comparative form the Company’s financial statements for the
corresponding periods for the prior Fiscal Year, if any, including a comparison
to the then current budget, all in reasonable detail.

(b) 

Within ninety (90) days after the end of each Fiscal Year, an audited balance sheet of the Company as of the end of such year and audited statements of income and of changes in cash flow of the Company for such
year, including comparisons to the corresponding periods in prior years, prepared in accordance with GAAP consistently applied. 

(c) 

No later than sixty (60) days prior to the start of each new Fiscal Year, the
Operating Budget approved by the Management Committee, which Operating Budget
shall be in reasonable detail and contain a projected financial statement for
such fiscal year on a monthly
basis, and operating goals for the Project, and promptly after preparation from time to time, any revisions to the forecasts contained therein.

(d) 

Notice of any noncompliance by the Company with any Applicable Law that could
reasonably be likely to have a material adverse affect on the business, assets,
financial condition, prospects or results of operations of the Company.

(e) 

Any other financial or other information available to the officers of the
Company as any Member reasonably requests. 

Section 6.5 

Audits.

The fiscal year-end financial statements to be delivered pursuant to Section 6.4(a) shall be audited. The audit shall be performed by PricewaterhouseCoopers LLP or such other accounting firm approved by the
Management Committee.

Section 6.6

Fiscal Year.

The fiscal year of the Company shall be as required under the Code (the “Fiscal Year”). Initially the Fiscal Year shall be the period commencing on the day following the last Friday of November and
ending on the last Friday of November of the next succeeding calendar year. Each Fiscal Year shall consist of four quarters (each, a “Fiscal Quarter”) ending on the last Friday in February, May, August and November of each fiscal
year. 

Section 6.7

Tax Matters.

(a) 

Member A is hereby designated Tax Matters Member for the Company in accordance with the definition of “tax matters partner” set forth in Section 6231 of the Code and shall be so designated in each Federal
information return filed on behalf of the Company in the First Distribution Period and the Second Distribution Period; Member B is hereby designated Tax Matters Member for the Company, with respect to Taxable Years commencing during the Third
Distribution Period only, in accordance with the definition of “tax matters partner” set forth in Section 6231 of the Code and shall be so designated in each Federal information return filed on behalf of the Company in the Third
Distribution Period. The Member so designated for the Company at any time shall be referred to herein as the “Tax Matters Member”. The Tax Matters Member shall not be liable to the Company or any Member or Affiliate of the Company
or any Member for any act or omission taken or suffered by it in such capacity in good faith and in the belief that such act or omission is in or is not opposed to the best interests of the Company and shall, to the fullest extent permitted by law,
be indemnified by the Company in respect of any claim based upon such act or omission; provided, however, that such act or omission does not constitute gross negligence, fraud or willful misconduct.

(b) 

The Tax Matters Member shall promptly deliver to each Member copies of all
written Tax Correspondence and shall promptly advise each Member of the content
of any substantive verbal Tax Correspondence. The Tax Matters Member shall use
all reasonable efforts to provide each Member and its attorneys the opportunity
to attend any such conversations, and shall keep each Member advised of all
developments with respect to any proposed adjustments that come to the Tax
Matters Member’s attention. In addition, the Tax
Matters Member shall (x) provide to each Member draft copies of any substantive correspondence or filing to be submitted by the Tax Matters Member to the IRS (or other taxing authority), including, without limitation, with respect to any tax contest
(a “Written Submission”), at least 14 Business Days prior to the date the Written Submission is required to be submitted, (y) shall consider in good faith changes or comments to the Written Submission requested by other Members, and
shall consult with such other Members with respect to such changes and comments; provided, however, that if the Tax Matters Member and the other Members, acting reasonably, cannot agree on the changes or comments to the Written Submission,
the Tax Matters Member’s changes or comments shall control, and (z) shall provide to each Member a final copy of the Written Submission. The Tax Matters Member shall provide each Member with notice reasonably in advance of any scheduled
meetings or conferences (including telephone conferences) with respect to any tax contest, and such other Members and their counsel will have the right to attend any such scheduled meetings or conferences. The Tax Matters Member will take such
reasonable actions, including providing powers of attorney, as may be necessary for each Member and its counsel to attend such meetings and conferences. Each Member shall provide the Tax Matters Member with written comments to drafts of Written
Submissions delivered pursuant to this Section 8.1(b) within seven (7) Business Days of receipt of such drafts. Each Member shall be deemed to have no comments if the Tax Matters Member has not received such Member’s written comments within
seven (7) Business Days of receipt of such drafts. 

(c) 

The Tax Matters Member agrees that it will not take the following actions
without each Member’s consent (such consent not to be unreasonably withheld,
delayed or conditioned):

(i) 

Settling or proposing a settlement with the IRS regarding a tax
contest;

(ii) 

Terminating an extension of the statute of limitations regarding the
Company’s tax year; 

(iii)

 Seeking technical advice or otherwise involving IRS personnel outside the audit team or using procedures (e.g., a Pre-Filing Agreement or Industry Issue Resolution Program) outside the normal audit procedures with
respect to a tax contest; and

(iv) 

If a tax contest results in a deficiency, choosing the forum for appeals or
litigation, and settling or proposing a settlement for such a controversy. 

(d)  

At the Company’s expense, the Tax Matters Member shall cause Ernst & Young LLP (or such other “Big Four” accounting firm mutually acceptable to Member A and Member B) to prepare the Federal income
tax returns for the Company and all other tax and information returns of the Company, including state and local tax returns. The Tax Matters Member may extend the time for filing any such tax returns as provided for under applicable statutes. Each
Member shall provide such information, if any, as may be reasonably needed by such accounting firm for purposes of preparing such tax returns, provided that such information is readily available from regularly maintained accounting records.
At least thirty (30) days prior
to filing the Federal and state income tax returns and information returns of the Company, the Tax Matters Member shall deliver to the Members for their review a copy of the Company’s Federal and state income tax returns and information returns
in the form proposed to be filed for each Taxable Year, and shall incorporate all reasonable changes or comments to such proposed tax returns and information returns requested by Members at least ten days prior to the filing date for such returns.
Notwithstanding the foregoing, in the event the Tax Matters Member and another Member have a disagreement with respect to such tax returns, such disagreement, to the extent the parties are not able to reach agreement, shall be resolved by Ernst
& Young LLP or another “Big Four” accounting firm mutually acceptable to Member A and Member B, whose costs shall be shared equally by Member A and Member B and whose determination shall be final. After taking into account any such
changes described above, the Tax Matters Member shall cause the Company to timely file, taking into account any applicable extensions, such tax returns. Within twenty (20) days after filing such Federal and state income tax returns and information
returns of the Company, the Tax Matters Member shall cause the Company to deliver to each Member a copy of the Company’s Federal and state income tax returns and information returns as filed for each Taxable Year, together with any additional
tax-related information in the possession of the Company that such Member may reasonably and timely request in order to properly prepare its own income tax returns. 

(e) 

The Operator, to the extent that Company funds are available, shall cause the Company to pay any taxes payable by the Company (it being understood that the expenses of preparation and filing of the tax returns, and
the amounts of taxes, are expenses of the Company and not of the Tax Matters Member); provided that the Tax Matters Member shall not be required to cause the Company to pay any tax so long as the Company (under the direction of the Tax
Matters Member as described above) is in good faith and by appropriate legal proceedings contesting the validity, applicability or amount thereof and such contest does not materially endanger any right or interest of the Company.

(f) 

To the extent that the Company may, or is required to, make elections for
Federal, state or local income or other tax purposes, such elections shall be
made by the Tax Matters Member. The Tax Matters Member agrees to cause the
Company to make the following elections for tax purposes: 

(i) 

To adopt an annual accounting period ending on the last Friday in
November as its taxable year (the “Taxable Year”), unless otherwise required by law; 

(ii) 

To adopt the accrual method of accounting;

	(iii) 

To compute the allowance for depreciation utilizing the shortest
life and fastest method permissible under the Modified Accelerated Cost Recovery System or other applicable depreciation system, for tax purposes only; 

(iv) 

To amortize organization expenditures, if any, over a sixty (60) month period in
accordance with Code Section 195(b) and any similar state statute; 

(v) 

To amortize start-up expenditures, if any, over a sixty (60) month period in
accordance with Code Section 709(b) and any similar state statute; 

(vi)

To make such other elections as it may deem advisable to reduce Company taxable income to the maximum extent possible and to take deductions in the earliest Taxable Year possible; and 

(vii) 

To make the election provided under Code Section 754 and any corresponding
provision of applicable state law at the request of any Member. 

(g) 

To the extent permitted by law, the Members agree to report their tax items with
respect to, and arising from, their interests in the Company in a manner that is
consistent with the Company’s tax returns. 

(h) 

Notwithstanding any other provisions of this Agreement, the provisions of this Section 6.7 shall survive the dissolution of the Company or the termination of any Member’s interest in the Company and
shall remain binding on all Members for a period of time necessary to resolve with the Internal Revenue Service (“IRS”) or any applicable state or local taxing authority all matters (including litigation) regarding the U.S. Federal,
state and local income taxation, as the case may be, of the Company or any Member with respect to the Company.

(i) 

The Company shall take all steps necessary to be treated as a partnership for
U.S. federal income tax purposes. The Company shall not make an election or take
any action that would cause the Company to be excluded from the application of
the provisions of subchapter K of chapter 1 of subtitle A of the Code or any
similar provision of applicable state law, and no provision of this Agreement
shall be construed to sanction or approve such election or action. No election
shall be made for the Company to be treated as a corporation, or an association
taxable as a corporation, under the Code or any provision of any state or local
tax laws.

(j) 

It is the intent of the Members that the Company and the Company Property be managed so as to ensure that the Members of the Company shall be entitled to claim the Renewable Electricity Production Credits provided
under Sections 38(b)(8) and 45 of the Code with respect to all electricity sold by the Company during the 10-year period set forth in Section 45(a)(2)(A)(ii) of the Code in proportion with their allocation of Net Profits and Net Losses under
Article IX. No Member shall act in any manner that is inconsistent with the allocation of the Renewable Electricity Production Credits set forth in this Agreement.

(k) 

The Company and Member B hereby represent, warrants and covenant to Member A as
follows:

(i) 

At all times prior to the date hereof, the Company will have had a single owner
and will not have made an election to be treated as a corporation under Treasury
Regulations Section 301.7701 -3; 

(ii) 

Member B will not claim an energy credit under Section 48 with respect to the
operations of the Company;

(iii) 

Neither Member B nor the Company has or will receive: (a) any grants from the United States, a State, or a political subdivision of a State for use in connection with the transactions contemplated hereby; (b)
proceeds of an issue of State or
local government obligations used to provide financing for the transactions contemplated hereby the interest on which is exempt from tax under Section 103; (c) any subsidized energy financing provided (directly or indirectly) under a Federal, State
or local program provided in connection with the transactions contemplated hereby; or (d) any credit allowable with respect to any property or business in connection with the transactions contemplated hereby (other than the Renewable Energy
Production Credits); 

 

(iv) 

Member B expects to have adequate assets, other than its interest in the
Company, to satisfy its obligations, if any, under Section 9.2(f)(ii) of this
Agreement; and 

(v) 

Neither Member B nor the Company is directly or indirectly related to the Idaho
Power Company in any capacity.

ARTICLE VII. 

RESTRICTIONS ON TRANSFERABILITY; ADMISSION OF NEW MEMBERS

Section 7.1

Transfers.

(a) 

Member A may sell, transfer, assign, pledge, encumber, hypothecate or otherwise dispose of (a “Transfer”) all or any of its Units without the approval of any other Member; provided,
however, that if any such Transfer is to be made during the First Distribution Period prior to the full funding of the Capital Contributions contemplated to be made by Member A pursuant to Section 8.1, such Transfer may only be made if (i)
Member A remains obligated with respect to such Capital Contributions, or (ii) Member B has consented in writing to such Transfer (which consent may not be unreasonably withheld, delayed or conditioned). Notwithstanding the foregoing, Member A may
not Transfer all or any of its Units to a Competitor unless (1) the O&M Agreement has been terminated in accordance with its terms or
(2) neither Member B nor any Affiliate of Member B is the Operator.

(b) 

Member B shall
not Transfer any Class B Unit except as provided in this

Section 7.1(b). During the First Distribution Period, Member B may sell its Class B Units with the written consent of Member A, which consent may be given or withheld, conditioned or delayed, by Member A in its sole discretion; provided,
however, that if neither Member B nor any of its Affiliates is then acting as the Operator of the Project, then Member B may sell its Class B Units with the written consent of Member A, which consent shall not be unreasonably withheld, delayed
or conditioned. At any time after the First Distribution Period, Member B may sell its Class B Units with the written consent of Member A, which consent shall not be unreasonably withheld, delayed or conditioned.

Section 7.2 

Admission of Transferee as Member.

A transferee of a Unit desiring to be admitted as a Member must execute and deliver to the Company a counterpart of, or an agreement adopting, this Agreement, in form and substance satisfactory to the Company. Subject
to compliance with Section 7.1, upon such execution and delivery, such transferee shall be admitted as a Member and the transferee shall
have, to the extent of the Unit transferred, the rights and powers and shall be subject to the restrictions and liabilities of a Member under this Agreement, the Certificate of Formation and the Act. The transferee shall also be liable, to the
extent of the Unit transferred, for the unfulfilled obligations, if any, of the transferor Member to make Capital Contributions, but shall not be obligated for liabilities unknown to the transferee at the time such transferee was admitted as a
Member and that could not be ascertained from this Agreement. Whether or not the transferee of a Unit becomes a Member, the transferor Member shall not be released from any liability to the Company under this Agreement, the Certificate of Formation
or the Act. 

Section 7.3 

Admission of Additional Members.

Additional Members of the Company may only be added if the addition of any such proposed additional Member is approved in writing, prior to such admission, by all of the then-existing Members and, in each such case,
such proposed additional Member satisfies the requirements of Section 7.2. All Units issued following the date hereof shall be either Class A Units or Class B Units, or a new class of Units, as shall be agreed at such time among the
Members.

ARTICLE VIII. 

CAPITAL OF THE COMPANY

Section 8.1 

Capital Contributions on or Prior to the Effective Time.

Member A and Member B have made the following Capital Contributions in the aggregate amounts set forth below prior to or on the Effective Time:

  
	
Member
		
Capital Contribution (Cash)
	
	
Member A
		
$ 100
	
	
Member B
		
$ 5,000,000
	
	
 
		
 
	
	
 
		
 
	
	
Member
		
Capital Contribution (Property)
	
	
Member A
		
$ 0
	
	
Member B
		
$ 882,803
	

  

Section 8.2 

Further Required Capital Contributions.

Following the Effective Time, Member A irrevocably agrees to make the Capital Contributions in the amounts and on the dates indicated on Schedule 5 attached hereto (each a “Capital Call”);
provided, that Member A shall not be required to make any Capital Call until each of the conditions precedent identified on Schedule 6 attached hereto have been satisfied or waived by Member A; and, provided, further,
that Member B may reallocate the amounts indicated on Schedule 5 among the scheduled times (so long as the aggregate amount of Capital Calls made by Member A and scheduled to be made by Member A does not exceed $34,170,000) by giving
written notice to Member A at least ten (10) Business Days prior to the date scheduled for a Capital Call.

Following the Effective Time, Member B shall make or cause to be made all of the transfers listed in the Transfer Plan under the heading “Transfer Required” as Capital Contributions of property, to be valued
as described in Section 8.4.

Neither Member A nor Member B shall be obligated to make any Capital Contributions other than such Member’s Capital Contribution set forth in Section 8.1 and this Section 8.2. Each Party agrees that
no additional Capital Contributions or Capital Calls may be made without the consent of all Parties to this Agreement.

Section 8.3

Return of Capital Contributions.

Except as otherwise provided herein or in the Act, no Member shall have the
right to withdraw, or receive any return of, all or any portion of such Member’s
Capital Contribution. 

Section 8.4

In-Kind Contributions.

The fair market value of contributions of property, other than cash, made under this Article VIII shall be the value agreed upon by the Members.

Section 8.5

Interest.

No interest shall be paid by the Company on Capital Contributions or on balances in Members’ Capital Accounts. 

Section 8.6

Loans From Members.

Loans by a Member to the Company shall not be considered Capital Contributions. If any Member shall advance funds to the Company in excess of the amounts required hereunder to be contributed by such Member to the
capital of the Company, the making of such advances shall not result in any increase in the amount of the Capital Account of such Member. The amounts of any such advances shall be a debt of the Company to such Member and shall be payable or
collectible only out of the Company Property in accordance with the terms and conditions upon which such advances are made. The repayment of loans from a Member to the Company upon liquidation shall be subject to the order of priority set forth in
Section 12.2.

ARTICLE IX.

CAPITAL ACCOUNTS, PROFITS AND LOSSES AND ALLOCATIONS

Section 9.1

Capital Accounts.

(a) 

The Company shall maintain a capital account for each Member in accordance with Section 704 of the Code and the Treasury Regulations thereunder (each, a “Capital Account”). Each Member’s
Capital Account as of the Effective Date will equal its Capital Contributions made under Article VIII as of such date. 

(b)

 The Capital Account of each Member will be increased by (i) the amount of any cash and the agreed Book Value of any property (net of liabilities encumbering the
property), as of the date of contribution, contributed as a Capital Contribution to the capital of the Company by that Member upon the agreement of all of the parties to this Agreement, as contemplated by Section 8.2, (ii) the amount of any
Net Profits allocated to that Member, (iii) any items of income specially allocated to that Member under this Article IX, (iv) that Member’s pro rata share (determined in the same manner as that Member’s share of Net Profits
pursuant to Section 9.2) of income of the Company that is exempt from tax. The Capital Account of each Member will be decreased by (i) the amount of any Net Losses allocated to that Member, (ii) the amount of distributions to that Member,
(iii) any deductions specially allocated to that Member under this Article IX, and (iv) that Member’s pro rata share (determined in the same manner as that Member’s share of Net Losses pursuant to Section 9.2) of any
other expenditures of the Company that are not deductible in computing Company Net Profits or Net Losses and which are not chargeable to capital account. In all respects, the Member’s Capital Accounts will be determined in accordance with the
detailed capital accounting rules set forth in Section 1.704 -1(b)(2)(iv) of the Treasury Regulations and will be adjusted upon the occurrence of certain events as provided in Section 1.704 -1(b)(2)(iv)(f) of the Treasury Regulations. 

(c) 

A transferee of all (or a portion) of a Unit will succeed to the Capital
Account (or portion of the Capital Account) attributable to the transferred Interest. 

Section 9.2 

Profits and Losses.

(a)  

The net profits and net losses of the Company (“Net Profits” and “Net Losses”) will be the net income or net loss (including capital gains and losses and percentage depletion
deductions under Section 613 of the Code), respectively, of the Company determined for each Fiscal Year in accordance with the accounting method followed for federal income tax purposes, except that in computing Net Profits and Net Losses, all
depreciation and cost recovery deductions will be deemed equal to Depreciation and gains or losses will be determined by reference to Book Value rather than tax basis. Whenever a proportionate part of the Net Profits or Net Losses is allocated to a
Member, every item of income, gain, loss, deduction or credit entering into the computation of such Net Profits or Net Losses or arising from the transactions with respect to which such Net Profits or Net Losses were realized will be credited or
charged, as the case may be, to such Member in the same proportion; except that “recapture income,” if any, will be allocated to the Members who were allocated the corresponding Depreciation deductions.

(b) 

If any Member transfers all or any part of its Interest during any Fiscal Year or its Interest is increased or decreased, Net Profits and Net Losses attributable to that Interest for that Fiscal Year (except as
otherwise provided below) will be apportioned between the transferor and transferee or computed as to such Members, as the case may be, in accordance with the method selected by the Managers, as long as such apportionment is permissible under the
Code and applicable regulations thereunder. 

(c) 

During each Fiscal Year during the First Distribution Period (and in any event
until the end of the Class A Initial Allocation Period, if longer than the First
Distribution Period), Net Profits or Net Losses shall be allocated 99% to Member
A and 1% to Member B. 

(d)

 Subject to, and after giving effect to, Section 9.2(f), during each Fiscal Year after the end of the period described in Section 9.2(c), Net Profits and Net Losses shall be allocated as follows:

(i) 

Net Profits for any Fiscal Year shall be allocated in the following order and
priority: 

(A)  

First, Net Profits shall be allocated to the Members in an amount equal to the excess, if any, of (x) the cumulative Net Losses allocated to each Member pursuant to Section 9.2(d)(ii) for all prior Fiscal
Years beginning after the period described in Section 9.2(c), over (y) the cumulative Net Profits allocated to each such Member pursuant to this Section 9.2(d)(i)(A) for all such prior Fiscal Years. Such amounts shall be allocated
among the Members in proportion to previous allocations of Net Losses so as to offset such allocations of Net Losses that have not been previously offset by allocations pursuant to this Section 9.2(d)(i)(A), in reverse order to that in which
such Net Losses were originally allocated.

(B)  

Second, any remaining Net Profits shall be allocated to the Members in an amount equal to the excess, if any, of (x) the cumulative distributions to Members of Available Cash pursuant to Section 10.1(c) for
the current Fiscal Year and all prior Fiscal Years beginning after the end of the period described in Section 9.2(c), over (y) the cumulative Net Profits allocated to Members pursuant to this Section 9.2(d)(i) for all such prior Fiscal
Years. Such amounts shall be allocated among the Members in proportion to their relative cumulative distributions for which allocations have not previously been made pursuant to this Section 9.2(d)(i)(B).

(C) 

Third, in all Fiscal Years during the Second Distribution Period, any remaining
Net Profits shall be allocated 51% to Member A and 49% to Member B. 

(D) 

Fourth, in all Fiscal Years during the Third Distribution Period, any remaining
Net Profits shall be allocated 80% to Member B and 20% to Member A. 

(ii) 

Net Losses for any Fiscal Year shall be allocated in the following order and
priority: 

(A) 

First, Net Losses shall be allocated to the Members in an amount equal to the excess, if any, of (x) the cumulative Net Profits allocated to each Member pursuant to Section 9.2(d)(i)(C) or (D) for all
prior Fiscal Years beginning after the period described in Section 9.2(c), over (y) the cumulative Net Losses allocated to each Member pursuant to this Section 9.2(d)(ii)(A) for all such prior Fiscal Years. Such amount shall be
allocated among the Members in proportion to previous
allocations of Net Income so as to offset previous allocations of Net Income not previously offset by allocations pursuant to this Section 9.2(d)(ii)(A), in reverse order to that in which such Net Income was previously allocated.

(B) 

Second, any remaining Net Losses shall be allocated to the Members in proportion
to and to the extent of the Members’ positive Capital Account balances. 

(C) 

Third, in all Fiscal Years during the Second Distribution Period, any remaining
Net Losses shall be allocated 51% to Member A and 49% to Member B. 

(D) 

Fourth, in all Fiscal Years during the Third Distribution Period, any remaining
Net Losses shall be allocated 80% to Member B and 20% to Member A.

(e) 

Notwithstanding anything to the contrary in Sections 9.2(a), (b), (c) and (d) hereof, if and to the extent the Tax Matters Member determines that an allocation of depreciation, depletion
or other item of tax loss or deduction to Member A would cause Member A’s Capital Account to fall below zero (or, if Member A’s Capital Account is less than zero before such allocation, would increase the amount by which Member A’s
Capital Account is less than zero), only the portion of such item or items that can be allocated to Member A without causing Member A’s Capital Account to fall below zero (or to increase the amount by which Member A’s Capital Account is
less than zero) shall be allocated to Member A. The remainder of any such item or items shall be allocated to Member B. 

(f) 

Notwithstanding Sections 9.2(c), (d) and (e) hereof,

(i)  

For federal income tax purposes (but not for purposes of crediting
or charging Capital Accounts), Depreciation or gain or loss realized by the Company with respect to any property that was contributed to the Company or that was held by the Company at a time when the Book Value of the Company Property was adjusted
in accordance with the third sentence of Section 9.1(b) will, in accordance with Section 704(c) of the Code and Sections 1.704 -1(b)(2)(iv)(d) and (f) of the Treasury Regulations, be allocated among the Members in a manner which takes into
account the differences between the adjusted basis for federal income tax purposes to the Company of its interest in such property and the fair market value of such interest at the time of its contribution or revaluation. The Company shall adopt the
traditional method with curative allocations as specified in Section 1.704 -3(c) of the Treasury Regulations with respect to allocations governed by Section 704(c) of the Code or such other method selected by the Tax Matters Member; and 

(ii) 

If any Member receives an adjustment, allocation or distribution that causes such Member to have a deficit Capital Account balance as of the liquidation of such Member’s Units (taking into account all capital
account adjustments for the Fiscal Year during which such liquidation occurs, other than those adjustment made as a
result of this Section 9.2(f)(ii)), such Member shall be unconditionally obligated to restore the amount of such deficit balance to the partnership by the end of such Fiscal Year (or, if later, within 90 days after the date of such
liquidation), which amount shall, upon liquidation of the partnership, be paid to creditors of the partnership or distributed to other partners in accordance with their positive capital balances (in accordance with Article XII). This
provision is intended and shall be interpreted to comply with the requirements of Section 1.704 -1(b)(2)(ii)(b)(3) of the Treasury Regulations. 

(iii)  

To the extent and in the manner provided in Section 1.704 -2(f) of the Treasury Regulations, if there is a net decrease in Company Minimum Gain during any Fiscal Year each Member shall be specially allocated items
of Company income and gain for such year (and, if necessary, subsequent years) in an amount equal to such Member’s share of the net decrease in Company Minimum Gain, determined in accordance with Section 1.704 -2(g) of the Treasury Regulations.
This Section 9.2(f)(iii) is intended to comply with the minimum gain chargeback requirement in Section 1.704 -2(f) of the Treasury Regulations and shall be interpreted consistently therewith.

(iv)  

To the extent and in the manner provided in Section 1.704 -2(i)(4) of the Treasury Regulations, if there is a net decrease in Member Minimum Gain attributable to a Member Nonrecourse Liability during any Fiscal
Year, each Member who has a share of the Member Minimum Gain attributable to such Member Nonrecourse Liability shall be specially allocated items of Company income and gain for such year (and, if necessary, subsequent years) in an amount equal to
such Member’s share of the net decrease in Member Minimum Gain attributable to such Member Nonrecourse Liability, determined in accordance with Section 1.704 -2(i)(4) of the Treasury Regulations. The items to be so allocated shall be determined
in accordance with Sections l.704-2(i)(4) and 1.704 -2(j)(2) of the Treasury Regulations. This Section 9.2(f)(iv) is intended to comply with the minimum gain chargeback requirement in Section 1.704 -2(i)(4) of the Treasury Regulations
and shall be interpreted consistently therewith.

(v) 

Nonrecourse Deductions for any Fiscal Year shall be specially allocated to
Member A and Member B in accordance with the Members’ interest in Available Cash
for such year. 

(vi) 

Any Member Nonrecourse Deductions for any Fiscal Year shall be specially
allocated to the Member who bears the economic risk of loss with respect to the
Member Nonrecourse Liability to which such Nonrecourse Deductions are
attributable in accordance with Section 1.704 -2(i)(1) of the Treasury
Regulations. 

(g) 

All Renewable Energy Production Credits generated by the Company, together with any other Tax credits generated by the Company, shall be allocated in the same manner in which Net Profits and Net Losses for such
Fiscal Year are allocated pursuant to this Article IX.

(h) 

Notwithstanding anything in this Section 9.2 to the contrary, in any Fiscal Year, all items of gross income of the Company attributable to the receipt of REC Income by the Company shall be allocated, and all
Available Cash which results from such REC Income in that Fiscal Year shall be distributed, (i) 30% to Member A and 70% to Member B, up to the amount of REC Income for such Fiscal Year identified on Schedule 8, and (ii) 50% to Member A and
50% to Member B with regard to any REC Income which exceeds the applicable scheduled amount as set forth on Schedule 8 for any Fiscal Year and with regard to any REC Income earned in a Fiscal Year for which no corresponding amount appears on
Schedule 8.

(i)  

Notwithstanding anything in this Section 9.2 to the contrary, the allocations made pursuant to this Article IX are intended to comply with Section 704(b) of the Code and the Treasury Regulations
promulgated thereunder. The parties hereto shall work together to amend this Agreement (including this Article IX and Article X), if necessary, to comply with this Section 9.1(h).

ARTICLE X.

APPLICATIONS AND DISTRIBUTIONS

OF AVAILABLE CASH

Section 10.1

Applications and Distributions.

(a) 

The Company will distribute Available Cash for each Fiscal Year (other than the Fiscal Year in which the Company liquidates) in accordance with Section 10.1(b) or (c), as applicable; provided
that the Managers may reserve amounts for potential or pending litigation and other actual or potential liabilities in such amounts and for such period of time (not to exceed five (5) years from the final sale of Interests) as the Managers deem
appropriate. Subject to this Section 10.1(a), the Company will make any such distributions to the Members in accordance with Section 10.1(b) or (c), as applicable. In applying the terms of Sections 10.1(b) and (c),
(i) until a particular priority has been satisfied in full, no amounts will be distributable under any junior priority, (ii) the Members identified at each level of priority shall receive distributions at the same time without preference or priority
of one Member over another until all Members at that level have received the full amount to which they are entitled and before any distributions are made or paid to any Members for amounts in a lower level of priority and (iii) all amounts
distributable under a particular priority will be prorated among the Members in the manner specified within the priority, and the method of proration applied to each dollar distributable in that priority will be the same until that priority is
satisfied in full.

(b) 

Except as otherwise provided in Section 9.2(h), Available Cash with respect to any Fiscal Quarter during the Class B Initial Distribution Period will be distributed on each Distribution Date in accordance
with the following order of priorities: 

(i) 

First, in the event that as of any Distribution Date there is a Class A
Distribution Deficiency greater than $350,000, 100% to Member A until the Class
A Distribution Deficiency is $350,000 or less; 

(ii) 

Second, 100% to Member B until Member B has received the Class B Initial Distribution Amount with respect to such Fiscal Year (in the event that
Available Cash with respect to any such Fiscal Year is less than the Class B Initial Distribution Amount with respect to such year, Member B shall not be entitled to any such shortfall in subsequent Fiscal Years); and 

(iii)

Third, 100% to Member A.

(c) 

Except as otherwise provided in Section 9.2(h), Available Cash with respect to any Fiscal Quarter after the Class B Initial Distribution Period will be distributed on each Distribution Date in accordance with
the following order of priorities: 

(i) 

First, in the event that as of any Distribution Date there is a Class A
Distribution Deficiency greater than $350,000, all Available Cash will be
distributed to Member A until the Class A Distribution Deficiency is $350,000 or
less.

(ii) 

Second, 99% to Member A and 1% to Member B until the Class A Target Yield has
been realized; 

(iii) 

Third, in all Fiscal Quarters prior to and including the last day of the Second
Distribution Period, 51% to Member A and 49% to Member B; and 

(iv) 

Fourth, in any Fiscal Quarter after the Fiscal Year in which the first day of
the Third Distribution Period occurs, 80% to Member B and 20% to Member A.

Section 10.2

Liquidation.

In the event of the sale or other disposition of all or substantially all the Company Property, the Company will be dissolved and the proceeds of the sale or disposition will be distributed to the Members in liquidation
as provided in Article XII.

Section 10.3

 Withholding Taxes.

The Managers may withhold or cause to be withheld from any Member’s distributions from the Company any amounts on account of taxes or similar charges, if any, as are required to be withheld by applicable law. Any
amounts withheld by the Company pursuant to this Section 10.3, shall be timely remitted by the Company to the appropriate taxing authority. Any amounts withheld or offset by the Managers in accordance with this Section 10.3 will
nevertheless, for purposes of this Agreement, be treated as if they had been distributed to the Member from which they are withheld.

ARTICLE XI.

DISSOLUTION

Section 11.1

Dissolution Events.

(a)

The Company shall dissolve and commence winding up upon the first to occur of the following: (i) after the written direction of the Managers, (ii) the termination of the legal existence of the last remaining member
of the Company or the occurrence of any other
event which terminates the continued membership of the last remaining member of the Company in the Company unless the Company is continued without dissolution in a manner permitted by this Agreement or the Act or (iii) the entry of a decree of
judicial dissolution under Section 18-802 of the Act. Upon the occurrence of any event that causes the last remaining member of the Company to cease to be a member of the Company (other than upon continuation of the Company without dissolution upon
(i) an assignment by such member of all of its limited liability company interest in the Company and the admission of the transferee pursuant to this Agreement, or (ii) the resignation of such member and the admission of an additional member of the
Company pursuant to this Agreement), to the fullest extent permitted by law, the personal representative of such member is hereby authorized to, and shall, within ninety (90) days after the occurrence of the event that terminated the continued
membership of such member in the Company, agree in writing (i) to continue the Company and (ii) to the admission of the personal representative or its nominee or designee, as the case may be, as a substitute member of the Company, effective as of
the occurrence of the event that terminated the continued membership of such member in the Company.

 

(b) 

Notwithstanding any other provision of this Agreement, the Bankruptcy of a
Member shall not cause such Member to cease to be a member of the Company and
upon the occurrence of such an event, the Company shall continue without
dissolution. 

(c) 

Notwithstanding anything herein to the contrary, the Company shall comply with
any applicable requirements of the Act pertaining to the winding up of the
affairs of the Company and the final distribution of its assets. Upon the
completion of the winding up, liquidation and distribution of the assets, the
Company shall be terminated when the Certificate is cancelled in the manner
required by the Act. The existence of the Company as a separate legal entity
shall continue until cancellation of the Certificate as provided in the Act.

ARTICLE XII. 

LIQUIDATION

Section 12.1

 Responsibility for Winding Up.

Upon dissolution of the Company pursuant to Article XI, the Managers, or the authorized representative of the Managers, shall be responsible for overseeing the winding up and liquidation of the Company and shall
take full account of the Company’s liabilities and assets.

Section 12.2 

Distribution of Assets Upon Winding Up.

Upon the winding-up of the Company, the assets will be distributed as follows:

(a) 

to the payment of expenses of the liquidation;

	(b) 

to the payment of debts and liabilities of the Company, including debts
and liabilities owed to Members (other than liabilities for distributions to Members and former members under Section 18-601 or Section 18-604 of the Act) to the extent permitted by applicable law, in order of priority as provided by applicable law; 

 

(c) 

to the setting up of any reserves that the Managers or the liquidating trustee,
as the case may be, determines are reasonably necessary for the payment of any
contingent or unforeseen liabilities or obligations of the Company or the
Members;

(d) 

to the payment of debts and liabilities of the Company owed to Members to the extent not paid under Section 12.2(b); and

(e) 

to the Members in accordance with their positive Capital Account balances after giving effect to the allocations provided in Article IX for such year. 

ARTICLE XIII. 

INDEMNIFICATION; EXCULPATION

Section 13.1

Indemnification of Members.

To the fullest extent not prohibited by law, the Company shall indemnify and hold harmless each Member from and against any and all losses, claims, demands, costs, damages, liabilities (joint and several), expenses of
any nature (including attorneys’ fees and disbursements), judgments, fines, settlements, and other amounts arising from any and all claims, demands, actions, suits, or proceedings, civil, criminal, administrative or investigative, in which a
Member may be involved, or threatened to be involved, as a party or otherwise, arising out of or incidental to any business of the Company transacted or occurring while a Member was a Member, regardless of whether the Member continues to be a Member
of the Company at the time any such liability or expense is paid or incurred, unless such act or failure to act was the result of willful misfeasance, gross negligence or fraud of such Member.

Section 13.2 

Indemnification of Managers, Officers, Employees and Agents.

Each person who was or is made a party or is threatened to be made a party to or is otherwise involved in any action, suit or proceeding, whether civil, criminal, administrative or investigative (hereinafter a
“proceeding”) by reason of the fact that he or she is or was serving as a Manager, officer, employee or agent of the Company or, at the request of the Company, another limited liability company or of a corporation, partnership,
joint venture, trust or other enterprise, including a service with respect to an employee benefit plan (hereinafter an “indemnitee”), whether the basis of such a proceeding is alleged action in an official capacity as a Manager, officer,
employee or agent or in any other capacity while serving as a Manager, officer, employee or agent, shall be indemnified and held harmless by the Company to the fullest extent authorized by the Act, as the same exists or may hereafter be amended
(but, in the case of any such amendment, only to the extent that such amendment permits the Company to provide broader indemnification rights than such law permitted the Company to provide prior to such amendment), against all expense, liability and
loss (including attorneys’ fees, judgments fines, excise taxes or penalties and amounts paid in settlement) reasonably incurred or suffered by such indemnitee in connection therewith, unless such act or failure to act was the result of willful
misfeasance, gross negligence or fraud of such indemnitee.

Section 13.3

Exculpation.

(a) 

No Member, Manager or officer shall be liable to the Company for any loss,
damage or claim incurred by reason of any act or omission performed or omitted
by such Member, Manager or officer in good faith on behalf of the Company. 

(b)  

No Member, Manager or officer shall be liable to the Members or to the Company for any act or failure to act on behalf of the Company, unless such act or failure to act resulted from the willful misfeasance, gross
negligence or the fraud of such Person.

(c)  

Each Member, Manager and officer shall be fully protected in relying in good faith upon the records of the Company and upon such information, opinions, reports or statements presented to the Company by any Person as
to matters such Member or Manager reasonably believes are within such Person’s professional or expert competence.

(d) 

Each Manager may consult with counsel and accountants in respect of the affairs
of the Company at the Company’s sole expense and shall be fully protected and
justified in any action or inaction which is taken in good faith in accordance
with the advice or opinion of such counsel or accountants. 

(e)  

Notwithstanding the foregoing, the provisions of this Section 13.3 shall not be construed so as to relieve (or attempt to relieve) a Member, Manager or officer of any liability, to the extent (but only to the
extent) that such liability may not be waived, modified or limited under Applicable Law, but shall be construed so as to effectuate the provisions of this Section 13.3 to the fullest extent permitted by law.

ARTICLE XIV.

MISCELLANEOUS

Section 14.1

Governing Law.

The laws of the State of Delaware shall govern the validity of this Agreement, the construction of its terms, and the interpretation of the rights, obligations and duties of the Members and Managers hereunder, without
giving effect to any choice of law or conflict of law provision or rule (whether of the State of Delaware or any other jurisdiction) that would cause the application of the laws of any jurisdiction other than the State of Delaware. 

Section 14.2 

Binding Effect; Entire Agreement.

Except as otherwise provided in this Agreement, every covenant, term, and provision of this Agreement shall be binding upon and inure to the benefit of the Members and their respective legal representatives, successors,
transferees, and assigns. This Agreement constitutes the entire agreement of the parties with respect to the subject matter hereof.

Section 14.3 

Creditor’s Interest in the Company.

No creditor who makes a loan to the Company shall have or acquire at any time as a result of making the loan any direct or indirect interest in the profits, capital or property of the Company, other than such interest
as may be accorded to a secured creditor.

Section 14.4

Headings.

Article and other headings contained in this Agreement are for reference purposes only and are not intended to describe, interpret, define, or limit the scope, extent or intent of this Agreement or any provision hereof.

Section 14.5

Amendments.

This Agreement may only be amended with the written consent of the Members.

Section 14.6

Severability.

Every provision of this Agreement is intended to be severable. If any term or provision hereof is illegal or invalid for any reason whatsoever, such illegality or invalidity shall not affect the validity or legality of
the remainder of this Agreement.

Section 14.7

Incorporation by Reference.

Every schedule, exhibit or other appendix attached to this Agreement and referred to herein is hereby incorporated into this Agreement by reference.

Section 14.8

Variation of Pronouns.

All pronouns and any variations thereof shall be deemed to refer to masculine, feminine, or neuter, singular or plural, as the identity of the Person or Persons may require. 

Section 14.9

No Third-Party Beneficiaries.

No term or provision of this Agreement is intended to or shall be for the benefit of any Person, firm, corporation or other entity not a party hereto, and no such other Person, firm, corporation or other entity shall
have any right or cause of action hereunder. 

Section 14.10 

Counterpart Execution; Facsimile Signatures.

This Agreement may be executed in any number of counterparts pursuant to original or facsimile copies of signatures with the same effect as if the relevant party had signed the same document pursuant to original
signatures. All counterparts shall be construed together and shall constitute one agreement.

Section 14.11 

Confidentiality and Disclosure.

(a) 

Each Party agrees (on behalf of itself and each of its Affiliates, members,
directors, officers, employees and representatives) that, except as may
otherwise be agreed by the
Party disclosing Confidential Information, the Party receiving Confidential Information will hold in complete confidence, in accordance with its customary procedures for handling confidential information and in accordance with safe and sound
practices, and not disclose it to any other Person; provided, that the receiving Party may disclose Confidential Information:

(i)  

to those of its and its Affiliates’ officers, directors, employees, counsel, auditors, accountants, examiners, consultants, advisors and sources of financing (collectively, the
“Representatives”) who need to know such Confidential Information for the purpose of discussing, advising with respect to or evaluating the Project or the Company or an investment in the Project or the Company (it being understood
and agreed that the receiving Party shall have advised such persons of their obligations concerning the confidentiality of all client affairs and information and shall instruct such persons to maintain the confidentiality of such Confidential
Information);

(ii) 

as may be required by a rule or other requirement of a securities regulator, a
stock exchange or a self-regulatory organization;

(iii) 

in or pursuant to any offering statement or similar document provided to
purchasers or potential purchasers of any direct or indirect ownership interests
in the Company;

(iv)

 in an action or proceeding brought in pursuit of its rights or in the
exercise of its remedies under this Agreement or any other Project Document;

(v) 

to any rating agency or potential lender to the Company or the
Party; 

(vi) 

to any potential purchaser of output of the Project or the output of
Phase II or other geothermal projects in which Member B is a participant, provided that any such potential purchaser has agreed to confidentiality undertakings with respect thereto under a confidentiality agreement that is at least as
restrictive as this agreement in all applicable respects;

(vii) 

to any provider or potential provider of hedging or risk management in
connection with any transaction related to the transactions contemplated by the
Project Documents; and 

(viii) 

as requested or required in connection with a judicial, administrative or
regulatory proceeding in which a Party or a partner, officer, member, director,
employee or Affiliate thereof is involved, pursuant to a court order or subpoena
or regulatory or government inquiry or demand or as otherwise by law or
regulation.

In the event that the receiving Party receives a request to disclose any Confidential Information under clause (viii) in the prior sentence, it will (a) promptly notify the disclosing Party thereof (to the extent permitted by law or regulation and
reasonably practicable) so that the disclosing Party may seek a protective order or otherwise seek to resist or narrow such request and (b) if the receiving Party is nonetheless required to make such disclosure or if it is advised by its counsel
that such disclosure is necessary, it will take reasonable steps, at disclosing Party’s request and
expense, to attempt to obtain or help the disclosing Party obtain an order or other reliable assurance that confidential treatment will be accorded to such portion of the disclosed information.

(b) 

Each Member agrees to consult with the other Members before issuing any press release or otherwise making any public or press statement with respect to this Agreement and the transactions contemplated hereby and the
Project and, except as may be necessary for such Member or any of its Affiliates to comply with the requirements of Applicable Law or of any stock exchange or self-regulatory organization, agrees not to issue any such press release or make any such
public or press statement without the prior written approval of the other Members, which shall not be unreasonably withheld; provided, that written approval shall be deemed to be given by any Member that fails to respond within five days of
receiving the notice of intention from a Member to issue a press release or make any public or press statement with respect to this Agreement and the transactions contemplated hereby and the Project.

(c) 

Notwithstanding anything herein to the contrary, any Member (and any owner, member, partner, director, officer, employee, agent, representative, adviser of any Member, and any Affiliate of the foregoing) may
disclose to any and all Persons, without limitation of any kind, the tax treatment and tax structure of the transactions contemplated by this Agreement and the Project and all materials of any kind (including opinions or other tax analyses) that are
provided to it relating to such tax treatment and tax structure; provided, that any such information relating to the Federal income tax treatment or tax structure shall remain subject to the provisions of this Section 14.11 (and the foregoing
sentence shall not apply) to the extent reasonably necessary to enable any Person to comply with applicable securities laws. For this purpose, “tax treatment” means Federal income tax treatment and “tax structure” is limited to
any facts relevant to the Federal income tax treatment of the transactions. 

(d) 

Notwithstanding any of the foregoing in this Section 14.11, in connection with any offering of securities by Member B or an affiliate (the “Issuer”), in which Member A or an affiliate (the
“GS Entity”) is involved as underwriter, dealer, agent or other similar participant, nothing in this agreement shall (i) prevent either the Issuer or the GS Entity from complying with all applicable disclosure laws, regulations and
principles in connection with such offering or sale of securities, (ii) restrict the ability of the GS Entity to consider information for due diligence purposes or to share information with other underwriters participating in such offering or sale
of securities, (iii) prevent the GS Entity from retaining documents or other information in connection with due diligence or (iv) prevent the GS Entity from using any such documents or other information in investigating or defending itself against
claims made or threatened by purchasers, regulatory authorities or others in connection with such an offering or sale of securities. 

Section 14.12

Amendment and Restatement.

This Agreement is an amendment and restatement, in its entirety, of the Original Operating Agreement, and from and after the Effective Date as of the Effective Time the Original Operating Agreement shall be without
further force or effect. 

Section 14.13

Notices.

Unless otherwise provided herein, any offer, acceptance, election, approval, consent, certification, request, waiver, notice or other communication required or permitted to be given hereunder (collectively referred to
as a “Notice”), shall be in writing and delivered (a) in person, (b) by registered or certified mail with postage prepaid and return receipt requested or (c) by recognized overnight courier service with charges prepaid, directed to
the intended recipient at the address of such Member, as set forth on Schedule 1 hereto or at such other address as any Member hereafter may designate by giving Notice to the Members and the Managers in accordance with this Section
14.13. A Notice or other communication will be deemed delivered on the earliest to occur of (i) its actual receipt when delivered in person, (ii) the fifth Business Day following its deposit in registered or certified mail, with postage prepaid,
and return receipt requested or (iii) the second Business Day following its deposit with a recognized overnight courier service.

Section 14.14

Conference Telephone Meetings.

Meetings of the Members or the Managers may be held by means of conference telephone or similar communications equipment so long as all Persons participating in the meeting can hear each other. Participation in a
meeting by means of conference telephone shall constitute presence in person at such meeting, except where a Person participates in the meeting for the express purpose of objecting to the transaction of any business thereat on the ground that the
meeting is not lawfully called or convened. 

[SIGNATURE PAGES FOLLOW]

 

IN WITNESS WHEREOF, the undersigned have duly executed this Amended and Restated Operating Agreement of Raft River Energy I LLC as of August 9, 2006. 

  	

MEMBER A:

RAFT RIVER I HOLDINGS, LLC

By:   _____________________________

Name:

Title:

MEMBER B:

U.S. GEOTHERMAL INC.

By:  _____________________________

 Name:

 Title:

COMPANY:

RAFT RIVER ENERGY I LLC

By:   ____________________________

Name:

Title:

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