Document:

Investment Agreement

 Exhibit 10.1 

EXECUTION COPY 
  

 
 INVESTMENT AGREEMENT

 dated as of April 29, 2010 

between 

STERLING FINANCIAL CORPORATION 

and 

THOMAS H. LEE EQUITY FUND VI, L.P. 

THOMAS H. LEE PARALLEL FUND VI, L.P. 

and 

THOMAS H. LEE PARALLEL (DT) FUND VI, L.P. 

 
  

 TABLE OF CONTENTS 

 

					
	 	  	 	  	Page
	
	ARTICLE I
	
	Purchase; Closing
			
	1.1	  	Purchase	  	9
	1.2	  	Closing	  	10
	1.3	  	Treatment of Stock Plans	  	15
	
	ARTICLE II
	
	Representations and Warranties
			
	2.1	  	Disclosure	  	15
	2.2	  	Representations and Warranties of the Company	  	16
	2.3	  	Representations and Warranties of the Investors	  	37
	
	ARTICLE III
	
	Covenants
			
	3.1	  	Filings; Other Actions	  	39
	3.2	  	Expenses	  	42
	3.3	  	Access, Information and Confidentiality	  	42
	3.4	  	Conduct of the Business	  	43
	
	ARTICLE IV
	
	Additional Agreements
			
	4.1	  	Agreement	  	44
	4.2	  	No Rights Agreement	  	45
	4.3	  	Gross-Up Rights	  	46
	4.4	  	Governance Matters	  	48
	4.5	  	Legend	  	50
	4.6	  	Reservation for Issuance	  	51
	4.7	  	Indemnity	  	51
	4.8	  	Exchange Listing	  	53
	4.9	  	Registration Rights	  	53
	4.10	  	Articles of Amendment	  	66
	4.11	  	Voting	  	66
	4.12	  	Additional Regulatory Matters	  	66
	4.13	  	Most Favored Nation	  	67

  

 -1- 

					
	4.14	  	No Change in Control	  	67
	4.15	  	Listing Authorization	  	67
	4.16	  	Continued Listing Authorization	  	67
	4.17	  	Other Private Placements	  	68
	4.18	  	Certain Other Transactions	  	68
	4.19	  	Transfer Restrictions	  	70
	
	ARTICLE V
	
	Termination
			
	5.1	  	Termination	  	70
	5.2	  	Effects of Termination	  	71
	
	ARTICLE VI
	
	Miscellaneous
			
	6.1	  	Survival	  	71
	6.2	  	Amendment	  	71
	6.3	  	Waivers	  	72
	6.4	  	Counterparts and Facsimile	  	72
	6.5	  	Governing Law	  	72
	6.6	  	WAIVER OF JURY TRIAL	  	72
	6.7	  	Notices	  	72
	6.8	  	Entire Agreement, Etc.	  	73
	6.9	  	Other Definitions	  	74
	6.10	  	Captions	  	77
	6.11	  	Severability	  	77
	6.12	  	No Third Party Beneficiaries	  	77
	6.13	  	Time of Essence	  	77
	6.14	  	Certain Adjustments	  	77
	6.15	  	Public Announcements	  	77
	6.16	  	Specific Performance	  	78
	6.17	  	No Recourse	  	78

  

 -2- 

 LIST OF EXHIBITS 

 

			
	Exhibit A:	  	Form of Series B Certificate
	Exhibit B:	  	Form of Warrant
	Exhibit C:	  	Form of Opinion(s)
	Exhibit D:	  	Form of Amendment to Company Certificate of Incorporation
	Exhibit E:	  	Agreed Plan

  

 -3- 

 INDEX OF DEFINED TERMS 

 

			
	 Term
	  	 Location of
Definition

	Affiliate	  	6.9(2)
	Agency	  	2.2(y)(2)(A)
	Agreed Plan	  	4.2
	Agreement	  	Preamble
	Articles of Incorporation	  	Recitals
	Beneficially Own/Beneficial Owner/Beneficial Ownership	  	6.9(9)
	Benefit Plans	  	2.2(p)(1)
	BHC Act	  	1.2(c)(2)(xii)
	Board Representative	  	4.4(f)
	Business Combination	  	6.9(11)(C)
	business day	  	6.9(7)
	Capitalization Date	  	2.2(c)
	Cease and Desist Order	  	2.2(n)(4)
	Change in Control	  	6.9(11)
	Charter Amendment Proposal	  	3.1(b)
	CIBC Act	  	1.2(c)(1)(i)
	Closing	  	1.2(a)
	Closing Date	  	1.2(a)
	Code	  	1.2(c)(2)(v)
	Common Stock/Common Shares	  	Recitals
	Company	  	Preamble
	Company Financial Statements	  	2.2(f)
	Company Indemnified Parties	  	4.7(b)
	Common Price Adjustment	  	Recitals
	Company Preferred Stock	  	2.2(c)
	Company Option	  	2.2(c)
	Company Reports	  	2.2(g)(1)
	Company Restricted Stock	  	2.2(c)
	Company Significant Agreement	  	2.2(k)
	Company Subsidiary/Company Subsidiaries	  	2.2(b)
	Control/Controlling/Controlled by/under Common Control with	  	6.9(3)
	De Minimis Claim	  	4.7(e)
	Disclosed Agreements	  	2.2(s)(2)
	Disclosure Schedule	  	2.1(a)
	Employees	  	2.2(p)(1)
	Employment Agreements	  	4.14
	Environmental Law	  	2.2(u)
	ERISA	  	2.2(p)(1)
	ERISA Affiliate	  	2.2(p)(3)
	ERISA Plans	  	2.2(p)(2)
	Exchange Act	  	2.2(g)(1)

  

 -4- 

			
	 Term
	  	 Location of
Definition

	FDIC	  	2.2(b)
	Federal Reserve	  	1.2(c)(2)(xi)
	GAAP	  	2.1(b)
	Governmental Entity	  	1.2(c)(1)(i)
	Hazardous Substance	  	2.2(u)
	herein/hereof/hereunder	  	6.9(6)
	Holder	  	4.9(k)(1)
	Holders’ Counsel	  	4.9(k)(2)
	including/includes/included/include	  	6.9(5)
	Incumbent Directors	  	6.9(11)(A)
	Indemnified Party	  	4.7(c)
	Indemnifying Party	  	4.7(c)
	Indemnitee	  	4.9(g)(1)
	Information	  	3.3(b)
	Interim Financials	  	2.2(f)
	Insurer	  	2.2(y)(2)(C)
	Intellectual Property	  	2.2(w)
	Investment	  	Recitals
	Investors	  	Preamble
	Investor Indemnified Parties	  	4.7(a)
	IRS	  	2.2(i)(2)(i)
	IT Assets	  	2.2(w)
	Liens	  	2.2(b)
	Loan Investor	  	2.2(y)(2)(B)
	Losses	  	4.7(a)
	Material Adverse Effect	  	2.1(b)
	Material Event	  	4.9(a)(3)(C)
	NASDAQ	  	4.15
	New Security	  	4.3(a)
	Nominating Committee	  	4.4(a)
	Non-Qualifying Transaction	  	6.9(11)(C)
	Observer	  	4.4(d)
	or	  	6.9(4)
	Other Private Placements	  	Recitals
	Parent Corporation	  	6.9(11)(C)
	Par Value Change	  	1.2(c)(2)(xvii)
	Pending Underwritten Offering	  	4.9(l)
	Pension Plan	  	2.2(p)(2)
	person	  	6.9(8)
	Piggyback Registration	  	4.9(a)(4)
	Preferred Price Adjustment	  	Recitals
	Previously Disclosed	  	2.1(c)
	Purchase Price	  	1.2(b)

  

 -5- 

			
	 Term
	  	 Location of
Definition

	Qualifying Ownership Interest	  	4.4(a)
	Recapitalization Transactions	  	2.2(v)
	Register/registered/registration	  	4.9(k)(3)
	Registered	  	2.2(w)
	Registrable Securities	  	4.9(k)(4)
	Registration Expenses	  	4.9(k)(5)
	Regulatory Agreement	  	2.2(z)
	Required Approvals	  	2.2(e)
	Rule 144	  	4.9(k)(6)
	Rule 144A	  	4.9(k)(6)
	Rule 158	  	4.9(k)(6)
	Rule 159A	  	4.9(k)(6)
	Rule 405	  	4.9(k)(6)
	Rule 415	  	4.9(k)(6)
	Scheduled Black-out Period	  	4.9(k)(7)
	Scheduled Intellectual Property	  	2.2(w)(1)
	SEC	  	2.1(c)
	Securities	  	Recitals
	Securities Act	  	2.2(g)(1)
	Selling Expenses	  	4.9(k)(8)
	Series B Shares/Series B Stock	  	Recitals
	Series B Stock Articles of Amendment	  	Recitals
	Series C Shares/Series C Stock	  	Recitals
	Series D Shares/Series D Stock	  	Recitals
	Shelf Registration Statement	  	4.9(a)(2)
	Special Registration	  	4.9(i)
	Stock Plans	  	2.2(c)
	Stockholder Proposals	  	3.1(b)
	subsidiary	  	6.9(1)
	Surviving Corporation	  	6.9(11)(C)
	Tax/Taxes	  	2.2(i)
	Tax Return/Tax Returns	  	2.2(i)
	TARP Exchange	  	Recitals
	TARP Exchange Agreement	  	Recitals
	TARP Preferred Stock	  	Recitals
	TARP Warrant	  	Recitals
	to the knowledge of the Company/Company’s knowledge	  	6.9(10)
	Transaction Deadline	  	5.1(b)
	Transaction Documents	  	Recitals
	Transaction Expenses	  	3.2
	Treasury	  	Recitals
	TruPS Exchange	  	1.2(c)(2)(iv)
	Unlawful Gains	  	2.2(n)(5)

  

 -6- 

			
	 Term
	  	 Location of
Definition

	Voting Debt	  	2.2(c)
	Voting Securities	  	4.1(a)(1)
	Warrant	  	Recitals
	Warrant Certificate	  	Recitals
	Washington Secretary	  	Recitals
	Written Agreement	  	2.2(n)(4)

  

 -7- 

 INVESTMENT AGREEMENT, dated as of April 29, 2010 (this “Agreement”), between
Sterling Financial Corporation, a Washington corporation (the “Company”), and Thomas H. Lee Equity Fund VI, L.P., a Delaware limited partnership ,Thomas H. Lee Parallel Fund VI, L.P., a Delaware limited partnership, and Thomas H.
Lee Parallel (DT) Fund VI, L.P., a Delaware limited partnership (each, an “Investor” and collectively, the “Investors”). 

RECITALS: 

A. The Investment. The Company intends to sell to the Investors, and the Investors intend to purchase in the aggregate from the
Company, as an investment in the Company, the securities as described herein. The securities to be purchased at the Closing (as defined below) are: 

(i) 1,647,451 shares of Convertible Participating Voting Preferred Stock, Series B, no par value per share and liquidation
preference $3.75 per share, of the Company, having the terms set forth in Exhibit A (the “Series B Stock” or “Series B Shares”) each convertible, subject to the approval of the Stockholder Proposals, into 375 shares
(and, in the aggregate, 617,794,206 shares) of Common Stock of the Company (the “Common Stock” or “Common Shares”), the price of which Series B Shares shall be equal to the lesser of (x) $0.20 per Common Share
on an as converted basis and (y) the lowest price per Common Share on an as converted basis sold in any of the Other Private Placements (the “Preferred Price Adjustment”); 

(ii) 55,740,831 shares of Common Stock, the price of which Common Shares shall be equal to the lesser of (x) $0.20
per Common Share and (y) the lowest price per Common Share sold in any of the Other Private Placements (the “Common Price Adjustment”); and 

(iii) a warrant (the “Warrant”) to purchase shares of Common Stock, having the terms set forth in
Exhibit B. Until the approval of each of the Stockholder Proposals is obtained, the Warrant shall settle in shares of Series B Stock; thereafter, the Warrant shall settle in shares of Common Stock. The purchase of the Series B Shares,
Common Stock and Warrant by the Investors is referred to herein as the “Investment.” 
 B. Other Private
Placements. The Company intends to sell up to 244,259,169 shares of Common Stock and up to 7,219,215 shares of Convertible Participating Voting Preferred Stock, Series D, no par value per share and liquidation preference $3.75 per share, (the
“Series D Stock” or “Series D Shares”), such Series D Stock having substantially identical rights, preferences and privileges as the Series B Shares, except that the Series D Stock shall not bear cumulative
dividends in the event the Stockholder Proposals shall not have been approved within 120 days of the Closing Date, in one or more private placement transactions to other investors, with the closing of

  

 -8- 

 
such offerings to occur simultaneously with the Closing of this transaction (the “Other Private Placements”). 

C. TARP Exchange. The United States Department of Treasury (the “Treasury”) holds (i) 303,000 shares of
Fixed Rate Cumulative Perpetual Preferred Stock, Series A (the “TARP Preferred Stock”) and (ii) a warrant to purchase 6,437,677 shares of the Common Stock at an exercise price of $7.06 per share (the “TARP
Warrant”). On the terms and subject to the conditions set forth in Exchange Agreement by and between the Company and Treasury dated as of the date hereof (the “TARP Exchange Agreement”), the Company intends to exchange the
TARP Preferred Stock for Fixed Rate Cumulative Mandatorily Convertible Preferred Stock, Series C (the “Series C Shares” or “Series C Stock”), which shares the Company shall then convert into 378,750,000 shares of
Common Stock (subject to adjustment as provided therein), and to amend the warrant held by Treasury dated December 5, 2008 to among other things reduce the exercise price thereof to $0.20 per share (collectively, the “TARP
Exchange”). 
 D. The Securities. The term “Securities” refers collectively to (1) the
shares of Series B Stock purchased under this Agreement, (2) the Warrant issued under this Agreement (3) the Common Stock issued under this Agreement and (4) any securities (including shares of Common Stock and Series B Stock) into
which any of the foregoing are converted, exchanged or exercised in accordance with the terms thereof and of this Agreement, as applicable. When issued, the Series B Stock shall have the designations, relative rights, preferences, voting powers and
limitations set forth in articles of amendment substantially in the form attached as Exhibit A (the “Series B Stock Articles of Amendment”), which will amend the Company’s Articles of Restatement of Restated Articles of
Incorporation, as amended on September 21, 2009 by the Articles of Amendment of Restated Articles of Incorporation (the “Articles of Incorporation”), by filing the Series B Stock Articles of Amendment with the Secretary of
State of the State of Washington (the “Washington Secretary”). When issued, the Warrant shall be evidenced by a certificate substantially in the form attached as Exhibit B (the “Warrant Certificate”).

 E. Transaction Documents. The term “Transaction Documents” refers collectively to this Agreement, the
Warrant and the Series B Stock Articles of Amendment. 
 NOW, THEREFORE, in consideration of the premises, and of the
representations, warranties, covenants and agreements set forth herein, the parties agree as follows: 
 ARTICLE I

 Purchase; Closing 

1.1 Purchase. On the terms and subject to the conditions set forth herein, the Investors shall (i) purchase from the Company,
and the Company shall sell to 
  

 -9- 

 
the Investors, a number of shares of Series B Shares as set forth in Section 1.2(b) and (ii) receive from the Company, and the Company shall deliver to the Investors, the Warrant.
Notwithstanding the foregoing, in the event that the Company sells more or less than 244,259,169 shares of Common Stock and 7,219,215 shares of Series D Stock in the Other Private Placements, the number of shares of Common Stock and shares of Series
B Stock to be sold to the Investors and the Purchase Price shall be proportionally increased or decreased in order to maintain aggregate ownership by the Investors of 15.9% of the issued and outstanding Common Stock of the Company by the Investors
on an as-converted basis; provided, that in no event shall the number of shares of Series B Stock or Common Stock to be purchased by the Investors be more than 1,658,614 and 55,699,727, respectively, and the purchase price to be paid by the
Investors for any such shares of Series B Stock or Common Stock be in excess of the Preferred Price Adjustment or the Common Price Adjustment, respectively, without the prior written consent of the Investors. 

1.2 Closing. (a) Unless this Agreement has been terminated pursuant to Article V, and subject to the satisfaction (or to the
extent permitted, the waiver) of the conditions set forth in Article I, the closing of the transactions contemplated by this Agreement (the “Closing”) shall take place at the offices of Davis Polk & Wardwell LLP located at
450 Lexington Avenue, New York, NY 10017, or remotely via the electronic or other exchange of documents and signature pages, as soon as practicable (the “Closing Date”), but in no event later than the second business day after the
satisfaction or waiver of the conditions set forth in Article I (excluding conditions that, but their terms, cannot be satisfied until the Closing, but the Closing shall be subject to the satisfaction or waiver of those conditions), or at such other
place or such other date as agreed to by the parties hereto. 
 (b) Subject to the satisfaction or waiver on the Closing Date of
the conditions to the Closing in Section 1.2(c), the Preferred Price Adjustment, the Common Price Adjustment, the adjustment as provided in Section 1.1 and the adjustments set forth in Section 4.18, if any, at the Closing, the Company
shall deliver to the Investors (1)(i) certificates representing 1,647,451 shares of Series B Stock, (ii) certificates representing 55,740,831 shares of Common Stock and (iii) one or more certificates representing the Warrant
exercisable to purchase (a) if each of the Stockholder Proposals has not been approved, 449,023 shares of Series B Stock and (b) if each has been so approved, 168,383,759 shares of Common Stock against (2) payment by wire transfer of
immediately available United States funds to a bank account designated by the Company for an aggregate purchase price of $134,707,007 (the “Purchase Price”). 

(c) Closing Conditions. (1) The respective obligation of each of the Investors and the Company to consummate the Closing is
subject to the fulfillment or written waiver by the Investors and the Company prior to the Closing of the following conditions: 
  

 -10- 

 (i) all approvals and authorizations of, filings and registrations with, and
notifications to all governmental or regulatory authorities, agencies, courts, commissions or other entities, whether federal, state, local or foreign, or applicable self-regulatory organizations (each, a “Governmental Entity”),
required to consummate the Closing (including, but not limited to, the approval of the Federal Reserve of the Investors’ notice filed pursuant to the Change in Bank Control Act of 1978, as amended (the “CIBC Act”) and under the
Depository Institution Management Interlocks Act with respect to the Board Representative) shall have been obtained or made and shall be in full force and effect provided, however, that, with respect to the Investors, no such approval,
authorization, filing, registration or notification by a Governmental Authority shall impose any restraint or condition that would be expected to impair in any respect the benefits to the Investors of the transactions contemplated by this Agreement
(it being acknowledged by the Investors that the conditions imposed on them in the passivity letter previously provided to the Company are deemed not to impair the benefits to the Investors in any respect under this proviso); and 

(ii) no provision of any applicable law or regulation and no judgment, injunction, order or decree shall prohibit the
Closing or shall prohibit or restrict the Investors or their respective Affiliates from owning, voting, or, subject to receipt of approval of the Stockholder Proposals, converting or exercising any Securities in accordance with the terms thereof and
no lawsuit has been commenced by a Governmental Entity or a third party seeking to effect any of the foregoing. 
 (2) The
obligation of the Investors to consummate the Closing is also subject to the fulfillment or written waiver prior to the Closing (other than those conditions that by their nature are to be satisfied at the Closing, but subject to the fulfillment of
those conditions) of each of the following conditions: 
 (i) the representations and warranties of the Company
set forth in this Agreement shall be true and correct in all respects on and as of the date of this Agreement and on and as of the Closing Date as though made on and as of the Closing Date (except (1) to the extent such representations and
warranties are made as of a specified date, in which case, subject to clause (2) below, such representations and warranties shall be true and correct in all respects as of such date and (2) with respect to each of the representations and
warranties of the Company in this Agreement (other than Section 2.2(b) (but only with respect to the last sentence thereof), Section 2.2(c) (which shall be true and correct except to a de minimis extent that is addressed to the
Investors’ reasonable satisfaction at the Closing pursuant to Section 6.14), Section 2.2(e), Section 2.2(q), Section 2.2(j)(3), Section 2.2(aa) and Section 2.2(bb)), where the failure to be true and correct
(without regard to any materiality or Material Adverse Effect qualifications contained therein), individually or in the aggregate, would not be reasonably likely to have a Material Adverse Effect with respect to the Company); 

 

 -11- 

 (ii) the Company shall have performed in all material respects all
obligations required to be performed by it at or prior to Closing under this Agreement; 
 (iii) the Company
shall have exchanged the TARP Preferred Stock for 303,000 shares of Series C Stock and the Company shall have elected to convert, and provided timely notice in connection with such election to the holder of the Series C Stock, such Series C Stock
into 378,750,000 shares of Common Stock, subject to adjustment, in accordance with the terms and conditions set forth in the TARP Exchange Agreement (or otherwise on terms and conditions satisfactory to the Investors in their reasonable judgment),
which exchange and conversion shall have occurred on the same day as the Closing Date; 
 (iv) the exchange,
repurchase, redemption or other similar transaction or payments of any distributions thereon, in each case, if any, of or with respect to, as applicable, any of the trust preferred securities issued by certain vehicles associated with the Company
shall, to the extent (x) consummated or (y) the Company having entered into an agreement or understanding in relation thereto on or prior to the Closing (a “TruPS Exchange”), be on terms and conditions reasonably
satisfactory to the Investors; 
 (v) since the date of this Agreement, (a) there shall have been no
material change to any rules under Sections 382, 383 or 384 of the U.S. Internal Revenue Code of 1986, as amended and the Treasury Regulations promulgated thereunder (the “Code”), that adversely affect the application of Sections
382, 383 or 384 of the Code to any net operating losses, unrealized built-in losses or other tax attributes of the Company and any Affiliate (if relevant) that exist on or after the Closing Date, or (b) an Ownership Change (as defined by
Section 382(g) of the Code), in the Investors’ reasonable judgment, has not occurred and will not occur as a result of the transactions contemplated herein; 

(vi)(a) the Company shall receive gross proceeds of an aggregate amount not less than $720 million and not more than $730
million, prior to or contemporaneously with the Closing, from the Other Private Placements and the Investment (assuming, for purposes of this clause (a), that the Investment has been consummated) and (b) the Other Private Placements shall have
been conducted as set forth in this Agreement (or otherwise on terms and conditions satisfactory to the Investors in their reasonable judgment); 

(vii) any Required Approvals required to consummate the transactions contemplated by this Agreement shall have been made
or been obtained and shall be in full force and effect as of the Closing Date; provided, however, that no such Required Approval shall impose any restraint or condition that would be expected to impair in any respect the benefits to the
Investors of the transactions contemplated by this Agreement (it being acknowledged by the Investors that the 
  

 -12- 

 
conditions imposed on them in the passivity letter previously provided to the Company are deemed not to impair the benefits to the Investors in any respect under this proviso); 

(viii) at the Closing, taking into account the transactions contemplated by this Agreement and assuming the full
conversion of the Series B Stock and Series D Stock into shares of Common Stock, the Other Private Placements, the TARP Exchange, the Company’s Tier 1 leverage ratio shall be no lower than 9.5%. 

(ix) following the date hereof, the Company shall not have agreed to enter into or entered into (a) any agreement or
transaction in order to raise capital or (b) any transaction that resulted in, or would result in if consummated, a Change in Control of the Company, in each case, other than in connection with the Investment, the Other Private Placements and
the TARP Exchange; 
 (x) since (and excluding) the date hereof, no Material Adverse Effect (within the meaning
of clauses (1) and (2)(x) of the definition thereof) shall have occurred with respect to the Company and be continuing; 

(xi) the Board of Governors of the Federal Reserve System (the “Federal Reserve”) shall not have notified
the Company or the Investors that it has changed any of the following positions: 
 (1) the Series B Shares and
the Series D Shares, following conversion, shall qualify as unrestricted Tier 1 capital pursuant to the Capital Adequacy Guidelines for Bank Holding Companies, 12 C.F.R., Appendix A to Part 225; and 

(2) the Company’s capital structure immediately after the Closing will otherwise comply with the
“predominance” of voting common equity provisions of 12 C.F.R., Appendix A to Part 225; 
 (xii) the
Investors shall have received, from the Federal Reserve written confirmation, satisfactory to them in their reasonable judgment, to the effect that neither the Investors nor any of their respective Affiliates (which for purposes of this paragraph
shall include all “affiliates” as defined in the Bank Holding Company Act of 1956 (the “BHC Act”) or Regulation Y of the Federal Reserve) shall be deemed to “control” the Company or any Company Subsidiary after
the Closing for purposes of the BHC Act by reason of the consummation of the transactions contemplated by this Agreement; it being acknowledged by the Investors that the conditions imposed on it in the passivity letter previously provided to the
Company are deemed reasonable; 
 (xiii) at the Closing, the Company shall have caused the Investors to receive,
substantially in the forms attached hereto as Exhibit C, opinions of Davis, 
  

 -13- 

 
Polk & Wardwell LLP and Witherspoon, Kelley, Davenport & Toole, P.S., counsel to the Company; 

(xiv) as of the Closing Date, Sterling Savings Bank and Golf Savings Bank, collectively, shall have at least
$2,750,000,000 in core deposits (including, money market, demand, checking, savings and transactional accounts and excluding secured governmental deposits and certificates of deposits) and at least $2,800,000,000 in certificates of deposits,
excluding governmental and brokered deposits; 
 (xv) the Investors shall have received a certificate, dated the
Closing Date, signed on behalf of the Company by a senior executive officer certifying to the effect that the conditions set forth in Sections 1.2(c)(2)(i) and (ii) have been satisfied or waived; 

(xvi) the consummation of the transactions contemplated by this Agreement, the Other Private Placements, any TruPs
Exchange and the TARP Exchange shall qualify as a recapitalization for financial accounting purposes under GAAP; 

(xvii) the par value of the Company’s capital securities, including the Common Stock and the Series B Stock, shall be
changed to $0.00 per share (the “Par Value Change”); and 
 (xviii) following the date hereof,
neither the Federal Reserve nor the FDIC shall have notified the Company or the Investors that they will impose on the Investors or the Company any requirements that would reasonably be expected, in the Investors’ discretion, to impair any
economic benefits to the Investors or materially affect the Company’s business going forward. 
 (3) The obligation of the
Company to consummate the Closing is also subject to the fulfillment or written waiver prior to the Closing of the following conditions: 

(i) the representations and warranties of the Investors set forth in this Agreement shall be true and correct in all
material respects on and as of the date of this Agreement and on and as of the Closing Date as though made on and as of the Closing Date (except to the extent such representations and warranties are made as of a specified date, in which case such
representations and warranties shall be true and correct in all material respects as of such date); 
 (ii) each
Investor has performed in all material respects all obligations required to be performed by it at or prior to Closing under Section 3.1; 
  

 -14- 

 (iii) the Company shall have received a certificate signed on behalf of the
Investors by a senior executive officer certifying to the effect that the conditions set forth in Sections 1.2(c)(3)(i) and (ii) have been satisfied; and 

(iv) two (2) business days prior to the Closing Date, the Company shall have received from the Investors a schedule
allocating the Securities to be issued to each Investor and the corresponding Purchase Price allocable to each Investor. 
 1.3
Treatment of Stock Plans. The Company shall take all actions necessary to ensure the continuation of the Company Options and other awards issued under the Stock Plans in accordance with their terms as exist on the date hereof. 

ARTICLE II 

Representations and Warranties 

2.1 Disclosure. (a) On or prior to the date of this Agreement, each of the Company and the Investors delivered to the other a
schedule (“Disclosure Schedule”) setting forth, among other things, items the disclosure of which is necessary or appropriate either in response to an express disclosure requirement contained in a provision hereof or as an exception
to one or more representations or warranties contained in Section 2.2 with respect to the Company, or in Section 2.3 with respect to the Investors, or to one or more of its covenants contained in Article III; provided,
however, that notwithstanding anything in this Agreement to the contrary, the mere inclusion of an item in such schedule shall not be deemed an admission that such item represents a material exception or material fact, event or circumstance
or that such item has had or would reasonably be expected to have a Material Adverse Effect on the Company or the Investors, as applicable. 

(b) “Material Adverse Effect” means, with respect to the Investors, only clause (2) that follows, or, with respect
to the Company, both clauses (1) and (2) that follow, any circumstance, event, change, development or effect that, individually or in the aggregate (1) is or would reasonably be expected to be material and adverse to the financial
position, results of operations, business, assets or liabilities, properties, results of operations or condition (financial or otherwise) of the Company and its Subsidiaries taken as a whole, respectively, or (2) would or would reasonably be
expected to (x) materially impair the ability of either the Investors or the Company, respectively, to perform its obligations under this Agreement or (y) otherwise materially impede the consummation of the Closing and the other
transactions contemplated by this Agreement; provided, however, that in determining whether a Material Adverse Effect has occurred under clause (1), any effect shall be excluded to the extent that it results from (A) changes, after the
date of this Agreement, in the U.S. generally accepted accounting principles (“GAAP”), (B) general changes in the economy or the industries in which the Company and its Subsidiaries operate, (C) any acts of war, terrorism,
insurrection or civil disobedience, (D) any change in law applicable to the Company or Subsidiaries (not 
  

 -15- 

 
including any changes in banking or bank holding company laws, rules and regulations), (E) actions or omissions of the Company expressly required by the terms of this Agreement or taken with
the prior written consent of the Investors (other than the Par Value Change), (F) changes in the market price or trading volumes of the Common Stock or the Company’s other securities (but not the underlying causes of such changes) or
(G) the failure of the Company to meet any internal or public projections, forecasts, estimates or guidance (but not the underlying causes of such failure), in each case, to the extent that such circumstances, events, changes, developments or
effects described in any of the foregoing clauses (A), (B), (C) or (D) do not have a disproportionate effect on the Company and the Company Subsidiaries, taken as a whole (relative to other participants in the industries, markets or
geographic areas in which the Company and its Subsidiaries compete). 
 (c) “Previously Disclosed” with regard
to (1) any party means information set forth on its Disclosure Schedule corresponding to the provision of this Agreement, to which such information relates; provided that information which, on its face, reasonably should indicate to
the reader that it relates to another provision of this Agreement shall also be deemed to be Previously Disclosed with respect to such other provision, and (2) the Company, includes information publicly disclosed by the Company in the Company
Reports filed by it with or furnished to the Securities and Exchange Commission (the “SEC”) and publicly available prior to the date of this Agreement (excluding any risk factor disclosures contained in such documents under the
heading “Risk Factors” and any disclosure of risks included in any “forward-looking statements” disclaimer or other statements that are similarly non-specific and are predictive or forward-looking in nature). 

2.2 Representations and Warranties of the Company. Except as Previously Disclosed, the Company represents and warrants as of the
date of this Agreement and as of the Closing Date (except to the extent made only as of a specified date, in which case as of such date) to the Investors that: 

(a) Organization and Authority. The Company is a corporation duly organized and validly existing under the laws of the State of
Washington, is duly qualified to do business and is in good standing in all other jurisdictions where its ownership or leasing of property or the conduct of its business requires it to be so qualified and failure to be so qualified would have a
Material Adverse Effect on the Company and has corporate power and authority to own its properties and assets and to carry on its business as it is now being conducted. The Company is duly registered as a bank holding company under the BHC Act. The
Company has furnished to the Investors true, correct and complete copies of the Company’s Articles of Incorporation and bylaws as amended through the date of this Agreement. 

(b) Company’s Subsidiaries. The Company has Previously Disclosed a true, complete and correct list of all of its subsidiaries
as of the date of this Agreement (individually, a “Company Subsidiary” and, collectively, the “Company Subsidiaries”), 

 

 -16- 

 
all shares of the outstanding capital stock of each of which are owned directly or indirectly by the Company. No equity security of any Company Subsidiary is or may be required to be issued by
reason of any option, warrant, scrip, preemptive right, right to subscribe to, gross-up right, call or commitment of any character whatsoever relating to, or security or right convertible into, shares of any capital stock of such Company Subsidiary,
and there are no contracts, commitments, understandings or arrangements by which any Company Subsidiary is bound to issue additional shares of its capital stock, or any option, warrant or right to purchase or acquire any additional shares of its
capital stock. All of such shares so owned by the Company are duly authorized and validly issued, fully paid and nonassessable and are owned by it free and clear of any lien, adverse right or claim, charge, option, pledge, covenant, title defect,
security interest or other encumbrances of any kind (“Liens”), with no personal liability attaching to the ownership thereof. Each Company Subsidiary is an entity duly organized, validly existing, duly qualified to do business and,
to the extent applicable, in good standing under the laws of its jurisdiction of incorporation, and has corporate or other appropriate organizational power and authority to own or lease its properties and assets and to carry on its business as it is
now being conducted, in each case, except as would not reasonably be expected to have a Material Adverse Effect on the Company. Except in respect of the Company Subsidiaries, the Company does not own beneficially, directly or indirectly, more than
5% of any class of equity securities or similar interests of any corporation, bank, business trust, association or similar organization, and is not, directly or indirectly, a partner in any partnership or party to any joint venture. Sterling Savings
Bank is duly organized and validly existing as a Washington-state chartered bank, Golf Savings Bank is duly organized and validly existing as a Washington-state chartered savings bank and each of their respective deposit accounts are insured by the
Federal Deposit Insurance Corporation (“FDIC”) to the fullest extent permitted by the Federal Deposit Insurance Act and the rules and regulations of the FDIC thereunder, and all premiums and assessments required to be paid in
connection therewith have been paid when due. The Company beneficially owns all of the outstanding capital securities and has sole Control of Sterling Savings Bank and Golf Savings Bank. 

(c) Capitalization. The authorized capital stock of the Company consists of 750,000,000 shares of Common Stock and 10,000,000
shares of preferred stock, par value $1.00 per share (the “Company Preferred Stock”). As of the close of business on April 23, 2010 (the “Capitalization Date”), there were 52,178,573 shares of Common Stock
outstanding and 303,000 shares of Company Preferred Stock outstanding, consisting of 303,000 shares of TARP Preferred Stock. Since the Capitalization Date and through the date of this Agreement, except in connection with the Transaction Documents
and the transactions contemplated hereby and thereby, including the Other Private Placements and the TARP Exchange, the Company has not (i) issued or authorized the issuance of any shares of Common Stock or Company Preferred Stock, or any
securities convertible into or exchangeable or exercisable for shares of Common Stock or Company Preferred Stock, (ii) reserved for issuance any shares of Common Stock or Company Preferred Stock or (iii) repurchased or redeemed, or
authorized the repurchase or redemption of, any shares of Common Stock or Company Preferred Stock. 
  

 -17- 

 
As of the close of business on the Capitalization Date, other than in respect of the Series B Stock, the Series C Stock and the Common Stock issuable upon conversion of the Series C Stock, the
Series D Stock, the Company’s Series E Participating Cumulative Preferred Stock, the Warrant and the TARP Warrant and awards outstanding under or pursuant to the Benefit Plans in respect of which an aggregate of 4,241,453 shares of Common Stock
have been reserved for issuance, no shares of Common Stock or Company Preferred Stock were reserved for issuance. All of the issued and outstanding shares of Common Stock and Company Preferred Stock have been duly authorized and validly issued and
are fully paid, nonassessable and free of preemptive rights, with no personal liability attaching to the ownership thereof. No bonds, debentures, notes or other indebtedness having the right to vote on any matters on which the stockholders of the
Company may vote (“Voting Debt”) are issued and outstanding. Section 2.2(c) of the Disclosure Schedule sets forth the following information with respect to each outstanding option to purchase shares of Common Stock (a
“Company Option”) or right to acquire shares of stock (“Company Restricted Stock”) under the Company’s 1998 Long-Term Incentive Plan, 2001 Long-Term Incentive Plan, 2003 Long-Term Incentive Plan and the 2007
Long-Term Incentive Plan (the “Stock Plans”) which is true and correct as of the date of this Agreement: (i) the name and, to the knowledge of the Company, the country and state of residence of each holder of Company Options;
(ii) the number of shares of Company Common Stock subject to such Company Option, and as applicable for each Company Option, the date of grant, exercise price, number of shares vested or not otherwise subject to repurchase rights, reacquisition
rights or other applicable restrictions as of the date hereof, vesting schedule or schedule providing for the lapse of repurchase rights, reacquisition rights or other applicable restrictions, the type of Company Option and the Company Stock Plan or
other plan under which such Company Options were granted or purchased; and (iii) whether, in the case of a Company Option, such Company Option is an Incentive Stock Option (within the meaning of the Code). The Company has made available to the
Investors copies of each form of stock option agreements evidencing outstanding Company Options and has also delivered any other stock option agreements to the extent there are variations from the form of agreement, specifically identifying the
holder(s) to whom such variant forms apply. An aggregate of 375,254 shares of Common Stock are held for the benefit of participants in the Company’s Amended and Restated Deferred Compensation Plan and the 2005 Deferred Compensation Plan, all of
which are issued and outstanding as of the Capitalization Date. As of the date of this Agreement, except for (i) the outstanding Company Options described in this Section 2.2(c) and listed on Section 2.2(c) of the Disclosure Schedule
and (ii) as set forth elsewhere in this Section 2.2(c), the Company does not have and is not bound by any outstanding subscriptions, options, warrants, calls, commitments or agreements of any character calling for the purchase or issuance
of, or securities or rights convertible into or exchangeable or exercisable for, any shares of Common Stock or Company Preferred Stock or any other equity securities of the Company or Voting Debt or any securities representing the right to purchase
or otherwise receive any shares of capital stock of the Company (including any rights plan or agreement). The Company has Previously Disclosed all shares of Company capital stock that have been purchased, redeemed or otherwise acquired, directly or
indirectly, by 
  

 -18- 

 the Company or any Company Subsidiary since December 31, 2009 and all dividends or other distributions
have been declared, set aside, made or paid to the stockholders of the Company since that date. Each Company Option under the Stock Plans (i) was granted in compliance with all applicable laws and all of the terms and conditions of the Stock
Plans pursuant to which it was issued, (ii) has an exercise price equal to or greater than the fair market value of a share of Common Stock at the close of business on the date of such grant, (iii) has a grant date identical to or
following the date on which the Company’s board of directors or compensation committee actually awarded such Company Option, (iv) otherwise is exempt from or complies with Section 409A of the Code so that the recipient of such Company
Option is not subject to the additional taxes and interest pursuant to Section 409A of the Code and (v) except for disqualifying dispositions, qualifies for the tax and accounting treatment afforded to such Company Option in the
Company’s tax returns and the Company’s financial statements, respectively. 
 (d) Authorization. 

(1) The Company has the corporate power and authority to enter into or issue, as applicable, this Agreement, the Common
Stock, the Series B Stock and the Warrant and to carry out its obligations hereunder and thereunder. The execution, delivery and performance, as applicable, of this Agreement, the Common Stock, the Series B Stock and the Warrant by the Company and
the consummation of the transactions contemplated hereby and thereby have been duly authorized by the Board of Directors. Subject to such approvals of all Governmental Entities as may be required by statute or regulation, this Agreement, the Common
Stock, the Series B Stock and the Warrant have been duly and validly executed, issued and delivered, as applicable, by the Company and, assuming due authorization, execution and delivery of this Agreement by the Investors, are valid and binding
obligations of the Company enforceable against the Company in accordance with their respective terms, except as such enforceability may be limited by bankruptcy, insolvency, moratorium, reorganizations, fraudulent transfer or similar laws relating
to or affecting creditors generally or by general equitable principles (whether applied in equity or at law). No other corporate proceedings are necessary for the execution, issuance and delivery, as applicable, by the Company of this Agreement, the
Common Stock, the Series B Stock and the Warrant, the performance by it of its obligations hereunder and thereunder or the consummation by it of the transactions contemplated hereby and thereby, subject to receipt of the approval by the
Company’s stockholders of the Stockholder Proposals. To the Company’s knowledge, all shares of Common Stock entitled to vote on the Stockholder Proposals shall be eligible to vote on such proposals. The Board of Directors has resolved that
the transactions contemplated hereby are in the best interests of stockholders of the Company. 
  

 -19- 

 (2) Neither the execution, issue, delivery and performance, as applicable,
by the Company of this Agreement, the Common Stock, the Series B Stock and the Warrant, nor the consummation of the transactions contemplated hereby and thereby, nor compliance by the Company with any of the provisions thereof, shall
(i) violate, conflict with, or result in a breach of any provision of, or constitute a default (or an event which, with notice or lapse of time or both, would constitute a default) under, or result in the termination of, or accelerate the
performance required by, or result in a right of termination or acceleration of, or result in the creation of, any Lien, upon any of the properties or assets of the Company or any Company Subsidiary under any of the material terms, conditions or
provisions of (A) its articles of incorporation or bylaws (or similar governing documents) or (B) any note, bond, mortgage, indenture, deed of trust, license, lease, agreement or other instrument or obligation to which the Company or any
Company Subsidiary is a party or by which it may be bound, or to which the Company or any Company Subsidiary or any of the properties or assets of the Company or any Company Subsidiary may be subject, or (ii) subject to compliance with the
statutes and regulations referred to in Section 2.2(e) below, violate any ordinance, permit, concession, grant, franchise, law, statute, rule or regulation or any judgment, ruling, order, writ, injunction or decree applicable to the Company or
any Company Subsidiary or any of their respective properties or assets except in the case of clauses (i)(B) and (ii) for such violations, conflicts and breaches as would not reasonably be expected to have a Material Adverse Effect on the
Company. 
 (e) Consents. Section 2.2(e) of the Disclosure Schedule lists all material governmental and any other
material consents, approvals, authorizations, applications, registrations and qualifications that are required to be obtained in connection with or for the consummation of the transactions contemplated by this Agreement (the “Required
Approvals”). Other than the securities or blue sky laws of the various states and the Required Approvals, no material notice to, registration, declaration or filing with, exemption or review by, or authorization, order, consent or approval
of, any Governmental Entity, or expiration or termination of any statutory waiting period, is necessary for the consummation by the Company of the transactions contemplated by this Agreement. 

(f) Financial Statements. Each of the consolidated balance sheets of the Company and the Subsidiaries and the related consolidated
statements of income, stockholders’ equity and cash flows, together with the notes thereto, included in any Company Report filed with the SEC prior to the date of this Agreement, and the unaudited consolidated balance sheets of the Company and
the Subsidiaries as of March 31, 2010 and the related consolidated statements of income, stockholders’ equity and cash flows for the period ending March 31, 2010, together with the notes thereto and in the form Previously Disclosed to
the Investors (the “Interim Financials” and, collectively, the “Company Financial Statements”), (1) have been prepared from, and are in accordance with, the books and records of the Company and the Company
Subsidiaries, 
  

 -20- 

 
(2) to the extent filed with the SEC, complied as to form, as of their respective date of such filing, in all material respects with applicable accounting requirements and with the published
rules and regulations of the SEC with respect thereto, (3) have been prepared in accordance with GAAP applied on a consistent basis and (4) present fairly in all material respects the consolidated financial position of the Company and the
Company Subsidiaries at the dates and the consolidated results of operations, changes in stockholders’ equity and cash flows of the Company and the Company Subsidiaries for the periods stated therein (subject to the absence of notes and
year-end audit adjustments in the case of the Interim Financials). 
 (g) Reports. 

(1) Since December 31, 2006, the Company and each Company Subsidiary have filed all material reports, registrations,
documents, filings, statements and submissions together with any required amendments thereto, that it was required to file with any Governmental Entity (the foregoing, collectively, the “Company Reports”) and has paid all material
fees and assessments due and payable in connection therewith. As of their respective filing dates, the Company Reports complied in all material respects with all statutes and applicable rules and regulations of the applicable Governmental Entities,
as the case may be. As of the date of this Agreement, there are no outstanding comments from the SEC or any other Governmental Entity with respect to any Company Report that were enumerated within such report or otherwise were the subject of written
correspondence with respect thereto. The Company Reports, including the documents incorporated by reference in each of them, each contained all the information required to be included in it and, when it was filed and as of the date of each such
Company Report filed with or furnished to the SEC, or if amended prior to the date of this Agreement, as of the date of such amendment, did not contain an untrue statement of a material fact or omit to state a material fact necessary in order to
make the statements made in it, in light of the circumstances under which they were made, not misleading and complied as to form in all material respects with the applicable requirements of the Securities Act of 1933, as amended (the
“Securities Act”), and the Securities Exchange Act of 1934, as amended (the “Exchange Act”). No executive officer of the Company has failed in any respect to make the certifications required of him or her under
Section 302 or 906 of the Sarbanes-Oxley Act of 2002. Copies of all of the Company Reports not otherwise publicly filed have, to the extent allowed by applicable law, rule or regulation, been made available to the Investors by the Company.

 (2) The records, systems, controls, data and information of the Company and the Company Subsidiaries are
recorded, stored, maintained and operated under means (including any electronic, mechanical or photographic process, whether computerized or not) that are under the exclusive ownership and direct control of the Company or the Company Subsidiaries or
accountants 
  

 -21- 

 
(including all means of access thereto and therefrom), except for any nonexclusive ownership and nondirect control that would not reasonably be expected to have a material adverse effect on the
system of internal accounting controls described below in this Section 2.2(g). The Company (A) has implemented and maintains disclosure controls and procedures (as defined in Rule 13a-15(e) of the Exchange Act) to ensure that material
information relating to the Company, including its consolidated subsidiaries, is made known to the chief executive officer and the chief financial officer of the Company by others within those entities, and (B) has disclosed, based on its most
recent evaluation prior to the date of this Agreement, to the Company’s outside auditors and the audit committee of the Board of Directors (x) any significant deficiencies and material weaknesses in the design or operation of internal
control over financial reporting (as defined in Rule 13a-15(f) of the Exchange Act) that are reasonably likely to adversely affect the Company’s ability to record, process, summarize and report financial information, and (y) any fraud,
whether or not material, that involves management or other employees who have a significant role in the Company’s internal controls over financial reporting. As of the date of this Agreement, the Company has no knowledge of any reason that its
outside auditors and its chief executive officer and chief financial officer shall not be able to give the certifications and attestations required pursuant to the rules and regulations adopted pursuant to Section 404 of the Sarbanes-Oxley Act
of 2002, without qualification, when next due. Since December 31, 2006, (i) neither the Company nor any Company Subsidiary nor, to the knowledge of the Company, any director, officer, employee, auditor, accountant or representative of the
Company or any Company Subsidiary has received or otherwise had or obtained knowledge of any material complaint, allegation, assertion or claim, whether written or oral, regarding the accounting or auditing practices, procedures, methodologies or
methods of the Company or any Company Subsidiary or their respective internal accounting controls, including any material complaint, allegation, assertion or claim that the Company or any Company Subsidiary has engaged in questionable accounting or
auditing practices, and (ii) no attorney representing the Company or any Company Subsidiary, whether or not employed by the Company or any Company Subsidiary, has reported evidence of a material violation of securities laws, breach of fiduciary
duty or similar violation by the Company or any of its officers, directors, employees or agents to the Board of Directors or any committee thereof or to any director or officer of the Company. 

(h) Properties and Leases. The Company and the Company Subsidiaries have good and marketable title to all real properties and all
other properties and assets owned by them (other than any assets the Company has repossessed), in each case, free from Liens that would affect the value thereof or interfere with the use made or to be made thereof by them in any material respect.
The Company and the Company Subsidiaries own or lease all properties as are necessary to their operations as now conducted. All leases of real property and all other leases material to the Company or any Company Subsidiary pursuant to which the
Company or such Company Subsidiary, 
  

 -22- 

 
as lessee, leases real or personal property are valid and effective in accordance with their respective terms, and there is not, under any such lease, any existing default by the Company or such
Company Subsidiary or any event which, with notice or lapse of time or both, would constitute such a default except for such as would not reasonably be expected to have a Material Adverse Effect. 

(i) Taxes. (1) Each of the Company and the Company Subsidiaries has filed all material federal, state, county, local and
foreign Tax Returns, including information returns, required to be filed by it and all such filed Tax Returns are, true, complete and correct in all material respects, and paid all material Taxes owed by it and no Taxes owed by it or assessments
received by it are delinquent. (2) (i) No Tax Returns of the Company and the Company Subsidiaries referred to in subsection (1) above have been the subject of an audit by the Internal Revenue Service (the “IRS”) or
the appropriate state, local or foreign taxing authority for the period for assessment where the statute of limitations remains open; (ii) all deficiencies asserted or assessments made as a result of any such audits have been paid in full and
(iii) no claim has ever been made by an authority in a jurisdiction where the Company and the Company Subsidiaries do not file Tax Returns that the Company and the Company Subsidiaries are or may be subject to taxation by that jurisdiction.
(3) Neither the Company nor any Company Subsidiary has waived any statute of limitations with respect to Taxes or agreed to any extension of time with respect to a Tax assessment or deficiency, in each case, that is still in effect, or has
pending a request for any such extension or waiver. (4) Neither the Company nor any Company Subsidiary is a party to any pending action or proceeding, nor to the Company’s knowledge is any such action or proceeding threatened by any
Governmental Entity, for the assessment or collection of Taxes, interest, penalties, assessments or deficiencies that could reasonably be likely to have a Material Adverse Effect on the Company and no issue has been raised by any federal, state,
local or foreign taxing authority in connection with an audit or examination of the Tax returns, business or properties of the Company or any Company Subsidiary which has not been settled, resolved and fully satisfied, or adequately reserved for
(other than those issues that are not reasonably likely to have a Material Adverse Effect on the Company). (5) Except as is not reasonably likely to have a Material Adverse Effect on the Company, each of the Company and the Company Subsidiaries
has withheld and paid all Taxes that it is required to withhold from amounts owing to employees, creditors or other third parties. (6) Neither the Company nor any Company Subsidiary has been informed by any jurisdiction that the jurisdiction
believes that the Company or any Company Subsidiary was required to file any material Tax return that was not filed. (7) Neither the Company nor any Company Subsidiary has entered into any “listed transaction” within the meaning of
Treasury Regulations Section 1.6011-4(b)(2), or any other transaction requiring disclosure under analogous provisions of state, local or foreign law. (8) Neither the Company nor any Company Subsidiary has liability for the Taxes of any
person other than the Company or any Company Subsidiary under Treasury Regulations Section 1.1502-6 (or any similar provision of state, local or foreign law). (9) Neither the Company nor any Company Subsidiary is currently subject to a
Section 382 Limitation, as defined in Section 382 of the Code. (10) Neither the Company nor any Company 

 

 -23- 

 
Subsidiary is a party to or is otherwise bound by or has any obligation under any Tax allocation or sharing agreement. (11) Neither the Company nor any Company Subsidiary is a party to any
agreement, contract, arrangement, or plan that could result, separately or in the aggregate, in the payment of any “excess parachute payment” within the meaning of Section 280G of the Code (or any corresponding provision of state,
local, or foreign Tax law). (12) Neither the Company nor any Company Subsidiary has been a “distributing corporation” or a “controlled corporation” in a distribution of stock intended to qualify for Tax-free treatment under
Section 355(a) of the Code: (i) at any time during the two-year period prior to the date hereof, (ii) at any time during the period commencing on the date hereof and ending on the Closing Date or (iii) which could otherwise
constitute part of a “plan” or “series of related transactions” (within the meaning of Section 355(e) of the Code) in conjunction with and including the transactions contemplated by this Agreement. (13) The Company does
not have any 5-Percent Shareholders (as defined by Section 382(k)(7) of the Code). (14) No Ownership Change (as defined by Section 382(g) of the Code) has occurred since December 31, 2009. (15) The Company is not aware of
any state of facts currently existing or contemplated that would give rise to the imposition of any limitations under Section 382 of the Code on the use of any net operating loss carryforwards, built-in losses or other tax attributes at any
time following the Closing. (16) After giving effect to the transactions described herein occurring on the Closing Date and any other transactions contemplated by this Agreement as if such transactions had occurred immediately after the Closing
Date (and, for the avoidance of doubt, including the effect of a subsequent exercise of any Warrants or other options (as defined in Treas. Reg. § 1.382-4) issued in connection with such transactions that would increase the cumulative
percentage point change), the cumulative percentage point change in the stock ownership of the Company for Section 382 purposes shall not be more than 47%. 

For the purposes of this Agreement, the term “Tax” (including, with correlative meaning, the term “Taxes”) shall mean
(1) any and all domestic or foreign, federal, state, local or other taxes of any kind (together with any and all interest, penalties, additions to tax and additional amounts imposed with respect thereto) imposed by any Governmental Entity,
including taxes on or with respect to income, franchises, windfall or other profits, gross receipts, property, sales, use, capital stock, payroll, employment, unemployment, social security, workers’ compensation or net worth, and taxes in the
nature of excise, withholding, ad valorem or value added, (2) liability for the payment of any amounts of the type described in clause (1) as a result of being or having been a member of an affiliated, consolidated, combined or
unitary group, and (3) liability for the payment of any amounts as a result of being party to any tax sharing agreement or as a result of any express or implied obligation to indemnify any other person with respect to the payment of any amounts
of the type described in clause (1) or (2). For the purposes of this Agreement, the term “Tax Return” (including, with correlative meaning, the term “Tax Returns”) shall mean all federal, state, local and
foreign returns and reports (including elections, declarations, disclosures, schedules, estimates and information returns and any amendments thereto) required to be filed or delivered pursuant to applicable tax laws. 

 

 -24- 

 (j) Absence of Certain Changes. Since December 31, 2009, (1) the Company
and the Company Subsidiaries have conducted their respective businesses in all material respects in the ordinary course, consistent with prior practice, (2) except for publicly disclosed ordinary dividends on the Common Stock and outstanding
Company Preferred Stock, the Company has not made or declared any distribution in cash or in kind to its stockholders or issued or repurchased any shares of its capital stock or other equity interests, (3) through (and including) the date of
this Agreement, no Material Adverse Effect has occurred with respect to the Company and is continuing and (4) there has not been (i) any capital expenditure or series of related capital expenditures made by or on behalf of the Company or
the Company Subsidiaries in excess of $2,000,000; or (ii) any capital investment or acquisition of the securities or assets of, or series of related capital investments or acquisitions, any other person by or on behalf of the Company or the
Company Subsidiaries involving more than $2,000,000 and, in the case of both clauses (i) and (ii), outside of the ordinary course of business consistent with past practice. 

(k) Commitments and Contracts. The Company has Previously Disclosed or provided to the Investors or their representatives true,
correct and complete copies of each of the following to which the Company or any Company Subsidiary is a party or subject as of the date of this Agreement (whether written or oral, express or implied) (each, a “Company Significant
Agreement”): 
 (1) any material employment contract or understanding (including any understandings or
obligations with respect to severance or termination pay, liabilities or fringe benefits) with any present or former officer, director, employee or consultant (other than those that are terminable at will by the Company or such Company Subsidiary);

 (2) any material plan, contract or understanding providing for any bonus, pension, option, deferred
compensation, retirement payment, profit sharing or similar arrangement with respect to any present or former officer, director, employee or consultant; 

(3) any material labor contract or agreement with any labor union; 

(4) any contract containing covenants that limit the ability of the Company or any Company Subsidiary to compete in any
line of business or with any person or which involve any restriction of the geographical area in which, or method by which or with whom, the Company or any Company Subsidiary may carry on its business (other than as may be required by law or
applicable regulatory authorities); 
 (5) any other contract or agreement which is a “material
contract” within the meaning of Item 601(b)(10) of Regulation S-K; 
 (6) any joint venture,
partnership, strategic alliance or other similar contract (including any franchising agreement, but in any event excluding 
  

 -25- 

 
introducing broker agreements); and any contract relating to the acquisition or disposition of any material business or material assets (whether by merger, sale of stock or assets or otherwise),
which acquisition or disposition is not yet complete or where such contract contains continuing material obligations or contains continuing indemnity obligations of the Company or any of the Company Subsidiaries; 

(7) any contract with any Governmental Entity that imposes any material obligation or restriction on the Company or the
Company Subsidiaries; 
 (8) any contract relating to indebtedness for borrowed money, letters of credit, capital
lease obligations, obligations secured by a Lien or interest rate or currency hedging agreements (including guarantees in respect of any of the foregoing, but in any event excluding trade payables, securities transactions and brokerage agreements
arising in the ordinary course of business consistent with past practice, intercompany indebtedness and immaterial leases for telephones, copy machines, facsimile machines and other office equipment) in excess of $2,000,000, except for those issued
in the ordinary course of business; 
 (9) any real property lease and any other lease with annual rental
payments aggregating $1,000,000 or more; and 
 (10) any material agreement, contract or understanding with any
current or former director, officer, employee, consultant, financial adviser, broker, dealer, or agent providing for any rights of indemnification in favor of such person or entity, except for those entered into in the ordinary course of business.

 Each of the Company Significant Agreements is valid and binding on the Company and the Company Subsidiaries, as applicable, and in full force
and effect. The Company and each of the Company Subsidiaries, as applicable, are in all material respects in compliance with and have in all material respects performed all obligations required to be performed by them to date under each Company
Significant Agreement. Neither the Company nor any of the Company Subsidiaries knows of, or has received notice of, any material violation or default (or any condition which with the passage of time or the giving of notice would cause such a
violation of or a default) by any party under any Company Significant Agreement. To the Company’s knowledge, as of the date of this Agreement, there are no material transactions or series of related transactions, agreements, arrangements or
understandings, nor are there any currently proposed material transactions, or series of related transactions between the Company or any Company Subsidiaries, on the one hand, and the Company, any current or former director or executive officer of
the Company or any Company Subsidiaries or any person who Beneficially Owns 5% or more of the Common Shares (or any of such person’s immediate family members or Affiliates) (other than Company Subsidiaries), on the other hand. 

 

 -26- 

 (l) Offering of Securities. Neither the Company nor any person acting on its behalf
has taken any action (including, any offering of any securities of the Company under circumstances which would require the integration of such offering with the offering of any of the Securities to be issued pursuant to this Agreement or any other
Transaction Document under the Securities Act and the rules and regulations of the SEC promulgated thereunder) which might subject the offering, issuance or sale of any of such Securities to the registration requirements of the Securities Act.

 (m) Litigation and Other Proceedings; No Undisclosed Liabilities. 

(1) There is no pending or, to the knowledge of the Company, threatened, claim, action, suit, investigation or proceeding,
against the Company or any Company Subsidiary, nor is the Company or any Company Subsidiary subject to any order, judgment or decree, in each case, except as would not reasonably be expected to have a Material Adverse Effect on the Company.

 (2) Neither the Company nor any of the Company Subsidiaries has any liabilities or obligations of any nature
(absolute, accrued, contingent or otherwise) which are not properly reflected or reserved against in the financial statements described in Section 2.2(f) to the extent required to be so reflected or reserved against in accordance with GAAP,
except for liabilities that have arisen since December 31, 2009 in the ordinary and usual course of business and consistent with past practice and that have not had a Material Adverse Effect. 

(n) Compliance with Laws and Other Matters; Insurance. The Company and each Company Subsidiary: 

(1) in the conduct of its business is in material compliance with all, and the condition and use of its properties does
not violate or infringe, in any material respect, any applicable material domestic (federal, state or local) or foreign laws, statutes, ordinances, licenses, rules, regulations, policies or guidelines, judgments, demands, writs, injunctions, orders
or decrees applicable thereto or to employees conducting its business, including the Troubled Asset Relief Program, the Emergency Economic Stabilization Act of 2008, the Sarbanes-Oxley Act of 2002, the Equal Credit Opportunity Act, the Fair Housing
Act, the Community Reinvestment Act, the Home Mortgage Disclosure Act, the Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism (USA PATRIOT) Act of 2001, all other applicable fair lending
laws or other laws relating to discrimination and the Bank Secrecy Act, and, as of the date hereof, each of Sterling Savings Bank and Golf Savings Bank has a Community Reinvestment Act rating of “satisfactory” or better; 

(2) has all material permits, licenses, franchises, authorizations, orders and approvals of, and has made all filings,
applications and registrations with, Governmental Entities that are required in order to permit it to own or lease its 

 

 -27- 

 
properties and assets and to carry on its business as presently conducted and that are material to the business of the Company or such Company Subsidiary; and all such material permits, licenses,
certificates of authority, orders and approvals are in full force and effect and, to the knowledge of the Company, no material suspension or cancellation of any of them is threatened, and all such filings, applications and registrations are current;

 (3) currently is complying in all material respects with, and is not under investigation with respect to or,
to the knowledge of the Company, has been threatened to be charged with or given notice of any material violation of, all applicable federal, state, local and foreign laws, regulations, rules, judgments, injunctions or decrees; 

(4) has, except (i) for statutory or regulatory restrictions of general application, (ii) the Written Agreement,
between Sterling Financial Corporation and the Federal Reserve Bank of San Francisco, dated December 24, 2009 (the “Written Agreement”), and (iii) the Stipulation and Consent to the Issuance of an Order to Cease and
Desist, between Sterling Savings Bank and the Federal Deposit Insurance Corporation and the Washington Department of Financial Institutions, dated October 9, 2009 (the “Cease and Desist Order”), not been placed under any
material restriction by a Governmental Entity on its business or properties, and except for routine examinations by applicable Governmental Entities, as of the date of this Agreement, received no notification or communication from any Governmental
Entity that an investigation by any Governmental Entity with respect to the Company or any of the Company Subsidiaries is pending or threatened; 

(5) has not, since December 31, 2006 nor to its knowledge, has any other person on behalf of the Company or any
Company Subsidiary that qualifies as a “financial institution” under the U.S. Anti-Money Laundering laws, knowingly acted, by itself or in conjunction with another, in any act in connection with the concealment of any currency, securities
or other proprietary interest that is the result of a felony as defined in the U.S. Anti-Money Laundering laws (“Unlawful Gains”), nor knowingly accepted, transported, stored, dealt in or brokered any sale, purchase or any
transaction of other nature for Unlawful Gains; 
 (6) to the extent it qualifies as a “financial
institution” under the U.S. Anti-Money Laundering laws, has implemented in all material respects such anti-money laundering mechanisms and kept and filed all material reports and other necessary material documents as required by, and otherwise
complied in all material respects with, the U.S. Anti-Money Laundering laws and the rules and regulations thereunder; and 

(7) is presently insured, and during each of the past three calendar years (or during such lesser period of time as the
Company has owned such 
  

 -28- 

 
Company Subsidiary) has been insured, for reasonable amounts with financially sound and reputable insurance companies against such risks as companies engaged in a similar business would, in
accordance with good business practice, customarily be insured. 
 (o) Labor. Employees of the Company and the Company
Subsidiaries are not represented by any labor union nor are any collective bargaining agreements otherwise in effect with respect to such employees. No labor organization or group of employees of the Company or any Company Subsidiary has made a
pending demand for recognition or certification, and there are no representation or certification proceedings or petitions seeking a representation proceeding presently pending or threatened to be brought or filed with the National Labor Relations
Board or any other labor relations tribunal or authority, nor have there been in the last three years. There are no organizing activities, strikes, work stoppages, slowdowns, labor picketing lockouts, material arbitrations or material grievances, or
other material labor disputes pending or threatened against or involving the Company or any Company Subsidiary, nor have there been for the last three years. 

(p) Company Benefit Plans. 

(1) All benefit and compensation plans, contracts, policies or arrangements covering current or former employees of the
Company and Company Subsidiaries (the “Employees”) and current or former directors of the Company, including, but not limited to, “employee benefit plans” within the meaning of Section 3(3) of the Employee Retirement
Income Security Act of 1974, as amended (“ERISA”), and deferred compensation, stock option, stock purchase, stock appreciation rights, stock based, incentive and bonus plans (the “Benefit Plans”) are listed on
Schedule 2.2(p)(1), and each Benefit Plan which has received a favorable opinion letter from the Internal Revenue Service National Office, including any master or prototype plan, has been separately identified. True and complete copies of all
Benefit Plans listed Schedule 2.2(p)(1) including, but not limited to, any trust instruments, insurance contracts and, with respect to any employee stock ownership plan, loan agreements forming a part of any Benefit Plans, and all amendments
thereto, have been made available to the Investors. 
 (2) All Benefit Plans are in substantial compliance with
ERISA, the Code and other applicable laws. Each Benefit Plan which is subject to ERISA (the “ERISA Plans”) that is an “employee pension benefit plan” within the meaning of Section 3(2) of ERISA (“Pension
Plan”) and that is intended to be qualified under Section 401(a) of the Code, has received a favorable determination letter from the IRS and the Company is not aware of any circumstances likely to result in revocation of any such
favorable determination letter or the loss of the qualification of such Pension Plan under Section 401(a) of the Code. Neither the Company nor any of the Company Subsidiaries has 

 

 -29- 

 
engaged in a transaction with respect to any ERISA Plan that, assuming the taxable period of such transaction expired as of the date hereof, could subject the Company or any Company Subsidiary to
a tax or penalty imposed by either Section 4975 of the Code or Section 502(i) of ERISA in an amount which would be material. Neither the Company nor any of the Company Subsidiaries has incurred or reasonably expects to incur a material tax
or penalty imposed by Section 4980F of the Code or Section 502 of ERISA. 
 (3) Neither the Company,
any Company Subsidiary nor any entity which is considered one employer with the Company under Section 4001 of ERISA or Section 414 of the Code (an “ERISA Affiliate”) (x) maintains or contributes to or has within the
past six years maintained or contributed to a Pension Plan that is subject to Subtitles C or D of Title IV of ERISA or (y) maintains or has an obligation to contribute to or has within the past six years maintained or had an obligation to
contribute to a multiemployer plan, as defined in Section 3(37) of ERISA. All contributions required to be made under each Benefit Plan, as of the date hereof, have been timely made and all obligations in respect of each Benefit Plan have been
properly accrued and reflected in the Company Financial Statements. 
 (4) As of the date hereof, there is no
material pending or, to the knowledge of the Company threatened, litigation relating to the Benefit Plans. Neither the Company nor any of the Company Subsidiaries has any obligations for retiree health and life benefits under any ERISA Plan or
collective bargaining agreement. The Company or Company Subsidiaries may amend or terminate any such retiree health and life plan at any time without incurring any liability thereunder other than in respect of claims incurred prior to such amendment
or termination. 
 (5) None of the transactions contemplated by this Agreement, individually or in the aggregate,
shall give rise to a change in control under, or result in the breach or the violation of, or the acceleration of any right under, or result in any additional rights, or the triggering of any anti-dilution adjustment under the Stock Plans or the
Employment Agreements or any other contract or agreement to which the Company or any Company Subsidiary is a party. 

(6) There has been no amendment to, announcement by the Company or any of the Company Subsidiaries relating to, or change
in employee participation or coverage under, any Benefit Plan which would increase materially the expense of maintaining such plan above the level of the expense incurred therefor for the most recent fiscal year. Neither the execution of this
Agreement, shareholder approval of this Agreement nor the consummation of the transactions contemplated hereby shall (v) entitle any Employee, officer or director of the Company or any of the Company Subsidiaries to unemployment compensation or
severance pay or any increase in severance pay upon any termination of 
  

 -30- 

 
employment after the date hereof; (w) increase any benefits otherwise payable under any Benefit Plan; (x) accelerate the time of payment or vesting or result in any payment or funding
(through a grantor trust or otherwise) of compensation or benefits under, increase the amount payable or result in any other material obligation pursuant to, any of the Benefit Plans; (y) limit or restrict the right of the Company or, after the
consummation of the transactions contemplated hereby, the Investors to merge, amend or terminate any of the Benefit Plans or (z) result in payments under any of the Benefit Plans which would not be deductible Section 280G of the Code.

 (q) Status of Securities. The shares of Common Stock, Series B Stock (upon filing of the applicable Series B Stock
Articles of Amendment with the Washington Secretary) and the Warrant to be issued pursuant to this Agreement have been duly authorized by all necessary corporate action of the Company. When issued and sold against receipt of the consideration
therefor as provided in this Agreement or upon the exercise of the Warrant, as applicable, such shares of Common Stock and Series B Stock shall be validly issued, fully paid and nonassessable, shall not subject the holders thereof to personal
liability, shall have no par value and shall not be subject to preemptive rights of any other stockholder of the Company. The shares of Common Stock issuable upon the conversion of the Series B Stock and exercise of the Warrant shall, upon approval
of each of the Stockholder Proposals and filing of the applicable Series B Stock Articles of Amendment with the Washington Secretary, have been duly authorized by all necessary corporate action and, when so issued, upon such conversion or exercise
shall be validly issued, fully paid and nonassessable, shall not subject the holders thereof to personal liability, shall have no par value and shall not be subject to preemptive rights of any other stockholder of the Company. The Warrant, when
executed and delivered by the Company pursuant to this Agreement, shall constitute a valid and legally binding agreement of the Company enforceable in accordance with its terms (except as enforcement may be limited by applicable bankruptcy,
insolvency, reorganization, moratorium, fraudulent transfer and similar laws relating to or affecting creditors generally or by general equitable principles (whether applied in equity or at law)). 

(r) Investment Company. Neither the Company nor any of the Company Subsidiaries is or acts as the principal investment adviser to
an “investment company” as defined under the Investment Company Act of 1940, as amended, and neither the Company nor any of the Company Subsidiaries sponsors any person that is such an investment company. 

(s) Risk Management; Derivatives. 

(1) The Company and the Company Subsidiaries have in place risk management policies and procedures sufficient in scope and
operation to protect against risks of the type and in amounts reasonably expected to be incurred by persons of similar size and in similar lines of business as the Company and the Company Subsidiaries. 

 

 -31- 

 (2) All material derivative instruments, including swaps, forwards, caps,
floors and option agreements, whether entered into for the Company’s own account, or for the account of one or more of the Company Subsidiaries or their customers, were entered into (i) only for purposes of mitigating identified risk and
in the ordinary course of business, (ii) in accordance with prudent practices and in all material respects with all applicable laws, rules, regulations and regulatory policies, and (iii) with counterparties believed by the Company to be
financially responsible at the time; and each of them constitutes the valid and legally binding obligation of the Company or one of the Company Subsidiaries, enforceable in accordance with its terms. Neither the Company nor the Company Subsidiaries,
nor any other party thereto, is in material breach of or has materially defaulted under any such agreement or arrangement except as listed on Schedule 2.2(s) (such agreements, the “Disclosed Agreements”). 

(t) Foreign Corrupt Practices and International Trade Sanctions. Neither the Company nor any Company Subsidiary, nor any of their
respective directors, officers, agents, employees or any other persons acting on their behalf (i) has violated the Foreign Corrupt Practices Act, 15 U.S.C. § 78dd-1 et seq., as amended, or any other similar applicable foreign,
federal, or state legal requirement, (ii) has made or provided, or caused to be made or provided, directly or indirectly, any payment or thing of value to a foreign official, foreign political party, candidate for office or any other person
knowing that the person shall pay or offer to pay the foreign official, party or candidate, for the purpose of influencing a decision, inducing an official to violate their lawful duty, securing any improper advantage, or inducing a foreign official
to use their influence to affect a governmental decision, (iii) has paid, accepted or received any unlawful contributions, payments, expenditures or gifts, (iv) has violated or operated in noncompliance with any export restrictions, money
laundering law, anti-terrorism law or regulation, anti-boycott regulations or embargo regulations, or (v) is currently subject to any United States sanctions administered by the Office of Foreign Assets Control of the United States Treasury
Department. 
 (u) Environmental Matters. Except as has not had and would not reasonably be expected to have a Material
Adverse Effect on the Company, the Company and each Company Subsidiary: (i) have complied at all times with all applicable Environmental Laws; (ii) have not owned or operated any property that has been contaminated with any Hazardous
Substance that could be expected to result in liability pursuant to any Environmental Law; (iii) are not liable for Hazardous Substance disposal or contamination on any third party property; (iv) have not received any notice, demand,
letter, claim or request for information indicating that it may be in violation of or subject to liability under any Environmental Law; (v) are not subject to any order, decree, injunction or agreement with any Governmental Entity or any
indemnity or other agreement with any third party relating to liability under any Environmental Law; (vi) are not subject to any circumstances or conditions that could reasonably be expected to result in any claims, liability, investigations,
costs or restrictions on the ownership, use, or transfer of any property in connection with any Environmental Law; (vii) have not 

 

 -32- 

 
participated in the management of any borrower or other third party property, or taken any other actions such that they could be deemed an owner or operator of such property for purposes of any
Environmental Law and (viii) have made available to the Investors copies of all environmental reports, studies, assessments, and memoranda in its possession relating to the Company or its Subsidiaries or any of their current or former
properties or operations. For purposes of this Agreement, “Environmental Law” means any law, regulation, order, decree, common law or agency requirement relating to the protection of the environment or human health and safety and
“Hazardous Substance” means any substance that is regulated pursuant to any Environmental Law including any waste, petroleum products, asbestos, mold and lead products. 

(v) Anti-Takeover Provisions and Agreed Plan Not Applicable. The Board of Directors has taken all necessary action to ensure that,
prior to the Closing (x) each of the consummation of the Investment and the other transactions contemplated by the Transaction Documents, a TruPS Exchange, if any, the TARP Exchange and the Other Private Placements (collectively, the
“Recapitalization Transactions”) (1) shall have been approved pursuant to Section 23B.19.040(1)(a)(ii) of the Revised Code of Washington and (2) shall be deemed to be exceptions to the prohibitions and restrictions of
Section 23B.19.040 of the Revised Code of Washington, (y) any other similar “moratorium,” “control share,” “fair price,” “takeover” or “interested stockholder” law does not and shall not
apply to the Transaction Documents or the Recapitalization Transactions and (z) none of the Transaction Documents and the Recapitalization Transactions shall cause any Person, solely by virtue of the consummation of any or all of the
Recapitalization Transactions or execution of the Transaction Documents, to become an Acquiring Person under the Agreed Plan. 

(w) Intellectual Property. 

(1) The Company has Previously Disclosed or provided to the Investors or their representatives a true, complete and correct list of all
Registered Intellectual Property owned by the Company and each of the Company Subsidiaries, indicating for each Registered item the registration or application number and the applicable filing jurisdiction (the “Scheduled Intellectual
Property”), and, to the knowledge of the Company, such Scheduled Intellectual Property is not subject to any outstanding order, judgment, decree or agreement adversely affecting the use thereof by the Company or any of the Company
Subsidiaries. The Company and each of the Company Subsidiaries owns, or is licensed to use (in each case, free and clear of any material claims, liens or encumbrances), all Intellectual Property used in or necessary for the conduct of its business
as currently conducted. 
 (2) To the knowledge of the Company, the use of any Intellectual Property by the Company and the
Company Subsidiaries does not currently infringe on or otherwise violate the rights of any person, and has not done so in the past five years, and such use is in accordance with any applicable license pursuant to which the Company or any of the
Company Subsidiaries acquired the right to use any Intellectual Property. 
  

 -33- 

 (3) To the knowledge of the Company, no person is challenging, infringing on or otherwise
violating any right of the Company or any of the Company Subsidiaries with respect to any material Intellectual Property owned by or licensed to the Company or the Company Subsidiaries. 

(4) Neither the Company nor any of the Company Subsidiaries has received any notice of any pending claim with respect to any Intellectual
Property used by the Company or any of the Company Subsidiaries. 
 (5) To the knowledge of the Company, no Intellectual
Property owned or licensed by the Company or any of the Company Subsidiaries is being used or enforced in a manner that would be expected to result in the abandonment, cancellation or unenforceability of such Intellectual Property. 

(6) The IT Assets owned, used or held for use by the Company or any of the Company Subsidiaries operate and perform in all material
respects in accordance with their documentation and functional specifications and otherwise as required in connection with the business. To the Company’s knowledge, no person has gained unauthorized access to the IT Assets. The Company and the
Company Subsidiaries have implemented reasonable backup and disaster recovery technology consistent with industry practices. The Company and the Company Subsidiaries take reasonable measures, directly or indirectly, to ensure the confidentiality,
privacy and security of customer, employee and other confidential information. The Company and the Company Subsidiaries have complied with all Internet domain name registration and other requirements of Internet domain registrars concerning Internet
domain names that are used in the business. 
 For the purposes of this Agreement, “Intellectual Property”
shall mean trademarks, service marks, brand names, certification marks, trade dress, domain names and other indications of origin, the goodwill associated with the foregoing and registrations in any jurisdiction of, and applications in any
jurisdiction to register, the foregoing, including any extension, modification or renewal of any such registration or application; inventions, discoveries and ideas, whether patentable or not, in any jurisdiction; patents, applications for patents
(including divisions, continuations, continuations in part and renewal applications), and any renewals, extensions or reissues thereof, in any jurisdiction; nonpublic information, know-how, trade secrets and confidential information and rights in
any jurisdiction to limit the use or disclosure thereof by any person; writings and other works, whether copyrightable or not, in any jurisdiction; and registrations or applications for registration of copyrights in any jurisdiction, and any
renewals or extensions thereof; and any similar intellectual property or proprietary rights. “IT Assets” shall mean the computers, computer software, firmware, middleware, servers, workstations, routers, hubs, switches, data
communications lines, and all other information technology equipment, and all associated documentation used in the business of the Company and the Company Subsidiaries. For purposes of this Section (w), “Registered” shall mean
issued by, registered with, renewed 
  

 -34- 

 
by or the subject of a pending application before any Governmental Entity or internet domain registrar. 

(x) Brokers and Finders. Except for Sandler O’Neill + Partners, L.P., Barclays Capital, Inc. and FBR Capital Markets, neither
the Company nor any Company Subsidiary nor any of their respective officers, directors or employees has employed any broker or finder or incurred any liability for any financial advisory fees, brokerage fees, commissions or finder’s fees, and
no broker or finder has acted directly or indirectly for the Company or any Company Subsidiary, in connection with the Transaction Documents or the transactions contemplated hereby and thereby. 

(y) Mortgage Banking Business. Except as has not had and would not reasonably be expected to have a Material Adverse Effect on the
Company: 
 (1) The Company and each Company Subsidiary have complied with, and all documentation in connection
with the origination, processing, underwriting and credit approval of any mortgage loan originated, purchased or serviced by the Company or any Company Subsidiary satisfied, (A) all applicable federal, state and local laws, rules and
regulations with respect to the origination, insuring, purchase, sale, pooling, servicing, subservicing, or filing of claims in connection with mortgage loans, including all laws relating to real estate settlement procedures, consumer credit
protection, truth in lending laws, usury limitations, fair housing, transfers of servicing, collection practices, equal credit opportunity and adjustable rate mortgages, (B) the responsibilities and obligations relating to mortgage loans set
forth in any agreement between the Company or any Company Subsidiary and any Agency, Loan Investor or Insurer, (C) the applicable rules, regulations, guidelines, handbooks and other requirements of any Agency, Loan Investor or Insurer and
(D) the terms and provisions of any mortgage or other collateral documents and other loan documents with respect to each mortgage loan; and 

(2) No Agency, Loan Investor or Insurer has (A) claimed in writing that the Company or any Company Subsidiary has
violated or has not complied with the applicable underwriting standards with respect to mortgage loans sold by the Company or any Company Subsidiary to a Loan Investor or Agency, or with respect to any sale of mortgage servicing rights to a Loan
Investor, (B) imposed in writing restrictions on the activities (including commitment authority) of the Company or any Company Subsidiary or (C) indicated in writing to the Company or any Company Subsidiary that it has terminated or
intends to terminate its relationship with the Company or any Company Subsidiary for poor performance, poor loan quality or concern with respect to the Company’s or any Company Subsidiary’s compliance with laws. 

 

 -35- 

 For purposes of this Section 2.2(y): 

(A) “Agency” shall mean the Federal Housing Administration, the Federal Home Loan Mortgage Corporation,
the Federal National Mortgage Association, the Government National Mortgage Association, or any other federal or state agency with authority to (i) determine any investment, origination, lending or servicing requirements with regard to mortgage
loans originated, purchased or serviced by the Company or any Company Subsidiary or (ii) originate, purchase, or service mortgage loans, or otherwise promote mortgage lending, including, without limitation, state and local housing finance
authorities; 
 (B) “Loan Investor” shall mean any person (including an Agency) having a
beneficial interest in any mortgage loan originated, purchased or serviced by the Company or any Company Subsidiary or a security backed by or representing an interest in any such mortgage loan; and 

(C) “Insurer” shall mean a person who insures or guarantees for the benefit of the mortgagee all or any
portion of the risk of loss upon borrower default on any of the mortgage loans originated, purchased or serviced by the Company or any Company Subsidiary, including the Federal Housing Administration, the United States Department of Veterans’
Affairs, the Rural Housing Service of the U.S. Department of Agriculture and any private mortgage insurer, and providers of hazard, title or other insurance with respect to such mortgage loans or the related collateral. 

(z) Agreements with Regulatory Agencies. Neither the Company nor any Company Subsidiary is subject to any cease-and-desist or
other similar order or enforcement action issued by, or is a party to any written agreement, consent agreement or memorandum of understanding with, or is a party to any commitment letter or similar undertaking to, or is subject to any capital
directive by, or since December 31, 2008, has adopted any board resolutions at the request of, any Governmental Entity that currently restricts in any material respect the conduct of its business or that in any material manner relates to its
capital adequacy, its liquidity and funding policies and practices, its ability to pay dividends, its credit, risk management or compliance policies, its internal controls, its management or its operations or business (each item in this sentence, a
“Regulatory Agreement”), with the exception of the Written Agreement and the Cease and Desist Order, nor has the Company or any Company Subsidiary been advised since December 31, 2008 and until the date of this Agreement by any
Governmental Entity that it is considering issuing, initiating, ordering, or requesting any such Regulatory Agreement. Except as Previously Disclosed, the Company and each Company 

 

 -36- 

 
Subsidiary are in compliance in all material respects with each Regulatory Agreement to which it is party or subject (including, for the avoidance of doubt, the Written Agreement and the Cease
and Desist Order), and neither the Company nor any Company Subsidiary has received any notice from any Governmental Entity indicating that either the Company or any Company Subsidiary is not in compliance in all material respects with any such
Regulatory Agreement. 
 (aa) As of the date hereof, the characteristics of the loan portfolio of the Company have not
materially changed from the characteristics of the loan portfolio of the Company as of December 31, 2009, reflected in the tape provided to the Investors, except for the sale, in January 2010, of $230 million indirect automobile loan portfolio.

 (bb) Prior to the Closing, no counterparty to any of the Disclosed Agreements (other than the Company or any of the Company
Subsidiaries) has declared or otherwise asserted that an event of default has occurred under any of the Disclosed Agreements, and as of immediately prior to the Closing, no event of default shall exist with respect to any of the Disclosed
Agreements. 
 (cc) As of the date hereof, Sterling Savings Bank and Golf Savings Bank, collectively, shall have at least
$2,750,000,000 in core deposits (including money market, demand, checking, savings and transactional accounts and excluding secured governmental deposits and certificates of deposits) and at least $2,800,000,000 in certificates of deposits,
excluding governmental and brokered deposits. 
 2.3 Representations and Warranties of the Investors. Except as
Previously Disclosed, each Investor hereby represents and warrants as of the date of this Agreement (except to the extent made only as of a specified date, in which case as of such date) to the Company that: 

(a) Organization and Authority. Each Investor is a limited partnership duly organized, validly existing and in good standing under
the laws of the jurisdiction of its organization, is duly qualified to do business and is in good standing in all jurisdictions where its ownership or leasing of property or the conduct of its business requires it to be so qualified and failure to
be so qualified would have a Material Adverse Effect on such Investor and has partnership power and authority to own its properties and assets and to carry on its business as it is now being conducted. Each Investor has furnished the Company with a
true, correct and complete copy of its certificate of limited partnership through the date of this Agreement. 
 (b)
Authorization. 
 (1) Each Investor has the partnership power and authority to enter into this Agreement and to carry out
its obligations hereunder. The execution, delivery and performance of this Agreement by each Investor and the consummation of the transactions contemplated hereby have been duly authorized by such Investor’s partnership and no further approval
or authorization by any of the partners is required. Subject to such 
  

 -37- 

 
approvals of Governmental Entities as may be required by statute or regulation, this Agreement is a valid and binding obligation of each Investor enforceable against such Investor in accordance
with its respective terms, except as such enforceability may be limited by bankruptcy, insolvency, moratorium, reorganizations, fraudulent transfer or similar laws affecting creditors generally or by general equitable principles (whether applied in
equity or at law). 
 (2) Neither the execution, delivery and performance by each Investor of this Agreement, nor the
consummation of the transactions contemplated hereby, nor compliance by such Investor with any of the provisions hereof, shall (i) violate, conflict with, or result in a breach of any provision of, or constitute a default (or an event which,
with notice or lapse of time or both, would constitute a default) under, or result in the termination of, or accelerate the performance required by, or result in a right of termination or acceleration of, or result in the creation of, any Lien upon
any of the properties or assets of such Investor under any of the material terms, conditions or provisions of (A) its certificate of limited partnership or partnership agreement or (B) any note, bond, mortgage, indenture, deed of trust,
license, lease, agreement or other instrument or obligation to which such Investor is a party or by which it may be bound, or to which such Investor or any of the properties or assets of such Investor may be subject, or (ii) subject to
compliance with the statutes and regulations referred to in the next paragraph, violate any statute, rule or regulation or, to the knowledge of such Investor, any judgment, ruling, order, writ, injunction or decree applicable to such Investor or any
of their respective properties or assets except in the case of clauses (i)(B) and (ii) for such violations, conflicts and breaches as would not reasonably be expected to have a Material Adverse Effect on such Investor. 

(c) Purchase for Investment. Each Investor acknowledges that the Securities have not been registered under the Securities Act or
under any state securities laws. Each Investor (1) is acquiring the Securities pursuant to an exemption from registration under the Securities Act solely for investment with no present intention to distribute any of the Securities to any
person, (2) will not sell or otherwise dispose of any of the Securities, except in compliance with the registration requirements or exemption provisions of the Securities Act and any other applicable securities laws, (3) has such knowledge
and experience in financial and business matters and in investments of this type that it is capable of evaluating the merits and risks of its investment in the Securities and of making an informed investment decision and (4) is an
“accredited investor” (as that term is defined by Rule 501 of the Securities Act). 
 (d) Financial Capability.
At Closing, each Investor shall have available funds necessary to consummate the Closing on the terms and conditions contemplated by this Agreement. 

(e) Brokers and Finders. Neither the Investors nor their Affiliates or any of their respective officers, directors or employees
has employed any broker or finder or incurred any liability for any financial advisory fees, brokerage fees, commissions or 
  

 -38- 

 
finder’s fees, and no broker or finder has acted directly or indirectly for any Investor, in connection with the Transaction Documents or the transactions contemplated hereby and thereby.

 (f) Ownership. As of the date of this Agreement, each Investor is not the owner of record or the Beneficial Owner of
shares of Common Stock, securities convertible into or exchangeable for Common Stock or any other equity or equity linked security of the Company or any of the Company Subsidiaries. 

ARTICLE III 

Covenants 

3.1 Filings; Other Actions. 

(a) Each of the Investors and the Company shall cooperate and consult with the other and use reasonable best efforts to prepare and file
all necessary documentation, to effect all necessary applications, notices, petitions, filings and other documents, and to obtain all necessary permits, consents, orders, approvals and authorizations of, or any exemption by, all third parties and
Governmental Entities, and expiration or termination of any applicable waiting periods, necessary or advisable to consummate the transactions contemplated by this Agreement and the other Transaction Documents and to perform covenants contemplated by
this Agreement and the other Transaction Documents; the Investors shall make or file any such applications, notices, petitions or filings required to be made by it with Governmental Entities as promptly as practicable, and in any event not later
than the date that is 10 calendar days, after the date of this Agreement; provided, however, that nothing in this Agreement shall obligate the Investors to provide any of their, their Affiliates’ or their control persons’ or equity
holders’ nonpublic, proprietary, personal or otherwise confidential information. In furtherance and not in limitation of the foregoing, the Investors will use reasonable best efforts to seek and obtain the written confirmation described in
Section 1.2(c)(2)(xii), and in the event that the Federal Reserve demands changes to the structure of the transactions contemplated by this Agreement and the other Transaction Documents as a condition precedent to providing such written
confirmation, each of the Investors and the Company will cooperate and consult with the other and use all reasonable efforts to make such changes, subject to Section 4.12; provided that no such changes shall, in the Investors’ sole
discretion, adversely affect the economic and accounting aspects of the transactions contemplated by this Agreement and the other Transaction Documents with respect to the Investment and/or the Company and its Affiliates. Each party shall execute
and deliver both before and after the Closing such further certificates, agreements and other documents and take such other actions as the other party may reasonably request to consummate or implement such transactions or to evidence such events or
matters. In particular, the Investors shall use their reasonable best efforts to promptly obtain, and the Company shall cooperate as may reasonably be requested by the Investors and use its reasonable best efforts to help the Investors promptly
obtain or submit, as the case may 
  

 -39- 

 
be, as promptly as practicable, all notices to and, to the extent required by applicable law or regulation, consents, approvals or exemptions from bank regulatory authorities (including the
Investors’ notice to the Federal Reserve pursuant to the Change in Bank Control Act, as amended, and applicable rules and regulations thereunder and application to the FDIC pursuant to the Depository Institution Management Interlocks Act and
applicable rules and regulations thereunder), for the transactions contemplated by the Transaction Documents. Each of the Investors and the Company shall have the right to review in advance, and to the extent practicable each shall consult with the
other, in each case, subject to applicable laws relating to the exchange of information, with respect to all the information relating to the other party, and any of their respective subsidiaries, which appears in any filing made with, or written
materials submitted to, any third party or any Governmental Entity in connection with the transactions contemplated by this Agreement. In exercising the foregoing right, each of the parties hereto agrees to act reasonably and as promptly as
practicable. Each party hereto agrees to keep the other party apprised of the status of matters relating to completion of the transactions contemplated hereby. The Investors and the Company shall promptly furnish each other to the extent permitted
by applicable laws with copies of written communications received by them or their subsidiaries from, or delivered by any of the foregoing to, any Governmental Entity in respect of the transactions contemplated by this Agreement or by any other
Transaction Document. 
 (b) Unless this Agreement has been terminated pursuant to Section 5.1, the Company shall call a
meeting of its stockholders, promptly after the Closing, to vote on proposals (i) to amend the Articles of Incorporation to increase the number of authorized shares of Common Stock to at least 10,000,000,000 shares or such larger number as the
Board of Directors determines in its reasonable judgment is necessary to effectuate the conversion of the Series B Stock, Series C Stock and the Series D Stock into, and exercise of the Warrant and the TARP Warrant for, Common Stock and (ii) to
approve the conversion of the Series B Stock and the Series D Stock into, and exercise of the Warrant for, Common Stock in accordance with the respective terms of the Series B Shares, Series D Shares and the Warrant (collectively, the
“Stockholder Proposals”). In addition, promptly following the receipt of the Stockholder Proposals described in clause (i) above, the Company shall call a meeting of its stockholders to amend the Articles of Incorporation to
adopt certain restrictions on acquisitions and dispositions of securities by persons that hold, or intend to acquire, 5% or more of the value of the Common Shares of the Company, in substantially the form attached hereto as Exhibit D (the
“Charter Amendment Proposal”). The Board of Directors shall unanimously recommend to the Company’s stockholders that such stockholders approve the Stockholder Proposals and the Charter Amendment Proposal. The Investors shall
vote or cause to be voted all shares of capital stock beneficially owned by them and eligible to vote on the Stockholder Proposals and the Charter Amendment Proposal and in favor of such Stockholder Proposals and the Charter Amendment Proposal, but
only to the extent such Stockholder Proposals and the Charter Amendment Proposal entail only the specific items set forth in the respective definitions thereof. In connection with each of the meetings at which such proposals will be voted on, the
Company shall promptly prepare (and the Investors 
  

 -40- 

 
shall reasonably cooperate with the Company to prepare) and file (but, in the case of the preliminary proxy statement regarding the Stockholder Proposals, in no event more than fifteen business
days after the last date on which the Company accepts a subscription agreement from an investor in the Other Private Placements) with the SEC a preliminary proxy statement, shall use its reasonable best efforts to solicit proxies for such
stockholder approval and shall use its reasonable best efforts to respond to any comments of the SEC or its staff and to cause a definitive proxy statement related to such stockholders’ meeting to be mailed to the Company’s stockholders as
promptly as practicable after clearance thereof by the SEC. The Company shall notify the Investors promptly of the receipt of any comments from the SEC or its staff with respect to the proxy statement and of any request by the SEC or its staff for
amendments or supplements to such proxy statement or for additional information and shall supply the Investors with copies of all correspondence between the Company or any of its representatives, on the one hand, and the SEC or its staff, on the
other hand, with respect to such proxy statement. If at any time prior to such stockholders’ meeting there shall occur any event that is required to be set forth in an amendment or supplement to the proxy statement, the Company shall as
promptly as practicable prepare and mail or otherwise disseminate to its stockholders such an amendment or supplement. Each of the Investors and the Company agree promptly to correct any information provided by it or on its behalf for use in the
proxy statement if and to the extent that such information shall have become false or misleading in any material respect, and the Company shall as promptly as practicable prepare and mail or otherwise disseminate to its stockholders an amendment or
supplement to correct such information to the extent required by applicable laws and regulations. The Company shall consult with the Investors prior to mailing any proxy statement, or any amendment or supplement thereto, and provide the Investors
with reasonable opportunity to comment thereon. The directors’ recommendation described in this Section 3.1 shall be included in the proxy statement filed in connection with obtaining such stockholder approval. In the event that the
approval of any of the Stockholder Proposals or the Charter Amendment Proposal, as applicable, is not obtained at such special stockholders’ meeting, the Company shall include a proposal to approve (and, the Board of Directors shall unanimously
recommend approval of) such Stockholder Proposal or such Charter Amendment Proposal, as applicable, at a meeting of its stockholders no less than once in each subsequent three-month period until such approval is obtained or made, with such
three-month period to commence on the date that is 120 days after the Closing Date to the extent such approval pertains to a Stockholder Proposal. 

(c) Each party agrees, upon request, to furnish the other party with all information concerning itself, its subsidiaries, Affiliates,
directors, officers, partners and stockholders and such other matters as may be reasonably necessary or advisable in connection with the proxy statement in connection with such stockholders’ meeting and any other statement, filing, notice or
application made by or on behalf of such other party or any of its subsidiaries to any Governmental Entity in connection with the Closing and the other transactions contemplated by the Transaction Documents. 

 

 -41- 

 (d) The Company hereby identifies and agrees to treat the Investors as “Strategic
Investors” for purposes of the Agreed Plan, the Series B Stock Articles of Amendment and the Articles of Amendment of Restated Articles of Incorporation of the Company. 

3.2 Expenses. The Company shall reimburse the Investors at the Closing for all reasonable documented out-of-pocket expenses
incurred by the Investors and their Affiliates in connection with due diligence, the negotiation and preparation of the Transaction Documents and undertaking of the transactions contemplated by the Transaction Documents (including fees and expenses
of counsel and accounting fees incurred by or on behalf of the Investors or their Affiliates in connection with the transactions contemplated hereby, but excluding the purchase or exercise price for any of the Securities and any investment banking
related fees) (collectively, the “Transaction Expenses”). In the event this Agreement is terminated pursuant to Section 5.1, the Company shall, subject to receiving all necessary regulatory approvals (and only to the extent of such
approvals), reimburse up to $2,000,000 of the Transaction Expenses. Other than as set forth in the foregoing sentence, each of the parties will bear and pay all other costs and expenses incurred by it or in its behalf in connection with the
transactions contemplated under the Transaction Documents. 
 3.3 Access, Information and Confidentiality. 

(a) From the date of this Agreement, until the date when the shares of Common Stock owned by the Investors represent less than 4.9% of the
outstanding Common Shares (counting (i) as shares of Common Stock owned by the Investors and outstanding, all shares of Common Stock into which Series B Shares or the Warrant owned by the Investors are convertible or exercisable and
(ii) as shares outstanding, (A) all shares of Common Stock into which shares of Series D Stock then outstanding are convertible or exercisable and (B) excluding all Common Shares issued by the Company after the Closing Date other than
as contemplated by this Agreement and the Securities), the Company shall ensure that upon reasonable notice, the Company and its subsidiaries shall use reasonable efforts to afford to the Investors and their representatives (including officers and
employees of the Investors, and counsel, accountants and other professionals retained by the Investors) such access during normal business hours to its books, records (including Tax returns and appropriate work papers of independent auditors under
normal professional courtesy), properties and personnel and to such other information as the Investors may reasonably request. 

(b) Except as otherwise provided in Section 6.15, each party to this Agreement shall hold, and shall cause its respective
subsidiaries and their directors, officers, employees, agents, consultants and advisors to hold, in strict confidence, unless disclosure to a Governmental Entity is necessary or appropriate in connection with any necessary regulatory approval or
unless compelled to disclose by judicial or administrative process or, in the written opinion of its counsel, by other requirement of law or the applicable requirements of any Governmental Entity, all nonpublic records,

  

 -42- 

 
books, contracts, instruments, computer data and other data and information (collectively, “Information”) concerning the other party hereto furnished to it by such other party or
its representatives pursuant to this Agreement (except to the extent that such information can be shown to have been (1) previously known by such party on a nonconfidential basis, (2) in the public domain through no fault of such party or
(3) later lawfully acquired from other sources by the party to which it was furnished), and neither party hereto shall release or disclose such Information to any other person, except its auditors, attorneys, financial advisors, other
consultants and advisors and, to the extent permitted above, to bank regulatory authorities. 
 (c) The Company shall promptly
provide the Investors with written notice of the occurrence of any circumstance, event, change, development or effect occurring after the date hereof and relating to the Company or any Company Subsidiary of which the Company has knowledge and which
constitutes a Material Adverse Effect or otherwise cause or render any of the representations and warranties of the Company set forth in this Agreement to be inaccurate. 

3.4 Conduct of the Business. Prior to the earlier of the Closing Date and the termination of this Agreement pursuant to
Section 5.1, the Company shall, and, shall cause each Company Subsidiary to: (a) use commercially reasonable efforts to carry on its business in the ordinary course of business and use reasonable best efforts to maintain and preserve its
and such Company Subsidiary’s business (including its organization, assets, properties, goodwill and insurance coverage) and preserve business relationships with customers, strategic partners, suppliers, distributors and others having business
dealings with it; provided, that nothing in this clause (a) shall limit or require any actions that the Board of Directors may, in good faith, determine to be inconsistent with their duties or the Company’s obligations under
applicable law or imposed by any Governmental Entity, (b) if the Company shall (1) declare or pay any dividend or distribution (other than ordinary cash dividends consistent with past practices) on any shares of Company capital stock, or
(2) take any action that would require any adjustment to be made under the terms of the Securities as if such Securities were issued on the date of this Agreement, make appropriate adjustments with respect to the Investors such that the
Investors shall receive the benefit of such transaction as if the Securities to be issued to the Investors at the Closing had been outstanding as of the date of such action and (c) to the extent reasonably practicable, shall consult with the
Investors prior to taking any material actions outside of the ordinary course of business. Additionally except as required pursuant to existing written, binding agreements in effect prior to the date of this Agreement and set forth in
Section 3.4 of the Disclosure Schedule, the Company shall and shall cause the Company Subsidiaries to not take any of the following actions: (i) grant or provide any severance or termination payments or benefits to any director, officer or
Employee of the Company or any of the Company Subsidiaries; (ii) increase the compensation, bonus or pension, welfare, severance or other benefits of, pay any bonus to, or make any new equity awards to any director, officer or Employee of the
Company or any of the Company Subsidiaries; (iii) establish, adopt, amend or terminate any Benefit Plan or amend the terms of any outstanding equity-based awards; (iv) take 

 

 -43- 

 
any action to accelerate the vesting or payment, or fund or in any other way secure the payment, of compensation or benefits under any Benefit Plan, to the extent not already provided in any such
Benefit Plan; (v) change any actuarial or other assumptions used to calculate funding obligations with respect to any Benefit Plan or to change the manner in which contributions to such plans are made or the basis on which such contributions
are determined, except as may be required by GAAP; or (vi) forgive any loans to directors, officers or Employees of the Company or any of the Company Subsidiaries. 

ARTICLE IV 

Additional Agreements 

4.1 Agreement. The Investors agree that until such time as the Investors no longer have a Qualifying Ownership Interest, without
the prior approval of the Board of Directors, neither the Investors nor any of their Affiliates shall, directly or indirectly: 

(a) in any way acquire, offer or propose to acquire or agree to acquire, other than as contemplated in the Transaction Documents,
Beneficial Ownership of any Voting Securities if such acquisition would result in the Investors or their Affiliates (i) being deemed to “control” the Company within the meaning of the BHC Act and the CIBC Act, (ii) make any
acquisition that would result in the Investors owning in aggregate more than 33% of the total equity of the Company or (iii) having Beneficial Ownership of 25% or more in aggregate of the outstanding shares of a class of voting securities (in
each case (ii) and (iii), within the meaning of the BHC Act and Regulation Y) or Common Stock of the Company (for the avoidance of doubt, for purposes of calculating the Beneficial Ownership of the Investors and their Affiliates hereunder,
(x) any security that is convertible into, or exercisable for, any such voting securities or Common Stock that is Beneficially Owned by the Investors or their Affiliates shall be treated as fully converted or exercised, as the case may be, into
the underlying voting securities or Common Stock and (y) any security convertible into, or exercisable for, the Common Stock that is Beneficially Owned by any person other than the Investors or any of their Affiliates shall not be taken into
account), other than in the case of clauses (i), (ii) or (iii), solely as a result of the exercise of any rights or obligations set forth in the Securities or this Agreement; provided that nothing in this Section 4.1 shall prevent
the Investors or their Affiliates from voting any Voting Securities then Beneficially Owned by the Investors or their Affiliates in any manner. 

(1) For purposes of this Agreement, “Voting Securities” shall mean at any time shares of any class of
capital stock of the Company that are then entitled to vote generally in the election of directors. 
 (2)
Notwithstanding the foregoing, the parties hereby agree that nothing in this Section 4.1 shall apply to any portfolio company with respect to which the Investors are not the party exercising control over the decision to

  

 -44- 

 
purchase Voting Securities or to vote such Voting Securities; provided, that the Investors do not provide to such entity any non-public information concerning the Company or any Company
Subsidiary and such portfolio company is not acting at the request or direction of or in coordination with the Investors; and provided, further, that ownership of such shares is not attributed to the Investors under the BHC Act and the
rules and regulations promulgated thereunder. 
 (b) make, or in any way participate in, any “solicitation” of
“proxies” (as such terms are defined under Regulation 14A under the Exchange Act, disregarding clause (iv) of Rule 14a-1(1)(2) and including any otherwise exempt solicitation pursuant to Rule 14a-2(b)) to vote, or seek to advise or
influence any person or entity with respect to the voting of, any Voting Securities of the Company or any Company Subsidiary; 

(c) call or seek to call a meeting of the stockholders of the Company or any of the Company Subsidiaries or initiate any stockholder
proposal for action by stockholders of the Company or any of the Company Subsidiaries, form, join or in any way participate in a “group” (within the meaning of Section 13(d)(3) of the Exchange Act and the rules and regulations
promulgated thereunder) with respect to any Voting Securities, or seek, propose or otherwise act alone or in concert with others, to influence or control the management, board of directors or policies of the Company or any Company Subsidiaries;

 (d) bring any action or otherwise act to contest the validity of this Section 4.1 (provided that neither the
Investors nor any of their Affiliates shall be restricted from contesting the applicability of this Section 4.1 to the Investors or any of their Affiliates under any particular circumstance) or seek a release of the restrictions contained
herein, or make a request to amend or waive any provision of this Section 4.1; 
 (e) enter into or agree, offer, propose
or seek (whether publicly or otherwise) to enter into any acquisition transaction, merger or other business combination relating to all or part of the Company or any of the Company Subsidiaries or any acquisition transaction for all or part of the
assets of the Company or any Company Subsidiary or any of their respective businesses; or 
 (f) publicly disclose any
intention, plan or arrangement inconsistent with any of the foregoing; 
 provided, that without limiting the Investors’ obligations
under Section 4.12, nothing in this Section 4.1 shall prevent the Investors or their Affiliates from voting or disposing of any Voting Securities then Beneficially Owned by the Investors or their Affiliates in any manner; provided,
further, that nothing in clauses (b), (c) or (e) of this Section 4.1 shall apply to the Investors’ Board Representative solely in his or her capacity as a director of the Company. 

4.2 No Rights Agreement. Except for the plan a copy of which is attached as Exhibit E hereto (the “Agreed Plan”),
the Company shall not enter into any 
  

 -45- 

 
poison pill agreement, stockholders’ rights plan or similar agreement that shall limit the Investors’ rights to acquire up to the caps set forth in Section 4.1. 

4.3 Gross-Up Rights. 

(a) Sale of New Securities. After the Closing, for so long as the Investors own Securities representing the Qualifying Ownership
Interest (before giving effect to any issuances triggering provisions of this Section 4.3), at any time that the Company makes any public or nonpublic offering or sale of any equity (including Common Stock, preferred stock or restricted stock),
or any securities, options or debt that is convertible or exchangeable into equity or that includes an equity component (such as, an “equity” kicker) (including any hybrid security) (any such security, a “New Security”)
(other than (1) pursuant to the granting or exercise of employee stock options or other stock incentives pursuant to the Company’s stock incentive plans approved by the Board of Directors (so long as the authorized awards under the
Company’s stock incentive plans represent less than 10% of the outstanding shares of capital stock) or the issuance of stock pursuant to the Company’s employee stock purchase plan approved by the Board of Directors or similar plan where
stock is being issued or offered to a trust, other entity or otherwise, for the benefit of any employees, officers or directors of the Company, in each case, in the ordinary course of providing incentive compensation, (2) issuances of capital
stock as full or partial consideration for a merger, acquisition, joint venture, strategic alliance, license agreement or other similar nonfinancing transaction or (3) issuances of shares of Common Stock upon the conversion or exercise of any
convertible preferred stock or warrants issued in connection with the Other Private Placements or the TARP Exchange, in each case, in accordance with the terms thereof as of the date hereof) or (4) issuances of rights, stock or other property
pursuant to the Agreed Plan) the Investors shall be afforded the opportunity to acquire from the Company for the same price (net of any underwriting discounts or sales commissions) and on the same terms (except that, to the extent permitted by law
and the Certificate of Incorporation and bylaws of the Company, the Investors may elect to receive such securities in nonvoting form, convertible into voting securities in a widely dispersed offering) as such securities are proposed to be offered to
others, up to the amount of New Securities in the aggregate required to enable it to maintain its proportionate Common Stock-equivalent interest in the Company immediately prior to any such issuance of New Securities. The amount of New Securities
that the Investors shall be entitled to purchase in the aggregate shall be determined by multiplying (x) the total number or principal amount of such offered New Securities by (y) a fraction, the numerator of which is the number of shares
of Common Stock held by the Investors plus the number of shares of Common Stock represented by the Series B Stock and the Warrant held by the Investors on an as-converted basis as of such date, and the denominator of which is the number of shares of
Common Stock then outstanding plus the number of shares of Common Stock represented by the Series B Stock and Series D Stock then outstanding (if any) plus the number of shares of Common Stock represented by the Warrant held by the Investors on an
as-converted basis on such date (after giving effect to any applicable adjustment thereunder). Notwithstanding anything herein to the contrary, in no event shall the Investors have the right to purchase

  

 -46- 

 
securities hereunder to the extent that such purchase would result in the Investors exceeding the ownership limitations set forth in Section 4.1(a). 

(b) Notice. In the event the Company proposes to offer or sell New Securities that are subject to the Investors’ rights under
Section 4.3(a), it shall give the Investors written notice of its intention, describing the price (or range of prices), anticipated amount of securities, timing and other terms upon which the Company proposes to offer the same (including, in
the case of a registered public offering and to the extent possible, a copy of the prospectus included in the registration statement filed with respect to such offering), no later than five business days, as the case may be, after the initial filing
of a registration statement with the SEC with respect to an underwritten public offering, after the commencement of marketing with respect to a Rule 144A offering or after the Company proposes to pursue any other offering. The Investors shall have
10 business days from the date of receipt of such a notice to notify the Company in writing that they intend to exercise their rights provided in this Section 4.3 and as to the amount of New Securities the Investors desire to purchase, up to
the maximum amount calculated pursuant to Section 4.3(a). Such notice shall constitute a nonbinding indication of interest of the Investors to purchase the amount of New Securities so specified at the price and other terms set forth in the
Company’s notice to it. The failure of the Investors to respond within such 10 business day period shall be deemed to be a waiver of the Investors’ rights under this Section 4.3 only with respect to the offering described in the
applicable notice. 
 (c) Purchase Mechanism. If the Investors exercise their rights provided in this Section 4.3,
the closing of the purchase of the New Securities with respect to which such right has been exercised shall take place within 30 calendar days after the giving of notice of such exercise, which period of time shall be extended for a maximum of 20
days in order to comply with applicable laws and regulations (including receipt of any applicable regulatory or stockholder approvals). Each of the Company and the Investors agree to use their commercially reasonable efforts to secure any regulatory
or stockholder approvals or other consents, and to comply with any law or regulation necessary in connection with the offer, sale and purchase of, such New Securities. 

(d) Failure of Purchase. In the event the Investors fail to exercise their rights provided in this Section 4.3 within the 10
day period described in Section 4.3(b) or, if so exercised, the Investors are unable to consummate such purchase within the time period specified in Section 4.3(c) above because of their failure to obtain any required regulatory or
stockholder consent or approval, the Company shall thereafter be entitled during the period of 90 days following the conclusion of the applicable period to sell or enter into an agreement (pursuant to which the sale of the New Securities covered
thereby shall be consummated, if at all, within 30 days from the date of such agreement) to sell the New Securities not elected to be purchased pursuant to this Section 4.3 or which the Investors are unable to purchase because of such failure
to obtain any such consent or approval, at a price and upon other terms that, taken in the aggregate, are not 
  

 -47- 

 
more favorable to the purchasers of such securities than were specified in the Company’s notice to the Investors. Notwithstanding the foregoing, if such sale is subject to the receipt of any
regulatory or stockholder approval or consent or the expiration of any waiting period, the time period during which such sale may be consummated shall be extended until the expiration of five business days after all such approvals or consents have
been obtained or waiting periods expired, but in no event shall such time period exceed 90 days from the date of the applicable agreement with respect to such sale. In the event the Company has not sold the New Securities or entered into an
agreement to sell the New Securities within such 90-day period (or sold and issued New Securities in accordance with the foregoing within 30 days from the date of said agreement (as such period may be extended in the manner described above for a
period not to exceed 90 days from the date of such agreement)), the Company shall not thereafter offer, issue or sell such New Securities without first offering such securities to the Investors in the manner provided above. 

(e) Non-Cash Consideration. In the case of the offering of securities for a consideration in whole or in part other than cash,
including securities acquired in exchange therefor (other than securities by their terms so exchangeable), the consideration other than cash shall be deemed to be the fair value thereof as determined by the Board of Directors; provided,
however, that such fair value as determined by the Board of Directors shall not exceed the aggregate market price of the securities being offered as of the date the Board of Directors authorizes the offering of such securities. 

(f) Cooperation. The Company and the Investors shall cooperate in good faith to facilitate the exercise of the Investors’
rights under this Section 4.3, including securing any required approvals or consents. 
 4.4 Governance Matters.
(a) The Company shall cause the Board Representative to be elected or appointed, subject to satisfaction of all legal and governance requirements regarding service as a director of the Company and to the approval of the Company’s
Nominating Committee (the “Nominating Committee”) (such approval not to be unreasonably withheld or delayed), to the Board of Directors on the Closing Date and thereafter as long as the Investors own in aggregate 4.9% or more of the
number of shares of Common Stock (counting (i) as shares of Common Stock owned by the Investors and outstanding, all shares of Common Stock into which Series B Shares or the Warrant owned by the Investors are convertible or exercisable and
(ii) as shares outstanding, (A) all shares of Common Stock into which shares of Series D Stock then outstanding are convertible or exercisable and (B) excluding all Common Shares issued by the Company after the Closing Date other than
as contemplated by this Agreement and the Securities) (the “Qualifying Ownership Interest”). The Company shall be required to recommend to its stockholders the election of the Board Representative to the Board of Directors at the
Company’s annual meeting, subject to satisfaction of all legal and governance requirements regarding service as a director of the Company and to the approval of the Nominating Committee (such approval not to be unreasonably withheld or
delayed). If the Investors no longer have a Qualifying Ownership Interest, the 
  

 -48- 

 
Investors shall have no further rights under Sections 4.4(a) through 4.4(c) and, in each case, at the written request of the Board of Directors, shall use all reasonable best efforts to
cause their Board Representative to resign from the Board of Directors as promptly as possible thereafter. The Board of Directors shall cause the Board Representative to be appointed to the Personnel Committee and Nomination Committee of the Board,
so long as the Board Representative qualifies to serve on such committees under the applicable rules of the NASDAQ, the SEC and the Company’s corporate governance guidelines and the charters of such committees. 

(b) The Board Representative shall, subject to applicable law, be the Company’s and the Nominating Committee’s nominee to serve
on the Board of Directors. The Company shall use its reasonable best efforts to have the Board Representative elected as a director of the Company by the stockholders of the Company and the Company shall solicit proxies for the Board Representative
to the same extent as it does for any of its other nominees to the Board of Directors. 
 (c) Subject to Section 4.4(a),
upon the death, resignation, retirement, disqualification or removal from office of the Board Representative, the Investors shall have the right to designate the replacement for the Board Representative, which replacement shall satisfy all legal and
governance requirements regarding service as a director of the Company. The Board of Directors of the Company shall use its reasonable best efforts to take all action required to fill the vacancy resulting therefrom with such person (including such
person, subject to applicable law, being the Company’s and the Nominating Committee’s nominee to serve on the Board of Directors, using all reasonable best efforts to have such person elected as director of the Company by the stockholders
of the Company and the Company soliciting proxies for such person to the same extent as it does for any of its other nominees to the Board of Directors). 

(d) The Company hereby agrees that, from and after the Closing Date, for so long as the Investors own in aggregate 4.9% or more of the
number of shares of Common Stock (counting (i) as shares of Common Stock owned by the Investors and outstanding, all shares of Common Stock into which Series B Shares or the Warrant owned by the Investors are convertible or exercisable and
(ii) as shares outstanding, (A) all shares of Common Stock into which shares of Series D Stock then outstanding are convertible or exercisable and (B) excluding all Common Shares issued by the Company after the Closing Date other than
as contemplated by this Agreement and the Securities), the Company shall, subject to applicable law, invite a person designated by the Investors and reasonably acceptable to the Board of Directors (the “Observer”) to attend meetings
of the Board of Directors (including any meetings of committees thereof which the Board Representative is a member) in a nonvoting observer capacity. If the Investors no longer Beneficially Own the minimum number of shares of Common Stock as
specified in the first sentence of this Section 4.4(d), the Investors shall have no further rights under this Section 4.4(d). 
  

 -49- 

 (e) The Board Representative shall be entitled to the same compensation and same
indemnification in connection with his or her role as a director as the other members of the Board of Directors, and the Board Representative shall be entitled to reimbursement for documented, reasonable out-of-pocket expenses incurred in attending
meetings of the Board of Directors or any committee thereof, to the same extent as the other members of the Board of Directors. The Company shall notify the Board Representative and the Observer of all regular meetings and special meetings of the
Board of Directors and of all regular and special meetings of any committee of the Board of Directors of which the Board Representative is a member. The Company shall provide the Board Representative and Observer with copies of all notices, minutes,
consents and other material that it provides to all other members of the Board of Directors concurrently as such materials are provided to the other members. The Observer shall not be entitled to participate in discussions of matters brought to the
Board of Directors. 
 (f) For purposes of this Agreement, “Board Representative” means Scott Jaeckel or such
successor as the Investors shall designate as provided herein. 
 4.5 Legend. 

(a) The Investors agree that all certificates or other instruments representing the Securities subject to this Agreement shall bear a
legend substantially to the following effect: 
 “(i) THE SECURITIES REPRESENTED BY THIS INSTRUMENT HAVE NOT
BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR SECURITIES LAWS OF ANY STATE AND MAY NOT BE TRANSFERRED, SOLD OR OTHERWISE DISPOSED OF EXCEPT WHILE A REGISTRATION STATEMENT RELATING THERETO IS IN EFFECT UNDER SUCH ACT AND APPLICABLE
STATE SECURITIES LAWS OR PURSUANT TO AN EXEMPTION FROM REGISTRATION UNDER SUCH ACT OR SUCH LAWS. 
 (ii) THE
SECURITIES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO TRANSFER AND OTHER RESTRICTIONS SET FORTH IN AN INVESTMENT AGREEMENT, DATED AS OF APRIL 29, 2010, COPIES OF WHICH ARE ON FILE WITH THE SECRETARY OF THE ISSUER.” 

(b) Upon request of the Investors, upon receipt by the Company of an opinion of counsel reasonably satisfactory to the Company to the
effect that such legend is no longer required under the Securities Act or applicable state laws, as the case may be, the Company shall promptly cause clause (i) of the legend to be removed from any certificate for any Securities to be so
transferred and clause (ii) of the legend shall be removed upon the expiration of such transfer and other restrictions set forth in this 

 

 -50- 

 
Agreement. The Investors acknowledge that the Securities have not been registered under the Securities Act or under any state securities laws and agrees that it shall not sell or otherwise
dispose of any of the Securities, except in compliance with the registration requirements or exemption provisions of the Securities Act and any other applicable securities laws. 

4.6 Reservation for Issuance. The Company shall reserve that number of Common Shares and Series B Shares sufficient for issuance
upon exercise or conversion of Securities owned at any time by the Investors without regard to any limitation on such conversion; provided, that in the case of the Warrants and the Series B Stock, the Company shall reserve such sufficient
number of Common Shares following the approval of the Stockholder Proposals. 
 4.7 Indemnity. (a) The Company
agrees to indemnify and hold harmless each of the Investors and their Affiliates and each of their respective officers, directors, partners, employees and agents, and each person who controls the Investors within the meaning of the Exchange Act and
the rules and regulations promulgated thereunder (collectively, the “Investor Indemnified Parties”), to the fullest extent lawful, from and against any and all actions, suits, claims, proceedings, costs, losses, liabilities,
damages, expenses (including reasonable out-of-pocket attorneys’ fees, expenses and disbursements), amounts paid in settlement and other costs (collectively, “Losses”) arising out of or resulting from (1) any inaccuracy in
or breach of the Company’s representations, warranties or certifications, as applicable (x) in this Agreement or (y) in the certificate delivered pursuant to Section 1.2(c)(2)(xv) and (2) the Company’s breach of
agreements or covenants made by the Company in this Agreement and the Warrant or (3) any Losses arising out of or resulting from any legal, administrative or other proceedings arising out of the transactions contemplated by this Agreement and
the terms of the Securities (other than any Losses attributable to the errors or omissions on the part of the Investors, but not including the transactions contemplated hereby and other than any Losses relating to any specific claim where
proceedings are initiated by the Investors or any Investor Indemnified Party where the Investors or such Indemnified Party is not the substantially prevailing party with respect to such claim). 

(b) The Investors agree to indemnify and hold harmless each of the Company and its Affiliates and each of their respective officers,
directors, partners, employees and agents, and each person who controls the Company within the meaning of the Exchange Act and the rules and regulations promulgated thereunder (collectively, the “Company Indemnified Parties”), to
the fullest extent lawful, from and against any and all Losses arising out of or resulting from (1) any inaccuracy in or breach of the Investors’ representations or warranties in this Agreement or (2) the Investors’ breach of
agreements or covenants made by the Investors in this Agreement. 
 (c) A party entitled to indemnification hereunder (each, an
“Indemnified Party”) shall give written notice to the party indemnifying it (the “Indemnifying Party”) of any claim with respect to which it seeks indemnification

  

 -51- 

 
promptly after the discovery by such Indemnified Party of any matters giving rise to a claim for indemnification; provided, that the failure of any Indemnified Party to give notice as
provided herein shall not relieve the Indemnifying Party of its obligations under this Section 4.7 unless and to the extent that the Indemnifying Party shall have been actually prejudiced by the failure of such Indemnified Party to so notify
such party. Such notice shall describe in reasonable detail such claim. In case any such action, suit, claim or proceeding is brought against an Indemnified Party, the Indemnified Party shall be entitled to hire, at the cost and expense of the
Indemnifying Party counsel and conduct the defense thereof; provided, however, that the Indemnifying Party shall only be liable for the legal fees and expenses of one law firm for all Indemnified Parties, taken together with regard to any
single action or group of related actions. If the Indemnifying Party assumes the defense of any claim, all Indemnified Parties shall thereafter deliver to the Indemnifying Party copies of all notices and documents (including court papers) received
by the Indemnified Party relating to the claim, and any Indemnified Party shall cooperate in the defense or prosecution of such claim. Such cooperation shall include the retention and (upon the Indemnifying Party’s request) the provision to the
Indemnifying Party of records and information that are reasonably relevant to such claim, and making employees available on a mutually convenient basis to provide additional information and explanation of any material provided hereunder. The
Indemnifying Party shall not be liable for any settlement of any action, suit, claim or proceeding effected without its written consent; provided, however, that the Indemnifying Party shall not unreasonably withhold, delay or condition
its consent. The Indemnifying Party further agrees that it shall not, without the Indemnified Party’s prior written consent (which shall not be unreasonably withheld or delayed), settle or compromise any claim or consent to entry of any
judgment in respect thereof in any pending or threatened action, suit, claim or proceeding in respect of which indemnification has been sought hereunder unless such settlement or compromise includes an unconditional release of such Indemnified Party
from all liability arising out of such action, suit, claim or proceeding. 
 (d) The Company shall not be required to indemnify
any Investor Indemnified Party (1) for any claim pursuant to Section 4.7(a)(1) if the amount of Losses incurred with respect to such claim are less than $50,000 (any claim involving Losses less than such amount being referred to as a
“De Minimis Claim”) (it being understood and agreed that one or more related claims shall be treated as one claim for purposes of determining whether such $50,000 threshold has been met) and (2) unless and until the aggregate
amount of all Losses incurred with respect to all claims (excluding any De Minimis Claims) pursuant to Section 4.7(a)(1) exceed $1,500,000, in which event the Company shall be responsible for the amount of such excess. The Investors shall not
be required to indemnify any Company Indemnified Parties (1) for any claim pursuant to Section 4.7(b)(1) if the amount of Losses incurred with respect to such claim are less than $50,000 (any claim involving Losses less than such amount
being referred to as a “De Minimis Claim” and (2) unless and until the aggregate amount of all Losses incurred with respect to all claims (excluding any De Minimis Claims) pursuant to Section 4.7(b)(1) exceed $1,500,000,
in which event the Investors shall be responsible for the amount of such excess. 
  

 -52- 

 (e) No indemnity obligation under this Section 4.7 shall result from a breach of the
representation set forth in Section 2.2(c) to the extent that such breach is fully remedied by an adjustment under Section 6.14 hereof. The cumulative indemnification obligation of (1) the Company to all of the Investor Indemnified
Parties or (2) the Investors to all of the Company Indemnified Parties, in each case, for inaccuracies in or breaches of representations and warranties, shall in no event exceed the Purchase Price. 

(f) The obligations of the Indemnifying Party under this Section 4.7 shall survive the Transfer, redemption or conversion of the
Securities issued pursuant to this Agreement, or the closing or termination of this Agreement and any other Transaction Document. The indemnity provided for in this Section 4.7 shall be the sole and exclusive monetary remedy of Indemnified
Parties after the Closing for any inaccuracy of any representation or warranty or any other breach of any covenant or agreement contained in this Agreement; provided, that nothing herein shall limit in any way any such party’s remedies
in respect of intentional and willful fraud, intentional and willful misrepresentation or omission or intentional and willful misconduct by the other party in connection with the transactions contemplated hereby. No party to this Agreement (or any
of its Affiliates) shall, in any event, be liable or otherwise responsible to any other party (or any of its Affiliates) for any consequential or punitive damages of such other party (or any of its Affiliates) arising out of or relating to this
Agreement or the performance or breach hereof. The indemnification rights contained in this Section 4.7 are not limited or deemed waived by any investigation or knowledge by the Indemnified Party prior to or after the date hereof. 

(g) Any indemnification payments pursuant to this Section 4.7 shall be treated as an adjustment to the Purchase Price for the
Securities for U.S. federal income and applicable state and local Tax purposes, unless a different treatment is required by applicable law. 

4.8 Exchange Listing. The Company shall promptly use its reasonable best efforts to cause the shares of Common Stock reserved
for issuance pursuant to the exercise of the Warrant and pursuant to the conversion of the Series B Stock to be approved for listing on the NASDAQ, subject to official notice of issuance and upon receipt of the requisite approval by the
Company’s stockholders of the Stockholder Proposals, as promptly as practicable, and in any event before the Closing if permitted by the rules of the NASDAQ. 

4.9 Registration Rights. 

(a) Registration. 

(1) Subject to the terms and conditions of this Agreement, the Company covenants and agrees that as promptly as
practicable after the Closing Date (and in any event, (i) for all Registrable Securities other than the Series B Stock, no later than the date that is 30 days after the Closing 

 

 -53- 

 
Date and (ii) for the Series B Stock, if the shares of Series B Stock are still outstanding and “Registrable Securities” pursuant to Section 4.9(k)(4), no later than the date
that is 120 days after the Closing Date), the Company shall have prepared and filed with the SEC one or more Shelf Registration Statements covering such Registrable Securities (or otherwise designate an existing Shelf Registration Statement filed
with the SEC to cover such Registrable Securities), and, to the extent the Shelf Registration Statement has not theretofore been declared effective or is not automatically effective upon such filing, the Company shall use reasonable best efforts to
cause such Shelf Registration Statement to be declared or become effective and to keep such Shelf Registration Statement continuously effective and in compliance with the Securities Act and usable for resale of such Registrable Securities for a
period from the date of its initial effectiveness until the time as there are no such Registrable Securities remaining (including by refiling such Shelf Registration Statement (or a new Shelf Registration Statement) if the initial Shelf Registration
Statement expires). Notwithstanding the foregoing, if on the filing deadlines referenced above the Company is not eligible to file a registration statement on Form S-3, then the Company shall not be obligated to file a Shelf Registration Statement
unless and until requested to do so in writing by the Investors. 
 (2) Any registration pursuant to this
Section 4.9(a) shall be effected by means of a shelf registration under the Securities Act (a “Shelf Registration Statement”) in accordance with the methods and distribution set forth in the Shelf Registration Statement and
Rule 415. If the Investors or any other holder of Registrable Securities to whom the registration rights conferred by this Agreement have been transferred in compliance with this Agreement intends to distribute any Registrable Securities by means of
an underwritten offering it shall promptly so advise the Company and the Company shall take all reasonable steps to facilitate such distribution, including the actions required pursuant to Section 4.9(c). The lead underwriters in any such
distribution shall be selected by the holders of a majority of the Registrable Securities to be distributed. 

(3) The Company shall not be required to effect a registration (including a resale of Registrable Securities from an
effective Shelf Registration Statement): 
 (A) with respect to securities that are not Registrable Securities
or with respect to Registrable Securities that cannot be sold under a registration statement as a result of the Transfer restrictions set forth herein; 

(B) during any Scheduled Black-out Periods; 
  

 -54- 

 (C) if, during the 6-month period following the Closing, there is existing
or pending any acquisition or probable acquisition, business combination or other similar transaction (a “Material Event”) that, in the good faith judgment of the Board of Directors, would make it inappropriate or inadvisable to
effect such registration to be effected at such time, in which event the Company shall have the right to defer such registration during such period until, in the good faith judgment of the Board of Directors, public disclosure of such Material Event
or the omission to disclose such Material Event would not be prejudicial or contrary to the interests of the Company; or 

(D) if the Company has notified the Investors and all other Holders that in the good faith judgment of the Board of
Directors, it would be materially detrimental to the Company or its security holders for such registration to be effected at such time, in which event the Company shall have the right to defer such registration for a period of not more than 45 days
after receipt of the request of the Investors or any other Holder; provided, that such right to delay a registration pursuant to this clause (D) shall be exercised by the Company (x) only if the Company has generally exercised (or
is concurrently exercising) similar black-out rights (if any) against holders of similar securities that have registration rights and (y) not more than two times in any 12-month period and not more than 90 days in the aggregate in any 12-month
period. 
 (4) If during any period when the Shelf Registration Statement is not effective or available, the
Company proposes to register any of its securities, other than a registration pursuant to Section 4.9(a)(1) or a Special Registration, and the registration form to be filed may be used for the registration or qualification for distribution of
Registrable Securities, the Company shall give prompt written notice to the Investors and all other Holders of its intention to effect such a registration (but in no event less than ten days prior to the anticipated filing date) and shall include in
such registration all Registrable Securities with respect to which the Company has received written requests for inclusion therein within ten business days after the date of the Company’s notice (a “Piggyback Registration”).
Any such person that has made such a written request may withdraw its Registrable Securities from such Piggyback Registration by giving written notice to the Company and the managing underwriter, if any, on or before the fifth business day prior to
the planned effective date of such Piggyback Registration. The Company may terminate or withdraw any registration under this Section 4.9(a)(4) prior to the effectiveness of 

 

 -55- 

 
such registration, whether or not the Investors or any other Holders have elected to include Registrable Securities in such registration. 

(5) If the registration referred to in Section 4.9(a)(4) is proposed to be underwritten, the Company shall so advise
the Investors and all other Holders as a part of the written notice given pursuant to Section 4.9(a)(4). In such event, the right of the Investors and all other Holders to registration pursuant to this Section 4.9(a) shall be conditioned
upon such persons’ participation in such underwriting and the inclusion of such persons’ Registrable Securities in the underwriting, and each such person shall (together with the Company and the other persons distributing their securities
through such underwriting) enter into an underwriting agreement in customary form with the underwriter or underwriters selected for such underwriting by the Company. If any participating person disapproves of the terms of the underwriting, such
person may elect to withdraw therefrom by written notice to the Company, the managing underwriter and the Investors. 

(6) If (x) the Company grants “piggyback” registration rights to one or more third parties to include their
securities in an underwritten offering under the Shelf Registration Statement pursuant to Section 4.9(a)(2) or (y) a Piggyback Registration under Section 4.9(a)(4) relates to an underwritten primary offering on behalf of the Company,
and in either case the managing underwriters advise the Company that in their reasonable opinion the number of securities requested to be included in such offering exceeds the number which can be sold without adversely affecting the marketability of
such offering (including an adverse effect on the per share offering price), the Company shall include in such registration or prospectus only such number of securities that in the reasonable opinion of such underwriters can be sold without
adversely affecting the marketability of the offering (including an adverse effect on the per share offering price), which securities shall be so included in the following order of priority: (i) first, in the case of a Piggyback Registration
under Section 4.9(a)(4), the securities the Company proposes to sell, (ii) second, Common Stock and other securities of the Company issued to Treasury, (iii) third, Registrable Securities of the Investors and all other Holders who
have requested registration of Registrable Securities pursuant to Sections 4.9(a)(2) or 4.9(a)(4), as applicable, pro rata on the basis of the aggregate number of such securities or shares owned by each such person and (iv) fourth, any
other securities of the Company that have been requested to be so included, subject to the terms of this Agreement. 
 (b)
Expenses of Registration. All Registration Expenses incurred in connection with any registration, qualification or compliance hereunder shall be borne by the Company. All Selling Expenses incurred in connection with any registrations

  

 -56- 

 
hereunder shall be borne by the Holders selling in such registration pro rata on the basis of the aggregate number of securities or shares being sold. 

(c) Obligations of the Company. The Company shall use its reasonable best efforts for so long as there are Registrable Securities
outstanding, to take such actions as are under its control to not become an ineligible issuer (as defined in Rule 405 under the Securities Act). In addition, whenever required to effect the registration of any Registrable Securities or facilitate
the distribution of Registrable Securities pursuant to an effective Shelf Registration Statement, the Company shall, as expeditiously as reasonably practicable: 

(1) Prepare and file with the SEC a prospectus supplement with respect to a proposed offering of Registrable Securities
pursuant to an effective registration statement, subject to Section 4.9(c), keep such registration statement effective or such prospectus supplement current. 

(2) Prepare and file with the SEC such amendments and supplements to the applicable registration statement and the
prospectus or prospectus supplement used in connection with such registration statement as may be necessary to comply with the provisions of the Securities Act with respect to the disposition of all securities covered by such registration statement.

 (3) Furnish to the Holders and any underwriters such number of copies of the applicable registration statement
and each such amendment and supplement thereto (including in each case all exhibits) and of a prospectus, including a preliminary prospectus, in conformity with the requirements of the Securities Act, and such other documents as they may reasonably
request in order to facilitate the disposition of Registrable Securities owned or to be distributed by them. 

(4) Use its reasonable best efforts to register and qualify the securities covered by such registration statement under
such other securities or blue sky laws of such jurisdictions as shall be reasonably requested by the Holders or any managing underwriter(s), to keep such registration or qualification in effect for so long as such registration statement remains in
effect, and to take any other action which may be reasonably necessary to enable such seller to consummate the disposition in such jurisdictions of the securities owned by such Holder; provided, that the Company shall not be required in
connection therewith or as a condition thereto to qualify to do business or to file a general consent to service of process in any such states or jurisdictions. 

(5) Notify each Holder of Registrable Securities at any time when a prospectus relating thereto is required to be
delivered under the Securities Act of the happening of any event as a result of which the 
  

 -57- 

 
applicable prospectus, as then in effect, includes an untrue statement of a material fact or omits to state a material fact required to be stated therein or necessary to make the statements
therein not misleading in light of the circumstances then existing. 
 (6) Give written notice to the Holders:

 (A) when any registration statement filed pursuant to Section 4.9(a) or any amendment thereto has been
filed with the SEC (except for any amendment effected by the filing of a document with the SEC pursuant to the Exchange Act) and when such registration statement or any post-effective amendment thereto has become effective; 

(B) of any request by the SEC for amendments or supplements to any registration statement or the prospectus included
therein or for additional information; 
 (C) of the issuance by the SEC of any stop order suspending the
effectiveness of any registration statement or the initiation of any proceedings for that purpose; 
 (D) of the
receipt by the Company or its legal counsel of any notification with respect to the suspension of the qualification of the Common Stock for sale in any jurisdiction or the initiation or threatening of any proceeding for such purpose; 

(E) of the happening of any event that requires the Company to make changes in any effective registration statement or
the prospectus related to the registration statement in order to make the statements therein not misleading (which notice shall be accompanied by an instruction to suspend the use of the prospectus until the requisite changes have been made); and

 (F) if at any time the representations and warranties of the Company contained in any underwriting agreement
contemplated by Section 4.9(c)(10) cease to be true and correct. 
 (7) Use its reasonable best efforts to
prevent the issuance or obtain the withdrawal of any order suspending the effectiveness of any registration statement referred to in Section 4.9(c)(6)(C) at the earliest practicable time. 

(8) Upon the occurrence of any event contemplated by Section 4.9(c)(5) or 4.9(c)(6)(E) and subject to the
Company’s rights under Section 4.05(d), the Company shall promptly prepare a post-effective 
  

 -58- 

 
amendment to such registration statement or a supplement to the related prospectus or file any other required document so that, as thereafter delivered to the Holders and any underwriters, the
prospectus shall not contain an untrue statement of a material fact or omit to state any material fact necessary to make the statements therein, in light of the circumstances under which they were made, not misleading. 

(9) Use reasonable best efforts to procure the cooperation of the Company’s transfer agent in settling any offering
or sale of Registrable Securities, including with respect to the transfer of physical stock certificates into book-entry form in accordance with any procedures reasonably requested by the Holders or any managing underwriter(s). 

(10) If an underwritten offering is requested pursuant to Section 4.9(a)(2), enter into an underwriting agreement in
customary form, scope and substance and take all such other actions reasonably requested by the Holders of a majority of the Registrable Securities being sold in connection therewith or by the managing underwriter(s), if any, to expedite or
facilitate the underwritten disposition of such Registrable Securities, and in connection therewith in any underwritten offering (including making members of management and executives of the Company available to participate in “road
shows,” similar sales events and other marketing activities), (i) make such representations and warranties to the Holders that are selling stockholders and the managing underwriter(s), if any, with respect to the business of the Company
and its subsidiaries, and the Shelf Registration Statement, prospectus and documents, if any, incorporated or deemed to be incorporated by reference therein, in each case, in customary form, substance and scope, and, if true, confirm the same if and
when requested, (ii) use its reasonable best efforts to furnish the underwriters with opinions of counsel to the Company, addressed to the managing underwriter(s), if any, covering the matters customarily covered in such opinions requested in
underwritten offerings, (iii) use its reasonable best efforts to obtain “cold comfort” letters from the independent certified public accountants of the Company (and, if necessary, any other independent certified public accountants of
any business acquired by the Company for which financial statements and financial data are included in the Shelf Registration Statement) who have certified the financial statements included in such Shelf Registration Statement, addressed to each of
the managing underwriter(s), if any, such letters to be in customary form and covering matters of the type customarily covered in “cold comfort” letters, (iv) if an underwriting agreement is entered into, the same shall contain
indemnification provisions and procedures customary in underwritten offerings, and (v) deliver such documents and certificates as may be reasonably requested by the Holders of a majority of the Registrable Securities being

  

 -59- 

 
sold in connection therewith, their counsel and the managing underwriter(s), if any, to evidence the continued validity of the representations and warranties made pursuant to clause
(i) above and to evidence compliance with any customary conditions contained in the underwriting agreement or other agreement entered into by the Company. Notwithstanding anything contained herein to the contrary, the Company shall not be
required to enter into any underwriting agreement or permit any underwritten offering absent an agreement by the applicable underwriter(s) to indemnify the Company in form, scope and substance as is customary in underwritten offerings by the Company
in which an affiliate of the Company acts as an underwriter. 
 (11) Make available for inspection by a
representative of Holders that are selling stockholders, the managing underwriter(s), if any, and any attorneys or accountants retained by such Holders or managing underwriter(s), at the offices where normally kept, during reasonable business hours,
financial and other records, pertinent corporate documents and properties of the Company, and cause the officers, directors and employees of the Company to supply all information, in each case, reasonably requested by any such representative,
managing underwriter(s), attorney or accountant in connection with such Shelf Registration Statement. 
 (12)
Cause all such Registrable Securities (other than the Warrant (or any successor warrant)) to be listed on each securities exchange on which the same class of securities issued by the Company are then listed or, if the same class of securities is not
then listed on any securities exchange, use its reasonable best efforts to cause all such Registrable Securities (other than the Warrant (or any successor warrant)) of such class to be listed on the New York Stock Exchange or the NASDAQ Stock
Market, as determined by the Company. 
 (13) If requested by Holders of a majority of the Registrable Securities
being registered and/or sold in connection therewith, or the managing underwriter(s), if any, promptly include in a prospectus supplement or amendment such information as the Holders of a majority of the Registrable Securities being registered
and/or sold in connection therewith or managing underwriter(s), if any, may reasonably request in order to permit the intended method of distribution of such securities and make all required filings of such prospectus supplement or such amendment as
soon as practicable after the Company has received such request. 
  

 -60- 

 (14) Timely provide to its security holders earning statements satisfying
the provisions of Section 11(a) of the Securities Act and Rule 158 thereunder. 
 (d) Suspension of Sales. During
any Scheduled Black-out Period and upon receipt of written notice from the Company that a registration statement, prospectus or prospectus supplement contains or may contain an untrue statement of a material fact or omits or may omit to state a
material fact required to be stated therein or necessary to make the statements therein not misleading or that circumstances exist that make inadvisable use of such registration statement, prospectus or prospectus supplement, each Holder of
Registrable Securities shall forthwith discontinue disposition of Registrable Securities pursuant to such registration statement until termination of such Scheduled Black-out Period or until such Holder has received copies of a supplemented or
amended prospectus or prospectus supplement, or until such Holder is advised in writing by the Company that the use of the prospectus and, if applicable, prospectus supplement may be resumed, and, if so directed by the Company, such Holder shall
deliver to the Company (at the Company’s expense) all copies, other than permanent file copies then in such Holder’s possession, of the prospectus and, if applicable, prospectus supplement covering such Registrable Securities current at
the time of receipt of such notice. The total number of days that any such suspension may be in effect in any 180-day period shall not exceed 90 days; provided, however, that if there is existing or pending a Material Event that, in the good
faith judgment of the Board of Directors, would make use of the Shelf Registration Statement inappropriate or inadvisable at such time, the Company shall have the right to suspend such registration during the 6-month period following Closing until,
in the good faith judgment of the Board of Directors, public disclosure of such Material Event or the omission to disclose such Material Event would not be prejudicial or contrary to the interests of the Company. 

(e) Termination of Registration Rights. A Holder’s registration rights as to any securities held by such Holder (and its
Affiliates, partners, members and former members) shall not be available unless such securities are Registrable Securities. 

(f) Furnishing Information. 

(1) Neither the Investors nor any Holder shall use any free writing prospectus (as defined in Rule 405) in connection with
the sale of Registrable Securities without the prior written consent of the Company. 
 (2) It shall be a
condition precedent to the obligations of the Company to take any action pursuant to Section 4.9(c) that the Investors and/or the selling Holders and the underwriters, if any, shall furnish to the Company such information regarding themselves,
the Registrable Securities held by them and the intended method of disposition of such securities as shall be required to effect the registered offering of their Registrable Securities. 

 

 -61- 

 (g) Indemnification. 

(1) The Company agrees to indemnify each Holder and, if a Holder is a person other than an individual, such Holder’s
officers, directors, employees, agents, representatives and Affiliates, and each Person, if any, that controls a Holder within the meaning of the Securities Act (each, an “Indemnitee”), against any and all Losses, joint or several,
arising out of or based upon any untrue statement or alleged untrue statement of material fact contained in any registration statement, including any preliminary prospectus or final prospectus contained therein or any amendments or supplements
thereto or any documents incorporated therein by reference or contained in any free writing prospectus (as such term is defined in Rule 405) prepared by the Company or authorized by it in writing for use by such Holder (or any amendment or
supplement thereto); or any omission to state therein a material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances under which they were made, not misleading; provided that the
Company shall not be liable to such Indemnitee in any such case to the extent that any such loss, claim, damage, liability (or action or proceeding in respect thereof) or expense arises out of or is based upon (i) an untrue statement or
omission made in such registration statement, including any such preliminary prospectus or final prospectus contained therein or any such amendments or supplements thereto or contained in any free writing prospectus (as such term is defined in Rule
405) prepared by the Company or authorized by it in writing for use by such Holder (or any amendment or supplement thereto), in reliance upon and in conformity with information regarding such Indemnitee or its plan of distribution or ownership
interests which was furnished in writing to the Company by such Indemnitee for use in connection with such registration statement, including any such preliminary prospectus or final prospectus contained therein or any such amendments or supplements
thereto, or (ii) offers or sales effected by or on behalf such Indemnitee “by means of” (as defined in Rule 159A) a “free writing prospectus” (as defined in Rule 405) that was not authorized in writing by the Company.

 (2) If the indemnification provided for in Section 4.9(g)(1) is unavailable to an Indemnitee with respect
to any Losses or is insufficient to hold the Indemnitee harmless as contemplated therein, then the Company, in lieu of indemnifying such Indemnitee, shall contribute to the amount paid or payable by such Indemnitee as a result of such Losses in such
proportion as is appropriate to reflect the relative fault of the Indemnitee, on the one hand, and the Company, on the other hand, in connection with the statements or omissions which resulted in such Losses as well as any other relevant equitable
considerations. The relative fault of the Company, on the one hand, and of the Indemnitee, on the other 
  

 -62- 

 
hand, shall be determined by reference to, among other factors, whether the untrue statement of a material fact or omission to state a material fact relates to information supplied by the Company
or by the Indemnitee and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission; the Company and each Holder agree that it would not be just and equitable if contribution
pursuant to this Section 4.9(g)(2) were determined by pro rata allocation or by any other method of allocation that does not take account of the equitable considerations referred to in Section 4.9(g)(1). No Indemnitee guilty of
fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from the Company if the Company was not guilty of such fraudulent misrepresentation. 

(h) Assignment of Registration Rights. The rights of the Investors to registration of Registrable Securities pursuant to
Section 4.9(a) may be assigned by the Investors to a transferee or assignee of Registrable Securities to which (i) there is transferred to such transferee no less than $5,000,000 in Registrable Securities and (ii) such Transfer is
permitted under the terms hereof; provided, however, that the transferor shall, within ten days after such transfer, furnish to the Company written notice of the name and address of such transferee or assignee and the number and type
of Registrable Securities that are being assigned. 
 (i) Holdback. With respect to any underwritten offering of
Registrable Securities by the Investors or other Holders pursuant to this Section 4.9, the Company agrees not to effect (other than pursuant to such registration or pursuant to a Special Registration) any public sale or distribution, or to file
any Shelf Registration Statement (other than such registration or a Special Registration) covering any of its equity securities, or any securities convertible into or exchangeable or exercisable for such securities, during the period not to exceed
ten days prior and 60 days following the effective date of such offering or such longer period up to 90 days as may be requested by the managing underwriter. The Company also agrees to cause each of its directors and senior executive officers to
execute and deliver customary lockup agreements in such form and for such time period up to 90 days as may be requested by the managing underwriter. “Special Registration” means the registration of (i) equity securities and/or
options or other rights in respect thereof solely registered on Form S-4 or Form S-8 (or successor form) or (ii) shares of equity securities and/or options or other rights in respect thereof to be offered to directors, members of management,
employees, consultants, customers, lenders or vendors of the Company or Company Subsidiaries or in connection with dividend reinvestment plans. 

(j) Rule 144; Rule 144A Reporting. With a view to making available to the Investors and Holders the benefits of certain
rules and regulations of the SEC which may permit the sale of the Registrable Securities to the public without registration, the Company agrees to use its reasonable best efforts to: 

 

 -63- 

 (1) make and keep public information available, as those terms are
understood and defined in Rule 144(c)(1) or any similar or analogous rule promulgated under the Securities Act, at all times after the effective date of this Agreement; 

(2) so long as the Investors or a Holder owns any Registrable Securities, furnish to the Investors or such Holder
forthwith upon request: (x) a written statement by the Company as to its compliance with the reporting requirements of Rule 144 under the Securities Act, and of the Exchange Act; (y) a copy of the most recent annual or quarterly
report of the Company; and (z) such other reports and documents as the Investors or Holder may reasonably request in availing itself of any rule or regulation of the SEC allowing it to sell any such securities without registration; and

 (3) to take such further action as any Holder may reasonably request, all to the extent required from time to
time to enable such Holder to sell Registrable Securities without registration under the Securities Act. 
 (k) As used in this
Section 4.9, the following terms shall have the following respective meanings: 
 (1)
“Holder” means the Investors and any other holder of Registrable Securities to whom the registration rights conferred by this Agreement have been transferred in compliance with Section 4.9(h) hereof. 

(2) “Holders’ Counsel” means one counsel for the selling Holders chosen by Holders holding a
majority interest in the Registrable Securities being registered. 
 (3) “Register,”
“registered” and “registration” shall refer to a registration effected by preparing and (a) filing a registration statement in compliance with the Securities Act and applicable rules and regulations thereunder,
and the declaration or ordering of effectiveness of such registration statement or (b) filing a prospectus and/or prospectus supplement in respect of an appropriate effective registration statement on Form S-3. 

(4) “Registrable Securities” means (A) all Common Stock held by the Investors from time to time,
(B) the shares of Common Stock issued or issuable pursuant to the conversion of the Series B Stock or exercise of the Warrant, (C) the Warrant, (D) to the extent that each of the Stockholder Proposals have not been approved within 120
days of the Closing Date, all Series B Stock held by the Investors from time to time, including any shares of Series B Stock issued or issuable pursuant to the exercise of the Warrant, in each case, only until such approval of the Stockholder
Proposals has been obtained, and (E) any equity securities 
  

 -64- 

 
issued or issuable directly or indirectly with respect to the securities referred to in any of the foregoing clauses by way of conversion, exercise or exchange thereof or stock dividend or stock
split or in connection with a combination of shares, recapitalization, reclassification, merger, amalgamation, arrangement, consolidation or other reorganization, provided that, once issued, such securities shall not be Registrable Securities
when (i) they are sold pursuant to an effective registration statement under the Securities Act, (ii) they may be sold pursuant to Rule 144 without limitation thereunder on volume or manner of sale, (iii) they shall have ceased
to be outstanding or (iv) they have been sold in a private transaction in which the transferor’s rights under this Agreement are not assigned to the transferee of the securities. No Registrable Securities may be registered under more than
one registration statement at one time. 
 (5) “Registration Expenses” means all expenses
incurred by the Company in effecting any registration pursuant to this Agreement (whether or not any registration or prospectus becomes effective or final) or otherwise complying with its obligations under this Section 4.9, including, without
limitation, all registration, filing and listing fees, printing expenses, fees and disbursements of counsel for the Company, blue sky fees and expenses, expenses incurred in connection with any “road show,” the reasonable fees and
disbursements of Holders’ Counsel (not to exceed $50,000), and expenses of the Company’s independent accountants in connection with any regular or special reviews or audits incident to or required by any such registration, but shall not
include Selling Expenses and the compensation of regular employees of the Company, which shall be paid in any event by the Company. 

(6) “Rule 144,” “Rule 158,” “Rule 159A,” “Rule 405”
and “Rule 415” mean, in each case, such rule promulgated under the Securities Act (or any successor provision), as the same shall be amended from time to time. 

(7) “Scheduled Black-out Period” means the period from and including the
15th day of the third month of a fiscal quarter of the
Company to and including the business day after the day on which the Company publicly releases its earnings for such fiscal quarter. 

(8) “Selling Expenses” means all discounts, selling commissions and stock transfer taxes applicable to
the sale of Registrable Securities and fees and disbursements of counsel for any Holder (other than the fees and disbursements of Holders’ Counsel included in Registration Expenses). 

 

 -65- 

 (l) At any time, any holder of Securities (including any Holder) may elect to forfeit its
rights set forth in this Section 4.9 from that date forward; provided, that a Holder forfeiting such rights shall nonetheless be entitled to participate under Sections 4.9(a)(4)-(6) in any Pending Underwritten Offering to the same
extent that such Holder would have been entitled to if the holder had not withdrawn; and provided, further, that no such forfeiture shall terminate a Holder’s rights or obligations under Section 4.9(f) with respect to any
prior registration or Pending Underwritten Offering. “Pending Underwritten Offering” means, with respect to any Holder forfeiting its rights pursuant to this Section 4.9(l), any underwritten offering of Registrable Securities
in which such Holder has advised the Company of its intent to register its Registrable Securities either pursuant to Section 4.9(a)(2) or 4.9(a)(4) prior to the date of such Holder’s forfeiture. 

4.10 Articles of Amendment. In connection with the Closing and subject to the Par Value Change, the Company shall file the Series
B Stock Articles of Amendment for the Series B Stock in the State of Washington, and such Series B Stock Articles of Amendment shall continue to be in full force and effect as of the Closing Date. 

4.11 Voting. Notwithstanding anything to the contrary in this Agreement or any Transaction Document, the Investors together with
their Affiliates shall not have the ability to exercise any voting rights of any Securities in excess of 24.9% of the total outstanding Voting Securities of the Company. 

4.12 Additional Regulatory Matters. So long as the Investors have a Qualifying Ownership Interest: 

(a) each of the Company and the Investors agree to cooperate and use its reasonable best efforts to communicate with each other with
respect to their respective purchases of equity capital securities of the Company with the objective, among other things, that Company repurchases not cause the Investors or their Affiliates to be deemed to become, or “control”, a
“bank holding company” with respect to the Company and its Affiliates within the meaning of the BHC Act, including the rules and regulations promulgated thereunder (or any successor provision); 

(b) the Company shall not take any action, (including, any redemption, repurchase or recapitalization of Common Stock, of securities or
rights, options, or warrants to purchase Common Stock, or securities of any type whatsoever that are, or may become, convertible into or exchangeable into or exercisable for Common Stock in each case, where the Investors are not given the right to
participate in such redemption, repurchase or recapitalization to the extent of the Investors’ pro rata proportion) that, based on the advice of legal, could cause the Investors or any of their Affiliates to be deemed to become, or
“control”, a “bank holding company” with respect to the Company and its Affiliates within the meaning of the BHC Act, including the rules and regulations promulgated thereunder (or any successor provision); provided,
however, that the Company shall not be deemed to have violated this Section 4.12(b) if it has given the 
  

 -66- 

 
Investors the opportunity to participate in such redemption, recapitalization or repurchase to the extent the Investors’ pro rata proportion and the Investors fail to so participate;
and 
 (c) the Investors shall not take, permit or allow any action that would cause any Company Subsidiary to become a
“commonly controlled insured depository institution” (as that term is defined for purposes of 12 U.S.C. §1815(e), as may be amended or supplemented from time to time, and any successor thereto) with respect to any institution that is
not a direct or indirect Company Subsidiary. 
 In the event that either party hereto, as applicable, breaches its obligations under this
Section 4.12 or believes that it is reasonably likely to breach such obligations, it shall immediately notify the other party and shall cooperate in good faith with such other party to modify an ownership or other arrangements or take any other
action, in each case, as is necessary to cure or avoid such breach. 
 4.13 Most Favored Nation. The Company shall not
offer any investors in the Other Private Placements, or any other capital raising transaction occurring at the same time as the transactions contemplated by this Agreement terms more favorable, in form or substance, than those offered in connection
with the Investment, unless the Investors are also provided with such terms. 
 4.14 No Change in Control. The Company
shall and shall cause the Company Subsidiaries to take all actions necessary to ensure that none of the transactions contemplated by this Agreement, the Other Private Placements, the TARP Exchange and a TruPS Exchange, if any, individually or in the
aggregate, shall give rise to a change in control under, or result in the breach or the violation of, or the acceleration of any right under, or result in any additional rights, or the triggering of any antidilution adjustment under the Stock Plans,
the employment agreements with J. Gregory Seibly, Daniel Byrne, Ezra Eckhardt, Larry Conley, Carol Mangan, Deborah Meekins, Tom Colosimo, Don Wood, Kade Peterson, Cindy Parker, David Herbison and Brian Read (collectively, the “Employment
Agreements”) or any other contract or agreement to which the Company or any Company Subsidiary is a party, including without limitation having any such contracts or agreements waived in writing or amended prior to Closing. 

4.15 Listing Authorization. The Company shall use its reasonable best efforts to cause (a) promptly following the approval of
all of the Stockholder Proposals, all of the Common Shares of the Company then outstanding and (b) promptly following the effectiveness of a Shelf Registration Statement filed with the SEC in accordance with Section 4.9 with respect to the
Warrant and the Series B Shares to be acquired in the Investment, the Warrant and such Series B Shares, in each case (a) and (b), to have been authorized for listing on the Nasdaq National Market (“NASDAQ”) or such other market
on which the Common Stock is then listed or quoted subject to official notice of issuance. 
 4.16 Continued Listing
Authorization. The Company shall take all steps necessary to prevent the Common Shares from being delisted from the NASDAQ, 

 

 -67- 

 
including, effecting a reverse stock split of the Common Stock, if necessary, to comply with NASDAQ Listing Rule 5450(a)(1). 

4.17 Other Private Placements. The Company shall provide the Investors with copies of any and all written documents the Company or
its representatives prepare for the purposes of the Other Private Placements, including the offering memorandum, and shall cooperate with the Investors to incorporate the Investors’ reasonable comments to such documents provided on a timely
basis prior to furnishing such documents to the potential participants in such Other Private Placements. 
 4.18 Certain
Other Transactions. 
 (a) Notwithstanding anything in this Agreement to the contrary, the Company shall not directly or
indirectly effect or cause to be effected any transaction with a third party that would reasonably be expected to result in a Change in Control unless such third party shall have provided prior assurance in writing to the Investors (in a form that
is reasonably satisfactory to the Investors) that the terms of this Agreement shall be fully performed (i) by the Company or (ii) by such third party if it is the successor of the Company or if the Company is its direct or indirect
subsidiary. For the avoidance of doubt, it is understood and agreed that, in the event that a Change in Control occurs on or prior to the Closing, the Investors shall maintain the right under this Agreement to acquire, pursuant to the terms and
conditions of this Agreement, the Securities (or such shares of stock or other securities or property (including cash) into which the Securities may have become exchangeable as a result of such Change in Control), as if the Closing had occurred
immediately prior to such Change in Control. 
 (b) In the event that, at or prior to the Closing, (i) the number of shares
of Common Stock or securities convertible or exchangeable into or exercisable for shares of Common Stock issued and outstanding is changed as a result of any reclassification, stock split (including reverse split), stock dividend or distribution
(including any dividend or distribution of securities convertible or exchangeable into or exercisable for shares of Common Stock), merger, tender or exchange offer or other similar transaction, (ii) the Company fixes a record date that is at or
prior to the Closing Date for the payment of any non-stock dividend or distribution on the Common Stock other than any Ordinary Cash Dividends (as defined in the Warrant), then at the Investors’ option, which may be exercised in the
Investors’ sole discretion, the number of shares of Common Stock and Series B Stock to be issued to the Investors at the Closing under this Agreement shall be equitably adjusted and/or the shares of Common Stock and Series B Stock to be issued
to the Investors at the Closing under this Agreement shall be equitably substituted with shares of other stock or securities or property (including cash), in each case, to provide the Investors with substantially the same economic benefit from this
Agreement as the Investors had prior to the applicable transaction. Notwithstanding anything in this Agreement to the contrary, in no event shall the Purchase Price or any component thereof be changed by the foregoing. 

 

 -68- 

 (c) In the event that, at or prior to the Closing, there occurs any distribution, issuance
or other transaction that would result in any adjustment or give rise to any right under Section 13 of the Warrant if the applicable transaction were to occur after the Closing, then at the Investors’ option, which may be exercised in the
Investors’ sole discretion, the form of the Warrant shall be amended, automatically and without action on the part of the parties to this Agreement, to reflect any adjustment to or right in respect of (x) the Exercise Price (as defined in
the Warrant) and (y) the amount and nature of shares of stock or other securities or property (including cash) that a warrantholder would receive upon the exercise of the Warrant, in each case, that would be effected or created in accordance
with Section 13 of the Warrant as if the Warrant had been issued to the Investors on the date of this Agreement and were in effect at the time of the applicable transaction. In connection with such amendment, all references to the Warrant in
this Agreement shall be conformed, automatically and without action on the part of the parties to this Agreement; provided, however, that notwithstanding anything in this Agreement to the contrary, in no event shall the Purchase Price
or any component thereof be changed by the foregoing. 
 (d) In the event that, at or prior to the Closing, there occurs any
distribution, issuance or other transaction that would result in any adjustment or give rise to any right under 7 of the Series B Stock Articles of Amendment if the applicable transaction were to occur after the Closing, then at the Investors’
option, which may be exercised in the Investors’ sole discretion, the form of the Series B Stock Articles of Amendment shall be amended, automatically and without action on the part of the parties to this Agreement, to reflect any adjustment to
or right in respect of (x) the Conversion Rate (as defined in the Series B Stock Articles of Amendment) and (y) the amount and nature of shares of stock or other securities or property (including cash) that a holder of Series B Preferred
Stock would receive upon the conversion of the Series B Stock Articles of Amendment, in each case, that would be effected or created in accordance with Section 7 of the Series B Stock Articles of Amendment as if the Series B Stock Articles of
Amendment had been issued to the Investors on the date of this Agreement and were in effect at the time of the applicable transaction. In connection with such amendment, all references to the Series B Stock Articles of Amendment in this Agreement
shall be conformed, automatically and without action on the part of the parties to this Agreement; provided, however, that notwithstanding anything in this Agreement to the contrary, in no event shall the Purchase Price or any
component thereof be changed by the foregoing. 
 (e) Until the first day of a taxable year of the Company to which the Board of
Directors determines that no Tax Benefit of the Company, or any direct or indirect subsidiary thereof, may be carried forward, the Company shall not take any action with respect to its stock or any “options” (within the meaning of
Section 1.382-4(d) of the Treasury Regulations) to acquire its stock following the Closing, unless the Company shall have first received an unqualified opinion (based on reasonable assumptions and factual representations) of nationally
recognized tax counsel or a private letter ruling from the Internal Revenue Service, in either case to the effect that such 
  

 -69- 

 
action would not cause an “ownership change” of the Company (within the meaning of Section 382(g) of the Code and applicable Treasury Regulations), taking into account the maximum
reasonably expected effect of the exercise of any outstanding “options” (as defined above). 
 (f) Notwithstanding
anything in the foregoing, the provisions of this Section 4.18 shall not be triggered by (i) the transactions contemplated by the Other Private Placements, (ii) the transactions contemplated by the TARP Exchange, (iii) any
issuances of shares of Company’s Series E Participating Cumulative Preferred Stock or Common Stock under the terms of the Agreed Plan (including upon exercise of Rights (as defined in the Agreed Plan) issued pursuant thereto), or (iv) any
issuances of options, restricted stock units or other equity-based awards granted to newly-appointed directors, employees or consultants of the Company at or around the same time as the Investment, the Other Private Placements and the TARP Exchange,
or the issuance of Common Stock to such persons, including upon exercise of any such options (not to exceed 2.5% of the capital stock of the Company on a fully-diluted basis). 

4.19 Transfer Restrictions. The Investors shall comply with the transfer restrictions set forth in the Charter Amendment Proposal
as if the Charter Amendment Proposal had been approved and effective as of the Closing Date (until such time as the Charter Amendment Proposal actually is approved and effective). Each subscription agreement for the purchase of Series D Shares
pursuant to the Other Private Placements shall require each purchaser pursuant thereto to comply with the transfer restrictions set forth in the Charter Amendment Proposal as if Charter Amendment Proposal had been approved and effective as of the
Closing Date (until such time as the Charter Amendment Proposal actually is approved and effective). 
 ARTICLE V

 Termination 

5.1 Termination. This Agreement shall be terminated prior to the Closing: 

(a) by mutual written agreement of the Company and the Investors; 

(b) by the Company or the Investors, upon written notice to the other parties, in the event that the Closing does not occur on or before
September 1, 2010 (the “Transaction Deadline”); provided, however, that the right to terminate this Agreement pursuant to this Section 5.1(b) shall not be available to any party whose failure to fulfill any
obligation under this Agreement shall have been the cause of, or shall have resulted in, the failure of the Closing to occur on or prior to such date; 
  

 -70- 

 (c) by the Company or the Investors, upon written notice to the other parties, in the event
that any Governmental Entity shall have issued any order, decree or injunction or taken any other action restraining, enjoining or prohibiting any of the transactions contemplated by this Agreement, and such order, decree, injunction or other action
shall have become final and nonappealable; 
 (d) by the Investors, if the Investors or any of their Affiliates receive written
notice from or is otherwise advised by the Federal Reserve that the Federal Reserve shall not grant (or intends to rescind or revoke if previously granted) the written confirmation described in Section 1.2(c)(2)(xii); or 

(e) by the Investors, if any of the conditions to Closing set forth in Section 1.2(c)(2) are not capable of being satisfied on or
before the Transaction Deadline. 
 5.2 Effects of Termination. In the event of any termination of this Agreement as
provided in Section 5.1, this Agreement (other than Section 3.2, Section 3.3(b) (except, in respect of any party, in connection with litigation against it by the other party or its Affiliates), Section 4.7, this Section 5.2
and Article VI (excluding Section 6.14), which shall remain in full force and effect) shall forthwith become wholly void and of no further force and effect; provided, that (i) nothing herein shall relieve any party from liability
for willful breach of this Agreement and (ii) in no event shall the Company be obligated to reimburse any Transaction Expenses in excess of the amounts provided for in Section 3.2. 

ARTICLE VI 

Miscellaneous 

6.1 Survival. Each of the representations and warranties set forth in this Agreement shall survive the Closing under this
Agreement but only for a period of fifteen months following the Closing Date (or until final resolution of any claim or action arising from the breach of any such representation and warranty, if notice of such breach was provided prior to the end of
such period) and thereafter shall expire and have no further force and effect, including in respect of Section 4.7; provided, that the representations and warranties in Sections 2.2(a), 2.2(b), 2.2(c), 2.2(d), 2.3(a) and 2.3(b)
shall survive indefinitely and the representations and warranties in Section 2.2(i) shall survive until 60 days after the expiration of the applicable statutory periods of limitations. Except as otherwise provided herein, all covenants and
agreements contained herein shall survive for the duration of any statutes of limitations applicable thereto or until, by their respective terms, they are no longer operative. 

6.2 Amendment. No amendment or waiver of this Agreement shall be effective with respect to any party unless made in writing and
signed by an officer of a duly authorized representative of such party. 
  

 -71- 

 6.3 Waivers. No failure or delay by any party in exercising any right, power or
privilege hereunder shall operate as a waiver thereof nor shall any single or partial exercise thereof preclude any other or further exercise thereof or the exercise of any other right, power or privilege. The conditions to each party’s
obligation to consummate the Closing are for the sole benefit of such party and may be waived by such party in whole or in part to the extent permitted by applicable law. No waiver of any party to this Agreement shall be effective unless it is in a
writing signed by a duly authorized officer of the waiving party that makes express reference to the provision or provisions subject to such waiver. 

6.4 Counterparts and Facsimile. For the convenience of the parties hereto, this Agreement may be executed in any number of
separate counterparts, each such counterpart being deemed to be an original instrument, and all such counterparts shall together constitute the same agreement. Executed signature pages to this Agreement may be delivered by facsimile and such
facsimiles shall be deemed as sufficient as if actual signature pages had been delivered. 
 6.5 Governing Law. This
Agreement shall be governed by and construed in accordance with the laws of the State of New York applicable to contracts made and to be performed entirely within such State. The parties hereby irrevocably and unconditionally consent to submit
to the exclusive jurisdiction of the state and federal courts located in the State of New York for any actions, suits or proceedings arising out of or relating to this Agreement and the transactions contemplated hereby. 

6.6 WAIVER OF JURY TRIAL. EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY WAIVES ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL
PROCEEDING ARISING OUT OF OR RELATED TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY. 
 6.7 Notices. Any
notice, request, instruction or other document to be given hereunder by any party to the other shall be in writing and shall be deemed to have been duly given (a) on the date of delivery if delivered personally or by telecopy or facsimile, upon
confirmation of receipt, (b) on the first business day following the date of dispatch if delivered by a recognized next-day courier service, or (c) on the third business day following the date of mailing if delivered by registered or
certified mail, return receipt requested, postage prepaid. All notices hereunder shall be delivered as set forth below, or pursuant to such other instructions as may be designated in writing by the party to receive such notice. 

(1) If to the Investors: 
  

 -72- 

 C/o Thomas H. Lee Partners, L.P. 

100 Federal Street,
35th Floor 

Boston, MA 02110 

Attn: Thomas M. Hagerty 

Facsimile: (617) 227-3514 

with a copy to (which copy alone shall not constitute notice): 

Weil, Gotshal & Manges LLP 

100 Federal Street,
34th Floor 

Boston, MA 02110 

Attn: James Westra, Esq. and Marilyn French, Esq. 

Facsimile: (617) 772-8333 

(2) If to the Company: 

Sterling Financial Corporation 

111 North Wall Street 

Spokane, WA 99201 

Attn: J. Gregory Seibly 

Facsimile: (509) 358-6191 

with a copy to (which copy alone shall not constitute notice): 

Davis Polk & Wardwell LLP 

450 Lexington Avenue 

New York, New York 10017 

Attn: John L. Douglas 

Facsimile: (212) 701-5145 

and 

Witherspoon Kelley 

422 W. Riverside Avenue, Suite 1100 

Spokane, WA 99201 

Attn: Andrew J. Schultheis 

Facsimile: (509) 458-2728 

6.8 Entire Agreement, Etc. (a) This Agreement (including the Exhibits and Disclosure Schedules hereto) and the Transaction
Documents constitute the entire agreement, and supersede all other prior agreements, understandings, representations and warranties, both written and oral, between the parties, with respect to the subject matter hereof; (b) this Agreement shall
not be assignable by operation of law or otherwise (any attempted assignment in contravention hereof being null and void), except that the Investors shall be permitted to assign any or all of their respective rights or obligations hereunder to
(i) any Affiliate entity, but only if such Affiliate agrees in 
  

 -73- 

 
writing to undertake such assigned obligations of the assigning Investor hereunder for the benefit of the Company, with a copy thereof to be furnished to the Company (any such transferee shall be
included in the term “Investors”); provided, further, that no such assignment shall relieve the Investors of any of their respective obligations under this Agreement and (ii) as provided in Section 4.9, and
(c) all Securities held by an Investor and its Affiliates shall be aggregated together for purposes of determining the availability of rights and obligations under this Agreement, including, without limitations, in Sections 1.1, 3.3, 4.1, 4.3,
4.4 and 4.11. The Investors may allocate among the Investors and their Affiliates the ability to exercise any rights under this Agreement in any manner that the Investors see fit. For the avoidance of doubt, the confidentiality agreement, dated as
of February 12, 2010, by and between the Company and Thomas H. Lee Partners, L.P. shall be void and supplanted by the terms of this Agreement.  

6.9 Other Definitions. Wherever required by the context of this Agreement, the singular shall include the plural and vice versa,
and the masculine gender shall include the feminine and neuter genders and vice versa, and references to any agreement, document or instrument shall be deemed to refer to such agreement, document or instrument as amended, supplemented or modified
from time to time. All article, section, paragraph or clause references not attributed to a particular document shall be references to such parts of this Agreement, and all exhibit, annex and schedule references not attributed to a particular
document shall be references to such exhibits, annexes and schedules to this Agreement. When used herein: 
 (1)
the term “subsidiary” means those corporations, banks, savings banks, associations and other persons of which such person owns or controls 51% or more of the outstanding equity securities either directly or indirectly through an
unbroken chain of entities as to each of which 51% or more of the outstanding equity securities is owned directly or indirectly by its parent; provided, however, that there shall not be included any such entity to the extent that the
equity securities of such entity were acquired in satisfaction of a debt previously contracted in good faith or are owned or controlled in a bona fide fiduciary capacity; 

(2) the term “Affiliate” means, with respect to any person, any person directly or indirectly
Controlling, Controlled by or under Common Control with, such other person. 
 (3) “Control”
(including, with correlative meanings, the terms “Controlling,” “Controlled by” and “under Common Control with”), when used with respect to any person, means the possession, directly or indirectly,
of the power to cause the direction of management and/or policies of such person, whether through the ownership of voting securities by contract or otherwise; 

(4) the word “or” is not exclusive; 

 

 -74- 

 (5) the words “including,” “includes,”
“included” and “include” are deemed to be followed by the words “without limitation”; 

(6) the terms “herein,” “hereof” and “hereunder” and other words of
similar import refer to this Agreement as a whole and not to any particular section, paragraph or subdivision; 

(7) “business day” means any day except Saturday, Sunday and any day which shall be a legal holiday or a
day on which banking institutions in the State of New York generally are authorized or required by law or other governmental actions to close; 

(8) “person” has the meaning given to it in Section 3(a)(9) of the Exchange Act and as used in
Sections 13(d)(3) and 14(d)(2) of the Exchange Act; 
 (9) “Beneficially Own,”
“Beneficial Owner” and “Beneficial Ownership” are defined in Rules 13d-3 and 13d-5 of the Exchange Act; and 

(10) “to the knowledge of the Company” or “Company’s knowledge” means the actual
knowledge after due inquiry of the officers of the Company listed on Schedule 6.9(10). 
 (11)
“Change in Control” means, with respect to the Company, the occurrence of any one of the following events: 

(A) individuals who, on the date of this Agreement, constitute the Board of Directors (the “Incumbent
Directors”) cease for any reason to constitute at least a majority of the Board of Directors; provided that any person becoming a director subsequent to the date of this Agreement whose election or nomination for election was
approved by a vote of at least two-thirds of the Incumbent Directors then on the Board of Directors (either by a specific vote or by approval of the proxy statement of the relevant party in which such person is named as a nominee for director,
without written objection to such nomination) shall be an Incumbent Director (except that no individuals who were not directors at the time any agreement or understanding with respect to any Business Combination or contested election is reached
shall be treated as Incumbent Directors for the purposes of clause (3) below with respect to such Business Combination or this paragraph in the case of a contested election); provided, further, that the Board Representative will
be treated as an Incumbent Director even if the person designated to be such Board Representative should change; 
  

 -75- 

 (B) any person is or becomes a Beneficial Owner (other than the Investors
and their Affiliates), directly or indirectly, of 20% of the aggregate voting power of the Voting Securities; provided, however, that the event described in this clause (2) will not be deemed a Change in Control by virtue of any
holdings or acquisitions: (i) by the Company or any of its Subsidiaries, (ii) by any employee benefit plan (or related trust) sponsored or maintained by the Company or any of its subsidiaries; provided that such holdings or
acquisitions by any such plan (other than any plan maintained under Section 401(k) of the Internal Revenue Code of 1986, as amended) do not exceed 20% of the then outstanding Voting Securities, (iii) by any underwriter temporarily holding
securities pursuant to an offering of such securities or (iv) pursuant to a Non-Qualifying Transaction; 

(C) the consummation of a merger, consolidation, statutory share exchange or similar transaction that requires adoption
by the Company’s stockholders (a “Business Combination”), unless immediately following such Business Combination: (x) more than 50% of the total voting power of the corporation resulting from such Business Combination (the
“Surviving Corporation”), or, if applicable, the ultimate parent corporation that directly or indirectly has Beneficial Ownership of 100% of the voting securities eligible to elect directors of the Surviving Corporation (the
“Parent Corporation”), is represented by Voting Securities that were outstanding immediately before such Business Combination (or, if applicable, is represented by shares into which such Voting Securities were converted pursuant to
such Business Combination), and (y) at least a majority of the members of the board of directors of the Parent Corporation (or, if there is no Parent Corporation, the Surviving Corporation) following the consummation of the Business Combination
were Incumbent Directors at the time the Company’s Board of Directors approved the execution of the initial agreement providing for such Business Combination (any Business Combination which satisfies all of the criteria specified in
(x) and (y) above will be deemed a “Non-Qualifying Transaction”); or 
 (D) the
stockholders of the Company approve a plan of liquidation or dissolution of the Company or a sale of all or substantially all of the Company’s assets. 

(12) “Tax Benefit” means net operating loss carryovers, capital loss carryovers, general business credit
carryovers, alternative minimum tax credit carryovers and foreign tax credit carryovers, as well as any potential loss or 
  

 -76- 

 
deduction attributable to an existing “net unrealized built-in loss” within the meaning of Section 382 of the Code. 

(13) “Treasury Regulations” means as the United States Treasury Regulations promulgated under the Code,
as in effect from time to time. 
 6.10 Captions. The article, section, paragraph and clause captions herein are for
convenience of reference only, do not constitute part of this Agreement and shall not be deemed to limit or otherwise affect any of the provisions hereof. 

6.11 Severability. If any provision of this Agreement or the application thereof to any person (including, the officers and
directors of each Investor and the Company) or circumstance is determined by a court of competent jurisdiction to be invalid, void or unenforceable, the remaining provisions hereof, or the application of such provision to persons or circumstances
other than those as to which it has been held invalid or unenforceable, shall remain in full force and effect and shall in no way be affected, impaired or invalidated thereby, so long as the economic or legal substance of the transactions
contemplated hereby is not affected in any manner materially adverse to any party. Upon such determination, the parties shall negotiate in good faith in an effort to agree upon a suitable and equitable substitute provision to effect the original
intent of the parties. 
 6.12 No Third Party Beneficiaries. Nothing contained in this Agreement, expressed or implied,
is intended to confer upon any person other than the parties hereto, any benefit right or remedies, except that the provisions of Sections 4.7 and 4.9 shall inure to the benefit of the persons referred to in those Sections. 

6.13 Time of Essence. Time is of the essence in the performance of each and every term of this Agreement. 

6.14 Certain Adjustments. If the representations and warranties set forth in Section 2.2(c) shall not be true and correct as
of the Closing Date, the number of shares of Common Stock, the number of shares of Series B Stock, and the number of shares of Common Stock subject to the Warrant (and the exercise price of the Warrant) shall be, at the Investors’ option,
proportionately adjusted to provide the Investors the same economic effect as contemplated by this Agreement in the absence of such failure to be true and correct. 

6.15 Public Announcements. Subject to each party’s disclosure obligations imposed by law or regulation, (i) each of the
parties hereto shall cooperate with each other in the development and distribution of all news releases and other public information disclosures with respect to this Agreement and any of the transactions contemplated by this Agreement or the other
Transaction Documents, and (ii) no party hereto shall make any such news release or public disclosure without first consulting with the other party hereto and receiving its consent (which shall not be unreasonably withheld

  

 -77- 

 
or delayed), and each party shall coordinate with the other with respect to any such news release or public disclosure. 

6.16 Specific Performance. The parties agree that irreparable damage would occur in the event that any of the provisions of this
Agreement were not performed in accordance with their specific terms. It is accordingly agreed that the parties shall be entitled to seek specific performance of the terms hereof, this being in addition to any other remedies to which they are
entitled at law or equity. 
 6.17 No Recourse. This Agreement may only be enforced against the named parties hereto. All
claims or causes of action that may be based upon, arise out of or relate to this Agreement, or the negotiation, execution or performance of this Agreement may be made only against the entities that are expressly identified as parties hereto or that
are subject to the terms hereof, and no past, present or future director, officer, employee, incorporator, member, manager, partner, stockholder, Affiliate, agent, attorney or representative of Investors or any other party hereto (including any
person negotiating or executing this Agreement on behalf of a party hereto) shall have any liability or obligation with respect to this Agreement or with respect to any claim or cause of action, whether in tort, contract or otherwise, that may arise
out of or relate to this Agreement, or the negotiation, execution or performance of this Agreement and the transactions contemplated hereby and thereby. 

*    *    * 

 

 -78- 

 IN WITNESS WHEREOF, this Agreement has been duly executed and delivered by the duly
authorized officers of the parties hereto as of the date first herein above written. 
  

					
	STERLING FINANCIAL CORPORATION
		
	By:	 	 /s/ J. Gregory Seibly

		 	Name:	 	J. Gregory Seibly
		 	Title:	 	President and Chief Executive Officer

[Company Signature Page to Investment Agreement] 

			
	THOMAS H. LEE EQUITY FUND VI, L.P.
		
	By:	 	THL EQUITY ADVISORS VI, LLC,
		 	its general partner
	By:	 	THOMAS H. LEE PARTNERS, L.P.,
		 	its sole member
	By:	 	THOMAS H. LEE ADVISORS, LLC,
		 	its general partner
		
	By:	 	 /s/ Thomas Hagerty

		 	Name: Thomas Hagerty
		 	Title: Managing Director
	
	THOMAS H. LEE PARALLEL FUND VI, L.P.
		
	By:	 	THL EQUITY ADVISORS VI, LLC
		 	its general partner
	By:	 	THOMAS H. LEE PARTNERS, L.P.,
		 	its sole member
	By:	 	THOMAS H. LEE ADVISORS, LLC,
		 	its general partner
		
	By:	 	 /s/ Thomas Hagerty

		 	Name: Thomas Hagerty
		 	Title: Managing Director
	
	THOMAS H. LEE PARALLEL (DT) FUND VI, L.P.
		
	By:	 	THL EQUITY ADVISORS VI, LLC
		 	its general partner
	By:	 	THOMAS H. LEE PARTNERS, L.P.,
		 	its sole member
	By:	 	THOMAS H. LEE ADVISORS, LLC,
		 	its general partner
		
	By:	 	 /s/ Thomas Hagerty

		 	Name: Thomas Hagerty
		 	Title: Managing Director

[Investor Signature Page to Investment Agreement] 
  

 -80- 

 EXHIBIT A TO INVESTMENT AGREEMENT 

ARTICLES OF AMENDMENT 

TO THE 

RESTATED ARTICLES OF INCORPORATION 

OF 

STERLING FINANCIAL CORPORATION 

(CONVERTIBLE PARTICIPATING VOTING PREFERRED STOCK, SERIES B) 

Sterling Financial Corporation, a corporation organized and existing under the laws of Washington (the “Corporation”), in
accordance with the provisions of Chapter 23B.10 and Section 23B.06.020 of the Revised Code of Washington thereof, does hereby submit for filing these Articles of Amendment and does hereby certify: 

FIRST: The name of the corporation is Sterling Financial Corporation. 

SECOND: The board of directors of the Corporation (the “Board of Directors”) or an applicable committee of the Board of
Directors, in accordance with the restated articles of incorporation as amended and bylaws of the Corporation (collectively, the “Governing Documents”) and applicable law, adopted the following resolutions on
[                    ] (the “Resolution Date”) creating a series of convertible participating voting Preferred Stock of the Corporation
designated as “CONVERTIBLE PARTICIPATING VOTING PREFERRED STOCK, SERIES B.” 
 RESOLVED, that, pursuant to the
provisions of the Corporation’s restated articles of incorporation as amended, bylaws and applicable law, a series of convertible participating voting preferred stock (the “Series B Preferred Stock”), no par value per share, is hereby
created, and that the Board of Directors hereby fixes the voting and other powers, designations, preferences and relative, participating, optional and other special rights, and the qualifications, limitations and restrictions of the Series B
Preferred Stock. 
 RESOLVED FURTHER, that each share of Series B Preferred Stock shall rank equally in all respects and
shall be subject to the following provisions: 
 1. Number and Designation; Fractional Shares. [1,647,451] shares of the
authorized and unissued shares of preferred stock of the Corporation (the “Preferred Stock”) shall be designated as Series B Preferred Stock (the “Series B Preferred Stock”). The Series B Preferred Stock shall have no par value
per share. The Corporation may issue fractional interests in and/or fractional shares of Series B Preferred Stock. Each holder of a fractional interest in a share of Series B Preferred Stock shall be entitled, proportionately, to all the rights,
preferences and privileges of the Series B Preferred Stock. 

 2. Rank. The Series B Preferred Stock shall, with respect to dividend rights and
rights upon dissolution, liquidation or winding-up of the Corporation rank (i) senior to the Corporation’s common stock, no par value per share (the “Common Stock”), and to all other classes or series of equity securities of the
Corporation the terms of which expressly provide that such security ranks junior to the Series B Preferred Stock with respect to dividend rights, rights of redemption or rights upon liquidation, dissolution or winding-up of the Corporation (the
securities described in this clause (i), the “Junior Securities”) and (ii) on parity with any class or series of equity securities of the Corporation the terms of which do not expressly provide that such security shall rank either
senior or junior to the Series B Preferred Stock with respect to dividend rights, rights of redemption and rights upon liquidation, dissolution or winding-up of the Corporation, including the Corporation’s Series D Convertible Participating
Voting Preferred Stock (the “Series D Preferred Stock”) except that the Series B Preferred Stock shall rank senior to the Series D Preferred Stock in respect of its right to receive Additional Dividends (the securities described in this
clause (ii), the “Parity Securities”). The respective definitions of Junior Securities and Parity Securities shall also include any options, warrants and any other rights exercisable into, exchangeable for or convertible into any Junior
Securities or Parity Securities, as the case may be. 
 3. Dividends. 

(a) Holders of Series B Preferred Stock shall be entitled to receive, when, as and if declared by the Board of Directors or a duly
authorized committee of the Board of Directors, out of funds legally available therefor, (i) non-cumulative dividends and any other distributions, whether payable in cash, securities or any other form of property or assets in the amount
determined as set forth in Section 3(b) and (ii) Additional Dividends (as defined below) in the amount determined as set forth in Section 3(c). Holders of Series B Preferred Stock shall not be entitled to any dividends, whether
payable in cash, securities or other property, other than dividends (if any) declared and payable on Series B Preferred Stock as specified in this Section 3 (subject to the other provisions herein). 

(b) Subject to Section 3(a)(i), if the Board of Directors or a duly authorized committee of the Board of Directors declares and pays
a dividend in respect of Common Stock, then the Board of Directors or such duly authorized committee of the Board of Directors shall declare and pay to the holders of the Series B Preferred Stock, on the same dates on which such dividend is declared
or paid, as applicable, on the Common Stock, a dividend in an amount per share of Series B Preferred Stock (such amount, the “Deemed Conversion Dividend”) equal to the product of (x) the per share dividend declared and paid in respect
of each share of Common Stock and (y) the number of shares of Common Stock into which such share of Series B Preferred Stock is convertible at the then-current Conversion Rate. Any dividend or distribution payable on the Series B Preferred
Stock pursuant to this Section 3(b) shall be paid in the same form of consideration (whether cash, securities or any other form of property or assets, as the case may be) as the corresponding dividend or distribution on the Common Stock.

 (c) In the event (and only in the event) that the Shareholder Approvals have not been received within 120 days of the closing
of the various recapitalization transactions to occur at or around the Resolution Date (the “Approval Deadline”), then in addition to any dividends payable pursuant to Sections 3(a)(i) and 3(b), holders of Series B Preferred Stock shall

  

 A-2 

 
be entitled to receive cumulative cash dividends at a per annum rate of 15% on the stated amount of $75.00 per share of Series B Preferred Stock (the “Additional Dividend”). Additional
Dividends, if the Shareholder Approvals have not been received by the Approval Deadline, shall begin to accrue and be cumulative from the Approval Deadline. 

(d) Dividends payable pursuant to Section 3(b) shall be payable on the same date that dividends are payable to holders of shares of
Common Stock. Additional Dividends, if any, shall be payable quarterly in arrears on each Additional Dividend Payment Date, commencing with the first such Additional Dividend Payment Date to occur at least 30 calendar days after the Approval
Deadline. In the event that the Additional Dividend Payment Date would otherwise fall on a day that is not a business day, the dividend payment due on that date shall be postponed to the next day that is a business day and no additional dividend
shall accrue as a result of that postponement. No dividends shall be payable to holders of shares of Common Stock unless the full dividends contemplated by Sections 3(b) and (c) are paid at the same time in respect of the Series B Preferred
Stock. “Additional Dividend Payment Date” means January 15, April 15, July 15 and October 15 of each year. The period from and including any Additional Dividend Payment Date to, but excluding, the next
Additional Dividend Payment Date, is a “Dividend Period”; provided, that the initial Dividend Period shall be the period from and including the Approval Deadline, but excluding the next Additional Dividend Payment Date. 

(e) Additional Dividends that are payable pursuant to Section 3(a) shall be computed on the basis of a 360-day
year consisting of twelve 30-day months. The amount of Additional Dividends, if any, payable on any date prior to the end of a Dividend Period, and for the initial Dividend Period, shall be computed on the basis of a 360-day year consisting of
twelve 30-day months, and actual days elapsed over a 30-day month. Each dividend payable pursuant to this Section 3 shall be payable to holders of record as they appear in the records of the Corporation at the close of business on the same
record date, which, for dividends contemplated by Section 3(b), shall be the same day as the record date for the payment of the corresponding dividends to the holders of shares of Common Stock and, for dividends contemplated by
Section 3(c), shall be the 15th calendar day
immediately preceding such Additional Dividend Payment Date or such other record date fixed by the Corporation’s Board of Directors that is not more than 60 nor less than 10 days prior to such Additional Dividend Payment Date. Any such record
date shall be a record date whether or not such day is a business day. 
 (f) So long as any shares of the Series B Preferred
Stock are outstanding, (1) no dividend or distribution shall be declared or paid, or set apart for payment, on any Junior Securities and (2) no Junior Securities shall be, directly or indirectly, purchased, redeemed or otherwise acquired
by the Corporation or any of its subsidiaries, nor shall any funds be set apart for any such repurchase, redemption or other acquisition, through a sinking fund or otherwise, unless, in each case, the dividend to be due on the shares of Series B
Preferred Stock upon payment of such dividend, distribution, purchase, redemption or other acquisition is contemporaneously declared and paid in full (or has been declared and a sum sufficient for the payment thereof has been set aside for the
benefit of the holders of shares of Series B Preferred Stock on the applicable record date). The foregoing limitations shall not apply to (i) redemptions, purchases or other acquisitions of shares of Junior Securities in connection with any
benefit plan or other similar arrangement with or for the benefit of any one or more employees, officers, directors or consultants or in connection with a dividend reinvestment or 

 

 A-3 

 
shareholder stock purchase plan and (ii) any declaration of a dividend in connection with any shareholders’ rights plan, or the issuance of rights, stock or other property under any
shareholders’ rights plan, or the redemption or repurchase of rights pursuant thereto. 
 (g) So long as any shares of
Series B Preferred Stock remain outstanding, no dividends shall be declared or paid or set aside for payment on any Parity Securities for any period unless full dividends on all outstanding shares of Series B Preferred Stock for the then-current
dividend period have been paid in full or declared and a sum sufficient for the payment thereof set aside for all outstanding shares of Series B Preferred Stock. To the extent the Corporation declares dividends on the Series B Preferred Stock and on
any Parity Securities but does not make full payment of such declared dividends, the Corporation shall allocate the dividend payments on a pro rata basis among the holders of the shares of Series B Preferred Stock and the holders of any Parity
Securities then outstanding. For purposes of calculating the pro rata allocation of partial dividend payments, the Corporation shall allocate those payments so that the respective amounts of those payments bear the same ratio to each other as all
accrued and unpaid dividends per share on the Series B Preferred Stock and all Parity Securities bear to each other. No interest shall be payable in respect of any dividend payment on shares of Series B Preferred Stock that may be in arrears.

 (h) If a Mandatory Conversion Date is prior to the record date for the payment of any dividend on the Common Stock, the
holders of the shares of Series B Preferred Stock shall not have the right to receive any corresponding dividends on the Series B Preferred Stock. If a Mandatory Conversion Date is after the record date for any declared dividend and prior to the
payment date for that dividend, the holder of a share of Series B Preferred Stock shall receive that dividend on the relevant payment date if such holder was the holder of record on the record date for that dividend. This section (3)(h) shall
apply to dividends payable pursuant to both Section 3(b) and Section 3(c). 
 4. Liquidation Preference.

 (a) In the event of the liquidation, dissolution or winding up of the affairs of the Corporation, whether voluntary or
involuntary, holders of Series B Preferred Stock shall be entitled to receive for each share of Series B Preferred Stock, out of the Corporation’s assets or proceeds thereof (whether capital or surplus) available for distribution to the
Corporation’s Shareholders, subject to the rights of any of the Corporation’s creditors, before any distribution of such assets or proceeds is made to or set aside for the holders of Common Stock or any other stock ranking junior to the
Series B Preferred Stock as to such distribution, payment of $3.75 per share plus an amount equal to the sum of (x) declared but unpaid dividends and (y) accrued Additional Dividends, if any, in each case, to and including the date of
liquidation (the “Liquidation Preference”). 
 (b) If in any distribution described in Section 4(a), the
Corporation’s assets or proceeds thereof are not sufficient to pay in full the amounts payable with respect to all outstanding shares of Series B Preferred Stock and the corresponding amounts payable with respect to any other stock of the
Corporation ranking equally with the Series B Preferred Stock as to such distribution, then holders of the Series B Preferred Stock and the holders of such other stock shall share ratably (based on the relative Liquidation Preference of the Series B
Preferred 
  

 A-4 

 
Stock and such other stock) in any such distribution in proportion to the full respective distributions to which they are entitled. 

(c) For purposes of Section 4(a), the merger or consolidation of the Corporation with any other Person, including a merger or
consolidation in which the holders of the Series B Preferred Stock receive cash, securities or other property for their shares, or the sale, lease or exchange for cash, securities or other property of all or substantially all of the assets of the
Corporation, in each case shall not constitute a liquidation, dissolution or winding-up of the Corporation. 
 (d) If the amount
required under Section 4(a) has been paid in full to all holders of Series B Preferred Stock and the corresponding amounts payable with respect to any other stock of the Corporation ranking equally with the Series B Preferred Stock as to such
distribution have been paid in full, the holders of other of the Corporation’s stock shall be entitled to receive all remaining assets of the Corporation (or proceeds thereof) according to their respective rights and preferences;
provided, that if the amount of such assets or proceeds to be distributed with respect to a number of shares of the Corporation’s Common Stock equal to the then-current Conversion Rate (the “As-converted Liquidation Amount”)
exceeds $3.75 per share, then holders of Series B Preferred Stock shall be entitled to receive, for each share of Series B Preferred Stock, an additional amount (the “Liquidation Participation Amount”) out of such assets or proceeds such
that the As-converted Liquidation Amount equals the sum of the Liquidation Preference plus the Liquidation Participation Amount, after making appropriate adjustment such that the holders of Series B Preferred Stock, the Series D Preferred Stock and
any other Parity Securities receive the same amount on an as-converted basis as the holders of a number of shares of Common Stock equal to the then-current conversion rate applicable to each of the Series B Preferred Stock, the Series D Preferred
Stock and any other Parity Securities. 
 5. Redemption. The Series B Preferred Stock shall not be redeemable at the
Corporation’s option at any time or subject to repurchase at the option of the holders of the Series B Preferred Stock at any time. 

6. Conversion. 

(a) Subject to Section 6(d), effective as of the close of business on the first business day after the date on which the approval of
each of the Shareholder Proposals (such approval, the “Shareholder Approval”) has been obtained (such date, the “Mandatory Conversion Date”), each share of the Series B Preferred Stock shall automatically convert into shares of
Common Stock at a conversion rate, subject to adjustment pursuant to Section 7, of 375 shares of common stock for each share of Series B Preferred Stock (the “Conversion Rate”). “Shareholder Proposals” means a proposal to
amend the restated articles of incorporation, as amended, of the Corporation to increase the number of authorized shares of Common Stock to 10,000,000,000 or such larger number as the Board of Directors determines in its reasonable judgment is
necessary to comply with any obligations of the Corporation pursuant to any agreement entered into in connection with certain recapitalization transactions to occur at or around the Resolution Date. 

(b) Upon occurrence of the Mandatory Conversion Date, the Corporation shall provide the Shareholder Approval notice specified in
Section 11. 
  

 A-5 

 (c) Effective immediately prior to the close of business on the Mandatory Conversion Date,
dividends shall no longer be declared on any share of Series B Preferred Stock and such share of Series B Preferred Stock shall cease to be outstanding, in each case, subject to the right of the holder to receive any declared and unpaid dividends on
such share to the extent provided in Section 3(h) and any other payments to which such holder is otherwise entitled pursuant to this Section or Section 8(a). No allowance or adjustment to the Conversion Rate, except pursuant to
Section 7, shall be made in respect of dividends payable to holders of the Common Stock of record as of any date prior to the close of business on any Mandatory Conversion Date with respect to any share of Series B Preferred Stock. Prior to the
close of business on the Mandatory Conversion Date, shares of Common Stock or other securities issuable upon conversion of any share of Series B Preferred Stock shall not be deemed outstanding for any purpose, and, subject to the two immediately
preceding sentences, holders of Series B Preferred Stock shall have no rights with respect to the Common Stock or other securities issuable upon conversion (including voting rights and rights to receive any dividends or other distributions on the
Common Stock or other securities issuable upon conversion) by virtue of holding shares of Series B Preferred Stock. 

Notwithstanding anything to the contrary herein, a holder of Series B Preferred Stock shall be entitled to receive shares of Common Stock
upon any conversion of Series B Preferred Stock pursuant to this Section 6 to the extent (but only to the extent) that at such time such holder (i) does not own, and is not deemed for applicable bank regulatory purposes to own, securities
of the Corporation in excess of the Ownership Limit, or (ii) transfers such shares of Series B Preferred Stock in a Widely Dispersed Offering, upon which transfer such shares of Series B Preferred Stock shall be immediately convertible into
such shares of Common Stock by the transferee. If any delivery of shares of Common Stock owed to a holder upon conversion of Series B Preferred Stock is not made, in whole or in part, as a result of the foregoing limitations, the Corporation’s
obligation to make such delivery shall not be extinguished and, at the holders’ option, the Corporation shall (x) deliver such shares as promptly as practicable after any such converting holder gives notice to the Corporation that the
requirements of this Section 6(d) are met or (y) deliver shares of Non-Voting Stock in lieu of such shares of Common Stock concurrently upon the conversion of the Series B Preferred Stock. For the avoidance of doubt, these limitations
shall not limit the number of shares of Series B Preferred Stock the Corporation may cause to be converted, or otherwise constrain in any way the Corporation’s ability to exercise its right to cause Series B Preferred Stock to be converted,
pursuant to this Section 6. “Ownership Limit” means, at the time of determination, 24.9% of any class of voting securities of the Corporation outstanding at such time. Any calculation of the percentage ownership of a holder of Series
B Preferred Stock of the outstanding voting securities of the Corporation for purposes of this definition shall be made in accordance with 12 C.F.R. 225 et seq. “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 definition, “control” (including, with correlative meanings, the terms “controlled by” and “under common control
with”) when used with respect to any Person, means the possession, directly or indirectly, of the power to cause the direction of management or policies of such Person, whether through the ownership of voting securities, by contract or
otherwise. “Non-Voting Stock” means a class or series of the Corporation’s capital stock, which, in the Board of Directors’ reasonable judgment, has substantially the same economic terms as the Common Stock into which the Series
B Preferred Stock would otherwise be convertible into, except that such class or series shall not 
  

 A-6 

 
have any voting rights in the hands of the such holder (other than those permitted by 12 CFR 225.2(q)(2) or any successor provision) but would be convertible into an equivalent amount of Common
Stock by a holder thereof, other than the current holders and Affiliates thereof, who acquired such capital stock in a Widely Dispersed Offering. “Widely Dispersed Offering” means (i) a widespread public distribution, (b) a
transfer in which no transferee (or group of associated transferees) would receive more than 2% of any class of voting securities of the Corporation or (ii) a transfer to a transferee that would control more than 50% of the voting securities of
the Corporation without any transfer from the Investor. 
 (d) No fractional shares of Common Stock shall be issued to any
holder of Series B Preferred Stock upon conversion of the Series B Preferred Stock. In lieu of fractional shares otherwise issuable, holders of Series B Preferred Stock shall be entitled to receive an amount in cash equal to the fraction of a share
of Common Stock calculated on an aggregate basis in respect of the shares of Series B Preferred Stock converted by such holder multiplied by the Last Reported Sale Price of the Common Stock on the Mandatory Conversion Date. “Last Reported Sale
Price” of the Common Stock on any date shall mean the closing sale price per share (or if no closing sale price is reported, the average of the bid and ask prices or, if more than one in either case, the average of the average bid and the
average ask prices) on that date as reported in composite transactions for the principal U.S. securities exchange on which the Common Stock is traded. If the Common Stock is not listed for trading on a U.S. national or regional securities exchange
on the relevant date, the “Last Reported Sale Price” shall be the last quoted bid price for the Common Stock in the over-the-counter market on the relevant date as reported by Pink OTC Markets Inc. or a similar organization. If the Common
Stock is not so quoted, the “Last Reported Sale Price” shall be the average of the mid-point of the last bid and ask prices for the Common Stock on the relevant date from a nationally recognized investment banking firm (unaffiliated with
the Corporation) selected by the Corporation for this purpose. 
 (e) The Person or Persons entitled to receive the Common Stock
issuable upon conversion of the Series B Preferred Stock shall be treated for all purposes as the record holder(s) of such shares of Common Stock as of the close of business on the Mandatory Conversion Date. In the event that a holder of Series B
Preferred Stock shall not by written notice designate the name in which shares of Common Stock to be issued or paid upon conversion of shares of Series B Preferred Stock should be registered or paid or the manner in which such shares of Common Stock
should be delivered, the Corporation shall be entitled to register and deliver such shares of Common Stock, and make such payment, in the name of the holder (as of the close of business on the Mandatory Conversion Date) and in the manner shown on
the records of the Corporation. 
 (f) Shares of Series B Preferred Stock duly converted in accordance with this Section 6
or otherwise reacquired by the Corporation shall, upon the effectiveness of such conversion or reacquisition, resume the status of authorized and unissued shares of preferred stock of the Corporation, undesignated as to series and available for
future issuance, and all other rights of the holders of such shares of Series B Preferred Stock shall terminate, in each case, irrespective of whether the certificates of Series B Preferred Stock have been surrendered to the Transfer Agent in
accordance with Section 11 below. 
  

 A-7 

 (g) On the Mandatory Conversion Date with respect to any share of Series B Preferred Stock,
certificates representing shares of Common Stock shall be issued and delivered to the holder thereof or such holder’s designee upon presentation and surrender of the certificate evidencing the Series B Preferred Stock to the Corporation and, if
required, the furnishing of appropriate endorsements and transfer documents and the payment of all transfer and similar taxes. 

7. Anti-dilution Adjustments. The Conversion Rate shall be subject to adjustment, without duplication, under the following
circumstances: 
 (a) (i) The issuance of Common Stock as a dividend or distribution to all holders of Common Stock, in which
event the Conversion Rate shall be adjusted based on the following formula: 

CR1
 =
CR0 x
(OS1 /
OS0) 

where, 

CR0
 = the Conversion Rate in effect at the close of business on the Record Date 

CR1
 = the Conversion Rate in effect immediately after the Record Date 

OS0
 = the number of shares of Common Stock outstanding at the close of business on the Record Date prior to giving effect to such issuance 

OS1
 = the number of shares of Common Stock that would be outstanding immediately after, and solely as a result of, such issuance 

(ii) A subdivision or combination of Common Stock, in which event the Conversion Rate shall be adjusted based on the following formula:

CR1
 =
CR0 x
(OS1 /
OS0) 

where, 

CR0
 = the Conversion Rate in effect immediately prior to the effective date of such share subdivision or combination 

CR1
 = the Conversion Rate in effect immediately after the opening of business on the effective date of such share subdivision or combination 

OS0
 = the number of shares of Common Stock outstanding immediately prior to the effective date of such share subdivision or combination 

OS1
 = the number of shares of Common Stock that would be outstanding immediately after, and solely as a result of, such share subdivision or combination 

“Record Date” means, with respect to any dividend, distribution or other transaction or event in which the holders of the Common Stock have the
right to receive any cash, securities or other property or in which the Common Stock (or other applicable security) is exchanged for or converted into any combination of cash, securities or other property, the date fixed for determination of holders
of the Common Stock entitled to receive such cash, securities or other property (whether such date is fixed by the Board of Directors or by statute, contract or otherwise). 

 

 A-8 

 (b) The issuance to all holders of Common Stock of rights or warrants entitling them for a
period expiring 60 days or less from the date of issuance of such rights or warrants to purchase shares of Common Stock (or securities convertible into Common Stock) at less than (or having a conversion price per share less than) the Current Market
Price as of the Record Date, in which event the Conversion Rate shall be adjusted based on the following formula: 

CR1
 =
CR0 x
(OS0 + X) /
(OS0 + Y) 

where, 

CR0
 = the Conversion Rate in effect at the close of business on the Record Date 

CR1
 = the Conversion Rate in effect immediately after the Record Date 

OS0
 = the number of shares of Common Stock outstanding at the close of business on the Record Date 

X = the total number of shares of Common Stock issuable pursuant to such rights (or upon conversion of such securities)

 Y = the number of shares of Common Stock equal to the aggregate price payable to exercise such rights or
warrants divided by the Current Market Price on the date fixed for the determination of shareholders entitled to receive such rights or warrants 

However, the Conversion Rate shall be readjusted to the extent that any such rights or warrants are not exercised prior to their expiration.
“Current Market Price” of the Common Stock (or other relevant capital stock or equity interest) on any date of determination means the closing sale price or, if no closing sale price is reported, the last reported sale price of the shares
of the Common Stock (or other relevant capital stock or equity interest) on the NASDAQ National Market on such date. If the Common Stock (or other relevant capital stock or equity interest) is not traded on the NASDAQ National Market on any date of
determination, the Closing Price of the Common Stock (or other relevant capital stock or equity interest) on such date of determination means the closing sale price as reported in the composite transactions for the principal U.S. national or
regional securities exchange on which the Common Stock (or other relevant capital stock or equity interest) is so listed, or, if no closing sale price is reported, the last reported sale price on the principal U.S. national or regional securities
exchange on which the Common Stock (or other relevant capital stock or equity interest) is so listed, or if the Common Stock (or other relevant capital stock or equity interest) is not so listed on a U.S. national or regional securities exchange,
the last quoted bid price for the Common Stock (or other relevant capital stock or equity interest) in the over-the-counter market as reported by Pink Sheets LLC or similar organization, or, if that bid price is not available, the market price of
the Common Stock (or other relevant capital stock or equity interest) on that date as determined by a nationally recognized independent investment banking firm retained by the Corporation for this purpose. “Ex-Date”, when used with respect
to any issuance or distribution, means the first date on which the Common Stock or other securities trade without the right to receive the issuance or distribution giving rise to an adjustment to the Conversion Price pursuant to Section 7.
“Dispute Resolution Procedures” means a procedure that applies in the event that a determination of the Board of Directors is disputed by the holder of the Series B Preferred Stock, or if there is more than one such holder, by holders of a
majority of the Series B Preferred Stock. The Board of 
  

 A-9 

 
Directors and such holder or holders, as applicable, shall mutually agree upon the determinations then the subject of appraisal or evaluation. If within 30 days after the Dispute Resolution
Procedures are invoked, the parties are unable to agree upon the amount or matter, as applicable, in question, an independent evaluator shall be chosen within 10 days thereafter by the mutual consent of the parties or, if the parties fail to agree
upon the appointment of an evaluator, such appointment shall be made by the American Arbitration Association, or any organization successor thereto, from a panel of arbitrators having experience in the appraisal of the subject matter to be appraised
or evaluated as applicable. Within 5 days following the appointment of the evaluator, each of the parties shall submit its determination of the amount or matter, as applicable, in question to the evaluator and to each other. Each of the parties
shall have 15 days following receipt of the other party’s determination to submit a written rebuttal of such determination to the evaluator. Within 30 days following his or her appointment, the evaluator shall render a decision, which decision
shall be limited to awarding only one of the two such determinations as the final determination with respect to such matter. The costs of conducting any Dispute Resolution Procedures shall be borne by the holder or holders of the Series B Preferred
Stock, as applicable, requesting such Dispute Resolution Procedures, except that (A) any costs incurred by the Board of Directors shall be borne by the Corporation and (B) if such Dispute Resolution Procedures shall result in a
determination that is disparate by 5% or more from the Board of Director’s initial determination, all costs of conducting such Dispute Resolution Procedures shall be borne by the Corporation. 

(c) The dividend or other distribution to all holders of Common Stock of shares of capital stock of the Corporation (other than Common
Stock) or evidences of its indebtedness or its assets (excluding any dividend, distribution or issuance covered by clauses (a) or (b) above or (d) or (e) below) in which event the Conversion Rate shall be adjusted based on the
following formula: 

CR1
 = CR0
x
SP0 /
(SP0 – FMV) 

where, 

CR0
 = the Conversion Rate in effect at the close of business on the Record Date 

CR1
 = the Conversion Rate in effect immediately after the Record Date 

SP0
 = the Current Market Price as of the Record Date 

FMV = the fair market value (as reasonably determined by the Board of Directors, which determination is subject to
adjustment pursuant to the Dispute Resolution Procedures) on the Record Date of the shares of capital stock of the Corporation, evidences of indebtedness or assets so distributed, expressed as an amount per share of Common Stock 

However, if the transaction that gives rise to an adjustment pursuant to this clause (c) is one pursuant to which the payment of a
dividend or other distribution on Common Stock consists of shares of capital stock of the Corporation of, or similar equity interests in, a subsidiary or other business unit of the Corporation, (i.e., a spin-off) that are, or, when issued,
shall be, traded on a U.S. national securities exchange, then the Conversion Rate shall instead be adjusted based on the following formula: 
  

 A-10 

CR1
 =
CR0 x
(FMV0 +
MP0) /
MP0 

where, 

CR0
 = the Conversion Rate in effect at the close of business on the Record Date 

CR1
 = the Conversion Rate in effect immediately after the Record Date 

FMV0
 = the average of the Closing Prices of the capital stock or equity interests representing the portion of the distribution applicable to one share of Common Stock over the first ten
Trading Days commencing on and including the fifth Trading Day following the effective date of such distribution, or, if not traded on a national or regional securities exchange or over-the-counter market, the fair market value (as reasonably
determined by the Board of Directors, which determination is subject to adjustment pursuant to the Dispute Resolution Procedures) of the capital stock or equity interests representing the portion of the distribution applicable to one share of Common
Stock on such date 

MP0
 = the average of the Closing Prices of the Common Stock over the first ten Trading Days commencing on and including the fifth Trading Day following the effective date of such
distribution. 
 “Trading Day” means a day on which the shares of Common Stock: (i) are not suspended from
trading on any national or regional securities exchange or association or over-the-counter market at the close of business; and (ii) have traded at least once on the national or regional securities exchange or association or over-the-counter
market that is the primary market for the trading of the Common Stock. 
 (d) If the Corporation or any of its subsidiaries
successfully completes a tender or exchange offer for the Common Stock where the cash and the value of any other consideration included in the payment per share of the Common Stock exceeds the Closing Price per share of the Common Stock on the
Trading Day immediately succeeding the expiration of the tender or exchange offer (the “expiration date”), the Conversion Rate shall be adjusted based on the following formula: 

CR1
 =
CR0 x [FMV +
(SP1 x
OS1)] /
(SP1 x
OS0) 

where, 

CR0
 = the Conversion Rate in effect at the close of business on the expiration date 

CR1
 = the Conversion Rate in effect immediately after the expiration date 

FMV = the fair market value (as reasonably determined by the Board of Directors, which determination is subject to
adjustment pursuant to the Dispute Resolution Procedures), on the expiration date, of the aggregate value of all cash and any other consideration paid or payable for shares validly tendered or exchanged and not withdrawn as of the expiration date
(the “Purchased Shares”) 

OS1
 = the number of shares of Common Stock outstanding as of the last time tenders or exchanges may be made pursuant to such tender or exchange offer (the “Expiration Time”) less
any Purchased Shares 
  

 A-11 

OS0
 = the number of shares of Common Stock outstanding at the Expiration Time, including any Purchased Shares 

SP1
 = the Closing Price per share of the Common Stock on the expiration date. 

(e) To the extent that the Corporation has a rights plan in effect on the Mandatory Conversion Date with respect to any shares of Series
B Preferred Stock or Common Stock, each share of Common Stock issued upon conversion of the Series B Preferred Stock shall be entitled to receive the appropriate number of rights, if any, and the certificates representing the Common Stock issued
upon such conversion shall bear such legends, if any, in each case as may be provided by the terms of any shareholder rights plan, as the same may be amended from time to time. If, however, on the Mandatory Conversion Date, the rights have separated
from the shares of Common Stock in accordance with the provisions of the applicable shareholder rights plan and the holders of the Series B Preferred Stock would not be entitled to receive any rights in respect of Common Stock issuable upon
conversion of the Series B Preferred Stock, then the Conversion Rate shall be equally and ratably adjusted at the time of the separation, subject to readjustment in the event of the expiration, termination or redemption of such rights. For the
avoidance of doubt, if on the Mandatory Conversion Date, any such rights have already separated from the shares of Series B Preferred Stock in accordance with the provisions of the applicable shareholder rights plan, such rights shall not be
cancelled by virtue of the conversion of Series B Preferred Stock into shares of Common Stock. 
 (f) Certain
Determinations. For purposes of any computation of any adjustment required under this Section 7: 
 (i)
adjustments shall be made successively whenever any event giving rise to such an adjustment shall occur; 
 (ii)
except as provided herein, if any event occurs that would trigger an adjustment to the Conversion Rate pursuant to this Section 7 under more than one subsection hereof, such event, to the extent fully taken into account in a single adjustment,
shall not result in multiple adjustments hereunder; 
 (iii) all adjustments to the
Conversion Rate pursuant to this Section 7 shall be calculated to the nearest
1/10,000th of a share of Common Stock; and 

(iv) no adjustment to the Conversion Rate shall be made if holders of Series B Preferred Stock may participate in the
transaction that would otherwise give rise to an adjustment, as a result of holding the Series B Preferred Stock (including without limitation pursuant to Section 3(b) hereof), without having to convert the Series B Preferred Stock, as if they
held the full number of shares of Common Stock into which a share of the Series B Preferred Stock may then be converted. 
 (g)
Notice of Adjustments. Upon the occurrence of each adjustment to the Conversion Rate, the Corporation shall promptly compute such adjustment in accordance with the terms hereof and furnish to the holders of the Series B Preferred Stock a
written notice setting forth such adjustment and showing in reasonable detail the facts upon which such adjustment is based. 
  

 A-12 

 (h) Adjustment for Unspecified Actions. If the Corporation takes any action affecting
the Series B Preferred Stock, other than actions described in this Section 7, which may adversely affect the rights, preferences, or limitations of any holder thereof, the Conversion Rate for the Series B Preferred Stock shall be adjusted for
such affected holder’s benefit, to the extent permitted by law, in such manner, and at such time, as the Board of Directors shall reasonably determine to be equitable in the circumstances, which determination is subject to adjustment pursuant
to the Dispute Resolution Procedures. 
 8. Reorganization Events. 

(a) In the event that, prior to the Mandatory Conversion Date with respect to any shares of Series B Preferred Stock, there occurs:

 (i) any consolidation or merger of the Corporation with or into another Person pursuant to which the Common
Stock shall be converted into cash, securities or other property of the Corporation or another Person, as applicable; 

(ii) any sale, transfer, lease or conveyance to another Person of all or substantially all of the Corporation’s
property and assets pursuant to which the Common Stock shall be converted into cash, securities or other property of the Corporation or another Person; 

(iii) any reclassification of the Common Stock into securities, including securities other than the Common Stock; or

 (iv) any statutory exchange of the outstanding shares of Common Stock for securities of another Person (other
than in connection with a merger or acquisition) (any such event specified in clauses (i) through (iv), a “Reorganization Event”), 

each share of Series B Preferred Stock outstanding immediately prior to such Reorganization Event shall, subject to the terms and provisions of this
Section 8, be converted, effective as of the close of business on the Reorganization Conversion Date, into the type and amount of securities, cash and other property receivable in such Reorganization Event (other than a counterparty to the
Reorganization Event or an Affiliate of such counterparty) in respect of the number of shares of Common Stock into which one share of Series B Preferred Stock would then be convertible assuming that a Mandatory Conversion Date in respect of such
shares of Series B Preferred Stock had occurred (such securities, cash and other property, the “Exchange Property”). In the event that a Reorganization Event involves common stock as all or part of the consideration being offered in a
fixed exchange ratio transaction, the fair market value per share of such common stock shall be determined by reference to the average of the closing prices of such common stock for the ten Trading Day period ending immediately prior to the
consummation of such Reorganization Event. “Reorganization Conversion Date” means, with respect to the shares of Series B Preferred Stock of any holder thereof, the date of the consummation of the Reorganization Event or, if later, the
first date on which all regulatory approvals of an applicable holder of Series B Preferred Stock with respect to the conversion of such shares shall have been obtained or made. 

 

 A-13 

 (b) Immediately prior to the close of business on the Reorganization Conversion Date, each
converting holder of Series B Preferred Stock shall be deemed to be the holder of record of the number of shares of Common Stock deemed to be issuable upon conversion of such holder’s Series B Preferred Stock in accordance with clause
(i) or (ii) of Section 8(a), notwithstanding that the share register of the Corporation shall then be closed or that certificates representing such Common Stock shall not then be actually delivered to such Person. Upon notice from the
Corporation, each holder of Series B Preferred Stock so converted shall promptly surrender to the Corporation or its transfer agent certificates representing the shares so converted (if not previously delivered), duly endorsed in blank or
accompanied by proper instruments of transfer. 
 (c) In the event that holders of the shares of Common Stock have the
opportunity to elect the form of consideration to be received in connection with any Reorganization Event, the consideration that the holders are entitled to receive shall be deemed to be the types and amounts of consideration received by the
majority of the holders of the shares of Common Stock that affirmatively make an election. 
 (d) The Corporation (or any
successor) shall, within seven days of the consummation of any Reorganization Event, provide written notice to the holders of such consummation of such event and of the kind and amount of the cash, securities or other property that constitutes the
Exchange Property. Failure to deliver such notice shall not affect the operation of this Section 8. 
 9. Voting
Rights. 
 (a) The holders of the Class B Preferred Stock shall be entitled to vote (i) together with the holders of
the Common Stock of the Corporation and any other class or series of stock of the Corporation that is entitled to vote together with such Common Stock holders on the Voting Matters, voting together as a single class, in the election of directors and
on all other matters submitted to the vote of shareholders of the Corporation (such matters, together with the election of the directors, the “Voting Matters”), except for those matters for which a series or class vote is required by
applicable law or by the terms of a class or series of stock. Each share of Class B Preferred Stock shall have, on such matters submitted to the vote of shareholders, the number of votes, or fraction of a single vote, per share equal to the number
of shares of Common Stock into which such share of Series B Preferred Stock is convertible at the then-current Conversion Rate and (ii) on any matters required by law. 

(b) In addition, so long as any shares of Series B Preferred Stock are outstanding, the vote or consent of the holders of at least a
majority of the outstanding shares of Series B Preferred Stock, voting as a single, separate class, given in person or by proxy, either in writing without a meeting or by vote at any meeting called for the purpose, shall be necessary for effecting
or validating, whether or not such approval is required by Washington law: 
 (A) the consummation of a binding
share exchange or reclassification involving the Series B Preferred Stock or a merger or consolidation of the Corporation with another entity, except that the holders of the Series B Preferred Stock shall have no right to vote under this provision
or under Washington law 
  

 A-14 

 
(including RCW 23B.11.035) if the Corporation shall have complied with Section 8 with respect to such transaction; 

(B) any amendment, alteration or repeal (including by means of a merger, consolidation or otherwise) of any provision of
the Governing Documents (including these Articles of Amendment) that would alter or change the rights, preferences or privileges of the Series B Preferred Stock so as to affect them adversely; 

(C) any amendment or alteration (including by means of a merger, consolidation or otherwise) of the Governing Documents to
authorize or create, or increase the authorized amount of, any shares of, or any securities convertible into shares of, any class or series of the Corporation’s capital stock ranking prior to the Series B Preferred Stock in the payment of
dividends or in the distribution of assets on any liquidation, dissolution, or winding-up of the Corporation, thereby adversely affecting the rights, preferences or limitations of the Series B Preferred Stock; or 

(D) the voluntary liquidation, dissolution, or winding up of the Corporation. 

provided, however, that any increase in the amount of the authorized Preferred Stock or any securities convertible into Preferred Stock or
the creation and issuance, or an increase in the authorized or issued amount, of any series of Preferred Stock or any securities convertible into preferred stock ranking equally with and/or junior to the Series B Preferred Stock with respect to the
payment of dividends (whether such dividends are cumulative or non-cumulative) and/or the distribution of assets upon the Corporation’s liquidation, dissolution or winding-up shall not, in and of itself, be deemed to adversely affect the voting
powers, preferences or special rights of the Series B Preferred Stock and, notwithstanding any provision of Washington law (including RCW 23B.10.040(1)(a)), holders of Series B Preferred Stock shall have no right to vote solely by reason of such an
increase, creation or issuance. 
 The holders of Series B Preferred Stock shall have one vote per share of Series B Preferred Stock on any
matter on which holders of Series B Preferred Stock are entitled to vote as a single, separate class. 
 (c) Notwithstanding the
foregoing, the holders of the Series B Preferred Stock shall not have any voting rights if, at or prior to the effective time of the act with respect to which such vote would otherwise be required, all outstanding shares of Series B Preferred Stock
shall have been converted into shares of Common Stock. 
 10. No Preemptive Rights. No share of Series B Preferred Stock
shall have any rights of preemption whatsoever as to any securities of the Corporation, or any warrants, rights or options issued or granted with respect thereto, regardless of how such securities, or such warrants, rights or options, may be
designated, issued or granted. 
 11. Notice of Shareholder Approval. The Corporation shall notify the holders of the
status of the Shareholder Approval on the business day immediately succeeding the date 
  

 A-15 

 
on which the Shareholder Approval has been received or the date on which the Shareholder Approval has been sought but not received, as applicable. If the Shareholder Approval has been received,
such notice shall state (i) that such business day is the Mandatory Conversion Date, (ii) the number of shares of Common Stock to be issued upon conversion of each share of Series B Preferred Stock and (iii) instructions regarding the
surrender of certificates of Series B Preferred Stock for Common Stock to the Transfer Agent. “Transfer Agent” has the meaning provided in Section 15 below. 

12. Use of Acquired Shares. The Corporation shall be entitled to deliver upon conversion of shares of Series B Preferred Stock, as
herein provided, shares of Common Stock acquired by the Corporation (in lieu of the issuance of authorized and unissued shares of Common Stock), so long as any such acquired shares are free and clear of all liens, charges, security interests or
encumbrances (other than liens, charges, security interests and other encumbrances created by the holders of the Series B Preferred Stock). 

13. Free and Clear Delivery. All shares of Common Stock or other securities delivered upon conversion of the Series B Preferred
Stock shall be duly authorized, validly issued, fully paid and non-assessable, free of preemptive rights and free and clear of all liens, claims, security interests and other encumbrances (other than liens, charges, security interests and other
encumbrances created by the holders of the Series B Preferred Stock). 
 14. Compliance with Law. Prior to the delivery
of any securities that the Corporation shall be obligated to deliver upon conversion of the Series B Preferred Stock, the Corporation shall use reasonable best efforts to comply with all federal and state laws and regulations thereunder requiring
the registration of such securities with, or any approval of or consent to the delivery thereof by, any governmental authority. 

15. Transfer Agent. The duly appointed Transfer Agent for the Series B Preferred Stock shall be American Stock Transfer &
Trust Company, LLC. The Corporation may, in its sole discretion, remove the Transfer Agent in accordance with the agreement between the Corporation and the Transfer Agent; provided, that the Corporation shall appoint a successor transfer
agent who shall accept such appointment prior to the effectiveness of such removal. Upon any such removal or appointment, the Corporation shall send notice thereof to the holders. 

16. Replacement Certificates. The Corporation shall replace any mutilated certificate at the holder’s expense upon surrender
of that certificate to the Corporation. The Corporation shall replace certificates that become destroyed, stolen or lost at the holder’s expense upon delivery to the Corporation of reasonably satisfactory evidence that the certificate has been
destroyed, stolen or lost, together with any indemnity that may be reasonably required by the Corporation; provided, that the Corporation shall not be required to issue any additional certificates representing the Series B Preferred Stock on
or after the Mandatory Conversion Date. In place of the delivery of a replacement certificate following the Mandatory Conversion Date, the Transfer Agent, upon delivery of the evidence and indemnity described in the immediately preceding sentence,
shall deliver the shares of Common Stock pursuant to the terms of the Series B Preferred Stock formerly evidenced by the certificate. 
  

 A-16 

 17. Taxes. The Corporation shall pay any and all stock transfer, documentary, stamp
and similar taxes that may be payable in respect of any issuance or delivery of shares of Series B Preferred Stock or shares of Common Stock or other securities issued on account of Series B Preferred Stock pursuant hereto or certificates
representing such shares or securities. The Corporation shall not, however, be required to pay any such tax that may be payable, on account of the transfer of such Series B Preferred Stock, in respect of the issuance or delivery of shares of Series
B Preferred Stock, shares of Common Stock or other securities in a name other than that in which the shares of Series B Preferred Stock with respect to which such shares or other securities are issued or delivered were registered, or in respect of
any payment to any Person other than a payment to the registered holder thereof, and shall not be required to make any such issuance, delivery or payment unless and until the Person otherwise entitled to such issuance, delivery or payment has paid
to the Corporation the amount of any such tax or has established, to the satisfaction of the Corporation, that such tax has been paid or is not payable. 

18. Notices. All notices referred to herein shall be in writing, and, unless otherwise specified herein, all notices hereunder
shall be deemed to have been given upon the earlier of (a) receipt thereof and (b) (i) for notices sent within the United States, three business days after the mailing thereof if sent by registered or certified mail (unless first
class mail shall be specifically permitted for such notice under the terms of this amendment to the Articles of Incorporation) with postage prepaid or (ii) for notices sent outside the United States, two business days after the sending thereof
if sent by recognized next day courier service, in any such case, addressed: (A) if to the Corporation, to its office at 111 North Wall, Spokane, WA 99201 (Attention: Secretary) or to the Transfer Agent at its office at 59 Maiden Lane, Plaza
Level, New York, NY 10038 (Attn: Reorganization Department), or other agent of the Corporation designated as permitted by this amendment to the Articles of Incorporation, or (B) if to any holder of Series B Preferred Stock, to such holder at
the address of such holder as listed in the stock record books of the Corporation (which may include the records of the Transfer Agent) or (C) to such other address and by such other means as the Corporation or any such holder of Series B
Preferred Stock, as the case may be, shall have designated by notice similarly given. 
 19. Other Rights. The shares of
Series B Preferred Stock shall not have any rights, preferences, privileges or voting powers or relative, participating, optional, preemptive or other special rights, or qualifications, limitations or restrictions thereof, other than as set forth
herein or in the Articles of Incorporation or as provided by applicable law. 
 20. Maturity. The shares of Series B
Preferred Stock shall be perpetual unless converted in accordance with these Articles of Amendment. 
 21. Transfer
Restrictions. Solely for the purpose of permitting the utilization of the Tax Benefits to which the Corporation (or any other member of the consolidated group of which the Corporation is common parent for federal income tax purposes) is or may
be entitled pursuant to the Internal Revenue Code of 1986 (the “Code”) and the regulations thereunder, the following restrictions shall apply until the Expiration Date, unless the Board of Directors has waived such restrictions in respect
of all transfers in accordance with Section 26 below: 
 (a) Except as otherwise provided in this subparagraph (a), no
individual or Entity (including for the avoidance of doubt the U.S. Government) other than the Corporation 
  

 A-17 

 
shall, except as provided in Section 22(a) below, transfer to any individual or Entity any direct or indirect interest in the Series B Preferred Stock to the extent that such transfer, if
effective, would cause the Ownership Interest Percentage of the transferee or any other Entity or individual to increase to 4.95 percent (4.95%) or above, or from 4.95% or above to a greater Ownership Interest Percentage. Nothing in this
Section shall preclude the settlement of any transaction with respect to the Series B Preferred Stock entered into through the facilities of the NASDAQ Stock Market or any other national securities exchange; provided, however, that the securities
involved in such transaction, and the Purported Acquiror (as defined below) thereof, shall remain subject to the provisions of these Articles of Amendment in respect of such transaction. Unless a transferor has actual knowledge that a transfer by it
is prohibited by this subparagraph (a), (i) such transferor shall have no liability whatsoever to the Corporation in respect of any losses or damages suffered by the Corporation as a result of such transfer and the Corporation shall have no
cause of action or rights against such transferor in respect of such losses or damages, (ii) such transferor shall have no liability whatsoever to the respective transferee in respect of any losses or damages suffered by such transferee by
virtue of the operation of this Section and (iii) such transferee shall have no cause of action or rights against the transferor in respect of such losses or damages, including, without limitation, for breach of warranty of the transferor
implied by applicable law as to the effectiveness and rightfulness of the transfer. 
 (b) Except as otherwise provided in this
subparagraph (b), no Five-Percent Shareholder shall, except as provided in Section 22(b) below, transfer to any individual or Entity any direct or indirect interest in any Series B Preferred Stock owned by such Five-Percent Shareholder without
the prior approval of the Board of Directors. Nothing in this Section shall preclude the settlement of any transaction with respect to the Series B Preferred Stock entered into through the facilities of the NASDAQ Stock Market or any other national
securities exchange; provided, however, that the transferor of Series B Preferred Stock in violation of the preceding sentence shall remain subject to the provisions of this Section in respect of such transaction and liable to the Corporation for
any damages incurred as a result of such transfer. Unless a transferee has actual knowledge that a transfer to it is prohibited by this subparagraph (b), such transferee shall have no liability whatsoever to the Corporation or such Five-Percent
Shareholder in respect of any losses or damages suffered by the Corporation or such Five-Percent Shareholder as a result of such transfer and neither the Corporation nor such Five-Percent Shareholder shall have any cause of action or rights against
such transferee in respect of such losses or damages. Unless a Five-Percent Shareholder has actual knowledge (after commercially reasonable investigation) that a transfer by it is prohibited by this subparagraph (b), (i) such Five-Percent
Shareholder shall have no liability whatsoever to the Corporation in respect of any losses or damages suffered by the Corporation as a result of such transfer and the Corporation shall have no cause of action or rights against such Five-Percent
Shareholder in respect of such losses or damages, (ii) such Five-Percent Shareholder shall have no liability whatsoever to the respective transferee in respect of any losses or damages suffered by such transferee by virtue of the operation of
this Section and (iii) such transferee shall have no cause of action or rights against the Five-Percent Shareholder in respect of such losses or damages, including, without limitation, for breach of warranty of the Five-Percent Shareholder
implied by applicable law as to the effectiveness and rightfulness of the transfer. 
 (c) The Expiration Date is subject to
extension for up to three (3) additional years (i.e., until [—]) if the Board of Directors determines in its reasonable discretion that the

  

 A-18 

 
extension of the transfer restrictions provided in subparagraphs (a) and (b) of this Section 21 is necessary to preserve the value of the Tax Benefits to which the Corporation (or
any other member of the consolidated group of which the Corporation is common parent for federal income tax purposes) is or may be entitled pursuant to the Code and the regulations thereunder. 

“Tax Benefit” means the net operating loss carryovers, capital loss carryovers, general business credit carryovers, alternative minimum tax
credit carryovers and foreign tax credit carryovers, as well as any potential loss or deduction attributable to an existing “net unrealized built-in loss” within the meaning of Section 382 of the Code, of the Corporation or any direct
or indirect subsidiary thereof. 
 “Expiration Date” means [—],
1 unless extended in accordance with Section 21(c) of
this section. 
 “Entity” means an “entity” as defined in Treasury Regulation §1.382-3(a). 

“Five Percent Shareholder” means an individual or Entity whose Ownership Interest Percentage is greater than or equal to 5%. 

“Ownership Interest Percentage” means, as of any determination date, the percentage of the Corporation’s issued and outstanding Stock (not
including treasury shares or shares subject to vesting in connection with compensatory arrangements with the Corporation) that an individual or Entity would be treated as owning for purposes of Section 382 of the Code, applying the following
additional rules: (i) in the event that such individual or Entity, or any affiliate of such individual or Entity, owns or is party to an “option” (within the meaning of Treasury Regulation § 1.382-4) with respect to Series B
Preferred Stock (including, for the avoidance of doubt, any cash-settled derivative contract that gives such individual or Entity a “long” exposure with respect to Stock), such individual, Entity or affiliate should be treated as owning an
amount of Series B Preferred Stock equal to the number of shares referenced by such “option,” (ii) for purposes of applying Treasury Regulation § 1.382-2T(k)(2), the Corporation shall be treated as having “actual
knowledge” of the beneficial ownership of all outstanding shares of Stock that would be attributed to any such individual or Entity, (iii) Section 382(l)(3)(A)(ii)(II) of the Code shall not apply and (iv) any additional rules the
Board of Directors may establish from time to time” 
 “Prohibited Transfer” means any purported transfer of Stock to the extent
that such transfer is prohibited by the restrictions herein. 
 “Stock” means (i) shares of Common Stock, (ii) shares of
Preferred Stock (other than shares of any class of Preferred Stock described in Section 1504(a)(4) of the Code), which shall include for the avoidance of doubt Convertible Participating Voting Preferred Stock, Series B and Convertible
Participating Voting Preferred Stock, Series D, and (iii) any other interest (other than any “option” within the meaning of Treasury Regulation § 1.382-4) that would be treated as “stock” of the Corporation pursuant to
Treasury Regulation § 1.382-2T(f)(18). 
  

	1
	 Date three years from closing of recapitalization transaction. 

 

 A-19 

 “transfer” refers to any means of conveying record, beneficial or tax ownership (applying, in the
case of tax ownership, applicable attribution rules for purposes of Section 382 of the Code) of Stock, whether such means is direct or indirect, voluntary or involuntary, and “transferee” means any Person to whom any such security is
transferred. 
 22. Permitted Transfers. 

(a) Any transfer of Series B Preferred Stock that would otherwise be prohibited pursuant to Section 21(a) of these Articles of
Amendment shall nonetheless be permitted if (i) such transfer is made by a Strategic Investor or a Permissible Transferee to a Permissible Transferee, (ii) prior to such transfer being consummated (or, in the case of an involuntary
transfer, as soon as practicable after the transaction is consummated), the Board of Directors, in its sole discretion, approves the transfer (such approval may relate to a transfer or series of identified transfers), (iii) such transfer is
pursuant to any transaction, including, but not limited to, a merger or consolidation, in which all holders of Series B Preferred Stock receive, or are offered the same opportunity to receive, cash or other consideration for all such Series B
Preferred Stock, and upon the consummation of which the acquiror will own at least a majority of the outstanding shares of Series B Preferred Stock, (iv) such transfer is pursuant to the exercise by a Strategic Investor or a Permissible
Transferee of a warrant issued to a Strategic Investor pursuant to an investment agreement to which the Corporation is a party or (v) such transfer is a transfer by the Corporation to an underwriter or placement agent for distribution in a
public offering, whether registered or conducted pursuant to an exception from registration; provided, however, that transfers by such underwriter or placement agent to purchasers in such offering remain subject to this Section. In determining
whether to approve a proposed transfer pursuant to (ii) of this subparagraph (a), the Board of Directors may, in its discretion, require (at the expense of the transferor and/or transferee) an opinion of counsel selected by the Board of
Directors that the transfer will not result in the application of any limitation pursuant to Section 382 of the Code on the use of the Tax Benefits. 

(b) Any transfer of Series B Preferred Stock that would otherwise be prohibited pursuant to Section 21(b) shall nonetheless be
permitted if (i) such transfer is made by a Strategic Investor or a Permissible Transferee, (ii) prior to such transfer being consummated (or, in the case of an involuntary transfer, as soon as practicable after the transaction is
consummated), the Board of Directors, in its discretion, approves the transfer (such approval may relate to a transfer or series of identified transfers) or (iii) such transfer is pursuant to any transaction, including, but not limited to, a
merger or consolidation, in which all holders of Stock receive, or are offered the same opportunity to receive, cash or other consideration for all such Series B Preferred Stock, and upon the consummation of which the acquiror will own at least a
majority of the outstanding shares of Series B Preferred Stock. In determining whether to approve a proposed transfer pursuant to (ii) of this subparagraph (b), the Board of Directors may, in its discretion, require (at the expense of the
transferor and/or transferee) an opinion of counsel selected by the Board of Directors that the transfer will not result in the application of any limitation pursuant to Section 382 of the Code on the use of the Tax Benefits. In the case of a
proposed transfer by a Five-Percent Shareholder pursuant to this subparagraph (b), the Board of Directors will not unreasonably withhold approval of a proposed transfer that is structured in a manner that the Board of Directors determines, in its
reasonable judgment, minimizes the “owner shift” required to be taken into account for purposes of Section 382 of the Code as a result of 

 

 A-20 

 
such transfer and any subsequent transfers by the transferor and its affiliates. In assessing whether proposed transfers are so structured, the Board of Directors will apply the Treasury
Regulations under Section 382 of the Code, including but not limited to Treasury Regulations Sections 1.382-2T(g)(5) and 1.382-2T(k). For the avoidance of doubt, the Board of Directors may withhold approval of any proposed transfer that it
determines will result in a material risk that any limitation pursuant to Section 382 of the Code will be imposed on the utilization of the Tax Benefits. 

(c) The Board of Directors may exercise the authority granted by this Section 22 through duly authorized officers or agents of the
Corporation. The Board of Directors may establish a committee to determine whether to approve a proposed transfer or for any other purpose relating to these Articles of Amendment. As a condition to the Corporation’s consideration of a request
to approve a proposed transfer, the Board of Directors may require the transferor and/or transferee to reimburse or agree to reimburse the Corporation, on demand, for all costs and expenses incurred by the Corporation with respect to such proposed
transfer, including, without limitation, the Corporation’s costs and expenses incurred in determining whether to authorize such proposed transfer. 

“Strategic Investor” means any Person that is identified as a Strategic Investor in an investment agreement between such Person and the
Company. 
 “Permissible Transferee” means a transferee that, immediately prior to any transfer, has an Ownership Interest Percentage
equal to (i) zero percentage points plus (ii) any percentage attributable to a prior transfer from, or attribution of ownership from, a Strategic Investor or another Permissible Transferee. 

23. Treatment of Prohibited Transfers. Unless the transfer is permitted as provided in Section 22, any attempted transfer of
Series B Preferred Stock in excess of the Series B Preferred Stock that could be transferred to the transferee without restriction under Section 21(a) shall not be effective to transfer ownership of such excess Series B Preferred Stock (the
“Prohibited Shares”) to the purported acquiror thereof (the “Purported Acquiror”), who shall not be entitled to any rights as a shareholder of the Corporation with respect to such Prohibited Shares (including, without limitation,
the right to vote or to receive dividends with respect thereto). 
 (a) Upon demand by the Corporation, the Purported Acquiror
shall transfer any certificate or other evidence of purported ownership of Prohibited Shares within the Purported Acquiror’s possession or control, along with any dividends or other distributions paid by the Corporation with respect to any
Prohibited Shares that were received by the Purported Acquiror (the “Prohibited Distributions”), to such Person as the Corporation shall designate to act as transfer agent for such Prohibited Shares (the “Agent”). If the
Purported Acquiror has sold any Prohibited Shares to an unrelated party in an arm’s-length transaction after purportedly acquiring them, the Purported Acquiror shall be deemed to have sold such Prohibited Shares for the Agent, and in lieu of
transferring such Prohibited Shares (and Prohibited Distributions with respect thereto) to the Agent shall transfer to the Agent any such Prohibited Distributions and the proceeds of such sale (the “Resale Proceeds”) except to the extent
that the Agent grants written permission to the Purported Acquiror to retain a portion of such Resale Proceeds not exceeding 
  

 A-21 

 
the amount that would have been payable by the Agent to the Purported Acquiror pursuant to subparagraph (b) below if such Prohibited Shares had been sold by the Agent rather than by the
Purported Acquiror. Any purported transfer of Prohibited Shares by the Purported Acquiror other than a transfer described in one of the first two sentences of this subparagraph (a) shall not be effective to transfer any ownership of such
Prohibited Shares. 
 (b) The Agent shall sell in one or more arm’s-length transactions (through the NASDAQ Stock Exchange,
if possible) any Prohibited Shares transferred to the Agent by the Purported Acquiror, provided, however, that any such sale must not constitute a Prohibited Transfer and provided further, that the Agent shall effect such sale or sales in an orderly
fashion and shall not be required to effect any such sale within any specific time frame if, in the Agent’s discretion, such sale or sales would disrupt the market for the Stock or otherwise would adversely affect the value of the Series B
Preferred Stock. The proceeds of such sale (the “Sales Proceeds”), or the Resale Proceeds, if applicable, shall be used to pay the expenses of the Agent in connection with its duties under this Section 23 with respect to such
Prohibited Shares, and any excess shall be allocated to the Purported Acquiror up to the following amount: (i) where applicable, the purported purchase price paid or value of consideration surrendered by the Purported Acquiror for such
Prohibited Shares, and (ii) where the purported transfer of Prohibited Shares to the Purported Acquiror was by gift, inheritance, or any similar purported transfer, the fair market value (as determined in good faith by the Board of Directors)
of such Prohibited Shares at the time of such purported transfer. Subject to the succeeding provisions of this subparagraph, any Resale Proceeds or Sales Proceeds in excess of the amount allocable to the Purported Acquiror pursuant to the preceding
sentence, together with any Prohibited Distributions, shall be transferred to an entity described in Section 501(c)(3) of the Code and selected by the Board of Directors or its designee; provided, however, that if the Prohibited Shares
(including any Prohibited Shares arising from a previous Prohibited Transfer not sold by the Agent in a prior sale or sales), represent a 4.95% or greater Ownership Interest Percentage, then any such remaining amounts to the extent attributable to
the disposition of the portion of such Prohibited Shares exceeding a 4.94% Ownership Interest Percentage shall be paid to two or more organizations qualifying under Section 501(c)(3) selected by the Board of Directors. In no event shall any
such amounts described in the preceding sentence inure to the benefit of the Corporation or the Agent, but such amounts may be used to cover expenses incurred by the Agent in connection with its duties under this Section 23 with respect to the
related Prohibited Shares. Notwithstanding anything in these Articles of Amendment to the contrary, the Corporation shall at all times be entitled to make application to any court of equitable jurisdiction within the State of Washington for an
adjudication of the respective rights and interests of any Person in and to any Sale Proceeds, Resale Proceeds and Prohibited Distributions pursuant to these Articles of Amendment and applicable law and for leave to pay such amounts into such court.

 (c) Within thirty (30) business days of learning of a purported transfer of Prohibited Shares to a Purported Acquiror,
the Corporation through its Secretary shall demand that the Purported Acquiror surrender to the Agent the certificates representing the Prohibited Shares, or any Resale Proceeds, and any Prohibited Distributions, and if such surrender is not made by
the Purported Acquiror the Corporation may institute legal proceedings to compel such transfer; provided, however, that nothing in this paragraph (c) shall preclude the Corporation in its discretion from immediately bringing legal proceedings
without a prior demand, and provided 
  

 A-22 

 
further that failure of the Corporation to act within the time periods set out in this paragraph (c) shall not constitute a waiver of any right of the Corporation to compel any transfer
required by subparagraph (a) of this Section 23. 
 (d) Upon a determination by the Corporation that there has been or
is threatened a purported transfer of Prohibited Shares to a Purported Acquiror, the Corporation may take such action in addition to any action permitted by the preceding paragraph as it deems advisable to give effect to the provisions of these
Articles of Amendment, including, without limitation, refusing to give effect on the books of this Corporation to such purported transfer or instituting proceedings to enjoin such purported transfer. 

24. Transferee Information. The Corporation may require as a condition to the approval of the transfer of any shares of its Series
B Preferred Stock pursuant to these Articles of Amendment that the proposed transferee furnish to the Corporation all information reasonably requested by the Corporation and reasonably available to the proposed transferee and its affiliates with
respect to the direct or indirect ownership interests of the proposed transferee (and of Persons to whom ownership interests of the proposed transferee would be attributed for purposes of Section 382 of the Code) in Stock or other options or
rights to acquire Stock. 
 25. Legends on Certificates. All certificates evidencing ownership of shares of Series B
Preferred Stock that are subject to the restrictions on transfer contained in these Articles of Amendment shall bear a conspicuous legend referencing the restrictions set forth in these Articles of Amendment. 

26. Waiver. The Board of Directors may, at any time prior to the Expiration Date, waive the transfer restrictions in these
Articles of Amendment in respect of one or more classes of transfers or in respect of all transfers, provided that the Board of Directors determines (a) that there is no reasonable likelihood that such waiver will create or increase a material
risk that limitations pursuant to Section 382 of the Code will be imposed on the utilization of the Tax Benefits, either at the time of waiver or a reasonable time thereafter, or (b) that the benefits to the shareholders of the Corporation
as a whole of so waiving the provisions hereof are sufficient to permit such waiver notwithstanding the likely detriment to the shareholders as a whole of the limitations referred to in (a). Any such determination to waive such restrictions in
respect of all transfers shall be filed with the Secretary of the Corporation and mailed by the Secretary to all shareholders of this Corporation within ten days after the date of such determination. 

27. General Provisions. 

(a) The term “outstanding”, when used with reference to shares of stock, shall mean issued shares, excluding shares held by the
Corporation or any subsidiary of the Corporation. 
 (b) The term “Person” as used herein means any corporation,
limited liability Corporation, partnership, trust, organization, association, other entity or individual. 
 (c) The headings of
the sections of this amendment to the Articles of Incorporation are for convenience of reference only and shall not define, limit or affect any of the provisions hereof. 
  

 A-23 

 THIRD: These Articles of Amendment to the Restated Articles of Incorporation do not
provide for an exchange, reclassification or cancellation of any issued shares. 
 FOURTH: These Articles of Amendment to
the Restated Articles of Incorporation were duly adopted by the Board of Directors of the Corporation on [                    ]. 

FIFTH: No shareholder action was required. 

SIXTH: These Articles of Amendment are effective upon filing with the Secretary of State of Washington. 

[Remainder of Page Intentionally Left Blank] 

 

 A-24 

 IN WITNESS WHEREOF, Sterling Financial Corporation has caused these Articles of Amendment to
be signed by             , its             , this      day of
            , 2010. 
  

			
	Sterling Financial Corporation
		
	By	 	  

		 	Name:
		 	Title:

  

 A-25 

 EXHIBIT B TO INVESTMENT AGREEMENT 

Form of Warrant 

THE SECURITIES REPRESENTED BY THIS INSTRUMENT HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR SECURITIES LAWS OF ANY STATE AND
MAY NOT BE TRANSFERRED, SOLD OR OTHERWISE DISPOSED OF EXCEPT WHILE A REGISTRATION STATEMENT RELATING THERETO IS IN EFFECT UNDER SUCH ACT AND APPLICABLE STATE SECURITIES LAWS OR PURSUANT TO AN EXEMPTION FROM REGISTRATION UNDER SUCH ACT OR SUCH LAWS.

 THE SECURITIES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO TRANSFER AND OTHER RESTRICTIONS SET FORTH HEREIN AND IN AN INVESTMENT
AGREEMENT, DATED AS OF APRIL 29, 2010, COPIES OF WHICH ARE ON FILE WITH THE SECRETARY OF THE ISSUER. 
 WARRANT

 to purchase 

[168,383,759]1
 
 Shares of Common Stock 

dated as of [April] [—], 2010 

Sterling Financial Corporation 

a Washington Corporation 

Issue Date: [April] [—], 2010 

1. Definitions. Unless the context otherwise requires, when used herein the following terms shall have the meanings indicated. 

“Adjustment” has the meaning given to it in Section 13(H). 

 

	1
	 Reflects aggregate number of shares of Common Stock issuable to all Investors upon exercise of Warrant. To be adjusted at Closing similar to the
adjustment in Section 1.1 of the Investment Agreement, to reflect 4.00% initial ownership by the Warrantholder of the fully diluted equity of the Company, not giving effect to the shares of Common Stock and Series B Preferred Stock acquired at
the Closing. 

 “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 definition, “control” (including, with correlative meanings, the terms “controlled by” and “under common control
with”) when used with respect to any Person, means the possession, directly or indirectly, of the power to cause the direction of management or policies of such person, whether through the ownership of voting securities, by contract or
otherwise. 
 “Applicable Price” means 95% of the greater of the
Market Price per share of outstanding Common Stock and/or Common Equivalent Preferred Stock, as applicable (A) on the date on which the Company issues or sells any Common Stock and/or Common Equivalent Preferred Stock, as applicable other than
Excluded Stock and (B) the first date of the announcement of such issuance or sale.  

“Appraisal Procedure” means a procedure whereby the Company and the Warrantholder (or if there is
more than one Warrantholder, a majority in interest of Warrantholders) shall mutually agree upon the determinations then the subject of appraisal or dispute, as applicable. If within 30 days after the Appraisal Procedure is invoked, the parties are
unable to agree upon the amount or Disputed Adjustment Matter, as applicable, in question, an independent evaluator shall be chosen within 10 days thereafter by the mutual consent of the parties or, if the parties fail to agree upon the appointment
of an evaluator, such appointment shall be made by the American Arbitration Association, or any organization successor thereto, from a panel of arbitrators having experience in the appraisal of the subject matter to be appraised or evaluated, as
applicable. Within 5 days following the appointment of the evaluator, each of the parties shall submit its determination of the amount or Disputed Adjustment Matter, as applicable, in question to the evaluator and to each other. Each of the parties
shall have 15 days following receipt of the other party’s determination to submit a written rebuttal of such determination to the evaluator. Within 30 days following his or her appointment, the appraiser shall render a decision, which decision
shall be limited to awarding only one of the two such determinations as the final determination with respect to such matter. The costs of conducting any Appraisal Procedure shall be borne by the Warrantholder or Warrantholders, as applicable,
requesting such Appraisal Procedure, except that (A) any costs incurred by the Company shall be borne by the Company and (B) if such Appraisal Procedure shall result in a determination that is disparate by 5% or more from the
Company’s initial determination, all costs of conducting such Appraisal Procedure shall be borne by the Company. 

“Beneficial Owner” and “Beneficial Ownership” have the meanings given to such terms in Rules 13d-3 and
13d-5 of the Exchange Act. 
 “BHC Act” means the Bank Holding Company Act of 1956, as amended, or any
successor statute, and the rules and regulations promulgated thereunder. 
 “Board” means the Board of
Directors of the Company. 
 “Board Representative” has the meaning given to it in the Investment Agreement.

 “Business Combination” means a merger, consolidation, statutory share exchange or similar transaction that
requires adoption by the Company’s stockholders. 
  

 B-2 

 “Business Day” means any day except Saturday, Sunday and any day which
shall be a legal holiday or a day on which banking institutions in the State of New York or the State of Washington generally are authorized or required by law or other governmental actions to close. 

“Capital Stock” means (A) with respect to any Person that is a corporation or company, any and all shares,
interests, participations or other equivalents (however designated) of capital or capital stock of such Person and (B) with respect to any Person that is not a corporation or company, any and all partnership or other equity interests of such
Person. 
 “CBC Act” means the Change in Bank Control Act of 1978, as amended, and the rules and regulations
promulgated thereunder. 
 “Change of Control” means, with respect to the Company, the occurrence of any one of
the following events: 
 (A) any Person is or becomes a Beneficial Owner (other than the Investor and its Affiliates), directly
or indirectly, of 24.9% or more of the aggregate voting power of the outstanding Voting Securities of the Company and, in connection with or subsequent to such acquisition, the Incumbent Directors cease for any reason to constitute at least a
majority of the Board; provided, that any person becoming a director subsequent to the date of the Investment Agreement whose election or nomination for election was approved by a vote of at least two-thirds of the Incumbent Directors then on
the Board (either by a specific vote or by approval of the proxy statement of the relevant party in which such person is named as a nominee for director, without written objection to such nomination) shall be an Incumbent Director (except that no
individuals who were not directors at the time any agreement or understanding with respect to any Business Combination or contested election is reached shall be treated as Incumbent Directors for the purposes of clause (C) below with respect to
such Business Combination or this paragraph in the case of a contested election); provided, further, that the Board Representative will be treated as an Incumbent Director even if the Person designated to be such Board Representative
should change; 
 (B) any Person is or becomes a Beneficial Owner (other than the Investor and its Affiliates), directly or
indirectly, of 50% or more of the aggregate voting power of the outstanding Voting Securities of the Company; provided, however, that the event described in this clause (B) will not be deemed a Change of Control by virtue of any
holdings or acquisitions: (i) by the Company or any of its Subsidiaries, (ii) by any employee benefit plan (or related trust) sponsored or maintained by the Company or any of its Subsidiaries; and provided, further, that such
holdings or acquisitions by any such plan (other than any plan maintained under Section 401(k) of the Internal Revenue Code of 1986, as amended) do not exceed 50% of the then outstanding Voting Securities of the Company, (iii) by any
underwriter temporarily holding securities pursuant to an offering of such securities or (iv) pursuant to a Non-Qualifying Transaction; 

(C) a Business Combination, to the extent it is not a Non-Qualifying Transaction; or 

(D) adoption of a plan of liquidation or dissolution of the Company or a sale of all or substantially all of the Company’s assets.

  

 B-3 

 “Common Equivalent Preferred Stock” means the Series B Preferred Stock, the
Series D Preferred Stock or any other class or series of Capital Stock of the Company ranking pari passu with the Common Stock as to dividends or payments upon liquidation. 

“Common Stock” means the Company’s common stock, and (except as used in the definition of Non-Qualifying
Transaction) any Capital Stock for or into which such Common Stock hereafter is exchanged, converted, reclassified or recapitalized by the Company or pursuant to an agreement or Business Combination to which the Company is a party. 

“Company” means Sterling Financial Corporation, a Washington corporation. 

“Disputed Adjustment Matter” has the meaning given to it in Section 13(H). 

“Exchange Act” means the Securities Exchange Act of 1934, as amended, or any successor statute, and the rules and
regulations promulgated thereunder. 
 “Excluded Stock” means (A) shares of Common Stock issued by the
Company as a stock dividend payable in shares of Common Stock, or upon any subdivision or split-up of the outstanding shares of Capital Stock, in each case which is subject to Section 13(B), or upon conversion of shares of Capital Stock (but
not the issuance of such Capital Stock which will be subject to the provision of Section 13(A)), (B) shares of Common Stock to be issued to directors, employees or consultants of the Company pursuant to options, restricted stock units or
other equity-based awards granted prior to the date of issuance of this Warrant and pursuant to options, restricted stock units or other equity-based awards granted after the date of issuance of this Warrant if, in the case of options, the exercise
price per share of Common Stock on the date of such grant equals or exceeds the Market Price of a share of Common Stock on the date of such grant, (C) any options, restricted stock units or other equity-based awards to be issued after the date
of issuance of this Warrant to directors, employees or consultants hired in connection with, and at or around the same time as, the Recapitalization Transactions of the Company, or the issuance of Common Stock to such persons, including pursuant to
any such awards, not to exceed 2.5% of the capital stock of the Company on a fully diluted basis, (D) shares of Common Stock issued upon conversion of the Series B Preferred Stock, (E) shares of Common Stock issued upon conversion of the
Series D Preferred Stock, (F) shares of Common Stock issued upon the conversion of the Series C Preferred Stock, (G) the Treasury Warrant, (H) shares of Common Stock issued upon exercise of the Treasury Warrant,
(I) shares of Series E Preferred Stock or Common Stock issued under the terms of the Shareholder Rights Plan (including upon exercise of Rights (as defined in the Shareholder Rights Plan) issued pursuant thereto), (J) any shares issued to
the Warrantholder or its Affiliates in connection with the exercise by such Person of preemptive rights under the terms of any of the Company’s Capital Stock and (K) any shares of Common Stock, Common Equivalent Preferred Stock or Series C
Preferred Stock issued on the day hereof. 
  

 B-4 

 “Exercise Price” means
[$0.22].2 The Exercise Price shall be subject to
adjustment from time to time in accordance with Section 13. 
 “Expiration Time” has the meaning given to
it in Section 3. 
 “Fair Market Value” means, with respect to any security or other property, the fair
market value of such security or other property as determined by the Board, acting in good faith. If the Warrantholder does not accept the Board’s calculation of Fair Market Value and the Warrantholder and the Company are unable to agree on
Fair Market Value, the procedures described in Section 15 shall be used to determine Fair Market Value. 

“Group” means a “group” within the meaning of Section 13(d)(3) of the Exchange Act. 

“Incumbent Directors” means individuals who, on the date of the Investment Agreement, constitute the Board. 

“Investment Agreement” means the Investment Agreement, dated as of April 29, 2010, between the Company and the
Investor, including all schedules and exhibits thereto. 
 “Investor” means
[—]3.

 “Market Price” of the Common Stock (or other relevant capital stock or equity interest) on any date of
determination means the closing sale price or, if no closing sale price is reported, the last reported sale price of the shares of the Common Stock (or other relevant capital stock or equity interest) on the NASDAQ on such date. If the Common Stock
(or other relevant capital stock or equity interest) is not traded on the NASDAQ on any date of determination, the Closing Price of the Common Stock (or other relevant capital stock or equity interest) on such date of determination means the closing
sale price as reported in the composite transactions for the principal U.S. national or regional securities exchange on which the Common Stock (or other relevant capital stock or equity interest) is so listed or quoted, or, if no closing sale price
is reported, the last reported sale price on the principal U.S. national or regional securities exchange on which the Common Stock (or other relevant capital stock or equity interest) is so listed or quoted, or if the Common Stock (or other relevant
capital stock or equity interest) is not so listed or quoted on a U.S. national or regional securities exchange, the last quoted bid price for the Common Stock (or other relevant capital stock or equity interest) in the over-the-counter market as
reported by Pink Sheets LLC or similar organization, or, if that bid price is not available, the market price of the Common Stock (or other relevant capital stock or equity interest) on that date as determined by a nationally recognized independent
investment banking firm retained by the Company for this purpose. 
 “NASDAQ” means the Nasdaq National Market.

  

	2
	 To be adjusted at Closing to reflect 110% of the lesser of (i) $.20 per Common Share on an as converted basis, and (ii) the lowest price per
Common Share on an as converted basis sold in any of the Other Private Placements. 

	3
	 Names to be conformed as appropriate. 

  

 B-5 

 “Net Income” means net income, excluding the impact of any one-time
deferred tax benefit due to the reduction of valuation allowance against deferred tax assets, extraordinary loan loss provisions or other extraordinary items calculated pursuant to generally acceptable accounting principles consistent with past
practice. 
 “Non-Qualifying Transaction” means any Business Combination that satisfies all of the following
criteria: (A) more than 50% of the total voting power of the capital stock of the surviving corporation resulting from such Business Combination, or, if applicable, the ultimate parent corporation that directly or indirectly has Beneficial
Ownership of 100% of the voting securities eligible to elect directors of the surviving corporation, is represented by shares of Common Stock that were outstanding immediately before such Business Combination (or, if applicable, is represented by
shares into which such Common Stock was converted pursuant to such Business Combination) and (B) at least a majority of the members of the board of directors of the parent corporation (or, if there is no parent corporation, the surviving
corporation) following the consummation of the Business Combination were Incumbent Directors at the time the Company’s Board approved the execution of the initial agreement providing for such Business Combination. 

“Ordinary Cash Dividends” means the portion, if any, of any cash dividend that (i) is made out of surplus or net
profits legally available therefor (determined in accordance with generally accepted accounting principles, consistently applied) and (ii) (a) prior to [            ,
2015],4 does not exceed $4,500,000 per quarter in the
aggregate, and (b) on or after [            ,
2015],5 does not exceed 20% of the quarterly Net Income of
the Company per quarter in the aggregate. 
 “Ownership Limit” means
at the time of determination, 24.9% of any class of Voting Securities of the Company outstanding at such time. Any calculation of a Warrantholder’s percentage ownership of the outstanding Voting Securities of the Company for purposes of this
definition shall be made in accordance with the relevant provisions of Regulation Y of the Federal Reserve Board (12 C.F.R. 225 et seq.)  

“Person” has the meaning given to it in Section 3(a)(9) of the Exchange Act and as used in Sections 13(d)(3)
and 14(d)(2) of the Exchange Act. 
 “Preliminary Control Event” means, with respect to the Company,
(A) the execution of definitive documentation for a transaction or (B) the recommendation that stockholders tender in response to a tender or exchange offer, in each case, that could reasonably be expected to result in a Change of Control
upon consummation. 
 “Pro Rata Repurchases” means any purchase of shares of Common Stock by the Company or any
Affiliate thereof pursuant to (A) any tender offer or exchange offer subject to Section 13(e) of the Exchange Act, or (B) pursuant to any other offer available to substantially all holders of Common Stock, in each case whether for
cash, shares of Capital Stock of the 
  

	4
	Date to reflect 5th anniversary of the Closing. 

	5
	Date to reflect 5th anniversary of the Closing. 

  

 B-6 

 
Company, other securities of the Company, evidences of indebtedness of the Company or any other Person or any other property (including, without limitation, shares of Capital Stock, other
securities or evidences of indebtedness of a Subsidiary of the Company), or any combination thereof, effected while this Warrant is outstanding; provided, however, that “Pro Rata Repurchase” shall not include any purchase of
shares by the Company or any Affiliate thereof made in accordance with the requirements of Rule 10b-18 as in effect under the Exchange Act. The “Effective Date” of a Pro Rata Repurchase shall mean the date of acceptance of shares
for purchase or exchange under any tender or exchange offer which is a Pro Rata Repurchase or the date of purchase with respect to any Pro Rata Repurchase that is not a tender or exchange offer. 

“Regulatory Approvals” means, as to any Warrantholder, to the extent applicable and required to
permit such Warrantholder to exercise this Warrant for Shares and to own such Common Stock without such Warrantholder being in violation of applicable law, rule or regulation (including the BHC Act and the CBC Act), the receipt or making of
approvals and authorizations of, filings and registrations with, notifications to, or determinations by any U.S. federal, state or foreign governmental authority or self-regulatory organization with respect to any such exercise, including the
expiration or termination of any applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, if any. 

“SEC” has the meaning given to it in Section 12. 

“Securities” has the meaning given to it in the Investment Agreement. 

“Securities Act” means the Securities Act of 1933, as amended, or any successor statute, and the rules and regulations
promulgated thereunder. 
 “Series B Preferred Stock” means the Convertible Participating Voting Preferred
Stock, Series B of the Company. 
 “Series C Preferred Stock” means the Mandatorily Convertible Preferred
Stock, Series C of the Company. 
 “Series D Preferred Stock” means the Convertible Participating Voting
Preferred Stock, Series D of the Company. 
 “Series E Preferred Stock” means the Series E Participating
Cumulative Preferred Stock, Series E of the Company. 
 “Shareholder Rights Plan” means the Shareholder Rights
Plan dated as of April 14, 2010 between the Company and American Stock Transfer & Trust Company, LLC, as Rights Agent. 

“Shares” is defined in Section 2. 

“Stockholder Proposals” means a proposal to amend the restated articles of incorporation, as amended, of the Company to
increase the number of authorized shares of Common Stock to 10,000,000,000 or such larger number as the Board determines in its reasonable judgment is necessary to comply with any obligations of the Company pursuant to any agreement entered

  

 B-7 

 
into in connection with certain recapitalization transactions to occur at or around the date of this Warrant. 

“Subsidiary” of a Person means any corporation, bank, savings bank, association or other Person of which such Person
owns or controls 51% or more of the outstanding equity securities either directly or indirectly through an unbroken chain of entities, as to each of which 51% or more of the outstanding equity securities is owned directly or indirectly by its
parent; provided, however, that there shall not be included any such entity to the extent that the equity securities of such entity were acquired in satisfaction of a debt previously contracted in good faith or are owned or controlled
in a bona fide fiduciary capacity. 
 “Transfer” has the meaning given to it in Section 8(B)(ii).

 “Treasury Warrant” means the Amended and Restated Warrant issued by the Company to the United States
Department of the Treasury on the date hereof. 
 “Voting Securities” means, at any time, shares of any class
of capital stock of the Company that are then entitled to vote generally in the election of directors. 

“Warrantholder” has the meaning given to it in Section 2. 

“Warrant” means this Warrant, issued to the Investor pursuant to the Investment Agreement. 

“Widely Dispersed Offering” means (a) a widespread public distribution, (b) a transfer in which no transferee
(or group of associated transferees) would receive more than 2% of any class of Voting Securities of the Company or (c) a transfer to a transferee that would control more than 50% of the Voting Securities of the Company without any transfer
from the Investor. 
 2. Number of Shares; Exercise Price. This certifies that, for value received,
[—]6,
its Affiliates or its registered assigns (the “Warrantholder”) is entitled, upon the terms and subject to the conditions hereinafter set forth, to acquire from the Company, in whole or in part, up to an aggregate of 258,852,738
fully paid and nonassessable shares of Common Stock (the “Shares”), of the Company, at a purchase price equal to the Exercise Price per Share or to acquire from the Company shares of Series B Preferred Stock in accordance with
Section 14. The number of Shares and the Exercise Price are subject to adjustment as provided herein, and all references to “Shares,” “Common Stock” and “Exercise Price” herein shall be deemed to include any such
adjustment or series of adjustments. 
 3. Exercise of Warrant; Term. (A) To the extent permitted by applicable laws
and regulations, and subject to the restrictions set forth in Section 3(B), the right to purchase the Shares represented by this Warrant is exercisable, in whole or in part by the Warrantholder, at any time or from time to time after the
execution and delivery of this Warrant by the Company, on the date hereof, but in no event later than 11:59 p.m., New York City time, on the [seventh] anniversary of the date of issuance of the Warrant (the “Expiration Time”),
by (i) the surrender 
  

	6
	Names to be conformed as appropriate. 

  

 B-8 

 
of this Warrant and Notice of Exercise annexed hereto, duly completed and executed on behalf of the Warrantholder, at the office of the Company in Spokane, Washington (or such other office or
agency of the Company in the United States as it may designate by notice in writing to the Warrantholder at the address of the Warrantholder appearing on the books of the Company), and (ii) payment of the Exercise Price for the Shares thereby
purchased at the election of the Warrantholder in one of the following manners: 
 (1) by tendering in cash, by
certified or cashier’s check payable to the order of the Company, or by wire transfer of immediately available funds to an account designated by the Company; or 

(2) by having the Company withhold shares of Common Stock issuable upon exercise of the Warrant equal in value to the
aggregate Exercise Price as to which this Warrant is so exercised based on the Market Price of the Common Stock on the trading day immediately prior to the date on which this Warrant and the Notice of Exercise are delivered to the Company.

 If the Warrantholder does not exercise this Warrant in its entirety, the Warrantholder will be entitled to receive from the
Company within a reasonable time, and in any event not exceeding three (3) Business Days, a new warrant in substantially identical form for the purchase of that number of Shares equal to the difference between the number of Shares subject to
this Warrant and the number of Shares as to which this Warrant is so exercised. 
 (B) Notwithstanding anything herein to the
contrary, the Warrant shall be exercisable only as follows: 
 (i) by the Investor pursuant to Section 3(A) for shares of
Common Stock, provided that in no event shall Investor be entitled to receive shares of Common Stock upon the exercise hereof to the extent (but only to the extent) that at the time the Investor exercises the Warrant (1) the Investor has
failed to obtain any applicable Regulatory Approvals or (2) such receipt would cause the Investor to own, or be deemed for applicable bank regulatory purposes to own, Voting Securities of the Company in excess of the Ownership Limit; or

 (ii) by any Warrantholder other than the Investor and its Affiliates, if such Warrantholder shall have acquired this Warrant
directly or indirectly by a transaction or transactions constituting a Widely Dispersed Offering and not in violation of the provisions of Section 8 hereof, for shares of Common Stock, subject to any restrictions or limitations under applicable
laws and regulations. 
 4. Issuance of Shares; Authorization; Listing. Certificates for Shares or Series B Preferred
Stock as the case may be, issued upon exercise of this Warrant will be issued in such name or names as the Warrantholder may designate and will be delivered to such named Person or Persons within a reasonable time, not to exceed 3 Business Days
after the date on which this Warrant has been duly exercised in accordance with the terms of this Warrant. The Company hereby represents and warrants that any Shares or Series B Preferred Stock issued upon the exercise of this Warrant in accordance
with the provisions of Section 3 and all other provisions of this Warrant will be duly and validly authorized and issued, fully paid and nonassessable and 

 

 B-9 

 
free from all taxes, liens and charges (other than liens or charges created by the Warrantholder or taxes in respect of any transfer occurring contemporaneously therewith). The Company agrees
that the Shares or Series B Preferred Stock so issued will be deemed to have been issued to the Warrantholder as of the close of business on the date on which this Warrant and payment of the Exercise Price are delivered to the Company in accordance
with the terms of this Warrant, notwithstanding that the stock transfer books of the Company may then be closed or certificates representing such Shares or Series B Preferred Stock, as the case may be, may not be actually delivered on such date.
Subject to receipt of the approval by the Company’s stockholders of the Stockholder Proposals, the Company will at all times reserve and keep available, in the case of Common Stock, out of its authorized but unissued Common Stock, and, in the
case of the Series B Preferred Stock, out of its authorized but unissued preferred stock, solely for the purpose of providing for the exercise of this Warrant, the aggregate number of shares of Common Stock and Series B Preferred Stock, as the case
may be, then issuable upon exercise of this Warrant. The Company will use reasonable best efforts to (i) procure, at its sole expense, the listing of (A) the Shares issuable upon exercise of this Warrant, including but not limited to those
Shares issuable pursuant to Section 13 of this Warrant and (B) in the event that the approval by the Company’s stockholders of the Stockholder Proposals has not been received within 120 days of the date of this Warrant, any other
securities issuable upon exercise of this Warrant, in each of cases (A) and (B) subject to issuance or notice of issuance on all stock exchanges on which the Common Stock are then listed or traded and (ii) maintain the listing of such
Shares after issuance. The Company will use commercially reasonable efforts to ensure that the Shares and the Series B Preferred Stock may be issued without violation of any applicable law or regulation or of any requirement of any securities
exchange on which the Shares or Series B Preferred Stock, as the case may be, are listed or traded. 
 5. No Fractional
Shares or Scrip. No fractional shares or scrip representing fractional shares shall be issued upon any exercise of this Warrant. In lieu of any fractional share to which the Warrantholder would otherwise be entitled, the Warrantholder shall be
entitled to receive a cash payment equal to the Market Price of the Common Stock less the pro-rated Exercise Price for such fractional share. 

6. No Rights as Shareholders; Transfer Books. This Warrant does not entitle the Warrantholder to any voting rights or other rights
as a shareholder of the Company prior to the date of exercise hereof. The Company will at no time close its transfer books against transfer of this Warrant in any manner which interferes with the timely exercise of this Warrant. 

7. Charges, Taxes and Expenses. Issuance of certificates for Shares to the Warrantholder upon the exercise of this Warrant shall
be made without charge to the Warrantholder for any issue or transfer tax or other incidental expense in respect of the issuance of such certificates, all of which taxes and expenses shall be paid by the Company. 

8. Transfer/Assignment. This Warrant and all rights hereunder are transferable, in whole or in part, upon the books of the Company
by the registered holder hereof in person or by duly authorized attorney, and a new warrant shall be made and delivered by the Company, of the same tenor and date as this Warrant but registered in the name of the transferee, upon surrender of this
Warrant, duly endorsed, to the office or agency of the Company described in Section 2. All expenses (other than stock transfer taxes) and other charges payable in connection with the 

 

 B-10 

 
preparation, execution and delivery of the new warrants pursuant to this Section 8 shall be paid by the Company. Notwithstanding the foregoing, the Investor shall comply with the transfer
restrictions set forth in the Charter Amendment Proposal (as defined in the Investment Agreement) as if the Charter Amendment Proposal had been approved and effective as of the Closing Date (as defined in the Investment Agreement) until such time as
the Charter Amendment Proposal actually is approved and effective. Following the approval of the Charter Amendment Proposal (or other similar amendment to the Company’s Articles of Incorporation), the Investor shall comply with the transfer
restrictions contained therein. 
 9. Exchange and Registry of Warrant. This Warrant is exchangeable, upon the surrender
hereof by the Warrantholder to the Company, for a new warrant or warrants of like tenor and representing the right to purchase the same aggregate number of Shares. The Company shall maintain a registry showing the name and address of the
Warrantholder as the registered holder of this Warrant. This Warrant may be surrendered for exchange or exercise, in accordance with its terms, at the office of the Company, and the Company shall be entitled to rely in all respects, prior to written
notice to the contrary, upon such registry. 
 10. Loss, Theft, Destruction or Mutilation of Warrant. Upon receipt by the
Company of evidence reasonably satisfactory to it of the loss, theft, destruction or mutilation of this Warrant, and in the case of any such loss, theft or destruction, upon receipt of an indemnity or security reasonably satisfactory to the Company,
or, in the case of any such mutilation, upon surrender and cancellation of this Warrant, the Company shall make and deliver, in lieu of such lost, stolen, destroyed or mutilated Warrant, a new Warrant of like tenor and representing the right to
purchase the same aggregate number of Shares as provided for in such lost, stolen, destroyed or mutilated Warrant. 
 11.
Saturdays, Sundays, Holidays, etc. If the last or appointed day for the taking of any action or the expiration of any right required or granted herein shall not be a Business Day, then such action may be taken or such right may be exercised
on the next succeeding day that is a Business Day. 
 12. Rule 144 Information. The Company covenants that it will use
its reasonable best efforts to timely file all reports and other documents required to be filed by it under the Securities Act and the Exchange Act and the rules and regulations promulgated by the U.S. Securities and Exchange Commission (the
“SEC”) thereunder (or, if the Company is not required to file such reports under the Securities Act or the Exchange Act, it will, upon the request of any Warrantholder, make publicly available such information as necessary to permit
sales pursuant to Rule 144), and it will use reasonable best efforts to take such further action as any Warrantholder may reasonably request, all to the extent required from time to time to enable such holder to sell the Warrants without
registration under the Securities Act within the limitation of the exemptions provided by (i) Rule 144 or Regulation S under the Securities Act, as such rules may be amended from time to time, or (ii) any successor rule or regulation
hereafter adopted by the SEC. Upon the written request of any Warrantholder, the Company will deliver to such Warrantholder a written statement that it has complied with such requirements. 

13. Adjustments and Other Rights. The Exercise Price and the number of Shares issuable upon exercise of this Warrant shall be
subject to adjustment from time to time as 
  

 B-11 

 
follows; provided, that no single event shall be subject to adjustment under more than one sub-section of this Section 13 so as to result in duplication; provided,
further, that, notwithstanding any provision of this Warrant to the contrary, any adjustment shall be made to the extent (and only to the extent) that such adjustment would not cause or result in any Warrantholder and its Affiliates,
collectively, being in violation of the Ownership Limit (excluding for purposes of this calculation any reduction in the percentage of Voting Securities or other capital stock of the Company such Warrantholder and its Affiliates so owns, controls or
has the power to vote resulting from transfers by the Investor and its Affiliates of Securities purchased by the Investor pursuant to the Investment Agreement) or any other applicable law, regulation or rule of any governmental authority or
self-regulatory organization. Any adjustment (or portion thereof) prohibited pursuant to the foregoing proviso shall be postponed and implemented on the first date on which such implementation would not result in the condition described in such
proviso.  
 (A) Common Stock Issued at Less than the Applicable Price. (i) If the Company issues or sells,
or agrees to issue or sell, any Common Stock or other securities that are convertible into or exchangeable or exercisable for or otherwise linked to Common Stock, other than Excluded Stock, for consideration per share less than the Applicable Price
then the Exercise Price in effect immediately prior to each such issuance or sale will immediately (except as provided below) be reduced to the price determined by multiplying the Exercise Price in effect immediately prior to such issuance or sale
by a fraction, (x) the numerator of which shall be (1) the number of shares of Common Stock outstanding immediately prior to such issuance or sale (including, to the extent applicable, the number of shares of Common Stock into which any
shares of Series B Preferred Stock and Series D Preferred Stock then outstanding are convertible and into which this Warrant and the Treasury Warrant are exercisable) plus (2) the number of shares of Common Stock which the aggregate
consideration received by the Company for the total number of such additional shares of Common Stock so issued or sold would purchase at the Applicable Price, and (y) the denominator of which shall be the number of shares of Common Stock
outstanding immediately after such issuance or sale (including, to the extent applicable, the number of shares of Common Stock into which any shares of Series B Preferred Stock and Series D Preferred Stock then outstanding are convertible and into
which this Warrant and the Treasury Warrant are exercisable). In such event, the number of shares of Common Stock issuable upon the exercise of this Warrant shall be increased to the number obtained by dividing (x) the product of (1) the
number of Shares issuable upon the exercise of this Warrant before such adjustment and (2) the Exercise Price in effect immediately prior to the issuance or sale giving rise to this adjustment, by (y) the new Exercise Price determined in
accordance with the immediately preceding sentence. For the avoidance of doubt, no increase in the Exercise Price or reduction in the number of Shares issuable upon exercise of this Warrant shall be made pursuant to this sub-clause (i) of this
Section 13(A). 
 (ii) For the purposes of any adjustment of the Exercise Price and the number of Shares issuable upon
exercise of this Warrant pursuant to this Section 13(A), the following provisions shall be applicable: 

(1) In the case of the issuance or sale of equity or equity-linked securities for cash, the amount of the consideration
received by the Company shall be deemed to be the amount of the gross cash proceeds received by the Company for such securities before deducting therefrom any discounts or commissions allowed, paid or incurred by the

  

 B-12 

 
Company for any underwriting or otherwise in connection with the issuance and sale thereof. 

(2) In the case of the issuance or sale of equity or equity-linked securities (otherwise than upon the conversion of
shares of Capital Stock or other securities of the Company) for a consideration in whole or in part other than cash, including securities acquired in exchange therefor (other than securities by their terms so exchangeable), the consideration other
than cash shall be deemed to be the Fair Market Value, before deducting therefrom any discounts or commissions allowed, paid or incurred by the Company for any underwriting or otherwise in connection with the issuance and sale thereof. 

(3) In the case of the issuance of (i) options, warrants or other rights to purchase or acquire equity or
equity-linked securities (whether or not at the time exercisable) or (ii) securities by their terms convertible into or exchangeable for equity or equity-linked securities (whether or not at the time so convertible or exchangeable) or options,
warrants or rights to purchase such convertible or exchangeable securities (whether or not at the time exercisable): 

(a) The aggregate maximum number of shares of securities deliverable upon exercise of such options, warrants or other
rights to purchase or acquire equity or equity-linked securities shall be deemed to have been issued at the time such options, warrants or rights are issued and for a consideration equal to the consideration (determined in the manner provided in
Section 13(A)(i) and (ii)), if any, received by the Company upon the issuance or sale of such options, warrants or rights plus the minimum purchase price provided in such options, warrants or rights for the equity or equity-linked securities
covered thereby. 
 (b) The aggregate maximum number of shares of equity or equity-linked securities deliverable
upon conversion of or in exchange for any such convertible or exchangeable securities, or upon the exercise of options, warrants or other rights to purchase or acquire such convertible or exchangeable securities and the subsequent conversion or
exchange thereof, shall be deemed to have been issued at the time such securities were issued or such options, warrants or rights were issued and for a consideration equal to the consideration, if any, received by the Company for any such securities
and related options, warrants or rights (excluding any cash received on account of accrued interest or accrued dividends), plus the additional consideration (in each case, determined in the manner provided in Section 13(A)(i) and (ii)), if any,
to be received by the Company upon the conversion or exchange of such securities, or upon the exercise of any related options, warrants or rights to purchase or acquire such convertible or exchangeable securities and the subsequent conversion or
exchange thereof. 
  

 B-13 

 (c) On any change in the number of shares of equity or equity-linked
securities deliverable upon exercise of any such options, warrants or rights or conversion or exchange of such convertible or exchangeable securities or any change in the consideration to be received by the Company upon such exercise, conversion or
exchange, but excluding changes resulting from the anti-dilution provisions thereof (to the extent comparable to the anti-dilution provisions contained herein), the Exercise Price and the number of Shares issuable upon exercise of this Warrant as
then in effect shall forthwith be readjusted to such Exercise Price and number of Shares as would have been obtained had an adjustment been made upon the issuance or sale of such options, warrants or rights not exercised prior to such change, or of
such convertible or exchangeable securities not converted or exchanged prior to such change, upon the basis of such change. 

(d) If the Exercise Price and the number of Shares issuable upon exercise of this Warrant shall have been adjusted upon
the issuance or sale of any such options, warrants, rights or convertible or exchangeable securities, no further adjustment of the Exercise Price and the number of Shares issuable upon exercise of this Warrant shall be made for the actual issuance
of Common Stock upon the exercise, conversion or exchange thereof. 
 (B) Stock Splits, Subdivisions, Reclassifications or
Combinations. If the Company shall (i) declare a dividend or make a distribution on its Common Stock in shares of Common Stock, (ii) subdivide or reclassify the outstanding shares of Common Stock into a greater number of shares, or
(iii) combine or reclassify the outstanding Common Stock into a smaller number of shares, the number of Shares issuable upon exercise of this Warrant at the time of the record date for such dividend or distribution or the effective date of such
subdivision, combination or reclassification shall be proportionately adjusted so that the Warrantholder after such date shall be entitled to purchase the number of shares of Common Stock which such holder would have owned or been entitled to
receive after such date had this Warrant been exercised immediately prior to such date. In such event, the Exercise Price in effect at the time of the record date for such dividend or distribution or the effective date of such subdivision,
combination or reclassification shall be adjusted to the number obtained by dividing (x) the product of (1) the number of Shares issuable upon the exercise of this Warrant before such adjustment and (2) the Exercise Price in effect
immediately prior to the record or effective date, as the case may be, for such dividend, distribution, subdivision, combination or reclassification giving rise to this adjustment by (y) the new number of Shares issuable upon exercise of this
Warrant determined pursuant to the immediately preceding sentence. 
 (C) Other Distributions. In case the Company shall
fix a record date for the making of a distribution to all holders of shares of its Common Stock (i) of shares of any class other than its Common Stock, (ii) of evidence of indebtedness of the Company or any Subsidiary, (iii) of assets
or cash (excluding Ordinary Cash Dividends, and dividends or distributions referred to in Section 13(B)), or (iv) of rights or warrants (other than in connection with the adoption of a shareholder rights plan), in each such case, the
Exercise Price in effect prior thereto shall be 
  

 B-14 

 
reduced immediately thereafter to the price determined by dividing (x) an amount equal to the difference resulting from (1) the number of shares of Common Stock outstanding on such
record date multiplied by the Exercise Price per Share on such record date, less (2) the Fair Market Value of said shares or evidences of indebtedness or assets or rights or warrants to be so distributed, by (y) the number of shares of
Common Stock outstanding on such record date; such adjustment shall be made successively whenever such a record date is fixed. In such event, the number of shares of Common Stock issuable upon the exercise of this Warrant shall be increased to the
number obtained by dividing (x) the product of (1) the number of Shares issuable upon the exercise of this Warrant before such adjustment, and (2) the Exercise Price in effect immediately prior to the issuance giving rise to this
adjustment by (y) the new Exercise Price determined in accordance with the immediately preceding sentence. In the event that such distribution is not so made, the Exercise Price and the number of Shares issuable upon exercise of this Warrant
then in effect shall be readjusted, effective as of the date when the Board determines not to distribute such shares, evidences of indebtedness, assets, rights or warrants, as the case may be, to the Exercise Price that would then be in effect and
the number of Shares that would then be issuable upon exercise of this Warrant if such record date had not been fixed. 
 (D)
Certain Repurchases of Common Stock. In case the Company effects a Pro Rata Repurchase of Common Stock, then the Exercise Price shall be reduced to the price determined by multiplying the Exercise Price in effect immediately prior to the
effective date of such Pro Rata Repurchase by a fraction of which the numerator shall be (i) the product of (x) the number of shares of Common Stock outstanding immediately before such Pro Rata Repurchase and (y) the Market Price of a
share of Common Stock on the trading day immediately preceding the first public announcement by the Company or any of its Affiliates of the intent to effect such Pro Rata Repurchase, minus (ii) the aggregate purchase price of the Pro Rata
Repurchase, and of which the denominator shall be the product of (i) the number of shares of Common Stock outstanding immediately prior to such Pro Rata Repurchase minus the number of shares of Common Stock so repurchased and (ii) the
Market Price per share of Common Stock on the trading day immediately preceding the first public announcement of such Pro Rata Repurchase. In such event, the number of shares of Common Stock issuable upon the exercise of this Warrant shall be
increased to the number obtained by dividing (x) the product of (1) the number of Shares issuable upon the exercise of this Warrant before such adjustment, and (2) the Exercise Price in effect immediately prior to the Pro Rata
Repurchase giving rise to this adjustment by (y) the new Exercise Price determined in accordance with the immediately preceding sentence. 

(E) Business Combinations. In case of any Business Combination or reclassification of Common Stock (other than a reclassification
of Common Stock referred to in Section 13(B)), any Shares (assuming, for these purposes, that the Stockholder Approval shall have been obtained) issued or issuable upon exercise of this Warrant after the date of such Business Combination or
reclassification shall be exchangeable for the number of shares of stock or other securities or property (including cash) to which the Common Stock issuable (at the time of such Business Combination or reclassification) upon exercise of this Warrant
immediately prior to the consummation of such Business Combination or reclassification would have been entitled upon consummation of such Business Combination or reclassification; and in any such case, if necessary, the provisions set forth herein
with respect to the rights and interests thereafter of the Warrantholder shall be appropriately adjusted so as to be applicable, as nearly as may reasonably be, to any shares of stock or other securities or property thereafter deliverable on the
exercise of 
  

 B-15 

 
this Warrant. In determining the kind and amount of stock, securities or the property receivable upon consummation of such Business Combination, if the holders of Common Stock have the right to
elect the kind or amount of consideration receivable upon consummation of such Business Combination, then the Warrantholder shall have the right to make a similar election upon exercise of this Warrant with respect to the number of shares of stock
or other securities or property which the Warrantholder will receive upon exercise of this Warrant. 
 (F) Rounding of
Calculations; Minimum Adjustments. All calculations under this Section 13 shall be made to the nearest one-tenth (1/10th) of a cent. Any provision of this Section 13 to the contrary notwithstanding, no adjustment in the Exercise
Price or the number of Shares into which this Warrant is exercisable shall be made if the amount of such adjustment would be less than $0.01, but any such amount shall be carried forward and an adjustment with respect thereto shall be made at the
time of and together with any subsequent adjustment which, together with such amount and any other amount or amounts so carried forward, shall aggregate $0.01 or more. 

(G) Timing of Issuance of Additional Common Stock Upon Certain Adjustments. In any case in which the provisions of this
Section 13 shall require that an adjustment shall become effective immediately after a record date for an event, the Company may defer until the occurrence of such event (i) issuing to the Warrantholder of this Warrant exercised after such
record date and before the occurrence of such event the additional shares of Common Stock issuable upon such exercise by reason of the adjustment required by such event over and above the shares of Common Stock issuable upon such exercise before
giving effect to such adjustment and (ii) paying to such Warrantholder any amount of cash in lieu of a fractional share of Common Stock; provided, however, that the Company upon request shall deliver to such Warrantholder a due
bill or other appropriate instrument evidencing such Warrantholder’s right to receive such additional shares, and such cash, upon the occurrence of the event requiring such adjustment. 

(H) Adjustment for Unspecified Actions. If the Company takes any action affecting the Common Stock or the Common Equivalent
Preferred Stock, other than actions described in this Section 13, which in the reasonable judgment of the Board would adversely affect the exercise rights of the Warrantholder, the Exercise Price for the Warrant and/or the number of Shares
received upon exercise of the Warrant shall be adjusted for the Warrantholder’s benefit (the “Adjustment”), to the extent permitted by law, in such manner, and at such time, as the Board after consultation with the
Warrantholder shall reasonably determine to be equitable in the circumstances. In the event that an Adjustment or the Board’s failure to make an Adjustment is disputed (each, a “Disputed Adjustment Matter”), such Disputed
Adjustment Matter shall be resolved through the Appraisal Procedure mutatis mutandis. 
 (I) Statement Regarding
Adjustments. Whenever the Exercise Price or the number of Shares into which this Warrant is exercisable shall be adjusted as provided in Section 13, the Company shall forthwith file at the principal office of the Company a statement showing
in reasonable detail the facts requiring such adjustment and the Exercise Price that shall be in effect and the number of Shares into which this Warrant shall be exercisable after such adjustment, and the Company shall also cause a copy of such
statement to be sent by mail, first class postage prepaid, to each Warrantholder at the address appearing in the Company’s records. 
  

 B-16 

 (J) Notice of Adjustment Event. In the event that the Company shall propose to take
any action of the type described in this Section 13 (but only if the action of the type described in this Section 13 would result in an adjustment in the Exercise Price or the number of Shares into which this Warrant is exercisable or a
change in the type of securities or property to be delivered upon exercise of this Warrant), the Company shall give notice to the Warrantholder, in the manner set forth in Section 13(I), which notice shall specify the record date, if any, with
respect to any such action and the approximate date on which such action is to take place. Such notice shall also set forth the facts with respect thereto as shall be reasonably necessary to indicate the effect on the Exercise Price and the number,
kind or class of shares or other securities or property which shall be deliverable upon exercise of this Warrant. In the case of any action which would require the fixing of a record date, such notice shall be given at least 10 days prior to the
date so fixed, and in case of all other action, such notice shall be given at least 15 days prior to the taking of such proposed action. Failure to give such notice, or any defect therein, shall not affect the legality or validity of any such
action. 
 (K) No Impairment. The Company will not, by amendment of its certificate of incorporation or through any
reorganization, transfer of assets, consolidation, merger, dissolution, issue or sale of securities or any other voluntary action, avoid or seek to avoid the observance or performance of any of the terms to be observed or performed hereunder by the
Company, but will at all times in good faith assist in the carrying out of all the provisions of this Warrant and in taking of all such action as may be necessary or appropriate in order to protect the rights of the Warrantholder. 

(L) Proceedings Prior to Any Action Requiring Adjustment. As a condition precedent to the taking of any action which would require
an adjustment pursuant to this Section 13, the Company shall take any action which may be necessary, including obtaining regulatory, NASDAQ or stockholder approvals or exemptions, in order that the Company may thereafter validly and legally
issue as fully paid and nonassessable all shares of Common Stock that the Warrantholder is entitled to receive upon exercise of this Warrant pursuant to this Section 13. 

(M) Adjustment Rules. Any adjustments pursuant to this Section 13 shall be made successively whenever an event referred to
herein shall occur. If an adjustment in Exercise Price made hereunder would reduce the Exercise Price to an amount below par value of the Common Stock, then such adjustment in Exercise Price made hereunder shall reduce the Exercise Price to the par
value of the Common Stock. 
 (N) Notwithstanding anything to contrary set forth herein, the Exercise Price and the number of
Shares issuable upon exercise of this Warrant shall also be subject to adjustment from time to time as set forth in this Section 13 as applied to any Common Equivalent Preferred Stock, mutatis mutandis. 

14. Exercise for Series B Preferred Stock. Prior to the receipt of all necessary approvals of the Company’s stockholders of
the Stockholder Proposals, the Warrantholder may exercise all or any part of this Warrant for a number of shares of Series B Preferred Stock that would be convertible in accordance with the terms thereof into that number of shares of Common Stock it
would otherwise be entitled to receive in accordance with Section 3. The 
  

 B-17 

 
Company will at all times reserve and keep available, out of its authorized preferred stock, a sufficient number of shares of preferred stock for the purpose of providing for the exchange of this
Warrant for shares of Series B Preferred Stock. It is understood and agreed that, in lieu of delivering shares of Series B Preferred Stock pursuant to this Section 14, the Company may deliver depositary shares for shares of a new series of
preferred stock having rights, preferences and privileges identical to the Series B Preferred Stock. 
 15. Contest and
Appraisal Rights. Upon each determination of Market Price or Fair Market Value, as the case may be, hereunder, the Company shall promptly give notice thereof to the Warrantholder, setting forth in reasonable detail the calculation of such Market
Price or Fair Market Value, and the method and basis of determination thereof, as the case may be. If the Warrantholder (or if there is more than one Warrantholder, a majority in interest of Warrantholders) shall disagree with such determination and
shall, by notice to the Company given within 15 days after the Company’s notice of such determination, elect to dispute such determination, such dispute shall be resolved in accordance with this Section 15. In the event that a
determination of Market Price, or Fair Market Value (if such determination solely involves Market Price), is disputed, such dispute shall be submitted, at the Company’s expense, to a NASDAQ member firm selected by the Company and acceptable to
the Warrantholder, whose determination of Market Price or Fair Market Value, as the case may be, shall be binding on the Company and the Warrantholder. In the event that a determination of Fair Market Value, other than a determination solely
involving Market Price, is disputed, such dispute shall be resolved through the Appraisal Procedure. 
 16. Governing
Law. This Warrant shall be binding upon any successors or assigns of the Company. This Warrant shall constitute a contract under the laws of the State of New York and for all purposes shall be construed in accordance with and governed by the
laws of the State of New York applicable to agreements made and to be performed entirely within such state. 
 17.
Attorneys’ Fees. In any litigation, arbitration or court proceeding between the Company and the Warrantholder as the holder of this Warrant relating hereto, the prevailing party shall be entitled to reasonable attorneys’ fees and
expenses incurred in enforcing this Warrant. 
 18. Amendments. This Warrant may be amended and the observance of any
term of this Warrant may be waived only, in the case of an amendment, with the written consent of the Company and the Warrantholder, or in the case of a waiver, by the party against whom the waiver is to be effective. 

19. Notices. All notices hereunder shall be in writing and shall be effective (A) on the day on which delivered if delivered
personally or transmitted by telex or telegram or telecopier with evidence of receipt, (B) one Business Day after the date on which the same is delivered to a nationally recognized overnight courier service with evidence of receipt, or
(C) five Business Days after the date on which the same is deposited, postage prepaid, in the U.S. mail, sent by certified or registered mail, return receipt requested, and addressed to the party to be notified at the address indicated below
for the Company, or at the address for the Warrantholder set forth in the registry maintained by the Company pursuant to Section 9, or at 

 

 B-18 

 
such other address and/or telecopy or telex number and/or to the attention of such other person as the Company or the Warrantholder may designate by ten-day advance written notice. 

If to the Investor: 

C/o Thomas H. Lee Partners, L.P. 

100 Federal Street,
35th Floor 

Boston, MA 02110 

Attn: Thomas M. Hagerty 

Facsimile: (617) 227-3514 

with a copy to (which copy alone shall not constitute notice): 

Weil, Gotshal & Manges LLP 

100 Federal Street,
34th Floor 

Boston, MA 02110 

Attn: James Westra, Esq. and Marilyn French, Esq. 

Facsimile: (617) 772-8333 

If to the Company: 

Sterling Financial Corporation 

111 North Wall Street 

Spokane, WA 99201 

Attn: J. Gregory Seibly 

Facsimile: (509) 358-6191 

with a copy to (which copy alone shall not constitute notice): 

Davis Polk & Wardwell LLP 

450 Lexington Avenue 

New York, New York 10017 

Attn: John Douglas 

Facsimile: (212) 701-5145 

20. Prohibited Actions. The Company agrees that it will not take any action which would entitle the Warrantholder to an adjustment
of the Exercise Price if the total number of shares of Common Stock issuable after such action upon exercise of this Warrant, together with all shares of Common Stock then outstanding and all shares of Common Stock then issuable upon the exercise of
all outstanding options, warrants, conversion and other rights, would exceed the total number of shares of Common Stock then authorized by its certificate of incorporation. 

21. Entire Agreement. This Warrant and the forms attached hereto, and the Investment Agreement, contain the entire agreement
between the parties with respect to the subject matter hereof and supersede all prior and contemporaneous arrangements or undertakings with respect thereto. 

[Remainder of page intentionally left blank] 
  

 B-19 

 IN WITNESS WHEREOF, the Company has caused this Warrant to be executed by a duly authorized
officer. 
 Dated: [                    ]

  

			
	STERLING FINANCIAL CORPORATION
		
	By:	 	  

		 	Name:
		 	Title:

 Attest: 

 

			
	By:	 	  

		 	Name:
		 	Title:
	
	Acknowledged and Agreed:
	
	[INVESTOR]
		
	By:	 	  

		 	Name:
		 	Title:

 [Signature Page to Warrant] 

  

 B-20 

 [Form Of Notice Of Exercise] 

Date:                     

  

	TO:	Sterling Financial Corporation 

  

	RE:	Election to Subscribe for and Purchase Common Stock 

The undersigned, pursuant to the provisions set forth in the attached Warrant, hereby agrees to subscribe for and purchase the number of
shares of the Common Stock set forth below covered by such Warrant. The undersigned, in accordance with Section 3 of the Warrant, hereby agrees to pay the aggregate Exercise Price for such shares of Common Stock in the manner set forth below. A
new warrant evidencing the remaining shares of Common Stock covered by such Warrant, but not yet subscribed for and purchased, should be issued in the name set forth below. If the new warrant is being transferred, an opinion of counsel is attached
hereto with respect to the transfer of such warrant. 
  

					
	Number of Shares of Common Stock:	 	  
	 	
			
	Method of Payment of Exercise Price:	 	  
	 	
			
	Name and Address of Person to be	 		 	
	Issued New Warrant:	 	  
	 	

  

			
	Holder:	 	  

		
	By:	 	  

		
	Name:	 	  

		
	Title:	 	  

[Form of Notice of Exercise] 
  

 B-21 

 EXHIBIT C TO INVESTMENT AGREEMENT 

[Form of Opinion] 
  

 C-1 

 EXHIBIT D TO INVESTMENT AGREEMENT 

ARTICLES OF AMENDMENT 

OF 
 RESTATED

 ARTICLES OF INCORPORATION 

OF STERLING FINANCIAL CORPORATION 

The undersigned officer of Sterling Financial Corporation (the “Corporation”), on behalf of the Corporation, does hereby
certify that the following correctly sets forth an amendment to the Corporation’s Restated Articles of Incorporation. 
 A.
The name of this Corporation is Sterling Financial Corporation. 
 B. The Restated Articles of Incorporation are hereby amended
as follows: 
 1. The following text is hereby added as Article [—] of the
Restated Articles of Incorporation of the Corporation: 
 ARTICLE [—]

 Ownership Limit 

Section 1. Certain Definitions. For purposes of this Article [—], the following terms shall
have the meanings indicated: 
 “affiliate” shall have the meanings set forth in Rule 12b-2 under the 1934 Act;

 “Code” means the Internal Revenue Code of 1986, as amended from time to time; 

“Entity” means an “entity” as defined in Treasury Regulation § 1.382-3(a); 

“Expiration Date” means
[—],1
 unless extended in accordance with Section 2(c) of this Article
[—]; 
 “Five-Percent Shareholder” means an individual or
Entity whose Ownership Interest Percentage is greater than or equal to 5%; 
 “Option” shall have the meaning
set forth in Treasury Regulation § 1.382-4. 
  

	1
	Date three years from closing of recap transaction. 

 “Ownership Interest Percentage” means, as of any determination date, the
percentage of the Corporation’s issued and outstanding Stock (not including treasury shares or shares subject to vesting in connection with compensatory arrangements with the Corporation) that an individual or Entity would be treated as owning
for purposes of Section 382 of the Code, applying the following additional rules: (i) in the event that such individual or Entity, or any affiliate of such individual or Entity, owns or is party to an Option with respect to Stock
(including, for the avoidance of doubt, any cash-settled derivative contract that gives such individual or Entity a “long” exposure with respect to Stock), such individual, Entity or affiliate should be treated as owning an amount of Stock
equal to the number of shares referenced by such “option,” (ii) for purposes of applying Treasury Regulation § 1.382-2T(k)(2), the Corporation shall be treated as having “actual knowledge” of the beneficial ownership of
all outstanding shares of Stock that would be attributed to any such individual or Entity, (iii) Section 382(l)(3)(A)(ii)(II) of the Code shall not apply and (iv) any additional rules the Board of Directors may establish from
time to time; 
 “Permissible Transferee” means a transferee that, immediately prior to any transfer, has an
Ownership Interest Percentage equal to (i) zero percentage points plus (ii) any percentage attributable to a prior transfer from, or attribution of ownership from, a Strategic Investor or another Permissible Transferee. 

“Person” means any individual, firm, corporation, partnership, trust association, limited liability company, limited
liability partnership, governmental entity or other entity and shall include any successor (by merger or otherwise) of any such entity. 

“Prohibited  Transfer”  means any purported transfer of Stock to the extent that such transfer is
prohibited under this Article  [—]; 
 “Strategic
Investor” means any Person that is identified as a Strategic Investor in an investment agreement between such Person and the Company. 

“Stock” means (i) shares of Common Stock, (ii) shares of Preferred Stock (other than shares of any class of
Preferred Stock described in Section 1504(a)(4) of the Code), which shall include for the avoidance of doubt Convertible Participating Voting Preferred Stock, Series B and Convertible Participating Voting Preferred Stock, Series D, and
(iv) any other interest (other than any “option” within the meaning of Treasury Regulation § 1.382-4) that would be treated as “stock” of the Corporation pursuant to Treasury Regulation § 1.382-2T(f)(18).

 “Tax Benefit” means the net operating loss carryovers, capital loss carryovers, general business credit
carryovers, alternative minimum tax credit carryovers and foreign tax credit carryovers, as well as any potential loss or deduction attributable to an existing “net unrealized built-in loss” within the meaning of Section 382 of the
Code, of the Corporation or any direct or indirect subsidiary thereof; 
 “transfer” refers to any means of
conveying record, beneficial or tax ownership (applying, in the case of tax ownership, applicable attribution rules for purposes of 

 

 D-2 

 
Section 382 of the Code) of Stock, whether such means is direct or indirect, voluntary or involuntary, and “transferee” means any Person to whom any such security is
transferred; and 
 “U.S. Government” means any of (i) the federal government of the United States of
America, (ii) any instrumentality or agency of the federal government of the United States of America and (iii) any Person wholly-owned by, or the sole beneficiary of which is, the federal government of the United States or any
instrumentality or agency thereof. 
 Section 2. Transfer Restrictions. Solely for the purpose of permitting the
utilization of the Tax Benefits to which the Corporation (or any other member of the consolidated group of which the Corporation is common parent for federal income tax purposes) is or may be entitled pursuant to the Code and the regulations
thereunder, the following restrictions shall apply until the Expiration Date, unless the Board of Directors has waived such restrictions in respect of all transfers in accordance with Section 7 below: 

(a) From and after
[—],2
 except as otherwise provided in this subparagraph (a), no individual or Entity (including for the avoidance
of doubt the U.S. Government) other than the Corporation shall, except as provided in Section 3(a) below, transfer to any individual or Entity any direct or indirect interest in any Stock or Options to acquire stock to the extent that such
transfer, if effective, would cause the Ownership Interest Percentage of the transferee or any other Entity or individual to increase to 4.95 percent (4.95%) or above, or from 4.95% or above to a greater Ownership Interest Percentage. Nothing
in this Article [—] shall preclude the settlement of any transaction with respect to the Stock entered into through the facilities of the NASDAQ Stock Market or any other national securities
exchange; provided, however, that the securities involved in such transaction, and the Purported Acquiror (as defined below) thereof, shall remain subject to the provisions of this Article [—]
in respect of such transaction. Unless a transferor has actual knowledge that a transfer by it is prohibited by this subparagraph (a), (i) such transferor shall have no liability whatsoever to the Corporation in respect of any losses or damages
suffered by the Corporation as a result of such transfer and the Corporation shall have no cause of action or rights against such transferor in respect of such losses or damages, (ii) such transferor shall have no liability whatsoever to the
respective transferee in respect of any losses or damages suffered by such transferee by virtue of the operation of this Article [—] and (iii) such transferee shall have no cause of action or
rights against the transferor in respect of such losses or damages, including, without limitation, for breach of warranty of the transferor implied by applicable law as to the effectiveness and rightfulness of the transfer. 

(b) From and after
[—],3
 except as otherwise provided in this subparagraph (b), no Five-Percent Shareholder shall, except as provided
in Section 3(b) below, transfer to any individual or Entity any direct or indirect interest in any Stock or Options to acquire stock owned by such Five-Percent Shareholder without the prior approval of the Board of 

 

	2
	Effective date of this amendment. 

	3
	Effective date of this amendment. 

  

 D-3 

 
Directors. Nothing in this Article [—] shall preclude the settlement of any transaction with respect to the Stock entered into through the
facilities of the NASDAQ Stock Market or any other national securities exchange; provided, however, that the transferor of Stock in violation of the preceding sentence shall remain subject to the provisions of this Article
[—] in respect of such transaction and liable to the Corporation for any damages incurred as a result of such transfer. Unless a transferee has actual knowledge that a transfer to it is prohibited by
this subparagraph (b), such transferee shall have no liability whatsoever to the Corporation or such Five-Percent Shareholder in respect of any losses or damages suffered by the Corporation or such Five-Percent Shareholder as a result of such
transfer and neither the Corporation nor such Five-Percent Shareholder shall have any cause of action or rights against such transferee in respect of such losses or damages. Unless a Five-Percent Shareholder has actual knowledge (after commercially
reasonable investigation) that a transfer by it is prohibited by this subparagraph (b), (i) such Five-Percent Shareholder shall have no liability whatsoever to the Corporation in respect of any losses or damages suffered by the Corporation as a
result of such transfer and the Corporation shall have no cause of action or rights against such Five-Percent Shareholder in respect of such losses or damages, (ii) such Five-Percent Shareholder shall have no liability whatsoever to the
respective transferee in respect of any losses or damages suffered by such transferee by virtue of the operation of this Article [—] and (iii) such transferee shall have no cause of action or
rights against the Five-Percent Shareholder in respect of such losses or damages, including, without limitation, for breach of warranty of the Five-Percent Shareholder implied by applicable law as to the effectiveness and rightfulness of the
transfer. Notwithstanding the foregoing, the transfer restrictions described in this subparagraph (b) shall not apply to the transfer of any direct or indirect interest in any Stock by the U.S. Government, provided that such transfer is
made to a direct “public group” of the Corporation, as defined in Treasury Regulation Section 1.382-2T(f)(13). 

(c) The Expiration Date is subject to extension for up to three (3) additional years (i.e., until
[—]) if the Board of Directors determines in its reasonable discretion that the extension of the transfer restrictions provided in subparagraphs (a) and (b) of this Section 2 is
necessary to preserve the value of the Tax Benefits to which the Corporation (or any other member of the consolidated group of which the Corporation is common parent for federal income tax purposes) is or may be entitled pursuant to the Code and the
regulations thereunder. 
 Section 3. Permitted Transfers. 

(a) Any transfer that would otherwise be prohibited pursuant to Section 2(a) of this Article
[—] shall nonetheless be permitted if (i) such transfer is made by a Strategic Investor or a Permissible Transferee to a Permissible Transferee, (ii) prior to such transfer being
consummated (or, in the case of an involuntary transfer, as soon as practicable after the transaction is consummated), the Board of Directors, in its sole discretion, approves the transfer (such approval may relate to a transfer or series of
identified transfers), (iii) such transfer is pursuant to any transaction, including, but not limited to, a merger or consolidation, in which all holders of Stock receive, or are offered the same opportunity to receive, cash or other
consideration for all such Stock, and upon the consummation of 
  

 D-4 

 
which the acquiror will own at least a majority of the outstanding shares of Stock, (iv) such transfer is pursuant to the exercise by a Strategic Investor or a Permissible Transferee of a
warrant issued to a Strategic Investor pursuant to an investment agreement to which the Corporation is a party or (v) such transfer is a transfer by the Corporation to an underwriter or placement agent for distribution in a public offering,
whether registered or conducted pursuant to an exception from registration; provided, however, that transfers by such underwriter or placement agent to purchasers in such offering remain subject to this Article
[—]. In determining whether to approve a proposed transfer pursuant to (ii) of this subparagraph (a), the Board of Directors may, in its discretion, require (at the expense of the transferor
and/or transferee) an opinion of counsel selected by the Board of Directors that the transfer will not result in the application of any limitation pursuant to Section 382 of the Code on the use of the Tax Benefits. 

(b) Any transfer that would otherwise be prohibited pursuant to Section 2(b) of this Article
[—] shall nonetheless be permitted if (i) such transfer is made by a Strategic Investor or a Permissible Transferee, (ii) prior to such transfer being consummated (or, in the case of an
involuntary transfer, as soon as practicable after the transaction is consummated), the Board of Directors, in its discretion, approves the transfer (such approval may relate to a transfer or series of identified transfers) or (iii) such
transfer is pursuant to any transaction, including, but not limited to, a merger or consolidation, in which all holders of Stock receive, or are offered the same opportunity to receive, cash or other consideration for all such Stock, and upon the
consummation of which the acquiror will own at least a majority of the outstanding shares of Stock. In determining whether to approve a proposed transfer pursuant to (ii) of this subparagraph (b), the Board of Directors may, in its discretion,
require (at the expense of the transferor and/or transferee) an opinion of counsel selected by the Board of Directors that the transfer will not result in the application of any limitation pursuant to Section 382 of the Code on the use of the
Tax Benefits. In the case of a proposed transfer by a Five-Percent Shareholder pursuant to this subparagraph (b), the Board of Directors will not unreasonably withhold approval of a proposed transfer that is structured in a manner that the Board of
Directors determines, in its reasonable judgment, minimizes the “owner shift” required to be taken into account for purposes of Section 382 of the Code as a result of such transfer and any subsequent transfers by the transferor and
its affiliates. In assessing whether proposed transfers are so structured, the Board of Directors will apply the Treasury Regulations under Section 382 of the Code, including but not limited to Treasury Regulations Sections 1.382-2T(g)(5) and
1.382-2T(k). For the avoidance of doubt, the Board of Directors may withhold approval of any proposed transfer that it determines will result in a material risk that any limitation pursuant to Section 382 of the Code will be imposed on the
utilization of the Tax Benefits. 
 (c) The Board of Directors may exercise the authority granted by this Section 3 through
duly authorized officers or agents of the Corporation. The Board of Directors may establish a committee to determine whether to approve a proposed transfer or for any other purpose relating to this Article
[—]. As a condition to the Corporation’s consideration of a request to approve a proposed transfer, the Board of Directors may require the transferor and/or transferee to reimburse or agree to
reimburse the 
  

 D-5 

 
Corporation, on demand, for all costs and expenses incurred by the Corporation with respect to such proposed transfer, including, without limitation, the Corporation’s costs and expenses
incurred in determining whether to authorize such proposed transfer. 
 Section 4. Treatment of Prohibited
Transfers. Unless the transfer is permitted as provided in Section 3 of this Article [—], any attempted transfer of Stock or Options in excess of the Stock or Options that could be
transferred to the transferee without restriction under Section 2(a) of this Article [—] shall not be effective to transfer ownership of such excess Stock or Options (the “Prohibited
Shares”) to the purported acquiror thereof (the “Purported Acquiror”), who shall not be entitled to any rights as a shareholder of the Corporation with respect to such Prohibited Shares (including, without limitation, the
right to vote or to receive dividends with respect thereto). 
 (a) Upon demand by the Corporation, the Purported Acquiror shall
transfer any certificate or other evidence of purported ownership of Prohibited Shares within the Purported Acquiror’s possession or control, along with any dividends or other distributions paid by the Corporation with respect to any Prohibited
Shares that were received by the Purported Acquiror (the “Prohibited Distributions”), to such Person as the Corporation shall designate to act as transfer agent for such Prohibited Shares (the “Agent”). If the
Purported Acquiror has sold any Prohibited Shares to an unrelated party in an arm’s-length transaction after purportedly acquiring them, the Purported Acquiror shall be deemed to have sold such Prohibited Shares for the Agent, and in lieu of
transferring such Prohibited Shares (and Prohibited Distributions with respect thereto) to the Agent shall transfer to the Agent any such Prohibited Distributions and the proceeds of such sale (the “Resale Proceeds”) except to the
extent that the Agent grants written permission to the Purported Acquiror to retain a portion of such Resale Proceeds not exceeding the amount that would have been payable by the Agent to the Purported Acquiror pursuant to subparagraph
(b) below if such Prohibited Shares had been sold by the Agent rather than by the Purported Acquiror. Any purported transfer of Prohibited Shares by the Purported Acquiror other than a transfer described in one of the first two sentences of
this subparagraph (a) shall not be effective to transfer any ownership of such Prohibited Shares. 
 (b) The Agent shall
sell in one or more arm’s-length transactions (through the NASDAQ Stock Exchange, if possible) any Prohibited Shares transferred to the Agent by the Purported Acquiror, provided, however, that any such sale must not constitute a
Prohibited Transfer and provided further, that the Agent shall effect such sale or sales in an orderly fashion and shall not be required to effect any such sale within any specific time frame if, in the Agent’s discretion, such sale or
sales would disrupt the market for the Stock or otherwise would adversely affect the value of the Stock. The proceeds of such sale (the “Sales Proceeds”), or the Resale Proceeds, if applicable, shall be used to pay the expenses of
the Agent in connection with its duties under this Section 4 with respect to such Prohibited Shares, and any excess shall be allocated to the Purported Acquiror up to the following amount: (i) where applicable, the purported purchase price
paid or value of consideration surrendered by the Purported Acquiror for such Prohibited Shares, and (ii) where the purported transfer of Prohibited Shares to the Purported Acquiror was by gift, inheritance, or any similar purported transfer,
the fair market value 
  

 D-6 

 
(as determined in good faith by the Board of Directors) of such Prohibited Shares at the time of such purported transfer. Subject to the succeeding provisions of this subparagraph, any Resale
Proceeds or Sales Proceeds in excess of the amount allocable to the Purported Acquiror pursuant to the preceding sentence, together with any Prohibited Distributions, shall be transferred to an entity described in Section 501(c)(3) of the Code
and selected by the Board of Directors or its designee; provided, however, that if the Prohibited Shares (including any Prohibited Shares arising from a previous Prohibited Transfer not sold by the Agent in a prior sale or sales), represent a
4.95% or greater Ownership Interest Percentage, then any such remaining amounts to the extent attributable to the disposition of the portion of such Prohibited Shares exceeding a 4.94% Ownership Interest Percentage shall be paid to two or more
organizations qualifying under Section 501(c)(3) selected by the Board of Directors. In no event shall any such amounts described in the preceding sentence inure to the benefit of the Corporation or the Agent, but such amounts may be used to
cover expenses incurred by the Agent in connection with its duties under this Section 4 with respect to the related Prohibited Shares. Notwithstanding anything in this Article [—] to the
contrary, the Corporation shall at all times be entitled to make application to any court of equitable jurisdiction within the State of Washington for an adjudication of the respective rights and interests of any Person in and to any Sale Proceeds,
Resale Proceeds and Prohibited Distributions pursuant to this Article [—] and applicable law and for leave to pay such amounts into such court. 

(c) Within thirty (30) business days of learning of a purported transfer of Prohibited Shares to a Purported Acquiror, the
Corporation through its Secretary shall demand that the Purported Acquiror surrender to the Agent the certificates representing the Prohibited Shares, or any Resale Proceeds, and any Prohibited Distributions, and if such surrender is not made by the
Purported Acquiror the Corporation may institute legal proceedings to compel such transfer; provided, however, that nothing in this paragraph (c) shall preclude the Corporation in its discretion from immediately bringing legal
proceedings without a prior demand, and provided further that failure of the Corporation to act within the time periods set out in this paragraph (c) shall not constitute a waiver of any right of the Corporation to compel any transfer
required by subparagraph (a) of this Section 4. 
 (d) Upon a determination by the Corporation that there has been or
is threatened a purported transfer of Prohibited Shares to a Purported Acquiror, the Corporation may take such action in addition to any action permitted by the preceding paragraph as it deems advisable to give effect to the provisions of this
Article [—], [including, without limitation, refusing to give effect on the books of this Corporation to such purported transfer or instituting proceedings to enjoin such purported transfer].

 Section 5. Transferee Information. The Corporation may require as a condition to the approval of the transfer of
any shares of its Stock or Options to acquire Stock pursuant to this Article [—] that the proposed transferee furnish to the Corporation all information reasonably requested by the Corporation and
reasonably available to the proposed transferee and its affiliates with respect to the direct or indirect ownership interests of the proposed transferee (and of Persons to whom ownership interests of the

  

 D-7 

 
proposed transferee would be attributed for purposes of Section 382 of the Code) in Stock or other options or rights to acquire Stock. 

Section 6. Legend on Certificates. All certificates evidencing ownership of shares of Stock that are subject to the
restrictions on transfer contained in this Article [—] shall bear a conspicuous legend referencing the restrictions set forth in this Article [—].

 Section 7. Waiver of Article [—]. The Board of Directors may,
at any time prior to the Expiration Date, waive this Article [—] in respect of one or more classes of transfers or in respect of all transfers, provided that the Board of Directors determines
(a) that there is no reasonable likelihood that such waiver will create or increase a material risk that limitations pursuant to Section 382 of the Code will be imposed on the utilization of the Tax Benefits, either at the time of waiver
or a reasonable time thereafter, or (b) that the benefits to the shareholders of the Corporation as a whole of so waiving the provisions hereof are sufficient to permit such waiver notwithstanding the likely detriment to the shareholders as a
whole of the limitations referred to in (a). Any such determination to waive this Article [—] in respect of all transfers shall be filed with the Secretary of the Corporation and mailed by the
Secretary to all shareholders of this Corporation within ten days after the date of such determination. 
 Section 8.
Board Authority. 
 (a) The Board of Directors shall have the power to determine all matters necessary for assessing
compliance with this  Article  [—], including, without limitation, the identification of Five-Percent Shareholders with respect to the Corporation within the meaning of
Section 382 of the Code and the regulations thereunder; the ownership shifts, within the meaning of Section 382 of the Code, that have previously taken place; the magnitude of the ownership shift that would result from the proposed
transaction; the effect of any reasonably foreseeable transactions by the Corporation or any other Person (including any transfer of Stock that the Corporation has no power to prevent, without regard to any knowledge on the part of the Corporation
as to the likelihood of such transfer); the possible effects of an ownership change within the meaning of Section 382 of the Code and any other matters which the Board of Directors determines to be relevant. Moreover, the Corporation and the
Board of Directors shall be entitled to rely in good faith upon the information, opinions, reports or statements of the chief executive officer, the chief financial officer, or the chief accounting officer of the Corporation or of the
Corporation’s legal counsel, independent auditors, transfer agent, investment bankers, and other employees and agents in making the determinations and findings contemplated by this Article [—]
to the fullest extent permitted by law. Any determination by the Board of Directors pursuant to this Article [—] shall be conclusive. 

(b) Nothing contained in this Article [—] shall limit the authority of the Board of
Directors to take such other action to the extent permitted by law as it deems necessary or advisable to protect the Corporation and its shareholders in preserving the Tax Benefits. 

 

 D-8 

 (c) In the case of an ambiguity in the application of any of the provisions of this Article
[—], including any definition used herein, the Board of Directors shall have the power to determine the application of such provisions with respect to any situation based on its reasonable belief,
understanding or knowledge of the circumstances. In the event this Article [—] requires an action by the Board of Directors but fails to provide specific guidance with respect to such action, the
Board of Directors shall have the power to determine the action to be taken so long as such action is not contrary to the provisions of this Article [—]. All such actions, calculations,
interpretations and determinations which are done or made by the Board of Directors in good faith shall be conclusive and binding on the Corporation, the Agent, and all other parties for all other purposes of this Article
[—]. 
 Section 9. Severability. If any provision of this Article
[—] or any application of such provision is determined to be invalid by any federal or state court having jurisdiction over the issue, the validity of the remaining provisions shall not be affected
and other applications of such provision shall be affected only to the extent necessary to comply with the determination of such court. 

Section 10. Benefits of Article [—]. Nothing in this Article
[—] shall be construed to give to any Person other than the Corporation or the Agent any legal or equitable right, remedy or claim under this Article [—
]. This Article [—] shall be for the sole and exclusive benefit of the Corporation and the Agent. 

[Remainder of Page Intentionally Left Blank] 

 

 D-9 

 C. This amendment of the Restated Articles of Incorporation of the Corporation was duly
adopted by the Board of Directors of the Corporation, in accordance with the provisions of RCW 23B.10.030, at the meeting of the Board of Directors of the Corporation held on [—], 2010, and approved
by the Shareholders of the Corporation in accordance with the provisions of RCW 23B.10.030 and 23B.10.040 at a Special Meeting of Shareholders on [—], 2010. 

IN WITNESS WHEREOF, Sterling Financial Corporation has caused these Articles of Amendment to be signed by
                        , its
                        , this      day of
                        , 20    . 

 

					
	Sterling Financial Corporation
			
		 	By:	 	  

			
		 	Name:	 	
			
		 	Title:	 	

  

 D-10 

 EXHIBIT E TO INVESTMENT AGREEMENT 

EXHIBIT 4.1 to Form 8-K filed on April 15, 2010Exchange Agreement

 Exhibit 10.2 

EXECUTION COPY 
  

 
 EXCHANGE AGREEMENT

 by and between 

STERLING FINANCIAL CORPORATION 

and 

THE UNITED STATES DEPARTMENT OF THE TREASURY 

Dated as of April 29, 2010 
  

 

 TABLE OF CONTENTS 

 

					
	 	  	 	  	Page
	
	ARTICLE I
	
	 THE CLOSING; THE EXCHANGE OF CAPITAL SECURITIES FOR SERIES A

PREFERRED STOCK

			
	Section 1.1	  	The Capital Securities	  	1
	Section 1.2	  	The Closing	  	2
	Section 1.3	  	Interpretation	  	4
	
	ARTICLE II
	
	EXCHANGE
	Section 2.1	  	Exchange	  	5
	Section 2.2	  	Exchange Documentation	  	5
	
	ARTICLE III
			
		  	REPRESENTATIONS AND WARRANTIES OF THE COMPANY	  	
			
	Section 3.1	  	Existence and Power	  	5
	Section 3.2	  	Authorization and Enforceability	  	6
	Section 3.3	  	Capital Securities and Underlying Common Shares	  	6
	Section 3.4	  	Amended Warrant and Warrant Shares	  	6
	Section 3.5	  	Non-Contravention	  	7
	Section 3.6	  	Anti-Takeover Provisions and Rights Plan	  	8
	Section 3.7	  	No Company Material Adverse Effect	  	8
	Section 3.8	  	Offering of Securities	  	8
	Section 3.9	  	Brokers and Finders	  	8
	Section 3.10	  	Disclosure on Form 10-K	  	8
	
	ARTICLE IV
	
	COVENANTS
			
	Section 4.1	  	Commercially Reasonable Efforts	  	8
	Section 4.2	  	Expenses	  	9
	Section 4.3	  	Exchange Listing	  	9
	Section 4.4	  	Access, Information and Confidentiality	  	9
	Section 4.5	  	Executive Compensation	  	10
	Section 4.6	  	Certain Notifications Until Closing	  	11

  

 -i- 

					
	 Section 4.7
	  	Sufficiency of Authorized Common Stock	  	11
	 Section 4.8
	  	Monthly Lending Reports	  	12
	 Section 4.9
	  	Status Reports	  	12
	
	ARTICLE V
	
	ADDITIONAL AGREEMENTS
			
	 Section 5.1
	  	Unregistered Capital Securities	  	12
	 Section 5.2
	  	Legend	  	13
	 Section 5.3
	  	Certain Transactions	  	14
	 Section 5.4
	  	Transfer of Capital Securities; Underlying Common Shares and Warrant Shares	  	14
	 Section 5.5
	  	Registration Rights	  	15
	 Section 5.6
	  	Voting Matters	  	15
	 Section 5.7
	  	Restriction on Dividends and Repurchases	  	16
	 Section 5.8
	  	Repurchase of Investor Securities	  	17
	 Section 5.9
	  	[Reserved.]	  	17
	 Section 5.10
	  	Bank or Thrift Holding Company Status	  	17
	 Section 5.11
	  	Compliance with Employ American Workers Act	  	17
	 Section 5.12
	  	Investment Agreement	  	18
	
	ARTICLE VI
	
	MISCELLANEOUS
			
	 Section 6.1
	  	Termination	  	18
	 Section 6.2
	  	Survival of Representations and Warranties	  	18
	 Section 6.3
	  	Amendment	  	18
	 Section 6.4
	  	Waiver of Conditions	  	19
	 Section 6.5
	  	Governing Law; Submission to Jurisdiction, etc	  	19
	 Section 6.6
	  	Notices	  	19
	 Section 6.7
	  	Definitions	  	20
	 Section 6.8
	  	Assignment	  	22
	 Section 6.9
	  	Severability	  	22
	 Section 6.10
	  	No Third-Party Beneficiaries	  	23
	 Section 6.11
	  	Entire Agreement, etc	  	23
	 Section 6.12
	  	Counterparts and Facsimile	  	23
	 Section 6.13
	  	Specific Performance	  	23

 LIST OF ANNEXES 

 ANNEX A: FORM OF AMENDED WARRANT 

ANNEX B: FORM OF NEW CERTIFICATE OF DESIGNATIONS 

ANNEX C: FORM OF OPINION 
 ANNEX D:
FORM OF WAIVER 
  

 -ii- 

 LIST OF SCHEDULES 

SCHEDULE A: CAPITALIZATION 
 SCHEDULE B:
COMPANY MATERIAL ADVERSE EFFECT 
  

 -iii- 

			
	 Defined Terms
  
	 	
	Affiliate	 	Section 6.7(b)
	Agreement	 	Preamble
	Amended Warrant	 	Recitals
	Anchor Investor	 	Section 1.2(d)(ix)
	Benefit Plans	 	Section 1.2(d)(viii)
	Business Combination	 	Section 6.7(c)
	Capital Securities	 	Recitals
	Capitalization Date	 	Section 3.1(b)
	Charter	 	Section 1.2(d)(iv)
	Closing	 	Section 1.2(a)
	Closing Date	 	Section 1.2(a)
	Common Stock	 	Recitals
	Company	 	Preamble
	Company Material Adverse Effect	 	Section 6.7(d)
	Company Subsidiaries	 	Section 4.4(a)
	Compensation Regulations	 	Section 1.2(d)(viii)
	Designated Matters	 	Section 6.7(e)
	EAWA	 	Section 6.7(f)
	EESA	 	Section 1.2(d)(viii)
	Exchange	 	Recitals
	Governmental Entities	 	Section 1.2(c)
	Information	 	Section 4.4(c)
	Investor	 	Preamble
	Investment Agreement	 	Section 1.2(d)(ix)
	Junior Stock	 	Section 6.7(g)
	New Certificate of Designations	 	Section 1.2(d)(iv)
	Old Warrant	 	Recitals
	Other Transactions	 	Section 4.9
	Parity Stock	 	Section 6.7(h)
	Permitted Repurchases	 	Section 5.7(a)(ii)
	Previously Disclosed	 	Section 6.7(i)
	Relevant Period	 	Section 1.2(d)(viii)
	SEC	 	Section 3.5(b)
	Section 4.5 Employee	 	Section 4.5(b)
	Securities Purchase Agreement	 	Recitals
	Senior Executive Officers	 	Section 1.2(d)(viii)
	Series A Preferred Stock	 	Recitals
	Series A Shares	 	Recitals
	Share Dilution Amount	 	Section 5.7(a)(ii)
	Status Report	 	Section 4.9
	subsidiary	 	Section 6.7(a)
	Targeted Completion Date	 	Section 4.9
	Transfer	 	Section 5.4
	Underlying Common Shares	 	Section 3.2(a)
	Warrant Shares	 	Section 3.2(a)

  

 -iv- 

 EXCHANGE AGREEMENT, dated as of April 29, 2010 (this “Agreement”) by
and between Sterling Financial Corporation, a Washington corporation (the “Company”), and the United States Department of the Treasury (the “Investor”). All capitalized terms used herein and not otherwise defined
shall have the respective meanings ascribed to them in the Securities Purchase Agreement. 
 BACKGROUND 

WHEREAS, the Investor is, as of the date hereof, the beneficial owner of 303,000 shares of the Company’s preferred stock designated
as “Fixed Rate Cumulative Perpetual Preferred Stock, Series A”, having a liquidation amount of $1,000 per share (the “Series A Preferred Stock”); 

WHEREAS, the Company issued the Series A Preferred Stock pursuant to that certain Securities Purchase Agreement – Standard Terms
incorporated into a Letter Agreement, dated as of December 5, 2008, as amended from time to time, between the Company and the Investor (the “Securities Purchase Agreement”); 

WHEREAS, during the third quarter of 2009, the Company elected to defer regularly scheduled quarterly dividend payments on the Series A
Preferred Stock; 
 WHEREAS, the Company and the Investor desire (i) to exchange (the “Preferred
Exchange”) all 303,000 shares of the Series A Preferred Stock beneficially owned and held by the Investor (the “Series A Shares”) for 303,000 newly issued Fixed Rate Cumulative Mandatorily Convertible Preferred Stock,
Series C of the Company (the “Capital Securities”), with a liquidation amount of $1,000 per share and (ii) to amend the terms of that certain warrant, dated December 5, 2008, to purchase 6,437,677 shares of common stock,
par value $1.00 per share (“Common Stock”) granted by the Company for the benefit of the Investor (the “Old Warrant”) pursuant to an amended and restated warrant to purchase 6,437,677 shares of Common Stock, in
substantially the form attached hereto as Annex A (the “Amended Warrant”), on the terms and subject to the conditions set forth herein (the “Warrant Exchange” and together with the Preferred Exchange, the
“Exchange”); 
 NOW, THEREFORE, in consideration of the mutual covenants and agreements contained in this
Agreement, the receipt and sufficiency of which are hereby acknowledged, and intending to be legally bound, the parties hereby agree as follows: 

ARTICLE I 

THE CLOSING; THE EXCHANGE OF CAPITAL SECURITIES FOR SERIES A 

PREFERRED STOCK 

Section 1.1 The Capital Securities. The Capital Securities are being issued to the Investor in the Exchange pursuant
to Article II hereof. The shares of Series A Preferred Stock 
  

 -1- 

 
exchanged for the Capital Securities pursuant to Article II hereof are being reacquired by the Company and shall have the status of authorized but unissued shares of preferred stock of the
Company undesignated as to series and may be designated or redesignated and issued or reissued, as the case may be, as part of any series of preferred stock of the Company; provided that such shares shall not be reissued as shares of Series A
Preferred Stock. 
 Section 1.2 The Closing. 

(a) The closing of the Exchange (the “Closing”) will take place at the offices of Cadwalader, Wickersham & Taft
LLP, One World Financial Center, New York, New York 10281, at 9:00 a.m., EST on the first business day immediately following the day on which all of the conditions set forth in Sections 1.2(c) and (d) are satisfied or waived (other than those
conditions that by their terms must be satisfied on the Closing Date, but subject to the satisfaction or waiver of those conditions), or at such other place, time and date as shall be agreed between the Company and the Investor. The time and date on
which the Closing occurs is referred to in this Agreement as the “Closing Date”. 
 (b) Subject to the
fulfillment or waiver of the conditions to the Closing in this Section 1.2, at the Closing (i) the Company will deliver the Capital Securities to the Investor, as evidenced by one or more certificates dated the Closing Date and registered
in the name of the Investor or its designee(s) and (ii) the Investor will deliver the certificate representing the Series A Shares to the Company. 

(c) The respective obligations of each of the Investor and the Company to consummate the Exchange are subject to the fulfillment (or
waiver by the Company and the Investor, as applicable) prior to the Closing of the conditions that (i) any approvals or authorizations of all United States and other governmental, regulatory or judicial authorities (collectively,
“Governmental Entities”) required for the consummation of the Exchange shall have been obtained or made in form and substance reasonably satisfactory to each party and shall be in full force and effect and all waiting periods
required by United States and other applicable law, if any, shall have expired and (ii) no provision of any applicable United States or other law and no judgment, injunction, order or decree of any Governmental Entity shall prohibit
consummation of the Exchange as contemplated by this Agreement. 
 (d) The obligation of the Investor to consummate the Exchange
is also subject to the fulfillment (or waiver by the Investor) at or prior to the Closing of each of the following conditions: 

(i) the Company shall have obtained an exception from The NASDAQ Stock Market LLC Listing Rule 5635(b) (Shareholder
Approval – Change of Control) and Listing Rule 5635(d) (Shareholder Approval – Private Placements), as provided in Listing Rule 5635(f) (Financial Viability Exception), in respect of the issuances of securities by the Company as
contemplated by this Agreement and the Investment Agreement; 
 (ii) (A) the representations and
warranties of the Company set forth in Article III of this Agreement shall be true and correct in all respects as though made on and as of 

 

 -2- 

 
the Closing Date (other than representations and warranties that by their terms speak as of another date, which representations and warranties shall be true and correct in all respects as of such
other date) and (B) the Company shall have performed in all material respects all obligations required to be performed by it under this Agreement at or prior to the Closing; 

(iii) the Investor shall have received a certificate signed on behalf of the Company by a senior executive officer
certifying to the effect that the conditions set forth in Section 1.2(d)(ii) have been satisfied; 

(iv) the Company shall have duly adopted and filed with the State of Washington the amendment to its articles of
incorporation (“Charter”) in substantially the form attached hereto as Annex B (the “New Certificate of Designations”) and such filing shall have been accepted; 

(v) the Company shall have executed the Amended Warrant and delivered such executed Amended Warrant to the Investor
or its designee(s); 
 (vi) the Company shall have delivered certificates in proper form or, with the prior
consent of the Investor, evidence in book-entry form, evidencing the Capital Securities to the Investor or its designee(s); 

(vii) the Company shall have delivered to the Investor written opinions from outside counsel to the Company,
addressed to the Investor and dated as of the Closing Date, in substantially the form attached hereto as Annex C; 

(viii) (A) the Company shall have effected such changes to its compensation, bonus, incentive and other benefit
plans, arrangements and agreements (including golden parachute, severance and employment agreements) (collectively, “Benefit Plans”) with respect to its Senior Executive Officers and any other employee of the Company or its
Affiliates subject to Section 111 of the Emergency Economic Stabilization Act of 2008, as amended by the American Recovery and Reinvestment Act of 2009, or otherwise from time to time (“EESA”), as implemented by any guidance,
rule or regulation thereunder, as the same shall be in effect from time to time (collectively, the “Compensation Regulations”) (and to the extent necessary for such changes to be legally enforceable, each of its Senior Executive
Officers and other employees shall have duly consented in writing to such changes), as may be necessary, during the period in which any obligation of the Company arising from financial assistance under the Troubled Asset Relief Program remains
outstanding (such period, as it may be further described in the Compensation Regulations, the “Relevant Period”), in order to comply with Section 111 of EESA or the Compensation Regulations and (B) the Investor shall have
received a certificate signed on behalf of the Company by a Senior Executive Officer certifying to the effect that the condition set forth in Section 1.2(d)(viii)(A) has been satisfied; “Senior Executive Officers” means the
Company’s “senior executive officers” as defined in Section 111 of the EESA and the Compensation Regulations; 
  

 -3- 

 (ix) each of the conditions to closing set forth in Section 1.2(c) of
that certain Investment Agreement (the “Investment Agreement”), dated as of April 29, 2010, between the Company, on the one hand, and Thomas H. Lee Equity Fund VI, L.P., Thomas H. Lee Parallel Fund VI, L.P. and Thomas H. Lee
Parallel (DT) Fund VI, L.P., on the other hand (collectively, the “Anchor Investor”), (other than those conditions set forth in Section 1.2(c)(2)(iii) (TARP Exchange) and Section 1.2(c)(2)(xvii) (Par Value Change)) shall
have been fulfilled to the Anchor Investor’s reasonable satisfaction or, other than the condition pursuant to Section 1.2(c)(2)(vi) of the Investment Agreement, waived by the Anchor Investor; 

(x) the Investor shall have received certificates signed on behalf of the Company by a senior executive officer and
on behalf of the Anchor Investor by an authorized officer thereof certifying to the effect that each of the conditions to closing set forth in Section 1.2(c) of the Investment Agreement (other than those conditions set forth in
Section 1.2(c)(2)(iii) (TARP Exchange) and Section 1.2(c)(2)(xvii) (Par Value Change)) have been satisfied or, other than the condition pursuant to Section 1.2(c)(2)(vi) of the Investment Agreement, waived; and 

(xi) the exchange, repurchase, redemption or other similar transaction or payments of any distributions thereon, in
each case, if any, of or with respect to, as applicable, any of the trust preferred securities issued by certain vehicles associated with the Company shall, to the extent (x) consummated or (y) the Company having entered into an agreement
or understanding in relation thereto on or prior to the Closing, be on terms and conditions reasonably satisfactory to the Investor. 

Section 1.3 Interpretation. When a reference is made in this Agreement to “Recitals,” “Articles,”
“Sections,” “Annexes” or “Schedules” such reference shall be to a Recital, Article or Section of, or Annex or Schedule to, this Agreement, unless otherwise indicated. The terms defined in the singular have a comparable
meaning when used in the plural, and vice versa. References to “herein”, “hereof”, “hereunder” and the like refer to this Agreement as a whole and not to any particular section or provision, unless the context requires
otherwise. The table of contents and headings contained in this Agreement are for reference purposes only and are not part of this Agreement. Whenever the words “include,” “includes” or “including” are used in this
Agreement, they shall be deemed followed by the words “without limitation.” No rule of construction against the draftsperson shall be applied in connection with the interpretation or enforcement of this Agreement, as this Agreement is the
product of negotiation between sophisticated parties advised by counsel. All references to “$” or “dollars” mean the lawful currency of the United States of America. Except as expressly stated in this Agreement, all references to
any statute, rule or regulation are to the statute, rule or regulation as amended, modified, supplemented or replaced from time to time (and, in the case of statutes, include any rules and regulations promulgated under the statute) and to any
section of any statute, rule or regulation include any successor to the section. References to a “business day” shall mean any day except Saturday, Sunday and any day on which banking institutions in the State of New York generally are
authorized or required by law or other governmental actions to close. 
  

 -4- 

 ARTICLE II 

EXCHANGE 

Section 2.1 Exchange. On the terms and subject to the conditions set forth in this Agreement, (i) the Company
agrees to issue the Capital Securities to the Investor in exchange for 303,000 shares of the Series A Shares, and the Investor agrees to deliver to the Company the Series A Shares in exchange for the Capital Securities, and (ii) the Company and
the Investor mutually agree to amend and restate the Old Warrant to reflect the terms and conditions of the Amended Warrant. 

Section 2.2 Exchange Documentation. Settlement of the Exchange will take place on the Closing Date, at which time the
Investor will cause delivery of the Series A Shares to the Company or its designated agent and the Company will cause delivery of the Capital Securities to the Investor or its designated agent. 

ARTICLE III 

REPRESENTATIONS AND WARRANTIES OF THE COMPANY 

Except as Previously Disclosed, the Company represents and warrants to the Investor as of the date hereof and as of the Closing Date
that: 
 Section 3.1 Existence and Power. 

(a) Organization, Authority and Significant Subsidiaries. The Company is duly organized, validly existing and in good standing
under the laws of the State of Washington and has all necessary power and authority to own, operate and lease its properties and to carry on its business in all material respects as it is being currently conducted, and except as has not,
individually or in the aggregate, had and would not reasonably be expected to have a Company Material Adverse Effect, has been duly qualified as a foreign corporation for the transaction of business and is in good standing under the laws of each
other jurisdiction in which it owns or leases properties or conducts any business so as to require such qualification; each subsidiary of the Company that is a “significant subsidiary” within the meaning of Rule 1-02(w) of Regulation S-X
under the Securities Act, including, without limitation, Sterling Savings Bank and Golf Savings Bank, has been duly organized and is validly existing in good standing under the laws of its jurisdiction of organization. The Charter and bylaws of the
Company, copies of which have been provided to the Investor prior to the date hereof, are true, complete and correct copies of such documents as in full force and effect as of the date hereof. 

(b) Capitalization. The authorized capital stock of the Company, and the outstanding capital stock of the Company (including
securities convertible into, or exercisable or exchangeable for, capital stock of the Company) as of the most recent fiscal month-end preceding the date hereof (the “Capitalization Date”) is set forth on Schedule A. The
outstanding shares of capital stock of the Company have been duly authorized and are validly issued and outstanding, fully paid and nonassessable, and subject to no preemptive rights (and were not issued in violation of any preemptive rights).
Except as provided in the Old Warrant or the 
  

 -5- 

 
Investment Agreement (including with respect to the Other Private Placements (as defined in the Investment Agreement)), as of the date hereof, the Company does not have outstanding any securities
or other obligations providing the holder the right to acquire Common Stock that is not reserved for issuance as specified on Schedule A, and the Company has not made any other commitment to authorize, issue or sell any Common Stock. Since
the Capitalization Date, the Company has not issued any shares of Common Stock other than (i) shares issued upon the exercise of stock options or delivered under other equity-based awards or other convertible securities or warrants which were
issued and outstanding on the Capitalization Date and disclosed on Schedule A and (ii) shares disclosed on Schedule A. 

Section 3.2 Authorization and Enforceability. 

(a) The Company has the corporate power and authority to execute and deliver this Agreement and the Amended Warrant and to carry out its
obligations hereunder and thereunder (which includes the issuance of the Capital Securities, the shares of Common Stock issuable upon conversion of the Capital Securities (the “Underlying Common Shares”), the Amended Warrant and the
shares of Common Stock issuable upon exercise of the Amended Warrant (the “Warrant Shares”)). 
 (b) The
execution, delivery and performance by the Company of this Agreement and the Amended Warrant and the consummation of the transactions contemplated hereby and thereby have been duly authorized by all necessary corporate action on the part of the
Company and its stockholders, and no further approval or authorization is required on the part of the Company or its stockholders. This Agreement is a valid and binding obligation of the Company enforceable against the Company in accordance with its
terms, subject to the Bankruptcy Exceptions. 
 Section 3.3 Capital Securities and Underlying Common Shares.
The Capital Securities have been duly and validly authorized by all necessary action, and, when issued and delivered pursuant to this Agreement, such Capital Securities will be duly and validly issued and fully paid and nonassessable, will not be
issued in violation of any preemptive rights, will represent nonassessable undivided beneficial interests in the assets of the Company, will not subject the holder thereof to personal liability and will rank senior to all other series or classes of
Preferred Stock, whether or not issued or outstanding. The shares of Underlying Common Stock have been duly authorized and reserved for issuance upon conversion of the Capital Securities and when so issued in accordance with the terms of the New
Certificate of Designations will be validly issued, fully paid and nonassessable. 
 Section 3.4 Amended Warrant and
Warrant Shares. The Amended Warrant has been duly and validly authorized and, when executed and delivered as contemplated hereby, will constitute a valid and legally binding obligation of the Company enforceable against the Company in
accordance with its terms, except as the same may be limited by applicable Bankruptcy Exceptions. The Warrant Shares have been duly authorized and reserved for issuance by the Company and when so issued and delivered in accordance with the terms of
the Amended Warrant will be validly issued, fully paid and non-assessable, without the necessity of any approval of its stockholders. 
  

 -6- 

 Section 3.5 Non-Contravention. 

(a) The execution, delivery and performance by the Company of this Agreement, the Amended Warrant, and the consummation of the
transactions contemplated hereby and thereby, and compliance by the Company with the provisions hereof and thereof, will not (A) violate, conflict with, or result in a breach of any provision of, or constitute a default (or an event which, with
notice or lapse of time or both, would constitute a default) under, or result in the termination of, or accelerate the performance required by, or result in a right of termination or acceleration of, or result in the creation of, any lien, security
interest, charge or encumbrance upon any of the properties or assets of the Company or any Company Subsidiary under any of the terms, conditions or provisions of (i) its organizational documents or (ii) any note, bond, mortgage, indenture,
deed of trust, license, lease, agreement or other instrument or obligation to which the Company or any Company Subsidiary is a party or by which it or any Company Subsidiary may be bound, or to which the Company or any Company Subsidiary or any of
the properties or assets of the Company or any Company Subsidiary may be subject, or (B) subject to compliance with the statutes and regulations referred to in the next paragraph, violate any statute, rule or regulation or any judgment, ruling,
order, writ, injunction or decree applicable to the Company or any Company Subsidiary or any of their respective properties or assets except, in the case of clauses (A)(ii) and (B), for those occurrences that, individually or in the aggregate, have
not had and would not reasonably be expected to have a Company Material Adverse Effect. 
 (b) Other than the filing of the New
Certificate of Designations with the State of Washington, any current report on Form 8-K required to be filed with the Securities and Exchange Commission (“SEC”), such filings and approvals as are required to be made or obtained
under any state “blue sky” laws and such consents and approvals that have been made or obtained, no notice to, filing with or review by, or authorization, consent or approval of, any Governmental Entity is required to be made or obtained
by the Company in connection with the consummation by the Company of the Exchange except for any such notices, filings, reviews, authorizations, consents and approvals the failure of which to make or obtain would not, individually or in the
aggregate, reasonably be expected to have a Company Material Adverse Effect. 
 (c) Except as would not, individually or in the
aggregate, reasonably be expected to have a Company Material Adverse Effect, (A) the execution, delivery and performance by the Company of this Agreement and the consummation of the transactions contemplated hereby (including for this purpose
the consummation of the Exchange) and compliance by the Company with the provisions hereof will not (1) result in any payment (including any severance payment, payment of unemployment compensation, “excess parachute payment” (within
the meaning of the Code), “golden parachute payment” (as defined in the EESA, as implemented by the Compensation Regulations) or forgiveness of indebtedness or otherwise) becoming due to any current or former employee, officer or director
of the Company or any Company Subsidiary from the Company or any Company Subsidiary under any benefit plan or otherwise, (2) increase any benefits otherwise payable under any benefit plan, (3) result in any acceleration of the time of
payment or vesting of any such benefits, (4) require the funding or increase in the funding of any such benefits or (5) result in any limitation on the right of the Company or any Company Subsidiary to amend, merge, terminate or receive a
reversion of assets from any benefit plan or related trust and (B) neither the Company nor any Company Subsidiary has taken, or permitted 

 

 -7- 

 
to be taken, any action that required, and no circumstances exist that will require the funding, or increase in the funding, of any benefits or resulted, or will result, in any limitation on the
right of the Company or any Company Subsidiary to amend, merge, terminate or receive a reversion of assets from any benefit plan or related trust. 

Section 3.6 Anti-Takeover Provisions and Rights Plan. The Board of Directors has taken all necessary action to ensure
that the transactions contemplated by this Agreement and the Amended Warrant and the consummation of the transactions contemplated hereby and thereby, including the conversion of the Capital Securities in accordance with the terms of the New
Certificate of Designations and the exercise of the Amended Warrant in accordance with its terms, will be exempt from any anti-takeover or similar provisions of the Company’s Charter and bylaws, and any other provisions of any applicable
“moratorium”, “control share”, “fair price”, “interested stockholder” or other anti-takeover laws and regulations of any jurisdiction. The Company has taken all actions necessary to render any
stockholders’ rights plan of the Company inapplicable to this Agreement, the Capital Securities and the Amended Warrant and the consummation of the transactions contemplated hereby and thereby, including the conversion of the Capital Securities
in accordance with the terms of the New Certificate of Designations and the exercise of the Amended Warrant by the Investor in accordance with its terms. 

Section 3.7 No Company Material Adverse Effect. Since December 31, 2009, no fact, circumstance, event, change,
occurrence, condition or development has occurred that, individually or in the aggregate, has had or would reasonably be likely to have a Company Material Adverse Effect, except as disclosed on Schedule B. 

Section 3.8 Offering of Securities. Neither the Company nor any person acting on its behalf has taken any action
(including any offering of any securities of the Company under circumstances which would require the integration of such offering with the offering of the Capital Securities under the Securities Act and the rules and regulations of the SEC
promulgated thereunder), which might subject the offering, issuance or sale of the Capital Securities to the Investor pursuant to this Agreement to the registration requirements of the Securities Act. 

Section 3.9 Brokers and Finders. No broker, finder or investment banker is entitled to any financial advisory,
brokerage, finder’s or other fee or commission in connection with this Agreement or the transactions contemplated hereby based upon arrangements made by or on behalf of the Company or any Company Subsidiary for which the Investor could have any
liability. 
 Section 3.10 Disclosure on Form 10-K. The Company has disclosed in the Company’s Annual
Report on Form 10-K for the fiscal year ended December 31, 2010 all agreements, contracts and arrangements required to be disclosed therein. 

ARTICLE IV 

COVENANTS 

Section 4.1 Commercially Reasonable Efforts. Subject to the terms and conditions of this Agreement, each of the
parties will use its commercially reasonable efforts in good faith 
  

 -8- 

 
to take, or cause to be taken, all actions, and to do, or cause to be done, all things necessary, proper or desirable, or advisable under applicable laws, so as to permit consummation of the
Exchange as promptly as practicable and otherwise to enable consummation of the transactions contemplated hereby and shall use commercially reasonable efforts to cooperate with the other party to that end. 

Section 4.2 Expenses. If requested by the Investor, the Company shall pay all reasonable out of pocket and documented
costs and expenses associated with the Exchange, including, but not limited to, the reasonable fees, disbursements and other charges of the Investor’s legal counsel and financial advisors. 

Section 4.3 Exchange Listing. If requested by the Investor, the Company shall, at the Company’s expense, cause
the Capital Securities and the Amended Warrant, to the extent the Capital Securities and the Amended Warrant comply with applicable listing requirements, to be listed on the Nasdaq Global Select Market or other national stock exchange, subject to
official notice of issuance, and shall maintain such listing for so long as any Common Stock is listed on such exchange. At the Investor’s request, the Company agrees to take such action as may be necessary to change the minimum denominations
of the Capital Securities to $25 or such other amount as the Investor shall reasonably request. As soon as reasonably practicable following the Closing, the Company shall, at its expense, cause the Underlying Common Shares and the Warrant Shares to
be listed on the same national securities exchange on which the Common Stock is listed, subject to official notice of issuance, and shall maintain such listing for so long as any Common Stock is listed on such exchange. 

Section 4.4 Access, Information and Confidentiality. 

(a) From the date hereof until the date when the Investor no longer holds any debt or equity securities of the Company or an Affiliate of
the Company acquired pursuant to this Agreement or the Amended Warrant, the Company will permit the Investor and its agents, consultants, contractors and advisors (i) acting through the Company’s Appropriate Federal Banking Agency, to
examine the corporate books and make copies thereof and to discuss the affairs, finances and accounts of the Company and the subsidiaries of the Company (the “Company Subsidiaries”) with the principal officers of the Company, all
upon reasonable notice and at such reasonable times and as often as the Investor may reasonably request and (ii) to review any information material to the Investor’s investment in the Company provided by the Company to its Appropriate
Federal Banking Agency. 
 (b) From the date hereof until the date when the Investor no longer holds any debt or equity
securities of the Company or an Affiliate of the Company acquired pursuant to this Agreement or the Amended Warrant, the Company shall permit, and shall cause each of the Company’s Subsidiaries to permit (A) the Investor and its agents,
consultants, contractors, (B) the Special Inspector General of the Troubled Asset Relief Program, and (C) the Comptroller General of the United States access to personnel and any books, papers, records or other data, in each case, to the
extent relevant to ascertaining compliance with the financing terms and conditions; provided that prior to disclosing any information pursuant to clause (B) or (C), the Special Inspector General of the Troubled Asset Relief Program and
the Comptroller General of the United States shall have agreed, with respect to documents obtained under this Agreement in 
  

 -9- 

 
furtherance of its function, to follow applicable law and regulation (and the applicable customary policies and procedures) regarding the dissemination of confidential materials, including
redacting confidential information from the public version of its reports and soliciting the input from the Company as to information that should be afforded confidentiality, as appropriate. 

(c) The Investor will use reasonable best efforts to hold, and will use reasonable best efforts to cause its agents, consultants,
contractors, advisors, and United States executive branch officials and employees, to hold, in confidence all non-public records, books, contracts, instruments, computer data and other data and information (collectively,
“Information”) concerning the Company furnished or made available to it by the Company or its representatives pursuant to this Agreement (except to the extent that such information can be shown to have been (i) previously known
by such party on a non-confidential basis, (ii) in the public domain through no fault of such party or (iii) later lawfully acquired from other sources by the party to which it was furnished (and without violation of any other
confidentiality obligation)); provided that nothing herein shall prevent the Investor from disclosing any Information to the extent required by applicable laws or regulations or by any subpoena or similar legal process. The Investor
understands that the Information may contain commercially sensitive confidential information entitled to an exception from a Freedom of Information Act request. 

(d) Nothing in this Section shall be construed to limit the authority that the Special Inspector General of the Troubled Asset Relief
Program, the Comptroller General of the United States or any other applicable regulatory authority has under law. 

Section 4.5 Executive Compensation. 

(a) Benefit Plans. During the Relevant Period, the Company shall take all necessary action to ensure that the Benefit Plans of the
Company and its Affiliates comply in all respects with, and shall take all other actions necessary to comply with, Section 111 of the EESA, as implemented by the Compensation Regulations, and neither the Company nor any Affiliate shall adopt
any new Benefit Plan (i) that does not comply therewith or (ii) that does not expressly state and require that such Benefit Plan and any compensation thereunder shall be subject to any relevant Compensation Regulations adopted, issued or
released on or after the date any such Benefit Plan is adopted. To the extent that EESA and/or the Compensation Regulations are amended or otherwise change during the Relevant Period in a manner that requires changes to then-existing Benefit Plans,
or that requires other actions, the Company and its Affiliates shall effect such changes to its or their Benefit Plans, and take such other actions, as promptly as practicable after it has actual knowledge of such amendments or changes in order to
be in compliance with this Section 4.5(a) (and shall be deemed to be in compliance for a reasonable period to effect such changes). In addition, the Company and its Affiliates shall take all necessary action, other than to the extent prohibited
by applicable law or regulation applicable outside of the United States, to ensure that the consummation of the transactions contemplated by this Agreement will not accelerate the vesting, payment or distribution of any equity-based awards, deferred
cash awards or any nonqualified deferred compensation payable by the Company or any of its Affiliates. 
 (b) Additional
Waivers. After the Closing Date, in connection with the hiring or promotion of a Section 4.5 Employee and/or the promulgation of applicable Compensation 

 

 -10- 

 
Regulations or otherwise, to the extent any Section 4.5 Employee shall not have executed a waiver with respect to the application to such Section 4.5 Employee of the Compensation
Regulations, the Company shall use its best efforts to (i) obtain from such Section 4.5 Employee a waiver in substantially the form attached hereto as Annex D and (ii) deliver such waiver to the Investor as promptly as
possible, in each case, within sixty days of the Closing Date or, if later, within sixty days of such Section 4.5 Employee becoming subject to the requirements of this Section. “Section 4.5 Employee” means (A) each Senior
Executive Officer and (B) any other employee of the Company or its Affiliates determined at any time to be subject to Section 111 of EESA and the Compensation Regulations. 

(c) Clawback. In the event that any Section 4.5 Employee receives a payment in contravention of the provisions of this
Section 4.5, the Company shall promptly provide such individual with written notice that the amount of such payment must be repaid to the Company in full within fifteen business days following receipt of such notice or such earlier time as may
be required by the Compensation Regulations and shall promptly inform the Investor (i) upon discovering that a payment in contravention of this Section 4.5 has been made and (ii) following the repayment to the Company of such amount
and shall take such other actions as may be necessary to comply with the Compensation Regulations. 
 (d) Limitation on
Deductions. During the Relevant Period, the Company agrees that it shall not claim a deduction for remuneration for federal income tax purposes in excess of $500,000 for each Senior Executive Officer that would not be deductible if
Section 162(m)(5) of the Code applied to the Company. 
 (e) Amendment to Prior Agreement. The parties agree that,
effective as of the date hereof, Section 4.10 of the Securities Purchase Agreement shall be amended in its entirety by replacing such Section 4.10 with the provisions set forth in this Section 4.5 and any terms included in this
Section 4.5 that are not otherwise defined in the Securities Purchase Agreement shall have the meanings ascribed to such terms in this Agreement. 

Section 4.6 Certain Notifications Until Closing. From the date hereof until the Closing, the Company shall promptly
notify the Investor of (i) any fact, event or circumstance of which it is aware and which would reasonably be likely to cause any representation or warranty of the Company contained in this Agreement to be untrue or inaccurate in any material
respect or to cause any covenant or agreement of the Company contained in this Agreement not to be complied with or satisfied in any material respect and (ii) except as Previously Disclosed, any fact, circumstance, event, change, occurrence,
condition or development of which the Company is aware and which, individually or in the aggregate, has had or would reasonably be likely to have a Company Material Adverse Effect; provided, however, that delivery of any notice pursuant to
this Section 4.6 shall not limit or affect any rights of or remedies available to the Investor; provided, further, that a failure to comply with this Section 4.6 shall not constitute a breach of this Agreement or the failure of any
condition set forth in Section 1.2 to be satisfied unless the underlying Company Material Adverse Effect or material breach would independently result in the failure of a condition set forth in Section 1.2 to be satisfied. 

Section 4.7 Sufficiency of Authorized Common Stock. During the period from the Closing Date until the date on which
all the Capital Securities have been converted and the 
  

 -11- 

 
Amended Warrant has been fully exercised, the Company shall at all times have reserved for issuance, free of preemptive or similar rights, a sufficient number of authorized and unissued shares of
Common Stock to effectuate such conversion and exercise. Nothing in this Section 4.7 shall preclude the Company from satisfying its obligations in respect of the conversion of Capital Securities or the exercise of the Amended Warrant by
delivery of shares of Common Stock which are held in the treasury of the Company. 
 Section 4.8 Monthly Lending
Reports. During the Relevant Period, the Company will detail in monthly reports submitted to the Investor the information required by the CPP Monthly Lending Reports, as published on www.financialstability.gov from time to time.

 Section 4.9 Status Reports. The Company has informed the Investor that the Company intends to pursue
certain other transactions described below (the “ Other Transactions”) each with a target date for consummation as indicated (a “Targeted Completion Date” ): 

(a) [Reserved.] 

(b) Close one or more transactions in which investors other than the Investor have provided a minimum aggregate amount of $720
million in gross cash proceeds to the Company in exchange for Common Stock, warrants to purchase Common Stock, Series B Shares (as defined in the Investment Agreement) and/or Series D Shares (as defined in the Investment Agreement) by May 31,
2010. 
 The Company will use its commercially reasonable efforts to consummate each of the Other Transactions by its applicable
Targeted Completion Date. Until all of the Other Transactions have been consummated (or the Company and the Investor agree that one or more of the Other Transactions is no longer susceptible to consummation on terms and conditions that are in the
Company’s best interest), the Company shall provide the Investor with a reasonably detailed written report regarding the status of each of the Other Transactions at least once every two weeks and more frequently if reasonably requested by the
Investor; provided, however, that if any one or more of the Other Transactions is not consummated by the time of its Targeted Completion Date, the Company shall, with respect to any such non-consummated Other Transaction, (x) within five
business days after the Targeted Completion Date for such Other Transaction provide to the Investor a reasonably detailed written description of the status of such Other Transaction including the Company’s best estimate of the steps and
timeline to complete such Other Transaction (the “Status Report”) and (y) thereafter, no less frequently than monthly and more frequently if reasonably requested by the Investor until such Other Transactions have been
consummated, provide to the Investor an updated version of the Status Report. 
 ARTICLE V 

ADDITIONAL AGREEMENTS 

Section 5.1 Unregistered Capital Securities. The Investor acknowledges that the Capital Securities, the Underlying
Common Shares and the Warrant Shares have not been registered under the Securities Act or under any state securities laws. The Investor (a) is acquiring the Capital Securities pursuant to an exemption from registration under the Securities

  

 -12- 

 
Act solely for investment with no present intention to distribute them to any person in violation of the Securities Act or any applicable U.S. state securities laws, (b) will not sell or
otherwise dispose of any of the Capital Securities, the Underlying Common Shares or the Warrant Shares, except in compliance with the registration requirements or exemption provisions of the Securities Act and any applicable U.S. state securities
laws, and (c) has such knowledge and experience in financial and business matters and in investments of this type that it is capable of evaluating the merits and risks of the Exchange and of making an informed investment decision. 

Section 5.2 Legend. 

(a) The Investor agrees that all certificates or other instruments representing the Amended Warrant, the Underlying Common Shares and the
Warrant Shares will bear a legend substantially to the following effect: 
 “THE SECURITIES REPRESENTED BY THIS INSTRUMENT
HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR THE SECURITIES LAWS OF ANY STATE AND MAY NOT BE TRANSFERRED, SOLD OR OTHERWISE DISPOSED OF EXCEPT WHILE A REGISTRATION STATEMENT RELATING THERETO IS IN EFFECT UNDER SUCH ACT
AND APPLICABLE STATE SECURITIES LAWS OR PURSUANT TO AN EXEMPTION FROM REGISTRATION UNDER SUCH ACT OR SUCH LAWS.” 

(b) The Investor agrees that all certificates or other instruments representing the Capital Securities will bear a legend
substantially to the following effect: 
 “THE SECURITIES REPRESENTED BY THIS INSTRUMENT ARE NOT SAVINGS ACCOUNTS, DEPOSITS
OR OTHER OBLIGATIONS OF A BANK AND ARE NOT INSURED BY THE FEDERAL DEPOSIT INSURANCE CORPORATION OR ANY OTHER GOVERNMENTAL AGENCY. 

THE SECURITIES REPRESENTED BY THIS INSTRUMENT HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE
“SECURITIES ACT”), OR THE SECURITIES LAWS OF ANY STATE AND MAY NOT BE TRANSFERRED, SOLD OR OTHERWISE DISPOSED OF EXCEPT WHILE A REGISTRATION STATEMENT RELATING THERETO IS IN EFFECT UNDER SUCH ACT AND APPLICABLE STATE SECURITIES LAWS
OR PURSUANT TO AN EXEMPTION FROM REGISTRATION UNDER SUCH ACT OR SUCH LAWS. EACH PURCHASER OF THE SECURITIES REPRESENTED BY THIS INSTRUMENT IS NOTIFIED THAT THE SELLER MAY BE RELYING ON THE EXEMPTION FROM SECTION 5 OF THE SECURITIES ACT PROVIDED BY
RULE 144A THEREUNDER. ANY TRANSFEREE OF THE SECURITIES REPRESENTED BY THIS INSTRUMENT BY ITS ACCEPTANCE HEREOF (1) REPRESENTS THAT IT IS A “QUALIFIED INSTITUTIONAL BUYER” (AS DEFINED IN RULE 144A UNDER THE SECURITIES ACT),
(2) AGREES THAT IT WILL NOT OFFER, SELL OR OTHERWISE TRANSFER THE SECURITIES REPRESENTED BY THIS INSTRUMENT EXCEPT (A) PURSUANT TO A REGISTRATION STATEMENT WHICH IS THEN EFFECTIVE UNDER THE SECURITIES ACT, (B) FOR SO LONG AS THE
SECURITIES REPRESENTED BY THIS INSTRUMENT ARE ELIGIBLE FOR 
  

 -13- 

 
RESALE PURSUANT TO RULE 144A, TO A PERSON IT REASONABLY BELIEVES IS A “QUALIFIED INSTITUTIONAL BUYER” AS DEFINED IN RULE 144A UNDER THE SECURITIES ACT THAT PURCHASES FOR ITS OWN ACCOUNT
OR FOR THE ACCOUNT OF A QUALIFIED INSTITUTIONAL BUYER TO WHOM NOTICE IS GIVEN THAT THE TRANSFER IS BEING MADE IN RELIANCE ON RULE 144A, (C) TO THE ISSUER OR (D) PURSUANT TO ANY OTHER AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS
OF THE SECURITIES ACT AND (3) AGREES THAT IT WILL GIVE TO EACH PERSON TO WHOM THE SECURITIES REPRESENTED BY THIS INSTRUMENT ARE TRANSFERRED A NOTICE SUBSTANTIALLY TO THE EFFECT OF THIS LEGEND.” 

(c) In the event that any Capital Securities, Underlying Common Shares or Warrant Shares (i) become registered under the
Securities Act or (ii) are eligible to be transferred without restriction in accordance with Rule 144 or another exemption from registration under the Securities Act (other than Rule 144A), the Company shall issue new certificates or other
instruments representing such Capital Securities, Underlying Common Shares or Warrant Shares, which shall not contain the applicable legend in Section 5.2(a) above; provided that the Investor surrenders to the Company the previously
issued certificates or other instruments. 
 Section 5.3 Certain Transactions. 

(a) The Company will not merge or consolidate with, or sell, transfer or lease all or substantially all of its property or assets to, any
other party unless the successor, transferee or lessee party (or its ultimate parent entity), as the case may be (if not the Company), expressly assumes the due and punctual performance and observance of each and every covenant, agreement and
condition of this Agreement and the Amended Warrant to be performed and observed by the Company. 
 (b) Without the prior
written consent of the Investor, until such time as the Investor shall cease to own any debt or equity securities of the Company acquired pursuant to this Agreement or the Amended Warrant (including, for the avoidance of doubt, the Capital
Securities, the Underlying Common Shares and the Warrant Shares), the Company shall not permit any of its “significant subsidiaries” (as such term is defined in Rule 12b-2 promulgated under the Exchange Act) to (i) engage in any
merger, consolidation, statutory share exchange or similar transaction following the consummation of which such significant subsidiary is not wholly-owned by the Company, (ii) dissolve or sell all or substantially all of its assets or property
other than in connection with an internal reorganization or consolidation involving wholly-owned subsidiaries of the Company or (iii) issue or sell any shares of its capital stock or any securities convertible or exercisable for any such
shares, other than issuances or sales in connection with an internal reorganization or consolidation involving wholly-owned subsidiaries of the Company. 

Section 5.4 Transfer of Capital Securities; Underlying Common Shares and Warrant Shares. Subject to compliance with
applicable securities laws, the Investor shall be permitted to transfer, sell, assign or otherwise dispose of (“Transfer”) all or a portion of the Capital Securities, Amended Warrant, Underlying Common Shares or Warrant Shares at
any time, and the Company shall take all steps as may be reasonably requested by the Investor to 
  

 -14- 

 
facilitate the Transfer of the Capital Securities, the Underlying Common Shares and the Warrant Shares. 

Section 5.5 Registration Rights. The Capital Securities, Amended Warrant, Underlying Common Shares and Warrant Shares
shall be Registrable Securities under the Securities Purchase Agreement and the Capital Securities shall be Preferred Shares under the Securities Purchase Agreement and, upon their issuance, the provisions of Section 4.5 of the Securities
Purchase Agreement shall be applicable to them, including with the benefit, to the extent available, of the tacking of any holding period from the date of issuance of the Series A Preferred Stock. The Investor acknowledges that, on the date hereof,
the Company is not eligible to file a registration statement on Form S-3 covering all of the Capital Securities, Amended Warrant, Underlying Common Shares and Warrant Shares, and the Company shall not be obligated to file a Shelf Registration
Statement (as defined in Section 4.5 of the Securities Purchase Agreement) unless and until requested to do so in writing by the Investor. 

Section 5.6 Voting Matters. 

(a) The Investor agrees that it will vote, or cause to be voted, or exercise its right to consent (or cause its right to consent to be
exercised) with respect to, all Underlying Common Shares and Warrant Shares beneficially owned by it and its controlled Affiliates (and which are entitled to vote on such matter) (i) with respect to the Stockholder Proposals (as defined in the
Investment Agreement) pursuant to Section 3.1(b) clauses (i) and (ii) of the Investment Agreement, in favor of such Stockholder Proposals and (ii) with respect to (A) the Charter Amendment Proposal (as defined in the
Investment Agreement) and (B) each other matter on which holders of Common Stock are entitled to vote or consent, other than a Designated Matter, in the same proportion (for, against or abstain) as all other shares of the Company’s Common
Stock (other than those shares held by the Anchor Investor or any of its Affiliates) are voted or consents are given with respect to each such matter. The Investor agrees to attend all meetings of the Company’s stockholders in person or by
proxy for purposes of obtaining a quorum. In order to effectuate the foregoing agreements, to the maximum extent permitted by applicable law, the Investor hereby grants a proxy appointing each of the Chief Executive Officer and Chairman of the
Company attorney-in-fact and proxy for it and its controlled Affiliates with full power of substitution, for and in the name of it and its controlled Affiliates, to vote, express consent or dissent, or otherwise to utilize such voting power in the
manner and solely on the terms provided by this Section 5.6 with respect to the Underlying Common Shares and the Warrant Shares and the Investor hereby revokes any and all previous proxies granted with respect to the Underlying Common Shares
and the Warrant Shares for purposes of the matters contemplated in this Section 5.6; provided that such proxy may only be exercised if the Investor fails to comply with the terms of this Section 5.6. The proxy granted hereby is
irrevocable prior to the termination of this Agreement, is coupled with an interest and is granted in consideration of the Company entering into this Agreement and issuing the Capital Securities and Amended Warrant to the Investor. 

(b) Except to the extent set forth in Section 5.6(a), the Investor shall retain the right to vote in its sole discretion all
Underlying Common Shares and Warrant Shares beneficially owned by it and its controlled Affiliates (and which are entitled to vote on such matter) on any Designated Matter. 

 

 -15- 

 Section 5.7 Restriction on Dividends and Repurchases. 

(a) Until the earlier of (i) December 5, 2011 or (ii) such time as the Investor ceases to own any debt or equity
securities of the Company or an Affiliate of the Company acquired pursuant to this Agreement or the Amended Warrant, neither the Company nor any Company Subsidiary shall, without the consent of the Investor: 

(i) declare or pay any dividend or make any distribution on the Common Stock (other than (A) quarterly cash
dividends of not more than the amount of the last quarterly cash dividend per share declared or, if lower, publicly announced an intention to declare, on the Common Stock prior to October 14, 2008, as adjusted for any stock split, stock
dividend, reverse stock split, reclassification or similar transaction, (B) dividends payable solely in shares of Common Stock and (C) dividends or distributions of rights or Junior Stock in connection with a stockholders’ rights
plan); or 
 (ii) redeem, purchase or acquire any shares of Common Stock or other capital stock or other
equity securities of any kind of the Company, or any trust preferred securities issued by the Company or any Affiliate of the Company, other than (A) redemptions, purchases or other acquisitions of the Capital Securities (which purchases shall
be made on a pro rata basis, as provided in Section 5.7(b)), (B) redemptions, purchases or other acquisitions of shares of Common Stock or other Junior Stock, in each case in this clause (B) in connection with the administration of
any employee benefit plan in the ordinary course of business (including purchases to offset the Share Dilution Amount (as defined below) pursuant to a publicly announced repurchase plan) and consistent with past practice; provided that any
purchases to offset the Share Dilution Amount shall in no event exceed the Share Dilution Amount, (C) purchases or other acquisitions by a broker-dealer subsidiary of the Company solely for the purpose of market-making, stabilization or
customer facilitation transactions in trust preferred securities of the Company or an Affiliate of the Company, Junior Stock or Parity Stock in the ordinary course of its business, (D) purchases by a broker-dealer subsidiary of the Company of
trust preferred securities or capital stock of the Company or an Affiliate of the Company for resale pursuant to an offering by the Company of such trust preferred securities or capital stock underwritten by such broker-dealer subsidiary,
(E) any redemption or repurchase of rights pursuant to any stockholders’ rights plan, (F) the acquisition by the Company or any of the Company Subsidiaries of record ownership in Junior Stock, Parity Stock or trust preferred
securities of the Company or an Affiliate of the Company for the beneficial ownership of any other persons (other than the Company or any other Company Subsidiary), including as trustees or custodians, (G) the Other Transactions (including, for
the avoidance of doubt, the conversion of the Company’s Series B Shares and Series D Shares (in each case, as defined in the Investment Agreement) in accordance with their respective terms), and (H) the exchange or conversion of Junior
Stock for or into other Junior Stock or of Parity Stock or trust preferred securities of the Company or an Affiliate of the Company for or into other Parity Stock (with the same or lesser aggregate liquidation amount) or Junior Stock, in each case
set forth in this clause (H), solely to the extent required pursuant to binding contractual agreements entered into prior to the date hereof or any subsequent agreement for the accelerated exercise, settlement or exchange thereof for Common Stock

  

 -16- 

 
(clauses (C) and (F), collectively, the “Permitted Repurchases”). “Share Dilution Amount” means the increase in the number of diluted shares outstanding
(determined in accordance with GAAP, and as measured from the date of the Company’s most recently filed consolidated financial statements prior to the Closing Date) resulting from the grant, vesting or exercise of equity-based compensation to
employees and equitably adjusted for any stock split, stock dividend, reverse stock split, reclassification or similar transaction. 

(b) Until such time as the Investor ceases to own any Capital Securities, the Company shall not repurchase any Capital Securities
from any holder thereof, whether by means of open market purchase, negotiated transaction, or otherwise, other than Permitted Repurchases, unless it offers to repurchase a ratable portion of the Capital Securities then held by the Investor on the
same terms and conditions. 
 (c) The parties agree that, effective as of the date hereof, Section 4.8 of the Securities
Purchase Agreement shall be amended in its entirety by replacing such Section 4.8 with the provisions set forth in this Section 5.7 and any terms included in this Section 5.7 that are not otherwise defined in the Securities Purchase
Agreement shall have the meanings ascribed to such terms in this Agreement. 
 Section 5.8 Repurchase of Investor
Securities. From and after the date of this Agreement, the agreements set forth in Section 4.9 of the Securities Purchase Agreement shall be applicable (including to the Amended Warrant) following the redemption in whole of the Capital
Securities held by the Investor or the Transfer by the Investor of all of the Capital Securities held by the Investor to one or more third parties not affiliated with the Investor. 

Section 5.9 [Reserved.]  

Section 5.10 Bank or Thrift Holding Company Status. 

(a) The Company shall maintain its status as a Bank Holding Company (or, if permitted to become a Savings and Loan Holding Company in
accordance with Subsection (b) below, such status) for as long as the Investor owns any debt or equity securities of the Company or an Affiliate of the Company acquired pursuant to this Agreement. 

(b) The Company may become a Savings and Loan Holding Company in accordance with the requirements of the Home Owners’ Loan Act and
applicable regulations, provided that it has duly fulfilled any commitments to or other requirements or obligations imposed by the Board of Governors of the Federal Reserve System. 

Section 5.11 Compliance with Employ American Workers Act. Until the Company is no longer deemed a recipient of funding
under Title I of EESA or Section 13 of the Federal Reserve Act for purposes of the EAWA, as the same may be determined pursuant to any regulations or other legally binding guidance promulgated under EAWA, the Company shall comply, and the
Company shall take all necessary action to ensure that its subsidiaries comply, in all respects with the provisions of the EAWA and any regulations or other legally binding guidance promulgated under the EAWA. 

 

 -17- 

 Section 5.12 Investment Agreement. The Company will not agree to
(i) any amendment, waiver or modification of Sections 1.1, 1.2(c)(2)(vi), 3.2 or 4.7 of the Investment Agreement (other than corrections of obvious errors, if any, or other ministerial amendments) or (ii) any amendment or modification of
any other provision of the Investment Agreement to the extent such amendment or modification would adversely affect the Investor, in each case, without the prior written consent of the Investor. 

ARTICLE VI 

MISCELLANEOUS 

Section 6.1 Termination. This Agreement may be terminated at any time prior to the Closing: 

(a) by either the Investor or the Company if the Closing shall not have occurred by the 60th calendar day following the date hereof;
provided, however, that in the event the Closing has not occurred by such 60th calendar day, the parties will consult in good faith to determine whether to extend the term of this Agreement, it being understood that the parties shall be
required to consult only until the fifth day after such 60th calendar day and not be under any obligation to extend the term of this Agreement thereafter; provided, further, that the right to terminate this Agreement under this
Section 6.1(a) shall not be available to any party whose breach of any representation or warranty or failure to perform any obligation under this Agreement shall have caused or resulted in the failure of the Closing to occur on or prior to such
date; 
 (b) by either the Investor or the Company in the event that any Governmental Entity shall have issued an order,
decree or ruling or taken any other action restraining, enjoining or otherwise prohibiting the transactions contemplated by this Agreement and such order, decree, ruling or other action shall have become final and nonappealable; or 

(c) by the mutual written consent of the Investor and the Company. 

In the event of termination of this Agreement as provided in this Section 6.1, this Agreement shall forthwith become void and there
shall be no liability on the part of either party hereto except that nothing herein shall relieve either party from liability for any breach of this Agreement. 

Section 6.2 Survival of Representations and Warranties. The representations and warranties of the Company made herein
or in any certificates delivered in connection with the Closing shall survive the Closing without limitation. 

Section 6.3 Amendment. No amendment of any provision of this Agreement will be effective unless made in writing and
signed by an officer or a duly authorized representative of each of the Company and the Investor; provided that the Investor may unilaterally amend any provision of this Agreement to the extent required to comply with any changes after the
date hereof in applicable federal statutes. No failure or delay by any party in exercising any right, power or privilege hereunder shall operate as a waiver thereof nor shall any single or partial

  

 -18- 

 
exercise thereof preclude any other or further exercise of any other right, power or privilege. The rights and remedies herein provided shall be cumulative of any rights or remedies provided by
law. 
 Section 6.4 Waiver of Conditions. The conditions to each party’s obligation to consummate the
Exchange are for the sole benefit of such party and may be waived by such party in whole or in part to the extent permitted by applicable law. No waiver will be effective unless it is in a writing signed by a duly authorized officer of the waiving
party that makes express reference to the provision or provisions subject to such waiver. 
 Section 6.5 Governing
Law; Submission to Jurisdiction, etc. This Agreement and any claim, controversy or dispute arising under or related to this Agreement, the relationship of the parties, and/or the interpretation and enforcement of the rights and duties of the
parties shall be enforced, governed, and construed in all respects (whether in contract or in tort) in accordance with the federal law of the United States if and to the extent such law is applicable, and otherwise in accordance with the laws of the
State of New York applicable to contracts made and to be performed entirely within such State. Each of the parties hereto agrees (a) to submit to the exclusive jurisdiction and venue of the United States District Court for the District of
Columbia and the United States Court of Federal Claims for any and all civil actions, suits or proceedings arising out of or relating to this Agreement or the Amended Warrant or the Exchange contemplated hereby and (b) that notice may be served
upon (i) the Company at the address and in the manner set forth for notices to the Company in Section 6.6 and (ii) the Investor at the address and in the manner set forth for notices to the Company in Section 6.6, but otherwise
in accordance with federal law. To the extent permitted by applicable law, each of the parties hereto hereby unconditionally waives trial by jury in any civil legal action or proceeding relating to this Agreement or the Amended Warrant or the
Exchange contemplated hereby. 
 Section 6.6 Notices. Any notice, request, instruction or other document to
be given hereunder by any party to the other will be in writing and will be deemed to have been duly given (a) on the date of delivery if delivered personally, or by facsimile, upon confirmation of receipt, or (b) on the second business
day following the date of dispatch if delivered by a recognized next day courier service. All notices hereunder shall be delivered as set forth below or pursuant to such other instructions as may be designated in writing by the party to receive such
notice. 
 If to the Company: 

Sterling Financial Corporation 

111 North Wall Street 

Spokane, Washington 99201 

Attention: Greg Seibly 

Facsimile: (509) 358-6191 

Email: greg.seibly@sterlingsavings.com 

Telephone: (509) 363-2835 

With a copy to: 
  

 -19- 

 Davis Polk & Wardwell LLP 

450 Lexington Avenue 

New York, New York 10017 

Attention: John L. Douglas 

Facsimile: (212) 701-5145 

Email: john.douglas@davispolk.com 

Attention: John H. Butler 

Facsimile: (212) 701-5083 

Email: john.butler@davispolk.com 

With a copy to: 

Witherspoon Kelley 

422 W. Riverside Avenue, Suite 1100 

Spokane, WA 99201 

Attention: Andrew J. Schultheis 

Facsimile: (509) 458-2728 

Email: ajs@wkdtlaw.com 

If to the Investor: 

United States Department of the Treasury 

1500 Pennsylvania Avenue, NW, Room 2312 

Washington, DC 20220 

Attention: Chief Counsel Office of Financial Stability 

Facsimile: (202) 927-9225 

Email: OFSChiefCounselNotices@do.treas.gov 

With a copy to: 

Cadwalader, Wickersham & Taft LLP 

One World Financial Center 

New York, New York 10281 

Attention: Patrick T. Quinn 

Facsimile: (212) 504-6666 

Email: pat.quinn@cwt.com 

Telephone: (212) 504-6067 

Attention: William P. Mills 

Facsimile: (212) 504-6666 

Email: william.mills@cwt.com 

Telephone: (212) 504-6436 

Section 6.7 Definitions. 

(a) When a reference is made in this Agreement to a subsidiary of a person, the term “subsidiary” means any corporation,
partnership, joint venture, limited liability company or other entity (x) of which such person or a subsidiary of such person is a general partner or (y) of which 

 

 -20- 

 
a majority of the voting securities or other voting interests, or a majority of the securities or other interests of which having by their terms ordinary voting power to elect a majority of the
board of directors or persons performing similar functions with respect to such entity, is directly or indirectly owned by such person and/or one or more subsidiaries thereof. 

(b) The term “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 definition, “control” (including, with correlative meanings, the terms “controlled by” and “under common control with”) when used with respect to any
person, means the possession, directly or indirectly, of the power to cause the direction of management and/or policies of such person, whether through the ownership of voting securities by contract or otherwise. 

(c) The term “Business Combination” means a merger, consolidation, statutory share exchange or similar transaction that
requires the approval of the Company’s stockholders. 
 (d) The term “Company Material Adverse Effect”
means a material adverse effect on the business, results of operation or financial condition of the Company and its consolidated subsidiaries taken as a whole; provided, however, that Company Material Adverse Effect shall not be deemed to
include: (i) the effects of (A) changes after the date hereof in general business, economic or market conditions (including changes generally in prevailing interest rates, credit availability and liquidity, currency exchange rates and
price levels or trading volumes in the United States or foreign securities or credit markets), or any outbreak or escalation of hostilities, declared or undeclared acts of war or terrorism, in each case generally affecting the industries in which
the Company and its subsidiaries operate, (B) changes or proposed changes after the date hereof in GAAP or regulatory accounting requirements, or authoritative interpretations thereof, (C) changes or proposed changes after date hereof in
securities, banking and other laws of general applicability or related policies or interpretations of Governmental Entities (in the case of each of these clauses (A), (B) and (C), other than changes or occurrences to the extent that such
changes or occurrences have or would reasonably be expected to have a materially disproportionate adverse effect on the Company and its consolidated subsidiaries taken as a whole relative to comparable U.S. banking or financial services
organizations), or (D) changes in the market price or trading volume of the Common Stock or any other equity, equity-related or debt securities of the Company or its consolidated subsidiaries (it being understood and agreed that the exception
set forth in this clause (D) does not apply to the underlying reason giving rise to or contributing to any such change); or (ii) the ability of the Company to consummate the Exchange and the other transactions contemplated by this
Agreement and perform its obligations hereunder on a timely basis. 
 (e) “Designated Matters” means
(i) the election and removal of directors, (ii) the approval of any Business Combination, (iii) the approval of a sale of all or substantially all of the assets or property of the Company, (iv) the approval of a dissolution of
the Company, (v) the approval of any issuance of any securities of the Company on which holders of Common Stock are entitled to vote, (vi) the approval of any amendment to the Charter or bylaws of the Company on which holders of Common
Stock are entitled to vote and (vii) the approval of any other matters reasonably incidental to the foregoing subclauses (i) through (vi) as determined by the Investor. 

 

 -21- 

 (f) The term “EAWA” means the Employ American Workers Act (Section 1611 of
Division A, Title XVI of the American Recovery and Reinvestment Act of 2009), Public Law No. 111-5, effective as of February 17, 2009, as may be amended and in effect from time to time. 

(g) The term “Junior Stock” means the Common Stock and any other class or series of stock of the Company the terms of
which expressly provide that it ranks junior to the Capital Securities as to dividend rights and/or as to rights on liquidation, dissolution or winding up of the Company. 

(h) The term “Parity Stock” means any class or series of stock of the Company the terms of which do not expressly
provide that such class or series will rank senior or junior to the Capital Securities as to dividend rights and/or as to rights on liquidation, dissolution or winding up of the Company (in each case without regard to whether dividends accrue
cumulatively or non-cumulatively). 
 (i) The term “Previously Disclosed” means information set forth or
incorporated in the Company’s Annual Report on Form 10-K for the most recently completed fiscal year of the Company filed with the SEC prior to the date hereof or in its other reports and forms filed with or furnished to the SEC under
Section 13(a), 14(a) or 15(d) of the Exchange Act on or after the last day of the most recently completed fiscal year of the Company and prior to the date hereof. 

(j) To the extent any securities issued pursuant to this Agreement or the transactions contemplated hereby are registered in the name of
a designee of the Investor pursuant to Section 1.2 or 6.8(c) or transferred to an Affiliate of the Investor, all references herein to the Investor holding or owning any debt or equity securities of the Company, Capital Securities or Registrable
Securities (and any like variations thereof) shall be deemed to refer to the Investor, together with such designees and/or Affiliates, holding or owning any debt or equity securities, Capital Securities or Registrable Securities (and any like
variations thereof), as applicable. 
 Section 6.8 Assignment. Neither this Agreement nor any right, remedy,
obligation nor liability arising hereunder or by reason hereof shall be assignable by any party hereto without the prior written consent of each other party, and any attempt to assign any right, remedy, obligation or liability hereunder without such
consent shall be void, except (a) an assignment, in the case of a Business Combination where such party is not the surviving entity, or a sale of substantially all of its assets, to the entity which is the survivor of such Business Combination
or the purchaser in such sale, (b) as provided in Sections 5.4 and 5.5 and (c) an assignment by the Investor of this Agreement to an Affiliate of the Investor; provided that if the Investor assigns this Agreement to an Affiliate,
the Investor shall be relieved of its obligations under this Agreement but (i) all rights, remedies and obligations of the Investor hereunder shall continue and be enforceable and exercisable by such Affiliate, and (ii) the Company’s
obligations and liabilities hereunder shall continue to be outstanding. 
 Section 6.9 Severability. If any
provision of this Agreement, or the application thereof to any person or circumstance, is determined by a court of competent jurisdiction to be invalid, void or unenforceable, the remaining provisions hereof, or the application of such provision to
persons or circumstances other than those as to which it has been held invalid or unenforceable, will remain in full force and effect and shall in no way be affected, impaired or 

 

 -22- 

 
invalidated thereby, so long as the economic or legal substance of the transactions contemplated hereby is not affected in any manner materially adverse to any party. Upon such determination, the
parties shall negotiate in good faith in an effort to agree upon a suitable and equitable substitute provision to effect the original intent of the parties. 

Section 6.10 No Third-Party Beneficiaries. Nothing contained in this Agreement, expressed or implied, is intended to
confer upon any person or entity other than the Company and the Investor any benefit, right or remedies, except that (i) the provisions of Section 4.4 shall inure to the benefit of the persons referred to in that Section and (ii) the
provisions of Section 5.5 shall inure to the benefit of the persons holding Capital Securities during any tacked holding period, as contemplated by that Section. 

Section 6.11 Entire Agreement, etc. This Agreement (including the Annexes and Schedules hereto) constitutes the entire
agreement, and supersedes all other prior agreements, understandings, representations and warranties, both written and oral, between the parties, with respect to the subject matter hereof. For the avoidance of doubt, the Securities Purchase
Agreement shall remain in full force and effect. 
 Section 6.12 Counterparts and Facsimile. For the
convenience of the parties hereto, this Agreement may be executed in any number of separate counterparts, each such counterpart being deemed to be an original instrument, and all such counterparts will together constitute the same agreement.
Executed signature pages to this Agreement may be delivered by facsimile and such facsimiles will be deemed as sufficient as if actual signature pages had been delivered. 

Section 6.13 Specific Performance. The parties agree that irreparable damage would occur in the event that any of the
provisions of this Agreement were not performed in accordance with their specific terms. It is accordingly agreed that the parties shall be entitled (without the necessity of posting a bond) to specific performance of the terms hereof, this being in
addition to any other remedies to which they are entitled at law or equity. 
 [Remainder of Page Intentionally Left
Blank] 
  

 -23- 

 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed by
their respective authorized officers as of the day and year first above written. 
  

					
	STERLING FINANCIAL CORPORATION
		
	By:	 	 /s/ J. Gregory Seibly

		 	Name:	 	J. GREGORY SEIBLY
		 	Title:	 	PRESIDENT AND CEO
	
	 UNITED STATES DEPARTMENT OF THE TREASURY

		
	By:	 	  

		 	Name:	 	
		 	Title:	 	

 [Signature Page to Exchange Agreement] 

 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed by
their respective authorized officers as of the day and year first above written. 
  

					
	STERLING FINANCIAL CORPORATION
		
	By:	 	  

		 	Name:	 	
		 	Title:	 	
	
	 UNITED STATES DEPARTMENT OF THE TREASURY

		
	By:	 	 /s/ Herbert M. Allison Jr.

		 	Name:	 	Herbert M. Allison Jr.
		 	Title:	 	Assistant Secretary for Financial Stability

[Signature Page to Exchange Agreement] 

 ANNEX A 

FORM OF AMENDED WARRANT 
  

 Annex A-1 

 THE SECURITIES REPRESENTED BY THIS INSTRUMENT HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
AMENDED, OR THE SECURITIES LAWS OF ANY STATE AND MAY NOT BE TRANSFERRED, SOLD OR OTHERWISE DISPOSED OF EXCEPT WHILE A REGISTRATION STATEMENT RELATING THERETO IS IN EFFECT UNDER SUCH ACT AND APPLICABLE STATE SECURITIES LAWS OR PURSUANT TO AN
EXEMPTION FROM REGISTRATION UNDER SUCH ACT OR SUCH LAWS. 
 AMENDED AND RESTATED 

WARRANT 

to purchase 

6,437,677 

Shares of Common Stock 

of Sterling Financial Corporation 

Issue Date: [—], 2010 

1. Definitions. Unless the context otherwise requires, when used herein the following terms shall have the meanings indicated.

 “Affiliate” has the meaning ascribed to it in the Exchange Agreement. 

“Appraisal Procedure” means a procedure whereby two independent appraisers, one chosen by the Company and one by the
Original Warrantholder, shall mutually agree upon the determinations then the subject of appraisal. Each party shall deliver a notice to the other appointing its appraiser within 15 days after the Appraisal Procedure is invoked. If within 30 days
after appointment of the two appraisers they are unable to agree upon the amount in question, a third independent appraiser shall be chosen within 10 days thereafter by the mutual consent of such first two appraisers. The decision of the third
appraiser so appointed and chosen shall be given within 30 days after the selection of such third appraiser. If three appraisers shall be appointed and the determination of one appraiser is disparate from the middle determination by more than twice
the amount by which the other determination is disparate from the middle determination, then the determination of such appraiser shall be excluded, the remaining two determinations shall be averaged and such average shall be binding and conclusive
upon the Company and the Original Warrantholder; otherwise, the average of all three determinations shall be binding upon the Company and the Original Warrantholder. The costs of conducting any Appraisal Procedure shall be borne by the Company.

 “Board of Directors” means the board of directors of the Company, including any duly authorized committee
thereof. 
 “Business Combination” means a merger, consolidation, statutory share exchange or similar
transaction that requires the approval of the Company’s stockholders. 

 “business day” means any day except Saturday, Sunday and any day on which
banking institutions in the State of New York generally are authorized or required by law or other governmental actions to close. 

“Capital Stock” means (A) with respect to any Person that is a corporation or company, any and all shares,
interests, participations or other equivalents (however designated) of capital or capital stock of such Person and (B) with respect to any Person that is not a corporation or company, any and all partnership or other equity interests of such
Person. 
 “Charter” means, with respect to any Person, its certificate or articles of incorporation, articles
of association, or similar organizational document. 
 “Common Stock” means the common stock, par value $0.00
per share, of the Company. 
 “Common Stock Issuance” has the meaning set forth in Section 13(B).

 “Company” means the Person whose name, corporate or other organizational form and jurisdiction of
organization is set forth in Item 1 of Schedule A hereto. 
 “convertible securities” has the
meaning set forth in Section 13(B). 
 “Exchange Act” means the Securities Exchange Act of 1934, as
amended, or any successor statute, and the rules and regulations promulgated thereunder. 
 “Exchange
Agreement” means the Exchange Agreement, dated as of April 29, 2010, as amended from time to time, between the Company and the United States Department of the Treasury, including all annexes and schedules thereto. 

“Exercise Price” means the amount set forth in Item 2 of Schedule A hereto. 

“Expiration Time” has the meaning set forth in Section 3. 

“Fair Market Value” means, with respect to any security or other property, the fair market value of such security or
other property as determined by the Board of Directors, acting in good faith or, with respect to Section 14, as determined by the Original Warrantholder acting in good faith. For so long as the Original Warrantholder holds this Warrant or any
portion thereof, it may object in writing to the Board of Directors’ calculation of fair market value within 10 days of receipt of written notice thereof. If the Original Warrantholder and the Company are unable to agree on fair market value
during the 10-day period following the delivery of the Original Warrantholder’s objection, the Appraisal Procedure may be invoked by either party to determine Fair Market Value by delivering written notification thereof not later than the 30th
day after delivery of the Original Warrantholder’s objection. 
 “Initial Number” has the meaning set
forth in Section 13(B)(1). 
 “Investment Agreement” means the Investment Agreement, dated as of
April 29, 2010, as amended from time to time, between the Company, on the one hand, and Thomas H. Lee Equity 
  

 -2- 

 
Fund VI, L.P., Thomas H. Lee Parallel Fund VI, L.P. and Thomas H. Lee Parallel (DT) Fund VI, L.P., on the other hand. 

“Issue Date” means the date set forth in Item 3 of Schedule A hereto. 

“Market Price” means, with respect to the Common Stock, on any given date, the average VWAP for the 5 consecutive
trading day-period ending on the Trading Day immediately preceding such given date. “Market Price” shall be determined without reference to after hours or extended hours trading. If the Common Stock is not listed and traded in a manner
that the quotations referred to above are available for the period required hereunder, the Market Price per share of Common Stock shall be deemed to be (i) in the event that any portion of the Warrant is held by the Original Warrantholder, the
fair market value per share of the Common Stock as determined in good faith by the Original Warrantholder or (ii) in all other circumstances, the fair market value per share of the Common Stock as determined in good faith by the Board of
Directors in reliance on an opinion of a nationally recognized independent investment banking corporation retained by the Company for this purpose and certified in a resolution to the Warrantholder. For the purposes of determining the Market Price
of the Common Stock on the “trading day” preceding, on or following the occurrence of an event, (i) that trading day shall be deemed to commence immediately after the regular scheduled closing time of trading on the New York Stock
Exchange or, if trading is closed at an earlier time, such earlier time and (ii) that trading day shall end at the next regular scheduled closing time, or if trading is closed at an earlier time, such earlier time (for the avoidance of doubt,
and as an example, if the Market Price is to be determined as of the last trading day preceding a specified event and the closing time of trading on a particular day is 4:00 p.m. and the specified event occurs at 5:00 p.m. on that day, the Market
Price would be determined by reference to such 4:00 p.m. closing time). 
 “Ordinary Cash Dividends” means a
regular quarterly cash dividend on shares of Common Stock out of surplus or net profits legally available therefor (determined in accordance with generally accepted accounting principles in effect from time to time), provided that Ordinary
Cash Dividends shall not include any cash dividends paid subsequent to the Issue Date to the extent the aggregate per share dividends paid on the outstanding Common Stock in any quarter exceed the amount set forth in Item 4 of Schedule A
hereto, as adjusted for any stock split, stock dividend, reverse stock split, reclassification or similar transaction. 

“Original Warrant” has the meaning set forth in Section 15. 

“Original Warrantholder” means the United States Department of the Treasury and any successor or assign that is an
Affiliate of the United States Department of the Treasury. Any actions specified to be taken by the Original Warrantholder hereunder may only be taken by such Person and not by any other Warrantholder. 

“Permitted Transactions” has the meaning set forth in Section 13(B). 

“Person” has the meaning given to it in Section 3(a)(9) of the Exchange Act and as used in Sections 13(d)(3) and
14(d)(2) of the Exchange Act. 
 “Per Share Fair Market Value” has the meaning set forth in Section 13(C).

  

 -3- 

 “Pro Rata Repurchases” means any purchase of shares of Common Stock by the
Company or any Affiliate thereof pursuant to (A) any tender offer or exchange offer subject to Section 13(e) or 14(e) of the Exchange Act or Regulation 14E promulgated thereunder or (B) any other offer available to substantially all
holders of Common Stock, in the case of both (A) or (B), whether for cash, shares of Capital Stock of the Company, other securities of the Company, evidences of indebtedness of the Company or any other Person or any other property (including,
without limitation, shares of Capital Stock, other securities or evidences of indebtedness of a subsidiary), or any combination thereof, effected while this Warrant is outstanding. The “Effective Date” of a Pro Rata Repurchase shall
mean the date of acceptance of shares of Common Stock for purchase or exchange by the Company under any tender or exchange offer which is a Pro Rata Repurchase or the date of purchase with respect to any Pro Rata Repurchase that is not a tender or
exchange offer. 
 “Regulatory Approvals” with respect to the Warrantholder, means, to the extent applicable
and required to permit the Warrantholder to exercise this Warrant for shares of Common Stock and to own such Common Stock without the Warrantholder being in violation of any applicable law, rule or regulation, including, without limitation, the Bank
Holding Company Act of 1956, as amended, and the Change in Bank Control Act of 1978, as amended, and the receipt of any necessary approvals and authorizations of, filings and registrations with, notifications to, or expiration or termination of any
applicable waiting period under, the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, and any other applicable laws and the rules and regulations thereunder. 

“SEC” means the U.S. Securities and Exchange Commission. 

“Securities Act” means the Securities Act of 1933, as amended, or any successor statute, and the rules and regulations
promulgated thereunder. 
 “Shares” has the meaning set forth in Section 2. 

“trading day” means (A) if the shares of Common Stock are not traded on any national or regional securities
exchange or association or over-the-counter market, a business day or (B) if the shares of Common Stock are traded on any national or regional securities exchange or association or over-the-counter market, a business day on which such relevant
exchange or quotation system is scheduled to be open for business and on which the shares of Common Stock (i) are not suspended from trading on any national or regional securities exchange or association or over-the-counter market for any
period or periods aggregating one half hour or longer; and (ii) have traded at least once on the national or regional securities exchange or association or over-the-counter market that is the primary market for the trading of the shares of
Common Stock. 
 “U.S. GAAP” means United States generally accepted accounting principles. 

“VWAP” means the volume-weighted average trading price of a share of Common Stock as reported by Bloomberg LP.

 “Warrant” means this Amended and Restated Warrant, issued pursuant to the Exchange Agreement. 

 

 -4- 

 “Warrantholder” has the meaning set forth in Section 2. 

2. Number of Shares; Exercise Price. This certifies that, for value received, the United States Department of the Treasury and its
successors and assigns (the “Warrantholder”) is entitled, upon the terms and subject to the conditions hereinafter set forth, to acquire from the Company, in whole or in part, after the receipt of all applicable Regulatory
Approvals, if any, up to an aggregate of the number of fully paid and nonassessable shares of Common Stock set forth in Item 5 of Schedule A hereto, at a purchase price per share of Common Stock equal to the Exercise Price. The number of
shares of Common Stock (the “Shares”) and the Exercise Price are subject to adjustment as provided herein, and all references to “Common Stock,” “Shares” and “Exercise Price” herein shall be deemed to
include any such adjustment or series of adjustments. 
 3. Exercise of Warrant; Term. Subject to Section 2, to the
extent permitted by applicable laws and regulations, the right to purchase the Shares represented by this Warrant is exercisable, in whole or in part by the Warrantholder, at any time or from time to time after the execution and delivery of this
Warrant by the Company on the date hereof, but in no event later than 5:00 p.m., New York City time on [—],
20201 (the “Expiration Time”), by
(A) the surrender of this Warrant and Notice of Exercise, in substantially the form set forth in Annex A attached hereto, duly completed and executed on behalf of the Warrantholder, at the principal executive office of the Company located at
the address set forth in Item 6 of Schedule A hereto (or such other office or agency of the Company in the United States as it may designate by notice in writing to the Warrantholder at the address of the Warrantholder appearing on the
books of the Company), and (B) payment of the Exercise Price for the Shares thereby purchased: 

(i) by having the Company withhold, from the shares of Common Stock that would otherwise be delivered to the
Warrantholder upon such exercise, shares of Common Stock issuable upon exercise of the Warrant equal in value to the aggregate Exercise Price as to which this Warrant is so exercised based on the Market Price of the Common Stock on the trading day
on which this Warrant is exercised and the Notice of Exercise is delivered to the Company pursuant to this Section 3, or 

(ii) with the consent of both the Company and the Warrantholder, by tendering in cash, by certified or cashier’s
check payable to the order of the Company, or by wire transfer of immediately available funds to an account designated by the Company. 

If the Warrantholder does not exercise this Warrant in its entirety, the Warrantholder will be entitled to receive from the Company
within a reasonable time, and in any event not exceeding three business days, a new warrant in substantially identical form for the purchase of that number of Shares equal to the difference between the number of Shares subject to this Warrant and
the number of Shares as to which this Warrant is so exercised. Notwithstanding anything in this Warrant to the contrary, the Warrantholder hereby acknowledges and agrees that its exercise of this Warrant for Shares is subject to the condition that
the Warrantholder will have first received any applicable Regulatory Approvals. 
  

	1
	Ten years from Issue Date. 

  

 -5- 

 4. Issuance of Shares; Authorization; Listing. Certificates for Shares issued upon
exercise of this Warrant will be issued in such name or names as the Warrantholder may designate and will be delivered to such named Person or Persons within a reasonable time, not to exceed three business days after the date on which this Warrant
has been duly exercised in accordance with the terms of this Warrant. The Company hereby represents and warrants that any Shares issued upon the exercise of this Warrant in accordance with the provisions of Section 3 will be duly and validly
authorized and issued, fully paid and nonassessable and free from all taxes, liens and charges (other than liens or charges created by the Warrantholder, income and franchise taxes incurred in connection with the exercise of the Warrant or taxes in
respect of any transfer occurring contemporaneously therewith). The Company agrees that the Shares so issued will be deemed to have been issued to the Warrantholder as of the close of business on the date on which this Warrant and payment of the
Exercise Price are delivered to the Company in accordance with the terms of this Warrant, notwithstanding that the stock transfer books of the Company may then be closed or certificates representing such Shares may not be actually delivered on such
date. The Company will at all times reserve and keep available, out of its authorized but unissued Common Stock, solely for the purpose of providing for the exercise of this Warrant, the aggregate number of shares of Common Stock then issuable upon
exercise of this Warrant at any time. The Company will (A) procure, at its sole expense, the listing of the Shares issuable upon exercise of this Warrant at any time, subject to issuance or notice of issuance, on all principal stock exchanges
on which the Common Stock is then listed or traded and (B) maintain such listings of such Shares at all times after issuance. The Company will use reasonable best efforts to ensure that the Shares may be issued without violation of any
applicable law or regulation or of any requirement of any securities exchange on which the Shares are listed or traded. 
 5.
No Fractional Shares or Scrip. No fractional Shares or scrip representing fractional Shares shall be issued upon any exercise of this Warrant. In lieu of any fractional Share to which the Warrantholder would otherwise be entitled, the
Warrantholder shall be entitled to receive a cash payment equal to the Market Price of the Common Stock on the last trading day preceding the date of exercise less the pro-rated Exercise Price for such fractional share. 

6. No Rights as Stockholders; Transfer Books. This Warrant does not entitle the Warrantholder to any voting rights or other rights
as a stockholder of the Company prior to the date of exercise hereof. The Company will at no time close its transfer books against transfer of this Warrant in any manner which interferes with the timely exercise of this Warrant. 

7. Charges, Taxes and Expenses. Issuance of certificates for Shares to the Warrantholder upon the exercise of this Warrant shall
be made without charge to the Warrantholder for any issue or transfer tax or other incidental expense in respect of the issuance of such certificates, all of which taxes and expenses shall be paid by the Company. 

8. Transfer/Assignment. 

(A) Subject to compliance with clause (B) of this Section 8, this Warrant and all rights hereunder are transferable and
assignable, in whole or in part, upon the books of the Company by the registered holder hereof in person or by duly authorized attorney, and a new warrant shall be 

 

 -6- 

 
made and delivered by the Company, of the same tenor and date as this Warrant but registered in the name of one or more transferees, upon surrender of this Warrant, duly endorsed, to the office
or agency of the Company described in Section 3. All expenses (other than stock transfer taxes) and other charges payable in connection with the preparation, execution and delivery of the new warrants pursuant to this Section 8 shall be
paid by the Company. 
 (B) If and for so long as required by the Exchange Agreement, this Warrant shall contain the legend as
set forth in Section 5.2(a) of the Exchange Agreement. 
 9. Exchange and Registry of Warrant. This Warrant is
exchangeable, upon the surrender hereof by the Warrantholder to the Company, for a new warrant or warrants of like tenor and representing the right to purchase the same aggregate number of Shares. The Company shall maintain a registry showing the
name and address of the Warrantholder as the registered holder of this Warrant. This Warrant may be surrendered for exchange or exercise in accordance with its terms, at the office of the Company, and the Company shall be entitled to rely in all
respects, prior to written notice to the contrary, upon such registry. 
 10. Loss, Theft, Destruction or Mutilation of
Warrant. Upon receipt by the Company of evidence reasonably satisfactory to it of the loss, theft, destruction or mutilation of this Warrant, and in the case of any such loss, theft or destruction, upon receipt of a bond, indemnity or security
reasonably satisfactory to the Company, or, in the case of any such mutilation, upon surrender and cancellation of this Warrant, the Company shall make and deliver, in lieu of such lost, stolen, destroyed or mutilated Warrant, a new Warrant of like
tenor and representing the right to purchase the same aggregate number of Shares as provided for in such lost, stolen, destroyed or mutilated Warrant. 

11. Saturdays, Sundays, Holidays, etc. If the last or appointed day for the taking of any action or the expiration of any right
required or granted herein shall not be a business day, then such action may be taken or such right may be exercised on the next succeeding day that is a business day. 

12. Rule 144 Information. The Company covenants that it will use its reasonable best efforts to timely file all reports and other
documents required to be filed by it under the Securities Act and the Exchange Act and the rules and regulations promulgated by the SEC thereunder (or, if the Company is not required to file such reports, it will, upon the request of any
Warrantholder, make publicly available such information as necessary to permit sales pursuant to Rule 144 under the Securities Act), and it will use reasonable best efforts to take such further action as any Warrantholder may reasonably request, in
each case to the extent required from time to time to enable such holder to, if permitted by the terms of this Warrant and the Exchange Agreement, sell this Warrant without registration under the Securities Act within the limitation of the
exemptions provided by (A) Rule 144 under the Securities Act, as such rule may be amended from time to time, or (B) any successor rule or regulation hereafter adopted by the SEC. Upon the written request of any Warrantholder, the Company
will deliver to such Warrantholder a written statement that it has complied with such requirements. 
 13. Adjustments and
Other Rights. The Exercise Price and the number of Shares issuable upon exercise of this Warrant shall be subject to adjustment from time to time as 

 

 -7- 

 
follows; provided, that if more than one subsection of this Section 13 is applicable to a single event, the subsection shall be applied that produces the largest adjustment and no
single event shall cause an adjustment under more than one subsection of this Section 13 so as to result in duplication: 

(A) Stock Splits, Subdivisions, Reclassifications or Combinations. If the Company shall (i) declare and pay a dividend
or make a distribution on its Common Stock in shares of Common Stock, (ii) subdivide or reclassify the outstanding shares of Common Stock into a greater number of shares, or (iii) combine or reclassify the outstanding shares of Common
Stock into a smaller number of shares, the number of Shares issuable upon exercise of this Warrant at the time of the record date for such dividend or distribution or the effective date of such subdivision, combination or reclassification shall be
proportionately adjusted so that the Warrantholder after such date shall be entitled to purchase the number of shares of Common Stock which such holder would have owned or been entitled to receive in respect of the shares of Common Stock subject to
this Warrant after such date had this Warrant been exercised immediately prior to such date. In such event, the Exercise Price in effect at the time of the record date for such dividend or distribution or the effective date of such subdivision,
combination or reclassification shall be adjusted to the number obtained by dividing (x) the product of (1) the number of Shares issuable upon the exercise of this Warrant before such adjustment and (2) the Exercise Price in effect
immediately prior to the record or effective date, as the case may be, for the dividend, distribution, subdivision, combination or reclassification giving rise to this adjustment by (y) the new number of Shares issuable upon exercise of the
Warrant determined pursuant to the immediately preceding sentence. 
 (B) Certain Issuances of Common Shares or Convertible
Securities. Until the earlier of (i) the date on which the Original Warrantholder no longer holds this Warrant or any portion thereof and (ii) the third anniversary of the Issue Date, if the Company shall issue shares of Common Stock
(or rights or warrants or other securities exercisable or convertible into or exchangeable for shares of Common Stock) (collectively, “convertible securities”, and, such transaction, a “Common Stock Issuance”),
other than in Permitted Transactions (as defined below) or a transaction to which subsection (A) of this Section 13 is applicable, without consideration or at a consideration per share of Common Stock (or having a conversion price per
share of Common Stock) that is less than the then applicable Exercise Price, then: 
 (1) the Exercise Price
shall be adjusted to equal the consideration per share of Common Stock received by the Company in connection with the Common Stock Issuance; and 

(2) the number of Shares issuable upon the exercise of this Warrant immediately prior to the Common Stock Issuance
(the “Initial Number”) shall be increased to the number obtained by multiplying the Initial Number by a fraction (A) the numerator of which shall be the Exercise Price in effect immediately prior to the Common Stock Issuance
and (B) the denominator of which shall be the consideration per share of Common Stock received by the Company in connection with the Common Stock Issuance. 
  

 -8- 

 For purposes of the foregoing, the aggregate consideration receivable by the Company in
connection with a Common Stock Issuance shall be deemed to be equal to the sum of the net offering price (including the Fair Market Value of any non-cash consideration and after deduction of any related expenses payable to third parties) of all such
securities plus the minimum aggregate amount, if any, payable upon exercise or conversion of any such convertible securities into shares of Common Stock; and “Permitted Transactions” shall mean issuances (i) as consideration
for or to fund the acquisition of businesses and/or related assets at Fair Market Value, (ii) in connection with employee benefit plans and compensation related arrangements in the ordinary course and consistent with past practice approved by
the Board of Directors, (iii) in connection with a public or broadly marketed offering and sale of Common Stock or convertible securities for cash conducted by the Company or its affiliates pursuant to registration under the Securities Act or
Rule 144A thereunder on a basis consistent with capital raising transactions by comparable financial institutions and (iv) in connection with the exercise of preemptive rights on terms existing as of the Issue Date. Any adjustment made pursuant
to this Section 13(B) shall become effective immediately upon the date of such issuance. 
 (C) Other Distributions.
In case the Company shall fix a record date for the making of a distribution to all holders of shares of its Common Stock of securities, evidences of indebtedness, assets, cash, rights or warrants (excluding Ordinary Cash Dividends, dividends of its
Common Stock and other dividends or distributions referred to in Section 13(A)), in each such case, the Exercise Price in effect prior to such record date shall be reduced immediately thereafter to the price determined by multiplying the
Exercise Price in effect immediately prior to the reduction by the quotient of (x) the Market Price of the Common Stock on the last trading day preceding the first date on which the Common Stock trades regular way on the principal national
securities exchange on which the Common Stock is listed or admitted to trading without the right to receive such distribution, minus the amount of cash and/or the Fair Market Value of the securities, evidences of indebtedness, assets, rights or
warrants to be so distributed in respect of one share of Common Stock (such amount and/or Fair Market Value, the “Per Share Fair Market Value”) divided by (y) such Market Price on such date specified in clause (x); such
adjustment shall be made successively whenever such a record date is fixed. In such event, the number of Shares issuable upon the exercise of this Warrant shall be increased to the number obtained by dividing (x) the product of (1) the
number of Shares issuable upon the exercise of this Warrant before such adjustment, and (2) the Exercise Price in effect immediately prior to the distribution giving rise to this adjustment by (y) the new Exercise Price determined in
accordance with the immediately preceding sentence. In the case of adjustment for a cash dividend that is, or is coincident with, a regular quarterly cash dividend, the Per Share Fair Market Value would be reduced by the per share amount of the
portion of the cash dividend that would constitute an Ordinary Cash Dividend. In the event that such distribution is not so made, the Exercise Price and the number of Shares issuable upon exercise of this Warrant then in effect shall be readjusted,
effective as of the date when the Board of Directors determines not to distribute such shares, evidences of indebtedness, assets, rights, cash or warrants, as the case may be, to the Exercise Price that would then be in effect and the number of
Shares that would then be issuable upon exercise of this Warrant if such record date had not been fixed. 
 (D) Certain
Repurchases of Common Stock. In case the Company effects a Pro Rata Repurchase of Common Stock, then the Exercise Price shall be reduced to the price determined by multiplying the Exercise Price in effect immediately prior to the Effective Date
of such Pro 
  

 -9- 

 
Rata Repurchase by a fraction of which the numerator shall be (i) the product of (x) the number of shares of Common Stock outstanding immediately before such Pro Rata Repurchase and
(y) the Market Price of a share of Common Stock on the trading day immediately preceding the first public announcement by the Company or any of its Affiliates of the intent to effect such Pro Rata Repurchase, minus (ii) the aggregate
purchase price of the Pro Rata Repurchase, and of which the denominator shall be the product of (a) the number of shares of Common Stock outstanding immediately prior to such Pro Rata Repurchase minus the number of shares of Common Stock so
repurchased and (b) the Market Price per share of Common Stock on the trading day immediately preceding the first public announcement by the Company or any of its Affiliates of the intent to effect such Pro Rata Repurchase. In such event, the
number of shares of Common Stock issuable upon the exercise of this Warrant shall be increased to the number obtained by dividing (x) the product of (1) the number of Shares issuable upon the exercise of this Warrant before such
adjustment, and (2) the Exercise Price in effect immediately prior to the Pro Rata Repurchase giving rise to this adjustment by (y) the new Exercise Price determined in accordance with the immediately preceding sentence. For the avoidance
of doubt, no increase to the Exercise Price or decrease in the number of Shares issuable upon exercise of this Warrant shall be made pursuant to this Section 13(D). 

(E) Business Combinations. In case of any Business Combination or reclassification of Common Stock (other than a reclassification
of Common Stock referred to in Section 13(A)), the Warrantholder’s right to receive Shares upon exercise of this Warrant shall be converted into the right to exercise this Warrant to acquire the number of shares of stock or other
securities or property (including cash) which the Common Stock issuable (at the time of such Business Combination or reclassification) upon exercise of this Warrant immediately prior to such Business Combination or reclassification would have been
entitled to receive upon consummation of such Business Combination or reclassification; and in any such case, if necessary, the provisions set forth herein with respect to the rights and interests thereafter of the Warrantholder shall be
appropriately adjusted so as to be applicable, as nearly as may reasonably be, to the Warrantholder’s right to exercise this Warrant in exchange for any shares of stock or other securities or property pursuant to this paragraph. In determining
the kind and amount of stock, securities or the property receivable upon exercise of this Warrant following the consummation of such Business Combination, if the holders of Common Stock have the right to elect the kind or amount of consideration
receivable upon consummation of such Business Combination, then the consideration that the Warrantholder shall be entitled to receive upon exercise shall be deemed to be the types and amounts of consideration received by the majority of all holders
of the shares of common stock that affirmatively make an election (or of all such holders if none make an election). 
 (F)
Rounding of Calculations; Minimum Adjustments. All calculations under this Section 13 shall be made to the nearest one-tenth (1/10th) of a cent or to the nearest one-hundredth (1/100th) of a share, as the case may be. Any
provision of this Section 13 to the contrary notwithstanding, no adjustment in the Exercise Price or the number of Shares into which this Warrant is exercisable shall be made if the amount of such adjustment would be less than $0.01 or
one-tenth (1/10th) of a share of Common Stock, but any such amount shall be carried forward and an adjustment with respect thereto shall be made at the time of and together with any subsequent adjustment which, together with such amount and any
other amount or 
  

 -10- 

 
amounts so carried forward, shall aggregate $0.01 or 1/10th of a share of Common Stock, or more. 

(G) Timing of Issuance of Additional Common Stock upon Certain Adjustments. In any case in which the provisions of this
Section 13 shall require that an adjustment shall become effective immediately after a record date for an event, the Company may defer until the occurrence of such event (i) issuing to the Warrantholder of this Warrant exercised after such
record date and before the occurrence of such event the additional shares of Common Stock issuable upon such exercise by reason of the adjustment required by such event over and above the shares of Common Stock issuable upon such exercise before
giving effect to such adjustment and (ii) paying to such Warrantholder any amount of cash in lieu of a fractional share of Common Stock; provided, however, that the Company upon request shall deliver to such Warrantholder a due
bill or other appropriate instrument evidencing such Warrantholder’s right to receive such additional shares, and such cash, upon the occurrence of the event requiring such adjustment. 

(H) Other Events. For so long as the Original Warrantholder holds this Warrant or any portion thereof, if any event occurs as to
which the provisions of this Section 13 are not strictly applicable or, if strictly applicable, would not, in the good faith judgment of the Board of Directors of the Company, fairly and adequately protect the purchase rights of the Warrants in
accordance with the essential intent and principles of such provisions, then the Board of Directors shall make such adjustments in the application of such provisions, in accordance with such essential intent and principles, as shall be reasonably
necessary, in the good faith opinion of the Board of Directors, to protect such purchase rights as aforesaid. The Exercise Price or the number of Shares into which this Warrant is exercisable shall not be adjusted in the event of a change in the par
value of the Common Stock or a change in the jurisdiction of incorporation of the Company. 
 (I) Statement Regarding
Adjustments. Whenever the Exercise Price or the number of Shares into which this Warrant is exercisable shall be adjusted as provided in Section 13, the Company shall forthwith file at the principal office of the Company a statement showing
in reasonable detail the facts requiring such adjustment and the Exercise Price that shall be in effect and the number of Shares into which this Warrant shall be exercisable after such adjustment, and the Company shall also cause a copy of such
statement to be sent by mail, first class postage prepaid, to each Warrantholder at the address appearing in the Company’s records. 

(J) Notice of Adjustment Event. In the event that the Company shall propose to take any action of the type described in this
Section 13 (but only if the action of the type described in this Section 13 would result in an adjustment in the Exercise Price or the number of Shares into which this Warrant is exercisable or a change in the type of securities or
property to be delivered upon exercise of this Warrant), the Company shall give notice to the Warrantholder, in the manner set forth in Section 13(I), which notice shall specify the record date, if any, with respect to any such action and the
approximate date on which such action is to take place. Such notice shall also set forth the facts with respect thereto as shall be reasonably necessary to indicate the effect on the Exercise Price and the number, kind or class of shares or other
securities or property which shall be deliverable upon exercise of this Warrant. In the case of any action which would require the fixing of a record date, such notice shall be given at least 10 days prior to the date so 

 

 -11- 

 
fixed, and in case of all other action, such notice shall be given at least 15 days prior to the taking of such proposed action. Failure to give such notice, or any defect therein, shall not
affect the legality or validity of any such action. 
 (K) Proceedings Prior to Any Action Requiring Adjustment. As a
condition precedent to the taking of any action which would require an adjustment pursuant to this Section 13, the Company shall take any action which may be necessary, including obtaining regulatory, New York Stock Exchange, NASDAQ Stock
Market or other applicable national securities exchange or stockholder approvals or exemptions, in order that the Company may thereafter validly and legally issue as fully paid and nonassessable all shares of Common Stock that the Warrantholder is
entitled to receive upon exercise of this Warrant pursuant to this Section 13. 
 (L) Adjustment Rules. Any
adjustments pursuant to this Section 13 shall be made successively whenever an event referred to herein shall occur. 
 (M)
Other Transactions. Notwithstanding anything to the contrary herein, for the avoidance of doubt, the Exercise Price and the number of Shares issuable upon exercise of this Warrant shall not be subject to adjustment pursuant to this
Section 13 as a result of the consummation of the transactions contemplated by the Investment Agreement or the Other Private Placements (as defined in the Investment Agreement) (including, for the avoidance of doubt, the conversion of the
Company’s Series B Shares and Series D Shares (in each case, as defined in the Investment Agreement) in accordance with their respective terms). 

14. Exchange. At any time following the date on which the shares of Common Stock of the Company are no longer listed or admitted
to trading on a national securities exchange (other than in connection with any Business Combination), the Original Warrantholder may cause the Company to exchange all or a portion of this Warrant for an economic interest or security (to be
determined by the Original Warrantholder after consultation with the Company) of the Company classified as permanent equity under U.S. GAAP having a value equal to the Fair Market Value of the portion of the Warrant so exchanged. The Original
Warrantholder shall calculate any Fair Market Value required to be calculated pursuant to this Section 14, which shall not be subject to the Appraisal Procedure. 

15. Effect of Execution. This Warrant and the terms and conditions set forth herein hereby amend and restate the terms and
conditions of that certain warrant arising under that certain Securities Purchase Agreement – Standard Terms incorporated into the Letter Agreement, dated as of December 5, 2008, as amended from time to time, between the Company and the
Original Warrantholder (the “Original Warrant”), and the Original Warrant shall have no further force or effect as of and following the Issue Date. 

16. No Impairment. The Company will not, by amendment of its Charter or through any reorganization, transfer of assets,
consolidation, merger, dissolution, issue or sale of securities or any other voluntary action, avoid or seek to avoid the observance or performance of any of the terms to be observed or performed hereunder by the Company, but will at all times in
good faith assist in the carrying out of all the provisions of this Warrant and in taking of all such action as may be necessary or appropriate in order to protect the rights of the Warrantholder. 

 

 -12- 

 17. Governing Law, etc. This Warrant and any claim, controversy or dispute arising
under or related to this Agreement, the relationship of the parties, and/or the interpretation and enforcement of the rights and duties of the parties shall be enforced, governed and construed in all respects (whether in contract or in tort) in
accordance with the federal law of the United States if and to the extent such law is applicable, and otherwise in accordance with the laws of the State of New York applicable to contracts made and to be performed entirely within such State. Each of
the Company and the Warrantholder agrees (a) to submit to the exclusive jurisdiction and venue of the United States District Court for the District of Columbia for any civil action, suit or proceeding arising out of or relating to this Warrant
or the transactions contemplated hereby, and (b) that notice may be served upon the Company at the address in Section 21 below and upon the Warrantholder at the address for the Warrantholder set forth in the registry maintained by the
Company pursuant to Section 9 hereof. To the extent permitted by applicable law, each of the Company and the Warrantholder hereby unconditionally waives trial by jury in any civil legal action or proceeding relating to the Warrant or the
transactions contemplated hereby or thereby. 
 18. Binding Effect. This Warrant shall be binding upon any successors or
assigns of the Company. 
 19. Amendments. This Warrant may be amended and the observance of any term of this Warrant may
be waived only with the written consent of the Company and the Warrantholder. 
 20. Prohibited Actions. The Company
agrees that it will not take any action which would entitle the Warrantholder to an adjustment of the Exercise Price if the total number of shares of Common Stock issuable after such action upon exercise of this Warrant, together with all shares of
Common Stock then outstanding and all shares of Common Stock then issuable upon the exercise of all outstanding options, warrants, conversion and other rights, would exceed the total number of shares of Common Stock then authorized by its Charter.

 21. Notices. Any notice, request, instruction or other document to be given hereunder by any party to the other will
be in writing and will be deemed to have been duly given (a) on the date of delivery if delivered personally, or by facsimile, upon confirmation of receipt, or (b) on the second business day following the date of dispatch if delivered by a
recognized next day courier service. All notices hereunder shall be delivered as set forth in Item 7 of Schedule A hereto, or pursuant to such other instructions as may be designated in writing by the party to receive such notice.

 22. Entire Agreement. This Warrant, the forms attached hereto and Schedule A hereto (the terms of which are
incorporated by reference herein), and the Exchange Agreement (including all documents incorporated therein), contain the entire agreement between the parties with respect to the subject matter hereof and supersede all prior and contemporaneous
arrangements or undertakings with respect thereto. 
 [Remainder of page intentionally left blank] 

 

 -13- 

 IN WITNESS WHEREOF, the Company has caused this Warrant to be duly executed by a duly
authorized officer. 
 Dated: [—], 2010 

 

			
	COMPANY: Sterling Financial Corporation
		
	By:	 	  

		 	Name:
		 	Title:
	
	Attest:
		
	By:	 	  

		 	Name:
		 	Title:

 [Signature Page to Warrant]

 ANNEX A 

Form of Notice of Exercise 

Date: [            ] 

 

	TO:	Sterling Financial Corporation 

  

	RE:	Election to Purchase Common Stock 

The undersigned, pursuant to the provisions set forth in the attached Warrant, hereby agrees to subscribe for and purchase the number of
shares of the Common Stock set forth below covered by such Warrant. The undersigned, in accordance with Section 3 of the Warrant, hereby agrees to pay the aggregate Exercise Price for such shares of Common Stock in the manner set forth below. A
new warrant evidencing the remaining shares of Common Stock covered by such Warrant, but not yet subscribed for and purchased, if any, should be issued in the name set forth below. 

Number of Shares of Common Stock 
 Method of
Payment of Exercise Price (note if cashless exercise pursuant to Section 3(i) of the Warrant or cash exercise pursuant to Section 3(ii) of the Warrant, with consent of the Company and the
Warrantholder):                                      
       
 Aggregate Exercise
Price:                                        
     
  

			
	Holder:	 	  

	By:	 	  

	Name:	 	  

	Title:	 	  

 

 Annex A-1 

 SCHEDULE A 

Item 1 
 Name: Sterling Financial
Corporation 
 Corporate or other organizational form: Corporation 

Jurisdiction of organization: Washington 

Item 2 
 Exercise Price: the lesser of
(x) $0.20 and (y) the lowest price per share of Common Stock on an as converted basis sold in any of the Other Private Placements (as defined in the Investment Agreement) 

Item 3 
 Issue Date:
[—], 2010 
 Item 4 

Amount of last dividend declared prior to the Issue Date: $0.10 per quarter 

Item 5 
 Number of shares of Common
Stock: 6,437,677 
 Item 6 

Company’s address: 111 N. Wall, Spokane, WA 99201 

Item 7 
  

			
	Notice information:	  	Sterling Financial Corporation
		  	111 N. Wall
		  	Spokane, WA 99201
		  	Attn: Chief Financial Officer

  

 Sch. A-1 

 ANNEX B 

FORM OF NEW CERTIFICATE OF DESIGNATIONS 
  

 Annex B-1 

 ARTICLES OF AMENDMENT 

TO THE 

RESTATED ARTICLES OF INCORPORATION 

OF 

STERLING FINANCIAL CORPORATION 

(FIXED RATE CUMULATIVE MANDATORILY CONVERTIBLE PREFERRED 

STOCK, SERIES C) 

Sterling Financial Corporation, a corporation organized and existing under the laws of Washington (the “Corporation”), in
accordance with the provisions of Section 23B.06.020 of the Revised Code of Washington thereof, does hereby certify: 

FIRST: The name of the corporation is Sterling Financial Corporation. 

SECOND: The board of directors of the Corporation (the “Board of Directors”) or an applicable committee of the Board of
Directors, in accordance with the restated articles of incorporation and bylaws of the Corporation and applicable law, adopted the following resolution on April [—], 2010 creating a series of 303,000
shares of Preferred Stock of the Corporation designated as “Fixed Rate Cumulative Mandatorily Convertible Preferred Stock, Series C”. 

RESOLVED, that pursuant to the provisions of the restated articles of incorporation and the bylaws of the Corporation and
applicable law, a series of Preferred Stock, par value one dollar ($1.00) per share, of the Corporation be and hereby is created, and that the designation and number of shares of such series, and the voting and other powers, preferences and
relative, participating, optional or other rights, and the qualifications, limitations and restrictions thereof, of the shares of such series, are as follows: 

Part 1. Designation and Number of Shares. There is hereby created out of the authorized and unissued shares of preferred stock of
the Corporation a series of preferred stock designated as the “Fixed Rate Cumulative Mandatorily Convertible Preferred Stock, Series C” (the “Designated Preferred Stock”). The authorized number of shares of Designated
Preferred Stock shall be 303,000. 
 Part 2. Standard Provisions. The Standard Provisions contained in Annex A attached
hereto are incorporated herein by reference in their entirety and shall be deemed to be a part of these Articles of Amendment to the same extent as if such provisions had been set forth in full herein. 

 Part 3. Definitions. The following terms are used in these Articles of Amendment
(including the Standard Provisions in Annex A hereto) as defined below: 
 (a) “Anchor Investor” has the
meaning set forth in Section 7(b)(iii). 
 (b) “Common Stock” means the common stock, par value $1.00 per
share, of the Corporation. 
 (c) “Dividend Payment Date” means
February 15, May 15, August 15 and November 15 of each year. 
 (d) “Exchange
Value” means, for each share of Designated Preferred Stock, an amount equal to $250. 
 (e) “Initial Conversion
Price” means, for each share of Designated Preferred Stock, an amount equal to the lesser of (x) $0.20 and (y) the lowest price per share of Common Stock on an as converted basis sold in any of the Other Private Placements (as
defined in the Investment Agreement). 
 (f) “Initial Quarterly Dividend” means
$[—]. [Amount of last dividend declared prior to the Original Issue Date]. 

(g) “Investment Agreement” has the meaning set forth in Section 7(b)(iii). 

(h) “Junior Stock” means the Common Stock and any other class or series of stock of the Corporation the terms of which
expressly provide that it ranks junior to Designated Preferred Stock as to dividend rights and/or as to rights on liquidation, dissolution or winding up of the Corporation. For purposes of clarification, the junior subordinated debentures issued by
the Corporation in connection with trust preferred securities issued by certain subsidiaries of the Corporation shall not be deemed to be Junior Stock. 

(i) “Liquidation Amount” means $1,000 per share of Designated Preferred Stock. 

(j) “Mandatory Conversion Date” means the seventh anniversary of the Original Issue Date. 

(k) “Minimum Amount” means $75,750,000. 

(l) “Parity Stock” means any class or series of stock of the Corporation (other than Designated Preferred Stock) the
terms of which do not expressly provide that such class or series shall rank senior or junior to Designated Preferred Stock as to dividend rights and/or as to rights on liquidation, dissolution or winding up of the Corporation (in each case without
regard to whether dividends accrue cumulatively or non-cumulatively). For purposes of clarification, the junior subordinated debentures issued by the Corporation in connection with trust preferred securities issued by certain subsidiaries of the
Corporation shall not be deemed to be Parity Stock. 
 (m) “Signing Date” means
[—], 2010. 
  

 -2- 

 Part 4. Certain Voting Matters. Holders of shares of Designated Preferred Stock shall
be entitled to one vote for each such share on any matter on which holders of Designated Preferred Stock are entitled to vote, including any action by written consent. 

THIRD: These Articles of Amendment to the Restated Articles of Incorporation do not provide for an exchange, reclassification or
cancellation of any issued shares. 
 FOURTH: These Articles of Amendment to the Restated Articles of Incorporation were
duly adopted by the Board of Directors of the Corporation on April [—], 2010. 

FIFTH: No shareholder action was required for the adoption of these Articles of Amendment to the Restated Articles of
Incorporation. 
 SIXTH: These Articles of Amendment are effective upon filing with the Secretary of State of Washington.

 [Remainder of Page Intentionally Left Blank] 

 

 -3- 

 IN WITNESS WHEREOF, Sterling Financial Corporation has caused these Articles of Amendment to
be signed by [            ], its [            ], this [            ]
day of [—], 2010. 
  

			
	STERLING FINANCIAL CORPORATION
		
	By:	 	  

		 	Name:
		 	Title:

 ANNEX A 

STANDARD PROVISIONS 

Section 1. General Matters. Each share of Designated Preferred Stock shall be identical in all respects to every other share
of Designated Preferred Stock. The Designated Preferred Stock shall rank equally with Parity Stock and shall rank senior to Junior Stock with respect to the payment of dividends and the distribution of assets in the event of any dissolution,
liquidation or winding up of the Corporation. 
 Section 2. Standard Definitions. As used herein with respect to
Designated Preferred Stock: 
 (a) “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 definition, “control” (including, with correlative meanings, the terms “controlled by” and “under common control
with”) when used with respect to any Person, means the possession, directly or indirectly, of the power to cause the direction of management and/or policies of such Person, whether through the ownership of voting securities by contract or
otherwise. 
 (b) “Applicable Dividend Rate” means (i) during the period from the Original Issue Date to,
but excluding, the first day of the first Dividend Period commencing on or after December 5, 2013, 5% per annum and (ii) from and after the first day of the first Dividend Period commencing on or after December 5, 2013,
9% per annum. 
 (c) “Appraisal Procedure” means a procedure whereby two independent appraisers, one
chosen by the Corporation and one by the Original Designated Preferred Stockholder, shall mutually agree upon the determinations then the subject of appraisal. Each party shall deliver a notice to the other appointing its appraiser within 15 days
after the Appraisal Procedure is invoked. If within 30 days after appointment of the two appraisers they are unable to agree upon the amount in question, a third independent appraiser shall be chosen within 10 days thereafter by the mutual consent
of such first two appraisers. The decision of the third appraiser so appointed and chosen shall be given within 30 days after the selection of such third appraiser. If three appraisers shall be appointed and the determination of one appraiser is
disparate from the middle determination by more than twice the amount by which the other determination is disparate from the middle determination, then the determination of such appraiser shall be excluded, the remaining two determinations shall be
averaged and such average shall be binding and conclusive upon the Corporation and the Original Designated Preferred Stockholder; otherwise, the average of all three determinations shall be binding upon the Corporation and the Original Designated
Preferred Stockholder. The costs of conducting any Appraisal Procedure shall be borne by the Corporation. 
 (d)
“Appropriate Federal Banking Agency” means the “appropriate Federal banking agency” with respect to the Corporation as defined in Section 3(q) of the Federal Deposit Insurance Act (12 U.S.C. Section 1813(q)), or
any successor provision. 
  

 A-1 

 (e) “Business Combination” means a merger, consolidation, statutory share
exchange or similar transaction that requires the approval of the Corporation’s stockholders. 
 (f) “Business
Day” means any day except Saturday, Sunday and any day on which banking institutions in the State of New York generally are authorized or required by law or other governmental actions to close. 

(g) “Bylaws” means the bylaws of the Corporation, as they may be amended from time to time. 

(h) “Capital Stock” means (A) with respect to any Person that is a corporation or company, any and all shares,
interests, participations or other equivalents (however designated) of capital or capital stock of such Person and (B) with respect to any Person that is not a corporation or company, any and all partnership or other equity interests of such
Person. 
 (i) “Certificate of Designations” means the Articles of Amendment or comparable instrument relating
to the Designated Preferred Stock, of which these Standard Provisions form a part, as it may be amended from time to time. 

(j) “Change of Control” means the occurrence of one of the following: 

(i) the consummation of any transaction (including, without limitation, any merger or consolidation) the result of which
is that any “person” becomes the “beneficial owner” (as these terms are defined in Rule 13d-3 and Rule 13d-5 under the Exchange Act), directly or indirectly, of more than 50% of the Capital Stock of the Corporation that is at the
time entitled to vote by the holder thereof in the election of the Board of Directors (or comparable body); or 

(ii) the first day on which a majority of the members of the Board of Directors are not Continuing Directors.

 (k) “Change of Control Effective Date” has the meaning set forth in Section 10(a). 

(l) “Charter” means the Corporation’s certificate or articles of incorporation, articles of association, or
similar organizational document. 
 (m) “Common Stock Issuance” has the meaning set forth in
Section 11(d). 
 (n) “Common Stock Offering” means the sale and issuance for cash by the Corporation to
persons other than the Corporation or any of its subsidiaries after the Original Issue Date of shares of Common Stock (other than any such sales and issuances made pursuant to agreements or arrangements entered into, or pursuant to financing plans
which were publicly announced, on or prior to the Signing Date). 
 (o) “Continuing Directors” means, as of any
date of determination, any member of the Board of Directors who (i) was a member of the Board of Directors on the Original Issue Date or (ii) was nominated for election or elected to the Board of Directors with the approval of a

  

 A-2 

 
majority of the Continuing Directors who were members of the Board of Directors at the time of such new director’s nomination or election. 

(p) “Conversion Date” means any date on which shares of Designated Preferred Stock are converted as set forth in this
Certificate of Designations. 
 (q) “Conversion Price” means the Initial Conversion Price, subject to
adjustment as set forth in Section 11 of this Certificate of Designations. 
 (r) “Conversion Rate” means
for each share of Designated Preferred Stock, the Exchange Value divided by the Conversion Price, subject to adjustment as set forth in Section 11 of this Certificate of Designations. 

(s) “Convertible Securities” has the meaning set forth in Section 11(c). 

(t) “Depositary” means The Depository Trust Company or its nominee or any successor depositary appointed by the
Corporation. 
 (u) “Dividend Period” has the meaning set forth in Section 3(a). 

(v) “Dividend Record Date” has the meaning set forth in Section 3(a). 

(w) “Early Conversion” has the meaning set forth in Section 7(a). 

(x) “Early Conversion Date” has the meaning set forth in Section 7(c). 

(y) “Equity Investor” has the meaning set forth in Section 7(b)(iii). 

(z) [Reserved.] 

(aa) “Equity Raise Issuance” has the meaning set forth in Section 11(c). 

(bb) “Exchange Act” means the Securities Exchange Act of 1934, as amended, or any successor statute, and the rules and
regulations promulgated thereunder. 
 (cc) “Ex-Dividend Date” means, in respect of a dividend or distribution
to holders of Common Stock, the first date on which a sale of the Common Stock does not automatically transfer the right to receive the relevant dividend or distribution from the seller of the Common Stock to its buyer. 

(dd) “Fair Market Value” means, with respect to any security or other property, the fair market value of such security
or other property as determined by the Board of Directors, acting in good faith. For so long as the Original Designated Preferred Stockholder holds the Designated Preferred Stock or any portion thereof, it may object in writing to the Board of
Directors’ calculation of fair market value within 10 days of receipt of written notice thereof. If the Original Designated Preferred Stockholder and the Corporation are unable to agree on fair market value during the 10-day period following
the delivery of the Original Designated Preferred Stockholder’s objection, the Appraisal Procedure may be invoked by either party to 

 

 A-3 

 
determine Fair Market Value by delivering written notification thereof not later than the 30th day after delivery of the Original Designated Preferred Stockholder’s objection. 

(ee) “Liquidation Preference” has the meaning set forth in Section 4(a). 

(ff) “Market Price” means, with respect to the Common Stock, on any given date, the average VWAP for the 5 consecutive
Trading Day-period ending on the Trading Day immediately preceding such given date. “Market Price” shall be determined without reference to after hours or extended hours trading. If the Common Stock is not listed and traded in a manner
that the quotations referred to above are available for the period required hereunder, the Market Price per share of Common Stock shall be deemed to be (i) in the event that any portion of the Designated Preferred Stock is held by the Original
Designated Preferred Stockholder, the fair market value per share of the Common Stock as determined in good faith by the Original Designated Preferred Stockholder or (ii) in all other circumstances, the fair market value per share of the Common
Stock as determined in good faith by the Board of Directors in reliance on an opinion of a nationally recognized independent investment banking corporation retained by the Corporation for this purpose and certified in a resolution to the holder(s)
of Designated Preferred Stock. For the purposes of determining the Market Price of the Common Stock on the “Trading Day” preceding, on or following the occurrence of an event, (i) that Trading Day shall be deemed to commence
immediately after the regular scheduled closing time of trading on the NYSE or, if trading is closed at an earlier time, such earlier time and (ii) that Trading Day shall end at the next regular scheduled closing time, or if trading is closed
at an earlier time, such earlier time (for the avoidance of doubt, and as an example, if the Market Price is to be determined as of the last Trading Day preceding a specified event and the closing time of trading on a particular day is 4:00 p.m. and
the specified event occurs at 5:00 p.m. on that day, the Market Price would be determined by reference to such 4:00 p.m. closing time). 

(gg) “NASDAQ” means NASDAQ Stock Market LLC. 

(hh) “NYSE” means the New York Stock Exchange. 

(ii) “Ordinary Cash Dividends” means a regular quarterly cash dividend on shares of Common Stock out of surplus or net
profits legally available therefor (determined in accordance with generally accepted accounting principles in effect from time to time), provided that Ordinary Cash Dividends shall not include any cash dividends paid subsequent to the
Original Issue Date to the extent the aggregate per share dividends paid on the outstanding Common Stock in any quarter exceed the Initial Quarterly Dividend, as adjusted for any stock split, stock dividend, reverse stock split, reclassification or
similar transaction. 
 (jj) “Original Designated Preferred Stockholder” means the United States Department of
the Treasury and any successor or assign that is an Affiliate of the United States Department of the Treasury. Any actions specified to be taken by the Original Designated Preferred Stockholder hereunder may only be taken by such Person and not by
any other holder of Designated Preferred Stock. 
 (kk) “Original Issue Date” means the date on which shares of
Designated Preferred Stock are first issued. 
  

 A-4 

 (ll) “Permitted Transactions” has the meaning set forth in
Section 11(d). 
 (mm) “Per Share Fair Market Value” has the meaning set forth in Section 11(e).

 (nn) “Person” has the meaning given to it in Section 3(a)(9) of the Exchange Act and as used in
Sections 13(d)(3) and 14(d)(2) of the Exchange Act. 
 (oo) “Preferred Director” has the meaning set forth in
Section 13(b). 
 (pp) “Preferred Stock” means any and all series of preferred stock of the Corporation,
including the Designated Preferred Stock. 
 (qq) “Pro Rata Repurchase” means any purchase of shares of Common
Stock by the Corporation or any Affiliate thereof pursuant to (A) any tender offer or exchange offer subject to Section 13(e) or 14(e) of the Exchange Act or Regulation 14E promulgated thereunder or (B) any other offer available to
substantially all holders of Common Stock, in the case of both (A) or (B), whether for cash, shares of Capital Stock of the Corporation, other securities of the Corporation, evidences of indebtedness of the Corporation or any other Person or
any other property (including, without limitation, shares of Capital Stock, other securities or evidences of indebtedness of a subsidiary), or any combination thereof, effected while the Designated Preferred Stock is outstanding. The
“Effective Date” of a Pro Rata Repurchase shall mean the date of acceptance of shares of Common Stock for purchase or exchange by the Corporation under any tender or exchange offer which is a Pro Rata Repurchase or the date of
purchase with respect to any Pro Rata Repurchase that is not a tender or exchange offer. 
 (rr) “Regulatory
Approvals” with respect to the holder of the Designated Preferred Stock, means, to the extent applicable and required to permit the conversion of the Designated Preferred Stock for Shares and to own such Shares without such holder being in
violation of any applicable law, rule or regulation, including, without limitation, the Bank Holding Company Act of 1956, as amended, and the Change in Bank Control Act of 1978, as amended, and the receipt of any necessary approvals and
authorizations of, filings and registrations with, notifications to, or expiration or termination of any applicable waiting period under, the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, and any other applicable laws and the
rules and regulations thereunder. 
 (ss) “Share Dilution Amount” has the meaning set forth in
Section 3(b). 
 (tt) “Shares” means the shares of the Corporation’s Common Stock issuable upon
conversion of the Designated Preferred Stock. 
 (uu) “Special Distribution” means a distribution on the Common
Stock of: 
 (i) rights, options or warrants (other than pursuant to a shareholder rights plan) entitling holders
of Common Stock to purchase, for a period of 45 calendar days or less, shares of Common Stock at a price less than the average Market Price of the Common Stock for the 10 consecutive Trading Days immediately preceding the declaration date for such
distribution; or 
  

 A-5 

 (ii) cash or other assets, debt securities or rights to purchase the
Corporation’s securities (other than pursuant to a shareholder rights plan or a dividend or distribution on the Common Stock in shares of Common Stock), which distribution has a per share value as determined by the Board of Directors exceeding
10% of the Market Price of the Common Stock on the Trading Day preceding the declaration date for such distribution. 

(vv) “Specified Corporate Transaction” has the meaning set forth in Section 9(a). 

(ww) “Standard Provisions” mean these Standard Provisions that form a part of the Certificate of Designations relating
to the Designated Preferred Stock. 
 (xx) [Reserved.] 

(yy) “Trading Day” means (A) if the shares of Common Stock are not traded on any national or regional securities
exchange or association or over-the-counter market, a Business Day or (B) if the shares of Common Stock are traded on any national or regional securities exchange or association or over-the-counter market, a Business Day on which such relevant
exchange or quotation system is scheduled to be open for business and on which the shares of Common Stock (i) are not suspended from trading on any national or regional securities exchange or association or over-the-counter market for any
period or periods aggregating one half hour or longer; and (ii) have traded at least once on the national or regional securities exchange or association or over-the-counter market that is the primary market for the trading of the shares of
Common Stock. 
 (zz) [Reserved.] 

(aaa) “Valuation Date” has the meaning set forth in Section 11(d). 

(bbb) “Voting Parity Stock” means, with regard to any matter as to which the holders of Designated Preferred Stock are
entitled to vote as specified in Sections 13(a) and 13(b) of these Standard Provisions that form a part of the Certificate of Designations, any and all series of Parity Stock upon which like voting rights have been conferred and are exercisable with
respect to such matter. 
 (ccc) “VWAP” means the volume-weighted average trading price of a share of Common
Stock as reported by Bloomberg LP. 
 Section 3. Dividends. 

(a) Rate. Holders of Designated Preferred Stock shall be entitled to receive, on each share of Designated Preferred Stock if, as
and when declared by the Board of Directors or any duly authorized committee of the Board of Directors, but only out of funds legally available therefor, cumulative cash dividends (subject to Section 6(e) below) with respect to each Dividend
Period (as defined below) at a rate per annum equal to the Applicable Dividend Rate on (i) the Liquidation Amount per share of Designated Preferred Stock and (ii) the amount of accrued and unpaid dividends for any prior Dividend Period on
such share of Designated Preferred Stock, if any. Such dividends shall begin to accrue and be cumulative from the Original Issue Date, shall compound on each subsequent Dividend Payment Date (i.e., no

  

 A-6 

 
dividends shall accrue on other dividends unless and until the first Dividend Payment Date for such other dividends has passed without such other dividends having been paid on such date) and
shall be payable quarterly in arrears on each Dividend Payment Date, commencing with the first such Dividend Payment Date to occur at least 20 calendar days after the Original Issue Date. In the event that any Dividend Payment Date would otherwise
fall on a day that is not a Business Day, the dividend payment due on that date shall be postponed to the next day that is a Business Day and no additional dividends shall accrue as a result of that postponement. The period from and including any
Dividend Payment Date to, but excluding, the next Dividend Payment Date is a “Dividend Period”, provided that the initial Dividend Period shall be the period from and including the Original Issue Date to, but excluding, the
next Dividend Payment Date. 
 Dividends that are payable on Designated Preferred Stock in respect of any Dividend Period shall
be computed on the basis of a 360-day year consisting of twelve 30-day months. The amount of dividends payable on Designated Preferred Stock on any date prior to the end of a Dividend Period, and for the initial Dividend Period, shall be computed on
the basis of a 360-day year consisting of twelve 30-day months, and actual days elapsed over a 30-day month. 
 Dividends that
are payable on Designated Preferred Stock on any Dividend Payment Date shall be payable to holders of record of Designated Preferred Stock as they appear on the stock register of the Corporation on the applicable record date, which shall be the 15th
calendar day immediately preceding such Dividend Payment Date or such other record date fixed by the Board of Directors or any duly authorized committee of the Board of Directors that is not more than 60 nor less than 10 days prior to such Dividend
Payment Date (each, a “Dividend Record Date”). Any such day that is a Dividend Record Date shall be a Dividend Record Date whether or not such day is a Business Day. 

Holders of Designated Preferred Stock shall not be entitled to any dividends, whether payable in cash, securities or other property,
other than dividends (if any) declared and payable on Designated Preferred Stock as specified in this Section 3 (subject to the other provisions of the Certificate of Designations). 

(b) Priority of Dividends. So long as any share of Designated Preferred Stock remains outstanding, no dividend or distribution
shall be declared or paid on the Common Stock or any other shares of Junior Stock (other than dividends payable solely in shares of Common Stock) or Parity Stock, subject to the immediately following paragraph in the case of Parity Stock, and no
Common Stock, Junior Stock or Parity Stock shall be, directly or indirectly, purchased, redeemed or otherwise acquired for consideration by the Corporation or any of its subsidiaries unless all accrued and unpaid dividends for all past Dividend
Periods, including the latest completed Dividend Period (including, if applicable as provided in Section 3(a) above, dividends on such amount), on all outstanding shares of Designated Preferred Stock have been or are contemporaneously declared
and paid in full (or have been declared and a sum sufficient for the payment thereof has been set aside for the benefit of the holders of shares of Designated Preferred Stock on the applicable record date). The foregoing limitation shall not apply
to (i) redemptions, purchases or other acquisitions of shares of Common Stock or other Junior Stock in connection with the administration of any employee benefit plan in the ordinary course of business (including purchases to offset the Share
Dilution Amount (as defined below) pursuant to a publicly announced repurchase plan) and consistent with past practice, provided 

 

 A-7 

 
that any purchases to offset the Share Dilution Amount shall in no event exceed the Share Dilution Amount; (ii) purchases or other acquisitions by a broker-dealer subsidiary of the
Corporation solely for the purpose of market-making, stabilization or customer facilitation transactions in Junior Stock or Parity Stock in the ordinary course of its business; (iii) purchases by a broker-dealer subsidiary of the Corporation of
Capital Stock of the Corporation for resale pursuant to an offering by the Corporation of such Capital Stock underwritten by such broker-dealer subsidiary; (iv) any dividends or distributions of rights or Junior Stock in connection with a
stockholders’ rights plan or any redemption or repurchase of rights pursuant to any stockholders’ rights plan; (v) the acquisition by the Corporation or any of its subsidiaries of record ownership in Junior Stock or Parity Stock for
the beneficial ownership of any other Persons (other than the Corporation or any of its subsidiaries), including as trustees or custodians; and (vi) the exchange or conversion of Junior Stock for or into other Junior Stock or of Parity Stock
for or into other Parity Stock (with the same or lesser aggregate liquidation amount) or Junior Stock, in each case, solely to the extent required pursuant to binding obligations entered into prior to the Signing Date or any subsequent agreement for
the accelerated exercise, settlement or exchange thereof for Common Stock. “Share Dilution Amount” means the increase in the number of diluted shares outstanding (determined in accordance with generally accepted accounting
principles in the United States, and as measured from the date of the Corporation’s consolidated financial statements most recently filed with the Securities and Exchange Commission prior to the Original Issue Date) resulting from the grant,
vesting or exercise of equity-based compensation to employees and equitably adjusted for any stock split, stock dividend, reverse stock split, reclassification or similar transaction. 

When dividends are not paid (or declared and a sum sufficient for payment thereof set aside for the benefit of the holders thereof on the
applicable record date) on any Dividend Payment Date (or, in the case of Parity Stock having dividend payment dates different from the Dividend Payment Dates, on a dividend payment date falling within a Dividend Period related to such Dividend
Payment Date) in full upon Designated Preferred Stock and any shares of Parity Stock, all dividends declared on Designated Preferred Stock and all such Parity Stock and payable on such Dividend Payment Date (or, in the case of Parity Stock having
dividend payment dates different from the Dividend Payment Dates, on a dividend payment date falling within the Dividend Period related to such Dividend Payment Date) shall be declared pro rata so that the respective amounts of such dividends
declared shall bear the same ratio to each other as all accrued and unpaid dividends per share on the shares of Designated Preferred Stock (including, if applicable as provided in Section 3(a) above, dividends on such amount) and all Parity
Stock payable on such Dividend Payment Date (or, in the case of Parity Stock having dividend payment dates different from the Dividend Payment Dates, on a dividend payment date falling within the Dividend Period related to such Dividend Payment
Date) (subject to their having been declared by the Board of Directors or a duly authorized committee of the Board of Directors out of legally available funds and including, in the case of Parity Stock that bears cumulative dividends, all accrued
but unpaid dividends) bear to each other. If the Board of Directors or a duly authorized committee of the Board of Directors determines not to pay any dividend or a full dividend on a Dividend Payment Date, the Corporation shall provide written
notice to the holders of Designated Preferred Stock prior to such Dividend Payment Date. 
 Subject to the foregoing, and not
otherwise, such dividends (payable in cash, securities or other property) as may be determined by the Board of Directors or any duly authorized 

 

 A-8 

 
committee of the Board of Directors may be declared and paid on any securities, including Common Stock and other Junior Stock, from time to time out of any funds legally available for such
payment, and holders of Designated Preferred Stock shall not be entitled to participate in any such dividends. 

Section 4. Liquidation Rights. 

(a) Voluntary or Involuntary Liquidation. In the event of any liquidation, dissolution or winding up of the affairs of the
Corporation, whether voluntary or involuntary, holders of Designated Preferred Stock shall be entitled to receive for each share of Designated Preferred Stock, out of the assets of the Corporation or proceeds thereof (whether capital or surplus)
available for distribution to stockholders of the Corporation, subject to the rights of any creditors of the Corporation, before any distribution of such assets or proceeds is made to or set aside for the holders of Common Stock and any other stock
of the Corporation ranking junior to Designated Preferred Stock as to such distribution, payment in full in an amount equal to the sum of (i) the Liquidation Amount per share and (ii) the amount of any accrued and unpaid dividends
(including, if applicable as provided in Section 3(a) above, dividends on such amount), whether or not declared, to the date of payment (such amounts collectively, the “Liquidation Preference”). 

(b) Partial Payment. If in any distribution described in Section 4(a) above the assets of the Corporation or proceeds thereof
are not sufficient to pay in full the amounts payable with respect to all outstanding shares of Designated Preferred Stock and the corresponding amounts payable with respect of any other stock of the Corporation ranking equally with Designated
Preferred Stock as to such distribution, holders of Designated Preferred Stock and the holders of such other stock shall share ratably in any such distribution in proportion to the full respective distributions to which they are entitled.

 (c) Residual Distributions. If the Liquidation Preference has been paid in full to all holders of Designated Preferred
Stock and the corresponding amounts payable with respect of any other stock of the Corporation ranking equally with Designated Preferred Stock as to such distribution has been paid in full, the holders of other stock of the Corporation shall be
entitled to receive all remaining assets of the Corporation (or proceeds thereof) according to their respective rights and preferences. 

(d) Merger, Consolidation and Sale of Assets Not Liquidation. For purposes of this Section 4, the merger or consolidation of
the Corporation with any other corporation or other entity, including a merger or consolidation in which the holders of Designated Preferred Stock receive cash, securities or other property for their shares, or the sale, lease or exchange (for cash,
securities or other property) of all or substantially all of the assets of the Corporation, shall not constitute a liquidation, dissolution or winding up of the Corporation. 

Section 5. Redemption. 

(a) Optional Redemption. The Corporation, at its option, subject to the approval of the Appropriate Federal Banking Agency, may
redeem, in whole or in part, at any time and from time to time, out of funds legally available therefor, the shares of Designated Preferred Stock at the time outstanding, upon notice given as provided in Section 5(c) below, at a redemption
price 
  

 A-9 

 
equal to the sum of (i) (A) the Liquidation Amount per share or (B) if redeemed on or after the first Dividend Payment Date falling on or after the second anniversary of the
Original Issue Date, the greater of (1) the Liquidation Amount per share and (2) the product of the Conversion Rate and the average of the Market Prices per share of Common Stock over the 20 consecutive Trading Day period beginning on the
Trading Day after the notice of redemption is given as provided in Section 5(c) below and (ii) except as otherwise provided below, any accrued and unpaid dividends to, but excluding, the date fixed for redemption (including, if applicable,
as provided in Section 3(a) above, dividends on such amount), regardless of whether any dividends are actually declared; provided that the aggregate redemption price of the Designated Preferred Stock redeemed pursuant to this paragraph may not
exceed an amount equal to the sum of (x) any aggregate gross proceeds of not less than the Minimum Amount received by the Corporation from one or more Common Stock Offerings and (y) any net increase to the Corporation’s retained
earnings after the Original Issue Date above the Corporation’s retained earnings reflected in its most recent publicly available balance sheet on or prior to the Original Issue Date; and provided further that the minimum number of shares of
Designated Preferred Stock redeemed by the Corporation upon any such redemption shall be at least equal to the lesser of (x) all shares of Designated Preferred Stock then outstanding and (y) 25% of the number of shares of Designated
Preferred Stock issued on the Original Issue Date. 
 The redemption price for any shares of Designated Preferred Stock shall be
payable in cash on the redemption date to the holder of such shares against surrender of the certificate(s) evidencing such shares to the Corporation or its agent. Any declared but unpaid dividends payable on a redemption date that occurs subsequent
to the Dividend Record Date for a Dividend Period shall not be paid to the holder entitled to receive the redemption price on the redemption date, but rather shall be paid to the holder of record of the redeemed shares on such Dividend Record Date
relating to the Dividend Payment Date as provided in Section 3 above. 
 (b) No Sinking Fund. The Designated
Preferred Stock shall not be subject to any mandatory redemption, sinking fund or other similar provisions. Holders of Designated Preferred Stock shall have no right to require redemption or repurchase of any shares of Designated Preferred Stock.

 (c) Notice of Redemption. Notice of every redemption of shares of Designated Preferred Stock shall be given by first
class mail, postage prepaid, addressed to the holders of record of the shares of Designated Preferred Stock to be redeemed at their respective last addresses appearing on the books of the Corporation. Such mailing shall be at least 30 days (or in
the event of a redemption on or after the first Dividend Payment Date falling on or after the second anniversary of the Original Issue Date, at least 25 Trading Days) and not more than 60 days before the date fixed for redemption. Any notice mailed
as provided in this Subsection shall be conclusively presumed to have been duly given, whether or not the holder receives such notice, but failure duly to give such notice by mail, or any defect in such notice or in the mailing thereof, to any
holder of shares of Designated Preferred Stock designated for redemption shall not affect the validity of the proceedings for the redemption of any other shares of Designated Preferred Stock. Notwithstanding the foregoing, if shares of Designated
Preferred Stock are issued in book-entry form through the Depositary or any other similar facility, notice of redemption may be given to the holders of Designated Preferred Stock at such time and in any manner permitted by such facility. Each notice
of redemption given to a holder shall state: (1) the 
  

 A-10 

 
redemption date; (2) the number of shares of Designated Preferred Stock to be redeemed and, if less than all the shares held by such holder are to be redeemed, the number of such shares to
be redeemed from such holder; (3) the redemption price (or the manner of calculation thereof); and (4) the place or places where certificates for such shares are to be surrendered for payment of the redemption price. 

(d) Partial Redemption. In case of any redemption of part of the shares of Designated Preferred Stock at the time outstanding, the
shares to be redeemed shall be selected either pro rata or in such other manner as the Board of Directors or a duly authorized committee thereof may determine to be fair and equitable. Subject to the provisions hereof, the Board of Directors
or a duly authorized committee thereof shall have full power and authority to prescribe the terms and conditions upon which shares of Designated Preferred Stock shall be redeemed from time to time. If fewer than all the shares represented by any
certificate are redeemed or converted, a new certificate shall be issued representing the unredeemed shares without charge to the holder thereof. 

(e) Effectiveness of Redemption. If notice of redemption has been duly given and if on or before the redemption date specified in
such notice all funds necessary for the redemption have been deposited by the Corporation, in trust for the pro rata benefit of the holders of the shares of Designated Preferred Stock called for redemption, with a bank or trust company doing
business in the Borough of Manhattan, The City of New York, and having a capital and surplus of at least $500 million and selected by the Board of Directors, so as to be and continue to be available solely therefor, then, notwithstanding that any
certificate for any share of Designated Preferred Stock so called for redemption has not been surrendered for cancellation, on and after the redemption date dividends shall cease to accrue on all Designated Preferred Stock so called for redemption,
all shares of Designated Preferred Stock so called for redemption shall no longer be deemed outstanding and all rights with respect to such shares of Designated Preferred Stock shall forthwith on such redemption date cease and terminate, except only
the right of the holders thereof to receive the amount payable on such redemption from such bank or trust company, without interest. Any funds unclaimed at the end of three years from the redemption date shall, to the extent permitted by law, be
released to the Corporation, after which time the holders of the shares of Designated Preferred Stock so called for redemption shall look only to the Corporation for payment of the redemption price of such shares of Designated Preferred Stock.

 (f) Status of Redeemed Shares. Shares of Designated Preferred Stock that are redeemed, repurchased or otherwise
acquired by the Corporation shall revert to authorized but unissued shares of Preferred Stock (provided that any such cancelled shares of Designated Preferred Stock may be reissued only as shares of any series of Preferred Stock other than
Designated Preferred Stock). 
 Section 6. General Conversion Provisions. 

(a) Conversion by Holders; Approvals. Holders of Designated Preferred Stock shall have the right, at their option, to convert, at
any time and from time to time, all or any portion of the Designated Preferred Stock (but in no event less than one share of the Designated Preferred Stock), into a number of Shares equal to the product of the then-applicable Conversion Rate and the
number of shares of Designated Preferred Stock surrendered for conversion in accordance 
  

 A-11 

 
with the terms and conditions of this Certificate of Designations (which, in the event of a Specified Corporate Transaction or a Change of Control, shall include the provisions of Sections 9 and
10, respectively); provided, however, notwithstanding anything in this Certificate of Designations to the contrary, holders of Designated Preferred Stock shall not be entitled to convert shares of Designated Preferred Stock until the
converting holder has first received any applicable Regulatory Approvals. 
 (b) Effectiveness of Conversion. If any
notice of conversion has been duly given in accordance with the procedures set forth in Sections 7, 8, 9 and 10 below, then, effective immediately (notwithstanding that any certificate for any Designated Preferred Stock to be converted has not been
surrendered for conversion) prior to 5:00 p.m., New York City time, on the applicable Conversion Date, holders of Designated Preferred Stock whose shares of Designated Preferred Stock are to be converted shall cease to have any rights to such shares
of Designated Preferred Stock (including with respect to dividends) subject to the right of any such holders to receive any accrued and unpaid dividends to the Conversion Date on such shares of Designated Preferred Stock and any other payments to
which they are otherwise entitled pursuant to the terms hereof. 
 (c) No Rights as Holders of Common Stock Prior to
Conversion. The person or persons entitled to receive the Shares issuable upon conversion shall be treated for all purposes as the record holder(s) of such Shares as of 5:00 p.m., New York City time, on the applicable Conversion Date
notwithstanding that the stock transfer books of the Corporation may then be closed or certificates representing such Shares may not be actually delivered on such date, provided that in the event of a conversion pursuant to Section 9 or
10 below, the holder(s) of Designated Preferred Stock has complied with Section 9(c) or 10(c), respectively. No allowance or adjustment, except as set forth in Section 11, shall be made in respect of dividends payable to holders of Common
Stock of record as of any date prior to such Conversion Date. Prior to the applicable Conversion Date, Shares issuable upon conversion of Designated Preferred Stock shall not be deemed outstanding for any purpose, and holders of Designated Preferred
Stock shall have no rights with respect to the Common Stock (including voting rights, rights to respond to tender offers for the Common Stock and rights to receive any dividends or other distributions on the Common Stock) by virtue of holding shares
of Designated Preferred Stock. 
 (d) Delivery of Shares and Cash. The Corporation shall deliver to the holders of
Designated Preferred Stock that have been converted the Shares and any amount of cash to which such holders are entitled on or prior to the third Trading Day immediately following the applicable Conversion Date. If fewer than all the shares of
Designated Preferred Stock represented by any certificate are converted, a new certificate shall be issued representing the unconverted shares of Designated Preferred Stock without charge to the holder thereof. 

(e) Accrued and Unpaid Dividends. Upon a conversion of any shares of Designated Preferred Stock as set forth in Sections 6, 7, 8,
9 and 10, the holders of such shares shall receive all accrued and unpaid dividends on such shares in cash out of funds legally available therefor or, at the option of the Corporation, in substitute in whole or in part for such cash, in fully paid
and nonassessable shares of Common Stock legally available for such purpose to, but excluding, the applicable Conversion Date. Accrued and unpaid dividends paid in shares of Common Stock shall be paid by delivering to each holder of Designated
Preferred Stock entitled thereto a 
  

 A-12 

 
number of shares of Common Stock determined by dividing the total amount of the cash payment of accrued and unpaid dividends that would otherwise be payable to such holder (rounded to the nearest
whole cent) by the Market Price on the second Trading Day preceding the applicable Conversion Date. The issuance of any such shares of Common Stock in such amount shall constitute full payment of all accrued and unpaid dividends that would otherwise
have been payable. The Board of Directors of the Corporation shall determine the form of payment of accrued and unpaid dividends with respect to any conversion and such election shall be set forth in the applicable notice provided to holders of the
Designated Preferred Stock by the Corporation as set forth in Sections 7, 8, 9 and 10 below. 
 (f) Dividends Accrued after
Record Date. Any accrued and unpaid dividends payable on shares of Designated Preferred Stock to be converted on a Conversion Date that occurs subsequent to the Dividend Record Date for a Dividend Period shall not be paid to the holder of record
of such shares on such Dividend Record Date, but rather shall be paid to the holder of such shares on such Conversion Date. 

(g) Notices by the Corporation. Every notice required to be given by the Corporation pursuant to Section 7, 8, 9 or 10 below
shall be given by first class mail, postage prepaid, addressed to the holders of record of the Designated Preferred Stock at their respective last addresses appearing on the books of the Corporation and shall contain the information required by
Section 7, 8, 9 or 10 hereof, as applicable. Any notice by the Corporation mailed within the time period specified in Section 7, 8, 9 or 10 below shall be conclusively presumed to have been duly given, whether or not the holder receives
such notice, but failure duly to give such notice by mail, or any defect in such notice or in the mailing thereof, to any holder of shares of Designated Preferred Stock designated for conversion shall not affect the validity of the proceedings for
the conversion of any other shares of Designated Preferred Stock. Notwithstanding the foregoing, if shares of Designated Preferred Stock are issued in book-entry form through the Depositary or any other similar facility, any notice by the
Corporation may be given to the holders of Designated Preferred Stock at such time and in any manner permitted by such facility. 

(h) Conversion Procedures by Holder. To effect a conversion, a holder of the Designated Preferred Stock shall: (i) with
respect to a conversion pursuant to Section 6, 9 or 10, complete and manually sign the conversion notice, if any, provided by the Corporation or, if applicable, the conversion agent appointed by the Corporation, or a facsimile of the conversion
notice; (ii) with respect to a conversion pursuant to Section 6, 9 or 10, deliver the completed conversion notice, (iii) with respect to any conversion, deliver the certificated shares of Designated Preferred Stock to be converted to
the Corporation or, if applicable, the conversion agent appointed by the Corporation; and (iv) with respect to any conversion, if required, furnish appropriate endorsements and transfer documents. If a holder’s interest is a beneficial
interest in a global certificate representing the Designated Preferred Stock, a holder must comply with the Depositary’s procedures for converting a beneficial interest in a global security. 

(i) Taxes and Duties. A holder of the Designated Preferred Stock shall not be required to pay any transfer or similar taxes or
duties relating to the issuance or delivery of Shares if such holder of the Designated Preferred Stock exercises its conversion rights, but such holder of the Designated Preferred Stock shall be required to pay any transfer or similar tax or duty
that may be payable relating to any transfer involved in the issuance or delivery of Shares in 
  

 A-13 

 
a name other than the name of such holder. A certificate representing Shares shall be issued and delivered only after all applicable taxes and duties, if any, payable by the holder of the
Designated Preferred Stock have been paid in full. 
 (j) No Fractional Shares. No fractional shares of Common Stock
shall be issued as a result of any conversion of shares of Designated Preferred Stock or the payment of accrued and unpaid dividends on the Designated Preferred Stock in the form of Common Stock. In lieu of any fractional share of Common Stock
otherwise issuable in respect of any conversion or payment of accrued and unpaid dividends, the Corporation shall pay an amount in cash (computed to the nearest cent) equal to such fraction of a share of Common Stock multiplied by the Market Price
on the second Trading Day immediately preceding the applicable Conversion Date or, in the event of any dividends arising under the Designated Preferred Stock paid in the form of Common Stock, the Dividend Payment Date (unless there are no legally
available assets with which to make such cash payment, in which event such cash payment shall be made as soon as possible thereafter). If more than one share of the Designated Preferred Stock is surrendered for conversion at one time by or for the
same holder, the number of full shares of Common Stock issuable upon conversion thereof, including in respect of accrued and unpaid dividends, shall be computed on the basis of the aggregate number of shares of the Designated Preferred Stock so
surrendered. 
 (k) Status of Shares Subject to Conversion. Shares of Designated Preferred Stock that are converted in
accordance with Sections 6, 7, 8, 9 or 10 shall revert to authorized but unissued shares of Preferred Stock (provided that any such cancelled shares of Designated Preferred Stock may be reissued only as shares of any series of Preferred Stock
other than Designated Preferred Stock). 
 Section 7. Early Conversion. 

(a) Conversion at the Option of the Corporation. Subject to Section 7(b), the Corporation shall have the right, at its option
to convert, at any time and from time to time, all or any portion of the Designated Preferred Stock (but in no event less than one share of the Designated Preferred Stock), at any time prior to the Mandatory Conversion Date (“Early
Conversion”), into a number of Shares equal to the product of the then-applicable Conversion Rate and the number of shares of Designated Preferred Stock selected for conversion; provided, however, notwithstanding anything in this
Certificate of Designations to the contrary, holders of Designated Preferred Stock shall not be entitled to convert shares of Designated Preferred Stock until the converting holder has first received any applicable Regulatory Approvals. In addition
to the number of Shares issuable upon Early Conversion, the holders of shares of Designated Preferred Stock subject to Early Conversion shall have the right to receive (in cash or shares of Common Stock at the option of the Corporation in accordance
with Section 6(e)) any accrued and unpaid dividends on such shares to, but excluding, the Early Conversion Date (including, if applicable, as provided in Section 3(a) above, dividends on such amount), regardless of whether any dividends
are actually declared. 
 (b) Conditions to Early Conversion. The Corporation’s right of conversion set forth in
Section 7(a) is subject to the fulfillment (or waiver by the Original Designated Preferred 
  

 A-14 

 
Stockholder with respect to items (iii), (iv) and (v) below) at or prior to the Early Conversion Date of each of the following conditions: 

(i) the Corporation shall have requested and received from the Appropriate Federal Banking Agency all requisite
approvals of the Early Conversion; 
 (ii) [Reserved.] 

(iii) each of the conditions to closing set forth in Section 1.2(c) of that certain Investment Agreement (the
“Investment Agreement”), dated as of April 29, 2010, between the Corporation, on the one hand, and Thomas H. Lee Equity Fund VI, L.P., Thomas H. Lee Parallel Fund VI, L.P. and Thomas H. Lee Parallel (DT) Fund VI, L.P., on the
other hand (collectively, the “Anchor Investor”), (other than those conditions set forth in Section 1.2(c)(2)(iii) (TARP Exchange) and Section 1.2(c)(2)(xvii) (Par Value Change)) shall have been fulfilled to the Anchor
Investor’s reasonable satisfaction or, other than the condition pursuant to Section 1.2(c)(2)(vi) of the Investment Agreement, waived by the Anchor Investor; 

(iv) the Original Designated Preferred Stockholder shall have received certificates signed on behalf of the
Corporation by a senior executive officer and on behalf of the Anchor Investor by an authorized officer thereof certifying to the effect that each of the conditions to closing set forth in Section 1.2(c) of the Investment Agreement (other than
those conditions set forth in Section 1.2(c)(2)(iii) (TARP Exchange) and Section 1.2(c)(2)(xvii) (Par Value Change)) have been satisfied or, other than the condition pursuant to Section 1.2(c)(2)(vi) of the Investment Agreement,
waived; and 
 (v) the Corporation shall have made all applicable adjustments pursuant to Section 11
that are required to be made on or before the Early Conversion Date. 
 (c) Early Conversion Procedures. In the event of
an Early Conversion, the Corporation shall provide notice of such conversion to each holder of Designated Preferred Stock to be converted (such notice, a “Notice of Early Conversion”). Such Notice of Early Conversion shall be mailed
at least 30 days and not more than 60 days before the date fixed for conversion (the “Early Conversion Date”); provided, however, that if the Corporation elects to convert any or all of the Designated Preferred Stock on the
Original Issue Date, then the Notice of Early Conversion may be given at any time (but not less than 3 days) prior to the Original Issue Date. The requirement to deliver a Notice of Early Conversion and the timing requirements for such delivery may
be waived by each holder of Designated Preferred Stock in its sole discretion. Each Notice of Early Conversion given to a holder shall state: 

(i) the Early Conversion Date; 

(ii) the number of shares of Designated Preferred Stock to be converted and, if less than all the shares held by such
holder are to be converted, the number of such shares to be converted from such holder; 
  

 A-15 

 (iii) the Conversion Rate then in effect and whether the Corporation will
pay cash or issue shares of Common Stock (calculated in accordance with Section 6(e) above) in respect of accrued and unpaid dividends; and 

(iv) the place or places where certificates for shares of Designated Preferred Stock are to be surrendered for
issuance of certificates representing Shares. 
 (d) Partial Conversion. If the Corporation elects to cause less than all
the shares of the Designated Preferred Stock to be converted under this Section 7, the shares of Designated Preferred Stock to be converted shall be selected either pro rata or in such other manner as the Board of Directors or a duly
authorized committee thereof may determine to be fair and equitable. Subject to the provisions hereof, the Board of Directors or a duly authorized committee thereof shall have full power and authority to prescribe the terms and conditions upon which
shares of Designated Preferred Stock shall be converted from time to time pursuant to an Early Conversion. 
 Section 8.
Mandatory Conversion. 
 (a) Mandatory Conversion. Each share of Designated Preferred Stock shall mandatorily
convert (unless otherwise previously converted) on the Mandatory Conversion Date into a number of Shares determined by dividing the Liquidation Amount by the Market Price on the second Trading Day preceding the Mandatory Conversion Date;
provided, however, notwithstanding anything in this Certificate of Designations to the contrary, holders of Designated Preferred Stock shall not be entitled to convert shares of Designated Preferred Stock until the converting holder has first
received any applicable Regulatory Approvals. In addition to the number of Shares issuable upon mandatory conversion, the holders of the shares of Designated Preferred Stock subject to mandatory conversion shall have the right to receive any accrued
and unpaid dividends on such shares to, but excluding, the Mandatory Conversion Date (including, if applicable, as provided in Section 3(a) above, dividends on such amount), regardless of whether any dividends are actually declared. 

(b) Mandatory Conversion Procedures. In the event of a mandatory conversion, the Corporation shall provide notice thereof to each
holder of Designated Preferred Stock to be converted (such notice, a “Notice of Mandatory Conversion”). Such Notice of Mandatory Conversion shall be mailed at least 30 days and not more than 60 days before the Mandatory Conversion
Date. Each Notice of Mandatory Conversion given to a holder shall state: 
 (i) the Mandatory Conversion
Date; 
 (ii) that all outstanding shares of Designated Preferred Stock shall be converted on such date;

 (iii) the Conversion Rate then in effect and whether the Corporation will pay cash or issue shares of
Common Stock (calculated in accordance with Section 6(e) above) in respect of accrued and unpaid dividends; and 

(iv) the place or places where certificates for shares of Designated Preferred Stock are to be surrendered for
issuance of certificates representing Shares. 
  

 A-16 

 Section 9. Conversion upon a Specified Corporate Transaction. 

(a) In addition to the right of a holder of Designated Preferred Stock, at such holder’s option, to convert, at any time and from
time to time, all or any portion of the Designated Preferred Stock as set forth in Section 6, a holder of Designated Preferred Stock shall have the right, at such holder’s option, to convert all or any portion of such holder’s
Designated Preferred Stock into a number of Shares equal to the product of the then-applicable Conversion Rate and the number of shares of Designated Preferred Stock surrendered for conversion upon the following events (each a “Specified
Corporate Transaction”): 
 (i) if the Corporation makes a Special Distribution to all or
substantially all holders of Common Stock, at any time after the Corporation has given the notice of such distribution as provided in Section 9(b) below until the earlier of 5:00 p.m., New York City time, on the Business Day preceding the
Ex-Dividend Date for such distribution or any announcement by the Corporation that such distribution shall not take place; 

(ii) if the Corporation adopts a plan relating to the liquidation or dissolution of the Corporation, at any time
beginning on the Business Day following the date notice of the Specified Corporate Transaction is given as provided in Section 9(b) below and ending on the date that is 30 calendar days after such date; or 

(iii) if the Corporation consolidates or merges with or into any other Person, or sells, leases, transfers, conveys
or otherwise disposes, in one or a series of related transactions, all or substantially all of its assets and those of its subsidiaries taken as a whole to any Person that results in any reclassification, conversion, exchange or cancellation of
outstanding shares of the Capital Stock of the Corporation, other than any merger solely for the purpose of changing the Corporation’s jurisdiction of incorporation and resulting in a reclassification, conversion or exchange of outstanding
Shares solely into shares of common stock of the surviving entity, at any time beginning 15 days prior to the date announced by the Corporation as the anticipated effective date of the transaction and until and including the date which is 15 days
after the date that is the actual effective date of such transaction;  
 provided, however, notwithstanding anything in
this Certificate of Designations to the contrary, holders of Designated Preferred Stock shall not be entitled to convert shares of Designated Preferred Stock until the converting holder has first received any applicable Regulatory Approvals. In
addition to the number of Shares issuable upon conversion in connection with a Specified Corporate Transaction, the holders of shares of Designated Preferred Stock so converted shall have the right to receive any accrued and unpaid dividends on such
shares to, but excluding, the Conversion Date (including, if applicable, as provided in Section 3(a) above, dividends on such amount), regardless of whether any dividends are actually declared. 

(b) Specified Corporate Transaction Conversion Procedures. In the event of a Specified Corporate Transaction, the Corporation
shall provide notice thereof to each holder of Designated Preferred Stock. In the case of a Specified Corporate Transaction contemplated by Section 9(a)(i), such notice shall be mailed at least 30 days prior to the Ex-Dividend Date for such
distribution. In the case of a Specified Corporate Transaction contemplated by 
  

 A-17 

 
Section 9(a)(ii), such notice shall be mailed no later than 5 days after the adoption of the plan of liquidation or dissolution. In the case of a Specified Corporate Transaction contemplated
by Section 9(a)(iii), such notice shall be mailed at least 20 days prior to the beginning of the conversion period related to such Specified Corporate Transaction. Each such notice given to a holder shall state, as applicable: 

(i) a description of the Specified Corporate Transaction, including a description of the type and amount of the
distribution to be made or consideration to be received per share of Common Stock; 
 (ii) the Ex-Dividend
Date in the case of a Specified Corporate Transaction contemplated by Section 9(a)(i), the date of adoption of the plan in the case of a Specified Corporate Transaction contemplated by Section 9(a)(ii) or the date on which the Specified
Corporate Transaction is anticipated to be effective in the case of a Specified Corporate Transaction contemplated by Section 9(a)(iii); 

(iii) the date by which the Specified Corporate Transaction conversion option must be exercised by a holder of
Designated Preferred Stock; 
 (iv) the Conversion Rate then in effect and whether the Corporation will pay
cash or issue shares of Common Stock (calculated in accordance with Section 6(e) above) in respect of accrued and unpaid dividends; and 

(v) the place or places where certificates for shares of Designated Preferred Stock are to be surrendered for
issuance of certificates representing Shares. 
 (c) To exercise a Specified Corporate Transaction conversion option, a holder
of the Designated Preferred Stock must, no later than 5:00 p.m., New York City time, on the date by which the conversion option upon the Specified Corporate Transaction must be exercised as specified in the Notice of Specified Corporate Transaction
delivered under Section 9(b), comply with the procedures set forth in Section 6(h) and indicate that it is exercising its conversion option pursuant to this Section 9. 

(d) If a holder of the Designated Preferred Stock does not elect to exercise its conversion option pursuant to this Section 9, the
shares of Designated Preferred Stock or successor securities held by it shall remain outstanding but the holder of the Designated Preferred Stock shall not thereafter be entitled to convert such holder shares of the Designated Preferred Stock in
accordance with this Section 9. 
 Section 10. Conversion upon Change of Control. 

(a) Change of Control. In addition to the right of a holder of Designated Preferred Stock, at such holder’s option, to
convert, at any time and from time to time, all or any portion of the Designated Preferred Stock as set forth in Section 6, a holder of Designated Preferred Stock shall have the right, at such holder’s option, to convert all or any portion
of such holder’s Designated Preferred Stock into a number of Shares equal to the product of the then-applicable Conversion Rate and the number of shares of Designated Preferred Stock surrendered for conversion during the period beginning on the
Business Day following the effective date of the 
  

 A-18 

 
Change of Control (the “Change of Control Effective Date”) and ending on the date that is 30 calendar days after the Change of Control Effective Date; provided, however,
notwithstanding anything in this Certificate of Designations to the contrary, holders of Designated Preferred Stock shall not be entitled to convert shares of Designated Preferred Stock until the converting holder has first received any applicable
Regulatory Approvals. In addition to the number of Shares issuable upon conversion upon a Change of Control, the holders of shares of Designated Preferred Stock so converted shall have the right to receive any accrued and unpaid dividends on such
shares to, but excluding, the Conversion Date (including, if applicable, as provided in Section 3(a) above, dividends on such amount), regardless of whether any dividends are actually declared. 

(b) Change of Control Conversion Procedures. In the event of a Change of Control, the Corporation shall provide notice thereof to
each holder of Designated Preferred Stock. Such notice shall be mailed at least 20 days prior to the date on which the Corporation anticipates consummating the Change of Control (or, if later, within two Business Days after the Corporation becomes
aware of a Change of Control). Each such notice given to a holder shall state: 
 (i) a description of the
Change of Control; 
 (ii) the date on which the Change of Control is anticipated to be effected or, if
known, the Change of Control Effective Date; 
 (iii) the date by which the Change of Control conversion
option must be exercised, which shall be 30 calendar days after the Change of Control Effective Date; 

(iv) the Conversion Rate then in effect and whether the Corporation will pay cash or issue shares of Common Stock
(calculated in accordance with Section 6(e) above) in respect of accrued and unpaid dividends; and 

(v) the place or places where certificates for shares of Designated Preferred Stock are to be surrendered for
issuance of certificates representing Shares. 
 (c) To exercise a Change of Control conversion option, a holder of the
Designated Preferred Stock must, no later than 5:00 p.m., New York City time, on the date by which the conversion option upon the Change of Control must be exercised as specified in the notice delivered under Section 10(b), comply with the
procedures set forth in Section 6(h) and indicate that it is exercising its conversion option pursuant to this Section 10. 

(d) If a holder of the Designated Preferred Stock does not elect to exercise its conversion option pursuant to this Section 10, the
shares of Designated Preferred Stock or successor securities held by it shall remain outstanding but the holder of the Designated Preferred Stock shall not thereafter be entitled to convert such holder shares of the Designated Convertible Preferred
Stock in accordance with this Section 10. 
 Section 11. Anti-Dilution Adjustments. The Conversion Price and
the Conversion Rate shall be subject to adjustment from time to time as follows; provided, that if more than one Subsection of this Section 11 is applicable to a single event, the Subsection shall be applied that

  

 A-19 

 
produces the largest adjustment and no single event shall cause an adjustment under more than one Subsection of this Section 11 so as to result in duplication: 

(a) Stock Splits, Subdivisions, Reclassifications or Combinations. If the Corporation shall (i) declare and pay a
dividend or make a distribution on its Common Stock in shares of Common Stock, (ii) subdivide or reclassify the outstanding shares of Common Stock into a greater number of shares of Common Stock, or (iii) combine or reclassify the
outstanding shares of Common Stock into a smaller number of shares of Common Stock, the Conversion Price in effect at the time of the record date for such dividend or distribution or the effective date of such subdivision, combination or
reclassification shall be adjusted to the number obtained by multiplying the Conversion Price in effect immediately prior to the record or effective date, as the case may be, for the dividend, distribution, subdivision, combination or
reclassification giving rise to this adjustment by a fraction (x) the numerator of which shall be the number of shares of Common Stock outstanding at the time of the record date for such dividend or distribution or the effective date of such
subdivision, combination or reclassification, in each case, prior to giving effect to such event, and (y) the denominator of which shall be the number of shares of Common Stock outstanding immediately after, and solely as a result of, such
event. 
 (b) [Reserved.] 

(c) Issuances of Common Stock upon an Equity Raise. Until the date on which the Original Designated Preferred Stockholder no
longer holds the Designated Preferred Stock or any portion thereof, if the Corporation shall issue or agree to issue shares of Common Stock (or rights or warrants or other securities exercisable or convertible into or exchangeable for shares of
Common Stock) (collectively, “Convertible Securities”)) to investors other than the Original Designated Preferred Stockholder (each, an “Equity Investor”) pursuant to, in connection with or as contemplated by the
Investment Agreement (an “Equity Raise Issuance”) without consideration or at a consideration per share of Common Stock (or having a conversion price per share of Common Stock) that is less than the Initial Conversion Price, then
the Conversion Price in effect immediately prior to the Equity Raise Issuance shall be decreased to the number obtained by multiplying such Conversion Price by a fraction (A) the numerator of which shall be the sum of (1) the number of
shares of Common Stock of the Corporation outstanding immediately prior to the Equity Raise Issuance and (2) the number of additional shares of Common Stock which the aggregate consideration receivable by the Corporation for the total number of
shares of Common Stock issued (or into which Convertible Securities may be exercised or converted) in connection with the Equity Raise Issuance would purchase at a consideration per share of the Initial Conversion Price and (B) the denominator
of which shall be the sum of (1) the number of shares of Common Stock outstanding immediately prior to the Equity Raise Issuance and (2) the number of shares of Common Stock issued (or into which Convertible Securities may be exercised or
converted) to the Equity Investor in connection with the Equity Raise Issuance. 
 For purposes of the foregoing, the aggregate
consideration receivable by the Corporation in connection with an Equity Raise Issuance shall be deemed to be equal to the sum of the net offering price (including the Fair Market Value of any non-cash consideration and after deduction of any
related expenses payable to third parties) of all Common Stock plus the minimum aggregate amount, if any, payable upon exercise or conversion of any such 

 

 A-20 

 
Convertible Securities into shares of Common Stock. Any adjustment made pursuant to this Section 11(c) shall become effective immediately upon the date of the applicable Equity Raise
Issuance. 
 (d) Other Issuances of Common Stock. Until the date on which the Original Designated Preferred Stockholder
no longer holds the Designated Preferred Stock or any portion thereof, if the Corporation shall issue shares of Common Stock or Convertible Securities other than pursuant to a Permitted Transaction (as defined below) or a transaction for which
Sections 11(a), 11(b) or 11(c) apply (a “Common Stock Issuance”) without consideration or at a consideration per share (or having a conversion price per share) that is less than the Conversion Price in effect immediately prior to
such Common Stock Issuance, then the Conversion Price in effect immediately prior to the Common Stock Issuance shall be decreased to the number obtained by multiplying such Conversion Price by a fraction (A) the numerator of which shall be the
sum of (1) the number of shares of Common Stock of the Corporation outstanding immediately prior to the Common Stock Issuance and (2) the number of additional shares of Common Stock which the aggregate consideration receivable by the
Corporation for the total number of shares of Common Stock issued (or into which Convertible Securities may be exercised or converted) in connection with the Common Stock Issuance would purchase at the Conversion Price in effect immediately prior to
such Common Stock Issuance and (B) the denominator of which shall be the sum of (1) the number of shares of Common Stock outstanding immediately prior to the Common Stock Issuance and (2) the number of shares of Common Stock issued
(or into which Convertible Securities may be exercised or converted) in connection with the Common Stock Issuance. 
 For
purposes of the foregoing, the aggregate consideration receivable by the Corporation in connection with a Common Stock Issuance shall be deemed to be equal to the sum of the net offering price (including the Fair Market Value of any non-cash
consideration and after deduction of any related expenses payable to third parties) of all such securities plus the minimum aggregate amount, if any, payable upon exercise or conversion of any such Convertible Securities into shares of Common Stock;
and “Permitted Transactions” shall mean issuances (i) as consideration for or to fund the acquisition of businesses and/or related assets at Fair Market Value, (ii) in connection with employee benefit plans and
compensation related arrangements in the ordinary course and consistent with past practice approved by the Board of Directors, (iii) in connection with a public or broadly marketed offering and sale of Common Stock or Convertible Securities for
cash conducted by the Corporation or its Affiliates pursuant to registration under the Securities Act or Rule 144A thereunder on a basis consistent with capital raising transactions by comparable financial institutions and (iv) in connection
with the exercise of preemptive rights on terms existing as of the Original Issue Date. Any adjustment made pursuant to this Section 11(d) shall become effective immediately upon the date of such issuance. For the avoidance of doubt,
notwithstanding any other provision hereof, Section 11(d) shall not apply to any transaction to which Section 11(a), 11(b) or 11(c) applies. 

(e) Other Distributions. In case the Corporation shall fix a record date for the making of a distribution to all holders of its
shares of Common Stock, evidences of indebtedness, assets, cash, rights or warrants (excluding Ordinary Cash Dividends, dividends of its Common Stock and other dividends or distributions referred to in Section 11(a)), in each such case, the
Conversion Price in effect prior to such record date shall be reduced immediately thereafter to 
  

 A-21 

 
the price determined by multiplying the Conversion Price in effect immediately prior to the reduction by the quotient of (x) the Market Price of the Common Stock on the last Trading Day
preceding the first date on which the Common Stock trades in a regular way (including on the principal national securities exchange on which the Common Stock is listed or admitted to trading) without the right to receive such distribution, minus the
amount of cash and/or the Fair Market Value of the securities, evidences of indebtedness, assets, cash, rights or warrants to be so distributed in respect of one share of Common Stock (such amount and/or Fair Market Value, the “Per Share
Fair Market Value”) divided by (y) such Market Price on such date specified in clause (x); such adjustment shall be made successively whenever such a record date is fixed. In the case of adjustment for a cash dividend that is, or is
coincident with, a regular quarterly cash dividend, the Per Share Fair Market Value would be reduced by the per share amount of the portion of the cash dividend that would constitute an Ordinary Cash Dividend. In the event that such distribution is
not so made, the Conversion Price then in effect shall be readjusted, effective as of the date when the Board of Directors determines not to distribute such securities, evidences of indebtedness, assets, rights, cash or warrants, as the case may be,
to the Conversion Price that would then be in effect and the Conversion Rate if such record date had not been fixed. 
 (f)
Certain Repurchases of Common Stock. In case the Corporation effects a Pro Rata Repurchase of Common Stock, then the Conversion Price shall be reduced to the price determined by multiplying the Conversion Price in effect immediately prior to
the Effective Date of such Pro Rata Repurchase by a fraction of which the numerator shall be (i) the product of (x) the number of shares of Common Stock outstanding immediately before such Pro Rata Repurchase and (y) the Market Price
of a share of Common Stock on the Trading Day immediately preceding the first public announcement by the Corporation or any of its Affiliates of the intent to effect such Pro Rata Repurchase, minus (ii) the aggregate purchase price of the Pro
Rata Repurchase, and of which the denominator shall be the product of (i) the number of shares of Common Stock outstanding immediately prior to such Pro Rata Repurchase minus the number of shares of Common Stock so repurchased and (ii) the
Market Price per share of Common Stock on the Trading Day immediately preceding the first public announcement by the Corporation or any of its Affiliates of the intent to effect such Pro Rata Repurchase. For the avoidance of doubt, no increase to
the Conversion Price shall be made pursuant to this Section 11(f). 
 (g) Business Combinations. In case of any
Business Combination or reclassification of Common Stock (other than a reclassification of Common Stock referred to in Section 11(a)), the right of a holder of Designated Preferred Stock to receive Shares upon conversion of the Designated
Preferred Stock into Shares shall be converted into the right to convert the Designated Preferred Stock to acquire the number of shares of stock or other securities or property (including cash) which the Shares issuable (at the time of such Business
Combination or reclassification) upon conversion of the Designated Preferred Stock immediately prior to such Business Combination or reclassification would have been entitled to receive upon consummation of such Business Combination or
reclassification; and in any such case, if necessary, the provisions set forth herein with respect to the rights and interests thereafter of a holder of Designated Preferred Stock shall be appropriately adjusted so as to be applicable, as nearly as
may reasonably be, to the right of a holder of Designated Preferred Stock to convert the Designated Preferred Stock in exchange for any shares of stock or other securities or property pursuant to this paragraph. In determining the kind and amount of
stock, securities or the 
  

 A-22 

 
property receivable upon conversion of the Designated Preferred Stock following the consummation of such Business Combination, if the holders of Common Stock have the right to elect the kind or
amount of consideration receivable upon consummation of such Business Combination, then the consideration that a holder of Designated Preferred Stock shall be entitled to receive upon exercise shall be deemed to be the types and amounts of
consideration received by the majority of all holders of the shares of Common Stock that affirmatively make an election (or of all such holders if none make an election). 

(h) Rounding of Calculations; Minimum Adjustments. All calculations under this Section 11 shall be made to the nearest
one-tenth (1/10th) of a cent or to the nearest one-hundredth (1/100th) of a share, as the case may be. Any provision of this Section 11 to the contrary notwithstanding, no adjustment in the Conversion Price or the Conversion Rate
shall be made if the amount of such adjustment would be less than $0.01 or one-tenth (1/10th) of a share of Common Stock, but any such amount shall be carried forward and an adjustment with respect thereto shall be made at the time of and
together with any subsequent adjustment which, together with such amount and any other amount or amounts so carried forward, shall aggregate $0.01 or 1/10th of a share of Common Stock, or more. 

(i) Timing of Issuance of Additional Common Stock upon Certain Adjustments. In any case in which the provisions of this
Section 11 shall require that an adjustment shall become effective immediately after a record date for an event, the Corporation may defer until the occurrence of such event (i) issuing to the holder of Designated Preferred Stock converted
after such record date and before the occurrence of such event the additional shares of Common Stock issuable upon such conversion by reason of the adjustment required by such event over and above the Shares issuable upon such conversion before
giving effect to such adjustment and (ii) paying to such holder of Designated Preferred Stock any amount of cash in lieu of a fractional share of Common Stock; provided, however, that the Corporation upon request shall deliver to such
holder of Designated Preferred Stock a due bill or other appropriate instrument evidencing the right of such holder of Designated Preferred Stock to receive such additional shares, and such cash, upon the occurrence of the event requiring such
adjustment. 
 (j) Other Events. For so long as the Original Designated Preferred Stockholder holds the Designated
Preferred Stock or any portion thereof, if any event occurs as to which the provisions of this Section 11 are not strictly applicable or, if strictly applicable, would not, in the good faith judgment of the Board of Directors of the
Corporation, fairly and adequately protect the conversion rights of the Designated Preferred Stock in accordance with the essential intent and principles of such provisions, then the Board of Directors shall make such adjustments in the application
of such provisions, in accordance with such essential intent and principles, as shall be reasonably necessary, in the good faith opinion of the Board of Directors, to protect such conversion rights as aforesaid. The Conversion Price or the
Conversion Rate shall not be adjusted in the event of a change in the par value of the Common Stock or a change in the jurisdiction of incorporation of the Corporation. 

(k) Statement Regarding Adjustments. Whenever the Conversion Price or the Conversion Rate shall be adjusted as provided in this
Section 11, the Corporation shall forthwith file at the principal office of the Corporation a statement showing in reasonable detail the facts requiring such adjustment and the Conversion Price that shall be in effect and the Conversion

  

 A-23 

 
Rate after such adjustment, and the Corporation shall also cause a copy of such statement to be sent by mail, first class postage prepaid, to each holder of Designated Preferred Stock at the
address appearing in the Corporation’s records. 
 (l) Notice of Adjustment Event. In the event that the Corporation
shall propose to take any action of the type described in this Section 11 (but only if the action of the type described in this Section 11 would result in an adjustment in the Conversion Price or the Conversion Rate or a change in the type
of securities or property to be delivered upon conversion of the Designated Preferred Stock), the Corporation shall give notice to each holder of Designated Preferred Stock, in the manner set forth in Section 11(k), which notice shall specify
the record date, if any, with respect to any such action and the approximate date on which such action is to take place. Such notice shall also set forth the facts with respect thereto as shall be reasonably necessary to indicate the effect on the
Conversion Price, Conversion Rate and the number, kind or class of shares or other securities or property which shall be deliverable upon conversion of the Designated Preferred Stock. In the case of any action which would require the fixing of a
record date, such notice shall be given at least 10 days prior to the date so fixed, and in case of all other action, such notice shall be given at least 15 days prior to the taking of such proposed action. Failure to give such notice, or any defect
therein, shall not affect the legality or validity of any such action. 
 (m) Proceedings Prior to Any Action Requiring
Adjustment. As a condition precedent to the taking of any action which would require an adjustment pursuant to this Section 11, the Corporation shall take any action which may be necessary, including obtaining regulatory, NYSE, NASDAQ or
other applicable national securities exchange or stockholder approvals or exemptions, in order that the Corporation may thereafter validly and legally issue as fully paid and nonassessable all Shares that the holders of Designated Preferred Stock
are entitled to receive upon conversion of the Designated Preferred Stock pursuant to this Section 11. 
 (n) Adjustment
Rules. Any adjustments pursuant to this Section 11 shall be made successively whenever an event referred to herein shall occur. 

Section 12. Reservation and Listing of Common Stock. The Corporation hereby covenants that any Shares issued upon the
conversion of the Designated Preferred Stock in accordance with this Certificate of Designations shall be duly and validly authorized and issued, fully paid and nonassessable and free from all taxes, liens and charges (other than liens or charges
created by a holder of Designated Preferred Stock, income and franchise taxes incurred in connection with the conversion of the Designated Preferred Stock or taxes in respect of any transfer occurring contemporaneously therewith). The Corporation
shall at all times reserve and keep available, out of its authorized but unissued Common Stock, solely for the purpose of providing for the conversion of the Designated Preferred Stock, the aggregate number of shares of Common Stock then issuable
upon conversion of the Designated Preferred Stock at any time. The Corporation shall (A) procure, at its sole expense, the listing of the Shares issuable upon conversion of the Designated Preferred Stock at any time, subject to issuance or
notice of issuance, on all principal stock exchanges on which the Common Stock is then listed or traded and (B) maintain such listings of such Shares at all times after issuance. The Corporation shall use reasonable best efforts to ensure that
the Shares may be issued without violation of any 
  

 A-24 

 
applicable law or regulation or of any requirement of any securities exchange on which the Shares are listed or traded. 

Section 13. Voting Rights. 

(a) General. The holders of Designated Preferred Stock shall not have any voting rights except as set forth below or as otherwise
from time to time required by law. 
 (b) Preferred Stock Directors. Whenever, at any time or times, dividends payable on
the shares of Designated Preferred Stock have not been paid for an aggregate of six quarterly Dividend Periods or more, whether or not consecutive, the authorized number of directors of the Corporation shall automatically be increased by two and the
holders of the Designated Preferred Stock shall have the right, with holders of shares of any one or more other classes or series of Voting Parity Stock outstanding at the time, voting together as a class, to elect two directors (hereinafter the
“Preferred Directors” and each a “Preferred Director”) to fill such newly created directorships at the Corporation’s next annual meeting of stockholders (or at a special meeting called for that purpose prior to
such next annual meeting) and at each subsequent annual meeting of stockholders until all accrued and unpaid dividends for all past Dividend Periods, including the latest completed Dividend Period (including, if applicable as provided in
Section 3(a) above, dividends on such amount), on all outstanding shares of Designated Preferred Stock have been declared and paid in full at which time such right shall terminate with respect to the Designated Preferred Stock, except as herein
or by law expressly provided, subject to revesting in the event of each and every subsequent default of the character above mentioned; provided that it shall be a qualification for election for any Preferred Director that the election of such
Preferred Director shall not cause the Corporation to violate any corporate governance requirements of any securities exchange or other trading facility on which securities of the Corporation may then be listed or traded that listed or traded
companies must have a majority of independent directors. Upon any termination of the right of the holders of shares of Designated Preferred Stock and Voting Parity Stock as a class to vote for directors as provided above, the Preferred Directors
shall cease to be qualified as directors, the term of office of all Preferred Directors then in office shall terminate immediately and the authorized number of directors shall be reduced by the number of Preferred Directors elected pursuant hereto.
Any Preferred Director may be removed at any time, with or without cause, and any vacancy created thereby may be filled, only by the affirmative vote of the holders a majority of the shares of Designated Preferred Stock at the time outstanding
voting separately as a class together with the holders of shares of Voting Parity Stock, to the extent the voting rights of such holders described above are then exercisable. If the office of any Preferred Director becomes vacant for any reason
other than removal from office as aforesaid, the remaining Preferred Director may choose a successor who shall hold office for the unexpired term in respect of which such vacancy occurred. 

(c) Class Voting Rights as to Particular Matters. So long as any shares of Designated Preferred Stock are outstanding, in addition
to any other vote or consent of stockholders required by law or by the Charter, the vote or consent of the holders of at least 66 2/3% of the shares of Designated Preferred Stock at the time outstanding, voting as a separate class, given in person
or by proxy, either in writing without a meeting or by vote at any meeting called for the purpose, shall be necessary for effecting or validating: 
  

 A-25 

 (i) Authorization of Senior Stock. Any amendment or alteration of the
Certificate of Designations for the Designated Preferred Stock or the Charter to authorize or create or increase the authorized amount of, or any issuance of, any shares of, or any securities convertible into or exchangeable or exercisable for
shares of, any class or series of Capital Stock of the Corporation ranking senior to Designated Preferred Stock with respect to either or both the payment of dividends and/or the distribution of assets on any liquidation, dissolution or winding up
of the Corporation; 
 (ii) Amendment of Designated Preferred Stock. Any amendment, alteration or
repeal of any provision of the Certificate of Designations for the Designated Preferred Stock or the Charter (including, unless no vote on such merger or consolidation is required by Section 13(c)(iii) below, any amendment, alteration or repeal
by means of a merger, consolidation or otherwise) so as to adversely affect the rights, preferences, privileges or voting powers of the Designated Preferred Stock; or 

(iii) Share Exchanges, Reclassifications, Mergers and Consolidations. Any consummation of a binding share
exchange or reclassification involving the Designated Preferred Stock, or of a merger or consolidation of the Corporation with another corporation or other entity, unless in each case (x) the shares of Designated Preferred Stock remain
outstanding or, in the case of any such merger or consolidation with respect to which the Corporation is not the surviving or resulting entity, are converted into or exchanged for preference securities of the surviving or resulting entity or its
ultimate parent, and (y) such shares remaining outstanding or such preference securities, as the case may be, have such rights, preferences, privileges and voting powers, and limitations and restrictions thereof, taken as a whole, as are not
materially less favorable to the holders thereof than the rights, preferences, privileges and voting powers, and limitations and restrictions thereof, of Designated Preferred Stock immediately prior to such consummation, taken as a whole;

 provided, however, that for all purposes of this Section 13(c), any increase in the amount of the authorized Preferred Stock,
including any increase in the authorized amount of Designated Preferred Stock necessary to satisfy preemptive or similar rights granted by the Corporation to other persons prior to the Signing Date, or the creation and issuance, or an increase in
the authorized or issued amount, whether pursuant to preemptive or similar rights or otherwise, of any other series of Preferred Stock, or any securities convertible into or exchangeable or exercisable for any other series of Preferred Stock,
ranking equally with and/or junior to Designated Preferred Stock with respect to the payment of dividends (whether such dividends are cumulative or non-cumulative) and the distribution of assets upon liquidation, dissolution or winding up of the
Corporation shall not be deemed to adversely affect the rights, preferences, privileges or voting powers, and shall not require the affirmative vote or consent of, the holders of outstanding shares of the Designated Preferred Stock. 

(d) Changes after Provision for Redemption or Conversion. No vote or consent of the holders of Designated Preferred Stock shall be
required pursuant to Section 13(c) above if, at or prior to the time when any such vote or consent would otherwise be required pursuant to such Section, all outstanding shares of the Designated Preferred Stock shall have been redeemed, or shall
have been called for redemption upon proper notice and sufficient funds shall have been 
  

 A-26 

 
deposited in trust for such redemption, in each case pursuant to Section 5 above or shall have been converted and sufficient Shares shall have been delivered, in each case, pursuant to
Sections 6, 7, 8, 9 or 10 above. 
 (e) Procedures for Voting and Consents. The rules and procedures for calling and
conducting any meeting of the holders of Designated Preferred Stock (including, without limitation, the fixing of a record date in connection therewith), the solicitation and use of proxies at such a meeting, the obtaining of written consents and
any other aspect or matter with regard to such a meeting or such consents shall be governed by any rules of the Board of Directors or any duly authorized committee of the Board of Directors, in its discretion, may adopt from time to time, which
rules and procedures shall conform to the requirements of the Charter, the Bylaws, and applicable law and the rules of any national securities exchange or other trading facility on which Designated Preferred Stock is listed or traded at the time.

 Section 14. Record Holders. To the fullest extent permitted by applicable law, the Corporation, the transfer
agent, registrar, dividend disbursing agent and conversion agent may deem and treat the record holder of any share of Designated Preferred Stock as the true and lawful owner thereof for all purposes, and neither the Corporation nor such transfer
agent, registrar, dividend disbursing agent or conversion agent shall be affected by any notice to the contrary. 

Section 15. Prohibited Actions. The Corporation agrees that it shall not take any action which would entitle holder(s) of
Designated Preferred Stock to an adjustment of the Conversion Price if the total number of shares of Common Stock issuable after such action upon conversion of the Designated Preferred Stock, together with all shares of Common Stock then outstanding
and all shares of Common Stock then issuable upon the exercise of all outstanding options, warrants, conversion and other rights, would exceed the total number of shares of Common Stock then authorized by its Charter. 

Section 16. Notices. All notices or communications in respect of Designated Preferred Stock shall be sufficiently given if
given in writing and delivered in person or by first class mail, postage prepaid, or if given in such other manner as may be permitted in this Certificate of Designations, in the Charter or Bylaws or by applicable law. Notwithstanding the foregoing,
if shares of Designated Preferred Stock are issued in book-entry form through the Depositary or any similar facility, such notices may be given to the holders of Designated Preferred Stock in any manner permitted by such facility. 

Section 17. No Preemptive Rights. No share of Designated Preferred Stock shall have any rights of preemption whatsoever as to
any securities of the Corporation, or any warrants, rights or options issued or granted with respect thereto, regardless of how such securities, or such warrants, rights or options, may be designated, issued or granted. 

Section 18. Replacement Certificates. The Corporation shall replace any mutilated certificate at the holder’s expense
upon surrender of that certificate to the Corporation. The Corporation shall replace certificates that become destroyed, stolen or lost at the holder’s expense upon delivery to the Corporation of reasonably satisfactory evidence that the
certificate 
  

 A-27 

 
has been destroyed, stolen or lost, together with any indemnity that may be reasonably required by the Corporation. 

Section 19. Other Rights. The shares of Designated Preferred Stock shall not have any rights, preferences, privileges or
voting powers or relative, participating, optional or other special rights, or qualifications, limitations or restrictions thereof, other than as set forth herein or in the Charter or as provided by applicable law. 

 

 A-28 

 ANNEX C 

FORM OF OPINION 
  

 Annex C-1 

 ANNEX D 

FORM OF WAIVER 
 In
consideration for the benefits I will receive as a result of the participation of STERLING FINANCIAL CORPORATION (together with its subsidiaries and affiliates, the “Company”), which is either my employer or the sole shareholder of
my employer, in the United States Department of the Treasury’s (the “Treasury”) Capital Purchase Program and/or any other economic stabilization program implemented by the Treasury under the Emergency Economic Stabilization Act
of 2008 (as amended, supplemented, or otherwise modified, the “EESA”) (any such program, including the Capital Purchase Program, a “Program”), I hereby voluntarily waive any claim against the United States (and each
of its departments and agencies) or the Company or my employer, or any of their respective directors, officers, employees and agents for any changes to my compensation or benefits that are required to comply with the executive compensation and
corporate governance requirements of Section 111 of the EESA, as implemented by any guidance or regulations issued and/or to be issued thereunder, including without limitation the provisions for the Capital Purchase Program, as implemented by
any guidance or regulation thereunder, including the rules set forth in 31 C.F.R. Part 30, or any other guidance or regulations under the EESA and the applicable requirements of the Exchange Agreement by and among the Company and the Treasury dated
as of April 29, 2010, as amended (such requirements, the “Limitations”). 
 I acknowledge that the Limitations may require
modification or termination of the employment, compensation, bonus, incentive, severance, retention and other benefit plans, arrangements, policies and agreements (including so-called “golden parachute” agreements), whether or not in
writing, that I may have with the Company or my employer or in which I may participate as they relate to the period the United States holds any equity or debt securities of the Company acquired through a Program or for any other period applicable
under such Program or Limitations, as the case may be, and I hereby consent to all such modifications. 
 This waiver includes all claims I may
have under the laws of the United States or any other jurisdiction (whether or not in existence as of the date hereof) related to the requirements imposed by the Limitations, including without limitation a claim for any compensation or other
payments or benefits I would otherwise receive, any challenge to the process by which the Limitations are or were adopted and any tort or constitutional claim about the effect of these Limitations on my employment relationship and I hereby agree
that I will not at any time initiate, or cause or permit to be initiated on my behalf, any such claim against the United States, the Company, my employer or their respective directors, officers, employees or agents in or before any local, state,
federal or other agency, court or body. 
 I agree that, in the event and to the extent that the Compensation Committee of the Board of
Directors of the Company or similar governing body (the “Committee”) reasonably determines that any compensatory payment and benefit provided to me, including any bonus or incentive compensation based on materially inaccurate
financial statements or performance criteria, would cause the Company to fail to be in compliance with the Limitations (such payment or benefit, an “Excess Payment”), upon notification from the Company, I shall repay such Excess
Payment to 
  

 Annex D-1 

 
the Company within 15 business days. In addition, I agree that the Company shall have the right to postpone any such payment or benefit for a reasonable period of time to enable the Committee to
determine whether such payment or benefit would constitute an Excess Payment. 
 I understand that any determination by the Committee as to
whether or not, including the manner in which, a payment or benefit needs to be modified, terminated or repaid in order for the Company to be in compliance with Section 111 of the EESA and/or the Limitations shall be a final and conclusive
determination of the Committee which shall be binding upon me. I further understand that the Company is relying on this letter from me in connection with its participation in a Program. 

 

 Annex D-2 

 IN WITNESS WHEREOF, I execute this waiver on my own behalf, thereby communicating my acceptance and
acknowledgement to the provisions herein. 
  

					
	Respectfully,	 	
		
	  
	 	
	 Name:
	 		 	
	 Title:
	 		 	
	 Date:
	 		 	

  

 Annex D-3 

 SCHEDULE A 

CAPITALIZATION 
  

							
	Response to Section 3.1(b):
	  
 Capitalization Date: March 31,
2010

	  
 Common Stock

	  
 Par value: $1.00 per share

	  
 Total Authorized: 750,000,000 shares
authorized

	  
 Outstanding: 52,176,282

	  
 Subject to warrants, options, convertible securities,
etc.:

		 	  
 Options:
	  	1,365,389	  	
				
		 	 Warrants:
	  	6,437,677	  	
				
		 	 Convertible Securities:
	  	0	  	
		 		  	 	  	
				
		 	 Total:
	  	7,803,066	  	
	  
 Reserved for benefit plans and other issuances:
2,279,050

	  
 Remaining authorized but unissued:
687,741,602

	  
 Shares issued after Capitalization Date (other than
pursuant to warrants, options, convertible securities, etc. as set forth above): 0

	  
 Preferred Stock

	  
 Par value: $1.00 per share

	  
 Total Authorized: 10,000,000 shares
authorized

	  
 Outstanding (by series): 303,000 shares of Series A

	  
 Reserved for issuance: 0

	  
 Remaining authorized but unissued:
9,697,000

  

 Sch. A-1 

 SCHEDULE B 

COMPANY MATERIAL ADVERSE EFFECT 

Response to Section 3.7: None 
  

 Sch. B-1

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00172-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00172-of-00352.parquet"}]]