Document:

EX-10.1

 

Exhibit 10.1.

AGREEMENT AND PLAN OF MERGER

between

F.N.B. CORPORATION

and

IRON & GLASS BANCORP, INC.

DATED AS OF FEBRUARY 14, 2008

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page	 
	ARTICLE I THE MERGER
	 	 	1	 
	1.1 The Merger
	 	 	1	 
	1.2 Effective Time
	 	 	2	 
	1.3 Effects of the Merger
	 	 	2	 
	1.4 Conversion of IRGB Capital Stock
	 	 	2	 
	1.5 FNB Capital Stock
	 	 	4	 
	1.6 IRGB Equity and Equity-Based Awards
	 	 	4	 
	1.7 Articles of Incorporation and Bylaws of the Surviving Company
	 	 	5	 
	1.8 Tax Consequences
	 	 	5	 
	1.9 Dissenting Shares
	 	 	5	 
	1.10 The Bank Merger
	 	 	5	 
	ARTICLE II EXCHANGE OF SHARES
	 	 	6	 
	2.1 Election and Proration Procedures
	 	 	6	 
	2.2 FNB to Make Merger Consideration Available
	 	 	10	 
	2.3 Exchange of Shares
	 	 	10	 
	2.4 Adjustments for Dilution and Other Matters
	 	 	12	 
	2.5 Withholding Rights
	 	 	12	 
	ARTICLE III REPRESENTATIONS AND WARRANTIES OF IRGB
	 	 	12	 
	3.1 Corporate Organization
	 	 	13	 
	3.2 Capitalization
	 	 	14	 
	3.3 Authority; No Violation
	 	 	15	 
	3.4 Consents and Approvals
	 	 	16	 
	3.5 Reports
	 	 	17	 
	3.6 Financial Statements
	 	 	17	 
	3.7 Broker’s Fees
	 	 	18	 
	3.8 Absence of Certain Changes or Events
	 	 	18	 
	3.9 Legal Proceedings
	 	 	18	 
	3.10 Taxes and Tax Returns
	 	 	19	 
	3.11 Employee Benefits
	 	 	21	 
	3.12 Compliance with Applicable Law
	 	 	24	 
	3.13 Contracts
	 	 	25	 
	3.14 Agreements with Regulatory Agencies
	 	 	25	 
	3.15 Undisclosed Liabilities
	 	 	25	 
	3.16 Environmental Liability
	 	 	26	 
	3.17 Real Property
	 	 	27	 
	3.18 State Takeover Laws
	 	 	27	 
	3.19 Reorganization
	 	 	28	 
	3.20 Opinion
	 	 	28	 

(i)

 

	 	 	 	 	 
	 	 	Page	 
	3.21 Insurance
	 	 	28	 
	3.22 Investment Securities
	 	 	28	 
	3.23 Intellectual Property
	 	 	28	 
	3.24 Loans; Nonperforming and Classified Assets
	 	 	29	 
	3.25 Fiduciary Accounts
	 	 	29	 
	3.26 Allowance for Loan Losses
	 	 	29	 
	ARTICLE IV REPRESENTATIONS AND WARRANTIES OF FNB
	 	 	30	 
	4.1 Corporate Organization
	 	 	30	 
	4.2 Capitalization
	 	 	30	 
	4.3 Authority; No Violation
	 	 	31	 
	4.4 Consents and Approvals
	 	 	32	 
	4.5 Reports
	 	 	33	 
	4.6 Financial Statements
	 	 	33	 
	4.7 Broker’s Fees
	 	 	34	 
	4.8 Absence of Certain Changes or Events
	 	 	34	 
	4.9 Legal Proceedings
	 	 	34	 
	4.10 Taxes and Tax Returns
	 	 	34	 
	4.11 Employee Benefits
	 	 	36	 
	4.12 SEC Reports
	 	 	39	 
	4.13 Compliance with Applicable Law
	 	 	39	 
	4.14 Contracts
	 	 	39	 
	4.15 Agreements with Regulatory Agencies
	 	 	39	 
	4.16 Undisclosed Liabilities
	 	 	40	 
	4.17 Environmental Liability
	 	 	40	 
	4.18 Reorganization
	 	 	41	 
	4.19 Loans; Nonperforming and Classified Assets
	 	 	41	 
	4.20 Fiduciary Accounts
	 	 	42	 
	4.21 Allowance for Loan Losses
	 	 	42	 
	ARTICLE V COVENANTS RELATING TO CONDUCT OF BUSINESS
	 	 	42	 
	5.1 Conduct of Businesses Prior to the Effective Time
	 	 	42	 
	5.2 IRGB Forbearances
	 	 	42	 
	5.3 FNB Forbearances
	 	 	47	 
	5.4 Voting Agreements
	 	 	48	 
	ARTICLE VI ADDITIONAL AGREEMENTS
	 	 	48	 
	6.1 Regulatory Matters
	 	 	48	 
	6.2 Access to Information
	 	 	50	 
	6.3 IRGB Shareholder Approval
	 	 	51	 
	6.4 Commercially Reasonable Efforts; Cooperation
	 	 	51	 
	6.5 NYSE Approval
	 	 	51	 
	6.6 Benefit Plans
	 	 	52	 
	6.7 Indemnification; Directors’ and Officers’ Insurance
	 	 	53	 
	6.8 Additional Agreements
	 	 	54	 

(ii)

 

	 	 	 	 	 
	 	 	Page	 
	6.9 Advice of Changes
	 	 	55	 
	6.10 Dividends
	 	 	55	 
	6.11 Certain Actions
	 	 	55	 
	6.12 Transition
	 	 	58	 
	6.13 Certain Post-Closing Matters
	 	 	58	 
	6.14 Tax Representation Letters
	 	 	59	 
	ARTICLE VII CONDITIONS PRECEDENT
	 	 	59	 
	7.1 Conditions to Each Party’s Obligation to Effect the Merger
	 	 	59	 
	7.2 Conditions to Obligation of FNB to Effect the Merger
	 	 	60	 
	7.3 Conditions to Obligation of IRGB to Effect the Merger
	 	 	61	 
	ARTICLE VIII TERMINATION AND AMENDMENT
	 	 	62	 
	8.1 Termination
	 	 	62	 
	8.2 Effect of Termination
	 	 	65	 
	8.3 Amendment
	 	 	65	 
	8.4 Extension; Waiver
	 	 	66	 
	ARTICLE IX GENERAL PROVISIONS
	 	 	66	 
	9.1 Closing
	 	 	66	 
	9.2 Nonsurvival of Representations, Warranties and Agreements
	 	 	66	 
	9.3 Expenses
	 	 	66	 
	9.4 Notices
	 	 	67	 
	9.5 Interpretation
	 	 	68	 
	9.6 Counterparts
	 	 	68	 
	9.7 Entire Agreement
	 	 	68	 
	9.8 Governing Law; Jurisdiction
	 	 	69	 
	9.9 Severability
	 	 	69	 
	9.10 Assignment; Third Party Beneficiaries
	 	 	70	 
	 
	 	 	 	 
	EXHIBITS:
	 	 	 	 
	Exhibit A Form of Bank Merger Agreement
	 	 	A-1	 
	Exhibit B Form of Voting Agreement
	 	 	B-1	 

(iii)

 

INDEX OF DEFINED TERMS

	 	 	 	 	 
	 	 	 	Section
	Acquisition Proposal
	 	 	6.11(e)	 
	Adjusted Buyer Ratio
	 	 	8.1(h)	
	Agreement
	 	 	Preamble
	Articles of Merger
	 	 	1.2	 
	Assumed Stock Options
	 	 	1.6(a)	
	Average Closing Price
	 	 	8.1(h)	
	Bank Merger
	 	 	1.10	 
	Bank Merger Agreement
	 	 	1.10	 
	BHC Act
	 	 	3.1(b)	
	Break-up Fee
	 	 	6.11(f)	
	Cash Election
	 	 	2.1(a)	
	Cash Proration Factor
	 	 	2.1(b)	
	Certificates
	 	 	1.4(c)	
	Change in IRGB Recommendation
	 	 	6.11(b)	
	Claim
	 	 	6.7(a)	
	Closing
	 	 	9.1	 
	Closing Date
	 	 	9.1	 
	Code
	 	 	Preamble
	Combination Cash Election
	 	 	2.1(a)	
	Combination Stock Election
	 	 	2.1(a)	
	Confidentiality Agreement
	 	 	6.2(b)	
	Contracts
	 	 	5.2(j)	
	Controlled Group Liability
	 	 	3.10	 
	Credit Facilities
	 	 	5.2(f)	
	Determination Date
	 	 	8.1(g)	
	DRSP Plan
	 	 	1.4(d)	 
	Effective Date
	 	 	1.2	 
	Effective Time
	 	 	1.2	 
	Election Deadline
	 	 	2.1(b)	
	Election Form
	 	 	2.1(a)	
	Environmental Laws
	 	 	3.15(b)	
	ERISA
	 	 	3.11	 
	ERISA Affiliate
	 	 	3.11	 
	Exchange Act
	 	 	2.1(a)	
	Exchange Agent
	 	 	2.1	 
	Exchange Fund
	 	 	2.2	 
	Exchange Ratio
	 	 	1.4(a)	
	FBCA
	 	 	1.1(a)	

(iv)

 

	 	 	 	 	 
	 	 	 	Section
	FDIC
	 	 	3.4	 
	Federal Reserve Board
	 	 	3.4	 
	FNB
	 	 	Preamble
	FNB 2006 10-K
	 	 	4.6	 
	FNB 10-Q
	 	 	4.16	 
	FNB Bank
	 	 	1.10	 
	FNB Bank Board
	 	 	1.10	 
	FNB Benefit Plan
	 	 	4.11	 
	FNB Bylaws
	 	 	4.1(b)	
	FNB Charter
	 	 	4.1(b)	
	FNB Closing Price
	 	 	1.6(a)	
	FNB Common Stock
	 	 	1.4(a)	
	FNB Disclosure Schedule
	 	 	Art.  IV Preamble
	FNB Employment Agreement
	 	 	4.11	 
	FNB Loan Property
	 	 	4.17	 
	FNB Plans
	 	 	6.7(a)	
	FNB Preferred Stock
	 	 	4.2(a)	
	FNB Qualified Plans
	 	 	4.11(d)	 
	FNB Regulatory Agreement
	 	 	4.15	 
	FNB Reports
	 	 	4.12	 
	FNB Stock Plans
	 	 	4.2(a)	
	GAAP
	 	 	3.1(c)	
	Governmental Entity
	 	 	3.4	 
	Hazardous Substance
	 	 	3.16(b)	
	HSR Act
	 	 	3.4	 
	Indemnified Parties
	 	 	6.7(a)	
	Index Price
	 	 	8.1(h)	 
	Injunction
	 	 	7.1(e)	 
	Insurance Amount
	 	 	6.7(c)	
	Intellectual Property
	 	 	3.23	 
	IRGB
	 	 	Preamble
	IRGB Articles
	 	 	3.1(b)	
	IRGB Bank
	 	 	1.10	 
	IRGB Bank Designees
	 	 	1.10	 
	IRGB Benefit Plan
	 	 	3.11	 
	IRGB Bylaws
	 	 	3.1(b)	
	IRGB Closing Price
	 	 	1.6(a)	
	IRGB Common Stock
	 	 	1.4(a)	
	IRGB Disclosure Schedule
	 	 	Art.  III Preamble
	IRGB Employment Agreement
	 	 	3.11	 
	IRGB’s Knowledge
	 	 	3.16(b)	
	IRGB Loan Property
	 	 	3.16(a)	

(v)

 

	 	 	 	 	 
	 	 	 	Section
	IRGB Plan
	 	 	3.11	 
	IRGB Qualified Plans
	 	 	3.11(d)	
	IRGB Recommendation
	 	 	6.3(e)	
	IRGB Regulatory Agreement
	 	 	3.14	 
	IRGB Representatives
	 	 	6.13(a)	
	IRGB RSU
	 	 	1.6(b)	
	IRGB Shareholder Meeting
	 	 	6.3	 
	IRGB Stock Option
	 	 	1.6(a)	
	IRGB Stock Plans
	 	 	1.6(a)	
	IRGB Subsidiary
	 	 	3.1(c)	
	IRS
	 	 	3.10(a)	
	Proxy Statement
	 	 	3.4	 
	Leased Properties
	 	 	3.17(c)	
	Leases
	 	 	3.17(b)	
	Liens
	 	 	3.2(b)	
	Loan(s)
	 	 	5.2(s)	 
	Material Adverse Effect
	 	 	3.1(c)	
	Materially Burdensome Regulatory Condition
	 	 	6.1(d)	
	Merger
	 	 	Preamble
	Merger Consideration
	 	 	1.4(a)	
	Multiemployer Plan
	 	 	3.11	 
	Multiple Employer Plan
	 	 	3.11	 
	NASDAQ
	 	 	3.1(c)	
	NYSE
	 	 	3.1(c)	
	OCC
	 	 	3.4	 
	OREO
	 	 	3.24(b)	
	Option Ratio
	 	 	1.6(a)	
	Other Regulatory Approvals
	 	 	3.4	 
	Owned Properties
	 	 	3.17(a)	
	PA DOB
	 	 	3.4	 
	Payment Event
	 	 	6.11(g)	 
	PBCL
	 	 	1.1(a)	
	PBGC
	 	 	3.11(e)	
	Per Share Consideration
	 	 	8.1(h)	
	Person
	 	 	3.9(a)	
	Registration Statement
	 	 	3.4	 
	Regulatory Agencies
	 	 	3.5	 
	Requisite Regulatory Approvals
	 	 	7.1(c)	
	SEC
	 	 	3.4	 
	Securities Act
	 	 	1.6(d)	
	SRO
	 	 	3.4	 
	Starting Date
	 	 	8.1(h)	

(vi)

 

	 	 	 	 	 
	 	 	 	Section
	Starting Price
	 	 	8.1(h)	
	Stock Amount
	 	 	2.1(c)(v)	 
	Stock Election
	 	 	2.1(a)	
	Stock Proration Factor
	 	 	2.1(b)	 
	Subsidiary
	 	 	3.1(c)	
	Superior Proposal
	 	 	6.11(e)	 
	Surviving Company
	 	 	Preamble
	Undesignated Shares
	 	 	2.1(c)	
	Tax Returns
	 	 	3.10(c)	
	Tax(es)
	 	 	3.10(b)	
	Third Party
	 	 	3.17(d)	
	Third Party Leases
	 	 	3.17(d)	
	Treasury Shares
	 	 	1.4(b)	
	Voting Agreement
	 	 	Preamble
	Withdrawal Liability
	 	 	3.11	 

(vii)

 

AGREEMENT AND PLAN OF MERGER

     AGREEMENT AND PLAN OF MERGER, dated as of February 14, 2008 (this “Agreement”), between F.N.B.
CORPORATION, a Florida corporation (“FNB “) and IRON & GLASS BANCORP, INC., a Pennsylvania
corporation (“IRGB”).

W I T N E S S E T H:

     WHEREAS, the Boards of Directors of IRGB and FNB have determined that it is in the best
interests of their respective companies and their shareholders to consummate the strategic business
combination transaction provided for in this Agreement in which IRGB will, on the terms and subject
to the conditions set forth in this Agreement, merge with and into FNB (the “ Merger “), so that
FNB is the surviving company in the Merger (sometimes referred to in such capacity as the
“Surviving Company”); and

     WHEREAS, for federal income Tax (as defined in Section 3.10(b)) purposes, it is intended that
the Merger shall qualify as a reorganization under the provisions of Section 368(a) of the Internal
Revenue Code of 1986, as amended (the “Code”);

     WHEREAS, the members of the IRGB Board of Directors will execute a voting agreement in the
form of Exhibit B (the “Voting Agreement”); and

     WHEREAS, the parties desire to make certain representations, warranties and agreements in
connection with the Merger and also to prescribe certain conditions to the Merger.

     NOW, THEREFORE, in consideration of the mutual covenants, representations, warranties and
agreements contained in this Agreement, and other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, and intending to be legally bound hereby, the parties
agree as follows:

ARTICLE 1

THE MERGER

     1.1 The Merger.

          (a) Subject to the terms and conditions of this Agreement, in accordance with the Pennsylvania
Business Corporation Law (the “PBCL”) and the Florida Business Corporation Act (the “FBCA”), at the
Effective Time (as defined in Section 1.2), IRGB shall merge with and into FNB. FNB shall be the
Surviving Company in the Merger, and shall continue its corporate existence under the laws of the
State of Florida. As of the Effective Time, the separate corporate existence of IRGB shall cease.

-1-

 

          (b) FNB may at any time change the method of effecting the combination and IRGB shall
cooperate in such efforts, including by entering into an appropriate amendment to this Agreement
(to the extent such amendment only changes the method of effecting the business combination and
does not substantively affect this Agreement or the rights and obligations of the parties or their
respective shareholders hereunder); provided, however, that no such change shall (i) alter or
change the amount or kind of the Merger Consideration (as defined in Section 1.4(a)) provided for
in this Agreement, (ii) adversely affect the Tax treatment of IRGB’s shareholders as a result of
receiving the Merger Consideration or the Tax treatment of either party pursuant to this Agreement
or (iii) materially impede or delay consummation of the transactions contemplated by this
Agreement.

     1.2 Effective Time. The Merger shall become effective as set forth in the articles of
merger (the “Articles of Merger”) that shall be filed with the Secretary of State of the
Commonwealth of Pennsylvania and the Secretary of State of the State of Florida on or before the
Closing Date (as defined in Section 9.1). The term “Effective Time” shall mean the date and time
when the Merger becomes effective as set forth in the Articles of Merger. “Effective Date” shall
mean the date on which the Effective Time occurs.

     1.3 Effects of the Merger.

          (a) Effects Under PBCL. At and after the Effective Time, the Merger shall have the
effects set forth in Sections 1921 through 1932 of the PBCL and Sections 607.1101 through 607.11101
of the FBCA.

          (b) Directors and Executive Officers of the Surviving Company. The directors of the
Surviving Company immediately after the Merger shall be the directors of FNB immediately prior to
the Merger. The executive officers of the Surviving Company immediately after the Merger shall be
the executive officers of FNB immediately prior to the Merger.

     1.4 Conversion of IRGB Capital Stock.

          (a) Subject to the provisions of this Agreement, each share of common stock, no par value, of
IRGB (“IRGB Common Stock”) issued and outstanding immediately prior to the Effective Time, other
than Dissenting Shares (as defined in Section 1.9) and Treasury Shares (as defined in Section
1.4(b)) shall, by virtue of the Merger, no longer be outstanding and shall as of the Effective Time
automatically be converted into and shall thereafter represent the right to receive as merger
consideration (the “Merger Consideration”) either (i) 5.0 shares (the “Exchange Ratio”) of common
stock, $.01 par value, of FNB (“FNB Common Stock”), (ii) an amount in cash equal to $75.00, without
interest, or (iii) a combination of FNB Common Stock and cash as set forth in this Section 1.4, as
the holders of IRGB common stock may elect, provided that all elections shall be made as to whole
shares only.

-2-

 

          (b) At and after the Effective Time, each Treasury Share shall be cancelled and retired and no
shares of FNB Common Stock or other consideration shall be issued in exchange therefor. “Treasury
Shares” means shares of IRGB Common Stock held by IRGB or any of its Subsidiaries (as defined in
Section 3.1(c)) or by FNB or any of its Subsidiaries, and in each case, other than in a fiduciary,
including custodial or agency, capacity or as a result of debts previously contracted in good
faith. At and after the Effective Time, Dissenting Shares shall have such rights as provided by
Section 1930 of the PBCL and otherwise shall have no rights to receive the Merger Consideration.

          (c) At the Effective Time, the stock transfer books of IRGB shall be closed as to holders of
IRGB Common Stock immediately prior to the Effective Time and no transfer of IRGB Common Stock by
any such holder shall thereafter be made or recognized. If, after the Effective Time, certificates
representing IRGB Common Stock (“Certificates”) are properly presented in accordance with Section
2.1 of this Agreement to the Exchange Agent (as defined in Section 2.1(a)), such Certificates shall
be canceled and converted into the right to receive the Merger Consideration, plus any payment for
any fractional share of FNB Common Stock without any interest thereon and any dividends or
distributions to which the holder of such Certificates is entitled pursuant to Section 2.3(b).

          (d) Each holder of IRGB Common Stock shall have the option of enrolling the whole shares of
FNB Common Stock issuable to such shareholder upon the consummation of the Merger in FNB’s
Dividend Reinvestment and Stock Purchase Plan (the “DRSP Plan”). Each IRGB shareholder electing to
enroll in the DRSP Plan shall be issued a certificate representing the number of whole shares of
FNB Common Stock received in the Merger, and any future dividends will be reinvested in accordance
with the DRSP Plan.

          (e) Notwithstanding any other provision of this Agreement, each holder of IRGB Common Stock
who would otherwise be entitled to receive a fractional share of FNB Common Stock, after taking
into account all Certificates delivered by such holder, shall receive an amount in cash, without
interest, rounded to the nearest cent, equal to the product obtained by multiplying (a) the Average
Closing Price (as defined below) as of the Closing Date by (b) the fraction of a share (calculated
to the nearest ten-thousandth when expressed in decimal form) of FNB Common Stock, to which such
holder would otherwise be entitled. No such holder shall be entitled to dividends or other rights
in respect of any such fractional shares. “Average Closing Price” means, as of any specified date,
the average composite closing price of FNB Common Stock on the NYSE as reported in New York Stock
Exchange Composite Transactions in The Wall Street Journal (Eastern Edition) or, if not reported
therein, in another mutually agreed upon authoritative source, for each of the 20 consecutive
trading days ending on and including the fifth such trading day prior to the specified date rounded
to the nearest ten-thousandth.

-3-

 

     1.5 FNB Capital Stock. At and after the Effective Time, each share of FNB capital
stock issued and outstanding immediately prior to the Effective Time shall remain issued and
outstanding and shall not be affected by the Merger.

     1.6 IRGB Equity and Equity-Based Awards.

          (a) IRGB Stock Options. Effective as of the Effective Time, each then outstanding
option to purchase shares of IRGB Common Stock (each an “IRGB Stock Option”), pursuant to the
equity-based compensation plans identified on Section 3.11(a) of the IRGB Disclosure Schedule (as
defined in Article III) (the “IRGB Stock Plans”) and the award agreements evidencing the grants
thereunder, granted to any current or former employee or director of, or consultant to, IRGB or any
of its Subsidiaries (as defined in Section 3.1(c)) shall at the Effective Time cease to represent a
right to acquire shares of IRGB Common Stock and shall be converted automatically into an option to
acquire shares of FNB Common Stock and each option to acquire shares of IRGB Common Stock that
prior to the Effective Time is fully vested and exercisable, shall continue as a fully vested and
exercisable option of FNB on the terms hereinafter set forth. FNB shall assume each such IRGB
Stock Option in accordance with the terms of the relevant IRGB Stock Plan and stock option or other
agreement by which it is evidenced, except that from and after the Effective Time: (i) FNB and the
Compensation Committee of its Board of Directors shall be substituted for IRGB and the committee of
the Board of Directors of IRGB, including, if applicable, the entire Board of Directors of IRGB,
administering such IRGB Stock Plan, (ii) each IRGB Stock Option assumed by FNB may be exercised
solely for shares of FNB Common Stock, (iii) the number of shares of FNB Common Stock subject to
such IRGB Stock Option shall be equal to the number of shares of IRGB Common Stock subject to such
IRGB Stock Option immediately prior to the Effective Time multiplied by the Option Ratio, provided
that any fractional shares of FNB Common Stock resulting from such multiplication shall be rounded
down to the nearest share, and (iv) the exercise price per share of FNB Common Stock under each
such option shall be the amount (rounded up to the nearest whole cent) equal to the per share
exercise price under each such IRGB Stock Option prior to the Effective Time divided by the Option
Ratio, provided, however, that in the case of any IRGB Stock Option, the exercise price and the
number of shares shall be determined in a manner consistent with Section 409A of the Code so that
no Tax is triggered under Section 409A of the Code; provided, further, that each IRGB Stock Option
that is an “incentive stock option” shall be adjusted as required by Section 424 of the Code, and
the regulations promulgated thereunder, so as not to constitute a modification, extension or
renewal of the option within the meaning of Section 424(h) of the Code. FNB and IRGB agree to take
all necessary steps to effect the provisions of this Section 1.6(a). As of the Effective Time, FNB
shall issue to each holder of each outstanding IRGB Stock Option that has been assumed by FNB (the
“Assumed Stock Options”) a document evidencing the conversion and assumption of such IRGB Stock
Option by FNB pursuant to this Section 1.6(a).

-4-

 

          “Option Ratio” shall mean the quotient obtained by dividing the IRGB Closing Price by the FNB
Closing Price.

          “FNB Closing Price” shall mean the average, rounded to the nearest one ten thousandth, of the
closing sale price of FNB Common Stock on the New York Stock Exchange (including any successor
exchange, the “NYSE”) as reported by The Wall Street Journal for the trading day immediately
preceding the date of the Effective Time.

          “IRGB Closing Price” shall mean the average, rounded to the nearest one ten thousandth, of the
closing sale price of IRGB Common Stock on the Over-the-Counter Trading Board for the trading day
immediately preceding the date of the Effective Time.

          (b) IRGB 401(k) Plan. Not later than the Closing Date, IRGB agrees to terminate its
Section 401(k) Plan.

          (c) Reservation of Shares. FNB has taken all corporate action necessary to reserve
for issuance a sufficient number of shares of FNB Common Stock issuable upon the exercise of the
Assumed Stock Options. As soon as practicable and not later than 30 days following the Closing (as
defined in Section 9.1), FNB shall file a registration statement on an appropriate form or a
post-effective amendment to a previously filed registration statement under the Securities Act of
1933, as amended (the “Securities Act”) with respect to the issuance of the shares of FNB Common
Stock subject to the Assumed Stock Options and shall use its best efforts to maintain the
effectiveness of such registration statement or registration statements (and maintain the current
status of the prospectus or prospectuses contained therein) for so long as such equity awards
remain outstanding.

     1.7 Articles of Incorporation and Bylaws of the Surviving Company. FNB’s Charter (as
defined in Section 4.1(b)) as in effect immediately prior to the Effective Time shall be the
articles of incorporation of the Surviving Company until thereafter amended in accordance with
applicable law. FNB’s Bylaws (as defined in Section 4.1(b)) as in effect immediately prior to the
Effective Time shall be the bylaws of the Surviving Company until thereafter amended in accordance
with applicable law.

     1.8 Tax Consequences. It is intended that the Merger shall constitute a
“reorganization” within the meaning of Section 368(a) of the Code, and that this Agreement shall
constitute a “plan of reorganization” for purposes of Sections 354 and 361 of the Code.

     1.9 Dissenting Shares. IRGB shareholders shall be entitled to dissenters rights as
provided under Section 1930 of the PBCL. Any IRGB shareholder who desires to assert dissenters
rights (“Dissenting Shares”) must comply with the provisions and procedures set forth in Subchapter
D of Chapter 15 of the PBCL, Sections 1571 through 1580.

     1.10 The Bank Merger. As soon as practicable after the execution of this Agreement,
IRGB and FNB shall cause Iron & Glass Bank (“IRGB Bank”) and First National Bank of

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Pennsylvania (“FNB Bank”) to enter into a bank merger agreement, the form of which is attached
hereto as Exhibit A (the “Bank Merger Agreement”), that provides for the merger of IRGB Bank with
and into FNB Bank (the “Bank Merger”), in accordance with applicable laws and regulations and the
terms of the Bank Merger Agreement and as soon as practicable after consummation of the Merger.
The Bank Merger Agreement provides that the directors of FNB Bank (the “FNB Bank Board”) upon
consummation of the Bank Merger shall be the directors of FNB Bank immediately prior to the Bank
Merger plus one IRGB Bank Designee (as defined in Section 6.13(a)).

ARTICLE 2

EXCHANGE OF SHARES

     2.1 Election and Proration Procedures.

          (a) An election form and other appropriate and customary transmittal materials, which shall
specify that delivery shall be effected, and risk of loss and title to the Certificates theretofore
representing shares of IRGB Common Stock shall pass, only upon proper delivery of such Certificates
to the Registrar and Transfer Company (the “Exchange Agent”) in such form as FNB shall determine
(“Election Form”) shall be mailed by or on behalf of FNB no less than 40 days prior to the
anticipated Effective Time of the Merger, as jointly determined by FNB and IRGB (“Mailing Date”) to
each holder of record of IRGB Common Stock as of the close of business on the fifth business day
prior to the mailing date (the “Election Form Record Date”). FNB shall make available one or more
Election Forms as may be reasonably requested by all persons who become holders (or beneficial
owners) (the term “beneficial owner” and “beneficial ownership” for purposes of this Agreement
shall have the meaning set forth in Rule 13d-3 under the Securities Exchange Act of 1934 (the
“Exchange Act”) of IRGB Common Stock after the Election Form Record Date and prior to the Election
Deadline, and IRGB shall provide to the Exchange Agent all information reasonably necessary for it
to perform its obligations as specified herein. Each Election Form shall permit the holder or the
beneficial owner through appropriate and customary documentation and instructions to elect (an
“Election”) to receive (i) FNB Common Stock (a “Stock Election”) with respect to all of such
holder’s IRGB Common Stock, or (ii) cash (a “Cash Election”) with respect to all of such holder’s
IRGB Common Stock, or (iii) FNB Common Stock for a specified number of shares of IRGB Common Stock
(a “Combination Stock Election”) and cash for the remaining number of shares of IRGB Common Stock
held by such holder (a “Combination Cash Election”). Any IRGB Common Stock other than Dissenting
Shares and Treasury Shares with respect to which the Exchange Agent has not received an effective,
properly completed Election Form prior to the Election Deadline shall be deemed to be “Undesignated
Shares” hereunder.

          (b) Any Election shall have been properly made and effective only if the Exchange Agent shall
have actually received a properly completed Election Form that has not

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been revoked by 5:00 p.m., prevailing time, by the 30th day following the Mailing Date or such
other time and date as FNB shall determine (the “Election Deadline”). An Election Form shall be
deemed properly completed only if an Election is indicated for each share of IRGB Common Stock
covered by such Election Form and if accompanied by one or more Certificates, or customary
affidavits and indemnification regarding the loss or destruction of such Certificates or the
guaranteed delivery of such Certificates, representing all shares of IRGB Common Stock covered by
such Election Form, together with duly executed transmittal materials included in or required by
the Election Form. Any Election Form may be revoked by the person submitting such Election Form at
or prior to the Election Deadline, provided that the Exchange Agent shall have actually received
prior to the Election Deadline a written notice revoking such Election Form and specifying the
shares of IRGB Common Stock covered by such revoked Election Form. In the event an Election Form
is revoked prior to the Election Deadline, the shares of IRGB Common Stock represented by such
Election Form shall automatically become Undesignated Shares unless and until a new Election is
properly made with respect to such shares on or before the Election Deadline, and FNB shall cause
the Certificates representing such shares of IRGB Common Stock to be promptly returned without
charge to the person submitting the revoked Election Form upon written request to that effect from
the holder who submitted such Election Form. Subject to the terms of this Agreement and of the
Election Form, the Exchange Agent shall have reasonable discretion to determine whether any
Election or revocation has been properly or timely made and to disregard immaterial defects in the
Election Forms, and any decisions of IRGB and FNB required by the Exchange Agent and made in good
faith in determining such matters shall be binding and conclusive. FNB shall use reasonable
efforts to cause the Exchange Agent to notify any person of any defect in an Election Form.

          (c) As promptly as practicable but not later than the fifth business day prior to the
Effective Time of the Merger, FNB shall inform IRGB of the allocation and shall cause the Exchange
Agent to effect the allocation among the holders of IRGB Common Stock of rights to receive FNB
Common Stock or cash in the Merger in accordance with the Election Forms as follows:

          (i) if the aggregate number of shares of IRGB Common Stock as to which Stock Elections and
Combination Stock Elections shall have effectively been made times the Exchange Ratio is
approximately equal to the Stock Amount (as defined in Section 2.1(c)(v) below), then:

     (A) Each holder of IRGB Common Stock who made an effective Stock Election or
Combination Stock Election shall receive the number of shares of FNB Common Stock
that is equal to the product of the Exchange Ratio multiplied by the number of shares
of IRGB Common Stock covered by such Stock Election or Combination Stock Election;
and

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     (B) Each holder of IRGB Common Stock who made an effective Cash Election or
Combination Cash Election, and each holder of Undesignated Shares shall receive the
Price Per Share in cash for each such share of IRGB Common Stock or Undesignated
Share.

     (ii) if the aggregate number of shares of IRGB Common Stock as to which Stock Elections and
Combination Stock Elections shall have effectively been made times the Exchange Ratio exceeds, and
is not approximately equal to, the Stock Amount, then FNB shall have the option to issue FNB Common
Stock in accordance with such elections. If FNB chooses not to exercise such option, then:

     (A) Each holder of IRGB Common Stock who made an effective Cash Election or
Combination Cash Election shall receive the Price Per Share in cash for each such
share of IRGB Common Stock;

     (B) Each holder of Undesignated Shares shall be deemed to have made Cash
Elections and shall receive the Price Per Share in cash for each such Undesignated
Share; and

     (C) A stock proration factor (the “Stock Proration Factor”) shall be determined
by dividing (1) the Stock Amount by (2) the product of the Exchange Ratio and the
number of shares of IRGB Common Stock with respect to which effective Stock Elections
and Combination Stock Elections were made. Each holder of IRGB Common Stock who made
an effective Stock Election or Combination Stock Election shall be entitled to:

     (1) the number of shares of FNB Common Stock equal to the product of (x)
the Exchange Ratio, multiplied by (y) the number of shares of IRGB Common
Stock covered by such Stock Election or Combination Stock Election, multiplied
by (z) the Stock Proration Factor, and

     (2) cash in an amount equal to the product of (x) the Price Per Share,
multiplied by (y) the number of shares of IRGB Common Stock covered by such
Stock Election or Combination Stock Election, multiplied by (z) one minus the
Stock Proration Factor.

     (iii) if the aggregate number of shares of IRGB Common Stock as to which Stock Elections and
Combination Stock Elections shall have effectively been made times the Exchange Ratio is less than,
and is not approximately equal to, the Stock Amount, then:

     (A) Each holder of IRGB Common Stock who made an effective Stock Election or
Combination Stock Election shall receive the number of shares of FNB Common Stock
equal to the product of the Exchange Ratio multiplied by

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the number of shares of IRGB Common Stock covered by such Stock Election or
Combination Stock Election;

     (B) The Exchange Agent shall select, by pro rata allocation according to the
number of IRGB shares held, among those holders of Undesignated Shares, such number
of shares of FNB Common Stock as shall be necessary so that the shares of FNB Common
Stock to be received by those holders, when combined with the number of shares for
which a Stock Election or Combination Stock Election has been made, multiplied by the
Exchange Ratio shall be approximately equal to the Stock Amount. If all of said
Undesignated Shares plus all shares as to which Stock Elections and Combination Stock
Elections have been made together multiplied by the Exchange Ratio are less than, and
not approximately equal to, the Stock Amount, then:

     (C) A cash proration factor (the “Cash Proration Factor”) shall be determined by
dividing (1) the amount which is the difference between (x) the number obtained by
dividing the Stock Amount by the Exchange Ratio and (y) the sum of the number of
            shares of IRGB Common Stock with respect to which effective Stock Elections and
Combination Stock Elections were made and the number of Undesignated Shares selected
pursuant to subparagraph (iii)(B) above by (2) the number of shares of IRGB Common
Stock with respect to which effective Cash Elections and Combination Cash Elections
were made. Each holder of IRGB Common Stock who made an effective Cash Election or
Combination Cash Election shall be entitled to:

     (1) cash equal to the product of (x) the Price Per Share, multiplied by
(y) the number of shares of IRGB Common Stock covered by such Cash Election or
Combination Cash Election, multiplied by (z) one minus the Cash Proration
Factor, and

     (2) the number of shares of FNB Common Stock equal to the product of (x)
the Exchange Ratio, multiplied by (y) the number of shares of IRGB Common
Stock covered by such Cash Election or Combination Cash Election, multiplied
by (z) the Cash Proration Factor.

          (iv) The prorata allocation process to be used by the Exchange Agent shall consist of such
procedures as FNB shall determine.

          (v) “Stock Amount” means 3,070,856.25 shares of FNB Common Stock plus such number of
additional shares of FNB Common Stock as is equal to the Exchange Ratio times the number of shares
of IRGB Common Stock issued between the date hereof and the Election Deadline, to the extent
permitted by this Agreement and subject to adjustment pursuant to Sections 2.1 and 2.4.

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          (d) For purposes of this Section 2.1, the shares of FNB Common Stock to be issued as
consideration in the Merger shall be deemed to be “approximately equal” to the Stock Amount if such
number is within 10,000 shares of FNB Common Stock of such amount.

     2.2 FNB to Make Merger Consideration Available. Within four business days following
the Effective Time, FNB shall deposit, or shall cause to be deposited, with the Exchange Agent, for
the benefit of the former shareholders of IRGB Common Stock (other than with respect to Treasury
Shares and Dissenting Shares), for exchange in accordance with this Article II, (i) certificates or
book entries with Depository Trust Company representing the shares of FNB Common Stock sufficient
to deliver the aggregate Stock Amount, (ii) immediately available funds equal to any dividends or
distributions payable in accordance with Section 2.3(b), (iii) immediately available funds equal to
the aggregate Cash Amount and (iv) cash in lieu of any fractional shares (such cash and
certificates for shares of FNB Common Stock, collectively being referred to as the “Exchange
Fund”), to be issued pursuant to Section 1.4(a) and paid pursuant to Section 1.4(a) in exchange for
outstanding shares of IRGB Common Stock.

     2.3 Exchange of Shares.

          (a) After the Effective Time of the Merger, each holder of a Certificate formerly representing
IRGB Common Stock, other than Treasury Shares and Dissenters Shares, who surrenders or has
surrendered such Certificate or customary affidavits and indemnification regarding the loss or
destruction of such Certificate, together with duly executed transmittal materials included in or
required by the Election Form to the Exchange Agent, shall, upon acceptance thereof, be entitled to
(i) a certificate representing the FNB Common Stock and/or (ii) cash into which the shares of IRGB
Common Stock shall have been converted pursuant to Section 1.4, as well as cash in lieu of any
fractional share of FNB Common Stock to which such holder would otherwise be entitled, if
applicable. The Exchange Agent shall accept such Certificate upon compliance with such reasonable
and customary terms and conditions as the Exchange Agent may impose to effect an orderly exchange
thereof in accordance with normal practices. Until surrendered as contemplated by this Section
2.3, each Certificate representing IRGB Common Stock shall be deemed from and after the Effective
Time of the Merger to evidence only the right to receive the Merger Consideration to which it is
entitled hereunder upon such surrender. FNB shall not be obligated to deliver the Merger
Consideration to which any former holder of IRGB Common Stock is entitled as a result of the Merger
until such holder surrenders his Certificate or Certificates for exchange as provided in this
Section 2.3. If any certificate for shares of FNB Common Stock, or any check representing cash and/or declared but unpaid dividends, is to be
issued in a name other than that in which a Certificate surrendered for exchange is issued, the
Certificate so surrendered shall be properly endorsed and otherwise in proper form for transfer and
the person requesting such exchange shall affix any requisite stock transfer tax

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stamp, if any, to
the Certificate surrendered or provide funds for their purchase or establish to the satisfaction of
the Exchange Agent that such taxes are not payable.

          (b) No dividends or other distributions declared or made after the Effective Time of the
Merger with respect to FNB Common Stock with a record date after the Effective Time of the Merger
shall be paid to the holder of any unsurrendered Certificate with respect to the shares of FNB
Common Stock represented thereby, and no cash payment in lieu of a fractional share shall be paid
to any such holder pursuant to Section 1.4, until the holder of record of such Certificate shall
surrender such Certificate. Subject to the effect of applicable laws, following surrender of any
such Certificate, there shall be paid to the record holder of the certificates representing whole
shares of FNB Common Stock issued in exchange therefor, without interest, (i) at the time of such
surrender, the amount of any cash payable in lieu of a fractional share of FNB Common Stock to
which such holder is entitled pursuant to Section 1.4 and the amount of dividends or other
distributions with a record date on or after the Effective Time of the Merger theretofore paid with
respect to such whole shares of FNB Common Stock, and (ii) at the appropriate payment date, the
amount of dividends or other distributions with a record date after the Effective Time of the
Merger but prior to surrender and a payment date subsequent to surrender payable with respect to
such whole shares of FNB Common Stock.

          (c) All cash and shares of FNB Common Stock issued upon the surrender for exchange of shares
of IRGB Common Stock or the provision of customary affidavits and indemnification for lost or
mutilated Certificates in accordance with the terms hereof and the Election Form, including any
cash paid pursuant to Section 1.4, shall be deemed to have been issued in full satisfaction of all
rights pertaining to such shares of IRGB Common Stock, and there shall be no further registration
of transfers on the stock transfer books of FNB, after the Merger, of the shares of IRGB Common
Stock that were outstanding immediately prior to the Effective Time of the Merger. If, after the
Effective Time of the Merger, Certificates are presented to FNB for any reason, they shall be
canceled and exchanged as provided in this Agreement.

          (d) Any portion of the Exchange Fund, including any interest thereon, that remains
undistributed to the stockholders of IRGB following the passage of 12 months after the Effective
Time of the Merger shall be delivered to FNB, upon demand, and any stockholders of IRGB who have
not theretofore complied with this Section 2.3 shall thereafter look only to FNB for payment of
their claim for cash and for FNB Common Stock, any cash in lieu of fractional shares of FNB Common
Stock and any dividends or distributions with respect to FNB Common Stock.

          (e) Neither IRGB nor FNB shall be liable to any holder of shares of IRGB Common Stock or FNB
Common Stock, as the case may be, for such shares, or dividends or distributions with respect
thereto, or cash from the Exchange Fund delivered to a public official pursuant to any applicable
abandoned property, escheat or similar law.

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          (f) The Exchange Agent shall not be entitled to vote or exercise any rights of ownership with
respect to the shares of FNB Common Stock held by it from time to time hereunder, except that it
shall receive and hold all dividends or other distributions paid or distributed with respect to
such shares of FNB Common Stock for the account of the Persons entitled thereto.

     2.4 Adjustments for Dilution and Other Matters. If prior to the Effective Time of the
Merger, (a) FNB shall declare a stock dividend or distribution on FNB Common Stock with a record
date prior to the Effective Time of the Merger, or subdivide, split up, reclassify or combine FNB
Common Stock, or make a distribution other than a regular quarterly cash dividend not in excess of
$.30 per share, on FNB Common Stock in any security convertible into FNB Common Stock, in each case
with a record date prior to the Effective Time of the Merger, or (b) the outstanding shares of FNB
Common Stock shall have been increased, decreased, changed into or exchanged for a different number
or kind of shares or securities, in each case as a result of a reorganization, recapitalization,
reclassification, stock dividend, stock split, reverse stock split or other similar change in FNB’s
capitalization other than a business combination transaction with another bank holding company or
financial services company, then a proportionate adjustment or adjustments will be made to the
Exchange Ratio, which adjustment may include, as appropriate, the issuance of securities, property
or cash on the same basis as that on which any of the foregoing shall have been issued or issuable
to, distributed or distributable to or paid or payable to holders of FNB Common Stock generally.

     2.5 Withholding Rights. The Exchange Agent or, subsequent to the first anniversary of
the Effective Time, FNB, shall be entitled to deduct and withhold from any cash portion of the
Merger Consideration, any cash in lieu of fractional shares of FNB Common Stock, cash dividends or
distributions payable pursuant to Section 2.3(b) and any other cash amounts otherwise payable
pursuant to this Agreement to any holder of IRGB Common Stock such amounts as the Exchange Agent or
FNB, as the case may be, is required to deduct and withhold under the Code, or any provision of
state, local or foreign Tax law, with respect to the making of such payment. To the extent the
amounts are so withheld by the Exchange Agent or FNB, as the case may be, such withheld amounts
shall be treated for all purposes of this Agreement as having been paid to the holder of shares of
IRGB Common Stock in respect of whom such deduction and withholding was made by the Exchange Agent
or FNB, as the case may be.

ARTICLE 3

REPRESENTATIONS AND WARRANTIES OF IRGB

     Except as disclosed in the disclosure schedule delivered by IRGB to FNB (the “IRGB Disclosure
Schedule”), IRGB hereby represents and warrants to FNB as follows:

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     3.1 Corporate Organization.

          (a) IRGB is a corporation duly organized, validly existing and in good standing under the laws
of the Commonwealth of Pennsylvania. IRGB has the corporate power and authority and has all
licenses, permits and authorizations of applicable Governmental Entities required to own or lease
all of its properties and assets and to carry on its business as it is now being conducted, and is
duly licensed or qualified to do business in each jurisdiction in which the nature of the business
conducted by it or the character or location of the properties and assets owned or leased by it
makes such licensing or qualification necessary, except where such failure to be licensed or
qualified does not have a Material Adverse Effect upon IRGB.

          (b) IRGB is duly registered as a bank holding company under the Bank Holding Company Act of
1956, as amended (the “BHC Act”). True and complete copies of the Articles of Incorporation of
IRGB (the “IRGB Articles”) and the Bylaws of IRGB (the “IRGB Bylaws”), as in effect as of the date
of this Agreement, have previously been made available to FNB.

          (c) Each of IRGB’s Subsidiaries (i) is duly organized and validly existing under the laws of
its jurisdiction of organization, (ii) is duly qualified to do business and in good standing in all
jurisdictions (whether federal, state, local or foreign) where its ownership or leasing of property
or the conduct of its business requires it to be so qualified and (iii) has all requisite corporate
power and authority, and has all licenses, permits and authorizations of applicable Governmental
Entities required, to own or lease its properties and assets and to carry on its business as now
conducted, except in each of (i) – (iii) as would not be reasonably likely to have, either
individually or in the aggregate, a Material Adverse Effect on IRGB. As used in this Agreement,
(i) the word “Subsidiary” when used with respect to either party, means any corporation,
partnership, joint venture, limited liability company or any other entity (A) of which such party
or a subsidiary of such party is a general partner or (B) at least 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 party and/or one or more subsidiaries thereof, and the terms “IRGB
Subsidiary” and “FNB Subsidiary” shall mean any direct or indirect Subsidiary of IRGB or FNB,
respectively, and (ii) the term “Material Adverse Effect” means, with respect to FNB, IRGB or the
Surviving Company, as the case may be, any event, circumstance, development, change or effect that
alone or in the aggregate with other events, circumstances, developments, changes or effects (A) is materially adverse to the business, results of operations or financial condition of
such party and its Subsidiaries taken as a whole (provided, however, that, with respect to this
clause (A), Material Adverse Effect shall not be deemed to include effects to the extent resulting
from (1) changes, after the date hereof, in U.S. generally accepted accounting principles (“GAAP”)
or regulatory accounting requirements applicable to banks or savings

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associations and their holding
companies generally; (2) changes, after the date hereof, in laws, rules or regulations of general
applicability or interpretations thereof by courts or Governmental Entities (as defined in Section
3.4); (3) actions or omissions of (a) FNB, or (b) IRGB, taken at the request of, or with the prior
written consent of the other or required hereunder; (4) changes, events or developments, after the
date hereof, in the national or world economy or financial or securities markets generally or
changes, events or developments, after the date hereof in general economic conditions or other
changes, events or developments, after the date hereof that affect banks or their holding companies
generally except to the extent that such changes have a materially disproportionate adverse effect
on such party relative to other similarly situated participants in the markets or industries in
which they operate; (5) consummation or public disclosure of the transactions contemplated hereby
(including the resignation of employment of employees or any impact on such party’s business,
customer relations, condition or results of operations, in each case as a result therefrom); (6)
any outbreak or escalation of war or hostilities, any occurrence or threats of terrorist acts or
any armed hostilities associated therewith and any national or international calamity, disaster or
emergency or any escalation thereof; (7) any changes in interest rates or foreign currency rates;
(8) any claim, suit, action, audit, arbitration, investigation, inquiry or other proceeding or
order which in any manner challenges, seeks to prevent, enjoin, alter or delay, or seeks damages as
a result of or in connection with, the transactions contemplated hereby; (9) any failure by such
party to meet any published (whether by such party or a third party research analyst) or internally
prepared estimates of revenues or earnings; (10) a decline in the price, or a change in the trading
volume of, such party’s common stock on the Nasdaq Global Select Market (including any successor
exchange, “NASDAQ”) or the New York Stock Exchange (including any successor exchange, “NYSE”), as
applicable; and (11) any matter to the extent that (i) it is disclosed in reasonable detail in the
party’s disclosure schedules delivered to the other party pursuant to this Agreement or in such
party’s SEC reports referenced in Section 4.12, as applicable, and (ii) such disclosed matter does
not worsen in a materially adverse manner); or (B) materially delays or impairs the ability of such
party to timely consummate the transactions contemplated by this Agreement.

     3.2 Capitalization.

          (a) The authorized capital stock of IRGB consists of 5,000,000 shares of IRGB Common Stock, of
which, as of December 31, 2007, 1,116,675 shares were issued and outstanding. As of December 31,
2007, no shares of IRGB Common Stock were reserved for issuance except for 61,804 shares of IRGB
Common Stock reserved for issuance upon the exercise of IRGB Stock Options issued pursuant to the
IRGB Stock Plans. All of the issued and outstanding shares of IRGB Common Stock have been, and all shares of IRGB Common Stock
that may be issued upon the exercise of the IRGB Stock Options will be, when issued in accordance
with the terms thereof, duly authorized and validly issued and are fully paid, nonassessable and
free of preemptive rights. Except pursuant to this Agreement and the IRGB Stock Plans, IRGB does
not have and is not bound by any outstanding subscriptions,

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options, warrants, calls, commitments
or agreements of any character calling for the purchase or issuance of any shares of IRGB Common
Stock or any other equity securities of IRGB or any securities representing the right to purchase
or otherwise receive any shares of IRGB Common Stock. Set forth in Section 3.2 of the IRGB
Disclosure Schedule is a true, correct and complete list of each IRGB Stock Option (such list to
include the IRGB Stock Plan under which such options were issued, the number of shares of IRGB
Common Stock subject thereto, the vesting schedule thereof and the exercise prices thereof)
outstanding under the IRGB Stock Plans as of December 31, 2007. Since December 31, 2007 through
the date hereof, IRGB has not issued or awarded, or authorized the issuance or award of, any
options, restricted stock units or other equity-based awards under the IRGB Stock Plans.

          (b) All of the issued and outstanding shares of capital stock or other equity ownership
interests of each Subsidiary of IRGB are owned by IRGB, directly or indirectly, free and clear of
any material liens, pledges, charges and security interests and similar encumbrances (other than
liens for property Taxes not yet due and payable, “Liens”), and all of such shares or equity
ownership interests are duly authorized and validly issued and are fully paid, nonassessable and
free of preemptive rights, except as provided in 12 U.S.C. 55 or similar laws in the case of
depository institutions. No such Subsidiary has or is bound by any outstanding subscriptions,
options, warrants, calls, commitments or agreements of any character calling for the purchase or
issuance of any shares of capital stock or any other equity security of such Subsidiary or any
securities representing the right to purchase or otherwise receive any shares of capital stock or
any other equity security of such Subsidiary.

     3.3 Authority; No Violation.

          (a) IRGB has full corporate power and authority to execute and deliver this Agreement and to
consummate the transactions contemplated hereby, subject to the receipt of necessary IRGB
Shareholder and Regulatory Approvals. The execution and delivery of this Agreement and the
consummation of the transactions contemplated hereby have been duly and validly approved by the
Board of Directors of IRGB. Except for the approval and adoption of this Agreement and the
transactions contemplated by this Agreement by the affirmative vote of a majority of the votes cast
by all holders of shares of IRGB Common Stock at such meeting at which a quorum is present, no
other corporate approvals on the part of IRGB are necessary to approve this Agreement. This
Agreement has been duly and validly executed and delivered by IRGB and, assuming due authorization,
execution and delivery by FNB, constitutes the valid and binding obligation of IRGB, enforceable
against IRGB in accordance with its terms, except as may be limited by bankruptcy, insolvency,
moratorium, reorganization or similar laws affecting the rights of creditors generally and the
availability of equitable remedies.

          (b) Neither the execution and delivery of this Agreement by IRGB nor the consummation by IRGB
of the transactions contemplated hereby, nor compliance by IRGB with any of the terms or provisions
of this Agreement, will (i) violate any provision of the

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IRGB Articles or the IRGB Bylaws or (ii) assuming that the consents, approvals and filings
referred to in Section 3.4 are duly obtained and/or made and are in full force and effect, (A)
violate any statute, code, ordinance, rule, regulation, judgment, order, writ, decree or Injunction
(as defined in Section 7.1(e)) applicable to IRGB, any of its Subsidiaries or any of their
respective properties or assets, or (B) violate, conflict with, result in a breach of any provision
of, constitute a default (or an event which, with notice or lapse of time, or both, would
constitute a default) under, result in the termination of or a right of termination or cancellation
under, accelerate the performance required by, or result in the creation of any Lien upon any of
the respective properties or assets of IRGB or any of its Subsidiaries under, any of the terms,
conditions or provisions of any note, bond, mortgage, indenture, deed of trust, license, lease,
agreement or other instrument or obligation to which IRGB or any of its Subsidiaries is a party, or
by which they or any of their respective properties or assets may be bound or affected, except for
such violations, conflicts, breaches or defaults with respect to clause (ii) that are not
reasonably likely to have, either individually or in the aggregate, a Material Adverse Effect on
IRGB.

     3.4 Consents and Approvals. Except for (i) the filing by FNB of applications and
notices, as applicable, with the Board of Governors of the Federal Reserve System (the “Federal
Reserve Board”) under the BHC Act and the Federal Reserve Act, as amended, and approval of such
applications and notices, and, in connection with the merger of IRGB Bank with and into FNB Bank,
the filing by FNB of applications and notices, as applicable, with the Federal Deposit Insurance
Corporation (the “FDIC”), the Office of the Comptroller of the Currency (the “OCC”) or the
Pennsylvania Department of Banking (the “PA DOB”) and the Federal Reserve Board, and approval of
such applications and notice, (ii) the filing by FNB of any required applications or notices with
any foreign or state banking, insurance or other regulatory or self-regulatory authorities and
approval of such applications and notices (the “Other Regulatory Approvals”), (iii) the filing by
FNB with the Securities and Exchange Commission (the “SEC”) of a proxy statement in definitive form
relating to the meetings of IRGB shareholders to be held in connection with this Agreement (the “
Proxy Statement”) and the transactions contemplated by this Agreement and of a registration
statement by FNB on Form S-4 that is declared effective (the “Registration Statement”) in which the
Proxy Statement will be included as a prospectus, and declaration of effectiveness of the
Registration Statement, (iv) the filing by FNB of the Articles of Merger with and the acceptance
for record by the Secretary of State of the Commonwealth of Pennsylvania pursuant to the PBCL and
the filing of the Articles of Merger with and the acceptance for record by the Secretary of State
of the State of Florida pursuant to the FBCA, (v) any notices or filings by IRGB and FNB required
under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended (the “HSR Act”), (vi)
any consents, authorizations, approvals, filings or exemptions by FNB in connection with compliance
with the applicable provisions of federal and state securities laws relating to the regulation of
broker-dealers, investment advisers or transfer agents and the rules and regulations thereunder and
of any applicable industry self-regulatory organization (“SRO”), and the rules of NASDAQ or the
NYSE, or that

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are required under consumer finance, insurance mortgage banking and other similar laws, (vii)
approval of the listing of such FNB Common Stock issuable in the Merger or as a result of FNB’s
assumption of the IRGB Stock Plans on the NYSE, (viii) the adoption of this Agreement by the
requisite vote of shareholders of IRGB and (ix) filings, if any, required by FNB as a result of the
particular status of FNB, no consents or approvals of or filings or registrations by FNB with any
court, administrative agency or commission or other governmental authority or instrumentality or
SRO (each a “Governmental Entity”) are necessary in connection with (A) the execution and delivery
by IRGB of this Agreement and (B) the consummation by IRGB of the Merger and the other transactions
contemplated by this Agreement. Nothing in this Section 3.4 is intended or shall be construed as
requiring IRGB to take any of the actions described herein, or relieving FNB of its obligations to
make such filings or obtain approvals or consents necessary to the consummation of this Agreement
and the transactions contemplated herein.

     3.5 Reports. IRGB and each of its Subsidiaries have in all material respects timely
filed all reports, registrations and statements, together with any amendments required to be made
with respect thereto, that they were required to file since January 1, 2005 with (i) the Federal
Reserve Board, (ii) the FDIC, (iii) any state regulatory authority, (iv) any foreign regulatory
authority and (v) any SRO (collectively, “Regulatory Agencies”) and with each other applicable
Governmental Entity, and all other reports and statements required to be filed by them since
January 1, 2005, including any report or statement required to be filed pursuant to the laws, rules
or regulations of the United States, any state, any foreign entity, or any Regulatory Agency, and
have paid all fees and assessments due and payable in connection therewith. Except for normal
examinations conducted by a Regulatory Agency in the ordinary course of the business of IRGB and
its Subsidiaries, no Regulatory Agency has initiated or has pending any proceeding or, to the
knowledge of IRGB, investigation into the business or operations of IRGB or any of its Subsidiaries
since January 1, 2005. There (i) is no unresolved violation, criticism or exception by any
Regulatory Agency with respect to any report or statement relating to any examinations or
inspections of IRGB or any of its Subsidiaries and (ii) has been no formal or informal inquiries
by, or disagreements or disputes with, any Regulatory Agency with respect to the business,
operations, policies or procedures of IRGB since January 1, 2005.

     3.6 Financial Statements.

          (a) (i) IRGB has previously made available to FNB copies of the consolidated balance sheets of
IRGB and its Subsidiaries as of December 31, 2004, 2005 and 2006, and the related consolidated
statements of income, shareholders’ equity and cash flows for the years then ended, accompanied by
the audit reports of S.R. Snodgrass AC, independent registered public accountants with respect to
IRGB for the years ended December 31, 2004, 2005 and 2006. The December 31, 2006 consolidated
balance sheet of IRGB (including the related notes, where applicable) fairly presents in all
material respects the consolidated financial position of

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IRGB and its Subsidiaries as of the date thereof, and the other financial statements referred
to in this Section 3.6 (including the related notes, where applicable) fairly present in all
material respects the results of the consolidated operations, cash flows and changes in
shareholders equity and consolidated financial position of IRGB and its Subsidiaries for the
respective fiscal periods or as of the respective dates therein set forth, subject to normal
year-end audit adjustments in amounts consistent with past experience in the case of unaudited
statements; each of such statements (including the related notes, where applicable) complies in all
material respects with applicable accounting requirements and with the published rules with respect
thereto and each of such statements (including the related notes, where applicable) has been
prepared in all material respects in accordance with GAAP consistently applied during the periods
involved, except, in each case, as indicated in such statements or in the notes thereto. The books
and records of IRGB and its Subsidiaries have been, and are being, maintained in all material
respects in accordance with GAAP and any other applicable legal and accounting requirements and
reflect only actual transactions.

          (b) No agreement pursuant to which any loans or other assets have been or shall be sold by
IRGB or its Subsidiaries entitled the buyer of such loans or other assets, unless there is material
breach of a representation or covenant by IRGB or its Subsidiaries, to cause IRGB or its
Subsidiaries to repurchase such loan or other asset or the buyer to pursue any other form of
recourse against IRGB or its Subsidiaries. To the knowledge of IRGB, there has been no material
breach of a representation or covenant by IRGB or its Subsidiaries in any such agreement. Since
January 1, 2005, no cash, stock or other dividend or any other distribution with respect to the
capital stock of IRGB or any of its Subsidiaries has been declared, set aside or paid other than
regular quarterly cash dividends. Except as disclosed in Section 3.6 of the IRGB Disclosure
Schedule, no shares of capital stock of IRGB have been purchased, redeemed or otherwise acquired,
directly or indirectly, by IRGB since January 1, 2005, and no agreements have been made to do the
foregoing.

     3.7 Broker’s Fees. Neither IRGB nor any IRGB Subsidiary nor any of their respective
officers or directors has employed any broker or finder or incurred any liability for any broker’s
fees, commissions or finder’s fees in connection with the Merger or related transactions
contemplated by this Agreement, other than Keefe, Bruyette & Woods, Inc.

     3.8 Absence of Certain Changes or Events. Since December 31, 2006, (i) IRGB and its
Subsidiaries have (except in connection with the negotiation and execution and delivery of this
Agreement) carried on their respective businesses in all material respects in the ordinary course
consistent with past practice and (ii) there has not been any Material Adverse Effect with respect
to IRGB.

     3.9 Legal Proceedings.

          (a) There is no pending, or, to IRGB’s knowledge, threatened, litigation, action, suit,
proceeding, investigation or arbitration by any individual, partnership,

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corporation, trust, joint venture, organization or other entity (each, a “Person”) or
Governmental Entity that has had, or is reasonably likely to have a Material Adverse Effect on IRGB
and its Subsidiaries, taken as a whole, in each case with respect to IRGB or any of its
Subsidiaries or any of their respective properties or permits, licenses or authorizations.

          (b) There is no judgment, or regulatory restriction (other than those of general application
that apply to similarly situated financial or bank holding companies or their Subsidiaries) that
has been imposed upon IRGB, any of its Subsidiaries or the assets of IRGB or any of its
Subsidiaries, that has had, or is reasonably likely to have, a Material Adverse Effect on IRGB and
its Subsidiaries, taken as a whole.

     3.10 Taxes and Tax Returns.

          (a) Each of IRGB and its Subsidiaries has duly and timely filed (including all applicable
extensions) all Tax Returns (as defined in subsection (c), below) required to be filed by it on or
prior to the date of this Agreement (all such Tax Returns being accurate and complete in all
material respects), has timely paid or withheld and timely remitted all Taxes shown thereon as
arising and has duly and timely paid or withheld and timely remitted all Taxes (whether or not
shown on any Tax Return) that are due and payable or claimed to be due from it by a Governmental
Entity other than Taxes that (i) are being contested in good faith, which have not been finally
determined, and (ii) have been adequately reserved against in accordance with GAAP on IRGB’s most
recent consolidated financial statements. All required estimated Tax payments sufficient to avoid
any underpayment penalties or interest have been made by or on behalf of each of IRGB and its
Subsidiaries. Neither IRGB nor any of its Subsidiaries has granted any extension or waiver of the
limitation period for the assessment or collection of Tax that remains in effect. Except as set
forth in Section 3.10 of the IRGB Disclosure Schedule, there are no disputes, audits, examinations
or proceedings in progress or pending (including any notice received of an intent to conduct an
audit or examination), or claims asserted, for Taxes upon IRGB or any of its Subsidiaries. No
claim has been made by a Governmental Entity in a jurisdiction where IRGB or any of its
Subsidiaries has not filed Tax Returns such that IRGB or any of its Subsidiaries is or may be
subject to taxation by that jurisdiction. All deficiencies asserted or assessments made as a
result of any examinations by any Governmental Entity of the Tax Returns of, or including, IRGB or
any of its Subsidiaries have been fully paid. No issue has been raised by a Governmental Entity in
any prior examination or audit of each of IRGB and its Subsidiaries which, by application of the
same or similar principles, could reasonably be expected to result in a proposed deficiency in
respect of such Governmental Entity for any subsequent taxable period. There are no Liens for
Taxes (other than statutory liens for Taxes not yet due and payable) upon any of the assets of IRGB
or any of its Subsidiaries. Neither IRGB nor any of its Subsidiaries is a party to or is bound by
any Tax sharing, allocation or indemnification agreement or arrangement (other than such an
agreement or arrangement exclusively between or among IRGB and its Subsidiaries). Neither IRGB nor
any of its Subsidiaries (A)

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has been a member of an affiliated group filing a consolidated federal income Tax Return
(other than a group the common parent of which was IRGB) or (B) has any liability for the Taxes of
any Person (other than IRGB or any of its Subsidiaries) under Treas. Reg. §1.1502-6 (or any similar
provision of state, local or foreign law), or as a transferee or successor, by contract or
otherwise. Neither IRGB nor any of its Subsidiaries has been, within the past two years or
otherwise as part of a “plan (or series of related transactions)” (within the meaning of Section
355(e) of the Code) of which the Merger is also a part, or a “distributing corporation” or a
“controlled corporation” (within the meaning of Section 355(a)(1)(A) of the Code) in a distribution
of stock intended to qualify for tax-free treatment under Section 355 of the Code. No share of
IRGB Common Stock is owned by a Subsidiary of IRGB. IRGB is not and has not been a “United States
real property holding company” within the meaning of Section 897(c)(2) of the Code during the
applicable period specified in Section 897(c)(1)(A)(ii) of the Code. Neither IRGB, its
Subsidiaries nor any other Person on their behalf has executed or entered into any written
agreement with, or obtained or applied for any written consents or written clearances or any other
Tax rulings from, nor has there been any written agreement executed or entered into on behalf of
any of them with any Governmental Entity, relating to Taxes, including any private letter rulings
of the U.S. Internal Revenue Service (“IRS”) or comparable rulings of any Governmental Entity and
closing agreements pursuant to Section 7121 of the Code or any predecessor provision thereof or any
similar provision of any applicable law, which rulings or agreements would have a continuing effect
after the Effective Time. Neither IRGB nor any of its Subsidiaries has engaged in a “reportable
transaction,” as set forth in Treas. Reg. § 1.6011-4(b), or any transaction that is the same as
or substantially similar to one of the types of transactions that the IRS has determined to be a
tax avoidance transaction and identified by notice, regulation or other form of published guidance
as a “listed transaction,” as set forth in Treas. Reg. § 1.6011-4(b)(2). FNB has received
complete copies of (i) all federal, state, local and foreign income or franchise Tax Returns of
IRGB and its Subsidiaries relating to the taxable periods beginning January 1, 2004 or later and
(ii) any audit report issued within the last three years relating to any Taxes due from or with
respect to IRGB or its Subsidiaries. Neither IRGB, any of its Subsidiaries nor FNB (as a successor
to IRGB) will be required to include any item of material income in, or exclude any material item
of deduction from, taxable income for any taxable period (or portion thereof) ending after the
Closing Date as a result of any (i) change in method of accounting for a taxable period ending on
or prior to the Closing Date, (ii) installment sale or open transaction disposition made on or
prior to the Effective Time, (iii) prepaid amount received on or prior to the Closing Date or (iv)
deferred intercompany gain or any excess loss account of IRGB or any of its Subsidiaries for
periods or portions of periods described in Treasury Regulations under Section 1502 of the Code (or
any corresponding or similar provision of state, local or foreign law) for periods (or portions
thereof) ending on or before the Closing Date.

          (b) As used in this Agreement, the term “Tax” or “Taxes” means (i) all federal, state, local,
and foreign income, excise, gross receipts, gross income, ad valorem, profits, gains, property,
capital, sales, transfer, use, payroll, bank shares tax, employment,

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severance, withholding, duties, intangibles, franchise, backup withholding, inventory, capital
stock, license, employment, social security, unemployment, excise, stamp, occupation, and estimated
taxes, and other taxes, charges, levies or like assessments (ii) all interest, penalties, fines,
additions to tax or additional amounts imposed by any Governmental Entity in connection with any
item described in clause (i) and (iii) any transferee liability in respect of any items described
in clauses (i) or (ii) payable by reason of Contract, assumption, transferee liability, operation
of Law, Treas. Reg §1.1502-6(a) or any predecessor or successor thereof of any analogous or similar
provision under law or otherwise.

          (c) As used in this Agreement, the term “Tax Return” means any return, declaration, report,
claim for refund, or information return or statement relating to Taxes, including any schedule or
attachment thereto, and including any amendment thereof, supplied or required to be supplied to a
Governmental Entity and any amendment thereof including, where permitted or required, combined,
consolidated or unitary returns for any group of entities.

     3.11 Employee Benefits. For purposes of this Agreement, the following terms shall
have the following meaning:

     “Controlled Group Liability” means any and all liabilities (i) under Title IV of ERISA, (ii)
under Section 302 of ERISA, (iii) under Sections 412 and 4971 of the Code, and (iv) as a result of
a failure to comply with the continuation coverage requirements of Section 601 et seq. of ERISA
and Section 4980B of the Code other than such liabilities that arise solely out of, or relate
solely to, the IRGB Benefit Plans.

     “ERISA” means the Employee Retirement Income Security Act of 1974, as amended, and the
regulations promulgated thereunder.

     “ERISA Affiliate” means, with respect to any entity, trade or business, any other entity,
trade or business that is, or was at the relevant time, a member of a group described in Section
414(b), (c), (m) or (o) of the Code or Section 4001(b)(1) of ERISA that includes or included the
first entity, trade or business, or that is, or was at the relevant time, a member of the same
“controlled group” as the first entity, trade or business pursuant to Section 4001(a)(14) of ERISA.

     “Multiemployer Plan” means any “multiemployer plan” within the meaning of Section 4001(a)(3)
of ERISA.

     “IRGB Benefit Plan” means any material employee benefit plan, program, policy, practice, or
other arrangement providing benefits to any current or former employee, officer or director of IRGB
or any of its Subsidiaries or any beneficiary or dependent thereof that is sponsored or maintained
by IRGB or any of its Subsidiaries or to which IRGB or any of its Subsidiaries contributes or is
obligated to contribute, whether or not written, including

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without limitation any employee welfare benefit plan within the meaning of Section 3(1) of
ERISA, any employee pension benefit plan within the meaning of Section 3(2) of ERISA (whether or
not such plan is subject to ERISA), and any bonus, incentive, deferred compensation, vacation,
stock purchase, stock option, severance, employment, change of control or fringe benefit plan,
program or policy.

     “IRGB Employment Agreement” means a written contract, offer letter or agreement of IRGB or any
of its Subsidiaries with or addressed to any individual who is rendering or has rendered services
thereto as an employee pursuant to which IRGB or any of its Subsidiaries has any actual or
contingent liability or obligation to provide compensation and/or benefits in consideration for
past, present or future services.

     “IRGB Plan” means any IRGB Benefit Plan other than a Multiemployer Plan.

     “Withdrawal Liability” means liability to a Multiemployer Plan as a result of a complete or
partial withdrawal from such Multiemployer Plan, as those terms are defined in Part I of Subtitle E
of Title IV of ERISA.

          (a) Section 3.11(a) of the IRGB Disclosure Schedule includes a complete list of all material
IRGB Benefit Plans and all material IRGB Employment Agreements.

          (b) With respect to each IRGB Plan, IRGB has delivered or made available to FNB a true,
correct and complete copy of: (i) each writing constituting a part of such IRGB Plan, including
without limitation all plan documents, current employee communications, benefit schedules, trust
agreements, and insurance contracts and other funding vehicles; (ii) the most recent Annual Report
(Form 5500 Series) and accompanying schedule, if any; (iii) the current summary plan description
and any material modifications thereto, if any (in each case, whether or not required to be
furnished under ERISA); (iv) the most recent annual financial report, if any; (v) the most recent
actuarial report, if any; and (vi) the most recent determination letter from the Internal Revenue
Service (“the IRS”), if any. IRGB has delivered or made available to FNB a true, correct and
complete copy of each material IRGB Employment Agreement.

          (c) All material contributions required to be made to any IRGB Plan by applicable law or
regulation or by any plan document or other contractual undertaking, and all material premiums due
or payable with respect to insurance policies funding any IRGB Plan, for any period through the
date hereof have been timely made or paid in full or, to the extent not required to be made or paid
on or before the date hereof, have been fully reflected on the financial statements to the extent
required by GAAP. Each IRGB Benefit Plan that is an employee welfare benefit plan under Section
3(1) of ERISA either (i) is funded through an insurance company contract and is not a “welfare
benefit fund” within the meaning of Section 419 of the Code or (ii) is unfunded.

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          (d) With respect to each IRGB Plan, IRGB and its Subsidiaries have complied, and are now in
compliance, in all material respects, with all provisions of ERISA, the Code and all laws and
regulations applicable to such IRGB Plans. Each IRGB Plan has been administered in all material
respects in accordance with its terms. There is not now, nor do any circumstances exist that would
reasonably be expected to give rise to, any requirement for the posting of security with respect to
an IRGB Plan or the imposition of any material lien on the assets of IRGB or any of its
Subsidiaries under ERISA or the Code. Section 3.11(d) of the IRGB Disclosure Schedule identifies
each IRGB Plan that is intended to be a “qualified plan” within the meaning of Section 401(a) of
the Code (“IRGB Qualified Plans”). The IRS has issued a favorable determination letter with
respect to each IRGB Qualified Plan and the related trust that has not been revoked or IRGB is
entitled to rely on a favorable opinion issued by the IRS, and, to the knowledge of IRGB, there are
no existing circumstances and no events have occurred that would reasonably be expected to
adversely affect the qualified status of any IRGB Qualified Plan or the related trust. No trust
funding any IRGB Plan is intended to meet the requirements of Code Section 501(c)(9). To the
knowledge of IRGB, none of IRGB and its Subsidiaries nor any other person, including any fiduciary,
has engaged in any “prohibited transaction” (as defined in Section 4975 of the Code or Section 406
of ERISA), which would reasonably be expected to subject any of the IRGB Plans or their related
trusts, IRGB, any of its Subsidiaries or any person that IRGB or any of its Subsidiaries has an
obligation to indemnify, to any material Tax or penalty imposed under Section 4975 of the Code or
Section 502 of ERISA.

          (e) Except as set forth in Section 3.11(e) of the IRGB Disclosure Schedule with respect to
each IRGB Plan that is subject to Title IV or Section 302 of ERISA or Section 412 or 4971 of the
Code, (i) there does not exist any accumulated funding deficiency within the meaning of Section 412
of the Code or Section 302 of ERISA, whether or not waived, and, (ii) (A) the fair market value of
the assets of such IRGB Plan equals or exceeds the actuarial present value of all accrued benefits
under such IRGB Plan (whether or not vested) on a termination basis; (B) no reportable event within
the meaning of Section 4043(c) of ERISA for which the 30-day notice requirement has not been waived
has occurred; (C) all premiums, if any, to the Pension Benefit Guaranty Corporation (the “PBGC”)
have been timely paid in full; (D) no liability (other than for premiums to the PBGC) under Title
IV of ERISA has been or would reasonably be expected to be incurred by IRGB or any of its
Subsidiaries; and (E) the PBGC has not instituted proceedings to terminate any such IRGB Plan and,
to IRGB’s knowledge, no condition exists that makes it reasonably likely that such proceedings will
be instituted or which would reasonably be expected to constitute grounds under Section 4042 of
ERISA for the termination of, or the appointment of a trustee to administer, any such IRGB Plan,
except as would not have a Material Adverse Effect, individually or in the aggregate, in the case
of clauses (A), (B), (C), (D) and (E).

          (f) (i) No IRGB Benefit Plan is a Multiemployer Plan or a plan that has two or more
contributing sponsors at least two of whom are not under common control, within

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the meaning of Section 4063 of ERISA (a “Multiple Employer Plan”); (ii) none of IRGB and its
Subsidiaries nor any of their respective ERISA Affiliates has, at any time during the last six
years, contributed to or been obligated to contribute to any Multiemployer Plan or Multiple
Employer Plan; and (iii) none of IRGB and its Subsidiaries nor any of their respective ERISA
Affiliates has incurred, during the last six years, any Withdrawal Liability that has not been
satisfied in full. There does not now exist, nor do any circumstances exist that would reasonably
be likely to result in, any Controlled Group Liability that would be a liability of IRGB or any of
its Subsidiaries following the Effective Time, other than such liabilities that arise solely out
of, or relate solely to, the IRGB Benefit Plans. Without limiting the generality of the foregoing,
neither IRGB nor any of its Subsidiaries, nor, to IRGB’s knowledge, any of their respective ERISA
Affiliates, has engaged in any transaction described in Section 4069 or Section 4204 or 4212 of
ERISA.

          (g) Except as set forth in Section 3.11(g) of the IRGB Disclosure Schedule, IRGB and its
Subsidiaries have no liability for life, health, medical or other welfare benefits to former
employees or beneficiaries or dependents thereof, except for health continuation coverage as
required by Section 4980B of the Code, Part 6 of Title I of ERISA or applicable law and at no
expense to IRGB and its Subsidiaries.

          (h) Except as set forth on Section 3.11(h) of the IRGB Disclosure Schedule, neither the
execution nor the delivery of this Agreement nor the consummation of the transactions contemplated
by this Agreement will, either alone or in conjunction with any other event (whether contingent or
otherwise), (i) result in any payment or benefit becoming due or payable, or required to be
provided, to any director, employee or independent contractor of IRGB or any of its Subsidiaries,
(ii) increase the amount or value of any benefit or compensation otherwise payable or required to
be provided to any such director, employee or independent contractor, (iii) result in the
acceleration of the time of payment, vesting or funding of any such benefit or compensation or (iv)
result in any amount failing to be deductible by reason of Section 280G of the Code or would be
subject to an excise tax under Section 4999 of the Code or Section 409A of the Code.

          (i) No labor organization or group of employees of IRGB or any of its Subsidiaries 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, to IRGB’s
knowledge, threatened to be brought or filed, with the National Labor Relations Board. Each of
IRGB and its Subsidiaries is in material compliance with all applicable laws respecting employment
and employment practices, terms and conditions of employment, wages and hours and occupational
safety and health.

     3.12 Compliance with Applicable Law. IRGB and each of its Subsidiaries are not in
default in any material respect under any, applicable law, statute, order, rule, regulation, policy
or guideline of any Governmental Entity applicable to IRGB or any of its Subsidiaries (including
the Equal Credit Opportunity Act, the Fair Housing Act, the Community

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Reinvestment Act, the Home Mortgage Disclosure Act, the Uniting and Strengthening America by
Providing Appropriate Tools Required to Intercept and Obstruct Terrorist (USA Patriot) Act of 2001,
the Bank Secrecy Act and applicable limits on loans to one borrower), except where such
noncompliance or default is not reasonably likely to have, either individually or in the aggregate,
a Material Adverse Effect on IRGB and its Subsidiaries taken as a whole.

     3.13 Contracts. Except for matters that have not had and would not reasonably be
likely to have, individually or in the aggregate, a Material Adverse Effect on IRGB and its
Subsidiaries taken as a whole, (i) none of IRGB nor any of its Subsidiaries is (with or without the
lapse of time or the giving of notice, or both) in breach or default in any material respect under
any material contract, lease, license or other agreement or instrument, (ii) to the knowledge of
IRGB, none of the other parties to any such material contract, lease, license or other agreement or
instrument is (with or without the lapse of time or the giving of notice, or both) in breach or
default in any material respect thereunder and (iii) neither IRGB nor any of its Subsidiaries has
received any written notice of the intention of any party to terminate or cancel any such material
contract, lease, license or other agreement or instrument whether as a termination or cancellation
for convenience or for default of IRGB or any of its Subsidiaries.

     3.14 Agreements with Regulatory Agencies. Except to the extent disclosure hereunder
is precluded by applicable law, neither IRGB nor any of its Subsidiaries is subject to any
cease-and-desist or other 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 order or directive by, or has been ordered
to pay any civil money penalty by, or has been since January 1, 2005, a recipient of any
supervisory letter from, or since January 1, 2005, has adopted any policies, procedures or board
resolutions at the request or suggestion of any Regulatory Agency or other 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 ability to pay dividends, its credit or risk management
policies, its management or its business, other than those of general application that apply to
similarly situated financial holding companies or their Subsidiaries (each item in this sentence,
whether or not set forth in Section 3.11 of the IRGB Disclosure Schedule, an “IRGB Regulatory
Agreement”), nor has IRGB or any of its Subsidiaries been advised since January 1, 2005 by any
Regulatory Agency or other Governmental Entity that it is considering issuing, initiating,
ordering, or requesting any such IRGB Regulatory Agreement.

     3.15 Undisclosed Liabilities. Except for (i) those liabilities that are reflected or
reserved against on the consolidated balance sheet of IRGB as of December 31, 2006 (including any
notes thereto) (ii) liabilities incurred in connection with this Agreement and the transactions
contemplated hereby and (iii) liabilities incurred in the ordinary course of business consistent
with past practice since December 31, 2006, since December 31, 2006,

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neither IRGB nor any of its Subsidiaries has incurred any liability of any nature whatsoever
(whether absolute, accrued, contingent or otherwise and whether due or to become due) that has had
or is reasonably likely to have, either individually or in the aggregate, a Material Adverse Effect
on IRGB.

     3.16 Environmental Liability.

          (a) To IRGB’s Knowledge, (A) IRGB and its Subsidiaries are in material compliance with
applicable Environmental Laws; (B) no Contamination exceeding applicable cleanup standards or
remediation thresholds exists at real property, including buildings or other structures, currently
or formerly owned or operated by IRGB or any of its Subsidiaries, that reasonably could result in a
material Environmental Liability for IRGB or its Subsidiaries; (C) no Contamination exists at any
real property currently owned by a third party that reasonably could result in a material
Environmental Liability for IRGB or its Subsidiaries; (D) neither IRGB nor any of its Subsidiaries
has received any written notice, demand letter, or claim alleging any material violation of, or
liability under, any Environmental Law; (E) neither IRGB nor any of its Subsidiaries is subject to
any order, decree, injunction or other agreement with any Governmental Entity or any third party
under any Environmental Law that reasonably could result in a material Environmental Liability of
IRGB or its Subsidiaries; and (F) IRGB has set forth in Section 3.16 of the IRGB Disclosure
Schedule and made available to FNB copies of all environmental reports or studies, sampling data,
correspondence and filings in its possession relating to IRGB, its Subsidiaries and any currently
owned or operated real property of IRGB which were prepared in the last five years.

          (b) As used herein, (A) the term “Environmental Laws” means collectively, any and all laws,
ordinances, rules, regulations, directives, orders, authorizations, decrees, permits, or other
mandates, of a Governmental Entity relating to any Hazardous Substance, Contamination, protection
of the Environment or protection of human health and safety, including, without limitation, those
relating to emissions, discharges or releases or threatened emissions, discharges or releases to,
on, onto or into the environment of any Hazardous Substance; (B) the term “Hazardous Substance”
means any element, substance, compound or mixture whether solid, liquid or gaseous that is subject
to regulation by any Governmental Entity under any Environmental Law; or the presence or existence
of which gives rise to any Environmental Liability; (C) the term “Contamination” means the
emission, discharge or release of any Hazardous Substance to, on, onto or into the environment and
the effects of such emission, discharge or release, including the presence or existence of any such
Hazardous Substance; and (D) the term “Environmental Liability” means liabilities for response,
remedial or investigation costs, and any other expenses (including reasonable attorney an
consultant fees, laboratory costs and litigation costs) required under, or necessary to attain or
maintain compliance with, applicable Environmental Laws or relating to or arising from
Contamination or Hazardous Substances.

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     3.17 Real Property.

          (a) Each of IRGB and its Subsidiaries has good title free and clear of all Liens to all real
property owned by such entities (the “Owned Properties”), except for Liens that do not materially
detract from the present use of such real property.

          (b) A true and complete copy of each agreement pursuant to which IRGB or any of its
Subsidiaries leases any real property (such agreements, together with any amendments, modifications
and other supplements thereto, collectively, the “Leases”) has heretofore been made available to
FNB. Each Lease is valid, binding and enforceable against IRGB or its applicable Subsidiary in
accordance with its terms and is in full force and effect (except as may be limited by bankruptcy,
insolvency, moratorium, reorganization or similar laws affecting the rights of creditors generally
and the availability of equitable remedies). There is not under any such Lease any material
existing default by IRGB or any of its Subsidiaries or, to the knowledge of IRGB, any other party
thereto, or any event which with notice or lapse of time or both would constitute such a default.
The consummation of the transactions contemplated by this Agreement will not cause defaults under
the Leases, provided necessary consents disclosed in the IRGB Disclosure Schedule have been
obtained and are in effect, except for any such default which would not, individually or in the
aggregate, have a Material Adverse Effect on IRGB and its Subsidiaries taken as a whole.

          (c) The Owned Properties and the properties leased pursuant to the Leases (the “Leased
Properties”) constitute all of the real estate on which IRGB and its Subsidiaries maintain their
facilities or conduct their business as of the date of this Agreement, except for locations the
loss of which would not result in a Material Adverse Effect on IRGB and its Subsidiaries taken as a
whole.

          (d) A true and complete copy of each agreement pursuant to which IRGB or any of its
Subsidiaries leases real property to a third party (such agreements, together with any amendments,
modifications and other supplements thereto, collectively, the “Third Party Leases”) has heretofore
been made available to FNB. Each Third Party Lease is valid, binding and enforceable in accordance
with its terms and is in full force and effect (except as may be limited by bankruptcy, insolvency,
moratorium, reorganization or similar laws affecting the rights of creditors generally and the
availability of equitable remedies). To the knowledge of IRGB, there are no existing defaults by
the tenant under any Third Party Lease, or any event which with notice or lapse of time or both
which would constitute such a default and which individually or in the aggregate would have a
Material Adverse Effect on IRGB and its Subsidiaries taken as a whole.

     3.18 State Takeover Laws. IRGB has previously taken any and all action necessary to
render the provisions of the Pennsylvania anti-takeover statutes in Sections 2538 through 2588
inclusive of the PBCL that may be applicable to the Merger and the other transactions contemplated
by this Agreement inapplicable to FNB and its respective affiliates, and to the

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Merger, this Agreement and the transactions contemplated hereby. The Board of Directors of
IRGB has approved this Agreement and the transactions contemplated hereby as required to render
inapplicable to such Agreement and the transactions contemplated hereby any restrictive provisions,
including the provisions of Paragraph 9, of the IRGB Articles.

     3.19 Reorganization. As of the date of this Agreement, IRGB is not aware of any fact
or circumstance that could reasonably be expected to prevent the Merger from qualifying as a
“reorganization” within the meaning of Section 368(a) of the Code.

     3.20 Opinion. Prior to the execution of this Agreement, IRGB has received an opinion
from Keefe, Bruyette & Woods, Inc. to the effect that as of the date thereof and based upon and
subject to the matters set forth therein, the Merger Consideration is fair to the shareholders of
IRGB from a financial point of view. Such opinion has not been amended or rescinded as of the date
of this Agreement.

     3.21 Insurance. IRGB and its Subsidiaries are insured with reputable insurers against
such risks and in such amounts as are set forth in Section 3.21 of the IRGB Disclosure Schedule and
as its management reasonably has determined to be prudent in accordance with industry practices.

     3.22 Investment Securities. Except where failure to be true would not reasonably be
expected to have a Material Adverse Effect on IRGB, (a) each of IRGB and its Subsidiaries has good
title to all securities owned by it (except those securities sold under repurchase agreements
securing deposits, borrowings of federal funds or borrowings from the Federal Reserve Banks or the
Federal Home Loan Banks or held in any fiduciary or agency capacity), free and clear of any Liens,
except to the extent such securities are pledged in the ordinary course of business to secure
obligations of IRGB or its Subsidiaries, and such securities are valued on the books of IRGB in
accordance with GAAP in all material respects.

     3.23 Intellectual Property. IRGB and each of its Subsidiaries owns, or is licensed to
use (in each case, free and clear of any Liens), all Intellectual Property used in the conduct of
its business as currently conducted that is material to IRGB and its Subsidiaries, taken as a
whole. Except as would not reasonably be likely to have a Material Adverse Effect on IRGB, (i)
Intellectual Property used in the conduct of its business as currently conducted that is material
to IRGB and its Subsidiaries does not, to the knowledge of IRGB, infringe on or otherwise violate
the rights of any person and is in accordance with any applicable license pursuant to which IRGB or
any Subsidiary acquired the right to use any Intellectual Property; and (ii) neither IRGB nor any
of its Subsidiaries has received any written notice of any pending claim with respect to any
Intellectual Property used by IRGB and its Subsidiaries. For purposes of this Agreement,
“Intellectual Property” means registered trademarks, service marks, brand names, certification
marks, trade dress and other indications of origin, the goodwill associated with the foregoing and
registrations in the United States Patent and

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Trademark Office or in any similar office or agency of the United States or any state thereof;
all letters patent of the United States and all reissues and extensions thereof.

     3.24 Loans; Nonperforming and Classified Assets.

          (a) Except as set forth in Section 3.24 of the IRGB Disclosure Schedule, each Loan on the
books and records of IRGB and its Subsidiaries was made and has been serviced in all material
respects in accordance with their customary lending standards in the ordinary course of business,
is evidenced in all material respects by appropriate and sufficient documentation and, to the
knowledge of IRGB, constitutes the legal, valid and binding obligation of the obligor named
therein, subject to bankruptcy, insolvency, reorganization, moratorium, fraudulent transfer and
similar laws of general applicability relating to or affecting creditor’s rights or by general
equity principles.

          (b) IRGB has set forth in Section 3.24 of the IRGB Disclosure Schedule as to IRGB and each
IRGB Subsidiary as of the latest practicable date prior to the date of this Agreement: (A) any
written or, to IRGB’s knowledge, oral Loan under the terms of which the obligor is 90 or more days
delinquent in payment of principal or interest, or to IRGB’s knowledge, in default of any other
material provision thereof; (B) each Loan that has been classified as “substandard,” “doubtful,”
“loss” or “special mention” or words of similar import by IRGB, a IRGB Subsidiary or an applicable
regulatory authority; (C) a listing of the Other Real Estate Owned (“OREO”) acquired by foreclosure
or by deed-in-lieu thereof, including the book value thereof and (D) each Loan with any director,
executive officer or five percent or greater shareholder of IRGB or a IRGB Subsidiary, or to the
knowledge of IRGB, any Person controlling, controlled by or under common control with any of the
foregoing.

          (c) Except as set forth in Section 3.24 of the IRGB Disclosure Schedules, each Loan was on the
books and records of IRGB and its Subsidiaries prior to December 15, 2007.

     3.25 Fiduciary Accounts. IRGB and each of its Subsidiaries has properly administered
all accounts for which it acts as a fiduciary, including but not limited to accounts for which it
serves as a trustee, agent, custodian, personal representative, guardian, conservator or investment
advisor, in accordance with the terms of the governing documents and applicable laws and
regulations. Neither IRGB nor any of its Subsidiaries, nor any of their respective directors,
officers or employees, has committed any breach of trust to IRGB’s knowledge with respect to any
fiduciary account and the records for each such fiduciary account are true and correct and
accurately reflect the assets of such fiduciary account.

     3.26 Allowance For Loan Losses. IRGB Bank’s allowance for loan losses is sufficient
at the date of this Agreement for its reasonably anticipated loan losses, is in compliance with the
standards established by applicable Governmental Entities and GAAP and, to the knowledge of IRGB,
is adequate.

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ARTICLE 4

REPRESENTATIONS AND WARRANTIES OF FNB

     Except as disclosed in the disclosure schedule delivered by FNB to IRGB (the “FNB Disclosure
Schedule”), FNB hereby represents and warrants to IRGB as follows:

     4.1 Corporate Organization.

          (a) FNB is a corporation duly organized, validly existing and in good standing under the laws
of the State of Florida. FNB has the corporate power and authority and has all licenses, permits
and authorizations of applicable Governmental Entities required to own or lease all of its
properties and assets and to carry on its business as it is now being conducted, and is duly
licensed or qualified to do business in each jurisdiction in which the nature of the business
conducted by it or the character or location of the properties and assets owned or leased by it
makes such licensing or qualification necessary, except where such failure to be licensed or
qualified does not have a Material Adverse Effect upon FNB.

          (b) FNB is duly registered as a bank holding company and is a financial holding company under
the BHC Act. True and complete copies of the Articles of Incorporation (the “FNB Charter”) and
Bylaws of FNB (the “FNB Bylaws”), as in effect as of the date of this Agreement, have previously
been made available to IRGB.

          (c) Each FNB Subsidiary (i) is duly organized and validly existing under the laws of its
jurisdiction of organization, (ii) is duly qualified to do business and in good standing in all
jurisdictions (whether federal, state, local or foreign) where its ownership or leasing of property
or the conduct of its business requires it to be so qualified, and (iii) has all requisite
corporate power and authority, and has all licenses, permits and authorizations of applicable
Governmental Entities required, to own or lease its properties and assets and to carry on its
business as now conducted, except in each of (i) — (iii) as would not be reasonably likely to
have, either individually or in the aggregate, a Material Adverse Effect on FNB.

     4.2 Capitalization.

          (a) The authorized capital stock of FNB consists of 500,000,000 shares of FNB Common Stock, of
which, as of December 31, 2007 60,554,248 shares were issued and outstanding, and 20,000,000 shares
of preferred stock, $.01 par value (the “FNB Preferred Stock”), of which, as of the date hereof, no
shares were issued and outstanding. As of December 31, 2007 47,970 shares of FNB Common Stock were
held in FNB’s treasury. As of the date hereof, no shares of FNB Common Stock or FNB Preferred
Stock were reserved for issuance, except for 2,155,597 shares of FNB Common Stock reserved for
issuance upon exercise of options issued or available for issuance pursuant to employee and
director stock plans of FNB in effect as of the date of this Agreement (the “FNB Stock Plans”) and
53,000 shares of FNB Common Stock available for issuance upon conversion of outstanding

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convertible notes assumed by FNB from Legacy Bank. All of the issued and outstanding shares
of FNB Common Stock have been, and all shares of FNB Common Stock that may be issued pursuant to
the FNB Stock Plans will be, when issued in accordance with the terms thereof, duly authorized and
validly issued and are fully paid, nonassessable and free of preemptive rights, with no personal
liability attaching to the ownership thereof. Except pursuant to this Agreement and the FNB Stock
Plans, FNB is not bound by any outstanding subscriptions, options, warrants, calls, commitments or
agreements of any character calling for the purchase or issuance of any shares of FNB Common Stock
or any other equity securities of FNB or any securities representing the right to purchase or
otherwise receive any shares of FNB Common Stock. The shares of FNB Common Stock to be issued
pursuant to the Merger have been duly authorized and, when issued and delivered in accordance with
the terms of this Agreement, will have been validly issued, fully paid, nonassessable and free of
preemptive rights.

          (b) All of the issued and outstanding shares of capital stock or other equity ownership
interests of each Subsidiary of FNB are owned by FNB, directly or indirectly, free and clear of any
Liens, and all of such shares or equity ownership interests are duly authorized and validly issued
and are fully paid, nonassessable and free of preemptive rights. No such Subsidiary has or is
bound by any outstanding subscriptions, options, warrants, calls, commitments or agreements of any
character calling for the purchase or issuance of any shares of capital stock or any other equity
security of such Subsidiary or any securities representing the right to purchase or otherwise
receive any shares of capital stock or any other equity security of such Subsidiary.

     4.3 Authority; No Violation.

          (a) FNB has full corporate power and authority to execute and deliver this Agreement and to
consummate the transactions contemplated hereby. The execution and delivery of this Agreement and
the consummation of the transactions contemplated hereby have been duly and validly approved by the
Board of Directors of FNB. Except for the approval of this Agreement and the transactions
contemplated by this Agreement by the affirmative vote of a majority of the votes cast by all
holders of shares of FNB Common Stock at such meeting at which a quorum is present, and provided
that the total votes cast on the proposal represents over 50% of the shares of FNB Common Stock
entitled to vote on the proposal, no other corporate approvals on the part of FNB are necessary to
approve this Agreement. This Agreement has been duly and validly executed and delivered by FNB
and, assuming due authorization, execution and delivery by IRGB, constitutes the valid and binding
obligation of FNB, enforceable against FNB in accordance with its terms, except as may be limited
by bankruptcy, insolvency, moratorium, reorganization or similar laws affecting the rights of
creditors generally and the availability of equitable remedies.

          (b) Neither the execution and delivery of this Agreement by FNB, nor the consummation by FNB
of the transactions contemplated hereby, nor compliance by FNB

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with any of the terms or provisions of this Agreement, will (i) violate any provision of the
FNB Charter or the FNB Bylaws or (ii) assuming that the consents, approvals and filings referred to
in Section 4.4 are duly obtained and/or made and are in full force and effect, (A) violate any
statute, code, ordinance, rule, regulation, judgment, order, writ, decree or Injunction applicable
to FNB, any of its Subsidiaries or any of their respective properties or assets or (B) violate,
conflict with, result in a breach of any provision of, constitute a default (or an event which,
with notice or lapse of time, or both, would constitute a default) under, result in the termination
of or a right of termination or cancellation under, accelerate the performance required by, or
result in the creation of any Lien upon any of the respective properties or assets of FNB or any of
its Subsidiaries under, any of the terms, conditions or provisions of any note, bond, mortgage,
indenture, deed of trust, license, lease, agreement or other instrument or obligation to which FNB
or any of its Subsidiaries is a party, or by which they or any of their respective properties or
assets may be bound or affected, except for such violations, conflicts, breaches or defaults with
respect to clause (iii) that are not reasonably likely to have, either individually or in the
aggregate, a Material Adverse Effect on FNB.

     4.4 Consents and Approvals. Except for (i) the filing of applications and notices, as
applicable, with the Federal Reserve Board under the BHC Act and the Federal Reserve Act, as
amended, and approval of such applications and notices, and, in connection with the acquisition of
the Bank by FNB, the filing of applications and notices, as applicable, with the FDIC, the OCC or
the PA DOB and the Federal Reserve Board and approval of such applications and notice, (ii) the
Other Regulatory Approvals, (iii) the filing with the SEC of the Proxy Statement and the filing and
declaration of effectiveness of the Registration Statement, (iv) the filing of the Articles of
Merger with and the acceptance for record by the Secretary of State of the Commonwealth of
Pennsylvania pursuant to the PBCL and the filing of the Articles of Merger with and the acceptance
for record by the Secretary of State of the State of Florida pursuant to the FBCA, (v) any notices
or filings under the HSR Act, (vi) any consents, authorizations, approvals, filings or exemptions
in connection with compliance with the applicable provisions of federal and state securities laws
relating to the regulation of broker-dealers, investment advisers or transfer agents and the rules
and regulations thereunder and of any applicable industry SRO, and the rules of NASDAQ or the NYSE,
or that are required under consumer finance, mortgage banking and other similar laws, (vii) such
filings and approvals as are required to be made or obtained under the securities or “Blue Sky”
laws of various states in connection with the issuance of the shares of FNB Common Stock pursuant
to this Agreement and approval of listing such FNB Common Stock on the NYSE, (viii) the approval of
the issuance of FNB Common Stock in connection with the Merger and the transactions contemplated by
this Agreement by the requisite vote of the shareholders of FNB and (ix) filings, if any, required
as a result of the particular status of IRGB, no consents or approvals of or filings or
registrations with any Governmental Entity are necessary in connection with (A) the execution and
delivery by FNB of this Agreement and (B) the consummation by FNB of the Merger and the other
transactions contemplated by this Agreement.

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     4.5 Reports. FNB and each of its Subsidiaries have in all material respects timely
filed all reports, registrations and statements, together with any amendments required to be made
with respect thereto, that they were required to file since January 1, 2005 with the Regulatory
Agencies and with each other applicable Governmental Entity, including the SEC, and all other
reports and statements required to be filed by them since January 1, 2005, including any report or
statement required to be filed pursuant to the laws, rules or regulations of the United States, any
state, any foreign entity, or any Regulatory Agency, and have paid all fees and assessments due and
payable in connection therewith. Except for normal examinations conducted by a Regulatory Agency
in the ordinary course of the business of FNB and its Subsidiaries, no Regulatory Agency has
initiated or has pending any proceeding or, to the knowledge of FNB, investigation into the
business or operations of FNB or any of its Subsidiaries since January 1, 2005. There (i) is no
unresolved violation, criticism or exception by any Regulatory Agency with respect to any report or
statement relating to any examinations or inspections of FNB or any of its Subsidiaries, and (ii)
has been no formal or informal inquiries by, or disagreements or disputes with, any Regulatory
Agency with respect to the business, operations, policies or procedures of FNB since January 1,
2005.

     4.6 Financial Statements. FNB has previously made available to IRGB copies of the
consolidated balance sheet of FNB and its Subsidiaries as of December 31, 2004, 2005 and 2006, and
the related consolidated statements of income, changes in shareholders’ equity and cash flows for
the years then ended as reported in FNB’s Annual Report on Form 10-K for the fiscal year ended
December 31, 2006 (as amended prior to the date hereof, the “FNB 2006 10-K”) filed with the SEC
under the Exchange Act, accompanied by the audit report of Ernst & Young LLP, independent
registered public accountants with respect to FNB for the years ended December 31, 2004, 2005 and
2006. The December 31, 2006 consolidated balance sheet of FNB (including the related notes, where
applicable) fairly presents in all material respects the consolidated financial position of FNB and
its Subsidiaries as of the date thereof, and the other financial statements referred to in this
Section 4.6 (including the related notes, where applicable) fairly present in all material respects
the results of the consolidated operations, cash flows and changes in shareholders’ equity and
consolidated financial position of FNB and its Subsidiaries for the respective fiscal periods or as
of the respective dates therein set forth, subject to normal year-end audit adjustments in amounts
consistent with past experience in the case of unaudited statements; each of such statements
(including the related notes, where applicable) complies in all material respects with applicable
accounting requirements and with the published rules and regulations of the SEC with respect
thereto; and each of such statements (including the related notes, where applicable) has been
prepared in all material respects in accordance with GAAP consistently applied during the periods
involved, except, in each case, as indicated in such statements or in the notes thereto. The books
and records of FNB and its Subsidiaries have been, and are being, maintained in all material
respects in accordance with GAAP and any other applicable legal and accounting requirements and
reflect only actual transactions.

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     4.7 Broker’s Fees. Neither FNB nor any FNB Subsidiary nor any of their respective
officers or directors has employed any broker or finder or incurred any liability for any brokers
fees, commissions or finder’s fees in connection with the Merger or related transactions
contemplated by this Agreement, other than Sandler O’Neill & Partners, L.P., all of the fees and
expenses of which shall be the sole responsibility of FNB.

     4.8 Absence of Certain Changes or Events. Since December 31, 2006, except as publicly
disclosed in the Forms 10-K, 10-Q and 8-K comprising the FNB Reports (as defined in Section 4.12)
filed prior to the date of this Agreement (i) FNB and the FNB Subsidiaries have (except in
connection with the negotiation and execution and delivery of this Agreement) carried on their
respective businesses in all material respects in the ordinary course consistent with past practice
and (ii) there has not been any Material Adverse Effect with respect to FNB.

     4.9 Legal Proceedings.

          (a) There is no pending, or, to FNB’s knowledge, threatened, litigation, action, suit,
proceeding, investigation or arbitration by any Person or Governmental Entity that has had, or is
reasonably likely to have, a Material Adverse Effect on FNB and its Subsidiaries, taken as a whole,
in each case with respect to FNB or any of its Subsidiaries or any of their respective properties
or permits, licenses or authorizations.

          (b) There is no judgment, or regulatory restriction (other than those of general application
that apply to similarly situated financial or bank holding companies or their Subsidiaries) that
has been imposed upon FNB, any of its Subsidiaries or the assets of FNB or any of its Subsidiaries
that has had or is reasonably likely to have, a Material Adverse Effect on FNB or its Subsidiaries,
taken as a whole.

     4.10 Taxes and Tax Returns. Each of FNB and its Subsidiaries has duly and timely
filed (including all applicable extensions) all Tax Returns required to be filed by it on or prior
to the date of this Agreement (all such Tax Returns being accurate and complete in all material
respects), has timely paid or withheld and timely remitted all Taxes shown thereon as arising and
has duly and timely paid or withheld and timely remitted all Taxes (whether or not shown on any Tax
Return) that are due and payable or claimed to be due from it by a Governmental Entity other than
Taxes that (i) are being contested in good faith, which have not been finally determined, and (ii)
have been adequately reserved against in accordance with GAAP on FNB’s most recent consolidated
financial statements. All required estimated Tax payments sufficient to avoid any underpayment
penalties or interest have been made by or on behalf of each of FNB and its Subsidiaries. Neither
FNB nor any of its Subsidiaries has granted any extension or waiver of the limitation period for
the assessment or collection of Tax that remains in effect. There are no disputes, audits,
examinations or proceedings in progress or pending (including any notice received of an intent to
conduct an audit or examination), or claims asserted, for Taxes upon FNB or any of its
Subsidiaries. No claim has

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been made by a Governmental Entity in a jurisdiction where the FNB or any of its Subsidiaries
has not filed Tax Returns such that FNB or any of its Subsidiaries is or may be subject to taxation
by that jurisdiction. All deficiencies asserted or assessments made as a result of any
examinations by any Governmental Entity of the Tax Returns of, or including, FNB or any of its
Subsidiaries have been fully paid. No issue has been raised by a Governmental Entity in any prior
examination or audit of each of FNB and its Subsidiaries which, by application of the same or
similar principles, could reasonably be expected to result in a proposed deficiency in respect of
such Governmental Entity for any subsequent taxable period. There are no Liens for Taxes (other
than statutory liens for Taxes not yet due and payable) upon any of the assets of FNB or any of its
Subsidiaries. Neither FNB nor any of its Subsidiaries is a party to or is bound by any Tax
sharing, allocation or indemnification agreement or arrangement (other than such an agreement or
arrangement exclusively between or among FNB and its Subsidiaries). Neither FNB nor any of its
Subsidiaries (A) has been a member of an affiliated group filing a consolidated federal income Tax
Return (other than a group the common parent of which was FNB) or (B) has any liability for the
Taxes of any Person (other than FNB or any of its Subsidiaries) under Treas. Reg. §1.1502-6 (or any
similar provision of state, local or foreign law), or as a transferee or successor, by contract or
otherwise. Neither FNB nor any of its Subsidiaries has been, within the past two years or
otherwise as part of a “plan (or series of related transactions)” (within the meaning of Section
355(e) of the Code) of which the Merger is also a part, or a “distributing corporation” or a
“controlled corporation” (within the meaning of Section 355(a)(1)(A) of the Code) in a distribution
of stock intended to qualify for tax-free treatment under Section 355 of the Code. No share of FNB
Common Stock is owned by a Subsidiary of FNB. FNB is not and has not been a “United States real
property holding company” within the meaning of Section 897(c)(2) of the Code during the applicable
period specified in Section 897(c)(1)(A)(ii) of the Code. Neither FNB, its Subsidiaries nor any
other Person on their behalf has executed or entered into any written agreement with, or obtained
or applied for any written consents or written clearances or any other Tax rulings from, nor has
there been any written agreement executed or entered into on behalf of any of them with any Taxing
Authority, relating to Taxes, including any IRS private letter rulings or comparable rulings of any
Taxing Authority and closing agreements pursuant to Section 7121 of the Code or any predecessor
provision thereof or any similar provision of any applicable law, which rulings or agreements would
have a continuing effect after the Effective Time. Neither FNB nor any of its Subsidiaries has
engaged in a “reportable transaction,” as set forth in Treas. Reg. §1.6011-4(b), or any transaction
that is the same as or substantially similar to one of the types of transactions that the IRS has
determined to be a tax avoidance transaction and identified by notice, regulation or other form of
published guidance as a “listed transaction,” as set forth in Treas. Reg. §1.6011-4(b)(2). IRGB
has received complete copies of (i) all federal, state, local and foreign income or franchise Tax
Returns of FNB and its Subsidiaries relating to the taxable periods beginning January 1, 2005 or
later and (ii) any audit report issued within the last three years relating to any Taxes due from
or with respect to FNB or its Subsidiaries. Neither FNB, nor any of its Subsidiaries will be
required to include any item of material income in, or exclude

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any material item of deduction from, taxable income for any taxable period (or portion
thereof) ending after the Closing Date as a result of any (i) change in method of accounting for a
taxable period ending on or prior to the Closing Date, (ii) installment sale or open transaction
disposition made on or prior to the Effective Time, (iii) prepaid amount received on or prior to
the Closing Date or (iv) deferred intercompany gain or any excess loss account of FNB or any of its
Subsidiaries for periods or portions of periods described in Treasury Regulations under Section
1502 of the Code (or any corresponding or similar provision of state, local or foreign law) for
periods (or portions thereof) ending on or before the Closing Date.

     4.11 Employee Benefits. For purposes hereof, the following terms shall have the
following meaning:

     “FNB Benefit Plan” means any material employee benefit plan, program, policy, practice, or
other arrangement providing benefits to any current or former employee, officer or director of FNB
or any of its Subsidiaries or any beneficiary or dependent thereof that is sponsored or maintained
by FNB or any of its Subsidiaries or to which FNB or any of its Subsidiaries contributes or is
obligated to contribute, whether or not written, including without limitation any employee welfare
benefit plan within the meaning of Section 3(1) of ERISA, any employee pension benefit plan within
the meaning of Section 3(2) of ERISA (whether or not such plan is subject to ERISA) and any bonus,
incentive, deferred compensation, vacation, stock purchase, stock option, severance, employment,
change of control or fringe benefit plan, program or policy.

     “FNB Employment Agreement” means a written contract, offer letter or agreement of FNB or any
of its Subsidiaries with or addressed to any individual who is rendering or has rendered services
thereto as an employee pursuant to which FNB or any of its Subsidiaries has any actual or
contingent liability or obligation to provide compensation and/or benefits in consideration for
past, present or future services.

     “FNB Plan” means any FNB Benefit Plan other than a Multiemployer Plan.

          (a) Section 4.11(a) of the FNB Disclosure Schedule includes a complete list of all material
FNB Benefit Plans and all material FNB Employment Agreements.

          (b) With respect to each FNB Plan, FNB has delivered or made available to IRGB a true, correct
and complete copy of: (i) each writing constituting a part of such FNB Plan, including without
limitation all plan documents, employee communications, benefit schedules, trust agreements, and
insurance contracts and other funding vehicles; (ii) the most recent Annual Report (Form 5500
Series) and accompanying schedule, if any; (iii) the current summary plan description and any
material modifications thereto, if any (in each case, whether or not required to be furnished under
ERISA); (iv) the most recent annual financial report, if any; (v) the most recent actuarial report,
if any; and (vi) the most recent

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determination letter from the IRS, if any. FNB has delivered or made available to IRGB a
true, correct and complete copy of each material FNB Employment Agreement.

          (c) All material contributions required to be made to any FNB Plan by applicable law or
regulation or by any plan document or other contractual undertaking, and all material premiums due
or payable with respect to insurance policies funding any FNB Plan, for any period through the date
hereof have been timely made or paid in full or, to the extent not required to be made or paid on
or before the date hereof, have been fully reflected on the financial statements to the extent
required by GAAP. Each FNB Benefit Plan that is an employee welfare benefit plan under Section
3(1) of ERISA either (i) is funded through an insurance company contract and is not a “welfare
benefit fund” within the meaning of Section 419 of the Code or (ii) is unfunded.

          (d) With respect to each FNB Plan, FNB and its Subsidiaries have complied, and are now in
compliance, in all material respects, with all provisions of ERISA, the Code and all laws and
regulations applicable to such FNB Plans. Each FNB Plan has been administered in all material
respects in accordance with its terms. There is not now, nor do any circumstances exist that would
reasonably be expected to give rise to, any requirement for the posting of security with respect to
a FNB Plan or the imposition of any material lien on the assets of FNB or any of its Subsidiaries
under ERISA or the Code. Section 4.11(d) of the FNB Disclosure Schedule identifies each FNB Plan
that is intended to be a “qualified plan” within the meaning of Section 401(a) of the Code (“FNB
Qualified Plans”). The IRS has issued a favorable determination letter with respect to each
Qualified Plan and the related trust that has not been revoked or FNB is entitled to rely on a
favorable opinion issued by the IRS, and, to the knowledge of FNB, there are no existing
circumstances and no events have occurred that would reasonably be expected to adversely affect the
qualified status of any FNB Qualified Plan or the related trust. No trust funding any FNB Plan is
intended to meet the requirements of Code Section 501(c)(9). To the knowledge of FNB, none of FNB
and its Subsidiaries nor any other person, including any fiduciary, has engaged in any “prohibited
transaction” (as defined in Section 4975 of the Code or Section 406 of ERISA), which would
reasonably be expected to subject any of the FNB Plans or their related trusts, FNB, any of its
Subsidiaries or any person that FNB or any of its Subsidiaries has an obligation to indemnify, to
any material Tax or penalty imposed under Section 4975 of the Code or Section 502 of ERISA.

          (e) With respect to each FNB Plan that is subject to Title IV or Section 302 of ERISA or
Section 412 or 4971 of the Code, (i) there does not exist any accumulated funding deficiency within
the meaning of Section 412 of the Code or Section 302 of ERISA, whether or not waived, and, (ii)
except as would not have, individually or in the aggregate, a Material Adverse Effect: (A) the fair
market value of the assets of such FNB Plan equals or exceeds the actuarial present value of all
accrued benefits under such FNB Plan (whether or not vested) on a termination basis; (B) no
reportable event within the meaning of Section 4043(c) of

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ERISA for which the 30-day notice requirement has not been waived has occurred; (C) all
premiums to the PBGC have been timely paid in full; (D) no liability (other than for premiums to
the PBGC) under Title IV of ERISA has been or would reasonably be expected to be incurred by FNB or
any of its Subsidiaries; and (E) the PBGC has not instituted proceedings to terminate any such FNB
Plan and, to FNB’s knowledge, no condition exists that presents a risk that such proceedings will
be instituted or which would reasonably be expected to constitute grounds under Section 4042 of
ERISA for the termination of, or the appointment of a trustee to administer, any such FNB Plan.

          (f) (i) No FNB Benefit Plan is a Multiemployer Plan or a Multiple Employer Plan; (ii) none of
FNB and its Subsidiaries nor any of their respective ERISA Affiliates has, at any time during the
last six years, contributed to or been obligated to contribute to any Multiemployer Plan or
Multiple Employer Plan; and (iii) none of FNB and its Subsidiaries nor any of their respective
ERISA Affiliates has incurred, during the last six years, any Withdrawal Liability that has not
been satisfied in full. There does not now exist, nor do any circumstances exist that would
reasonably be expected to result in, any Controlled Group Liability that would be a liability of
FNB or any of its Subsidiaries following the Effective Time, other than such liabilities that arise
solely out of, or relate solely to, the FNB Benefit Plans. Without limiting the generality of the
foregoing, neither FNB nor any of its Subsidiaries, nor, to FNB’s knowledge, any of their
respective ERISA Affiliates, has engaged in any transaction described in Section 4069 or Section
4204 or 4212 of ERISA.

          (g) FNB and its Subsidiaries have no liability for life, health, medical or other welfare
benefits to former employees or beneficiaries or dependents thereof, except for health continuation
coverage as required by Section 4980B of the Code, Part 6 of Title I of ERISA or applicable law and
at no expense to FNB and its Subsidiaries.

          (h) Neither the execution nor the delivery of this Agreement nor the consummation of the
transactions contemplated by this Agreement will, either alone or in conjunction with any other
event (whether contingent or otherwise), (i) result in any payment or benefit becoming due or
payable, or required to be provided, to any director, employee or independent contractor of FNB or
any of its Subsidiaries, (ii) increase the amount or value of any benefit or compensation otherwise
payable or required to be provided to any such director, employee or independent contractor, (iii)
result in the acceleration of the time of payment, vesting or funding of any such benefit or
compensation or (iv) result in any amount failing to be deductible by reason of Section 280G of the
Code or would be subject to an excise tax under Section 4999 of the Code or Section 409A of the
Code.

          (i) No labor organization or group of employees of FNB or any of its Subsidiaries 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, to FNB’s
knowledge, threatened to be brought or filed, with the National Labor Relations Board or any other
labor relations tribunal or authority. Each of

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FNB and its Subsidiaries is in material compliance with all applicable laws and collective
bargaining agreements respecting employment and employment practices, terms and conditions of
employment, wages and hours and occupational safety and health.

     4.12 SEC Reports. FNB has previously made available to IRGB an accurate and complete
copy of each final registration statement, prospectus, report, schedule and definitive proxy
statement filed since January 1, 2005 by FNB with the SEC pursuant to the Securities Act or the
Exchange Act (the “FNB Reports”) and prior to the date of this Agreement, as of the date of such
FNB Report, contained any untrue statement of a material fact or omitted to state any material fact
required to be stated therein or necessary in order to make the statements made therein, in light
of the circumstances in which they were made, not misleading, except that information as of a later
date (but before the date of this Agreement) shall be deemed to modify information as of an earlier
date. Since January 1, 2005, as of their respective dates, all FNB Reports filed under the
Securities Act and the Exchange Act complied as to form in all material respects with the published
rules and regulations of the SEC with respect thereto.

     4.13 Compliance with Applicable Law. FNB and each of its Subsidiaries are not in
default in any material respect under any applicable law, statute, order, rule, regulation, policy
or guideline of any Governmental Entity applicable to FNB or any of its Subsidiaries (including 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 Terrorist (USA Patriot) Act of 2001, the Bank Secrecy Act and
applicable limits on loans to one borrower), except where such noncompliance or default is not
reasonably likely to, either individually or in the aggregate, have a Material Adverse Effect on
FNB and its Subsidiaries, taken as a whole.

     4.14 Contracts. Except for matters that have not had and would not reasonably be
likely to have, individually or in the aggregate, a Material Adverse Effect on FNB and its
Subsidiaries taken as a whole, (i) none of FNB nor any of its Subsidiaries is (with or without the
lapse of time or the giving of notice, or both) in breach or default in any material respect under
any material contract, lease, license or other agreement or instrument, (ii) to the knowledge of
FNB, none of the other parties to any such material contract, lease, license or other agreement or
instrument is (with or without the lapse of time or the giving of notice, or both) in breach or
default in any material respect thereunder and (iii) neither FNB nor any of its Subsidiaries has
received any written notice of the intention of any party to terminate or cancel any such material
contract, lease, license or other agreement or instrument whether as a termination or cancellation
for convenience or for default of FNB or any of its Subsidiaries.

     4.15 Agreements with Regulatory Agencies. Neither FNB nor any of its Subsidiaries is
subject to any cease-and-desist or other order or enforcement action issued by, or is a party to
any written agreement, consent agreement or memorandum of understanding with, or is a

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party to any commitment letter or similar undertaking to, or is subject to any order or
directive by, or has been since January 1, 2005, a recipient of any supervisory letter from, or has
been ordered to pay any civil money penalty by, or since January 1, 2005, has adopted any policies,
procedures or board resolutions at the request or suggestion of any Regulatory Agency or other
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 ability to pay dividends, its
credit or risk management policies, its management or its business, other than those of general
application that apply to similarly situated financial holding companies or their Subsidiaries
(each item in this sentence, whether or not set forth in the FNB Disclosure Schedule, a “FNB
Regulatory Agreement”), nor has FNB or any of its Subsidiaries been advised since January 1, 2005,
by any Regulatory Agency or other Governmental Entity that it is considering issuing, initiating,
ordering or requesting any such FNB Regulatory Agreement. Each bank Subsidiary of FNB has at least
a “satisfactory” rating under the U.S. Community Reinvestment Act.

     4.16 Undisclosed Liabilities. Except for (i) those liabilities that are reflected or
reserved against on the consolidated balance sheet of FNB included in FNB’s Quarterly Report on
Form 10-Q for the fiscal quarter ended September 30, 2007 (the “FNB 10-Q”) (including any notes
thereto), (ii) liabilities incurred in connection with this Agreement and the transactions
contemplated thereby and (iii) liabilities incurred in the ordinary course of business consistent
with past practice since September 30, 2007, since September 30, 2007, neither FNB nor any of its
Subsidiaries has incurred any liability of any nature whatsoever (whether absolute, accrued,
contingent or otherwise and whether due or to become due) that, either individually or in the
aggregate, has had or is reasonably likely to have, a Material Adverse Effect on FNB.

     4.17 Environmental Liability.

          (a) To FNB’s Knowledge, (A) FNB and its Subsidiaries are in material compliance with
applicable Environmental Laws; (B) no Contamination exceeding applicable cleanup standards or
remediation thresholds exists at real property, including buildings or other structures, currently
or formerly owned or operated by FNB or any of its Subsidiaries, that reasonably could result in a
material Environmental Liability for FNB or its Subsidiaries; (C) no Contamination exists at any
real property currently owned by a third party that reasonably could result in a material
Environmental Liability for FNB or its Subsidiaries; (D) neither FNB nor any of its Subsidiaries
has received any notice, demand letter, claim or request for information alleging any material
violation of, or liability under, any Environmental Law; (E) neither FNB nor any of its
Subsidiaries is subject to any order, decree, injunction or other agreement with any Governmental
Entity or any third party under any Environmental Law that reasonably could result in a material
Environmental Liability of FNB or its Subsidiaries; (F) FNB has set forth in the FNB Disclosure
Schedule and made available to IRGB copies of all environmental reports or studies, sampling data,

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correspondence and filings in its possession or relating to FNB, its Subsidiaries and any
currently owned or operated property of FNB which were prepared in the last five years.

          (b) There are no legal, administrative, arbitral or other proceedings, claims, actions, causes
of action, private environmental investigations or remediation activities or governmental
investigations of any nature seeking to impose, or that are reasonably likely to result in the
imposition, on FNB of any liability or obligation arising under common law or under any local,
state or federal environmental statute, regulation or ordinance including the Comprehensive
Environmental Response, Compensation and Liability Act of 1980, as amended, pending or threatened
against FNB, which liability or obligation is reasonably likely to have, either individually or in
the aggregate, a Material Adverse Effect on FNB. To the knowledge of FNB, there is no reasonable
basis for any such proceeding, claim, action or governmental investigation that would impose any
liability or obligation that would be reasonably likely to have, individually or in the aggregate,
a Material Adverse Effect on FNB. FNB is not subject to any agreement, order, judgment, decree,
letter or memorandum by or with any Governmental Entity or third party imposing any liability or
obligation with respect to the foregoing that is reasonably likely to have, either individually or
in the aggregate, a Material Adverse Effect on FNB.

     4.18 Reorganization. As of the date of this Agreement, FNB is not aware of any fact
or circumstance that could reasonably be expected to prevent the Merger from qualifying as a
“reorganization” within the meaning of Section 368(a) of the Code.

     4.19 Loans; Nonperforming and Classified Assets.

          (a) Except as set forth in Section 4.19 of the FNB Disclosure Schedule, each Loan on the books
and records of FNB and its Subsidiaries was made and has been serviced in all material respects in
accordance with their customary lending standards in the ordinary course of business, is evidenced
in all material respects by appropriate and sufficient documentation and, to the knowledge of FNB,
constitutes the legal, valid and binding obligation of the obligor named therein, subject to
bankruptcy, insolvency, reorganization, moratorium, fraudulent transfer and similar laws of general
applicability relating to or affecting creditor’s rights or by general equity principles.

          (b) FNB has set forth in Section 4.19 of the FNB Disclosure Schedule as to FNB and each FNB
Subsidiary as of the latest practicable date prior to the date of this Agreement: (A) any written
or, to FNB’s knowledge, oral Loan under the terms of which the obligor is 90 or more days
delinquent in payment of principal or interest, or to FNB’s knowledge, in default of any other
material provision thereof; (B) each Loan that has been classified as “substandard,” “doubtful,”
“loss” or “special mention” or words of similar import by FNB, a FNB Subsidiary or an applicable
regulatory authority; (C) a listing of the other real estate owned (“OREO”) acquired by foreclosure
or by deed-in-lieu thereof, including the book value thereof and (D) each Loan with any director,
executive officer or five percent or

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greater shareholder of FNB or a FNB Subsidiary, or to the knowledge of FNB, any Person
controlling, controlled by or under common control with any of the foregoing.

     4.20 Fiduciary Accounts. FNB and each of its Subsidiaries has properly administered
all accounts for which it acts as a fiduciary, including but not limited to accounts for which it
serves as a trustee, agent, custodian, personal representative, guardian, conservator or investment
advisor, in accordance with the terms of the governing documents and applicable laws and
regulations. Neither FNB nor any of its Subsidiaries, nor any of their respective directors,
officers or employees, has committed any breach of trust to FNB’s knowledge with respect to any
fiduciary account and the records for each such fiduciary account are true and correct and
accurately reflect the assets of such fiduciary account.

     4.21 Allowance for Loan Losses. FNB Bank’s allowance for loan losses is sufficient at
the date of this Agreement for its reasonably anticipated loan losses, is in compliance with the
standards established by applicable Governmental Entities and GAAP and, to the knowledge of FNB, is
adequate.

ARTICLE 5

COVENANTS RELATING TO CONDUCT OF BUSINESS

     5.1 Conduct of Businesses Prior to the Effective Time.

          (a) During the period from the date of this Agreement to the Effective Time, except as
expressly contemplated or permitted by this Agreement, each of FNB and IRGB shall, and shall cause
each of its respective Subsidiaries to, (i) conduct its business in the ordinary course in all
material respects, (ii) use reasonable best efforts to maintain and preserve intact its business
organization, employees and advantageous business relationships and retain the services of its key
officers and key employees and (iii) take no action that would reasonably be expected to prevent or
materially impede or delay the obtaining of, or materially adversely affect the ability of the
parties expeditiously to obtain, any necessary approvals of any Regulatory Agency, Governmental
Entity or any other person or entity required for the transactions contemplated hereby or to
perform its covenants and agreements under this Agreement or to consummate the transactions
contemplated hereby or thereby.

          (b) IRGB agrees that between the date hereof and the Effective Time, the materials presented
at the meetings of the Loan Committee of IRGB’s Board of Directors shall be provided to FNB within
three business days after each meeting and IRGB shall provide the minutes of each meeting to FNB
within five days after such meeting.

     5.2 IRGB Forbearances. During the period from the date of this Agreement to the
Effective Time, except as set forth in Section 5.2 of the IRGB Disclosure Schedule and except as
expressly contemplated or permitted by this Agreement, IRGB shall not, and shall not

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permit any of its Subsidiaries to, without the prior written consent of FNB, which shall not
be unreasonably withheld:

          (a) (i) other than dividends and distributions by a direct or indirect Subsidiary of IRGB to
IRGB or any direct or indirect wholly owned Subsidiary of IRGB, declare, set aside or pay any
dividends on, make any other distributions in respect of, or enter into any agreement with respect
to the voting of, any of its capital stock (except for regular quarterly cash dividends with
customary record dates and payment dates and not to exceed $0.30 per share on IRGB Common Stock),
(ii) split, combine or reclassify any of its capital stock or issue or authorize the issuance of
any other securities in respect of, in lieu of, or in substitution for, shares of its capital
stock, except upon the exercise of IRGB Stock Options that are outstanding or are required by an
existing contract, plan, arrangement or policy, as of the date hereof in accordance with their
present terms or (iii) purchase, redeem or otherwise acquire any shares of capital stock or other
securities of IRGB or any of its Subsidiaries, or any rights, warrants or options to acquire any
such shares or other securities (other than the issuance of IRGB Common Stock upon the exercise of
IRGB Stock Options that are outstanding as of the date hereof in accordance with their present
terms, including the withholding of shares of IRGB Common Stock to satisfy the exercise price or
Tax withholding);

          (b) grant any stock options, restricted stock units or other equity-based award with respect
to shares of IRGB Common Stock under any of the IRGB Stock Plans, or otherwise, except as required
by an existing contract, plan, arrangement or policy, or grant any individual, corporation or other
entity any right to acquire any shares of its capital stock; or issue any additional shares of
capital stock or other securities (other than the issuance of IRGB Common Stock upon the exercise
of IRGB Stock Options;

          (c) amend the IRGB Articles, IRGB Bylaws or other comparable organizational documents;

          (d) (i) acquire or agree to acquire by merging or consolidating with, or by purchasing any
assets or any equity securities of, or by any other manner, any business or any Person, or
otherwise acquire or agree to acquire any assets except inventory or other similar assets in the
ordinary course of business consistent with past practice or (ii) open, acquire, close or sell any
branches;

          (e) sell, lease, license, mortgage or otherwise encumber or subject to any Lien, or otherwise
dispose of any of its properties or assets other than securitizations and other transactions in the
ordinary course of business consistent with past practice;

          (f) except for borrowings having a maturity of not more than 30 days under existing credit
facilities (or renewals, extensions or replacements therefor that do not increase the aggregate
amount available thereunder and that do not provide for any termination fees

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or penalties, prohibit pre-payments or provide for any pre-payment penalties, or contain any
like provisions limiting or otherwise affecting the ability of IRGB or its applicable Subsidiaries
or successors from terminating or pre-paying such facilities, or contain financial terms less
advantageous than existing credit facilities, and as they may be so renewed, extended or replaced
(“Credit Facilities”) that are incurred in the ordinary course of business consistent with past
practice, incur any indebtedness for borrowed money or issue any debt securities or assume,
guarantee or endorse, or otherwise become responsible for the obligations of any Person (other than
IRGB or any wholly owned Subsidiary thereof), or, other than in the ordinary course of business
consistent with past practice, make any loans, advances or capital contributions to, or investments
in, any Person other than its wholly owned Subsidiaries and as a result of ordinary advances and
reimbursements to employees and endorsements of banking instruments;

          (g) change in any material respect its accounting methods, except as may be necessary and
appropriate to confirm the changes in tax laws requirements, changes in GAAP, regulatory accounting
principles or as required by IRGB’s independent auditors or its Regulatory Agencies;

          (h) change in any material respects its underwriting, operating, investment or risk management
or other similar policies of IRGB or any of its Subsidiaries except as required by applicable law
or policies imposed by any Regulatory Agency or any Governmental Entity;

          (i) make, change or revoke any material Tax election, file any material amended Tax Return,
enter into any closing agreement with respect to a material amount of Taxes, settle any material
Tax claim or assessment or surrender any right to claim a refund of a material amount of Taxes;

          (j) other than in the ordinary course of business consistent with past practice, terminate or
waive any material provision of any material agreement, contract or obligation (collectively,
“Contracts”) other than normal renewals of Contracts without materially adverse changes, additions
or deletions of terms (provided that Contracts under Section 5.1(s) shall be subject to that
subsection rather than this clause), or enter into or renew any agreement or contract or other
binding obligation of IRGB or its Subsidiaries containing (i) any restriction on the ability of
IRGB and its Subsidiaries, or, after the Merger, FNB and its Subsidiaries, to conduct its business
as it is presently being conducted or currently contemplated to be conducted after the Merger or
(ii) any restriction on IRGB or its Subsidiaries, or, after the Merger, FNB and its Subsidiaries,
in engaging in any type of activity or business;

          (k) incur any capital expenditures in excess of $20,000 individually or $50,000 in the
aggregate;

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          (l) except as required by agreements or instruments in effect on the date hereof, alter in any
material respect, or enter into any commitment to alter in any material respect, any material
interest in any corporation, association, joint venture, partnership or business entity in which
IRGB directly or indirectly holds any equity or ownership interest on the date hereof (other than
any interest arising from any foreclosure, settlement in lieu of foreclosure or troubled loan or
debt restructuring in the ordinary course of business consistent with past practice);

          (m) agree or consent to any material agreement or material modifications of existing
agreements with any Regulatory Authority or Governmental Entity in respect of the operations of its
business, except as required by law;

          (n) pay, discharge, settle or compromise any claim, action, litigation, arbitration, suit,
investigation or proceeding, other than any such payment, discharge, settlement or compromise in
the ordinary course of business consistent with past practice that involves solely money damages in
an amount not in excess of $25,000 individually or $50,000 in the aggregate;

          (o) issue any broadly distributed communication of a general nature to employees (including
general communications relating to benefits and compensation) or customers without the prior
approval of FNB (which will not be unreasonably delayed or withheld), except for communications in
the ordinary course of business that do not relate to the Merger or other transactions contemplated
hereby;

          (p) take any action, or knowingly fail to take any action, which action or failure to act
would be reasonably expected to prevent the Merger from qualifying as a reorganization within the
meaning of Section 368(a) of the Code;

          (q) take any action that would materially impede or delay the ability of the parties to obtain
any necessary approvals of any Regulatory Agency or other Governmental Entity required for the
transactions contemplated hereby;

          (r) take any action that is intended or is reasonably likely to result in any of its
representations or warranties set forth in this Agreement being or becoming untrue in any material
respect at any time prior to the Effective Time, or in any of the conditions to the Merger set
forth in Article VII not being satisfied or in a violation of any provision of this Agreement,
except, in every case, as may be required by applicable law;

          (s) make, renew or otherwise modify any loan, loan commitment, letter of credit or other
extension of credit (individually, a “Loan” and collectively, “Loans”) to any Person if the Loan is
an existing credit on the books of IRGB and classified as “substandard,” “doubtful” or “loss” or
such Loan is in an amount in excess of $150,000 and classified as “special mention” without the
approval of FNB, or make, renew or otherwise modify any

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Loan or Loans if immediately after making an unsecured Loan or Loans, such Person would be
indebted to IRGB Bank in an aggregate amount in excess of $200,000 on an unsecured basis or
undersecured, or make any fully secured Loan or Loans to any Person (except for any Loan secured by
a first mortgage on single family owner-occupied real estate) if, immediately after making a
secured Loan, such Person would be indebted to IRGB Bank in an aggregate amount in excess of
$1,500,000 or, without approval of FNB, shall not make, renew or otherwise modify any Loan or Loans
secured by an owner-occupied 1-4 single-family residence with a principal balance in excess of
$500,000 or in any event if such Loan does not conform with IRGB Bank’s Credit Policy Manual if, in
the case of any of the foregoing types of Loan or Loans, FNB shall object thereto within three
business days after receipt of notice of such proposed Loan, and the failure to provide a written
objection within three business days after receipt of notice of such proposed Loan from IRGB Bank
shall be deemed as the approval of FNB to make such Loan or Loans;

          (t) enter into or amend or renew any employment, consulting, severance or similar agreements
or arrangements with any director, officer or employee of IRGB or its Subsidiaries or grant any
salary or wage increase or increase any employee benefit, including discretionary or other
incentive or bonus payments, except in accordance with the terms of any applicable IRGB incentive
plan, make any grants of awards to newly hired employees or accelerate the vesting of any unvested
stock options, except:

               (i) for normal increases in compensation and bonuses to employees in the ordinary course of
business consistent with past practice, provided that no such increases shall result in an annual
aggregate adjustment in compensation or bonus of more than 3.5%, provided, however, that no
increase for any individual shall result in an annual adjustment in compensation or bonus of more
than 5%, and provided, further, that such provisions shall not apply where required by contract or
applicable law or are agreed to by IRGB and FNB;

               (ii) for other changes that are required by applicable law or are advisable in order to comply
with Section 409A of the Code, upon prior written notice to FNB;

               (iii) to pay the amounts or to provide payments under plans and/or commitments set forth in
the IRGB Disclosure Schedule;

               (iv) for retention bonuses to such persons and in such amounts as are mutually agreed by FNB
and IRGB, provided, however, that FNB shall provide a retention pool in the aggregate amount of
$150,000, which shall be allocated to employees of IRGB and IRGB Bank at the discretion of Karen
Joyce after consultation with FNB; or

               (v) severance payments pursuant to the severance agreements or employment agreements that are
set forth in Section 5.2 of the IRGB Disclosure Schedule.

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          (u) Hire any person as an employee of IRGB or any of its Subsidiaries or promote any employee,
except (i) to satisfy contractual obligations existing as of the date hereof and set forth in
Section 5.2 of the IRGB Disclosure Schedule, or (ii) to fill any vacancies existing as of the date
hereof and described in Section 5.2 of the IRGB Disclosure Schedule or (iii) to fill any vacancies
arising after the date hereof at a comparable level of compensation with persons whose employment
is terminable at the will of IRGB or a Subsidiary of IRGB, as applicable, provided, however, that
such total compensation for any one employee may not exceed $40,000; or

          (v) agree to take, make any commitment to take, or adopt any resolutions of its Board of
Directors in support of, any of the actions prohibited by this Section 5.2.

     5.3 FNB Forbearances. During the period from the date of this Agreement to the
Effective Time, except as expressly contemplated or permitted by this Agreement, FNB shall not, and
shall not permit any of its Subsidiaries to, without the prior written consent of IRGB:

          (a) amend, repeal or otherwise modify any provision of the FNB Charter or the FNB Bylaws other
than those that would not be adverse to IRGB or its shareholders or those that would not impede
FNB’s ability to consummate the transactions contemplated hereby;

          (b) take any action, or knowingly fail to take any action, which action or failure to act
would be reasonably expected to prevent the Merger from qualifying as a reorganization within the
meaning of Section 368(a) of the Code;

          (c) take any action that is intended or is reasonably likely to result in any of its
representations or warranties set forth in this Agreement being or becoming untrue in any material
respect at any time prior to the Effective Time, or in any of the conditions to the Merger set
forth in Article VII not being satisfied or in a violation of any provision of this Agreement,
except, in every case, as may be required by applicable law;

          (d) make any material investment either by purchase of stock or securities, contributions to
capital, property transfers or purchase of any property or assets of any other individual,
corporation or other entity, in any case to the extent such action would be reasonably expected to
prevent, or materially impede or delay, the consummation of the transactions contemplated by this
Agreement;

          (e) take any action that would materially impede or delay the ability of the parties to obtain
any necessary approvals of any Regulatory Agency or other Governmental Entity required for the
transactions contemplated hereby; or

          (f) agree to take, make any commitment to take, or adopt any resolutions of its board of
directors in support of, any of the actions prohibited by this Section 5.3.

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     5.4 Voting Agreements. IRGB shall deliver within 30 days after the date of this
Agreement the executed Voting Agreement from each member of the IRGB Board of Directors.

ARTICLE
6

ADDITIONAL AGREEMENTS

     6.1 Regulatory Matters.

          (a) FNB agrees to prepare and file, as soon as practicable, the Registration Statement with
the SEC in connection with the issuance of FNB Common Stock in the Merger including the Proxy
Statement and prospectus and other proxy solicitation materials of IRGB constituting a part thereof
and all related documents. IRGB shall prepare and furnish to FNB such information relating to it
and its directors, officers and shareholders as may be reasonably required in connection with the
above referenced documents based on its knowledge of and access to the information required for
said documents, and IRGB, and its legal, financial and accounting advisors, shall have the right to
review in advance and approve, which approval shall not be unreasonably withheld such Registration
Statement prior to its filing. IRGB agrees to cooperate with FNB and FNB’s counsel and accountants
in requesting and obtaining appropriate opinions, consents and letters from its financial advisor
and independent auditor in connection with the Registration Statement and the Proxy Statement. As
long as IRGB has cooperated as described above, FNB agrees to file, or cause to be filed, the
Registration Statement and the Proxy Statement with the SEC as promptly as reasonably practicable.
Each of IRGB and FNB agrees to use its commercially reasonable efforts to cause the Registration
Statement to be declared effective under the Securities Act as promptly as reasonably practicable
after the filing thereof. FNB also agrees to use its reasonable best efforts to obtain all
necessary state securities law or “Blue Sky” permits and approvals required to carry out the
transactions contemplated by this Agreement. After the Registration Statement is declared
effective under the Securities Act, IRGB shall each promptly mail at its expense the Proxy
Statement to its shareholders.

          (b) Each of IRGB and FNB agree that none of the respective information supplied or to be
supplied by it for inclusion or incorporation by reference in the Registration Statement shall, at
the time the Registration Statement and each amendment or supplement thereto, if any, becomes
effective under the Securities Act, contain any untrue statement of a material fact or omit to
state any material fact required to be stated therein or necessary to make the statements therein
not misleading. Each of IRGB and FNB agree that none of the respective information supplied or to
be supplied by it for inclusion or incorporation by reference in the Proxy Statement and any
amendment or supplement thereto shall contain any untrue statement of a material fact or omit to
state any material fact required to be stated therein or necessary to make the statements therein
not misleading. Each of IRGB and FNB further agree that if such party shall become aware prior to
the Effective Time of any

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information furnished by such party that would cause any of the statements in the Registration
Statement or the Proxy Statement to be false or misleading with respect to any material fact, or to
omit to state any material fact necessary to make the statements therein not false or misleading,
to promptly inform the other parties thereof and an appropriate amendment or supplement describing
such information shall be filed promptly with the SEC and, to the extent required by law,
disseminated to the shareholders of IRGB and/or FNB.

          (c) FNB agrees to advise IRGB, promptly after FNB receives notice thereof, of the time when
the Registration Statement has become effective or any supplement or amendment has been filed, of
the issuance of any stop order or the suspension of the qualification of FNB Common Stock for
offering or sale in any jurisdiction, of the initiation or, to the extent FNB is aware thereof,
threat of any proceeding for any such purpose, or of any request by the SEC for the amendment or
supplement of the Registration Statement or for additional information.

          (d) The parties shall cooperate with each other and use their respective reasonable best
efforts to promptly prepare and file all necessary documentation, to effect all applications,
notices, petitions and filings, to obtain as promptly as practicable all permits, consents,
approvals and authorizations of all third parties, Regulatory Agencies and Governmental Entities
that are necessary or advisable to consummate the transactions contemplated by this Agreement
(including the Merger), and to comply with the terms and conditions of all such permits, consents,
approvals and authorizations of all such Regulatory Agencies and Governmental Entities. IRGB and
FNB shall have the right to review in advance, and, to the extent practicable, each will consult
the other on, in each case subject to applicable laws relating to the exchange of information, all
the information relating to IRGB or FNB, as the case may be, and any of their respective
Subsidiaries, which appear in any filing made with, or written materials submitted to, any third
party, Regulatory Agency or any Governmental Entity in connection with the transactions
contemplated by this Agreement. In exercising the foregoing right, each of the parties shall act
reasonably and as promptly as practicable. The parties shall consult with each other with respect
to the obtaining of all permits, consents, approvals and authorizations of all third parties,
Regulatory Agencies and Governmental Entities necessary or advisable to consummate the transactions
contemplated by this Agreement and each party will keep the other apprised of the status of matters
relating to completion of the transactions contemplated by this Agreement. Notwithstanding the
foregoing, nothing in this Agreement shall be deemed to require FNB to take any action, or commit
to take any action, or agree to any condition or restriction, in connection with obtaining the
foregoing permits, consents, approvals and authorizations of third parties, Regulatory Agencies or
Governmental Entities, that would reasonably be expected to have a Material Adverse Effect on FNB
and its Subsidiaries (including the Surviving Company after giving effect to the Merger) taken as a
whole after the Effective Time (a “Materially Burdensome Regulatory Condition”). In addition, IRGB
agrees to cooperate and use its reasonable best efforts to assist FNB in preparing and filing

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such petitions and filings, and in obtaining such permits, consents, approvals and
authorizations of third parties, Regulatory Agencies and Governmental Entities, that may be
necessary or advisable to effect any mergers and/or consolidations of Subsidiaries of IRGB and FNB
following consummation of the Merger.

          (e) Each of FNB and IRGB shall, upon request, furnish to the other all information concerning
itself, its Subsidiaries, directors, officers and shareholders and such other matters as may be
reasonably necessary or advisable in connection with the Proxy Statement, the Registration
Statement or any other statement, filing, notice or application made by or on behalf of FNB, IRGB
or any of their respective Subsidiaries to any Regulatory Agency or Governmental Entity in
connection with the Merger and the other transactions contemplated by this Agreement.

          (f) Each of FNB and IRGB shall promptly advise the other upon receiving any communication from
any Regulatory Agency or Governmental Entity whose consent or approval is required for consummation
of the transactions contemplated by this Agreement that causes such party to believe that there is
a reasonable likelihood that any Requisite Regulatory Approval (as defined in Section 7.1(c)) will
not be obtained or that the receipt of any such approval may be materially delayed.

          (g) IRGB and FNB shall consult with each other before issuing any press release with respect
to the Merger or this Agreement and shall not issue any such press release or make any such public
statements without the prior consent of the other party, which shall not be unreasonably withheld;
provided, however, that a party may, without the prior consent of the other party, but after such
consultation, to the extent practicable under the circumstances, issue such press release or make
such public statements as may upon the advice of outside counsel be required by law or the rules or
regulations of the SEC, the FDIC, the OCC, the NYSE or FINRA. In addition, the Chief Executive
Officers of IRGB and FNB shall be permitted to respond to appropriate questions about the Merger
from the press. IRGB and FNB shall cooperate to develop all public announcement materials and make
appropriate management available at presentations related to the Merger as reasonably requested by
the other party.

     6.2 Access to Information.

          (a) Upon reasonable notice and subject to applicable laws relating to the exchange of
information, each of IRGB and FNB shall, and shall cause each of its Subsidiaries to, afford to the
officers, employees, accountants, counsel and other representatives of the other, reasonable
access, during normal business hours during the period prior to the Effective Time, to all its
properties, books, contracts, commitments and records, and, during such period, the parties shall,
and shall cause its Subsidiaries to, make available to the other party all other information
concerning its business, properties and personnel as the other may reasonably request. IRGB shall,
and shall cause each of its Subsidiaries to, provide to

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FNB a copy of each report, schedule and other document filed or received by it during such
period pursuant to the requirements of federal or state banking laws other than reports or
documents that such party is not permitted to disclose under applicable law. Neither IRGB nor FNB
nor any of their Subsidiaries shall be required to provide access to or to disclose information
where such access or disclosure would jeopardize the attorney-client privilege of such party or its
Subsidiaries or contravene any law, rule, regulation, order, judgment, decree, fiduciary duty or
binding agreement entered into prior to the date of this Agreement. The parties shall make
appropriate substitute disclosure arrangements under circumstances in which the restrictions of the
preceding sentence apply to the extent possible in light of those restrictions.

          (b) All information and materials provided pursuant to this Agreement shall be subject to the
provisions of the Confidentiality Agreement entered into between the parties (the “Confidentiality
Agreement”).

          (c) No investigation by either of the parties or their respective representatives shall affect
the representations and warranties of the other set forth in this Agreement.

     6.3 IRGB Shareholder Approval. IRGB shall call a meeting of its shareholders for the
purpose of obtaining the requisite shareholder approval required in connection with this Agreement
and the Merger (the “IRGB Shareholder Meeting”), and shall use its reasonable best efforts to call
such meeting as soon as reasonably practicable following the Registration Statement being declared
effective giving reasonable time for printing and mailing. Subject to Section 6.11, the Board of
Directors of IRGB shall recommend approval and adoption of this Agreement, the Merger and the other
transactions contemplated hereby, by IRGB’s shareholders and shall include such recommendation in
the Proxy Statement (the “IRGB Recommendation”). Without limiting the generality of the foregoing,
IRGB’s obligations pursuant to the first sentence of this Section 6.3(a) shall not be affected by
the commencement, public proposal, public disclosure or communication to IRGB of any Acquisition
Proposal (as defined in Section 6.11(e)). Notwithstanding the foregoing, if this Agreement is
terminated pursuant to Section 8.1, IRGB’s obligations pursuant to the first sentence of this
Section 6.3(a) shall terminate.

     6.4 Commercially Reasonable Efforts; Cooperation. Each of IRGB and FNB agrees to
exercise good faith and use its commercially reasonable best efforts to satisfy the various
covenants and conditions to Closing in this Agreement, and to consummate the transactions
contemplated hereby as promptly as possible.

     6.5 NYSE Approval. FNB shall cause the shares of FNB Common Stock to be issued in the
Merger to be approved for listing on the NYSE, subject to official notice of issuance, prior to the
Effective Time.

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     6.6 Benefit Plans.

          (a) As soon as administratively practicable after the Effective Time, FNB shall take all
reasonable action so that employees of IRGB and its Subsidiaries shall be entitled to participate
in each employee benefit plan, program or arrangement of FNB of general applicability with the
exception of FNB’s defined benefit pension plan (the “FNB Plans”) to the same extent as
similarly-situated employees of FNB and its Subsidiaries, it being understood that inclusion of the
employees of IRGB and its Subsidiaries in the FNB Plans may occur at different times with respect
to different plans, provided that coverage shall be continued under corresponding Benefit Plans of
IRGB and its Subsidiaries until such employees are permitted to participate in the FNB Plans and
provided further, however, that nothing contained herein shall require FNB or any of its
Subsidiaries to make any grants to any former employee of IRGB under any discretionary equity
compensation plan of FNB. FNB shall cause each FNB Plans in which employees of IRGB and its
Subsidiaries are eligible to participate to recognize, for purposes of determining eligibility to
participate in, the vesting of benefits under the FNB Plans, the service of such employees with
IRGB and its Subsidiaries to the same extent as such service was credited for such purpose by IRGB,
provided, however, that such service shall not be recognized to the extent that such recognition
would result in a duplication of benefits. Except for the commitment to continue those Benefit
Plans of IRGB and its Subsidiaries that correspond to FNB Plans until employees of IRGB and its
Subsidiaries are included in such FNB Plans, nothing herein shall limit the ability of FNB to amend
or terminate any of IRGB’s Benefit Plans in accordance with and to the extent permitted by their
terms at any time permitted by such terms.

          (b) At and following the Effective Time, and except as otherwise provided in Section 6.6(d)
FNB shall honor, and the Surviving Company shall continue to be obligated to perform, in accordance
with their terms, all benefit obligations to, and contractual rights of, current and former
employees of IRGB and its Subsidiaries and current and former directors of IRGB and its
Subsidiaries existing as of the Effective Date, as well as all employment, executive severance or
“change-in-control” or similar agreements, plans or policies of IRGB that are set forth on Schedule
6.6(b) of the IRGB Disclosure Schedule, subject to the receipt of any necessary approval from any
Governmental Entity. The severance or termination payments that are payable pursuant to such
agreements, plans or policies of IRGB are set forth on Schedule 6.6(b) of the IRGB Disclosure
Schedule. Following the consummation of the Merger and for one year thereafter, FNB shall, to the
extent not duplicative of other severance benefits, pay employees of IRGB or its Subsidiaries who
are terminated for other than cause, severance as set forth on Schedule 6.6(b) of the FNB
Disclosure Schedule. Following the expiration of the foregoing severance policy, any years of
service recognized for purposes of this Section 6.6(b) will be taken into account under the terms
of any applicable severance policy of FNB or its Subsidiaries.

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          (c) At such time as employees of IRGB and its Subsidiaries become eligible to participate in a
medical, dental or health plan of FNB or its Subsidiaries, FNB shall cause each such plan to (i)
waive any preexisting condition limitations to the extent such conditions are covered under the
applicable medical, health or dental plans of FNB and (ii) waive any waiting period limitation or
evidence of insurability requirement that would otherwise be applicable to such employee or
dependent on or after the Effective Time to the extent such employee or dependent had satisfied any
similar limitation or requirement under an analogous Benefit Plan prior to the Effective Time.

          (d) Immediately prior to the Effective Time, IRGB shall, at the written request of FNB, freeze
or terminate such of the IRGB Benefit Plans as is requested by FNB.

     6.7 Indemnification; Directors’ and Officers’ Insurance.

          (a) In the event of any threatened or actual claim, action, suit, proceeding or investigation,
whether civil, criminal or administrative, including any such claim, action, suit, proceeding or
investigation (each a “Claim”) in which any individual who is now, or has been at any time prior to
the date of this Agreement, or who becomes prior to the Effective Time, a director or officer of
IRGB or any of its Subsidiaries or who is or was serving at the request of IRGB or any of its
Subsidiaries as a director, officer, employee, member or otherwise of another Person (the
“Indemnified Parties”), is, or is threatened to be, made a party based in whole or in part on, or
arising in whole or in part out of, or pertaining to (i) the fact that he is or was a director or
officer of IRGB or any of its Subsidiaries or was serving at the request of IRGB or any of its
Subsidiaries as a director or officer of another Person or (ii) this Agreement or any of the
transactions contemplated by this Agreement, whether asserted or arising before or after the
Effective Time, the parties shall cooperate and use their best efforts to defend against and
respond thereto. From and after the Effective Time, FNB shall, and shall cause the Surviving
Company to, indemnify, defend and hold harmless, as and to the fullest extent currently provided
under applicable law, the IRGB Articles, the IRGB Bylaws and any agreement set forth in Section 6.7
of the IRGB Disclosure Schedule, each such Indemnified Party against any losses, claims, damages,
liabilities, costs, expenses (including reimbursement for reasonable fees and expenses, including
fees and expenses of legal counsel (including local counsel), incurred in advance of the final
disposition of any claim, suit, proceeding or investigation upon receipt of any undertaking
required by applicable law), judgments, fines and amounts paid in settlement in connection with any
such threatened or actual claim, action, suit, proceeding or investigation.

          (b) FNB and the Surviving Company agree that all rights to indemnification of liabilities
(including advancement of expenses), and all limitations with respect thereto, existing in favor of
any Indemnified Person, as provided in the IRGB Articles or the IRGB Bylaws, shall survive the
Merger and shall continue in full force and effect, without any amendment thereto; provided,
however, that in the event any Claim is asserted or made, any determination required to be made
with respect to whether an Indemnified Person’s conduct

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complies with the standards set forth under the PBCL, the IRGB Articles or the IRGB Bylaws, as
the case may be, shall be made by independent legal counsel (whose fees and expenses shall be paid
by FNB and the Surviving Company) selected by such Indemnified Person and reasonably acceptable to
FNB; and provided further that nothing in this Section 6.7 shall impair any rights or obligations
of any current or former director or officer of IRGB or its Subsidiaries, including pursuant to the
respective organizational documents of IRGB, or their respective Subsidiaries, under the PBCL or
otherwise.

          (c) Prior to the Effective Time, FNB shall obtain at the expense of IRGB, and FNB shall
maintain for a period of six years following the Effective Time, directors’ and officers’ liability
insurance and fiduciary liability insurance policies in respect of acts or omissions occurring at
or prior to the Effective Time, including the transactions contemplated hereby, covering the
Indemnified Persons who as of the Effective Time are covered by IRGB’s directors’ and officers’
liability insurance or fiduciary liability insurance policies, provided that FNB may substitute
therefor policies of at least the same coverage and amounts containing terms and conditions that
are not less advantageous than such policies of IRGB or single premium tail coverage with policy
limits equal to IRGB’s existing coverage limits, provided that in no event shall FNB be required to
expend for any one year an amount in excess of 150% of the annual premium currently paid by IRGB
for such insurance (the “Insurance Amount”), and further provided that if FNB is unable to maintain
or obtain the insurance called for by this Section 6.7(c) as a result of the preceding provision,
FNB shall use its commercially reasonable best efforts to obtain the most advantageous coverage as
is available for the maximum Insurance Amount. The provisions of the immediately preceding
sentence shall be deemed to have been satisfied if prepaid policies have been obtained prior to the
Effective Time from an insurer or insurers selected by FNB that have an insurer financial strength
rating by A.M. Best Co. of at least “A,” which policies provide the Indemnified Persons with
coverage, from the Effective Time to the sixth anniversary of the Effective Time, including in
respect of the transactions contemplated hereby, on terms that are no less advantageous to
Indemnified Persons than IRGB’s D&O Insurance existing immediately prior to the date hereof. If
such prepaid policies have been obtained prior to the Effective Time, then the FNB shall maintain
such policies in full force and effect and continue the obligations thereunder.

          (d) The provisions of this Section 6.7 shall survive the Effective Time and are intended to be
for the benefit of, and shall be enforceable by, each Indemnified Party and his or her heirs and
representatives.

     6.8 Additional Agreements. In case at any time after the Effective Time any further
action is necessary or desirable to carry out the purposes of this Agreement (including any merger
between a Subsidiary of FNB, on the one hand, and a Subsidiary of IRGB, on the other) or to vest
the Surviving Company with full title to all properties, assets, rights, approvals, immunities and
franchises of either party to the Merger, the proper officers and

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directors of each party and their respective Subsidiaries shall take all such necessary action as
may be reasonably requested by, and at the sole expense of, FNB.

     6.9 Advice of Changes. Each of FNB and IRGB shall promptly advise the other of any
change or event (i) having or reasonably likely to have a Material Adverse Effect on it or (ii)
that it believes would or would be reasonably likely to cause or constitute a material breach of
any of its representations, warranties or covenants contained in this Agreement; provided, however,
that no such notification shall affect the representations, warranties, covenants or agreements of
the parties (or remedies with respect thereto) or the conditions to the obligations of the parties
under this Agreement; provided, further, that a failure to comply with this Section 6.9 shall not
constitute the failure of any condition set forth in Article VII to be satisfied unless the
underlying Material Adverse Effect or material breach would independently result in the failure of
a condition set forth in Article VII to be satisfied.

     6.10 Dividends. After the date of this Agreement, IRGB shall coordinate with FNB the
declaration of any dividends in respect of IRGB Common Stock and the record dates and payment dates
relating thereto such that holders of IRGB Common Stock shall not receive two dividends, or fail to
receive one dividend, for any quarter with respect to their shares of IRGB Common Stock and any
shares of FNB Common Stock any such holder receives in exchange therefor in the Merger.

     6.11 Certain Actions.

          (a) From the date of this Agreement through the Effective Time, except as otherwise permitted
by this Section 6.11, IRGB will not, and will not authorize or permit any of its directors,
officers, agents, employees, investment bankers, attorneys, accountants, advisors, agents,
affiliates or representatives (collectively, “IRGB Representatives”) to, directly or indirectly,
(i) initiate, solicit, encourage or take any action to facilitate, including by way of furnishing
information, any Acquisition Proposal (as defined in Section 6.11(e)(i)) or any inquiries with
respect to or the making of any Acquisition Proposal, (ii) enter into or participate in any
discussions or negotiations with, furnish any information relating to IRGB or any of its
Subsidiaries or afford access to the business, properties, assets, books or records of IRGB or any
of its Subsidiaries to, otherwise cooperate in any way with, or knowingly assist, participate in,
facilitate or encourage any effort by any third party that is seeking to make, or has made, an
Acquisition Proposal or (iii) except in accordance with Section 8.1(g), approve, endorse or
recommend or enter into any letter of intent or similar document or any contract, agreement or
commitment contemplating or otherwise relating to an Acquisition Proposal.

          (b) Notwithstanding anything herein to the contrary, IRGB and its Board of Directors shall be
permitted (i) to comply with Rule 14d-9 and Rule 14e-2 promulgated under the Exchange Act with
regard to an Acquisition Proposal provided that the Board of Directors of IRGB shall not withdraw
or modify in a manner adverse to FNB the IRGB

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Recommendation except as set forth in subsection (iii) below; (ii) to engage in any
discussions or negotiations with, and provide any information to, any third party in response to a
Superior Proposal (as defined in Section 6.11(e)(ii)) by any such third party, if and only to the
extent that (x) IRGB’s Board of Directors concludes in good faith, after consultation with outside
counsel, that failure to do so could reasonably be expected to breach its fiduciary duties under
applicable law, (y) prior to providing any information or data to any third party in connection
with a Superior Proposal by any such third party, IRGB’s Board of Directors receives from such
third party an executed confidentiality agreement, which confidentiality terms shall be no less
favorable to IRGB than those contained in the Confidentiality Agreement between IRGB and FNB, a
copy of which executed confidentiality agreement shall have been provided to FNB for informational
purposes and (z) at least 72 hours prior to providing any information or data to any third party or
entering into discussions or negotiations with any third party, IRGB promptly notifies FNB in
writing of the name of such third party and the material terms and conditions of any such Superior
Proposal and (iii) to withdraw, modify, qualify in a manner adverse to FNB, condition or refuse to
make the IRGB Recommendation (the “Change in IRGB Recommendation”) if IRGB’s Board of Directors
concludes in good faith, after consultation with outside counsel and financial advisors, that
failure to do so could reasonably be expected to breach its fiduciary duties under applicable law.

          (c) IRGB will promptly, and in any event within 24 hours, notify FNB in writing of the receipt
of any Acquisition Proposal or any information related thereto, which notification shall describe
the Acquisition Proposal and identify the third party making the same.

          (d) IRGB agrees that it will, and will cause the IRGB Representatives to, immediately cease
and cause to be terminated any activities, discussions or negotiations existing as of the date of
this Agreement with any parties conducted heretofore with respect to any Acquisition Proposal.

          (e) For purposes of this Agreement:

               (i) The term “Acquisition Proposal” means any inquiry, proposal or offer, filing of any
regulatory application or notice, whether in draft or final form, or disclosure of an intention to
do any of the foregoing from any person relating to any (w) direct or indirect acquisition or
purchase of a business that constitutes a substantial (i.e., 20% or more) portion of the net
revenues, net income or net assets of IRGB and its Subsidiaries, taken as a whole, (x) direct or
indirect acquisition or purchase of IRGB Common Stock after the date of this Agreement by a Person
who on the date of this Agreement does not own 10% or more of IRGB Common Stock and such Person by
reason of such purchase or acquisition first becomes the owner of 10% or more of IRGB Common Stock
after the date of this Agreement or the direct or indirect acquisition or purchase of 5% or more of
IRGB Common Stock after the date of this Agreement by a Person who on the date of this Agreement
owns

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10% or more of IRGB Common Stock, (y) tender offer or exchange offer that if consummated would
result in any Person beneficially owning 10% or more of any class of equity securities of IRGB or
(z) merger, consolidation, business combination, recapitalization, liquidation, dissolution or
similar transaction involving IRGB other than the transactions contemplated by this Agreement.

               (ii) The term “Superior Proposal” means any bona fide, unsolicited written Acquisition
Proposal made by a Third Party to acquire more than 50% of the combined voting power of the shares
of IRGB Common Stock then outstanding or all or substantially all of IRGB’s consolidated assets for
consideration consisting of cash and/or securities that is on terms that the Board of Directors of
IRGB in good faith concludes, after consultation with its financial advisors and outside counsel,
taking into account, among other things, all legal, financial, regulatory and other aspects of the
proposal and the person making the proposal, including any break-up fees, expense reimbursement
provisions and conditions to consummation, (A) is on terms that the Board of Directors of IRGB in
its good faith judgment believes to be more favorable to IRGB than the Merger; (B) for which
financing, to the extent required, is then fully committed or reasonably determined to be available
by the Board of Directors of IRGB and (C) is reasonably capable of being completed.

          (f) If a Payment Event (as defined in Section 6.11(g)) occurs, IRGB shall pay to FNB by wire
transfer of immediately available funds, within two business days following such Payment Event, a
fee of $3,750,000 (the “Break-up Fee”), provided, however, that if a Payment Event occurs, IRGB
shall have no obligation to pay FNB’s expenses under Section 9.3(b).

          (g) The term “Payment Event” means any of the following:

               (i) the termination of this Agreement by FNB pursuant to Section 8.1(f)(i);

               (ii) the termination of this Agreement by IRGB pursuant to Section 8.1(g);

               (iii) the termination of this Agreement pursuant to any other Section following the
commencement of a tender offer or exchange offer for 25% or more of the outstanding shares of IRGB
Common Stock and IRGB shall not have sent to its shareholders, within 10 business days after the
commencement of such tender offer or exchange offer, a statement that the Board of Directors of
IRGB recommends rejection of such tender offer or exchange offer; or

               (iv) the occurrence of any of the following events within 18 months of the termination of this
Agreement pursuant to Section 8.1(f)(i), provided that an Acquisition Proposal shall have been made
by a Third Party after the date hereof and prior to such

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termination that shall not have been withdrawn in good faith prior to such termination: (A)
IRGB enters into an agreement to merge with or into, or be acquired, directly or indirectly, by
merger or otherwise by, such Third Party; (B) such Third Party, directly or indirectly, acquires
substantially all of the total assets of IRGB and its Subsidiaries, taken as a whole; or (C) such
Third Party, directly or indirectly, acquires more than 50% of the outstanding shares of IRGB
Common Stock. As used herein, “Third Party” means any person as defined in Section 13(d) of the
Exchange Act other than FNB or its affiliates.

          (h) IRGB acknowledges that the agreements contained in Section 6.11(e) are an integral part of
the transactions contemplated in this Agreement and that without these agreements FNB would not
enter into this Agreement. Accordingly, in the event IRGB fails to pay to FNB the Break-up Fee,
promptly when due, IRGB shall, in addition thereto, pay to FNB all costs and expenses, including
attorneys’ fees and disbursements, incurred in collecting such Break-up Fee together with interest
on the amount of the Break-up Fee or any unpaid portion thereof, from the date such payment was due
until the date such payment is received by FNB, accrued at the fluctuating prime rate as quoted in
The Wall Street Journal as in effect from time to time during the period.

     6.12 Transition. Commencing following the date hereof, FNB and IRGB shall, and shall
cause their respective Subsidiaries to, use their reasonable best efforts to facilitate the
integration, from and after the Closing, of IRGB and its Subsidiaries with the businesses of FNB
and its Subsidiaries, without taking action that would, in effect, give FNB control over the
management or policies of IRGB or any of its Subsidiaries. Without limiting the generality of the
foregoing, from the date hereof through the Closing Date and consistent with the performance of
their day-to-day operations, the continuous operation of IRGB and its Subsidiaries in the ordinary
course of business and applicable law, IRGB shall cause the employees and officers of IRGB and its
Subsidiaries, including the Bank, to cooperate with FNB in performing tasks reasonably required in
connection with such integration.

     6.13 Certain Post-Closing Matters.

          (a) FNB agrees to take all action necessary to appoint or elect, effective as of the Effective
Time, as a director of FNB Bank one current member of the Board of Directors of IRGB Bank (the
“IRGB Bank Designee”) as is mutually agreed by FNB and IRGB. The IRGB Bank Designee shall serve
until the election of his or her successor. FNB agrees to cause the FNB Bank Board to recommend
and FNB shall vote all of the shares of voting stock held by FNB for the annual reelection of the
IRGB Bank Designee through FNB Bank’s annual meeting of shareholders in 2010.

          (b) Effective as of the Closing Date, FNB shall take all action necessary to appoint as
members of the FNB Bank Pittsburgh Advisory Board for at least one full two-year term, three
current members of the Board of Directors of IRGB Bank as are mutually agreed by FNB and IRGB.

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          (c) FNB shall use reasonable best efforts to reference or identify IRGB Bank in all
correspondence, communications and information delivered to IRGB Bank customers from the date of
this Agreement through the Closing Date of the Bank Merger.

          (d) The commitments set forth in this Section 6.13 shall survive the Effective Time as
reflected in a formal resolution of the FNB Board and the FNB Bank Board to be reflected in the
minutes of FNB as the Surviving Company of the Merger and FNB Bank as the Surviving Bank in the
Bank Merger.

     6.14 Tax Representation Letters. Officers of FNB and IRGB shall execute and deliver
to Duane Morris LLP, tax counsel to FNB, and Jones Day, tax counsel to IRGB, “Tax Representation
Letters” substantially in the form agreed to by the parties and such law firms at such time or
times as may be reasonably requested by such law firms, including at the time the Proxy Statement
and Registration Statement are declared effective by the SEC and at the Effective Time, in
connection with such tax counsel’s delivery of opinions pursuant to Section 7.2(c) and Section
7.3(c) hereof.

ARTICLE
7

CONDITIONS PRECEDENT

     7.1 Conditions to Each Party’s Obligation to Effect the Merger. The respective
obligations of the parties to effect the Merger shall be subject to the satisfaction or waiver,
where permitted by applicable law, at or prior to the Effective Time of the following conditions:

          (a) Shareholder Approval. This Agreement and the Merger contemplated hereby shall
have been approved and adopted by the requisite affirmative vote of the holders of IRGB Common
Stock entitled to vote thereon.

          (b) NYSE Listing. The shares of FNB Common Stock to be issued to the holders of IRGB
Common Stock upon consummation of the Merger shall have been authorized for listing on the NYSE,
subject to official notice of issuance, provided FNB shall have used its reasonable best efforts to
cause such authorization of listing on the NYSE.

          (c) Regulatory Approvals. All regulatory approvals set forth in Sections 3.4 and 4.4
required to consummate the transactions contemplated by this Agreement, including the Merger, shall
have been obtained and shall remain in full force and effect and all statutory waiting periods in
respect thereof shall have expired (all such approvals and the expiration of all such waiting
periods being referred as the “Requisite Regulatory Approvals”).

          (d) Registration Statement. The Registration Statement shall have become effective
under the Securities Act and no stop order suspending the effectiveness of the

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Registration Statement shall have been issued and no proceedings for that purpose shall have
been initiated or threatened by the SEC.

          (e) No Injunctions or Restraints; Illegality. No order, injunction or decree issued
by any court or agency of competent jurisdiction or other legal restraint or prohibition (an
“Injunction”) preventing the consummation of the Merger or any of the other transactions
contemplated by this Agreement shall be in effect, provided FNB shall have used its reasonable best
efforts to have removed, lifted or resolved such legal restraint or prohibition. No statute, rule,
regulation, order, Injunction or decree shall have been enacted, entered, promulgated or enforced
by any Governmental Entity that prohibits or makes illegal consummation of the Merger.

     7.2 Conditions to Obligation of FNB to Effect the Merger. The obligation of FNB to
effect the Merger is also subject to the satisfaction or waiver by FNB, where permitted by
applicable law, at or prior to the Effective Time, of the following conditions:

          (a) Representations and Warranties. The representations and warranties of IRGB
contained in this Agreement that are qualified by materiality or contained in Section 3.2 shall be
true and correct as of the date of this Agreement and as of the Closing Date as though made on and
as of the Closing Date and the representations and warranties of IRGB contained in this Agreement
that are not so qualified shall be true and correct in all material respects as of the date of this
Agreement and as of the Closing Date as though made on and as of the Closing Date (except in each
case to the extent any such representation or warranty expressly speaks as of an earlier specified
date, in which case, as of such date), except in each case where the failure of the representations
and warranties (other than the representations and warranties set forth in Section 3.2) to be so
true and correct (without giving effect to any qualification as to “material,” “materiality,”
“material adverse effect” or similar qualifications) are not, individually or in the aggregate,
reasonably likely to result in a Material Adverse Effect on IRGB; and FNB shall have received a
certificate signed on behalf of IRGB by the Chief Executive Officer or the Chief Financial Officer
of IRGB to the foregoing effect.

          (b) Performance of Obligations of IRGB. IRGB shall have performed in all material
respects all obligations required to be performed by it under this Agreement at or prior to the
Closing Date; and FNB shall have received a certificate signed on behalf of IRGB by the Chief
Executive Officer or the Chief Financial Officer of IRGB to such effect.

          (c) Federal Tax Opinion. FNB shall have received the opinion of its counsel, Duane
Morris LLP, in form and substance reasonably satisfactory to FNB, dated the Closing Date, to the
effect that, on the basis of facts, representations and assumptions set forth in such opinion, the
Merger will be treated as a reorganization within the meaning of Section 368(a) of the Code. In
rendering such opinion, counsel may require and rely upon representations contained in certificates
of officers of IRGB and FNB, reasonably satisfactory in form and substance to it.

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          (d) Environmental Reports. At the request of FNB, IRGB shall have furnished FNB with
a Phase I environmental study with respect to all real property owned by IRGB or any of its
Subsidiaries (which Phase I environmental study shall be at the sole cost and expense of FNB), the
findings of which shall be commercially acceptable to FNB who shall not unreasonably withhold such
acceptance.

          (e) No Materially Burdensome Regulatory Condition. None of the Requisite Regulatory
Approvals shall have resulted in the imposition of a Materially Burdensome Regulatory Condition.

     7.3 Conditions to Obligation of IRGB to Effect the Merger. The obligation of IRGB to
effect the Merger is also subject to the satisfaction or waiver by IRGB, where permitted by
applicable law, at or prior to the Effective Time of the following conditions:

          (a) Representations and Warranties. The representations and warranties of FNB
contained in this Agreement that are qualified by materiality shall be true and correct as of the
date of this Agreement and as of the Closing Date as though made on and as of the Closing Date and
the representations and warranties of FNB contained in this Agreement that are not so qualified
shall be true and correct in all material respects as of the date of this Agreement and as of the
Closing Date as though made on and as of the Closing Date (except in each case to the extent any
such representation or warranty expressly speaks as of an earlier specified date, in which case, as
of such date), except in each case where the failure of the representations and warranties to be so
true and correct (without giving effect to any qualification as to “material,” “materiality,”
“material adverse effect” or similar qualifications) are not, individually or in the aggregate,
reasonably likely to result in a Material Adverse Effect on FNB; and IRGB shall have received a
certificate signed on behalf of FNB by the Chief Executive Officer or the Chief Financial Officer
of FNB to the foregoing effect.

          (b) Performance of Obligations of FNB. FNB shall have performed in all material
respects all obligations required to be performed by it under this Agreement at or prior to the
Closing Date, and IRGB shall have received a certificate signed on behalf of FNB by the Chief
Executive Officer or the Chief Financial Officer of FNB to such effect.

          (c) Federal Tax Opinion. IRGB shall have received the opinion of its counsel, Jones
Day, in form and substance reasonably satisfactory to IRGB, dated the Closing Date, to the effect
that, on the basis of facts, representations and assumptions set forth in such opinion, the Merger
will be treated as a reorganization within the meaning of Section 368(a) of the Code. In rendering
such opinion, counsel may require and rely upon representations contained in certificates of
officers of IRGB and FNB, reasonably satisfactory in form and substance to it.

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ARTICLE
8

TERMINATION AND AMENDMENT

     8.1 Termination. This Agreement may be terminated at any time prior to the Effective
Date, and the Merger may be abandoned:

          (a) Mutual Consent. By the mutual consent in writing of FNB and IRGB if the Board of
Directors of each so determines by vote of a majority of the members of its entire Board.

          (b) Breach.

               (i) By FNB, if (A) any of the representations and warranties of IRGB contained in this
Agreement shall fail to be true and correct such that the condition set forth in Section 7.2(a)
would not be satisfied or (B) IRGB shall have breached or failed to comply with any of its
obligations under this Agreement such that the conditions set forth in Sections 7.1 or 7.2(b) would
not be satisfied, in either case other than as a result of a material breach by FNB of any of its
obligations under this Agreement and such failure or breach with respect to any such
representation, warranty or obligation cannot be cured, or, if curable, shall continue unremedied
for a period of 30 days after IRGB has received written notice from FNB of the occurrence of such
failure or breach, but in no event shall such 30-day period extend beyond November 30, 2008.

               (ii) By IRGB, if (A) any of the representations and warranties of FNB contained in this
Agreement shall fail to be true and correct such that the condition set forth in Section 7.3(a)
would not be satisfied or (B) FNB shall have breached or failed to comply with any of its
obligations under this Agreement such that the conditions set forth in Sections 7.1 or 7.3(b) would
not be satisfied, in either case other than as a result of a material breach by IRGB of any of its
obligations under this Agreement and such failure or breach with respect to any such
representation, warranty or obligation cannot be cured, or, if curable, shall continue unremedied
for a period of 30 days after FNB has received written notice from IRGB of the occurrence of such
failure or breach, but in no event shall such 30-day period extend beyond November 30, 2008.

          (c) Delay. By FNB or IRGB, if its Board of Directors so determines by vote of a
majority of the members of its entire Board, in the event that the Merger is not consummated on or
before 5:00 p.m., Eastern Daylight Time on November 30, 2008, except to the extent that the failure
of the Merger then to be consummated by such date shall be due to the failure of the party seeking
to terminate pursuant to this Section 8.1(c) to perform or observe the covenants and agreements of
such party set forth in this Agreement.

          (d) No Regulatory Approval. By FNB or IRGB, if its Board of Directors so determines
by a vote of a majority of the members of its entire Board, in the event the

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approval of any Governmental Entity required for consummation of the Merger contemplated by
this Agreement shall have been denied by final nonappealable action of such Governmental Entity or
an application therefor shall have been permanently withdrawn at the request of a Governmental
Entity, provided, however, that no party shall have the right to terminate this Agreement pursuant
to this Section 8.1(d) if such denial shall be due to the failure of the party seeking to terminate
this Agreement to perform or observe the covenants of such party set forth herein.

          (e) No IRGB Shareholder Approval. By FNB, or by IRGB provided that IRGB shall not be
in material breach of any of its obligations under Section 6.3, if any approval of the shareholders
of IRGB contemplated by this Agreement shall not have been obtained by reason of the failure to
obtain the required vote at the IRGB Shareholder Meeting or at any adjournment or postponement
thereof.

          (f) Failure to Recommend. At any time prior to the IRGB Shareholder Meeting, by FNB
if (i) IRGB shall have breached Section 6.3 in any respect materially adverse to FNB, (ii) the IRGB
Board of Directors shall have failed to make the IRGB Recommendation or shall have effected a
Change in IRGB Recommendation, (iii) the IRGB Board shall have recommended approval of an
Acquisition Proposal or (iv) IRGB shall have materially breached its obligations under Section 6.3
by failing to call, give notice of, convene and hold the IRGB Shareholder Meeting.

          (g) Superior Proposal. At any time prior to the date of mailing of the Proxy
Statement, by IRGB in order to enter concurrently into an Acquisition Proposal that has been
received by IRGB and the IRGB Board of Directors in compliance with Sections 6.11(a) and (b) and
that IRGB’s Board of Directors concludes in good faith, in consultation with its financial and
legal advisors, that such Acquisition Proposal is a Superior Proposal; provided, however, that this
Agreement may be terminated by IRGB pursuant to this Section 8.1(g) only after the fifth business
day following IRGB’s provision of written notice to FNB advising FNB, that the IRGB Board of
Directors is prepared to accept a Superior Proposal (it being agreed that the delivery of such
notice shall not entitle FNB to terminate this Agreement pursuant to Section 8.1(g)) and only if
(i) during such five-business day period, IRGB has caused its financial and legal advisors to
negotiate with FNB in good faith to make such adjustments in the terms and conditions of this
Agreement such that such Acquisition Proposal would no longer constitute a Superior Proposal, (ii)
IRGB’s Board of Directors has considered such adjustments in the terms and conditions of this
Agreement resulting from such negotiations and has concluded in good faith, based upon consultation
with its financial and legal advisers, that such Acquisition Proposal remains a Superior Proposal
even after giving effect to the adjustments proposed by FNB and further provided that such
termination shall not be effective until IRGB has paid the Break-up Fee to FNB.

          (h) By IRGB at any time during the two-day period following the Determination Date, if both of
the following conditions (i) and (ii) are satisfied:

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               (i) the Average Closing Price (as defined below) shall be less than the product of 0.800 and
the Starting Price; and

               (ii) (A) the number obtained by dividing the Average Closing Price by the Starting Price (such
number being referred to herein as the “Buyer Ratio”) shall be less than (B) the number obtained by
dividing the Index Price on the Determination Date by the Index Price on the Starting Date (as
defined below) and subtracting 0.200 from such quotient (such number being referred to herein as
the “Index Ratio”);

subject to the following. If IRGB elects to exercise its termination right pursuant to the
immediately preceding sentence, it shall give prompt written notice to FNB; provided that such
notice of election to terminate may be withdrawn at any time within the aforementioned two-day
period. During the period commencing with its receipt of such notice and ending at the Effective
Time, FNB shall have the option of increasing the Exchange Ratio and/or the Cash Consideration in a
manner such, and to the extent required, so that the condition set forth in either clause (i) or
(ii) above shall be deemed not to exist.

     For purposes hereof, the condition set forth in clause (i) above shall be deemed not to exist
if:

	 	•	 	the Exchange Ratio and/or the Cash Consideration is increased so that the Per Share
Consideration (calculated by using the Average Closing Price, as provided in the
definition of “Per Share Consideration”) after such increase is not less than 89% of
the Per Share Consideration calculated by using the Starting Price in lieu of the
Average Closing Price.

     For purposes hereof, the condition set forth in clause (ii) above shall be deemed not to exist
if:

	 	•	 	the Exchange Ratio and/or the Cash Consideration is increased so that the Adjusted
Buyer Ratio is not less than the Index Ratio.

if FNB makes this election, within such period, it shall give prompt written notice to IRGB of such
election and the revised Exchange Ratio and/or Cash Consideration, whereupon no termination shall
have occurred pursuant to this Section 8.1(h) and this Agreement shall remain in effect in
accordance with its terms (except as the Exchange Ratio and/or Cash Consideration, and derivatively
the Stock Consideration and/or Total Cash Amount, shall have been so modified), and any references
in this Agreement to “Exchange Ratio,” “Cash Consideration,” “Stock Consideration” and “Total Cash
Amount” shall thereafter be deemed to refer to the Exchange Ratio, Cash Consideration, Stock
Consideration and Total Cash Amount after giving effect to any adjustment made pursuant to this
Section 8.1(h). For purposes of this Section 8.1(h), the following terms shall have the
meanings indicated:

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     “Adjusted Buyer Ratio” means the number obtained by dividing (x) the sum of (A) the
Average Closing Price plus (B) the quotient obtained by dividing the aggregate increase in
transaction value resulting from an increase in the Exchange Ratio and/or the Cash Consideration by
the total number of shares of Seller Common Stock outstanding multiplied by the initial Exchange
Ratio and the percentage offered as stock (55%), on the Determination Date, by (y) the Starting
Price. For purposes of calculating the increase in transaction value, the price per share of Buyer
Common Stock shall be deemed to be the Average Closing Price.

     “Average Closing Price” means the average of the last reported sale prices per share
of Buyer Common Stock as reported on the NYSE (as reported in The Wall Street Journal or, if not
reported therein, in another mutually agreed upon authoritative source) for the twenty consecutive
trading days immediately preceding the Determination Date, rounded to the nearest cent.

     “Determination Date” shall mean the fifth calendar day immediately prior to the
Effective Time, or if such calendar day is not a trading day on the NYSE, then the trading day
immediately preceding such calendar day.

     “Index Price” on a given date means the closing price of the NASDAQ Bank Index.

     “Per Share Consideration” means the sum of (i) 55% of the product of Stock
Consideration times the Average Closing Price plus (ii) 45% of the Cash Consideration.

     “Starting Date” means the trading day on the NYSE preceding the day on which the
parties publicly announce the signing of this Agreement.

     “Starting Price” means $14.92.

     If FNB declares or effects a stock dividend, reclassification, recapitalization, split-up,
combination, exchange of shares or similar transaction between the Starting Date and the
Determination Date, the prices for the common stock of FNB shall be appropriately adjusted for the
purposes of applying this Section 8.1(h).

     8.2 Effect of Termination. In the event of termination of this Agreement by either
FNB or IRGB as provided in Section 8.1, this Agreement shall forthwith become void and have no
effect except (i) Sections 6.1(g), 6.2(b), 6.11(f)-(h), 8.2, 8.3, 9.3 and 9.8 shall survive any
termination of this Agreement and (ii) notwithstanding anything to the contrary contained in this
Agreement, no party shall be relieved or released from any liability or damages arising out of its
willful breach of any of the provisions of this Agreement.

     8.3 Amendment. Subject to compliance with applicable law and Section 1.1(b), this
Agreement may be amended by the parties, by action taken or authorized by their respective Boards
of Directors at any time before or after approval of the matters presented in connection with
Merger by the shareholders of IRGB or the shareholders of FNB; provided,

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however, that after any approval of the transactions contemplated by this Agreement by the
shareholders of IRGB and FNB, there may not be, without further approval of their shareholders, any
amendment of this Agreement that requires such further approval under applicable law. This
Agreement may not be amended except by an instrument in writing signed on behalf of each of the
parties.

     8.4 Extension; Waiver. At any time prior to the Effective Time, the parties, by
action taken or authorized by their respective Board of Directors, may, to the extent legally
allowed, (i) extend the time for the performance of any of the obligations or other acts of the
other party, (ii) waive any inaccuracies in the representations and warranties contained in this
Agreement and (iii) waive compliance with any of the agreements or conditions contained in this
Agreement; provided, however, that after any approval of the transactions contemplated by this
Agreement by the shareholders of IRGB, there may not be, without further approval of their
shareholders, any extension or waiver of this Agreement or any portion hereof that changes the
amount or form of the consideration to be delivered to the holders of IRGB Common Stock and the
holders of FNB Common Stock under this Agreement, other than as contemplated by this Agreement.
Any agreement on the part of a party to any such extension or waiver shall be valid only if set
forth in a written instrument signed on behalf of such party, but such extension or waiver or
failure to insist on strict compliance with an obligation, covenant, agreement or condition shall
not operate as a waiver of, or estoppel with respect to, any subsequent or other failure.

ARTICLE 9

GENERAL PROVISIONS

     9.1 Closing. On the terms and subject to conditions set forth in this Agreement, the
closing of the Merger (the “Closing”) shall take place at 10:00 a.m. on a date and at a place to
be specified by the parties, which date shall be no later than five business days after the
satisfaction or waiver (subject to applicable law) of the latest to occur of the conditions set
forth in Article VII (other than those conditions that by their nature are to be satisfied or
waived at the Closing), unless extended by mutual written agreement of the parties (the “Closing
Date”).

     9.2 Nonsurvival of Representations, Warranties and Agreements. None of the
representations, warranties, covenants and agreements set forth in this Agreement or in any
instrument delivered pursuant to this Agreement shall survive the Effective Time, except for
Articles I , II and IX and Sections 6.6, 6.7, 6.8 and 6.13.

     9.3 Expenses.

          (a) Each party hereto will bear all expenses incurred by it in connection with this Agreement
and the transactions contemplated hereby, including fees and expenses of its

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own financial consultants, accountants and counsel, except that expenses of printing the Proxy
Statement and the registration fee to be paid to the SEC in connection with the Registration
Statement shall be shared equally between IRGB and FNB, and provided further that nothing contained
herein shall limit either party’s rights to recover any liabilities or damages arising out of the
other party’s willful breach of any provision of this Agreement.

          (b) In the event that this Agreement is terminated by:

               (i) FNB pursuant to Section 8.1(b)(i);

               (ii) IRGB pursuant to Section 8.1(b)(ii); or

               (iii) FNB pursuant to Section 8.1(e),

then the non-terminating party shall pay to the terminating party by wire transfer of immediately
available funds, within two business days following delivery of a statement of such expenses, all
out-of-pocket costs and expenses, up to a maximum of $500,000, including without limitation,
professional fees of legal counsel, financial advisors and accountants, and their expenses,
actually incurred by the terminating party in connection with the Merger and this Agreement.

     9.4 Notices. All notices and other communications in connection with this Agreement
shall be in writing and shall be deemed given if delivered personally, sent via facsimile, with
confirmation, mailed by registered or certified mail, return receipt requested, or delivered by an
express courier, with confirmation, to the parties at the following addresses or at such other
address for a party as shall be specified by like notice:

          (a) if to IRGB, to:

Iron & Glass Bancorp, Inc.

1114 East Carson Street

Pittsburgh, PA 15203

Attention:
Michael J. Hagan

Facsimile:

with a copy to:

Jones Day

500 Grant Street, Suite 3100

Pittsburgh, PA 15219

Attention: Rachel Lorey Allen

Facsimile: (412) 394-7959

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          (b) if to FNB, to:

F.N.B. Corporation

One F.N.B. Boulevard

Hermitage, PA 16148

Attention: Stephen J. Gurgovits

Facsimile (724) 983-3515

with a copy to:

Duane Morris LLP

30 South 17th Street

Philadelphia, PA 19103

Attention: Frederick W. Dreher, Esq.

Facsimile: (215) 979-1213

     9.5 Interpretation. When a reference is made in this Agreement to Articles, Sections,
Exhibits or Schedules, such reference shall be to an Article or Section of or Exhibit or Schedule
to this Agreement unless otherwise indicated. The table of contents and headings contained in this
Agreement are for reference purposes only and shall not affect in any way the meaning or
interpretation of this Agreement. Whenever the words “include,” “includes” or “including” are used
in this Agreement, they shall be deemed to be followed by the words “without limitation.” The IRGB
Disclosure Schedule and the FNB Disclosure Schedule, as well as all other schedules and all
exhibits hereto, shall be deemed part of this Agreement and included in any reference to this
Agreement. This Agreement shall not be interpreted or construed to require any person to take any
action, or fail to take any action, if to do so would violate any applicable law. Herein,
“knowledge” or “Knowledge” means the knowledge as of the date referenced of executive officers of
the applicable party following inquiry of persons within their organization and its Subsidiaries
who would be reasonably expected to be knowledgeable about the relevant subject matter.

     9.6 Counterparts. This Agreement may be executed in two or more counterparts, all of
which shall be considered one and the same agreement and shall become effective when counterparts
have been signed by each of the parties and delivered to the other party, it being understood that
each party need not sign the same counterpart.

     9.7 Entire Agreement. This Agreement, including the documents and the instruments
referred to in this Agreement, together with the Confidentiality Agreement, constitutes the entire
agreement and supersedes all prior agreements and understandings, both written and oral, between
the parties with respect to the subject matter of this Agreement, other than the Confidentiality
Agreement.

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     9.8 Governing Law; Jurisdiction.

          (a) This Agreement, the Merger and all claims arising hereunder or relating hereto, shall be
governed and construed and enforced in accordance with the laws of the Commonwealth of
Pennsylvania, without giving effect to the principles of conflicts of law thereof.

          (b) Each of the parties hereto irrevocably and unconditionally submits, for itself and its
property, to the exclusive jurisdiction of any Pennsylvania state court or the United States
District Court for the Western District of Pennsylvania, in any action or proceeding arising out of
or relating to this Agreement. Each of the parties hereto agrees that, subject to rights with
respect to post-trial motions and rights of appeal or other avenues of review, a final judgment in
any such action or proceeding shall be conclusive and may be enforced in other jurisdictions by
suit on the judgment or in any other manner provided by law. Each of the parties hereto
irrevocably and unconditionally waives, to the fullest extent it may legally and effectively do so,
any objection that it may now or hereafter have to the laying of venue of any suit, action or
proceeding arising out of or relating to this Agreement in any Pennsylvania state court or the
United States District Court for the Western District of Pennsylvania. Each of the parties hereto
irrevocably and unconditionally waives, to the fullest extent it may legally and effectively do so,
the defense of an inconvenient forum to the maintenance of such action or proceeding in any such
court.

          (c) EACH PARTY HERETO ACKNOWLEDGES AND AGREES THAT ANY CONTROVERSY WHICH MAY ARISE UNDER THIS
AGREEMENT IS LIKELY TO INVOLVE COMPLICATED AND DIFFICULT ISSUES, AND THEREFORE EACH SUCH PARTY
HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVES ANY RIGHT SUCH PARTY MAY HAVE TO A TRIAL BY JURY IN
RESPECT OF ANY LITIGATION DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT, OR
THE TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT. EACH PARTY CERTIFIES AND ACKNOWLEDGES THAT (I) NO
REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT
SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER, (II)
EACH PARTY UNDERSTANDS AND HAS CONSIDERED THE IMPLICATIONS OF THIS WAIVER, (III) EACH PARTY MAKES
THIS WAIVER VOLUNTARILY AND (IV) EACH PARTY HAS BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG
OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION 9.8.

     9.9 Severability. Except to the extent that application of this Section 9.9 would
have a Material Adverse Effect on IRGB or FNB, any term or provision of this Agreement that is
invalid or unenforceable in any jurisdiction shall, as to that jurisdiction, be ineffective to the
extent of such invalidity or unenforceability without rendering invalid or unenforceable the
remaining terms and provisions of this Agreement or affecting the validity or enforceability

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of any of the terms or provisions of this Agreement in any other jurisdiction. If any
provision of this Agreement is so broad as to be unenforceable, the provision shall be interpreted
to be only so broad as is enforceable. In all such cases, the parties shall use their reasonable
best efforts to substitute a valid, legal and enforceable provision that, insofar as practicable,
implements the original purposes and intents of this Agreement.

     9.10 Assignment; Third Party Beneficiaries. Neither this Agreement nor any of the
rights, interests or obligations under this Agreement shall be assigned by either of the parties
(whether by operation of law or otherwise) without the prior written consent of the other party.
Subject to the preceding sentence, this Agreement shall be binding upon, inure to the benefit of
and be enforceable by each of the parties and their respective successors and assigns. Except as
otherwise specifically provided in Section 6.7 and 6.13, this Agreement (including the documents
and instruments referred to in this Agreement) is not intended to and does not confer upon any
person other than the parties hereto any rights or remedies under this Agreement.

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     IN WITNESS WHEREOF, the duly authorized officers of F.N.B. Corporation and Iron & Glass
Bancorp, Inc. have executed this Agreement as of the date first above written.

	 	 	 	 	 
	 	F.N.B. CORPORATION

 	 
	 	By:  	/s/ Stephen J. Gurgovits
 	 
	 	 	Stephen J.  Gurgovits, 	 
	 	 	Chairman and Chief Executive Officer 	 
	 
	 	IRON & GLASS BANCORP, INC.

 	 
	 	By:  	/s/ Michael J. Hagan
 	 
	 	 	Michael J. Hagan, 	 
	 	 	President and Chief Executive Officer 	 
	 
	 	 	 
	 	By:  	/s/ Daniel A. Goetz
 	 
	 	 	Daniel A. Goetz, 	 
	 	 	Chairman of the Board 	 
	 

-71-exv10w1

 

Exhibit 10.1

AMENDED AND RESTATED

LIMITED LIABILITY COMPANY AGREEMENT

OF

DISCOVERY COMMUNICATIONS HOLDING, LLC

DATED

AS OF

MAY 14, 2007

 

 

Table of Contents

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	Page	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 
	ARTICLE I DEFINITIONS; CONSTRUCTION	 	 	2	 
	 	 	 	 	SECTION 1.1.	 	Definitions
	 	 	2	 
	 	 	 	 	SECTION 1.2.	 	Cross References
	 	 	5	 
	 	 	 	 	SECTION 1.3.	 	Usage Generally
	 	 	6	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 
	ARTICLE II THE COMPANY AND ITS MEMBERS	 	 	6	 
	 	 	 	 	SECTION 2.1.	 	Formation
	 	 	6	 
	 	 	 	 	SECTION 2.2.	 	Name
	 	 	6	 
	 	 	 	 	SECTION 2.3.	 	Effective Date
	 	 	6	 
	 	 	 	 	SECTION 2.4.	 	Term
	 	 	7	 
	 	 	 	 	SECTION 2.5.	 	Offices
	 	 	7	 
	 	 	 	 	SECTION 2.6.	 	Registered Office and Registered Agent
	 	 	7	 
	 	 	 	 	SECTION 2.7.	 	Purpose
	 	 	7	 
	 	 	 	 	SECTION 2.8.	 	Powers of the Company
	 	 	7	 
	 	 	 	 	SECTION 2.9.	 	Maintain Status; Qualify as a Corporation
	 	 	7	 
	 	 	 	 	SECTION 2.10.	 	Ownership of Property
	 	 	8	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 
	ARTICLE III COMPANY SHARES	 	 	8	 
	 	 	 	 	SECTION 3.1.	 	Capital Structure
	 	 	8	 
	 	 	 	 	SECTION 3.2.	 	Additional Capital Contributions
	 	 	9	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 
	ARTICLE IV MEMBERS AND MEETINGS	 	 	9	 
	 	 	 	 	SECTION 4.1.	 	No Personal Liability; No Fiduciary Duties
	 	 	9	 
	 	 	 	 	SECTION 4.2.	 	Admission of New Members
	 	 	9	 
	 	 	 	 	SECTION 4.3.	 	Resignation
	 	 	9	 
	 	 	 	 	SECTION 4.4.	 	Time and Place of Meetings
	 	 	10	 
	 	 	 	 	SECTION 4.5.	 	Annual Meeting
	 	 	10	 
	 	 	 	 	SECTION 4.6.	 	Special Meetings
	 	 	10	 
	 	 	 	 	SECTION 4.7.	 	Notice of Meetings
	 	 	10	 
	 	 	 	 	SECTION 4.8.	 	Waiver of Notice
	 	 	11	 
	 	 	 	 	SECTION 4.9.	 	Voting; Action by Written Consent
	 	 	11	 
	 	 	 	 	SECTION 4.10.	 	Representation at Member Meetings
	 	 	11	 
	 	 	 	 	SECTION 4.11.	 	Exclusive Agreement
	 	 	12	 
	 	 	 	 	SECTION 4.12.	 	Hendricks Proxy
	 	 	12	 
	 	 	 	 	SECTION 4.13.	 	Deemed Share of ANPP
	 	 	12	 

 

 

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	Page	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 
	 	 	 	 	SECTION 4.14.	 	Ownership of Similar Programming Services
	 	 	13	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 
	ARTICLE V MANAGEMENT OF THE COMPANY	 	 	13	 
	 	 	 	 	SECTION 5.1.	 	Management and Control of the Company
	 	 	13	 
	 	 	 	 	SECTION 5.2.	 	Super-Majority Provisions
	 	 	13	 
	 	 	 	 	SECTION 5.3.	 	Majority Provisions
	 	 	15	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 
	ARTICLE VI TRANSFERS	 	 	16	 
	 	 	 	 	SECTION 6.1.	 	Restrictions on Transfer; Permitted Transfers
	 	 	16	 
	 	 	 	 	SECTION 6.2.	 	Right of First Refusal
	 	 	16	 
	 	 	 	 	SECTION 6.3.	 	Appraisal Procedure
	 	 	18	 
	 	 	 	 	SECTION 6.4.	 	Documents Delivered Upon Transfer
	 	 	19	 
	 	 	 	 	SECTION 6.5.	 	Preemptive Rights
	 	 	19	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 
	ARTICLE VII ACCOUNTING; RECORDS	 	 	20	 
	 	 	 	 	SECTION 7.1.	 	Books and Records
	 	 	20	 
	 	 	 	 	SECTION 7.2.	 	Fiscal Year
	 	 	20	 
	 	 	 	 	SECTION 7.3.	 	Bank and Investment Accounts
	 	 	20	 
	 	 	 	 	SECTION 7.4.	 	Tax Matters
	 	 	21	 
	 	 	 	 	SECTION 7.5.	 	Tax Elections
	 	 	21	 
	 	 	 	 	SECTION 7.6.	 	Insurance
	 	 	21	 
	 	 	 	 	SECTION 7.7.	 	No Managers
	 	 	21	 
	 	 	 	 	SECTION 7.8.	 	Accountants
	 	 	21	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 
	ARTICLE VIII INDEMNIFICATION AND INSURANCE	 	 	21	 
	 	 	 	 	SECTION 8.1.	 	Indemnification
	 	 	21	 
	 	 	 	 	SECTION 8.2.	 	Insurance
	 	 	23	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 
	ARTICLE IX ISSUANCE OF SHARE CERTIFICATES	 	 	23	 
	 	 	 	 	SECTION 9.1.	 	Issuance of Share Certificates
	 	 	23	 
	 	 	 	 	SECTION 9.2.	 	Transfer of Share Certificates
	 	 	24	 
	 	 	 	 	SECTION 9.3.	 	Lost, Stolen or Destroyed Certificates
	 	 	24	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 
	ARTICLE X DISSOLUTION AND WINDING UP	 	 	25	 
	 	 	 	 	SECTION 10.1.	 	No Dissolution
	 	 	25	 
	 	 	 	 	SECTION 10.2.	 	Events Causing Dissolution
	 	 	25	 
	 	 	 	 	SECTION 10.3.	 	Liquidation
	 	 	25	 
	 	 	 	 	SECTION 10.4.	 	Termination
	 	 	26	 
	 	 	 	 	SECTION 10.5.	 	Claims of the Members
	 	 	26	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 
	ARTICLE XI MISCELLANEOUS	 	 	26	 

ii 

 

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	Page	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 
	 	 	 	 	SECTION 11.1.	 	Formation Expenses
	 	 	26	 
	 	 	 	 	SECTION 11.2.	 	Further Assurances
	 	 	26	 
	 	 	 	 	SECTION 11.3.	 	Notices
	 	 	26	 
	 	 	 	 	SECTION 11.4.	 	Amendments
	 	 	28	 
	 	 	 	 	SECTION 11.5.	 	Severability
	 	 	28	 
	 	 	 	 	SECTION 11.6.	 	Headings and Captions
	 	 	28	 
	 	 	 	 	SECTION 11.7.	 	Counterparts
	 	 	28	 
	 	 	 	 	SECTION 11.8.	 	Governing Law; Consent to Jurisdiction
	 	 	28	 
	 	 	 	 	SECTION 11.9.	 	Entire Agreement
	 	 	28	 
	 	 	 	 	SECTION 11.10.	 	Assignment; No Third Party Beneficiaries
	 	 	29	 
	 	 	 	 	SECTION 11.11.	 	No Right to Partition
	 	 	29	 
	 	 	 	 	SECTION 11.12.	 	Remedies
	 	 	29	 
	 	 	 	 	SECTION 11.13.	 	Specific Performance
	 	 	29	 
	 	 	 	 	SECTION 11.14.	 	Confidentiality
	 	 	29	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 
	 	 	 	 	SCHEDULES	 	 
	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 
	 	 	 	 	Schedule A	 	Members; Shares
	 	 	 	 

iii 

 

AMENDED AND RESTATED LIMITED LIABILITY COMPANY AGREEMENT

OF

DISCOVERY COMMUNICATIONS HOLDING, LLC

          This Amended and Restated Limited Liability Company Agreement (as amended, modified,
supplemented and/or restated from time to time, this “Agreement”) of Discovery
Communications Holding, LLC, a Delaware limited liability company (the “Company”), is
entered into as of the 14th day of May, 2007, by and among Advance/Newhouse Programming
Partnership, a New York general partnership (“ANPP”), LMC Discovery, Inc., a Colorado
corporation (“LMCD”), and John S. Hendricks (“Hendricks”).

          WHEREAS, the Company was formed as a limited liability company under the Act pursuant to a
Certificate of Formation, which was executed and filed with the Secretary of State of Delaware on
April 13, 2007;

          WHEREAS, on the date hereof (i) LMCD contributed 25,200 shares of Class A common stock, par
value $0.01 per share (the “DCI Class A Stock”), of Discovery Communications, Inc., a
Delaware company and predecessor to Discovery Communications, LLC (“DCI”), in exchange for
25,200 Shares (as defined below), (ii) ANPP contributed 12,599 shares of DCI Class A Stock in
exchange for 12,599 Shares, (iii) Cox Communications Holdings, Inc., a Delaware corporation
(“Cox”) contributed 12,600 shares of DCI Class A Stock in exchange for 12,600 Shares; (iv)
Hendricks contributed 1 share of DCI Class A Stock in exchange for 1 Share; and (v) LMCD, ANPP, Cox
and Hendricks entered into the Limited Liability Agreement of the Company (the “Old LLC
Agreement”);

          WHEREAS, on the date hereof, but immediately prior to the execution of this Agreement,
pursuant to the Agreement and Plan of Reorganization (the “Reorganization Agreement”),
dated as of the date hereof, by and among Cox Communications, Inc., Cox, DCI, the Company and
Travel Media, Inc., Cox exchanged (the “Cox Exchange”) all of the Shares beneficially owned
by it for all of the capital stock of Travel Media, Inc., which holds (i) the assets, liabilities
and business of The Travel Channel, and (ii) approximately $1.3 billion in cash; and

          WHEREAS, as a result of the Cox Exchange, Cox, pursuant to Section 4.3(a) of the Old LLC
Agreement, withdrew from the Company; and

          WHEREAS, LMCD, ANPP and Hendricks wish to amend and restate in its entirety the Old LLC
Agreement and continue the business of the Company.

          NOW, THEREFORE, in consideration of the agreements and obligations set forth herein and for
other good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereby agree as follows:

 

 

ARTICLE I

DEFINITIONS; CONSTRUCTION

          SECTION 1.1. Definitions. The terms defined in this Article I will, for the purposes of
this Agreement, have the meanings specified below.

          “Act” means the Delaware Limited Liability Company Act, 6 Del. C. §§ 18-101,
et seq., as amended from time to time.

          “Affiliate” means, with respect to any Member, any Person (other than the Company)
that directly or indirectly through one or more intermediaries Controls, is Controlled by, or is
under common Control with such Member.

          “Annual Business Plan” means for any fiscal year of the Company, a comprehensive
statement of the objectives and projections of the Company (including its Subsidiaries) with
respect to the operations of its business, including objectives and projections concerning capital
expenditures, cable television programming developments, license fees, subscriber discounts,
revenues, and expenses.

          “Business Day” means any day other than a Saturday, Sunday or a day when banks in New
York City are authorized or required by law to be closed.

          “Capitalized Lease Obligations” of any Person means any obligations to pay rent or
other amounts under a lease of (or other arrangement conveying the right to use) real or personal
property, or a combination thereof, which are required to be classified and accounted for as
capital leases on a balance sheet of such Person under GAAP and the amount of such obligations at
any time will be the capitalized amount thereof at such time determined in accordance with GAAP.

          “Cash Flow” means for any Person, for any period, gross operating revenues of such
Person and any Entities required to be consolidated with such Person on a financial statement in
accordance with GAAP (the “Consolidated Group”) for such period derived in the ordinary
course of business from continuing operations minus all operating expenses from continuing
operations of such Consolidated Group for such period, including technical, programming, selling,
advertising, general and administrative expenses and corporate overhead incurred to the extent
deducted in calculating operating income by such Consolidated Group during such period and all
income taxes paid, but excluding depreciation, amortization, deferred taxes and other non-cash
charges and interest expense, all the foregoing otherwise being determined in accordance with GAAP.
Interest income, extraordinary items and gains or losses on sales or dispositions of property will
be excluded from the calculation of Cash Flow. In the event of a sale, transfer or other
disposition of any asset by any member of the Consolidated Group during any period, Cash Flow will
be adjusted (i) to give effect to such sale, transfer or other disposition by excluding from Cash
Flow the actual cash flow derived from such asset as if such sale, transfer or other disposition
occurred on the first day of such period,
and (ii) by adding to Cash Flow all sale, transfer and other disposition-related operating

2

 

expenses incurred by such member in connection with the sale, transfer or other disposition of such
asset. In the event of an acquisition of any asset by any member of the Consolidated Group during
any period, Cash Flow will be adjusted (a) to give effect to such acquisition by including in Cash
Flow the actual cash flow derived from such asset as if such acquisition occurred on the first day
of such period, and (b) by adding to Cash Flow all acquisition-related operating expenses incurred
by such member in connection with the acquisition of such asset.

          “Certificate” means the Certificate of Formation for the Company originally filed with
the Delaware Secretary of State and as amended from time to time.

          “Code” means the Internal Revenue Code of 1986, as the same may be amended from time
to time.

          “Commission” means the Securities and Exchange Commission or any similar agency then
having jurisdiction to enforce the Securities Act.

          “Control” means the possession, directly or indirectly, of the power to direct or
cause the direction of the management and policies of a Person, whether through ownership of voting
securities, by agreement or otherwise. The terms “controls,” “controlled” and “controlling” will
have corresponding meanings.

          “Debt Service” means for any period, the sum of (i) all principal due and payable with
respect to any item of Indebtedness during such period and (ii) all interest, premium, commitment,
and other recurring or nonrecurring charges that are payable and should be accrued in accordance
with GAAP with respect to any item of Indebtedness during such period.

          “Exchange Act” means the Securities Exchange Act of 1934, as amended.

          “Fair Market Value” means as to any property (both tangible and intangible), the price
in cash at which a willing seller would sell and a willing buyer would buy such property having
full knowledge of the facts, in an arm’s-length transaction without time constraints, and without
being under any compulsion to buy or sell.

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

          “Immediate Family” means, with respect to any Member who is an individual, the spouse,
the siblings (by birth or adoption), and any lineal ascendants and descendants thereof and of the
spouse and siblings (by birth or adoption) thereof.

          “Indebtedness” means with respect to any Person, any indebtedness or obligations,
direct or indirect, secured or unsecured, contingent or otherwise (whether or not the recourse of
the lender is to the whole of the assets of such Person or only to a portion thereof) for borrowed
money, and any deposits or advances of any kind held by
such Person, and all obligations with respect to which interest charges are customarily

3

 

paid, and all obligations evidenced by bonds, notes, debentures or similar instruments or representing
the balance deferred and unpaid of the purchase price of any property or payment for any services
(other than accounts payable to suppliers incurred in the ordinary course of business and paid in
the ordinary course of business), if and to the extent any of the foregoing obligations or
indebtedness would appear as a liability upon a balance sheet of such Person prepared in accordance
with GAAP, and will also include, to the extent not otherwise included (but without duplication),
(i) any Capitalized Lease Obligations, (ii) obligations secured by a lien to which the property or
assets owned or held by such Person are subject, whether or not the obligation or obligations
secured thereby will have been assumed, (iii) any obligations, contingent or otherwise,
guaranteeing or having the economic effect of guaranteeing any debt or obligation of any other
Person, (iv) the face value of any letters of credit and bankers acceptances less amounts drawn
thereunder and for which reimbursement has been made, (v) the amount of any obligations of such
Person under conditional sales and title retention agreements and (vi) obligations of any such
Person under any Interest Rate Agreement applicable to any of the foregoing.

          “Member” means each of ANPP, LMCD and Hendricks and such other Persons who will become
members of the Company in accordance with the terms of this Agreement pursuant to and in accordance
with the Act.

          “Parent” means with respect to any Person, any other Person that owns directly or
indirectly through one or more Subsidiaries, more than fifty percent (50%) of the voting or
beneficial interests in such first Person.

          “Person” means any individual, partnership, company, corporation, limited liability
company, trust, estate, unincorporated association, syndicate, joint venture or unincorporated
organization, any government or any department, agency or political subdivision thereof, or any
other entity.

          “Securities Act” means the United States Securities Act of 1933, as amended.

          “Stock Purchase Agreement” means the Stock Purchase Agreement, dated as of June 23,
2003, among Hendricks, ANPP, Cox, LMCD and DCI.

          “Subsidiary” means, with respect to any Person, any corporation, partnership, joint
venture, association, or other business entity, whether now existing or hereafter organized or
acquired, (i) in the case of a corporation, in which such Person, directly or indirectly, through
one or more Subsidiaries, holds more than fifty percent (50%) of the total voting power of the
capital stock entitled (without regard to the occurrence of any contingency) to vote or (ii) in the
case of a partnership, joint venture, association or other business entity, in which such Person,
directly or indirectly, through one or more Subsidiaries, has the power to direct or cause the
direction of the management and policies of such entity by contract or otherwise.

4

 

          “The Discovery Channel” means the basic programming service consisting primarily of
documentary, science and nature programming produced by DCI for carriage on cable television
systems.

          “Transfer” means a sale, assignment, transfer, pledge, hypothecation, grant of
security interest, or other disposition, whether voluntary or by operation of law.

          “Treasury Regulations” means the income tax regulations, including temporary
regulations, promulgated under the Code, as such regulations may be amended from time to time.

          “Wholly-owned and Managed Subsidiary” means with respect to any Person, an Entity (i)
in which such Person owns, directly or indirectly, through one or more wholly-owned subsidiaries,
all the issued and outstanding equity securities or other ownership interest and (ii) in which such
Person, directly or indirectly, has the power to direct or cause the direction of the management
and policies of such Entity by contract or otherwise.

          SECTION 1.2. Cross References. Each of the following terms will have the meaning assigned
thereto in the Section of this Agreement set forth below opposite such term:

	 	 	 
	Term	 	Section
	 
	 	 
	Affiliated Person
	 	5.2(b)
	Agreement
	 	Preamble
	Annualized Cash Flow
	 	5.2(e)
	ANPP
	 	Preamble
	ANPP Proxy
	 	4.12
	Company
	 	Preamble
	Convertible Securities
	 	3.1(b)
	Cox
	 	Recitals
	Cox Exchange
	 	Recitals
	DCI
	 	Recitals
	DCI Class A Stock
	 	Recitals
	Excess Securities
	 	6.5(a)
	Expiration Date
	 	6.2(f)
	Fiscal Year
	 	7.2
	Hendricks
	 	Preamble
	Hendricks Share
	 	4.12
	Indemnitees
	 	8.1(a)
	LMCD
	 	Preamble
	Offered Shares
	 	6.2(a)
	Offeree Notice
	 	6.2(b)
	Offerees
	 	6.2(a)
	Offering
	 	6.2(b)
	Old LLC Agreement
	 	Recitals

5

 

	 	 	 
	Term	 	Section
	 
	 	 
	Requisite Holders
	 	6.3(a)
	Scheduled Closing Date
	 	6.2(d)
	Securities
	 	6.5(a)
	Shares
	 	3.1(a)
	Stated Price
	 	6.5(a)
	Third Party
	 	6.2(a)
	Third Party Offer
	 	6.2(a)
	Third Party Price
	 	6.2(a)
	Transferor
	 	6.2(a)

          SECTION 1.3. Usage Generally. The definitions in this Agreement apply equally to both the
singular and plural forms of the terms defined. Whenever the context may require, any pronoun
includes the corresponding masculine, feminine and neuter forms. All references herein to
Articles, Sections and Schedules are deemed to be references to Articles and Sections of, and
Schedules to, this Agreement unless the context otherwise requires. All Schedules attached hereto
are deemed incorporated herein as if set forth in full herein and, unless otherwise defined
therein, all terms used in any Schedule have the meanings ascribed to such term in this Agreement.
The words “include,” “includes” and “including” are deemed to be followed by the phrase “without
limitation.” The words “hereof,” “herein” and “hereunder” and words of similar import when used in
this Agreement refer to this Agreement as a whole and not to any particular provision of this
Agreement. Unless otherwise expressly provided herein, any agreement, instrument or statute
defined or referred to herein or in any agreement or instrument that is referred to herein means
such agreement, instrument or statute as from time to time amended, modified or supplemented,
including (in the case of agreements or instruments) by waiver or consent and (in the case of
statutes) by succession of comparable successor statutes and references to all attachments thereto
and instruments incorporated therein.

ARTICLE II

THE COMPANY AND ITS MEMBERS

          SECTION 2.1. Formation. The Members hereby agree to continue the Company, which was formed
as a limited liability company under the Act on April 13, 2007, for the purposes set forth in this
Article II. The Members hereby agree that the Company and its Subsidiaries will be governed by the
terms and conditions of this Agreement and, except as otherwise provided herein, the Act.

          SECTION 2.2. Name. The name of the Company will be “Discovery Communications Holding, LLC”
and the business of the Company will be conducted under that name or under any other name approved
by the Members.

          SECTION 2.3. Effective Date. This Agreement will be effective on the date hereof.

6

 

          SECTION 2.4. Term. The Company will continue until dissolved and its affairs wound up in
accordance with the Act and the terms of this Agreement.

          SECTION 2.5. Offices. The principal office of the Company will be established and
maintained in Silver Spring, Maryland, or at such other or additional place or places as the
Members will determine from time to time. The Company may have other offices at such place or
places as the Members may from time to time designate.

          SECTION 2.6. Registered Office and Registered Agent.

               (a) The registered office of the Company in the State of Delaware will be located at 160
Greentree Drive, Suite 101, City of Dover, County of Kent, Delaware 19904 or such other place
within the State of Delaware as may be determined by the Members.

               (b) The registered agent for service of process on the Company will be National Registered
Agents, Inc., or any successor registered agent appointed by the Members in accordance with the
Act.

          SECTION 2.7. Purpose. The purposes of the Company are (a) to hold all of the
outstanding equity interests of DCI and any other equity or debt interests or other securities of
any type of DCI into which such interests may be converted, and (b) to carry on any other lawful
acts or activities for which limited liability companies may be organized under the Act.

          SECTION 2.8. Powers of the Company.

               (a) The Company will have the power and authority to take any and all actions necessary,
appropriate, advisable, convenient or incidental to or for the furtherance of the purposes set
forth in Section 2.7.

               (b) The Company may enter into and perform the Credit, Pledge and Security Agreement, dated as
of May 14, 2007 (the “Credit Agreement”), among the Company, as borrower, the Lenders (as
defined therein), and Bank of America, N.A., a national banking association, as Administrative
Agent (as defined therein), and all documents, agreements, certificates, or financing statements
contemplated thereby or related thereto, all without any further act, vote or approval of any
Member or other person notwithstanding any other provision of this Agreement, the Act or applicable
law, rule or regulation. The foregoing authorization shall not be deemed a restriction on the
powers of a Member to enter into other agreements on behalf of the Company.

          SECTION 2.9. Maintain Status; Qualify as a Corporation. The Members will take such steps
as are necessary to (a) maintain the Company’s status as a limited liability company formed under
the laws of the State of Delaware and its qualification to conduct business in any jurisdiction
where the Company does business and is required to be qualified, and (b) ensure that the Company
will continue to be

7

 

treated as a corporation for United States federal, state and local tax
purposes to the extent such treatment is available.

          SECTION 2.10. Ownership of Property. Legal title to all assets, rights and property,
whether real, personal or mixed, conveyed to, or held by the Company or its Subsidiaries will
reside in the Company or its Subsidiaries and will be conveyed only in the name of the Company or
its Subsidiaries and no Member or any other Person will have any ownership of such assets, rights
or property.

ARTICLE III

COMPANY SHARES

          SECTION 3.1. Capital Structure.

               (a) The Company is authorized to issue equity interests in the Company designated as “Shares,”
which will constitute limited liability company interests under the Act (the “Shares”).
The Company may create additional classes or groups of equity interests or members having such
relative rights, powers and duties as may from time to time be approved by holders of eighty
percent (80%) or more of the issued and outstanding Shares. The capital structure of the Company
will initially consist of the Shares issued and outstanding immediately following the Cox Exchange
and set forth on Schedule A, having the powers, preferences, rights, qualifications, limitations
and restrictions as set forth herein. For the avoidance of doubt, all Shares owned by ANPP
will be deemed to include all the rights and obligations of ANPP and Hendricks under the Stock
Purchase Agreement, and references in Section 5.08 of the Stock Purchase Agreement to the
“Shareholders Agreement” will hereinafter be deemed references to this Agreement. The name and
address of each Member and the number and class (if any) of Shares owned thereby are set forth in
Schedule A of this Agreement. A Member may change its address upon notice thereof to the other
Member(s) that are still Members and the Company in accordance with this Agreement. Any reference
in this Agreement to Schedule A will be deemed to be a reference to Schedule A as amended and in
effect from time to time.

               (b) Subject to Sections 5.2 and 6.5, the Company is authorized to issue options, warrants to
purchase Shares, restricted Shares and other securities convertible, exchangeable or exercisable
for Shares (collectively, “Convertible Securities”), on such terms as may be determined by
the Members.

               (c) The Shares will have the voting rights set forth in Article IV of this Agreement and will
have all rights to any allocations and to any distributions as may be authorized and set forth
under this Agreement and under the Act.

               (d) For the avoidance of doubt, all of the rights and obligations of ANPP and Hendricks under
the Stock Purchase Agreement that applied with respect to the Hendricks DCI Share (as defined in
the Old LLC Agreement) prior to the Initial Capital Contribution (as defined in the Old LLC
Agreement), including the “Put” and

8

 

“Call” option set forth therein, will inure and apply to the
Hendricks Share (as defined below).

          SECTION 3.2. Additional Capital Contributions. None of the Members will be required to
make additional contributions to the capital of the Company.

ARTICLE IV

MEMBERS AND MEETINGS

          SECTION 4.1. No Personal Liability; No Fiduciary Duties. Except as provided in the Act, no
Member or any representative of a Member will be personally liable for any debts, liabilities, or
obligations of the Company. No Member or any representative of a Member will owe any fiduciary
duties to the Company or any other Member.

          SECTION 4.2. Admission of New Members.

               (a) Except (i) in connection with a Transfer pursuant to Article VI, or (ii) upon approval of
holders of eighty percent (80%) or more of the issued and outstanding Shares, the Company may not
admit any new Members and may not issue any new Shares.

               (b) A transferee will be admitted as a substitute Member if the Transfer to such transferee is
made in compliance with all of the requirements of Article VI (including, but not limited to, the
requirement that such transferee becomes a party to this Agreement) and such transferee complies
with all of the terms of this Agreement applicable to it related to the Transfer.

          SECTION 4.3. Resignation.

               (a) Immediately after the exercise of the “Put” or “Call” under and as such terms are defined
in the Stock Purchase Agreement, Hendricks will be deemed to have resigned and withdrawn from the
Company without any further action by Hendricks or the Company. As a result of such withdrawal,
Hendricks (i) will no longer be a Member of the Company, (ii) will not be entitled to receive any
distributions from the Company, (iii) will not otherwise be entitled to receive consideration for
his Share except pursuant to the Stock Purchase Agreement, and (iv) will not have any rights or
obligations under this Agreement other than any rights or obligations arising as a result of the
breach of this Agreement prior to such withdrawal.

               (b) Other than as provided in Section 4.3(a), the Members may not resign or withdraw from the
Company prior to the dissolution and winding up of the Company, except in connection with a
Transfer of Shares pursuant to the terms of this Agreement. A resigning Member will not be
entitled to receive any distribution and will not otherwise be entitled to receive the fair value
of its Shares except as expressly provided in this Agreement.

9

 

          SECTION 4.4. Time and Place of Meetings. Meetings of the Members will be held at the
Company’s offices, at such times and dates as are specified herein or as may be fixed from time to
time by the Members, or at such other place either within or without the State of Delaware or the
United States as may be designated from time to time by the Members and stated in the notice of the
meeting or in a duly executed waiver of the notice thereof. Meetings of Members for any other
purpose may be held at such time and place, within or without the State of Delaware or the United
States, as will be stated in the notice of the meeting or in a duly executed waiver of notice
thereof.

          SECTION 4.5. Annual Meeting. The annual meeting of the Members, if any, will be held (a)
at ten o’clock in the forenoon of the second Monday in February of each year, if this day is not a
holiday, and
if a holiday, then on the first following day that is not a legal holiday or (b) at such other time
as may be designated from time to time by the Members.

          SECTION 4.6. Special Meetings. Special meetings of the Members for any purpose or
purposes, unless otherwise provided by statute, this Agreement or any written agreement entered
into by and between the Company and all of its Members, may be called by any Member or Members
holding not less than ten percent (10%) of all the Shares entitled to vote at the meeting.
Business transacted at any special meeting of the Members will be limited to the purpose or
purposes stated in the notice, unless the Members representing a majority of the issued and
outstanding Shares entitled to vote otherwise consent thereto either at the special meeting or in
writing executed subsequent to the meeting.

          SECTION 4.7. Notice of Meetings.

               (a) Written notice stating the place, day, and hour of the meeting and, in case of a special
meeting, the purpose for which the meeting is called must be delivered not less than ten (10) days
nor more than fifty (50) days before the date of the meeting, either personally, by facsimile, by
mail, by the Secretary of the Company to each Member of record of Shares entitled to vote at such
meeting. Notice to Members, if mailed, will be deemed delivered as to any Member when deposited in
the U. S. mail, addressed to the Member, with postage prepaid, but, if two successive letters
mailed to the last-known address of any Member are returned as undeliverable, no further notices to
such Member will be necessary until another address for such Member is made known to the Company.
Notice to Members, if by facsimile, will, if sent during normal business hours of the recipient, be
deemed delivered on the date of receipt of transmission to the facsimile number provided by or on
behalf of the Member being mechanically acknowledged and, if not sent during normal business hours,
on the next Business Day.

               (b) When a meeting is adjourned to another time or place, notice need not be given of the
adjourned meeting if the time and place thereof are announced at the meeting at which the
adjournment is taken. At the adjourned meeting, the Company may transact any business which might
have been transacted at the original meeting. If the adjournment is for more than thirty (30)
days, a notice of the adjourned meeting will be given to each Member holding Shares entitled to
vote at the meeting. No

10

 

meeting will be adjourned for more than sixty (60) days, whether by way of
a single adjournment or multiple adjournments.

          SECTION 4.8. Waiver of Notice.

               (a) When any notice is required to be given to any Member of the Company under the provisions
of this Agreement, a waiver thereof in writing signed
by the Person entitled to such notice, whether before, at, or after the time stated therein,
will be equivalent to the giving of such notice.

               (b) By attending a meeting, a Member:

                    (i) Waives objection to lack of notice or defective notice of such meeting unless the Member,
at the beginning of the meeting, objects to the holding of the meeting or the transacting of
business at the meeting; and

                    (ii) Waives objection to consideration at such meeting of a particular matter not within the
purpose or purposes described in the meeting notice unless the Member objects to considering the
matter when it is presented.

          SECTION 4.9. Voting; Action by Written Consent. Except as otherwise set forth in this
Agreement, with respect to any matter submitted to a vote of the Members, each Member will be
entitled to one vote per Share held by such Member. Any action required or permitted to be taken
at any meeting of the Members may be taken without a meeting if Members holding not less than the
minimum number of Shares that would be necessary to approve the action pursuant to the terms of
this Agreement, consent thereto in writing, and the writing or writings are filed with the minutes
of the proceedings of the Members. In no instance where action is authorized by written consent
will a meeting of Members be called or notice be given; however, a copy of the action taken by
written consent will be filed with the records of the Company. Written consent by the Members
pursuant to this Section 4.9 will have the same force and effect as a vote of such Members taken at
a duly held meeting of the Members.

          SECTION 4.10. Representation at Member Meetings

               (a) Authorized Representatives. Each Member (other than a Member that is an
individual) will designate one individual who will act as such Member’s authorized representative
at each meeting of the Members. Each Member (other than a Member that is an individual) may, if it
so chooses, designate one alternate representative who may act instead of the authorized
representative at any meeting of the Members in the event that the authorized representative is,
for any reason, unavailable to attend such meeting. Each such authorized representative and
alternate representative will present a certified resolution in a form reasonably satisfactory to
the Secretary of the Company evidencing the designation of him or her as an authorized
representative or alternate representative. Each authorized representative or alternate
representative will serve for such term as provided in the certified resolution or until he or she
is replaced or removed by the Member that designated him or her. Such replacement or removal will
become effective upon receipt by the Secretary of the Company of a certified resolution

11

 

in a form reasonably satisfactory to the Secretary. In the event that both the authorized representative and
the alternate representative are unavailable to attend a specific meeting, a Member may designate a
substitute representative for that meeting. Such substitute representative will present a
certified resolution in a form reasonably
satisfactory to the Secretary of the Company evidencing the designation of him or her as a
substitute representative for purposes of that meeting only.

               (b) Voting Authority and Proxies. A Member may vote in person, through its authorized
representative, alternative representative or substitute representative, or by proxy executed in
writing by the Member or by his, her or its duly authorized attorney-in-fact. No proxy will be
valid after three (3) years from the date of its execution unless otherwise provided in the proxy.

          SECTION 4.11. Exclusive Agreement. Except as expressly authorized by this Agreement, none
of the Members will enter into a voting trust or voting agreement with any other Person, give a
proxy to any other Person, or otherwise agree with any other Person to restrict or limit the power
to vote its Shares. This Section will not be deemed to preclude any Member or any of such Member’s
officers or agents from freely discussing at any time affairs of the Company with any other Person
and disclosing to such Person the position of such Member with respect to any issue concerning the
Company, provided that, except as expressly authorized by this Agreement, such Member does not
enter into a binding agreement concerning its voting with respect to such affairs or issues.

          SECTION 4.12. Hendricks Proxy. Notwithstanding Section 4.11 above, upon the receipt by
Hendricks of one Share pursuant to the Old LLC Agreement (the “Hendricks Share”), pursuant
to the terms of the Stock Purchase Agreement Hendricks granted to ANPP a proxy to vote the
Hendricks Share (the “ANPP Proxy”) at any time and from time to time in accordance with the
terms of the Stock Purchase Agreement. Unless earlier terminated in accordance with the terms of
the Stock Purchase Agreement, the ANPP Proxy will be and remain in effect for so long as Hendricks
will be the record owner of the Hendricks Share. ANPP may assign the ANPP Proxy only in accordance
with the terms of the Stock Purchase Agreement.

          SECTION 4.13. Deemed Share of ANPP. Prior to the exercise of the “Put” or “Call” under and
as such terms are defined in the Stock Purchase Agreement, the books and records of the Company
will reflect that Hendricks owns of record the Hendricks Share. Notwithstanding such record
ownership of the Hendricks Share, for all purposes of this Agreement, (i) ANPP will be deemed to be
the beneficial owner of the Hendricks Share, and (ii) the Company will be entitled to rely upon any
and all written directions and instructions from ANPP regarding the exercise of, or failure to
exercise, any and all rights and benefits associated with the Hendricks Share, and other than a
direction with respect to an assignment of record ownership made in accordance with the Stock
Purchase Agreement, the Company will not rely on or follow any such written directions or
instructions from Hendricks with respect to the Hendricks Share. So long as Hendricks is the
record owner of the Hendricks Share, (x) no party hereto will be prohibited or otherwise restricted
in any manner from making any public communication

12

 

(written or oral) that Hendricks is a Member (notwithstanding that Hendricks is not the beneficial owner of any Shares) and (y) unless
otherwise required by law, rule or regulation, no party hereto will disclose in any public
communication that Hendricks is anything less than a Member (notwithstanding that Hendricks is not
the beneficial owner of any Shares).

          SECTION 4.14. Ownership of Similar Programming
Services. No Member or its Parent or any of such Member’s Wholly-owned and Managed
Subsidiaries will start, or acquire a majority of the voting equity interest in, another basic
programming service carried by or to be carried by cable systems in the United States consisting
primarily of documentary, science and nature programming; provided, however, that
nothing herein contained will require any Member, its Parent or any of its Wholly-owned and Managed
Subsidiaries to dispose of an investment in any such service if such Member, its Parent or any of
its Wholly-owned and Managed Subsidiaries does not own a majority of the voting equity interest in
such service and such service substantially changed its programming subsequent to such Person’s
investment therein.

ARTICLE V

MANAGEMENT OF THE COMPANY

          SECTION 5.1. Management and Control of the Company. The business and affairs of the
Company will be managed, operated and controlled by or under the direction of the Members pursuant
to the provisions of the Act and in accordance with the terms of this Agreement.

          SECTION 5.2. Super-Majority Provisions. Notwithstanding any other provision contained in
this Agreement or in the Company’s Certificate or in DCI’s organizational documents, none of the
following actions may be taken by or on behalf of the Company and the Company will not permit DCI
or any of its Subsidiaries to take any of the following actions without the affirmative vote or
written consent of the holders of eighty percent (80%) or more of the issued and outstanding Shares
entitled to vote thereon:

               (a) Any fundamental change in the business of the Company and its Subsidiaries from the
business of the Company and such Subsidiaries as presently conducted;

               (b) Any transaction entered into subsequent to the date hereof between (x) the Company or any
of its Subsidiaries, and (y) a Member or an Affiliate thereof or, if applicable, a member of the
Immediate Family thereof (the Persons specified in this clause (y) the “Affiliated
Persons”), including the amendment of any currently outstanding agreement between the Company
or any of its Subsidiaries and an Affiliated Person;

               (c) (i) the election or the removal of the Chairman and/or Chief Executive Officer of DCI,
(ii) the election or the removal of the chief operating officer of DCI or of any operating division
or Subsidiary thereof, or (iii) the election or removal of any of the officers of DCI or any of its
Subsidiaries, other than such officers which the

13

 

Members, by written consent of holders of eighty
percent (80%) of the issued and outstanding Shares entitled to vote, have authorized the Chairman
and Chief Executive Officer of DCI to appoint;

               (d) Any merger, reorganization, consolidation, or dissolution of the Company or any of its
Subsidiaries, or any sale of any assets of the Company or any of its Subsidiaries outside of the
ordinary course of business;

               (e) the incurrence of Indebtedness by or on behalf of the Company or any of its Subsidiaries
if (i) such Indebtedness, together with all other Indebtedness of the Company and its Consolidated
Group, would exceed four (4) times the Cash Flow of the Company and its Consolidated Group for the
last four (4) consecutive calendar quarters (the “Annualized Cash Flow”) or (ii) the Debt
Service for the next twelve (12) calendar months related to such Indebtedness, together with the
Debt Service for the next twelve (12) calendar months for all other Indebtedness of the Company and
its Consolidated Group, would exceed sixty-six percent (66%) of the Annualized Cash Flow of the
Company and its Consolidated Group;

               (f) the authorization, issuance (other than the issuance to the Company of any equity
securities of any entity if subsequent to such issuance, such entity would be a wholly-owned
Subsidiary of the Company or the issuance of new certificates evidencing Shares which have been
transferred in accordance with Section 6.1(a) or certificates issued in replacement of certificates
which have been lost or stolen), reclassification or recombination of any equity security of the
Company or its Subsidiaries, including the Shares and any Convertible Securities, including the
award, grant, or issuance (except as permitted aforesaid) of any such securities to any employee of
the Company or any Subsidiary thereof; or the repurchase or reacquisition of any of the foregoing
by the Company from any Member;

               (g) any offering of any security of the Company or any of its Subsidiaries which would
constitute a “public offering” within the meaning of the Securities Act;

               (h) any amendment to the Certificate or the organizational documents of the Company or its
Subsidiaries;

               (i) any formulation or substantial change in the service distribution policy and practice of
the Company or any of its Subsidiaries, including the imposition of, or increase or change in, any
subscriber license fee;

               (j) the adoption of each Annual Business Plan; provided, however, that if such
eighty percent (80%) vote has not been obtained by the earlier of (i) sixty (60) days after the
initial presentation of such Annual Business Plan for a vote of
the Members or (ii) February 1 of the fiscal year of the Company to which such proposed Annual
Business Plan relates, then, the Annual Business Plan for such fiscal year will be set at the
revenue and expense levels for the previous fiscal year, adjusted to take into account (x) the
operation of escalation or de-escalation provisions in contracts,

14

 

agreements and commitments
entered into by the Company and its Subsidiaries in accordance with this Agreement and (y) the
anticipated incurrence of costs during such fiscal year for any legal fees or disbursements
relating to any civil or criminal lawsuit, governmental inquiry, or administrative or other
proceedings approved in any previously approved Annual Business Plan;

               (k) any material deviation from the Annual Business Plan of the Company for the applicable
fiscal year in addition to those described in Section 5.2(m);

               (l) the institution by the Company or any of its Subsidiaries of any litigation, including by
counter-claim or cross-claim, having an aggregate amount in dispute in excess of One Hundred Fifty
Thousand Dollars ($150,000) or any request for injunctive or other equitable relief;
provided, however, that if such litigation is of such a nature that its institution
or subsequent determination against the Company or its Subsidiaries could have a materially adverse
effect on the Company or any of the Members, a vote of the Members under this Section 5.2 will be
required regardless of the amount in dispute or type of relief requested;

               (m) the entering into by the Company or any of its Subsidiaries of any contract or transaction
or series of related contracts or transactions in excess of $1,000,000 unless (i) approval thereof
has already been given in connection with the adoption of the Annual Business Plan for the
applicable fiscal year or (ii) in the case of programming, the cost of such contract or transaction
or series of related contracts or transactions is within the budget for programming in the Annual
Business Plan for the applicable fiscal year;

               (n) any modification to or cancellation of the Company’s advertising rebate plan with respect
to The Discovery Channel;

               (o) any transaction, contract or understanding with or commitment to a Person outside the
ordinary course of business of the Company and its Subsidiaries; and

               (p) the declaration or payment of dividends or other distributions by the Company or any of
its Subsidiaries (other than the declaration or payment of dividends or distributions from a
wholly-owned Subsidiary of DCI to DCI or from DCI to the Company).

          SECTION 5.3. Majority Provisions. Except as provided in Section 5.2 and except for those
actions of the Company for which a higher percentage vote is required by the Act, all actions of
the Company will be taken by the affirmative vote or written consent of the holders of a majority
of the issued and outstanding Shares entitled to vote thereon; provided, that, no such action will become
effective prior to the tenth business day after the Company provides each Member with written
notice of such action, which notice describes in reasonable detail such actions to be taken.

15

 

ARTICLE VI

TRANSFERS

          SECTION 6.1. Restrictions on Transfer; Permitted Transfers. No Member will be permitted to Transfer any Shares in any manner or by any means whatsoever,
except for the following Transfers which will be permitted, provided that the Transfer is made in
accordance with the applicable requirements of this Article VI:

               (a) any Transfer by a Member of Shares to an Affiliate thereof;

               (b) any Transfer by a Member of Shares pursuant to a Third Party Offer in compliance with the
provisions of Section 6.2; and

               (c) any Transfer of the Hendricks Share to ANPP or any of its Affiliates, or to any transferee
of the rights of ANPP under the Stock Purchase Agreement, in each case in accordance with the terms
and conditions of the Stock Purchase Agreement.

          SECTION 6.2. Right of First Refusal.

               (a) Prior to any proposed Transfer of Shares (other than a Transfer described in Section
6.1(a) or 6.1(c)), the Member proposing to transfer such Shares (the “Transferor”) will be
required to obtain a bona fide, non-collusive, binding arm’s-length written offer, subject only to
customary conditions, with respect to the proposed Transfer (a “Third Party Offer”) from a
third party that is not an Affiliate of such Transferor (the “Third Party”) which the
Transferor desires to accept. The Third Party Offer must not be subject to unstated conditions or
contingencies or be part of a larger transaction such that the price for the Shares proposed to be
transferred in the Third Party Offer (the “Offered Shares”) does not accurately reflect the
Fair Market Value of such Offered Shares, and the Third Party Offer will contain a description of
all of the consideration, material terms and conditions for the proposed Transfer. The Transferor
will send a copy of the Third Party Offer which will include the identity of the Third Party to
each of the Members (the “Offerees”), together with a written offer to sell the Offered
Shares to the Offerees at the Third Party Price. For purposes hereof, the “Third Party
Price” means the amount of consideration set forth in the Third Party Offer, which, if all or
part of such consideration is in cash, will be that amount in cash, and as to any consideration in
the Third Party Offer which is not in cash, will be deemed to be an amount equal to the Fair Market
Value of such consideration as determined pursuant to Section 6.3.

               (b) The Transferor through such notice will offer the Offered Shares to all of the Offerees (a
“Offering”) and each of the Offerees will have thirty (30) days from the receipt of written
notice from the Transferor, or if later within ten (10) days after determination of all non-cash
parts of the Third Party Price to give written notice to the Transferor of their respective
elections to purchase the Offered Shares. The

16

 

Transferor will notify each Offeree as to the number
of Offered Shares remaining within three (3) days following such election (the “Offeree
Notice”).

               (c) If the Offerees have not elected to purchase all the Offered Shares within the applicable
election period, each Offeree will have an additional seven (7) days from receipt of the Offeree
Notice to elect to purchase the remaining Offered Shares. If the offer to sell the Offered Shares
in an Offering is oversubscribed at the expiration of any election period, such Offered Shares and
the Third Party Price in respect thereof will be allocated on a pro rata basis among the Offerees,
which have elected to purchase Offered Shares so that such electing Offeree will receive a portion
of the Offered Shares which bears the same ratio to the Offered Shares as the Shares of each
electing Offeree bear to the total number of Shares owned collectively by all such electing
Offerees, or as may otherwise be agreed among such electing Offerees, provided that no Offeree
which elects to purchase Offered Shares will be required to purchase more Offered Shares than the
amount set forth in its election.

               (d) Subject to Section 6.2(e) and Section 6.2(f), the closing of the sale to the Offerees
pursuant to an Offering will be held at the offices of the Company on the tenth day after the date
of the last notice to the Transferor of an Offeree’s election to purchase the Offered Shares (the
“Scheduled Closing Date”). Contemporaneously with such closing, the Transferor will
deliver a certificate or certificates representing the Offered Shares, properly endorsed for
transfer and with all necessary transfer or documentary stamps, if any, affixed and free and clear
of all liens, restrictions or encumbrances against receipt from each purchasing Offeree of the
Third Party Price or allocable portion thereof in cash or by certified or bank cashier’s check or
wire or interbank transfer of funds.

               (e) The obligation of a Transferor and a purchasing Offeree to proceed with the closing on the
Scheduled Closing Date and the obligation of a Transferor and a Third Party to consummate a
Transfer prior to the Expiration Date (as hereinafter defined) will be conditioned upon and the
Scheduled Closing Date or the Expiration Date, as applicable, will be extended to a date which is
ten (10) days following the last to occur of, (i) the expiration (or earlier termination) of any
applicable waiting period and, if extended, the extended waiting period under the Hart-Scott-Rodino
Antitrust Improvements Act of 1976, as amended, and (ii) the receipt of all material governmental
and regulatory consents, approvals or waivers that may be required in connection with the purchase
and sale of the Offered Shares; provided, however, that neither the Transferor nor
the purchasing Offerees (unless in material breach of their obligations hereunder) will be
obligated to proceed with the closing of the purchase and sale of the Offered Shares in the event
that such conditions have not been satisfied on or before the 90th day following the original
Scheduled Closing Date. The Transferor and the purchasing Offerees will use all reasonable efforts
to cooperate with each other or
with a third party to promptly make all filings, give all notices and secure all consents,
approvals and waivers that may be required in connection with the purchase and sale of the Offered
Shares.

17

 

               (f) Notwithstanding the provisions of Section 6.2(a) through (e), elections to purchase made
by the Offerees will not be binding on the Transferor if (x) the Offerees have not elected by the
conclusion of the offering period to purchase all of the Offered Shares or (y) the Offerees have
not closed on the purchase of all the Offered Shares by the Scheduled Closing Date in accordance
with the terms hereof. In such event, no sales pursuant to such elections will be required to be
made by the Transferor and the Transferor will have the right for a period of ninety (90) days
after the expiration of the last election period in Section 6.2(b) or, if later, the last date for
the closing of such purchase under Section 6.2(d) or Section 6.2(e) (such later date being the
“Expiration Date”), as appropriate, to sell all but not less than all of the Offered
Shares, but only to the Third Party for a price (including any non-cash consideration in the Third
Party Offer) and on terms no more favorable to the Third Party than the Third Party Price and the
terms of the Third Party Offer. The Third Party will prior to any Transfer execute and deliver to
the Company the documents required by Section 6.4. If such Offered Shares are not sold prior to
the Expiration Date, all rights to sell such Offered Shares pursuant to such Third Party Offer,
without making another offer to the Offerees pursuant to this Section 6.2, will terminate and the
provisions of this Article VI will continue to apply to any proposed Transfer in the future.

          SECTION 6.3. Appraisal Procedure.

               (a) The Fair Market Value of any non-cash consideration included in a Third Party Offer will
be determined by agreement between the Transferor and those Offerees holding seventy-five percent
(75%) or more of the issued and outstanding Shares owned by the Offerees (the “Requisite
Holders”) or, in the event the Transferor and the Requisite Holders have not agreed upon such
Fair Market Value by the tenth (10th) day following the date of the Transferor’s notice, such Fair
Market Value will be determined by appraisal pursuant to paragraph (b) hereof.

               (b) If the Transferor and the Offerees have failed to agree upon the Fair Market Value of any
non-cash consideration as provided above, such Fair Market Value will be determined by appraisal
pursuant to this Section 6.3(b). Within ten (10) days after the determination for the need for an
appraisal, the Offerees (by a vote of the Offerees holding a majority of the Shares held by all the
Offerees) will designate one appraiser experienced in such appraisals, and the Transferor will
designate one such appraiser. Within thirty (30) days after their selection, the two appraisers so
selected will each determine the Fair Market Value of such non-cash consideration. In the event
such determinations vary by less than ten percent (10%) of the higher determination, such Fair
Market Value will equal the average of the two determinations. If such determinations vary by ten
percent (10%) or more of the higher determination, the two appraisers will promptly designate a
third appraiser with similar qualifications. No Member will
provide, and the selecting Members will instruct the two appraisers initially selected not to
provide, any information to the third appraiser as to the determinations of the two appraisers
initially selected, or otherwise influence such third appraiser’s determination in any way. The
third appraiser will make a determination of the Fair Market Value within thirty (30) days after
its selection. The Fair Market Value will be equal to the average of the two closest
determinations of the three appraisers, or, if the difference

18

 

between the highest and middle
determination is equal to the difference between the middle and lowest determination, then the Fair
Market Value will be equal to the middle determination. The Fair Market Value determined pursuant
to this Section will be binding and conclusive on the Transferor and all Offerees. Any appraisal
cost incurred under this Section 6.3 will be borne by the Transferor.

          SECTION 6.4. Documents Delivered Upon Transfer. Any proposed transferee of Shares pursuant to any Section of this Article VI or any proposed
purchaser of Shares pursuant to Section 6.5 that is not a party to this Agreement, will, prior to
such Person’s acquisition or subscription of Shares, execute and deliver to the Company (i) an
opinion of counsel reasonably satisfactory to the Company to the effect that such Transfer would
not be in violation of the Securities Act or the Act; and (ii) a written agreement to the effect
that (x) the Shares so transferred will continue to be subject to all the restrictions and other
provisions of this Agreement and (y) the transferee will be bound by and assume all obligations and
restrictions under this Agreement as if such transferee were an original party hereunder and as if
all references in this Agreement to “Member” referred to such transferee.

          SECTION 6.5. Preemptive Rights.

               (a) The Company will give to each Member written notice of the intention of the Company to
issue or sell any Shares or any Convertible Securities (the “Securities”). Such notice
will set forth the terms of such proposed issuance or sale, including the price at which the
Securities will be issued or sold (the “Stated Price”), and will be given at least thirty
(30) days prior to the issuance or sale of such Securities. Each Member may elect to purchase up
to that percentage of the Securities to be sold or issued equal to such Member’s percentage of the
total number of Shares on a fully-diluted basis immediately prior to such issuance or sale. A
Member may exercise such election by giving written notice thereof to the Company before the end of
the tenth business day after receipt by such Member of the notice from the Company. Such Member’s
notice will state the number of Securities to be purchased pursuant to such election. If any
Member elects not to purchase all of the Securities to which such Member is entitled hereunder, the
Company will notify the Members of the availability of such excess Securities (the “Excess
Securities”) within ten (10) days after the expiration of the above election period. Each
Member will have the right to elect to purchase such Excess Securities by giving notice of its
election within ten (10) days after the receipt of the notice from the Company. If the Members
elect to purchase hereunder an amount of Securities in excess of the number of Excess Securities,
such Excess Securities will be
allocated among the electing Members on a pro rata basis based upon the proportion that the
number of Shares owned by each electing Member bears to the number of Shares owned collectively by
all the electing Members.

               (b) If a Member exercises its right of election pursuant to clause (a) above, the closing of
such purchase and sale will take place within ten (10) days after the last Member gives notice of
its election. At the closing, the Company will deliver to any electing Member or an Affiliate
thereof (provided such Affiliate has complied with the provisions of Section 6.4), if applicable,
the certificate or certificates

19

 

representing the number of Securities set forth in such Member’s
notice of election against payment by the Member or an Affiliate thereof, if applicable, by cash or
certified or bank cashier’s check or by wire or interbank transfer of funds of the Stated Price.

               (c) If the Members do not elect pursuant to clause (a) above to subscribe for all the
Securities proposed to be issued or sold by the Company, the Company will have the right to issue
and sell any such Excess Securities, provided that any purchaser thereof becomes a party to this
Agreement.

ARTICLE VII

ACCOUNTING; RECORDS

          SECTION 7.1. Books and Records.
The books and records of the Company will be kept, and the financial position and the results of
its operations recorded, in accordance with GAAP. The books and records of the Company will
reflect all the Company transactions and will be appropriate and adequate for the Company’s
business. The Company will maintain, at the Company’s expense, at its principal office all of the
following:

               (a) A current list of the full name and last known business or residence address of each
Member set forth in alphabetical order;

               (b) A copy of the Certificate and any and all amendments thereto together with executed copies
of any powers of attorney pursuant to which the Certificate or any amendments thereto have been
executed;

               (c) A copy of this Agreement and any and all amendments thereto;

               (d) Copies of the Company’s or it predecessor’s federal, state, and local income tax or
information returns and reports, if any, for the six (6) most recent taxable years; and

               (e) Copies of the financial statements of the Company and its Subsidiaries for the six (6)
most recent Fiscal Years.

               (f) The Company’s and its Subsidiaries’ books and records as they relate to the internal
affairs of the Company and its Subsidiaries for at least the current and past four (4) Fiscal
Years.

          SECTION 7.2. Fiscal Year. The fiscal year of the Company will end on December 31 of each year (a “Fiscal Year”).

          SECTION 7.3. Bank and Investment Accounts. All funds of the Company will be deposited in its name, or in such name as may be designated by
the Members, in such checking, savings or other accounts, or held in its name in the form of such
other investments, as will be designated by the Members. The funds of the

20

 

Company will not be
commingled with the funds of any other Person. All withdrawals of such deposits or liquidations of
such investments by the Company will be made exclusively upon the signature or signatures of such
officer or officers of the Company as the Members may designate.

          SECTION 7.4. Tax Matters. The Company will cause its accountants to prepare all of the tax returns of the Company and its
Subsidiaries and will cause the same to be filed in a timely manner. The Company will furnish to
each Member a copy of each such tax return.

          SECTION 7.5. Tax Elections. The Company will make the elections pursuant to Treasury Regulation §301.7701-3 and Form 8832 to
be treated as a corporation for United States federal income tax purposes For United States
federal income tax purposes, the Company will make any other elections agreed upon by the Members
from time to time; provided, that the election to be taxed as a corporation will not be
revoked or changed. The Company will also timely prepare and file any similar elections that may
be required under state or local income tax laws.

          SECTION 7.6. Insurance. The Company will obtain and will cause to be carried on its behalf, including, if available to
be so extended, through one or more policies of the Members or their Affiliates, such amount of
property, liability and workers’ compensation insurance and other insurance as is customarily
carried by corporations of similar size and exposure to the Company and its Subsidiaries and in a
similar line of business or required by law.

          SECTION 7.7. No Managers. The Company will not have any managers (as such term is used in Subchapter IV of the Act).

          SECTION 7.8. Accountants. The independent certified public accountants for the Company will be PricewaterhouseCoopers LLP
or such other firm of independent certified public accountants as the Members will hereafter
select.

ARTICLE VIII

INDEMNIFICATION AND INSURANCE

          SECTION 8.1. Indemnification.

               (a) Each officer, employee, agent and representative of the Company, and each Member and
Affiliate of a Member and their respective, officers, directors, employees, representatives,
agents, shareholders, partners, directors, members of limited liability companies, or Persons who
are deemed to Control or manage the Company (collectively, the “Indemnitees”) will not be
liable to the Company or any other Indemnitee by reason of any act or omission performed or omitted
by such Indemnitee in good faith on behalf of the Company and in a manner reasonably believed by
such Indemnitee to be in the best interests of the Company and within the scope of authority
conferred on such Indemnitee by this Agreement or the Members, except that an Indemnitee will be
liable for any such loss, damage or claim incurred by reason of such

21

 

Indemnitee’s fraud, gross negligence or willful misconduct. Any act or omission by an Indemnitee if done in reliance upon
the opinion of legal counsel or public accountants selected in good faith with the exercise of
reasonable care by such Indemnitee on behalf of the Company, will be conclusively presumed not to
constitute fraud, gross negligence or willful misconduct on the part of such Indemnitee.

               (b) The liability of Members to the Company is set forth in Section 4.1 of this Agreement. No
amendment or repeal of any of the provisions of this Agreement or the Certificate will limit or
eliminate the benefits provided to the Members under Section 4.1 or this Article VIII with respect
to any act or omission which occurred prior to such amendment or repeal.

               (c) The Company will, to the fullest extent permitted by applicable law, indemnify and hold
harmless any Indemnitee who was or is a party or is threatened to be made a party to any
threatened, pending or completed action, suit or proceeding, whether civil, criminal,
administrative or investigative (including an action by or in the right of the Company, or by any
Member) by virtue of acts performed by the Indemnitee or omitted to be performed by the Indemnitee,
against expenses (including attorneys’ fees), judgments, fines and amounts paid in settlement
actually and reasonably incurred by him or it in connection with such action, suit or proceeding;
provided, however, that the Company will not be liable to any Indemnitee to the
extent that in the final judgment of a court of competent jurisdiction such claim is found to arise
from such Indemnitee’s fraud, gross negligence or willful misconduct. Expenses incurred by an
Indemnitee in defending a civil, criminal, administrative or investigative action, suit or
proceeding arising out of or in connection with this Agreement or the Company’s business or affairs
will be paid by the Company in advance of the final disposition of such action, suit or proceeding
upon receipt of any undertaking by the Indemnitee to repay such amount plus reasonable interest in
the event that it will ultimately be determined that the Indemnitee was not entitled to be
indemnified by the Company in connection with such action. The foregoing rights of indemnification
will not be exclusive of any other rights to which the Indemnitee may be entitled.

               (d) For purposes of this Article VIII, the termination of any action, suit or proceeding by
judgment, order, settlement or otherwise will not, of itself, create a presumption that the conduct
of an Indemnitee constituted fraud, gross negligence or willful misconduct.

               (e) If a claim under Section 8.1 is not paid in full by the Company within sixty (60) days
after a written claim has been received by the Company, except in the case of a claim for expenses
incurred in defending a suit, action or proceeding in advance of its final disposition, in which
case the applicable period will be twenty (20) days, the claimant may at any time thereafter bring
an action against the Company to recover the unpaid amount of the claim and, to the extent
successful in whole or in part, the claimant will be entitled to be paid also the expense of
prosecuting such claim. The claimant will be presumed to be entitled to indemnification under this
Section 8.1 upon submission of a written claim (and, in an action brought to enforce a claim for
expenses incurred in defending any suit, action or proceeding in advance of its

22

 

final disposition,
upon tender of any required undertaking) and thereafter the Company will have the burden of proof
to overcome the presumption that the claimant is so entitled. Neither the failure of the Company
(including its members or independent legal counsel) to have made a determination prior to the
commencement of such action that indemnification of the claimant is proper in the circumstances nor
an actual determination by the Company (including its members or independent legal counsel) that
the claimant is not entitled to indemnification will be a defense to the action or create a
presumption that the claimant is not so entitled. If an action is brought pursuant to this section
a final nonappealable order in such action will constitute the ultimate determination of the
claimant’s right to indemnification.

               (f) The indemnification rights contained in this Article VIII will be cumulative of, and in
addition to, any and all rights, remedies and recourse to which the Indemnitee will be entitled,
whether pursuant to the provisions of this Agreement, at law, or in equity. Indemnifications will
be made solely and entirely from the Company’s assets, and no Member will be personally liable to
the Indemnitees under this Article.

               (g) Notwithstanding anything herein to the contrary, the exculpation rights set forth in
Section 8.1(a) and the indemnification, hold harmless, advancement and other rights set forth in
Section 8.1(c) will not be available in any action, suit or proceeding involving any claim by a
Member or any Person who Controls such Member, against any other Member or any Person who Controls
such Member.

               (h) The Company may enter into indemnity agreements from time to time with any Person entitled
to be indemnified by the Company hereunder, provided such indemnity agreements are (i) in form and
substance consistent with the foregoing and (ii) are approved by the Members.

          SECTION 8.2. Insurance. The Company will have the power to purchase and maintain insurance on behalf of any Person who
is or was an agent of the Company against any liability asserted against such Person and incurred
by such Person in any such capacity, or arising out of such Person’s status as an agent, whether or
not the Company would have the power to indemnify such Person against such liability under the
provisions of Section 8.1 or under applicable law.

ARTICLE IX

ISSUANCE OF SHARE CERTIFICATES

          SECTION 9.1. Issuance of Share Certificates. The issued and outstanding Shares will be represented by certificates. In addition to any other
legend required with respect to a particular class, group or series of Shares or pursuant to any
agreement among the Members and the Company, each such Share certificate will bear the following
legend:

23

 

THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR THE SECURITIES LAWS OF ANY
STATE. THE SECURITIES MAY NOT BE TRANSFERRED EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION
STATEMENT UNDER SUCH ACT AND APPLICABLE STATE SECURITIES LAWS OR PURSUANT TO AN APPLICABLE
EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF SUCH ACT AND SUCH LAWS OR PURSUANT TO A
WRITTEN OPINION OF COUNSEL FOR THE COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED.

THE SALE, ASSIGNMENT, HYPOTHECATION, PLEDGE, ENCUMBRANCE OR OTHER DISPOSITION (EACH A
“TRANSFER”) AND VOTING OF ANY OF THE SECURITIES REPRESENTED BY THIS CERTIFICATE ARE
RESTRICTED BY THE TERMS OF THE AMENDED AND RESTATED LIMITED LIABILITY COMPANY AGREEMENT,
DATED AS OF MAY 14, 2007, AS IT MAY BE AMENDED FROM TIME TO TIME, AMONG THE MEMBERS NAMED
THEREIN, A COPY OF WHICH MAY BE INSPECTED AT THE COMPANY’S PRINCIPAL OFFICE. THE COMPANY
WILL NOT REGISTER THE TRANSFER OF SUCH SECURITIES ON THE BOOKS OF THE COMPANY UNLESS AND
UNTIL THE TRANSFER HAS BEEN MADE IN COMPLIANCE WITH THE TERMS OF THE LIMITED LIABILITY
COMPANY AGREEMENT.

          SECTION 9.2. Transfer of Share Certificates. A Share which is transferred in accordance with the terms of Article VI of this Agreement will
be transferable on the books of the Company by the record holder thereof in person or by such
record holder’s duly authorized attorney, but, except as provided in Section 9.3 hereof with
respect to lost, stolen or destroyed certificates, no Transfer of a Share will be entered until the
previously issued certificate representing such Shares will have been surrendered to the Company
and canceled and a replacement certificate issued to the assignee of such Shares in accordance with
such procedures as the Members may establish. The Company will issue to the Transferor a new Share
certificate representing the Shares not being Transferred by the Member, in the event such Member
only Transferred some, but not all, of the Shares represented by the original Share certificate.
Except as otherwise required by law, the Company will be entitled to treat the record holder of a
Share certificate representing Shares on its books as the owner thereof for all purposes regardless
of any notice or knowledge to the contrary.

          SECTION 9.3. Lost, Stolen or Destroyed Certificates. The Company will issue a new Share certificate in place of any Share certificate previously
issued if the record holder of the Share certificate:

               (a) makes proof by affidavit, in form and substance satisfactory to the Members, that a
previously issued Share certificate has been lost, destroyed or stolen;

24

 

               (b) requests the issuance of a new Share certificate before the Company has notice that the
Share certificate has been acquired by a purchaser for value in good faith and without notice of an
adverse claim; and

               (c) satisfies any other reasonable requirements imposed by the Members.

          If a Member fails to notify the Company within a reasonable time after it has notice of the
loss, destruction or theft of a Share certificate, and a Transfer of the Shares represented by the
Share certificate is registered before receiving such notification, the Company will have no
liability with respect to any claim against the Company for such Transfer or for a new Share
certificate.

ARTICLE X

DISSOLUTION AND WINDING UP

          SECTION 10.1. No Dissolution. The death, retirement, resignation, expulsion, bankruptcy or dissolution of any Member or the
occurrence of any other event that terminates the continued membership of a Member in the Company
will not, in and of itself, cause the dissolution of the Company. In such event, the business of
the Company will be continued by the remaining Members.

          SECTION 10.2. Events Causing Dissolution. The Company will be dissolved and its affairs will be would up upon the approval of the Members
pursuant to Section 5.2(d)

          SECTION 10.3. Liquidation. Upon dissolution of the Company, the Person or Persons approved by the Members to carry out the
winding up of the Company will immediately commence to wind up the Company’s affairs;
provided, however, that a reasonable time will be allowed for the orderly
liquidation of the assets of the Company and the satisfaction of liabilities to creditors so as to
enable the Members to minimize the normal losses attended upon a liquidation. The Person or
Persons so approved by the Members will take full account of the assets and liabilities of the
Company, will either cause the Company’s assets and liabilities to be sold or distributed in kind,
and if sold as promptly as is consistent with obtaining the fair market value thereof, will cause
the proceeds therefrom, to the extent sufficient therefor, to be applied and distributed as
follows:

               (a) to secured creditors of the Company whether or not they are Members and to unsecured
creditors that are not Members, to the extent otherwise permitted by law, in satisfaction of the
liabilities of the Company (whether by payment or the making of reasonable provision for payment
thereof);

               (b) to unsecured creditors of the Company that are Members, to the extent otherwise permitted
by law, in satisfaction of the liabilities of the Company (whether by payment or the making of
reasonable provision for payment thereof); and

25

 

               (c) to the holders of the Shares on a pro rata basis.

          SECTION 10.4. Termination. The Company will terminate when all of the assets of the Company, after payment, or due
provision for all debts, liabilities and obligations, of the Company have been distributed to the
Members in the manner provided for in this Article X and the Certificate will have been canceled in
the manner required by the Act.

          SECTION 10.5. Claims of the Members. Members and former Members will look solely to the Company’s assets for the return of their
contributions to the Company, and if the assets of the Company remaining after payment of or due
provision for all debts, liabilities and obligations of the Company are insufficient to return such
contributions, the Members and former Members will have no recourse against the Company or any
other Member. No Member will be compelled to pay money to any other Member in the course of a
liquidation.

ARTICLE XI

MISCELLANEOUS

          SECTION 11.1. Formation Expenses. Each party will pay its own expenses incurred in connection with the formation of the Company.

          SECTION 11.2. Further Assurances. Each Member agrees to execute, acknowledge, deliver, file and record such further certificates,
amendments, instruments and documents, and to do all such other acts and things, as may be
reasonable necessary or appropriate to effectuate, carry out and perform all of the terms,
provisions and conditions of this Agreement and the transactions contemplated hereby.

          SECTION 11.3. Notices. Any notice or other communication required or permitted to be given hereunder will be in
writing, and will be effective (a) when transmitted by telecopy (with an acknowledgment of receipt)
or personally delivered on a Business Day during normal business hours, (b) on the Business Day
following the date of dispatch by nationally recognized overnight courier (providing proof of
delivery) or (c) on the third Business Day following the date of mailing by registered or certified
mail, return receipt requested, in each case addressed to the recipient at the address set forth
below (or at such other address for a party as will be specified in a notice given in accordance
with this Section 11.3); provided, that any notice of a change in address will not be deemed given
until received:

          If to the Company:

               Discovery Communications Holding, LLC

               1 Discovery Place

               Silver Spring, Maryland 20910

               Fax: (240) 662-1527

               Attention: General Counsel

26

 

          If to LMCD:

               Discovery Holding Company

               12300 Liberty Boulevard

               Englewood, CO 80112

               Fax: (720) 875-5382

               Attention: General Counsel

          With a copy to:

               Baker Botts L.L.P.

               30 Rockefeller Plaza

               New York, NY 10112

               Fax: (212) 408-2501

               Attention: Frederick H. McGrath, Esq.

          If to ANPP:

               Advance/ Newhouse Programming Partnership

               5000 Campuswood Drive

               East Syracuse, New York 13057

               Fax: (315) 463-4127

               Attention: Robert Miron

          With a copy to:

               Sabin, Bermant & Gould LLP

               4 Times Square

               New York, New York 10036

               Fax: (212) 381-7226

               Attention: Craig Holleman, Esq.

          If to Hendricks:

               John S. Hendricks

               Discovery Communications, Inc.

               One Discovery Place

               Silver Spring, MD 20910

               Fax: (240) 662-5252

          With a copy to:

               Paul Hastings Janofsky and Walker LLC

               75 E. 55 Street, New York, NY 10022

               Fax.: (212) 230-7658

               Attn: Eric W. Shaw, Esq.

27

 

          SECTION 11.4. Amendments. Any amendment to this Agreement will be adopted and be effective as an amendment hereto if
approved by the affirmative vote of the holders of 80% of the outstanding Shares, except that any
amendment which would adversely affect the rights or obligations of any Member must be approved by
such Member.

          SECTION 11.5. Severability. Each provision of this Agreement will be considered severable and if for any reason any
provision which is not essential to the effectuation of the basic purposes of this Agreement is
determined by a court of competent jurisdiction to be invalid, unenforceable or contrary to the Act
or existing or future applicable law, such invalidity, unenforceability or illegality will not
impair the operation of or affect those provisions of this Agreement which are valid, enforceable
and legal. In that case, this Agreement will be construed so as to limit any term or provision so
as to make it valid, enforceable and legal within the requirements of any applicable law, and in
the event such term or provision cannot be so limited, this Agreement will be construed to omit
such invalid, unenforceable or illegal provisions.

          SECTION 11.6. Headings and Captions. All headings and captions contained in this Agreement and the table of contents hereto are
inserted for convenience only and will not be deemed a part of this Agreement.

          SECTION 11.7. Counterparts. This Agreement may be executed in counterparts, each of which will constitute an original and
all of which, when taken together, will constitute one and the same agreement.

          SECTION 11.8. Governing Law; Consent to Jurisdiction. This agreement will be governed by the laws of the state of Delaware (other than its rules of
conflicts of law to the extent that the application of the laws of another jurisdiction would be
required thereby). Each of the parties hereto irrevocably submits to the exclusive jurisdiction of
the Delaware Court of Chancery, or, if the Delaware Court of Chancery does not have subject matter
jurisdiction, in the state courts of the State of Delaware located in Wilmington, Delaware, or in
the United States District Court for any district within such state, for the purpose of any action,
claim, suit, litigation or judgment relating to or arising out of this Agreement or any of the
transactions contemplated hereby and to the laying of venue in such court. Service of process in
connection with any such action, claim, suit, litigation or judgment may be served on each party
hereto by the same methods as are specified for the giving of notices under this Agreement. Each
party hereto irrevocably and unconditionally waives and agrees not to plead or claim any objection
to the laying of venue of any such action, claim, suit, litigation or judgment brought in such
courts and irrevocably and unconditionally waives any claim that any such action, claim, suit,
litigation or judgment brought in any such court has been brought in an inconvenient forum.

          SECTION 11.9. Entire Agreement. This Agreement and the other documents delivered pursuant hereto supersede all prior agreements
between the parties with respect to the Shares and the other matters hereof and contains the entire
agreement between the parties with respect to such subject matter.

28

 

          SECTION 11.10. Assignment; No Third Party Beneficiaries.

               (a) No party hereto may assign its obligations, rights or interests herein except in
connection with a Transfer pursuant to Article VI. Any purchaser or transferee from any party
hereto of Shares, will be obligated to assume all obligations and liabilities hereunder and will be
entitled to all the rights hereunder of such party with respect to such purchased Shares.

               (b) This Agreement will inure to the benefit of and be binding upon the parties hereto, and
where expressly stated, their Affiliates, limited partners and their respective successors and
permitted assigns. Nothing contained in this Agreement, express or implied, is intended to or will
confer upon any Person other than the parties hereto, and where expressly stated, their
Affiliates, and their respective successors and permitted assigns and the Company, any right,
benefit or remedy of any nature whatsoever under or by reason of this Agreement.

          SECTION 11.11. No Right to Partition. The Members, on behalf of themselves, their respective Affiliates, successors and assigns, if
any, hereby specifically renounce, waive and forfeit all rights, whether arising under contract or
statute or by operation of law, except as otherwise expressly provided in this Agreement, to seek,
bring or maintain any action in any court of law or equity for partition of the Company or any
asset of the Company, or any interest which is considered to be Company property, regardless of the
manner in which title to such property may be held.

          SECTION 11.12. Remedies. Except as otherwise provided herein, no remedy herein conferred or reserved is intended to be
exclusive of any other available remedy or remedies, and each and every remedy will be cumulative
and will be in addition to every remedy under this Agreement or now or hereafter existing at law or
in equity.

          SECTION 11.13. Specific Performance. Each Member acknowledges and agrees that its respective remedies at law for a breach or
threatened breach of any of the provisions of this Agreement would be inadequate and, in
recognition of that fact, agrees that, in the event of a breach or threatened breach by an Member
of the provisions of this Agreement, in addition to any remedies at law, the Company or any other
Member will, without posting any bond, be entitled to obtain equitable relief in the form of
specific performance, a temporary restraining order, a temporary or permanent injunction or any
other equitable remedy which may then be available.

          SECTION 11.14. Confidentiality. Except as required by law or government regulation and as reasonably necessary for the
solicitation by any Member in good faith of bona fide offers for all or a portion of such
Member’s Shares pursuant to Section 6.2(a), (a) none of the parties hereto will announce the
existence or terms of this Agreement or any transaction contemplated hereby without the consent of
the other parties hereto, and (b) all public announcements by the parties concerning this Agreement
or any transaction contemplated hereby will be reasonably satisfactory to and previously approved
by the parties hereto.

29

 

     IN WITNESS WHEREOF, the undersigned, intending to be legally bound, have duly executed this
Amended and Restated Limited Liability Company Agreement as of the day and year first above
written.

	 	 	 	 	 
	 	ADVANCE/NEWHOUSE PROGRAMMING PARTNERSHIP

 	 
	 	By:  	 ADVANCE PROGRAMMING HOLDINGS CORP., a General Partner
 	 
	 
	 	 	 
	 	By:  	                                 /s/ S.I. Newhouse, Jr.
 	 
	 	 	Name:  	S.I. Newhouse, Jr. 	 
	 	 	Title:  	Vice President 	 
	 
	 	LMC DISCOVERY, INC.

 	 
	 	By:  	/s/ Charles Y. Tanabe 	 
	 	 	Name:  	Charles Y. Tanabe 	 
	 	 	Title:  	Senior Vice President 	 
	 
	 	JOHN S. HENDRICKS

 	 
	 	/s/ John S. Hendricks
 	 
	 	 	 
	 	 	 

 

 

	 	 	 	 	 

Schedule A

Shares

	 	 	 
	Name & Address of Member	 	Number of Shares
	Advance/Newhouse Programming Partnership
	 	12,599
	5000 Campuswood Drive
	 	 
	East Syracuse, New York 13057
	 	 
	Fax: (315) 463-4127
	 	 
	Attention: Robert Miron
	 	 
	 
	 	 
	LMC Discovery, Inc.
	 	25,200
	c/o Discovery Holding Company
	 	 
	12300 Liberty Boulevard
	 	 
	Englewood, CO 80112
	 	 
	Fax: (720) 875-5382
	 	 
	Attention: General Counsel
	 	 
	 
	 	 
	John S. Hendricks
	 	1
	Discovery Communications, Inc.
	 	 
	One Discovery Place
	 	 
	Silver Spring, MD 20910
	 	 
	Fax: (240) 662-5252

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