Document:

EXHIBIT 10.1

Exhibit 10.1

STANDBY PURCHASE AGREEMENT

          THIS STANDBY PURCHASE AGREEMENT (the “Agreement”), made and entered into as of this
13th day of October, 2008, by and between Irwin Financial Corporation, an Indiana corporation (the
“Company”), and Cummins Inc., an Indiana corporation (the “Purchaser”).

WITNESSETH:

          WHEREAS, the Company anticipates issuing to the holders (the “Shareholders”) of its
issued and outstanding common shares, without par value (the “Common Shares”), certain
transferable rights (the “Rights”) to subscribe for and purchase additional Common Shares
at a per share price (the “Subscription Price”) that will be determined by the Company’s
Board of Directors, or a duly authorized committee thereof, prior to distribution of the Rights,
such transaction generally being herein referred to as the “Rights Offering”; and

          WHEREAS, the Purchaser desires to, and hereby does, agree to purchase certain Common Shares
available for issuance upon the expiration of unexercised Rights, subject to the terms and
conditions set forth herein;

          NOW, THEREFORE, for and in consideration of the premises, and other good and valuable
consideration the receipt and sufficiency of all of which is hereby acknowledged, the parties
hereto agree as follows:

     1. Rights Offering; Registration of the Common Shares.

          A registration statement on Form S-3 (the “Registration Statement”) with respect to
the proposed Rights Offering and the Common Shares to be issued and sold to the Purchaser will be
filed with the Securities and Exchange Commission (the “Commission”) and will have been
declared effective by the Commission prior to the distribution of Rights.

     2. Purchase and Delivery of Unsubscribed Shares.

     (a) Subject to the terms, conditions and limitations herein set forth (including the
provisions of paragraph (b) of this Section and of Section 5), the Company hereby agrees to
issue and sell to the Purchaser, and the Purchaser hereby agrees to purchase from the
Company (the “Standby Commitment”), at the Subscription Price, a number of Common
Shares (the “Standby Shares”) to be determined upon the expiration of the Rights
Offering by reference to the amount of unexercised Rights and the underlying shares that
remain available for issuance in accordance with the Rights Offering after the issuance of
all Common Shares validly subscribed for through the exercise of Rights (including the
exercise of all oversubscription privileges contemplated by the Rights Offering) (such
remaining shares being hereinafter referred to as the “Unsubscribed Shares”). The
number of Standby Shares shall be the least of (i) the number of Unsubscribed Shares, (ii)
the maximum number of Unsubscribed Shares the aggregate purchase price for which will not
exceed $25 million and (iii) the maximum number of

 

 

Unsubscribed Shares that, when aggregated with other Common Shares beneficially owned
or controlled by the Purchaser as of the Closing Date, would not exceed 19.9% of the total
issued and outstanding Common Shares upon completion on the Closing Date of the Rights
Offering and Exchange Transactions (as defined below), including shares issued on the
Closing Date pursuant to any other agreements executed with other Standby Purchasers, as
defined below (collectively, the “Standby Purchase Agreements”).

     (b) The Purchaser and the Company hereby acknowledge and agree that the Company has
entered into, or contemplates entering into, one or more other Standby Purchase Agreements
with certain other parties (collectively with the Purchaser, the “Standby
Purchasers”) on terms substantially similar to this Agreement, except that they may
provide for the purchase of a different maximum number of Common Shares and different
conditions precedent. If the number of Unsubscribed Shares is less than the aggregate
number of Unsubscribed Shares agreed to be purchased by all Standby Purchasers, the Common
Shares available for issuance to Standby Purchasers shall be allocated as nearly as possible
on a pro rata basis among all Standby Purchasers based upon the number of Common Shares
agreed to be purchased by each such Standby Purchaser, after giving effect to the
limitations set forth in Section 2(a).

     3. The Closing.

          As soon as practicable following its determination of the number of Unsubscribed Shares, the
Company shall notify the Purchaser of the number of Standby Shares, if any, to be purchased by the
Purchaser pursuant to Section 2(a). The delivery of and payment for the Standby Shares shall take
place at the offices of Sullivan & Cromwell, 125 Broad Street, New York, New York, at 10:00 a.m.,
New York time (or as soon as practicable thereafter), simultaneously with the closing of the
Company’s Rights Offering and the exchange of certain of the Company’s trust preferred securities
for the Company’s Common Shares (the “Exchange Transactions”), such date to be not more
than five business days after the foregoing notification and to be specified therein (the date of
the closing being referred to as the “Closing Date” and the consummation of the transaction
being referred to as the “Closing”).

     4. Delivery of Standby Shares.

          At the Closing, the Standby Shares to be purchased by the Purchaser hereunder, registered in
the name of the Purchaser or such of its nominees as the Purchaser may specify no more than one day
after receipt of the notice described in Section 3 above, shall be delivered by or on behalf of the
Company to the Purchaser, for the Purchaser’s account, against delivery by the Purchaser of the
purchase price therefor in immediately available funds in the form of one or more federal funds
checks or a wire transfer to an account designated by the Company.

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     5. Conditions of the Obligations of the Purchaser.

          The obligations of the Purchaser to purchase the Standby Shares on the Closing Date are
subject to the following conditions precedent:

     (a) The Company and the Purchaser shall have conducted one or more in-person meetings
(including telephonic meetings) with the staff of the Federal Reserve and the Federal
Reserve Bank of Chicago and with the Indiana Department of Financial Institutions and shall
have received satisfactory confirmation (in the reasonable judgment of executive officers of
the Purchaser) that, upon completion of the transactions contemplated herein, including the
Rights Offering and the Exchange Transactions, the Company and Irwin Union Bank and Trust
Company (i) will have sufficient regulatory capital to maintain a “well capitalized” status
in light of foreseeable capital requirements, and (ii) will have submitted a capital plan
acceptable to such state or federal bank regulatory authority;

     (b) The Purchaser shall be satisfied (in the reasonable judgment of executive officers
of the Purchaser) that its purchase and ownership of Standby Shares and the other
transactions contemplated hereby will not result in the Purchaser being deemed to “control”
the Company within the meaning of the Bank Holding Company Act of 1956 or the Change in Bank
Control Act, provided that the Purchaser provides customary “non-control” commitments to the
Board of Governors of the Federal Reserve System;

     (c) Immediately after giving effect to the purchase of the Standby Shares and the
provisions of Section 2(a), the Purchaser will not own or control more than 19.9% of the
aggregate number of Common Shares of the Company then outstanding;

     (d) All consents and approvals required to be obtained from any governmental authority
or other person in connection with the transactions contemplated hereby shall have been
obtained or all applicable waiting periods and appeal periods shall have expired; and

     (e)
The Company’s Board of Directors shall have taken all required action to increase the
number of directors by one and to designate such new directorship as being in the class of
directors that will serve on the Board of Directors until 2011.

     6. Conditions to the Obligations of the Company.

     The obligations of the Company to issue the Standby Shares to the Purchaser on the Closing
Date is subject to the following conditions precedent:

     (a) The Company will not issue any of the Standby Shares to the Purchaser hereunder if,
in the opinion of the Company, the Purchaser is required to obtain prior clearance or
approval of such transaction from any state or federal bank regulatory authority and if such
approval or clearance has not been obtained or if satisfactory

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evidence thereof has not been presented to the Company or the Purchaser by the Closing
Date; and

     (b) The Purchaser has entered into a lock-up agreement with the Company in the form
attached hereto as Schedule A.

     7. Closing Conditions.

          The obligations of the Purchaser and the Company to consummate the purchase and sale of the
Standby Shares shall be subject, in the discretion of the Company or the Purchaser, as the case may
be, to the condition that all representations and warranties and other statements of the other
party are, at and as of the Closing, true and correct in all material respects, and to the
additional condition that no stop order suspending the effectiveness of the Registration Statement
with respect to the Rights Offering or any amendment or supplement thereto shall have been issued
and no proceeding for that purpose shall have been initiated or threatened by the Commission.

     8. Certain Agreements of the Purchaser.

          The Purchaser acknowledges and agrees that (i) the certificates representing the Standby
Shares shall bear a legend (and the Company’s share register shall bear a notation) substantially
to the following effect and (ii) transfers of the Shares and removal of such legend shall be
subject to Section 6(b) and the Company will, or will direct the transfer agent for the Common
Shares to, remove the legend on the certificates at such time as they are no longer subject to this
restriction:

THIS SECURITY HAS NOT BEEN REGISTERED UNDER THE U.S. SECURITIES ACT OF 1933 OR ANY
OTHER SECURITIES LAWS AND MAY NOT BE OFFERED, SOLD, PLEDGED, DELIVERED OR OTHERWISE
TRANSFERRED UNLESS REGISTERED UNDER SUCH LAWS OR AN EXEMPTION FROM SUCH REGISTRATION
IS AVAILABLE. THE HOLDER OF THIS SECURITY BY ITS ACCEPTANCE HEREOF AGREES TO COMPLY
WITH ALL SUCH RESTRICTIONS ON TRANSFER.

     9. Representations and Warranties.

     (a) The Company hereby represents, warrants and covenants to the Purchaser as follows:

     (i) The Company is a corporation duly incorporated and validly existing under the
laws of the State of Indiana, with full power and authority (corporate and other) to
perform its obligations under this Agreement.

     (ii) The execution, delivery and performance of this Agreement by the Company and
the consummation by the Company of the transactions contemplated hereby have been duly
authorized by all necessary corporate action of the Company; and this Agreement, when
duly executed and delivered by the Purchaser, will

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constitute a valid and legally binding instrument of the Company, enforceable
against the Company in accordance with its terms subject to bankruptcy, insolvency,
fraudulent transfer, reorganization, moratorium and similar laws of general
applicability relating to or affecting creditors’ rights and to general equity
principles.

     (iii) The Rights and the Standby Shares have been duly authorized by the Company;
the Rights, when issued and delivered by the Company, will constitute valid and
legally binding obligations of the Company subject to bankruptcy, insolvency,
fraudulent transfer, reorganization, moratorium and similar laws of general
applicability relating to or affecting creditors’ rights and to general equity
principles; and the Standby Shares, when issued and delivered to the Purchaser by the
Company against payment therefor as contemplated hereby, will be validly issued, fully
paid and non-assessable.

     (iv) The aggregate number of the Company’s Common Shares that will be outstanding
(including those reserved for issuance under its employee stock or other benefit
plans) after the issuance of the Standby Shares, the Common Shares validly subscribed
for through the exercise of Rights and the Common Shares acquired in the Exchange
Transactions shall not exceed the number of Common Shares authorized under the
Company’s Restated Articles of Incorporation.

     (v) The execution and delivery of this Agreement, the consummation by the Company
of the Rights Offering herein contemplated and the compliance by the Company with the
terms hereof do not and will not violate the Restated Articles of Incorporation or
By-laws of the Company, or result in a breach or violation of any of the terms or
provisions of, or constitute a default under, any indenture, mortgage, deed of trust,
loan agreement or other agreement or instrument to which the Company is a party or by
which the Company is bound or to which any of its properties or assets are subject,
with such exceptions as would not have a material adverse effect on the financial
condition of the Company, or any applicable statute or any order, judgment, decree,
rule or regulation of any court or governmental agency or body having jurisdiction
over the Company or any of its properties or assets; and no consent, approval,
authorization, order, registration or qualification of or with any such court or
governmental agency or body is required for the valid authorization, execution,
delivery and performance by the Company of this Agreement, the issuance of the Rights,
and the Common Shares issuable upon exercise thereof, and the Standby Shares or the
consummation by the Company of the other transactions contemplated by this Agreement,
except such consents, approvals, authorizations, registrations or qualifications as
may be required for the declaration of effectiveness of the registration statement in
connection with the Standby Shares or state securities or “blue sky” laws, the Bank
Holding Company Act or the Change in Bank Control Act.

     (vi) The Company has delivered to the Purchaser, subject to appropriate
confidentiality commitments and applicable regulatory consents, the

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Company’s agreements and understandings with any state or federal bank regulatory
authority.

     (vii) The Company’s Board of Directors shall preserve the ability to appoint
directors without shareholder approval and shall take all required action to cause a
person designated by the Purchaser under Section 11 to be elected or appointed to the
Board of Directors in the directorship created pursuant to Section 5(e).

     (b) The Purchaser hereby represents and warrants to the Company as follows:

     (i) The Purchaser beneficially owned no Common Shares as of the date of this
Agreement and will, as of the Closing Date, but prior to the purchase of the Standby
Shares, beneficially own no Common Shares.

     (ii) The Purchaser is a corporation duly incorporated and validly existing under
the laws of the State of Indiana, with full power and authority (corporate and other)
to perform its obligations under this Agreement.

     (iii) The execution, delivery and performance of this Agreement by the Purchaser
and the consummation by the Purchaser of the transactions contemplated hereby have
been duly authorized by all necessary corporate action of the Purchaser; and this
Agreement, when duly executed and delivered by the Company, will constitute a valid
and legally binding instrument of the Purchaser, enforceable against the Purchaser in
accordance with its terms subject to bankruptcy, insolvency, fraudulent transfer,
reorganization, moratorium and similar laws of general applicability relating to or
affecting creditors’ rights and to general equity principles.

     (iv) The Purchaser has sufficient cash funds on hand to purchase the Standby
Shares on the terms and conditions contained in this Agreement and will have such
funds on the Closing Date.

     (v) The execution and delivery of this Agreement, the consummation by the
Purchaser of the Standby Commitment herein contemplated and the compliance by the
Purchaser with the terms hereof do not and will not violate the Restated Articles of
Incorporation or By-Laws of the Purchaser, or result in a breach or violation of any
of the terms or provisions of, or constitute a default under any indenture, mortgage,
deed of trust, loan agreement or other agreement or instrument to which the Purchaser
is a party or by which the Purchaser is bound or to which any of its properties or
assets are subject, with such exceptions as would not have a material adverse effect
on the financial condition of the Purchaser, or any applicable statute or any order,
judgment, decree, rule or regulation of any court or governmental agency or body
having jurisdiction over the Purchaser or any of its properties or assets; and no
consent, approval, authorization, order, registration or

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qualification of or with any such court or governmental agency or body is
required for the valid authorization, execution, delivery and performance by the
Purchaser of this Agreement or the consummation by the Purchaser of the Standby
Commitment contemplated by this Agreement, other than those consents, approvals,
authorizations, registrations or qualifications that are identified as conditions
precedent to the Purchaser’s obligation to purchase the Standby Shares on the Closing
Date under Section 5.

     (vi) The Purchaser has not entered into any contracts, arrangements,
understandings or relationships (legal or otherwise) with any other person or persons
with respect to any securities of the Company, including but not limited to transfer
or voting of any of the securities, finder’s fees, joint ventures, loan or option
arrangements, puts or calls, guarantees of profits, division of profits or loss, or
the giving or withholding of proxies; and the Purchaser does not own any securities of
the Company which are pledged or otherwise subject to a contingency the occurrence of
which would give another person voting power or investment power over such securities.

     (vii) The Purchaser understands that any Standby Shares have not been registered
under the Securities Act of 1933 (the “Securities Act”), by reason of a
specific exemption from the registration provisions of the Securities Act, the availability of
which depends upon, among other things, the bona fide nature of the investment intent
and the accuracy of the Purchaser’s representations as expressed herein or otherwise
made pursuant hereto.

     (viii) The Purchaser is acquiring the Standby Shares for investment for its own
account, not as a nominee or agent, and not with the view to, or for resale in
connection with, any distribution thereof not in compliance with applicable securities
laws, and the Purchaser has no present intention of selling, granting any
participation in, or otherwise distributing the same, except in compliance with
applicable securities laws.

     (ix) The Standby Shares will not be offered for sale, sold or otherwise
transferred by the Purchaser except pursuant to a registration statement or in a
transaction exempt from, or not subject to, registration under the Securities Act and
any applicable state securities laws. Except pursuant to a registration statement
covering the Standby Shares or as permitted by an exemption from registration under
the Securities Act, the Purchaser has not and will not solicit offers for, or offer to
sell, the Standby Shares by means of any general solicitation or general advertising
within the meaning of Rule 502(c) under Regulation D under the Securities Act or in
any manner involving a public offering within the meaning of the Securities Act.

     (x) The Purchaser has such knowledge and experience in financial and business
matters that it is capable of evaluating the merits and risks of its investment in the
Standby Shares being acquired hereunder. The Purchaser is an “accredited

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investor” within the meaning of Rule 501(a) under the Securities Act. The
Purchaser understands and is able to bear any economic risks associated with such
investment (including, without limitation, the necessity of holding the Standby Shares
for an indefinite period of time). The Purchaser is able to afford a complete loss of
such investment. The Purchaser has received or has had full access to all the
information it considers necessary or appropriate for deciding whether to purchase the
Standby Shares and has had an opportunity to ask questions and receive answers
regarding the terms and conditions of the Standby Shares.

     10. Registration Rights.

          The Company will use its reasonable best efforts to effect the registration of the resale of
the Standby Shares as soon as reasonably practicable. The Company shall use its reasonable best
efforts to as expeditiously as possible:

     (a) prepare and file with the Commission a registration statement with respect to the
resale of such Standby Shares, and thereafter use its reasonable best efforts to cause such
registration statement to become effective as soon as reasonably practicable after the
Closing and to remain effective as provided herein, provided that before filing a
registration statement or any amendments or supplements thereto, the Company will, at the
Company’s expense, furnish or otherwise make available to the Purchaser’s counsel copies of
all such documents proposed to be filed and such other documents reasonably requested by
such counsel, which documents will be subject to review and comment of such counsel at the
Company’s expense;

     (b) prepare and file with the Commission such amendments and supplements to such
registration statement as may be necessary to keep such registration statement effective
continuously until all the securities covered by such registration statement have been
disposed of and cause the related prospectus to be supplemented by any prospectus supplement
as may be necessary to comply with the provisions of the Securities Act with respect to the
disposition of the securities covered by such registration statement, and as so supplemented
to be filed pursuant to Rule 424 (or any similar provisions then in force) under the
Securities Act;

     (c) furnish to the Purchaser such number of copies, without charge, of such
registration statement, each amendment and supplement thereto, including each preliminary
prospectus, final prospectus, any other prospectus (including any prospectus filed under
Rule 424, Rule 430A or Rule 430B under the Securities Act and any “issuer free writing
prospectus” as such term is defined under Rule 433 promulgated under the Securities Act),
all exhibits and other documents filed therewith and such other documents as the Purchaser
may reasonably request in order to facilitate the disposition of the Standby Shares, and
upon request a copy of any and all transmittal letters or other correspondence to or
received from, the Commission or any other governmental entity relating to such offer;

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     (d) register or qualify (or exempt from registration or qualification) such Standby
Shares, and keep such registration or qualification (or exemption therefrom) effective,
under such other securities or blue sky laws of such jurisdictions as the Purchaser
reasonably requests (provided that the Company will not be required to (i) qualify
generally to do business in any jurisdiction where it would not otherwise be required to
qualify but for this subsection, (ii) subject itself to taxation in any such jurisdiction or
(iii) consent to general service of process in any such jurisdiction);

     (e) notify the Purchaser (at any time when a prospectus relating thereto is required to
be delivered under the Securities Act), upon discovery that, or upon the discovery of the
happening of any event that makes any statement made in the registration statement or
related prospectus or any document incorporated or deemed to be incorporated therein by
reference untrue in any material respect or that requires the making of any changes in such
registration statement, prospectus or documents and, as soon as reasonably practicable,
prepare and furnish to the Purchaser a reasonable number of copies of a supplement or
amendment to such prospectus so that, in the case of the registration statement, it will not
contain any untrue statement of material fact or omit to state any material fact required to
be stated therein or necessary to make the statements therein, not misleading, and that in
the case of any prospectus, it will not contain any untrue statement of a material fact or
omit to state any material fact necessary in order to make the statement therein, in light
of the circumstances in which they were made, not misleading;

     (f) notify the Purchaser (i) when such registration statement or the prospectus or any
prospectus supplement or post-effective amendment has been filed and, with respect to such
registration statement or any post-effective amendment, when the same has become effective,
(ii) of any request by the Commission for amendments or supplements to such registration
statement or to amend or to supplement such prospectus or for additional information, (iii)
of the issuance by the Commission of any stop order suspending the effectiveness of such
registration statement or the initiation of any proceedings for any of such purposes and
(iv) of the receipt by the Company of any notification with respect to the suspension of the
qualification or exemption from qualification of any of the Standby Shares for sale in any
jurisdiction, or the initiation or threatening of any proceeding for such purpose;

     (g) cause all such Standby Shares to be listed on the New York Stock Exchange or on the
principal stock exchange on which the Common Shares or any similar securities issued by the
Company are then listed if the Common Shares are not then listed;

     (h) if requested by the Purchaser, promptly include in a prospectus supplement or
amendment such information as the Purchaser may reasonably request in order to permit the
intended method of distribution of such securities and make all required filings of such
prospectus supplement or such amendment as soon as practicable after the Company has
received such request;

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     (i) cooperate with the Purchaser to facilitate the timely preparation and delivery of
certificates (not bearing any legends) representing Standby Shares to be sold;

     (j) upon reasonable notice, make available for inspection by the Purchaser and the
Purchaser’s counsel all financial and other records, pertinent corporate documents and
documents relating to the business of the Company, and cause the Company’s officers,
directors, employees and independent accountants to supply all information reasonably
requested by any such seller, underwriter, attorney, accountant or agent in connection with
such Registration statement, provided that it shall be a condition to such inspection and
receipt of such information that the inspecting person (i) enter into a confidentiality
agreement in form and substance reasonably satisfactory to the Company and (ii) agree to
minimize the disruption to the Company’s business in connection with the foregoing;

     (k) in the event of the issuance of any stop order suspending the effectiveness of a
registration statement, or of any order suspending or preventing the use of any related
prospectus or ceasing trading of any securities included in such registration statement for
sale in any jurisdiction, use every reasonable effort to promptly obtain the withdrawal of
such order;

     (l) bear all expenses incidental to the resale of the Standby Shares by the Purchaser,
including all registration and filing fees, fees and expenses of compliance with securities
or blue sky laws, word processing, duplicating and printing expenses, messenger, telephone
and delivery expenses, and fees and disbursements of counsel for the Company and all
independent certified public accountants and other persons retained by the Company; provided
that no expenses borne by the Company shall relate to underwriting discounts or commissions
or fees of counsel incurred by the Purchaser; and

     (m) use its reasonable best efforts to timely file all reports and other documents
required to be filed by it under the Securities Act and the Securities Exchange Act of 1934,
as amended, and the rules and regulations adopted by the Commission thereunder, and it will
take such further action as the Purchaser may reasonably request, to the extent required
from time to time to enable the Purchaser to sell shares of Standby Shares without
registration under the Securities Act within the limitation of the exemptions provided by
(i) Rule 144 or Regulation S under the Securities Act, as such rules may be amended from
time to time or (ii) any similar rule or regulation hereafter adopted by the Commission.
Upon the request of the Purchaser, the Company will deliver to such person a written
statement as to whether it has complied with such information requirements, and, if not, the
specifics thereof.

     11. Board of Directors.

     (a) The Company agrees that the Purchaser shall be entitled to designate one director
to the Company’s Board of Directors for so long as it holds five percent or more of the
total issued and outstanding Common Shares.

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     (b) The Purchaser shall have the right to request the resignation or removal of the
director so designated and elected or appointed to the Company’s Board of Directors. In the
event of the resignation, death, removal or disqualification of the director designated by
the Purchaser, the Purchaser shall promptly nominate a new director and, after written
notice of the nomination has been given by the Purchaser to the Company, the Company shall
take all required action to cause such replacement director to be elected or appointed to
the directorship vacated by the Purchaser’s designee to the Company’s Board of Directors.

     12. Termination.

     (a) Either of the parties hereto may terminate this Agreement (i) if the transactions
contemplated hereby are not consummated by December 31, 2008; (ii) all requisite approvals
are not obtained prior to the Closing in the event any required federal (including, without
limitation, the Board of Governors of the Federal Reserve System) or state approvals for the
transactions contemplated hereby is not obtained on conditions reasonably satisfactory
despite the Company’s or the Purchaser’s reasonable efforts to obtain such approvals; or
(iii) upon mutual assent of the parties hereto.

     (b) The Company and the Purchaser hereby agree that any termination of this Agreement
pursuant to Section 12(a), or the termination of the Rights Offering for any reason
whatsoever by the Company shall be without liability of the Company or the Purchaser.

     13. Future Acquisitions of Shares.

          The Purchaser acknowledges that the Company’s existing rights agreement permits newly-issued
shares directly from the Company, but limits future purchases by holders of greater than 14.9% of
the total number of outstanding Common Shares and the Purchaser agrees that during the period
beginning on the date hereof and continuing until the sale of its Standby Shares, it will not bid
for, purchase, contract to purchase or otherwise acquire, any Common Shares or interests therein
without the prior written consent of the Company.

     14. Indemnification.

     (a) In connection with the registration of Standby Shares pursuant to this Agreement,
the Company shall indemnify and hold harmless the Purchaser, its officers and directors,
each broker or any other person acting on behalf of the Purchaser and each other person, if
any, who controls any of the foregoing persons within the meaning of the Securities Act
against any losses, claims, damages or liabilities, joint or several, (or actions in respect
thereof) to which any of the foregoing persons may become subject under the Securities Act
or otherwise, insofar as such losses, claims, damages or liabilities (or actions in respect
thereof) arise out of or are based upon an untrue statement or alleged untrue statement of a
material fact contained in the registration statement under which such Standby Shares were
registered under the Securities Act, any preliminary prospectus or final prospectus
contained therein or otherwise filed with the Commission,

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any amendment or supplement thereto or any document incident to registration or
qualification of any Standby Shares, or arise out of or are based upon the omission or
alleged omission to state therein a material fact required to be stated therein or necessary
to make the statements therein not misleading, and shall reimburse such seller, such officer
or director, such broker or such other person acting on behalf of the Purchaser and each
such controlling person for any legal or other expenses reasonably incurred by any of them
in connection with investigating or defending any such loss, claim, damage, liability or
action; provided, however, that the Company shall not be liable in any such
case to the extent that any such loss, claim, damage, liability or action arises out of or
is based upon an untrue statement or alleged untrue statement or omission or alleged
omission made in such registration statement, preliminary prospectus, final prospectus,
amendment, supplement or document incident to registration or qualification of any Standby
Shares in reliance upon and in conformity with written information furnished to the Company
through an instrument duly executed by the Purchaser specifically for use in the preparation
thereof.

     (b) In connection with the registration of Standby Shares under the Securities Act, the
Purchaser shall indemnify and hold harmless (in the same manner and to the same extent as
set forth in the preceding paragraph of this Section) the Company, each director of the
Company, each officer of the Company who shall sign such registration statement, each other
person acting on behalf of the Company and each person who controls any of the foregoing
persons within the meaning of the Securities Act with respect to any statement or omission
from such registration statement, any preliminary prospectus or final prospectus contained
therein or otherwise filed with the Commission, any amendment or supplement thereto or any
document incident to registration or qualification of any Standby Shares, if such statement
or omission was made in reliance upon and in conformity with written information furnished
to the Company through an instrument duly executed by the Purchaser specifically for use in
connection with the preparation of such registration statement, preliminary prospectus,
final prospectus, amendment, supplement or document; provided, however, that
the obligation to indemnify will be limited to an amount equal to the net proceeds actually
received by the Purchaser from the sale of Standby Shares effected pursuant to such
registration.

     (c) Promptly after receipt by an indemnified party of notice of the commencement of any
action involving a claim referred to in the preceding paragraphs, such indemnified party
will, if a claim in respect thereof is made against an indemnifying party, give written
notice to the latter of the commencement of such action (it being understood that no delay
in delivering or failure to deliver such notice shall relieve the indemnifying persons from
any liability or obligation hereunder unless (and then solely to the extent that) the
indemnifying person is prejudiced by such delay and/or failure). In case any such action is
brought against an indemnified party, the indemnifying party will be entitled to participate
in and to assume the defense thereof, jointly with any other indemnifying party similarly
notified to the extent that it may wish, with counsel reasonably satisfactory to such
indemnified party, and after notice from the indemnifying party to such indemnified party of
its election so to assume the defense thereof, the indemnifying party shall not be
responsible for any legal or other expenses subsequently

-12-

 

incurred by the latter in connection with the defense thereof; provided,
however, that if any indemnified party shall have reasonably concluded that there
may be one or more legal or equitable defenses available to such indemnified party which are
additional to or conflict with those available to the indemnifying party, or that such claim
or litigation involves or could have an effect upon matters beyond the scope of the
indemnity agreement provided for herein, the indemnifying party shall not have the right to
assume the defense of such action on behalf of such indemnified party and such indemnifying
party shall reimburse such indemnified party and any person controlling such indemnified
party for that portion of the fees and expenses of any counsel retained by the indemnified
party which is reasonably related to the matters covered by the indemnity agreement provided
for herein.

     (d) If the indemnification provided for above is held by a court of competent
jurisdiction to be unavailable to an indemnified party with respect to any loss, claim,
damage, liability or action referred to herein, then the indemnifying party, in lieu of
indemnifying such indemnified party hereunder, shall contribute to the amounts paid or
payable by such indemnified party as a result of such loss, claim, damage, liability or
action in such proportion as is appropriate to reflect the relative fault of the
indemnifying party on the one hand and of the indemnified party on the other in connection
with the statements or omissions which resulted in such loss, claim, damage or liability as
well as any other relevant equitable considerations. The relative fault of the indemnifying
party and of the indemnified party shall be determined by reference to, among other things,
whether the untrue or alleged untrue statement of a material fact or the omission or alleged
omission to state a material fact relates to information supplied by the indemnifying party
or by the indemnified party and the parties’ relative intent, knowledge, access to
information and opportunity to correct or prevent such statement or omission. The Company
and the Purchaser agree that it would not be just and equitable if contributions pursuant to
this paragraph were determined by pro rata allocation or by any other method of allocation
that did not take into account the equitable considerations referred to herein. The amount
paid or payable to an indemnified party as a result of the losses, claims, damages,
liabilities or expenses referred to above shall be deemed to include any legal or other
expenses reasonably incurred in connection with investigating or defending the same.
Notwithstanding the foregoing, in no event shall the amount contributed by the Purchaser
exceed the aggregate net offering proceeds received by the Purchaser from the sale of its
Standby Shares.

     15. Notices.

          All communications hereunder will be in writing and, if to the Company, will be mailed,
delivered or telecopied and confirmed to it, at the offices of the Company at 500 Washington
Street, Columbus, Indiana 47201, Steven Schultz, First Vice President General Counsel, Facsimile
(812) 376-1709; and if to the Purchaser, will be mailed, delivered or telecopied and confirmed to
it at the offices of the Purchaser at One American Square, Suite 1800, Indianapolis, Indiana 46282,
Marya M. Rose, Vice President, General Counsel and Corporate Secretary, Facsimile (317) 610-2526.

-13-

 

     16. Binding Effect.

          This Agreement shall be binding upon, and shall inure solely to the benefit of, each of the
parties hereto, and each of their respective heirs, executors, administrators, successors and
permitted assigns, and no other person shall acquire or have any right under or by virtue of this
Agreement. The Purchaser may not assign any of its rights or obligations hereunder to any other
person or entity without the prior written consent of the Company.

     17. Governing Law.

          This Agreement shall be governed by, and construed in accordance with, the laws of the State
of New York.

     18. Execution in Counterparts.

          This Agreement may be executed in any number of counterparts, each of which counterparts when
so executed shall be deemed to be an original, but all such respective counterparts shall together
constitute but one and the same instrument.

-14-

 

          IN WITNESS WHEREOF, and intending to be legally bound thereby, each of the Purchaser and the
Company has signed or caused to be signed its name, all as of the day and year first above written.

	 	 	 	 	 
	 	IRWIN FINANCIAL CORPORATION

 	 
	 	By:  	/s/ William I. Miller
 	 
	 	 	Name:  	William I. Miller 	 
	 	 	Title:  	Chairman and CEO 	 
	 
	 	CUMMINS INC.

 	 
	 	By:  	/s/ F. Joseph Loughrey
 	 
	 	 	Name:  	F. Joseph Loughrey 	 
	 	 	Title:  	Vice Chairman 	 
	 

 

 

Schedule A

LOCK-UP AGREEMENT

                                        , 2008

Irwin Financial Corporation

Ladies and Gentlemen:

In connection with your anticipated issuance to the holders of your issued and outstanding Common
Shares, no par value (the “Common Shares”), certain transferable rights (the
“Rights”) to subscribe for and purchase additional Common Shares (such transaction
generally being herein referred to as the “Rights Offering”) and a private placement sale
to us of any unsubscribed-for Common Stock (the “Standby Shares”) pursuant to the Standby
Purchase Agreement, dated as of October ___, 2008, (the “Standby Purchase Agreement”), we
agree that any transaction in your Common Shares will be subject to this agreement (the
“Agreement”). Capitalized terms used herein and not otherwise defined herein shall have
the meanings set forth in the Standby Purchase Agreement.

In connection with the sale and purchase of the Standby Shares, and for other good and valuable
consideration the receipt and sufficiency of which is hereby acknowledged, the undersigned agrees
as follows:

Except as set forth below, it will not, directly or indirectly, without the prior written consent
of the Company, offer, sell, contract to sell, pledge, make any short sale or otherwise dispose of
(or enter into any transaction which is designed to, or might reasonably be expected to, result in
the disposition of, whether by actual disposition or effective economic disposition due to cash
settlement or otherwise, by the undersigned, any affiliate of the undersigned or any person in
privity with the undersigned) or establish or increase a put equivalent position or liquidate or
decrease a call equivalent position within the meaning of Section 16 of the Securities Exchange Act
of 1934, as amended, and the rules and regulations of the Securities and Exchange Commission
promulgated thereunder with respect to, the Standby Shares. The foregoing restriction is expressly
agreed to preclude the undersigned from engaging in any hedging or other transaction which is
designed to or which reasonably could be expected to lead to or result in a sale or disposition of
the undersigned’s Standby Shares even if such Standby Shares would be disposed of by someone other than the
undersigned. The provisions in this paragraph shall not restrict the transfer of Standby Shares to
an affiliate as long as the affiliate transferee agrees for the benefit of the Company to be bound
by the terms hereof.

Its obligations under the paragraph above shall terminate upon termination of the Standby Purchase
Agreement and (i) with respect to 25% of the Standby Shares, 60 days after the Closing Date, (ii)
with respect to 50% of the Standby Shares, 120 days after the Closing Date, (iii) with respect to
75% of the Standby Shares, 180 days after the Closing Date and (iv) with respect to 100% of the
Standby Shares, 240 days after the Closing Date. In no event will this lock-up

 

 

agreement be any more restrictive than any other lock-up or similar agreement agreed to in
connection with the Exchange Transactions and the undersigned and the Company agree to make any
necessary amendments hereto promptly upon execution of any more favorable agreement.

Notwithstanding the foregoing, the undersigned may terminate this Agreement and its obligations
hereunder at any time, effective upon the undersigned’s giving you written notice of termination,
in the event any bank regulatory authority, including the Board of Governors of the Federal Reserve
System, the Indiana Department of Financial Institutions or any of the staffs thereof, (i)
initiates, or notifies the undersigned in writing that it intends to initiate, any proceeding to
determine whether we “control” the Company within the meaning of the Bank Holding Company Act, the
Indiana Financial Institutions Act, Ind. Code § 28-2-16-1 or any other federal or state banking
laws or (ii) otherwise notifies us in writing or publicly discloses that such regulatory authority
believes that we may control or have the ability to exert a controlling influence over the Company
within the meaning of such laws.

You hereby agree that you may release us from this Agreement with your prior written consent at any
time.

-2-EXHIBIT 10.2

Exhibit 10.2

UNITED STATES OF AMERICA

BEFORE THE

BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM

WASHINGTON, D.C.

STATE OF

INDIANA DEPARTMENT OF FINANCIAL INSTITUTIONS

INDIANAPOLIS, INDIANA

	 	 	 
	 
	 	 
	Written Agreement by and among

IRWIN FINANCIAL CORPORATION

Columbus, Indiana

IRWIN UNION BANK AND TRUST
COMPANY

Columbus, Indiana

FEDERAL RESERVE BANK OF CHICAGO

Chicago, Illinois

and

INDIANA DEPARTMENT OF FINANCIAL
INSTITUTIONS

Indianapolis, Indiana

 

	 	
Docket No. 08-035-WA/RB-HC 
08-035-WA/RB-SM

     WHEREAS, in recognition of their common goal to maintain the financial soundness of
Irwin Financial Corporation, Columbus, Indiana (“Irwin”), a registered bank holding company, and
its subsidiary bank, Irwin Union Bank and Trust Company, Columbus, Indiana (the “Bank”), an Indiana
state chartered bank that is a member of the Federal Reserve System, Irwin, the Bank, the Federal
Reserve Bank of Chicago (the “Reserve Bank”), and the Indiana Department of Financial Institutions
(the “DFI”) have mutually agreed to enter into this Written Agreement (the “Agreement”);

 

 

     WHEREAS,
on October 10, 2008, the boards of directors of Irwin and the Bank at
duly constituted meetings adopted resolutions authorizing and directing William I. Miller
to enter into this Agreement on behalf of Irwin and the Bank, and consenting
to compliance with each and every provision of this Agreement by Irwin and the Bank, as applicable,
and their institution-affiliated parties, as defined in sections 3(u) and 8(b)(3) of the Federal
Deposit Insurance Act, as amended (the “FDI Act”) (12 U.S.C. §§ 1813(u) and 1818(b)(3)).

     NOW, THEREFORE, Irwin, the Bank, the Reserve Bank, and the DFI agree as follows:

Board
Oversight

     1. Within 30 days of this Agreement, the board of directors of Irwin and the Bank
shall submit to the Reserve Bank and the DFI a joint written plan to strengthen board oversight of
the management and operations of Irwin and the Bank. The plan shall, at a minimum, address,
consider, and include:

          (a) The actions that the respective boards of directors will take to continue to
improve Irwin’s and the Bank’s condition and maintain effective control over, and supervision
of, Irwin’s and the Bank’s senior management and major operations and activities, including
but
not limited to, lending, credit administration, management of credit concentrations, and funds
management;

          (b) a description of the information and reports that will be regularly reviewed
by the respective boards of directors in their oversight of the operations and management of
Irwin and the Bank, including information on the Bank’s adversely classified assets,
concentrations of credits, allowance for loan and lease losses (“ALLL”), earnings, and
liquidity;
and

2

 

          (c) continued efforts to enhance the organization’s risk management framework
and tools.

Management Review

     2. Within 30 days of this Agreement, the Bank shall submit to the Reserve Bank and
the DFI a report prepared by the independent consultant, who was previously retained by the
Bank
and approved by the Reserve Bank and the DFI, regarding its assessment of the Bank’s

management, including the qualifications and performance of all senior Bank management.

     3. Within 60 days of this Agreement, the board of directors shall take steps based on
the independent consultant’s report to hire additional or replacement officers as are needed
to
properly manage the Bank.

Liquidity/Funds Management

     4. (a) Within 30 days of this Agreement, Irwin and the Bank shall submit to the
Reserve Bank and the DFI an acceptable joint written liquidity/funds management plan designed
to improve management of Irwin’s and the Bank’s liquidity positions and funds management
practices. The plan shall, at a minimum, address, consider, and include:

               (i) Steps
to diversify sources of funding and reduce reliance on short-term wholesale funding;

               (ii) appropriate measures to monitor Irwin’s and the Bank’s liquidity
position;

               (iii) the maintenance of sufficient liquidity to meet contractual
obligations and unanticipated demands; and

               (iv) enhanced reporting to the boards of directors regarding liquidity.

3

 

          (b) Within 30 days of this Agreement, Irwin and the Bank shall submit to the Reserve
Bank and the DFI an updated joint contingency funding plan that, at a minimum, identifies available
sources of liquidity and includes adverse scenario planning.

Capital Plan

     5. (a) Within 30 days of this Agreement, Irwin and the Bank shall submit to the
Reserve Bank and the DFI an acceptable joint written capital plan (the “Capital Plan”) that will,
at a minimum, ensure that Irwin, on a consolidated basis, and the Bank, as a separate legal entity
on a stand-alone basis, maintain sufficient capital. The plan shall, at a minimum, address,
consider, and include:

               (i) Irwin’s current and future capital requirements, including
compliance with the Capital Adequacy Guidelines for Bank Holding Companies: Risk-Based Measure
and Tier 1 Leverage Measure, Appendices A and D of Regulation Y of the Board of Governors of the
Federal Reserve System (the “Board of Governors”)
(12 C.F.R. Part 225, App. A and D);

               (ii) the Bank’s current and future capital requirements, including
compliance with the Capital Adequacy Guidelines for State Member Banks: Risk-Based Measure and
Tier 1 Leverage Measure, Appendices A and B of Regulation H of the Board of Governors
(12 C.F.R. Part 208, App. A and B);

               (iii) the volume of the Bank’s adversely classified assets,
concentrations of credit, adequacy of the ALLL, planned growth of assets, and anticipated level of
retained earnings; and

4

 

               (iv) the source and timing of additional funds that may be needed to fulfill Irwin’s and
the Bank’s future capital requirements and the ALLL needs of the Bank.

          (b) The boards of directors of Irwin and the Bank shall review the sufficiency of the
capital position of Irwin and the Bank on a monthly basis and shall reflect such reviews in the
minutes of their respective board of directors’ meetings.

Allowance for Loan and Lease Losses

     6. (a) The Bank shall, within 30 days from the receipt of any federal or state
report of examination, charge off all assets classified “loss” unless otherwise approved in writing
by the Reserve Bank and the DFI.

          (b) Within 90 days of this Agreement, the Bank shall review and revise its
ALLL methodology consistent with relevant supervisory guidance, including the Interagency
Policy Statements on the Allowance for Loan and Lease Losses, dated July 2, 2001 (SR 01-17
(Sup)) and December 13, 2006 (SR 06-17), and the findings and recommendations regarding the
ALLL set forth in the Supervisory Letter dated May 6, 2008 and subsequent examinations, and
submit a description of the revised methodology to the Reserve Bank and the DFI. The revised
ALLL methodology shall be designed to maintain an adequate ALLL and shall address,
consider, and include, at a minimum, the reliability of the Bank’s loan grading system, the
volume of criticized loans, concentrations of credit, the current level of past due and
nonperforming loans, past loan loss experience, evaluation of probable losses in the Bank’s
loan
portfolio, including adversely classified loans, and the impact of market conditions on loan
and
collateral valuations and collectibility.

          (c) Within 90 days of this Agreement, the Bank shall submit to the Reserve
Bank and the DFI an acceptable written program for the maintenance of an adequate ALLL. The

          
5

 

program shall include policies and procedures to ensure adherence to the revised ALLL methodology
and provide for periodic reviews and updates to the ALLL methodology, as appropriate. The program
shall also provide for a review of the ALLL by the board of directors on at least a quarterly
calendar basis. Any deficiency found in the ALLL shall be remedied in the quarter it is discovered,
prior to the filing of the Consolidated Reports of Condition and Income, by additional provisions.
The board of directors shall maintain written documentation of its review, including the factors
considered and conclusions reached by the Bank in determining the adequacy of the ALLL. During the
term of this Agreement, the Bank shall submit to the Reserve Bank and the DFI, within 30 days after
the end of each calendar quarter, a written report regarding the board of directors’ quarterly
review of the ALLL and a description of any changes to the methodology used in determining the
amount of ALLL for that quarter.

Dividends

     7. (a) Irwin and the Bank shall not declare or pay any dividends without the prior
written approval of the Reserve Bank, the Director of the Division of Banking Supervision and
Regulation of the Board of Governors (“Director”), and, as to the Bank, also the DFI.

          (b) Irwin shall not take, and the Bank shall not make, any other form of
payment representing a reduction in capital from the Bank without the prior written approval
of
the Reserve Bank and, as to the Bank, also the DFI.

          (c) Irwin and its nonbank subsidiaries shall not make any distributions of
interest, principal, or other sums on subordinated debentures or trust preferred securities
without
the prior written approval of the Reserve Bank and the Director.

          (d) All requests for prior approval shall be received at least 30 days prior to
the proposed dividend declaration date, proposed distribution on subordinated debentures, and

          
6

 

required notice of deferral on trust preferred securities. All requests shall contain, at
minimum, current and projected information, as appropriate, on Irwin’s capital, earnings, and cash
flow; the Bank’s capital, asset quality, earnings and ALLL; and the identification of the sources
of funds for the proposed payment or distribution. For requests to declare or pay dividends,
Irwin and the Bank, as appropriate, must also demonstrate that the requested declaration or payment
of dividends is consistent with the Board of Governors’ Policy Statement on the Payment of Cash
Dividends by State Member Banks and Bank Holding Companies, dated November 14, 1985 (Federal
Reserve Regulatory Service, 4-877 at page 4-323) and, as to the Bank, with the limitations
contained in Ind. Code 28-13-4 et seq.

Debt and Stock Redemption

     8. (a) Irwin and its nonbank subsidiaries shall not, directly or indirectly, incur,
increase, or guarantee any debt without the prior written approval of the Reserve Bank. All
requests for prior written approval shall contain, but not be limited to, a statement
regarding the
purpose of the debt, the terms of the debt, and the planned source(s) for debt repayment, and
an
analysis of the cash flow resources available to meet such debt repayment.

          (b) Irwin shall not, directly or indirectly, purchase or redeem any shares of its stock
without the prior written approval of the Reserve Bank.

Strategic Plan and Budget

     9. (a) Within 60 days of this Agreement, Irwin and the Bank shall submit to the
Reserve Bank and the DFI, a three-year strategic plan and a 2009 operating plan and budget for
Irwin on a consolidated basis, and the Bank, as a separate legal entity, on a stand-alone
basis,
that shall, at a minimum, address, consider, and include:

               (i) goals and strategies for improving Irwin’s and the Bank’s earnings;

7

 

               (ii) the responsibilities of the board of directors regarding the definition,
approval, implementation, and monitoring of the earnings plan and budget;

               (iii) an identification of the major areas in, and means by which the
board of directors and management shall seek to improve Irwin’s and the Bank’s earnings and
operating performance; and

               (iv) a comprehensive budget that includes the operating assumptions that form the basis
for, and adequately support, major projected income and expense components.

          (b) Irwin and the Bank shall establish a monthly review process to monitor
Irwin’s and the Bank’s financial performance and to compare the actual income and expenses to
budgetary projections. Irwin and the Bank shall submit a monthly report regarding its
financial
performance to the Reserve Bank and the DFI within ten days of the end of each month.

          (c) A business plan and budget for each calendar year subsequent to 2009
shall be submitted by Irwin and the Bank to the Reserve Bank and the DFI at least 30 days
prior
to the beginning of that calendar year.

Compliance with Laws and Regulations

     10. In appointing any new director or senior executive officer, or changing the
responsibilities of any senior executive officer so that the officer would assume a different
senior executive officer position, Irwin and the Bank shall comply with the notice provisions of
section 32 of the FDI Act (12 U.S.C. § 183li) and Subpart H of Regulation Y of the Board of
Governors (12 C.F.R. §§ 225.71 et seq.).

8

 

     11. Irwin and the Bank shall comply with the restrictions on indemnification and
severance payments of section 18(k) of the FDI Act (12 U.S.C. § 1828(k)) and Part 359 of the
Federal Deposit Insurance Corporation’s regulations (12 C.F.R. Part 359).

Compliance with the Agreement

     12. (a) Within 10 days of this Agreement, the boards of directors of Irwin and the
Bank shall appoint a joint committee (the “Compliance Committee”) to monitor and coordinate
Irwin’s and the Bank’s compliance with the provisions of this Agreement. The Compliance
Committee shall include at least three outside directors who are not executive officers or
principal shareholders of Irwin or the Bank, as defined in sections 215.2(e)(l) and
215.2(m)(l)
of Regulation O of the Board of Governors (12 C.F.R. §§ 215.2(e)(l) and 215.2(m)(l)). At a
minimum, the Compliance Committee shall meet at least monthly, keep detailed minutes of each
meeting, and report its findings to the boards of directors.

          (b) Within 30 days after the end of each calendar quarter following the date of this
Agreement, Irwin and the Bank, as applicable, shall submit to the Reserve Bank and the DFI written
progress reports detailing the form and manner of all actions taken to secure compliance with this
Agreement and the results thereof.

Approval, Implementation, and Progress Reports

     13. (a) Irwin and the Bank, as applicable, shall submit written plans and a
program that are acceptable to the Reserve Bank and the DFI within the applicable time periods
set forth in paragraphs 4, 5 and 6(c) of this Agreement.

          (b) Within 10 days of approval by the Reserve Bank and the DFI, Irwin and the Bank, as
applicable, shall adopt the approved plans and program. Upon adoption, Irwin and

9

 

the Bank, as applicable, shall promptly implement the approved plans and program, and
thereafter fully comply with them.

          (c) During the term of this Agreement, the approved plans and program shall not be
amended or rescinded without the prior written approval of the Reserve Bank and the DFI.

Communications

     14. All communications regarding this Agreement shall be sent to:

			
	          (a)	 	Ms. Cathy
Lemieux

Senior Vice President

Federal Reserve Bank of Chicago
230
South LaSalle Street 
Chicago, Illinois
60690

			
	          (b)	 	Ms. Judith
G. Ripley

Director

Indiana Department of Financial Institutions 
30
South Meridian Street, Suite 300 
Indianapolis,
Indiana 46204

			
	          (c)	 	Mr. William I. Miller, Chairman, and Chief Executive
Officer

Irwin Financial Corporation

Irwin Union Bank and Trust Company 
500 Washington Street 
Columbus,
IN 47202-0929

Miscellaneous

     15. Notwithstanding any provision of this Agreement to the contrary, the Reserve
Bank and the DFI may, in their sole discretion, grant written extensions of time to Irwin and
the
Bank to comply with any provision of this Agreement.

     16. The provisions of this Agreement shall be binding upon Irwin, the Bank and their
institution-affiliated parties, in their capacities as such, and their successors and assigns.

     17. Each provision of this Agreement shall remain effective and enforceable until stayed, modified, terminated, or suspended in writing by the Reserve Bank and the DFI.

10

 

     18. The provisions of this Agreement shall not bar, estop or otherwise prevent the
Board of Governors, the Reserve Bank, the DFI or any other federal or state agency from taking
any other action affecting Irwin, the Bank, any nonbank subsidiaries of Irwin, or any of their
current or former institution-affiliated parties and their successors and assign s.

     19. Pursuant to section 50 of the FDI Act (12 U.S.C. § 183laa), this Written Agreement is enforceable by the Board of Governors under section 8 of the FDI Act (12 U.S.C.
§ 1818). This Written Agreement is enforceable by the DFI under Ind. Code 28-11-4-10.

     IN WITNESS WHEREOF, the parties have caused this Agreement to be executed as of this 10th day of
October, 2008.

	 	 	 	 	 	 	 	 	 	 	 
	IRWIN FINANCIAL CORPORATION	 	 	 	FEDERAL RESERVE BANK OF CHICAGO	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:

	 	/s/ William I. Miller
	 	 	 	By:
	 	/s/ Cathy Lemieux	 	 
	 

	 	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	IRWIN UNION BANK AND TRUST 

COMPANY	 	 	 	INDIANA DEPARTMENT OF FINANCIAL

INSTITUTIONS	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:

	 	/s/ William I. Miller
	 	 	 	By:
	 	/s/ Judith G. Ripley	 	 
	 

	 	 
	 	 	 	 	 	 	 	 

11

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