Document:

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                                                                   Exhibit 10.36

                  AMERICAN INDUSTRIAL REAL ESTATE ASSOCIATION
                               STANDARD SUBLEASE
                (Long-Form to be used with pre-1996 AIR leases)

     1.   Parties.   This Sublease, dated, for reference purposes only, February
3, 2000, is made by and between PACIFIC FINANCIAL PRINTING ("Sublessor") and
MEMRY CORPORATION ("Sublessee").

     2.   Premises.  Sublessor hereby subleases to Sublessee and Sublessee
hereby subleases from Sublessor for the term, at the rental, and upon all of the
conditions set forth herein, that certain real properly, including all
improvements therein, and commonly known by the street address of 4020 Campbell
Avenue, Menlo Park located in the County of  San Mateo, State of California and
generally described as (describe briefly the nature of the property) A + 10,000
square foot portion of a + 22,000 square foot Industrial Building.  See attached
Exhibit "A" entitled "Sublease Premises" ("Premises").

     3.   Term.

          3.1  Term.  The term of this Sublease shall be for Thirteen (13)
months commencing on March 15 , 2000 and ending on Midnight, April 14, 2001
unless sooner terminated pursuant to any provision hereof.

          3.2  Delay In Commencement. Sublessor agrees to use its best
commercially reasonable efforts to deliver possession of the Premises by the
commencement date. If, despite said efforts, Sublessor is unable to deliver
possession as agreed, Sublessor shall not be subject to any liability therefor,
nor shall such failure affect the validity of this Sublease. Sublessee shall
not, however, be obligated to pay Rent or perform its other obligations until it
receives possession of the Premises. If possession is not delivered within sixty
days after the commencement date, Sublessee may, at its option, by notice in
writing within ten days after the end of such sixty day period, cancel this
Sublease, in which event the Parties shall be discharged from all obligations
hereunder. If such written notice is not received by Sublessor within said ten
day period, Sublessee's right to cancel shall terminate. Except as otherwise
provided, if possession is not tendered to Sublessee when required and Sublessee
does not terminate this Sublease, as aforesaid, any period of rent abatement
that Sublessee would otherwise have enjoyed shall run from the date of delivery
of possession and continue for a period equal to what Sublessee would otherwise
have enjoyed under the terms hereof, but minus any days of delay caused by the
acts or omissions of Sublessee. If possession is not delivered within 120 days
after the commencement date, this Sublease shall automatically terminate unless
the Parties agree, in writing, to the contrary.

                                 Page 1 of 16
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     4.   Rent.

          4.1  Base Rent. Sublessee shall pay to Sublessor as Base Rent for the
Premises equal monthly payments of $8,000.00 in advance, on the 15th day of each
month of the term hereof. Sublessee shall pay Sublessor upon the execution
hereof $8,000.00 as Base Rent for March 15, 2000 through April 14, 2000. Base
Rent for any period during the term hereof which is for less than one month
shall be a pro rata portion of the monthly installment.

          4.2  Rent Defined.  All monetary obligations of Sublessee to Sublessor
under the terms of this Sublease (except for the Security Deposit) are deemed to
be rent ("Rent").  Rent shall be payable in lawful money of the United States to
Sublessor at the address stated herein or to such other persons or at such other
places as Sublessor may designate in writing.

     5.   Security Deposit.  Sublessee shall deposit with Sublessor upon
execution hereof $10,000.00 as security for Sublessee's faithful performance of
Sublessee's obligations hereunder. If Sublessee fails to pay Rent or other
charges due hereunder, or otherwise defaults with respect to any provision of
this Sublease, Sublessor may use, apply or retain all or any portion of said
deposit for the payment of any Rent or other charge in default or for the
payment of any other sum to which Sublessor may become obligated by reason of
Sublessee's default, or to compensate Sublessor for any loss or damage which
Sublessor may suffer thereby. If Sublessor so uses or applies all or any portion
of said deposit, Sublessee shall within ten days after written demand therefore
forward to Sublessor an amount sufficient to restore said Deposit to the full
amount provided for herein and Sublessee's failure to do so shall be a material
breach of this Sublease. Sublessor shall not be required to keep said Deposit
separate from its general accounts. If Sublessee performs all of Sublessee's
obligations hereunder, said Deposit, or so much thereof as has not therefore
been applied by Sublessor, shall be returned, without payment of interest to
Sublessee (or at Sublessor's option, to the last assignee, if any, of
Sublessee's Interest hereunder) at the expiration of the term hereof, and after
Sublessee has vacated the Premises.  No trust relationship is created herein
between Sublessor and Sublessee with respect to said Security Deposit.

     6.   Use.

          6.1  Agreed Use. The Premises shall be used and occupied only for
development, manufacturing, and assembly of medical devices and other industrial
items; related office uses (which Master Lessor hereby approves) and for no
other purpose.

          6.2  Compliance. Sublessor warrants that the improvements on the
Premises comply with all applicable covenants or restrictions of record and
applicable building codes, regulations and ordinances ("Applicable
Requirements") in effect on the commencement date. Said warranty does not apply
to the use to which Sublessee will put the Premises or to any alterations or
utility installations made or to be made by Sublessee. NOTE: Sublessee is
responsible for determining whether or not the zoning is appropriate for its
intended use, and acknowledges that past uses of the Premises may no longer be
allowed. If the Premises do not comply with said warranty,

                                 Page 2 of 16
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Sublessor shall, except as otherwise provided, promptly after receipt of written
notice from Sublessee setting forth with specificity the nature and extent of
such non-compliance, rectify the same at Sublessor's expense. If Sublessee does
not give Sublessor written notice of a non-compliance with this warranty within
six months following the commencement date, correction of that non-compliance
shall be the obligation of Sublessee at its sole cost and expense. If the
Applicable Requirements are hereafter changed so as to require during the term
of this sublease the construction of an addition to or an alteration of the
Building, the remediation of any Hazardous Substance, or the reinforcement or
other physical modification of the Building ("Capital Expenditure"), Sublessor
and Sublessee shall allocate the cost of such work as follows:

          (a)  If such Capital Expenditures are required as a result of the
specific and unique use of the Premises by Sublessee as compared with uses by
tenants In general, Sublessee shall be fully responsible for the cost thereof
provided, however, that If such Capital Expenditure is required during the last
two years of this Sublease and the cost thereof exceeds six months' Base Rent,
Sublessee may instead terminate this Sublease unless Sublessor notifies
Sublessee in writing, within ten days after receipt of Sublessee's termination
notice that Sublessor has elected to pay the difference between the actual cost
thereof and the amount equal to six months' Base Rent. If the Parties elect
termination, Sublessee shall immediately cease the use of the Premises which
requires such Capital Expenditure and deliver to Sublessor written notice
specifying a termination date at least ninety days thereafter.  Such termination
date shall, however, in no event be earlier then the last day that Sublessee
could legally utilize the Premises without commencing such Capital Expenditure.

          (b)  If such Capital Expenditure is not the result of the specific and
unique use of the Premises by Sublessee (such as governmentally mandated seismic
modifications, then Sublessor shall pay for said Capital Expenditure and the
cost thereof shall be prorated between the Sublessor and Sublessee and Sublessee
shall only be obligated to pay, each month during the remainder of the term of
this Sublease, on the date on which Rent is due, an amount equal to the product
of multiplying the cost of such Capital Expenditure by a fraction, the numerator
of which is one, and the denominator of which is the number of months of the
useful life of such Capital Expenditure as such useful life is specified
pursuant to Federal income tax regulations or guidelines for depreciation
thereof (including interest on the unamortized balance as is then commercially
reasonable in the judgment of Sublessor's accountant), with Sublessee reserving
the right to prepay its obligation at any time.  Provided, however, that if such
Capital Expenditure is required during the last two years of this Sublease or if
Sublessor reasonably determines that it is not economically feasible to pay its
share thereof, Sublessor shall have the option to terminate this Sublease upon
ninety days prior written notice to Sublessee unless Sublessee notifies
Sublessor, in writing, within ten days after receipt of Sublessor's termination
notice that Sublessee will pay for such Capital Expenditure.  If Sublessor does
not elect to terminate, and fails to tender its share of any such Capital
Expenditure, Sublessee may advance such funds and deduct same, with interest,
from Rent until Sublessor's share of such costs have been fully paid.  If
Sublessee is unable to finance Sublessor's share, or if the balance of the Rent
due and payable for the remainder of this Sublease is not sufficient to fully
reimburse Sublessee on an offset basis, Sublessee shall have the right to
terminate this Sublease upon ten days written notice to Sublessor.

                                 Page 3 of 16
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               (c)  Notwithstanding the above, the provisions concerning Capital
Expenditures are intended to apply only to nonvoluntary, unexpected, and new
Applicable Requirements.  If the Capital Expenditures are instead triggered by
Sublessee as a result of an actual or proposed change in use, change in
intensity of use, or modification to the Premises then, and in that event,
Sublessee shall be fully responsible for the cost thereof, and Sublessee shall
not have any right to terminate this Sublease.

          6.3  Acceptance of Premises and Lessee. Sublessee acknowledges that:

               (a)  it has been advised by Brokers to satisfy itself with
respect to the condition of the Premises (including but not limited to the
electrical, HVAC and fire sprinkler systems, security, environmental aspects,
and compliance with Applicable Requirements), and their suitability for
Sublessee's intended use,

               (b)  Sublessee has made such investigation as it deems necessary
with reference to such matters and assumes all responsibility therefor as the
same relate to its occupancy of the Premises, and

               (c)  neither Sublessor, Sublessor' s agents, nor any Broker has
made any oral or written representations or warranties with respect to said
matters other than as set forth in this Sublease.

In addition, Sublessor acknowledges that:

               (a)  broker has made no representations, promises or warranties
concerning Sublessee's ability to honor the Sublease or suitability to occupy
the Premises, and

               (b)  it is Sublessor's sole responsibility to investigate the
financial capability and/or suitability of all proposed tenants.

     7.   Master Lease

          7.1  Sublessor is the lessee of the Premises by virtue of a lease,
hereinafter the "Master Lease", a copy of which is attached hereto marked
Exhibit 1, wherein ALBERT M. GOUNOD is the lessor, hereinafter the "Master
Lessor".

          7.2  This Sublease is and shall be at all times subject and
subordinate to the Master Lease.

          7.3  The terms, conditions and respective obligations of Sublessor and
Sublessee to each other under this Sublease shall be the terms and conditions of
the Master Lease except for those provisions of the Master Lease which are
directly contradicted by this Sublease in which event the terms of this Sublease
document shall control over the Master Lease.  Therefore, for the purposes

                                 Page 4 of 16
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of this Sublease, wherever in the Master Lease the word "Lessor" is used it
shall be deemed to mean the Sublessor herein and wherever in the Master Lease
the word "Lessee" is used it shall be deemed to mean the Sublessee herein. (See
Addendum #24)

          7.4  During the term of this Sublease and for all periods subsequent
for obligations which have arisen prior to the termination of this Sublease,
Sublessee does hereby expressly assume and agree to perform and comply with, for
the benefit of Sublessor and Master Lessor, each and every obligation of
Sublessor under the Master Lease except for the following paragraphs which are
excluded therefrom: Base Rent, Renewal Option, First Right of Refusal, Tenant
Improvements, Building Code Requirements, Maintenance & Repair, Property
Insurance, Real Property Tax & Brokers.

          7.5  The obligations that Sublessee has assumed under paragraph 7.4
hereof are hereinafter referred to as the "Sublessee's Assumed Obligations". The
obligations that sublessee has not assumed under paragraph 7.4 hereof are
hereinafter referred to as the "Sublessor's Remaining Obligations".

          7.6  Sublessee shall hold Sublessor free and harmless from all
liability, judgments, costs, damages, claims or demands, Including reasonable
attorneys fees, arising out of Sublessee's failure to comply with or perform
Sublessee's Assumed Obligations.

          7.7  Sublessor agrees to maintain the Master Lease during the entire
term of this Sublease, subject, however, to any earlier termination of the
Master Lease without the fault of the Sublessor, and to comply with or perform
Sublessor's Remaining Obligations and to hold Sublessee free and harmless from
all liability, judgments, costs, damages, claims or demands arising out of
Sublessor's failure to comply with or perform Sublessor's Remaining Obligations.

          7.8  Sublessor represents to Sublessee that the Master Lease is in
full force and effect and that no default exists on the part of any Party to the
Master Lease.

     8.   Assignment of Sublease and Default.

          8.1  Sublessor hereby assigns and transfers to Master Lessor the
Sublessor's interest in this Sublease, subject however to the provisions of
Paragraph 8.2 hereof.

          8.2  Master Lessor, by executing this document, agrees that until a
Default shall occur in the performance of Sublessor's Obligations under the
Master Lease, that Sublessor may receive, collect and enjoy the Rent accruing
under this Sublease. However, if Sublessor shall Default in the performance of
its obligations to Master Lessor then Master Lessor may, at its option, receive
and collect, directly from Sublessee, all Rent owing and to be owed under this
Sublease. Master Lessor shall not, by reason of this assignment of the Sublease
nor by reason of the collection of the Rent from the Sublessee, be deemed liable
to Sublessee for any failure of the Sublessor to perform and comply with
Sublessor's Remaining Obligations.

                                 Page 5 of 16
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          8.3  Sublessor hereby irrevocably authorizes and directs Sublessee
upon receipt of any written notice from the Master Lessor stating that a Default
exists in the performance of Sublessor's obligations under the Master Lease, to
pay to Master Lessor the Rent due and to become due under the Sublease.
Sublessor agrees that Sublessee shall have the right to rely upon any such
statement and request from Master Lessor, and that Sublessee shall pay such Rent
to Master Lessor without any obligation or right to inquire as to whether such
Default exists and notwithstanding any notice from or claim from Sublessor to
the contrary and Sublessor shall have no right or claim against Sublessee for
any such Rent so paid by Sublessee.

          8.4  No changes or modifications shall be made to this Sublease
without the consent of Master Lessor.

     9.   Consent of Master Lessor.

          9.1  In the event that the Master Lease requires that Sublessor obtain
the consent of Master Lessor to any subletting by Sublessor then, this Sublease
shall not be effective unless, within ten days of the date hereof, Master Lessor
signs this Sublease thereby giving its consent to this Subletting.

          9.2  In the event that the obligations of the Sublessor under the
Master Lease have been guaranteed by third parties then neither this Sublease,
nor the Master Lessor's consent, shall be effective unless, within 10 days of
the date hereof, said guarantors sign this Sublease thereby giving their consent
to this Sublease.

          9.3  In the event that Master Lessor does give such consent then:

               (a)  Such consent shall not release Sublessor of its obligations
or alter the primary liability of Sublessor to pay the Rent and perform and
comply with all of the obligations of Sublessor to be performed under the Master
Lease.

               (b)  The acceptance of Rent by Master Lessor from Sublessee or
anyone else liable under the Master Lease shall not be deemed a waiver by Master
Lessor of any provisions of the Master Lease.

               (c)  The consent to this Sublease shall not constitute a consent
to any subsequent subletting or assignment.

               (d)  In the event of any Default of Sublessor under the Master
Lease, Master Lessor may proceed directly against Sublessor, any guarantors or
anyone else liable under the Master Lease or this Sublease without first
exhausting Master Lessor's remedies against any other person or entity liable
thereon to Master Lessor.

                                 Page 6 of 16
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               (e)  Master Lessor may consent to subsequent sublettings and
assignments of the Master Lease or this Sublease or any amendments or
modifications thereto without notifying Sublessor or anyone else liable under
the Master Lease and without obtaining their consent and such action shall not
relieve such persons from liability.

               (f)  In the event that Sublessor shall Default in its obligations
under the Master Lease, then Master Lessor, at its option and without being
obligated to do so, may require Sublessee to attorn to Master Lessor in which
event Master Lessor shall undertake the obligations of Sublessor under this
Sublease from the time of the exercise of said option to termination of this
Sublease but Master Lessor shall not be liable for any prepaid Rent nor any
Security Deposit paid by Sublessee, nor shall Master Lessor be liable for any
other Defaults of the Sublessor under the Sublease.

          9.4  The signatures of the Master Lessor and any Guarantors of
Sublessor at the end of this document shall constitute their consent to the
terms of this Sublease.

          9.5  Master Lessor acknowledges that, to the best of Master Lessor's
knowledge, no Default presently exists under the Master Lease of obligations to
be performed by Sublessor and that the Master Lease is in full force and effect.

          9.6  In the event that Sublessor Defaults under its obligations to be
performed under the Master Lease by Sublessor, Master Lessor agrees to deliver
to Sublessee a copy of any such notice of default. Sublessee shall have the
right to cure any Default of Sublessor described in any notice of default within
ten days after service of such notice of default on Sublessee. If such Default
is cured by Sublessee then Sublessee shall have the right of reimbursement and
offset from and against Sublessor.

     10.  Brokers Fee.

          10.1 Upon execution hereof by all parties, Sublessee shall pay to
Resource One a licensed real estate broker, ("Broker"), a fee as set forth in a
separate agreement between Sublessor and Broker, or in the event there is no
such separate agreement, the sum of $3,500.00 for brokerage services rendered by
Broker to Sublessor in this transaction.

          10.2 Sublessor agrees that if Sublessee exercises any option or right
of first refusal as granted by Sublessor herein, or any option or right
substantially similar thereto, either to extend the term of this Sublease, to
renew this Sublease, to purchase the Premises, or to lease or purchase adjacent
property which Sublessor may own or in which Sublessor has an interest, then
Sublessor shall pay to Broker a fee in accordance with the schedule of Broker In
effect at the time of the execution of this Sublease. Notwithstanding the
foregoing, Sublessor's obligation under this Paragraph 10.2 is limited to a
transaction in which Sublessor is acting as a Sublessor, lessor or seller.

          10.3 [Deleted]

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          10.4 Any fee due from Sublessor hereunder shall be due and payable
upon the exercise of any option to extend or renew, upon the execution of any
new lease, or, in the event of a purchase, at the close of escrow.

          10.5 Any transferee of Sublessor's interest in this Sublease, or of
Master Lessor's interest in the Master Lease, by accepting an assignment
thereof, shall be deemed to have assumed the respective obligations of Sublessor
or Master Lessor under this Paragraph 10, Broker shall be deemed to be a third-
party beneficiary of this paragraph 10.

     11.  Attorney's Fees. If any party or the Broker named herein brings an
action to enforce the terms hereof or to declare rights hereunder, the
prevailing party in any such action, on trial and appeal, shall be entitled to
his reasonable attorney's fees to be paid by the losing party as fixed by the
Court.

     12.  Additional Provisions.  [If there are no additional provisions, draw a
line from this point to the next printed word after the space left here.  If
there are additional provisions place the same here.]   See attached Exhibit A
entitled "Sublease Premises", Exhibit B entitled "Proposed Building
Improvements", Exhibit C entitled"Hazardous Materials On Site", and Exhibit D
entitled "Removal of Tenant Improvements", and Addendum #'s 13-25.

ATTENTION:  NO REPRESENTATION OR RECOMMENDATION IS MADE BY THE AMERICAN
INDUSTRIAL REAL ESTATE ASSOCIATION OR BY ANY REAL ESTATE BROKER AS TO THE LEGAL
SUFFICIENCY, LEGAL EFFECT, OR TAX CONSEQUENCES OF THIS SUBLEASE OR THE
TRANSACTION TO WHICH IT RELATES, THE PARTIES ARE URGED TO:

1.   SEEK ADVICE OF COUNSEL AS TO THE LEGAL AND TAX CONSEQUENCES OF THIS
SUBLEASE.

2.   RETAIN APPROPRIATE CONSULTANTS TO REVIEW AND INVESTIGATE THE CONDITION OF
THE PREMISES, SAID INVESTIGATION SHOULD INCLUDE BUT NOT BE LIMITED TO: THE
POSSIBLE PRESENCE OF HAZARDOUS SUBSTANCES, THE ZONING OF THE PROPERTY, THE
STRUCTURAL INTEGRITY, THE CONDITION OF THE ROOF AND OPERATING SYSTEMS, AND THE
SUITABILITY OF THE PREMISES FOR SUBLESSEE'S INTENDED USE.

WARNING:  IF THE SUBJECT PROPERTY IS LOCATED IN A STATE OTHER THAN CALIFORNIA,
--------
CERTAIN PROVISIONS OF THE SUBLEASE MAY NEED TO BE REVISED TO COMPLY WITH THE
LAWS OF THE STATE IN WHICH THE PROPERTY IS LOCATED.

Executed at: 4020 Campbell Avenue        Pacific Financial Printing
on: February 16, 2000                    By  Mr. Tom Johnson
Address: 4020 Campbell Avenue            By  /s/ Thomas P. Johnson
                                            ----------------------------------
         Menlo Park, CA 94025            "Sublessor" (Corporate Seal)

Executed at: 57 Commerce Dr.,            Memry Corporation
Brookfield, CT
on: February 3, 2000                     By  /s/ Joseph Pasqualucci, VP,
                                                 Operations
                                            ----------------------------------
Address: 57 Commerce Drive               "Sublessee" (Corporate Seal)
         Brookfield, CT 06804

                                 Page 8 of 16
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Executed at: 373 Alicia Way, Los Altos   Owner of Building
on: February 16, 2000                    By  Mr. Albert M. Gounod
Address: 373 Alicia Way                  By  /s/ Albert M. Gounod
                                            ----------------------------------
         Los Altos, CA 94022                 "Master Lessor" (Corporate Seal)

NOTE:  These forms are often modified to meet changing requirements of law and
needs of the Industry.  Always write or call to make sure you are utilizing the
most current from:  AMERICAN INDUSTRIAL REAL ESTATE ASSOCIATION, 700 So. Flower
St., Suite 600, Los Angeles, CA 90017. (213) 687-8777.

Note: The above stated addresses for each party shall serve as the proper
      address for formal/legal notification.

                                 Page 9 of 16
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This Addendum pertains to the Standard Sublease dated February 3, 2000 by and
between Pacific Financial Printing as Sublessor, and Memry Corporation as
Sublessee for a portion of the property commonly known as 4020 Campbell Avenue,
Menlo Park, CA.

13.  The Sublessee to have full access to the Sublease Premises upon full
execution of this Sublease document for purposes of constructing tenant
improvements and setting up Sublessee's operations.

14.  The Sublessee accepts the Sublease Premises in "AS-IS" condition implying
no warranty from Sublessor.  Sublessor agrees to remove all personal property
from the Sublease Premises upon full execution of the Sublease document.

15.  Sublessee shall be granted exclusive use of fifteen (15) of the existing
striped parking stalls. Sublessee may mark said stalls at Sublessee's own cost
should they so desire.

16.  By signing and delivering the Sublease document to the Sublessee, the
Sublessor and Master Lessor has thereby given approval for the Sublessee's
proposed building improvements as outlined in Exhibit B.  Please note that the
Sublessee may or may not elect to install one (1) or two (2) new restrooms.

17.  By signing and delivering the Sublease document to the Sublessee, the
Sublessor and Master Lessor has thereby approved for the hazardous material
which the Sublessee will be storing on site (as outlined in Exhibit C.)

18.  Upon termination of this Sublease agreement, Sublessee agrees to remove all
it's personal property, have the Sublease Premises' professionally cleaned, and
complete all items as outlined in Exhibit D.

19.  Since there shall be no separate metering for utilities, the Sublessee
agrees to pay all electrical and water bills that exceed the average monthly
charge that the Sublessor has incurred over the previous six (6) months. The
Sublessee shall not be responsible for any other charges other than the Base
Rent and the utility charges.

20.  The Sublessor shall be responsible for all costs associated with
securitising the common area restrooms, hallway, and lunchroom from Sublessor's
existing operations and grants front door access to Sublessor's employees 7
days, 24 hours.

21.  Sublessee shall have 24 hour/7days per week access to the Sublease Premises
and Common Areas as shown on Exhibit A.

22.  Sublessee agrees to properly maintain both the Sublease Premises and Common
Areas which will include professional janitorial services.

                                 Page 10 of 16
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23.  Should the Sublessor elect to exercise his five (5) year lease extension or
elect to purchase the building, the Sublessee is hereby granted the first right
of refusal to stay in the Sublease Premises.  In the case of a lease extension,
the new sublease Base Rental Rate would become equal to the same per square foot
charge being paid by the Sublessor, and the term of Sublease would be set by the
Sublessee.  In the case of a building purchase, the rate and term would be
negotiated.

24.  The following language is to be added to paragraph 7.3 of the Standard
Sublease preprinted form: "Additionally, wherever in the Master Lease the word
"Premises" is used it shall be deemed to mean the "Sublease Premises".

25.  All terms and conditions as outlined in this Sublease Addendum shall
supersede any conflicting terms or conditions discussed in the preprinted
Standard Sublease document.

AGREED AND ACCEPTED:

/s/ Thomas P. Johnson                          2/16/00
-------------------------------------------    -------------------------------
Pacific Financial Printing/Sublessor           Date

/s/ Joseph Pasqualucci                         2/3/00
-------------------------------------------    -------------------------------
Memry Corporation/Sublessee                    Date
VP Operations
Joseph Pasqualucci

/s/ Albert M. Gounod                           2/16/00
-------------------------------------------    -------------------------------
Mr. Albert M. Gounod/Master Lessor             Date

                                 Page 11 of 16
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                                   Exhibit 1

                                 Master Lease

                                 Page 12 of 16
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                                   Exhibit A

                               Sublease Premises

                                 Page 13 of 16
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                                   Exhibit B

                        Proposed Building Improvements

                                 Page 14 of 16
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                                   Exhibit C

                          Hazardous Materials on Site

                                 Page 15 of 16
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                                   Exhibit D

                        Removal of Tenant Improvements

                                 Page 16 of 16<PAGE>

                                                                     Exhibit 4.1

                                   RESTATED
                           ARTICLES OF INCORPORATION
                                      OF
                          IRWIN FINANCIAL CORPORATION

     Irwin Financial Corporation, existing pursuant to the Indiana Business
Corporation Law, desiring to give notice of corporate action effectuating the
restatement of its Articles of Incorporation, sets forth the following:

     Irwin Financial Corporation (the "Corporation") was incorporated on May 31,
1972 under the name Irwin Union Corporation. On August 21, 1990, the name was
changed to Irwin Financial Corporation. The Articles of Incorporation be and the
same are hereby restated and amended to read in its entirety as follows:

                                   Article I
                                     Name

     The name of the Corporation is Irwin Financial Corporation.

                                  Article II
                                   Purposes

     The purposes for which the Corporation is formed are:  The transaction of
any and all lawful business for which corporations may be incorporated under the
Act, including by way of illustration and not of limitation, the following:

          2.01  To Act as Holding Company.  To purchase or otherwise acquire,
                -------------------------
     own and hold the stock of other corporations and equity interests in other
     business entities and to direct the operations of other corporations
     through the ownership of stock therein and to direct the operations of
     other business entities through the ownership of equity interests therein.

          2.02  Capacity to Act.  To have the capacity to act possessed by
                ---------------
     natural persons, but to have authority to perform only such acts as are
     necessary, convenient or expedient to accomplish the purposes for which it
     is formed and such as are not repugnant to law.

          2.03  To Deal in Securities.  To acquire, by purchase, subscription or
                ---------------------
     otherwise and to receive, hold, own, guarantee, sell, assign, exchange,
     transfer, mortgage, pledge or otherwise dispose of or deal in and with any
     and all securities (as hereinafter defined) issued or created by any
     corporation, firm, organization, association or other entity, public or
     private, whether formed under the laws of the United States of America or
     any state or commonwealth thereof, or any foreign country, or by any
     agency, subdivision, territory, dependency, possession or municipality of
     any of the foregoing, and as owner thereof to possess and exercise all of
     the rights, powers and privileges of ownership,
<PAGE>

     including the right to execute consents and vote thereon. The term
     "securities" as used herein shall mean any and all notes, stocks, treasury
     stocks, bonds, debentures, evidences of indebtedness, certificates of
     interest or participation in any profit-sharing agreement, collateral trust
     certificates, pre-organization certificates or subscriptions, transferable
     shares, investment contracts, voting trust certificates, certificates of
     deposit for a security, fractional undivided interests in oil, gas or other
     mineral rights or, in general, any interests or instruments commonly known
     as securities or any and all certificates of interest or participation in
     temporary or interim certificates for, receipts for, guarantees of, or
     warrants or rights to subscribe to or purchase any of the foregoing.

          2.04  Investment Management.  To make, establish and maintain
                ---------------------
     investments in securities, funds or properties of any nature whatsoever and
     to manage such funds; to do any and all acts and things for the
     preservation, protection, improvement and enhancement of the value of such
     property or securities or designed to accomplish any such purposes. To make
     investigations as to the business affairs and property of corporations,
     partnerships and various forms of business enterprises and to make
     appraisals and valuations of all kinds and investigate and render opinions
     as to the advisability from a financial standpoint of creating, merging,
     combining or otherwise dealing in business enterprises.

          2.05  Creation of Corporations and Other Entities.  To cause to be
                -------------------------------------------
     organized under the laws of the United States of America or of any state,
     commonwealth, territory, dependency or possession thereof, or of any
     foreign country, or of any political subdivision, territory, dependency,
     possession or municipality thereof, one or more corporations, firms,
     organizations, associations or other entities, and to cause the same to be
     dissolved, wound up, liquidated, merged or consolidated.

          2.06  To Deal in Good Will.  To acquire by purchase or exchange, or by
                --------------------
     transfer, or by merger or consolidation with, the Corporation of any
     corporation, firm, organization, association or other entity owned or
     controlled, directly or indirectly, by the Corporation, or otherwise to
     acquire the whole or any part of the business, good will, rights or other
     assets of any corporation, firm, organization, association or other entity
     and to undertake or assume in connection therewith the whole or any part of
     the liabilities and obligations thereof and to effect any such acquisition
     in whole or in part by delivery of cash or other property, including
     securities issued by the Corporation or by any other lawful means.

          2.07  To Engage in Lending.  To make loans and give other forms of
                --------------------
     credit including, but not limited to, financing, factoring and leasing,
     with or without security, and to negotiate and make contracts and
     agreements in connection therewith and to sell and underwrite credit
     insurance and life, property and liability insurance, directly or through
     subsidiaries.

          2.08  To Aid Subsidiaries.  To aid by loans, subsidy, guaranty or in
                -------------------
     any other

                                       2
<PAGE>

     lawful manner any corporation, firm, organization, association or other
     entity of which any securities (as that term is defined in section C
     hereof) are in any manner, directly or indirectly, held by the Corporation
     or in which the Corporation or any such corporation, firm, organization,
     association or entity may be or become otherwise interested; to guarantee
     the payment of dividends on any stock issued by any such corporation, firm,
     organization, association or entity; to guarantee or, to assume, with or
     without recourse against any such corporation, firm, organization,
     association or entity, the payment of the principal of, and/or the interest
     and premium, if any, on any obligations issued or incurred by such
     corporation, firm, organization, association or entity; to do any and all
     other acts and things for the enhancement, protection or preservation of
     any securities which are in any manner, directly or indirectly, held,
     guaranteed or assumed by the Corporation, and to do any and all acts and
     things designed to accomplish any such purpose.

          2.09  To Provide Services.  To render service, assistance, counsel and
                -------------------
     advice to and act as representative or agent in any capacity (whether
     managing, operating, financial, purchasing, selling, advertising or
     otherwise) for any corporation, firm, organization, association or other
     entity and to gather, compile and disseminate information, data and advice
     in respect to matters of a commercial, financial, statistical and business
     nature and to act as consultants, counselors and advisors.

          2.10  To Deal in Real Estate.  To acquire by purchase, exchange, lease
                ----------------------
     or otherwise, and to hold, own, improve, operate, manage, lease as lessee,
     let as lessor, sell, convey or mortgage, whether alone or in conjunction
     with others, real estate of every kind, character and description, and
     wherever situated, or any interest therein, including, without limiting the
     generality of the foregoing, the design, development, management,
     acquisition, and operation of commercial, mercantile and service structures
     and facilities of every character, recreational structures and facilities,
     residential properties and structures, and mobile home parks.

          2.11  To Deal in Personal Property.  To acquire (by purchase,
                ----------------------------
     exchange, lease, hire or otherwise), hold, mortgage, pledge, hypothecate,
     exchange, sell, deal in and dispose of, at wholesale or retail, alone or in
     syndicates or otherwise in conjunction with others, commodities or other
     personal property of every kind, character and description and wherever
     situated, and any interest therein.

          2.12  To Deal in its Own Securities.  To acquire (by purchase,
                -----------------------------
     exchange, lease, hire or otherwise), hold, sell, transfer, reissue, or
     cancel its own shares, or any securities or other obligations of the
     Corporation, in the manner and to the extent now or hereafter permitted by
     the laws of Indiana, except that the Corporation shall not use its funds or
     other assets for the purchase of its own shares if such use would cause any
     impairment of the capital of the Corporation, and except that its own
     shares beneficially owned by the Corporation shall not be voted directly or
     indirectly.

          2.13  To Make Contracts.  To enter into, make, perform and carry out,
                -----------------
     or cancel

                                       3
<PAGE>

     and rescind, contracts for any lawful purposes to its business.

          2.14  To Enter into Partnerships.  To enter into any lawful
                --------------------------
     arrangement for sharing profits, union of interest, reciprocal association
     or cooperative association with any corporation, association, partnership,
     individual or other entity, for the carrying on of any business,
     transaction, or venture, which the Corporation is authorized to carry on or
     any business, transaction, or venture deemed necessary, convenient or
     incidental to carrying out of any of the purposes of the Corporation.

          2.15  To Engage in Business Generally.  To engage in any commercial,
                -------------------------------
     financial, mercantile, industrial, manufacturing, marine, exploration,
     mining, agricultural, research, licensing, servicing or agency business not
     prohibited by law and any, some or all of the foregoing.

          2.16  To Borrow Money.  To borrow money for any business object or
                ---------------
     purpose of the Corporation from time to time without limit as to amount, to
     issue any kind of indebtedness, whether or not in connection with borrowing
     money, including evidences of indebtedness convertible into stock of the
     Corporation, to secure the payment of any evidence of indebtedness by the
     creation of any interest in any of the property or rights of the
     Corporation, whether at that time owned or thereafter acquired.

          2.17  To Execute Guarantees.  To make any guarantee respecting stocks,
                ---------------------
     dividends, securities, indebtedness, interest, contracts or other
     obligations.

          2.18  Stated Capital; Consideration for Shares.  To determine the
                ----------------------------------------
     amount of the stated capital and increase or reduce stated capital and
     determine the consideration to be received for shares issued from time to
     time.

          2.19  Rights, Privileges and Powers.  Subject to any limitations or
                -----------------------------
     restrictions imposed by law or by these Articles of Incorporation to have
     and exercise all the rights, privileges and powers specified in or
     permitted under the Indiana Business Corporation Law.

          2.20  General Powers.  To do everything necessary, proper, advisable
                --------------
     or convenient for the accomplishment of any of the purposes or the
     attainment of any of the objects of the furtherance of any of the powers
     herein set forth and to do every other act and thing incidental thereto or
     connected therewith which is not forbidden by the laws of the State of
     Indiana or by the provisions of these Articles of Incorporation.

          2.21  Construction.  The foregoing sections shall be construed as
                ------------
     purposes as well as powers and the matters expressed in each section shall,
     unless otherwise expressly provided, be in no way limited by reference to
     or inference from the terms of any other section, each of such sections
     being regarded as creating independent purposes and powers. The enumeration
     shall not be construed as limiting or restricting in any manner

                                       4
<PAGE>

     either the meaning or general terms used in any of the sections or the
     scope of the general powers of the Corporation created thereby. The
     enumeration herein of any specific purposes or powers shall not be held to
     limit or restrict in any manner the exercise by the Corporation of the
     general powers now or hereafter conferred by the laws of the state of
     Indiana nor shall the expression of one thing be deemed to exclude another
     not expressed, whether or not it be of like nature. The titles contained
     herein are solely for convenience and are not to be considered in
     construing the various sections.

          2.22  Limiting Clause.  Nothing in this article shall be construed to
                ---------------
     authorize the conduct by the Corporation, directly or indirectly, of a
     rural loan and savings association, credit union or a banking, railroad,
     insurance, surety, trust, safe deposit, mortgage guarantee or building and
     loan business or receiving deposits of money, bullion or foreign coins or
     of issuing bills, notes, or other evidences of debt or circulation as
     money; provided, however, that the Corporation may own, create or otherwise
     acquire all or part of the issued and outstanding stock of corporations
     lawfully engaged in any of such activities.

                                  Article III
                              Period of Existence

     The period during which the Corporation shall continue is perpetual.

                                  Article IV
                      Resident Agent and Principal Office

          4.1   Resident Agent.  The name and address of the Resident Agent in
                --------------
     charge of the Corporation's principal office is John A. Nash, 500
     Washington Street, Columbus, Indiana 47201.

          4.2   Principal Office.  The post office address of the principal
               ----------------
     office of the Corporation is 500 Washington Street, Columbus, Indiana
     47201.

                                   Article V
                                     Shares

          5.1   Number and Classes of Shares.  The total number of shares, which
                ----------------------------
     the Corporation shall have the authority to issue, is 44,000,000 shares.
     The total authorized shares of the Corporation shall be divided into two
     classes: a class of up to 40,000,000 Common Shares without par value (the
     "Common Shares") and a class of up to 4,000,000 Preferred Shares without
     par value (the "Preferred Shares"). The Common Shares and the Preferred
     Shares are collectively referred to herein as the "Shares."

          5.2   Terms.
                -----

                                       5
<PAGE>

          5.21 Rights.
               ------

               5.21.1  Common Shares.  All Common Shares shall have the same
                       -------------
     rights and privileges. Common Shareholders shall have no preemptive rights.

               5.21.2  Preferred Shares.  The Board of Directors is expressly
                       ----------------
     authorized at any time, and from time to time, by resolution, to determine
     and state the designations, relative rights, preferences, limitations and
     restrictions of any class or classes of Preferred Shares, or of any series
     of any class or classes thereof, and to authorize the issuance of such
     Preferred Shares upon compliance prior to the issuance of any such
     Preferred Shares with the applicable provisions of the Act.

          5.22 Dividends.  Dividends or distributions may be declared and
               ---------
     paid upon outstanding Shares at the discretion of the Board of Directors
     from time to time out of earned surplus or capital surplus of the
     Corporation. Dividends payable on the Shares of any class of Shares or
     series thereof may be paid to the holders of Shares of that or any other
     class of Shares or series thereof.

          5.23 Issuance of and Consideration for Shares.  Shares may be
               ----------------------------------------
     issued for such consideration as may be fixed from time to time by the
     Board of Directors, which consideration may be equal to, less than or more
     than the par value thereof. The judgment of the Board of Directors as to
     (i) the value of any property or services received in full or partial
     payment for Shares, and (ii) as to the value of the corporate assets in the
     event of a Share dividend, shall be conclusive. When Shares are issued upon
     payment of the consideration fixed by the Board of Directors, such Shares
     shall be taken to be fully paid stock and shall be nonassessable.

          5.24 Partial Distributions.  The Board of Directors may make
               ---------------------
     distributions to Shareholders out of capital surplus from time to time to
     the extent permitted by law.

          5.25 Facsimile Signatures.  Facsimile signatures may be used in
               --------------------
     lieu of the manual signature of an officer or director of the Corporation.
     In case any officer or director who has signed or whose facsimile signature
     has been placed upon any share certificate or other document issued by this
     Corporation shall have ceased to be such an officer or director before such
     certificate or other document is used, such certificate or other document
     may be issued by the Corporation with the same effect as if such person
     were an officer at the date of its issue.

               5.26  Transfer of Shares.  Transfer of Shares shall be governed
                     ------------------
     by the By-Laws of the Corporation subject to applicable law.

               5.27  Series A Convertible Preferred Shares.  By Unanimous
                     -------------------------------------
     Written Consent effective as of October 8, 1999, the Board of Directors of
     Irwin Financial

                                       6
<PAGE>

     Corporation (the "Corporation"), has amended the terms of its Series A
     convertible Preferred Shares (the "Series A Preferred Shares"), to consist
     of 66,666 shares, and further as follows:

                 5.27.1 Definitions.
                        -----------

                        "Bank" means Irwin Union Bank and Trust Company, a
                         ----
                 commercial bank chartered under the laws of the State of
                 Indiana and a wholly-owned subsidiary of the Corporation.

                        "Banking Office" means, collectively, the banking
                         --------------
                 offices operated by the Bank in Monroe County, Indiana,
                 including locations at 300 W. 6th St., Bloomington, IN 47404;
                 1175 College Mall Rd., Box A, Bloomington, IN 47401; and 528 S.
                 College Ave., Box A, Bloomington, IN 47401.

                        "Board" means the Board of Directors of the Corporation.
                         -----

                        "Common Shares" means the common shares of the
                         -------------
                 Corporation.

                        "Corporation" means Irwin Financial Corporation, an
                         -----------
                 Indiana corporation.

                        "Deposit Goal" means the goal that the average deposits
                         ------------
                 at the Bank on behalf of the Banking Office for any calendar
                 quarter equal or exceed $50,000,000, with the calculations to
                 be made as set forth in Section 5.27.4(b)(iii) herein.
                                         ----------------------

                        "Person" means an individual, a partnership, a joint
                         ------
                 venture, a corporation, an association, a trust, or any other
                 entity or organization.

                        "Purchase Price" means the price per share at which the
                         --------------
                 Series A Preferred Shares have been offered and sold by the
                 Corporation to qualified investors pursuant to a Confidential
                 Private Placement Memorandum.

                        "Series A Preferred Shares" means the Series A
                         -------------------------
                 Convertible Preferred Shares of the Corporation.

                        "Start Date" means the first day of the calendar
                         ----------
                 quarter following the closing date of the offering. The Start
                 Date is the date from which the Corporation will measure the
                 amount of

                                       7
<PAGE>

                 deposits at the Bank on behalf of the Banking Office for the
                 purposes of determining conversion rights.

                 5.27.2  Dividends.  The holders of outstanding Series A
                         ---------
         Preferred Shares shall not be entitled to receive any dividends on the
         Series A Preferred Shares.

                 5.27.3  Redemption.
                         ----------

                         (a) The outstanding Series A Preferred Shares are
         redeemable at the option of the Corporation, out of the assets of the
         Corporation legally available therefor, at any time or from time to
         time, in whole and not in part, at a redemption price per share of
         Series A Preferred Shares (the "Redemption Price") equal to the
                                         ----------------
         Purchase Price; provided, however, that for a period of not less than
                         --------  -------
         30 days prior to the date fixed for redemption (the "Redemption Date"),
                                                              ---------------
         the holders of the outstanding Series A Preferred Shares shall have an
         option to convert each Series A Preferred Share into 1.25 Common
         Shares.

                         (b)  Notice of any redemption of Series A Preferred
         Shares, specifying the date fixed for redemption, the redemption price
         and the place at which shareholders may obtain payment of the
         Redemption Price upon surrender of their certificates, and the option
         of the shareholders to convert their Series A Preferred Shares into
         Common Shares, shall be mailed to each holder of record of the shares
         to be redeemed, at such holder's address of record, not less than 35,
         nor more than 90 days prior to the Redemption Date. Such notice shall
         set forth the manner in which shareholders may convert their Series A
         Preferred Shares into Common Shares, or to receive the Redemption
         Price, upon surrender of their certificates.

                         (c)  Unless the Corporation defaults in the payment in
         full of the Redemption Price, (i) all rights of the holders of such
         Series A Preferred Shares as shareholders of the Corporation by reason
         of the ownership of such shares (including, without limitation, the
         right to convert the Series A Preferred Shares into Common Shares)
         shall cease on the Redemption Date except the right to receive the
         amount payable upon redemption of such shares upon presentation and
         surrender of the respective certificates evidencing such shares, and
         (ii) such shares shall be deemed not to be outstanding after the
         Redemption Date.

                         (d) Any Series A Preferred Shares that have been
         redeemed shall, after such redemption, not be reissued as Series A
         Preferred Shares, but shall become authorized but unissued Preferred
         Shares of the

                                       8
<PAGE>

         Corporation, and the certificates evidencing such shares shall be
         canceled.

                  (e)  Any notice required by the provisions of this Section
                                                                     -------
         5.27.3 to be given to the holders of Series A Preferred Shares shall be
         ------
         deemed given if deposited in the United States mail postage prepaid,
         and addressed to each holder of record at his, her or its address
         appearing on the books of the Corporation.

              5.27.4  Conversion Rights.  The Series A Preferred Shares shall be
                      -----------------
  convertible into Common Shares as follows:

                         (a)  No Optional Conversion. Other than pursuant to a
                              ----------------------
         redemption of the Series A Preferred Shares as set forth in Section
                                                                     -------
         5.27.3 above, the holders of Series A Preferred Shares shall have no
         ------
         optional rights to convert such shares into Common Shares.

                         (b)  Automatic Conversion.  Each Series A Preferred
                              --------------------
         Share shall be automatically converted, without any further act of the
         Corporation or the holders of Series A Preferred Shares, into fully
         paid and nonassessable Common Shares in the manner and at the times
         specified below:

                              (i)  Second Anniversary after Start Date.  If the
                                   -----------------------------------
                    Deposit Goal is met prior to twenty-four (24) months from
                    the Start Date, (A) the date of the automatic conversion
                    into Common Shares shall be twenty-seven (27) months after
                    the Start Date, and (B) each Series A Preferred Share shall
                    automatically be converted into 1.25 Common Shares. If the
                    Deposit Goal has not been met prior to twenty-four (24)
                    months from the Start Date, the Series A Preferred Shares
                    will not be converted into Common Shares until after the
                    third anniversary of the Start Date.

                              (ii) Third Anniversary after Start Date.  If the
                                   ----------------------------------
                    conversion of the Series A Preferred Shares into Common
                    Shares has not previously taken place within thirty-six (36)
                    months after the Start Date, then, thirty-nine (39) months
                    after the Start Date, each outstanding Series A Preferred
                    Share shall automatically be converted into (A) 1.10 Common
                    Shares if the Deposit Goal has been met prior to the end of
                    thirty-six (36) months after the Start Date, and (B) 1.02
                    Common Shares if the Deposit Goal has not been met prior to
                    the end of thirty-six (36) months after the Start Date.

                              (iii) Determination of Whether Deposit Goal Has
                                    -----------------------------------------

                                       9
<PAGE>

                   Been Met.  The Deposit Goal shall have been met prior to a
                   --------
                   specified date if the average deposits at the Bank on behalf
                   of the Banking Office for any calendar quarter prior to such
                   date equal or exceed $50,000,000. For the purposes of
                   determining whether the Deposit Goal has been met, the
                   Corporation will follow the following procedures:

                                    Deposits:  For the purpose of making the
                                    --------
                              Deposit Goal calculations, "deposits" means the
                              book balances of all accounts which are insurable
                              by the Federal Deposit Insurance Corporation (such
                              as demand, savings, time, money market and NOW
                              accounts and certificates of deposit), including
                              the balances in such accounts in excess of
                              $100,000; provided, however, that certificates of
                                        --------  -------
                              deposit in amounts of $100,000 or more shall be
                              included in the total amount of deposits only to
                              the extent such certificates of deposit do not
                              exceed 10% of total deposits.

                                    Credit for Deposits:  The specific banking
                                    -------------------
                              office at which a deposit account is opened
                              receives the credit for the account; provided,
                                                                   --------
                              however, that if the Banking Office is not
                              -------
                              authorized to accept deposits or has not yet
                              opened for business, a deposit account may be
                              established at another banking office on behalf of
                              the Banking Office if designated as such.  The
                              Bank's accounting system tracks and accounts for
                              all depository accounts on a daily basis.

                                    Calendar Quarter Average:  After a calendar
                                    ------------------------
                              quarter has expired, the Bank will calculate the
                              calendar quarter average of deposits for accounts
                              designated as gathered on behalf of the Banking
                              Office by adding the sum of the daily general
                              ledger balance for such deposits and then dividing
                              this sum by the number of days in the calendar
                              quarter.

                         All determinations regarding whether the Deposit Goal
                   has been met as of any date shall be made by the Corporation.
                   Such determinations in this regard shall be final and
                   conclusive for all purposes.

                                       10
<PAGE>

                         (c)  Mechanics of Conversion. Upon the occurrence of
                              -----------------------
                    the dates specified in Section 5.27.4(b) above, the
                                           -----------------
                    outstanding Series A Preferred Shares shall be converted
                    automatically without any further action by the holders of
                    such shares and whether or not the certificates representing
                    such shares are surrendered to the Corporation or its
                    transfer agent; provided, however, that the Corporation
                                    --------  -------
                    shall not be obligated to issue to any holder certificates
                    evidencing the Common Shares issuable upon such conversion
                    unless certificates evidencing the Series A Preferred Shares
                    are delivered either to the Corporation or any transfer
                    agent designated by the Corporation. Conversion shall be
                    deemed to have been effected on the date of the occurrence
                    of the dates specified in Section 5.27.4(b) above, as the
                                              -----------------------
                    case may be, and such date is referred to herein as the
                    "Conversion Date." Subject to the provisions of Section
                     ----------------                               -------
                    5.27.4(b) above, as promptly as practicable thereafter (and
                    ---------
                    after surrender of the certificate or certificates
                    representing the Series A Preferred Shares to the
                    Corporation or any transfer agent designated by the
                    Corporation), the Corporation shall issue and deliver to
                    such holder a certificate or certificates for the number of
                    full Common Shares to which such holder is entitled as
                    provided in Section 5.27.4(b) hereof. Subject to the
                                -----------------
                    provisions of Section 5.27.4(b), the person in whose name
                                  -----------------
                    the certificate or certificates for Common Shares are to be
                    issued shall be deemed to have become a holder of record of
                    such Common Shares on the applicable Conversion Date.

                         (d)  Fractional Shares.   No fractional Common Shares
                              -----------------
                    or scrip shall be issued upon conversion of Series A
                    Preferred Shares. In lieu of any fractional Common Shares
                    which would otherwise be issuable upon conversion of any
                    Series A Preferred Shares, the number of full Common Shares
                    issuable upon conversion thereof shall be increased to the
                    next higher number of whole shares.

                         (e)  Rights After Conversion Date. From and after
                              ----------------------------
                    Conversion Date (unless the Corporation defaults in issuing
                    Common Shares in conversion for the outstanding Series A
                    Preferred Shares on the Conversion Date), such Series A
                    Preferred Shares shall be deemed not to be outstanding and
                    all rights of the holders of such shares as Shareholders of
                    the Corporation by reason of the ownership of such shares
                    shall cease, except the right to receive Common Shares as
                    provided in Section 5.27.4(b) herein on presentation and
                                -----------------
                    surrender of the respective certificates evidencing such
                    Series A Preferred Shares. Upon presentation and surrender,
                    on or after the Conversion Date, of any certificate

                                       11
<PAGE>

                    evidencing Series A Preferred Shares (properly endorsed or
                    assigned for transfer, if the Corporation shall so require),
                    such shares shall be converted by the Corporation for Common
                    Shares as provided in this Section 5.27.4.
                                               --------------

                         (f)  Authorized, But Unissued Shares.  Any Series A
                              -------------------------------
                    Preferred Shares that shall at any time have been converted
                    into Common Shares pursuant to this Section 5.27.4 shall,
                                                        --------------
                    after such conversion become authorized but unissued
                    Preferred Shares of the Corporation, and the certificates
                    evidencing such shares shall be canceled.

                         (g)  Reservation of Shares.  The Corporation shall
                              ---------------------
                    reserve at all times so long as any Series A Preferred
                    Shares remain outstanding, free from preemptive rights, out
                    of its treasury shares or its authorized but unissued Common
                    Shares, or both, solely for the purpose of effecting the
                    conversion of the Series A Preferred Shares, sufficient
                    Common Shares to provide for the conversion of all
                    outstanding Series A Preferred Shares.

                         (h)  Fully Paid and Nonassessable Shares.  All Common
                              -----------------------------------
                    Shares or other securities which may be issued upon
                    conversion of the Series A Preferred Shares will upon
                    issuance by the Corporation be duly and validly issued,
                    fully paid and nonassessable and free from all taxes, liens
                    and charges with respect to the issuance thereof and the
                    Corporation shall take no action which would cause a
                    contrary result.

                    5.27.5  Conversion Ratio Adjustments.  The number of Common
                            ----------------------------
               Shares into which the Series A Preferred Shares shall be
               converted pursuant to Section 5.27.4 (the "Conversion Ratios")
                                     --------------
               and the securities or other property deliverable upon conversion
               of the Series A Preferred Shares shall be subject to adjustment
               from time to time as follows:

                         (a)  Share Subdivisions or Split-Ups.  If the number of
                              -------------------------------
                    Common Shares outstanding at any time after the date of
                    issuance of the Series A Preferred Shares is increased by a
                    subdivision or split-up of Common Shares, then immediately
                    after the record date fixed for the determination of holders
                    of Common Shares entitled to receive such subdivision or
                    split-up, as the case may be, the Conversion Ratios shall be
                    appropriately increased so that the holder of any Series A
                    Preferred Shares thereafter converted shall be entitled to
                    receive the number of Common Shares of the Corporation which
                    the holder would have owned immediately

                                       12
<PAGE>

                    following such action had such Series A Preferred Shares
                    been converted immediately prior thereto.

                         (b)  Combinations of Shares.  If the number of Common
                              ----------------------
                    Shares outstanding at any time after the date of issuance of
                    the Series A Preferred Shares is decreased by a combination
                    of the outstanding Common Shares, then, immediately after
                    the effective date of such combination, the Conversion
                    Ratios applicable thereto shall be appropriately decreased
                    so that the holder of any Series A Preferred Shares
                    thereafter converted shall be entitled to receive the number
                    of Common Shares of the Corporation which the holder would
                    have owned immediately following such action had such Series
                    A Preferred Shares been converted immediately prior thereto.

                         (c)  Reorganization, Reclassification, Merger, Sale of
                              -------------------------------------------------
                    All Assets, etc.  In case of any capital reorganization of
                    ----------------
                    the Corporation, or of any reclassification of the Common
                    Shares, or in case of the consolidation of the Corporation
                    with or the merger of the Corporation with or into any other
                    Person or of the sale, lease or other transfer of all or
                    substantially all of the assets of the Corporation to any
                    other Person, or in the case of any distribution of cash or
                    other assets or of notes or other indebtedness of the
                    Corporation or any other securities of the Corporation
                    (except Common Shares) to the holders of its Common Shares,
                    each Series A Preferred Share shall, after such capital
                    reorganization, reclassification, consolidation, merger,
                    sale, lease or other transfer or such distribution, be
                    convertible into the number of shares or other securities or
                    property to which the Common Shares issuable (at the time of
                    such capital reorganization, reclassification,
                    consolidation, merger, sale, lease or other transfer or such
                    distribution) upon conversion of such Series A Preferred
                    Shares would have been entitled upon such capital
                    reorganization, reclassification, consolidation, merger,
                    sale, lease or other transfer or such distribution in place
                    of (or in addition to, in the case of any such event after
                    which Common Shares remain outstanding) the Common Shares
                    into which such Series A Preferred Shares would otherwise
                    have been convertible; and in any such case, if necessary,
                    the provisions set forth herein with respect to the rights
                    and interest thereafter of the holders of Series A Preferred
                    Shares shall be appropriately adjusted so as to be
                    applicable, as nearly as may reasonably be, to any shares or
                    other securities or property thereafter deliverable on the
                    conversion of the Series A Preferred

                                       13
<PAGE>

                    Shares.

                         (d)  Rounding of Calculations; Minimum Adjustment.  All
                              --------------------------------------------
                    calculations under this Section 5.27.5 shall be made to the
                                            --------------
                    nearest one hundredth (1/100th) of a Common Share, as the
                    case may be.  Any provision of this Section 5.27.5 to the
                                                        --------------
                    contrary notwithstanding, no adjustment in the Conversion
                    Ratios shall be made if the amount of such adjustment would
                    be less than one hundredth of a Common Share, but any such
                    amount shall be carried forward and an adjustment with
                    respect thereto shall be made at the time of any subsequent
                    adjustment which, together with such amount and any other
                    amount or amounts so carried forward, shall aggregate one
                    hundredth of a Common Share or more.

                         (e)  Timing of Issuance of Additional Common Shares
                              ----------------------------------------------
                    upon Certain Adjustments.  In any case in which the
                    ------------------------
                    provisions of this Section 5.27.5 shall require that an
                                       --------------
                    adjustment shall become effective immediately after a record
                    date for an event, the Corporation may defer until the
                    occurrence of such event issuing to the holder of any Series
                    A Preferred Shares converted after such record date and
                    before the occurrence of such event the additional Common
                    Shares or other property issuable or deliverable upon such
                    conversion by reason of the adjustment required by such
                    event over and above the Common Shares or other property
                    issuable or deliverable upon such conversion before giving
                    effect to such adjustment; provided, however, that the
                                               --------  -------
                    Corporation upon request shall deliver to such holder a due
                    bill or other appropriate instrument evidencing such
                    holder's right to receive such additional shares or other
                    property, and such cash, upon the occurrence of the event
                    requiring such adjustment.

                         (f)  Statement Regarding Adjustments.  Whenever the
                              -------------------------------
                    Conversion Ratios shall be adjusted as provided in this

                    Section 5.27.5, the Corporation shall forthwith file, at the
                    --------------
                    office of any transfer agent for the Series A Preferred
                    Shares and at the principal office of the Corporation a
                    statement showing in detail the facts requiring such
                    adjustment and the Conversion Ratios that shall be in effect
                    after such adjustment, and the Corporation shall also cause
                    a copy of such statement to be mailed, first class postage
                    prepaid, to each holder of Series A Preferred Shares at its
                    address appearing on the Corporation's records.

                         (g)  Cost.  The Corporation shall pay all documentary,
                              ----

                                       14
<PAGE>

                    stamp, transfer or other transactional taxes attributable to
                    the issuance or delivery of Common Shares of the Corporation
                    or other securities or property upon conversion of any
                    Series A Preferred Shares; provided, however, that the
                                               --------  -------
                    Corporation shall not be required to pay any taxes which may
                    be payable in respect of any transfer involved in the
                    issuance or delivery of any certificate for such shares or
                    securities in the name other than that of the holder of
                    Series A Preferred Shares in respect of which such shares
                    are being issued.

                    5.27.6  Voting.  The holders of Series A Preferred Shares
                            ------
               shall have no right or power to vote on any matter except as
               required by law.  In any matter on which the holders of Series A
               Preferred Shares shall, as a matter of law, be entitled to vote,
               the holders shall be entitled to one vote for each Series A
               Preferred Share held.

                    5.27.7  Liquidation Rights.
                              ------------------

                         (a)  Upon the dissolution, liquidation or winding up of
                    the Corporation, whether voluntary or involuntary, the
                    holders of Series A Preferred Shares then outstanding shall
                    be entitled to receive out of the assets of the Corporation
                    available for distribution to equity holders, an amount per
                    share in cash equal to the Purchase Price before any payment
                    or distribution shall be made on the Common Shares or on any
                    other class of capital shares of the Corporation ranking
                    junior to the Series A Preferred Shares upon liquidation.
                    All outstanding shares of any other series of preferred
                    shares shall rank at parity with the Series A Preferred
                    Shares. The consolidation or merger of the Corporation, or a
                    sale, exchange or transfer of all or substantially all of
                    its assets as an entirety, shall not be regarded as a
                    "dissolution, liquidation or winding up of the Corporation"
                    within the meaning of this Section 5.27.7(a).
                                               -----------------

                         (b)  After the payment to the holders of Series A
                    Preferred Shares of the full preferential amounts fixed
                    hereby for Series A Preferred Shares, the holders of Series
                    A Preferred Shares as such shall have no right or claim to
                    any of the remaining assets of the Corporation.

                         (c)  If the assets of the Corporation available for
                    distribution to the holders of Series A Preferred Shares
                    upon dissolution, liquidation or winding up of the
                    Corporation are insufficient to pay in full all amounts to
                    which such holders are

                                       15
<PAGE>

                    entitled pursuant to Section 5.27.7(a), no distribution
                                         -----------------
                    shall be made on account of any shares of a class or series
                    of capital shares of the Corporation ranking on a parity
                    with the Series A Preferred Shares, if any, upon such
                    dissolution, liquidation or winding up unless proportionate
                    distributive amounts shall be paid on account of the Series
                    A Preferred Shares, ratably, in proportion to the full
                    distributable amounts for which holders of all such parity
                    shares are respectively entitled upon such dissolution,
                    liquidation or winding up.

                    5.27.8  Reports to Holders of Series A Preferred Shares.
                            -----------------------------------------------
               For so long as there shall remain outstanding any Series A
               Preferred Shares, the Corporation shall furnish to each holder of
               record of Series A Preferred Shares (i) all reports or other
               correspondence sent by the Corporation to holders of record of
               the Common Shares of the Corporation, and (ii) a quarterly report
               setting forth the average monthly deposits on behalf of the
               Banking Office.

                    5.27.9  Certain Covenants.  So long as any Series A
                            -----------------
               Preferred Shares are outstanding, without the prior written
               consent of the holders of a majority of the outstanding Series A
               Preferred Shares, the Corporation shall not amend, alter or
               repeal any provisions of this Resolution Establishing Series A
               Convertible Preferred Shares, or otherwise amend, alter or repeal
               any provision of the Articles of Incorporation of the Corporation
               so as to affect adversely the preferences, rights, powers or
               privileges of the Series A Preferred Shares.

                    5.27.10 Certain Events.  If any event occurs of the type
                            --------------
               contemplated but not expressly provided for by the provisions of
               Section 5.27.4 or Section 5.27.5 herein, then the Corporation's
               --------------    --------------
               Board of Directors will make an appropriate adjustment in the
               Conversion Ratios for the Series A Preferred Shares to protect
               the rights of the holders thereof.

                    5.27.11 Exclusion of Other Rights.  Unless otherwise
                            -------------------------
               required by law, the Series A Preferred Shares shall not have any
               voting powers, preferences or relative, participating, optional
               or other special rights other than those specifically set forth
               herein.

               5.28  Series B Convertible Preferred Shares.  By Unanimous
                     -------------------------------------
          Written Consent effective as of October 8, 1999, the Board of
          Directors of Irwin Financial Corporation (the "Corporation"), has
          amended the terms of its Series B Convertible Preferred Shares (the
          "Series B Preferred Shares"), to consist of 66,666 shares, and further
          as follows:

                                       16
<PAGE>

                    5.28.1  Definitions.
                            -----------

                         "Bank" means Irwin Union Bank and Trust Company, a
                          ----
                    commercial bank chartered under the laws of the State of
                    Indiana and a wholly-owned subsidiary of the Corporation.

                         "Banking Office" means the banking office operated by
                          --------------
                    the Bank at 555 W. Crosstown Parkway, Kalamazoo, Michigan
                    49008.

                         "Board" means the Board of Directors of the
                          -----
                    Corporation.

                         "Common Shares" means the common shares of the
                          -------------
                    Corporation.

                         "Corporation" means Irwin Financial Corporation, an
                          -----------
                    Indiana corporation.

                         "Deposit Goal" means the goal that the average deposits
                          ------------
                    at the Bank on behalf of the Banking Office for any calendar
                    quarter equal or exceed $25,000,000, with the calculations
                    to be made as set forth in Section 4(b)(iii) herein.
                                               -----------------

                         "Person" means an individual, a partnership, a joint
                          ------
                    venture, a corporation, an association, a trust, or any
                    other entity or organization.

                         "Purchase Price" means the price per share at which the
                          --------------
                    Series B Preferred Shares have been offered and sold by the
                    Corporation to qualified investors pursuant to a
                    Confidential Private Placement Memorandum.

                         "Series B Preferred Shares" means the Series B
                          -------------------------
                    Convertible Preferred Shares of the Corporation.

                         "Start Date" means the first day of the calendar
                          ----------
                    quarter following the closing date of the offering. The
                    Start Date is the date from which the Corporation will
                    measure the amount of deposits at the Bank on behalf of the
                    Banking Office for the purposes of determining conversion
                    rights.

                    5.28.2  Dividends.  The holders of outstanding Series B
                            ---------
               Preferred Shares shall not be entitled to receive any dividends
               on the Series B Preferred Shares.

                                       17
<PAGE>

                    5.28.3  Redemption.
                            ----------

                         (a)  The outstanding Series B Preferred Shares are
                    redeemable at the option of the Corporation, out of the
                    assets of the Corporation legally available therefor, at any
                    time or from time to time, in whole and not in part, at a
                    redemption price per share of Series B Preferred Shares (the
                    "Redemption Price") equal to the Purchase Price; provided,
                     ----------------                                --------
                    however, that for a period of not less than 30 days prior to
                    -------
                    the date fixed for redemption (the "Redemption Date"), the
                                                        ---------------
                    holders of the outstanding Series B Preferred Shares shall
                    have an option to convert each Series B Preferred Share into
                    1.25 Common Shares.

                         (b)  Notice of any redemption of Series B Preferred
                    Shares, specifying the date fixed for redemption, the
                    redemption price and the place at which shareholders may
                    obtain payment of the Redemption Price upon surrender of
                    their certificates, and the option of the shareholders to
                    convert their Series B Preferred Shares into Common Shares,
                    shall be mailed to each holder of record of the shares to be
                    redeemed, at such holder's address of record, not less than
                    35, nor more than 90 days prior to the Redemption Date. Such
                    notice shall set forth the manner in which shareholders may
                    convert their Series B Preferred Shares into Common Shares,
                    or to receive the Redemption Price, upon surrender of their
                    certificates.

                         (c)  Unless the Corporation defaults in the payment in
                    full of the Redemption Price, (i) all rights of the holders
                    of such Series B Preferred Shares as shareholders of the
                    Corporation by reason of the ownership of such shares
                    (including, without limitation, the right to convert the
                    Series B Preferred Shares into Common Shares) shall cease on
                    the Redemption Date except the right to receive the amount
                    payable upon redemption of such shares upon presentation and
                    surrender of the respective certificates evidencing such
                    shares, and (ii) such shares shall be deemed not to be
                    outstanding after the Redemption Date.

                         (d)  Any Series B Preferred Shares that have been
                    redeemed shall, after such redemption, not be reissued as
                    Series B Preferred Shares, but shall become authorized but
                    unissued Preferred Shares of the Corporation, and the
                    certificates evidencing such shares shall be canceled.

                                       18
<PAGE>

                         (e)  Any notice required by the provisions of this
                    Section 5.28.3 to be given to the holders of Series B
                    --------------
                    Preferred Shares shall be deemed given if deposited in the
                    United States mail postage prepaid, and addressed to each
                    holder of record at his, her or its address appearing on the
                    books of the Corporation.

                    5.28.4  Conversion Rights.  The Series B Preferred Shares
                            -----------------
               shall be convertible into Common Shares as follows:

                         (a)  No Optional Conversion.  Other than pursuant to a
                              ----------------------
                    redemption of the Series B Preferred Shares as set forth in
                    Section 5.28.3 above, the holders of Series B Preferred
                    --------------
                    Shares shall have no optional rights to convert such shares
                    into Common Shares.

                         (b)  Automatic Conversion.  Each Series B Preferred
                              --------------------
                    Share shall be automatically converted, without any further
                    act of the Corporation or the holders of Series B Preferred
                    Shares, into fully paid and nonassessable Common Shares in
                    the manner and at the times specified below:

                              (i)   Second Anniversary after Start Date.  If the
                                    -----------------------------------
                         Deposit Goal is met prior to twenty-four (24) months
                         from the Start Date, (A) the date of the automatic
                         conversion into Common Shares shall be twenty-seven
                         (27) months after the Start Date, and (B) each Series B
                         Preferred Share shall automatically be converted into
                         1.25 Common Shares. If the Deposit Goal has not been
                         met prior to twenty-four (24) months from the Start
                         Date, the Series B Preferred Shares will not be
                         converted into Common Shares until after the third
                         anniversary of the Start Date.

                              (ii)  Third Anniversary after Start Date. If the
                                    ----------------------------------
                         conversion of the Series B Preferred Shares into Common
                         Shares has not previously taken place within thirty-six
                         (36) months after the Start Date, then, thirty-nine
                         (39) months after the Start Date, each outstanding
                         Series B Preferred Share shall automatically be
                         converted into (A) 1.10 Common Shares if the Deposit
                         Goal has been met prior to the end of thirty-six (36)
                         months after the Start Date, and (B) 1.02 Common Shares
                         if the Deposit Goal has not been met prior to the end
                         of thirty-six (36) months after the Start Date.

                                       19
<PAGE>

                              (iii)  Determination of Whether Deposit Goal Has
                                     -----------------------------------------
                         Been Met.  The Deposit Goal shall have been met prior
                         --------
                         to a specified date if the average deposits at the Bank
                         on behalf of the Banking Office for any calendar
                         quarter prior to such date equal or exceed $25,000,000.
                         For the purposes of determining whether the Deposit
                         Goal has been met, the Corporation will follow the
                         following procedures:

                                    Deposits:  For the purpose of making the
                                    --------
                              Deposit Goal calculations, "deposits" means the
                              book balances of all accounts which are insurable
                              by the Federal Deposit Insurance Corporation (such
                              as demand, savings, time, money market and NOW
                              accounts and certificates of deposit), including
                              the balances in such accounts in excess of
                              $100,000; provided, however, that certificates of
                                        --------  -------
                              deposit in amounts of $100,000 or more shall be
                              included in the total amount of deposits only to
                              the extent such certificates of deposit do not
                              exceed 10% of total deposits.

                                    Credit for Deposits:  The specific banking
                                    -------------------
                              office at which a deposit account is opened
                              receives the credit for the account; provided,
                                                                   --------
                              however, that if the Banking Office is not
                              -------
                              authorized to accept deposits or has not yet
                              opened for business, a deposit account may be
                              established at another banking office on behalf of
                              the Banking Office if designated as such. The
                              Bank's accounting system tracks and accounts for
                              all depository accounts on a daily basis.

                                    Calendar Quarter Average:  After a calendar
                                    ------------------------
                              quarter has expired, the Bank will calculate the
                              calendar quarter average of deposits for accounts
                              designated as gathered on behalf of the Banking
                              Office by adding the sum of the daily general
                              ledger balance for such deposits and then dividing
                              this sum by the number of days in the calendar
                              quarter.

                         All determinations regarding whether the Deposit Goal
                    has been met as of any date shall be made by the
                    Corporation. Such determinations in this regard shall be
                    final and conclusive for all purposes.

                                       20
<PAGE>

                         (c)  Mechanics of Conversion.  Upon the occurrence of
                              -----------------------
                    the dates specified in Section 5.28.4(b) above, the
                                           -----------------
                    outstanding Series B Preferred Shares shall be converted
                    automatically without any further action by the holders of
                    such shares and whether or not the certificates representing
                    such shares are surrendered to the Corporation or its
                    transfer agent; provided, however, that the Corporation
                                    --------  -------
                    shall not be obligated to issue to any holder certificates
                    evidencing the Common Shares issuable upon such conversion
                    unless certificates evidencing the Series B Preferred Shares
                    are delivered either to the Corporation or any transfer
                    agent designated by the Corporation.  Conversion shall be
                    deemed to have been effected on the date of the occurrence
                    of the dates specified in Section 5.28.4(b) above, as the
                                              -----------------
                    case may be, and such date is referred to herein as the

                    "Conversion Date."  Subject to the provisions of Section
                    ----------------                                 -------
                    5.28.4(b) above, as promptly as practicable thereafter (and
                    ---------
                    after surrender of the certificate or certificates
                    representing the Series B Preferred Shares to the
                    Corporation or any transfer agent designated by the
                    Corporation), the Corporation shall issue and deliver to
                    such holder a certificate or certificates for the number of
                    full Common Shares to which such holder is entitled as
                    provided in Section 5.28.4(b) hereof.  Subject to the
                                -----------------
                    provisions of Section 5.28.4(b), the person in whose name
                                  -----------------
                    the certificate or certificates for Common Shares are to be
                    issued shall be deemed to have become a holder of record of
                    such Common Shares on the applicable Conversion Date.

                         (d)  Fractional Shares.  No fractional Common Shares or
                              -----------------
                    scrip shall be issued upon conversion of Series B Preferred
                    Shares.  In lieu of any fractional Common Shares which would
                    otherwise be issuable upon conversion of any Series B
                    Preferred Shares, the number of full Common Shares issuable
                    upon conversion thereof shall be increased to the next
                    higher number of whole shares.

                         (e)  Rights After Conversion Date.  From and after the
                              ----------------------------
                    Conversion Date (unless the Corporation defaults in issuing
                    Common Shares in conversion for the outstanding Series B
                    Preferred Shares on the Conversion Date), such Series B
                    Preferred Shares shall be deemed not to be outstanding and
                    all rights of the holders of such shares as Shareholders of
                    the Corporation by reason of the ownership of such shares
                    shall cease, except the right to receive Common Shares as
                    provided in Section 5.28.4(b) herein on presentation and
                                -----------------
                    surrender of the respective certificates evidencing such
                    Series B Preferred Shares.  Upon presentation and

                                       21
<PAGE>

                    surrender, on or after the Conversion Date, of any
                    certificate evidencing Series B Preferred Shares (properly
                    endorsed or assigned for transfer, if the Corporation shall
                    so require), such shares shall be converted by the
                    Corporation for Common Shares as provided in this Section
                    5.28.4.                                           -------
                    ------

                         (f)  Authorized, But Unissued Shares. Any Series B
                              -------------------------------
                    Preferred Shares that shall at any time have been converted
                    into Common Shares pursuant to this Section 5.28.4 shall,
                                                        --------------
                    after such conversion become authorized but unissued
                    Preferred Shares of the Corporation, and the certificates
                    evidencing such shares shall be canceled.

                         (g)  Reservation of Shares. The Corporation shall
                              ---------------------
                    reserve at all times so long as any Series B Preferred
                    Shares remain outstanding, free from preemptive rights, out
                    of its treasury shares or its authorized but unissued Common
                    Shares, or both, solely for the purpose of effecting the
                    conversion of the Series B Preferred Shares, sufficient
                    Common Shares to provide for the conversion of all
                    outstanding Series B Preferred Shares.

                         (h)  Fully Paid and Nonassessable Shares.  All Common
                              -----------------------------------
                    Shares or other securities which may be issued upon
                    conversion of the Series B Preferred Shares will upon
                    issuance by the Corporation be duly and validly issued,
                    fully paid and nonassessable and free from all taxes, liens
                    and charges with respect to the issuance thereof and the
                    Corporation shall take no action which would cause a
                    contrary result.

                    5.28.5    Conversion Ratio Adjustments. The number of Common
                              ----------------------------
               Shares into which the Series B Preferred Shares shall be
               converted pursuant to Section 5.28.4 (the "Conversion Ratios")
                                     --------------
               and the securities or other property deliverable upon conversion
               of the Series B Preferred Shares shall be subject to adjustment
               from time to time as follows:

                              (a)  Share Subdivisions or Split-Ups. If the
                                   -------------------------------
                    number of Common Shares outstanding at any time after the
                    date of issuance of the Series B Preferred Shares is
                    increased by a subdivision or split-up of Common Shares,
                    then immediately after the record date fixed for the
                    determination of holders of Common Shares entitled to
                    receive such subdivision or split-up, as the case may be,
                    the Conversion Ratios shall be appropriately increased so
                    that the holder of any Series B Preferred Shares thereafter
                    converted shall be entitled to receive the number of Common
                    Shares of the

                                       22
<PAGE>

                    Corporation which the holder would have owned immediately
                    following such action had such Series B Preferred Shares
                    been converted immediately prior thereto.

                         (b)  Combinations of Shares.  If the number of Common
                              ----------------------
                    Shares outstanding at any time after the date of issuance of
                    the Series B Preferred Shares is decreased by a combination
                    of the outstanding Common Shares, then, immediately after
                    the effective date of such combination, the Conversion
                    Ratios applicable thereto shall be appropriately decreased
                    so that the holder of any Series B Preferred Shares
                    thereafter converted shall be entitled to receive the number
                    of Common Shares of the Corporation which the holder would
                    have owned immediately following such action had such Series
                    B Preferred Shares been converted immediately prior thereto.

                         (c)  Reorganization, Reclassification, Merger, Sale of
                              -------------------------------------------------
                    All Assets, etc. In case of any capital reorganization of
                    ---------------
                    the Corporation, or of any reclassification of the Common
                    Shares, or in case of the consolidation of the Corporation
                    with or the merger of the Corporation with or into any other
                    Person or of the sale, lease or other transfer of all or
                    substantially all of the assets of the Corporation to any
                    other Person, or in the case of any distribution of cash or
                    other assets or of notes or other indebtedness of the
                    Corporation or any other securities of the Corporation
                    (except Common Shares) to the holders of its Common Shares,
                    each Series B Preferred Share shall, after such capital
                    reorganization, reclassification, consolidation, merger,
                    sale, lease or other transfer or such distribution, be
                    convertible into the number of shares or other securities or
                    property to which the Common Shares issuable (at the time of
                    such capital reorganization, reclassification,
                    consolidation, merger, sale, lease or other transfer or such
                    distribution) upon conversion of such Series B Preferred
                    Shares would have been entitled upon such capital
                    reorganization, reclassification, consolidation, merger,
                    sale, lease or other transfer or such distribution in place
                    of (or in addition to, in the case of any such event after
                    which Common Shares remain outstanding) the Common Shares
                    into which such Series B Preferred Shares would otherwise
                    have been convertible; and in any such case, if necessary,
                    the provisions set forth herein with respect to the rights
                    and interest thereafter of the holders of Series B Preferred
                    Shares shall be appropriately adjusted so as to be
                    applicable, as nearly as may reasonably be, to any shares or
                    other securities or property thereafter deliverable on the
                    conversion of the Series B Preferred

                                       23
<PAGE>

                    Shares.

                         (d) Rounding of Calculations; Minimum Adjustment. All
                             --------------------------------------------
                    calculations under this Section 5.28.5 shall be made to the
                                            --------------
                    nearest one hundredth (1/100th) of a Common Share, as the
                    case may be. Any provision of this Section 5.28.5 to the
                                                       --------------
                    contrary notwithstanding, no adjustment in the Conversion
                    Ratios shall be made if the amount of such adjustment would
                    be less than one hundredth of a Common Share, but any such
                    amount shall be carried forward and an adjustment with
                    respect thereto shall be made at the time of any subsequent
                    adjustment which, together with such amount and any other
                    amount or amounts so carried forward, shall aggregate one
                    hundredth of a Common Share or more.

                         (e) Timing of Issuance of Additional Common Shares upon
                             ---------------------------------------------------
                    Certain Adjustments.  In any case in which the provisions of
                    -------------------
                    this Section 5.28.5 shall require that an adjustment shall
                         --------------
                    become effective immediately after a record date for an
                    event, the Corporation may defer until the occurrence of
                    such event issuing to the holder of any Series B Preferred
                    Shares converted after such record date and before the
                    occurrence of such event the additional Common Shares or
                    other property issuable or deliverable upon such conversion
                    by reason of the adjustment required by such event over and
                    above the Common Shares or other property issuable or
                    deliverable upon such conversion before giving effect to
                    such adjustment; provided, however, that the Corporation
                                     --------  -------
                    upon request shall deliver to such holder a due bill or
                    other appropriate instrument evidencing such holder's right
                    to receive such additional shares or other property, and
                    such cash, upon the occurrence of the event requiring such
                    adjustment.

                         (f) Statement Regarding Adjustments.  Whenever the
                             -------------------------------
                    Conversion Ratios shall be adjusted as provided in this
                    Section 5.28.5, the Corporation shall forthwith file, at the
                    --------------
                    office of any transfer agent for the Series B Preferred
                    Shares and at the principal office of the Corporation a
                    statement showing in detail the facts requiring such
                    adjustment and the Conversion Ratios that shall be in effect
                    after such adjustment, and the Corporation shall also cause
                    a copy of such statement to be mailed, first class postage
                    prepaid, to each holder of Series B Preferred Shares at its
                    address appearing on the Corporation's records.

                         (g) Cost.  The Corporation shall pay all documentary,
                             ----

                                       24
<PAGE>

                    stamp, transfer or other transactional taxes attributable to
                    the issuance or delivery of Common Shares of the Corporation
                    or other securities or property upon conversion of any
                    Series B Preferred Shares; provided, however, that the
                                               --------  -------
                    Corporation shall not be required to pay any taxes which may
                    be payable in respect of any transfer involved in the
                    issuance or delivery of any certificate for such shares or
                    securities in the name other than that of the holder of
                    Series B Preferred Shares in respect of which such shares
                    are being issued.

                    5.28.6  Voting.  The holders of Series B Preferred Shares
                            ------
               shall have no right or power to vote on any matter except as
               required by law.  In any matter on which the holders of Series B
               Preferred Shares shall, as a matter of law, be entitled to vote,
               the holders shall be entitled to one vote for each Series B
               Preferred Share held.

                    5.28.7  Liquidation Rights.
                            ------------------

                            (a)  Upon the dissolution, liquidation or winding up
                    of the Corporation, whether voluntary or involuntary, the
                    holders of Series B Preferred Shares then outstanding shall
                    be entitled to receive out of the assets of the Corporation
                    available for distribution to equity holders, an amount per
                    share in cash equal to the Purchase Price before any payment
                    or distribution shall be made on the Common Shares or on any
                    other class of capital shares of the Corporation ranking
                    junior to the Series B Preferred Shares upon liquidation.
                    All outstanding shares of any other series of preferred
                    shares shall rank at parity with the Series B Preferred
                    Shares. The consolidation or merger of the Corporation, or a
                    sale, exchange or transfer of all or substantially all of
                    its assets as an entirety, shall not be regarded as a
                    "dissolution, liquidation or winding up of the Corporation"
                    within the meaning of this Section 5.28.7(a).
                                               -----------------

                            (b)  After the payment to the holders of Series B
                    Preferred Shares of the full preferential amounts fixed
                    hereby for Series B Preferred Shares, the holders of Series
                    B Preferred Shares as such shall have no right or claim to
                    any of the remaining assets of the Corporation.

                            (c)  If the assets of the Corporation available for
                    distribution to the holders of Series B Preferred Shares
                    upon dissolution, liquidation or winding up of the
                    Corporation are insufficient to pay in full all amounts to
                    which such holders are

                                       25
<PAGE>

                    entitled pursuant to Section 5.28.7(a), no distribution
                                         -----------------
                    shall be made on account of any shares of a class or series
                    of capital shares of the Corporation ranking on a parity
                    with the Series B Preferred Shares, if any, upon such
                    dissolution, liquidation or winding up unless proportionate
                    distributive amounts shall be paid on account of the Series
                    B Preferred Shares, ratably, in proportion to the full
                    distributable amounts for which holders of all such parity
                    shares are respectively entitled upon such dissolution,
                    liquidation or winding up.

                    5.28.8  Reports to Holders of Series B Preferred Shares.
                            -----------------------------------------------
               For so long as there shall remain outstanding any Series B
               Preferred Shares, the Corporation shall furnish to each holder of
               record of Series B Preferred Shares (i) all reports or other
               correspondence sent by the Corporation to holders of record of
               the Common Shares of the Corporation, and (ii) a quarterly report
               setting forth the average monthly deposits on behalf of the
               Banking Office.

                    5.28.9   Certain Covenants.  So long as any Series B
                             -----------------
               Preferred Shares are outstanding, without the prior written
               consent of the holders of a majority of the outstanding Series B
               Preferred Shares, the Corporation shall not amend, alter or
               repeal any provisions of this Resolution Establishing Series B
               Convertible Preferred Shares, or otherwise amend, alter or repeal
               any provision of the Articles of Incorporation of the Corporation
               so as to affect adversely the preferences, rights, powers or
               privileges of the Series B Preferred Shares.

                    5.28.10  Certain Events.  If any event occurs of the type
                             --------------
               contemplated but not expressly provided for by the provisions of

               Section 5.28.4 or Section 5.28.5 herein, then the Corporation's
               --------------    --------------
               Board of Directors will make an appropriate adjustment in the
               Conversion Ratios for the Series B Preferred Shares to protect
               the rights of the holders thereof.

                    5.28.11  Exclusion of Other Rights.  Unless otherwise
                             -------------------------
               required by law, the Series B Preferred Shares shall not have any
               voting powers, preferences or relative, participating, optional
               or other special rights other than those specifically set forth
               herein.

               5.29  Series C Convertible Preferred Shares.  By Unanimous
                     -------------------------------------
          Written Consent effective as of October 8, 1999, the Board of
          Directors of Irwin Financial Corporation (the "Corporation"), has
          approved and adopted the terms of Series C Convertible Preferred
          Shares (the "Series C Preferred Shares"), to consist of 133,332
          shares, as follows:

                                       26
<PAGE>

                    5.29.1  Definitions.
                            -----------

                            "Bank" means Irwin Union Bank and Trust Company, a
                             ----
                    commercial bank chartered under the laws of the State of
                    Indiana and a wholly-owned subsidiary of the Corporation.

                            "Banking Office" means, collectively, the banking
                             --------------
                    offices operated by the Bank in  Hamilton County, Indiana,
                    and Marion County, Indiana, including locations at 11611 N.
                    Meridian St., Suite 100, Carmel, Indiana 46032 and 300 N.
                    Meridian St., Suite 1200, Indianapolis, Indiana 46204.

                            "Board" means the Board of Directors of the
                             -----
                    Corporation.

                            "Common Shares" means the common shares of the
                             -------------
                    Corporation.

                            "Corporation" means Irwin Financial Corporation, an
                             -----------
                    Indiana corporation.

                            "Deposit Goal" means the goal that the average
                             ------------
                    deposits at the Bank on behalf of the Banking Office for any
                    calendar quarter equal or exceed $50,000,000, with the
                    calculations to be made as set forth in Section
                                                            -------
                    5.29.4(b)(iii) herein.
                    --------------

                            "Person" means an individual, a partnership, a joint
                             ------
                    venture, a corporation, an association, a trust, or any
                    other entity or organization.

                            "Purchase Price" means the price per share at which
                             --------------
                    the Series C Preferred Shares have been offered and sold by
                    the Corporation to qualified investors pursuant to a
                    Confidential Private Placement Memorandum.

                            "Series C Preferred Shares" means the Series C
                             -------------------------
                    Convertible Preferred Shares of the Corporation.

                            "Start Date" means the first day of the calendar
                             ----------
                    quarter following the closing date of the offering.  The
                    Start Date is the date from which the Corporation will
                    measure the amount of deposits at the Bank on behalf of the
                    Banking Office for the purposes of determining conversion
                    rights.

                                       27
<PAGE>

                    5.29.2  Dividends.  The holders of outstanding Series C
                            ---------
               Preferred Shares shall not be entitled to receive any dividends
               on the Series C Preferred Shares.

                    5.29.3  Redemption.
                            ----------

                            (a)  The outstanding Series C Preferred Shares are
                    redeemable at the option of the Corporation, out of the
                    assets of the Corporation legally available therefor, at any
                    time or from time to time, in whole and not in part, at a
                    redemption price per share of Series C Preferred Shares (the
                                                                             ---
                    "Redemption Price") equal to the Purchase Price; provided,
                     ----------------                                --------
                    however, that for a period of not less than 30 days prior to
                    -------
                    the date fixed for redemption (the "Redemption Date"), the
                                                        ---------------
                    holders of the outstanding Series C Preferred Shares shall
                    have an option to convert each Series C Preferred Share into
                    1.25 Common Shares.

                            (b)  Notice of any redemption of Series C Preferred
                    Shares, specifying the date fixed for redemption, the
                    redemption price and the place at which shareholders may
                    obtain payment of the Redemption Price upon surrender of
                    their certificates, and the option of the shareholders to
                    convert their Series C Preferred Shares into Common Shares,
                    shall be mailed to each holder of record of the shares to be
                    redeemed, at such holder's address of record, not less than
                    35, nor more than 90 days prior to the Redemption Date.
                    Such notice shall set forth the manner in which shareholders
                    may convert their Series C Preferred Shares into Common
                    Shares, or to receive the Redemption Price, upon surrender
                    of their certificates.

                            (c)  Unless the Corporation defaults in the payment
                    in full of the Redemption Price, (i) all rights of the
                    holders of such Series C Preferred Shares as shareholders of
                    the Corporation by reason of the ownership of such shares
                    (including, without limitation, the right to convert the
                    Series C Preferred Shares into Common Shares) shall cease on
                    the Redemption Date except the right to receive the amount
                    payable upon redemption of such shares upon presentation and
                    surrender of the respective certificates evidencing such
                    shares, and (ii) such shares shall be deemed not to be
                    outstanding after the Redemption Date.

                            (d)  Any Series C Preferred Shares that have been
                    redeemed shall, after such redemption, not be reissued as
                    Series C Preferred Shares, but shall become authorized but
                    unissued Preferred Shares

                                       28
<PAGE>

                    of the Corporation, and the certificates evidencing such
                    shares shall be canceled.

                            (e)  Any notice required by the provisions of this
                    Section 5.29.3 to be given to the holders of Series C
                    --------------
                    Preferred Shares shall be deemed given if deposited in the
                    United States mail postage prepaid, and addressed to each
                    holder of record at his, her or its address appearing on the
                    books of the Corporation.

                    5.29.4  Conversion Rights.  The Series C Preferred Shares
                            -----------------
               shall be convertible into Common Shares as follows:

                            (a)  No Optional Conversion. Other than pursuant to
                                 ----------------------
                    a redemption of the Series C Preferred Shares as set forth
                    in Section 5.29.3 above, the holders of Series C Preferred
                       --------------
                    Shares shall have no optional rights to convert such shares
                    into Common Shares.

                            (b)  Automatic Conversion.  Each Series C Preferred
                                 --------------------
                    Share shall be automatically converted, without any further
                    act of the Corporation or the holders of Series C Preferred
                    Shares, into fully paid and nonassessable Common Shares in
                    the manner and at the times specified below:

                                   (i)  Second Anniversary after Start Date. If
                                        -----------------------------------
                         the Deposit Goal is met prior to twenty-four (24)
                         months from the Start Date, (A) the date of the
                         automatic conversion into Common Shares shall be
                         twenty-seven (27) months after the Start Date, and (B)
                         each Series C Preferred Share shall automatically be
                         converted into 1.25 Common Shares. If the Deposit Goal
                         has not been met prior to twenty-four (24) months from
                         the Start Date, the Series C Preferred Shares will not
                         be converted into Common Shares until after the third
                         anniversary of the Start Date.

                                   (ii) Third Anniversary after Start Date. If
                                        ----------------------------------
                         the conversion of the Series C Preferred Shares into
                         Common Shares has not previously taken place within
                         thirty-six (36) months after the Start Date, then,
                         thirty-nine (39) months after the Start Date, each
                         outstanding Series C Preferred Share shall
                         automatically be converted into (A) 1.10 Common Shares
                         if the Deposit Goal has been met prior to the end of
                         thirty-six (36) months after the Start Date, and (B)
                         1.02 Common Shares if the Deposit Goal has not been

                                       29
<PAGE>

                         met prior to the end of thirty-six (36) months after
                         the Start Date.

                              (iii)  Determination of Whether Deposit Goal Has
                                     -----------------------------------------
                         Been Met.  The Deposit Goal shall have been met prior
                         --------
                         to a specified date if the average deposits at the Bank
                         on behalf of the Banking Office for any calendar
                         quarter prior to such date equal or exceed $50,000,000.
                         For the purposes of determining whether the Deposit
                         Goal has been met, the Corporation will follow the
                         following procedures:

                                     Deposits:  For the purpose of making the
                                     --------
                              Deposit Goal calculations, "deposits" means the
                              book balances of all accounts which are insurable
                              by the Federal Deposit Insurance Corporation (such
                              as demand, savings, time, money market and NOW
                              accounts and certificates of deposit), including
                              the balances in such accounts in excess of
                              $100,000; provided, however, that certificates of
                                        --------  -------
                              deposit in amounts of $100,000 or more shall be
                              included in the total amount of deposits only to
                              the extent such certificates of deposit do not
                              exceed 10% of total deposits.

                                     Credit for Deposits:  The specific banking
                                     -------------------
                              office at which a deposit account is opened
                              receives the credit for the account; provided,
                                                                   --------
                              however, that if the Banking Office is not
                              -------
                              authorized to accept deposits or has not yet
                              opened for business, a deposit account may be
                              established at another banking office on behalf of
                              the Banking Office if designated as such.  The
                              Bank's accounting system tracks and accounts for
                              all depository accounts on a daily basis.

                                     Calendar Quarter Average:  After a calendar
                                     ------------------------
                              quarter has expired, the Bank will calculate the
                              calendar quarter average of deposits for accounts
                              designated as gathered on behalf of the Banking
                              Office by adding the sum of the daily general
                              ledger balance for such deposits and then dividing
                              this sum by the number of days in the calendar
                              quarter.

                              All determinations regarding whether the Deposit

                                       30
<PAGE>

                         Goal has been met as of any date shall be made by the
                         Corporation.  Such determinations in this regard shall
                         be final and conclusive for all purposes.

                         (c)  Mechanics of Conversion.  Upon the occurrence of
                              -----------------------
                    the dates specified in Section 5.29.4(b) above, the
                                           -----------------
                    outstanding Series C Preferred Shares shall be converted
                    automatically without any further action by the holders of
                    such shares and whether or not the certificates representing
                    such shares are surrendered to the Corporation or its
                    transfer agent; provided, however, that the Corporation
                                    --------  -------
                    shall not be obligated to issue to any holder certificates
                    evidencing the Common Shares issuable upon such conversion
                    unless certificates evidencing the Series C Preferred Shares
                    are delivered either to the Corporation or any transfer
                    agent designated by the Corporation.  Conversion shall be
                    deemed to have been effected on the date of the occurrence
                    of the dates specified in Section 5.29.4(b) above, as the
                                              -----------------
                    case may be, and such date is referred to herein as the

                    "Conversion Date."  Subject to the provisions of Section
                     ---------------                                 -------
                    5.29.4(b) above, as promptly as practicable thereafter (and
                    ---------
                    after surrender of the certificate or certificates
                    representing the Series C Preferred Shares to the
                    Corporation or any transfer agent designated by the
                    Corporation), the Corporation shall issue and deliver to
                    such holder a certificate or certificates for the number of
                    full Common Shares to which such holder is entitled as
                    provided in Section 5.29.4(b) hereof.  Subject to the
                                -----------------
                    provisions of Section 5.29.4(b), the person in whose name
                                  -----------------
                    the certificate or certificates for Common Shares are to be
                    issued shall be deemed to have become a holder of record of
                    such Common Shares on the applicable Conversion Date.

                         (d)  Fractional Shares.  No fractional Common Shares or
                              -----------------
                    scrip shall be issued upon conversion of Series C Preferred
                    Shares.  In lieu of any fractional Common Shares which would
                    otherwise be issuable upon conversion of any Series C
                    Preferred Shares, the number of full Common Shares issuable
                    upon conversion thereof shall be increased to the next
                    higher number of whole shares.

                         (e)  Rights After Conversion Date.  From and after the
                              ----------------------------
                    Conversion Date (unless the Corporation defaults in issuing
                    Common Shares in conversion for the outstanding Series C
                    Preferred Shares on the Conversion Date), such Series C
                    Preferred Shares shall be deemed not to be outstanding and
                    all rights of the holders of such shares as Shareholders of
                    the Corporation by reason of the ownership of such shares
                    shall cease, except the right

                                       31
<PAGE>

                    to receive Common Shares as provided in Section 5.29.4(b)
                                                            ----------------
                    herein on presentation and surrender of the respective
                    certificates evidencing such Series C Preferred Shares. Upon
                    presentation and surrender, on or after the Conversion Date,
                    of any certificate evidencing Series C Preferred Shares
                    (properly endorsed or assigned for transfer, if the
                    Corporation shall so require), such shares shall be
                    converted by the Corporation for Common Shares as provided
                    in this Section 5.29.4.
                            --------------

                         (f)  Authorized, But Unissued Shares.  Any Series C
                              -------------------------------
                    Preferred Shares that shall at any time have been converted
                    into Common Shares pursuant to this Section 5.29.4 shall,
                                                        --------------
                    after such conversion become authorized but unissued
                    Preferred Shares of the Corporation, and the certificates
                    evidencing such shares shall be canceled.

                         (g)  Reservation of Shares.  The Corporation shall
                              ---------------------
                    reserve at all times so long as any Series C Preferred
                    Shares remain outstanding, free from preemptive rights, out
                    of its treasury shares or its authorized but unissued Common
                    Shares, or both, solely for the purpose of effecting the
                    conversion of the Series C Preferred Shares, sufficient
                    Common Shares to provide for the conversion of all
                    outstanding Series C Preferred Shares.

                         (h)  Fully Paid and Nonassessable Shares.  All Common
                              -----------------------------------
                    Shares or other securities which may be issued upon
                    conversion of the Series C Preferred Shares will upon
                    issuance by the Corporation be duly and validly issued,
                    fully paid and nonassessable and free from all taxes, liens
                    and charges with respect to the issuance thereof and the
                    Corporation shall take no action which would cause a
                    contrary result.

                    5.29.5  Conversion Ratio Adjustments.  The number of Common
                            ----------------------------
               Shares into which the Series C Preferred Shares shall be
               converted pursuant to Section 5.29.4 (the "Conversion Ratios")
                                     --------------       -----------------
               and the securities or other property deliverable upon conversion
               of the Series C Preferred Shares shall be subject to adjustment
               from time to time as follows:

                         (a)  Share Subdivisions or Split-Ups.  If the number of
                              -------------------------------
                    Common Shares outstanding at any time after the date of
                    issuance of the Series C Preferred Shares is increased by a
                    subdivision or split-up of Common Shares, then immediately
                    after the record date fixed for the determination of holders
                    of Common Shares entitled to receive such subdivision or
                    split-up, as the case may be, the

                                       32
<PAGE>

                    Conversion Ratios shall be appropriately increased so that
                    the holder of any Series C Preferred Shares thereafter
                    converted shall be entitled to receive the number of Common
                    Shares of the Corporation which the holder would have owned
                    immediately following such action had such Series C
                    Preferred Shares been converted immediately prior thereto.

                         (b)  Combinations of Shares.  If the number of Common
                              ----------------------
                    Shares outstanding at any time after the date of issuance of
                    the Series C Preferred Shares is decreased by a combination
                    of the outstanding Common Shares, then, immediately after
                    the effective date of such combination, the Conversion
                    Ratios applicable thereto shall be appropriately decreased
                    so that the holder of any Series C Preferred Shares
                    thereafter converted shall be entitled to receive the number
                    of Common Shares of the Corporation which the holder would
                    have owned immediately following such action had such Series
                    C Preferred Shares been converted immediately prior thereto.

                         (c)  Reorganization, Reclassification, Merger, Sale of
                              -------------------------------------------------
                    All Assets, etc.  In case of any capital reorganization of
                    ----------------
                    the Corporation, or of any reclassification of the Common
                    Shares, or in case of the consolidation of the Corporation
                    with or the merger of the Corporation with or into any other
                    Person or of the sale, lease or other transfer of all or
                    substantially all of the assets of the Corporation to any
                    other Person, or in the case of any distribution of cash or
                    other assets or of notes or other indebtedness of the
                    Corporation or any other securities of the Corporation
                    (except Common Shares) to the holders of its Common Shares,
                    each Series C Preferred Share shall, after such capital
                    reorganization, reclassification, consolidation, merger,
                    sale, lease or other transfer or such distribution, be
                    convertible into the number of shares or other securities or
                    property to which the Common Shares issuable (at the time of
                    such capital reorganization, reclassification,
                    consolidation, merger, sale, lease or other transfer or such
                    distribution) upon conversion of such Series C Preferred
                    Shares would have been entitled upon such capital
                    reorganization, reclassification, consolidation, merger,
                    sale, lease or other transfer or such distribution in place
                    of (or in addition to, in the case of any such event after
                    which Common Shares remain outstanding) the Common Shares
                    into which such Series C Preferred Shares would otherwise
                    have been convertible; and in any such case, if necessary,
                    the provisions set forth herein with respect to the rights
                    and interest thereafter of the holders of Series C Preferred
                    Shares

                                       33
<PAGE>

                    shall be appropriately adjusted so as to be applicable, as
                    nearly as may reasonably be, to any shares or other
                    securities or property thereafter deliverable on the
                    conversion of the Series C Preferred Shares.

                         (d)  Rounding of Calculations; Minimum Adjustment.  All
                              --------------------------------------------
                    calculations under this Section 5.29.5 shall be made to the
                                            --------------
                    nearest one hundredth (1/100th) of a Common Share, as the
                    case may be.  Any provision of this Section 5.29.5 to the
                                                        --------------
                    contrary notwithstanding, no adjustment in the Conversion
                    Ratios shall be made if the amount of such adjustment would
                    be less than one hundredth of a Common Share, but any such
                    amount shall be carried forward and an adjustment with
                    respect thereto shall be made at the time of any subsequent
                    adjustment which, together with such amount and any other
                    amount or amounts so carried forward, shall aggregate one
                    hundredth of a Common Share or more.

                         (e) Timing of Issuance of Additional Common Shares upon
                             ---------------------------------------------------
                    Certain Adjustments.  In any case in which the provisions of
                    -------------------
                    this Section 5.29.5 shall require that an adjustment shall
                         --------------
                    become effective immediately after a record date for an
                    event, the Corporation may defer until the occurrence of
                    such event issuing to the holder of any Series C Preferred
                    Shares converted after such record date and before the
                    occurrence of such event the additional Common Shares or
                    other property issuable or deliverable upon such conversion
                    by reason of the adjustment required by such event over and
                    above the Common Shares or other property issuable or
                    deliverable upon such conversion before giving effect to
                    such adjustment; provided, however, that the Corporation
                                     --------  -------
                    upon request shall deliver to such holder a due bill or
                    other appropriate instrument evidencing such holder's right
                    to receive such additional shares or other property, and
                    such cash, upon the occurrence of the event requiring such
                    adjustment.

                         (f)  Statement Regarding Adjustments.  Whenever the
                              -------------------------------
                    Conversion Ratios shall be adjusted as provided in this

                    Section 5.29.5, the Corporation shall forthwith file, at the
                    --------------
                    office of any transfer agent for the Series C Preferred
                    Shares and at the principal office of the Corporation a
                    statement showing in detail the facts requiring such
                    adjustment and the Conversion Ratios that shall be in effect
                    after such adjustment, and the Corporation shall also cause
                    a copy of such statement to be mailed, first class postage
                    prepaid, to each holder of Series C Preferred Shares at its
                    address

                                       34
<PAGE>

                    appearing on the Corporation's records.

                            (g)  Cost. The Corporation shall pay all
                                 ----
                    documentary, stamp, transfer or other transactional taxes
                    attributable to the issuance or delivery of Common Shares of
                    the Corporation or other securities or property upon
                    conversion of any Series C Preferred Shares; provided,
                                                                 --------
                    however, that the Corporation shall not be required to pay
                    -------
                    any taxes which may be payable in respect of any transfer
                    involved in the issuance or delivery of any certificate for
                    such shares or securities in the name other than that of the
                    holder of Series C Preferred Shares in respect of which such
                    shares are being issued.

                    5.29.6  Voting.  The holders of Series C Preferred Shares
                            ------
               shall have no right or power to vote on any matter except as
               required by law.  In any matter on which the holders of Series C
               Preferred Shares shall, as a matter of law, be entitled to vote,
               the holders shall be entitled to one vote for each Series C
               Preferred Share held.

                    5.29.7  Liquidation Rights.
                            ------------------

                            (a)  Upon the dissolution, liquidation or winding up
                    of the Corporation, whether voluntary or involuntary, the
                    holders of Series C Preferred Shares then outstanding shall
                    be entitled to receive out of the assets of the Corporation
                    available for distribution to equity holders, an amount per
                    share in cash equal to the Purchase Price before any payment
                    or distribution shall be made on the Common Shares or on any
                    other class of capital shares of the Corporation ranking
                    junior to the Series C Preferred Shares upon liquidation.
                    All outstanding shares of any other series of preferred
                    shares shall rank at parity with the Series C Preferred
                    Shares. The consolidation or merger of the Corporation, or a
                    sale, exchange or transfer of all or substantially all of
                    its assets as an entirety, shall not be regarded as a
                    "dissolution, liquidation or winding up of the Corporation"
                    within the meaning of this Section 5.29.7(a).
                                               -----------------

                            (b)  After the payment to the holders of Series C
                    Preferred Shares of the full preferential amounts fixed
                    hereby for Series C Preferred Shares, the holders of Series
                    C Preferred Shares as such shall have no right or claim to
                    any of the remaining assets of the Corporation.

                            (c)  If the assets of the Corporation available for

                                       35
<PAGE>

                    distribution to the holders of Series C Preferred Shares
                    upon dissolution, liquidation or winding up of the
                    Corporation are insufficient to pay in full all amounts to
                    which such holders are entitled pursuant to Section
                                                                -------
                    5.29.7(a), no distribution shall be made on account of any
                    ---------
                    shares of a class or series of capital shares of the
                    Corporation ranking on a parity with the Series C Preferred
                    Shares, if any, upon such dissolution, liquidation or
                    winding up unless proportionate distributive amounts shall
                    be paid on account of the Series C Preferred Shares,
                    ratably, in proportion to the full distributable amounts for
                    which holders of all such parity shares are respectively
                    entitled upon such dissolution, liquidation or winding up.

                    5.29.8   Reports to Holders of Series C Preferred Shares.
                             -----------------------------------------------
               For so long as there shall remain outstanding any Series C
               Preferred Shares, the Corporation shall furnish to each holder of
               record of Series C Preferred Shares (i) all reports or other
               correspondence sent by the Corporation to holders of record of
               the Common Shares of the Corporation, and (ii) a quarterly report
               setting forth the average monthly deposits on behalf of the
               Banking Office.

                    5.29.9   Certain Covenants.  So long as any Series C
                             -----------------
               Preferred Shares are outstanding, without the prior written
               consent of the holders of a majority of the outstanding Series C
               Preferred Shares, the Corporation shall not amend, alter or
               repeal any provisions of this resolution establishing Series C
               Convertible Preferred Shares, or otherwise amend, alter or repeal
               any provision of the Articles of Incorporation of the Corporation
               so as to affect adversely the preferences, rights, powers or
               privileges of the Series C Preferred Shares.

                    5.29.10  Certain Events.  If any event occurs of the type
                             --------------
               contemplated but not expressly provided for by the provisions of
               Section 5.29.4 or Section 5.29.5 herein, then the Corporation's
               --------------    --------------
               Board of Directors will make an appropriate adjustment in the
               Conversion Ratios for the Series C Preferred Shares to protect
               the rights of the holders thereof.

                    5.29.11  Exclusion of Other Rights.  Unless otherwise
                             -------------------------
               required by law, the Series C Preferred Shares shall not have any
               voting powers, preferences or relative, participating, optional
               or other special rights other than those specifically set forth
               herein.

               5.30 Series D Convertible Preferred Shares.  By Resolution
                    -------------------------------------
          effective as of December 16, 1999, the Board of Directors of Irwin
          Financial Corporation (the

                                       36
<PAGE>

          "Corporation"), has approved and adopted the terms of Series D
          Convertible Preferred Shares (the "Series D Preferred Shares"), to
          consist of 66,666 shares, as follows:

                    5.30.1  Definitions.
                            -----------

                         "Bank" means Irwin Union Bank and Trust Company, a
                          ----
                    commercial bank chartered under the laws of the State of
                    Indiana and a wholly-owned subsidiary of the Corporation.

                         "Banking Office" means, collectively, the banking
                          --------------
                    offices operated by the Bank at 0-185 44th Street,
                    Grandville, Michigan 49418.

                         "Board" means the Board of Directors of the
                          -----
                    Corporation.

                         "Common Shares" means the common shares of the
                          -------------
                    Corporation.

                         "Corporation" means Irwin Financial Corporation, an
                          -----------
                    Indiana corporation.

                         "Deposit Goal" means the goal that the average deposits
                          ------------
                    at the Bank on behalf of the Banking Office for any calendar
                    quarter equal or exceed $25,000,000, with the calculations
                    to be made as set forth in Section 5.30.4(b)(iii) herein.
                                               ----------------------

                         "Person" means an individual, a partnership, a joint
                          ------
                    venture, a corporation, an association, a trust, or any
                    other entity or organization.

                         "Purchase Price" means the price per share at which the
                          --------------
                    Series D Preferred Shares have been offered and sold by the
                    Corporation to qualified investors pursuant to a
                    Confidential Private Placement Memorandum.

                         "Series D Preferred Shares" means the Series D
                          -------------------------
                    Convertible Preferred Shares of the Corporation.

                         "Start Date" means the first day of the calendar
                          ----------
                    quarter following the closing date of the offering.  The
                    Start Date is the date from which the Corporation will
                    measure the amount of deposits at the Bank on behalf of the
                    Banking Office for the purposes of determining conversion
                    rights.

                                       37
<PAGE>

                    5.30.2   Dividends.  The holders of outstanding Series D
                             ---------
               Preferred Shares shall not be entitled to receive any dividends
               on the Series D Preferred Shares.

                    5.30.3  Redemption.
                            ----------

                         (a) The outstanding Series D Preferred Shares are
                    redeemable at the option of the Corporation, out of the
                    assets of the Corporation legally available therefor, at any
                    time or from time to time, in whole and not in part, at a
                    redemption price per share of Series D Preferred Shares (the
                    "Redemption Price") equal to the Purchase Price; provided,
                    however, that for a period of not less than 30 days prior to
                    the date fixed for redemption (the "Redemption Date"), the
                    holders of the outstanding Series D Preferred Shares shall
                    have an option to convert each Series D Preferred Share into
                    1.25 Common Shares.

                         (b)  Notice of any redemption of Series D Preferred
                    Shares, specifying the date fixed for redemption, the
                    redemption price and the place at which shareholders may
                    obtain payment of the Redemption Price upon surrender of
                    their certificates, and the option of the shareholders to
                    convert their Series D Preferred Shares into Common Shares,
                    shall be mailed to each holder of record of the shares to be
                    redeemed, at such holder's address of record, not less than
                    35, nor more than 90 days prior to the Redemption Date.
                    Such notice shall set forth the manner in which shareholders
                    may convert their Series D Preferred Shares into Common
                    Shares, or to receive the Redemption Price, upon surrender
                    of their certificates.

                         (c)  Unless the Corporation defaults in the payment in
                    full of the Redemption Price, (i) all rights of the holders
                    of such Series D Preferred Shares as shareholders of the
                    Corporation by reason of the ownership of such shares
                    (including, without limitation, the right to convert the
                    Series D Preferred Shares into Common Shares) shall cease on
                    the Redemption Date except the right to receive the amount
                    payable upon redemption of such shares upon presentation and
                    surrender of the respective certificates evidencing such
                    shares, and (ii) such shares shall be deemed not to be
                    outstanding after the Redemption Date.

                         (d) Any Series D Preferred Shares that have been
                    redeemed shall, after such redemption, not be reissued as
                    Series D Preferred

                                       38
<PAGE>

                    Shares, but shall become authorized but unissued Preferred
                    Shares of the Corporation, and the certificates evidencing
                    such shares shall be canceled.

                         (e)  Any notice required by the provisions of this

                    Section 5.30.3 to be given to the holders of Series D
                    --------------
                    Preferred Shares shall be deemed given if deposited in the
                    United States mail postage prepaid, and addressed to each
                    holder of record at his, her or its address appearing on the
                    books of the Corporation.

                    5.30.4  Conversion Rights.  The Series D Preferred Shares
                            -----------------
               shall be convertible into Common Shares as follows:

                         (a)  No Optional Conversion.  Other than pursuant to a
                              ----------------------
                    redemption of the Series D Preferred Shares as set forth in
                    Section 3 above, the holders of Series D Preferred Shares
                    ---------
                    shall have no optional rights to convert such shares into
                    Common Shares.

                         (b)  Automatic Conversion.  Each Series D Preferred
                              --------------------
                    Share shall be automatically converted, without any further
                    act of the Corporation or the holders of Series D Preferred
                    Shares, into fully paid and nonassessable Common Shares in
                    the manner and at the times specified below:

                              (i)  Second Anniversary after Start Date.  If the
                                   -----------------------------------
                         Deposit Goal is met prior to twenty-four (24) months
                         from the Start Date, (A) the date of the automatic
                         conversion into Common Shares shall be twenty-seven
                         (27) months after the Start Date, and (B) each Series D
                         Preferred Share shall automatically be converted into
                         1.25 Common Shares.  If the Deposit Goal has not been
                         met prior to twenty-four (24) months from the Start
                         Date, the Series D Preferred Shares will not be
                         converted into Common Shares until after the third
                         anniversary of the Start Date.

                              (ii)  Third Anniversary after Start Date.  If the
                                    ----------------------------------
                         conversion of the Series D Preferred Shares into Common
                         Shares has not previously taken place within thirty-six
                         (36) months after the Start Date, then, thirty-nine
                         (39) months after the Start Date, each outstanding
                         Series D Preferred Share shall automatically be
                         converted into (A) 1.10 Common Shares if the Deposit
                         Goal has been met prior to the end of thirty-six (36)
                         months after the Start Date, and

                                       39
<PAGE>

                         (B) 1.02 Common Shares if the Deposit Goal has not been
                         met prior to the end of thirty-six (36) months after
                         the Start Date.

                              (iii)  Determination of Whether Deposit Goal Has
                                     -----------------------------------------
                         Been Met.  The Deposit Goal shall have been met prior
                         --------
                         to a specified date if the average deposits at the Bank
                         on behalf of the Banking Office for any calendar
                         quarter prior to such date equal or exceed $25,000,000.
                         For the purposes of determining whether the Deposit
                         Goal has been met, the Corporation will follow the
                         following procedures:

                                    Deposits:  For the purpose of making the
                                    --------
                              Deposit Goal calculations, "deposits" means the
                              book balances of all accounts which are insurable
                              by the Federal Deposit Insurance Corporation (such
                              as demand, savings, time, money market and NOW
                              accounts and certificates of deposit), including
                              the balances in such accounts in excess of
                              $100,000; provided, however, that certificates of
                                        --------  -------
                              deposit in amounts of $100,000 or more shall be
                              included in the total amount of deposits only to
                              the extent such certificates of deposit do not
                              exceed 10% of total deposits.

                                    Credit for Deposits:  The specific banking
                                    -------------------
                              office at which a deposit account is opened
                              receives the credit for the account; provided,
                                                                   --------
                              however, that if the Banking Office is not
                              -------
                              authorized to accept deposits or has not yet
                              opened for business, a deposit account may be
                              established at another banking office on behalf of
                              the Banking Office if designated as such.  The
                              Bank's accounting system tracks and accounts for
                              all depository accounts on a daily basis.

                                    Calendar Quarter Average:  After a calendar
                                    ------------------------
                              quarter has expired, the Bank will calculate the
                              calendar quarter average of deposits for accounts
                              designated as gathered on behalf of the Banking
                              Office by adding the sum of the daily general
                              ledger balance for such deposits and then dividing
                              this sum by the number of days in the calendar
                              quarter.

                                       40
<PAGE>

                              All determinations regarding whether the Deposit
                         Goal has been met as of any date shall be made by the
                         Corporation.  Such determinations in this regard shall
                         be final and conclusive for all purposes.

                         (c)  Mechanics of Conversion.  Upon the occurrence of
                              -----------------------
                    the dates specified in Section 5.30.4(b) above, the
                                           -----------------
                    outstanding Series D Preferred Shares shall be converted
                    automatically without any further action by the holders of
                    such shares and whether or not the certificates representing
                    such shares are surrendered to the Corporation or its
                    transfer agent; provided, however, that the Corporation
                                    --------  -------
                    shall not be obligated to issue to any holder certificates
                    evidencing the Common Shares issuable upon such conversion
                    unless certificates evidencing the Series D Preferred Shares
                    are delivered either to the Corporation or any transfer
                    agent designated by the Corporation.  Conversion shall be
                    deemed to have been effected on the date of the occurrence
                    of the dates specified in Section 5.30.4(b) above, as the
                                              -----------------
                    case may be, and such date is referred to herein as the
                    "Conversion Date."  Subject to the provisions of Section
                    ----------------                                 -------
                    5.30.4(b) above, as promptly as practicable thereafter (and
                    ---------
                    after surrender of the certificate or certificates
                    representing the Series D Preferred Shares to the
                    Corporation or any transfer agent designated by the
                    Corporation), the Corporation shall issue and deliver to
                    such holder a certificate or certificates for the number of
                    full Common Shares to which such holder is entitled as
                    provided in Section 5.30.4(b) hereof.  Subject to the
                                -----------------
                    provisions of Section 5.30.4(b), the person in whose name
                                  -----------------
                    the certificate or certificates for Common Shares are to be
                    issued shall be deemed to have become a holder of record of
                    such Common Shares on the applicable Conversion Date.

                         (d)  Fractional Shares.  No fractional Common Shares or
                              -----------------
                    scrip shall be issued upon conversion of Series D Preferred
                    Shares.  In lieu of any fractional Common Shares which would
                    otherwise be issuable upon conversion of any Series D
                    Preferred Shares, the number of full Common Shares issuable
                    upon conversion thereof shall be increased to the next
                    higher number of whole shares.

                         (e)  Rights After Conversion Date.  From and after the
                              ----------------------------
                    Conversion Date (unless the Corporation defaults in issuing
                    Common Shares in conversion for the outstanding Series D
                    Preferred Shares on the Conversion Date), such Series D
                    Preferred Shares shall be deemed not to be outstanding and
                    all rights of the holders of such shares as Shareholders of
                    the Corporation by

                                       41
<PAGE>

                    reason of the ownership of such shares shall cease, except
                    the right to receive Common Shares as provided in Section
                                                                      -------
                    5.30.4(b) herein on presentation and surrender of the
                    --------
                    respective certificates evidencing such Series D Preferred
                    Shares. Upon presentation and surrender, on or after the
                    Conversion Date, of any certificate evidencing Series D
                    Preferred Shares (properly endorsed or assigned for
                    transfer, if the Corporation shall so require), such shares
                    shall be converted by the Corporation for Common Shares as
                    provided in this Section 5.30.4.
                                     --------------

                         (f) Authorized, But Unissued Shares.  Any Series D
                             -------------------------------
                    Preferred Shares that shall at any time have been converted
                    into Common Shares pursuant to this Section 5.30.4 shall,
                                                        --------------
                    after such conversion, become authorized but unissued (and
                    undesignated) preferred shares of the Corporation, and the
                    certificates evidencing such shares shall be canceled.

                         (g)  Reservation of Shares.  The Corporation shall
                              ---------------------
                    reserve at all times so long as any Series D Preferred
                    Shares remain outstanding, free from preemptive rights, out
                    of its treasury shares or its authorized but unissued Common
                    Shares, or both, solely for the purpose of effecting the
                    conversion of the Series D Preferred Shares, sufficient
                    Common Shares to provide for the conversion of all
                    outstanding Series D Preferred Shares.

                         (h)  Fully Paid and Nonassessable Shares.  All Common
                              -----------------------------------
                    Shares or other securities which may be issued upon
                    conversion of the Series D Preferred Shares will upon
                    issuance by the Corporation be duly and validly issued,
                    fully paid and nonassessable and free from all taxes, liens
                    and charges with respect to the issuance thereof and the
                    Corporation shall take no action which would cause a
                    contrary result.

                    5.30.5  Conversion Ratio Adjustments.  The number of Common
                            ----------------------------
               Shares into which the Series D Preferred Shares shall be
               converted pursuant to Section 5.30.4 (the "Conversion Ratios")
                                     --------------       -----------------
               and the securities or other property deliverable upon conversion
               of the Series D Preferred Shares shall be subject to adjustment
               from time to time as follows:

                         (a)  Share Subdivisions or Split-Ups.  If the number of
                              -------------------------------
                    Common Shares outstanding at any time after the date of
                    issuance of the Series D Preferred Shares is increased by a
                    subdivision or split-up of Common Shares, then immediately
                    after the record date fixed for the determination of holders
                    of Common Shares entitled

                                       42
<PAGE>

                    to receive such subdivision or split-up, as the case may be,
                    the Conversion Ratios shall be appropriately increased so
                    that the holder of any Series D Preferred Shares thereafter
                    converted shall be entitled to receive the number of Common
                    Shares of the Corporation which the holder would have owned
                    immediately following such action had such Series D
                    Preferred Shares been converted immediately prior thereto.

                         (b)  Combinations of Shares.  If the number of Common
                              ----------------------
                    Shares outstanding at any time after the date of issuance of
                    the Series D Preferred Shares is decreased by a combination
                    of the outstanding Common Shares, then, immediately after
                    the effective date of such combination, the Conversion
                    Ratios applicable thereto shall be appropriately decreased
                    so that the holder of any Series D Preferred Shares
                    thereafter converted shall be entitled to receive the number
                    of Common Shares of the Corporation which the holder would
                    have owned immediately following such action had such Series
                    D Preferred Shares been converted immediately prior thereto.

                         (c)  Reorganization, Reclassification, Merger, Sale of
                              -------------------------------------------------
                    All Assets, etc.  In case of any capital reorganization of
                    ----------------
                    the Corporation, or of any reclassification of the Common
                    Shares, or in case of the consolidation of the Corporation
                    with or the merger of the Corporation with or into any other
                    Person or of the sale, lease or other transfer of all or
                    substantially all of the assets of the Corporation to any
                    other Person, or in the case of any distribution of cash or
                    other assets or of notes or other indebtedness of the
                    Corporation or any other securities of the Corporation
                    (except Common Shares) to the holders of its Common Shares,
                    each Series D Preferred Share shall, after such capital
                    reorganization, reclassification, consolidation, merger,
                    sale, lease or other transfer or such distribution, be
                    convertible into the number of shares or other securities or
                    property to which the Common Shares issuable (at the time of
                    such capital reorganization, reclassification,
                    consolidation, merger, sale, lease or other transfer or such
                    distribution) upon conversion of such Series D Preferred
                    Shares would have been entitled upon such capital
                    reorganization, reclassification, consolidation, merger,
                    sale, lease or other transfer or such distribution in place
                    of (or in addition to, in the case of any such event after
                    which Common Shares remain outstanding) the Common Shares
                    into which such Series D Preferred Shares would otherwise
                    have been convertible; and in any such case, if necessary,
                    the provisions set forth herein with respect to the rights

                                       43
<PAGE>

                    and interest thereafter of the holders of Series D Preferred
                    Shares shall be appropriately adjusted so as to be
                    applicable, as nearly as may reasonably be, to any shares or
                    other securities or property thereafter deliverable on the
                    conversion of the Series D Preferred Shares.

                         (d)  Rounding of Calculations; Minimum Adjustment.  All
                              --------------------------------------------
                    calculations under this Section 5.30.5 shall be made to the
                                            --------------
                    nearest one hundredth (1/100th) of a Common Share, as the
                    case may be.  Any provision of this Section 5.30.5 to the
                                                        --------------
                    contrary notwithstanding, no adjustment in the Conversion
                    Ratios shall be made if the amount of such adjustment would
                    be less than one hundredth of a Common Share, but any such
                    amount shall be carried forward and an adjustment with
                    respect thereto shall be made at the time of any subsequent
                    adjustment which, together with such amount and any other
                    amount or amounts so carried forward, shall aggregate one
                    hundredth of a Common Share or more.

                         (e)  Timing of Issuance of Additional Common Shares
                              ----------------------------------------------
                    upon Certain Adjustments.  In any case in which the
                    ------------------------
                    provisions of this Section 5.30.5 shall require that an
                                       --------------
                    adjustment shall become effective immediately after a record
                    date for an event, the Corporation may defer until the
                    occurrence of such event issuing to the holder of any Series
                    D Preferred Shares converted after such record date and
                    before the occurrence of such event the additional Common
                    Shares or other property issuable or deliverable upon such
                    conversion by reason of the adjustment required by such
                    event over and above the Common Shares or other property
                    issuable or deliverable upon such conversion before giving
                    effect to such adjustment; provided, however, that the
                                               --------  -------
                    Corporation upon request shall deliver to such holder a due
                    bill or other appropriate instrument evidencing such
                    holder's right to receive such additional shares or other
                    property, and such cash, upon the occurrence of the event
                    requiring such adjustment.

                         (f)  Statement Regarding Adjustments.  Whenever the
                              -------------------------------
                    Conversion Ratios shall be adjusted as provided in this
                    Section 5.30.5, the Corporation shall forthwith file, at the
                    --------------
                    office of any transfer agent for the Series D Preferred
                    Shares and at the principal office of the Corporation a
                    statement showing in detail the facts requiring such
                    adjustment and the Conversion Ratios that shall be in effect
                    after such adjustment, and the Corporation shall also cause
                    a copy of such statement to be mailed, first class postage

                                       44
<PAGE>

                    prepaid, to each holder of Series D Preferred Shares at its
                    address appearing on the Corporation's records.

                         (g)  Cost.  The Corporation shall pay all documentary,
                              ----
                    stamp, transfer or other transactional taxes attributable to
                    the issuance or delivery of Common Shares of the Corporation
                    or other securities or property upon conversion of any
                    Series D Preferred Shares; provided, however, that the
                                               --------  -------
                    Corporation shall not be required to pay any taxes which may
                    be payable in respect of any transfer involved in the
                    issuance or delivery of any certificate for such shares or
                    securities in the name other than that of the holder of
                    Series D Preferred Shares in respect of which such shares
                    are being issued.

                    5.30.6  Voting.  The holders of Series D Preferred Shares
                            ------
               shall have no right or power to vote on any matter except as
               required by law.  In any matter on which the holders of Series D
               Preferred Shares shall, as a matter of law, be entitled to vote,
               the holders shall be entitled to one vote for each Series D
               Preferred Share held.

                    5.30.7  Liquidation Rights.
                            ------------------

                         (a)  Upon the dissolution, liquidation or winding up of
                    the Corporation, whether voluntary or involuntary, the
                    holders of Series D Preferred Shares then outstanding shall
                    be entitled to receive out of the assets of the Corporation
                    available for distribution to equity holders, an amount per
                    share in cash equal to the Purchase Price before any payment
                    or distribution shall be made on the Common Shares or on any
                    other class of capital shares of the Corporation ranking
                    junior to the Series D Preferred Shares upon liquidation.
                    The Series D Preferred Shares shall rank at parity with all
                    outstanding shares of any other series of preferred shares.
                    The consolidation or merger of the Corporation, or a sale,
                    exchange or transfer of all or substantially all of its
                    assets as an entirety, shall not be regarded as a
                    "dissolution, liquidation or winding up of the Corporation"
                    within the meaning of this Section 5.30.7(a).
                                               -----------------

                         (b)  After the payment to the holders of Series D
                    Preferred Shares of the full preferential amounts fixed
                    hereby for Series D Preferred Shares, the holders of Series
                    D Preferred Shares as such shall have no right or claim to
                    any of the remaining assets of the Corporation.

                                       45
<PAGE>

                         (c)  If the assets of the Corporation available for
                    distribution to the holders of Series D Preferred Shares
                    upon dissolution, liquidation or winding up of the
                    Corporation are insufficient to pay in full all amounts to
                    which such holders are entitled pursuant to Section
                                                                -------
                    5.30.7(a), no distribution shall be made on account of any
                    ---------
                    shares of a class or series of capital shares of the
                    Corporation ranking on a parity with the Series D Preferred
                    Shares, if any, upon such dissolution, liquidation or
                    winding up unless proportionate distributive amounts shall
                    be paid on account of the Series D Preferred Shares,
                    ratably, in proportion to the full distributable amounts for
                    which holders of all such parity shares are respectively
                    entitled upon such dissolution, liquidation or winding up.

                    5.30.8  Reports to Holders of Series D Preferred Shares.
                            -----------------------------------------------
               For so long as there shall remain outstanding any Series D
               Preferred Shares, the Corporation shall furnish to each holder of
               record of Series D Preferred Shares (i) all reports or other
               correspondence sent by the Corporation to holders of record of
               the Common Shares of the Corporation, and (ii) a quarterly report
               setting forth the average monthly deposits on behalf of the
               Banking Office.

                    5.30.9  Certain Covenants.  So long as any Series D
                            -----------------
               Preferred Shares are outstanding, without the prior written
               consent of the holders of a majority of the outstanding Series D
               Preferred Shares, the Corporation shall not amend, alter or
               repeal any provisions of this resolution establishing Series D
               Convertible Preferred Shares, or otherwise amend, alter or repeal
               any provision of the Articles of Incorporation of the Corporation
               so as to affect adversely the preferences, rights, powers or
               privileges of the Series D Preferred Shares.

                    5.30.10  Certain Events.  If any event occurs of the type
                             --------------
               contemplated but not expressly provided for by the provisions of
               Section 5.30.4 or Section 5.30.5 herein, then the Corporation's
               --------------    --------------
               Board of Directors will make an appropriate adjustment in the
               Conversion Ratios for the Series D Preferred Shares to protect
               the rights of the holders thereof.

                    5.30.11  Exclusion of Other Rights.  Unless otherwise
                             -------------------------
               required by law, the Series D Preferred Shares shall not have any
               voting powers, preferences or relative, participating, optional
               or other special rights other than those specifically set forth
               herein.

          5.4  Voting Rights.
               -------------

                                       46
<PAGE>

               5.41 Voting Rights.
                    -------------

                    5.41.1  Common Shares.  Every holder of the Common Shares of
                            -------------
               the Corporation shall have the right at every Shareholders'
               meeting, to one vote for each Common Share standing in his or her
               name on the books of the Corporation.

                    5.41.2  Preferred Shares.  Holders of Preferred Shares shall
                            ----------------
               have no right to vote upon any question except as shall be
               affirmatively provided in the Act, or in the remaining sections
               of this article.

               5.42 No Greater Requirements.  Nothing in these Articles shall be
                    -----------------------
          deemed to require any greater portion of the Shares to concur in any
          action taken by the Shareholders than is required by law.

               5.43 Record Date.  The By-Laws may provide for a record date for
                    -----------
          determining Shareholders entitled to receive payment of any dividend
          or for determining Shareholders for any other purpose.

               5.44 Mergers and Consolidations.  Any class of Shares of this
                    --------------------------
          Corporation shall be entitled to vote as a class if the agreement of
          merger or consolidation contains any provision which, if contained in
          a proposed amendment to the Articles of Incorporation of the
          Corporation, would entitle such class of Shares to vote as a class.

               5.45 Voting on Special Corporate Transactions.  In voting on
                    ----------------------------------------
          adoption of any proposal for a special corporate transaction or for
          dissolution of the Corporation, all Shares shall vote as a single
          class and no Shares shall be entitled to vote as a separate class.

               5.46 Mergers With Subsidiaries.  Nothing herein contained shall
                    -------------------------
          limit the power of the Corporation or prescribe the procedures to be
          followed in any merger or consolidation of any subsidiary of this
          Corporation, ninety-five percent (95%) (or such lesser percentage as
          may hereafter be prescribed by law) or more of the outstanding Shares
          of which subsidiary are owned by this Corporation and any such merger
          or consolidation of any such subsidiary may be accomplished by the
          Board of Directors of this Corporation in the manner prescribed by
          law.

               5.47 Class Voting.  If the holders of any class of Shares are
                    ------------
          entitled to vote as a class, the proposal shall be adopted upon
          receiving the affirmative vote of the holders of at least a majority
          (or such greater proportion as these Articles of Incorporation may
          require) of the Shares of each class of Shares entitled to vote

                                       47
<PAGE>

          thereon as a class and of the total Shares entitled to vote thereon.

                                  Article VI
                     Requirements Prior To Doing Business

     The stated capital of the Corporation is at least $1000.00.

                                  Article VII
                                  Director(s)

          7.01 Number of Directors.  The Board of Directors is composed of
               -------------------
     sixteen (16) members.  The number of directors may be from time to time
     fixed by the By-Laws of the Corporation at any number.  In the absence of a
     By-Law fixing the number of directors, the number shall be sixteen.

          7.02 Section Qualifications of Directors.  No qualifications are
                       ----------------------------
     prescribed by these Articles.

                                 Article VIII
                                Incorporator(s)

     The name(s) and post office address(es) of the President and Executive Vice
President, Secretary of the Corporation are:

<TABLE>
<CAPTION>
                                  Number and Street or
Name                                   Building                City          State          Zip Code
----                                   --------                ----          -----          --------
<S>                               <C>                          <C>          <C>             <C>
Paul N. Dinkins                   500 Washington Street        Columbus     Indiana          47201
(President)
John A. Nash                      500 Washington Street        Columbus     Indiana          47201
(Executive Vice President,
 Secretary)
</TABLE>

                                  Article IX
  Provisions for Regulation of Business and Conduct of Affairs of Corporation

          9.01 Code of By-Laws.  The Board of Directors of the Corporation shall
               ---------------
     have power, without the assent of the Shareholders, to make, alter, amend
     or repeal the Code of By-Laws of the Corporation, but the affirmative vote
     of a majority of the members of the Board of Directors for the time being
     shall be necessary to make such Code or to effect any alteration, amendment
     or repeal thereof.  All provisions for the regulation of business and
     management of the affairs of the Corporation shall be stated in the By-
     Laws.

          9.02 Meetings of Shareholders.  Meetings of the Shareholders of the
               ------------------------

                                       48
<PAGE>

     Corporation shall be held at such place within or without the State of
     Indiana as may be specified in the respective notices or waivers of notice
     thereof or as specified in the By-Laws.

          9.03 Meetings of Directors.  Meetings of the Board of Directors and
               ---------------------
     committees thereof of the Corporation shall be held at such place within or
     without the State of Indiana as may be specified in the respective notices
     or waivers of notice thereof or as specified in the By-Laws.  The By-Laws
     shall prescribe the manner in which notice of such meetings may be given
     and the time before such meeting in which such notice shall be given,
     unless waived.

          9.04 Interest of Directors in Contracts.  Any contract or other
               ----------------------------------
     transaction between the Corporation and any corporation in which this
     Corporation owns all or a part of the capital stock shall be valid and
     binding notwithstanding the fact that the officers and/or directors
     executing the contract on behalf of this Corporation are the same or a
     majority of them are the same or the participating directors or officers
     are the same.  With the exception provided above, any contract or other
     transaction between the Corporation and any one or more of its directors or
     between the Corporation and any firm of which one or more of its directors
     are members or employees or in which they are interested or between the
     Corporation and any corporation or association in which one or more of its
     directors are stockholders, members, directors, officers or employees or in
     which they are interested, shall be valid for all purposes notwithstanding
     the presence of such director or directors at the meeting of the Board of
     Directors which acts upon or in reference to such contract or transaction
     and notwithstanding his or their participation in such action if the fact
     of such interest shall be disclosed or known to the Board of Directors and
     the Board of Directors shall authorize, approve and ratify such contract or
     transaction by a vote of the majority of the directors present, such
     interested director or directors to be counted in determining whether a
     quorum is present but not to be counted in calculating the majority of such
     quorum necessary to carry such vote.  This section shall not be construed
     to invalidate any contract or other transaction which would otherwise be
     valid under the common and statutory law applicable thereto.

          9.05 Indemnification of Directors, Officers and Employees.
               ----------------------------------------------------

               9.05.1  "Liability;" "Expense;"  As used in this Section 9.05 the
                       -----------------------                  ------------
          terms "liability" and "expense" shall include but shall not be limited
          to attorneys' fees and disbursements and amounts of judgment, fines or
          penalties against and amounts paid in settlement by the directors,
          officers or employees.

               9.05.2  "Claim."  As used in this Section 9.05, the term "claim"
                       --------                  ------------
          shall include:  (i) any claim, action, suit or proceeding, whether
          actual or threatened, brought by or in the right of this Corporation
          or another corporation or otherwise, civil, criminal or administrative
          or in connection with an investigation or appeal relating thereto,
          (ii) against a person who is or was a director, officer or employee of
          this Corporation or a person who was serving as a director, officer or
          employee

                                       49
<PAGE>

          of any other corporation at the request of this Corporation, and (iii)
          which is asserted against or threatened against him, as a party or
          otherwise, by reason of his having been a director, officer or
          employee of this Corporation or such other corporation or by reason of
          any past or future action taken or not taken in his capacity as such
          director, officer or employee, whether or not he continues to be such
          at the time the claim is asserted or threatened.

               9.05.3  Indemnity.  Any such director, officer or employee who
                       ---------
          has been wholly successful on the merits or otherwise with respect to
          any claim of the character described herein shall be entitled to
          indemnification as of right.  Except as provided in the preceding
          sentence, any indemnification hereunder shall be made at the
          discretion of the Corporation but only if (i) the Board of Directors
          acting by a quorum consisting of directors who are not parties to or
          who have been wholly successful with respect to such claim, action,
          suit or proceeding shall find that the person to be indemnified acted
          in good faith in what he reasonably believed to be the best interests
          of this Corporation or such other corporation, as the case may be,
          and, in addition, in any criminal action or proceeding (which shall
          not be deemed to include civil, administrative or investigative
          actions or proceedings in which conduct which violates a criminal
          statute is alleged) he had no reasonable cause to believe that his
          conduct was unlawful, or (ii) independent legal counsel (who may be
          regular counsel of the Corporation) shall deliver to it its written
          opinion that the person to be indemnified so acted.

               9.05.4  No Presumption.  The termination of any claim by
                       --------------
          judgment, settlement (whether with or without court approval) or
          conviction or upon a plea of guilty or of nolo contendere or its
                                                    ---- ----------
          equivalent shall not create a presumption that the person to be
          indemnified did not meet the standard of conduct set forth in Section
                                                                        -------
          9.05.3.
          ------

               9.05.5  Several Claims.  If several claims, issues or matters of
                       --------------
          action are involved, any such person may be entitled to
          indemnification as to some matters even though he is not entitled as
          to other matters.

               9.05.6  Advances.  The Corporation may advance expenses to or,
                       --------
          where appropriate, may at its expense undertake the defense of any
          such director, officer or employee upon receipt of an undertaking by
          or on behalf of such person to repay such expenses if it should
          ultimately be determined that he is not entitled to indemnification
          under this Section 9.05.
                     ------------

               9.05.7  Applicability.  The provisions of this Section 9.05 shall
                       -------------                          ------------
          be applicable to claims, actions, suits or proceedings made or
          commenced after the adoption hereof, whether arising from acts or
          omissions to act during, before or after the adoption hereof.

                                       50
<PAGE>

               9.05.8  Extent of Rights.  The rights of indemnification provided
                       ----------------
          hereunder shall be in addition to any rights to which any person
          concerned may otherwise be entitled by contract or as a matter of law
          and shall inure to the benefit of the heirs, executors and
          administrators of any such person.

               9.05.9  Insurance.  The Corporation may purchase and maintain
                       ---------
          insurance on behalf of any person who is or was a director, officer,
          employee or agent of the Corporation or is or was serving at the
          request of the Corporation as a director, officer, employee or agent
          of another corporation against any liability asserted against him and
          incurred by him in any capacity or arising out of his status as such,
          whether or not the Corporation would have the power to indemnify him
          against such liability under the provisions of this Section 9.05 or
                                                              ------------
          otherwise.

          9.06 Partnerships.  The Board of Directors shall have the power to
               ------------
     authorize the Corporation to enter into partnerships or any other lawful
     arrangement for the sharing of profits, union of interest, reciprocal
     association, cooperative association, partnership, joint venture or
     syndicate with any corporation, association, partnership, individual, firm
     or other legal entity for the purpose of carrying on any lawful business.

          9.07 Committees.  The By-Laws may provide for an executive committee
               ----------
     and other committees, which shall have the fullest authority to act for the
     Board of Directors permitted under the laws of Indiana.

          9.08 Removal of Directors.  The Shareholders shall have no power to
               --------------------
     remove directors during their terms of office.  Any director may be removed
     for specific cause found and determined by a vote of not less than two-
     thirds (2/3) of the entire Board of Directors at any time.

          9.09 Term of Directors.  When the Board of Directors consists of nine
               -----------------
     (9) or more directors, the By-Laws may specify that the directors shall be
     apportioned into two or more classes whose terms of office shall expire at
     different times, but no term shall continue longer than three (3) years.

          9.10 Amendment of Articles of Incorporation.  The Corporation reserves
               --------------------------------------
     the right to alter, amend and repeal any provisions contained in these
     Articles of Incorporation in the manner now or hereafter prescribed by the
     provisions of the Act or any other pertinent enactment of the General
     Assembly of the State of Indiana and all rights and powers conferred hereby
     on Shareholders, directors and officers of the Corporation are subject to
     such reserved right.

                                       51

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