Document:

exv10w35

 

Exhibit 10.35

FIRST AMENDMENT

TO THE

IRWIN UNION BANK & TRUST COMPANY

AMENDED AND RESTATED SHORT TERM INCENTIVE PLAN

     WHEREAS, Irwin Union Bank & Trust Company (the “Company”) maintains the Irwin Union Bank &
Trust Company Amended and Restated Short Term Incentive Plan (the “Plan”); and

     WHEREAS, the Company may amend the Plan from time to time under Section 9(a) of the Plan.

     NOW THEREFORE, the Plan is hereby amended as follows:

1. Section 3(e) of the Plan is hereby deleted in its entirety and replaced with the following:

	 	“(e)	 COMMITTEE means the committee appointed by the board of directors of IFC to
administer such short-term incentive plans as may be adopted by such board from time
to time or, in the absence of such a committee, the standing compensation committee of
IFC’s board of directors as constituted from time to time; provided, that any such
Committee shall be comprised solely of at least two members of the IFC board of
directors who qualify as “outside directors” under Code Section 162(m) and the
regulations promulgated thereunder and as “non-employee directors” within the meaning
of Rule 16b-3(b)(3) (or any successor rule) under the Exchange Act.”

2. Section 3(g) of the Plan is hereby deleted in its entirety and replaced with the following:

     “(g) COVERED OFFICER means any employee who is an “executive officer” (as defined under SEC
Rule 3b-7) of IFC.”

3. Section 3(k) of the Plan is hereby deleted in its entirety.

4. Section 5 of the Plan is hereby deleted in its entirety and replaced with the following:

 

 

     “5. Administration

	 	a)	 	The Committee is responsible for, and shall have full power to, administer
the Plan subject to the requirements of applicable law. The Committee shall have the
right to make rules and regulations as it deems appropriate to administer the Plan, to
construe and interpret the Plan, to decide all questions of eligibility, and to
determine the amount and time of payment of benefits hereunder to the fullest extent
provided by law and in its sole discretion. Any interpretations or decisions made in
good faith by the Committee will be conclusive and binding on all persons having any
interest in the Plan.
	 
	 	b)	 	The Committee may delegate may delegate (i) to one or more of its members
such of its duties, powers and responsibilities as it may determine; (ii) to the Board
the power to grant Awards to Participants who are not Covered Officers as of the time
of grant, and (iii) to such other individuals as it determines such ministerial tasks
as it deems appropriate. In the event of any delegation described in the preceding
sentence, the term “Committee” shall include the person or persons so delegated to the
extent of such delegation.
	 
	 	c)	 	The Committee and each member thereof, and any person acting pursuant to authority
delegated by the Committee, shall be entitled, in good faith, to rely or act upon any
report or other information furnished by any Covered Officer, other officer or
employee of the Company or a parent, subsidiary or affiliate, the Company’s
independent auditors, consultants or any other agents assisting in the administration
of the Plan. Members of the Committee, any person acting pursuant to authority
delegated by the Committee, and any officer or employee of the Company or a parent,
subsidiary or affiliate acting at the direction or on behalf of the Committee or a
delegee shall not be personally liable for any action or determination taken or made
in good faith with respect to the Plan, and shall, to the extent permitted by law, be
fully indemnified and protected by the Company with respect to any such action or
determination.

5. Section 6(b) is hereby amended by adding the following sentence after the first sentence
thereof:

“In addition, risk management may be selected by the Committee as an objective
performance-based goal for an Award to a Participant who is a not a Covered Officer at the
time of grant.”

6. Section 9(a) of the Plan is hereby deleted in its entirety and replaced with the following:

	 	“a)	 	 AMENDMENT, SUSPENSION AND TERMINATION OF THE PLAN. The Board may, at any
time and from time to time, amend, suspend or

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	 	 	 	terminate all or part of the Plan as it may deem appropriate and subject to any
requirement of stockholder approval imposed by applicable law, rule or regulation;
provided, that, subject to the right of the Committee to adjust awards under the
Plan, no such action may cause any Participant to be deprived of any Award
previously awarded but not yet paid, or be effective in the Performance Period in
which such action is taken, unless it is taken within the first three months of
such period. Notwithstanding the foregoing, to the extent that an amendment,
suspension or termination would apply to one or more Participants who are Covered
Officers, the Board’s authority to amend, suspend or termination the Plan shall be
subject to the Committee’s approval.”

7. All references in the Plan to “IFC Committee” shall be deleted and substituted with the
“Committee.”

8. This First Amendment shall be effective for all Performance Periods beginning on or after
January 1, 2007.

9. Capitalized terms not defined in this First Amendment shall have the meanings set forth in the
Plan.

10. Except as modified and amended by this First Amendment, the Plan remains in full force and
effect.

IN WITNESS WHEREOF, Irwin Union Bank has caused this First Amendment to be executed on its behalf
by its duly authorized officer in April, 2007.

	 	 	 	 	 
	 	 	IRWIN UNION BANK
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Thomas D. Washburn
	 

	 	 	 	 
	 

	 	Its:
	 	Chairman
	 

	 	 	 	 

	 
	Attest:

	 

	/s/ Steven R. Schultz, Secretary

	Date: April 27, 2007

3exv10w41

 

Exhibit 10.41

IRWIN COMMERCIAL FINANCE CORPORATION

FIRST AMENDED AND RESTATED SHAREHOLDER AGREEMENT

     THIS FIRST AMENDED AND RESTATED SHAREHOLDER AGREEMENT (this “Agreement”) is entered into on
the 15th day of May, 2007 by and among IRWIN COMMERCIAL FINANCE CORPORATION, an Indiana business
corporation (“ICF”), IRWIN UNION BANK AND TRUST COMPANY, an Indiana commercial bank (“IUBT”), and
JOE LALEGGIA, (“LaLeggia”), ROBERT MURPHY (“Murphy”), ROBERT MORMINA (“Mormina”), LUIGI SPIZZIRRI
(“Spizzirri”), MARK CANNON (“Cannon”) and JOHN RINALDI (“Rinaldi,” and together with LaLeggia,
Murphy, Mormina, Spizzirri and Cannon, the “Option Holders”; ICF, IUBT, LaLeggia, Murphy, Mormina,
Spizzirri, Cannon and Rinaldi are sometimes referred to herein as the “Parties”). This Agreement
supersedes, amends and restates the Irwin Commercial Finance Corporation Shareholder Agreement
dated December 23, 2005, in its entirety as follows:

RECITALS

A. ICF (f/k/a IRWIN CAPITAL HOLDINGS CORPORATION) was incorporated under the laws of the State of
Indiana on April 6, 2001, and is a direct subsidiary of IUBT and an indirect subsidiary of Irwin
Financial Corporation (“Irwin Financial”).

B. Irwin Financial, a bank holding company, organizes and conducts its various operations through a
line of business organizational structure, within which the majority of its separate businesses
fund their operations through IUBT.

C. One of Irwin Financial’s business segments within this structure is the consolidated commercial
finance line of business, including ICF and its subsidiaries.

D. The authorized capital stock of ICF consists of 1,500 shares of common stock, without par value
(“Common Shares”), and 100,000 shares of preferred stock, without par value (“Preferred Shares”).

E. All of the other authorized Common Shares that are issued and outstanding are owned by IUBT.

G. Each Option Holder has been granted an option (each, an “Options”) to purchase Common Shares
pursuant to an Irwin Commercial Finance Corporation Stock Option Agreement dated December 23, 2005
(the “Stock Option Agreements”).

H. The parties desire to set forth their agreement regarding the terms and conditions relating to
the ownership of any Common Shares that may be received by the Option Holders upon the exercise of
any of the Options, the transfer of such Common Shares and restrictions thereon, and certain other
matters concerning ownership of such Common Shares.

 

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

AGREEMENT

1. DEFINITIONS

     1.1. In this Agreement (the “Agreement”):

          (a) “Affiliate” means, with respect to a specified Person:

               (i) any Person that is Controlled by the specified Person; or

               (ii) if the specified Person is not an individual, any Person that Controls the specified
Person; or

               (iii) if the specified Person is not an individual, any Person under common Control with the
specified Person.

     (b) “Board” means the board of directors of ICF;

     (c) “Control” means, with respect to any Person, the (i) ownership, control or power to
vote, directly or indirectly, 25 percent or more of the outstanding shares of any class of voting
securities of such Person (if such Person is a corporation); (ii) control in any manner over the
right to elect or appoint directly or indirectly a majority of the directors of such Person (if
such Person is a corporation); or (iii) the power to manage or supervise or otherwise exercise,
directly or indirectly, a controlling influence over the management of the business and affairs
of such Person;

     (d) A “day” means calendar day, except where otherwise specified. If the day upon which any
act or event is to occur under this Agreement falls on a Saturday, Sunday or other day on which
banks in the State of Indiana or the Province of British Columbia, Canada are closed, the action
or event shall occur on the following day.

     (e) “Effective Date” means the date upon which a binding agreement of purchase and sale is
formed between any of the Parties to this Agreement under the terms of this Agreement, pursuant
to which one Party will purchase some or all of another Party’s Common Shares, and includes the
date on which an Exercise Notice or Right of First Refusal Notice is delivered;

     (f) “Exercise Notice” means any notice delivered by ICF or IUBT to an Option Holder for the
purpose of exercising the Call under Section 4.1 or Section 4.2(b)(2), thereby triggering a
purchase and sale of Common Shares pursuant to the provisions of Sections 4.3 and 4.4 hereof.

     (g) “Fair Market Value” means the fair market value of a Common Share as determined in
accordance with Section 4.3 of this Agreement;

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     (h) “Person” means an individual, a partnership, a corporation, an association, a joint
stock company, a limited liability company, a trust, a joint venture, an unincorporated
organization or any other entity.

2. ANTI-DILUTION PROVISIONS

     2.1. Adjustment Events.

          (a) An “Adjustment Event” occurs if ICF:

               (i) pays a dividend with respect to its capital stock in Common Shares or securities
convertible into Common Shares;

               (ii) subdivides its outstanding Common Shares or securities convertible into Common Shares;

               (iii) combines its outstanding Common Shares into a smaller number of Shares of any class of
Common Shares; or

               (iv) issues any Common Shares or securities convertible into Common Shares in a
reclassification or recapitalization of the Common Shares.

     (b) If an “Adjustment Event” occurs, the number of Common Shares held by any Option Holders
immediately prior to the Adjustment Event shall be adjusted so that such Option Holders shall
thereafter be entitled to receive the number of Common Shares necessary to avoid dilution of such
Option Holder’s percentage ownership of Common Shares from that existing immediately prior to
such Adjustment Event. An adjustment made pursuant to this Section 2.1 shall become effective
immediately after the effective date of such Adjustment Event, retroactive to the record date, if
any, for such Adjustment Event.

3. RESTRICTIONS ON TRANSFER

     3.1. Transfers Restricted.

          Prior to the first anniversary of the date an Option Holder acquires Common Shares, such
Option Holder may not sell, transfer or dispose of any of such Common Shares other than to another
Option Holder. On or after the first anniversary of the date an Option Holder acquires Common
Shares, such Option Holder may sell, transfer, or dispose of any such Common Shares only pursuant
to the terms of this Agreement. Any Option Holder may sell, transfer or dispose of any of his
Common Shares to another Option Holder at any time. Subject to the terms of this Agreement, IUBT
may sell, transfer or dispose of any of its Common Shares to any Person at any time.

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     3.2. No Encumbrance.

          Except as permitted by this Agreement, an Option Holder may not mortgage, pledge, charge,
hypothecate or otherwise encumber any Common Shares without ICF’s prior written consent.

     3.3. Obligation of Transferee.

          No Common Shares may be sold, transferred or issued in any event unless the Person receiving
the Common Shares has executed and delivered to ICF a joinder agreement in form and substance
satisfactory to ICF pursuant to which such Person agrees to be bound by the terms of this
Agreement.

     3.4. Effect of Non-Permitted Transfers.

          Any sale, transfer or other disposition of, or any attempted sale, transfer or other
disposition of, Common Shares in contravention of this Agreement shall be void and of no effect for
any purpose and shall not confer on any transferee or purported transferee any rights whatsoever.
ICF shall not effect such a transfer on its books, nor will it treat any purported transferee as
the holder of such Common Shares, and the Parties acknowledge that the certificates representing
Common Shares shall bear a legend referring to the restrictions imposed by this Agreement.

     3.5. Legend on Share Certificates.

          The share certificates representing each of the Common Shares are to be legibly stamped or
endorsed with the following statement:

“The shares represented by this Certificate have not been registered
under the federal Securities Act of 1933 (the “1933 Act”) or any
state securities law. These shares cannot be transferred, pledged
or hypothecated except in accordance with the provisions of
Regulation S under the 1933 Act, pursuant to registration under the
1933 Act and applicable state securities laws, or unless Irwin
Commercial Finance Corporation has received an opinion of counsel
satisfactory to it that registration under such laws is not required
by virtue of an available exemption from such registration
requirements. The sale, transfer, pledge and hypothecation of the shares represented by this Certificate are restricted under the
terms of an Agreement among Irwin Commercial Finance Corporation,
Irwin Union Bank and Trust Company and Certain Individuals, dated as
of December 23, 2005. Hedging transactions involving such shares
may not be conducted unless in compliance with the 1933 Act.”

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4. CALL RIGHT; RIGHT OF FIRST REFUSAL

     4.1. ICF and IUBT Call Right.

          With respect to each Option Holder, each of ICF and IUBT shall have the right to purchase (the
“Call”), and each such Option Holder shall have the obligation to sell upon the exercise of such
Call, all or any portion of such Option Holder’s Common Shares (a) at any time after the first
anniversary of the date on which such Option Holder acquires such Common Shares, by delivery of an
Exercise Notice to such Option Holder or his personal representative (with the date of such
Exercise Notice constituting the “Effective Date” for purposes of determining the Fair Market Value
of the Common Shares in accordance with Section 4.3) or (b) upon any proposed transfer of Common
Shares by such Option Holder to a third party that is not an Affiliate of ICF or another Option
Holder, in which case the Call shall be exercisable pursuant to the procedures set forth in Section
4.2.

     4.2. Right of First Refusal.

          In the event on or after the first anniversary of the date on which an Option Holder acquires
Common Shares, such Option Holder proposes to transfer such Common Shares pursuant to a bona fide
purchase offer received from a third party that is not an Affiliate of ICF, the Call right of each
of ICF and IUBT shall be in the form of a right of first refusal to purchase such Common Shares
upon the following terms:

     (a) The Option Holder shall first notify ICF and IUBT in writing at least 30 days in advance
of the proposed transfer. The notice shall contain all of the terms of the proposed transfer,
including, without limitation, the name and address of the prospective transferee, the purchase
price and other terms and conditions of payment (or the minimum purchase price or basis for
determining the minimum purchase price and other minimum acceptable terms and conditions), the
date on or about which the transfer is to be made, and the number of Common Shares to be
transferred (the “Transfer Notice”).

     (b) Within 10 business days after receipt of the Transfer Notice, either ICF or IUBT (the
“Exercising Party”) may notify the Option Holder that it intends either:

               (1) to exercise its Call by purchasing all (but not less than all) of the Common Shares
proposed to be transferred pursuant to the terms and conditions as set forth in the Transfer Notice
(the “Right of First Refusal Notice”), in which case the provisions of Subsection 4.2(c) shall
govern such purchase and sale, or

               (2) to exercise its Call by purchasing all (but not less than all) of the Common Shares
proposed to be transferred pursuant to the provisions of Sections 4.3 and 4.4, in which case the
Exercising Party shall deliver an Exercise Notice, and the provisions of Sections 4.3 and 4.4 shall
govern such purchase and sale.

If the Exercising Party exercises its Call under this Subsection 4.2(b), a binding contract of
purchase and sale will be formed between it and the Option Holder upon the delivery of the Right of
First Refusal Notice or the Exercise Notice, as the case may be.

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     (c) If the Exercising Party delivers a Right of First Refusal Notice, the Exercising Party
will buy, and the Option Holder will sell, the Common Shares at the time, at the price, and on
the same terms and conditions as those contained in the Transfer Notice, subject to the
following:

               (1) If the Transfer Notice provides for payment over time, the Exercising Party will have the
option to make payment all in cash for clear title at the closing of the purchase and sale;

               (2) If the Transfer Notice provides for the closing to take place more than 30 days after the
delivery of the Transfer Notice, the Exercising Party will have the option to close its purchase on
or before the 30th day after delivery of the Transfer Notice.

     (d) After compliance with the provisions of this Section 4.2, if no Call has been exercised,
the Option Holder may transfer his Common Shares, but only to the transferee designated in the
Transfer Notice, at the time, at the price, and on the same terms and conditions as those
contained in the Transfer Notice. If no Call is exercised and such proposed transfer to a third
party is not consummated within 30 days after delivery of the Transfer Notice, any proposed sale
of the Common Shares will again become subject to the notice provisions and the right of first
refusal provided in this Section 4.2.

     4.3. Purchase Price.

          If ICF or IUBT exercises its Call pursuant to Section 4.1 or Section 4.2(b)(2), the purchase
price (“Purchase Price”) for each Common Share to be purchased shall be equal to the Fair Market
Value of the Common Share, plus interest thereon from the Effective Date at the national prime rate
as reported in The Wall Street Journal as of the Effective Date (the “National Prime Rate”). The
Fair Market Value of a Common Share shall be determined as follows (with the date such Fair Market
Value is finally determined hereunder being referred to as the “Valuation Date”):

     (a) The Board shall determine the Fair Market Value of each Common Share as of the Effective
Date (the “Initial Valuation”), which Initial Valuation may be based on the opinion of an
independent appraiser engaged by the Board. All costs incurred in connection with the Initial
Valuation shall be borne by ICF. The Initial Valuation shall be set forth in a written notice
(the “Valuation Notice”) delivered by ICF to the Option Holder as soon as practicable following
the Board’s receipt of the independent appraiser’s opinion with respect to the value of the
Common Shares, if any, but in any event within 60 days after delivery of the Exercise Notice.

     (b) If the Option Holder does not dispute the Initial Valuation by delivery of a written
notice of dispute to ICF within 20 days after ICF’s delivery of the Valuation Notice, the Initial
Valuation shall be binding upon the Parties as the Fair Market Value. If the Option Holder does
dispute the Initial Valuation within the 20-day period, the Option Holder shall, at his sole
expense, retain a qualified appraiser (“the Second Appraiser”) of his own choosing to make a
second appraisal (the “Second Appraisal”) of the Fair Market Value of each Common Share. If the
Second Appraisal is less than the Initial Valuation,

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the Initial Valuation shall be binding upon the Parties. If the Second Appraisal exceeds
the Initial Valuation by an amount not greater than 10 percent of the Initial Valuation, the Fair
Market Value of each Common Share shall be the average of the Initial Valuation and the Second
Appraisal.

     (c) If the Second Appraisal exceeds the Initial Valuation by an amount greater than 10
percent of the Initial Valuation, the Board and the Second Appraiser shall act in good faith to
select a third appraiser, who shall conduct a third appraisal (the “Third Appraisal”), which
shall be final and binding upon the Parties, unless the Third Appraisal exceeds the higher of the
Initial Valuation and the Second Valuation by an amount greater than 10%, or is below the lower
of the Initial Valuation and the Second Valuation by an amount which exceeds 10%, in which case
the Final Valuation shall be determined by a simple average of all three valuations. If the
Third Appraisal of the Fair Market Value of each Common Share determines an amount that is closer
to the amount determined by the Second Appraisal than to the amount determined by the Initial
Valuation, then ICF shall reimburse the Option Holder for the cost of the Second Appraisal. All
costs with respect to the fees and expenses paid or payable to the appraiser that issues the
Third Appraisal shall be shared equally by ICF and the Option Holder. All other costs incurred
in connection with the Third Appraisal shall be borne by the party incurring such costs.

     (d) In determining the Fair Market Value of a Common Share, all appraisers shall take into
account, in addition to the factors described in Section 4.3(g) below, the internally prepared
income statement and balance sheet for ICF up through the end of the month immediately preceding
the Effective Date.

     (e) IUBT, ICF and the Option Holder each agree to make available to each other and to the
appraisers the information used to analyze and develop the Fair Market Value in connection with
the Initial Valuation and any decision by the Option Holder on whether or not to dispute the
same.

     (f) Notwithstanding anything in this Agreement to the contrary, (i) under no circumstances
shall IUBT, ICF or their Affiliates be obligated to do anything that would cause a violation of
any Federal, state, provincial or local law, including without limitation any banking laws, and
(ii) the Option Holder shall have no ownership interest, by virtue of this Agreement or the
ownership of Common Shares, in Irwin Financial or IUBT, or rights as against IUBT or Irwin
Financial (it being understood that the foregoing provision shall not preclude the Option Holder
from owning shares, or options to acquire shares, of common stock of Irwin Financial).

     (g) The Parties agree that it is the intent and purpose of this Section 4.3 that the Fair
Market Value be determined in accordance with Revenue Ruling 59-60 (as modified), a copy of which
is attached hereto as Exhibit A, and the appraisers shall take into account the various
factors set forth in Section 4 of Revenue Ruling 59-60; provided, however, that
such factors shall not have the effect of altering or removing the consideration of the financial
statements described in Section 4.3(d) above. The calculation of Fair Market Value of all issued
and outstanding Common Shares shall include and reflect, after taking into account all
liabilities of ICF (including inter-company debt owed to Irwin Financial,

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IUBT or any of their Affiliates) and the liquidation preference and preferential dividend
rights of the Preferred Shares (the “Preferred Return”), only the value of Common Shares, and
shall not include or reflect any value of Preferred Shares or any other investments in ICF made
by IUBT or any of its Affiliates. In determining the Fair Market Value of a Common Share, the
following rules will be applied:

               (i) the Fair Market Value per Common Share will be equal to the quotient obtained when the
aggregate Fair Market Value of all of the issued and outstanding Common Shares is divided by the
aggregate number of such issued and outstanding Common Shares.

               (ii) any allocations of the overhead of Irwin Financial or IUBT to the consolidated commercial
finance line of business segment may be made only in a manner that is consistent with historical
charges and only in a manner that is consistently applied among the business units and subsidiaries
of Irwin Financial;

               (iii) there will be no consideration of a liquidity or marketability discount or bonus applied
to minority Common Shares; and

               (iv) the Preferred Return for preferential dividend rights of the Preferred Shares shall be
calculated and credited to the holders of Preferred Shares prior to the determination of the value
of Common Stock.

Capital investments in ICF made by IUBT (or Irwin International Corporation), whether currently
outstanding or the result of future investments, will be in the form of Preferred Shares. For the
purposes of this Agreement, a return will be calculated on Preferred Shares for Preferred Share
investment amounts in excess of $60.5 million (the amount outstanding at December 31, 2005) from
the date of each Preferred Share investment until such time as the Preferred Shares are retired,
starting with incremental investments made on or after January 1, 2006.

The rate of return on each investment in Preferred Shares will be an annually-compounded fixed rate
determined on the date the investment is made and will be based upon the prior day’s closing
10-year U.S. swap rate (as recorded by the Bloomberg financial reporting system) plus a spread of
3.00% which is intended to approximate the required credit spread for IUBT’s intermediate to
long-term junior, unsecured liabilities. Returns on Preferred Shares shall not be paid or accrued
on a current basis, nor shall they appear in the GAAP-based financial statements, but will be
calculated and tracked on a subsidiary ledger for the sole purpose of subtracting the cumulative
returns on the Preferred Shares from the Fair Market Value of a Common Share in accordance with
this Agreement.

     (h) In determining the Fair Market Value of a Common Share, any transaction between ICF, on
the one hand, and IUBT or other Affiliates of Irwin Financial, on the other hand, will be based
upon the manner booked by the relevant entities, or on the basis of arm’s length transactions,
whichever would be more favorable to ICF. The Parties acknowledge that some transactions may not
have comparable arm’s length transactions available, in which case such value shall be based upon
the manner booked by IUBT or such other Affiliates of Irwin Financial, to the extent reasonable.

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     (i) The Purchase Price shall be increased or decreased appropriately, without duplication,
to reflect the occurrence after the Effective Date of an Adjustment Event, as defined in
Subsection 2.1(a).

4.4. Option Closing.

          The closing (“Option Closing”) of the purchase and sale of the Common Shares, whether pursuant
to a Call exercised in accordance with Section 4.1 or Section 4.2(b)(2), will take place on a date
selected by the party exercising the Call (whether IUBT or ICF), as the case may be, which date
will not be later than the 30th day following the Valuation Date unless the parties
agree otherwise, but shall in any case be no later than the 90th day following the
Valuation Date. The parties shall use their best efforts to complete the entire valuation and
closing process within the designated period. At the Option Closing, the Option Holder will tender
all the Common Shares subject to the Call to ICF or IUBT, as the case may be, and ICF or IUBT, as
the case may be, will make payment of the Purchase Price for all such Common Shares to the Option
Holder.

          During any period of determination of Fair Market Value, the Parties agree to use their best
efforts to carry on the business of ICF in the normal course and in the best interest of ICF. On
the Option Closing date, the Option Holder will sign and deliver to ICF all documents necessary to
transfer, free and clear of all liens, claims and other encumbrances, his/her Common Shares to ICF
or IUBT, as the case may be, including the stock certificates representing the Common Shares duly
endorsed for transfer. The Option Holder hereby appoints each of ICF and IUBT, as the case may be,
as the Option Holder’s attorney-in-fact, coupled with an interest, with full power and authority to
sign and deliver all resolutions and share transfers which may be required under this Section 4.4.
This appointment is irrevocable while the Option Holder owns Common Shares but will lapse
automatically as soon as the Option Holder ceases to own Common Shares.

     4.5. Request for Determination of Fair Market Value.

          An Option Holder shall have the right, upon request, to have an internal determination of Fair
Market Value made by the Board, which right may not be exercised more frequently than annually and
only during the month of June, with a Valuation Date as of June 30 (it being understood that any
such determination shall be binding and not subject to further review or appraisal until a
subsequent request is made in the following year pursuant to this Section 4.5 or until a subsequent
appraisal is conducted in accordance with the provisions of Section 4.3 hereof).

5. Exit Provisions.

     5.1. Exit Provisions.

          (a) If:

               (i) IUBT and the Option Holders receive a simultaneous bona fide arm’s length offer from a
third party (other than an Affiliate of any Option Holder) to purchase any of the issued and
outstanding Common Shares (it being understood that the provisions of this

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Section 5.1 shall not apply to such a simultaneous offer for all of the issued and outstanding
Common Shares); or

               (ii) ICF receives a bona fide arm’s length offer from a third party (other than an Affiliate
of any Option Holder) to purchase all of its assets and business or to acquire ICF through any
other form of business combination (whether by merger or otherwise),

which, in either case, IUBT or ICF wishes to accept (in either instance, the “Exit Offer”). IUBT
or ICF as the case may be will notify the Option Holders in writing, within 15 days of its receipt
of the Exit Offer (the “Exit Notice”), that (i) IUBT or ICF, as the case may be, wishes to accept
the Exit Offer and (ii) in the case of an asset sale or other business combination, IUBT and/or ICF
intends to vote to approve the transaction described in the Exit Offer.

     (b) The Exit Notice shall contain all of the terms and conditions of the proposed sale,
including, without limitation, the name and address of the prospective buyer, the purchase price
and other components of the transaction value, the terms of payment, other terms and conditions
(or the minimum purchase price or basis for determining the minimum purchase price and minimum
acceptable other terms and conditions) and the date on or about which the sale is to be made.

     (c) IUBT and the Option Holders or ICF, as the case may be, will sell to the purchaser named
in the Exit Notice:

               (i) their Common Shares, if the Exit Offer contemplated the sale of Common Shares (it being
understood that IUBT may also elect to sell, or to cause ICF to redeem, its Preferred Shares to the
extent such sale or redemption is contemplated by the Exit Offer), or

               (ii) the assets and business of ICF, if the Exit Offer contemplated the sale of ICF’s assets
and business, whether pursuant to an asset sale transaction, a merger, or some other form of
business combination, for the price and upon the terms and conditions set forth in the Exit Offer.

Each of the Option Holders and IUBT or ICF, as appropriate, shall sign all documents and do all
things, or shall cause all documents to be signed and all things to be done, that are necessary to
complete the sale described in the Exit Notice. Without limiting the generality of the foregoing,
each of the Option Holders shall be obligated (which obligation shall be enforceable by IUBT), to
sell his/her Common Shares and otherwise participate in the transaction described in the Exit
Notice, to vote his/her Common Shares in favor of such transaction at any meeting of shareholders
called to vote on or approve such transaction (or to execute one or more written consents in lieu
of such a meeting), and otherwise take all necessary action to consummate, or cause ICF to
consummate, such transaction.

     (d) Any Exit Notice may be rescinded by IUBT or ICF, as appropriate, by its delivering a
written notice to the Option Holders to that effect.

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     (e) Upon consummation of any transaction described in an Exit Notice, IUBT and each Option
Holder shall receive the same proportion of the aggregate consideration that such holder would
have received if such aggregate consideration had been distributed by ICF in complete
liquidation, giving due regard to the prior rights and preferences of the Preferred Shares and
the pro rata distribution of net assets remaining following the payment of amounts owed to
creditors and the satisfaction of liquidation preferences.

6. CERTAIN REPRESENTATIONS AND WARRANTIES

     Each Option Holder represents and warrants to ICF and IUBT, in connection with his/her
ownership of Common Shares, as the case may be, as follows:

     (a) The Option Holder will acquire and will own any Common Shares for investment purposes
only and not with the view to the distribution or resale thereof.

     (b) The Option Holder understands that the transfer of the Common Shares is severely limited
and that the Common Shares have not been registered under the 1933 Act, or any state or province,
Canadian or other securities laws.

     (c) The Option Holder understands and agrees that the Common Shares may not be offered or
sold except pursuant to the registration requirements of the 1933 Act and applicable state,
provincial or other securities laws, or pursuant to an available exemption therefrom. The Option
Holder agrees not to engage in hedging transactions with regard to the Common Shares except in
compliance with the 1933 Act.

     (d) The Option Holder has such knowledge and experience in financial and business matters
that the Option Holder is capable of evaluating the merits and risk of investment in the Common
Shares. Furthermore, as a result of the Option Holders’ active involvement as officers and
directors of ICF or subsidiaries of ICF, the Option Holder has had access to and actual knowledge
of all material facts concerning ICF and the Common Shares, and has had the availability to ask
questions and receive answers from ICF concerning the Common Shares, ICF and its operations. The
Option Holder also has had the opportunity to consult with his/her legal counsel and tax adviser
in connection with the investment in the Common Shares and the matters set forth in this
Agreement.

     (e) The execution, delivery and performance of this Agreement by the Option Holder and the
transactions contemplated hereby, do and will not violate, breach or constitute a default under
any agreement or contract to which the Option Holder is a party.

7. Miscellaneous

     7.1. Further Assurances; Other Agreements; Entire Agreement.

     (a) Each party hereto shall do and perform or cause to be done and performed all such
further acts and things and shall execute and deliver all such other agreements, certificates,
instruments and documents as any other party hereto may reasonably request, or as may be
reasonably necessary, in order to carry out the intent and the provisions of this Agreement and
the consummation of the transactions contemplated hereby.

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     (b) This Agreement constitutes the entire agreement and understanding among the parties
pertaining to the subject matter of this Agreement and supersedes any and all prior agreements,
whether written or oral, relating hereto.

     7.2. Notices.

     (a) Except as otherwise provided in this Agreement, all notices, requests, demands and other
communications under this Agreement shall be in writing and addressed as follows (or as amended
by proper notice under this Section 7.2):

                    (i) If to ICF:

Irwin Commercial Finance Corporation

500 Washington Street

Columbus, Indiana 47201

Attention: Thomas D. Washburn, Chairman

                    (ii) If to IUBT:

Irwin Union Bank and Trust Company

500 Washington Street

Columbus, Indiana 47201

Attention: Thomas D. Washburn, Chairman

                    (iii) If to any Option Holder, at the address set forth on the signature page.

     (b) If properly addressed, as in (a) above, notice shall be deemed effective and evidenced
as follows:

                    (i) if by registered or certified mail, postage prepaid and return receipt requested: three
Days after deposit in the United States or Canadian mails;

                    (ii) if by personal delivery or delivery service: upon actual delivery evidenced by written
receipt;

                    (iii) if by facsimile transmission: upon sending, evidenced by facsimile confirmation or
transmission log; or

                    (iv) if by internationally-recognized overnight courier, on the next business day after the
date when sent.

     7.3. Amendments.

          This Agreement may be amended only by a written agreement executed by each of the Parties
hereto.

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     7.4. Governing Law.

          This Agreement shall be governed by and construed in accordance with the laws of the State of
Indiana (without regard to conflicts of laws provisions).

     7.5. Successors and Assigns.

          This Agreement shall continue to benefit and to bind the parties and each of their permitted
successors and assigns. This Agreement may be assigned by the Parties hereto to any of their
respective successors and assigns who acquire Common Shares from them in compliance with the
provisions hereof. All or any portion of the rights of IUBT or ICF hereunder may be assigned by
them to any of their Affiliates upon notice to the Option Holders, but without the consent of the
Option Holders. No Option Holder may assign this Agreement without the consent of ICF. This
Agreement is not intended to create any third party beneficiaries.

     7.6. No Waiver.

          Failure to insist upon strict compliance with any of the terms, covenants, or conditions of
this Agreement shall not be deemed to be a waiver of such term, covenant, or condition, nor shall
any waiver or relinquishment of any right or power under this Agreement at any one or more times be
deemed a waiver or relinquishment of such right or power at any other time or times. In the event
a party hereto breaches any of its covenants or fails to perform any of its obligations hereunder,
the other parties may proceed to protect and enforce their rights by suit in equity and/or by
action at law, including an action for damages as a result of any such breach and/or an action for
specific performance of any such covenant or obligation contained in this Agreement.

     7.7. Severability.

          It is the desire and intent of the parties hereto that the provisions of this Agreement be
enforced to the fullest extent permissible under the laws and public policies applied in each
jurisdiction in which enforcement is sought. Accordingly, should any clause, portion, or paragraph
of this Agreement be unenforceable or invalid for any reason, such unenforceability or invalidity
shall not affect the enforceability or validity of the remainder of the clause, portion or
paragraph of this Agreement. Notwithstanding the foregoing, if such provision could be more
narrowly drawn so as not to be invalid, prohibited or unenforceable in such jurisdiction, it shall,
as to such jurisdiction, be so narrowly drawn, without invalidating the remaining provisions of
this Agreement or affecting the validity or enforceability of such provision in any other
jurisdiction.

     7.8. Section Headings.

          Introductory headings at the beginning of each Section and Subsection of this Agreement are
solely for the convenience of the parties and shall not be deemed to be a limitation upon or
description of the contents of any such Section or Subsection of this Agreement.

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     7.9. Counterparts.

          This Agreement may be executed in counterparts, each of which shall be deemed an original and
all of which, when taken together, shall constitute one and the same Agreement. Telecopied
signatures of this Agreement are effective to the same extent as original signatures.

     7.10. Time is of the Essence.

          Time shall be of the essence of any purchase and sale of Common Shares pursuant to the terms
of this Agreement.

     7.11. Alternative Dispute Resolution.

     (a) Negotiation. In the event of a dispute between the parties arising out of or related to
this Agreement, either party may give the other relevant party(ies) written notice of the
dispute. Upon such notice being given, the parties shall attempt in good faith to resolve the
dispute promptly by negotiation. Within 10 days after delivery of the notice, the receiving
party(ies) shall submit to the other party a written response to the notice. Thereafter, the
parties shall confer in person or by telephone promptly to attempt to resolve the dispute.

     (b) Mediation. If such dispute has not been resolved by negotiation within 30 days of the
sending of the original notice, or if the parties have failed to confer within 20 days after
delivery of the original notice, the parties shall endeavor to settle the dispute by mediation
under the then current Center for Public Resources (“CPR”) Model Procedure for Mediation of
Business Disputes. Unless otherwise agreed, the parties will select a mediator from the CPR
Panels of Distinguished Neutrals. If the parties encounter difficulty in agreeing on a neutral,
they will seek the assistance of CPR in the selection process. All negotiations and proceedings
pursuant to subparagraph (a) and this subparagraph (b) shall be confidential and shall be treated
as compromise and settlement negotiations for purposes of applicable rules of evidence and any
additional confidentiality protections provided by applicable law.

     (c) Arbitration. If the dispute has not been resolved by negotiation or mediation as
provided herein within 90 days of the initiation of the CPR mediation procedure, the parties
shall finally settle such dispute by binding arbitration conducted expeditiously in accordance
with the CPR Rules for Non-Administered Arbitration of Business Disputes by a sole arbitrator;
provided, however, that if one party has requested the other party(ies) to
participate in negotiation or mediation and the other party(ies) has failed to participate, the
requesting party may initiate arbitration before expiration of the above period. Unless
otherwise agreed, the sole arbitrator will be a lawyer selected from the CPR Panels of
Distinguished Neutrals. If the parties encounter difficulty in agreeing on a neutral, they will
seek the assistance of CPR in the selection process.

     The arbitration shall be governed by the Federal Arbitration Act, 9 U.S.C. § 1-16 to the
exclusion of state laws inconsistent therewith, and judgment upon the award rendered by the
arbitrator may be entered by any court having jurisdiction thereof. The place of

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arbitration shall be Columbus, Indiana. In deciding the dispute, the arbitrator shall be
bound by, and shall faithfully apply, the laws of the State of Indiana, including the laws of
evidence but excepting the rules of procedure. Notwithstanding anything in the foregoing to the
contrary, the arbitrator is not empowered to award damages in excess of compensatory damages, and
each party hereby irrevocably waives any right to recover such excessive damages with respect to
any dispute between them resolved by arbitration. The statute of limitations of the State of
Indiana applicable to the commencement of a lawsuit shall apply to the commencement of an
arbitration hereunder, except that no defenses shall be available based upon the passage of time
during any negotiation or mediation called for by the preceding subparagraphs (a) and (b).

[signature page follows]

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     IN WITNESS WHEREOF, the parties hereto have executed this Agreement and deem it effective as
of the date written above.

	 	 	 	 	 	 	 
	IRWIN COMMERCIAL FINANCE 

CORPORATION	 	IRWIN UNION BANK AND TRUST COMPANY
	 
	 	 	 	 	 	 
	By:

	 	/s/ Thomas D. Washburn
	 	By:
	 	/s/ Gregory F. Ehlinger
	 

	 	 
	 	 	 	 
	 

	 	Thomas D. Washburn, Chairman
	 	 	 	Gregory F. Ehlinger, Vice President
	 

	 	 	 	 	 	and Chief Financial Officer
	 
	 	 	 	 	 	 
	/s/ Joseph LaLeggia	 	/s/ Luigi Spizzirri
	 	 	 
	     JOSEPH LALEGGIA	 	     LUIGI SPIZZIRRI
	 
	 	 	 	 	 	 
	Address:

	 	 	 	Address:	 	 
	 

	 	 
	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	 
	 
	 	 	 	 	 	 
	 	 	 
	 
	 	 	 	 	 	 
	/s/ Mark Cannon	 	/s/ Robert Murphy
	 	 	 
	     MARK CANNON	 	     ROBERT MURPHY
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	Address:

	 	 	 	Address:	 	 
	 

	 	 
	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	 
	 
	 	 	 	 	 	 
	 	 	 
	 
	 	 	 	 	 	 
	/s/ Robert Mormina	 	/s/ John Rinaldi
	 	 	 
	     ROBERT MORMINA	 	     JOHN RINALDI
	 
	 	 	 	 	 	 
	Address:

	 	 	 	Address:	 	 
	 

	 	 
	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	 
	 
	 	 	 	 	 	 
	 	 	 

- 16 -

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