Document:

Exhibit 10.29

 

	
This   instrument prepared by and when recorded return to:
    	
 
    	
 
    
	
Mark   R. O’Meara
    	
 
    	
 
    
	
Chapman   and Cutler LLP
    	
 
    	
 
    
	
111   West Monroe Street
    	
 
    	
 
    
	
Chicago, Illinois   60603
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
SPACE   ABOVE THIS LINE RESERVED FOR RECORDER’S USE ONLY
    
	
 
    	
 
    	
 
    
					

 

FOURTH AMENDMENT TO 
 CONSTRUCTION LOAN AGREEMENT
 AND THE OTHER LOAN DOCUMENTS

 

BY AND BETWEEN

 

TEXTURA CORPORATION

 

AND

 

FIRST MIDWEST BANK

	
 
    	
 
    	
 
    

 

1405 Lake Cook Road

Deerfield, Illinois  60015

PIN:                       04-05-101-010

04-05-200-008

 

 

FOURTH AMENDMENT TO 
 CONSTRUCTION LOAN AGREEMENT
 AND THE OTHER LOAN DOCUMENTS

 

This FOURTH AMENDMENT TO CONSTRUCTION LOAN AGREEMENT AND THE OTHER LOAN DOCUMENTS (this “Amendment”) is dated and effective as of September 10, 2013 (the “Effective Date”), between Textura Corporation, a Delaware corporation (the “Borrower”) and First Midwest Bank (the “Lender”).

 

PRELIMINARY STATEMENTS

 

A.                                       The Borrower and Lender have entered into that certain (i) Construction Loan Agreement dated August 14, 2007, as amended (the “Loan Agreement”) and (ii) Construction Mortgage, Security Agreement, Assignment of Leases and Rents and Fixture Filing dated as of August 14, 2007, as amended (the “Mortgage”), which such Mortgage was recorded in the Recorder of Deeds of Cook County, Illinois on August 17, 2007, as Document Number 0722733126, as modified by that certain Modification of Loan Documents dated as of August 14, 2009 and recorded with the Recorder of Deeds of Cook County, Illinois on August 20, 2009, as Document Number 092323306, as modified by that certain Second Modification of Loan Documents dated as of August 14, 2011 and recorded with the Recorder of Deeds of Cook County, Illinois on September 28, 2011 as Document Number 1127140037, as modified by that certain Third Modification of Construction Loan Agreement and the Other Loan Documents and Waiver effective as of May 17, 2013 and recorded with the Recorder of Deeds of Cook County, Illinois on May 30, 2013 as Document Number 1315016076, and which encumbers the property described on Exhibit A attached hereto; and

 

B.                                     The Borrower has asked the Lender to make certain amendments to the Loan Agreement and the Mortgage, and the Lender is willing to do so on the terms and conditions set forth in this Amendment.

 

NOW, THEREFORE, in consideration of the premises set forth above, the terms and conditions contained herein and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

 

ARTICLE I
 DEFINITIONS

 

Section 1.1.                                Use of Defined Terms.  Unless otherwise defined or the context otherwise requires, terms for which meanings are provided in the Loan Agreement shall have such meanings when used in this Amendment.

 

2

 

ARTICLE II
 AMENDMENT

 

Section 2.1.                                Amendments to the Definitions.  Section 1.1 of the Loan Agreement shall be and hereby is amended by inserting new defined terms therein in their appropriate alphabetical order, each such defined term to read in its entirety as follows:

 

Subsequent Public Offering means the first underwritten public offering of the Borrower’s common stock which occurs after the IPO.

 

Section 2.2.                                Amendment to Default Section.  Section 11.1(o) of the Loan Agreement shall be amended and restated to read in its entirety as follows:

 

(o)                                 The failure of the Borrower to maintain all of its operating accounts with the Lender; provided, that it shall not be deemed an Event of Default under this Section 11.1(o) if the Borrower maintains any or all proceeds of the IPO or the Subsequent Public Offering with financial institutions other than the Lender so long as (i) the Borrower continues to maintain the FMB Accounts with the Lender, (ii) the Borrower continues to direct its account debtors to remit funds into the FMB Accounts, (iii) no other Event of Default has occurred and is continuing, and (iv) the only funds of the Borrower (and not funds held by the Borrower as custodian) not maintained in the FMB Accounts are proceeds from the IPO and the Subsequent Public Offering.

 

Section 2.3.                                Amendment to Prohibited Transfers.  Section 14(a)(ii) of the Mortgage shall be amended as follows:

 

i.                                          By deleting the word “and” at the end of Section (E) thereof;

 

ii.                                       By inserting the word “and” at the end of Section (F) thereof; and

 

iii.                                    By inserting a new Section (G) which reads as follows:

 

(G)                               the Mortgagor’s common stock in connection with the Subsequent Public Offering so long as (I) no Event of Default has occurred and is continuing or would result from the Subsequent Public Offering, (II) the amount of shares of the Mortgagor’s common stock issued, sold, conveyed, assigned or transferred by the Mortgagor to the underwriters in connection with the Subsequent Public Offering shall not exceed 2,500,000 shares in the aggregate, and (III) the Subsequent Public Offering closes on or before September 30, 2013;

 

Section 2.4.                                Amendment to Debt Service Coverage Ratio.  Section 29(e)(ii) of the Mortgage shall be amended and restated to read in its entirety as follows:

 

3

 

(ii)                                  “Net Cash Flow From Operations” shall mean, for any period, the net profit or loss for such period adjusted for the effects of: (a) the amount by which the sum of inventories and operating receivables less payables as of the last day of such period exceeds (or is less than) the sum of inventories and operating receivables less payables as of the first day of such period; (b) non-cash items such as depreciation, provisions, deferred taxes, accrued income (expenses) not yet received (paid) in cash, unrealized foreign currency gains and losses, undistributed profits of associates and non-controlled interest; and (c) all other items for which the cash effects relate to investing or financing; provided, that the (x) Net Cash Flow From Operations shall be calculated without giving effect to the net cash proceeds received from the IPO or the Subsequent Public Offering and (y) Net Cash Flow From Operations shall be calculated without giving effect to any cash received by the Mortgagor from any financings or additional Capital Stock issuances only if the outstanding principal amount of the Loan exceeds 75% of the fair market value of the Land and the Improvements thereon.

 

ARTICLE III
 REPRESENTATIONS AND WARRANTIES

 

Section 3.1.                                Loan Agreement.  In order to induce the Lender to enter into this Amendment, the Borrower hereby reaffirms, as of the Effective Date (after giving effect to this Amendment), (i) that the representations and warranties contained in Section 2.1 of the Loan Agreement are true, accurate and complete as of the Effective Date, (ii) no Default or Event of Default has occurred and is continuing, and (iii) the principal outstanding amount of the Loan as of September 6, 2013, is $10,215,624 and such amount (together with interest and fees thereon) is justly and truly owing by the Borrower without defense, offset or counterclaim.

 

Section 3.2.                                Due Authorization, Non-Contravention, etc.  The execution, delivery and performance by the Borrower of this Amendment are within the Borrower’s powers, have been duly authorized by all necessary corporate action, and do not:

 

(a)                            contravene or constitute a default under any provision of law or any judgment, injunction, order or decree binding upon the Borrower which would reasonably be expected to have a material adverse effect on properties, business, prospects, operations or condition (financial or otherwise) of the Borrower, or any provision of the Borrower’s organizational documents (e.g., charter, certificate or articles of incorporation and by-laws, certificate or articles of association and operating agreement, partnership agreement, or other similar organizational documents);

 

(b)                            contravene or constitute a default under any covenant, indenture or agreement of or affecting the Borrower or any of its property, in each case where such contravention or default, individually or in the aggregate, would reasonably be expected to have a material adverse effect on properties, business, prospects, operations or condition (financial or otherwise) of the Borrower; or

 

4

 

(c)                             result in the creation or imposition of any lien on any property of the Borrower other than the liens granted in favor of the Lender pursuant to the Loan Documents.

 

Section 3.3.                                           Government Approval, Regulation, etc.  No authorization or approval or other action by, and no notice to or filing with, any governmental authority or regulatory body or other Person is required for the due execution, delivery or performance by the Borrower of this Amendment.

 

Section 3.4.                                           Validity, etc.  The Loan Agreement and the other Loan Documents, as amended hereby, constitute the legal, valid and binding obligation of the Borrower enforceable in accordance with their terms, except as enforceability may be limited by bankruptcy, insolvency, fraudulent conveyance or similar laws affecting creditors’ rights generally and general principles of equity (regardless of whether the application of such principles is considered in a proceeding in equity or at law).

 

ARTICLE IV
 EFFECTIVENESS

 

This Amendment shall be effective as of the Effective Date.

 

ARTICLE V
 MISCELLANEOUS PROVISIONS

 

Section 5.1.                                           Ratification of and References to the Loan Agreement.  Except for the amendments and waivers expressly set forth herein, the Loan Agreement, the Promissory Note, and each other Loan Document is hereby ratified, approved and confirmed in each and every respect.  The Borrower hereby acknowledges and agrees that (i) the liens created and provided for by the Loan Documents continue to secure, among other things, the obligations, liabilities and indebtedness of the Borrower and to the Lender under the Loan Agreement and the other Loan Documents, and (ii) the Loan Documents and the rights and remedies of the Lender thereunder, the obligations of the Borrower thereunder, and the liens created and provided for thereunder, remain in full force and effect and shall not be amended, modified, affected, impaired or discharged hereby.  Nothing herein contained shall in any manner affect or impair the priority of the liens and security interests created and provided for by the Loan Documents as to the indebtedness which would be secured thereby prior to giving effect to this Amendment.  Reference to this specific Amendment need not be made in the Loan Agreement, the Promissory Note, the Mortgage, or any other instrument or document executed in connection therewith, or in any certificate, letter or communication issued or made pursuant to or with respect to the Loan Agreement.  The Borrower acknowledges that this Amendment is a Loan Document under the Loan Agreement.

 

Section 5.2.                                           Headings.  The various headings of this Amendment are for convenience of reference only, are not part of this Amendment and shall not affect the construction of, or be taken into consideration in interpreting, this Amendment.

 

5

 

Section 5.3.                                           Execution in Counterparts.  This Amendment may be executed in counterparts (and by different parties hereto on different counterparts), each of which shall constitute an original, but all of which when taken together shall constitute a single agreement.

 

Section 5.4.                                           No Other Amendments.  Except for the amendments expressly set forth above, the text of the Loan Agreement and the other Loan Documents shall remain unchanged and in full force and effect, and the Lender expressly reserve the right to require strict compliance with the terms of the Loan Agreement and the other Loan Documents.  Nothing in this Amendment shall affect any waivers granted by the Lender to the Borrower prior to the Effective Date.

 

Section 5.5.                                           Costs and Expenses.  The Borrower agrees to pay on demand all costs and expenses of or incurred by the Lender in connection with the negotiation, preparation, execution and delivery of this Amendment, including the fees and expenses of counsel for the Lender.

 

Section 5.6.                                           Governing Law.  This Amendment shall be construed in accordance with and governed by the law of the State of Illinois.

 

Section 5.7.                                           RELEASE.  FOR VALUE RECEIVED, INCLUDING WITHOUT LIMITATION, THE AGREEMENTS AND WAIVERS OF THE LENDER IN THIS AMENDMENT, THE BORROWER HEREBY RELEASES THE LENDER, ITS CURRENT AND FORMER SHAREHOLDERS, DIRECTORS, OFFICERS, AGENTS, EMPLOYEES, ATTORNEYS, CONSULTANTS, AND PROFESSIONAL ADVISORS (COLLECTIVELY, THE “RELEASED PARTIES”) OF AND FROM ANY AND ALL DEMANDS, ACTIONS, CAUSES OF ACTION, SUITS, CONTROVERSIES, ACTS AND OMISSIONS, LIABILITIES, AND OTHER CLAIMS OF EVERY KIND OR NATURE WHATSOEVER, BOTH IN LAW AND IN EQUITY, KNOWN OR UNKNOWN, WHICH THE BORROWER HAS OR EVER HAD AGAINST THE RELEASED PARTIES (COLLECTIVELY, THE “CLAIMS”) FROM THE BEGINNING OF THE WORLD TO THE EFFECTIVE DATE, INCLUDING, WITHOUT LIMITATION, THOSE ARISING OUT OF THE EXISTING FINANCING ARRANGEMENTS BETWEEN THE BORROWER AND THE LENDER, BUT EXCLUDING CLAIMS AGAINST OR INVOLVING ANY RELEASED PARTY AS A STOCKHOLDER OF THE BORROWER, AND THE BORROWER FURTHER ACKNOWLEDGES THAT, AS OF THE EFFECTIVE DATE, IT DOES NOT HAVE ANY COUNTERCLAIM, SET-OFF, OR DEFENSE AGAINST THE RELEASED PARTIES (BUT EXCLUDING ANY COUNTERCLAIM, SET-OFF, OR DEFENSE AGAINST OR INVOLVING ANY RELEASED PARTY AS A STOCKHOLDER OF THE BORROWER) EACH OF WHICH THE BORROWER HEREBY EXPRESSLY WAIVES.  THE BORROWER IS NOT AWARE OF ANY CLAIMS THAT IT HAS AGAINST ANY RELEASED PARTY AS A STOCKHOLDER OF THE BORROWER AS A RESULT OF ANY BREACH OF, OR ANY FAILURE BY ANY RELEASED PARTY TO PERFORM, ANY OF ITS OBLIGATIONS AS A STOCKHOLDER OF THE BORROWER.

 

[SIGNATURE PAGES TO FOLLOW]

 

6

 

IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly executed and delivered by their respective duly authorized officers as of the Effective Date.

 

 

	
 
    	
“BORROWER”
    
	
 
    	
 
    
	
 
    	
TEXTURA   CORPORATION
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By
    	
/s/   Jillian Sheehan
    
	
 
    	
 
    	
Name
    	
Jillian   Sheehan
    
	
 
    	
 
    	
Title
    	
CFO
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
“LENDER”
    
	
 
    	
 
    
	
 
    	
FIRST   MIDWEST BANK
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By
    	
/s/   Marc R Parise
    
	
 
    	
 
    	
Name
    	
Marc   Parise
    
	
 
    	
 
    	
Title
    	
President
    

 

[Amendment to Loan Agreement]

 

S-1

 

	
STATE   OF ILLINOIS
    	
)
    
	
 
    	
)   SS
    
	
COUNTY   OF COOK
    	
)
    

 

The undersigned, a Notary Public in and for said County in the State aforesaid, does hereby certify that Jillian Sheehan, the CFO of Textura Corporation, a Delaware corporation, personally known to me to be the same person whose name is subscribed to the foregoing instrument, appeared before me this day in person and acknowledged that she/he signed and delivered the said instrument as her/his own free and voluntary act, and as the free and voluntary act of said corporation for the purposes therein set forth.

 

Given under my hand and notarial seal this 9 day of September, 2013.

 

 

	
[Notary   Seal]
    	
/s/   John W. Smith
    
	
 
    	
Notary Public
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
John   W. Smith
    
	
 
    	
(Type or Print Name)
    

My commission expires:

 

2

 

	
STATE   OF ILLINOIS
    	
)
    
	
 
    	
)   SS
    
	
COUNTY   OF COOK
    	
)
    

 

The undersigned, a Notary Public in and for said County in the State aforesaid, does hereby certify that Marc R Parise, the president of First Midwest Bank, an Illinois banking corporation, personally known to me to be the same person whose name is subscribed to the foregoing instrument, appeared before me this day in person and acknowledged that she/he signed and delivered the said instrument as her/his own free and voluntary act, and as the free and voluntary act of said corporation for the purposes therein set forth.

 

Given under my hand and notarial seal this 10 day of September, 2013.

 

 

	
[Notarial   Seal]
    	
 
    	
/s/   Elizabeth K. Scott
    
	
 
    	
 
    	
Notary   Public
    
	
 
    	
 
    	
Printed   Name:
    	
Elizabeth   K Scott
    
	
My   commission expires:
    	
3/2/16
    	
 
    	
 
    
					

 

3

 

EXHIBIT “A”

 

LEGAL DESCRIPTION OF THE PROPERTY

 

PARCEL 1:

 

LOT 2 IN LAKE-COOK ROAD INDUSTRIAL PARK, A SUBDIVISION OF PART OF THE NORTHWEST 1/4 AND THE NORTHWEST 1/4 OF SECTION 5, TOWNSHIP 42 NORTH, RANGE 12 EAST OF THE THIRD PRINCIPAL MERIDIAN, ACCORDING TO THE PLAT OF SUBDIVISION RECORDED IN THE OFFICE OF THE COOK COUNTY RECORDER OF DEEDS ON FEBRUARY 18, 1982 AS DOCUMENT NO. 26147952, (EXCEPTING AND EXCLUDING FROM SAID LOT 2 THAT PORTION DESCRIBED AS FOLLOWS: BEGINNING AT THE SOUTHEAST CORNER OF SAID LOT 2: THENCE NORTH 00 DEGREES 24 MINUTES 37 SECONDS EAST ON A BEARING BASED ON THE ILLINOIS STATE PLANE COORDINATE SYSTEM NAD 83 EAST ZONE ALONG THE EAST LINE OF SAID LOT 2, A DISTANCE OF 16.96 FEET; THENCE SOUTH 89 DEGREES 52 MINUTES 08 SECONDS WEST, 464.17 FEET; THENCE SOUTH 88 DEGREES 25 MINUTES 45 SECONDS WEST, 85.23 FEET TO THE WEST LINE OF SAID LOT 2; THENCE SOUTH 00 DEGREES 24 MINUTES 24 SECONDS WEST ALONG SAID WEST LINE, 14.53 FEET TO THE SOUTH LINE OF SAID LOT 2, THENCE NORTH 89 DEGREES 53 MINUTES 55 SECONDS EAST ALONG SAID SOUTH LINE 549.35 FEET TO THE POINT OF BEGINNING) IN COOK COUNTY, ILLINOIS.

 

PARCEL 2:

 

EASEMENT FOR THE BENEFIT OF PARCELS 1 AND 2 AFORESAID FOR INGRESS AND EGRESS AND ACCESS FOR CONSTRUCTION, INSTALLATION, USE, MAINTENANCE, REPAIR AND REPLACEMENT OF FRONTAGE ROAD DESCRIBED IN AND AS CREATED BY DECLARATION AND GRANT OF EASEMENT MADE BY LASALLE NATIONAL BANK, AS TRUSTEE UNDER TRUST AGREEMENT DATED OCTOBER 30, 1972 AND KNOWN AS TRUST NUMBER 44913 DATED AUGUST 1, 1981 AND RECORDED SEPTEMBER 2, 1981 AS DOCUMENT 25987860 OVER THE FOLLOWING DESCRIBED PARCELS OF LAND:

 

PARCEL 2A:

 

THE SOUTH 60 FEET OF THE NORTH 120.0 FEET OF THE “PARCEL OF LAND” HEREINAFTER DESCRIBED, IN COOK COUNTY, ILLINOIS.

 

PARCEL 2B:

 

THAT PART OF THE NORTH 60 FEET OF SAID “PARCEL OF LAND” BOUNDED ON THE WEST BY THE WEST LINE OF THE 80.00 FOOT RIGHT OF WAY OF PINE STREET (AS SHOWN ON THE THIRD ADDITION TO DEERFIELD PARK UNIT NO. 1, BEING A

 

4

 

SUBDIVISION IN THE SOUTHEAST 1/4 OF SECTION 32, TOWNSHIP 43 NORTH, RANGE 12, EAST OF THE THIRD PRINCIPAL MERIDIAN, IN LAKE COUNTY, ILLINOIS, RECORDED DECEMBER 22, 1958 AS DOCUMENT 1015141) EXTENDED SOUTH; BOUNDED ON THE EAST BY THE EAST LINE OF THE AFOREMENTIONED PINE STREET, EXTENDED SOUTH, FALLING IN COOK COUNTY, ILLINOIS;

 

PARCEL 2C:

 

THAT PART OF THE NORTH 60.00 FEET OF THE SAID “PARCEL OF LAND”; BOUNDED ON THE WEST BY THE WEST LINE OF THE 60.00 FOOT RIGHT OF WAY OF THE NOW NAMED BIRCHWOOD AVENUE (AS SHOWN AS PHEASANT STREET ON A SUBDIVISION OF J.S. HOVLAND’S FIRST ADDITION TO DEERFIELD, BEING A SUBDIVISION IN THE SOUTHWEST 1/4 OF SECTION 32, TOWNSHIP 43 NORTH, RANGE 12, EAST OF THE THIRD PRINCIPAL MERIDIAN, IN LAKE COUNTY, ILLINOIS RECORDED NOVEMBER 7, 1924 AS DOCUMENT 248380), EXTENDED SOUTH; AND BOUNDED ON THE EAST BY THE EAST LINE OF THE AFOREMENTIONED BIRCHWOOD AVENUE, EXTENDED SOUTH, IN COOK COUNTY, ILLINOIS.

 

LEGAL DESCRIPTION OF “PARCEL OF LAND”

 

THAT PART OF THE EAST 1/2 OF GOVERNMENT LOT 2 IN THE NORTHWEST 1/4 OF SECTION 5, TOWNSHIP 42 NORTH, RANGE 12, EAST OF THE THIRD PRINCIPAL MERIDIAN AND ALSO THE WEST 1/2 OF GOVERNMENT LOT 2 (EXCEPT THE EAST 878.25 FEET, AS MEASURED ALONG THE NORTH LINE THEREOF) IN THE NORTHEAST 1/4 OF SAID SECTION 5, ALL TAKEN AS TRACT, LYING NORTH OF THE NORTH LINE OF TOLLWAY PARCEL T-11-B-2 AS DESCRIBED IN SUPERIOR COURT CASE 56S19626 DATED NOVEMBER 9, 1956 LYING NORTHERLY OF TOLLWAY PARCEL T-11-B-2 AS DESCRIBED IN SUPERIOR COURT CASE 56S19626 DATED FEBRUARY 5, 1957 AND LYING SOUTH OF THE SOUTH LINE OF LAKE COOK ROAD, BEING A LINE 50.00 FEET SOUTH OF AND PARALLEL WITH THE NORTH LINE OF BOTH IN THE NORTHWEST 1/4 OF THE NORTHEAST 1/4 OF SAID SECTION 5;

 

ALSO

 

THAT PART OF THE EAST 878.26 FEET (AS MEASURED ALONG THE NORTH LINE) EXCEPT THE NORTH 873.00 FEET OF THE EAST 20.00 FEET OF THE WEST 1/2 OF GOVERNMENT LOT 2 IN THE NORTHEAST 1/4 OF SECTION 5, TOWNSHIP 42 NORTH, RANGE 12, EAST OF THE THIRD PRINCIPAL MERIDIAN, LYING NORTH OF THE NORTH LINE OF TOLLWAY PARCEL T-11-B-2 AS DESCRIBED IN SUPERIOR COURT CASE 56Sl9626 DATED NOVEMBER 9, 1956 LYING SOUTH OF THE SOUTH LINE OF LAKE-COOK ROAD BEING A LINE 50.00 FEET SOUTH OF AND PARALLEL WITH THE NORTH LINE OF THE NORTHEAST 1/4 OF SAID SECTION 5;

 

5

 

ALSO

 

THE SOUTH 200 FEET OF THE NORTH 1073.00 FEET OF THE WEST 3 ACRES OF THE NORTHEAST 1/4 OF THE NORTHEAST 1/4 OF SECTION 5 AFORESAID, ALL IN COOK COUNTY, ILLINOIS (EXCEPTING THEREFROM THAT PART OF SAID EASEMENT FALLING WITHIN PARCEL 1).

 

P.I.N.: 04-05-101-010

04-05-200-008

 

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  Exhibit 10.1    
    

September 11,
2013 

Umpqua
Holdings Corporation

One SW Columbia Street, Suite 1200

Portland, OR 97258 

Sterling
Financial Corporation

111 North Wall Street

Spokane, WA 99201 

RE:
Investor Letter Agreement 

        Reference
is made to the Merger Agreement, dated as of the date hereof, between Sterling Financial Corporation ("Sterling") and Umpqua
Holdings Corporation ("Umpqua") (the "Merger Agreement"); capitalized terms have the meanings ascribed
to them in the Merger Agreement. Warburg Pincus Private Equity X, L.P., a Delaware limited partnership (together with Warburg Pincus X Partners, L.P., an affiliated Delaware limited
partnership, "Holder") is a party to an Investment Agreement with Sterling, dated May 25, 2010, as amended (the
"Investment Agreement"). 

        1.     Sterling
and Holder hereby agree that, effective upon the occurrence of the Effective Time, the Investment Agreement shall be amended as set forth on  Exhibit A. 

        2.     By
signing this letter agreement, Umpqua hereby (a) affirms that it shall, and shall cause its subsidiaries to, fully perform the provisions of the Investment
Agreement applicable to "the Company" from and after the Effective Time, as amended and modified by this agreement, (b) acknowledges and agrees that effective upon the occurrence of the
Effective Time, the rights and obligations of "the Company" shall be the rights and obligations of Umpqua as the surviving corporation, and each reference in the Investment Agreement (including the
Exhibits and Schedules thereto) to "the Company" or words of like import shall mean and be a reference to "Umpqua Holdings Corporation," and (c) reaffirms that the terms and provisions of the
Investment Agreement, as amended and modified by this agreement, shall remain in full force and effect from and after the Effective Time. Holder hereby consents to the consummation of the Merger in
accordance with the terms and conditions set forth in the Merger Agreement, solely for purposes of the Investment Agreement. 

        3.     Holder
has provided Umpqua with the statement regarding Holder supporting the Merger pursuant to the initial joint press release of Umpqua and Sterling announcing the
Merger, in form and substance attached hereto as Exhibit B, and hereby consents to the inclusion thereof in the initial press release announcing
the Merger. Holder agrees to vote all shares of Sterling Common Stock beneficially owned by it and entitled to vote at the Sterling Meeting in favor of approval and adoption of the Merger Agreement
and the transactions contemplated thereby (including the Merger) unless (i) the Sterling Board shall have effected a Change In Board Recommendation, (ii) the Sterling Meeting (including
any adjournments thereof) shall have concluded with the vote contemplated by Section 3.3(a) of the Merger Agreement having been taken, (iii) the Merger Agreement shall have been amended
or modified without Holder's written consent or (iv) the Termination Date or the Effective Time shall have occurred. 

        4.     Holder
agrees that, from and after the date hereof, Holder will not and will direct and use its reasonable efforts to cause the Holder's Representatives not to, directly
or indirectly, (a) solicit, initiate, knowingly encourage or knowingly facilitate (including by way of furnishing information), or take any other action designed to facilitate any inquiries or
proposal that constitutes, or is reasonably likely to lead to, any Acquisition Proposal or (b) participate in any negotiations regarding an Alternative Transaction or Acquisition Proposal;  provided
that nothing in this Agreement shall limit Holder or its Representatives from taking any actions Sterling or its Representatives are permitted
to take under Section 6.3 or 6.11 of the Merger Agreement (including, without limitation, those actions contemplated by the first proviso in Section 6.11(a) if 

applicable
to Sterling). The restrictions in this paragraph 4 shall terminate and be of no further force or effect if (i) the Sterling Board shall have effected a Change In Board
Recommendation, (ii) the Sterling Meeting (including any adjournments thereof) shall have concluded with the vote contemplated by Section 3.3(a) of the Merger Agreement having been
taken, (iii) the Merger Agreement shall have been amended or modified without Holder's written consent or (iv) the Termination Date or the Effective Time shall have occurred. 

        5.     Nothing
contained herein shall be construed to limit the ability of any Representative or affiliate of Holder that serves as a director or observer on the Board of
Directors of Sterling to discharge his or her fiduciary duties in such capacity. 

        6.     This
letter agreement shall automatically be void and of no force or effect in the event that the Merger Agreement is terminated in accordance with its terms, and in such
event Holder shall have no liability of any nature whatsoever hereunder, or in connection with the transactions contemplated hereby, except that Holder shall not be relieved or released from any
liabilities or damages arising out of its willful, knowing and material breach of any provision of this letter agreement prior to termination of the Merger Agreement;  provided that, upon termination of
the Merger Agreement under circumstances where the Termination Fee is payable to Umpqua and such Termination Fee is
paid in full, Umpqua shall be precluded from any remedy against Holder in connection with this letter agreement or the transactions contemplated hereby, at law or in equity or otherwise, and Umpqua
shall not seek to obtain any recovery, judgment, or damages of any kind, including consequential, indirect, or punitive damages, against Holder or its affiliates or any of their respective directors,
officers, employees, partners, managers, members, shareholders or affiliates or their respective representatives in connection with this letter agreement or the transactions contemplated hereby. 

        7.     From
and after the Effective Time, Holder shall have no further liabilities or obligations under Section 3 or Section 4 of this letter agreement. 

 

											
	 
	 	 Yours sincerely,
	

 
	
 	
 WARBURG PINCUS PRIVATE EQUITY X, L.P.
	 
	 	 By:
	 	 Warburg Pincus X L.P., its general partner

	 
	 	 	 	By:	 	Warburg Pincus X LLC, its general partner
	 
	 	 	 	 	 	By:	 	Warburg Pincus Partners LLC, its sole member
	 
	 	 	 	 	 	 	 	By:	 	Warburg Pincus & Co., its managing member
	 
	 	 	 	 /s/ DAVID COULTER

  Name:  David Coulter

Title:    Partner

 

   

   

[Signature Page to Investor Letter Agreement—Warburg]

 

											
	 
	 	 Yours sincerely,
	

 
	
 	
 WARBURG PINCUS X PARTNERS, L.P.
	 
	 	 By:
	 	 Warburg Pincus X L.P., its general partner

	 
	 	 	 	By:	 	Warburg Pincus X LLC, its general partner
	 
	 	 	 	 	 	By:	 	Warburg Pincus Partners LLC, its sole member
	 
	 	 	 	 	 	 	 	By:	 	Warburg Pincus & Co., its managing member
	 
	 	 	 	 /s/ DAVID COULTER

  Name:  David Coulter

Title:    Partner

 

   

   

[Signature Page to Investor Letter Agreement—Warburg]

 

							
	 Acknowledged and Agreed:	 	 
	

UMPQUA HOLDINGS CORPORATION	
 	

 
	
 By:	
 	
/s/ RAYMOND P. DAVIS

 	
 	

 
	 	 	Name:	 	Raymond P. Davis	 	 
	 	 	Title:	 	 Chief Executive Officer and President	 	 
	

STERLING FINANCIAL CORPORATION	
 	

 
	
 By:	
 	
/s/ PATRICK J. RUSNAK

 	
 	

 
	 	 	Name:	 	Patrick J. Rusnak	 	 
	 	 	Title:	 	 Chief Financial Officer	 	 

 

   

   

[Signature Page to Investor Letter Agreement—Warburg]

 

 
 

  Exhibit A
  Amendments to Investment Agreement    
    

        Contingent upon, and effective upon the occurrence of the Effective Time: 

        (a)   Sections 4.1,
4.2, 4.3, 4.4(d), 4.4(e), 4.4(f) and 4.5 of the Investment Agreement shall each be deleted in their entirety and each replaced with:
"[Reserved]" 

        (b)   Section 4.4(a)
of the Investment Agreement shall be amended and restated in its entirety as follows: 

        "The
Board of Directors of the Company shall cause the Board Representative to be elected or appointed, subject to satisfaction of all legal and governance requirements regarding service
as a director of the Company and to the approval of the Company's Nominating Committee (the "Nominating Committee") (such approval not to be
unreasonably withheld or delayed), to the Board of Directors of the Company at the Effective Time (as defined in the Merger Agreement) and thereafter as long as the Investor owns the Qualifying
Ownership Interest. "Board Representative" shall mean David Coulter or such successor as the Investor shall designate as provided herein.
"Qualifying Ownership Interest" shall mean 4.9% or more of the number of shares of Common Stock outstanding (counting as shares of Common Stock owned by
the Investor and outstanding, all shares of Common Stock into which the Warrant owned by the Investor is convertible, and excluding all Common Shares issued by the Company after the date hereof other
than as contemplated by the Merger Agreement). The Company shall be required to recommend to its stockholders the election of the Board Representative to the Board of Directors at all of the Company's
applicable annual meetings, subject to satisfaction of all legal and governance requirements regarding service as a director of the Company
and to the approval of the Nominating Committee (such approval not to be unreasonably withheld or delayed). If the Investor no longer has a Qualifying Ownership Interest, the Investor shall have no
further rights under Section 4.4(a) through 4.4(c) and, in each case, at the written request of the Board of Directors, shall use all reasonable best efforts to cause its Board Representative
to resign from the Board of Directors as promptly as possible thereafter. 

        The
Board Representative shall be entitled to the same compensation and same indemnification in connection with his role as a director as the other members of the Board of Directors and
be entitled to reimbursement for documented, reasonable out-of-pocket expenses incurred in attending meetings of the Board of Directors or any committee thereof, to the same extent as the other
members of the Board of Directors. The Company shall notify the Board Representative of all regular meetings and special meetings of the Board of Directors and of all regular and special meetings of
any committee of the Board of Directors of which the Board Representative is a member. The Company shall provide the Board Representative with copies of all notices, minutes, consents and other
material that it provides to all other members of the Board of Directors concurrently as such materials are provided to the other members." 

        (c)   For
purposes of Section 4.9(a)(1) of the Investment Agreement, Umpqua, as successor-in-interest to Sterling, may satisfy its obligation to keep a Shelf
Registration Statement (as defined in the Investment Agreement) "continuously effective" by either filing a new Shelf Registration Statement on the Closing Date covering the Registrable Securities (as
defined in the Investment Agreement) or including the Registrable Securities under an existing Shelf Registration Statement of Umpqua, effective as of the Closing Date. For the avoidance of doubt,
Umpqua shall thereafter keep such Shelf Registration Statement effective, pursuant to the terms of Section 4.9(a)(1) of the Investment Agreement, until the time as there are no Registrable
Securities outstanding. 

        (d)   [Reserved]

A-1

 

        (e)   Section 4.9(a)(2)
of the Investment Agreement shall be amended and restated in its entirety as follows: 

        (a)   "Any
registration pursuant to this Section 4.9(a) shall be effected by means of a shelf registration under the Securities Act (a "Shelf
Registration Statement") in accordance with the methods and distribution set forth in the Shelf Registration Statement and Rule 415. If the Investor intends to
distribute any Registrable Securities by means of an underwritten offering they shall promptly so advise the Company (a "Takedown Request") and the
Company shall give prompt written notice of such Takedown Request to THL (so long as it still holds Registrable Securities), include in such distribution
any Registrable Securities promptly requested to be included by THL following receipt of notice of the Takedown Request, and take all reasonable steps to facilitate such distribution, including the
actions required pursuant to Section 4.9(c). 

Each
Takedown Request shall specify the number of Registrable Securities proposed by the Investor or such other holder(s) to be included in such underwritten offering, the intended method of
distribution and the estimated gross proceeds of such underwritten offering, which may not be less than $15 million. The underwriters shall be selected jointly by (a) the holders of a
majority of the Registrable Securities participating in the distribution and (b) the holders of a majority of the Registrable Securities (as defined in the THL Investment Agreement) to be
distributed by THL. If the managing underwriters advise the Company that in their reasonable opinion the number of securities requested to be included in such offering exceeds the number which can be
sold without adversely affecting the marketability of such offering (including an adverse effect on the per share offering price), the Company shall include in such distribution only such number of
securities that in the reasonable opinion of such underwriters can be sold without adversely affecting the marketability of the offering (including an adverse effect on the per share offering price),
which securities shall be selected pro rata from (i) the Investor and (ii) THL on the basis of the aggregate number of such securities that have been requested to be so included, subject
to the terms of this Agreement." 

        (f)    Section 4.9(c)(8)
of the Investment Agreement shall be amended by replacing the reference to "Section 4.05(d)" with "Section 4.9(d)." 

        (g)   [Reserved]

        (h)   The
definition of "Registration Expenses" in Section 4.9(k)(5) of the Investment Agreement shall be amended by adding the following parenthetical after the words
"Selling Expenses": "(which shall be borne in any event by the Holder)". 

        (i)    Section 4.18(e)
of the Investment Agreement shall be deleted in its entirety and replaced with: "[Reserved]." 

        (j)    Section 4.19
of the Investment Agreement shall be deleted in its entirety and replaced with: "[Reserved]." 

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        (k)   Section 6.7(2)
of the Investment Agreement shall be amended and restated in its entirety as follows: 

Umpqua
Holdings Corporation 

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

Wachtell,
Lipton, Rosen & Katz

51 West 52nd Street

New York, NY 10019

Attention:    Edward D. Herlihy

                      Matthew M. Guest

Facsimile:    (212) 403-2000 

        (l)    Section 6.8(b)
of the Investment Agreement shall be amended and restated in its entirety as follows: 

        "(b) except
for an assignment to a third party contemplated by Section 4.18(a) or 4.9 (subject to compliance with such respective Section), this Agreement shall not
be assignable by operation of law or otherwise (any attempted assignment in contravention hereof being null and void), except that the Investor shall be permitted to assign any or all of its rights or
obligations hereunder to any Affiliate entity, but only if such Affiliate agrees in writing to undertake such assigned obligations of the assigning Investor hereunder for the benefit of the Company,
with a copy thereof to be furnished to the Company (any such transferee shall be included in the term "Investor"); provided, further, that no such assignment shall relieve the Investor of any of its
obligations under this Agreement, and". 

        (m)  Pursuant
to Section 6.8(b) of the Investment Agreement, Warburg Pincus X Partners, L.P., an Affiliate of the Investor is deemed to be an express
beneficiary of all of the Investor's rights under the Investment Agreement, and for purposes of Section 4.9 of the Investment Agreement, Warburg Pincus X Partners, L.P. shall be included
in the term "Investor" and all of the related definitions thereunder shall be deemed to include reference to Warburg Pincus X Partners, L.P. (mutatis
mutandis). 

        Except
as set forth above, the terms and provisions of the Investment Agreement shall remain in full force and effect. At or after the Effective Time, each reference in the Investment
Agreement (including the Exhibits and Schedules thereto) to "this Agreement," "hereunder," "hereof," "herein" or words of like import referring to the Investment Agreement shall mean and be a
reference to the Investment Agreement as amended by this letter agreement. 

A-3

 

 
 

  Exhibit B  
    

 

			
	

 	 	

 

 

 

			
	FOR IMMEDIATE RELEASE

Media Contacts

Eve Callahan

SVP, Corporate Communications

503.727.4188
 evecallahan@umpquabank.com	 	

Cara Coon

VP, Communications and Public Affairs Director

509.626.5348
 cara.coon@bankwithsterling.com
	

  Investor Contacts

Ron Farnsworth

EVP/Chief Financial Officer

503.727.4108
 ronfarnsworth@umpquabank.com	

 	

 

Patrick J. Rusnak

EVP/Chief Financial Officer

509.227.0961
 pat.rusnak@bankwithsterling.com

 

  
 

  STERLING FINANCIAL CORPORATION TO MERGE WITH
  UMPQUA HOLDINGS CORPORATION    
    

-Will create West Coast's largest community bank with 394 locations in five states

-Sterling shareholders to receive a fixed exchange ratio combination of 1.671 shares of Umpqua stock

and $2.18 in cash per Sterling share

        Portland, Ore. and Spokane, Wash.—September 11, 2013—Umpqua Holdings Corporation (UMPQ) and Sterling
Financial Corporation (STSA) announced today that they
have entered into a definitive agreement pursuant to which Sterling will merge with and into Umpqua. The transaction will have a total value of approximately $2.0 billion. 

        The
merger will result in the West Coast's largest community bank with expanded geographic reach. The combined organization will have approximately $22 billion in assets,
$15 billion in loans and $16 billion in deposits, with 5,000 associates and 394 stores across five states—Oregon, Washington, Idaho, California and Nevada. Umpqua and
Sterling have also agreed to establish and fund a $10 million community foundation, underscoring their mutual commitment to serving their communities. 

        Upon
completion of the merger, the company will operate under the Umpqua Bank name and brand. It will continue to deliver the high-touch level of service that Umpqua and Sterling
customers expect, with an expanded branch and ATM network and a broad range of products and expertise in retail, small business, private and corporate banking; asset and wealth management; and
securities brokerage. 

        Umpqua
Holdings Corporation will continue to be led by Ray Davis as president and CEO. Sterling president and CEO Greg Seibly will join Umpqua Bank as co-president, with Umpqua Bank
co-president Cort O'Haver serving in the same capacity. 

        "Together,
Umpqua and Sterling will create something unique in the financial services industry, an organization that offers the products and expertise of a large bank but delivers them
with the personal service and commitment of a community bank," said Ray Davis. "With our size, shared cultures and financial strength, our combined organization will be uniquely positioned to deliver
value for our associates, customers, communities and shareholders. We look forward to starting the process of bringing our companies together." 

B-1

 

        "Sterling
has emerged from its 2010 recapitalization a stronger, more profitable bank," said Greg Seibly, president and CEO of Sterling Financial Corporation. "Over the past ten quarters
we have consistently demonstrated a trend of improved profitability because of our employees' unwavering commitment to their customers and their communities. We admire Umpqua's shared commitment to
community banking and look forward to working with them to create one of the strongest, most innovative community banks in the country." 

        The
boards of directors of both companies have unanimously approved the transaction. Upon completion, the combined Company's board will have 13 directors, comprised of nine
representatives from Umpqua and four representatives from Sterling. Peggy Fowler will continue as board chair. 

        Funds
affiliated with Thomas H. Lee Partners, L.P. ("THL") and Warburg Pincus ("WP"), the two largest shareholders of Sterling, each owning approximately 20.8% of
Sterling's outstanding common stock, have agreed to vote in favor of and fully support the transaction, and THL and WP have the right to designate a representative of each firm to serve on the board
of directors of the combined company following closing. 

        David
Coulter, WP's Vice Chairman, said, "We have been very pleased with what Sterling has achieved since we made our investment in 2010, and are delighted with the decision to combine
with Umpqua. Umpqua has a long record of achievement and creating shareholder value, and together with Sterling will create what we believe will be the leading community bank in the West." 

        Josh
Bresler, Managing Director at THL, said, "The great potential that initially attracted us to making a significant investment in Sterling three years ago has been realized through
the successful efforts of Greg Seibly and the entire Sterling team, and the merger with Umpqua is the logical next step for Sterling. The merger pairs two companies with exceptional management teams
and franchises, and we believe it will create substantial value for us and all of the shareholders of both companies." 

        Under
the terms of the agreement, Sterling shareholders will receive 1.671 shares of Umpqua common stock and $2.18 cash for each share of Sterling common stock. The total value of the
Sterling merger consideration, based on the closing price of Umpqua shares on September 11, 2013 of $16.96, is $30.52. 

        The
transaction is intended to qualify as a tax-free reorganization for U.S. federal income tax purposes and Sterling shareholders are not expected to recognize any taxable gain or loss
in connection with the share exchange to the extent of the stock consideration received. Giving effect to the transaction, existing shareholders of Umpqua are expected to own approximately 51% of the
outstanding shares of the combined company at closing, and Sterling shareholders are expected to own approximately 49%. 

        Umpqua
expects the acquisition to be 12% accretive to 2015 operating earnings per share with 100% of synergies phased in. Tangible book value per common share is expected to be diluted
by 4.6% at closing, with a two-and-one-half year earnback on a proforma basis. 

        Completion
is expected during the first half of 2014, and is subject to approval by each company's shareholders, regulatory approvals and other customary closing conditions. 

        J.P.
Morgan Securities LLC served as financial advisor and provided a fairness opinion to Umpqua's board, and Wachtell, Lipton, Rosen & Katz served as legal counsel to
Umpqua. Sandler O'Neill + Partners, L.P. served as financial advisor and provided a fairness opinion to Sterling's board, and Davis Polk & Wardwell LLP served as
legal counsel to Sterling. 

 Conference call  

        Umpqua and Sterling will host an investor conference call to discuss the merger tomorrow, September 12, 2013, at
9:00 a.m. PDT. The conference call can be accessed by dialing 888-299-7207, passcode 9113028. A replay will be available at 888-203-1112, passcode 9113028. In connection with the 

B-2

 

announcement
of the transaction, an investor presentation will be filed with the SEC and will be available on Umpqua's website at  www.umpquaholdingscorp.com and on Sterling's website at www.sterlingfinancialcorporation.com. 

 About Umpqua Holdings Corporation  

        Umpqua Holdings Corporation (NASDAQ: UMPQ) is the parent company of Umpqua Bank, an
Oregon-based community bank recognized for its entrepreneurial approach, innovative use of technology, and distinctive banking solutions. Umpqua Bank has locations between San Francisco, California,
and Seattle, Washington, along the Oregon and Northern California Coast, Central Oregon and Northern Nevada. Umpqua Holdings also owns a retail brokerage subsidiary, Umpqua Investments, Inc.,
which has locations in Umpqua Bank stores and in dedicated offices in Oregon. Umpqua Private Bank serves high net worth individuals and non-profits, providing trust and investment services. Sterling
Financial Corporation to Merge With Umpqua Holdings Corporation Umpqua Holdings Corporation is headquartered in Portland, Oregon. For more information, visit  www.umpquaholdingscorp.com. 

 About Sterling Financial Corporation  

        Sterling Financial Corporation (NASDAQ:STSA) of Spokane, Washington, is the bank
holding company for Sterling Savings Bank, a Washington state chartered and federally insured commercial bank. Sterling Savings Bank does business
as Sterling Bank in Washington, Oregon and Idaho and as Sonoma Bank and Borrego Springs Bank in
California. The bank offers banking products and services, mortgage lending, and trust and investment products to individuals, small businesses, corporations and other commercial organizations. As of
June 30, 2013, Sterling Financial Corporation had assets of $9.94 billion and operated depository branches in Washington, Oregon, Idaho and California. Visit Sterling Financial
Corporation's website at www.sterlingfinancialcorporation.com. 

 Important Information for Investors and Shareholders  

        This communication does not constitute an offer to sell or the solicitation of an offer to buy any securities or a solicitation of any
vote or approval, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities
laws of such jurisdiction. Umpqua Holdings Corporation ("Umpqua") will file with the Securities and Exchange Commission ("SEC") a registration statement on Form S-4 containing a joint proxy
statement/prospectus of Sterling Financial Corporation ("Sterling") and Umpqua, and Sterling and Umpqua will each file other documents with respect to the proposed merger. A definitive joint proxy
statement/prospectus will be mailed to shareholders of Sterling and Umpqua. Investors and security holders of Sterling and Umpqua are urged to read the joint proxy statement/prospectus and other
documents that will be filed with the SEC carefully and in their entirety when they become available because they will contain important information. Investors and security holders will be able to
obtain free copies of the registration statement and the joint proxy statement/prospectus (when available) and other documents filed with the SEC by Umpqua or Sterling through the website maintained
by the SEC at http://www.sec.gov. Copies of the documents filed with the SEC by Umpqua will be available free of charge on Umpqua's internet website at  www.umpquaholdingscorp.com or by contacting Umpqua's Investor Relations Department at 503.268.6675. Copies of the documents filed with the SEC by
Sterling will be available free of charge on Sterling's internet website at www.sterlingfinancialcorporation.com or by contacting Sterling's Investor
Relations Department at 509.358.8097. 

        Umpqua,
Sterling, their respective directors and executive officers and other members of management and employees may be considered participants in the solicitation of proxies in
connection with the proposed transaction. Information about the directors and executive officers of Umpqua is set forth in its Annual Report on Form 10-K for the year ended December 31,
2012, which was filed with 

B-3

 

the
SEC on February 15, 2013, its Quarterly Reports on Form 10-Q for the quarterly periods ended March 31, 2013 and June 30, 2013, which were filed with the SEC on
May 2, 2013 and August 6, 2013, respectively, its proxy statement for its 2013 annual meeting of stockholders, which was filed with the SEC on February 25, 2013, and its Current
Reports on Form 8-K, which were filed with the SEC on January 14, 2013, April 11, 2013 and April 22, 2013, respectively. Information about the directors and executive
officers of Sterling is set forth in its Annual Report on Form 10-K for the year ended December 31, 2012, which was filed with the SEC on February 27, 2013, its proxy statement
for its 2013 annual meeting of stockholders, which was filed with the SEC on March 15, 2013, and its Current Reports on Form 8-K or 8-K/A, which were filed with the SEC on
January 28, 2013, March 4, 2013, May 2, 2013 (Item 5.07), May 10, 2013, June 20, 2013 and August 9, 2013, respectively. Other information regarding the
participants in the proxy solicitations and a description of their direct and indirect interests, by security holdings or otherwise, will be contained in the joint proxy statement/prospectus and other
relevant materials to be filed with the SEC when they become available. 

 Cautionary Statement Regarding Forward-Looking Statements  

        This document contains certain "forward-looking statements" within the meaning of the safe harbor provisions of the United States
Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by the use of words such as "anticipate", "may", "can", "believe", "expect", "project", "intend",
"likely", "plan", "seek", "should", "would", "estimate" and similar expressions and any other statements that predict or indicate future events or trends or that are not statements of historical
facts. These forward-looking statements are subject to numerous risks and uncertainties. Actual results may differ materially from the results discussed in these forward-looking statements because
such statements are inherently subject to significant assumptions, risks and uncertainties, many of which are difficult to predict and are generally beyond Sterling's and Umpqua's control. These risks
and uncertainties include, but are not limited to, the following: failure to obtain the approval of shareholders of Sterling or Umpqua in connection with the merger; the timing to consummate the
proposed merger; the risk that a condition to closing of the proposed merger may not be satisfied; the risk that a regulatory approval that may be required for the proposed merger is not obtained or
is obtained subject to conditions that are not anticipated; the parties' ability to achieve the synergies and value creation contemplated by the proposed merger; the parties' ability to promptly and
effectively integrate the businesses of Sterling and Umpqua; the diversion of management time on issues related to the merger; the failure to consummate or delay in consummating the merger for other
reasons; changes in laws or regulations; and changes in general economic conditions. Sterling and Umpqua undertake no obligation (and expressly disclaim any such obligation) to publicly update or
revise any forward-looking statement, whether as a result of new information, future events or otherwise. For additional information concerning factors that could cause actual conditions, events or
results to materially differ from those described in the forward-looking statements, please refer to the factors set forth under the headings "Risk Factors" and "Management's Discussion and Analysis
of Financial Condition and Results of Operations" in Umpqua's and Sterling's most recent Form 10-K and 10-Q reports and to Sterling's and Umpqua's most recent Form 8-K reports, which are
available online at www.sec.gov. No assurances can be given that any of the events anticipated by the forward-looking
statements will transpire or occur, or if any of them do so, what impact they will have on the results of operations or financial condition of Umpqua or Sterling. 

#    #    #

B-4

QuickLinks

Exhibit 10.1

Exhibit A Amendments to Investment Agreement

Exhibit B

STERLING FINANCIAL CORPORATION TO MERGE WITH UMPQUA HOLDINGS CORPORATION

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