Document:

Exhibit 10.1

 Exhibit 10.1 

PURCHASE AND ASSUMPTION AGREEMENT 

THIS PURCHASE AND ASSUMPTION AGREEMENT (this “Agreement”), dated as of December 17, 2015 between ATHENS
FEDERAL COMMUNITY BANK, NATIONAL ASSOCIATION, a national bank (“Purchaser”) and ATLANTIC CAPITAL BANK, N.A., a national bank (“Seller”). 

WHEREAS, Purchaser desires to assume and purchase from Seller, and Seller desires to assign and sell to Purchaser, certain of
Seller’s liabilities and assets, currently held and allocated by Seller to its branch offices located at 835 Congress Parkway South, Athens, TN; 705 East Broadway, Lenoir City, TN; 215 Warren Street, Madisonville, TN; and 761 New Highway 68,
Sweetwater, TN (collectively, the “Branches” and individually, a “Branch”); 
 NOW,
THEREFORE, in consideration of their mutual promises and obligations and intending to be legally bound hereby, the parties agree as follows: 

ARTICLE 1 
 CERTAIN
DEFINITIONS 
 1.1 Certain Definitions. As used in this Agreement, the terms below shall have the meanings set forth. 

“Accrued Expenses” means the accrued and unpaid expenses appearing as a Liability on the Preliminary Closing Statement
or the Final Closing Statement. 
 “Accrued Interest” means with respect to (i) Deposits at any date means
interest which is accrued on such Deposits to such date and not yet posted to such deposit accounts or paid to the depositor and (ii) Purchased Loans at any date means interest which is accrued on such loan to such date and not yet paid. 

“ACH” has the meaning set forth in Section 6.14(e). 

“Adjustment Date” has the meaning set forth in Section 3.2(e). 

“Affiliate” of a person means any person directly or indirectly controlling or controlled by or under direct or
indirect common control with such person. 
 “Agreement” means this Purchase and Assumption Agreement, including all
schedules, exhibits and addenda as modified, amended or extended from time to time. 
 “Allocation” has the meaning
set forth in Section 2.4. 
 “Assets” means the (i) Purchased Loans; (ii) Assumed Furniture
and Fixtures; (iii) Improvements; (iv) Cash on Hand; (v) Prepaid Expenses; (vi) Real Property; (vii) Leased Real Property; (viii) Delivery Records; (ix) Seller’s benefits and rights under Safe Deposit
Agreements; (x) Seller’s benefits and rights under Assumed Contracts; and (xi) any fee or expense adjustment required in accordance with Section 2.3; provided, however, Assets do not include any deferred Tax assets
or refunds for Taxes relating to the period prior to the Closing Date or, unless they appear as an asset in respect of the Branches on the Preliminary Closing Statement or the Final Closing Statement, prepaid Taxes. The allocation provisions of
Section 7.1 shall apply for the purposes of determining to what extent any Taxes, deferred Tax assets or Tax refunds relate to the period prior to the Closing Date; provided, further, Assets do not include any credit card
receivables or accounts, any of faceplates of Seller’s signs, and any use of any sign, trade name, trademark, service mark, or other intellectual property, if any, of Seller. 

 “Assumed Contracts” means the contracts (including the Real Property
Leases) listed on Schedule 1.1 that Purchaser will assume as of the Closing. 
 “Assumed Deposits” means all
Deposits existing on the Closing Date other than Excluded Deposits. 
 “Assumed Furniture and Fixtures” means all
Furniture and Fixtures that Purchaser will purchase as of the Closing pursuant to Section 6.4, except those items listed as excluded Furniture and Fixtures on Schedule 1.2. 

“ATM” means any automated teller machine owned or leased by Seller and located at the Branches. 

“Bank Merger Act” means Section 18(c) of the Federal Deposit Insurance Act, as amended. 

“Benefit Plans” has the meaning set forth in Section 7.4(i). 

“Branch” or “Branches” has the meaning set forth in the Recitals. 

“Business Day” means a day on which Seller is open for business in the State of Tennessee which is not a Saturday,
Sunday or legal holiday. 
 “Cash on Hand” means, as of any date, all petty cash, vault cash, teller cash and
prepaid postage maintained at the Branches, including at ATMs. 
 “Closing” and “Closing
Date” means the closing of the sale, purchase and assumption provided for herein to be held at such time and date as provided for in Article 3 hereof. 

“Closing Time” means 5:30 p.m. Central Time on the Closing Date. 

“Code” means the Internal Revenue Code of 1986, as amended. 

“Confidential Information” has the meaning set forth in Section 6.2(b). 

“Cure Period” has the meaning set forth in Section 2.6(b). 

“Defective Loan” has the meaning set forth in Section 2.6(a). 

“Delivery Records” means all Records other than records for closed accounts. 

“Deposit Premium” has the meaning set forth in Section 2.1(b)(i). 

“Deposits” means, as of any date, all deposit liabilities of Seller booked, maintained or primarily serviced at the
Branches, which constitute “deposits” for purposes of the Federal Deposit Insurance Act, as amended, including all Overdraft Accounts, uncollected items included in depositors’ balances, Accrued Interest and IRAs assigned to Purchaser
pursuant to Section 2.7, together with Seller’s rights and responsibilities under any customer agreement evidencing or relating thereto. A list of the Deposits as of the date of this Agreement is attached hereto as Schedule
1.3. This list will be updated as of the Closing Date. 

  
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 “Dispute Resolver” means an independent accounting firm mutually
acceptable to Seller and Purchaser. All determinations under this Agreement made by a Dispute Resolver shall be binding upon Purchaser and Seller. 

“Due Diligence Period” has the meaning set forth in Section 6.16(b). 

“Encumbrances” means all mortgages, claims, charges, liens, encumbrances, easements, limitations, restrictions,
commitments, security interests, pledges or other similar charges or liabilities, whether accrued, absolute, contingent or otherwise, except for statutory liens for ad valorem tax payments securing payments not yet due. 

“Enforceability Exceptions” has the meaning set forth in Section 4.1. 

“Environmental Laws” means all federal, state, and local statutes, regulations, ordinances, orders, and decrees having
the force of law relating to or imposing liability, responsibility, or standards of conduct applicable to environmental, health, or safety conditions and/or releases of Hazardous Materials affecting the Real Property. 

“Environmental Survey” has the meaning set forth in Section 6.16(b). 

“ERISA” has the meaning set forth in Section 4.8. 

“Excluded Deposits” means all of the following Deposits existing on the Closing Date: (i) Deposits listed on
Schedule 1.4; (ii) Deposits excluded pursuant to Section 2.7(b) or Section 6.10 or excluded by mutual written agreement of Seller and Purchaser; (iii) Deposits securing loans or other extensions of credit by
Seller that are not Purchased Loans; (iv) Deposits held in accounts for which Seller acts as fiduciary (other than IRAs assigned to Purchaser under Section 2.7); (v) Deposits subject to legal process as shown on Records;
(vi) Deposits which are treated as abandoned property under applicable abandoned property laws; (vii) Deposits held in any IRA where the account holder has notified Seller or Purchaser of his, her or its objection to Purchaser acting as
custodian of such IRA; (viii) Deposits held in the name of Seller or any of its affiliated entities as depositor; (ix) Deposits represented by official checks, travelers checks, money orders, or certified checks of Seller; and
(x) accounts designated as “closed” on the books and records of Seller. 
 “FDIC” means the Federal
Deposit Insurance Corporation. 
 “Federal Funds Rate” on any day means the per annum rate of interest (rounded
upward to the nearest 1/100 of 1%) which is the weighted average of the rates on overnight federal funds transactions arranged on such day or, if such day is not a banking day, the previous banking day, by federal funds brokers computed and released
by the Federal Reserve Bank of Atlanta (or any successor). 
 “Final Closing Statement” means the statement, as of
the Adjustment Date, delivered by Seller to Purchaser in accordance with Section 3.2(d). 
 “Final Settlement
Payment” has the meaning set forth in Section 3.2(d). 
 “Furniture and Fixtures” means all
furniture, fixtures and equipment, including ATMs, trade fixtures, security equipment, safe deposit boxes, currency counters, vaults and supplies (excluding any items consumed or disposed of, but including new items acquired or obtained, in the
ordinary course of business of the Branches through the Closing Date) that are located at the Branches, but excluding faceplates of signage or other advertising or paper stock, forms, or supplies bearing Seller’s corporate logos, trade names,
or trademarks, telephone systems, and computers, computer peripherals and computer software. 

  
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 “GAAP” means United States generally accepted accounting principles as in
effect from time to time. 
 “Hazardous Material” means any materials, substances, wastes, or mixtures presently
listed, defined, designated, or classified as hazardous, toxic, or dangerous, or otherwise regulated, under any Environmental Law, whether by type or quantity, including, but not limited to, any pesticides, fungal or other biological organisms,
pollutants, contaminants, toxic chemicals, oil or other petroleum products or byproducts, asbestos or materials containing asbestos, polychlorinated biphenyls, urea formaldehyde foam insulation, lead or lead-containing paint, radon, and radioactive
material. 
 “Improvements” means all improvements to the Real Property and Leased Real Property in respect of the
Branches which shall have been purchased, installed or constructed and used in connection with the operation or maintenance of such Branches. 

“IRA” means an “individual retirement account” or similar Deposit account established in accordance with the
provisions of Section 408 of the Code for which Seller acts as custodian or trustee but as to which Seller may not exercise investment discretion. 

“IRS” means the Internal Revenue Service. 

“Law” means any law, regulation, rule or order applicable to a person or its assets, liabilities or business,
including those promulgated, interpreted or enforced by any regulatory authority. 
 “Leased Real Property” means
the real property leased by Seller, as identified on Schedule 1.5, and the buildings thereon, including any Improvements thereon. 

“Liabilities” means the (i) Assumed Deposits and all terms and agreements relating to the Assumed Deposits;
(ii) Seller’s obligations with respect to all Purchased Loans and Assumed Contracts; (iii) Seller’s obligations under the Safe Deposit Agreements, including any prepaid rent thereunder; (iv) all other liabilities of Seller
with respect to the operations of the Branches, including accounts payable and Accrued Expenses, recorded as liabilities on the books of the Branches as of the Closing Date; (v) any fee or expense adjustment required in accordance with
Section 2.3; and (vi) liabilities that arise from the operation of the Branches after the Closing Date; provided, however, that Liabilities shall not include any Liability for Taxes for any period prior to the Closing
Date nor any other Liability of Seller not specifically assumed hereunder. The allocation provisions of Section 7.1 shall apply for purposes of determining to what extent a Liability for Taxes is with respect to a period prior to the
Closing Date. 
 “Loan Documents” means all material Records with respect to Purchased Loans, including, without
limitation, applications, notes, lost note affidavits (which Seller shall provide for any missing Purchased Loan note), security agreements, deeds of trust, mortgages, assignments of leases, loan agreements, financing statements, escrow account
agreements, guarantees, sureties and insurance policies (including title insurance policies), flood hazard certifications, and all modifications, waivers and consents relating to any of the foregoing. Loan Documents also includes all underwriting
files, financial statements, collateral files and documentation. 
 “Loan Value” means, with respect to a Purchased
Loan and as of a date, the unpaid principal balance of any such Purchased Loan plus Accrued Interest thereon, net of the interest in such Loan of any participant, as of such date, plus any accumulated but unpaid late charges as of such date. 

  
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 “Losses” means losses, liabilities, damages (including forgiveness or
cancellation of obligations), expenses, costs, legal fees and disbursements, collectively. 
 “Material Adverse
Effect” means, with respect to Seller or Purchaser, as applicable, any change, event, development, or circumstance which, individually or in the aggregate, (i) has, or is reasonably likely to have, a material adverse effect on the
business, operations, or financial condition of the Branches; or (ii) prevents or materially impairs, or would be reasonably likely to prevent or materially impair, the ability of Seller to timely consummate the transactions contemplated hereby
or to perform its agreements or covenants hereunder; provided that, for purposes of clauses (i) and (ii), Material Adverse Effect shall specifically exclude any adverse effect attributable to or resulting from (1) any change in banking
Laws of general applicability; (2) any change in GAAP or regulatory accounting principles applicable to financial institutions generally; (3) any action or omission of Seller taken with the express prior written consent of Purchaser;
(4) any action or omission of Purchaser taken with the express prior written consent of Seller; (5) general changes in global or national economic, monetary, market or financial conditions affecting financial institutions, including
changes in prevailing interest rates, inflation, credit markets or capital market conditions, except, in all cases, to the extent such changes disproportionately affect Seller; (6) changes in global or national political conditions, including
the outbreak or escalation of acts of terrorism; or (7) the public disclosure of this Agreement or the transactions contemplated hereby. 

“Material Defect” has the meaning set forth in Section 6.16(c). 

“Notice” has the meaning set forth in Section 2.6(a). 

“OCC” means the Office of the Comptroller of the Currency. 

“Overdraft Account” means a Deposit account that is overdrawn as of the Closing Date on account of checks, drafts or
other items that have been presented against such account for payment against insufficient funds and that, under applicable rules of the Federal Reserve Bank of Atlanta or other check collection rules or procedures, cannot be returned and charged
back as a matter of right to the presenting or collecting bank. 
 “Preliminary Closing Statement” means the
statement reflecting the Assets and Liabilities as of the end of the third (3rd) Business Day prior to the Closing Date, which statement shall be prepared by Seller, in consultation with Purchaser, substantially in the format of Schedule
1.6. 
 “Prepaid Expenses” means all operating expenses and fees accrued or prepaid prior to the Closing Date
relating to the Branches, including, without limitation and as applicable, rents, utility payments, and FDIC assessments, but not including those related to Taxes, that appear as an asset in respect of the Branches on the Preliminary Closing
Statement or the Final Closing Statement, as the case may be, that (i) have been recorded in accordance with GAAP; (ii) are not intercompany or interoffice accounts; and (iii) provide future benefit to the business conducted at the
Branches. 
 “Property Examination” has the meaning set forth in Section 6.16(b). 

“Purchase Price” has the meaning set forth in Section 2.1(b). 

“Purchased Loans” means those certain loans listed on Schedule 1.7, together with all Loan Documents and
Records pertaining to such loans. This list will be updated as of the Closing Date. 

  
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 “Purchaser” has the meaning set forth in the Recitals. 

“Purchaser Benefit Plan” has the meaning set forth in Section 7.4(c). 

“Purchaser ESOP” has the meaning set forth in Section 7.4(b). 

“Purchase Welfare Plan” has the meaning set forth in Section 7.4(f). 

“Real Property” means the real property owned by Seller and identified by the street addresses of the Branches and the
buildings thereon, including any Improvements thereon and all fixtures not included in the property described in the definition of Furniture and Fixtures. 

“Real Property Leases” means the real property leases with respect to the Leased Real Property identified on
Schedule 1.5. 
 “Records” means all records and original documents in Seller’s possession (including
records maintained electronically) which pertain to and are utilized by Seller to administer, reflect, monitor, evidence or record information respecting the business or conduct of the Branches (including transaction tickets and stop payment orders
through the Closing Date and all records for closed accounts located in the Branches) and all such records and original documents with respect to the Assets and Liabilities. 

“Regulatory Approvals” means all approvals, permits, authorizations, waivers or consents of governmental or regulatory
agencies or authorities necessary or appropriate to permit consummation of the transactions contemplated herein and includes, without limitation, the following: (i) approval of the FDIC under the Bank Merger Act; (ii) approvals of the OCC
under applicable Law; and (iii) expiration of the waiting period provided for in the Bank Merger Act without commencement of any action challenging the transactions contemplated hereunder by the United States Department of Justice or any other
person. 
 “Repurchase Price” has the meaning set forth in Section 2.6(a). 

“Restricted Period” has the meaning set forth in Section 6.15(a). 

“Safe Deposit Agreements” means any agreements, including rental agreements, related to the safe deposit boxes, if
any, located in the Branches. 
 “Seller” has the meaning set forth in the Recitals. 

“Settlement Payment” means a payment made pursuant to Section 3.2(c). 

“Tax Returns” means all returns or other reports required to be filed with respect to any Taxes, including information
returns. 
 “Tax” or “Taxes” refers to all federal, state, local, or foreign income, gross
receipts, windfall profits, severance, property, production, sales, use, excise, transfer, license, franchise, employment, withholding or similar taxes or amounts required to be withheld and paid over to any government in respect of any tax or
governmental fee or charge, including any interest, penalties, or additions to tax on the foregoing. 
 “Transferred
Employee” has the meaning set forth in Section 7.4(b). 

  
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 “Transition Services Agreement” means an agreement between
Purchaser and Seller that defines the processes, procedures and services that Seller, its subsidiaries or third party servicers, will provide to Purchaser as contemplated therein. 

1.2 Use and Application of Terms. In using and applying the various terms, provisions and conditions in this Agreement, the following
shall apply: (1) the terms “hereby”, “hereof”, “herein”, “hereunder”, and any similar words, refer to this Agreement; (2) words in the masculine gender mean and include correlative words of the
feminine and neuter genders and words importing the singular numbered meaning include the plural number, and vice versa; (3) words importing persons include corporations, associations, general partnerships, limited partnerships, limited
liability partnerships, limited liability limited partnerships, limited liability companies, trusts, business trusts, corporations and other legal organizations, including public and quasi-public bodies, as well as individuals; (4) the use of
the terms “including” or “included in”, or the use of examples generally, are not intended to be limiting; and (5) this Agreement shall not be applied, interpreted and construed more strictly against a person because that
person or that person’s attorney drafted this Agreement. 
 ARTICLE 2 

THE TRANSACTIONS 
 2.1
Transfer and Consideration. 
 (a) Subject to the terms and conditions set forth in this Agreement, at the Closing Time, Purchaser
shall (i) purchase the Assets and (ii) assume the Liabilities, and Seller shall sell, assign, transfer, convey and deliver to Purchaser, free and clear of all Encumbrances, all of Seller’s right, title and interest in and to the
Assets and the Liabilities. 
 (b) The purchase price to be paid by Purchaser shall be an amount (the “Purchase
Price”) computed as follows: 
 (i) An amount equal to 3.50% of the average daily balance (excluding Accrued
Interest) of Assumed Deposits for the period commencing ten (10) calendar days prior to and inclusive of the day prior to the Closing Date and ending on the day prior to the Closing Date (the “Deposit Premium”); plus

 (ii) An amount equal to 100.00% of the Loan Value of the Purchased Loans; plus 

(iii) The amount of Cash on Hand as of the Closing Date; plus 

(iv) The amounts set forth on Schedule 2.1 for the Real Property, Improvements and other Assets (other than the
Purchased Loans and the Cash on Hand). 
 2.2 Assumption of Obligations. Purchaser shall assume and thereafter fully and timely
discharge the duties and obligations of Seller relating to all periods from and after the Closing Time with respect to the Assumed Deposits, Assumed Contracts and other Liabilities as may arise under applicable Law, rules of automated clearing
houses and other payment systems which relate thereto, and in accordance with the terms of account agreements or other agreements with depositors applicable to such accounts as such terms and agreements are in effect on the Closing Time. 

2.3 Adjustment for Prepaid Expenses. All Prepaid Expenses relating to the Branches, transferred at Closing, shall be prorated between
the parties. To the extent that Seller has Prepaid Expenses that are expenses allocable to Purchaser pursuant to this Section 2.3, such expenses shall appear 

  
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as an Asset on the Preliminary Closing Statement and the Final Closing Statement. To the extent that Prepaid Expenses have been accrued and not paid by Seller or prepaid by customers prior to the
Closing Date, they shall appear as a Liability on the Preliminary Closing Statement and the Final Closing Statement. 
 2.4 Allocation of
Consideration. Purchaser and Seller agree that the consideration payable hereunder at the Closing shall be allocated among the Assets, tangible and intangible, on the basis of an allocation (the “Allocation”) to be
reasonably determined by Purchaser and Seller in accordance with applicable regulations and the Code. Purchaser and Seller agree (i) to timely file a mutually acceptable appropriate IRS form in accordance with the Allocation and (ii) that
the Allocation shall be binding on Purchaser and Seller for all tax reporting purposes, except that either party may change any such report in the event of a dispute with any taxing authority or take any other step to settle or resolve such a
dispute. 
 2.5 Sale and Transfer of Servicing and Escrows. 

(a) All rights, obligations, liabilities and responsibilities with respect to the servicing of the Purchased Loans after the Closing Time will
be assumed by Purchaser. Seller shall be discharged and indemnified by Purchaser from all liability with respect to servicing of the Purchased Loans after the Closing Time, and Purchaser shall be indemnified by Seller from all liability with respect
to servicing the Purchased Loans prior to the Closing Time; provided, however, for a reasonable period of time after the Closing Time, the parties shall cooperate fully with each other in connection with any acts or actions required to
be taken by either party with respect to such Purchased Loans and work together to ensure compliance by both parties with all applicable requirements of each party with respect to such Purchased Loans. 

(b) Purchaser shall assume, and agrees to undertake and discharge, any and all obligations of the holder and servicer of any Purchased Loans
that are mortgage loans, if any, after the Closing Time as such obligations may relate to the escrow, maintenance of escrow and payments from escrow of moneys paid by or on account of the applicable mortgagor. On or before the fifth
(5th) Business Day after the Closing Date, Seller shall remit by wire transfer of immediately available funds to Purchaser any and all funds held in escrow that were collected and received pursuant to a mortgage Purchased Loan for the payment
of taxes, assessments, hazard insurance premiums, primary mortgage insurance policy premiums, if applicable, or comparable items prior to the Closing Time plus any Accrued Interest. 

2.6 Repurchase of Defective Purchased Loans. 

(a) For a period of three (3) months following the Closing Date, Seller shall be obligated to repurchase for an amount equal to the Loan
Value of the Purchased Loan as of the end of the Cure Period (the “Repurchase Price”) any Purchased Loan for which any representation or warranty made by Seller in Section 4.15 of this Agreement has been breached
in any material respect (a “Defective Loan”). Upon discovery by Purchaser or Seller of a Defective Loan, Purchaser or Seller, as applicable, shall provide prompt written notice of such discovery to the other party (the
“Notice”). 
 (b) Seller shall have the right and option to cure a Defective Loan, which is reasonably curable,
provided that such a cure, reasonably satisfactory to Purchaser, is completed within thirty (30) calendar days of receipt by Seller of a Notice (“Cure Period”). 

(c) In the event Seller has not cured a Defective Loan in accordance with Section 2.6(b), Seller shall repurchase the Defective
Loan within fifteen (15) calendar days of the expiration of the Cure Period. 

  
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 (d) Upon any repurchase of a Defective Loan hereunder, Purchaser shall endorse over, reassign,
deliver and transfer to Seller by delivery to Seller of all the Loan Documents with appropriate completed endorsements, which shall be without recourse, so as to vest Seller with title to the reassigned Purchased Loan. Purchaser shall execute such
other documents to accomplish the foregoing intention as Seller may reasonably request. Upon such delivery and assignment, Seller shall promptly pay to Purchaser the Repurchase Price. 

2.7 Assumption of IRA Account Deposits. 

(a) With respect to Assumed Deposits in IRAs, Seller shall use reasonable efforts and shall cooperate with Purchaser in taking any action
reasonably necessary or appropriate to accomplish or accompany the appointment of Purchaser (or an Affiliate of Purchaser designated by Purchaser) as successor custodian or the delegation to Purchaser (or an Affiliate of Purchaser) of Seller’s
authority and responsibility as custodian of all such IRA deposits, including, but not limited to, sending to the depositors thereof appropriate notices, cooperating with Purchaser (or such Affiliate) in soliciting consents from such depositors,
executing assignments reasonably satisfactory to Purchaser, and filing any appropriate applications with applicable regulatory authorities. If any such delegation is made to Purchaser (or such Affiliate), Purchaser (or such Affiliate) shall perform
all of the duties so delegated and comply with the terms of Seller’s agreement with the depositor of the IRA deposits affected thereby. 

(b) If, notwithstanding the foregoing, as of the third (3rd) Business Day prior to the Closing Date, Purchaser shall be unable to retain
deposit liabilities in respect of an IRA, the account holder has notified Seller or Purchaser of the account holder’s objection to Purchaser acting as custodian or trustee of such IRA or if Purchaser, in its sole discretion, has notified Seller
that such IRA shall be excluded from the Assumed Deposits, such deposit liabilities shall be Excluded Deposits for purposes of this Agreement. 

ARTICLE 3 
 CLOSING
PROCEDURES 
 3.1 Closing Date and Place; Notifications. The closing of the transactions provided for herein (the
“Closing”) shall be held at 10:00 a.m. Eastern Time at the offices of Troutman Sanders, LLP, 600 Peachtree Street, Suite 5200, Atlanta, Georgia 30308, or at another place agreed to by the parties, on the later of
(i) March 25, 2016, and (ii) the first Friday that is a Business Day after the date on which the last condition precedent in Article 8 is satisfied or waived, or such other time and date mutually agreed to in writing by the
parties (the “Closing Date”). 
 3.2 Procedure at the Closing; Adjustments. 

(a) No later than one (1) Business Day prior to the Closing Date, Seller shall deliver to Purchaser the Preliminary Closing Statement
prepared in the format set forth on Schedule 1.6 and based on figures as of the end of the third (3rd) Business Day immediately preceding the Closing Date. 

(b) At the Closing, the parties shall deliver the documents referred to in Section 8.1(d), Section 8.2(d) and
Section 8.3. The sales, purchases, transfers, assumptions, leases and other acts made or taken at the Closing will be made or taken to be effective as of the Closing Time although the Settlement Payment may be paid at any time on the
Closing Date. Seller shall be responsible for the Branches and the operation thereof until the Closing Time. The Closing Time shall be the relevant cutoff time for purposes of the proration described in Section 2.3, and any amounts to be
paid in accordance with Section 2.3 shall be paid contemporaneously with the Final Settlement Payment on the Adjustment Date. 

  
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 (c) Seller shall pay to Purchaser (or Purchaser shall pay to Seller) via wire transfer of
immediately available funds before 2:00 p.m. Eastern Time on the Closing Date to an account specified by the receiving party by the calendar day immediately prior to the Closing Date in an amount calculated based on the Preliminary Closing
Statement (the “Settlement Payment”) equal to the excess of (i) the Liabilities, over (ii) the Purchase Price, all as calculated based on the Preliminary Closing Statement. If the Settlement Payment is an amount
greater than zero, Seller shall pay to Purchaser an amount equal to the Settlement Payment. If the Settlement Payment is an amount less than zero, Purchaser shall pay to Seller an amount equal to the absolute value of such negative Settlement
Payment. 
 (d) Within thirty (30) calendar days after the Closing, Purchaser shall determine the actual Liabilities and Purchase Price
as of the Closing Time and deliver to Seller the Final Closing Statement. The Final Closing Statement shall become final and binding on Purchaser and Seller on the earlier of (i) the date it is approved by Purchaser by written notice to Seller
or (ii) at 5:00 p.m. Eastern Time on the tenth (10th) Business Day after it is delivered by Purchaser to Seller unless, within such ten (10) Business Day period, Seller gives written notice to Purchaser of its actual or potential
disagreement with respect to any item included in such Final Closing Statement. Seller and Purchaser shall use their commercially reasonable efforts to resolve the disagreement or concern during the ten (10) Business Day period following
receipt by Purchaser of such notice. If the disagreement or concern is not resolved during such ten (10) Business Day period, the dispute shall be referred to a Dispute Resolver, and such Final Closing Statement shall be modified, if required,
by the Dispute Resolver and thereupon such Final Closing Statement shall become final and binding. Purchaser and Seller shall share equally the cost of any Dispute Resolver. The “Final Settlement Payment” shall equal the
excess of (i) the Liabilities, over (ii) the Purchase Price, all as finally determined pursuant to this Section 3.2(d) and reflected on the Final Closing Statement. Interest at the Federal Funds Rate from the Closing Date to,
but excluding, the Adjustment Date shall be included in the Final Settlement Payment. 
 (e) Within five (5) Business Days after the
Final Closing Statement becomes final and binding pursuant to subsection (d) of this Section (the “Adjustment Date”): 

(i) if the Final Settlement Payment exceeds the Settlement Payment, Seller shall pay Purchaser the amount of such excess; 

(ii) if the Final Settlement Payment is less than the Settlement Payment, Purchaser shall pay Seller the amount of such
deficiency; and 
 (iii) if the Final Settlement Payment equals the Settlement Payment, then no further payment shall be
made. 
 (f) All payments to be made hereunder by one party to the other shall be made by wire transfer of immediately available funds
before 2:00 p.m. Eastern Time on the Adjustment Date to an account specified by the receiving party by the calendar day immediately prior to the Adjustment Date. 

(g) If any instrument of transfer contemplated herein shall be delivered or recorded in any public record before the Closing Time and
thereafter the Closing is not completed, then at the request of the transferring party, the other party will deliver (or execute and deliver) such instruments and take such other action as such transferring party shall reasonably request to revoke
such purported transfer. 

  
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 ARTICLE 4 

REPRESENTATIONS AND WARRANTIES OF SELLER 

Seller represents and warrants as follows: 

4.1 Corporate Organization and Authority. Seller is a national bank duly organized, validly existing and in good standing under the
laws of the United States and has the requisite power and authority to conduct the business now being conducted at the Branches, to accept and maintain the Assumed Deposits and to own the Assets. Seller’s Deposits maintained at the Branches are
insured by the FDIC, subject to applicable FDIC coverage limitations. Seller has the requisite corporate power and authority and has taken all corporate action necessary in order to execute and deliver this Agreement and to consummate the
transactions contemplated hereby. This Agreement is a valid and binding agreement of Seller enforceable against Seller in accordance with its terms subject, as to enforcement, to bankruptcy, insolvency, fraudulent transfer, reorganization,
moratorium and similar laws of general applicability relating to or affecting creditors’ rights and to general equity principles (the “Enforceability Exceptions”). 

4.2 No Conflict; Licenses and Permits. The execution, delivery and performance of this Agreement by Seller does not, and will not,
violate any provision of its charter or bylaws or, subject to the receipt of the Regulatory Approvals, violate or constitute a breach or contravention of, or default under, any Law to which Seller is subject or under any agreement or instrument of
Seller, or by which Seller is otherwise bound, or to which any of the Assets, Assumed Deposits, or Assumed Contracts (except for any required consents under Assumed Contracts in respect of the transactions herein contemplated) or the Branches are
subject, which violation, breach, contravention or default could reasonably be expected to have a Material Adverse Effect. Seller has all material licenses, franchises, permits, certificates of public convenience, orders and other authorizations of
all foreign, federal, state and local governments and governmental authorities necessary for the lawful conduct of its business at the Branches as now conducted and all such licenses, franchises, permits, certificates of public convenience, orders
and other authorizations are valid and in good standing and are not subject to any suspension, modification or revocation or proceedings related thereto. 

4.3 Approvals and Consents. Except as required to obtain the Regulatory Approvals, no notices, reports or other filings are required to
be made by Seller with, nor are any consents, registrations, approvals, permits or authorizations required to be obtained by Seller from, any governmental or regulatory authorities in connection with the execution and delivery of this Agreement by
Seller and the consummation by Seller of the transactions contemplated hereby. 
 4.4 Title to Assets. Seller has good and marketable
fee title to the Assets, free and clear of all Encumbrances. 
 4.5 Condemnation Proceedings. Seller has not received any written
notice of any condemnation or eminent domain proceedings or negotiations for the purchase of the Real Property in lieu of condemnation, and no condemnation or eminent domain proceedings or negotiations have been commenced or, to Seller’s
knowledge, threatened in connection with the Branches. 
 4.6 Assumed Contracts. Each Assumed Contract constitutes a valid and
binding obligation of Seller and there does not exist, with respect to Seller’s obligations thereunder, any default, or event or condition which constitutes, or after notice or passage of time or both would constitute, a material default on the
part of Seller under any Assumed Contract. Each lease relating to Furniture and Fixtures used in a Branch is current and all rents, expenses and charges payable by Seller have been paid or accrued in accordance with the terms thereof. 

4.7 Fiduciary Obligations. Other than in respect of IRAs, Seller has no trust or fiduciary relationship or obligations in respect of
any of the Assumed Deposits or in respect of any other Assets or Liabilities. 

  
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 4.8 Employees. To Seller’s knowledge, it has complied in all material respects with
applicable Law (including, without limitation, the Employee Retirement Income Security Act of 1974, as amended (“ERISA”)), rules and regulations relating to the employment of labor or the provision of compensation or benefits
thereto, including without limitation those relating to wages, hours, unfair labor practices, employment discrimination and payment of social security and similar taxes with respect to employees at the Branches. 

4.9 Proceedings. There is no action, suit, proceeding or investigation pending or, to Seller’s knowledge, threatened against
Seller, in, before, or by any court or governmental agency or authority related to the Assets, the Assumed Deposits or the Branches or that could reasonably be expected to have a Material Adverse Effect. 

4.10 Regulatory Matters. There are no pending, or, to the knowledge of Seller, threatened, disputes or controversies between Seller and
any federal, state or local governmental authority (i) with respect to the Branches or (ii) that could reasonably be expected to have a Material Adverse Effect. Seller is unaware of any reason why the Regulatory Approvals and, to the
extent necessary to consummate the transaction described herein, any other approvals, authorization or filings, registrations and notices cannot be obtained. 

4.11 Compliance with Laws. To Seller’s knowledge, its business at the Branches has been conducted in compliance with applicable
Law, except for any failure to comply that could not reasonably be expected to have a Material Adverse Effect. 
 4.12 Absence of Certain
Changes, Etc. Except in connection with the transaction contemplated hereby, since September 30, 2015, Seller’s business at the Branches has been conducted only in, and there has not been any material transaction other than according
to, the ordinary and usual course of such business and there has not been any material adverse change, individually or in the aggregate, in the condition (financial or otherwise), properties, business or results of operations of the Branches, or any
development or combination of developments (other than those related to general economic conditions or conditions generally affecting the industry and/or areas in which the Branches operate) which, individually or in the aggregate, is reasonably
likely to result in any such change. 
 4.13 Books and Records. Since September 30, 2015, the books, accounts and records of the
Branches have been maintained in accordance with safe and sound banking practices and in a manner consistent with past practice, which, as they relate to financial accounting, is in accordance with GAAP. 

4.14 Tax Representations. 

(a) With respect to the Assumed Deposits, Seller is in material compliance with the law and IRS regulations relative to (i) obtaining from
depositors of the Assumed Deposits executed IRS Forms W-8 and W-9 and (ii) the reporting of interest. 
 (b) Seller has paid when due
Taxes in respect of the Assets. There are no liens for Taxes allocated to or imposed on Seller on any of the Assets and to the knowledge of Sellers there is no basis for the assertion of any such liens, other than normal and recurring ad valorem tax
liens and sales and use taxes on assets being sold. 
 (c) No tax is required to be withheld by Purchaser from the Purchase Price or
Settlement Payment as a result of the transfers contemplated by this Agreement pursuant to the Code or any other provision of federal, state or local Tax law. 

  
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 4.15 Purchased Loans. With respect to each Purchased Loan: 

(a) such Purchased Loan was solicited, originated and has been serviced and administered in material compliance with all applicable
requirements of applicable Law, and there was no fraud on the part of Seller, any of its employees or agents or, to Seller’s knowledge, any other person, with respect to the origination of any Purchased Loan; 

(b) each note evidencing a Purchased Loan and any related security instrument (including, without limitation, any guaranty or similar
instrument) constitutes a valid and legally binding obligation of each borrower, other obligor and guarantor thereunder enforceable in accordance with its terms, subject to the Enforceability Exceptions; 

(c) the collateral for each secured Purchased Loan is (i) the collateral described in the related Loan Documents, and (ii) subject
to a valid, enforceable and perfected lien with the priority reflected in the Loan Documents; 
 (d) such Purchased Loan was made in
accordance with Seller’s standard underwriting and documentation guidelines as in effect at the time of its origination and has been serviced and administered substantially in accordance with the Loan Documents and Seller’s standard loan
servicing procedures as in effect from time to time; 
 (e) except as set forth on Schedule 1.7, Seller is and at Closing will be the
sole owner of each Purchased Loan, free and clear of any Encumbrance, and such Purchased Loan was made or acquired by Seller in the ordinary course of business; 

(f) such Purchased Loan is not presently serviced by third parties, and there is no obligation, agreement or understanding whatsoever that
could result in such Purchased Loan becoming subject to any such third party servicing; 
 (g) there has been no modification to or waiver
of the terms of the applicable Loan Documents except as reflected in writing in the loan file for such Purchased Loan, and Seller has not taken or failed to take any action that would entitle any borrower, other obligor or guarantor under such
Purchased Loan to assert successfully any claim against Seller or Purchaser (including without limitation any right not to repay any such obligation or any part thereof); 

(h) no borrower, other obligor or guarantor has been released from liability on the Purchased Loan except as set forth in the Loan Documents;

 (i) there is no pending, or to Seller’s knowledge, threatened litigation or claims which may affect the title or interest of Seller
or any borrower, other obligor or guarantor in and to such Purchased Loan, and there are no pending or, to Seller’s knowledge, threatened foreclosures, total or partial condemnation or repossession proceedings or insurance claims with respect
to such Purchased Loan; 
 (j) no approval, consent, authorization or action of, any borrower, other obligor or guarantor is required in
connection with the transfer of such Purchased Loan; 
 (k) Seller has taken no action, or failed to take any action, which would result in
a valid claim or valid defense (including the defense of usury) to the enforcement of such Purchased Loan or a valid right of setoff or rescission, and no claim or defense (including the defense of usury) to the enforcement of such Purchased Loan or
a valid right of setoff or rescission has been asserted with respect to such Purchased Loan; and 

  
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 (l) the information and descriptions concerning the Purchased Loan contained in any previously
provided due diligence materials are true and correct. 
 4.16 Assumed Deposits. None of the Assumed Deposits are: (i) deposits
securing loans or other extensions of credit by Seller that are not Purchased Loans; (ii) other than IRA deposits, deposits held in accounts for which Seller acts as fiduciary; (iii) deposits subject to legal process; (iv) deposits
which are treated as abandoned property under applicable Law related to abandoned property; (v) deposits held in the name of Seller or any of its affiliated entities as depositor; (vi) deposits represented by official checks, travelers
checks, money orders, or certified checks of Seller; or (vii) accounts designated as “closed” on the books and records of Seller. 

4.17 Brokers’ Fees. Other than fees payable to Banks Street Partners, LLC (which Seller agrees to pay), Seller has not employed
any broker or finder or incurred any liability for any brokerage fees, commissions or finders’ fees in connection with the transactions contemplated by this Agreement. 

4.18 Environmental Matters. To Seller’s knowledge, Seller is, and has been, in material compliance with all Environmental Laws
with respect to the Real Property. There are no underground storage tanks on, in or under the Real Property, and no underground storage tanks have been closed or removed from the Real Property except in compliance with all Environmental Laws. The
Real Property is not contaminated with and do not otherwise contain any Hazardous Material. 
 4.19 No Other Representations or
Warranties. Except for the representations and warranties expressly contained in this Agreement, none of Seller, any Affiliate of Seller or any other person has made or makes any other express or implied representation or warranty, either
written or oral, on behalf of Seller. 
 ARTICLE 5 

REPRESENTATIONS AND WARRANTIES OF PURCHASER 

Purchaser represents and warrants as follows: 

5.1 Corporate Organization and Authority. Purchaser is a national bank duly organized, validly existing and in good standing under the
laws of the United States and has the requisite corporate power and authority and has taken all corporate action necessary in order to execute and deliver this Agreement, to consummate the transactions contemplated hereby and to own the Assets and
to operate the Branches. This Agreement is a valid and binding agreement of Purchaser enforceable against Purchaser in accordance with its terms subject, as to enforcement, to the Enforceability Exceptions. 

5.2 No Conflict. The execution, delivery and performance of this Agreement by Purchaser does not, and will not, violate any provision
of its charter or bylaws or, subject to the receipt of the Regulatory Approvals, violate or constitute a breach or contravention of, or default under, any Law to which Purchaser is subject or under any agreement or instrument of Purchaser, or by
which Purchaser is otherwise bound, which violation, breach, contravention or default could reasonably be expected to have a Material Adverse Effect. 

5.3 Approvals and Consents. Except as required to obtain the Regulatory Approvals, no notices, reports or other filings are required to
be made by Purchaser with, nor are any consents, registrations, approvals, permits or authorizations required to be obtained by Purchaser from, any governmental or regulatory authorities in connection with the execution and delivery of this
Agreement by Purchaser and the consummation by Purchaser of the transactions contemplated hereby. 

  
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 5.4 Proceedings. There is no action, suit, proceeding or investigation pending or, to
Purchaser’s knowledge, threatened against Purchaser, in, before, or by any court or governmental agency or authority that could reasonably be expected to have a Material Adverse Effect. 

5.5 Regulatory Matters. There are no pending, or, to the knowledge of Purchaser, threatened, disputes or controversies between
Purchaser and any federal, state or local governmental authority that could reasonably be expected to have a Material Adverse Effect. Purchaser is deemed to be in satisfactory compliance with the Community Reinvestment Act and its implementing
regulations and Purchaser has not been advised in writing of any supervisory concerns regarding its satisfactory compliance with the Community Reinvestment Act. Purchaser is in compliance with all applicable capital standards as of the date hereof,
and is unaware of any reason why the Regulatory Approvals and, to the extent necessary to consummate the transaction described herein, any other approvals, authorization or filings, registrations and notices cannot be obtained. 

5.6 Financial Condition. Since the date of Purchaser’s most recent Consolidated Report of Condition and Income as submitted to its
primary regulatory authority, there has not occurred any Material Adverse Effect on Purchaser. Except as disclosed on Schedule 5.6, the financial condition of Purchaser is sufficient to enable Purchaser to consummate the transactions
contemplated hereby without condition or contingency. 
 5.7 Brokers’ Fees. Other than fees payable to Olsen Palmer LLC (which
Purchaser agrees to pay), Purchaser has not employed any broker or finder or incurred any liability for any brokerage fees, commissions or finders’ fees in connection with the transactions contemplated by this Agreement. 

5.8 No Other Representations or Warranties. Except for the representations and warranties expressly contained in this Agreement, none
of Purchaser, any Affiliate of Purchaser or any other person has made or makes any other express or implied representation or warranty, either written or oral, on behalf of Purchaser. 

ARTICLE 6 
 COVENANTS OF
THE PARTIES 
 6.1 Activity in the Ordinary Course. 

(a) From the date hereof to and including the Closing Date, Seller shall conduct the business of the Branches in the ordinary and usual course
consistent with past practices and standards, and Seller shall not, without the prior written consent of Purchaser: 
 (i)
Offer interest rates or terms on any category of Deposits which are not determined in a manner consistent with past practice and procedure; 

(ii) Commence any new interest rate promotions with respect to any category of Deposits without providing ten
(10) calendar days’ prior written notice thereof to Purchaser; 
 (iii) Change the fees charged for banking
services at the Branches except in the ordinary course of business consistent with past practice; 

  
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 (iv) Except as expressly contemplated herein, transfer to or from the Branches to
or from any of Seller’s other operations or branches any Assets or Assumed Deposits; 
 (v) Except in the ordinary
course of business, sell, transfer, assign, encumber or otherwise dispose of or enter into any contract, agreement or understanding to sell, transfer, assign, encumber or dispose of any Asset; 

(vi) Make or agree to make any material Improvements to the Branches or the Real Property; 

(vii) Terminate or amend any terms of the Real Property Leases; 

(viii) Terminate the operations of the Branches or file any application to relocate, consolidate or close the Branches; 

(ix) Enter into any commitment, agreement, understanding or other arrangements to transfer, assign, encumber or otherwise
dispose of the Branches, except in a manner consistent with Seller’s obligations under this Agreement; or 
 (x)
Transfer any employee employed at one of the Branches to any other branch of Seller (except to the extent reasonably necessary to conduct the business of the Branches in the ordinary and usual course) or transfer any employee employed at any other
branch of Seller to one of the Branches, nor will Seller permit any employee of one of the Branches to post for positions outside such Branch, nor will Seller grant any increase in the salary or wages of any of the employees of the Branches other
than normal increases at times and amounts consistent with Seller’s past practices. 
 (b) Seller shall not, without the prior written
consent of Purchaser, modify or waive the terms of any Purchased Loan, or take or fail to take any action that would entitle any borrower, other obligor or guarantor under any Purchased Loan to assert successfully any claim against Seller or
Purchaser (including without limitation any right not to repay any such obligation or any part thereof). 
 6.2 Access and
Confidentiality. 
 (a) Between the date of this Agreement and the Closing Date, Seller shall afford to Purchaser and its officers,
employees, agents and representatives full access to the properties, books, records, contracts, documents, files (including Records and Loan Documents) and other information of or relating to the Branches, the Assets and the Liabilities upon
reasonable advance notice during normal business hours; provided, however, that any inspection shall be conducted in a manner that does not unreasonably interfere with Seller’s normal business operations or its relations with its
customers. Seller shall cause its personnel to be reasonably available during normal business hours, to an extent not disruptive of ongoing operations, to provide information and assistance in connection with Purchaser’s investigation of
matters relating to the Branches, the Assets and the Liabilities and to familiarize Purchaser with basic policies and operational procedures of Seller relating to the Branches. Seller shall furnish Purchaser with such additional financial and
operating data and other information about its business operations at the Branches as may be reasonably necessary for the orderly transfer of the business operations of the Branches. Seller shall allow Purchaser access to the Branches during normal
business hours upon execution of the Agreement for the purposes of inspecting and installing signage, communication equipment and cabling, at Purchaser’s sole expense. In the event that the transactions contemplated by this Agreement are not
consummated for any reason, Purchaser shall be responsible, at its sole expense, for the removal of any equipment or cabling installed pursuant to this Section 6.2(a) and for the repair of any damage done by such installation or removal.

  
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 (b) Subject to Section 11.4 hereof, each party to this Agreement shall hold, and
shall cause its respective directors, officers, employees, agents, consultants and advisors to hold, in strict confidence (unless disclosure to a bank regulatory authority is necessary in connection with any Regulatory Approval or unless compelled
to disclose by judicial or administrative process) all discussions and information related to the Branches (or, if required under a contract with a third party, concerning such third party) and, with respect to Purchaser, all non-public personal
information of any consumer or customer of Seller, records, books, contracts, instruments, computer data, system requirements and other data and information (collectively, “Confidential Information”) furnished to it by Seller
or Seller’s representatives pursuant to this Agreement (except to the extent that such Confidential Information can be shown to have been (i) previously known by such party on a non-confidential basis; (ii) in the public domain
through no fault of such party; or (iii) later lawfully acquired from other sources by the party to which it was furnished and such other source is not subject to a confidentiality restriction with regard to such Confidential Information), and
neither party shall release or disclose such Confidential Information to any other person, except, upon the same conditions of confidentiality, its auditors, attorneys, financial advisors, bankers, other consultants and advisors and, to the extent
permitted above, bank regulatory authorities. 
 (c) This Section 6.2 shall not prohibit disclosure of Confidential Information
required by applicable Law to be disclosed, but such additional disclosure shall be limited to that actually required by law, and the party making disclosure shall give the other party as much notice as is practicable of such obligation (except
where prohibited by applicable Law) so that the other party may seek a protective order or other similar or appropriate relief, and also shall undertake in good faith to have the Confidential Information disclosed treated confidentially by the party
to whom the disclosure is made. 
 (d) Notwithstanding any other express or implied agreement, arrangement or understanding to the contrary,
Purchaser and Seller may disclose to any applicable taxing authorities any fact that may be relevant to understanding the tax treatment and the tax structure of this Agreement. 

6.3 Regulatory Approvals. As soon as practicable after the date of this Agreement and no later than ten (10) Business Days after
the date of this Agreement, and with the cooperation of Seller, Purchaser shall prepare and file any applications to federal or state regulatory authorities for approvals necessary, including all Regulatory Approvals, to consummate the transactions
contemplated by this Agreement. Seller shall cooperate promptly with Purchaser in connection with Purchaser’s applications, and will prepare and file any such applications required by regulatory authorities to be filed by Seller. Purchaser
shall use its commercially reasonable efforts to obtain each such approval as promptly as practicable, and Purchaser and Seller will cooperate in connection therewith and provide the other with copies of any applications relating thereto prior to
filing, other than material filed in connection therewith under a claim of confidentiality. 
 6.4 ATMs; Assumed Contracts. 

(a) Seller has made available to Purchaser a conformed copy of all potential Assumed Contracts. If ATMs are not to be included as Assumed
Furniture and Fixtures, Purchaser, at its option, may convert/install ATMs up to ten (10) days prior to the Closing Date, and Purchaser and Seller agree to cooperate and to work together and develop a conversion schedule. In the event that the
transactions contemplated by this Agreement are not consummated for any reason, Purchaser shall be responsible, at its sole expense, for the removal of any equipment or cabling installed pursuant to this Section 6.4(a) and for the repair
of any damage done by such installation or removal. 

  
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 (b) Seller shall use its commercially reasonable efforts, and Purchaser shall cooperate to,
obtain from any parties to any Assumed Contracts any required consents to the assignment of the Assumed Contracts to Purchaser, under the existing terms and conditions contained in the Assumed Contracts on the Closing Date; provided, however,
that Seller shall not obtain any consent that imposes a condition, commitment or requirement that would, after consultation with Purchaser and in Purchaser’s reasonable judgment, adversely affect the operations of the Branches. Any such Assumed
Contract for which consent has not been obtained as of the Closing Date shall not be an Assumed Contract and Seller shall have no obligation to continue attempting to obtain such consent. 

6.5 Transitional Matters. 

(a) On the Closing Date, Seller shall provide Purchaser all Delivery Records associated with the Deposits in its possession at each Branch.
Immediately following the Closing Date, Seller shall provide to Purchaser, at Purchaser’s sole expense and at a location designated by Purchaser, all Loan Documents. Upon Closing, Seller shall provide Purchaser all the data which is reasonably
necessary for the conversion of the Assumed Deposits to Purchaser’s data processing system; provided, however, that Seller and Purchaser each shall pay for their own expenses incurred in the conversion. Seller shall complete an
assignment and allonge for each Purchased Loan or a global instrument of assignment in form and substance reasonably acceptable to Purchaser and deliver the assignments and allonges or global instrument at Closing. Thereafter, Seller will honor in a
timely manner any further reasonable requests by Purchaser relative to additional endorsements, assignments or similar matters with respect to the Loan Documents for Purchased Loans; provided, however, with respect to specific Loan
Documents, Seller may require additional time to effectively transfer title thereto and Purchaser shall not hold Seller liable for any reasonable delays in the delivery of such Loan Documents. 

(b) Seller and Purchaser shall cooperate with each other and shall use their commercially reasonable efforts to cause the timely transfer of
information concerning the Assumed Deposits and the Purchased Loans which is maintained on Seller’s data processing systems. Within ten (10) calendar days after the date of this Agreement, Seller and Purchaser shall each designate
appropriate and qualified personnel to be responsible for this cooperation of the parties in such transfer of information, and such personnel shall meet to discuss products, data mapping and the delivery of Delivery Records to Purchaser. Within
forty-five (45) calendar days after the date of this Agreement, Seller and Purchaser shall execute a written, mutually acceptable Transition Services Agreement with respect to post-closing trailing transaction settlement procedures and
specifications. If the parties agree to the electronic delivery of such materials, Purchaser may require up to three sets of electronic data files, corresponding layouts, and applicable balancing reports, with respect to the Assumed Deposits and
Purchased Loans. One set, whether electronic or not, shall be the live conversion set and be created after processing on the night of the Closing Date and be delivered to Purchaser no later than noon Eastern Time on the day following the Closing
Date. Any other set must only be provided by Seller to Purchaser following at least ten (10) business days prior notice. 
 (c) In
connection with its processing on the night of the Closing, Seller will produce and mail to the customers of the Branches, statements dated the Business Day immediately following the Closing Date on any Assumed Deposit or Purchased Loan account
normally receiving a statement. 
 (d) Anything herein to the contrary notwithstanding, neither Purchaser nor Seller shall object to the use
by depositors of the Assumed Deposits of checks and similar instruments issued to or ordered by such depositors on or prior to the Closing Date, which instruments may bear Seller’s name, or any logo, trademark, service mark, trade name or other
proprietary mark of Seller, for a period of up to sixty (60) calendar days after the Closing Date. Seller and Purchaser will, prior to Closing, agree on a mutually acceptable method to notify customers who use, and to transfer funds and
authorization relating to, direct deposit and direct debit arrangements related to the Assumed Deposits. 

  
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 (e) Purchaser, at its option, may maintain existing account numbers issued to depositors of all
Assumed Deposits and Purchaser agrees to furnish such depositors with checks, withdrawal order forms and ATM access/debit cards. 
 6.6
Customer Notices. Prior to Closing, Seller and Purchaser will work together in good faith to: (i) notify the customers of the Branches of the transactions contemplated hereby and (ii) provide all notices to such customers and other
persons that Seller or Purchaser, as the case may be, is required to give by any regulatory authority having jurisdiction or under applicable Law, including but not limited to any notice required by the Real Estate Settlement Procedures Act of 1974,
as amended, or the terms of any agreement between Seller and any customer in connection with the transactions contemplated hereby. Any such notice or communication may only be sent after the other party has had a reasonable opportunity to review and
comment with respect to such notice or communication. All costs and expenses of any such notice or communication sent or published under this Agreement by Purchaser or Seller shall be the responsibility of the party sending such notice or
communication and all costs and expenses of any joint notice or joint communication shall be shared equally by Seller and Purchaser. 
 6.7
Maintenance of Records. Through the Closing Time, Seller will maintain the Records in accordance with safe and sound banking practices and in a manner consistent with past practice, which, with respect to financial accounting matters, is
understood by Seller to be generally in accordance with GAAP. Purchaser may upon reasonable notice, at its own expense and during normal business hours, make such copies of and excerpts from the Records as it may deem desirable. All Records, whether
held by Purchaser or Seller, shall be maintained for such periods following the Closing as are required by Law, unless the parties shall, applicable Law permitting, agree in writing to a different period. From and after the Closing Date, each party
to this Agreement agrees to cooperate with the other party in responding to any reasonable request for information regarding or contained in the Records. Purchaser shall make available the Delivery Records and Seller shall make available the
retained records, for inspection by the other party, as applicable, during normal business hours of each, after reasonable prior notice, and each party may, at its respective expense, have copies made of excerpts from the retained records or the
Delivery Records, as each may deem necessary. The requesting party shall be responsible for any expenses relating to such request, including reasonable research fees charged by the other party. 

6.8 ATM/Debit Cards, Billpay, Mobile Banking, and Internet Banking. Seller will provide Purchaser with a list of ATM access/debit cards
issued by Seller to depositors of any Assumed Deposits and customers of the Branches that are billpay, mobile banking and Internet banking participants and a data processing record containing all addresses of such customers therefor, within a
reasonable period after the date of this Agreement and at intervals thereafter prior to the Closing Date that are mutually agreed to by the parties within thirty (30) calendar days after the date of this Agreement. At Closing, Seller will
provide Purchaser with a final list of such issued ATM access/debit cards and customers of the Branches that are billpay, mobile banking and Internet banking participants issued by Seller. Seller shall render ATM/debit cards and billpay, mobile
banking and Internet banking for customers of the Branches inactive as of the Closing Time. Purchaser shall issue ATM access/debit cards to depositors of any Assumed Deposits prior to the Closing Date, which cards shall be effective as of the
Closing Time. 
 6.9 Training. Seller shall permit Purchaser to train employees of the Branches before Closing with regard to
Purchaser’s operations, policies and procedures at Purchaser’s sole cost and expense. This training may, as mutually agreed upon by Seller and Purchaser, take place at the Branches and may take place during business hours; provided,
however, that any training that occurs shall be conducted in a manner not disruptive to operations of the Branches. 

  
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 6.10 Collateral for Public Funds Deposits. Within thirty (30) calendar days after the
date of this Agreement, Seller shall provide Purchaser with a listing of any pledge of collateral by Seller with respect to any Deposit proposed to be an Assumed Deposit that constitutes public funds or otherwise requires collateral. Purchaser shall
use its commercially reasonable efforts to make arrangements acceptable to such customer prior to the Closing Date to replace Seller’s collateral with collateral belonging to Purchaser. If such Deposit cannot be collateralized in a manner
acceptable to the deposit customer, such Deposit shall be an Excluded Deposit for purposes of this Agreement. 
 6.11 Collateral
Assignments and Filing. As requested by Purchaser, Seller shall take all such reasonable actions to assist Purchaser in obtaining the valid perfection of a first priority lien or security interest in the collateral, if any, securing each
Purchased Loan in favor of Purchaser or its designated assignee as secured party. 
 6.12 Credit Insurance. Seller shall remit all
proceeds it receives after the Closing Time on account of credit insurance on the Purchased Loans to Purchaser, and Seller will use its commercially reasonable efforts to assign policies of credit insurance associated with the Purchased Loans to
Purchaser. Purchaser will remit any insurance premiums paid to it in connection with the Purchased Loans to the appropriate credit insurance company. 

6.13 Insurance; Risk of Loss. Prior to the Closing Time, Seller shall (i) maintain the Assets in customary repair, order, and
condition, reasonable wear and tear and damage by fire or other unavoidable casualty excepted; (ii) maintain insurance on the Assets consistent with its historical practices and all risk of loss shall be on Seller; and (iii) remain in
substantial compliance with any obligations it has under the Assumed Contracts or otherwise relating to maintenance of and insurance upon the Assets. 

6.14 Settlement Operations after Closing. 

(a) Seller and Purchaser hereby agree that, except as provided below or otherwise agreed in writing by the parties, for a period of sixty
(60) calendar days after the Closing Date: 
 (i) Seller will transfer, convey, and assign to Purchaser on the date of
its receipt all deposits received by Seller after the Closing for credit to any of the Assumed Deposit accounts, and all payments received by Seller after the Closing for application to or on account of any of the Assets. 

(ii) Seller shall notify Purchaser on the date of its receipt of the return to it of any items deposited in, or cashed at, the
Branches prior to the Closing Date and shall expeditiously forward any such items to Purchaser. If Purchaser cannot recover on such returned items after making a good faith effort to do so, Seller shall reimburse Purchaser for such return items upon
assignment of such items by Purchaser to Seller. 
 (iii) To the extent permitted by Law and the applicable Deposit
contracts, Seller shall honor all properly payable checks, drafts, withdrawal orders and similar items drawn on Seller’s forms against Assumed Deposits which are presented to Seller by mail, or through clearing houses. Seller will make no
charge to Purchaser for forwarding such items, and will electronically transmit such items on a daily basis, at mutually agreed upon intervals. If Purchaser cannot receive an electronic transmission, Seller will make available daily to Purchaser in
an alternative method the items received from such clearing houses. Provided that such items have been timely delivered to Purchaser by Seller, Purchaser shall pay the items referred to in this Section 6.14(a)(iii). Seller shall make
supporting documentation available to Purchaser no later than 12:00 p.m. Eastern 

  
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Time on the Business Day following the day they were received by Seller. Purchaser shall promptly reimburse Seller on a daily basis for the amount of all such checks and drafts paid by Seller.

 (b) After the Closing Date, Seller shall, with assistance from Purchaser, notify all Automated Clearing House
(“ACH”) originators of the transfers and assumptions made pursuant to this Agreement. For a period of sixty (60) calendar days beginning on the Closing Date, Seller shall honor all ACH items related to accounts assumed
under this Agreement which are routed or presented to Seller. Seller shall make no charge to Purchaser for honoring such items, and will electronically transmit all such ACH data to Purchaser and generate appropriate notice of change on a daily
basis with first transmission from the immediately preceding Business Day to Purchaser by a time mutually agreed to by the parties. Seller and Purchaser shall make arrangements to provide for the daily settlement with immediately available funds by
Purchaser of any ACH items honored by Seller, and Seller shall be held harmless and indemnified by Purchaser for acting in accordance with this arrangement to accept ACH items. Seller agrees to return ACH items as required and requested by
Purchaser, provided Purchaser furnishes in electronic or other agreed upon format the ACH entries to be returned and adheres to Seller’s cutoff time for processing such items. Seller further agrees to settle any and all ATM transactions
effected on or before the Closing Time, but processed after the Closing Time, as soon as practicable. Purchaser and Seller agree to remit the total net balance of such transactions to Seller or Purchaser, as the case may be, on the same date the
transactions are settled. In instances where a depositor of a Deposit made an assertion of error regarding an account constituting an Assumed Deposit pursuant to the Electronic Funds Transfer Act and Federal Reserve Board Regulation E, and Seller,
prior to the Closing Time, recredited the disputed amount to the relevant account during the conduct of the error investigation, Purchaser agrees to comply with a written request from Seller to debit such account in a stated amount and remit such
amount to Seller, to the extent of the balance of funds available in the accounts. 
 (c) Seller shall provide Purchaser with a listing of
each stop payment order including date, amount, payee, and check number (but not the orders themselves) in effect as to an Assumed Deposit on the Closing Date. Purchaser shall honor all stop payment orders relating to the Assumed Deposits initiated
prior to the Closing and reflected in the data made available by Seller to Purchaser on the Closing Date. In the event that Purchaser shall make any payment in violation of a stop payment order initiated prior to the Closing but not reflected in
stop payment documents and the data made available by Seller to Purchaser prior to such payment, then Seller shall indemnify, hold harmless and defend Purchaser from and against all claims, losses and liabilities, including reasonable
attorneys’ fees and expenses, arising out of any such payment. In the event that Purchaser shall make any payment in violation of a stop payment order initiated prior to the Closing that is reflected in stop payment documents and the data made
available by Seller to Purchaser prior to such payment, then Purchaser shall indemnify, hold harmless and defend Seller from and against all claims, losses and liabilities, including reasonable attorneys’ fees and expenses, arising out of any
such payment. 
 (d) After the Closing Time, Purchaser hereby agrees to process any and all “charge-back items” received
subsequent to the Closing Time but arising prior thereto against Assumed Deposit accounts, as covered under applicable charge-back regulations. “Charge-back items” shall include, but shall not be limited to, disputed items, purchases over
limit, fraudulent use of a debit card, late presentations of sales slips, unpresented credit on sales returns and other adjustments as specified under the rules and regulations of MasterCard and/or Visa. If Purchaser cannot recover on any such
charge-back items after making a good faith effort to do so, Seller shall reimburse Purchaser for such items upon assignment of such items by Purchaser to Seller. Purchaser’s good faith effort to recover on any such items shall not require that
Purchaser take any legal action against any person. 

  
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 (e) With respect to Overdraft Accounts which continue to remain in a negative balance at the
close of business on the tenth (10th) day after the Closing Date after exercise by Purchaser of any setoff rights of which Purchaser is aware, Purchaser shall be entitled to reimbursement in immediately available funds from Seller for the
amount of any such negative balance of which Purchaser gives Seller written notice within fifteen (15) days after the Closing Date. Thereafter, Purchaser shall continue as Seller’s agent, for a period of sixty (60) days after the
Closing Date, or such shorter period as Seller shall request, to assert setoff rights and promptly forward the amount setoff to Seller in immediately available funds. Purchaser shall immediately deliver to Seller all Overdraft Accounts in
Purchaser’s possession (if any) for which it demands reimbursement and any payments or amounts received in respect thereof from time to time, and Seller shall be vested with all rights, title and interest in, to and in connection with such
Overdraft Accounts which Purchaser otherwise would have had, and Seller shall be entitled to enforce and collect all rights, remedies, claims, and causes of action against all persons and entities, including, without limitation, the drawer and
depositor(s), which Seller or Purchaser shall have or would have had in connection with the Overdraft Accounts. 
 (f) Prior to the Closing
Date, Purchaser will open and maintain a demand deposit account with Seller to be used for settlement activity following the Closing Date. Purchaser and Seller agree that all amounts required to be remitted by either such party to the other party
hereto pursuant to this Section 6.14 shall be settled on a daily basis through such demand deposit account. Any amounts to be paid by Seller to Purchaser shall be netted daily against any amounts to be paid by Purchaser to Seller, such
that only one amount, representing the net amount due, shall be deposited in or debited against such account on a daily basis by Seller. Purchaser will ensure that all debit (negative) balances are funded on the day that such account will be
overdrawn. Seller shall provide Purchaser with a daily net settlement figure for all such transactions from the immediately preceding Business Day by 2:00 p.m. Eastern Time on each Business Day and the party obligated to remit any funds thereunder
shall do so by depositing immediately available funds by 4:00 p.m. Eastern Time on such day or by any other method of payment agreed upon by the parties: Any such settlement shall be provisional pending receipt or review by the parties of the
supporting documentation relating to such settlement; the next daily settlement to reflect any adjustments resulting from a parties receipt and examination of the physical items. 

6.15 Restrictive Covenants. 

(a) From the date hereof until twelve (12) months after the Closing Date (the “Restricted Period”), Seller agrees
that it shall not solicit any individual that is an employee of Purchaser who is employed in any Branch or whose place of employment is within the traditional and primary market area of the Branches; provided, however, that nothing in
this Section 6.15(a) shall restrict general recruiting advertisements not targeted specifically at the other’s employees. 

(b) During the Restricted Period, Seller agrees that it shall not target and solicit customers of the Branches whose Assumed Deposits or
Purchased Loans are being assumed or purchased by Purchaser; provided, however, that nothing in this Section 6.15(b) shall restrict general mass mailings, telemarketing calls, statement stuffers, advertisements or other similar
communications whether in print, on radio, television, the Internet, or by other means that are directed to the general public. Seller also agrees that during the Restricted Period it shall not open a subsidiary, a branch banking facility, loan
production office or any other facility used or to be used to provide any banking services within a distance of fifteen (15) miles of any Branch. 

6.16 Real Property Matters. 

(a) Seller has made available to Purchaser, copies of all (i) title information in possession of Seller, including, but not limited to,
title insurance policies, attorneys’ opinions on title, surveys, 

  
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covenants, deeds, notes and mortgages and easements relating to the Real Property; and (ii) reports, surveys, notices, correspondence or other information in Seller’s possession, which
relate to the environmental condition of the Real Property or existing or potential violations of Law relating to the environment and which has not been previously delivered. 

(b) At its option and expense, Purchaser may cause to be conducted during the period beginning on the date hereof and ending on the thirtieth
(30th) day after the date of this Agreement (the “Due Diligence Period”) (i) a title examination, physical survey, zoning compliance review, and structural
inspection of the Real Property and Improvements thereon (the “Property Examination”) and (ii) site inspections, regulatory analyses, and Phase 1 environmental assessments of the Real Property, together with such other
studies and analyses as Purchaser shall deem necessary or desirable (collectively, the “Environmental Survey”). Purchaser agrees to indemnify and hold harmless Seller from damages resulting from injuries to any person or
property from any cause arising out of the commission or omission of any act or acts related to such inspections by Purchaser, except to the extent of Seller’s gross negligence or willful misconduct. 

(c) If in the course of the Property Examination or Environmental Survey Purchaser discovers a “Material Defect” (as
defined in Section 6.16(d) below) with respect to any Real Property, Purchaser shall give prompt written notice thereof to Seller prior to or on the last day of the Due Diligence Period describing the facts or conditions constituting the
Material Defect and the measures which Purchaser reasonably believes are necessary to correct such Material Defect. If Purchaser provides Seller with written notice of a Material Defect, Seller and Purchaser shall promptly discuss and seek to reach
agreement as to an acceptable cure or other resolution of the asserted Material Defect. If Seller elects to cure, then Seller shall proceed with such cure and shall complete such cure by the Closing Date or such additional period as shall be agreed
upon by Seller and Purchaser. If Seller elects not to cure or is not able to cure any Material Defect with respect to any Real Property by the Closing Date and Purchaser and Seller are otherwise unable to agree on how the Material Defect will be
addressed in order to effect Closing on such Real Property, then Purchaser shall have the option exercisable upon written notice to Seller to (i) waive the Material Defect; or (ii) purchase the Assets (other than such Real Property) and
assume the Assumed Deposits but lease such Real Property “as is” without any representation or warranty or any liability for existing environmental damage, maintenance, taxes or insurance for a period of up to twelve (12) months, on a
month-by-month basis, at an annual rental rate equal to 8% of the appraised value of such Real Property and with other reasonable terms to be agreed upon by Seller and
Purchaser; provided, however, that in the event Seller is able to cure any such Material Defect during such lease period, Purchaser shall purchase within ten (10) days after such cure such Real Property from Seller for an amount
equal to such Real Property’s appraised value as set forth on Schedule 2.1. 
 (d) For purposes of this Agreement, a
“Material Defect” shall include: 
 (i) the existence of any facts or condition that constitutes a
breach of Seller’s representations and warranties contained in Section 4.4 and Section 4.5 or the existence of any lien (other than the lien of real property taxes not yet due and payable), encumbrance, easement,
covenant, or other restriction, title imperfection or title irregularity that materially will adversely affect Purchaser’s use of the Real Property or the value of the Real Property; 

(ii) the encroachment by an improvement on the Real Property onto other property or onto any easement, a violation of any
setback requirement, the encroachment of an improvement on any other property onto the Real Property, or the existence of a zoning restriction that will materially adversely affect Purchaser’s use of the Real Property or the value of the Real
Property; 

  
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 (iii) the existence of any structural defect or state of disrepair in the
Improvements on any Real Property (including any equipment, fixtures or other components related thereto) that would cost at least 10% of the portion of the Purchase Price attributed thereto on Schedule 2.1 to repair; or 

(iv) the existence of facts or circumstances demonstrating that any action, including the presence, discharge, disposal,
release, or emission by any person of any Hazardous Material detected in, on or under the Real Property in an amount or a concentration that violates any applicable Environmental Law, has been taken or not taken or a condition or event likely has
occurred or exists, with respect to the Real Property, which constitutes or would constitute a material violation of any Environmental Law as to which Purchaser believes that Purchaser could become responsible or liable for assessment, removal,
remediation, monetary damages, or civil, criminal or administrative penalties or other corrective action or that Purchaser believes will adversely affect its use of the Real Property or the value or marketability of the Real Property. 

6.17 Telephone Numbers. Except for toll-free numbers and call center numbers, Seller shall take all steps reasonably necessary to
enable Purchaser, after the Closing, to continue to use the telephone numbers used at the Branches on the date of this Agreement. 
 6.18
Leased Real Property Matters. Each Real Property Lease is the valid and binding obligation of Seller, and to Seller’s knowledge, of each other party thereto; and there does not exist with respect to Seller’s material obligations
thereunder, or, to Seller’s knowledge, with respect to the material obligations of the lessor thereof, any default, or event or condition that constitutes or, after notice or passage of time or both, would constitute a default on the part of
Seller or the lessor under any such Real Property Lease. As used in this Section 6.18, the term “lessor” includes any sub-lessor of the property to Seller. The Real Property Leases give Seller the right to occupy the building
and land comprising the related Branch in accordance with the terms of such Real Property Lease. There are no subleases relating to any Branch created or suffered to exist by Seller. 

6.19 Excluded Items; Change of Name. 

(a) Seller shall remove from the Branches all items that are not being transferred to Purchaser under this Agreement, including but not limited
to Furniture and Fixtures that are not Assumed Furniture and Fixtures and signage that bears Seller’s logos, trade names, or trademarks, on or prior to the Closing, at Seller’s own expense. Beginning five (5) days prior to the Closing
Date, Purchaser may begin to replace signs, logos and other insignia at the Branches identifying or identified with Seller, and Purchaser shall bear the cost of any replacements and shall be responsible for any damage caused by such replacements. If
the Closing shall not occur for any reason, Purchaser shall, at its sole expense, replace any signs, logos and other insignia of the Branches identifying Seller that Purchaser had caused to be removed. Until the Closing Time, any signs, logos or
insignia replaced by Purchaser identifying or identified with Purchaser shall be covered by temporary signs, logos or other insignia identifying or identified with Seller. After the Closing Time, Purchaser shall not use or allow the display of any
name, logo, insignia, service mark or trade name of Seller in any manner. No activity conducted by Purchaser on or after the Closing Time shall state or imply that Seller is in any way involved as a partner, joint venture or otherwise in the
business of Purchaser. Purchaser shall return to Seller any remaining signs, logos and insignia of Seller removed by Purchaser from the Branches after the Closing Time at Seller’s expense. 

(b) Seller will destroy or remove any supply of Seller’s money orders, official checks, gift checks, travelers’ checks or any other
negotiable or non-negotiable instruments as well any marketing materials located at the Branches on the Closing Date. 

  
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 (c) Seller will remove all computer storage devices that may contain non-public personal
information of non-divested customers located at the Branches on the Closing Date. 
 6.20 Exclusivity. From and after the date
hereof, Seller shall cease all discussions and negotiation with all parties (other than Purchaser) with regard to the sale or disposition of the Branches. 

6.21 Further Assurances. The parties shall cooperate fully with each other in connection with any acts or actions required to be taken
as part of their respective obligations under this Agreement. Purchaser and Seller agree to use all reasonable efforts to satisfy or cause to be satisfied as soon as practicable their respective obligations hereunder and the conditions precedent to
the Closing. Each of Seller and Purchaser will execute, acknowledge and deliver such instruments and take such other actions as the other party may reasonably require in order to carry out the intent of this Agreement. Seller shall duly execute and
deliver such assignments, bills of sale, deeds, acknowledgments and other instruments of conveyance and transfer as shall at any time be necessary or appropriate to vest in Purchaser the full legal and equitable title to the Assets being sold
hereunder, free and clear of all Encumbrances. For a reasonable period of time after the Closing Date, each party will promptly deliver to the other all mail and other communications which are properly addressable or deliverable to the other as a
consequence of the transactions pursuant to this Agreement; and without limitation of the foregoing, on and after the Closing Date, Seller shall promptly forward any mail, communications or other material relating to the Assumed Deposits or the
Assets, to such employees of Purchaser at such addresses as may from time to time be specified by Purchaser in writing. 
 6.22 Notices
of Default. Seller and Purchaser shall each promptly give written notice to the other upon becoming aware of the impending or threatened occurrence of any event which could reasonably be expected to cause or constitute a breach of any of their
respective representations, warranties, covenants or agreements contained in this Agreement. 
 ARTICLE 7 

TAX AND EMPLOYEE MATTERS 

7.1 Allocation Between Pre and Post Closing Periods. Whenever it is necessary under this Agreement to allocate Taxes (including a
liability for Taxes or prepaid Tax) between periods prior to and after the Closing Date (or determine the amount of prepaid Taxes) such Taxes shall be apportioned by assuming that the Branches had a taxable year or period which ended at the close of
the Closing Date, except that any property Taxes or exemptions, allowances or deductions that are calculated on an annual basis shall be apportioned based on time. Appropriate payments shall be made between Purchaser and Seller whenever necessary to
effectuate the proper allocation of any Tax liability or prepaid Tax under this Agreement. 
 7.2 Transfer Taxes and Recording Fees.
Notwithstanding anything herein to the contrary, all excise, sales, use, transfer, documentary, stamp or similar Taxes that are payable or that arise as a result of the consummation of the transactions contemplated by this Agreement shall be borne
by Seller and any recording or filing fees with respect thereto shall be borne by Purchaser. 
 7.3 Tax Reporting. Seller shall file
with the appropriate taxing authorities and mail to the customers of the Branches any necessary Tax related forms that relate to a period before the first Business Day following the Closing Date, and Purchaser shall file with the appropriate taxing
authorities and mail to the customers of the Branches any necessary Tax related forms that relate to a period beginning on the first Business Day immediately following the Closing Date. 

  
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 7.4 Employees and Employee Benefits. 

(a) Attached as Schedule 7.4(a) is a true and correct report listing each employee employed at the Branches as of the date the report is
prepared to include name, position, exempt or nonexempt status, date of hire, present salary and employment status (permanent or temporary, full-time or part-time, active or leave recipient and type of leave). Seller represents and warrants to
Purchaser that the report and all information delivered in connection with this Section 7.4(a) will be complete and accurate in all material respects as of the date the report is prepared and updated. The report will be updated within
ten (10) calendar days prior to Closing. Purchaser shall maintain in confidence the information on the employees and shall use it only for legitimate business purposes in connection with the transactions contemplated by this Agreement. 

(b) Except as set forth on Schedule 7.4(b), Purchaser shall offer employment to all employees at the Branches. Each
such employee who accepts Purchaser’s offer of employment shall be a “Transferred Employee” for purposes of this Agreement effective upon the later of the close of business on the Closing Date or the return of such
employee to active employment. On such date as the parties shall agree, Seller and Purchaser shall jointly notify in writing all Branch employees that the Branches are being transferred to Purchaser and that the employment of the Transferred
Employees by Seller shall terminate as of the close of business on the Closing Date. Concurrently with the delivery of such notice, Purchaser shall offer employment to each of the Transferred Employees. The positions in which such Transferred
Employees shall be employed by Purchaser, and the terms and conditions of employment, shall be substantially the same as the positions in which they were employed by Seller immediately prior to the Closing Date. In addition, each Transferred
Employee’s base salary or hourly wage rate shall be at least equal to the rate of annual base salary or regular hourly wage rate, as applicable, paid by Seller to such Transferred Employee as of the Business Day prior to the Closing Date, each
Transferred Employee shall be offered employment at a job location that is no more than thirty (30) miles from such Transferred Employee’s primary workplace immediately prior to the Closing Date, and upon a termination without cause of a
Transferred Employee within twelve (12) months following the Closing Date, Purchaser shall provide severance benefits consistent with Schedule 7.4(b), giving effect to service with Seller and any of its subsidiaries prior to the Closing
Date. 
 (c) Purchaser shall provide employee benefits for the Transferred Employees substantially similar to those provided by Purchaser to
similarly-situated employees of Purchaser. Subject to applicable Law and applicable Tax qualification requirements, Purchaser shall, or shall cause its subsidiary to, recognize all service of the Transferred Employees with Seller and any of its
subsidiaries that is reflected in the books and records of Seller, as the case may be, for vesting, eligibility and level of benefits purposes (but not for benefit accrual purposes, except for vacation and severance) in each benefit plan, severance
plan and time-off program maintained, sponsored, adopted or contributed to by Purchaser in which Transferred Employees are eligible to participate after the Closing Date (collectively, the “Purchaser Benefit Plans”). In
addition, Purchaser shall cause each Transferred Employee to be immediately eligible to participate, without any waiting time, in the Purchaser Benefit Plans (with the exception of the Athens Federal Community Bank Employee Stock Ownership Plan (the
“Purchaser ESOP”)), subject to the terms of the applicable arrangement and any applicable law, including ERISA. Purchaser shall not be required to recognize service for any purpose under the Purchaser ESOP if Transferred
Employees become eligible to participate in the Purchaser ESOP following the Closing Date. 
 (d) (A) Seller and its Affiliates shall be
solely responsible for (1) claims for welfare benefits and for workers’ compensation, in each case that are incurred by or with respect to any Branch employee who does not become a Transferred Employee (and his or her spouse, dependents or
beneficiaries) before the Closing Date, and (2) claims relating to COBRA Continuation Coverage (and for providing any notices related thereto) attributable to “qualifying events” with respect to any Branch employee who does

  
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not become a Transferred Employee and his or her beneficiaries and dependents, whether occurring before, on or after the Closing Date; and (B) Purchaser and its Affiliates shall be solely
responsible for (1) claims for welfare benefits and for workers compensation, in each case that are incurred by or with respect to any Transferred Employee on or after the Closing Date, and (2) claims relating to COBRA Continuation
Coverage attributable to “qualifying events” with respect to any Transferred Employee and his or her beneficiaries and dependents that occur on or after the Closing Date. For purposes of the foregoing, (i) a medical/dental claim shall
be considered incurred when the services are rendered, the supplies are provided or prescription is actually filled, and not when the condition arose, (ii) a life insurance claim shall be considered incurred on the date of death, (iii) a
disability claim shall be considered incurred when the date of disability occurs and (iv) a workers’ compensation claim shall be considered incurred on the date of the occurrence as determined under the applicable state regulations. 

(e) Except as expressly provided in this Section 7.4, (A) Seller shall remain solely responsible for any and all liabilities
and obligations arising under the Benefit Plans, and Purchaser shall not assume or otherwise acquire any of the Benefit Plans, and (B) for purposes of this Agreement, liabilities under the Benefit Plans shall be considered Excluded Liabilities.

 (f) With respect to any employee benefit plan maintained by Purchaser or any of its subsidiaries that is a welfare plan (a
“Purchaser Welfare Plan”) in which any Transferred Employee will participate effective as of or after the Closing Date, Purchaser and its subsidiaries will, to the extent permitted by the terms and conditions of the subject
Purchaser Welfare Plans and applicable Law, use commercially reasonable efforts to cause all (i) pre-existing condition limitations which otherwise would be applicable to such Transferred Employee and his or her covered dependents to be waived
to the extent satisfied under a Benefit Plan of Seller comparable to such Purchaser Welfare Plan immediately prior to the Closing Date or, if later, immediately prior to such Transferred Employee’s commencement of participation in such
Purchaser Welfare Plan, (ii) participation waiting periods under each Purchaser Welfare Plan that would otherwise be applicable to such Transferred Employee to be waived to the same extent waived or satisfied under the Benefit Plan of Seller
comparable to such Purchaser Welfare Plan immediately prior to the Closing Date or, if later, immediately prior to such Transferred Employee’s commencement of participation in such Purchaser Welfare Plan and
(iii) co-payments and deductibles paid by Transferred Employees under Benefit Plans of Seller in the plan year in which the Closing Date occurs or, if later, the plan year in which the Transferred
Employee commenced participation in such Purchaser Welfare Plan, to be credited for purposes of satisfying any applicable deductible or out of pocket requirement under any such Purchaser Welfare Plan. In addition, to the extent that any Transferred
Employee has begun a course of treatment with a physician or other service provider who is considered “in network” under a Benefit Plan of Seller and such course of treatment is not completed prior to the Closing Date, Purchaser will use
reasonable efforts to arrange for transition care, whereby such Transferred Employee may complete the applicable course of treatment with the pre-Closing physician or other service provider at “in network” rates. 

(g) A Transferred Employee’s employment with Purchaser shall be on an “at-will” basis, and nothing in this Agreement shall be
deemed to constitute an employment agreement with any such person or to obligate Purchaser to employ any such person for any specific period of time or in any specific position or to restrict Purchaser’s right to terminate the employment of any
such person at any time and for any reason satisfactory to it. 
 (h) With respect to each Branch employee who does not become a Transferred
Employee, Seller shall be responsible for all “Continuation Coverage” under Section 4980B of the Code and Section 601 of ERISA. 

  
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 (i) Each Transferred Employee shall cease to be covered by the employee welfare benefit plans,
including plans, programs, policies and arrangements which provide medical and dental coverage, life and accident insurance, disability coverage, and vacation and severance pay of Seller and all other benefit and compensation plans of Seller,
including retirement plans (collectively, “Benefit Plans”) on the date the Transferred Employee becomes a Transferred Employee or on such later date specified under the terms of an applicable Benefit Plan or other plan of
Seller. 
 (j) Seller shall pay in full all bonuses and incentive payments to employees of the Branches that have been earned or that are
otherwise owed through the Closing Date. 
 (k) This Section 7.4 shall be binding upon and inure solely to the benefit of each
of the Parties to this Agreement, and nothing in this Section 7.4, express or implied, is intended to confer upon any other Person any rights or remedies of any nature whatsoever under or by reason of this Section 7.4.
Nothing contained herein shall (i) be treated as an amendment of any particular Benefit Plan of Seller; (ii) give any third party any right to enforce the provisions of this Section 7.4; or (iii) require Purchaser or any
of its subsidiaries to (A) create, modify or maintain any particular Benefit Plan; or (B) retain the employment of any particular employee. 

ARTICLE 8 
 CONDITIONS TO
CLOSING 
 8.1 Conditions to Obligations of Purchaser. Unless waived in writing by Purchaser, the obligation of Purchaser to
consummate the transactions contemplated by this Agreement to be consummated at the Closing is conditioned upon fulfillment, at or before the Closing, of each of the following conditions: 

(a) All consents, approvals and authorizations required to be obtained prior to the Closing from governmental and regulatory authorities in
connection with the performance and consummation of the transactions contemplated hereby, including the Regulatory Approvals, shall have been made or obtained, and shall remain in full force and effect, all waiting periods applicable to the
consummation of the transactions contemplated hereby shall have expired or been terminated and all required regulatory filings shall have been made. 

(b) No court or governmental or regulatory authority of competent jurisdiction shall have enacted, issued, promulgated, enforced or entered
any statute, rule, regulation, judgment, decree, injunction or other order (whether temporary, preliminary or permanent) which is in effect and that could reasonably be expected to have a Material Adverse Effect, and no proceeding seeking such a
judgment, decree, injunction or other order shall have been announced or commenced. 
 (c) Each of the representations and warranties of
Seller contained in this Agreement shall be true in all material respects when made and as of the Closing Date, with the same effect as though such representations and warranties had been made on and as of the Closing Date (except that
representations and warranties that are made as of a specific date need be true in all material respects only on and as of such date); each of the covenants and agreements of Seller to be performed on or prior to the Closing Date shall have been
duly performed in all material respects. For the purpose of determining the accuracy of a particular representation or warranty under this Section 8.1(c), the materiality qualifiers contained in such particular representation or warranty
shall be disregarded. 
 (d) Purchaser shall have received each of the following documents: 

(i) A certificate signed by the duly authorized Secretary of Seller pursuant to which such officer shall certify (A) the
due adoption of resolutions of Seller’s Board of Directors, 

  
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authorizing the signing and delivery of this Agreement and all related documents and the consummation of the transactions contemplated hereby and thereby; and (B) the incumbency and
signatures of officers; 
 (ii) A certificate signed by a duly authorized officer of Seller stating that the conditions set
forth in Section 8.1(a), Section 8.1(b) and Section 8.1(c) have been satisfied; 
 (iii)
A Bill of Sale and Instrument of Assignment and Assumption, signed by Seller, substantially in the form of Exhibit A hereto; 

(iv) Special warranty deeds with appropriate documentary stamps affixed conveying the Real Property to Purchaser with respect
to the Real Property; 
 (v) The Delivery Records; 

(vi) Such consents as shall be required pursuant to the terms of any Assumed Contracts in connection with the assignments of
such Assumed Contracts to Purchaser; 
 (vii) A complete set of keys of the Branches, including but not limited to keys for
all vaults and automated teller machines, appropriately tagged for identification and any vault manuals or specifications with respect to vaults and automated teller machines, if any; 

(viii) The Preliminary Closing Statement and the required Settlement Payment, if any; 

(ix) Seller’s resignation as trustee or custodian, as applicable, with respect to each IRA included in the Assumed
Deposits, and designation of Purchaser as successor trustee or custodian with respect thereto, subject to Section 2.7; 

(x) All documentation required to exempt Seller from the withholding requirement of Section 1445 of the Code, consisting
of an affidavit from Seller to Purchaser that Seller is not a foreign person and providing Seller’s U.S. taxpayer identification number; 

(xi) An assignment in recordable form reflecting the transfer and assignment to Purchaser of deeds of trust, mortgages,
assignments of rents and profits and other real property related Loan Documents recorded in the real property records in applicable public registries; and 

(xii) Such other bills of sale, assignments of management, maintenance, service or servicing contracts, security deposits under
leases, guaranties, warranties, utilities security deposits, and such other instruments and documents as Purchaser may reasonably require as necessary for transferring, assigning and conveying to Purchaser good, marketable and insurable title to the
Assets free and clear of any Encumbrances, and permitting assumption of Liabilities by Purchaser. 
 (e) The following events or conditions
shall be absent or shall not have occurred: 
 (i) There shall not have occurred any Material Adverse Effect in the business
of the Branches, and no circumstances shall exist which, with the passage of time or otherwise, likely will result in any such Material Adverse Effect; and 

  
 29 

 (ii) In the event that Seller has agreed to cure a Material Defect as provided in
Section 6.16 above, such Material Defect shall have been corrected in the manner agreed upon by Purchaser and Seller. 
 8.2
Conditions to Obligations of Seller. Unless waived in writing by Seller, the obligation of Seller to consummate the transactions contemplated by this Agreement to be consummated at the Closing is conditioned upon fulfillment, at or before the
Closing, of each of the following conditions: 
 (a) All consents, approvals, permits and authorizations required to be obtained prior to
the Closing from governmental and regulatory authorities in connection with the performance and consummation of the transactions contemplated hereby, including the Regulatory Approvals, shall have been made or obtained and shall remain in full force
and effect; and all waiting periods applicable to the consummation of the transactions contemplated hereby shall have expired or been terminated and all required regulatory filings shall have been made. 

(b) No court or governmental or regulatory authority of competent jurisdiction shall have enacted, issued, promulgated, enforced or entered
any statute, rule, regulation, judgment, decree, injunction or other order (whether temporary, preliminary or permanent) which is in effect and that could reasonably be expected to have a Material Adverse Effect, and no proceeding seeking such a
judgment, decree, injunction or other order that that could reasonably be expected to have a Material Adverse Effect shall have been announced or commenced. 

(c) Each of the representations and warranties of Purchaser contained in this Agreement shall be true in all material respects when made and
as of the Closing Date, with the same effect as though such representations and warranties had been made on and as of the Closing Date (except that representations and warranties that are made as of a specific date need be true in all material
respects only on and as of such date); each of the covenants and agreements of Purchaser to be performed on or prior to the Closing Date shall have been duly performed in all material respects. For the purpose of determining the accuracy of a
particular representation or warranty under this Section 8.2(c), the materiality qualifiers contained in such particular representation or warranty shall be disregarded. 

(d) Seller shall have received each of the following documents, which shall be delivered in a manner agreed to between Purchaser and Seller
and shall be in form and substance reasonably satisfactory to Seller: 
 (i) A certificate signed by the duly authorized
Secretary of Purchaser pursuant to which such officer shall certify (A) the due adoption of resolutions of Purchaser’s Board of Directors, authorizing the signing and delivery of this Agreement and all related documents and the
consummation of the transactions contemplated hereby and thereby; and (B) the incumbency and signatures of officers; 

(ii) A certificate signed by a duly authorized officer of Purchaser stating that the conditions set forth in
Section 8.2(a), Section 8.2(b) and Section 8.2(c) have been fulfilled; 
 (iii) A Bill of
Sale and Instrument of Assignment and Assumption, signed by Purchaser, substantially in the form of Exhibit A hereto; 

(iv) The required Settlement Payment, if any; and 

  
 30 

 (v) Purchaser’s acceptance of its appointment as successor trustee or
custodian, as applicable, of the IRA accounts included in the Assumed Deposits and assumption of the fiduciary obligations of the trustee or custodian with respect thereto, subject to Section 2.7. 

8.3 Other Documents. The parties agree to execute and deliver such other documents as the parties determine are reasonably necessary to
consummate the transactions contemplated by this Agreement. 
 ARTICLE 9 

TERMINATION 
 9.1
Termination. This Agreement may be terminated at any time prior to the Closing Date: 
 (a) By the mutual written consent of
Purchaser and Seller; 
 (b) By Seller or Purchaser, in the event of a material breach by the other of any representation, warranty or
agreement contained herein (other than a breach of a representation or warranty contained in Section 4.15 as to which Purchaser’s sole remedy shall be to exclude, in its sole and absolute discretion, any loan or loans from the
Purchased Loans and, as a result, Purchaser shall have no obligation hereunder to purchase such loan or loans) which is not cured or cannot be cured within thirty (30) calendar days after written notice of such breach has been delivered to the
breaching party; provided, however, that termination pursuant to this Section 9.1(b) shall not relieve the breaching party of liability for such breach or otherwise; 

(c) Notwithstanding any other provision of this Agreement, by Seller or Purchaser, in the event that the Closing has not occurred by
April 2, 2016 unless the failure to so consummate by such time is due to a breach of this Agreement by the party seeking to terminate; or 

(d) By Seller or Purchaser at any time after the denial or revocation of any Regulatory Approval, unless such denial or revocation was caused
by the failure of the party seeking to terminate to act in a timely manner with respect to such Regulatory Approval or such party’s gross negligence or willful misconduct or by the breach of this Agreement. 

9.2 Effect of Termination. 

(a) In the event of termination of this Agreement and abandonment of the transactions contemplated hereby pursuant to Section 9.1,
no party hereto (or any of its directors, officers, employees, agents or Affiliates) shall have any liability or further obligation to any other party, except as provided in Section 6.2(b) and Section 9.2(b), and except that
nothing herein will relieve any party from liability for any breach of this Agreement. 
 (b) In the event of termination of this Agreement
by Seller pursuant to Section 9.1(b) or Section 9.1(d), Purchaser shall pay, or cause to be paid, to Seller on the date of such termination $100,000 in immediately available funds. 

(c) In the event of termination of this Agreement by Purchaser pursuant to Section 9.1(b) or Section 9.1(d), Seller
shall pay, or cause to be paid, to Purchaser on the date of such termination $100,000 in immediately available funds. 

  
 31 

 ARTICLE 10 

INDEMNIFICATION 
 10.1
Indemnification. 
 (a) Seller shall indemnify and hold harmless Purchaser and any Affiliate of Purchaser from and against any and all
Losses which such person may suffer, incur or sustain arising out of or attributable to (i) any breach of any representation or warranty made by Seller pursuant to this Agreement; (ii) any breach of any covenant or agreement to be
performed by Seller pursuant to this Agreement; (iii) any third party claim, penalty asserted, legal action or administrative proceeding based upon any action taken or omitted to be taken by Seller prior to the Closing or resulting from any
transaction or event occurring prior to the Closing, relating in any such case to the Branches, the Assets, the Assumed Deposits or the Assumed Contracts; or (iv) any liabilities, obligations or duties of Seller that are not Liabilities but are
related to the Branches, the Assets, the Assumed Deposits or the Assumed Contracts. 
 (b) Purchaser shall indemnify and hold harmless
Seller and any Affiliate of Seller from and against any and all Losses which such person may suffer, incur or sustain arising out of or attributable to (i) any breach of any representation or warranty made by Purchaser pursuant to this
Agreement; (ii) any breach of any covenant or agreement to be performed by Purchaser pursuant to this Agreement; (iii) any third party claim, penalty asserted, legal action or administrative proceeding based upon any action taken or
omitted to be taken by Purchaser or resulting from any transaction or event occurring after the Closing, relating in any such case to the operation of the Branches, the Assets, the Assumed Deposits or the Assumed Contracts; or (iv) any of the
Liabilities assumed by Purchaser at the Closing. 
 (c) To exercise its indemnification rights under this Section 10.1 as the
result of an assertion against it of any claim or potential liability for which indemnification is provided, the party to be indemnified (the “Indemnified Party”) shall promptly notify the party obligated to provide
indemnification (the “Indemnifying Party”) of the assertion of such claim, discovery of any such potential liability or the commencement of any action or proceeding in respect of which indemnity may be sought hereunder.
Notwithstanding the foregoing, notice of any claim for indemnification arising out of a third party lawsuit or other similar legal action shall be made within ten (10) calendar days after the Indemnified Party receives the summons and complaint
or similar documents in connection therewith; provided, however, that a party’s failure to timely give such notice shall not affect its right to indemnification in connection therewith except to the extent the Indemnifying Party is
materially prejudiced as a result of such failure to timely give such notice. The Indemnified Party shall advise the Indemnifying Party of all facts relating to such assertion within the knowledge of the Indemnified Party, and shall afford the
Indemnifying Party the opportunity, at the Indemnifying Party’s sole cost and expense, to defend against such claims for liability. In any such action or proceeding, the Indemnified Party shall have the right to retain its own counsel, but the
fees and expenses of such counsel shall be at its own expense unless the Indemnifying Party and the Indemnified Party mutually agree to the retention of such counsel. 

(d) Notwithstanding any other provision hereof, the rights of the Indemnified Party and the obligations of Indemnifying Party shall be subject
to the following limitations: (i) the Indemnifying Party shall not be obligated to indemnify the Indemnified Party or its Affiliates (or any one of them) unless the claim is submitted within the period of survival set forth in
Section 11.1 hereof; and (ii) the Indemnifying Party shall not be obligated to indemnify the Indemnified Party or its Affiliates (or any one of them) under Section 10.1(a)(i) or Section 10.1(b)(i) unless the
aggregate of all Losses for which Indemnifying Party would be liable exceeds on a cumulative basis $25,000 (the “Deductible”), at which point the Indemnified Party or its Affiliates (or any one of them) shall only be entitled
to indemnification amounts from the Indemnifying Party in excess of the Deductible; and (iii) the Indemnifying Party shall not be 

  
 32 

 
obligated to indemnify the Indemnified Party or its Affiliates (or any one of them) under Section 10.1(a)(i) or Section 10.1(b)(i) for any Losses for which Indemnifying
Party would be obligated to indemnify the Indemnified Party in excess of an amount equal to $500,000; and (iv) the Indemnifying Party shall have no obligations under this Article 10 for any consequential damages the Indemnified
Party may suffer as a result of any demand, claim or lawsuit. 
 ARTICLE 11 

MISCELLANEOUS 
 11.1
Survival. The parties’ respective representations and warranties contained in this Agreement shall survive for a period of twelve (12) months following the Closing, and thereafter neither party may claim any damage for breach
thereof. The covenants contained in this Agreement shall survive the Closing and not expire unless otherwise specifically provided in this Agreement until the end of the time period stated in such covenant. 

11.2 Assignment. Neither this Agreement nor any of the rights, interests or obligations of either party hereunder may be assigned by
either of the parties hereto without the prior written consent of the other party. 
 11.3 Binding Effect. This Agreement and all of
the provisions hereof shall be binding upon and inure to the benefit of the parties hereto and their respective successors and permitted assigns. Except as expressly provided in Section 10.1, the parties hereto intend that nothing in
this Agreement, express or implied, is intended to or shall confer upon any other person, including, without limitation, any employee or former employee of Seller, any legal or equitable right, benefit or remedy of any nature whatsoever, including
without limitation, any rights of employment or benefits for any specified period, under or by reason of this Agreement. 
 11.4 Public
Notice. From and after the date hereof until the Closing Date, neither Purchaser nor Seller shall directly or indirectly, make, or cause to be made, any press release for general circulation, public announcement or disclosure or issue any notice
or communication generally to employees with respect to any of the transactions contemplated hereby without the prior consent of the other party, which consent shall not be unreasonably withheld or delayed. Consent shall be deemed granted by the
party from which it is sought unless such party objects within two (2) Business Days after receipt of the proposed press release or other announcement from the party requesting consent. Seller and Purchaser shall cooperate reasonably to produce
public announcements to be released simultaneously within two (2) calendar days after the date of this Agreement. Nothing herein shall limit the right of Seller’s or Purchaser’s parent, after the initial press release regarding the
transaction, to refer to this transaction in any document required to be filed with the Securities and Exchange Commission. Nothing in this Agreement shall limit the right of either party to make any disclosure required by law, subject to the
provisions of Section 6.2(c) or Section 6.2(d). 
 11.5 Notices. All notices or other communications required
or permitted to be given or made hereunder shall be in writing and delivered personally or sent by pre-paid, first class certified or registered mail, return receipt requested, or by facsimile transmission, to the intended recipient thereof at its
address or facsimile number set out below. Any such notice or communication shall be deemed to have been duly given immediately (if given or made in person or by facsimile confirmed by mailing a copy thereof to the recipient in accordance with this
Section 11.5 on the date of such facsimile), or five (5) calendar days after mailing (if given or made by mail), and in proving same it shall be sufficient to show that the envelope containing the same was delivered to the delivery
service and duly addressed, or that receipt of a facsimile was confirmed by the recipient. 

  
 33 

			
	 If to Seller:
  

Atlantic Capital Bank, N.A.
 Terminus 100, Suite 1600

3280 Peachtree Road NE
 Atlanta, Georgia 30305

Attention: Doug Williams
 Facsimile Number: (404)
995-6020
	  	 If to Purchaser:
  

Athens Federal Community Bank, National
 Association

106 Washington Avenue
 Athens, TN 37303

Attention: Jeffrey L. Cunningham
 Facsimile Number: (423)
745-2710

	  
 With copies to:

 
 Troutman Sanders LLP

600 Peachtree Street, N.E., Suite 5200
 Atlanta, Georgia 30308

Attention: James W. Stevens
 Facsimile Number:
(404) 962-6501
	  	  
 With copies to:

 
 Luse Gorman, PC

5335 Wisconsin Avenue, NW, Suite 780
 Washington, DC 20015

Attention: Victor L. Cangelosi
 Facsimile Number: (202)
362-2902

 Either party may change the address to which notices or other communications to such party shall be delivered or mailed by
giving notice thereof to the other party hereto in the manner provided herein. 
 11.6 Governing Law. This Agreement and the legal
relations between the parties shall be governed by and interpreted in accordance with the laws of the State of Tennessee applicable to contracts made and to be performed entirely within the State of Tennessee. 

11.7 Entire Agreement. This Agreement contains the entire understanding of and all agreements between the parties hereto with respect
to the subject matter hereof and supersedes any prior or contemporaneous agreement or understanding, oral or written, pertaining to any such matters which agreements or understandings shall be of no force or effect for any purpose; provided,
however, that the Confidentiality Agreement, dated as of October 9, 2015, shall remain in full force and effect. Following the execution of this Agreement, representatives of Purchaser and Seller may prepare an operating agreement,
conversion plan, or similar document relating to the methods of consummating the transactions contemplated by this Agreement, but no such document shall amend this Agreement or waive any of its provisions unless it (a) explicitly describes a
“waiver” or “amendment” and refers to the particular provision of this Agreement being waived or amended; and (b) is executed in the manner provided in Section 11.9. Unless there is an effective amendment or
waiver under the standards of Section 11.9, the provisions of this Agreement shall prevail if there is any inconsistency between this Agreement and any operating agreement, conversion plan, or similar document relating to the methods of
consummating the transactions contemplated by this Agreement. 
 11.8 Counterparts. This Agreement may be executed in any number of
counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. 
 11.9
Waiver and Amendment. The waiver of any breach of any provision under this Agreement by any party shall not be deemed to be a waiver of any preceding or subsequent breach under this Agreement. No such waiver shall be effective unless in
writing. This Agreement may not be amended or supplemented in any manner except by mutual agreement of the parties and as set forth in a writing signed by the parties hereto or their respective successors in interest. 

11.10 Expenses. Except as specifically provided otherwise in this Agreement, each party shall bear and pay all costs and expenses,
including without limitation brokerage and legal fees, which it 

  
 34 

 
incurs, or which may be incurred on its behalf in connection with the preparation of this Agreement and consummation of the transactions described herein, and the expenses, fees, and costs
necessary for any approvals of the appropriate regulatory authorities. 
 11.11 Severability. If any provision of this Agreement or
the application of any such provision to any person or circumstance shall be held invalid, illegal or unenforceable in any respect by a court of competent jurisdiction, such invalidity, illegality or unenforceability shall not affect any other
provision hereof. 
 11.12 Third Party Beneficiaries. Except as specifically provided in Article 10 with respect to
indemnification, no provision of this Agreement shall be deemed to create any third party beneficiary right in anyone not a party to this Agreement, including any employee or former employee of Seller (including any beneficiary or dependent
thereof). Nothing contained in this Agreement shall be construed to affect or limit any right Purchaser or its Affiliates may have after the Closing with respect to the terms and conditions of employment of any Transferred Employees (including, but
not limited to, provisions of employee benefits different from those provided through the employee benefit plans) or to terminate the employment of a Transferred Employee at any time or to modify the benefits provided to employees through any
employee benefit plan. 
 [SIGNATURE PAGE FOLLOWS] 

  
 35 

 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by their
duly authorized officers as of the date first above written. 
  

			
	SELLER:
	
	ATLANTIC CAPITAL BANK, N.A.
		
	By:	 	 /s/ Douglas L. Williams

	Name:	 	Douglas L. Williams
	Title:	 	Chief Executive Officer
	
	PURCHASER:
	
	ATHENS FEDERAL COMMUNITY BANK, NATIONAL ASSOCIATION
		
	By:	 	 /s/ Jeffrey L. Cunningham

	Name:	 	Jeffrey L. Cunningham
	Title:	 	President and Chief Executive Officer

 Schedule 1.6 

Form of Preliminary Closing Statement 
  

									
	 PURCHASE PRICE:
	  				  			
			
	 AVERAGE OF DEPOSIT LIABILITIES
	  	($	            	) 	  			
			
	 + DEPOSIT PREMIUM-    %
	  				  	$	            	  
			
	 + LOAN VALUE OF PURCHASED LOANS
	  				  			
	 Principal
	  	$	            	  	  			
	 Premium-    %
	  				  			
	 Accrued Interest
	  				  			
	 Unpaid Late Charges
	  				  			
	 Total Value of Purchased Loans
	  				  	$	            	  
			
	 + CASH ON HAND
	  				  	$	            	  
			
	 + REAL PROPERTY, IMPROVEMENTS AND OTHER ASSETS (Schedule 2.1)
	  				  	$	            	  
			
	 = TOTAL PURCHASE PRICE
	  				  	$	            	  
			
	 + NET AMOUNT OF PRORATED ITEMS OWED BY PURCHASER TO SELLER
	  				  	$	            	  
			
	 - DEPOSIT LIABILITIES:
	  				  			
	 Principal
	  	$	            	  	  			
	 Accrued Interest
	  				  			
	 Total Deposit Liabilities
	  				  	($	            	) 
			
	 - NET AMOUNT OF PRORATED ITEMS OWED BY SELLER TO PURCHASER
	  				  	($	            	) 
			
	 = NET AMOUNT OWED BY PURCHASER/SELLER TO SELLER/PURCHASER
	  				  	$	            	  

  

 EXHIBIT A 

BILL OF SALE AND INSTRUMENT OF 

ASSIGNMENT AND ASSUMPTION 

THIS BILL OF SALE AND INSTRUMENT OF ASSIGNMENT AND ASSUMPTION is dated as of
            , 2016, between ATHENS FEDERAL COMMUNITY BANK, NATIONAL ASSOCIATION, a national bank (“Purchaser”) and ATLANTIC CAPITAL BANK, N.A., a
national bank (“Seller”). 
 W I T N E S S E T H: 

WHEREAS, Purchaser and Seller are parties to a certain Purchase and Assumption Agreement, dated as of December 17, 2015 (the
“Purchase and Assumption Agreement”); and 
 WHEREAS, pursuant to the Purchase and Assumption Agreement,
Seller has agreed to sell the Assets to Purchaser, and Purchaser has agreed to purchase the Assets and to assume the Liabilities and Accrued Expenses, as such terms are defined in the Purchase and Assumption Agreement; 

NOW, THEREFORE, in consideration of the foregoing and the mutual covenants and agreements hereinafter set forth, each of Purchaser and
Seller agrees as follows: 
 1. Assignment of Assets. Effective as of the date hereof, Seller does hereby sell, convey and assign
unto Purchaser upon the terms and conditions set forth in the Purchase and Assumption Agreement, all of Seller’s right, title and interest in, to and under the Assets (other than the Real Property) and Purchaser hereby accepts the foregoing
assignment of the Assets (other than the Real Property). 
 2. Assumption of Liabilities and Accrued Expenses. Effective as of the
date hereof, Purchaser does hereby assume, and agrees to timely pay, defend, discharge and perform in accordance with their terms all Liabilities and Accrued Expenses, as such terms are defined in the Purchase and Assumption Agreement. 

3. Governing Law. This Agreement shall be governed by and interpreted in accordance with the laws of the State of Tennessee applicable
to contracts made and to be performed entirely within the State of Tennessee. 
 4. Counterparts. This Agreement may be executed in
one or more counterparts all of which shall together constitute one and the same instrument. 
 [SIGNATURE PAGE FOLLOWS] 

 IN WITNESS WHEREOF, this Agreement has been signed on behalf of each of the parties hereto
as of the day and year first above written. 
  

			
	SELLER:
	
	ATLANTIC CAPITAL BANK, N.A.
		
	By:	 	  

	Name:	 	  

	Title:	 	  

	
	PURCHASER:
	
	 ATHENS FEDERAL COMMUNITY BANK,

            NATIONAL ASSOCIATION

		
	By:	 	  

	Name:	 	Jeffrey L. Cunningham
	Title:	 	President and Chief Executive OfficerExhibit

Exhibit 4.1

AVISTA CORPORATION
TO
CITIBANK, N.A.
As Successor Trustee under
Mortgage and Deed of Trust,
dated as of June 1, 1939
________________________
Fifty-eighth Supplemental Indenture
Providing among other things for a series of bonds designated  
“First Mortgage Bonds, 4.37% Series due 2045” 
Due December 1, 2045
________________________
Dated as of December 1, 2015

FIFTY-EIGHTH SUPPLEMENTAL INDENTURE
THIS INDENTURE, dated as of the 1st day of December, 2015, between AVISTA CORPORATION (formerly known as The Washington Water Power Company), a corporation of the State of Washington, whose post office address is 1411 East Mission Avenue, Spokane, Washington 99202 (the “Company”), and CITIBANK, N.A., formerly First National City Bank (successor by merger to First National City Trust Company, formerly City Bank Farmers Trust Company), a national banking association incorporated and existing under the laws of the United States of America, whose post office address is 388 Greenwich Street, 14th Floor, New York, New York  10013 (the “Trustee”), as Trustee under the Mortgage and Deed of Trust, dated as of June 1, 1939 (the “Original Mortgage”), executed and delivered by the Company to secure the payment of bonds issued or to be issued under and in accordance with the provisions thereof, this indenture (the “Fifty-eighth Supplemental Indenture”) being supplemental to the Original Mortgage, as heretofore supplemented and amended.
WHEREAS pursuant to a written request of the Company made in accordance with Section 103 of the Original Mortgage, Francis M. Pitt (then Individual Trustee under the Original Mortgage, as theretofore supplemented and amended) ceased to be a trustee thereunder on July 23, 1969, and all of his powers as Individual Trustee have devolved upon the Trustee and its successors alone; and
WHEREAS by the Original Mortgage the Company covenanted that it would execute and deliver such further instruments and do such further acts as might be necessary or proper to carry out more effectually the purposes of the Original Mortgage and to make subject to the lien of the Original Mortgage any property thereafter acquired intended to be subject to the lien thereof; and
WHEREAS the Company has heretofore executed and delivered, in addition to the Original Mortgage, the indentures supplemental thereto and amendatory thereof, and has issued the series of bonds, set forth in Exhibit A hereto (the Original Mortgage, as supplemented and amended by the First through Fifty-seventh Supplemental Indentures and, if the context shall so require, as to be supplemented by this Fifty-eighth Supplemental Indenture, being herein sometimes called the “Mortgage”); and
WHEREAS the Original Mortgage and the First through Fifty-sixth Supplemental Indentures have been appropriately filed or recorded in various official records in the States of Washington, Idaho, Montana and Oregon, as set forth in the First through Fifty-seventh Supplemental Indentures and the Instrument of Further Assurance, dated December 15, 2001, hereinafter referred to; and
WHEREAS the Fifty-seventh Supplemental Indenture, dated as of December 1, 2014, has been appropriately filed or recorded in the various official records in the States of Washington, Idaho, Montana and Oregon, as set forth in Exhibit B hereto; and

1

WHEREAS for the purpose of confirming or perfecting the lien of the Mortgage on certain of its properties, the Company has heretofore executed and delivered a Short Form Mortgage and Security Agreement, in multiple counterparts dated as of various dates in 1992, and such instrument has been appropriately filed or recorded in the various official records in the States of Montana and Oregon; and
WHEREAS for the purpose of confirming or perfecting the lien of the Mortgage on certain of its properties, the Company has heretofore executed and delivered an Instrument of Further Assurance dated as of December 15, 2001, and such instrument has been appropriately filed or recorded in the various official records in the States of Washington, Idaho, Montana and Oregon; and
WHEREAS in addition to the property described in the Mortgage the Company has acquired certain other property, rights and interests in property; and
WHEREAS Section 120 of the Original Mortgage, as heretofore amended, provides that, without the consent of any holders of bonds, the Company and the Trustee, at any time and from time to time, may enter into indentures supplemental to the Original Mortgage for various purposes set forth therein, including, without limitation, to cure ambiguities or correct defective or inconsistent provisions or to make other changes therein that shall not adversely affect the interests of the holders of bonds of any series in any material respect or to establish the form or terms of bonds of any series as contemplated by Article II; and
WHEREAS the Company now desires to create a new series of bonds; and
WHEREAS Section 8 of the Original Mortgage, as heretofore amended, provides that the form of each series of bonds (other than the First Series) issued thereunder and of the coupons to be attached to coupon bonds of such series shall be established by Resolution of the Board of Directors of the Company or by Treasurer’s Certificate, or shall be set forth in an indenture supplemental to the Original Mortgage; that the form of such series, as so established, shall specify the descriptive title of the bonds and various other terms thereof; and that such series may also contain such provisions not inconsistent with the provisions of the Mortgage as the Company may, in its discretion, cause to be inserted therein expressing or referring to the terms and conditions upon which such bonds are to be issued and/or secured under the Mortgage; and
WHEREAS the execution and delivery by the Company of this Fifty-eighth Supplemental Indenture and the terms of the Bonds of the Fifty-ninth Series, hereinafter referred to, have been duly authorized by the Board of Directors of the Company by appropriate Resolutions of said Board of Directors, and all things necessary to make this Fifty-eighth Supplemental Indenture a valid, binding and legal instrument have been performed;
NOW, THEREFORE, THIS INDENTURE WITNESSETH:  That the Company, in consideration of the premises and of other good and valuable consideration, the receipt and sufficiency whereof are hereby acknowledged, hereby confirms the estate, title and rights of the Trustee (including, without limitation, the lien of the Mortgage on

2 

the property of the Company subjected thereto, whether now owned or hereafter acquired) held as security for the payment of both the principal of and interest and premium, if any, on the bonds from time to time issued under the Mortgage according to their tenor and effect and the performance of all the provisions of the Mortgage and of such bonds, and, without limiting the generality of the foregoing, hereby confirms the grant, bargain, sale, release, conveyance, assignment, transfer, mortgage, pledge, setting over and confirmation unto the Trustee, contained in the Mortgage, of all the following described properties of the Company, whether now owned or hereafter acquired, namely:
All of the property, real, personal and mixed, of every character and wheresoever situated (except any hereinafter or in the Mortgage expressly excepted) which the Company now owns or, subject to the provisions of Section 87 of the Original Mortgage, may hereafter acquire prior to the satisfaction and discharge of the Mortgage, as fully and completely as if herein or in the Mortgage specifically described, and including (without in anywise limiting or impairing by the enumeration of the same the scope and intent of the foregoing or of any general description contained in Mortgage) all lands, real estate, easements, servitudes, rights of way and leasehold and other interests in real estate; all rights to the use or appropriation of water, flowage rights, water storage rights, flooding rights, and other rights in respect of or relating to water; all plants for the generation of electricity, power houses, dams, dam sites, reservoirs, flumes, raceways, diversion works, head works, waterways, water works, water systems, gas plants, steam heat plants, hot water plants, ice or refrigeration plants, stations, substations, offices, buildings and other works and structures and the equipment thereof and all improvements, extensions and additions thereto; all generators, machinery, engines, turbines, boilers, dynamos, transformers, motors, electric machines, switchboards, regulators, meters, electrical and mechanical appliances, conduits, cables, pipes and mains; all lines and systems for the transmission and distribution of electric current, gas, steam heat or water for any purpose; all towers, mains, pipes, poles, pole lines, conduits, cables, wires, switch racks, insulators, compressors, pumps, fittings, valves and connections; all motor vehicles and automobiles; all tools, implements, apparatus, furniture, stores, supplies and equipment; all franchises (except the Company’s franchise to be a corporation), licenses, permits, rights, powers and privileges; and (except as hereinafter or in the Mortgage expressly excepted) all the right, title and interest of the Company in and to all other property of any kind or nature.
The Company hereby acknowledges that, as of the date of this Fifty-eighth Supplemental Indenture, the real property located in the State of Washington, taken as a whole, that is so conveyed or intended to be so conveyed under the Mortgage is not used principally for agricultural purposes.
The property so conveyed or intended to be so conveyed under the Mortgage shall include, but shall not be limited to, the property set forth in 

3 

Exhibit C hereto, the particular description of which is intended only to aid in the identification thereof and shall not be construed as limiting the force, effect and scope of the foregoing.
TOGETHER WITH all and singular the tenements, hereditaments and appurtenances belonging or in anywise appertaining to the aforesaid property or any part thereof, with the reversion and reversions, remainder and remainders and (subject to the provisions of Section 57 of the Original Mortgage) the tolls, rents, revenues, issues, earnings, income, product and profits thereof, and all the estate, right, title and interest and claim whatsoever, at law as well as in equity, which the Company now has or may hereafter acquire in and to the aforesaid property and franchises and every part and parcel thereof.
THE COMPANY HEREBY CONFIRMS that, subject to the provisions of Section 87 of the Original Mortgage, all the property, rights, and franchises acquired by the Company after the date of the Original Mortgage (except any in the Mortgage expressly excepted) are and shall be as fully embraced within the lien of the Mortgage as if such property, rights and franchises had been owned by the Company at the date of the Original Mortgage and had been specifically described therein.
PROVIDED THAT the following were not and were not intended to be then or now or hereafter granted, bargained, sold, released, conveyed, assigned, transferred, mortgaged, pledged, set over or confirmed under the Mortgage and were, are and shall be expressly excepted from the lien and operation of the Mortgage namely:  (l) cash, shares of stock and obligations (including bonds, notes and other securities) not hereafter specifically pledged, paid, deposited or delivered under the Mortgage or covenanted so to be; (2) merchandise, equipment, materials or supplies held for the purpose of sale in the usual course of business or for consumption in the operation of any properties of the Company; (3) bills, notes and accounts receivable, and all contracts, leases and operating agreements not specifically pledged under the Mortgage or covenanted so to be; (4) electric energy and other materials or products generated, manufactured, produced or purchased by the Company for sale, distribution or use in the ordinary course of its business; and (5) any property heretofore released pursuant to any provisions of the Mortgage and not heretofore disposed of by the Company; provided, however, that the property and rights expressly excepted from the lien and operation of the Mortgage in the above subdivisions (2) and (3) shall (to the extent permitted by law) cease to be so excepted in the event that the Trustee or a receiver or trustee shall enter upon and take possession of the Mortgaged and Pledged Property in the manner provided in Article XII of the Original Mortgage by reason of the occurrence of a Completed Default as defined in said Article XII.
TO HAVE AND TO HOLD all such properties, real, personal and mixed, granted, bargained, sold, released, conveyed, assigned, transferred, mortgaged, pledged, set over or confirmed by the Company in the Mortgage as aforesaid, or intended so to be, unto the Trustee, and its successors, heirs and assigns forever.
IN TRUST NEVERTHELESS, for the same purposes and upon the same terms, trusts and conditions and subject to and with the same provisos and covenants as

4 

set forth in the Mortgage, this Fifty-eighth Supplemental Indenture being supplemental to the Mortgage.
AND IT IS HEREBY FURTHER CONFIRMED by the Company that all the terms, conditions, provisos, covenants and provisions contained in the Mortgage shall affect and apply to the property in the Mortgage described and conveyed, and to the estates, rights, obligations and duties of the Company and the Trustee and the beneficiaries of the trust with respect to said property, and to the Trustee and its successors in the trust, in the same manner and with the same effect as if the said property had been owned by the Company at the time of the execution of the Original Mortgage, and had been specifically and at length described in and conveyed to said Trustee by the Original Mortgage as a part of the property therein stated to be conveyed.
The Company further covenants and agrees to and with the Trustee and its successor or successors in such trust under the Mortgage, as follows:
ARTICLE I 
 
Fifty-ninth Series of Bonds
SECTION 1.  (I)    There shall be a series of bonds designated “First Mortgage Bonds, 4.37% Series due 2045” (herein sometimes referred to as the “Bonds of the Fifty-ninth Series”), each of which shall also bear the descriptive title First Mortgage Bond and the form thereof is set forth on Exhibit D hereto.  The Bonds of the Fifty-ninth Series shall be issued as fully registered bonds in denominations of One Thousand Dollars and, at the option of the Company, any amount in excess thereof (the exercise of such option to be evidenced by the execution and delivery thereof) and shall be dated as in Section 10 of the Original Mortgage provided.
(II)    The Bonds of the Fifty-ninth Series shall have the following terms and characteristics:
(a)    the Bonds of the Fifty-ninth Series shall be limited in aggregate principal amount to $100,000,000 (except for Bonds of such series authenticated and delivered upon transfer of or in exchange for, or in lieu of, other Bonds of such series);
(b)    the principal of Bonds of the Fifty-ninth Series shall (unless theretofore paid) be payable on the Stated Maturity Date (as hereinafter defined);
(c)    the Bonds of the Fifty-ninth Series shall bear interest at the rate of four and thirty-seven one hundredths percentum (4.37%) per annum; interest on such Bonds shall accrue from and including December 16, 2015, except as otherwise provided in the form of bond attached hereto as Exhibit D; interest on such Bonds shall be payable on each Interest Payment Date and at Maturity (as each of such terms is hereinafter defined); and interest on such Bonds during any period for which payment is made shall be computed on the basis of a 360-day year consisting of twelve 30-days months;

5 

(d)    the principal of and premium, if any, and interest on each Bond of the Fifty-ninth Series payable at Maturity shall be payable upon presentation thereof at the office or agency of the Company in the Borough of Manhattan, The City of New York, in such coin or currency as at the time of payment is legal tender for public and private debts.  The interest on each Bond of the Fifty-ninth Series (other than interest payable at Maturity) shall be payable by check, in similar coin or currency, mailed to the registered owner thereof as of the close of business on the Record Date (as hereinafter defined) next preceding each Interest Payment Date; provided, however, that if such registered owner shall be a securities depositary, such payment may be made by such other means in lieu of check as shall be agreed upon by the Company, the Trustee and such registered owner; and, provided, further, that, so long as any Bond of the Fifty-ninth Series shall be held by (i) the original purchaser thereof under the Bond Purchase Agreement (as hereinafter defined) or (ii) any other Institutional Investor (as hereinafter defined) that (A) is the direct or indirect transferee of such Bond from such original purchaser and (B) has made the same agreement relating to such Bond as such original purchaser made in Section 8.2 of the Bond Purchase Agreement, payment of principal of and premium, if any, and interest on such Bond of the Fifty-ninth Series shall be payable in the manner specified in the Bond Purchase Agreement.
(e)    (i)    Prior to the Par Call Date (as hereinafter defined), the Bonds of the Fifty-ninth Series shall be redeemable in whole at any time, or in part from time to time, at the option of the Company at a redemption price equal to the greater of
(A)    100% of the principal amount of the Bonds being redeemed, and
(B)    the sum of the present values of the remaining scheduled payments of principal of and interest (not including any portion of any scheduled payment of interest which accrued prior to the redemption date) on the Bonds being redeemed discounted to the date of redemption on a semiannual basis (assuming a 360-day year consisting of twelve 30-day months) at a discount rate equal to the Treasury Yield (as hereinafter defined) plus 50 basis points,
plus, in the case of either (A) or (B) above, whichever is applicable, accrued interest on such Bonds to the date of redemption.
(ii)    On or after the Par Call Date, the Bonds of the Fifty-ninth Series shall be redeemable in whole at any time, or in part from time to time, at the option of the Company at a redemption price equal to 100% of the principal amount of the Bonds being redeemed plus accrued interest on such Bonds to the date of redemption.
(f)    (i)    “Par Call Date” means June 1, 2045.

6 

(ii)    “Treasury Yield” means, with respect to any redemption of Bonds of the Fifty-ninth Series, the rate per annum equal to the semiannual equivalent yield to maturity of the Comparable Treasury Issue, assuming a price for the Comparable Treasury Issue (expressed as a percentage of its principal amount) equal to the Comparable Treasury Price.  The Treasury Yield shall be calculated as of the third business day preceding the earlier of (A) the date notice of redemption is mailed to holders of Bonds of the Fifty-ninth Series and (B) the date irrevocable arrangements with the Trustee for the mailing of such notice shall have been made, as the case may be (the “Calculation Date”).
(iii)     “Comparable Treasury Issue” means the United States Treasury security selected by an Independent Investment Banker as having a maturity comparable to the remaining term of the Bonds of the Fifty-ninth Series that would be utilized, at the time of selection and in accordance with customary financial practice, in pricing new issues of corporate debt securities of comparable maturity to the remaining term of the Bonds.
(iv)    “Comparable Treasury Price” means (A) the average of the bid and asked prices for the Comparable Treasury Issue (expressed in each case as a percentage of its principal amount) on the Calculation Date, as set forth in the H.15 Daily Update of the Federal Reserve Bank of New York or (B) if such release (or any successor release) is not published or does not contain such prices on such business day, the Reference Treasury Dealer Quotation for the Calculation Date.
(v)    “H.15(519)” means the weekly statistical release entitled “Statistical Release H.15 (519)”, or any successor publication, published by the Board of Governors of the Federal Reserve System.
(vi)    “H.15 Daily Update” means the daily update of H.15(519) available through the worldwide website of the Board of Governors of the Federal Reserve System or any successor site or publication.
(vii)    “Independent Investment Banker” means any independent investment banking institution of national standing appointed by the Company and reasonably acceptable to the Trustee.
(viii)    “Reference Treasury Dealer Quotation” means, with respect to the Reference Treasury Dealer, the average, as determined by the Trustee, of the bid and asked prices for the Comparable Treasury Issue (expressed in each case as a percentage of its principal amount and quoted in writing to the Trustee by such Reference Treasury Dealer at 5:00 p.m. on the Calculation Date).
(ix)    “Reference Treasury Dealer” means a primary U.S. Government securities dealer in New York City appointed by the Company and reasonably acceptable to the Trustee.
(g)    If less than all of the outstanding Bonds of the Fifty-ninth Series are to be redeemed, the principal amount to be redeemed shall be prorated 

7 

among all of the holders of such Bonds in the proportion that their respective holdings bear to the aggregate principal amount of such Bonds outstanding on the date of selection.  The portion of any Bond to be redeemed shall be in the principal amount of $1,000 or an integral multiple thereof and such rounding allocations as may be requisite for this purpose shall be made by the Trustee in its uncontrolled discretion.  The Trustee shall promptly notify the Company in writing of the distinctive numbers of the Bond and the portions thereof so selected for redemption.
(h)    Except as provided in this subsection (II) of Section 1, the Bonds of the Fifty-ninth Series shall not be redeemable prior to the Stated Maturity Date.
(III)    (a)    At the option of the registered owner, any Bonds of the Fifty-ninth Series, upon surrender thereof for cancellation at the office or agency of the Company in the Borough of Manhattan, The City of New York, shall be exchangeable for a like aggregate principal amount of Bonds of the same series of other authorized denominations.
The Bonds of the Fifty-ninth Series shall be transferable, upon the surrender thereof for cancellation, together with a written instrument of transfer in form approved by the registrar duly executed by the registered owner or by his duly authorized attorney, at the office or agency of the Company in the Borough of Manhattan, The City of New York.
Upon any exchange or transfer of Bonds of the Fifty-ninth Series, the Company may make a charge therefor sufficient to reimburse it for any tax or taxes or other governmental charge, as provided in Section 12 of the Original Mortgage, but the Company hereby waives any right to make a charge in addition thereto or any exchange or transfer of Bonds of the Fifty-ninth Series; provided, however, that the Company shall not be required to make any transfer or exchange of any Bonds of the Fifty-ninth Series for a period of 10 days next preceding any selection of such Bonds for redemption, nor shall it be required to make transfers or exchange of any Bonds of the Fifty-ninth Series which shall have been selected for redemption in whole or in part.
Unless and until the Company shall have delivered to the Trustee a written order to the contrary, the Bonds of the Fifty-ninth Series shall bear a legend as to restrictions on transfer substantially as set forth below:
The Bonds evidenced hereby have not been registered under the Securities Act of 1933, as amended (the “Securities Act”), and may not be offered, sold, pledged or otherwise transferred in contravention of the Securities Act.
(IV)    For all purposes of this Fifty-eighth Supplemental Indenture, except as otherwise expressly provided or unless the context otherwise requires, the terms listed below, when used with respect to the Bonds of the Fifty-ninth Series, shall have the meanings specified below:

8 

“Bond Purchase Agreement” means the Bond Purchase Agreement, dated October 20, 2015, between the Company and the purchasers listed on Schedule A thereto.
“Business Day” means any day, other than a Saturday or Sunday, which is not a day on which banking institutions or trust companies in The City of New York, New York are generally authorized or required by law, regulation or executive order to remain closed.
“Institutional Investor” means (a) any original purchaser of a Bond of the Fifty-ninth Series, (b) any holder of a Bond of the Fifty-ninth Series holding (together with one or more of its affiliates) more than $1,000,000 in aggregate principal amount of the Bonds of the Fifty-ninth Series, and (c) any bank, trust company, savings and loan association or other financial institution, any pension plan, any investment company, any insurance company, any broker or dealer, or any other similar financial institution or entity, regardless of legal form.
“Interest Payment Date” means June 1 and December 1 in each year, commencing June 1, 2016.
“Maturity” means the date on which the principal of the Bonds of the Fifty-ninth Series becomes due and payable, whether at the Stated Maturity Date, upon redemption or acceleration, or otherwise.
“Record Date”, with respect to any Interest Payment Date, means the close of business on the seventh Business Day preceding such Interest Payment Date.
“Stated Maturity Date” means December 1, 2045.
(V)    Notwithstanding the provisions of Section 106 of the Original Mortgage, as amended, the Company shall not cause any Bonds of the Fifty-ninth Series, or any portion of the principal amount thereof, to be deemed to have been paid as provided in such Section and its obligations in respect thereof to be deemed to be satisfied and discharged prior to the Maturity thereof unless the Company shall deliver to the Trustee either:
(a)    an instrument wherein the Company, notwithstanding the effect of Section 106 of the Original Mortgage, as amended, in respect of such Bonds, shall assume the obligation (which shall be absolute and unconditional) to irrevocably deposit with the Trustee such additional sums of money, if any, or additional government obligations (meeting the requirements of Section 106), if any, or any combination thereof, at such time or times, as shall be necessary, together with the money and/or government obligations theretofore so deposited, to pay when due the principal of and premium, if any, and interest due and to become due on such Bonds or portions thereof, all in accordance with and subject to the provisions of Section 106; provided, however, that such instrument may state that the obligation of the Company to make additional deposits as aforesaid shall be subject to the delivery to the Company by the Trustee of a notice

9 

asserting the deficiency accompanied by an opinion of an independent accountant showing the calculation thereof (which opinion shall be obtained at the expense of the Company); or
(b)    an Opinion of Counsel to the effect that the holders of such Bonds, or portions of the principal amount thereof, will not recognize income, gain or loss for United States federal income tax purposes as a result of the satisfaction and discharge of the Company’s indebtedness in respect thereof and will be subject to United States federal income tax on the same amounts, at the same times and in the same manner as if such satisfaction and discharge had not been effected.
(VI)    Anything in this Fifty-eighth Supplemental Indenture or the Bonds of the Fifty-ninth Series to the contrary notwithstanding, any payment of principal of or premium, if any, or interest on any Bond of the Fifty-ninth Series that is due on a date other than a Business Day shall be made on the next succeeding Business Day without including the additional days elapsed in the computation of the interest payable on such next succeeding Business Day; provided, however, that if the Maturity date of any Bond is a date other than a Business Day, the payment otherwise due at Maturity shall be made on the next succeeding Business Day and shall include the additional days elapsed in the computation of interest payable on such next succeeding Business Day.
(VII)    The Bonds of the Fifty-ninth Series shall have such further terms as are set forth in Exhibit D hereto.  If there shall be a conflict between the terms of the form of bond and the provisions of the Mortgage, the provisions of the Mortgage shall control to the extent permitted by law.
ARTICLE II 
 
Outstanding Bonds
Upon the delivery of this Fifty-eighth Supplemental Indenture, Bonds of the Fifty-ninth Series in an aggregate principal amount of $100,000,000 are to be issued and will be Outstanding, in addition to $1,836,700,000 aggregate principal amount of bonds of prior series Outstanding at the date of delivery of this Fifty-eighth Supplemental Indenture.
ARTICLE III 
 
Prospective Amendments
SECTION 1.  Each initial and subsequent owner of Bonds of the Fifty-ninth Series, by virtue of its acquisition of an interest therein, shall be deemed, without further act, to have consented to:
(I)    the amendment of the generic description of property contained in the primary granting clause in the Original Mortgage to remove therefrom the words “all motor vehicles and automobiles”, the text of such primary granting clause, as so proposed to be amended, being set forth on Exhibit E(1) hereto;

10 

(II)    the amendment of the proviso following the aforesaid primary granting clause that contains a list of categories of property that are excepted from the lien of the Mortgage to add references to various additional categories of property to be so excepted, the text of such proviso, as so proposed to be amended, being set forth in Exhibit E(2) hereto; and
(III)    the amendment of the first paragraph of Section 4 of the Original Mortgage to delete therefrom the words “vehicles, automobiles”, and to make a clarifying change, the text of such paragraph, as so proposed to be amended, being set forth in Exhibit E(3) hereto.
SECTION 2.  Upon the effectiveness of the amendments to the Original Mortgage described in Section 1 above, each granting clause contained in an indenture supplemental to the Original Mortgage that contains the words “all motor vehicles and automobiles”, including without limitation the granting clause contained in this Fifty-eighth Supplemental Indenture, and each proviso listing categories of property that are excepted from the lien of the Mortgage contained in any such supplemental indenture, including without limitation the proviso contained in this Fifty-eighth Supplemental Indenture, shall be deemed to have been amended to remove such words therefrom.
SECTION 3.  Upon the effectiveness of the amendments to the Mortgage described in Sections 1 and 2 above, property of the character of automobiles and other motor vehicles shall no longer be subject to the lien of the Mortgage, and the Trustee shall execute and deliver to or upon the order of the Company such instruments or other documents as, in the judgment of the Company, shall be necessary, desirable or appropriate to evidence that such property is no longer subject to such lien.
SECTION 4.  In connection with the amendments described in Sections 1 and 2 above, the Company represents and warrants that, as of the date of the execution and delivery of this Fifty-eighth Supplemental Indenture, none of its Funded Property consists of property of the character of automobiles or other vehicles and covenants that, on and after such date, no property of the character of automobiles or other vehicles will be included in Property Additions certified as the basis for the authentication and delivery of bonds, the release of property, the withdrawal of cash or any other purpose under the Mortgage.
ARTICLE IV 
 
Miscellaneous Provisions
SECTION 1.  The terms defined in the Original Mortgage shall, for all purposes of this Fifty-eighth Supplemental Indenture, have the meanings specified in the Original Mortgage.
SECTION 2.      The Trustee hereby confirms its acceptance of the trusts in the Original Mortgage declared, provided, created or supplemented and agrees to perform the same upon the terms and conditions in the Original Mortgage set forth, including the following:

11 

The Trustee shall not be responsible in any manner whatsoever for or in respect of the validity or sufficiency of this Fifty-eighth Supplemental Indenture or for or in respect of the recitals contained herein, all of which recitals are made by the Company solely.  Each and every term and condition contained in Article XVI of the Original Mortgage shall apply to and form part of this Fifty-eighth Supplemental Indenture with the same force and effect as if the same were herein set forth in full, with such omissions, variations and insertions, if any, as may be appropriate to make the same conform to the provisions of this Fifty-eighth Supplemental Indenture.
SECTION 3.      Whenever in this Fifty-eighth Supplemental Indenture either of the parties hereto is named or referred to, this shall, subject to the provisions of Articles XV and XVI of the Original Mortgage be deemed to include the successors and assigns of such party, and all the covenants and agreements in this Fifty-eighth Supplemental Indenture contained by or on behalf of the Company, or by or on behalf of the Trustee, or either of them, shall, subject as aforesaid, bind and inure to the respective benefits of the respective successors and assigns of such parties, whether so expressed or not.
SECTION 4.      Nothing in this Fifty-eighth Supplemental Indenture, expressed or implied, is intended, or shall be construed, to confer upon, or to give to, any person, firm or corporation, other than the parties hereto, the holders of the Bonds Outstanding under the Mortgage, any right, remedy or claim under or by reason of this Fifty-eighth Supplemental Indenture or any covenant, condition, stipulation, promise or agreement hereof, and all the covenants, conditions, stipulations, promises and agreements in this Fifty-eighth Supplemental Indenture contained by or on behalf of the Company shall be for the sole and exclusive benefit of the parties hereto, and of the holders of the Bonds Outstanding under the Mortgage.
SECTION 5.      This Fifty-eighth Supplemental Indenture shall be executed in several counterparts, each of which shall be an original and all of which shall constitute but one and the same instrument.
SECTION 6.      The titles of the several Articles of this Fifty-eighth Supplemental Indenture shall not be deemed to be any part thereof.
________________________

12 

IN WITNESS WHEREOF, on the 16th day of December, 2015, AVISTA CORPORATION has caused its corporate name to be hereunto affixed, and this instrument to be signed and sealed by its President or one of its Vice Presidents, and its corporate seal to be attested by its Corporate Secretary or one of its Assistant Corporate Secretaries for and in its behalf, all in The City of Spokane, Washington, as of the day and year first above written; and on the 16th day of December, 2015, CITIBANK, N.A., has caused its corporate name to be hereunto affixed, and this instrument to be signed and sealed by its President or one of its Vice Presidents or one of its Senior Trust Officers or one of its Trust Officers and its corporate seal to be attested by one of its Vice Presidents or one of its Trust Officers, all in The City of New York, New York, as of the day and year first above written.
	
			
	AVISTA CORPORATION

	 
	 
	 

	By:
	/s/ MARK T. THIES

	 
	Name:
	Mark T. Thies

	 
	Title:
	Senior Vice President and
Chief Financial Officer

Attest:
 
	
		
	/s/ SUSAN Y. FLEMING

	Name:
	Susan Y. Fleming

	Title:
	Assistant Corporate Secretary

Executed, sealed and delivered 
by AVISTA CORPORATION 
in the presence of:
	
		
	/s/ RICHARD N. STEVENS

	Name:
	Richard N. Stevens

	 
	 

	 
	 

	/s/ LAUREN C. PENDERGRAFT

	Name:
	Lauren C. Pendergraft

[Signature Page to Supplemental Indenture] 

	
			
	CITIBANK, N.A., AS TRUSTEE

	 
	 
	 

	By:
	/s/ KAREN SCHLUTER

	 
	Name:
	Karen Schluter

	 
	Title:
	Vice President

Attest:
 
	
		
	/s/ DANNY LEE

	Name:
	Danny Lee

	Title:
	Vice President

Executed, sealed and delivered 
by CITIBANK, N.A., 
as trustee, in the presence of:
	
		
	/s/ CIRINO EMANUELE

	Name:
	Cirino Emanuele

	Title:
	Vice President

	 
	 

	 
	 

	/s/ JOHN HANNON

	Name:
	John Hannon

	Title:
	Vice President

[Signature Page to Supplemental Indenture] 

STATE OF WASHINGTON )
) ss.:
COUNTY OF SPOKANE    )
On the 16th day of December, 2015, before me personally appeared Mark T. Thies, to me known to be a Senior Vice President and the Chief Financial Officer of AVISTA CORPORATION, one of the corporations that executed the within and foregoing instrument, and acknowledged said instrument to be the free and voluntary act and deed of said Corporation for the uses and purposes therein mentioned and on oath stated that he was authorized to execute said instrument and that the seal affixed is the corporate seal of said Corporation.
On the 16th day of December, 2015, before me, a Notary Public in and for the State and County aforesaid, personally appeared Mark T. Thies, known to me to be a Vice President of AVISTA CORPORATION, one of the corporations that executed the within and foregoing instrument and acknowledged to me that such Corporation executed the same.
IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal the day and year first above written.
	
	
	/s/ DEBBIE DEUBEL

	Notary Public

	 

	 

	DEBBIE DEUBEL

	Notary Public

	State of Washington

	Commission Expires May 9, 2017

STATE OF NEW YORK    )
) ss.:
COUNTY OF NEW YORK    )
On the 16th day of December, 2015 before me personally appeared Karen Schluter, to me known to be a Vice President of CITIBANK, N.A., one of the corporations that executed the within and foregoing instrument, and acknowledged said instrument to be the free and voluntary act and deed of said Corporation for the uses and purposes therein mentioned and on oath stated that she was authorized to execute said instrument and that the seal affixed is the corporate seal of said Corporation.
On the 16th day of December, 2015, before me, a Notary Public in and for the State and County aforesaid, personally appeared Karen Schluter, known to me to be a Vice President of CITIBANK, N.A., one of the corporations that executed the within and foregoing instrument and acknowledged to me that such Corporation executed the same.
IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal the day and year first above written.
	
	
	/s/ NOREEN SANTOS

	Notary Public

	State of New York

	Commission Expires September 27, 2018

EXHIBIT A
MORTGAGE, SUPPLEMENTAL INDENTURES 
AND SERIES OF BONDS
	
							
	MORTGAGE OR SUPPLEMENTAL INDENTURE
	DATED AS OF
	SERIES
	PRINCIPAL AMOUNT ISSUED
	PRINCIPAL AMOUNT OUTSTANDING

	NO.
	DESIGNATION

	Original
	June 1, 1939
	1
	3-1/2% Series due 1964
	$22,000,000
	None

	First
	October 1, 1952
	2
	3-1/2% Series due 1982
(changed to 3-3/4% in Twelfth Supplemental Indenture)
	30,000,000
	None

	Second
	May 1, 1953
	3
	3-7/8% Series due 1983
	10,000,000
	None

	Third
	December 1, 1955
	 
	None
	 
	 

	Fourth
	March 15, 1957
	 
	None
	 
	 

	Fifth
	July 1, 1957
	4
	4-7/8% Series due 1987
	30,000,000
	None

	Sixth
	January 1, 1958
	5
	4-1/8% Series due 1988
	20,000,000
	None

	Seventh
	August 1, 1958
	6
	4-3/8% Series due 1988
	15,000,000
	None

	Eighth
	January 1, 1959
	7
	4-3/4% Series due 1989
	15,000,000
	None

	Ninth
	January 1, 1960
	8
	5-3/8% Series due 1990
	10,000,000
	None

	Tenth
	April 1, 1964
	9
	4-5/8% Series due 1994
	30,000,000
	None

	Eleventh
	March 1, 1965
	10
	4-5/8% Series due 1995
	10,000,000
	None

	Twelfth
	May 1, 1966
	 
	None
	 
	 

	Thirteenth
	August 1, 1966
	11
	6    % Series due 1996
	20,000,000
	None

	Fourteenth
	April 1, 1970
	12
	9-1/4% Series due 2000
	20,000,000
	None

	Fifteenth
	May 1, 1973
	13
	7-7/8% Series due 2003
	20,000,000
	None

	Sixteenth
	February 1, 1975
	14
	9-3/8% Series due 2005
	25,000,000
	None

	Seventeenth
	November 1, 1976
	15
	8-3/4% Series due 2006
	30,000,000
	None

	Eighteenth
	June 1, 1980
	 
	None
	 
	 

	Nineteenth
	January 1, 1981
	16
	14-1/8% Series due 1991
	40,000,000
	None

A-1

	
							
	MORTGAGE OR SUPPLEMENTAL INDENTURE
	DATED AS OF
	SERIES
	PRINCIPAL AMOUNT ISSUED
	PRINCIPAL AMOUNT OUTSTANDING

	NO.
	DESIGNATION

	Twentieth
	August 1, 1982
	17
	15-3/4% Series due 1990-1992
	60,000,000
	None

	Twenty-First
	September 1, 1983
	18
	13-1/2% Series due 2013
	60,000,000
	None

	Twenty-Second
	March 1, 1984
	19
	13-1/4% Series due 1994
	60,000,000
	None

	Twenty-Third
	December 1, 1986
	20
	9-1/4% Series due 2016
	80,000,000
	None

	Twenty-Fourth
	January 1, 1988
	21
	10-3/8% Series due 2018
	50,000,000
	None

	Twenty-Fifth
	October 1, 1989
	22 
 
23
	7-1/8% Series due 2013 
 
7-2/5% Series due 2016
	66,700,000 
 
17,000,000
	None 
 
None

	Twenty-Sixth
	April 1, 1993
	24
	Secured Medium-Term Notes, Series A ($250,000,000 authorized)
	250,000,000
	36,000,000

	Twenty-Seventh
	January 1, 1994
	25
	Secured Medium-Term Notes, Series B ($250,000,000 authorized)
	161,000,000
	None

	Twenty-Eighth
	September 1, 2001
	26
	Collateral Series due 2002
	220,000,000
	None

	Twenty-Ninth
	December 1, 2001
	27
	7.75% Series due 2007
	150,000,000
	None

	Thirtieth
	May 1, 2002
	28
	Collateral Series due 2003
	225,000,000
	None

	Thirty-first
	May 1, 2003
	29
	Collateral Series due 2004
	245,000,000
	None

	Thirty-second
	September 1, 2003
	30
	6.125% Series due 2013
	45,000,000
	None

	Thirty-third
	May 1, 2004
	31
	Collateral Series due 2005
	350,000,000
	None

	Thirty-fourth
	November 1, 2004
	32
	5.45% Series due 2019
	90,000,000
	90,000,000

	Thirty-fifth
	December 1, 2004
	33
	Collateral Series 2004A
	88,850,000
	25,000,000

	Thirty-sixth
	December 1, 2004
	34 
 
35
	Collateral Series 2004B 
 
Collateral Series 2004C
	66,700,000 
 
17,000,000
	None 
 
None

	Thirty-seventh
	December 1, 2004
	36
	Collateral Series 2004D
	350,000,000
	None

	Thirty-eighth
	May 1, 2005
	37
	Collateral Series 2005B
	66,700,000
	None

	 
	 
	38
	Collateral Series 2005C
	17,000,000
	None

	Thirty-ninth
	November 1, 2005
	39
	6.25% Series due 2035
	100,000,000 
	100,000,000

A-2

	
							
	MORTGAGE OR SUPPLEMENTAL INDENTURE
	DATED AS OF
	SERIES
	PRINCIPAL AMOUNT ISSUED
	PRINCIPAL AMOUNT OUTSTANDING

	NO.
	DESIGNATION

	 
	 
	 
	 
	50,000,000
	50,000,000

	Fortieth
	April 1, 2006
	40
	Collateral Series due 2011
	320,000,000
	None

	Forty-first
	December 1, 2006
	41
	5.70% Series due 2037
	150,000,000
	150,000,000

	Forty-second
	April 1, 2008
	42
	5.95% Series due 2018
	250,000,000
	250,000,000

	Forty-third
	November 1, 2008
	43
	Collateral Series 2008A
	200,000,000
	None

	Forty-fourth
	December 1, 2008
	44
	7.25% Series due 2013
	30,000,000
	None

	Forty-fifth
	December 1, 2008
	45
	Collateral Series 2008B
	17,000,000
	None

	Forty-sixth
	September 1, 2009
	46
	5.125% Series due 2022
	250,000,000
	250,000,000

	Forty-seventh
	November 1, 2009
	47
	Collateral Series 2009A
	75,000,000
	None

	Forty-eighth
	December 1, 2010
	48
49
	Collateral Series 2010A
Collateral Series 2010B
	66,700,000
17,000,000
	66,700,000
17,000,000

	Forty-ninth
	December 1, 2010
	50
51
	3.89% Series due 2020
5.55% Series due 2040
	52,000,000
35,000,000
	52,000,000
35,000,000

	Fiftieth
	December 1, 2010
	52
	1.68% Series due 2013
	50,000,000
	None

	Fifty-first
	February 1, 2011
	53
	Collateral Series 2011A
	400,000,000
	None

	Fifty-second
	August 1, 2011
	 
	None
	 
	 

	Fifty-third
	December 1, 2011
	54
	4.45% Series due 2041
	85,000,000
	85,000,000

	Fifty-fourth
	November 1, 2012
	55
	4.23% Series due 2047
	80,000,000
	80,000,000

	Fifty-fifth
	August 1, 2013
	56
	Collateral Series 2013A
	90,000,000
	90,000,000

	Fifty-sixth
	April 1, 2014
	57
	Collateral Series 2014A
	400,000,000
	400,000,000

	Fifty-seventh
	December 1, 2014
	58
	4.11% Series due 2044
	$60,000,000
	$60,000,000

	TOTAL OUTSTANDING
	$1,836,700,000

A-3

EXHIBIT B
FILING AND RECORDING OF 
FIFTY-SEVENTH SUPPLEMENTAL INDENTURE

	
									
	FILING IN STATE OFFICES

	 

	 
	 
	 
	Financing Statement

	State
	Office of
	Date
	Document Number

	Washington
	Secretary of State
	1/14/15
	2015-014-3629-3

	Idaho
	Secretary of State
	1/12/15
	B 2015-1150671-0

	Montana
	Secretary of State
	1/12/15
	150112676220

	Oregon
	Secretary of State
	1/13/2015
	90340573

	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 

	RECORDING IN COUNTY OFFICES

	 
	 
	 

	 
	 
	Real Estate Mortgage Records

	 
	 
	 

	 
	 
	 
	Document
	 
	 

	County
	Office of
	Date
	Number
	Book
	Page

	Washington
	 
	 
	 
	 
	 

	Adams
	Auditor
	1/6/15
	309037
	N/A
	N/A

	Asotin
	Auditor
	1/6/15
	343454
	N/A
	N/A

	Benton
	Auditor
	1/8/15
	2015-000555
	N/A
	N/A

	Douglas
	Auditor
	1/7/15
	3183162
	N/A
	N/A

	Ferry
	Auditor
	1/6/15
	0284467
	N/A
	N/A

	Franklin
	Auditor
	1/6/15
	1823730
	N/A
	N/A

	Garfield
	Auditor
	1/6/15
	20150011
	N/A
	N/A

	Grant
	Auditor
	1/14/15
	1342617
	N/A
	N/A

	Klickitat
	Auditor
	1/8/15
	1111298
	N/A
	N/A

	Lewis
	Auditor
	1/7/15
	3424954
	N/A
	N/A

	Lincoln
	Auditor
	1/6/15
	2015 0468782
	110
	1610

	Pend Oreille
	Auditor
	1/6/15
	20150320447
	N/A
	N/A

	Skamania
	Auditor
	1/8/15
	2015000032
	N/A
	N/A

	Spokane
	Auditor
	1/6/15
	6362994
	N/A
	N/A

	Stevens
	Auditor
	1/7/15
	2015 0000114
	N/A
	N/A

	Thurston
	Auditor
	1/7/15
	4424405
	N/A
	N/A

	Whitman
	Auditor
	1/6/15
	727437
	N/A
	N/A

	 
	 
	 
	 
	 
	 

	Idaho
	 
	 
	 
	 
	 

	Benewah
	Recorder
	1/6/15
	270283
	N/A
	N/A

	Bonner
	Recorder
	1/6/15
	868667
	N/A
	N/A

	Boundary
	Recorder
	9/17/15
	265016
	N/A
	N/A

	Clearwater
	Recorder
	1/6/15
	225758
	N/A
	N/A

	Idaho
	Recorder
	1/6/15
	497746
	N/A
	N/A

	Kootenai
	Recorder
	1/8/15
	2482653000
	N/A
	N/A

	Latah
	Recorder
	1/6/15
	569806
	N/A
	N/A

B-1

	
							
	RECORDING IN COUNTY OFFICES

	 
	 
	 

	 
	 
	Real Estate Mortgage Records

	 
	 
	 

	 
	 
	 
	Document
	 
	 

	County
	Office of
	Date
	Number
	Book
	Page

	Idaho (cont.)
	 
	 
	 
	 
	 

	Lewis
	Recorder
	1/6/15
	143042
	N/A
	N/A

	Nez Perce
	Recorder
	1/6/15
	827413
	N/A
	N/A

	Shoshone
	Recorder
	1/6/15
	479783
	N/A
	N/A

	 
	 
	 
	 
	 
	 

	Montana
	 
	 
	 
	 
	 

	Big Horn
	Clerk & Recorder
	1/26/15
	349957
	134
	555

	Broadwater
	Clerk & Recorder
	1/8/15
	172336
	160
	290

	Golden Valley
	Clerk & Recorder
	1/12/15
	82010
	M
	17491

	Meagher
	Clerk & Recorder
	1/8/15
	142007
	N/A
	N/A

	Mineral
	Clerk & Recorder
	1/12/15
	113340
	N/A
	N/A

	Rosebud
	Clerk & Recorder
	3/3/15
	0114306
	145MG
	871-900

	Sanders
	Clerk & Recorder
	1/7/15
	81749
	N/A
	N/A

	Stillwater
	Clerk & Recorder
	1/8/15
	360696
	N/A
	N/A

	Treasure
	Clerk & Recorder
	1/7/15
	82725
	21
	471

	Wheatland
	Clerk & Recorder
	1/7/15
	108413
	M
	25930-25959

	Yellowstone
	Clerk & Recorder
	1/8/15
	3728449
	N/A
	N/A

	 
	 
	 
	 
	 
	 

	Oregon
	 
	 
	 
	 
	 

	Douglas
	Recorder
	1/7/15
	2015-000202
	N/A
	N/A

	Jackson
	Recorder
	1/8/15
	2015-000537
	N/A
	N/A

	Josephine
	Recorder
	1/9/15
	2015-000266
	N/A
	N/A

	Klamath
	Recorder
	1/8/15
	2015-000182
	N/A
	N/A

	Morrow
	Recorder
	1/9/15
	2015-35354
	N/A
	N/A

	Union
	Recorder
	1/7/15
	20150039
	N/A
	N/A

	Wallowa
	Recorder
	1/7/15
	00072216
	N/A
	N/A

B-2

EXHIBIT C
PROPERTY ADDITIONS
First
ADDITIONAL UNDEVELOPED OR ONLY PARTIALLY DEVELOPED POWER SITES of the Company, including all dams, reservoirs, flumes, raceways, diversion works, head works, waterways, buildings and other works and structures forming a part of or appertaining to said sites, or any of them, or used or enjoyed or capable of being used or enjoyed in conjunction therewith, and the generating plants to be constructed on said sites, or any of them, including all prior houses, buildings and other works and structures forming part of or appertaining to said generating plants, or any of them, and all fuel delivery equipment, including gas mains, services, meters, regulatory and general equipment, poles, wires, transformers, switches and all other property, real, personal and mixed, forming part of or used, occupied or enjoyed in connection with or in anywise appertaining to said generating plants, and all other of the Company’s real estate and interests therein, rights in respect of or relating to fuel, water, machinery, equipment, appurtenances, supplies, franchise, licenses, permits and other rights and other property forming a part of or appertaining to said sites, or any of them, or used or enjoyed or capable of being used or enjoyed in conjunction therewith, including the following, situated in the State of Idaho:
		
	(1)
	Kootenai County, Idaho: “Greensferry”; Property No. I-K-262; Grantor: JHM Investments, LLC; Lot 2, Block 1, ENERGY ADDITION TO RATHDRUM, and That portion of the NW1/4 of Section 11, Township 51 North, Range 5 West, and Lots 1 through 13, Plat 1, Greenacres Irrigation District being situated in the East 1⁄2 of Section 2, Township 51 North, Range 5 West and Those portions of the SW1/4 and the W1/2 of the SE1/4 of Section 2, Township 51 North, Range 5 West, Boise Meridian, Kootenai County, Idaho which lies Southeasterly of a line measured at right angles 1,000.0 feet distant Southeasterly from and parallel to the center line of the right of way of the North Pacific Railway Company.

Second

THE ADDITIONAL ELECTRIC SUBSTATIONS AND SUBSTATION SITES of the Company, in the State of Washington, including all buildings, structures, towers, poles, equipment, appliances and devices for transforming, converting and distributing electric energy, and the lands of the Company on which the same are situated and all of the Company’s real estate and interests therein, machinery, equipment, appliances, devices, appurtenances and supplies, franchises, permits and other rights and other property forming a part of said substations or any of them, or used or enjoyed or capable of being used or enjoyed in connection with any thereof, including, but not limited to, the following situated in the State of Washington, to wit:

		
	(1)
	Lincoln County, Washington: “Harrington Substation”; Property No. WA-22-    038; Grantor: City of Harrington; A parcel of land lying in the NE1/4NW1/4 of Section 22, Township 23 North, Range 36 East, Situate in Lincoln County, Washington.

C-1

Third

BUSINESS OFFICE(S) AND/OR MISCELLANEOUS REAL ESTATE, in the State of Washington, to wit:

		
	(1)
	Spokane County, Washington: “Ross Park Expansion”; Property No. WA-32-004; Grantor: Eric W. Houchin; Lot 12, Hole’s Subdivision of Block 13 Ross Park, According to plat recorded in Volume “D” of plats, Page 78, Situate in the City of Spokane, County of Spokane, State of Washington

		
	(2)
	Spokane County, Washington: “Ross Park Expansion”; Property No. WA-32-004; Grantor: David K. and Perry J. Gomes; Lot 8, Hole’s Subdivision of Block 13 Ross Park, According to plat recorded in Volume “D” of plats, Page 78, Situate in the City of Spokane, County of Spokane, State of Washington

		
	(3)
	Spokane County, Washington: “Ross Park Expansion”; Property No. WA-32-004; Grantor: Estate of Brett P. Chapman, deceased and Kasi L. Chapman; Lot 4, Hole’s Subdivision of Block 13 Ross Park, According to plat recorded in Volume “D” of plats, Page 78, Situate in the City of Spokane, County of Spokane, Washington

		
	(4)
	Spokane County, Washington: “Ross Park Expansion”; Property No. WA-32-004; Grantor: Robert B. and Stefanie E. Pettit; Lot 6, Hole’s Subdivision of Block 13 Ross Park, According to plat recorded in Volume “D” of plats, Page 78, Situate in the City of Spokane, County of Spokane, Washington, Except the East 12 Feet

		
	(5)
	Spokane County, Washington: “Ross Park Expansion”; Property No. WA-32-004; Grantor: Vicki L. Codd and Janet L. Mogensen and Bonnie J. Segar; Lot 1, Hole’s Subdivision of Block 13 Ross Park, According to plat recorded in Volume “D” of plats, Page 78, Situate in the City of Spokane, County of Spokane, Washington

		
	(6)
	Spokane County, Washington: “Ross Park Expansion”; Property No. WA-32-004; Grantor: Douglas E. Griffin; Lot 7, Hole’s Subdivision of Block 13 Ross Park, According to plat recorded in Volume “D” of plats, Page 78, Situate in the City of Spokane, County of Spokane, Washington

		
	(7)
	Spokane County Washington: “Dollar Road Expansion”; Property No. WA 32-010; Grantor: Randy L. Zutter; The North 65 Feet of Tract 204 of Orchard Avenue Addition, as per plat thereof recorded in Volume “M” of plats, Page 24, Situate in the City of Spokane Valley, County of Spokane, State of Washington

		
	(8)
	Spokane County, Washington: “Ross Park Expansion”; Property No. WA-32-004; Grantor: Laura M. Dale: Lot 7 of Wilkinson’s Subdivision of part of Block 12 of Ross Park Addition, as per plat thereof recorded in Volume 3 of plats, Page 63, Situate in the City of Spokane, County of Spokane, State of Washington. 

		
	(9)
	Spokane County, Washington: “Ross Park Expansion”; Property No. WA-32-004; Grantor: Kenneth R. Hill: Lot 6 of Wilkinson Subdivision of Part of Block 12 of Ross 

C-2

Park Addition as per plat thereof Recorded in Volume 3 of plats, Page 63. Situate in the City of Spokane, County of Spokane, State of Washington. 

		
	(10)
	Spokane County, Washington: “Dollar Road Expansion”; Property No. WA-32-010; Grantor: Jason Pace and Michell D. Pace: Tract 208, Orchard Avenue, according to plat recorded in Volume “M” of plats, page 24, in the City of Spokane Valley, Spokane County, Washington.

		
	(11)
	Spokane County, Washington: “Dollar Road Expansion”; Property No. WA-32-010; Grantor: Lawrence J. Jerrow: The South 50.002 feet of Tract 203,Orchard Avenue, According to plat recorded in Volume “M” of plats, page 24, In the City of Spokane Valley, Spokane County, Washington

		
	(12)
	Spokane County, Washington: “AAA Building”; Property No. WA-32-037.1; Grantor: AAA Washington: Lots 1-12, Inclusive, Block 15 and Lot 7 and all of Lot 8, Block 16, Cannon’s Addition according to plat recorded in Volume “B” of plats, page 52. 

		
	(13)
	Spokane County, Washington: “Dollar Road Expansion”; Property No. WA-32-010; Grantor: Constantin Samoilov: That portion of Tracts 15 and 16 of First Addition to Orchard Park, according to plat recorded in Volume “E” of plats at page 47, in the City of Spokane Valley, Spokane County, Washington.

		
	(14)
	Spokane County, Washington: “New Deer Park Service Center”;Property No. WA-32-    007; Grantor: Deer Park Country Club; A portion of the SE1/4SE1/4 of Section 36, Township 29 North, Range 42 East, Situated in the City of Deer Park, County of Spokane, State of Washington. 

		
	(15)
	Spokane County, Washington: “Dollar Road Expansion”; Property No. WA-32-010; Grantor: Jonathan Heyn; Tract 204, Orchard Avenue, as per plat recorded in Volume “M” of plats. Page 24, Records of Spokane County, Except the North 65 Feet thereof, Situate in the City of Spokane Valley, County of Spokane, State of Washington.

		
	(16)
	Spokane County, Washington: “Dollar Road Expansion”; Property No, WA-32-010; Grantor: Kreig L. and Bonnie L. Knutson; The North 82.38 feet of Tract 203, Orchard Avenue Addition, as per plat recorded in Volume “M” of plats, Page 24, in the City of Spokane Valley, Spokane County, Washington.

		
	(17)
	Spokane County, Washington: “Dollar Road Expansion”; Property No. WA-32-010; Grantor: Alice J. Munson; Tract 207 of Orchard Avenue Addition, as per plat recorded in volume M of plats, pages 24 and 25, situate in the City of Spokane Valley, County of Spokane, State of Washington.

		
	(18)
	Stevens County, Washington: “Long Lake HED”; Property No, WA-33-257; Grantor: Bradley K. and Judy J. Ritz and Daniel W. Davis; Government Lot 3 of Section 14, Township 27 North, Range 40 East, W.M., in Stevens County Washington.

		
	(19)
	Stevens County, Washington: “Long Lake HED”; Property No. WA-33-257; Grantor: Jeanine A. Pipella and Raymond A. Pipella;Tract 13, Sunset Recreational Tracts, 

C-3

according to plat thereof recorded August 20,1968, under Auditor’s file no. 391012, in Stevens County, Washington.

Fourth

ADDITIONAL PROTECTION, MITIGATION AND ENHANCEMENT PROPERTY of the Company, real, personal, or mixed, acquired, constructed and/or installed in, on, under and/or proximate to the Company’s hydroelectric generation developments for the purpose of protecting and/or enhancing wildlife (including fish and aquatic life), botanical life and/or wetlands, and/or mitigating any harm or damage thereto, and all other property, real, personal or mixed, used or enjoyed or capable of being used or enjoyed in conjunction therewith, including, but not limited to, the following in the State of Montana to wit:

		
	(1)
	Sanders County, Montana: “Cabinet Gorge Mitigation”; Property No. MT-35-251; Grantor: Judith Hutchins; That part of the NE1/4SE1/4 and Lot 6, lying on the Northerly side of the described line and South of the Right of Way of State Highway No. 10 alternate, also that part of Lot 1, Section 26, Township 27 North, Range 34 West, P.M.M., Sanders County, Montana, Lying North of the described line and South of the Right of Way of State Highway No. 10 Alternate

C-4

EXHIBIT D
(Form of Bond)
PPN: _______
AVISTA CORPORATION
First Mortgage Bond, 4.37% Series due 2045
	
		
	REGISTERED
	REGISTERED

	 
	 

	NO. _________________
	$_______________

	 
	 

	 
	 

AVISTA CORPORATION, a corporation of the State of Washington (hereinafter called the Company), for value received, hereby promises to pay to
, or registered assigns, on December 1, 2045 (the “Stated Maturity Date”)
DOLLARS
and to pay the registered owner hereof interest thereon semi-annually in arrears on June 1 and December 1 in each year (each such date, an “Interest Payment Date”), commencing June 1, 2016, and at Maturity (as hereinafter defined), at the rate of four and thirty-seven one hundredths percentum (4.37%) per annum computed on the basis of a 360-day year consisting of twelve 30-day months, until the Company’s obligation with respect to the payment of such principal shall have been discharged.  This bond shall bear interest from December 16, 2015 or from the most recent Interest Payment Date on or prior to the date of this bond to which interest on the bonds of this series has been paid.
	
			
	Dated:
	AVISTA CORPORATION

	 
	 
	 

	 
	By:
	 

	 
	Name:
	 

	 
	Title:
	 

	
		
	Attest:
	 

	Name:
	 

	Title:
	 

TRUSTEE’S CERTIFICATE
This bond is one of the bonds of the series herein designated, described or provided for in the within-mentioned Mortgage.
	
		
	CITIBANK, N.A.

	Trustee

	 
	 

	By:
	 

	 
	Authorized Signatory

D-1

The principal of and premium, if any, and interest on this bond payable at Maturity shall be payable upon presentation hereof at the office or agency of the Company in the Borough of Manhattan, The City of New York, in such coin or currency of the United States of America as at the time of payment is legal tender for public and private debts.  The interest on this bond (other than interest payable at Maturity) shall be paid by check, in the similar coin or currency, mailed to the registered owner hereof as of the close of business on the seventh Business Day preceding each Interest Payment Date (each such date being herein called a “Record Date”); provided, however, that if such registered owner shall be a securities depositary, such payment shall be made by such other means in lieu of check as shall be agreed upon by the Company, the Trustee and such registered owner; and provided further that, so long as this Bond shall be held by (a) the original purchaser hereof under the Bond Purchase Agreement (as defined in the Fifty-eighth Supplemental Indenture referred to below) or (b) any other Institutional Investor (as defined in such Supplemental Indenture) that (i) is the direct or indirect transferee of this bond from such original purchaser and (ii) has made the same agreement relating to this bond as such original purchaser made in Section 8.2 of the Bond Purchase Agreement, payment of principal of and premium, if any, and interest on this Bond shall be payable in the manner specified in the Bond Purchase Agreement.  Interest payable at Maturity shall be paid to the person to whom principal shall be paid.  As used herein, the term “Maturity” shall mean the date on which the principal of this bond becomes due and payable, whether at stated maturity, upon redemption or acceleration, or otherwise.
This bond is one of an issue of bonds of the Company issuable in series and is one of a series known as its First Mortgage Bonds, 4.37% Series due 2045, all bonds of all such series being issued and issuable under and equally secured (except insofar as any sinking or other fund, established in accordance with the provisions of the Mortgage hereinafter mentioned, may afford additional security for the bonds of any particular series) by a Mortgage and Deed of Trust, dated as of June 1, 1939 (the “Original Mortgage”), executed by the Company (formerly known as The Washington Water Power Company) to City Bank Farmers Trust Company and Ralph E. Morton, as Trustees (Citibank, N.A., successor Trustee to both said Trustees).  The Original Mortgage has been amended and supplemented by various supplemental indentures, including the Fifty-eighth Supplemental Indenture, dated as of December 1, 2015 (the “Fifty-eighth Supplemental Indenture”), and, as so amended and supplemented, is herein called the “Mortgage”.  Reference is made to the Mortgage for a description of the property mortgaged and pledged, the nature and extent of the security, the rights of the holders of the bonds and of the Trustee in respect thereof, the duties and immunities of the Trustee and the terms and conditions upon which the bonds are and are to be secured and the circumstances under which additional bonds may be issued.  If there shall be a conflict between the terms of this bond and the provisions of the Mortgage, the provisions of the Mortgage shall control to the extent permitted by law.  The holder of this bond, by its acceptance hereof, shall be deemed to have consented and agreed to all of the terms and provisions of the Mortgage and, further, in the event that such holder shall not be the sole beneficial owner of this bond, shall be deemed to have agreed to use all commercially reasonable efforts to cause all direct and indirect beneficial owners of this bond to have knowledge of the terms and provisions of the Mortgage and of this bond and to comply therewith, including particularly, but without limitation, any 

D-2

provisions or restrictions in the Mortgage regarding the transfer or exchange of such beneficial interests and any legend set forth on this bond.
The Mortgage may be modified or altered by affirmative vote of the holders of at least 60% in principal amount of the bonds outstanding under the Mortgage, considered as one class, or, if the rights of one or more, but less than all, series of bonds then outstanding are to be affected, then such modification or alteration may be effected with the affirmative vote only of 60% in principal amount of the bonds outstanding of the series so to be affected, considered as one class, and, furthermore, for limited purposes, the Mortgage may be modified or altered without any consent or other action of holders of any series of bonds.  No modification or alteration shall, however, permit an extension of the Maturity of the principal of, or interest on, this bond or a reduction in such principal or the rate of interest hereon or any other modification in the terms of payment of such principal or interest or the creation of any lien equal or prior to the lien of the Mortgage or deprive the holder of a lien on the mortgaged and pledged property without the consent of the holder hereof.  Each initial and subsequent holder of bonds of this series, by virtue of its acquisition of an interest therein, shall be deemed, without further act, to have consented to the prospective amendments to the Original Mortgage set forth in the Fifty-eighth Supplemental Indenture.
The principal hereof may be declared or may become due prior to the stated maturity date on the conditions, in the manner and at the time set forth in the Mortgage, upon the occurrence of a Completed Default as in the Mortgage provided.
As provided in the Mortgage and subject to certain limitations therein set forth, this bond or any portion of the principal amount hereof will be deemed to have been paid if there has been irrevocably deposited with the Trustee moneys or direct obligations of or obligations guaranteed by the United States of America, the principal of and interest on which when due, and without regard to any reinvestment thereof, will provide moneys which, together with moneys so deposited, will be sufficient to pay when due the principal of and premium, if any, and interest on this bond when due.
The Mortgage contains terms, provisions and conditions relating to the consolidation or merger of the Company with or into, and the conveyance or other transfer, or lease, of assets to, another corporation and to the assumption by such other corporation, in certain circumstances, of all of the obligations of the Company under the Mortgage and on the bonds secured thereby.
In the manner prescribed in the Mortgage, this bond is transferable by the registered owner hereof in person, or by his duly authorized attorney, at the office or agency of the Company in the Borough of Manhattan, The City of New York, upon surrender and cancellation of this bond, together with a written instrument of transfer whenever required by the Company duly executed by the registered owner or by its duly authorized attorney, and, thereupon, a new fully registered bond of the same series for a like principal amount will be issued to the transferee in exchange herefor as provided in the Mortgage.  The Company and the Trustee may deem and treat the person in whose name this bond is registered as the absolute owner hereof for the purpose of receiving payment and for all other purposes.

D-3

In the manner prescribed in the Mortgage, any bonds of this series, upon surrender thereof for cancellation at the office or agency of the Company in the Borough of Manhattan, The City of New York, are exchangeable for a like aggregate principal amount of bonds of the same series of other authorized denominations.
Prior to the Par Call Date (as hereinafter defined), the bonds of this series shall be redeemable in whole at any time or in part from time to time, at the option of the Company, upon notice mailed as provided in Section 52 of the Mortgage, at a redemption price equal to the greater of
(a)    100% of the principal amount of the bonds being redeemed, and
(b)    the sum of the present values of the remaining scheduled payments of principal of and interest (not including any portion of any scheduled payment of interest which accrued prior to the redemption date) on the bonds being redeemed discounted to the date of redemption on a semiannual basis (assuming a 360-day year consisting of twelve 30-day months) at a discount rate equal to the Treasury Yield (as hereinafter defined) plus 50 basis points,
plus, in the case of either (a) or (b) above, whichever is applicable, accrued interest on such bonds to the date of redemption.
On or after the Par Call Date, the bonds of this series shall be redeemable in whole at any time, or in part from time to time, at the option of the Company, upon notice mailed as aforesaid, at a redemption price equal to 100% of the principal amount of the bonds being redeemed plus accrued interest on such bonds to the date of redemption.
“Par Call Date” means June 1, 2045.
“Treasury Yield” means, with respect to any redemption of the bonds of this series, the rate per annum equal to the semiannual equivalent yield to maturity of the Comparable Treasury Issue, assuming a price for the Comparable Treasury Issue (expressed as a percentage of its principal amount) equal to the Comparable Treasury Price.  The Treasury Yield shall be calculated as of the third business day preceding the earlier of (a) the date notice of redemption is mailed to holders of bonds of this series and (b) the date irrevocable arrangements with the Trustee for the mailing of such notice shall have been made, as the case may be, (the “Calculation Date”).
“Comparable Treasury Issue” means the United States Treasury security selected by an Independent Investment Banker as having a maturity comparable to the remaining term of the bonds of this series that would be utilized, at the time of selection and in accordance with customary financial practice, in pricing new issues of corporate debt securities of comparable maturity to the remaining term of the bonds.
“Comparable Treasury Price” means (A) the average of the bid and asked prices for the Comparable Treasury Issue (expressed in each case as a percentage of its principal amount) on the Calculation Date, as set forth in the H.15 Daily Update of the 

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Federal Reserve Bank of New York or (B) if such release (or any successor release) is not published or does not contain such prices on such business day, the Reference Treasury Dealer Quotation for the Calculation Date.
“H.15(519)” means the weekly statistical release entitled “Statistical Release H.15 (519)”, or any successor publication, published by the Board of Governors of the Federal Reserve System.
“H.15 Daily Update” means the daily update of H.15(519) available through the worldwide website of the Board of Governors of the Federal Reserve System or any successor site or publication.
“Independent Investment Banker” means any independent investment banking institution of national standing appointed by the Company and reasonably acceptable to the Trustee.
“Reference Treasury Dealer Quotation” means, with respect to the Reference Treasury Dealer, the average, as determined by the Trustee, of the bid and asked prices for the Comparable Treasury Issue (expressed in each case as a percentage of its principal amount and quoted in writing to the Trustee by such Reference Treasury Dealer at 5:00 p.m. on the Calculation Date).
“Reference Treasury Dealer” means a primary U.S. Government securities dealer in New York City appointed by the Company and reasonably acceptable to the Trustee.
Except as provided above, the bonds of this series are not redeemable prior to their stated maturity date.
No recourse shall be had for the payment of the principal of or premium, if any, or interest on this bond against any incorporator or any past, present or future subscriber to the capital stock, stockholder, officer or director of the Company or of any predecessor or successor corporation, as such, either directly or through the Company or any predecessor or successor corporation, under any rule of law, statute or constitution or by the enforcement of any assessment or otherwise, all such liability of incorporators, subscribers, stockholders, officers and directors being released by the holder or owner hereof by the acceptance of this bond and being likewise waived and released by the terms of the Mortgage.
This bond shall not become obligatory until Citibank, N.A., the Trustee under the Mortgage, or its successor thereunder, shall have signed the form of certificate endorsed hereon.

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ASSIGNMENT FORM
FOR VALUE RECEIVED the undersigned hereby sells, assigns and transfers unto 
	
	
	 

	[please insert social security or other identifying number of assignee]

	 

	[please print or typewrite name and address of assignee]

	 

the within bond of AVISTA CORPORATION and does hereby irrevocably constitute and appoint _________________ ________________, Attorney, to transfer said bond on the books of the within-mentioned Company, with full power of substitution in the premises. 
Dated: _________________
__________________________ 
[signature of assignor]
Notice: The signature to this assignment must correspond with the name as written upon the face of the bond in every particular without alternation or enlargement or any change whatsoever.

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EXHIBIT E(1)
PROSPECTIVE AMENDMENT TO ORIGINAL MORTGAGE
The text of the generic description of property in the primary granting clause contained in the Original Mortgage, as proposed to be amended, is set forth below:
All of the property, real, personal and mixed, of every character and wheresoever situated (except any hereinafter expressly excepted) which the Company now owns or, subject to the provisions of Section 87 hereof, may hereafter acquire prior to the satisfaction and discharge of this Indenture, as fully and completely as if herein specifically described, and including (without in anywise limiting or impairing by the enumeration of the same the scope and intent of the foregoing or of any general description contained in this Indenture) all lands, real estate, easements, servitudes, rights of way and leasehold and other interests in real estate; all rights to the use or appropriation of water, flowage rights, water storage rights, flooding rights, and other rights in respect of or relating to water; all plants for the generation of electricity, power houses, dams, dam sites, reservoirs, flumes, raceways, diversion works, head works, waterways, water works, water systems, gas plants, steam heat plants, hot water plants, ice or refrigeration plants, stations, substations, offices, buildings and other works and structures and the equipment thereof and all improvements, extensions and additions thereto; all generators, machinery, engines, turbines, boilers, dynamos, transformers, motors, electric machines, switchboards, regulators, meters, electrical and mechanical appliances, conduits, cables, pipes and mains; all lines and systems for the transmission and distribution of electric current, gas, steam heat or water for any purpose; all towers, mains, pipes, poles, pole lines, conduits, cables, wires, switch racks, insulators, compressors, pumps, fittings, valves and connections; all motor vehicles and automobiles; all tools, implements, apparatus, furniture, stores, supplies and equipment; all franchises (except the Company’s franchise to be a corporation), licenses, permits, rights, powers and privileges; and (except as hereinafter expressly excepted) all the right, title and interest of the Company in and to all other property of any kind or nature.

E-(1)-1

EXHIBIT E(2)
PROSPECTIVE AMENDMENT TO ORIGINAL MORTGAGE
The text of the proviso following the primary granting clause in the Original Mortgage, as proposed to be amended, is set forth below:
Provided that the following are not and are not intended to be now or hereafter granted, bargained, sold, released, conveyed, assigned, transferred, mortgaged, pledged, set over or confirmed hereunder and hereby expressly excepted from the lien and operation of this Indenture viz.:  (l) cash, shares of stock and obligations (including bonds, notes and other securities) not hereafter specifically pledged, paid, deposited or delivered hereunder or hereinafter covenanted so to be; (2) merchandise, equipment, materials or supplies held for the purpose of sale in the usual course of business or for consumption in the operation of any properties of the Company; (3) bills, notes and accounts receivable, and all contracts, leases and operating agreements not specifically pledged hereunder or hereinafter covenanted so to be; (4) electric energy and other materials or products generated, manufactured, produced or purchased by the Company for sale, distribution or use in the ordinary course of its business; (5) all automobiles, buses, trucks, truck cranes, tractors, trailers and similar vehicles and movable equipment; all rolling stock, rail cars and other railroad equipment; all vessels, boats, barges, and other marine equipment; all airplanes, helicopters, drones, aircraft engines and other flight equipment; all parts, accessories and supplies used in connection with any of the foregoing; and all personal property of such character that the perfection of a security interest therein or other lien thereon is not governed by the Uniform Commercial Code (or similar law) as in effect in the jurisdiction in which such property is located; and (6) any property released pursuant to any provisions of this Indenture and not disposed of by the Company and improvements, extensions and additions thereto and renewals and replacements thereof; provided, however, that the property and rights expressly excepted from the lien and operation of this Indenture in the above subdivisions (2) and (3) shall (to the extent permitted by law) cease to be so excepted in the event that the Trustee or a receiver or trustee shall enter upon and take possession of the Mortgaged and Pledged Property in the manner provided in Article XII hereof by reason of the occurrence of a Completed Default as defined in said Article XII.

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EXHIBIT E(3)
PROSPECTIVE AMENDMENT TO ORIGINAL MORTGAGE
The text of the first paragraph of Section 4 of the Original Mortgage, as proposed to be amended, is set forth below:
Section 4.  The term “Property Additions” shall mean plants, lines, pipes, mains, cables, machinery, transmission lines, pipe lines, distribution systems, service systems and supply systems, property, real or personal, and improvements, extensions, additions, renewals or replacements acquired by the Company by purchase, consolidation, merger, donation or in any other way whatsoever, subsequent to May 31, 1939, or made or constructed subsequent to May 31, 1939, or in the process of construction or erection in so far as actually constructed or erected subsequent to May 31, 1939, and used or useful or to be used in or in connection with the business of generating, manufacturing, transporting, transmitting, distributing or supplying electricity or gas for light, heat, power, refrigeration or other purposes.  The term “Property Additions” shall not, however, include (1) any shares of stock, bonds, evidences of indebtedness or other securities or contracts, leases, or operating agreements, bills, notes, accounts receivable, or choses in action, or (2) except as herein otherwise specifically provided, going value, good will, franchises or governmental permits or licenses granted to or acquired by the Company, as such, separate and distinct from the property operated thereunder or in connection therewith or incident thereto, or (3) any goods, wares, merchandise, equipment, materials or supplies held for the purpose of sale or resale in the usual course of business or for the purpose of consumption in the operation of any of the properties of the Company, or (4) any lands, leases, gas rights, wells, gathering, tap or other pipe lines, or equipment, used principally and primarily for the production or gathering of natural gas, or (5) any property, the cost of acquiring, making or constructing which is chargeable under accepted principles of accounting to operating expenses, or (6) any property (whether or not listed above) that is excepted from, or otherwise not subject to, the lien of this Indenture.

E-(3)-1

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