Document:

exv10w35

Exhibit 10.35

EXECUTION VERSION

BRANCH SALE AGREEMENT

Between

AnchorBank, fsb

and

Nicolet National Bank

May 4, 2010

 

 

BRANCH SALE AGREEMENT

          THIS BRANCH SALE AGREEMENT is made as of May 4, 2010 (the “Agreement”), between AnchorBank,
fsb (“Seller”) and Nicolet National Bank (“Buyer”).

WITNESSETH:

          WHEREAS, Seller desires to transfer certain assets and liabilities of the branch offices
identified on Exhibit A (the “Branches”) to Buyer; and

          WHEREAS, Buyer desires to purchase such assets and assume such assets and liabilities, in
accordance with the terms and conditions set forth in this Agreement;

          NOW, THEREFORE, in consideration of the mutual agreements contained in this Agreement and
other good and valuable consideration, the receipt and sufficiency of which are acknowledged,
Seller and Buyer agree as follows:

     1. Transfer of Assets, Liabilities and Deposits. As of 11:59 p.m. on the Closing Date (as
hereafter defined) (the “Effective Time”), Seller will sell, assign and transfer to Buyer the
assets of the Branches as set forth in Section 1(a) as of the Effective Time (the “Assets”),
Seller’s obligations with respect to the Assets and the Deposits (as hereafter defined) of the
Branches as of the Effective Time free and clear of all liens and encumbrances of any kind except
as disclosed in this Agreement or on the attached Exhibits, and Buyer will purchase the Assets and
assume Seller’s obligations with respect to the Assets and the Deposits.

          (a) Assets. For purposes of this Agreement, “Assets” means all of Seller’s right, title and
interest in and to:

               (1) the leasehold interest owned by Seller in the real estate on which the Branches are
located (as identified on Exhibit A), which leasehold interest arises out of the leases for
the Branches (as identified on Exhibit A) (the “Leases” and together with the Seller’s
leasehold interests, the “Real Estate”);

               (2) the furniture, fixtures, improvements, equipment and automated teller machines (“ATMs”),
if any, owned by Seller at the Branches identified on Exhibit B, but excluding signs or
other materials bearing the words “AnchorBank, fsb” or its associated logos, variations or
derivatives, computer software, and licensed goods (the “Fixtures and Equipment”). The Fixtures
and Equipment are listed on Exhibit B to this Agreement, which will be finalized no later
than the final date of the Due Diligence Period (as hereafter defined);

               (3) all cash on hand at the Branches as of the close of business on the Closing Date,
including vault cash, petty cash, ATM cash, tellers’ cash and items in the process of collection
(the “Cash on Hand”);

               (4) the telephone and facsimile numbers with respect to the Branches;

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               (5) all records, documents, warranties and manuals related to the Assets transferred and
liabilities assumed by Buyer, in whatever form or medium then maintained by Seller, including those
relating to the Deposits and those records relating to the Loans (as hereafter defined) maintained
in electronic format including on Seller’s “OnBase System” to the extent that such electronic
Records can reasonably be segregated for the Branches and customers (collectively, the “Records”);
and

               (6) the loans listed on Exhibit C, Part I, and shown on Seller’s books and records as
being attributable to the Branches, which have been accepted for purchase up to the date of
execution of this Agreement (the “Accepted Loans”), together with any additional loans accepted by
Buyer between the date of the execution of this Agreement and the Closing (“Additional Accepted
Loans”) to be identified on Exhibit C, Part II, prior to the Effective Time, including in
each case all accrued but unpaid credits, accrued and unpaid interest, all promissory notes, liens,
mortgages, collateral, security interests, guarantees, documents, financing statements and other
rights and interests associated therewith (all collectively with the Accepted Loans and the
Additional Accepted Loans referred to as the “Loans”). Loans shall not include (i) the unfunded
portion of outstanding lines of credit or loan commitments; and (ii) Seller’s credit card accounts.
Loans identified on Exhibit C, Part I, shall be purchased by Buyer at par and shall, in
aggregate, with Additional Accepted Loans on Exhibit C, Part II, total an amount not less
than Twenty-Five Million Dollars ($25,000,000). Additional Accepted Loans to be purchased by Buyer
shall be identified on Exhibit C, Part II and shall be purchased by Buyer at par or
at the rate or rates agreed upon and identified thereon.

          (b) Adverse Events. From the date of this Agreement until the Effective Time, Seller shall
promptly provide to Buyer: (1) written notice of the occurrence of any Adverse Event (as hereafter
defined); and (2) such other information regarding the Loans as is reasonably requested by Buyer.
If Buyer shall determine during the Due Diligence Period (as defined below) that any of the Loans
has suffered an Adverse Event, or at any time prior to the Closing Date, if any Loan shall suffer
an Adverse Event, Buyer shall have the right to remove such Loan from Exhibit C, in Buyer’s
sole and absolute discretion, and any such loan or loan participation interest so removed shall no
longer be deemed to be a “Loan” for purposes of this Agreement. Upon Buyer’s request, Seller shall
provide to Buyer a list of Seller loans that have not suffered an Adverse Event and are not already
included as a Loan on Exhibit C from which Buyer may, upon Buyer’s review of the files
relating to any such loans and at Buyer’s sole discretion, select one or more of such loans to
replace any Loan that has been rejected by Buyer pursuant to this Section 1(b). Without limiting
the foregoing, if the rejection of a Loan by Buyer for reasons of an Adverse Event would cause the
aggregate total of the Loans on Exhibit C to drop below Twenty-Five Million Dollars
($25,000,000), then Buyer shall use its commercially reasonable efforts to identify an alternative
loan or loans of Seller in total like principal amount to replace the rejected Loan and Seller
shall cooperate in a commercially reasonable manner with Buyer’s efforts and Buyer and Seller shall
negotiate in good faith the purchase price for any such alternative loan or loans based on the
condition of such loan or loans and the underlying documentation thereof. “Adverse Event” shall
mean, with respect to any Loan, that: (i) the obligor under such Loan (A) is delinquent in the
payment of principal or interest thereon for more than 30 days, or (B) has defaulted under or
breached any other material provision of any agreement related to such Loan; (ii) the obligor under
such Loan has filed for protection under any bankruptcy law, is insolvent or

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has otherwise suffered
a material adverse change in its financial condition; (iii) Seller has discontinued the accrual of interest with respect to such Loan; (iv) Seller or any regulatory
authority has determined that such Loan should be classified as “substandard,” “doubtful,” “loss,”
“other loans especially mentioned” or any comparable classifications; (v) such Loan has been listed
on any “watch list” or similar internal report of Seller; or (vi) Seller reasonably believes that
any of the events described in clauses (i) through (v) is reasonably likely to occur.

          (c) Deposits. For purposes of this Agreement, “Deposits” means the deposit liabilities shown
on Seller’s books and records relating to the Branches and listed on Exhibit D, including
accrued but unpaid interest, both collected and uncollected funds, health savings accounts,
certificates of deposit linked to retirement plans, business certificates of deposit of customers
if Buyer is purchasing substantially all of the customers’ banking relationships with Seller, and
deposits held by non-discretionary individual retirement accounts (including Roth IRAs) and
qualified retirement plan accounts relating to such deposits for which Seller acts as custodian or
trustee but which are not administered by a trust department which is an affiliate of Seller and
for which no brokerage account is carried at any affiliate of Seller (“Retirement Plans”), together
with Seller’s rights and responsibilities under any related customer agreement. “Deposits” do not
include: (1) deposits securing loans or other extensions of credit by Seller or its affiliates if
the loans or other extensions of credit are not included in the Loans; (2) deposits held in
accounts for which Seller or its affiliates act as fiduciary (other than deposits held by
Retirement Plans); (3) deposits held in any Retirement Plan where the account holder has notified
Seller or Buyer of his, her or its objection to Buyer acting as custodian or trustee of such
Retirement Plan; (4) deposits subject to legal process but not including garnishments or deposits
subject to tax levies; (5) deposits which have been reported as abandoned property under the
abandoned property laws of any jurisdiction; (6) deposits by Seller or any Seller affiliate; and
(7) brokered deposits. Contemporaneously with the delivery of the preliminary settlement statement
pursuant to Section 3(b), Seller shall provide Buyer with notice of and details concerning
all Deposits that are overdrawn as of the Estimation Date (as hereafter defined) and Buyer shall be
entitled to reject any such overdrafts for Deposits that have been overdrawn for five (5) or more
business days prior to the Estimation Date in its sole discretion by written notice delivered to
Seller not later than one day prior to the Closing Date. Any such overdrafts rejected by Buyer
shall be retained by Seller.

     2. Closing and Closing Date. The closing (the “Closing”) of the transaction contemplated by
this Agreement (the “Sale”) will take place at the offices of Michael Best & Friedrich, LLP, 100 E.
Wisconsin Ave., Suite 3300, Milwaukee, Wisconsin, or as Seller and Buyer agree. The Closing will
take place on July 16, 2010 or as soon as practicable after the conditions regarding regulatory
approvals have been satisfied, but in any event no later than the later to occur of (i) thirty (30)
days following satisfaction or waiver of the conditions set forth in Sections 20 and 21, or (ii)
one hundred and eighty (180) days from the date of execution of this Agreement (the “Closing
Date”).

     3. Payment.

          (a) The purchase price for the Sale (the “Purchase Price”) will be payable in cash or other
immediately available funds in an amount equal to:

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               (1) the aggregate book value of the Deposits as of the Closing Date, as shown on Seller’s
books and records, plus

               (2) the amount of the Rent Credit, which shall be one million six hundred thousand dollars
($1,600,000); plus

               (3) any amounts prorated pursuant to Section 3(d) owing by Seller to Buyer; less

               (4) the depreciated book value, as of the Effective Time, of the Fixtures and Equipment, as
shown on Exhibit B; less

               (5) (a) with respect to the Loans listed on Exhibit C, Part I, an amount equal to the
principal of and interest accrued and unpaid on such Loans, with no reserves applied, as shown on
Seller’s books and records as of the Closing Date, and (b) with respect to the Loans listed on
Exhibit C, Part II, an amount equal to the principal of and interest accrued and unpaid on
such Loans, with no reserves applied, as shown on Seller’s books and records as of the Closing
Date, and applying any discount identified on Exhibit C, Part II with respect to such
Loans; less

               (6) an amount equal to 5% of the Deposits (the “Deposit Premium”), except that for purposes of
the calculation of the Deposit Premium, Deposits shall not include public funds, repurchase
agreements, negotiated rate accounts on which the applicable rate exceeds by 60 basis points or
more the average rate on comparable accounts as of the date of issue, and those certificates of
deposit issued in principal amounts of $100,000 or more that are not linked with retirement plans
or that are not business certificates of deposit of customers if Buyer is purchasing substantially
all of the customers’ banking relationships with Seller; provided, however, that the Deposit
Premium shall not exceed Five Million Dollars ($5,000,000); less

               (7) any amounts prorated pursuant to Section 3(d) owing by Buyer to Seller; less

               (8) an amount equal to the Cash on Hand at the Branches as of the Closing Date.

If the amount calculated above results in a number which is greater than zero (i.e., the sum of
items (1) through (3) above exceed the sum of items (4) through (8) above), then Seller will
transfer the resulting amount to Buyer. However, if the amount calculated above results in a
number which is less than zero (i.e., the sum of items (4) through (8) above exceed the sum of
items (1) through (3) above), then Buyer will transfer the resulting amount to Seller.

          (b) Initial Payment. On the Closing Date, Seller will transfer to Buyer or Buyer will
transfer to Seller, as the case may be, an amount which constitutes an estimate of the Purchase
Price (the “Initial Payment”), calculated by using information available to the parties as of the
close of business no more than ten (10) business days prior to the Effective Time (the “Estimation
Date”). Seller will deliver to Buyer on or before the fourth (4th) business day prior
to

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the Closing Date a preliminary settlement statement calculating the Initial Payment to be made
on the Closing Date together with updated supporting information regarding the items used to
calculate the Initial Payment, including an updated Exhibit D and including supporting
information for the pro ration of items under Section 3(d). Buyer shall have the
opportunity to review such statement and Buyer shall notify Seller of any objections Buyer has to
such statement no later than two (2) business days prior to the Closing Date. Prior to Closing,
Seller and Buyer shall agree upon the information and calculations set forth in such preliminary
settlement statement.

          (c) Final Payment. Within thirty (30) days after the Effective Time, Seller will deliver to
Buyer a final settlement statement that shall include appropriate post-closing adjustments based
upon actual Deposits and Loans as of the Effective Time on the Closing Date and cash transactions
that took place on the Closing Date or that took place prior to the Closing Date but were not
reflected in the preliminary settlement statement, together with updated supporting information
regarding the items used to calculate the Final Payment (as hereafter defined), including an
updated Exhibit D and including supporting information for the pro ration of items under
Section 3(d). Within fifteen (15) days of Buyer’s receipt of the preliminary settlement
statement, either Buyer or Seller shall notify the other of any disputes or discrepancies with
respect to such final settlement statement. Absent a dispute or discrepancy, Seller will transfer
to Buyer or Buyer will transfer to Seller, as the case may be, the difference between the Final
Payment and the Initial Payment on or before the end of such fifteen (15) day period. The amount
constituting the difference between the Initial Payment and the Final Payment will bear interest
from the Closing Date to the date of payment of the Final Payment at a rate equal to the weighted
average of the rates on overnight federal funds transactions as determined by the Federal Reserve
Bank of Chicago. This interest will be paid along with the Final Payment.

          (d) Prorated Items. For purposes of calculating the Initial Payment and the Final Payment, as
appropriate, special assessments on the Real Estate and paid by the tenant under the Leases, rents
payable under the Leases (including any amounts of additional rents, real and personal property
taxes, insurance costs, CAM charges and estimates, and all other charges due under the Leases,
based on the formula for payment contained in the Leases), utility payments, insurance premiums and
similar expenses if required by the Leases, unless the Landlord under that Lease accepts Buyer’s
replacement insurance, employment taxes relating to the employees, state or federal taxes collected
but not remitted, workers compensation payments for employees, FDIC premiums and credits relating
to the Deposits and any other expenses (provided that Buyer shall only be required to pay pro rated
FDIC premiums when and to the extent Buyer is able to obtain credit for such premiums from the FDIC
based on Buyer’s rate of assessment that it pays to the FDIC), accruals and payments relating to
the Assets or the Deposits will be prorated as of the Effective Time. Seller will receive a
proportionate monetary adjustment to the extent an item has been prepaid by Seller for a period
extending beyond the Effective Time, and Buyer will receive a proportionate monetary adjustment to
the extent that an item has been deferred by Seller to a time extending beyond the Effective Time.
Any items, including credits for FDIC insurance premiums, which would appropriately be subject to
proration but which cannot be prorated by the date the Final Payment is made will be prorated as
soon as the requisite information is available and will be paid promptly by the appropriate party
after this time. Any security deposit or other

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deposit paid under the Leases and assigned to the
Buyer under the Leases shall be credited to Seller.

     4. Access and Investigation. Commencing on May 5, 2010, and continuing for a period of
fifteen (15) days thereafter, (the “Due Diligence Period”), Seller shall permit Buyer reasonable
access to the Branches and to the books and records of the Branches to conduct a review of the
Branches, including the Fixtures and Equipment, and to evaluate the feasibility of the transactions
contemplated herein (“Due Diligence”). Not later than three (3) business days following the end of
the Due Diligence Period, Buyer shall notify Seller that Buyer wishes to terminate this Agreement
(in which case this Agreement shall be deemed terminated without premium or penalty) or proceed to
close the Sale (in which case the parties shall proceed to close the Sale). Failure to give
notice within the time provided for herein shall be deemed a notice to proceed to close the Sale.

     5. Transfer of Real Estate. The Real Estate of the Branches will be conveyed under the
following terms and conditions:

          (a) Inspection.

               (1) For a period of thirty (30) days following the date of this Agreement, Buyer, at its
expense, may conduct reasonable investigations and inspections of the Leases and the Real Estate as
Buyer deems appropriate (excluding environmental studies, and excluding any investigation or
testing which is prohibited by the applicable Lease) to determine that the Real Estate is fit for
Buyer’s purposes and in the condition required by Buyer. Seller shall assist Buyer in securing
from the landlord under the Leases (each a “Landlord”), an Estoppel Letter and a Landlord Consent
to Assignment, in form and substance as attached hereto as Exhibits E and F,
respectively. In the event Buyer determines the Real Estate is not fit for Buyer’s purposes or in
the condition required by Buyer, or if each Landlord has not executed an Estoppel Letter and
Landlord Consent to Assignment, in the form as shown in such exhibits, or such other form as is
reasonably satisfactory to Buyer and Seller, Buyer will have the option to: (A) terminate this
Agreement by giving written notice of termination to Seller within thirty-five (35) days following
the date of this Agreement (time being of the essence); or (B) accept the Real Estate, the Estoppel
Letter and Landlord Consent to Assignment for the Branches in its condition at the time with no
reduction in the price allocated to the Real Estate, in which case this contingency will be deemed
waived. In the event Buyer fails to make a timely objection under this section, this contingency
will be deemed waived.

               (2) Buyer will have the right to enter the Real Estate and conduct the inspections and
investigations described in subsection (1) during normal business hours and upon at least two (2)
business days’ advance written notice to Seller. Buyer’s activities on the Real Estate will not
include intrusive tests or inspections without Seller’s prior written consent. Buyer will not
interfere with the business activities being conducted on the Real Estate during the times of
access, will not contact the Landlord directly, will not take any action to violate any of the
Leases, and Buyer, at its expense, will fully repair and restore all damage and alterations to the
Real Estate caused by or on behalf of Buyer and will indemnify Seller for any other loss Seller
incurs as the result of Buyer’s activities on the Real Estate. Buyer may not enter into any

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agreements with any Landlord, or governmental authority, which would bind Seller or the Real
Estate, either prior to the Closing Date, or after termination of this Agreement.

          (b) Condition of Real Estate. The waiver or deemed waiver of Buyer’s option to terminate and
the completion of the Closing each constitute conclusive evidence that Buyer is satisfied with the
condition of the Leases and Seller’s interest in the Real Estate. In closing this transaction and
completing its due diligence, Buyer will be relying exclusively on its own inspections and reviews
and not upon any express or implied representation or warranty of Seller. Except as set forth
herein, Seller has made no express or implied representation or warranty regarding the condition of
the Real Estate (whether environmental or otherwise).

     6. Seller’s Closing Documents. Seller will provide Buyer with the following documents on the
Closing Date:

          (a) Bill of Sale. A bill of sale executed by Seller and conveying the Assets (excluding the
Real Estate) to Buyer, in the form of Exhibit G hereto.

          (b) Assignment and Assumption Agreements. Assignment and assumption agreements executed by
Seller whereby Seller assigns all of its right, title and interest in and to and whereby Buyer
assumes the liabilities and obligations of Seller with respect to the Deposit accounts and the
Loans, and an Assignment, Transfer and Appointment of Successor Custodian for Individual Retirement
Accounts (each in the form attached as Exhibit H hereto)(the “Assignments”).

          (c) Seller’s Officer Certificate. A certificate from Seller with respect to the
representations and warranties in this Agreement, the satisfaction by Seller of the covenants and
agreements in this Agreement, and resolutions authorizing the transaction contemplated by this
Agreement.

          (d) Other Documents. Other documents as are reasonably required by Buyer.

          (e) Leases. Assignment and assumption agreements with respect to the Leases, in form and
substance acceptable to Buyer, Seller and the Landlords (the “Assignment of Leases”), together with
the original of each Landlord’s Estoppel Letter and Landlord Consent to Assignment (which shall be
agreed to by Seller and Buyer and listed on Exhibits E and F to this Agreement within
thirty (30) days from the date of this Agreement) executed by Seller and each landlord under the
Leases.

     7. Buyer’s Closing Documents. Buyer will provide Seller with the following documents on the
Closing Date:

          (a) Receipt. A receipt from Buyer with respect to the Assets, in the form of Exhibit
G hereto.

          (b) Assignment and Assumption Agreement. The Assignments executed by Buyer.

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          (c) Buyer’s Officer Certificate. A certificate from Buyer with respect to the representations
and warranties in this Agreement, the satisfaction by Buyer of the covenants and agreements in this
Agreement, resolutions authorizing the transaction contemplated by this Agreement and required
regulatory approvals.

          (d) Other Documents. Other documents as are reasonably required by Seller.

          (e) Leases. The Assignment of Leases, executed by Buyer.

     8. Seller’s Actions at Closing. At or before the Effective Time, Seller will take the
following actions with respect to the transfer of the Assets, Deposits and liabilities relating to
the Assets:

          (a) Assignment Forms. Except as otherwise agreed, Seller will evidence the transfer of the
Loans to Buyer by providing the following documentation: (1) for each Loan secured by real estate,
Seller will provide a standard assignment of mortgage form in recordable form (the recording fee
for which will be paid by Buyer); (2) for each Loan secured by collateral described in uniform
commercial code filings, Seller will provide a standard uniform commercial code assignment form
(the filing fee for which will be paid by Buyer); (3) for Loans secured by vehicles and boats, at
its option Seller will provide either an appropriate assignment form or a limited power of attorney
authorizing Buyer to sign appropriate documentation which evidences the transfer of the loans to
Buyer on the records of the Wisconsin Department of Transportation and/or the Wisconsin Department
of Natural Resources. Seller shall provide to Buyer copies of all such assignments for its review
not later than thirty (30) business days prior to Closing.

          (b) Branch Records. Seller will deliver to Buyer the Records (including all Records, such as
loan files, maintained in electronic format and including Records maintained on the “OnBase
System”, to the extent that such electronic Records can reasonably be segregated for the Branches
and customers) and all keys, security codes, combinations and similar items required for entry to
and use of the Branches.

          (c) Employee Records. Seller will deliver to Buyer its records relating to the hiring date,
payroll history, compensation and benefit plan records of the employees of the Branches that are
hired by Buyer.

          (d) Other Matters. Seller will cooperate with Buyer for other matters relating to the
assignment and transfer of the Assets, Deposits and the liabilities related to the Assets,
including the establishment of a schedule of charges with respect to conversion of data processing
for the Loans and Deposits and other future services which may be required by Buyer.

     9. Transitional Matters.

          (a) Data Conversion. As soon as practicable following the date of this Agreement, Seller
shall provide Buyer with applicable product functions and specifications relating to the data
processing support required for the Deposits and Loans being assumed and purchased hereunder. As
soon as practicable following the date of this Agreement, Seller shall provide to Buyer file
formats relating to the Deposits

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and Loans and up to two sets of test tapes related to the Deposits
and Loans in such form as agreed between Seller and Buyer. If Buyer requests more than two sets of
test tapes, Seller shall provide additional test tapes at Buyer’s expense. Buyer shall review and
analyze such materials, including the file formats and test tapes, and shall advise Seller in
writing of any defects or concerns relating thereto not later than fifteen (15) business days
following receipt thereof.

          (b) Notices. Buyer will, at its expense, give all required notices to the Branches’
customers, including any transfer notices required by Regulation DD issued by the Federal Reserve
Board and the Real Estate Settlement Procedures Act and Regulation X issued thereunder. Buyer
will, at its expense and without charge to the Branches’ customers, promptly notify the customers
of Buyer’s assumption of the Deposits and furnish each customer that holds demand deposits or NOW
accounts with checks on Buyer’s forms and with instructions to utilize Buyer’s checks and destroy
unused checks of Seller. Buyer will notify the customers of the date after which it will no longer
honor checks, drafts and withdrawal orders on forms provided by Seller and carrying Seller’s
imprint. Buyer and Seller shall equally share the expense of notifying all customers of the
Branches by letter, reasonably acceptable to Buyer, of Buyer’s pending assumption of the Deposits,
and that, effective as of the close of business on the business day prior to the Closing Date or
such other time as Seller and Buyer shall agree, Seller’s debit card and ATM services will be
terminated.

          (c) ATM and Debit Cards. Buyer and Seller shall promptly agree to appropriate procedures and
timing for deactivating Seller’s ATM and debit cards with the goals of fostering a smooth
transition process and reducing the number of ATM and debit card transactions that must be settled
post-closing. All transactions and activity related to Seller’s ATM and debit cards following the
Closing Date that are received or forwarded to Seller will be accepted and forwarded by Seller to
Buyer and accounted for on a daily settlement sheet to include all trailing post-closing
transactions. Seller agrees to notify its processor to deactivate Seller’s debit cards at such
time as agreed by Seller and Buyer and Seller agrees to forward all transactions related thereto
directly to Buyer. Seller agrees to deactivate any ATMs in the Branches and otherwise located in
Brown County, Wisconsin, on or before the close of business on the Closing Date. Buyer and Seller
agree to cooperate with each other to assure that all transactions originated through the ATMs or
originated with the ATM cards prior to or on the Closing Date shall be for the account of Seller
and all transactions originated after the Closing Date shall be for the account of Buyer.

          (d) Signs. Prior to the Closing, Seller shall cooperate with any reasonable requests of Buyer
directed to obtaining specifications for the procurement of new signs of Buyer’s choosing for
installation by Buyer immediately following the close of business on the Closing Date; provided,
however, that Buyer’s receipt of all sign specifications shall be obtained by Buyer in a manner
that does not significantly interfere with the normal business activities and operations of the
Branches and shall be at the sole and exclusive expense of Buyer. On or prior to the Closing Date,
Seller shall, at its expense, remove all signs at the Branches containing or including Seller’s
name or logo. It is understood by the parties hereto that, with the exception of the signs, all
mounting facilities for the signs shall be considered as Fixtures and Equipment for purposes of
this Agreement.

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          (e) Payment of Items. Buyer will pay in accordance with law and customary banking practices
all properly drawn and presented checks, drafts and withdrawal orders presented to Buyer drawn on
the checks, drafts or withdrawal order forms provided by Seller and in all other respects
discharge, in the usual course of the banking business, the duties and obligations of Seller with
respect to the Deposits; provided, however, that any obligations of Buyer pursuant to this Section
9(b) to honor checks, drafts and withdrawal orders on forms provided by Seller and carrying its
imprint (including its name and transit routing number) shall not apply to any checks, drafts or withdrawal orders or returned items presented to Buyer more
than ninety (90) days following the Closing Date.

          (f) IRS Reporting. Seller shall submit and file any required reports on IRS Forms 1098 and
1099 as well as all other informational tax reports with respect to interest paid on Deposits for
the periods prior to and through the Closing Date and Buyer shall submit and file any required
reports on IRS Form 1098 and 1099 as well as all other informational tax reports with respect to
interest paid on Deposits for the periods beginning after the Closing Date.

          (g) Settlement of Items. Prior to the Effective Time, Seller and Buyer will develop
appropriate procedures and arrangements (which may include establishment by Buyer of a settlement
account with Seller) to provide for settlement by Buyer of checks, drafts, withdrawal orders,
returns and other items that are drawn on or chargeable against Deposits after the Effective Time.
Seller will cooperate with Buyer and take reasonable steps requested by Buyer to ensure that, for
the period of time after the Effective Time as the parties may agree, each check, draft or
withdrawal order drawn against Deposits encoded for presentment to Seller or to any bank for the
account of Seller is delivered to Buyer in a timely manner and in accordance with applicable law
and clearinghouse rule or agreement.

          (h) Stop Payment Items. Buyer will honor stop payment orders initiated prior to the Effective
Time and reflected in stop payment documents delivered to Buyer. If following receipt of
appropriate stop order documentation, Buyer makes a payment in violation of an order, Buyer will be
solely liable for the payment and will indemnify, hold harmless and defend Seller from and against
all claims, losses and liabilities, including reasonable attorney fees and expenses, arising out of
the payment.

          (i) Returned Items. Buyer will pay promptly to Seller an amount equal to the amount of any
checks, drafts or withdrawal orders credited to the Deposits on or before the Effective Time which
are returned to Seller or Buyer after the Effective Time as uncollectible, less the Deposit Premium
percentage for the returned item.

          (j) Post-Closing Payments. Seller promptly will remit to Buyer all payments on Loans and
amounts intended as Deposits or otherwise relating to the Loans or Deposits that are received by
Seller after the Effective Time. If the balance due on any Loan has been reduced by Seller as a
result of a payment by check or other instrument received prior to the Effective Time and if the
paying instrument is returned to Seller after the Effective Time as uncollectible, an amount equal
to the reduction will be paid by Buyer to Seller and Seller will assign all right, title and
interest in the uncollectible item to Buyer.

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          (k) Government Checks. Upon a request after the Effective Time from a state or federal agency
to reclaim funds relating to forged social security checks, unemployment checks or welfare checks
credited by Seller prior to the Effective Time from a Deposit transferred to and assumed by Buyer,
Buyer will honor the request and pay the amount requested, up to the amount of collected funds in
the account relating to the request as of the date of such request. Seller will remain liable for
remitting any deficiency.

     10. Employees of the Branches. The parties shall follow the following procedure in dealing
with employees of Seller who are employed in the Branches (the “Employees”) regarding employment
after the Closing Date:

          (a) Within fifteen (15) days after the date hereof, Seller shall deliver to Buyer a true and
complete list of all Employees by name, date of hire and position in the Branches as of the date
hereof, together with copies of the personnel files, which shall include documents pertaining to
qualifications for employment, promotion, transfer, additional compensation, termination or other
disciplinary actions, but shall not include any health records, of the Employees who provide Seller
with their written consent thereto. Upon reasonable notice from Buyer, Seller shall allow Buyer to
interview any and all Employees for the purposes set forth in this Section 10.

          (b) Buyer shall interview all Employees who are interested in seeking employment with Buyer
and whom Buyer has an interest in employing and, within forty-five (45) days after the date hereof,
shall deliver to Seller a confidential list setting forth those Employees to whom Buyer intends to
offer employment on the Closing Date (“Designated Employees”) and the position to be offered to
each Designated Employee. After Buyer provides to Seller the list of Designated Employees, Seller
may at its option approach any Employee, other than a Designated Employee, to discuss opportunities
for such Employee to transfer to other positions with Seller after the Closing Date.
Notwithstanding anything herein to the contrary, Buyer shall have no obligation to offer employment
to any of Seller’s employees.

          (c) Seller and Buyer shall cooperate in order to permit Buyer to train those Designated
Employees at the Branches who choose to accept offered employment with Buyer. Seller shall, as
scheduled by Buyer for reasonable times and subject to Seller’s reasonable approval (such that
Seller’s ongoing operations at the Branches shall not be materially disrupted) excuse such
Designated Employees from their duties at the Branches for the purpose of training and orientation
by Buyer during the three week period prior to the Closing Date. Seller shall be responsible for
the payment of the salary of such Designated Employees during such training for a maximum of eight
(8) hours per Designated Employee and Buyer shall reimburse Seller for the payment of the salary of
such Designated Employees during any additional training.

          (d) The terms of employment (including, without limitation, position, salary and benefits) of
each Designated Employee shall be determined solely by Buyer in its sole and absolute discretion.
Designated Employees hired by Buyer will be, to the extent permitted by applicable law and the
terms of Buyer’s benefit plans, immediately eligible to participate in all employee welfare benefit
plans and other fringe benefits and perquisites extended to employees holding comparable positions
with Buyer, and will be given immediate credit under all employee

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benefit plans covering employees
of Buyer in existence at the Effective Time for length of service with Seller or any of Seller’s
affiliates. Designated Employees will be given credit for their respective years of service with
Seller or any of Seller’s affiliates for purposes of determining their participation and vesting
(but not for funding and/or accrual of benefits) in the retirement and other benefit plans of
Buyer. Buyer will admit Designated Employees to its retirement plan on the first entry date
following the Effective Time for which such Designated Employees are eligible and will permit them
to roll any payments from the retirement plan of Seller or Seller’s affiliates, as permitted by IRS
regulations.

     11. Record Retention and Access. Buyer will preserve and safely keep, for so long as may be
required under applicable law, the records transferred to Buyer under this Agreement. Upon not
less than three (3) business days’ prior notice, Buyer will permit Seller, at its expense, to
inspect, make extracts from or copies of the records as Seller requests, provided that Seller’s
activities will not unreasonably interfere with Buyer’s business operations and Seller’s inspection
and/or extraction will not require Buyer to breach any obligation of confidentiality, violate any
law, regulation or order regarding disclosure of information or reveal any proprietary information,
trade secrets or marketing or strategic plans. Seller will treat this information as confidential.

     12. Taxes. Except as provided in this Agreement, all sales taxes, transfer taxes, ad valorem
taxes and recordation fees or similar taxes or fees which are payable or arise as a result of this
Agreement or consummation of the transactions contemplated hereby will be paid by the party upon
whom such taxes are imposed. Sales taxes on the Assets, if any, will be paid by Buyer.

     13. Seller’s Representations and Warranties. Seller represents and warrants to Buyer as
follows:

          (a) Corporate Status. Seller is duly organized, validly existing and in good standing under
the laws of the jurisdiction in which it is chartered.

          (b) Corporate and Other Authority. Seller has full corporate power and authority to carry on
the business of the Branches as presently conducted and to lease the Real Estate under the Leases.
The execution, delivery and performance of this Agreement and the Sale have been duly authorized by
all necessary corporate action on the part of Seller. No approvals or consents are required to
execute and deliver this Agreement and to consummate the Sale other than the appropriate regulatory
approvals and third party consents for the assignment of contractual obligations, where required,
and the Landlord Consent to Assignment.

          (c) Absence of Conflict, Breach or Violation. Neither the execution and delivery of this
Agreement nor the consummation of the Sale, will: (1) result in a breach of Seller’s
Articles of Incorporation or By-Laws; (2) result in a material breach of any term, condition
or provision of, give rise to any right of termination, cancellation or acceleration with respect
to or result in the creation of any material lien, charge or encumbrance upon any property or asset
of Seller used in connection with the business of the Branches, pursuant to any note, bond,
mortgage, indenture, license, agreement or other written instrument or obligation to which Seller

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is a party, other than the Landlord Consent to Assignment required under the Leases; or (3) subject
to the receipt of the appropriate regulatory approvals, violate any statute, law, writ, injunction,
decree, regulation or order of any governmental or regulatory authority applicable to Seller.

          (d) Binding Obligation. This Agreement constitutes the legal, valid and binding obligation of
Seller (subject to receipt of the appropriate regulatory approvals) enforceable in accordance with
its terms, except as the enforceability may be limited by bankruptcy, insolvency, reorganization,
fraudulent conveyance, conservatorship, receivership or similar laws affecting the enforcement of
creditors’ rights generally and general equitable principles (regardless of whether the issue of
enforceability is considered in a proceeding in equity or at law).

          (e) Title to Assets. Seller is the sole owner of each of the Assets free and clear of any
mortgage, lien, encumbrance or restriction of any kind or nature, but subject to the terms of the
Leases.

          (f) Real Estate. Except as otherwise provided in this Agreement, Seller makes no
representation with respect to the condition of the Real Estate (environmental or otherwise).
Seller has not received any notices that it is not in compliance with any applicable laws,
regulations, statutes, rules and restrictions pertaining to and affecting the Real Estate. There
is no condemnation or similar proceeding pending or to the Seller’s knowledge threatened which
would preclude or impair the use of the Branches as presently being used in the conduct of the
business of Seller. Seller is not subject to any agreement, order, judgment, decree or memorandum
by or with any court, governmental authority, regulatory agency or third party imposing liability
with respect to the Real Estate or limiting or restricting the use of the Real Estate materially as
currently being used. There are no agreements, contracts, leases, occupancy agreements, licenses
or possessory agreements, written or oral, entered into by Seller or otherwise known to Seller that
would affect or impair the use or operation of the Real Estate, but subject to the Lease terms.
There are no unsatisfied requests received by Seller for repairs, restorations or improvements with
respect to the Real Estate from any person, entity or authority, including any tenant, landlord,
insurance carrier or governmental authority. The Real Estate is being purchased in “as is”
condition.

          (g) Compliance with Environmental Laws. To the knowledge of Seller, neither Seller, nor
Seller’s employees, agents or invitees have used, stored, deposited, treated, recycled or disposed
of any substances at the Branches, which substances if known to be present on, at or under such
property would require clean-up, removal or some other remedial action under any Environmental Law.
There is no legal, administrative, arbitral or other proceeding, claim, action, cause of action or
governmental investigation pending or, to the best knowledge of Seller, threatened which seeks to
impose on Seller in connection with the Branches any material liability arising under an
Environmental Law. Seller has delivered to Buyer true and complete copies and results of all
reports, studies, analyses, tests or monitoring possessed or initiated by Seller
pertaining to the Real Estate, including without limitation all documents related to any Phase
I environmental assessment or physical examination and investigation of the Real Estate. For
purposes of this Agreement, “Environmental Law” means any federal or state law, regulation or
common law ruling applied by a federal or state court or agency that governs: (A) health, safety

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and sanitation; (B) the protection of the environment or human health or welfare; (C) the presence,
investigation, correction, abatement, remedy, restoration or cleanup of a Hazardous Substance; (D)
the closure of a treatment, storage or disposal facility; (E) the use, storage, treatment,
generation, transportation, processing, handling, production or disposal of a Hazardous Substance;
(F) the protection of the environment from spilled, released, discharged or deposited Hazardous
Substances; or (G) the reimbursement or contribution for the costs of responding to the presence of
a Hazardous Substance. “Hazardous Substance” means a substance, contaminant, pollutant, chemical,
material or waste which is considered to be hazardous or toxic under an Environmental Law.

          (h) Condition of Assets. The Fixtures and Equipment are being purchased in “as is” condition.

          (i) Loans.

               (1) All of the Loans were made in accordance with the customary lending standards of Seller in
the ordinary course of business. The Loans are evidenced by documentation reasonably necessary to
create the obligations described therein, and are consistent with the customary and ordinary past
practices of Seller. Without limiting the generality of the foregoing, to Seller’s knowledge each
of the notes, documents and agreement entered into in connection with the Loans (the “Loan
Agreements”) has been executed by the respective obligors, each of whom, at the time of such
execution, had capacity or authority to contract, as applicable, and any signature on any Loan
Agreement is the true signature of the obligor on the Loan involved.

               (2) Each Loan was solicited, originated and currently exists in material compliance with all
applicable requirements of federal laws and regulations promulgated thereunder and to the extent,
if any, that their applicability to Seller is not preempted by federal laws and regulations, state
and local laws and regulations promulgated thereunder (for purposes of this clause (2), a Loan
would not be in material compliance if the noncompliance adversely affects the value or
collectability of the Loan or subjects the lender to any penalty or liability).

               (3) Seller has provided to Buyer a true and accurate file of each Loan, including accrued and
unpaid interest thereon, which data shall be updated at and as of the Estimation Date and which
data shall be further updated as of the Closing Date, and, in each case as updated, shall be true
and accurate as of such date. There are no misrepresentations of material facts made by officers
or employees of Seller in the credit files relating to the Loans. As of the Closing Date, Seller
will have delivered to Buyer the originals of all the Loan Agreements, including the promissory
notes and other documentation relating to the Loans and the documentation relating to the
collateral securing the Loans.

               (4) None of the Loans is presently serviced by third parties, and there are no obligations,
agreements or understandings whatsoever that could result in any such Loan becoming subject to any
such third party servicing.

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               (5) The Loans are enforceable against each of the obligors thereto in accordance with their
terms, subject to bankruptcy, insolvency, reorganization and other similar laws affecting the
enforcement of creditors’ rights, generally and to general principles of equity, whether considered
in a proceeding at law or in equity. To Seller’s knowledge, there is no valid claim or valid
defense (including the defense of usury) to the enforcement of any Loan or a valid right of setoff
or rescission and no such right has been asserted with respect thereto.

               (6) Seller is not in default under any of the Loans. To Seller’s knowledge, no event has
occurred, which with the passage of time, will cause any obligor to be in a default under any Loan,
and to Seller’s knowledge, no obligor under any Loan is in default thereunder.

               (7) Each of the Loans may be assigned to Buyer without the approval or consent of any obligor.

          (j) Collateral. With respect to each Loan that is secured by collateral, all required actions
have been properly taken to create a perfected mortgage or security interest in the respective
collateral and, except as set forth on Schedule 13(j), each such Loan is secured by a senior
perfected mortgage or security interest in the collateral in favor of Seller as mortgagee or
secured party and fully enforceable in favor of Seller. No collateral has been released from the
lien granted to Seller or subordinated to a claim of a third party (or any other claim against the
borrower held by Seller) unless approved by Seller and documented in the Records. As of the date
hereof Seller has not issued any letters of credit included in, or in respect of, any Loans.

          (k) Third-Party Claims. There are no claims, actions, suits or proceedings of any kind in any
court or before any governmental authority or arbitration board or tribunal, that are pending or,
to Seller’s knowledge, threatened against or affecting Seller, the Assets or the Deposits, that, if
determined adversely to Seller, could: (i) reasonably be expected to have a material adverse
effect on the Assets or the Deposits; or (ii) prohibit consummation of the Sale. There is no
decree, judgment, or order of any kind in existence, against, affecting or restraining Seller or
any of its officers, employees, or directors, from taking any actions of any kind in connection
with the performance of this Agreement and the Sale.

          (l) Deposit Liabilities. Exhibit D includes a true and accurate list of all Deposits,
and related information, prepared as of a date within two (2) days prior to the date of this
Agreement. Exhibit D shall be updated at and as of the Estimation Date and the Closing
Date, and, in each case as updated, shall be true and accurate as of such date. All of the
Deposits domiciled at the Branches were accepted and remain in compliance in all material respects
with all applicable laws, orders and regulations. All of the Deposits were originated and
administered and are in compliance with the documents governing the relevant type of Deposit.
Seller has properly accrued interest on the Deposits, and the Records respecting the Deposits
accurately reflect such accruals of interest. The Deposits are in all material respects genuine
and enforceable obligations of Seller. The balance of each Deposit as shown on Seller’s books and
records as of the close of business on the Closing Date will be true and correct in all material
respects. Seller
has the right to transfer or assign each of the Deposits to Buyer subject to receipt of
applicable regulatory approvals. The Deposits are insured to the maximum extent permitted by the
FDIC. Seller has filed all reports and paid all premiums required under the Federal Deposit
Insurance

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Act, as amended, with respect to the maintenance of deposit insurance. No action is
pending, or to the knowledge of Seller, threatened by the FDIC with respect to the termination of
deposit insurance with respect to the Deposit Liabilities.

          (m) No Violation of Laws. Seller is in compliance in all material respects with all statutes
and regulations applicable to the conduct of its banking business at the Branches and has not
received written notification from any agency or department of federal, state or local government
asserting a violation of any such statute or regulation, threatening to revoke any license,
franchise, permit or government authorization material to the conduct of the banking business at
the Branches or restricting the operation of the banking business at the Branches.

          (n) Certain Labor and Employment Matters. Seller has provided or made available to Buyer a
complete list of all employees employed at the Branches. There are no labor controversies pending,
or to the best knowledge of Seller, threatened against Seller with respect to the operation of the
Branches.

          (o) No Defaults. Seller is not in material default under any material agreement, commitment,
arrangement, insurance policy or other instrument relating to the Branches, including, without
limitation, the Leases, and to the best knowledge of Seller there has not occurred any event that,
with the lapse of time or giving of notice or both, would constitute such a default. The Leases
may be assigned to Buyer by Seller without the approval or consent of any other person, other than
the Landlords with respect to the Leases. Seller has delivered to Buyer true and correct copies of
each of the Leases and all attachments and addenda thereto

          (p) Governmental Notices. Seller has not received notice from any federal or state
governmental agency indicating that it would oppose or not grant or issue its consent or approval,
if required, with respect to the Sale. The most recent CRA rating received by Seller was not less
than “satisfactory.”

          (q) No Adverse Litigation. There is no investigation, action, arbitration, suit, proceeding
or claim or governmental proceeding pending or, to the best knowledge of Seller, threatened against
Seller which would materially and adversely affect the Sale.

     14. Buyer’s Representations and Warranties. Buyer represents and warrants to Seller as
follows:

          (a) Corporate Status. Buyer is duly organized, validly existing and in good standing under
the laws of the jurisdiction in which it is chartered.

          (b) Corporate Authority. Buyer has full corporate power and authority to consummate the
transaction contemplated by this Agreement. The execution, delivery and performance of this
Agreement and the Sale have been duly authorized by all necessary corporate action on the part of
Buyer. No other approvals or consents are required to consummate the Sale other than the
appropriate regulatory approvals and third party consents for the assignment of contractual
obligations, where required, and the Landlord Consent to Assignment.

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          (c) Absence of Conflict or Breach. Neither the execution and delivery of this Agreement nor
the consummation of the Sale will: (1) result in a breach of Buyer’s Articles of Incorporation or
By-Laws; (2) result in a breach of any material term, condition or provision of, give rise to any
right of termination, cancellation or acceleration pursuant to any material note, bond, mortgage,
indenture, license, agreement or other material instrument or obligation to which Buyer is a party
or by which Buyer is bound; or (3) subject to the receipt of the appropriate regulatory approvals,
violate or conflict with any statute, law, decree, regulation or order of any governmental or
regulatory authority applicable to Buyer.

          (d) Binding Obligation. This Agreement constitutes the legal, valid and binding obligation of
Buyer (subject to receipt of the appropriate regulatory approvals) enforceable in accordance with
its terms, except as the enforceability may be limited by bankruptcy, insolvency, reorganization,
fraudulent conveyance, conservatorship, receivership or similar laws affecting the enforcement of
creditors’ rights generally and general equitable principles (regardless of whether the issue of
enforceability is considered in a proceeding in equity or at law).

          (e) Third-Party Claims. There are no claims, actions, suits or proceedings of any kind in any
court or before any governmental authority or arbitration board or tribunal that are pending or, to
Buyer’s knowledge, threatened against or affecting Buyer that, if determined adversely to Buyer,
could: (i) reasonably be expected to have a material adverse effect on Buyer; or (ii) prohibit
consummation of the Sale. There is no decree, judgment, or order of any kind in existence,
against, affecting or restraining Buyer or any of its officers, employees, or directors from taking
any actions of any kind in connection with the performance of this Agreement and the Sale.

          (f) Regulatory Matters. Buyer has received no notice or communication from any state or
federal banking regulatory agency or authority indicating that such agency or authority would, and
Buyer has no reason to believe any such agency or authority would, object to, or withhold any
approval or consent necessary for, the consummation by Buyer of the Sale. There are no pending or,
to the best of Buyer’s knowledge, threatened legal or governmental proceedings against Buyer or any
affiliate of Buyer that would affect Buyer’s ability to obtain the regulatory approvals required in
order to consummate the Sale.

     15. Seller’s Covenants. Seller covenants as follows:

          (a) Activity in the Ordinary Course. From the date of this Agreement until the Effective
Time, Seller will conduct the business of the Branches substantially in the same manner as
previously conducted and will maintain the Branches in the ordinary and usual manner. In addition,
Seller will (1) use its commercially reasonable efforts to preserve for Buyer the goodwill of its
customers and others doing business with the Branches and maintain and preserve intact its
relationships with the Branches’ personnel as the same now exists; and (2) will maintain Seller’s
normal and customary practices and procedures regarding loan pricing, underwriting and recognition
of charge-offs in a manner consistent with past practice. Without the prior consent of Buyer,
Seller will not engage, with respect to the operation and conduct of business at the Branches, in
the following between the date of this Agreement and the Effective Time:

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               (1) cause the transfer of Deposits from or to the Branches, except upon the unsolicited
request of a Branch customer in the ordinary course of business and except for Deposits relating to
trust or other fiduciary accounts;

               (2) without Buyer’s prior written consent: (A) make any loan or loan commitment which will
constitute a Loan to be transferred to Buyer, except loans and commitments made in the ordinary
course of business and consistent with past practices and safe and sound banking practices; (B)
agree to any extension of credit for any Loan that capitalizes or funds interest due thereunder; or
(C) agree to any renewal or material modification or amendment to any Loan;

               (3) transfer to Seller’s other branches any of the Assets or acquire or dispose of any
furniture, fixtures or equipment for the Branches other than pursuant to commitments made on or
before the date of this Agreement and except for replacement of furniture, fixtures and equipment
and normal maintenance and refurbishing in the ordinary course of business;

               (4) increase or agree to increase the salary, remuneration or compensation of persons employed
at the Branches other than with the consent of the Buyer, and in accordance with Seller’s customary
policies and/or bank-wide changes consistent with past practices, or pay or agree to pay any
uncommitted bonus to the Employees other than regular bonuses based on historical practice;

               (5) enter into, amend or renew or extend any employment contract;

               (6) make any improvements to any of the Branches that requires aggregate future payments in
excess of $2,500 or enter into any new contract, commitment, lease or other transaction relating to
any of the Branches (other than relating to obtainment of Landlord Consents and Estoppel Letters),
without the written consent of Buyer;

               (7) change any accounting procedures or practices;

               (8) offer any special rate promotions to customers of any of the Branches (unless such
promotions are offered generally at the other branches and offices of Seller) or offer above-market
rates on any Deposit Products;

               (9) change the products or services offered by Seller at the Branches (except to the extent
generally at the other branches and offices of Seller), including, offering new deposit products or
making any material changes to its website or internet banking activities to the extent such
changes materially affect the Assets or the Deposits; or

               (10) take, or permit any affiliate to take, any action impairing in any material respect
Seller’s rights in any Deposits or Assets or waive any material right, whether in equity or at law,
that it has with respect to any Loan (other than collection and work-out procedures undertaken in
all material respects in accordance with Seller’s normal and customary practices relating thereto).

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          (b) Access to Information. Seller will give Buyer access during normal business hours to the
properties, documents, Leases, contracts and records relating to the Branches as Buyer from time to
time may reasonably request to enable Buyer to investigate the business and properties of the
Branches in accordance with this Agreement, to prepare for an orderly transition following the
Effective Time and to prepare applications for the appropriate regulatory approvals. Seller will
not be required to breach any obligation of confidentiality or violate any law, regulation or order
regarding disclosure of information or to reveal any proprietary information, trade secrets or
marketing or strategic plans.

          (c) Non-Solicitation of Business. During the period commencing on the Effective Time and
ending on the third (3rd) anniversary of the Effective Time (the “Restricted Period”),
Seller shall not, and shall cause its affiliates not to, without the prior written consent of
Buyer, maintain, establish or relocate any branches, loan production offices or other facilities of
Seller, including automatic teller machines, within Brown County, Wisconsin. In addition, Seller
shall not, and shall cause its affiliates not to, conduct any marketing, media or customer
solicitation campaign that is targeted to induce customers whose Deposits were assumed by Buyer or
whose Loans were purchase by Buyer pursuant to this Agreement to discontinue their account or
business relationships with Buyer; provided, however, that neither Seller nor any of its affiliates
shall be restricted from general advertising and marketing not specifically directed to Brown
County, Wisconsin or to the Branches’ customers and forwarding to the Branches’ customers notices
of the transactions contemplated by this Agreement required by any governmental agency or by any
law, rule or regulation, provided that Seller will notify Buyer prior to delivering these notices..
Subject to the foregoing limitations, Seller may take such actions as are required to service any
retained loans or previously established brokerage/investment accounts.

          (d) Insurance and Maintenance of Property. Seller will insure the Branches’ property owned or
leased by it against all ordinary insurable risks required under the Leases, and will operate,
maintain and repair this property in a manner consistent with past practice. In the event a Branch
is damaged or destroyed by fire, flood, earthquake or other casualty, between the date hereof and
the Closing Date, Seller shall promptly notify Buyer in writing of such damage or destruction and
use its commercially reasonable efforts to repair such damage or cause the Landlord for such Branch
to rebuild such destroyed Branch as soon as practicable solely through application of proceeds of
insurance coverage. If on the Closing Date the Branch has not been fully repaired or replaced,
then Seller shall assign any of Seller’s unexpended insurance proceeds to Buyer. Notwithstanding
the foregoing, in the event that the Branch is materially damaged or destroyed (as determined in
Buyer’s reasonable discretion) as described above, Buyer will have the option to terminate this
Agreement by giving written notice of termination to Seller within fifteen (15) days of Buyer’s
receipt of written notice from Seller of such damage or destruction.

          (e) Compliance with Laws. Seller will comply with applicable laws, statutes, ordinances,
rules, regulations, guidelines, orders, arbitration awards, judgments and decrees applicable to or
binding on Seller or its business.

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          (f) Fulfill Conditions. Seller will use its best efforts to fulfill each of the closing
conditions on or prior to the Effective Time, including, on or before the Closing Date, securing
any required consents to assign the Leases to Buyer.

     16. Buyer’s Covenants. Buyer covenants as follows:

          (a) Buyer’s Applications for Approval. As soon as practicable following the execution of this
Agreement, but in no event later than thirty (30) days from the date of this Agreement, Buyer will
file applications as may be required by the appropriate federal and state regulatory authorities
for approval to consummate the transaction contemplated by this Agreement. Buyer promptly will
furnish Seller with copies of written communications filed with or received from any governmental
agency in connection with the transaction contemplated by this Agreement.

          (b) Use of Seller’s Name. Buyer understands and agrees that it does not have any rights to
the use of Seller’s name.

          (c) Fulfill Conditions. Buyer will use its best efforts to fulfill each of the closing
conditions on or prior to the Effective Time.

     17. Further Assurances. Seller will deliver to Buyer other written documents, instruments,
releases or otherwise as Buyer reasonably may require to effectuate the provisions of this
Agreement, including effectuating the proper transfer of the Assets and Deposits. Seller will bear
the cost of preparing any such transfer documents and Buyer will bear all other costs with respect
to these documents, including filing costs, recording fees and transfer fees.

     18. Best Efforts. Buyer and Seller will use their best efforts in good faith to: (a) furnish
information as may be required in connection with the preparation of the applications with and
notifications to federal and state regulatory authorities; (b) ensure that prior to and following
the Effective Time the transaction contemplated by this Agreement is completed in an orderly and
efficient manner; and (c) take all action necessary or desirable to permit consummation of the
transactions contemplated by this Agreement at the earliest possible date, including satisfying any
conditions imposed by regulatory authorities in connection with the approval of the transactions
contemplated by this Agreement; provided, however, that Buyer shall have no obligation to accept
nonstandard conditions or restrictions imposed by such regulatory authorities. Neither Buyer nor
Seller will take any action that would substantially impair the prospects of completing the
transaction contemplated by this Agreement.

     19. Confidentiality. Neither Buyer nor Seller will use any information obtained pursuant to
this Agreement for any purpose unrelated to this Agreement. Both parties will hold in confidence
all information and documents obtained pursuant to this Agreement, and will request confidential
treatment before any information or documents are submitted in connection with any application for
regulatory approval, unless the information otherwise becomes publicly available other than through
the actions of the other party or if a party determines that the information or document is
required by law to be disclosed, in which case that party will notify the other of the impending
disclosure. In the event the Sale is for any reason not consummated,

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all confidential information
received by Buyer or Seller promptly will be returned to the other party without retaining any
copies.

     20. Conditions Precedent to Obligations of Buyer. The obligation of Buyer to consummate the
Sale will be subject to the satisfaction, on or before the Closing Date, of each of the following
conditions, all or any of which may be waived by Buyer in whole or in part:

          (a) Performance of Covenants. Each of the acts and undertakings of Seller to be performed or
complied with at or prior to the Effective Time have been performed in all material respects;
provided; however, that each of such acts and undertakings of Seller that contains an express
materiality qualification, shall have been performed or complied with in all respects at or prior
to the Closing.

          (b) Representations True at Closing. The representations and warranties made by Seller are
true and correct in all material respects on the Closing Date with the same force and effect as
though they were made on and as of that time (except to the extent that they may become untrue or
incorrect as a result of actions or transactions of Seller made with the written consent of Buyer);
provided; however, that each of the representations and warranties that contains an express
materiality qualification, shall be true and accurate in all respects on the Closing Date.

          (c) Certified Resolutions. Seller has furnished Buyer will a certified copy of the
resolutions adopted by its Board of Directors authorizing the Sale.

          (d) Regulatory Approvals and Other Consents. Buyer and Seller have received all necessary
federal and state regulatory approvals for the Sale, and any applicable waiting periods in the
approvals have elapsed without challenge. All other necessary consents and approvals, the absence
of which will have an adverse effect on Buyer’s rights under this Agreement or which result in the
termination or loss of any right material to the business of Seller, have been received by Buyer,
including specifically the Landlord Estoppel Letter and the Landlord Consent to Assignment for each
of the Leases.

          (e) Material Adverse Effect. From the date hereof to the Effective Time, there shall be and
have been no change that would have or would reasonably be expected to have a material adverse
effect with respect to the Deposits, the Assets or the Branches.

          (f) No Injunction. No court or governmental agency of competent jurisdiction has enjoined,
restrained or prohibited the consummation of the Sale.

          (g) Certificate of Compliance. An officer of Seller has executed a certificate, dated as of
the Closing Date, certifying that the conditions in (a), (b), (c) and (d) of this Section have been
satisfied.

     21. Conditions Precedent to Obligations of Seller. The obligation of Seller to consummate the
Sale will be subject to the satisfaction, on or before the Closing Date, of each of the following
conditions, all or any of which may be waived by Seller in whole or in part:

-22-

 

          (a) Performance of Covenants. Each of the acts and undertakings of Buyer to be performed or
complied with at or prior to the Effective Time have been performed in all material respects
provided; however, that each of such acts and undertakings of Buyer that contains an express
materiality qualification, shall have been performed or complied with in all respects at or prior
to the Closing.

          (b) Representations True at Closing. The representations and warranties made by Buyer are
true and correct in all material respects on the Closing Date with the same force and effect as
though they were made on and as of that time (except to the extent that they may become untrue or
incorrect as a result of actions or transactions of Buyer made with the written consent of Seller)
provided; however, that each of the representations and warranties that contains an express
materiality qualification, shall be true and accurate in all respects on the Closing Date..

          (c) Certified Resolutions. Buyer has furnished Seller with a certified copy of the
resolutions adopted by its Board of Directors authorizing the Sale.

          (d) Regulatory Approvals and Other Consents. Buyer and Seller have received all necessary
federal and state regulatory approvals for the Sale, and any applicable waiting periods in the
approvals have elapsed without challenge. All other necessary consents and approvals, the absence
of which have an adverse effect on Seller’s rights under this Agreement or which result in the
termination or loss of any right material to the business of Seller, have been received by Seller.
Each of the Landlords under the Leases has executed the Landlord Estoppel Letter, and the Landlord
Consent to Assignment, and Buyer has executed the Assignment of Leases.

          (e) No Injunction. No court or governmental agency of competent jurisdiction has enjoined,
restrained or prohibited the consummation of the Sale.

          (f) Certificate of Compliance. An officer of Buyer has executed a certificate, dated as of
the Closing Date, certifying that conditions (a), (b), (c), (d) and (e) of this Section have been
satisfied.

     22. Termination by the Parties. This Agreement may be terminated by the parties in any of the
following ways: (a) at any time on or prior to the Closing Date by the mutual written consent of
Buyer and Seller; (b) by Buyer in writing if any of the conditions in Section 20 have not been
satisfied or waived in writing by Buyer as of the date which is one hundred and eighty days from
the date hereof (the “Termination Date”) (other than through the failure of Buyer to comply with
its obligations under this Agreement); (c) by Seller in writing if any of the conditions in Section
21 have not been satisfied or waived in writing by Seller as of the Termination Date (other than
through the failure of Seller to comply with its obligations under this Agreement); (d) by Seller
or Buyer in writing at any time after any regulatory authority (which may include the Federal
Deposit Insurance Corporation, Office of the Comptroller of the Currency and Office of Thrift
Supervision) has denied any application of Seller or Buyer for approval of the Sale and any appeals
have been exhausted; (e) by Buyer as provided in Section 4, Section 5(a) or
Section 15(d), (f) by Seller in writing if, as of the Closing Date, Accepted Loans and
Additional Accepted Loans as shown on Exhibit C, Parts I and II, fail to equal or
exceed the amount stated in Section 1(a)(6) and Buyer has failed to comply with the
provisions of Section

-23-

 

1(b), unless the failure of the Loans to equal or exceed such amount results
from the repayment or refinancing of any Loans prior to Closing by the borrowers thereunder, or (g)
by Seller or Buyer in writing if the Sale has not been consummated by the Termination Date
(provided that the terminating party is not then in material breach of any representation,
warranty, covenant or other agreement contained herein).

     23. Effect of Termination. If this Agreement is terminated, it will become void and neither
party will have any further liability or obligation with respect to this Agreement, except as
otherwise provided in this Agreement or except and to the extent termination results from the
breach by a party of any of its representations, warranties or covenants and except that neither
party will be relieved of its obligations under Sections 19 and 23. If this Agreement is
terminated, even if any of the Landlords under the Leases has consented to an Assignment of Leases,
such Assignment of Leases shall be terminated.

     24. Survival of Representations and Warranties. The representations and warranties in this
Agreement will survive the Closing Date as follows: (a) in the case of a fraudulent breach of a
representation or warranty, indefinitely; (b) in the case of a claim based upon a breach of a
representation or warranty pertaining to taxes, for a period equal to the applicable statute of
limitations; and (c) in the case of all other claims, including those based upon the inaccuracy or
breach of a representation or warranty as they relate to the Assets and the Deposits, for a period
commencing on the Closing Date and ending eighteen (18) months after the Closing Date. Nothing in
this Section limits the right of either Buyer or Seller to assert a claim for contribution or
indemnification against the other party as a result of a claim brought by a third party against
Buyer or Seller, provided that any claim for contribution or indemnification will be brought within
one year from the date the third party’s action is commenced.

     25. Indemnification.

          (a) Seller. Seller will indemnify and hold Buyer harmless from and against any loss, cost,
expense or other damage (including attorneys’ fees, costs and expenses) resulting from, arising out
of, or incurred with respect to: (1) the breach of a representation or warranty made by Seller in
this Agreement or in any document delivered pursuant to this Agreement; (2) the breach of a
covenant made by Seller in this Agreement; (3) any debts, obligations, contracts and liabilities of
Seller not assumed by Buyer; or (4) claims asserted against Buyer by a third party as a result of
any acts or omissions of Seller prior to the Effective Time.

          (b) Buyer. Buyer will indemnify and hold Seller harmless from and against any loss, cost,
expense or other damage (including attorneys’ fees, costs and expenses) resulting from, arising out
of, or incurred with respect to: (1) the breach of a representation or warranty made by Buyer in
this Agreement or in any document delivered pursuant to this Agreement; (2) the breach of a
covenant made by Buyer in this Agreement; or (3) any debts, obligations, contracts or liabilities
of Seller assumed by Buyer pursuant to this Agreement, unless the loss, cost, expense or other
damage occurred as a result of an act or omission which occurred prior to the Effective Time.

-24-

 

          (c) Claims. Any claim for indemnification under this Section must be asserted within the
applicable survival period, and if not asserted within that period the right to assert the claim
will lapse. Except for claims asserted by a third party, the indemnifying party will not have any
liability for a claim until the aggregate amount of the liability of the indemnifying party for all
claims hereunder exceeds $25,000, at which time that party will have liability for the amount of
the claim exceeding $25,000 and all additional claims made thereafter. In no event will Seller’s
liability for indemnification exceed the sum of the amounts listed in Section 3(a)(3) through (6).

          (d) Exclusive Remedy. The indemnification provided by this Section is the sole and exclusive
remedy with respect to any claim of any party to this Agreement against any other party to this
Agreement in connection with the Sale, and the remedy provided in this Section will be in lieu of
any other claims or actions that might otherwise have been available at law or in equity.

     26. Defense of Claims. If any third party asserts a claim against Buyer which, if successful,
would entitle Buyer to indemnification under this Agreement, Buyer will give notice of the claim to
Seller and Seller will have the right to assume the defense of the claim at its expense with
counsel reasonably satisfactory to Buyer, provided Seller diligently pursues the defense of the
claim. If Seller does assume the defense, it will indemnify and hold Buyer harmless from and
against any and all losses, damages and liabilities caused by or arising out of any settlement or
judgment of such claim. In addition, Buyer will have the right to participate in the defense of
the claim at its expense, in which case Seller will cooperate in providing information to and
consulting with Buyer about the claim and Seller will not consent to the entry of judgment or enter
into any settlement without the prior written consent of Buyer. If Seller does not assume the
defense of the claim, Buyer may defend against and/or settle the claim in the manner and on the
terms as it in good faith deems appropriate and will be indemnified for the amount of any judgment
or settlement and for all losses or expenses, legal or otherwise, incurred in connection with the
defense and/or settlement of the claim. Failure by Seller to give written notice to Buyer of its
election to defend the claim within thirty (30) days after written notice of the claim is given to
Seller by Buyer will be deemed a waiver of Seller’s right to defend the claim.

     27. Public Announcements. Seller and Buyer will agree as to the timing, form and substance of
any press release relating to the Sale, provided that nothing will prohibit either party from
making any disclosure which it deems necessary to comply with applicable law.

     28. Exhibits. On or before the date of this Agreement, Seller will provide Buyer with certain
information related to the business of the Branches, attached to this Agreement as exhibits and
incorporated in this Agreement by reference.

     29. Brokers. Buyer and Seller each represent and warrant that all negotiations relative to
the Sale have been carried on without the intervention of any third parties, except for Sandler
O’Neill & Partners, LLP, the fees, costs and expenses of which Seller shall be solely liable.

-25-

 

     30. Payment of Expenses. Except as otherwise expressly provided in this Agreement, each party
will bear and pay all costs and expenses incurred by it or on its behalf in connection with the
Sale, including expenses incurred in connection with regulatory approvals or for any notices to the
Branches’ customers.

     31. Entire Agreement. This Agreement constitutes the entire agreement between the parties
pertaining to the subject matter of the Sale and supersedes all negotiations, preliminary
agreements and all prior or contemporaneous discussions and understandings of the parties.

     32. Amendments. No amendment, change, modification or waiver of any of the terms of this
Agreement are effective unless made in writing and executed by both parties.

     33. Assignment. This Agreement is binding upon, and will inure to the benefit of, the parties
and their respective successors and permitted assigns, but neither this Agreement nor any of the
rights, interests or obligations under this Agreement may be assigned by either party without the
prior written consent of the other.

     34. Addresses for Notice. All communications provided for under this Agreement must be in
writing and will be deemed given when delivered personally, telecopied (with confirmation) or
mailed by registered or certified mail (return receipt requested) to the other party at the
following address (or such other address as specified in writing):

	 	 	 	 	 

	If to Seller:	with a copy to:
	 
	 	 	 	 
	 

	 	AnchorBank, fsb
	 	W. Charles Jackson
	 

	 	c/o Mark D. Timmerman
	 	Michael Best & Friedrich, LLP
	 

	 	25 Main Street
	 	100 East Wisconsin Avenue
	 

	 	Madison, WI 53703
	 	Milwaukee, WI 53202
	 

	 	Fax: (608) 252-8783
	 	Fax: (414) 277-0656
	 
	 	 	 	 
	If to Buyer:	with a copy to:
	 

	 	Nicolet National Bank
	Sarah M. Bernstein
	 

	 	c/o Michael E. Daniels
	 	Barack Ferrazzano et al
	 

	 	111 North Washington Street
	 	200 W. Madison Street, Suite 3900
	 

	 	P.O. Box 23900
	 	Chicago, IL 60606
	 

	 	Green Bay, WI 54305-3900
	 	Fax: (312) 984-3150
	 

	 	Fax: (920) 617-5599	 	 

     35. Counterparts. This Agreement and all other documents executed in connection with the Sale
may be executed in two or more counterparts, each of which will be deemed an original, but all of
which together will constitute one and the same instrument.

     36. Severability. If any provision contained in this Agreement becomes illegal, null or void
or against public policy, the remaining provisions will not be affected.

-26-

 

     37. Governing Law. This Agreement will be governed by and construed in accordance with the
laws of Wisconsin.

[Signature Page Follows]

-27-

 

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

	 	 	 	 	 	 	 	 	 	 	 

	SELLER	 	 	 	BUYER	 	 
	AnchorBank, fsb	 	 	 	Nicolet National Bank	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:

	 	 	 	 	 	By:	 	 	 	 
	 

	 	 
	 	 	 	 	 	 	 	 
	Name:

	 	Mark Timmerman
	 	 	 	Name:	 	 	 	 
	 

	 	 
	 	 	 	 	 	 	 	 
	Title:

	 	President
	 	 	 	Title:	 	 	 	 
	 

	 	 
	 	 	 	 	 	 	 	 

-28-

 

INDEX OF EXHIBITS

A. Description of Branches

B. Description of Fixtures and Equipment

C. Loans

D. Deposits (as of a date within two (2) days of the Agreement)

E. Form of Landlord Estoppel Letter (to be agreed by Buyer and Seller within thirty (30) days after
execution of the Agreement)

F. Form of Landlord Consent to Assignment of Leases (to be agreed by Buyer and Seller within thirty
(30) days after execution of the Agreement)

G. Form of Bill of Sale and Receipt

H. Form of Assignments

 

 

Exhibit A

DESCRIPTION OF BRANCHES

The “Branches” shall be defined as follows:

AnchorBank, fsb Ashwaubenon Office

2363 Holmgren Way

Green Bay, WI 54304

AnchorBank, fsb Bellevue Office

2082 Monroe Road

De Pere, WI 54115

AnchorBank, fsb De Pere Office

1610 Lawrence Drive

De Pere, WI 54115

AnchorBank, fsb Howard Office

2380 Dousman Street, Suites 100 and 200

Green Bay, WI 54303-3300

The “Real Estate” shall be defined as follows:

The leasehold interest owned by Seller in the real estate on which the
Branches are located, which leasehold interest arises out of the Leases for
the Branches.

The “Leases” shall be defined as follows:

The Lease for the Ashwaubenon Office:

Lease between Holmgren Way Investments, LLC as Landlord and AnchorBank, fsb
as Tenant, dated January 22, 2007, including Easements with Covenants and
Restrictions Affecting Land, and Amendment to Lease Agreement dated March
30, 2007, Second Amendment to Lease Agreement dated October 16, 2007, and
Rent Commencement Agreement dated November 11, 2007.

The Lease for the Bellevue Office:

Lease between Land Gallery, LLC as Landlord and Anchorbank, fsb as Tenant
dated March 10, 2004, September 2, 2004 Rent Commencement Letter, and First
Amendment to Lease dated may 30, 2008.

The Lease for the DePere Office:

Lease between John Walsh as Landlord and Anchorbank, fsb as Tenant dated
June 28, 2005, Rent Commencement Letter dated December 13, 2005, and First
Amendment to Lease dated May 30, 2008.

 

 

The Lease for the Howard Office: Retail Branch:

Lease dated March 9, 2001 between BLP Holdings III, LLC as Landlord and
AnchorBank, fsb as Tenant for Suite 100, and First Amendment to Lease
Agreement effective July 13, 2001.

Lease Agreement for Howard Office- Commercial Lending:

Lease dated March 9, 2001 between BLP Holdings III, LLC as Landlord and
AnchorBank, fsb as Tenant for Suite 200, and First Amendment to Lease
Agreement effective July 13, 2001.

 

 

Exhibit B

DESCRIPTION OF FIXTURES AND EQUIPMENT

 

 

Exhibit C

LOANS

See Attached Schedules — Part I and Part II

 

 

Exhibit D

DEPOSITS

See Attached Schedule

 

 

Exhibit E

FORM OF LANDLORD ESTOPPEL LETTER

(to be agreed by Buyer and Seller within thirty (30) days after execution of the Agreement)

 

 

Exhibit F

FORM OF LANDLORD CONSENT TO ASSIGNMENT

(to be agreed by Buyer and Seller within thirty (30) days after execution of the Agreement)

 

 

Exhibit G

FORM OF BILL OF SALE AND RECEIPT

BILL OF SALE

     BILL OF SALE, dated as of                     , 2010, from AnchorBank, fsb, a federal
savings bank (“Seller”), to Nicolet National Bank, a national banking association
(“Buyer”).

     1. Pursuant to the Branch Sale Agreement dated as of May 4, 2010 between Buyer and Seller (the
"Agreement”) and without recourse, representation or warranty except as provided in the Agreement,
for good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged,
Seller hereby sells, assigns, transfers, conveys and delivers to Buyer and its successors and
assigns, the Assets, free and clear of all liens, charges and encumbrances, (except as defined in
the Agreement).

     2. The property and rights herein transferred and assigned shall be construed to be in
addition to any other assignment or transfer of property or rights made by Seller to Buyer on this
date and the effect to be given this instrument shall be cumulative with, and not in limitation of,
any other rights that have heretofore been granted by Seller to Buyer.

     3. Seller hereby agrees that it, from time to time, at the request of Buyer and without
further consideration, will execute and deliver such further instruments of conveyance, transfer
and assignment and will take such other action as Buyer may reasonably request in order to
effectively convey and transfer to Buyer the Assets.

     4. This instrument shall be binding upon, and inure to the benefit of, the parties hereto and
their respective successors and assigns.

     5. This Bill of Sale may be executed in two or more counterparts, each of which shall be an
original, but such counterparts shall together constitute one and the same agreement.

     IN WITNESS WHEREOF, Seller has caused this instrument to be executed by its duly authorized
officer as of the day and year first written above.

	 	 	 	 	 	 	 

	 	 	ANCHORBANK, FSB	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 

 

 

RECEIPT

     Delivery and receipt of the Assets, as defined above, is hereby acknowledged as of                     ,
2010.

	 	 	 	 	 	 	 

	 	 	NICOLET NATIONAL BANK	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 

 

 

Exhibit H

FORMS OF ASSIGNMENTS

ASSIGNMENT AND ASSUMPTION OF ACCOUNTS AGREEMENT

     This Assignment and Assumption of Accounts Agreement is made and entered into as of
                    , 2010, by and between AnchorBank, fsb, a federal savings bank (“Seller”),
and Nicolet National Bank, a national banking association (“Buyer”).

R E C I T A L S:

     A. Seller and Buyer have entered into a Branch Sale Agreement dated as of May 4, 2010 (the
“Agreement”).

     B. In accordance with the terms and conditions of the Agreement, Seller desires to assign and
Buyer desires to assume the Deposits (as defined in the Agreement), a schedule of which Deposits is
attached as Exhibit A hereto and hereby made a part hereof.

     C. Seller and Buyer have obtained all corporate, governmental, regulatory and other approvals
required in connection with the consummation of the transactions contemplated by the Agreement.

AGREEMENTS

     NOW, THEREFORE, in consideration of the foregoing premises, which are incorporated herein by
this reference, and the mutual promises, covenants and agreements hereinafter set forth, and for
other good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, Seller and Buyer hereby agree as follows:

     1. Capitalized terms used but not defined herein shall have the meanings set forth in the
Agreement.

     2. All in accordance with the provisions of the Agreement and without recourse, representation
or warranty except as provided in the Agreement, effective as of the Effective Time, Seller hereby
assigns to Buyer, and Buyer hereby assumes the Deposits.

     3. By execution hereof, Buyer agrees, effective as of the Effective Time, to be bound by all
of the terms, covenants and conditions of the agreements creating the Deposits (the “Deposit
Agreements”) and Buyer agrees to assume and thereafter discharge, pay in full and perform all of
Seller’s obligations, duties and liabilities relating to the Deposits, as set forth in the Deposit
Agreements from and after the Effective Time.

     4. As of the Effective Time, all of the Deposits shall become deposit liabilities of Buyer of
the same amount, terms, rate and maturity.

     5. Nothing contained herein or in the Agreement shall preclude Buyer from changing the terms
or rates with respect to the Deposits after the Effective Time if it may lawfully do so.

 

 

     6. This Assignment and Assumption of Accounts Agreement may be executed in two or more
counterparts, each of which shall be an original, but such counterparts shall together constitute
one and the same agreement.

 

 

     IN WITNESS WHEREOF, the parties hereto have caused this Assignment and Assumption of Accounts
Agreement to be executed by their respective duly authorized officers as of the day and year first
written above.

	 	 	 	 	 	 	 

	 	 	ANCHORBANK, FSB	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	NICOLET NATIONAL BANK	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 

 

 

ASSIGNMENT AND ASSUMPTION OF LOANS AGREEMENTS

     This Assignment and Assumption of Loans Agreements is made and entered into as of
                    , 2010, by and between AnchorBank, fsb, a federal savings bank (“Seller”),
and Nicolet National Bank, a national banking association (“Buyer”).

RECITALS

     A. Seller and Buyer have entered into a Branch Sale Agreement dated as of May 4, 2010 (the
“Agreement”).

     B. In accordance with the terms and conditions of the Agreement, Seller desires to sell and
assign and Buyer desires to purchase and assume the loans set forth on Exhibit A attached hereto
(the “Loans”), which Exhibit A is hereby incorporated herein by reference.

     C. Seller and Buyer have obtained all corporate, governmental, regulatory and other approvals
required in connection with the consummation of the transactions contemplated by the Agreement.

AGREEMENTS

     NOW, THEREFORE, in consideration of the foregoing premises, which are incorporated herein by
this reference, and the mutual promises, covenants and agreements hereinafter set forth, and for
other good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, Seller and Buyer hereby agree as follows:

     Capitalized terms used but not defined herein shall have the meanings set forth in the
Agreement.

1. Capitalized terms used but not defined herein shall have the meanings set forth in the
Agreement.

2. All in accordance with the provisions of the Agreement and without recourse, representation
or warranty except as provided in the Agreement, effective as of the Effective Time, Seller
hereby sells, transfers and assigns to Buyer, and Buyer hereby purchases from Seller, all of
Seller’s right, title and interest in and to the Loans.

3. By execution hereof, Buyer agrees, effective as of the Effective Time, to be bound by all of
the terms, covenants and conditions of the agreements creating the Loans (the “Loan Agreements”)
and Buyer agrees to discharge the duties and obligations of Seller with respect to the Loan
Agreements.

4. As of the Effective Time, all of the Loans shall become loans of Buyer of the same amount,
terms, rate and maturity.

5. Nothing contained herein or in the Agreement shall preclude Buyer from changing the terms or
rates with respect to the Loans after the Effective Time if it may lawfully do so.

 

 

6. This Assignment and Assumption of Loans Agreements may be executed in two or more
counterparts, each of which shall be an original, but such counterparts shall together
constitute one and the same agreement.

(Signature page to follow)

 

 

     IN WITNESS WHEREOF, the parties hereto have caused this Assignment and Assumption of Loans
Agreements to be executed by their respective duly authorized officers as of the day and year first
written above.

	 	 	 	 	 	 	 

	 	 	ANCHORBANK, FSB	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	NICOLET NATIONAL BANK	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 

 

 

Assignment, Transfer and Appointment of

Successor Custodian for Individual Retirement Accounts

     This Assignment, Transfer and Appointment of Successor Custodian for Individual Retirement
Accounts is made and entered into as of                     , 2010, by and between AnchorBank,
fsb, a federal savings bank (“Seller”), and Nicolet National Bank, a national banking
association (“Buyer”).

RECITALS

     A. Seller and Buyer have entered into a Branch Sale Agreement dated as of May 4, 2010 (the
"Agreement”).

     B. In accordance with the terms and conditions of the Agreement, Seller desires to assign and
Buyer desires to assume the custodianship of the Individual Retirement Accounts (including Roth
IRAs) set forth on Exhibit A attached hereto (the “Acquired IRAs”), which Exhibit A is hereby
incorporated herein by reference.

     C. Seller and Buyer have obtained all corporate, governmental, regulatory and other approvals
required in connection with the consummation of the transactions contemplated by the Agreement.

AGREEMENTS

     Now, Therefore, in consideration of the foregoing premises, which are incorporated
herein by this reference, and the mutual promises, covenants and agreements hereinafter set forth,
and for other good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, Seller and Buyer hereby agree as follows:

	 	1.	 	Capitalized terms used but not defined herein shall have the meanings set forth in the
Agreement.
	 
	 	2.	 	All in accordance with the provisions of the Agreement and without recourse,
representation or warranty except as provided in the Agreement, effective as of the
Effective Time, Seller hereby assigns to Buyer, and Buyer hereby assumes the custodianship
of, the Acquired IRAs and all of the records, files, correspondence and documentation
relating to the Acquired IRAs.
	 
	 	3.	 	Seller hereby resigns as custodian and appoints Buyer as successor custodian of the
Acquired IRAs, effective as of the Effective Time.
	 
	 	4.	 	Seller hereby agrees that it will, from time to time at the request of Buyer and
without further consideration, execute and deliver such further instruments of resignation
or appointment and will take such other action as Buyer may reasonably request in order to
effectively resign as custodian of the Acquired IRAs and appoint Buyer as successor
custodian of the Acquired IRAs.

 

 

     IN WITNESS WHEREOF, the parties hereto have caused this Assignment, Transfer and Appointment
of Successor Custodian for Individual Retirement Accounts to be executed by their respective duly
authorized officers as of the day and year first written above.

	 	 	 	 	 	 	 

	 	 	ANCHORBANK, FSB	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	NICOLET NATIONAL BANK	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:exv10w36

Exhibit 10.36

EXECUTION VERSION

BRANCH SALE AGREEMENT

Between

AnchorBank, fsb

and

Royal Credit Union

November 13, 2009

 

 

BRANCH SALE AGREEMENT

          THIS BRANCH SALE AGREEMENT is made as of November 13, 2009 (the “Agreement”), between
AnchorBank, fsb (“Seller”) and Royal Credit Union (“Buyer”).

WITNESSETH:

          WHEREAS, Seller desires to transfer certain assets and liabilities of the branch offices
identified on Exhibit A (the “Branches”) to Buyer; and

          WHEREAS, Buyer desires to purchase such assets and assume such liabilities;

          NOW, THEREFORE, in consideration of the mutual agreements contained in this Agreement and
other good and valuable consideration, the receipt and sufficiency of which are acknowledged,
Seller and Buyer agree as follows:

     1. Transfer of Assets, Liabilities and Deposits. As of 12:01 a.m. on the closing date
agreed to by the parties (or as of 12:01 a.m. on the following business day if the closing date
is on a Friday or before a legal holiday) (the “Effective Time”), Seller will sell, assign and
transfer to Buyer (i) the assets of the Branches as set forth below in Section 1(a) as of the
Effective Time (the “Assets”), (ii) Seller’s obligations with respect to the unfunded portions of
outstanding lines of credit and loan commitments as set forth below in Section 1(b), as of the
Effective Time (the “Unfunded Obligations”), and (iii) the deposits of the Branches as set forth
below in Section 1(c) as of the Effective Time (the “Deposits”) free and clear of all liens and
encumbrances of any kind except as disclosed in this Agreement or on the attached Exhibits, and
Buyer will purchase the Assets and assume Seller’s obligations with respect to the Unfunded
Obligations and the Deposits, and with respect to the Leases, Service Contracts and contractual
obligations assumed by Buyer, as contemplated in Section 1(a)(1) and (2), below (the “Assumed
Obligations”).

          (a) Assets. For purposes of this Agreement, “Assets” means all of Seller’s right, title and
interest in and to:

               (1) (i) Seller’s right, title and interest in the real estate owned in fee by Seller upon
which certain of the Branches are located, including all fixtures and improvements located thereon
and all of Seller’s appurtenant rights therein, as such real estate is more fully described on the
attached Exhibit A (the “Owned Real Estate”), and (ii) Seller’s right, title, and interest
in the real estate leased by Seller upon which certain of the Branches are located, including all
of Seller’s fixtures and improvements located thereon, and Seller’s rights and obligations under
any leases made with respect thereto (including any amendments or modifications thereto, the
“Leases”), as such real property is more fully described on the attached Exhibit A (the
“Leased Real Estate”) (collectively, the Owned Real Estate and Leased Real Estate are referred to
herein as the “Real Estate”);

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               (2) the furniture, fixtures, equipment and automated teller machines, if any, owned or leased
by Seller at the Branches, together with the furniture, fixtures or equipment of the Branches (all
as identified on Exhibit B), and contracts relating to the operation and maintenance thereof and of
the Real Estate which Buyer wishes to assume (the “Service Contracts”), but excluding computer
software, licensed goods, signs or other materials bearing the words “AnchorBank, fsb” or its
associated logos, variations or derivatives and minute books and other records of Seller not
related to the Assets, Unfunded Obligations, or Deposits (the “Fixtures and Equipment”);

               (3) the safe deposit boxes and related agreements located at the Branches;

               (4) the loans (including any pool or pools of loans assembled by Seller, which may or may not
be serviced by Seller as the parties may agree, and accepted by Buyer), other than Seller’s credit
card accounts, shown on Seller’s books and records as being attributable to the Branches on which
Buyer has completed due diligence and accepted for purchase (the “Accepted Loans” as identified on
Exhibit C) together with any additional loans agreed to be transferred (“Additional Accepted Loans”
to be identified on Exhibit D prior to the Effective Time), including in each case accrued but
unpaid credits subject only to any Accepted Loan or Additional Accepted Loan which becomes thirty
(30) or more days delinquent prior to the Effective Time, being deleted from the applicable
Exhibit. In reviewing Seller’s loans for the purpose of identifying Additional Accepted Loans
Buyer may, in its sole discretion, accept any pool or pools of loans assembled by Seller (which may
or may not be serviced by Seller as the parties may agree) and/or any participated loans or
interest in participated loans, and may exclude: (i) Loans Seller agrees to retain, if any, (ii)
Loans for which the loan file fails to include any material documentation, (iii) Loans shown on
Seller’s books and records as being attributable to the Branches and which have any required
payment of principal or interest thirty (30) or more days overdue, (iv) Loans that are any second
mortgages that together with the first mortgage bring the loan amount to greater than one hundred
percent (100%) loan to value ratio if the loan is located in Wisconsin or ninety percent (90%) if
located in the Minneapolis/St. Paul metropolitan area, (v) Loans that are not located within the
service area of the Buyer inclusive of the Branch locations being acquired, (v) Loans that the
borrower is not within the field of membership of the Buyer, as described on Exhibit E, (vi) any
syndicated or participated Loans, other than Loans in which Buyer is already a participant, (vii)
any Loans originated in connection with farming, land development, beauticians, loggers and
over-the-road truckers, and (viii) any Loans originated in connection with taverns/bars and
restaurants, on a case by case basis (all such Loans on any given date, collectively, the “Excluded
Loans”). Buyer may agree at any time prior to the Closing Date to include any Excluded Loans as
Additional Accepted Loans on Exhibit D, provided the parties agree on the amount to be paid for
such Excluded Loans that are included as Additional Accepted Loans. All other Excluded Loans shall
be retained by Seller;

               (5) all files, books and records related to the business and operations of the Branches (the
“Records”), including, without limitation, (A) any blueprints and schematics relating to the Real
Estate in Seller’s possession, and (b) all files, books and records relating to the Assets, the
Unfunded Obligations, and the Deposits; and

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               (6) goodwill and all other intangible assets relating to the Branches (“Goodwill”); provided,
however, that nothing contained herein shall be deemed to create any right in the Buyer with
respect to the Anchor name, logo, signage, or any trademarked or copyrighted material or
information related to Anchor and the operation of its business.

          (b) Unfunded Obligations. For purposes of this Agreement, “Unfunded Obligations” means the
Seller’s obligation to make loans which have been approved by Seller in the ordinary course of
business and are attributable to the Branches, but have not been funded as of the Effective Time,
regardless of whether such obligation is in any case evidenced by a formal loan commitment letter
or otherwise (including internal memoranda of approval) as of the date of this Agreement as
specifically identified on Exhibit F attached hereto; provided that Unfunded Obligations shall
not include loans that have the same criteria as or exist in connection with Excluded Loans.

          (c) Deposits. For purposes of this Agreement, “Deposits” means the deposit liabilities
shown on Seller’s books and records relating to the Branches, including accrued but unpaid
interest, whether or not Buyer acquires Loans of a depositor, both collected and uncollected
funds and deposits held by non-discretionary individual retirement accounts and qualified
retirement plan accounts relating to such deposits for which Seller acts as custodian or trustee
but which are not administered by a trust department which is an affiliate of Seller and for
which no brokerage account is carried at any affiliate of Seller (“Retirement Plans”), together
with Seller’s rights and responsibilities under any related customer agreement. “Deposits” do
not include: (1) deposits securing loans or other extensions of credit by Seller or its
affiliates if the related Loans or other extensions of credit are Excluded Loans; (2) deposits of
customers of the Branches where one or more of the related Loans or other extensions of credit to
that customer are Excluded Loans; (3) deposits held in accounts for which Seller or its
affiliates act as fiduciary (other than deposits held by Retirement Plans); (4) deposits held in
any Retirement Plan where the account holder has notified Seller or Buyer in writing of his, her
or its objection to Buyer acting as custodian or trustee of such Retirement Plan; (5) deposits
subject to legal process; (6) deposits which have been reported as abandoned property under the
abandoned property laws of any jurisdiction; (7) deposits by Seller or any Seller affiliate; (8)
funds maintained in brokerage accounts opened by Seller or any Seller affiliate; (9) any deposits
that are prohibited by law or regulation (or with respect to deposits issued through CDARS, rules
and regulations issued by the Promontory Interfinancial Network) from being transferred to Buyer;
(10) deposits that are held in a health savings account established under Section 223 of the
Internal Revenue Code of 1986; and (11) deposits that exceed $100,000. Exhibit G identifies the
Deposits as of a date no more than 30 days prior to the date of this Agreement.

     2. Closing and Closing Date. The closing (the “Closing”) of the transaction contemplated by
this Agreement (the “Sale”) will take place at the offices of Michael Best & Friedrich, LLP, One
South Pinckney Street, Suite 700, Madison, Wisconsin, or as Seller and Buyer agree. The Closing
will take place as soon as practicable after the conditions regarding regulatory approvals have
been satisfied and the Buyer is prepared to convert the Accepted Loans, Additional Accepted
Loans, and Deposits to its proprietary computer systems, but in no event later than March 31,
2010; provided, however, that if the sole event preventing

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Closing on such date is the absence of regulatory approval and there has been no indication
such approval will be denied, the closing date shall be postponed for an additional forty-five
(45) days.

     3. Payment. The purchase price for the Sale will be payable in an initial and final payment
pursuant to subsections (a) and (b), respectively.

          (a) Initial Payment. As soon as practicable following the first opening of business after
the Effective Time, Seller will transfer to Buyer or Buyer will transfer to Seller, as the case
may be, an amount which constitutes an estimate of the purchase price for the Sale, calculated by
using information available to the parties as of the close of business no more than four (4)
business days prior to the Effective Time. Seller will deliver to Buyer on or before the Closing
Date updated supporting information regarding the items used to calculate the initial payment
which describes these items as of the date the initial payment is calculated, including updated
Exhibits. The initial payment will be in cash or other immediately available funds and will be
in an amount equal to (as calculated, the “Initial Payment”):

               (1) the aggregate book value of the Deposits, as shown on Seller’s books and records as of the
close of business no more than four (4) business days prior to the Effective Time; less

               (2) the depreciated book value, as of the Effective Time, of the Owned Real Estate and
Fixtures and Equipment, as reflected on Seller’s books and records as of the last day of the month
prior to the month in which the Effective Time falls; less

               (3) an amount equal to the principal of and interest accrued and unpaid on the Accepted Loans
and Additional Accepted Loans, as shown on Seller’s books and records as of the close of business
no more than four (4) business days prior to the Effective Time (no reserves or unamortized fees
will be applied against the aggregate book value of the Loans) (which calculations shall not
include the Excluded Loans), as reflected on an updated Exhibit C and D delivered by Seller; less

               (4) the price agreed upon between Buyer and Seller for the Excluded Loans that are included as
Additional Accepted Loans, as shown on Seller’s books and records as of the close of business no
more than four (4) business days prior to the Effective Time, as reflected on updated Exhibit D
delivered by Seller; less

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               (5) an amount equal to (i) 4.5% of the Deposits including (A) personal and business Demand
Deposit Accounts (“DDAs”), (B) Market Yield Accounts, (C) Market Rate Investment Accounts, (D)
Savings Accounts, (E) Certificates of Deposit (“CDs”), and (E) individual retirement accounts and
other Retirement Plans, as of the close of business no more than four (4) business days prior to
the Closing Date, and (ii) 0.0% of all public funds, brokered deposits, or other out of market CDs
(collectively, the “Deposit Premium”); less

               (6) the cash on hand at the Branches as of the close of business no more than four (4)
business days prior to the Effective Time.

If the amount calculated above results in a number which is greater than zero (i.e., deposits
exceed the components of the purchase price), then Seller will transfer the resulting amount to
Buyer. However, if the amount calculated above results in a number which is less than zero (i.e.,
the components of the purchase price exceed deposits), then Buyer will transfer the resulting
amount to Seller. The amounts under Subsection (5) of this Section 3(a) shall be calculated by
taking the average daily collected balances of the aforementioned account liabilities at the close
of each business day for each of the thirty (30) business days immediately preceding the date used
for calculation of the initial payment, which date shall not be more than three (3) business days
prior to the Effective Time.

          (b) Final Payment. Within thirty (30) days after the Effective Time on a date to be
mutually agreed upon by the Buyer and Seller (“Settlement Date”), Seller will transfer to Buyer
or Buyer will transfer to Seller, as the case may be, an amount which constitutes the difference
between the actual purchase price for the Sale calculated by using information as of the
Effective Time, and the Initial Payment (as calculated below, the “Final Payment”). Seller will
deliver to Buyer on or before the Settlement Date updated supporting information regarding the
items used to calculate the Final Payment which describes these items as of the Effective Time,
including final Exhibits C, D, F and G, which shall be updated as of the Effective Time and be
delivered no later than four (4) business days prior to the Settlement Date. The Final Payment
will be in cash or other immediately available funds and will be in an amount equal to:

               (1) the aggregate book value of the Deposits, as shown on Seller’s books and records as of the
Effective Time; less

               (2) the depreciated book value, as of the Effective Time, of the Owned Real Estate and
Fixtures and Equipment; less

               (3) the aggregate book value of the Loans, as shown on Seller’s books and records as of the
Effective Time, provided that no reserves will be applied against the aggregate book value of the
Loans (Excluded Loans shall not be included in this calculation); less

               (4) the price agreed upon between Buyer and Seller for the Additional Accepted Loans, provided
that in the event Seller and Buyer are unable to agree upon the terms of transfer for one or more
Additional Accepted Loans, those loans will be retained by Seller along with any Deposits securing
the Loans and all Deposits of any customer whose Additional Accepted Loan is not transferred to
Buyer; less

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               (5) the Deposit Premium; less

               (6) the cash on hand at the Branches as of the Effective Time; less

               (7) amounts for the items listed in subsection (c) below, prorated as of the Effective Time;
less (or plus in the event Buyer made the initial payment to Seller)

               (8) the amount of the Initial Payment.

If the amount calculated above results in a number which is greater than zero (i.e., deposits
exceed the components of the purchase price), then Seller will transfer the resulting amount to
Buyer. However, if the amount calculated above results in a number which is less than zero (i.e.,
the components of the purchase price exceed deposits), then Buyer will transfer the resulting
amount to Seller. The amount constituting the difference between the Initial Payment and the Final
Payment will bear interest from the date of the Initial Payment to the date of the Final Payment at
a rate equal to the weighted average of the rates on overnight federal funds transactions as
determined by the Federal Reserve Bank of Chicago. This interest will be paid along with the final
payment on the Settlement Date. The amounts under Subsection (5) of this Section 3(b) shall be
calculated by taking the average daily collected balances of the aforementioned account liabilities
at the close of each business day for each of the thirty (30) business days immediately preceding
the Effective Time.

          (c) Prorated Items. As appropriate, special assessments on the Real Estate, safe deposit
box rentals, wages, rents, real and personal property taxes (based on the actual amount due for
the current year if known, otherwise for the prior year), Service Contract payments, additional
rents, CAM charges and estimates, any other payments due or paid under the Leases, utility
payments, insurance premiums and similar expenses relating to the physical plant of the Branches,
employment taxes relating to the Transferring Employees, state or federal taxes collected but not
remitted, workers compensation payments for Transferring Employees, FDIC premiums relating to the
Deposits and any other expenses, accruals and payments relating to the Assets or the Deposits
will be prorated as of the Effective Time. Seller will receive a proportionate monetary
adjustment to the extent an item has been prepaid by Seller for a period extending beyond the
Effective Time, and Buyer will receive a proportionate monetary adjustment to the extent that an
item has been deferred by Seller to a time extending beyond the Effective Time Buyer has paid the
item. Any items which would appropriately be subject to proration but which cannot be prorated
by the Settlement Date will be prorated as soon as the requisite information is available and
will be paid promptly by the appropriate party after this time. At Buyer’s request, Seller will
deliver to Buyer on or before the Settlement Date updated supporting information regarding the
items which will be prorated as of the Effective Time. Seller shall also be credited with any
security or other deposit paid under any of the Leases.

     4. Access and Investigation. Commencing on the date this Agreement is executed by all
parties, and continuing for a period of thirty (30) days thereafter, (the “Due Diligence
Period”), Seller shall permit Buyer reasonable access to the books and records of the Branches to
conduct a review of the Branches and to evaluate the feasibility of the transactions contemplated
herein (“Due Diligence”). Not later than three (3) business days following the

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end of the Due Diligence Period, Buyer shall notify Seller that Buyer wishes to terminate
this Agreement (in which case this Agreement shall be deemed terminated without premium or
penalty) or proceed to close the Sale (in which case the parties shall proceed to close the
Sale). Failure to give notice within the time provided for herein shall be deemed a notice to
proceed to close the Sale.

     5. Real Estate Inspection and Conveyance. Buyer’s inspection of the Real Estate and the
Seller’s conveyance of the Real Estate to Buyer shall be subject to the following terms and
conditions:

          (a) Definitions.

               (1) “Environmental Condition” means (A) an above ground storage tank, underground storage
tank, subsurface structure or container, and its associated piping, which is present at the Real
Estate and which violates an Environmental Law; (B) a Hazardous Substance present in soil and/or
groundwater at the Real Estate which violates an Environmental Law; (C) a discharge, emission or
release of a Hazardous Substance related to the Real Estate which violates an Environmental Law;
(D) an event or condition that likely has occurred or exists with respect to the Real Estate which
constitutes a violation of an Environmental Law; and (E) an event or condition related to the Real
Estate which requires cleanup, remedy, abatement or restoration of contaminated surface water,
groundwater, soil or natural resource under an Environmental Law.

               (2) “Environmental Law” means any federal or state law, regulation or common law ruling
applied by a federal or state court or agency that governs: (A) health, safety and sanitation; (B)
the protection of the environment or human health or welfare; (C) the presence, investigation,
correction, abatement, remedy, restoration or cleanup of a Hazardous Substance; (D) the closure of
a treatment, storage or disposal facility; (E) the use, storage, treatment, generation,
transportation, processing, handling, production or disposal of a Hazardous Substance; (F) the
protection of the environment from spilled, released, discharged or deposited Hazardous Substances;
or (G) the reimbursement or contribution for the costs of responding to the presence of a Hazardous
Substance.

               (3) “Hazardous Substance” means a substance, contaminant, pollutant, chemical, material or
waste which is considered to be hazardous or toxic under an Environmental Law.

               (4) “Preliminary Title Commitment” means a title commitment to issue an owner’s policy of
title insurance with respect to the Owned Real Estate naming Buyer as the insured on a current ALTA
form in blank amount issued by a title company licensed to do business in Wisconsin showing title
to the Owned Real Estate vested in Seller with an effective date no more than fifteen days prior to
the date hereof, together with copies of all documents listed as exceptions to title (the
“Preliminary Title Commitment”).

               (5) “Real Estate Documents” means the Preliminary Title Commitment, the Leases, and, to the
extent in Seller’s possession or control, prior surveys of the Owned Real Estate, prior
environmental reports, floor plans, drawings, maps, specifications, and construction or
manufacturers’ warranties still in force for any fixtures (e.g., heating, ventilation and cooling

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equipment) owned by Seller and attached to the Real Estate, and a form of the Assignment and
Assumption of Leases which shall become Exhibit J, which documents Seller shall provide to Buyer
within thirty (30) days following the date hereof.

               (6) “Real Estate Inspection Period” means the period ending on the later of sixty (60) days
after the date of this Agreement or forty-five (45) days following the date Buyer receives the Real
Estate Documents from Seller, during which time Buyer shall have the right to inspect and review
the Real Estate Documents, the Real Estate, and new or updated surveys ordered by the Buyer, at
Buyer’s expense, as provided herein.

          (b) Inspection. Buyer’s obligation to purchase the Assets hereunder shall be contingent on
Buyer’s or its agents’ satisfactory review of the Real Estate Documents, the Real Estate, and any
new or updated surveys ordered by the Buyer as provided in this Section 5. Buyer shall have the
right to, at its sole expense except as provided hereinafter, review the Real Estate Documents
and new or updated surveys ordered by the Buyer, and to conduct reasonable investigations and
inspections of the Real Estate and to conduct and have prepared non-intrusive tests, inspections,
surveys, environmental assessments, or other procedures with respect to the Real Estate which are
reasonably necessary for Buyer and Buyer’s attorneys to determine if the Real Estate is fit for
Buyer’s purposes. All such investigations and testing shall be conducted in a manner which will
not interfere with Seller’s business or customers at the Branches. Seller and its
representatives, agents and contractors shall cooperate with Buyer and Buyer’s attorneys in the
conduct of such inspections and shall provide Buyer and Buyer’s agents with reasonable access to
the Real Estate to conduct all such inspections, which access shall be conducted during normal
business hours and require no less than forty-eight (48) hours’ prior notice to Mark Timmerman at
(608) 252-8784, or such other party as he shall designate. However, Buyer shall promptly restore
the Real Estate to the condition which existed prior to such tests and inspections. Furthermore,
Buyer shall indemnify, protect and hold Seller harmless from and against any and all liabilities
that arise out of the entry by Buyer and Buyer’s agents or invitees upon, or inspections or tests
of, the Real Estate, including protection against any lien rights, provided, however, that this
indemnification shall not apply to costs incurred by Seller or the liability of Seller resulting
from defects in the Real Estate or environmental conditions on the Real Estate only discovered by
the Buyer or Buyer’s agents in conducting its inspection of the Real Estate. Buyer’s activities
on the Real Estate will not include intrusive tests or inspections without Seller’s prior written
consent, which shall not be unreasonably withheld or delayed.

          (c) Environmental.

               (1) Phase I. Buyer may conduct or have conducted, prior to the expiration of the Real
Estate Inspection Period, a Phase I environmental assessment (the “Environmental Survey”) of the
Real Estate or any portion thereof. Buyer will provide Seller with copies of each Environmental
Survey promptly after Buyer’s receipt, including copies of all accompanying written reports,
analytical data, correspondence, notices or other written material. If an Environmental Survey
identifies an Environmental Condition, then Buyer shall have the following options: (i) those
certain rights of Buyer as provided in Section 5(e)(i)-(iii) below; or (ii) performing a physical
examination and investigation of the Environmental Condition revealed in such Environmental Survey
(the “Phase II Survey”) as further described in Section

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5(c)(2) below, at Buyer’s expense.

               (2) Phase II. Buyer may exercise its option above to perform a Phase II Survey by
delivering to Seller, prior to the expiration of the Real Estate Inspection Period, written notice
of its exercise of such option and a copy of the Environmental Survey citing such Environmental
Condition, whereafter the Real Estate Inspection Period shall be extended for an additional
forty-five (45) days only for the Branch identified in that report, and for the sole purpose of
conducting such Phase II Survey of that Branch. The subject, scope, manner and method of the Phase
II Survey will be subject to Seller’s prior review and consent, which shall not be unreasonably
withheld or delayed. Buyer will promptly deliver to Seller copies of the Phase II Survey report,
and all written reports, analytical data, correspondence, notices or other written materials
relating thereto. If the Phase II Survey confirms the presence of an Environmental Condition
related to the Real Estate or any portion thereof, then Buyer shall have the following options:
(i) those certain rights of Buyer as provided in Section 5(e)(i)-(iii) below prior to the
expiration of the Real Estate Inspection Period as extended hereunder; or (ii) prior to the
expiration of the Real Estate Inspection Period as extended hereunder, enter into an agreement with
Seller regarding the abatement of the Environmental Condition. In the event Buyer conducts a Phase
II Survey and thereafter elects to not purchase the Real Estate subject to such Phase II Survey,
Buyer will provide to Seller evidence that such Phase II Survey has been paid for and that any lien
rights have been waived.

          (d) Title.

               (1) Preliminary Title Commitment and Permitted Encumbrances. Buyer shall review the
Preliminary Title Commitment and notify Seller in writing, within thirty (30) days after the date
of this Agreement or receipt of the Preliminary Title Commitment, whichever is first, of those
exceptions to title approved by Buyer, which shall include municipal and zoning ordinances and
agreements arising out of them, general taxes levied in the year in which the Effective Time falls,
special assessments, special use charges, BID assessments and other municipal charges levied with
the taxes, which shall be prorated at Closing, the Leases, recorded easements restrictions building
and use agreements and all matters of survey which do not have a material impact on Buyer’s ability
to operate its business on the Real Estate, and liens which will be paid out of the proceeds of the
Closing (the “Permitted Exceptions”). Seller will then have until ten days before the end of the
Real Estate Inspection Period to cure or elect to cure at Closing, any defects not listed among
Permitted Exceptions. If Seller elects not to cure such defects and objections, Buyer will have
the sole option, which must be exercised prior to the end of the Real Estate Inspection Period, to
either: (i) terminate this Agreement by giving written notice of termination to Seller; or (ii)
accept title to the Real Estate subject to the uncured defects and objections, with no reduction in
the price allocated to the Real Estate, in which case the defects and objections will also be
deemed “Permitted Exceptions.” If Buyer does not make any election, Buyer will be deemed to have
elected option (ii) above. If Seller agrees to cure a defect or objection, and fails to do so
prior to the Closing Date, Buyer shall have the right to extend the Closing Date until such defect
is cured or the parties come to another agreement.

               (2) Updated Title Commitment. Seller will, within ten (10) business days prior to
Closing, provide Buyer with an updated form of Title Commitment (the “Title Commitment”) on a then
current ALTA form, naming Buyer as the insured, showing title to the

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Owned Real Estate vested in Seller as of a date no more than fifteen (15) days before the
Closing, in an amount equal to the fair market value of the Owned Real Estate as shown on the most
recent tax bill, and showing title to the Owned Real Estate to be merchantable subject only to the
Permitted Exceptions, and subject to any other exceptions which Seller has agreed to remove at
Closing.

               (3) Title Costs. Seller will pay the cost of the Title Commitment and title insurance
evidenced thereby and the cost of any transfer tax imposed by the State of Wisconsin on the
conveyance of the Real Estate. Buyer will pay the cost of any additional title coverage or special
endorsements.

          (e) Buyer’s Inspection Rights. If Buyer determines in its sole discretion that the Real
Estate or any portion thereof is unsatisfactory to Buyer, then Buyer shall have the right to
elect one of the following: (i) terminate this Agreement by delivery of written notice of
termination to Seller prior to the expiration of the Real Estate Inspection Period (or any
applicable extension period as provided in this Agreement, but only as to the Branches for which
such extension applies); (ii) waive in writing Buyer’s contingency in this Section 5 and accept
of the Real Estate in its condition at the time with no reduction in the price allocated to the
Real Estate; (iii) provide no notice of any kind to Seller prior to the expiration of the Real
Estate Inspection Period (or any applicable extension period as provided in this Agreement), in
which case Buyer will be deemed to have waived its contingency contained in this Section 5. If
Buyer has elected to extend the Real Estate Inspection Period for any Branches, under the
provision of Paragraph 5(c)(2) above, then Buyer may, before the end of the Real Estate
Inspection Period, elect to terminate the entire Agreement, in which case all further rights of
access to the Real Estate shall terminate, or may elect to waive in writing Buyer’s contingency
in this Section 5 as to all Real Estate except the Branch for which the extension was elected, in
which case the Buyer reserves the right to again terminate this entire Agreement before the end
of such extension, if Buyer is not satisfied with the result of the Phase II Survey for the
Branch for which the Real Estate Inspection Period was extended. Failure of Buyer to terminate
this Agreement under the provision above, and completion of the Closing shall constitute
conclusive evidence that Buyer has determined to accept the condition of the Real Estate. In
closing this transaction and completing its due diligence, Buyer will be relying exclusively on
its own inspections and reviews and not upon any express or implied representations or warranties
of Seller unless contained in this Agreement or as agreed to in a written amendment to this
Agreement, signed by the Seller and the Buyer. Seller has made no express or implied
representation or warranty regarding the condition of the Real Estate (whether environmental or
otherwise) and Buyer shall at Closing accept the Real Estate in its “as is/where is” condition.

          (f) Conveyance of Owned Real Estate. At the Effective Time, Seller will convey the Owned
Real Estate by Warranty Deed (the “Warranty Deed”), free and clear of all title defects, liens
and encumbrances except the Permitted Exceptions.

          (g) Conveyance of Leased Real Estate. At the Effective Time, Seller will convey Seller’s
right, title and interest in the Leased Real Estate to Buyer by an assignment of the Leases (the
“Assignment of Leases”) in form as shown as Exhibit J, including, without limitation, all
required mortgagee and/or lessor consents, and Buyer’s
assumption of liabilities thereunder.

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          (h) Endorsements; Construction Lien and Possession Affidavit. Seller agrees to provide a
“GAP” endorsements to the title insurance policy referenced in the Title Commitment at the
Seller’s expense. Any additional endorsements requested by Buyer may be secured by Buyer at
Buyer’s expense. Seller further agrees to execute a GAP Affidavit, a Broker Lien Affidavit, a
Non-foreign Affidavit, a certification of Seller’s corporate documents, resolutions and the
authority of the signers to sign document on behalf of Seller, and a standard construction lien
and possession affidavit or similar document (the “Seller’s Affidavits”).

     6. Seller’s Closing Documents. Seller will provide Buyer with the following documents on
the Closing Date:

          (a) Settlement Statement. A settlement statement showing the amounts paid by Buyer and
Seller in connection with the Sale.

          (b) Warranty Deed. The Warranty Deed.

          (c) Assignment of Leases. The Assignment of Leases, including any required consent of
landlord.

          (d) Seller’s Affidavits. The Seller’s Affidavits.

          (e) Bill of Sale. A bill of sale conveying the Assets (excluding the Real Estate) to Buyer.

          (f) Assignment and Assumption Agreement. An assignment agreement whereby Seller assigns all
of its right, title and interest in and to the Assets to Buyer and whereby Buyer assumes the
Assumed Obligations (a form of which is attached as Exhibit F).

          (g) Seller’s Officer Certificate. A certificate from Seller warranting to the Buyer and the
Title Company the resolutions authorizing the transaction contemplated by this Agreement.

          (h) Updated Exhibits. Exhibits C, D, F and G to the Agreement, updated to a date no more
than four (4) business days before the Closing Date.

          (i) Assignment of Service Contracts. An assignment of any service contracts associated with
the Branches along with any necessary consent.

          (j) Other Documents. Other documents as are reasonably required by Buyer, including the
Title Commitments marked up through Closing, and Transfer Tax Returns required for the transfer
of the Real Estate.

     7. Buyer’s Closing Documents. Buyer will provide Seller with the following documents on the
Closing Date:

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          (a) Settlement Statement. A settlement statement showing the amounts paid by Buyer and
Seller in connection with the transaction contemplated by this Agreement.

          (b) Assignment and Assumption Agreement. The Assignment of Leases, an Assignment of Service
Contracts and an assignment agreement whereby Seller assigns all of its right, title and interest
in and to the Assets to Buyer and whereby Buyer assumes the Assumed Obligations. This agreement
will reflect that the transfers are without recourse to Seller except as required by applicable
law or otherwise provided in this Agreement.

          (c) Buyer’s Officer Certificate. A certificate from Buyer with respect to certain
representations and warranties, resolutions authorizing the transaction contemplated by this
Agreement and required regulatory approvals.

          (d) Other Documents. Other documents as are reasonably required by Seller, including
consent to the filing of the Transfer Tax Return.

     8. Seller’s Actions at Closing. At or before the Effective Time, Seller will take the
following actions with respect to the transfer of the Assets, Deposits and liabilities relating
to the Assets:

          (a) Delivery of Possession. Seller will deliver possession and control of the Assets to the
Buyer, including keys and combinations.

          (b) Loan Documentation. Seller will deliver to Buyer originals of all loan documents, loan
files and related materials, including, but not limited to, correspondence and memoranda,
contained in Seller’s files with respect to each Accepted Loan and Additional Accepted Loan,
including, without limitation, all original promissory notes or other evidence of indebtedness
for each Accepted Loan or Additional Accepted Loan properly endorsed by Seller to the order of
Buyer.

          (c) Assignment Forms. Except as otherwise agreed, Seller will evidence the transfer of the
Accepted Loans and Additional Accepted Loans to Buyer by providing the following documentation:
(1) for each Accepted Loan and Additional Accepted Loans secured by real estate, Seller will
provide a standard assignment form in recordable form (the recording fee for which will be paid
by Buyer); (2) for each Accepted Loan and Additional Accepted Loans secured by collateral
described in uniform commercial code filings, Seller will provide a standard uniform commercial
code assignment form (the filing fee for which will be paid by Buyer); (3) for Accepted Loans and
Additional Accepted Loans secured by vehicles and boats, at its option Seller will provide either
an appropriate assignment form or a limited power of attorney authorizing Buyer to sign
appropriate documentation which evidences the transfer of the loans to Buyer on the records of
the Wisconsin Department of Transportation and/or the Wisconsin Department of Natural Resources;
and (4) such other documents as Buyer reasonably requests.

          (d) Deposit Documentation. Seller will deliver to Buyer originals of all deposit
documents and related materials, including correspondence and memoranda, contained in Seller’s
files with respect to all Deposits and such other documents as Buyer may reasonably request.

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          (e) Branch Records. Seller will deliver to Buyer its files and other records relating to
the Assets, Unfunded Obligations, Deposits and other liabilities assumed by Buyer.

          (f) Employee Records. Seller will deliver to Buyer its records relating to the hiring date,
payroll history, compensation, benefit plan records, and all other agreements, records and files,
including disciplinary records (to the extent not prohibited by privacy laws) relating to the
Transferring Employees.

          (g) Other Matters. Seller will cooperate with Buyer for other matters relating to the
assignment and transfer of the Assets, Unfunded Obligations, Deposits and the liabilities related
to the Assets, including the establishment of a schedule of charges with respect to conversion of
data processing for the Accepted Loans, Additional Accepted Loans and Deposits using Buyer’s
internal system provider and other future services which may be required by Buyer.

     9. Transitional Matters.

          (a) Orderly Transfer. Before and after the Closing Date, Seller and Buyer will cooperate in
good faith to ensure the orderly and efficient transfer and conversion of the Assets, Unfunded
Obligations and Deposits. To this end and to the extent not otherwise provided in this
Agreement, Seller and Buyer will meet and agree upon appropriate procedures for notification of
customers (as set forth in clause (b) below), employees and suppliers, for conversion of data
processing and check clearing systems, for notification respecting customer inquiries. Seller
shall at Seller’s expense, using Seller’s system provider, provide to Buyer’s internal system
provider the appropriate data tapes to permit Buyer’s internal system provider at Buyer’s expense
to convert the Deposits to Buyer’s system. Seller and Buyer shall cooperate to ensure the timely
and orderly transfer of all data processing information. Seller shall provide to Buyer
reasonable assistance and access to necessary information and records and documentation of
Seller’s standard deconversion options for assumed Deposits.

          (b) Notices. Buyer will, upon receipt of all required regulatory approvals relating to the
Sale, at its expense, give (i) all required notices to Branches’ customers, including any
transfer notices required by Regulation DD issued by the Federal Reserve Board and the Real
Estate Settlement Procedures Act and Regulation X issued thereunder, (ii) any other notices
desired by Buyer and approved by Seller to reasonably preserve the business relationships with
Branch customers, and (iii) any notices necessary to advise third-party providers of the Seller
(including, but not limited to, insurance companies maintaining insurance on collateral for the
Loans) that the Assets, Unfunded Obligations and Deposits are being transferred to Buyer. Buyer
will, at its expense and without charge to the Branches’ customers, promptly notify the customers
of Buyer’s assumption of the Deposits and furnish each customer that holds demand deposits or NOW
accounts with checks on Buyer’s forms and with instructions to utilize Buyer’s checks and destroy
unused checks of Seller. Buyer will notify the customers of the date after which it will no
longer honor checks, drafts and withdrawal orders on forms provided by Seller and carrying
Seller’s imprint.

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          (c) Payment of Items. For a period of thirty (30) days after the Effective Time, Buyer will
pay in accordance with law and customary banking practices all properly drawn and presented
checks, drafts and withdrawal orders presented to Buyer drawn on the checks, drafts or withdrawal
order forms provided by Seller and in all other respects discharge, in the usual course of the
banking business, the duties and obligations of Seller with respect to the Deposits.

          (d) Settlement of Items. Prior to the Effective Time, Seller and Buyer will develop
appropriate procedures and arrangements (which may include establishment by Buyer of a settlement
account with Seller) to provide for settlement by Buyer of checks, drafts, withdrawal orders,
returns and other items that are drawn on or chargeable against Deposits after the Effective
Time. Seller will cooperate with Buyer and take reasonable steps requested by Buyer to ensure
that, for the period of time after the Effective Time as the parties may agree, each check, draft
or withdrawal order drawn against Deposits encoded for presentment to Seller or to any bank for
the account of Seller is delivered to Buyer in a timely manner and in accordance with applicable
law and clearinghouse rule or agreement.

          (e) Stop Payment Items. Buyer will honor stop payment orders initiated prior to the
Effective Time and reflected in stop payment documents delivered to Buyer. If following receipt
of appropriate stop order documentation, Buyer makes a payment in violation of an order, Buyer
will be solely liable for the payment and will indemnify, hold harmless and defend Seller from
and against all claims, losses and liabilities, including reasonable attorney fees and expenses,
arising out of the payment.

          (f) Returned Items. Buyer will pay promptly to Seller an amount equal to the amount of any
checks, drafts or withdrawal orders credited to the Deposits on or before the Effective Time
which are returned to Seller or Buyer after the Effective Time as uncollectible, less the Deposit
Premium percentage for the returned item.

          (g) Post-Closing Payments. Seller promptly will remit to Buyer all payments on Loans and
amounts intended as Deposits or otherwise relating to the Loans or Deposits that are received by
Seller after the Effective Time. If the balance due on any Loan has been reduced by Seller as a
result of a payment by check or other instrument received prior to the Effective Time and if the
paying instrument is returned to Seller after the Effective Time as uncollectible, an amount
equal to the reduction will be paid by Buyer to Seller and Seller will assign all right, title
and interest in the uncollectible item to Buyer.

          (h) Government Checks. Upon a request after the Effective Time from a state or federal
agency to reclaim funds relating to forged social security checks, unemployment checks or welfare
checks credited by Seller prior to the Effective Time from a Deposit transferred to and assumed
by Buyer, Buyer will honor the request and pay the amount requested, up to the amount of
collected funds in the account relating to the request as of the date of such request. Seller
will remain liable for remitting any deficiency.

     10. Employees of the Branches. The parties shall follow the following procedure in dealing
with employees of Seller who are employed in the Branches (the “Employees”) regarding employment
after the Closing Date:

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          (a) Within thirty (30) days after the date hereof, Seller shall deliver to Buyer a true and
complete list of all Employees by name, date of hire, position in the Branches, base salary and
other compensation (including incentives, bonuses, commissions, stock based awards, perquisites,
etc.) during the preceding twelve (12) month period and increases in base salary during the
preceding 12 month period, any employment or non-compete agreement and terms of such non-compete,
entered into with an Employee and the normal work schedule for each Employee (such list, the
“Employee Disclosure Schedule”). Upon reasonable notice from Buyer, Seller shall allow Buyer to
interview any and all Employees for the purposes set forth in this Section 10.

          (b) Buyer may interview all Employees who are interested in seeking employment with Buyer
and whom Buyer has an interest in employing and, within ninety (90) days after the Employee
Disclosure Schedule is delivered in accordance with clause (a) above, shall deliver to Seller a
confidential list setting forth those Employees to whom Buyer intends to offer employment on the
Closing Date (“Designated Employees”) and the position to be offered to each Designated Employee.
Within fourteen (14) days after delivery of the list of Designated Employees to Seller, Buyer
shall provide Designated Employees with an application for employment with Buyer as provided by
Buyer (or such other method as Buyer utilizes in the ordinary course of business), and Seller
shall encourage Designated Employees to complete an application and submit it to the Buyer.
Within thirty (30) days after Seller’s delivery of an application of employment to such
Designated Employees, Buyer shall notify Seller of such Designated Employees who have accepted a
position of employment with Buyer (such employees, “Transferring Employees”). After Buyer
provides to Seller the list of Designated Employees, Seller may at its option approach any
Employee, other than a Designated Employee, to discuss opportunities for such Employee to
transfer to other positions with Seller after the Closing Date. Notwithstanding anything herein
to the contrary, Buyer shall have no obligation to offer employment to any of Seller’s employees.
However, in the event Buyer does not provide written notice to Seller of the names of the
Transferring Employees, Seller shall also have the opportunity to offer other positions to any
employees who Buyer has not confirmed in such notice as having received and accepted an offer of
employment from Buyer.

          (c) Seller and Buyer shall cooperate in order to permit Buyer to train the Transferring
Employees and certain of Buyer’s employees shall be trained on Seller’s systems in order to
permit an orderly transfer, and Seller shall, as scheduled by Buyer for reasonable times and
subject to Seller’s reasonable approval (such that Seller’s ongoing operations at the Branches
shall not be materially disrupted) excuse such employees from their duties at the Branches for
the purpose of training and orientation by Buyer during the five (5) week period prior to the
Closing Date for a maximum of twenty-four (24) hours per Employee, or such additional time as
consented to by Seller, such consent not to be unreasonably withheld.

          (d) Immediately prior to the Effective Time, Seller shall terminate the employment
of all of the employees at each of the Branches and satisfy all of its obligations to such
employees. Buyer shall not be obligated to Seller or any other party for any compensation or
labor-related obligations or liabilities arising out of any person’s employment with the Seller.

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          (e) As of the Effective Time, the employment by Buyer of the Transferring Employees shall
commence. Employees hired by Buyer will be, to the extent permitted by applicable law and the
rules and regulations established pursuant to the respective plan, immediately eligible to
participate in all employee welfare benefit plans and other fringe benefits and perquisites
extended to employees holding comparable positions with Buyer, and will be given immediate credit
under all employee benefit plans covering employees of Buyer in existence at the Effective Time
for length of service with Seller. Buyer will admit participating Transferring Employees to its
retirement plan on the first entry date following the Effective Time and will permit them to roll
any payments from the retirement plan of Seller or Seller’s affiliates, as permitted by IRS
regulations.

          (f) Employee Information and COBRA Obligations. In addition to the other information
specifically provided for herein, Seller shall furnish such employee information on the Employee
Disclosure Schedule relating to a Transferred Employee as it has available and as Buyer may
reasonably request, both prior to and after the Closing Date, including (without limitation)
years of service to be counted for eligibility and vesting purposes under any employee benefit
plans and information pertinent to determinations concerning COBRA coverage. “COBRA Coverage”
means any and all health continuation obligations under ERISA Section 601, Code Section 4980B
and/or applicable state law arising from an individual’s loss of coverage under Seller’s health
plan whether before or after the Closing Date. Seller agrees it will comply with all
requirements of COBRA applicable to it.

     11. Record Retention and Access. Buyer will preserve and safely keep, for so long as may be
required under applicable law, the records transferred to Buyer under this Agreement. Upon not
less than three business days’ prior notice, Buyer will permit Seller, at its expense, to
inspect, make extracts from or copies of the records as Seller requests, provided that Seller’s
activities will not unreasonably interfere with Buyer’s business operations and Seller’s
inspection and/or extraction will not require Buyer to breach any obligation of confidentiality,
violate any law, regulation or order regarding disclosure of information or reveal any
proprietary information, trade secrets or marketing or strategic plans. Seller will treat this
information as confidential.

     12. Taxes. Except as otherwise provided in this Agreement, all sales taxes, transfer taxes,
ad valorem taxes and recordation fees or similar taxes or fees which are payable or arise as a
result of this Agreement or consummation of the transactions contemplated hereby will be paid by
the party upon whom such taxes are imposed. Sales taxes on the Assets, if any, will be paid by
Buyer.

     13. Seller’s Representations and Warranties. Seller represents and warrants to Buyer as
follows:

          (a) Corporate Status. Seller is duly organized, validly existing and in good standing under
the laws of the jurisdiction in which it is chartered.

          (b) Corporate and Other Authority. Seller has full corporate power and authority to carry
on the business of the Branches as presently conducted and to own the Real Estate. Upon the
approval of this Agreement by the Seller’s Board of Directors and the

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execution and delivery of this Agreement, the Sale will have been duly authorized by all
necessary corporate action. No other approvals or consents are required to execute and deliver
this Agreement and to consummate the Sale other than the appropriate regulatory approvals and
third party consents for the assignment of the Leases and contractual obligations, where
required.

          (c) Absence of Conflict, Breach or Violation. Neither the execution and delivery of this
Agreement nor the consummation of the Sale, will: (1) result in a breach of Seller’s Articles of
Incorporation or By-Laws; (2) result in a material breach of any term, condition or provision of,
give rise to any right of termination, cancellation or acceleration with respect to or result in
the creation of any material lien, charge or encumbrance upon any property or asset of Seller
used in connection with the business of the Branches, pursuant to any note, bond, mortgage,
indenture, license, agreement or other written instrument or obligation to which Seller is a
party except for any landlord consent under the Leases which has been or shall be obtained; or
(3) subject to the receipt of the appropriate regulatory approvals, violate any statute, law,
writ, injunction, decree, regulation or order of any governmental or regulatory authority
applicable to Seller.

          (d) Binding Obligation. Upon approval of this Agreement by Seller’s Board of Directors,
this Agreement will constitute the legal, valid and binding obligation of Seller (subject to
receipt of the appropriate regulatory approvals) enforceable in accordance with its terms, except
as the enforceability may be limited by bankruptcy, insolvency, reorganization, fraudulent
conveyance, conservatorship, receivership or similar laws affecting the enforcement of creditors’
rights generally and general equitable principles (regardless of whether the issue of
enforceability is considered in a proceeding in equity or at law).

          (e) Condition of Assets. Except as otherwise provided in this Agreement, Seller makes no
representation with respect to the condition of the Real Estate (environmental or otherwise).
There is no condemnation or similar proceeding pending or to the Seller’s knowledge threatened
which would preclude or impair the use of the Branches as presently being used in the conduct of
the business of Seller. There is no legal, administrative, arbitral or other proceeding, claim,
action, cause of action or governmental investigation pending or, to the knowledge of Seller,
threatened which seeks to impose on Seller in connection with the Branches any material liability
arising under an Environmental Law. Seller is not subject to any agreement, order, judgment,
decree or memorandum by or with any court, governmental authority, regulatory agency or third
party imposing liability with respect to the Real Estate or limiting or restricting the use of
the Real Estate materially as currently being used.

          (f) Deposit Insurance. The Deposits are insured to the maximum extent permitted by the
FDIC. Seller has filed all reports and paid all premiums required under the Federal Deposit
Insurance Act, as amended, with respect to the maintenance of deposit insurance.

          (g) No Violation of Laws. Seller is in compliance in all material respects with all
statutes and regulations applicable to the conduct of its banking business at the Branches and
has not received written notification from any agency or department of federal, state or local
government asserting a violation of any such statute or regulation, threatening to revoke

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any license, franchise, permit or government authorization material to the conduct of the
banking business at the Branches or restricting the operation of the banking business at the
Branches.

          (h) Certain Labor and Employment Matters. Seller has provided or made available to Buyer a
complete list of all employees employed at the Branches and, with regard to the Employees hired
by Buyer, Seller shall provide Buyer a true and correct copy of each employee’s complete
employment record/file on the Closing Date. All employment records/files have been maintained in
compliance with all applicable laws regarding employment and employment practices, and contain
the information an ordinary and typical bank employer would retain in an employee’s employment
record/file. Except as set forth on the Employee Disclosure Schedule, there are no employment
agreements or noncompete agreements with employees employed at the Branches. Seller is not aware
of any pending or threatened legal action in connection with its employment of any individuals
currently or previously employed at the Branches. No employee of the Seller associated with
either Branch is currently on family or medical leave except as disclosed on the Employee
Disclosure Schedule. There are no labor controversies pending, or to the best knowledge of
Seller, threatened against Seller with respect to the operation of the Branches.

          (i) No Defaults. Seller is not in material default under any material agreement,
commitment, arrangement, insurance policy or other instrument relating to the Branches and to the
best knowledge of Seller there has not occurred any event that, with the lapse of time or giving
of notice or both, would constitute such a default.

          (j) Status of Loans and Deposits. The information with respect to the Accepted Loans,
Additional Accepted Loans and Deposits provided to Buyer on the date of this Agreement and in
connection with the Closing Date and Settlement Date is true and correct as of the dates
indicated on the information, and none of the Loans contained in the information are Excluded
Loans (unless such Excluded Loan is included as an Additional Accepted Loan on Exhibit D). The
Deposits are genuine and enforceable obligations of Seller and have been acquired and maintained
by Seller in all material respects in compliance with all applicable state and federal laws,
regulations and rules, including without limitation the Truth in Savings Act and regulations
promulgated thereunder. The terms of the Accepted Loans and the Additional Accepted Loans, the
Loan documentation for the Accepted Loans and the Additional Accepted Loans, and the manner in
which the Accepted Loans and the Additional Accepted Loans have been administered and serviced is
in material compliance with all applicable federal or state law, rule or regulation. Seller is
in possession of a materially complete file with respect to each Accepted Loan and Additional
Accepted Loan containing all of the requisite material documents and instruments. The Branches
have not offered above-market rates on their DDAs, Market Yield Accounts, Market Rate Investment
Accounts, Savings Accounts or CDs (the “Deposit Products”). With respect to the Accepted Loans
and the Additional Accepted Loans:

               (1) No borrower, customer or other party has notified Seller, or has asserted against Seller,
in each case in writing, any “lender liability” or similar claim, and, to Seller’s knowledge, no
borrower, customer or other third party in connection with the Loans has given Seller any oral
notification of, or orally asserted to or against Seller, any such claim.

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               (2) All receivables and accrued interest entered on the books of the Seller arose out of bona
fide arms-length transactions, were made for good and valuable consideration in the ordinary course
of Seller’s business, and the notes and other evidence of indebtedness with respect to such Loans
are true and genuine, and are what they purport to be. To Seller’s knowledge, the Accepted Loans
and Additional Accepted Loans and the accrued interest reflected on the books of Seller are subject
to no defenses, set-offs or counterclaims (including, without limitation, those afforded by usury
or truth-in-lending laws), except as may be provided by bankruptcy, insolvency, consumer credit or
similar laws affecting creditors’ rights generally or by general principles of equity. All such
Accepted Loans and Additional Accepted Loans are owned by Seller free and clear of all liens and
other encumbrances.

               (3) The notes and other evidences of indebtedness evidencing the Accepted Loans and
Additional Accepted Loans, and all pledges, mortgages and other collateral documents or security
instruments relating thereto are, in all material respects, valid, true and genuine, and are what
they purport to be.

               (4) Government guaranties as shown on the books and records of Seller are true and correct in
all material respects and are enforceable according to their terms.

          (k) No Adverse Litigation. There is no investigation, action, arbitration, suit, proceeding
or claim or governmental proceeding pending or, to the best knowledge of Seller, threatened
against Seller which would materially and adversely affect the Sale.

          (l) Contracts. Seller has made available to Buyer complete and accurate copies of all
contracts, agreements, leases, relationships and commitments, including material service
agreements, to which it is bound which relate to any of the Assets or Deposits (collectively,
“Contracts”).

          (m) IRS Reporting. Seller has complied in all material respects with the requirements of
the Internal Revenue Service and the Wisconsin Department of Revenue regarding taxpayer
identification number certification, interest information reporting and backup withholding of
interest payable in connection with the Deposits and customer accounts acquired by Buyer
hereunder.

          (n) Financial Information. Each of the income and expense reports that have been provided to
Buyer and attached hereto as Exhibit H (the “Reports”), fairly presents the financial condition
of the Seller, as of its respective date, and such respective Reports fairly present the results
of operations of the Branches for the periods covered thereby. The Reports are consistent with
the respective books and records Seller maintains, which books and records are correct and
complete in all material respects and have been maintained in accordance with sound business
practice.

     14. Buyer’s Representations and Warranties. Buyer represents and warrants to Seller as
follows:

          (a) Corporate Status. Buyer is duly organized, validly existing and in good standing under
the laws of the jurisdiction in which it is chartered.

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          (b) Corporate Authority. Buyer has full corporate power and authority to consummate the
transaction contemplated by this Agreement. Upon the approval of this Agreement by Buyer’s Board
of Directors the execution and delivery of this Agreement the Sale will have been duly authorized
by all necessary corporate action. No other approvals or consents are required to consummate the
Sale other than the appropriate regulatory approvals.

          (c) Absence of Conflict or Breach. Neither the execution and delivery of this Agreement nor
the consummation of the Sale will: (1) result in a breach of Buyer’s Articles of Incorporation
or By-Laws; (2) result in a breach of any material term, condition or provision of, give rise to
any right of termination, cancellation or acceleration pursuant to any material note, bond,
mortgage, indenture, license, agreement or other material instrument or obligation to which Buyer
is a party or by which Buyer is bound; or (3) subject to the receipt of the appropriate
regulatory approvals, violate or conflict with any statute, law, decree, regulation or order of
any governmental or regulatory authority applicable to Buyer.

          (d) Binding Obligation. Upon approval of this Agreement by Buyer’s Board of Directors, this
Agreement will constitute the legal, valid and binding obligation of Buyer (subject to receipt of
the appropriate regulatory approvals) enforceable in accordance with its terms, except as the
enforceability may be limited by bankruptcy, insolvency, reorganization, fraudulent conveyance,
conservatorship, receivership or similar laws affecting the enforcement of creditors’ rights
generally and general equitable principles (regardless of whether the issue of enforceability is
considered in a proceeding in equity or at law).

     15. Seller’s Covenants. Seller covenants as follows:

          (a) Activity in the Ordinary Course. From the date of this Agreement until the Effective
Time, Seller will, except with written consent of Buyer, operate its business at the Branches
only in the usual, regular and ordinary course of business substantially in the manner as
previously conducted, give reasonable efforts to preserve and keep intact the Assets, Unfunded
Obligations, and Deposits at the Branches, maintain the Records substantially in the same manner
as previously maintained, and voluntarily take no action which would (i) adversely affect the
ability of the parties to obtain their regulatory approvals or materially increase the period of
time necessary to obtain such approvals, or (ii) adversely affect its ability to perform its
covenants and agreements under this Agreement. Without the prior consent of Buyer, Seller will
not engage in the following between the date of this Agreement and the Effective Time:

               (1) cause the transfer of Deposits from or to the Branches in an aggregate amount exceeding
$25,000, except upon the unsolicited request of a Branch customer in the ordinary course of
business and except for Deposits relating to trust or other fiduciary accounts;

               (2) make any loan or loan commitment which will constitute a Loan to be transferred to Buyer,
except loans and commitments made in the ordinary course of business and consistent with past
practices and safe and sound banking practices;

               (3) acquire or dispose of any furniture, fixtures or equipment for the Branches other than
pursuant to commitments made on or before the date of this Agreement and

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except for replacement of furniture, fixtures and equipment and normal maintenance and
refurbishing in the ordinary course of business;

               (4) increase or agree to increase the salary, remuneration or compensation of persons employed
at the Branches other than with the consent of the Buyer, and in accordance with Seller’s customary
policies and/or bank-wide changes consistent with past practices, pay or agree to pay any
uncommitted bonus to the employees other than regular bonuses based on historical practice, or
dismiss or otherwise terminate the employment any Transferring Employee prior to the Closing Date
without the consent of the Buyer;

               (5) enter into, amend or renew or extend any employment contract;

               (6) change any accounting procedures or practices;

               (7) offer above-market rates on any Deposit Products;

               (8) take, or instruct its affiliates to take, any action (A) impairing Buyer’s rights in any
Deposit, Unfunded Obligation or Asset; (B) impairing in any way the ability of Buyer to collect
upon any Accepted Loan or Additional Accepted Loan; (C) except in the ordinary course of servicing,
waive any material right, whether in equity or at law, that it has with respect to any Accepted
Loan or Additional Accepted Loan; or (D) that could have a material adverse effect on the business
or prospects of the Branches or on the consummation of the Sale; or

               (9) issue any certificates of deposit relating to the Branches to a party known by Seller to
be a deposit broker, or increase the interest rates offered on deposit accounts to Branch customers
except in the ordinary course of business.

          (b) Access to Information. Seller will give Buyer access during normal business hours to
the properties, documents, contracts and records relating to the Branches as Buyer from time to
time may reasonably request except as otherwise limited herein, to enable Buyer to investigate
the business and properties of the Branches in accordance with this Agreement, to prepare for an
orderly transition following the Effective Time and to prepare applications for the appropriate
regulatory approvals. Seller will not be required to breach any obligation of confidentiality or
violate any law, regulation or order regarding disclosure of information or to reveal any
proprietary information, trade secrets or marketing or strategic plans.

          (c) Non-Solicitation of Business.

               (1) As partial consideration for the Sale, Seller agrees that during the period commencing on
the Effective Time and ending on the first (1st) anniversary of the Effective Time, none
of Seller or any owner or affiliate of Seller (individually, the “Seller Party”, collectively, the
“Seller Parties”), without the prior written consent of Buyer, will (A) construct or acquire a
Branch Office within forty (40) miles of any of the Branches, other than the Branch located in
Menomonie, Wisconsin and a loan production office located in Hudson, Wisconsin, to which ten (10)
miles shall apply (the “Territory”), except that the foregoing restriction on the acquisition of a
Branch Office within the Territory shall not apply to a successor in interest to the

-22-

 

Seller Parties; or (B) directly solicit Business from any person (i) in the Territory and (ii)
who was a Customer of Seller at the Branches as of the Closing Date and whose loans and/or deposits
were transferred to Buyer. For purposes of this Agreement, (A) the term “Business” means the
solicitation or receipt of deposits or the solicitation or making of loans, or the business of
banking, generally, but excluding insurance, trust and brokerage products and services; (B) the
direct solicitation of Business includes but is not limited to offering delivery and pick-up routes
in the Territory, solicitation by mobile representatives of Seller or any affiliate of Seller and
any direct mail solicitation; (C) the term “Customer” means a Deposit or Loan customer of Seller;
and (D) the term “Branch Office” means any office at which deposits are accepted or loans are made
or Business is or is intended to be conducted.

               (2) The necessity of protection from the competition of the Seller Parties against Buyer and
the nature and scope of such protection has been carefully considered by the parties. The parties
agree and acknowledge that the duration, scope and geographic areas applicable to the covenant
not-to-compete described in this subsection (c) are fair, reasonable and necessary as required
under Wisconsin law and that adequate compensation has been received by Seller for such
obligations. If, however, for any reason any court determines that the restrictions in this
subsection (c) are not reasonable or that the consideration is inadequate, such restrictions shall
be interpreted, modified or rewritten to include as much of the duration, scope and geographic area
identified in this subsection (c) as will render such restrictions valid and enforceable.

               (3) Nothing in this subsection (c) shall prevent the Seller Parties from contacting or
soliciting Business from Customers of the Branches who have deposit or loan relationships that are
retained by Seller pursuant to Section 1(a)(4) and Section 1(b), including any new or additional
loan or deposit business of any kind or nature with such customers (“Retained Customers”), or from
general advertising and marketing not specifically directed to customers of the Branches or from
forwarding to customers of the Branches notices of the transaction contemplated by this Agreement
or required by any governmental agency or by any law, rule or regulation.

          (d) Insurance and Maintenance of Property. Seller will insure the Branches’ property owned
or leased by it against all ordinary insurable risks and will operate, maintain and repair this
property in a manner consistent with past practice.

          (e) Compliance with Laws. Seller will comply with applicable laws, statutes, ordinances,
rules, regulations, guidelines, orders, arbitration awards, judgments and decrees applicable to
or binding on Seller or its business or properties.

          (f) Fulfill Conditions. Seller will use its best efforts to fulfill each of the closing
conditions on or prior to the Effective Time.

     16. Buyer’s Covenants. Buyer covenants as follows:

          (a) Buyer’s Applications for Approval. As soon as practicable following the execution of
this Agreement, but in no event later than thirty (30) days from the date of this Agreement,
Buyer will file applications as may be required by the appropriate federal and

-23-

 

state regulatory authorities for approval to consummate the transaction contemplated by this
Agreement. Buyer promptly will furnish Seller with copies of written communications filed with
or received from any governmental agency in connection with the transaction contemplated by this
Agreement.

          (b) Use of Seller’s Name. Buyer does not have any rights to the use of Seller’s name and
that, at its expense, Buyer will take actions reasonably requested by Seller to protect Seller’s
name or its derivatives or to reflect Seller’s continued ownership of the Branches.

          (c) Fulfill Conditions. Buyer will use its best efforts to fulfill each of the closing
conditions on or prior to the Effective Time.

          (d) Non-Solicitation of Business. For a period of one year following the Effective Time,
Buyer will not solicit the Retained Customers (unless a portion of such customers’ business is
retained by Buyer, in which case Buyer may solicit such customers only in connection with the
specific business retained by Buyer). Nothing in this subsection will prevent Buyer or any of its
affiliates from general advertising and marketing not specifically directed to the Retained
Customers.

          (e) Interference/Liens. Buyer may not take any actions prior to Closing, to change the zoning
or other governmental status of, the Real Estate, or to enter into any agreements with any private
or public authority which would bind Seller, or encumber the Real Estate prior to the Closing, or
after termination of this Agreement. Notwithstanding anything contained herein regarding
termination of this Agreement, Buyer shall remain liable to Seller for any lien, cost or expense,
incurred by Seller, arising out of Buyer’s presence on the Real Estate or actions in violation of
this section, including specifically, the failure of Buyer to pay for any surveying or other work
conducted by Buyer or Buyer’s agents on the Real Estate. Seller may require Buyer to execute an
Affidavit of Liens in favor of the Title Company, confirming these terms.

     17. Further Assurances. Seller will deliver to Buyer other written documents, instruments,
releases or otherwise as Buyer reasonably may require to effectuate the provisions of this
Agreement, including effectuating the proper transfer of the Assets and Deposits. Seller will
duly execute and deliver such powers of attorney, assignments, bills of sale, deeds,
acknowledgements, releases and other documents or instruments of conveyance as prepared by Buyer
and reasonably necessary or appropriate to transfer to Buyer the Deposits and all title and
interest of Seller to the Assets being sold hereunder. Seller will bear the cost of preparing
any such transfer documents and Buyer will bear all other costs with respect to these documents,
including filing costs, recording fees and transfer fees.

     18. Best Efforts. Buyer and Seller will use their best efforts in good faith to: (a)
furnish information as may be required in connection with the preparation of the applications
with and notifications to federal and state regulatory authorities; (b) ensure that prior to and
following the Effective Time the transaction contemplated by this Agreement is completed in an
orderly and efficient manner; and (c) take all action necessary or desirable to permit
consummation of the transactions contemplated by this Agreement at the earliest possible
date, including satisfying any conditions imposed by regulatory authorities in

-24-

 

connection
with the approval of the transactions contemplated by this Agreement. Neither Buyer nor Seller
will take any action that would substantially impair the prospects of completing the transaction
contemplated by this Agreement. On and after the Closing Date, each party will promptly deliver
to the other all mail and other communications that 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 Deposits or the Assets transferred on the
Closing Date to such employees of Buyer at such addresses as may from time to time be specified
by Buyer in writing.

     19. Confidentiality. Neither Buyer nor Seller will use any information obtained pursuant to
this Agreement for any purpose unrelated to this Agreement. Both parties will hold in confidence
all information and documents obtained pursuant to this Agreement, and will request confidential
treatment before any information or documents are submitted in connection with any application
for regulatory approval, unless the information otherwise becomes publicly available other than
through the actions of the other party or if a party determines that the information or document
is required by law to be disclosed, in which case that party will notify the other of the
impending disclosure. In the event the Sale is for any reason not consummated, all confidential
information received by Buyer or Seller promptly will be returned to the other party without
retaining any copies.

     20. Conditions Precedent to Obligations of Buyer. The obligation of Buyer to consummate the
Sale will be subject to the satisfaction, on or before the Closing Date, of each of the following
conditions, all or any of which may be waived by Buyer in whole or in part:

          (a) Board Approval. Buyer’s Board of Directors has approved the Sale.

          (b) Performance of Covenants. Each of the acts and undertakings of Seller to be performed
or complied with at or prior to the Effective Time have been performed in all material respects.

          (c) Representations True at Closing. The representations and warranties made by Seller are
true and correct in all material respects on the Closing Date with the same force and effect as
though they were made on and as of that time (except to the extent that they may become untrue or
incorrect as a result of actions or transactions of Seller made with the written consent of
Buyer).

          (d) Certified Resolutions. Seller has furnished Buyer will a certified copy of the
resolutions adopted by its Board of Directors authorizing the Sale.

          (e) Regulatory Approvals and Other Consents. Buyer and Seller have received all necessary
federal and state regulatory approvals for the Sale, and any applicable waiting periods in the
approvals have elapsed without challenge. All other necessary consents and approvals, the
absence of which have an adverse effect on Buyer’s rights under this Agreement or which result in
the termination or loss of any right material to the business of Seller, have been received by
Buyer.

-25-

 

          (f) No Injunction. No court or governmental agency of competent jurisdiction has enjoined,
restrained or prohibited the consummation of the Sale.

          (g) Certificate of Compliance. An officer of Seller has executed a certificate, dated as of
the Closing Date, certifying that conditions (a), (b), (c) and (d) of this Section have been
satisfied.

     21. Conditions Precedent to Obligations of Seller. The obligation of Seller to consummate
the Sale will be subject to the satisfaction, on or before the Closing Date, of each of the
following conditions, all or any of which may be waived by Seller in whole or in part:

          (a) Board Approval. Seller’s Board of Directors has approved the Sale.

          (b) Performance of Covenants. Each of the acts and undertakings of Buyer to be performed or
complied with at or prior to the Effective Time have been performed in all material respects.

          (c) Representations True at Closing. The representations and warranties made by Buyer are
true and correct in all material respects on the Closing Date with the same force and effect as
though they were made on and as of that time (except to the extent that they may become untrue or
incorrect as a result of actions or transactions of Buyer made with the written consent of
Seller).

          (d) Certified Resolutions. Buyer has furnished Seller with a certified copy of the
resolutions adopted by its Board of Directors authorizing the Sale.

          (e) Regulatory Approvals and Other Consents. Buyer and Seller have received all necessary
federal and state regulatory approvals for the Sale, and any applicable waiting periods in the
approvals have elapsed without challenge. All other necessary consents and approvals, the
absence of which have an adverse effect on Buyer’s rights under this Agreement or which result in
the termination or loss of any right material to the business of Seller, have been received by
Buyer.

          (f) No Injunction. No court or governmental agency of competent jurisdiction has enjoined,
restrained or prohibited the consummation of the Sale.

          (g) Certificate of Compliance. An officer of Buyer has executed a certificate, dated as of
the Closing Date, certifying that conditions (a), (b), (c), (d) and (e) of this Section have been
satisfied.

     22. Termination by the Parties. This Agreement may be terminated by the parties in any of
the following ways: (a) at any time on or prior to the Closing Date by the mutual written
consent of Buyer and Seller; (b) by Buyer in writing if any of Seller’s conditions have not been
satisfied or waived in writing by Buyer as of the Closing Date; (c) by Seller in writing if any
of Buyer’s conditions have not been satisfied or waived in writing by Seller as of the Closing
Date; (d) by Seller or Buyer in writing at any time after any regulatory authority (which may
include the Wisconsin Department of Financial Institutions’ Office of Credit Unions, the National
Credit Union Administration and the National Credit Union Share

-26-

 

Insurance Fund) has denied any application of Seller or Buyer for approval of the Sale and
any appeals have been exhausted; or (e) by Seller or Buyer in writing if the Sale has not been
consummated at least six (6) months from the date of this Agreement.

     23. Effect of Termination. If this Agreement is terminated, it will become void and neither
party will have any further liability or obligation with respect to this Agreement, except as
otherwise provided in this Agreement or except and to the extent termination results from the
breach by a party of any of its representations, warranties or covenants and except that neither
party will be relieved of its obligations under Sections 19, 23, 24 and 25.

     24. Survival of Representations and Warranties. The representations and warranties in this
Agreement will survive the Closing Date as follows: (a) in the case of a fraudulent or
intentional breach of a representation or warranty, indefinitely; (b) in the case of a claim
based upon a breach of a representation or warranty pertaining to taxes, for a period equal to
the applicable statute of limitations; and (c) in the case of all other claims, including those
based upon the inaccuracy or breach of a representation or warranty as they relate to the Assets
and the Deposits, for a period commencing on the Closing Date and ending twelve (12) months after
the Closing Date. Nothing in this Section limits the right of either Buyer or Seller to assert a
claim for contribution or indemnification against the other party as a result of a claim brought
by a third party against Buyer or Seller, provided that any claim for contribution or
indemnification pursuant to Sections 25 and 26, will be brought within one (1) year from the date
the third party’s action is commenced.

     25. Indemnification.

          (a) Seller. Seller will indemnify and hold Buyer harmless from and against any loss, cost,
expense or other damage (including reasonable attorney fees) resulting from, arising out of, or
incurred with respect to: (1) the breach of a representation or warranty made by Seller in this
Agreement or in any document delivered pursuant to this Agreement; (2) the breach of a covenant
made by Seller in this Agreement; (3) any debts, obligations, contracts and liabilities of Seller
not assumed by Buyer; or (4) claims asserted against Buyer by a third party as a result of any
acts or omissions of Seller prior to the Effective Time.

          (b) Buyer. Buyer will indemnify and hold Seller harmless from and against any loss, cost,
expense or other damage (including reasonable attorney fees) resulting from, arising out of, or
incurred with respect to: (1) the breach of a representation or warranty made by Buyer in this
Agreement or in any document delivered pursuant to this Agreement; (2) the breach of a covenant
made by Buyer in this Agreement; or (3) any debts, obligations, contracts or liabilities of
Seller assumed by Buyer pursuant to this Agreement, unless the loss, cost, expense or other
damage occurred as a result of an act or omission which occurred prior to the Effective Time.

          (c) Claims. Any claim for indemnification under this Section must be asserted within the
applicable survival period, and if not asserted within that period the right to assert the claim
will lapse. Except for claims asserted by a third party, the indemnifying party will not have
any liability for a claim until the aggregate amount of the liability for the claim exceeds
$25,000, at which time that party will have liability for the full amount of the claim.

-27-

 

In no event will Seller’s liability for indemnification exceed the sum of the amounts listed
in Sections 3(b)(2) through (6) (which items are considered the “purchase price” for the
Branches).

          (d) Exclusive Remedy. The indemnification provided by this Section is the sole and
exclusive remedy with respect to any claim of any party to this Agreement against any other party
to this Agreement in connection with the Sale, and the remedy provided in this Section will be in
lieu of any other claims or actions that might otherwise have been available at law or in equity.

     26. Defense of Claims. If any third party asserts a claim against Buyer which, if
successful, would entitle Buyer to indemnification under this Agreement, Buyer will give notice
of the claim to Seller and Seller will have the right to assume the defense of the claim at its
expense with counsel reasonably satisfactory to Buyer, provided Seller diligently pursues the
defense of the claim. If Seller does assume the defense, it will indemnify and hold Buyer
harmless from and against any and all losses, damages and liabilities caused by or arising out of
any settlement or judgment of such claim. In addition, Buyer will have the right to participate
in the defense of the claim at its expense, in which case Seller will cooperate in providing
information to and consulting with Buyer about the claim and Seller will not consent to the entry
of judgment or enter into any settlement without the prior written consent of Buyer. If Seller
does not assume the defense of the claim, Buyer may defend against and/or settle the claim in the
manner and on the terms as it in good faith deems appropriate and will be indemnified for the
amount of any judgment or settlement and for all losses or expenses, legal or otherwise, incurred
in connection with the defense and/or settlement of the claim. Failure by Seller to give written
notice to Buyer of its election to defend the claim within thirty (30) days after written notice
of the claim is given to Seller by Buyer will be deemed a waiver of Seller’s right to defend the
claim.

     27. Specific Performance. The parties agree that irreparable damage would occur in the
event that provisions contained in this Agreement are not performed in accordance with its
specific terms or were otherwise breached. It is accordingly agreed that the parties shall be
entitled to seek injunctive relief, including temporary restraining orders and preliminary
injunctions, to prevent breaches of this Agreement and to enforce specifically the terms and
provisions of this Agreement in any court of the United States or any state having jurisdiction,
this being in addition to any other remedy to which the parties are entitled under Section 28 of
this Agreement.

     28. Resolution of Disputes; Binding Arbitration. Any and all claims and disputes of any
kind or nature between the parties arising under or relating to this Agreement or the breach or
enforcement thereof shall be finally resolved by binding arbitration in Madison, Wisconsin, by
three (3) neutral arbitrators (who are active members of the legal profession with experience in
contracts) in accordance with the Commercial Arbitration Rules of the American Arbitration
Association, and judgment upon such award may be entered by any court of competent jurisdiction.
Any party may at any time initiate an arbitration under this Agreement by giving notice of
arbitration to the other party. Each party shall appoint an arbitrator, obtain its appointee’s
acceptance of such appointment, and deliver written notification of such appointment and
acceptance to the other party within thirty (30) days after

-28-

 

delivery of the notice of arbitration. The two (2) party appointed arbitrators shall
jointly appoint the third arbitrator, obtaining the appointee’s acceptance of such appointment
and notify the parties in writing of such appointment and acceptance within thirty (30) days
following their appointment and acceptance. If the appointment and acceptance of the third
arbitrator are not effective within the thirty (30) day period, then, the American Arbitration
Association shall appoint the third arbitrator, obtain the acceptance of such appointment and
notify the parties and both arbitrators in writing of such appointment and acceptance. The third
arbitrator shall serve as chairperson of the tribunal. All decisions and rulings of the
tribunal, as well as any interim or final award, shall be pursuant to majority vote of the three
(3) arbitrators comprising the tribunal. Any party may at any time initiate an arbitration under
this Agreement by giving notice of arbitration to the other party. The parties agree that, with
respect to any dispute, claim or controversy that is to be arbitrated, discovery and the nature
of that allowed by the Federal Rules of Civil Procedure will be afforded to each party and any
dispute with respect to such discovery shall also be settled by the arbitrators. The arbitrators
shall award costs of the arbitration proceeding, including reasonable attorneys’ fees and
expenses, in favor of the prevailing party provided that, if both parties prevail on different
claims, the costs, attorneys’ fees and expenses shall be allocated according to the monetary
value of the claims decided against a party. Notwithstanding the foregoing, any party to this
Agreement shall be entitled to seek and obtain injunctive or other appropriate equitable relief
in a court to the extent necessary to preserve its rights prior to a resolution of arbitration
proceedings or to obtain equitable relief to the extent necessary to prevent irreparable harm.

     29. Public Announcements. Seller and Buyer will agree as to the timing, form and substance
of any press release relating to the Sale, provided that nothing will prohibit either party from
making any disclosure which it deems necessary to comply with applicable law.

     30. Exhibits. On or before the date of this Agreement, Seller will provide Buyer with
certain information related to the business of the Branches, attached to this Agreement as
exhibits and incorporated in this Agreement by reference.

     31. Brokers. Buyer and Seller each represent and warrant that all negotiations relative to
the Sale have been carried on without the intervention of any third parties.

     32. Payment of Expenses. Except as otherwise expressly provided in this Agreement, each
party will bear and pay all costs and expenses incurred by it or on its behalf in connection with
the Sale, including expenses incurred in connection with regulatory approvals or for any notices
to the Branches’ customers.

     33. Entire Agreement. This Agreement constitutes the entire agreement between the parties
pertaining to the subject matter of the Sale and supersedes all negotiations, preliminary
agreements and all prior or contemporaneous discussions and understandings of the parties.

     34. Amendments. No amendment, change, modification or waiver of any of the terms of this
Agreement are effective unless made in writing and executed by both parties.

-29-

 

     35. Assignment. This Agreement is binding upon, and will inure to the benefit of, the
parties and their respective successors and permitted assigns, but neither this Agreement nor any
of the rights, interests or obligations under this Agreement may be assigned by either party
without the prior written consent of the other.

     36. Addresses for Notice. All communications provided for under this Agreement must be in
writing and will be deemed given when delivered personally, telecopied (with confirmation) or
mailed by registered or certified mail (return receipt requested) to the other party at the
following address (or such other address as specified in writing):

	 	 	 	 	 	 	 	 	 

	 

	 	 	 	If to Seller:
	 	 	 	with a copy to:
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	AnchorBank, fsb
	 	 	 	W. Charles Jackson
	 

	 	 	 	c/o Mark D. Timmerman
	 	 	 	Michael Best & Friedrich, LLP
	 

	 	 	 	25 Main Street
	 	 	 	100 East Wisconsin Avenue
	 

	 	 	 	Madison, WI 53703
	 	 	 	Milwaukee, WI 53202
	 

	 	 	 	Fax: (608) 252-8783
	 	 	 	Fax: (414) 277-0656
	 
	 	 	 	 	 	 	 	 
	 	 	If to Buyer:	 	with a copy to:
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	Royal Credit Union
	 	 	 	Sverre D. Roang
	 

	 	 	 	c/o James Watts, CIO
	 	 	 	Whyte Hirschboeck Dudek, SC
	 

	 	 	 	PO Box 970
	 	 	 	33 East Main Street, #300
	 

	 	 	 	Eau Claire, WI 54702-0870
	 	 	 	Madison, WI 53703

     37. Counterparts. This Agreement and all other documents executed in connection with the
Sale may be executed in two or more counterparts, each of which will be deemed an original, but
all of which together will constitute one and the same instrument.

     38. Severability. If any provision contained in this Agreement becomes illegal, null or
void or against public policy, the remaining provisions will not be affected.

     39. Governing Law. This Agreement will be governed by and construed in accordance with the
laws of Wisconsin.

-30-

 

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

	 	 	 	 	 	 	 	 	 

	SELLER	 	 	 	BUYER
	AnchorBank, fsb	 	 	 	Royal Credit Union
	 
	 	 	 	 	 	 	 	 
	By:

	 	 	 	 	 	By:	 	 
	 

	 	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	President

 

 

INDEX OF EXHIBITS

	A.	 	Description of Real Estate
	 
	B.	 	Description of Fixtures and Equipment (as of a date within 30 days of the Agreement)
	 
	C.	 	Accepted Loans
	 
	D.	 	Additional Accepted Loans
	 
	E.	 	Buyer Field of Membership
	 
	F.	 	Unfunded Obligations
	 
	G.	 	Deposits
	 
	H.	 	Financial Reports
	 
	I.	 	Form of Assignment and Assumption Agreement
	 
	J.	 	Form of Assignment of Leases

 

 

Exhibit A

DESCRIPTION OF REAL ESTATE

Owned Real Estate

AnchorBank, fsb Amery Office

1080 Cornwall Avenue

Amery, WI 54001

AnchorBank, fsb Centuria Office

316 4th Street

Centuria, WI 54824

AnchorBank, fsb Milltown Office

21 West Main Street

Milltown, WI 54858

AnchorBank, fsb Osceola Office

500 Chieftain Street

Osceola, WI 54020

AnchorBank, fsb Star Prairie Office

100 Main Street

Star Prairie, WI 54026

AnchorBank, fsb Menomonie Office

2421 Stout Road

Menomonie, WI 54751

AnchorBank, fsb New Richmond Office

355 South Knowles Avenue

New Richmond, WI 54017

(Note: AnchorBank also owns another building and extra lots at 1443 S. Knowles Ave,

and 330, 346 S. Knowles and 125 E. 4th Street, which are NOT included in sale).

AnchorBank, fsb Somerset Office

115 Parent Street

Somerset, WI 54025

AnchorBank, fsb Balsam Lake Office

Balsam Lake, WI 54810

(just parking lot used in connection with leased bank location)

 

 

AnchorBank, fsb River Falls Office

1150 North Main Street

River Falls, WI 54022

(Note: does include 143/157 E. Pomeroy, but does not include location of leased ATM

(the ATM lease will expire 11/30))

Leased Branch Locations:

AnchorBank, fsb Balsam Lake Office

100 Mill Street

Balsam Lake, WI 54810

AnchorBank, fsb Saint Croix Falls Office

2071 Glacier Drive, Suite 10

St. Croix Falls, WI 54024

 

 

Exhibit B

DESCRIPTION OF FIXTURES AND EQUIPMENT

 

 

Exhibit C

ACCEPTED LOANS

 

 

Exhibit D

ADDITIONAL ACCEPTED LOANS

 

 

Exhibit E

BUYER FIELD OF MEMBERSHIP

The rights of members of the Buyer are determined and exercised in accordance with applicable law,
the Articles and Bylaws of the Buyer and policies of its Board.

Employees of the former Eau Claire plant of Uniroyal; persons residing or employed in the Wisconsin
counties of Barron, Buffalo, Burnett, Chippewa, Clark, Dunn, Eau Claire, Jackson, Marathon, Pierce,
Pepin, Polk, Rusk, St. Croix, Taylor, Trempealeau, Washburn and Wood; employees of Marten
Transport; any member of the University of Wisconsin — Eau Claire Alumni Association; and any
employee of Tenneco-Packaging Corporation at their plan in Colby, WI, and office in the City of
Appleton, Wisconsin; persons residing or employed in the Minnesota counties of Anoka, Carver,
Chisago, Dokata, Goodhue, Hennepin, Olmsted, Ramsey, Scott, Wabasha, Washington and Winona and
employees of firms and independent contractors contractually associated with such firms domiciled
in Minnesota or Wisconsin and affiliated with the Minnesota realtor associations or Wisconsin
realtor associations or where such individuals are themselves a member of a Minnesota realtor
association or Wisconsin realtor association.

A public depositor, any employee of the Buyer, and any member of the immediate family of any
other eligible person may become a member of the credit union in the manner provided in the Bylaws
of the Buyer. Any organization or association of individuals, the majority of the directors,
owners and members of which are eligible for membership, may be admitted to membership in the same
manner and under the same conditions as individuals.

 

 

Exhibit F

UNFUNDED OBLIGATIONS

 

 

Exhibit G

DEPOSITS

 

 

Exhibit H

FINANCIAL REPORTS

 

 

Exhibit I

ASSIGNMENT AND ASSUMPTION AGREEMENT

          ASSIGNMENT AND ASSUMPTION AGREEMENT dated as of                     , 200___by and between
                                         (“Seller”), and                                          (“Buyer”).

WITNESSETH:

          WHEREAS, Seller and Buyer have entered into a Branch Purchase Agreement dated as of
                     2009 and pursuant to the Branch Purchase Agreement Seller has agreed to sell the
Assets to Buyer and Buyer has agreed to purchase the Assets, assume the liabilities related to the
Assets and the Deposits (as such terms are defined in the Branch Purchase Agreement);

          NOW, THEREFORE, in consideration of the mutual covenants and agreements set forth in this
Agreement, Seller and Buyer agree as follows:

          1. Assignment. Effective as of the date of this Agreement, Seller assigns and transfers to
Buyer, upon the terms and conditions in the Branch Purchase Agreement, without recourse,
representation or warranty except as explicitly provided in the Branch Purchase Agreement, all of
its right, title and interest in and to the Assets.

          2. Assumption. Effective as of the date of this Agreement, Buyer assumes and agrees to pay,
discharge or perform, as appropriate, the Assumed Obligations (as defined in the Branch Sale
Agreement) from and after the Effective Time, all in accordance with the provisions of the Branch
Purchase Agreement.

          3. Governing Law. This Agreement will be governed by and construed in accordance with the
laws of Wisconsin (except for conflict of laws provisions).

          IN WITNESS WHEREOF, the parties have executed this Agreement in their respective corporate
names by their respective duly authorized officers, all as of the day and year first written above.

	 	 	 	 	 	 	 	 	 

	SELLER	 	 	 	BUYER
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	By:

	 	 	 	 	 	By:	 	 
	 

	 	 
	 	 	 	 	 	 
	 

	 	[Name, Title]
	 	 	 	 	 	[Name, Title]

 

 

Exhibit J

ASSIGNMENT AND ASSUMPTION OF LEASES

[To be agreed upon as part of the Real Estate Documents as defined herein]

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00175-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00175-of-00352.parquet"}]]