Document:

exv4w36

Exhibit 4.36

Translation

December 13, 2010

Shareholder Voting Proxy Agreement

by and among

Han Junping

Xiong Wei

and

Shanghai Huopu Cloud Computing Terminal Technology Co., Ltd.

The9 Computer Technology Consulting (Shanghai) Co., Ltd.

Regarding

Shanghai Huopu Cloud Computing Terminal Technology Co., Ltd.

 

 

 

Shareholder Voting Proxy Agreement

This Shareholder Voting Proxy Agreement (hereinafter this “Agreement”) is entered into in
Shanghai as of December 13, 2010 by and among the following Parties:

	1.	 	The9 Computer Technology Consulting (Shanghai) Co., Ltd. (hereinafter “The9 Computer”)

Registered address: Room 103, Building 3, No. 690 Bibo Road, Zhangjiang Hi-Tech Park, Shanghai

	2.	 	Shanghai Huopu Cloud Computing Terminal Technology Co., Ltd. (hereinafter the “Company”)

Registered address:

	3.	 	Han Junping, identity card number:                     

Domicile address:                     

	4.	 	Xiong Wei, identity card number:                     

Domicile address:                     

(Han Junping and Xiong Wei are hereinafter referred to individually and collectively as the
“Shareholder(s)”)

(In this Agreement, all parties mentioned above are referred to individually as a “Party” and
collectively as the “Parties”.)

WHEREAS:

	1.	 	The Shareholders are all existing shareholders of the Company, who own 100% equity interest
in the Company;

	2.	 	Each of the Shareholders intends to entrust any individual designated by The9 Computer to
exercise his voting rights in the Company, and The9 Computer intends to designate such
individuals to accept the entrustment.

Therefore, the Parties have reached the following agreement upon friendly consultations:

Article 1 Entrustment of Voting Right

	1.1	 	The Shareholders hereby irrevocably undertake that they will, upon execution hereof, sign a
power of attorney in substance and form as set out in Appendix I hereto, respectively, to
entrust any individuals then designated by The9 Computer (hereinafter the “Entrusted Persons”)
to exercise, on behalf of each of the Shareholders, the following rights to which the
Shareholders are entitled in their capacity of the Company’s shareholders under the articles
of association of the Company then in effect (collectively the “Entrusted Rights”):

	 	(1)	 	to propose to convene and attend Shareholders’ meetings of the Company as the
proxy of each of the Shareholders according to the articles of association of the
Company;

 

 

 

	 	(2)	 	to exercise, on behalf of each of the Shareholders, his voting rights on all
matters requiring discussion or resolutions of the Shareholders’ meeting of the
Company, including without limitation, the designation and election of the Company’s
directors and general manager, and other senior management that shall be appointed and
removed by the Shareholders;

	 	(3)	 	to exercise other voting rights to which the Shareholders are entitled under
the laws and regulations of the PRC (including any amendment, change, addition and
supplement and reenactment thereof, irrespective of whether they take effect before or
after the formation of this Agreement);

	 	(4)	 	to exercise other voting rights of the Shareholders as specified in the
articles of association of the Company (including any other shareholders’ voting rights
as specified in the amended articles of association).

The above authorization and entrustment shall be conditional upon The9 Computer approving
such authorization and entrustment. If and only if The9 Computer gives a written notice for
removal and replacement of the Entrusted Person(s) to each of the Shareholders, the
Shareholders shall immediately designate the other PRC citizen then designated by The9
Computer to exercise the above Entrusted Rights, and the new power of attorney shall, once
made, supersede the original power of attorney. Save as aforesaid, no Shareholders shall
revoke the authorization and entrustment given to the Entrusted Person(s).

	1.2	 	The Entrusted Person(s) shall perform their obligations in respect of the entrustment
hereunder to the extent authorized hereunder with due care and diligence and in compliance
with laws. The Shareholders shall acknowledge and assume liabilities for any legal
consequences resulting from the exercise by the Entrusted Persons of the Entrusted Rights
described above.

	1.3	 	The Shareholders hereby confirm that the Entrusted Persons shall not be required to seek
opinions from the Shareholders prior to their exercise of the above Entrusted Rights.
However, the Entrusted Persons shall notify the Shareholders in a timely manner of any
resolution or proposal for convening an interim shareholders’ meeting after such resolution or
proposal is made.

Article 2 Right to Information

	2.1	 	For the purpose of exercising the Entrusted Rights hereunder, the Entrusted Persons shall be
entitled to know all information of the Company relating to its operation, business,
customers, finance and employees, and shall have access to the relevant documents and
materials of the Company. The Company shall fully cooperate with the Entrusted Persons in
this regard.

 

 

 

Article 3 Exercise of Entrusted Rights

	3.1	 	The Shareholders will provide sufficient assistances to the Entrusted Persons with regard to
their exercise of the Entrusted Rights, including the execution of resolutions of
shareholders’ meetings made by the Entrusted Persons or other relevant legal documents in a
timely manner when necessary (e.g., where the same is required in order to submit documents
for the purposes of government approvals, registrations or filings).

	3.2	 	If, at any time within the term of this Agreement, the grant or exercise of the Entrusted
Rights hereunder cannot be realized due to any reason (except for the default of any
Shareholder or the Company), the Parties shall immediately seek the alternative proposal that
is most similar to the one that cannot be realized and, if necessary, enter into a
supplementary agreement to amend or adjust the provisions herein, in order to ensure that the
purpose of this Agreement can continue to realize.

Article 4 Exemption and Compensation

	4.1	 	The Parties acknowledge that in no case shall The9 Computer be required to be liable to or
compensate (economic or otherwise) the other Parties or any third party in connection with any
exercise of the Entrusted Rights hereunder by the individuals designated by it.

	4.2	 	The Shareholders and the Company agree to indemnify and hold The9 Computer harmless against
all losses suffered or likely to be suffered by it due to any exercise of the Entrusted Rights
by the Entrusted Persons designated by The9 Computer, including without limitation, any loss
resulting from any litigation, demand, arbitration or claim by any third party against it or
from administrative investigation or penalty by government authorities, provided, however,
that no indemnification is available for any losses caused by a willful default or gross
negligence of the Entrusted Persons.

Article 5 Representations and Warranties

	5.1	 	Each of the Shareholders hereby jointly and severally represents and warrants as follows:

	 	5.1.1	 	He is a PRC citizen with full capacity, has full and independent legal status
and legal capacity to execute, deliver and perform this Agreement, and may act
independently as a party to lawsuit.

	 	5.1.2	 	He has full power to execute and deliver this Agreement and all the other
documents to be signed by him in relation to the transaction referred to herein, and
has the full power to complete the transaction referred to herein. This Agreement
shall be executed and delivered by him legally and properly. This Agreement
constitutes the legal and binding obligations on him and is enforceable against him in
accordance with its terms and conditions

	 	5.1.3	 	He is the legitimate shareholder of the Company whose name appears on its
register of members as of the effective date of this Agreement, and except for the
rights created by this Agreement, the Equity Pledge Agreement and the Exclusive Call
Option Agreement entered into by the Shareholders, the
Company and The9 Computer, there is no third party right on the Entrusted Rights.
In accordance with this Agreement, the Entrusted Persons may exercise the Entrusted
Rights fully and completely pursuant to the articles of association of the Company
then in effect.

 

 

 

	5.2	 	Each of The9 Computer and the Company hereby severally represents and warrants as follows:

	 	5.2.1	 	It is a company with limited liability duly incorporated and legally existing
under the laws of the place of its incorporation with an independent legal person
status. It has full and independent legal status and legal capacity to execute,
deliver and perform this Agreement and may act independently as a party to lawsuit.

	 	5.2.2	 	It has the full corporate power and authority to execute and deliver this
Agreement and all the other documents to be signed by it in relation to the transaction
referred to herein, and it has the full power and authority to complete the transaction
referred to herein.

	5.3	 	The Company further represents and warrants as follows:

	 	5.3.1	 	The Shareholders are all legitimate shareholders of the Company whose names
appear on its register of members as of the effective date of this Agreement, and
except for the rights created by this Agreement, the Equity Pledge Agreement and the
Exclusive Call Option Agreement entered into by the Shareholders, the Company and The9
Computer, there is no third party right on the Entrusted Rights. In accordance with
this Agreement, the Entrusted Persons may exercise the Entrusted Rights fully and
completely pursuant to the articles of association of the Company then in effect.

Article 6 Term of Agreement

	6.1	 	Subject to Articles 6.2 and 6.3 hereof, this Agreement shall become effective once it is duly
signed by the Parties, and shall remain effective until the date on which the business term of
the Company or The9 Computer expires (whichever is earlier), unless it is early terminated by
the Parties in writing or pursuant to Article 9.1 hereof. This Agreement will be
automatically extended for one (1) year upon the expiration except where The9 Computer gives
the other Parties a prior notice of thirty (30) days not to extend the term of this Agreement
upon its expiration, and the same mechanism will apply subsequently upon the expiration of
each extended term.

	6.2	 	This Agreement shall terminate if the Company or The9 Computer, upon expiry of its business
term, fails to complete the formalities in relation to the approval and registration for the
extension thereof.

	6.3	 	If any of the Shareholders transfers all of his equity interest in the Company with the prior
consent of The9 Computer, such Shareholder will no longer be a Party hereto and the
obligations and undertakings of any other Parties hereunder will not be adversely affected.

 

 

 

Article 7 Notice

	7.1	 	Any notice, request, demand and other correspondences required by this Agreement or made in
accordance with this Agreement shall be delivered in writing to the relevant Party.

	7.2	 	Any such notice or other correspondences shall be deemed to have been delivered, if sent by
facsimile or telex, when it is sent, and if delivered in person, when it is delivered, and if
sent by post, five (5) days after it was posted.

Article 9 Liabilities for Breach of Contract

	9.1	 	The Parties agree and confirm that, if any Party (hereinafter the “Defaulting Party”)
substantially violates any of the provisions herein or substantially fails to perform any of
the obligations hereunder, such violation or failure shall constitute a default under this
Agreement (hereinafter a “Default”), and any of the other non-defaulting Parties (hereinafter
the “Non-defaulting Party”) shall have the right to require the Defaulting Party to rectify
such Default or take remedial measures within a reasonable period. If the Defaulting Party
fails to rectify such Default or take remedial measures within such a reasonable period or
within ten (10) days after the Non-defaulting Party notifies the Defaulting Party in writing
and require it to rectify the Default, then: (1) if any Shareholder or the Company is the
Defaulting Party, The9 Computer shall be entitled to terminate this Agreement and require the
Defaulting Party to make compensation for damages; (2) if The9 Computer is the Defaulting
Party, the Non-defaulting Party shall be entitled to require the Defaulting Party to make
compensation for damages, but unless otherwise provided by law, the Non-defaulting Party shall
have no right to terminate or discharge this Agreement or the entrustment hereunder in any
circumstances.

	9.2	 	The rights and remedies set out herein shall be cumulative, and shall not preclude any other
rights or remedies provided by law.

	9.3	 	Notwithstanding any other provisions herein, the effect of this Article shall not be affected
by the suspension or termination of this Agreement.

Article 10 Miscellaneous

	10.1	 	This Agreement is executed in Chinese in four (4) originals, with one (1) original to be
retained by each Party hereto.

	10.2	 	The formation, effectiveness, performance, amendment, interpretation and termination of this
Agreement shall be governed by the laws of the PRC.

	10.3	 	Any disputes arising out of and in connection with this Agreement shall be resolved through
consultations among the Parties. If the Parties cannot reach an agreement regarding such
disputes within thirty (30) days of their occurrence, such disputes shall be submitted to
China International Economic and Trade Arbitration Commission, Shanghai Branch, for
arbitration in Shanghai in accordance with the arbitration rules of such Commission, and the
arbitration award shall be final and binding on the Parties.

 

 

 

	10.4	 	None of the rights, powers and remedies granted to any Party by any provisions herein shall
preclude any other rights, powers and remedies available to such Party at law and under the
other provisions of this Agreement, nor shall the exercise by a Party of its rights, powers
and remedies preclude any exercise by such Party of its other rights, powers and remedies.

	10.5	 	No failure or delay by a Party in exercising any of its rights, powers and remedies hereunder
or in accordance with laws (hereinafter the “Party’s Rights”) shall result in a waiver
thereof, nor shall the waiver of any single or partial exercise of the Party’s Rights preclude
such Party from exercising such rights in any other way and exercising the other Party’s
Rights.

	10.6	 	The headings of the provisions herein are for reference only, and in no circumstances shall
such headings be used for or affect the interpretation of the provisions hereof.

	10.7	 	Each provision contained herein shall be severable and independent from each of other
provisions, and if at any time any one or more provisions herein become(s) invalid, illegal or
unenforceable, the validity, legality and enforceability of the remaining provisions herein
shall not be affected as a result thereof.

	10.8	 	Any amendments or supplements to this Agreement shall be made in writing, and shall become
effective only when duly signed by the Parties to this Agreement.

	10.9	 	Without the prior written consent of The9 Computer, the other Parties shall not transfer any
of their rights and/or obligations hereunder to any third parties. The Shareholders and the
Company hereby agree that The9 Computer shall be entitled to transfer any of its rights and/or
obligations hereunder to any third party after serving written notice to the Shareholders and
the Company.

	10.10	 	This Agreement shall be binding on the legal successors of the Parties.

 

 

 

IN WITNESS HEREOF, the Parties have caused this Shareholder Voting Proxy Agreement to be
executed as of the date and in the place first above written.

The9 Computer Technology Consulting (Shanghai) Co., Ltd. [Chop affixed]

(Company chop)

Shanghai Huopu Cloud Computing Terminal Technology Co., Ltd. [Chop affixed]

(Company chop)

	 	 	 	 	 
	Han Junping	 	 
	 
	 	 	 	 
	Signature:

	 	/s/ Han Junping
 

	 	 
	 
	 	 	 	 
	Xiong Wei	 	 
	 
	 	 	 	 
	Signature:

	 	/s/ Xiong Wei
 

	 	 

 

 

 

Appendix I

Form of the Power of Attorney

This power of attorney (“PoA”) is signed by [name of shareholder] (residence:                     ; ID
number:                     ) on                     , 2010, and is issued to [name of proxy] (residence:                     ; ID number:
                    )(“Proxy”)

I,                     , hereby irrevocably fully entrust the Proxy with the
following shareholder rights enjoyed by myself as a shareholder of Shanghai Huopu Cloud Computing
Terminal Technology Co., Ltd. (the “Company”):

	 	(1)	 	Attend, as my proxy, shareholder meetings pursuant to the Company’s articles of
association;

	 	(2)	 	Exercise voting rights with respect to all the matters discussed and resolved at
the shareholders’ meetings as my proxy, including but not limited to designating and
electing the Company’s directors and other senior management officers that ought to be
appointed at a shareholders’ meeting; and

	 	(3)	 	Exercise any other shareholder voting rights conferred on myself by the Company’s
articles of association as my proxy (including any other shareholder voting rights
provided for under any amendments to the articles of association).

I hereby irrevocably confirm that, unless The9 Computer Technology Consulting (Shanghai) Co.,
Ltd. (“The9 Computer”) requests myself to substitute you with another proxy, this PoA shall expire
on the date of expiry or termination of the Shareholder Voting Proxy Agreement entered into among
The9 Computer, the Company, and the shareholders of the Company on                     , 2010.

Name:                     

Signature:exv10w1

Exhibit 10.1

 

 

SECURITIES PURCHASE AGREEMENT

dated as of April 6, 2011

between

INTERMOUNTAIN COMMUNITY BANCORP

and

 

 

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Page	 
	 	 	 	 	 
	ARTICLE I Purchase; Closings	 	 	1	 
	 	1.1
	 	 	Purchase
	 	 	1	 
	 	1.2
	 	 	Closing
	 	 	2	 
	 	 	 	 	 
	ARTICLE II Representations and Warranties	 	 	7	 
	 	2.1
	 	 	Disclosure
	 	 	7	 
	 	2.2
	 	 	Representations and Warranties of the Company
	 	 	8	 
	 	2.3
	 	 	Representations and Warranties of the Investor
	 	 	28	 
	 	 	 	 	 
	ARTICLE III Covenants	 	 	31	 
	 	3.1
	 	 	Filings; Other Actions
	 	 	31	 
	 	3.2
	 	 	Use of Proceeds; Expenses
	 	 	33	 
	 	3.3
	 	 	Access, Information and Confidentiality
	 	 	34	 
	 	3.4
	 	 	Transfer
	 	 	35	 
	 	3.5
	 	 	Reasonable Efforts
	 	 	35	 
	 	3.6
	 	 	Shareholder Litigation
	 	 	35	 
	 	3.7
	 	 	Most Favored Nation
	 	 	35	 
	 	3.8
	 	 	Notice of Certain Events
	 	 	36	 
	 	3.9
	 	 	Conduct of the Business
	 	 	36	 
	 	 	 	 	 
	ARTICLE IV Termination	 	 	37	 
	 	4.1
	 	 	Termination
	 	 	37	 
	 	4.2
	 	 	Effects of Termination
	 	 	38	 
	 	4.3
	 	 	Notice of Other Terminations
	 	 	38	 
	 	 	 	 	 
	ARTICLE V Additional Agreements	 	 	38	 
	 	5.1
	 	 	No Rights Agreement
	 	 	38	 
	 	5.2
	 	 	Investor Standstill Agreements
	 	 	39	 
	 	5.3
	 	 	Compliance with Laws
	 	 	42	 
	 	5.4
	 	 	Legend
	 	 	42	 
	 	5.5
	 	 	NASDAQ Listing; Reverse Stock Split
	 	 	43	 
	 	5.6
	 	 	[RESERVED]
	 	 	44	 
	 	5.7
	 	 	Certain Transactions
	 	 	44	 
	 	5.8
	 	 	Indemnity
	 	 	45	 
	 	5.9
	 	 	Registration Rights
	 	 	47	 
	 	5.10
	 	 	Governance Matters
	 	 	61	 
	 	5.11
	 	 	Anti-Takeover Matters
	 	 	65	 
	 	5.12
	 	 	Additional Regulatory Matters
	 	 	65	 
	 	5.13
	 	 	Third-Party Loan Review Report
	 	 	66	 
	 	5.14
	 	 	Gross-Up Rights
	 	 	67	 
	 	5.15
	 	 	Form D and Blue Sky
	 	 	70	 

-i- 

 

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Page	 
	 	 	 	 	 
	 	5.16
	 	 	Securities Laws Disclosure; Publicity
	 	 	70	 
	 	5.17
	 	 	No Additional Issuances
	 	 	70	 
	 	5.18
	 	 	Acknowledgment of Dilution
	 	 	71	 
	 	5.19
	 	 	Rights Offering.
	 	 	71	 
	 	5.20
	 	 	Certain Adjustments
	 	 	72	 
	 	5.21
	 	 	Resolution of Sandpoint Center Matter
	 	 	72	 
	 	 	 	 	 
	ARTICLE VI Miscellaneous	 	 	73	 
	 	6.1
	 	 	Survival
	 	 	73	 
	 	6.2
	 	 	Amendment
	 	 	73	 
	 	6.3
	 	 	Waivers
	 	 	73	 
	 	6.4
	 	 	Counterparts and Facsimile
	 	 	73	 
	 	6.5
	 	 	Governing Law
	 	 	73	 
	 	6.6
	 	 	Waiver of Jury Trial
	 	 	74	 
	 	6.7
	 	 	Notices
	 	 	74	 
	 	6.8
	 	 	Entire
Agreement, etc.
	 	 	74	 
	 	6.9
	 	 	Other Definitions
	 	 	75	 
	 	6.10
	 	 	Captions
	 	 	76	 
	 	6.11
	 	 	Severability
	 	 	76	 
	 	6.12
	 	 	No Third-Party Beneficiaries
	 	 	76	 
	 	6.13
	 	 	Time of Essence
	 	 	77	 
	 	6.14
	 	 	Public Announcements
	 	 	77	 
	 	6.15
	 	 	Specific Performance
	 	 	77	 
	 	6.16
	 	 	Independent Nature of Investors’ Obligations and Rights
	 	 	77	 
	 	6.17
	 	 	Applicability of Certain Provisions
	 	 	78	 

LIST OF EXHIBITS

	 	 	 

	Exhibit A:

	 	Form of Opinion of Counsel
	Exhibit B:

	 	Form of Officer’s Certificate of the Company
	Exhibit C:

	 	Form of Officer’s Certificate of Investor
	Exhibit D:

	 	Form of Secretary’s Certificate of the Company
	Exhibit E:

	 	Form of Warrant
	Exhibit F:

	 	Form of Passivity Commitment

ii

 

     SECURITIES PURCHASE AGREEMENT, dated as of April 6, 2011 (this “Agreement”), between
Intermountain Community Bancorp, an Idaho corporation (the “Company”), and _____________________
(the “Investor”).

RECITALS:

     A. The Investment. The Company intends to sell to the Investor, and the Investor
intends to purchase from the Company, as an investment in the Company, the securities as described
herein. The securities to be purchased at the Closing are shares of common stock, no par value, of
the Company (“Common Stock” or “Common Shares”) and warrants to purchase up to 1,000,000 Common
Shares at a purchase price equal to $1.25 per share (the “Warrants”)1.

     B. Additional Private Placements. Concurrently with the investment contemplated
herein, the Company has agreed to sell Common Shares in private placements (the “Other Private
Placements”) to other investors (the “Other Investors”) under separate securities purchase
agreements (the “Other Securities Purchase Agreements”), with the closing of such transactions to
occur simultaneously with the closing of this transaction.

     C. Transaction Documents. The term “Transaction Documents” refers collectively to
this Agreement, the certificates evidencing the Warrants in the form attached as Exhibit E
hereto (the “Warrant Certificates”) and the Other Securities Purchase Agreements.

     D. Placement Agent. The Company has engaged Sandler O’Neill & Partners, L.P. as its
exclusive placement agent (the “Placement Agent”) for the offering of the Common Stock pursuant to
this Agreement and the Other Securities Purchase Agreements.

     E. Rights Offering. As promptly as reasonably practicable following the Closing (as
defined below), the Company will commence the Rights Offering (as defined below) to holders of
record of Common Stock on the day immediately prior to the Closing Date (as defined below), in
which the Company will distribute to such shareholders, at no charge, non-transferable subscription
rights to purchase up to an aggregate of $5.0 million of shares of Common Stock at a price per
share equal to the Per Share Purchase Price (as defined below).

     NOW, THEREFORE, in consideration of the premises, and of the representations, warranties,
covenants and agreements set forth herein, the parties agree as follows:

ARTICLE I

Purchase; Closings

     1.1 Purchase. On the terms and subject to the conditions set forth herein, the Investor
will (i) purchase from the Company, and the Company will sell to the Investor, a number of shares
of Common Stock as set forth herein and (ii) receive from the Company, and the Company will deliver
to the Investor, the Warrants.

 

			
	1	 	[Conformed to the Securities actually sold to each Investor.]

 

 

     1.2 Closing.

          (a) Purchased Shares; Warrants. Unless this Agreement has been terminated pursuant to
Article IV and subject to the satisfaction of the conditions to the closing set forth in Section
1.2(b), the closing shall take place, simultaneously with the closing of the Other Private
Placements, on the date that is six (6) business days following the day on which the conditions set
forth in Section 1.2(b) (other than those that by their nature are to be satisfied at Closing, but
subject to the fulfillment or waiver of those conditions), at the offices of the Company located at
414 Church Street, Sandpoint, Idaho 83864, or such other location as agreed by the parties in
writing (the “Closing”). The date of the Closing is referred to as the “Closing Date.” Subject to
the satisfaction of the conditions described in Section 1.2(b), at the Closing, the Company will
deliver to the Investor (i) one or more certificates representing such number of whole shares of
Common Stock (the “Purchased Shares” and, together with the Warrants and any Common Shares for
which the Warrants may be exercised and any Common Shares issuable pursuant to Section 5.19, the
“Securities”) determined by dividing $___________ (the “Purchase Price”) by $1.00 per share (the
“Per Share Purchase Price”) and (ii) one or more Warrant Certificates exercisable to purchase
1,000,000 shares of Common Stock at $1.25 per share, against payment by the Investor of the
Purchase Price by wire transfer of immediately available United States funds to a bank account
designated by the Company.2

          (b) Closing Conditions.

          (1) The obligation of the Investor to consummate the Closing is subject to the
fulfillment (or written waiver by the Investor) prior to or contemporaneously with the
Closing of each of the following conditions:

          (i) (A) no provision of any applicable law or regulation and no judgment,
injunction, order or decree shall prohibit the Closing or shall prohibit or restrict
Investor or its Affiliates from owning or voting any securities of the Company in
accordance with the terms thereof, and (B) no lawsuit shall have been commenced by
any court, administrative agency or commission or other governmental authority or
instrumentality, whether federal, state, local or foreign, or any applicable
industry self-regulatory organization (each, a “Governmental Entity”) seeking to
effect any of the foregoing;

          (ii) the representations and warranties of the Company set forth in this
Agreement shall be true and correct in all respects as of the date hereof and as of
the Closing (except (A) to the extent such representations and warranties are made
as of a specified date, in which case, subject to clause (B) below, such
representations and warranties shall be true and correct in all respects as of such
date, and (B) with respect to each of the representations and warranties of the
Company in this Agreement (other than Section 2.2(b) (but only with respect to the
first sentence thereof), Section 2.2(c) (which shall be true and correct in all
respects except to a de minimis extent that is addressed to the Investor’s

 

			
	2	 	[Conformed to the Securities actually sold to
each Investor.]

-2-

 

reasonable satisfaction at the Closing pursuant to Section 5.20), Section
2.2(d)(i), Section 2.2(f) (which shall be true and correct in all material
respects), Section 2.2(j)(i), Section 2.2(l), Section 2.2(u), Section 2.2(w),
Section 2.2(y)(3), Section 2.2(dd) (which shall be true and correct in all material
respects, but shall not be deemed not to be true and correct in all material
respects solely as a result of fees payable by the Company pursuant to the first
sentence of Section 3.2(b)) Section 2.2(hh), Section 2.2(jj) and Section 2.2(mm)),
where the failure to be true and correct (without regard to any materiality or
Material Adverse Effect qualifications contained therein), individually or in the
aggregate, would not be reasonably likely to have a Material Adverse Effect with
respect to the Company);

          (iii) since the date hereof, there shall not have occurred any circumstance,
event, change, development or effect that, individually or in the aggregate, has had
or could reasonably be expected to have a Material Adverse Effect on the Company or
its wholly-owned banking subsidiary, Panhandle State Bank (the “Bank”);

          (iv) the Company shall have performed in all material respects all obligations
required to be performed by it at or prior to or contemporaneously with the Closing
under this Agreement (except that with respect to obligations that are qualified by
materiality, the Company shall have performed such obligations, as so qualified, in
all respects);

          (v) the Company shall receive gross proceeds from the sale of Purchased Shares
and Warrants of an aggregate amount not less than $70.0 million, contemporaneously
with the Closing, from the Investor and the Other Investors as contemplated by this
Agreement and from the Other Private Placements, respectively, and the price per
share of Common Stock sold in the Other Private Placements shall be no less than the
Per Share Purchase Price;

          (vi) Graham & Dunn PC, counsel for the Company, shall have delivered to the
Investor their written opinion, dated the Closing Date, as to the matters set forth
in Exhibit A hereto, and otherwise in form and substance reasonably
satisfactory to the Investor;

          (vii) the Company, the Investor and the Other Investors shall have obtained all
third-party consents and approvals necessary to consummate the transactions
contemplated by the Transaction Documents (except for such consents and approvals
the absence of which, individually or in the aggregate, would not reasonably be
expected to result in a Material Adverse Effect on the Company, the Investor or any
of such Other Investors);

          (viii) (A) the Investor shall have received (x) from the Federal Reserve a
written non-objection to the notice it filed in connection with its purchase of
Securities pursuant to the Change of Bank Control Act of 1978, as amended (the
“CBCA”) if such Investor is a Lead Investor, and, if such Investor is a Major
Investor, confirmation, satisfactory in such Investor’s reasonable good

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faith judgment, from the Federal Reserve to the effect that the purchase of the
Securities and the consummation of the Closing and the transactions contemplated by
the Transaction Documents will not result in the Investor or any of its Affiliates
(i) being deemed in control of the Company for purposes of the Bank Holding Company
Act of 1956, as amended (the “BHC Act”), or (ii) otherwise being regulated as a bank
holding company within the meaning of the BHC Act, (y) confirmation, satisfactory in
such Investor’s reasonable judgment, from the Idaho Department of Finance to the
effect that neither the Investor nor any of its Affiliates is a bank holding company
for purposes of the Idaho Banking Act as a result of the purchase of the Securities
and the consummation of the Closing and the other transactions contemplated by the
Transaction Documents and (z) confirmation, satisfactory in such Investor’s
reasonable judgment, from the Idaho Department of Finance that such Department has
approved the issuance of the Securities under Section 26-506 of the Idaho Banking
Act, and (B) the Company shall have received (y) approval of the Federal Reserve of
the appointment to the Board of Directors of the Company and the Bank (as defined
below) of the Board Representative (if applicable), and (z) approval of the Federal
Deposit Insurance Corporation of the appointment of the Board Representative (if
applicable, and, if not applicable, as defined in the Other Securities Purchase
Agreements) to the Board of Directors of the Bank; and otherwise the Company, the
Investor and the Other Investors shall have obtained all applicable governmental or
regulatory approvals or authorizations of or, to the extent required by applicable
law or regulation, consents, approvals or exemptions from bank regulatory
authorities, required in connection with the transactions contemplated by the
Transaction Documents;

          (ix) Following the date hereof, the Company shall not have agreed to enter into
a transaction that resulted in, or would result in if consummated, a Change in
Control of the Company;

          (x) the Company shall have delivered to the Investor a duly executed Officer’s
Certificate in the form set forth in Exhibit B hereto;

          (xi) the Company shall have delivered to the Investor a certificate of the
Secretary of the Company, in the form attached hereto as Exhibit D, dated as
of the Closing Date, (i) certifying the resolutions adopted by the Board of
Directors approving the transactions contemplated by this Agreement and the other
Transaction Documents and the issuance of the Purchased Shares, (ii) certifying the
current versions of the Articles of Incorporation and bylaws of the Company and
(iii) certifying as to the signatures and authority of persons signing the
Transaction Documents and related documents on behalf of the Company;

          (xii) the Company shall have delivered to the Investor a Certificate of Good
Standing for the Company from the Idaho Secretary of State as of a recent date;

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          (xiii) the Company shall have implemented, effective subject to the Closing
occurring, the governance matters contemplated in Section 5.10 (to the extent
applicable) with respect to the appointment of the Board Representative (as defined
below);

          (xiv) the Common Stock (and any shares of Common Stock for which the Warrants
may be exercised) shall continue to be eligible for quotation on the OTC Bulletin
Board (the “OTCBB”);

          (xv) the Investor shall have received such other documents and certificates as
it may reasonably request or as may be required pursuant to this Agreement;

          (xvi) Since the date hereof, there shall not be any action taken, or any law
enacted, entered, enforced or deemed applicable, by any Governmental Entity, whether
in connection with the consents of any Governmental Entity specified in Section
1.2(b)(1)(viii) or otherwise, which imposes any new restriction or condition on the
Company or the Company Subsidiaries or the Investor or any of its Affiliates (other
than such restrictions as are described in the passivity or anti-association
commitments, if any, required to be entered into by the Investor and / or any such
Affiliate in connection with the transactions contemplated hereby, provided that
such commitments are not more restrictive in any material respect than those
contained in the form attached hereto as Exhibit F) which is materially and
unreasonably burdensome on the Company’s business following the Closing or on the
Investor (or any of its Affiliates) related to its investment in the Securities, as
applicable, or would reduce the economic benefits of the transactions contemplated
by this Agreement to the Investor to such a degree that the Investor would not have
entered into this Agreement had such condition or restriction been known to it at
the date hereof (any such condition or restriction, a “Burdensome Condition”) and,
for the avoidance of doubt, any requirement to disclose the identities of limited
partners, shareholders or members of any Investor who is not a Lead Investor or its
respective Affiliates or its investment advisors, other than Affiliates of such
Investor, shall be deemed a Burdensome Condition unless otherwise determined by such
Investor in its sole discretion; and

          (xvii) on or prior to the Closing Date, the Bank shall have entered into an
agreement with the Company, dated as of the Closing Date and in form and substance
reasonably satisfactory to the Investor (the “Intercompany Agreement”), pursuant to
which (i) simultaneously with the Closing, the Company will segregate a portion of
the gross proceeds from the sale of the Purchased Shares and the Warrants to the
Investor and the transactions contemplated by the Other Private Placements into a
deposit account with the Bank (the “Segregated Funds”), (ii) the Company will pledge
the Segregated Funds pursuant to the terms of the Intercompany Agreement, and (iii)
the Company will agree to make certain payments to the Bank in connection with
interest payments paid to the Bank by Sandpoint Center, LLC and Sandpoint Center II,
LLC pursuant to that certain loan

-5-

 

agreement dated as of August 28, 2009. The Segregated Funds shall be an amount
that equals or exceeds the larger of (a) the difference between the Covered
Transaction Amount (as defined in the Intercompany Agreement) and 10 percent of the
“capital and surplus” of the Bank measured as of the Closing Date (based on the then
most recent call report filed by the Bank), provided that such “capital and surplus”
shall include amounts transferred from the Company to the Bank as capital from the
proceeds of the sale of the Purchased Shares and the Warrants; and (b) $6,927,000.

               (2) The obligation of the Company to consummate the Closing is subject to the
fulfillment prior to the Closing of each of the following conditions:

          (i) the representations and warranties of the Investor set forth in this
Agreement shall be true and correct in all material respects (except to the extent
such representations and warranties are qualified by materiality, in which case they
shall be true and correct in all respects) as of the date hereof and as of the
Closing (except to the extent such representations and warranties are made as of a
specified date, in which case such representations and warranties shall be true and
correct, in all material respects as applicable, as of such date);

          (ii) no provision of any applicable law or regulation and no judgment,
injunction, order or decree shall prohibit the Closing and no lawsuit shall have
been commenced by any Governmental Entity seeking to effect the foregoing;

          (iii) the Investor and the Other Investors shall have obtained all third party
consents and approvals necessary to consummate the transactions contemplated by the
Transaction Documents (except for such consents and approvals the absence of which
would not reasonably be expected to result in a Material Adverse Effect on the
Investor or any of such Other Investors);

          (iv) [RESERVED];

          (v) the Investor shall have performed in all material respects all obligations
required to be performed by it at or prior to or contemporaneously with the Closing
under this Agreement (except that with respect to obligations that are qualified by
materiality, the Investor shall have performed such obligations, as so qualified, in
all respects); and

          (vi) the Investor shall have delivered to the Company a duly executed Officer’s
Certificate in the form set forth in Exhibit C hereto.

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ARTICLE II

Representations and Warranties

     2.1 Disclosure.

          (a) On or prior to the date of this Agreement, the Company delivered to the Investor a
schedule (“Disclosure Schedule”) setting forth, among other things, items the disclosure of which
is necessary or appropriate either in response to an express disclosure requirement contained in a
provision hereof or as an exception to one or more representations or warranties contained in
Section 2.2 or the covenants contained in Section 3.9; provided, however, that notwithstanding
anything in this Agreement to the contrary, the mere inclusion of an item in the Disclosure
Schedule shall not be deemed an admission that such item represents a material exception or
material fact, event, or circumstance or that such item has had or would reasonably be expected to
have a Material Adverse Effect on the Company.

          (b) “Material Adverse Effect” means, with respect to the Investor, only clause (2) that
follows, or, with respect to the Company, both clauses (1) and (2) that follow, any circumstance,
event, change, development or effect that, individually or in the aggregate (1) is or would
reasonably be expected to be material and adverse to the financial position, results of operations,
business or condition (financial or otherwise) of the Company and its subsidiaries taken as a
whole, or (2) would materially impair the ability of either the Investor or the Company,
respectively, to perform its respective obligations under this Agreement or otherwise materially
threaten or materially impede the consummation of the transactions contemplated by this Agreement;
provided, however, that in determining whether a Material Adverse Effect has occurred, there shall
be excluded any effect to the extent resulting from the following: (A) changes, after the date
hereof, in U.S. generally accepted accounting principles (“GAAP”) or regulatory accounting
principles, (B) changes, after the date hereof, in applicable laws, rules and regulations or
interpretations thereof by any Governmental Entity, (C) actions or omissions of the Company
expressly required by the terms of this Agreement or taken with the prior written consent of the
Investor, (D) general changes, after the date hereof, in the economy or the industries in which the
Company and the Company Subsidiaries (as defined in Section 2.2(b) below) operate, (E) changes,
after the date hereof, in the market price or trading volume of the Common Stock (but not excluding
the underlying causes of such changes, except to the extent related to the other exclusions in this
definition) and (F) changes, after the date hereof, in global or national political conditions,
including the outbreak or escalation of war or acts of terrorism; except, with respect to clauses
(A), (B), (D) and (F), to the extent that the effects of such changes have a disproportionate
effect on the Company and the Company Subsidiaries, taken as a whole, relative to other banks,
savings associations and their holding companies generally.

          (c) “Previously Disclosed” means information set forth on its Disclosure Schedule
corresponding to the provision of this Agreement to which such information relates; provided that
information which is reasonably apparent on its face that it relates to another provision of this
Agreement, shall also be deemed to be Previously Disclosed with respect to such other provision and
includes information publicly disclosed by the Company in the Company Reports (as defined in
Section 2.2(g) below) filed by it with or furnished to the SEC and publicly available prior to the
date of this Agreement (excluding any risk factor disclosures contained in such documents under the
heading “Risk Factors” and any disclosures of risks

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included in any “forward looking statements” disclaimer or other statements that are similarly
non-specific and are predictive or forward-looking in nature).

     2.2 Representations and Warranties of the Company. Except as Previously Disclosed, the
Company represents and warrants as of the date of this Agreement and as of the Closing Date (except
to the extent made only as of a specified date, in which case as of such date) to the Investor
that:

          (a) Organization and Authority. The Company is a corporation duly organized and validly
existing under the laws of the State of Idaho, is duly qualified to do business and is in good
standing in all jurisdictions where its ownership or leasing of property or the conduct of its
business requires it to be so qualified and where failure to be so qualified would reasonably be
expected to have a Material Adverse Effect on the Company. The Company has corporate power and
authority to own its properties and assets and to carry on its business as it is now being
conducted. The Company is duly registered as a bank holding company under the BHC Act. The
Company has filed with the SEC true, correct and complete copies of the Company’s Amended and
Restated Articles of Incorporation, as amended through the date of this Agreement (the “Articles of
Incorporation”) and bylaws as amended through the date of this Agreement. The Company is not in
violation of any of the provisions of the Articles of Incorporation or its bylaws.

          (b) Company’s Subsidiaries. The Company has Previously Disclosed a true, complete and
correct list of all of its subsidiaries as of the date of this Agreement (individually, a “Company
Subsidiary” and, collectively, the “Company Subsidiaries”), all shares of the outstanding capital
stock of each of which are owned directly or indirectly by the Company, except for the preferred
securities of Intermountain Statutory Trust I, a Connecticut statutory trust, and Intermountain
Statutory Trust II, a Delaware statutory trust. No equity security of any Company Subsidiary is or
may be required to be issued by reason of any option, warrant, scrip, preemptive right, right to
subscribe to, gross-up right, call or commitment of any character whatsoever relating to, or
security or right convertible into, shares of any capital stock of such Company Subsidiary, and
there are no contracts, commitments, understandings or arrangements by which any Company Subsidiary
is bound to issue additional shares of its capital stock, or any bonds, debentures, notes or other
indebtedness having the right to vote on any matters on which the shareholders of the Company
Subsidiary may vote (“Subsidiary Voting Debt”) of such Company Subsidiary, or any option, warrant
or right to purchase or acquire any additional shares of its capital stock or any Subsidiary Voting
Debt of such Company Subsidiary. All of such shares so owned by the Company are duly authorized
and validly issued, fully paid and nonassessable and are owned by it free and clear of any lien,
adverse right or claim, charge, option, pledge, covenant, title defect, security interest or other
encumbrances of any kind (“Liens”) with respect thereto. Each Company Subsidiary is an entity duly
organized, validly existing, duly qualified to do business and in good standing under the laws of
its jurisdiction of organization, and has corporate or other appropriate organizational power and
authority to own or lease its properties and assets and to carry on its business as it is now being
conducted, except as would not reasonably be expected to have a Material Adverse Effect on the
Company. Except in respect of the Company Subsidiaries, the Company does not own beneficially,
directly or indirectly, more than 5% of any class of equity securities or similar interests of any
corporation, bank, business trust, association or similar organization, and is not, directly or
indirectly, a

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partner in any partnership or party to any joint venture. The Company’s principal depository
institution subsidiary, the Bank, is duly organized and validly existing as an Idaho
state-chartered commercial bank and its deposit accounts are insured by the Federal Deposit
Insurance Corporation (the “FDIC”) to the fullest extent permitted by the Federal Deposit Insurance
Act and the rules and regulations of the FDIC thereunder, and all premiums and assessments required
to be paid in connection therewith have been paid when due and no proceedings for the termination
of such insurance are pending or threatened. The Company has furnished or made available to the
Investor, prior to the date hereof, true, correct and complete copies of the charter and bylaws of
the Bank as amended through the date of this Agreement. No Company Subsidiary is in violation of
any of the provisions of its articles of incorporation or bylaws.

          (c) Capitalization.

          (1) The authorized capital stock of the Company consists of 300,000,000 shares of
Common Stock and 1,000,000 shares of preferred stock, no par value (the “Company Preferred
Stock”). As of the date hereof, there are 27,000 shares of Company Preferred Stock
outstanding, all of which were issued to the U.S. Treasury as part of the Capital Purchase
Program (the “CPP”) under the Troubled Asset Relief Program (“TARP”), and 8,409,730 shares
of Common Stock outstanding. From the date hereof through the Closing Date, except in
connection with the Transaction Documents, the Other Private Placements and the transactions
contemplated hereby and thereby, the Company shall not have (i) issued or authorized the
issuance of any shares of Common Stock or Company Preferred Stock, or any securities
convertible into or exchangeable or exercisable for shares of Common Stock or Company
Preferred Stock (other than shares issued upon the exercise of Company Stock Options
outstanding on the date hereof), (ii) reserved for issuance any shares of Common Stock or
Company Preferred Stock or (iii) repurchased or redeemed, or authorized the repurchase or
redemption of, any shares of Common Stock or Company Preferred Stock. As of the date
hereof, there are (i) outstanding stock options (each, a “Company Stock Option”) to purchase
an aggregate of 196,056 shares of the Common Stock issued under the Company’s Second Amended
and Restated 1999 Employee Stock Option and Restricted Stock Plan or the Company’s Amended
and Restated Director Stock Plan, in each case as amended or supplemented (collectively, the
“Company Stock Plans”), (ii) an aggregate of 18,789 shares of restricted stock (“Company
Restricted Stock”) outstanding under the Company Stock Plans and (iii) no shares of the
Common Stock reserved for issuance under the Company Stock Plans, the Company Stock Plans
having expired. Other than in respect of awards outstanding under or pursuant to the
Company Stock Plans, and 653,226 shares of Common Stock reserved for potential issuance
under the warrant dated December 19, 2008 issued to the U.S. Treasury under the CPP (the
“Treasury Warrant”), no shares of Common Stock or Company Preferred Stock are reserved for
issuance. All of the issued and outstanding shares of Common Stock have been duly
authorized and validly issued and are fully paid, nonassessable and free of preemptive
rights, with no personal liability attaching to the ownership thereof. Each Company Stock
Option and share of Company Restricted Stock, as applicable, (i) was granted in compliance
with all applicable laws and all of the terms and conditions of the applicable Company Stock
Plan pursuant to which it was issued, (ii) has an exercise price per share of Common Stock
equal to or greater than the fair market value of a share of Common Stock on the date of
such grant and (iii) has a

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grant date identical to the date on which the Company’s board of directors (the “Board
of Directors”) or compensation committee of the Board of Directors actually awarded such
Company Stock Option. Neither the Company nor any of its officers, directors, or employees
is a party to any right of first refusal, right of first offer, proxy, voting agreement,
voting trust, registration rights agreement, or shareholders agreement with respect to the
sale or voting of any securities of the Company. No bond, debenture, note or other
indebtedness having the right to vote on any matters on which the shareholders of the
Company may vote (“Voting Debt”) is issued and outstanding. Except as set forth elsewhere
in this Section 2.2(c), the Company does not have and is not bound by any outstanding
subscriptions, options, warrants, calls, repurchase rights, commitments, or agreements of
any character calling for the purchase or issuance of, or securities or rights convertible
into or exchangeable or exercisable for, any shares of Common Stock or Company Preferred
Stock or any other equity securities of the Company or Voting Debt or any securities
representing the right to purchase or otherwise receive any shares of capital stock of the
Company (including any rights plan or agreement). The Company has
Previously Disclosed all shares of Company capital stock that have been purchased, redeemed or otherwise acquired,
directly or indirectly, by the Company or any Company Subsidiary since December 31, 2010 and
all dividends or other distributions that have been declared, set aside, made or paid to the
shareholders of the Company since that date. With the exception of the Treasury Warrant,
pursuant to which, as a result of the transactions contemplated by this Agreement and the
other Transaction Documents, the number of underlying shares of Common Stock is expected to
increase to approximately 1,000,000, there are no securities or instruments containing
anti-dilution or similar provisions that will be triggered by the issuance of the Securities
pursuant to the transactions contemplated by this Agreement or the other Transaction
Documents.

          (2) Section 2.2(c)(2) of the Company’s Disclosure Schedule sets forth the following
information with respect to each Company Stock Option and share of Company Restricted Stock,
which is true and correct as of the date of this Agreement: (i) the name of each holder of
Company Stock Options and Company Restricted Stock and (ii) the number of shares of Common
Stock subject to such Company Stock Option and the number of shares of Company Restricted
Stock, and, as applicable, the grant date, exercise price, number of shares vested or not
otherwise subject to restrictions, vesting schedule and the Company Stock Plan under which
such Company Stock Options or shares of Company Restricted Stock were granted.

          (d) Authorization.

          (1) The Company has the corporate power and authority to enter into or issue this
Agreement, the Warrants and the other Transaction Documents and to carry out its obligations
hereunder and thereunder. The execution, delivery and performance of this Agreement and the
other Transaction Documents by the Company and the consummation of the transactions
contemplated hereby and thereby, including the issuance of Common Stock in accordance with
the terms of this Agreement and the other Transaction Documents, the issuance of the
Warrants in accordance with this Agreement and the issuance of the Common Stock in
accordance with the terms of the Warrants, have been duly authorized by the affirmative vote
of at least a majority of the Board of

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Directors. This Agreement and the other Transaction Documents have been duly and
validly executed and delivered by the Company and, assuming due authorization, execution and
delivery of this Agreement by the Investor, are valid and binding obligations of the Company
enforceable against the Company in accordance with their respective terms, except as such
enforceability may be limited by bankruptcy, insolvency, moratorium, reorganizations,
fraudulent transfer or similar laws relating to or affecting creditors generally or by
general equitable principles (whether applied in equity or at law). No other corporate
proceedings or shareholder actions are necessary for the execution and delivery by the
Company of this Agreement and the other Transaction Documents, the performance by the
Company of its obligations hereunder and thereunder or the consummation by the Company of
the transactions contemplated hereby and thereby. The Board of Directors has resolved that
the transactions contemplated hereby and by the Other Private Placements are in the best
interests of the shareholders of the Company. When issued and sold against receipt of the
consideration therefor as provided in this Agreement and the other Transaction Documents,
the shares of Common Stock to be issued pursuant to this Agreement, the Warrants, and the
Other Securities Purchase Agreements will be validly issued, fully paid and nonassessable,
and such issuance will not subject the holders thereof to personal liability and will not be
subject to preemptive rights of any other shareholder of the Company.

          (2) Neither the execution, delivery and performance by the Company of this Agreement or
the other Transaction Documents, nor the consummation of the transactions contemplated
hereby and thereby, nor compliance by the Company with any of the provisions of any of the
foregoing, will (i) violate, conflict with, or result in a breach of any provision of, or
constitute a default (or an event which, with notice or lapse of time or both, would
constitute a default) under, or result in the termination of, or accelerate the performance
required by, or result in a right of termination or acceleration of, or result in the
creation of, any Lien, upon any of the properties or assets of the Company or any Company
Subsidiary under any of the terms, conditions or provisions of (A) its Articles of
Incorporation or bylaws (or similar governing documents) or (B) any note, bond, mortgage,
indenture, deed of trust, license, lease, agreement or other instrument or obligation to
which the Company or any Company Subsidiary is a party or by which it may be bound, or to
which the Company or any Company Subsidiary or any of the properties or assets of the
Company or any Company Subsidiary may be subject, or (ii) subject to compliance with the
statutes and regulations referred to in the next paragraph, violate any ordinance, permit,
concession, grant, franchise, law, statute, rule or regulation or any judgment, ruling,
order, writ, injunction or decree applicable to the Company or any Company Subsidiary or any
of their respective properties, except in the case of clause (i)(B) for such violations,
conflicts and breaches as would not, individually or in the aggregate, reasonably likely be
expected to result in a Material Adverse Effect on the Company.

          (3) Other than the securities or blue sky laws of the various states and except as
otherwise provided in this Agreement, no material notice to, registration, declaration or
filing with, exemption or review by, or authorization, order, consent or approval of, any
Governmental Entity, or expiration or termination of any statutory

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waiting period, is necessary for the consummation by the Company of the transactions
contemplated by this Agreement or the other Transaction Documents.

          (e) Knowledge as to Conditions. As of the date of this Agreement, the Company knows of no
reason why any regulatory approvals and, to the extent necessary, any other approvals,
authorizations, filings, registrations, and notices required or otherwise a condition to the
consummation of the transactions contemplated by the Transaction Documents will not be obtained.

          (f) Financial Statements. The consolidated balance sheets of the Company as of December
31, 2010 and 2009 and related consolidated statements of income, shareholders’ equity and cash
flows for the three years ended December 31, 2010, together with the notes thereto, audited by BDO
Seidman, LLP and included in the Company’s Annual Report on Form 10-K for the year ended December
31, 2010, as filed with the SEC (the “Company 10-K”) (collectively, the “Company Financial
Statements”), (1) have been prepared from, and are in accordance with, the books and records of the
Company and the Company Subsidiaries, (2) complied, as of their respective dates of filing with the
SEC, in all material respects with applicable accounting requirements and with the published rules
and regulations of the SEC with respect thereto, (3) have been prepared in accordance with GAAP
applied on a consistent basis and (4) present fairly in all material respects the consolidated
financial position of the Company and the Company Subsidiaries at the dates set forth therein and
the consolidated results of operations, changes in shareholders’ equity and cash flows of the
Company and the Company Subsidiaries for the periods stated therein (subject to the absence of
notes and normal year-end audit adjustments in the case of interim unaudited statements).

          (g) Reports.

          (1) Since December 31, 2008, the Company and each Company Subsidiary have filed all
material reports, registrations, documents, filings, statements and submissions together
with any required amendments thereto, that it was required to file with any Governmental
Entity (the foregoing, collectively, the “Company Reports”), and have paid all material fees
and assessments due and payable in connection therewith. As of their respective filing
dates, the Company Reports complied in all material respects with all statutes and
applicable rules and regulations of the applicable Governmental Entities, as the case may
be. To the knowledge of the Company, as of the date of this Agreement, there are no
outstanding comments from the SEC or any other Governmental Entity with respect to any
Company Report. The Company Reports, including the documents incorporated by reference in
each of them, each contained all of the information required to be included in it and, when
it was filed and as of the date of each such Company Report filed with or furnished to the
SEC, such Company Report did not, as of its date or if amended prior to the date of this
Agreement, as of the date of such amendment, contain an untrue statement of a material fact
or omit to state a material fact necessary in order to make the statements made in it, in
light of the circumstances under which they were made, not misleading and complied in all
material respects with the applicable requirements of the Securities Act of 1933, as
amended, or any successor statute (the “Securities Act”), and the Securities Exchange Act of
1934, as amended, or any successor statute (the “Exchange Act”). No executive officer of
the Company has

-12-

 

failed in any respect to make the certifications required of him or her under Section
302 or 906 of the Sarbanes-Oxley Act of 2002. To the knowledge of the Company, there are no
facts or circumstances that would prevent the Company’s principal executive officer and
principal financial officer from giving the certifications and attestations required
pursuant to Rules 13a-14 and 15d-14 under the Exchange Act, without qualification, when next
due.

          (2) The records, systems, controls, data and information of the Company and the Company
Subsidiaries are recorded, stored, maintained and operated under means (including any
electronic, mechanical or photographic process, whether computerized or not) that are under
the exclusive ownership and direct control of the Company or the Company Subsidiaries or
their accountants (including all means of access thereto and therefrom), except for any
nonexclusive ownership and nondirect control that would not, individually or in the
aggregate, reasonably be expected to have a material adverse effect on the system of
internal accounting controls described below in this Section 2.2(g). The Company (A) has
implemented and maintains disclosure controls and procedures (as defined in Rule 13a-15(e)
of the Exchange Act) to ensure that material information relating to the Company, including
its consolidated subsidiaries, is made known to the principal executive officer and the
principal financial officer of the Company by others within those entities, (B) has
implemented and maintains internal control over financial reporting (as defined in Rule
13a-15(f) of the Exchange Act) and (C) has disclosed, based on its most recent evaluation
prior to the date of this Agreement, to the Company’s outside auditors and the audit
committee of the Board of Directors (x) any significant deficiencies and material weaknesses
in the design or operation of internal control over financial reporting that are reasonably
likely to adversely affect the Company’s ability to record, process, summarize, and report
financial information, and (y) any fraud, whether or not material, that involves management
or other employees who have a significant role in the Company’s internal control over
financial reporting. The Company has no knowledge of any reason that its outside auditors
and its principal executive officer and principal financial officer will not be able to give
the certifications and attestations required pursuant to the rules and regulations adopted
pursuant to Section 404 of the Sarbanes-Oxley Act of 2002, without qualification, when next
due. Since December 31, 2008, (i) neither the Company nor any Company Subsidiary nor, to
the knowledge of the Company, any director, officer, employee, auditor, accountant or
representative of the Company or any Company Subsidiary has received or otherwise had or
obtained knowledge of any material complaint, allegation, assertion or claim, whether
written or oral, regarding the accounting or auditing practices, procedures, methodologies
or methods of the Company or any Company Subsidiary or their respective internal accounting
controls, including any material complaint, allegation, assertion or claim that the Company
or any Company Subsidiary has engaged in questionable accounting or auditing practices, and
(ii) no attorney representing the Company or any Company Subsidiary, whether or not employed
by the Company or any Company Subsidiary, has reported evidence of a violation of securities
laws, breach of fiduciary duty or similar violation by the Company or any of its officers,
directors, employees or agents to the Board of Directors or any committee thereof or to any
director or officer of the Company.

-13-

 

          (h) Properties and Leases. Except for any Permitted Liens, the Company and each Company
Subsidiary have good title free and clear of any Liens to all the real and personal property
reflected in the Company’s consolidated balance sheet as of December 31, 2010 included in the
Company 10-K for the period then ended, and all real and personal property acquired since such
date, except such real and personal property as has been disposed of in the ordinary course of
business. For purposes of this Agreement, “Permitted Liens” means (i) Liens for taxes and other
governmental charges and assessments arising in the ordinary course which are not yet due and
payable, (ii) Liens of landlords and Liens of carriers, warehousemen, mechanics and materialmen and
other like Liens arising in the ordinary course of business for sums not yet due and payable, and
(iii) other Liens or imperfections on property which are not material in amount or do not
materially detract from the value of or materially impair the existing use of the property affected
by such Lien or imperfection. Except as would not reasonably be expected to have a Material
Adverse Effect on the Company, all leases of real property and all other leases pursuant to which
the Company or such Company Subsidiary, as lessee, leases real or personal property are valid and
effective in accordance with their respective terms and there is not, under any such lease, any
existing default by the Company or such Company Subsidiary or any event which, with notice or lapse
of time or both, would constitute such a default.

          (i) Taxes.

          (1) Except as would not, individually or in the aggregate, reasonably be expected to
have a Material Adverse Effect on the Company, each of the Company and the Company
Subsidiaries has timely filed (including pursuant to applicable extensions granted without
penalty) all federal, state, county, local and foreign Tax Returns, including information
Tax Returns, required to be filed by it, and all such filed Tax Returns are true, complete
and correct in all respects, and paid all Taxes owed by it and no Taxes owed by it or
assessments received by it are delinquent. With respect to Taxes not yet due, the Company
has made adequate provision in the financial statements of the Company (in accordance with
GAAP). The federal income Tax Returns of the Company and the Company Subsidiaries for the
fiscal year ended December 31, 2006, and for all fiscal years prior thereto, are for the
purposes of routine audit by the Internal Revenue Service (the “IRS”) closed because of the
statute of limitations, and no claims by the IRS for additional Taxes for such fiscal years
are pending. Neither the Company nor any Company Subsidiary has waived any statute of
limitations with respect to Taxes or agreed to any extension of time with respect to a Tax
assessment or deficiency, in each case that is still in effect, or has pending a request for
any such extension or waiver. Neither the Company nor any Company Subsidiary is a party to
any pending action or proceeding, nor to the Company’s knowledge, is any such action or
proceeding threatened by any Governmental Entity, for the assessment or collection of Taxes,
interest, penalties, assessments or deficiencies that could reasonably be expected to have a
Material Adverse Effect on the Company and no issue has been raised by any federal, state,
local or foreign taxing authority in connection with an audit or examination of the Tax
Returns, business or properties of the Company or any Company Subsidiary which has not been
settled, resolved and fully satisfied, or adequately reserved for in accordance with GAAP
(other than those issues that would not reasonably be expected to have a Material Adverse
Effect on the Company). Except as would not reasonably be expected to have a Material
Adverse Effect on the Company, each of the Company and the

-14-

 

Company Subsidiaries has withheld and paid all Taxes that it is required to withhold
from amounts owing to employees, creditors or other third parties. Neither the Company nor
any Company Subsidiary is a party to, is bound by or has any obligation under, any material
Tax sharing or material Tax indemnity agreement or similar contract or arrangement other
than any contract or agreement between or among the Company and any Company Subsidiary.
Neither the Company nor any Company Subsidiary has participated in any “reportable
transaction” within the meaning of Treasury Regulations Section 1.6011-4, or any other
transaction requiring disclosure under analogous provisions of state, local or foreign law.
Neither the Company nor any Company Subsidiary has liability for the Taxes of any person
other than the Company or any Company Subsidiary under Treasury Regulations Section 1.1502-6
(or any similar provision of state, local or foreign law). The Company has not been a
“distributing corporation” or a “controlled corporation” in any distribution in which the
parties to such distribution treated the distribution as one to which Section 355 of the
Code is applicable. The Company has not been a United States real property holding
corporation within the meaning of Section 897 of the Code during the applicable period
specified in Section 897(c)(1)(A)(ii) of the Code. For the purpose of this Agreement, the
term “Tax” (including, with correlative meaning, the term “Taxes”) shall mean any and all
domestic or foreign, federal, state, local or other taxes of any kind (together with any and
all interest, penalties, additions to tax and additional amounts imposed with respect
thereto) imposed by any Governmental Entity, including taxes on or with respect to income,
franchises, windfall or other profits, gross receipts, property, sales, use, capital stock,
payroll, employment, unemployment, social security, workers’ compensation or net worth, and
taxes in the nature of excise, withholding, ad valorem or value added or similar taxes, and
the term “Tax Return” means any return, report, information return or other document
(including any related or supporting information, and attachments and exhibits) required to
be filed with respect to Taxes, including all information returns relating to Taxes of third
parties, any claims for refunds of Taxes and any amendment or supplements to any of the
foregoing.

          (2) [RESERVED].

          (j) Absence of Certain Changes. Since December 31, 2010, (i) there have been no events,
occurrences or developments that have had or would reasonably be expected to have, either
individually or in the aggregate, a Material Adverse Effect on the Company, (ii) the Company has
not incurred any material liabilities (contingent or otherwise) other than (A) trade payables,
accrued expenses and other liabilities incurred in the ordinary course of business consistent with
past practice and (B) liabilities not required to be reflected in the Company’s financial
statements pursuant to GAAP or required to be disclosed in filings made with the SEC, (iii) the
Company has not altered materially its method of accounting or the manner in which it keeps its
accounting books and records, (iv) the Company has not declared or made any dividend or
distribution of cash or other property to its shareholders or purchased, redeemed or made any
agreements to purchase or redeem any shares of its capital stock (other than in connection with
repurchases of unvested stock issued to employees of the Company), (v) the Company has not issued
any equity securities to any officer, director or Affiliate, except Common Stock issued pursuant to
existing Company stock option or stock purchase plans or executive and director arrangements
disclosed in the Company Reports, (vi) there has not been any material change or

-15-

 

amendment to, or any waiver of any material right by the Company under, any material contract
under which the Company or any Company Subsidiary is bound or subject, and (vii) to the knowledge
of the Company, there has not been a material increase in the aggregate dollar amount of: (A) the
Bank’s nonperforming loans (including nonaccrual loans and loans 90 days or more past due and still
accruing interest) or (B) the reserves or allowances established on the Company’s or Bank’s
financial statements with respect thereto. Except for the transactions contemplated by this
Agreement, no event, liability or development has occurred or exists with respect to the Company or
any Company Subsidiary or their respective business, properties, operations or financial condition
that would be required to be disclosed by the Company under applicable securities laws at the time
this representation is made that has not been publicly disclosed at least one trading day prior to
the date that this representation is made.

          (k) Commitments and Contracts. The Company has Previously Disclosed or made available to
the Investor or its representatives, prior to the date hereof, true, correct, and complete copies
of, and listed on Section 2.2(k) of the Disclosure Schedule, each of the following to which the
Company or any Company Subsidiary is a party or subject (whether written or oral, express or
implied) (each, a “Company Significant Agreement”):

          (1) any contract containing covenants that limit in any material respect the ability of
the Company or any Company Subsidiary to compete in any line of business or with any person
or which involve any material restriction of the geographical area in which, or method by
which or with whom, the Company or any Company Subsidiary may carry on its business (other
than as may be required by law or applicable regulatory authorities), and any contract that
could require the disposition of any material assets or line of business of the Company or
any Company Subsidiary;

          (2) any joint venture, partnership, strategic alliance, or other similar contract
(including any franchising agreement, but in any event excluding introducing broker
agreements), and any contract relating to the acquisition or disposition of any material
business or material assets (whether by merger, sale of stock or assets, or otherwise),
which acquisition or disposition is not yet complete or where such contract contains
continuing material obligations or contains continuing indemnity obligations of the Company
or any of the Company Subsidiaries;

          (3) any real property lease and any other lease with annual rental payments aggregating
$50,000 or more; 

          (4) other than with respect to loans, any contract providing for, or reasonably likely
to result in, the receipt or expenditure of more than $50,000 on an annual basis, including
the payment or receipt of royalties or other amounts calculated based upon revenues or
income;

          (5) any contract or arrangement under which the Company or any of the Company
Subsidiaries is licensed or otherwise permitted by a third party to use any Intellectual
Property that is material to its business (except for any “shrinkwrap” or “click through”
license agreements or other agreements for software that is generally available to the
public and has not been customized for the Company or the Company Subsidiaries)

-16-

 

or under which a third party is licensed or otherwise permitted to use any Intellectual
Property owned by the Company or any of the Company Subsidiaries;

          (6) any contract that by its terms limits the payment of dividends or other
distributions by the Company or any Company Subsidiary;

          (7) any standstill or similar agreement pursuant to which any party has agreed not to
acquire assets or securities of another person;

          (8) any contract that would reasonably be expected to prevent, materially delay, or
materially impede the Company’s ability to consummate the transactions contemplated by this
Agreement and the other Transaction Documents;

          (9) any contract providing for indemnification by the Company or any Company Subsidiary
of any person, except for immaterial contracts entered into in the ordinary course of
business consistent with past practice;

          (10) any contract that contains a put, call, or similar right pursuant to which the
Company or any Company Subsidiary could be required to purchase or sell, as applicable, any
equity interests or assets that have a fair market value or purchase price of more than
$50,000; and

          (11) any other contract or agreement which is a “material contract” within the meaning
of Item 601(b)(10) of Regulation S-K.

Each of the Company Significant Agreements is valid and binding on the Company and the Company
Subsidiaries, as applicable, and in full force and effect. The Company and each of the Company
Subsidiaries, as applicable, are in compliance with and have performed all obligations required to
be performed by them to date under each Company Significant Agreement, except where the failure to
be in compliance or perform would not reasonably be expected to result in a Material Adverse Effect
on the Company. Neither the Company nor any of the Company Subsidiaries knows of, or has received
notice of, any violation or default (or any condition which with the passage of time or the giving
of notice would cause such a violation of or a default) by any party under any Company Significant
Agreement which would reasonably be expected to result in a Material Adverse Effect on the Company.
No party to a Company Significant Agreement has provided notice to the Company or any Company
Subsidiary that it intends to terminate a Company Significant Agreement or not renew such agreement
at the expiration of the current term. Consummation of the transactions contemplated by this
Agreement or the other Transaction Documents will not violate, conflict with, or result in a breach
of any provision of, or constitute a default (or an event which, with notice or lapse of time or
both, would constitute a default) under, or result in the termination of, or accelerate the
performance required by, or result in a right of termination or acceleration of, any such agreement
of the Company or any Company Subsidiary, except for such violations, conflicts and breaches as
would not reasonably likely be expected to result, individually or in the aggregate, in a Material
Adverse Effect on the Company. To the Company’s knowledge, other than those contemplated hereby,
there are no material transactions or series of related transactions, agreements, arrangements or
understandings, nor are there any currently proposed material transactions, or series of related

-17-

 

transactions between the Company or any Company Subsidiaries, on the one hand, and the Company, any
current or former director or executive officer of the Company or any Company Subsidiaries or any
person who Beneficially Owns 5% or more of the Common Shares (or any of such person’s immediate
family members or Affiliates) (other than Company Subsidiaries), on the other hand.

          (l) Offering of Securities. Neither the Company nor any person acting on its behalf has
taken any action (including, any offering of any securities of the Company under circumstances
which would require the integration of such offering with the offering of any of the Securities to
be issued pursuant to this Agreement or any other Transaction Document under the Securities Act and
the rules and regulations of the SEC promulgated thereunder) which would subject the offering,
issuance, or sale of any of such Securities to be issued to the registration requirements of the
Securities Act. Neither the Company nor any person acting on its behalf has engaged or will engage
in any form of general solicitation or general advertising (within the meaning of Regulation D
under the Securities Act) in connection with any offer or sale of the Securities or in connection
with the Other Private Placements. Assuming the accuracy of the Investor’s representations and
warranties set forth in Section 2.3 of this Agreement and the accuracy of the representations and
warranties of the Other Investors set forth in Section 2.3 of the Other Securities Purchase
Agreements, no registration under the Securities Act is required for the offer and sale of the
Securities by the Company to the Investor under this Agreement or for the offer and sale of
securities by the Company to the Other Investors under the Other Securities Purchase Agreements.

          (m) Litigation and Other Proceedings; No Undisclosed Liabilities.

          (1) There is no pending or, to the knowledge of the Company, threatened, claim, action,
suit, arbitration, mediation, demand, hearing, investigation or proceeding against the
Company or any Company Subsidiary, nor is the Company or any Company Subsidiary subject to
any order, judgment or decree, in each case except as would not reasonably be expected to
have a Material Adverse Effect on the Company.

          (2) Neither the Company nor any of the Company Subsidiaries has any liabilities or
obligations of any nature (absolute, accrued, contingent, or otherwise) which are not
appropriately reflected or reserved against in the financial statements described in Section
2.2(f) to the extent required to be so reflected or reserved against in accordance with
GAAP, except for (i) liabilities that have arisen since December 31, 2010 in the ordinary
course of business consistent with past practice and (ii) liabilities that have not had and
would not reasonably be expected to have a Material Adverse Effect on the Company.

          (n) Compliance with Laws and Other Matters; Insurance. The Company and each Company
Subsidiary:

          (1) in the conduct of its business is in compliance in all material respects with all,
and the condition and use of its properties does not violate or infringe in any material
respect any, applicable material domestic (federal, state or local) or foreign laws,
statutes, ordinances, licenses, rules, regulations, judgments, demands, writs,

-18-

 

injunctions, orders or decrees applicable thereto or to employees conducting its
business, including the TARP, the Sarbanes-Oxley Act of 2002, the Equal Credit Opportunity
Act, the Fair Housing Act, the Community Reinvestment Act, the Home Mortgage Disclosure Act,
the Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept
and Obstruct Terrorism (USA PATRIOT) Act of 2001, all other applicable fair lending laws or
other laws relating to discrimination and the Bank Secrecy Act and the applicable privacy
and customer information requirements contained in any federal and state privacy law or
regulations;

          (2) has all material permits, licenses, franchises, authorizations, orders, and
approvals of, and has made all filings, applications, and registrations with, Governmental
Entities that are required in order to permit it to own or lease its properties and assets
and to carry on its business as presently conducted and that are material to the business of
the Company or such Company Subsidiary; and all such material permits, licenses,
certificates of authority, orders and approvals are in full force and effect, and all such
filings, applications and registrations are current, and, to the knowledge of the Company,
no suspension or cancellation of any of them is threatened;

          (3) currently is complying in all material respects with and, to the knowledge of the
Company, is not under investigation with respect to, and has not received any written
notification or written communication from any Governmental Entity, and, otherwise, to the
knowledge of the Company, has not been threatened by any Governmental Entity to be charged
with or given notice of any material violation of, all applicable federal, state, local and
foreign laws, regulations, rules, judgments, injunctions or decrees;

          (4) has, except for statutory or regulatory restrictions of general application, not
been placed under any material restriction by a Governmental Entity on its business or
properties, and except for routine examinations by applicable Governmental Entities, as of
the date of this Agreement, received no notification or communication from any Governmental
Entity that an investigation by any Governmental Entity with respect to the Company or any
of the Company Subsidiaries is pending or threatened;

          (5) has not, since January 1, 2008 nor to its knowledge has any other person on behalf
of the Company or any Company Subsidiary that qualifies as a “financial institution” under
the U.S. Anti-Money Laundering laws, knowingly acted, by itself or in conjunction with
another, in any act in connection with the concealment of any currency, securities or other
proprietary interest that is the result of a felony as defined in the U.S. Anti-Money
Laundering laws (“Unlawful Gains”), nor knowingly accepted, transported, stored, dealt in or
brokered any sale, purchase or any transaction of other nature for Unlawful Gains;

          (6) to the extent it qualifies as a “financial institution” under the U.S. Anti-Money
Laundering laws, has implemented in all material respects such anti-money laundering
mechanisms and kept and filed all material reports and other necessary

-19-

 

material documents as required by, and otherwise complied in all material respects
with, the U.S. Anti-Money Laundering laws and the rules and regulations thereunder; and

          (7) is presently insured, and during each of the past two calendar years (or during
such lesser period of time as the Company has owned such Company Subsidiary) has been
insured, for reasonable amounts with, to the knowledge of the Company, financially sound and
reputable insurance companies against such risks as companies engaged in a similar business
would, in accordance with industry practice, customarily be insured; and neither the Company
nor any Company Subsidiaries has received any notice of cancellation of any such insurance,
nor, to the Company’s knowledge, will it or any Company Subsidiary be unable to renew their
respective existing insurance coverage as and when such coverage expires or to obtain
similar coverage from similar insurers as may be necessary to continue its business at a
cost that would not have a Material Adverse Effect.

          (o) Labor. Employees of the Company and the Company Subsidiaries are not and have never
been represented by any labor union nor are any collective bargaining agreements otherwise in
effect with respect to such employees. No labor organization or group of employees of the Company
or any Company Subsidiary has made a pending demand for recognition or certification, and there are
no representation or certification proceedings or petitions seeking a representation proceeding
presently pending or, to the Company’s knowledge, threatened to be brought or filed with the
National Labor Relations Board or any other labor relations tribunal or authority. There are no
organizing activities, strikes, work stoppages, slowdowns, lockouts, material arbitrations or
material grievances, or other material labor disputes pending or, to the knowledge of the Company,
threatened against or involving the Company or any Company Subsidiary. Each of the Company and the
Company Subsidiaries are in compliance in all material respects with all applicable laws respecting
employment and employment practices, terms and conditions of employment, and wages and hours. To
the Company’s knowledge, no executive officer is, or is now expected to be, in violation of any
material term of any employment contract, confidentiality, disclosure or proprietary information
agreement or non-competition agreement or any other contract or agreement or any restrictive
covenant in favor of a third party, and, to the Company’s knowledge, the continued employment of
each such executive officer does not subject the Company or any Company Subsidiary to any liability
with respect to any of the foregoing matters.

          (p) Company Benefit Plans.

          (1) “Benefit Plan” means all material employee benefit plans, programs, agreements,
contracts, policies, practices, or other arrangements providing benefits to any current or
former employee, officer, director or consultant of the Company or any Company Subsidiary or
any beneficiary or dependent thereof that is sponsored or maintained by the Company or any
Company Subsidiary or to which the Company or any Company Subsidiary contributes or is
obligated to contribute or is party, whether or not written, including any material
“employee welfare benefit plan” within the meaning of Section 3(3) of the Employee
Retirement Income Security Act of 1974, as amended (“ERISA”), any “employee pension benefit
plan” within the meaning of Section 3(2) of ERISA (whether or not such plan is subject to
ERISA) and any material

-20-

 

bonus, incentive, deferred compensation, vacation, stock purchase, stock option or equity
award, equity-based severance, employment, change of control, consulting or fringe benefit
plan, program, agreement or policy. Each Benefit Plan is listed on Section 2.2(p)(1) of the
Company’s Disclosure Schedule. True and complete copies of all Benefit Plans listed on
Section 2.2(p)(1) of the Company’s Disclosure Schedule have been made available to the
Investor prior to the date hereof or have been filed with a Company Report.

          (2) With respect to each Benefit Plan, (A) the Company and the Company Subsidiaries
have complied, and are now in compliance in all material respects with the applicable
provisions of ERISA, and the Internal Revenue Code of 1986, as amended (the “Code”) and all
other laws and regulations applicable to such Benefit Plan and (B) each Benefit Plan has
been administered in all material respects in accordance with its terms. Except as would
not reasonably be expected to have a Material Adverse Effect on the Company, none of the
Company or the Company Subsidiaries nor any of their respective ERISA Affiliates has
incurred any withdrawal liability as a result of a complete or partial withdrawal from a
multiemployer plan, as those terms are defined in Part I of Subtitle E of Title IV of ERISA,
that has not been satisfied in full. “ERISA Affiliate” means any entity, trade or business,
whether or not incorporated, which together with the Company and the Company Subsidiaries,
would be deemed a “single employer” within the meaning of Section 4001 of ERISA or Sections
414(b), (c), (m) or (o) of the Code.

          (3) Each Benefit Plan which is subject to ERISA (an “ERISA Plan”) that is an “employee
pension benefit plan” within the meaning of Section 3(2) of ERISA (“Pension Plan”) and that
is intended to be qualified under Section 401(a) of the Code is so qualified, has received a
favorable determination letter from the IRS and nothing has occurred, whether by action or
failure to act, that could likely result in revocation of any such favorable determination
or opinion letter or the loss of the qualification of such Benefit Plan under Section 401(a)
of the Code. Neither the Company nor any Company Subsidiary has engaged in a transaction
with respect to any ERISA Plan that, assuming the taxable period of such transaction expired
as of the date hereof, could subject the Company or any Company Subsidiary to a material tax
or material penalty imposed by either Section 4975 of the Code or Section 502(i) of ERISA.
Neither the Company nor any Company Subsidiary has incurred or reasonably expects to incur a
material tax or penalty imposed by Section 4980F of the Code or Section 502 of ERISA.

          (4) Neither the Company, any Company Subsidiary nor any ERISA Affiliate (x) sponsors,
maintains or contributes to or has within the past six years sponsored, maintained or
contributed to a Pension Plan that is subject to Subtitles C or D of Title IV of ERISA or
(y) sponsors, maintains or has any liability with respect to or an obligation to contribute
to or has within the past six years sponsored, maintained, had any liability with respect
to, or had an obligation to contribute to a “multiemployer plan” within the meaning of
Section 3(37) of ERISA.

          (5) None of the execution and delivery of this Agreement or the Warrants, the issuance
of Common Stock hereunder or thereunder, nor the consummation

-21-

 

of the transactions contemplated hereby, nor the transactions contemplated as part of the
Other Private Placements, will, whether alone or in connection with another event, (i)
constitute a “change in control” or “change of control” within the meaning of any Benefit
Plan or result in any material payment or benefit (including severance, unemployment
compensation, “excess parachute payment” (within the meaning of Section 280G of the Code),
forgiveness of indebtedness or otherwise) becoming due to any current or former employee,
officer, director or consultant of the Company or any Company Subsidiary from the Company or
any Company Subsidiary under any Benefit Plan or any other agreement with any employee,
including, for the avoidance of doubt, any employment or change in control agreements, (ii)
result in payments under any of the Benefit Plans which would not be deductible under
Section 162(m) or Section 280G of the Code, (iii) materially increase any compensation or
benefits otherwise payable under any Benefit Plan, (iv) result in any acceleration of the
time of payment or vesting of any such benefits, including, for the avoidance of doubt,
under the Company Stock Plans, (v) require the funding or increase in the funding of any
such benefits, or (vi) result in any limitation on the right of the Company or any Company
Subsidiary to amend, merge, terminate or receive a reversion of assets from any Benefit Plan
or related trust.

          (6) As of the date hereof, there is no material pending or, to the knowledge of the
Company, threatened, litigation relating to the Benefit Plans. Neither the Company nor any
Company Subsidiary has any obligations for retiree health and life benefits under any ERISA
Plan or collective bargaining agreement, except for health continuation coverage as required
by Section 4980B of the Code or Part 6 of Title I of ERISA and at no expense to the Company
and the Company Subsidiaries.

          (7) Except as would not reasonably be expected to have a Material Adverse Effect on the
Company and except for liabilities fully reserved for or identified in the Company Financial
Statements, there are no pending or, to the knowledge of the Company, threatened claims
(other than claims for benefits in the ordinary course), lawsuits or arbitrations which have
been asserted or instituted against (i) the Benefit Plans, (ii) any fiduciaries thereof with
respect to their duties to the Benefit Plans, or (iii) the assets of any of the trusts under
any of the Benefit Plans.

          (q) Investment Company. Neither the Company nor any of the Company Subsidiaries is an
“investment company” as defined under the Investment Company Act of 1940, as amended, and neither
the Company nor any of the Company Subsidiaries sponsors any person that is such an investment
company.

          (r) Risk Management; Derivatives. Except as would not reasonably be expected to have a
Material Adverse Effect on the Company:

          (1) The Company and the Company Subsidiaries have in place risk management policies and
procedures sufficient in scope and operation to protect against risks of the type and in
amounts reasonably expected to be incurred by companies of similar size and in similar lines
of business as the Company and the Company Subsidiaries.

-22-

 

          (2) All derivative instruments, including swaps, caps, floors and option agreements,
whether entered into for the Company’s own account, or for the account of one or more of the
Company Subsidiaries or their customers, were entered into (i) only for purposes of
mitigating identified risk and in the ordinary course of business, (ii) in accordance with
prudent practices and in material compliance with all applicable laws, rules, regulations
and regulatory policies, and (iii) with counterparties believed by the Company to be
financially responsible at the time; and each of them constitutes the valid and legally
binding obligation of the Company or one of the Company Subsidiaries, enforceable in
accordance with its terms. Neither the Company nor the Company Subsidiaries, nor, to the
knowledge of the Company, any other party thereto, is in breach of any of its obligations
under any such agreement or arrangement.

          (s) Foreign Corrupt Practices and International Trade Sanctions. Neither the Company nor
any Company Subsidiary, nor any of their respective directors, officers, agents, employees or any
other persons acting on their behalf (i) has violated the Foreign Corrupt Practices Act, 15 U.S.C.
§ 78dd-1 et seq., as amended, or any other similar applicable foreign, federal, or state legal
requirement, (ii) has made or provided, or caused to be made or provided, directly or indirectly,
any payment or thing of value to a foreign official, foreign political party, candidate for office
or any other person knowing that the person will pay or offer to pay the foreign official, party or
candidate, for the purpose of influencing a decision, inducing an official to violate their lawful
duty, securing any improper advantage, or inducing a foreign official to use their influence to
affect a governmental decision, (iii) has paid, accepted or received any unlawful contributions,
payments, expenditures or gifts, (iv) has violated or operated in noncompliance with any export
restrictions, money laundering law, anti-terrorism law or regulation, anti-boycott regulations or
embargo regulations, or (v) is currently subject to any United States sanctions administered by the
Office of Foreign Assets Control of the United States Treasury Department (“OFAC”) and the Company
will not knowingly, directly or indirectly, use the proceeds of the sale of the Securities, or
lend, contribute or otherwise make available such proceeds to any Company Subsidiary, joint venture
partner or other person or entity, towards any sales or operations in any country sanctioned by
OFAC or for the purpose of financing the activities of any person currently subject to any U.S.
sanctions administered by OFAC.

          (t) Environmental Liability. Neither the Company nor any Company Subsidiary (i) is in
violation of any statute, rule, regulation, decision or order of any governmental agency or body or
any court, domestic or foreign, relating to the use, disposal or release of hazardous or toxic
substances or relating to the protection or restoration of the environment or human exposure to
hazardous or toxic substances (collectively, “Environmental Laws”), (ii) owns or operates any real
property contaminated with any substance that is in violation of any Environmental Laws, (iii) is
liable for any off-site disposal or contamination pursuant to any Environmental Laws, or (iv) is
subject to any legal, administrative, or other proceeding, claim or action of any nature relating
to any Environmental Laws; in each case, which violation, contamination, liability or proceeding,
claim or action has had or would reasonably be expected to have, individually or in the aggregate,
a Material Adverse Effect on the Company; and, to the Company’s knowledge, there is no pending or
threatened investigation that might lead to such a proceeding, claim or action or any reasonable
basis for any such proceeding, claim or action.

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          (u) Anti-Takeover Provisions. The Company and an appropriate committee of the Board of
Directors of the Company have taken all actions necessary to ensure that the Company, on the one
hand, and the Investor and the Other Investors, on the other hand, will not be subject to the
restrictions set forth in Section 30-1704 the Idaho Business Combination Act (the “IBCA”) as a
result of the execution and delivery of the Transaction Documents and the consummation of the
transactions contemplated thereby (including, but not limited to, the approval of such transactions
by an appropriate committee of the Board of Directors as contemplated by Section 30-1704 of the
IBCA, or by the Board of Directors or an appropriate committee under any other similar
"moratorium,” “control share,” “fair price,” “takeover” or “interested stockholder” law) (each a
"Takeover Law”). In the case that such transactions are subject to such provisions or laws, the
Board of Directors shall take all necessary action to ensure that such transactions shall be deemed
to be exceptions to such provisions or laws, including, but not limited to, the approval of such
transactions as contemplated thereunder. The Company has not adopted any stockholder rights plan
or similar arrangement relating to accumulations of beneficial ownership of Common Stock or a
change in control of the Company.

          (v) Intellectual Property. (i) The Company and the Company Subsidiaries own (free and
clear of any claims, liens, encumbrances, exclusive licenses or non-exclusive licenses not granted
in the ordinary course of business) or have a valid license to use all Intellectual Property used
in or necessary to carry on their business as currently conducted, and (ii) such Intellectual
Property referenced in clause (i) above is valid, subsisting and enforceable, and is not subject to
any outstanding order, judgment, decree or agreement adversely affecting the Company’s or the
Company Subsidiaries’ use of, or rights to, such Intellectual Property. The Company and the
Company Subsidiaries have sufficient rights to use all Intellectual Property used in their business
as presently conducted, all of which rights shall survive unchanged the consummation of the
transactions contemplated by this Agreement and the other Transaction Documents. Neither the
Company nor any Company Subsidiary has received any notice of infringement or misappropriation of,
or any conflict with, the rights of others with respect to any Intellectual Property, and no
reasonable basis exists for any such claim. To the Company’s knowledge, no third party has
infringed, misappropriated or otherwise violated the Intellectual Property rights of the Company or
the Company Subsidiaries. There is no litigation, opposition, cancellation, proceeding, objection
or claim pending, asserted, or, to the Company’s knowledge, threatened against the Company or any
Company Subsidiary concerning the ownership, validity, registerability, enforceability,
infringement or use of, or licensed right to use, any Intellectual Property. To the knowledge of
the Company, none of the Company or any of the Company Subsidiaries is using or enforcing any
Intellectual Property owned by or licensed to the Company or any of the Company Subsidiaries in a
manner that would be expected to result in the abandonment, cancellation or unenforceability of
such Intellectual Property. The Company and each of the Company Subsidiaries has taken all
reasonable measures to protect the Intellectual Property owned by or licensed to the Company or any
of the Company Subsidiaries.

     “Intellectual Property” shall mean: trademarks, service marks, brand names, domain names,
certification marks, trade dress and other indications of origin, the goodwill associated with the
foregoing and registrations in any jurisdiction of, and applications in any jurisdiction to
register, the foregoing, including any extension, modification or renewal of any such registration
or application; inventions, discoveries and ideas, whether patentable or not, in any jurisdiction;
patents, applications for patents (including divisions, continuations, continuations in part and

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renewal applications), and any renewals, extensions or reissues thereof, in any jurisdiction;
nonpublic information, trade secrets and confidential information and rights in any jurisdiction to
limit the use or disclosure thereof by any person; writings and other works, whether copyrightable
or not, in any jurisdiction; and registrations or applications for registration of copyrights in
any jurisdiction, and any renewals or extensions thereof; and any similar intellectual property or
proprietary rights.

          (w) Brokers and Finders. Except for Sandler, O’Neill & Partners, L.P. (the fees of which
are disclosed in Section 2.2(w) of the Company’s Disclosure Schedule), neither the Company nor any
Company Subsidiary nor any of their respective officers, directors or employees has employed any
broker or finder or incurred any liability for any financial advisory fees, brokerage fees,
commissions or finder’s fees, and no broker or finder has acted directly or indirectly for the
Company or any Company Subsidiary, in connection with this Agreement, the other Transaction
Documents or the transactions contemplated hereby and thereby.

          (x) Agreements with Regulatory Agencies. Neither the Company nor any Company Subsidiary
is subject to any cease-and-desist or other similar order or enforcement action issued by, or is a
party to any written agreement, consent agreement or memorandum of understanding with, or is a
party to any commitment letter or similar undertaking to, or is subject to any capital directive
by, or since December 31, 2009, has adopted any board resolutions at the request of, any
Governmental Entity that currently restricts in any material respect the conduct of its business or
that in any material respect relates to its capital adequacy, its liquidity and funding policies
and practices, its ability to pay dividends, its credit, risk management or compliance policies,
its internal controls, its management, or its operations or business (each item in this sentence, a
"Regulatory Agreement”) nor has the Company or any Company Subsidiary been advised since December
31, 2009 by any governmental entity that it is considering issuing, initiating, ordering or
requesting any such Regulatory Agreement. The Company and each Company Subsidiary are in
compliance in all material respects with each Regulatory Agreement to which it is party or subject,
and neither the Company nor any Company Subsidiary has received any notice from any Governmental
Entity indicating that either the Company or any Company Subsidiary is not in compliance in all
material respects with any such Regulatory Agreement.

          (y) Loan Portfolio.

          (1) Each of the Company and each Company Subsidiary has complied with, and all
documentation in connection with the origination, processing, underwriting and credit
approval of any loan, lease or other extension of credit or commitment to extend credit
(“Loans”) originated, purchased or serviced by the Company or any Company Subsidiary
satisfied in all material respects, (i) all applicable law with respect to the origination,
insuring, purchase, sale, pooling, servicing, subservicing or filing of claims in connection
with Loans, including all laws relating to real estate settlement procedures, consumer
credit protection, truth in lending laws, usury limitations, fair housing, transfers of
servicing, collection practices, equal credit opportunity and adjustable rate mortgages,
(ii) the responsibilities and obligations relating to Loans set forth in any material
contract between the Company or any Company Subsidiary and any Agency, Loan Investor or
Insurer, (iii) the applicable rules, regulations, guidelines,

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handbooks and other requirements of any Agency, Loan Investor or Insurer, and (iv) the
terms and provisions of any material mortgage or other collateral documents and other Loan
documents with respect to each Loan.

          (2) No Agency, Loan Investor or Insurer has (i) claimed in writing that the Company or
any Company Subsidiary has violated or has not complied with the applicable underwriting
standards with respect to Loans sold by the Company or any Company Subsidiary to a Loan
Investor or Agency, or with respect to any sale of Loan servicing rights to a Loan Investor,
(ii) imposed in writing restrictions on the activities (including commitment authority) of
the Company or any Company Subsidiary or (iii) indicated in writing to the Company or any
Company Subsidiary that it has terminated or intends to terminate its relationship with the
Company or any Company Subsidiary for poor performance, poor Loan quality or concern with
respect to the Company’s or any Company Subsidiary’s compliance with laws.

          (3) To the knowledge of the Company, the characteristics of the loan portfolio of the
Company have not materially changed from the characteristics of the loan portfolio of the
Company as of December 31, 2010 in a manner that could reasonably be expected to result in a
Material Adverse Effect with respect to the Company.

          (4) For purposes of this Section 2.2(y): (i) “Agency” means the Federal Housing
Administration, the Federal Home Loan Mortgage Corporation, the Farmers Home Administration
(now known as Rural Housing and Community Development Services), the Federal National
Mortgage Association, the United States Department of Veterans’ Affairs, the Rural Housing
Service of the U.S. Department of Agriculture or any other federal or state agency with
authority to (A) determine any investment, origination, lending or servicing requirements
with regard to Loans originated, purchased or serviced by the Company or any Company
Subsidiary or (B) originate, purchase, or service Loans, or otherwise promote lending,
including state and local housing finance authorities; (ii) “Loan Investor” means any person
(including an Agency) having a beneficial interest in any Loan originated, purchased or
serviced by the Company or any Company Subsidiary or a security backed by or representing an
interest in any such Loan; and (iii) “Insurer” means a person who insures or guarantees for
the benefit of the Loan holder all or any portion of the risk of loss upon borrower default
on any of the Loans originated, purchased or serviced by the Company or any Company
Subsidiary, including the Federal Housing Administration, the United States Department of
Veterans’ Affairs, the Rural Housing Service of the U.S. Department of Agriculture and any
private mortgage insurer, and providers of hazard, title or other insurance with respect to
such Loans or the related collateral.

          (z) Listing of Common Stock. The shares of Common Stock to be issued under this Agreement
and the other Transaction Documents, and which may be issued upon exercise of any Warrants, meet
all requirements for quotation on the OTCBB.

          (aa) Directors’ and Officers’ Insurance. The Company (i) maintains directors’ and
officers’ liability insurance and fiduciary liability insurance with, to the knowledge of the
Company, financially sound and reputable insurance companies with benefits and levels of

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coverage that have been Previously Disclosed, (ii) has timely paid all premiums on such
policies and (iii) there has been no lapse in coverage during the term of such policies.

          (bb) Section 16. The Board of Directors has approved the issuance and sale of the Common
Stock to be issued under this Agreement and the other Transaction Documents, including any
acquisition pursuant to the exercise or conversion of the Warrants, in the manner required to
exempt the acquisition of such shares of Common Stock from Section 16(b) of the Exchange Act
pursuant to Rule 16b-3 thereunder.

          (cc) Board of Directors. The Company does not have, and the Board of Directors has not
adopted, any policies, directives or resolutions, or any amendments to the Company’s bylaws or
Articles of Incorporation, with respect to qualification or other requirements for serving as a
director on the board of directors of the Company or any Subsidiary.

          (dd) Fees and Expenses. All closing fees and expenses (including all costs to be incurred
to register the Registrable Securities), the fees and expenses of any Company advisors (including
Company counsel and other professional fees), and fees and expenses of any broker or finders that
the Company is responsible for (including the fees and expenses of the Company’s sole placement
agent, Sandler O’Neill + Partners) are not expected to exceed $6.0 million.

          (ee) Other Private Placements. Concurrently with the execution and delivery of this
Agreement, the Company has agreed to sell Common Shares in the Other Private Placements on terms
and conditions that are substantially identical in all material respects to those set forth in this
Agreement, with the closing of such Other Private Placements to occur simultaneously with the
Closing, except as to (i) the number of Purchased Shares to be purchased and the aggregate purchase
price for such Purchased Shares (but not the Per Share Purchase Price) set forth in Section 1.2;
(ii) provisions relating to the reimbursement of the Investor’s fees and expenses, which appear in
the Other Securities Purchase Agreements for Lead Investors and Major Investors in the form set
forth in Section 3.2(b) hereof and differ only as to the amount of fees and expenses to be
reimbursed; (iii) the Other Investors will not have rights to receive Warrants as set forth herein;
(iv) that Other Securities Purchase Agreements may not contain the provisions set forth in Section
5.10 and (v) that Other Securities Purchase Agreements may not contain the provisions set forth in
Section 5.19(d) and (e).3

          (ff) Nonperforming Assets. To the knowledge of the Company, since the date of the latest
audited financial statements included within the Company Reports, the Company believes that the
Bank will be able to fully and timely collect substantially all interest, principal or other
payments when due under its loans, leases and other assets that are not classified as nonperforming
and such belief is reasonable under all the facts and circumstances known to the Company and Bank,
and the Company believes that the amount of reserves and allowances for loan and lease losses and
other nonperforming assets established on the Company’s and Bank’s

 

			
	3	 	[Conformed to reflect the differences
applicable to each Investor’s agreement.]

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financial statements is adequate and such belief is reasonable under all the facts and
circumstances known to the Company and Bank.

          (gg) Off Balance Sheet Arrangements. There is no transaction, arrangement, or other
relationship between the Company (or any Company Subsidiary) and an unconsolidated or other off
balance sheet entity that is required to be disclosed by the Company in its Exchange Act filings
and is not so disclosed.

          (hh) Absence of Manipulation. The Company has not, and to the knowledge of the Company no
one acting on its behalf has, taken, directly or indirectly, any action designed to cause or to
result in the stabilization or manipulation of the price of any security of the Company to
facilitate the sale or resale of any of the Purchased Shares.

          (ii) Adequate Capitalization. As of December 31, 2010, the Bank met or exceeded the
standards necessary to be considered “well capitalized” under the FDIC’s regulatory framework for
prompt corrective action.

          (jj) Regulatory Capital Levels. At the Closing Date, taking into account the proceeds of
the capital raise contemplated by this Agreement, the Company and the Bank will each have a
leverage ratio of not less than 10.0% and a total risk-based capital ratio of not less than 12.0%.

          (kk) Acknowledgment Regarding Purchase of Securities. The Company acknowledges and agrees
that the Investor is acting solely in the capacity of an arm’s length purchaser with respect to the
Transaction Documents and the transactions contemplated hereby and thereby. The Company further
acknowledges that the Investor is not acting as a financial advisor or fiduciary of the Company (or
in any similar capacity) with respect to the Transaction Documents and the transactions
contemplated thereby and any advice given by the Investor or any of its representatives or agents
in connection with the Transaction Documents and the transactions contemplated thereby is merely
incidental to the Investor’s purchase of the Securities.

          (ll) Change in Control. The consummation of the transactions contemplated by this
Agreement and the Other Private Placements will not trigger any rights under any “change of
control” provision in any of the agreements to which the Company or any Company Subsidiaries is a
party, including any employment, “change in control,” severance or other compensatory agreements
and any benefit plan, which results in payments to the counterparty or the acceleration of vesting
of benefits.

          (mm) Shell Company Status. The Company is not, and has never been, an issuer identified in
Rule 144(i)(1).

     2.3 Representations and Warranties of the Investor. The Investor hereby represents and
warrants as of the date of this Agreement (except to the extent made only as of a specified date,
in which case as of such date), solely with respect to itself and, where expressly indicated, its
Affiliates, to the Company that:

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          (a) Organization and Authority. The Investor is duly organized, validly existing, and in
good standing under the laws of the jurisdiction of its organization, is duly qualified to do
business and is in good standing in all jurisdictions where its ownership or leasing of property or
the conduct of its business requires it to be so qualified and failure to be so qualified would
have a Material Adverse Effect on such Investor, and has the requisite corporate, partnership,
limited liability company or other power and authority to own its properties and assets and to
carry on its business as it is now being conducted.

          (b) Authorization.

          (1) The Investor has the requisite corporate, partnership, limited liability company or
other power and authority to enter into this Agreement and to carry out its obligations
hereunder. The execution, delivery, and performance of this Agreement by the Investor and
the consummation of the transactions contemplated hereby have been duly authorized by the
Investor’s board of directors, general partner, managing members, investment committee or
other authorized persons, as the case may be (if such authorization is required), and no
further approval or authorization by any of such persons, as the case may be, is required.
Subject to such approvals of Governmental Entities as may be required by statute or
regulation, this Agreement is a valid and binding obligation of the Investor enforceable
against the Investor in accordance with its terms, except as such enforceability may be
limited by bankruptcy, insolvency, moratorium, reorganizations, fraudulent transfer, or
similar laws affecting creditors generally or by general equitable principles (whether
applied in equity or at law). No other corporate, partnership, limited liability company or
other proceedings are necessary for the execution and delivery by the Investor of this
Agreement, the performance by it of its obligations hereunder or the consummation by it of
the transactions contemplated hereby.

          (2) Neither the execution, delivery, and performance by the Investor of this Agreement,
nor the consummation of the transactions contemplated hereby, nor compliance by the Investor
with any of the provisions hereof, will (i) violate, conflict with, or result in a breach of
any provision of, or constitute a default (or an event which, with notice or lapse of time
or both, would constitute a default) under, or result in the termination of, or accelerate
the performance required by, or result in a right of termination or acceleration of, or
result in the creation of, any Lien upon any of the properties or assets of such Investor
under any of the terms, conditions or provisions of (A) its applicable governing documents,
or (B) any note, bond, mortgage, indenture, deed of trust, license, lease, agreement or
other instrument or obligation to which the Investor is a party or by which it may be bound,
or to which the Investor or any of the properties or assets of such Investor may be subject,
or (ii) subject to compliance with the statutes and regulations referred to in the next
paragraph, violate any statute, rule or regulation or any judgment, ruling, order, writ,
injunction or decree applicable to such Investor or any of its respective properties or
assets except in the case of clauses (i)(B) and (ii) for such violations, conflicts and
breaches as would not reasonably be expected to have a Material Adverse Effect on the
Investor.

          (3) Other than the securities or blue sky laws of the various states and except as
otherwise provided in this Agreement, and assuming the accuracy of the

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representations and warranties of the Company and the performance of the covenants and
agreements of the Company contained herein, no material notice to, registration, declaration
or filing with, exemption or review by, or authorization, order, consent or approval of, any
Governmental Entity, or expiration or termination of any statutory waiting period, is
necessary for the consummation by the Investor of the transactions set forth in this
Agreement.

          (c) Purchase for Investment. The Investor acknowledges that the Securities have not been
registered under the Securities Act or under any state securities laws. The Investor (1) is
acquiring the Securities pursuant to an exemption from registration under the Securities Act for
its own account solely for investment with no present intention or plan to distribute any of the
Securities to any person nor with a view to or for sale in connection with any distribution
thereof, (2) will not sell or otherwise dispose of any of the Securities, except in compliance with
the registration requirements or exemption provisions of the Securities Act and any other
applicable securities laws, (3) has such knowledge and experience in financial and business matters
and in investments of this type that it is capable of evaluating the merits and risks of its
investment in the Securities and of making an informed investment decision and has so evaluated the
merits and risks of such investment, (4) is able to bear the economic risk of an investment in the
Securities and, at the present time, is able to afford a complete loss of such investment and (5)
is an “accredited investor” (as that term is defined by Rule 501 under the Securities Act);
provided, however, that by making the representations herein, the Investor does not agree to hold
any of the Securities for any minimum period of time and reserves the right at all times to sell or
otherwise dispose of all or any part of such Securities pursuant to an effective registration
statement under the Securities Act or under an exemption from such registration in compliance with
applicable federal and state securities laws. Without limiting any of the foregoing, neither the
Investor nor any of its Affiliates has taken, and the Investor will not, and will cause its
Affiliates not to, take any action that would otherwise cause the Securities to be subject to the
registration requirements of the Securities Act.

          (d) Access to Information. The Investor acknowledges that it has been afforded (i) the
opportunity to ask such questions as it has deemed necessary of, and to receive answers from,
representatives of the Company concerning the terms and conditions of the offering of the
Securities and the merits and risks of investing in the Securities; (ii) access to information
about the Company and the Company Subsidiaries and their respective financial condition, results of
operations, business, properties, management and prospects sufficient to enable it to evaluate its
investment; and (iii) the opportunity to obtain such additional information that the Company
possesses or can acquire without unreasonable effort or expense that is necessary to make an
informed investment decision with respect to the investment.

          (e) Independent Investment Decision. The Investor has independently evaluated the merits
of its decision to purchase the Securities pursuant to this Agreement. The Investor understands
that nothing in this Agreement or any other materials presented by or on behalf of the Company to
the Investor in connection with the purchase of the Securities constitutes legal, tax or investment
advice. The Investor has consulted such legal, tax and investment advisors as it, in its sole
discretion, has deemed necessary or appropriate in connection with its purchase of the Securities.

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          (f) Reliance on Exemptions. The Investor understands and acknowledges that the Securities being offered and sold to it
in reliance on specific exemptions from the registration requirements of U.S. federal and state
securities laws and that the Company is relying in part upon the truth and accuracy of, and the
Investor’s compliance with, the representations, warranties, agreements, acknowledgements and
understandings of the Investor set forth herein in order to determine the availability of such
exemptions and the eligibility of the Investor to acquire the Securities.

          (g) No Governmental Review. The Investor understands that no U.S. federal or state agency or any other government or
governmental agency has passed on or made any recommendation or endorsement of the Securities or
the fairness or suitability of the investment in the Securities nor have such authorities passed
upon or endorsed the merits of the offering of the Securities.

          (h) Residency. The Investor’s residence (if an individual) or office in which its investment decision with
respect to the Purchased Shares was made (if an entity) are located at the address set forth for
the Investor in Section 6.7 of this Agreement.

          (i) Ownership. As of the date of this Agreement, other than as set forth on its signature page hereto,
the Investor is not the owner of record or the Beneficial Owner of shares of Common Stock,
securities convertible into or exchangeable for Common Stock, or any other equity or equity-linked
security of the Company or any Company Subsidiary.

          (j) Financial Capability. The Investor has immediately available funds necessary to consummate the Closing, as of the
date of the Closing, on the terms and conditions contemplated by this Agreement.

          (k) Knowledge as to Conditions. As of the date of this Agreement, the Investor knows of no reason why any regulatory
approvals and, to the extent necessary, any other approvals, authorizations, filings,
registrations, and notices required or otherwise a condition to the consummation of the
transactions contemplated by the Transaction Documents cannot, or should not, be obtained.

          (l) Brokers and Finders. Neither the Investor nor its Affiliates or any of their respective officers, directors or
employees has employed any broker or finder or incurred any liability for any financial advisory
fees, brokerage fees, commissions or finder’s fees, and no broker or finder has acted directly or
indirectly for the Investor, in connection with the Transaction Documents or the transactions
contemplated hereby and thereby. The Investor acknowledges that it is purchasing the Securities
directly from the Company and not from the Placement Agent.

ARTICLE III

Covenants

     3.1 Filings; Other Actions.

          (a) The Investor and the Company will cooperate and consult with each other and use
commercially reasonable efforts to prepare and file all necessary and customary

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documentation, to effect all necessary and customary applications, notices, petitions,
filings, and other documents, and to obtain all necessary and customary permits, consents, orders,
approvals, and authorizations of, or any exemption by, all third parties and Governmental Entities,
and expiration or termination of any applicable waiting periods, (i) necessary or advisable to
consummate the transactions contemplated by this Agreement, and to perform the covenants
contemplated by this Agreement and (ii) with respect to the Investor, to the extent typically
provided by the Investor to such third parties or Governmental Entities, as applicable, under the
Investor’s policies consistently applied and subject to such confidentiality requests as the
Investor may reasonably seek. Without limiting the foregoing, each of the Company and the Investor
shall make or file the initial applications, notices, petitions or filings required to be made by
it with Governmental Entities as promptly as reasonably practicable, and in any event not later
than April 15, 2011. Each party shall execute and deliver both before and after the Closing such
further certificates, agreements, and other documents and take such other actions as the other
party may reasonably request to consummate or implement such transactions or to evidence such
events or matters, subject, in each case, to clauses (i) and (ii) of the first sentence of this
Section 3.1(a). In particular, the Company will use its commercially reasonable efforts to help
the Investor promptly obtain or submit, as the case may be, as promptly as practicable, the
approvals and authorizations of, filings and registrations with, and notifications to, or
expiration or termination of any applicable waiting period, all notices to and, to the extent
required by applicable law or regulation, consents, approvals, or exemptions from bank regulatory
authorities, for the transactions contemplated by this Agreement. Notwithstanding anything herein
to the contrary, the Investor and its Affiliates are not subject to any covenant or agreement under
this Agreement to file any application or notice under the BHC Act or, unless the Investor is a
Lead Investor, the CBCA, in connection with any of the transactions contemplated hereby. To the
extent that the Investor files a notice of change in control under the CBCA, the Investor shall
use, and cause its Affiliates to use, commercially reasonable efforts to obtain regulatory
non-objection to the change in control notice as promptly as reasonably possible, including
responding fully to all requests for additional information from the Federal Reserve and entering
into one or more passivity agreements not more restrictive in any material respect than in the form
attached hereto as Exhibit F. The Company shall use, and cause its Affiliates to use,
commercially reasonable efforts to obtain all approvals required to be obtained by the Company in
connection with the transactions contemplated by the Transaction Documents, including responding
fully to all requests for additional information from the Federal Reserve, the FDIC and Idaho
Department of Finance. The Investor and the Company will each have the right to review in advance,
and to the extent practicable, each will consult with the other, in each case subject to applicable
laws relating to the exchange of information, all the information (other than confidential
information) relating to such other party, and any of their respective Affiliates, which appears in
any filing made with, or written materials submitted to, any third party or any Governmental Entity
in connection with the transactions contemplated by this Agreement; provided, however, that the
Company shall not allow any Other Investor to review any such information relating to the Investor.
In exercising the foregoing right, each of the parties hereto agrees to act reasonably and as

promptly as practicable. Each party hereto agrees to keep the other party apprised of the status
of matters relating to completion of the transactions contemplated hereby. The Investor and the
Company shall promptly furnish each other to the extent permitted by applicable laws with copies of
written communications received by them or their subsidiaries from, or delivered by any of the
foregoing to, any Governmental Entity in

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respect of the transactions contemplated by this Agreement or by any Other Securities Purchase
Agreement. Notwithstanding anything in this Section 3.1 or elsewhere in this Agreement to the
contrary, the Investor shall not be required to provide to the Company any of its, its Affiliates’,
its investment advisor’s or its or their control persons’ or equity holders’ nonpublic,
proprietary, personal or otherwise confidential information including the identities of limited
partners, shareholders or members of the Investor or its Affiliates or their investment advisors
(collectively, the “Investor Confidential Information”).

          (b) Each party agrees, upon request, to furnish the other party with all information (other
than Investor Confidential Information) concerning itself, its subsidiaries, Affiliates, directors,
officers, partners, and shareholders and such other matters as may be reasonably necessary or
advisable in connection with any statement, filing, notice, or application made by or on behalf of
such other party or any of its subsidiaries to any Governmental Entity in connection with this
Agreement. Notwithstanding anything in this Section 3.1 or elsewhere in this Agreement to the
contrary, (A) the Investor shall not be required to provide any materials to the Company that it
deems private or confidential and (B) the Investor shall provide information only to the extent
typically provided by the Investor to such Governmental Entities under the Investor’s policies
consistently applied and subject to such confidentiality requests as such Investor may reasonably
seek.

          (c) From the date of this Agreement until the Closing, the Company shall not, directly or
indirectly, amend, modify, or waive, and the Board of Directors shall not recommend approval of any
proposal to the Company’s shareholders having the effect of amending, modifying, or waiving any
provision in the Articles of Incorporation or bylaws of the Company in any manner adverse to the
Investor.

          (d) The Company shall take all actions necessary to ensure that none of the execution and
delivery of this Agreement, nor the consummation of the transactions contemplated hereby, nor the
consummation of the transactions contemplated as part of the Other Private Placements will
constitute a “change in control” or “change of control” within the meaning of any Benefit Plan.

     3.2 Use of Proceeds; Expenses.

          (a) A minimum of $40 million of the gross proceeds from the sale of the Purchased Shares and
Warrants to the Investor and the transactions contemplated by the Other Private Placements shall be
contributed as capital to the Bank. The remaining gross proceeds, after the payment of expenses
related to the transactions contemplated by this Agreement, the Warrants and the Other Securities
Purchase Agreements, will be used by the Company for general corporate purposes or as otherwise
contemplated by this Agreement.

          (b) The Company shall pay (i) the reasonable legal fees and expenses of Sullivan & Cromwell
LLP, and (ii) all other reasonable and documented costs and expenses incurred by the Investor
(other than any legal fees) in connection with the transactions contemplated by the Transaction
Documents. Other than as set forth in the preceding sentence and in Section 5.9(b), each of the
Company and the Investor will bear and pay all costs and

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expenses incurred by it or on its behalf in connection with the transactions contemplated
under this Agreement.

     3.3 Access, Information and Confidentiality.

          (a) From the date of this Agreement, until the date when the shares of Common Stock owned by
the Investor and its Affiliates in the aggregate represent less than 5% of all of the outstanding
Common Shares (provided that, in making such calculation, all shares of Common Stock into or for
which shares of any securities owned by the Investor are directly or indirectly convertible or
exercisable, which, for the avoidance of doubt, shall include those shares of Common Stock issuable
upon the exercise of the Warrants, shall be included in both the numerator and denominator, and all
Common Shares issued by the Company after the Closing Date other than in connection with an
issuance in which the Investor (or a permitted assignee under Section 6.8) was offered the right to
purchase its pro rata portion of such Common Shares in accordance with Section 5.14 shall be
excluded from the denominator), the Company will ensure that upon reasonable notice, and in such a
manner as not to interfere unreasonably with the conduct of the business of the Company the Company
and its subsidiaries will afford to the Investor and its representatives (including employees of
the Investor, and counsel, accountants, financial and investment banking advisors and other
professionals retained by the Investor) [(i)] such access during normal business hours to its
books, records, properties and personnel and to such other information as the Investor may
reasonably request[, and (ii) reasonable opportunities to routinely consult with the management of
the Company and its subsidiaries, which the parties expect would not be more frequently than once
per calendar quarter on matters relating to the operation of the Company. The Company agrees to
consider, in good faith, the recommendations of the Investor or its designated representative in
connection with the matters on which it is consulted as described above, recognizing that the
ultimate discretion with respect to all such matters shall be
retained by the Company].4
Notwithstanding anything in this Agreement to the contrary, at no time will the Company provide to
the Investor any material non-public information (other than as disclosed to the Board
Representative or Observer, as the case may be and as applicable) unless the Investor shall have
specifically requested such disclosure in writing from the Company.

          (b) Each party to this Agreement will hold, and will cause its respective subsidiaries and
their directors, officers, employees, agents, consultants, and advisors to hold, in strict
confidence, unless disclosure to a Governmental Entity is necessary or appropriate in connection
with any necessary regulatory approval, or request for information or similar process, or unless
compelled to disclose by judicial or administrative process or, in the written opinion of its
counsel, by other requirement of law or the applicable requirements of any Governmental Entity (in
which case, the party permitted to disclose such information shall, to the extent legally
permissible and reasonably practicable, provide the other party with prior written notice of such
permitted disclosure), all nonpublic records, books, contracts, instruments, computer data and
other data and information (collectively, “Information”) concerning the other party hereto
furnished to it by such other party or its representatives pursuant to this Agreement, including
but not limited to as set forth in Section 3.3(a) (except to the extent that such information can
be

 

			
	4	 	[Included in the Agreement of two Investors.]

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shown to have been (1) previously known by such party on a nonconfidential basis, (2) in the
public domain through no fault of such party, or (3) later lawfully acquired from other sources by
the party to which it was furnished), and neither party hereto shall release or disclose such
Information to any other person, except its auditors, attorneys, financial advisors, other
consultants, and advisors with the express understanding that such parties will maintain the
confidentiality of the Information and, to the extent permitted above, to bank regulatory
authorities.

     3.4 Transfer. The Company shall cooperate, in accordance with reasonable and customary business practices
with any and all transfers, whether by direct or indirect sale, assignment, award, confirmation,
distribution, bequest, donation, trust, pledge, encumbrance, hypothecation or other transfer or
disposition, for consideration or otherwise, whether voluntarily or involuntarily, by operation of
law or otherwise, by the Investor or any of its successors and assigns of the Securities and other
shares of Common Stock such party may beneficially own prior to or subsequent to the date hereof.

     3.5 Reasonable Efforts. The Company agrees to use its reasonable best efforts to take, or cause to be taken, all
actions, and to do, or cause to be done, and to assist and cooperate with the Investor in doing,
all things necessary, proper or advisable to consummate and make effective, in the most expeditious
manner practicable, the transactions contemplated by this Agreement and the Transaction Documents,
including using reasonable best efforts to accomplish the following: (a) the taking of all
reasonable acts necessary to cause the conditions to Closing to be satisfied; (b) the obtaining of
all necessary actions or nonactions, waivers, consents and approvals from Governmental Entities and
the making of all necessary registrations and filings and the taking of all reasonable steps
necessary to obtain an approval or waiver from, or to avoid an action or proceeding by, any
Governmental Entity; (c) the obtaining of all necessary consents, approvals or waivers from third
parties; and (d) the execution and delivery of any additional instruments necessary to consummate
the transactions contemplated by, and to fully carry out the purposes of, this Agreement and the
Transaction Documents.

     3.6 Shareholder Litigation. The Company shall promptly inform Investor of any claim, action, suit, arbitration,
mediation, demand, hearing, investigation or proceeding (“Shareholder Litigation”) against the
Company, any Company Subsidiary or any of the past or present executive officers or directors of
the Company or any Company Subsidiary that is threatened or initiated by or on behalf of any
shareholder of the Company in connection with or relating to the transactions contemplated hereby
or by the Transaction Documents. The Company shall consult with Investor and keep Investor
informed of all material filings and developments relating to any such Shareholder Litigation.

     3.7 Most Favored Nation. During the period from the date hereof though the Closing, neither the Company nor any of
the Company Subsidiaries shall enter into any additional, or modify any existing, agreements with
any existing or future investors in the Company or any of the Company Subsidiaries (including the
Other Private Placements) that have the effect of establishing rights or otherwise benefitting such
investor in a manner more favorable in any material respect to such investor than the rights and
benefits established in favor of the Investor by the Transaction Documents (except with respect to
those rights and benefits specified in

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Section 2.2(ee) hereof), unless, in any such case, the Investor has been offered such rights
and benefits.

     3.8 Notice of Certain Events. Each party hereto shall promptly notify the other party hereto of (a) any event, condition,
fact, circumstance, occurrence, transaction or other item of which such party becomes aware prior
to the Closing that would constitute a violation or breach of the Transaction Documents (or a
breach of any representation or warranty contained herein or therein) or, if the same were to
continue to exist as of the Closing Date, would constitute the non-satisfaction of any of the
conditions set forth in Section 1.2 hereof, and (b) any event, condition, fact, circumstance,
occurrence, transaction or other item of which such party becomes aware which would have been
required to have been disclosed pursuant to the terms of the Transaction Documents had such event,
condition, fact, circumstance, occurrence, transaction or other item existed as of the date hereof.
Notwithstanding the foregoing, neither party shall be required to take any action that would
jeopardize such party’s attorney-client privilege.

     3.9 Conduct of the Business. Prior to the earlier of the Closing Date and the termination of this Agreement pursuant to
Article IV, the Company shall, and, shall cause each Company Subsidiary to: (a) use commercially
reasonable efforts to carry on its business in the ordinary course of business and use commercially
reasonable efforts to maintain and preserve its and such Company Subsidiary’s business (including
its organization, assets, properties, goodwill and insurance coverage) and preserve business
relationships with customers, vendors, strategic partners and others having business dealings with
it; provided, that nothing in this clause (a) shall limit or require any actions that the Board of
Directors may, in good faith, determine to be inconsistent with their duties or the Company’s
obligations under applicable law or imposed by any Governmental Entity; (b) refrain from (1)
declaring, setting aside or paying any distributions or dividends on, or making any other
distributions (whether in cash, securities or other property) in respect of, any of its capital
stock; (2) splitting, combining or reclassifying any of its capital stock or issuing or authorizing
the issuance of any other securities in respect of, in lieu of or in substitution for capital stock
or any of its other securities; (3) purchasing, redeeming or otherwise acquiring any capital stock
or any of its other securities or any rights, warrants or options to acquire any such capital stock
or other securities; (4) issuing, delivering, selling, granting, pledging or otherwise disposing of
or encumbering any capital stock, any other voting securities or any securities convertible into or
exchangeable for, or any rights, warrants or options to acquire, any such capital stock, voting
securities or convertible or exchangeable securities, other than any issuance of Common Stock on
exercise of any compensatory stock options outstanding on the date of this Agreement or (5)
entering into any contract with respect to, or otherwise agreeing or committing to do, any for the
foregoing; and (c) to the extent reasonably practicable, shall consult with the Investor prior to
taking any material actions outside of the ordinary course of business; provided that the Company
shall not consult with the Investor with respect to such material actions or provide any material
non-public information to the Investor unless the Company first seeks and obtains the Investor’s
prior consent to be so consulted or to receive such information. Additionally, except as required
pursuant to existing written, binding agreements in effect prior to the date hereof and set forth
in Section 3.9 of the Disclosure Schedule, and with respect to clauses (i) and (ii) except in the
ordinary course of business consistent with past practice related to employees who are not
executive officers of the Company, the Company shall and shall cause the Company Subsidiaries to
not take any of the following actions: (i) grant or provide any severance or termination payments
or benefits to any

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director, officer or employee of the Company or any of the Company Subsidiaries; (ii) increase
the compensation, bonus or pension, welfare, severance or other benefits of, pay any bonus to, or
make any new equity awards to any director, officer or employee of the Company or any of the
Company Subsidiaries; (iii) establish, adopt, amend or terminate any Benefit Plan or amend the
terms of any outstanding equity-based awards; (iv) take any action to accelerate the vesting or
payment, or fund or in any other way secure the payment, of compensation or benefits under any
Benefit Plan, to the extent not already provided in any such Benefit Plan; (v) change any actuarial
or other assumptions used to calculate funding obligations with respect to any Benefit Plan or to
change the manner in which contributions to such plans are made or the basis on which such
contributions are determined, except as may be required by GAAP; or (vi) forgive any loans to
directors, officers or employees of the Company or any of the Company Subsidiaries; provided, that
in no event shall any increase of any payment in the ordinary course of business under clause (ii)
increase such person’s compensation by more than 5% in the aggregate except as set forth in Section
3.9 of the Disclosure Schedule.

ARTICLE IV

Termination

     4.1 Termination. This Agreement may be terminated prior to the Closing:

          (a) by mutual written agreement of the Company and the Investor;

          (b) by any party, upon written notice to the other party, in the event that the Closing does
not occur on or before August 31, 2011; provided, however, that the right to terminate this
Agreement pursuant to this Section 4.1(b) shall not be available to any party whose failure to
fulfill any obligation under this Agreement shall have been the cause of, or shall have resulted
in, the failure of the Closing to occur on or prior to such date;

          (c) by the Investor, upon written notice to the Company, if (i) there has been a breach of any
representation, warranty, covenant or agreement made by the Company in this Agreement, or any such
representation and warranty shall have become untrue after the date of this Agreement, such that
Section 1.2(b)(1)(ii) or Section 1.2(b)(1)(iv) would not be satisfied and (ii) such breach or
condition is not curable or, if curable, is not cured prior to the date that would otherwise be the
Closing Date in absence of such breach or condition; provided that this Section 4.1(c) shall only
apply if the Investor is not in material breach of any of the terms of this Agreement;

          (d) by the Company, upon written notice to the Investor, if (i) there has been a breach of any
representation, warranty, covenant or agreement made by the Investor in this Agreement, or any such
representation and warranty shall have become untrue after the date of this Agreement, such that
Section 1.2(b)(2)(i) or Section 1.2(b)(2)(v) would not be satisfied and (ii) such breach or
condition is not curable or, if curable, is not cured prior to the date that would otherwise be the
Closing Date in absence of such breach or condition; provided that this Section 4.1(d) shall only
apply if the Company is not in material breach of any of the terms of this Agreement;

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          (e) by any party, upon written notice to the other parties, in the event that any Governmental
Entity shall have issued any order, decree or injunction or taken any other action restraining,
enjoining or prohibiting any of the transactions contemplated by this Agreement, and such order,
decree, injunction or other action shall have become final and nonappealable;

          (f) by the Investor, upon written notice to the Company, if the Investor or any of its
Affiliates receives written notice from or is otherwise advised by, the Federal Reserve or the
Idaho Department of Finance that the Federal Reserve or the Idaho Department of Finance, as
applicable, will not grant (or intends to rescind or revoke if previously granted) any of the
written confirmations or determinations referred to in Section 1.2(b)(1)(viii); or

          (g) by the Company, upon written notice to the Investor, if the Company receives written
notice from or is otherwise advised by the Idaho Department of Finance that the Idaho Department of
Finance will not grant (or intends to rescind or revoke if previously granted) any approvals
referred to in Section 1.2(b)(2)(iv).

     4.2 Effects of Termination. In the event of any termination of this Agreement as provided in Section 4.1, this
Agreement (other than Section 3.2(b), Section 3.3(b) (except, in respect of any party, in
connection with litigation against it by the other party or its Affiliates), this Section 4.2,
Section 5.8 and Article VI, which shall remain in full force and effect) shall forthwith become
wholly void and of no further force and effect; provided, that nothing herein shall relieve any
party from liability for willful breach of this Agreement.

     4.3 Notice of Other Terminations. The Company shall promptly notify the Investor if any of the Other Securities Purchase
Agreements are terminated.

ARTICLE V

Additional Agreements

     5.1 No Rights Agreement. From the date hereof through such time during which the Investor, together with its
Affiliates, and, for purposes of this Section 5.1, persons who share a common discretionary
investment advisor with the Investor, in the aggregate own 5.0% or more of all of the outstanding
shares of Common Stock (provided that, in making such calculation, all shares of Common Stock into
or for which shares of any securities owned by the Investor are directly or indirectly convertible
or exercisable, which, for the avoidance of doubt, shall include those shares of Common Stock
issuable upon the exercise of the Warrants, shall be included in both the numerator and
denominator, and all Common Shares issued by the Company after the Closing Date other than in
connection with an issuance in which the Investor (or a permitted assignee under Section 6.8) was
offered the right to purchase its pro rata portion of such Common Shares in accordance with Section
5.14 shall be excluded from the denominator) (the “Qualifying Ownership Interest”), the Company
shall not enter into any poison pill agreement, shareholders’ rights plan or similar agreement that
shall limit the rights of the Investor and its Affiliates and associates to hold any shares of
Common Stock or acquire additional securities of the Company unless such poison pill agreement,
shareholders’ rights plan or similar agreement grants an exemption or waiver to the Investor and
its Affiliates and associates and any group in which the Investor may become a member, immediately
effective upon execution of such plan or

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agreement, that would allow the Investor and its Affiliates and associates to acquire such
additional securities of the Company.

     5.2 Investor Standstill Agreements. The Investor agrees that until the earlier of (i) the second anniversary of the Closing
Date and (ii) such time as it and its Affiliates no longer own a Qualifying Ownership Interest,
without the prior written consent of the Company, neither it nor any of its controlled Affiliates
(each, a “Standstill Affiliate”) will, directly or indirectly:

          (a) in any way acquire, offer or propose to acquire or agree to acquire, other than as
specifically contemplated in the Transaction Documents, Beneficial Ownership of any Voting
Securities if such acquisition would result in the Investor or its Affiliates having Beneficial
Ownership of more than 24.9% (if the Investor will be a Lead Investor immediately following the
Closing), or 9.9% (if the Investor will be other than a Lead Investor immediately following the
Closing) of the outstanding shares of a class of voting securities (within the meaning of the BHC
Act and Regulation Y promulgated thereunder) or Common Stock of the Company (for the avoidance of
doubt, for purposes of calculating the Beneficial Ownership of the Investor and its Affiliates
hereunder, (x) any security that is convertible into, or exercisable for, any such voting
securities or Common Stock that is Beneficially Owned by the Investor or its Affiliates shall be
treated as fully converted or exercised in accordance with its terms, as the case may be, into the
underlying voting securities or Common Stock, and (y) any security convertible into, or exercisable
for, the Common Stock that is Beneficially Owned by any person other than the Investor or any of
its Affiliates shall not be taken into account);

          (b) make, or in any way participate in, any “solicitation” of “proxies” (as such terms are
defined under Regulation 14A under the Exchange Act, disregarding clause (iv) of Rule 14a-(1)(2)
and including any otherwise exempt solicitation pursuant to Rule 14a-2(b)) to vote, or seek to
advise or influence any person or entity with respect to the voting of, any Voting Securities of
the Company (except as may be permitted under the terms of any passivity or anti-association
commitment, as such commitment may be amended from time to time, given by such Investor to the
Federal Reserve in connection with such Investor’s purchase of Common Shares);

          (c) call or seek to call a meeting of the shareholders of the Company or initiate any
shareholder proposal for action by shareholders of the Company, form, join or in any way
participate in a “group” (within the meaning of Section 13(d)(3) of the Exchange Act and the rules
and regulations promulgated thereunder) with respect to any Voting Securities, or seek, propose or
otherwise act alone or in concert with others, to influence or control the management, board of
directors or policies of the Company (except as may be permitted under the terms of any passivity
or anti-association commitment, as such commitment may be amended from time to time, given by such
Investor to the Federal Reserve in connection with such Investor’s purchase of Common Shares);
provided that the Investor and its Standstill Affiliates shall not be considered a “group” for the
purposes of this Section 5.2(c);

          (d) bring any action or otherwise act to contest the validity of this Section 5.2 (provided
that neither the Investor nor any of its Standstill Affiliates shall be restricted from contesting
the applicability of this Section 5.2 to the Investor or any of its Standstill Affiliates under any
particular circumstance) or seek a release of the restrictions contained herein, or make a request
to amend or waive any provision of this Section 5.2;

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          (e) enter into or agree, offer, propose or seek (whether publicly or otherwise) to enter into
any acquisition transaction, merger or other business combination relating to all or part of the
Company or any of the Company Subsidiaries or any acquisition transaction for all or part of the
assets of the Company or any Company Subsidiary or any of their respective businesses; or

          (f) publicly disclose any intention, plan or arrangement inconsistent with any of the
foregoing or take any action that would reasonably be expected to require the Company to make a
public announcement regarding the possibility of any of the events described in clauses (a) through
(e) above;

provided, nothing in this Section 5.2 shall prevent the Investor or its Standstill Affiliates from
(i) voting any Voting Securities then Beneficially Owned by the Investor or its Standstill
Affiliates in any manner or (ii) having private conversations with members of management or the
Board of Directors of the Company regarding the policies, affairs or strategy of the Company or any
Company Subsidiary; provided, further, that nothing in clauses (b), (c) or (e) of this Section 5.2
shall apply to the Board Representative or Observer solely in his or her capacity as a director or
observer (as applicable) of the Company or the Bank.

     For purposes of this Agreement, “Voting Securities” shall mean at any time shares of any class
of capital stock of the Company that are then entitled to vote generally in the election of
directors.

     Notwithstanding the foregoing, the parties hereto agree that nothing in this Section 5.2 shall
apply to any portfolio company with respect to which the Investor is not the party exercising
control over the decision to purchase Voting Securities or to vote such Voting Securities; provided
that the Investor does not provide to such entity any nonpublic information concerning the Company
or any Company Subsidiary and such portfolio company is not acting at the request or direction of
or in coordination with the Investor; and provided, further, that ownership of such shares is not
attributed to the Investor under the BHC Act and the rules and regulations promulgated thereunder
or any written interpretation of the foregoing by the staff of the Board of Governors of the
Federal Reserve System (the “Federal Reserve”) that has not been rescinded.

     Notwithstanding the foregoing restrictions, if, at any time, (i) there occurs a Change in
Control or (ii) any person (other than an Investor or any of its Standstill Affiliates) shall have
commenced and not withdrawn a bona fide public tender or exchange offer which if consummated would
result in a Change in Control, then the limitations set forth in this Section 5.2 (other than in
Section 5.2(a)) shall not be applicable to the Investor for so long as the conditions described in
this paragraph continue.

     For purposes of this Agreement,

     “Change in Control” means, with respect to the Company, the occurrence of any one of the
following events:

     (1) any person is or becomes a Beneficial Owner (other than the Investor and its
Affiliates), directly or indirectly, of 50% or more of the aggregate number of the

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Voting Securities; provided, however, that the event described in this clause (1) will
not be deemed a Change in Control by virtue of any holdings or acquisitions: (i) by the
Company or any of its Subsidiaries, (ii) by any employee benefit plan (or related trust)
sponsored or maintained by the Company or any of its subsidiaries; provided that such
holdings or acquisitions by any such plan (other than any plan maintained under 401(k) of
the Code) do not exceed 50% of the then outstanding Voting Securities, (iii) by any
underwriter temporarily holding securities pursuant to an offering of such securities, or
(iv) pursuant to a Non-Qualifying Transaction;

     (2) the event described in clause (1) above in this definition of “Change in Control”
(substituting all references to 50% in such clause with “24.9%” but excluding Castle Creek
Capital Partners IV, LP and the aggregate holdings of each of Stadium Capital Partners, L.P.
and Stadium Capital Qualified Partners, L.P.), and in connection with such event,
individuals who, on the date of this Agreement, constitute the Board of Directors (the
“Incumbent Directors”) cease for any reason to constitute at least a majority of the Board
of Directors; provided, that any person becoming a director subsequent to the date of this
Agreement whose election or nomination for election was approved by a vote of at least
two-thirds of the Incumbent Directors then on the Board of Directors (either by a specific
vote or by approval of the proxy statement of the relevant party in which such person is
named as a nominee for director, without written objection to such nomination) shall be an
Incumbent Director (except that no individuals who were not directors at the time any
agreement or understanding with respect to any Business Combination or contested election is
reached shall be treated as Incumbent Directors for the purposes of clause (3) below with
respect to such Business Combination or this paragraph in the case of a contested election);
provided, further, that each Board Representative appointed under any of the Transaction
Documents will be treated as an Incumbent Director even if the person designated to be such
Board Representative should change;

     (3) the consummation of a merger, consolidation, statutory share exchange, or similar
transaction that requires adoption by the Company’s shareholders (a “Business Combination”),
unless immediately following such Business Combination: (x) more than 50% of the total
voting power of the corporation resulting from such Business Combination (the “Surviving
Corporation”), or, if applicable, the ultimate parent corporation that directly or
indirectly has Beneficial Ownership of 100% of the voting securities eligible to elect
directors of the Surviving Corporation (the “Parent Corporation”), is represented by Voting
Securities that were outstanding immediately before such Business Combination (or, if
applicable, is represented by shares into which such Voting Securities were converted
pursuant to such Business Combination), and (y) at least a majority of the members of the
board of directors of the Parent Corporation (or, if there is no Parent Corporation, the
Surviving Corporation) following the consummation of the Business Combination were Incumbent
Directors at the time the Company’s Board of Directors approved the execution of the initial
agreement providing for such Business Combination (any Business Combination which satisfies
all of the criteria specified in (x) and (y) above will be deemed a “Non-Qualifying
Transaction”);

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     (4) the shareholders of the Company approve a plan of liquidation or dissolution of the
Company or a sale of all or substantially all of the Company’s assets; or

     (5) the Company has entered into a definitive agreement, the consummation of which
would result in the occurrence of any of the events described in clauses (1) through (4) of
this definition above.

     5.3 Compliance with Laws. Notwithstanding any other provision of this Article V, the Investor covenants that the
Securities may be disposed of only pursuant to an effective registration statement under, and in
compliance with the requirements of, the Securities Act, or pursuant to an available exemption
from, or in a transaction not subject to, the registration requirements of the Securities Act, and
in compliance with any applicable state, federal or foreign securities laws. In connection with
any transfer of the Purchased Shares other than (i) pursuant to an effective registration
statement, (ii) to the Company or (iii) pursuant to Rule 144 promulgated under the Securities Act
(provided that the transferor provides the Company with reasonable assurances (in the form of a
customary seller representation letter and, if applicable a customary broker representation letter)
that such securities may be sold pursuant to such rule), the Company may require the transferor
thereof to provide to the Company and the Company’s transfer agent, at the transferor’s expense, an
opinion of counsel selected by the transferor and reasonably acceptable to the Company and the
Company’s transfer agent, the form and substance of which opinion shall be reasonably satisfactory
to the Company and such transfer agent, to the effect that such transfer does not require
registration of such Securities under the Securities Act. As a condition of transfer (other than
pursuant to clauses (i), (ii) or (iii) of the preceding sentence), any such transferee shall agree
in writing to be bound by the terms of this Agreement and, except as otherwise set forth in this
Agreement, shall have the rights of the Investor under this Agreement with respect to such
transferred Securities.

     5.4 Legend.

          (a) The Investor agrees that all certificates or other instruments representing the Securities
(which, for purposes of this Section 5.4, shall include any Common Shares issuable upon exercise of
the Warrants) will bear a legend substantially to the following effect:

“THE SECURITIES REPRESENTED BY THIS INSTRUMENT HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED, OR SECURITIES LAWS OF ANY STATE AND MAY NOT BE
TRANSFERRED, SOLD OR OTHERWISE DISPOSED OF EXCEPT WHILE A REGISTRATION STATEMENT
RELATING THERETO IS IN EFFECT UNDER SUCH ACT AND APPLICABLE STATE SECURITIES LAWS OR
PURSUANT TO AN EXEMPTION FROM REGISTRATION UNDER SUCH ACT OR SUCH LAWS.”

          (b) The legend set forth in Section 5.4(a) above shall be removed and the Company shall issue
to the Investor a certificate without such legend or any other legend, or by electronic delivery at
the applicable balance account at the Depository Trust Company (“DTC”), if (i) such Securities are
registered for resale under the Securities Act (provided that, if the Investor is selling pursuant
to an effective registration statement filed by the Company in

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accordance with Section 5.9 hereof, the Investor agrees to sell such shares only during such
time that such registration statement is effective and not withdrawn or suspended, and only as
permitted by such registration statement), (ii) such Securities are sold or transferred pursuant to
Rule 144 (if the transferor is not an Affiliate of the Company), or (iii) such Securities are
eligible for sale under Rule 144, without the requirement for the Company to be in compliance with
the current public information requirement under Rule 144(c)(1) (or Rule 144(i)(2), if applicable)
as to such securities and without volume or manner-of-sale restrictions. Following the earlier of
(i) the effective date of the Shelf Registration Statement (as defined in Section 5.9 below) (the “Effective Date”) or (ii) Rule 144 becoming available for the resale of Securities, without the
requirement for the Company to be in compliance with the current public information requirement
under Rule 144(c)(1) (or Rule 144(i)(2), if applicable) as to such securities and without volume or
manner-of-sale restrictions, the Company shall deliver to its transfer agent irrevocable
instructions that such transfer agent shall reissue a certificate representing the applicable
Securities without legend upon receipt by such transfer agent of the legended certificates for such
Securities. Any fees (with respect to the transfer agent or otherwise) associated with the removal
of such legend shall be borne by the Company. Following the Effective Date, or at such earlier time
as a legend is no longer required for any Securities, the Company will no later than three (3)
trading days following the delivery by an Investor to the Company or its transfer agent (with
notice to the Company) of a legended certificate representing such Securities (endorsed or with
stock powers attached, signatures guaranteed, and otherwise in form necessary to effect the
reissuance and/or transfer) and a representation letter to the extent required by Section 5.3 (such
third trading day, the “Legend Removal Date”), deliver or cause to be delivered to such Investor a
certificate representing such Purchased Shares that is free from all restrictive and other legends.
The Company may not make any notation on its records or give instructions to the transfer agent
that enlarge the restrictions on transfer set forth in this Section. Certificates for Securities
subject to legend removal hereunder may be transmitted by the transfer agent to the Investor by
crediting the account of the Investor’s prime broker with DTC as directed by the Investor.

          (c) If the Company shall fail for any reason or for no reason to issue to the Investor
unlegended certificates by the Legend Removal Date, then, in addition to all other remedies
available to the Investor, if on or after the trading day immediately following such three (3)
trading day period, the Investor purchases, or a broker through whom the Investor has sold shares
of Common Stock (a “Buy-In Broker”) purchases (in an open market transaction or otherwise) shares
of Common Stock to deliver in satisfaction of such sale in lieu of shares of Common Stock the
Investor anticipated receiving from the Company without any restrictive legend (a “Buy-In”), then
the Company shall, within three (3) business days after the Investor’s request, honor its
obligation to deliver to such Investor a certificate or certificates without restrictive legends
representing such shares of Common Stock and pay cash to the Investor in an amount equal to the
excess (if any) of the Investor’s or Buy-In Broker’s total purchase price (including brokerage
commissions, if any) for the shares of Common Stock so purchased over the product of (i) such
number of shares of Common Stock, times (ii) the closing bid price on the Legend Removal Date.

     5.5 NASDAQ Listing; Reverse Stock Split. Within one year after the Closing Date, the Company shall cause to be filed an application
with The NASDAQ Stock Market LLC to list the Common Stock on the NASDAQ Capital Market. The
Company will use its reasonable best

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efforts to cause the Common Stock to be listed on the NASDAQ Capital Market as soon as
practicable after filing such application. In connection with applying to list the Common Stock on
the NASDAQ Capital Market, the Company will use commercially reasonable efforts to cause to be
effected a reverse stock split (including any shareholder approvals in connection therewith), at a
ratio sufficient to satisfy the minimum bid price requirements for listing the Common Stock on the
NASDAQ Capital Market after giving effect to such stock split and in any event at a ratio of not
less than one-for-five.

     5.6 [RESERVED].

     5.7 Certain Transactions.

          (a) Prior to the Closing, notwithstanding anything in this Agreement to the contrary, the
Company shall not directly or indirectly effect or cause to be effected any transaction with a
third party that would reasonably be expected to result in a Change in Control unless such third
party shall have provided prior assurance in writing to the Investor (in a form that is reasonably
satisfactory to the Investor) that the terms of this Agreement shall be fully performed (i) by the
Company or (ii) by such third party if it is the successor of the Company or if the Company is its
direct or indirect subsidiary. For the avoidance of doubt, it is understood and agreed that, in the
event that a Change in Control occurs on or prior to the Closing, the Investor shall maintain the
right under this Agreement to acquire, pursuant to the terms and conditions of this Agreement, the
Securities (or such other securities or property (including cash) into which the Securities may
have become exchangeable as a result of such Change in Control), as if the Closing had occurred
immediately prior to such Change in Control. For the avoidance of doubt, nothing in this Section
5.7(a) is intended to or shall limit in any way the Investor closing condition contained in Section
1.2(b).

          (b) In the event that, at or prior to Closing, (1) the number of shares of Common Stock or
securities convertible or exchangeable into or exercisable for shares of Common Stock issued and
outstanding is changed as a result of any reclassification, stock split (including reverse split),
stock dividend or distribution (including any dividend or distribution of securities convertible or
exchangeable into or exercisable for shares of Common Stock), merger, tender or exchange offer or
other similar transaction, or (2) the Company fixes a record date that is at or prior to the
applicable Closing Date for the payment of any non-stock dividend or distribution on the Common
Stock, then the number of shares of Common Stock to be issued to the Investor at the Closing under
this Agreement, together with the applicable implied per share price and the shares of Common Stock
to be issued to Investor at the Closing under this Agreement shall be equitably substituted with
shares of other stock or securities or property (including cash), in each case, to provide Investor
with substantially the same economic benefit from this Agreement as the Investor had prior to the
applicable transaction. Notwithstanding anything in this Agreement to the contrary, in no event
shall the Purchase Price or any component thereof, or the aggregate percentage of shares to be
purchased by the Investor or any other person, be changed by the foregoing.

          (c) Notwithstanding anything in the foregoing, the provisions of Section 5.7(b) shall not be
triggered by the transactions contemplated by the Transaction Documents.

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     5.8 Indemnity.

          (a) The Company agrees to indemnify and hold harmless the Investor and its Affiliates and each
of their respective officers, directors, direct or indirect partners or members, employees and
agents, and each person who controls the Investor within the meaning of the Exchange Act and the
rules and regulations promulgated thereunder, to the fullest extent lawful, from and against any
and all actions, suits, claims, proceedings, costs, losses, liabilities, damages, expenses
(including attorneys’ fees and disbursements), amounts paid in settlement and other costs
(collectively, “Losses”) arising out of or resulting from (1) any inaccuracy in or breach of the
Company’s representations or warranties contained in this Agreement, (2) the Company’s breach of
agreements or covenants made by the Company in this Agreement or (3) any Losses arising out of or
resulting from any legal, administrative or other proceedings instituted by any Governmental
Entity, shareholder of the Company or any other person (other than the Investor and his Affiliates
and the Company and the Company Subsidiaries) arising out of the transactions contemplated by this
Agreement and the terms of the Securities (other than any Losses attributable to the acts, errors
or omissions on the part of the Investor, but not including the transactions contemplated hereby).

          (b) [RESERVED]

          (c) A party entitled to indemnification hereunder (each, an “Indemnified Party”) shall give
written notice to the party indemnifying it (the “Indemnifying Party”) of any claim with respect to
which it seeks indemnification promptly after the discovery by such Indemnified Party of any
matters giving rise to a claim for indemnification; provided that the failure of any Indemnified
Party to give notice as provided herein shall not relieve the Indemnifying Party of its obligations
under this Section 5.8 unless and to the extent that the Indemnifying Party shall have been
actually prejudiced by the failure of such Indemnified Party to so notify such party. Such notice
shall describe in reasonable detail such claim to the extent known by the Indemnified Party. In
case any such action, suit, claim or proceeding is brought against an Indemnified Party, the
Indemnified Party shall be entitled to hire, at the cost and expense of the Indemnifying Party
counsel and conduct the defense thereof; provided, however, that the Indemnifying Party shall only
be liable for the legal fees and expenses of one law firm for all Indemnified Parties, taken
together with regard to any single action or group of related actions, upon agreement by the
Indemnified Parties and the Indemnifying Parties. If the Indemnifying Party assumes the defense of
any claim, all Indemnified Parties shall thereafter deliver to the Indemnifying Party copies of all
notices and documents (including court papers) received by the Indemnified Party relating to the
claim, and any Indemnified Party shall cooperate in the defense or prosecution of such claim. Such
cooperation shall include the retention and (upon the Indemnifying Party’s request) the provision
to the Indemnifying Party of records and information that are reasonably relevant to such claim,
and making employees available on a mutually convenient basis to provide additional information and
explanation of any material provided hereunder. The Indemnifying Party shall not be liable for any
settlement of any action, suit, claim or proceeding effected without its written consent; provided,
however, that the Indemnifying Party shall not unreasonably withhold, delay or condition its
consent. The Indemnifying Party further agrees that it will not, without the Indemnified Party’s
prior written consent, settle or compromise any claim or consent to entry of any judgment in
respect thereof in any pending or threatened action, suit, claim or proceeding in respect of which
indemnification

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has been sought hereunder unless such settlement or compromise (A) includes an unconditional
release of such Indemnified Party from all liability arising out of such action, suit, claim or
proceeding, (B) provides solely for the payment of money damages and not any injunctive or
equitable relief or criminal penalties and (C) does not create any financial or other obligation on
the part of an Indemnified Party which would not be indemnified in full by the Indemnifying Party.

          (d) For purposes of the indemnity contained in Section 5.8(a)(1), all qualifications and
limitations set forth in the Company’s representations and warranties as to “materiality,” “Material Adverse Effect” and words of similar import, shall be disregarded in determining whether
there shall have been any inaccuracy in or breach of any representations and warranties in this
Agreement.

          (e) The Company shall not be required to indemnify the Indemnified Parties pursuant to Section
5.8(a)(1), disregarding all qualifications or limitations set forth in such representation and
warranties other than Section 2.2(j)(i) as to “materiality,” “Material Adverse Effect” and words of
similar import, (1) with respect to any claim for indemnification if the amount of Losses with
respect to such claim are less than $25,000 (any claim involving Losses less than such amount being
referred to as a “De Minimis Claim”) and (2) unless and until the aggregate amount of all Losses
incurred with respect to all claims (other than De Minimis Claims) pursuant to Section 5.8(a)(1)
exceed 1% of the Purchase Price (the “Threshold Amount”), in which event the Company shall be
responsible for the total amount of such Losses incurred without regard to the Threshold Amount.

          (f) The obligations of the Indemnifying Party under this Section 5.8 shall survive the
transfer of the Securities issued pursuant to this Agreement, the exercise of the Warrants or the
Closing or termination of this Agreement; provided that in the event of any transfer of the
Securities to a third party that is not an Affiliate of the transferor in any transaction other
than a negotiated private sale of Securities to an “accredited investor” (as defined in Rule 501
under the Securities Act), the Indemnifying Party shall have no obligations under this Section 5.8
to such transferee; and provided further that in the event of any transfer of the Securities to a
third party that is not an Affiliate of the transferor in a negotiated private sale of Securities
to an “accredited investor” (as defined in Rule 501 under the Securities Act), the transferor may
assign the Indemnifying Party’s obligations under this Section 5.8 to such transferee. The
indemnity provided for in this Section 5.8 shall be the sole and exclusive monetary remedy of
Indemnified Parties after the Closing for any inaccuracy of any of the representations and
warranties contained in this Agreement or any other breach of any covenant or agreement contained
in this Agreement; provided that nothing herein shall limit in any way any such parties’ remedies
in respect of fraud, intentional misrepresentation or omission or intentional misconduct by the
other party in connection with the transactions contemplated hereby. No party to this Agreement
(or any of its Affiliates) shall, in any event, be liable or otherwise responsible to any other
party (or any of its Affiliates) for any consequential or punitive damages of such other party (or
any of its Affiliates) arising out of or relating to this Agreement or the performance or breach
hereof. The indemnification rights contained in this Section 5.8 are not limited or deemed waived
by any investigation or knowledge by the Indemnified Party prior to or after the date hereof.

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          (g) Any indemnification payments pursuant to this Section 5.8 shall be treated as an
adjustment to the Purchase Price for the Purchased Shares for U.S. federal income and applicable
state and local Tax purposes, unless a different treatment is required by applicable law.

          (h) No investigation by the Investor, whether prior to or after the date of this Agreement,
shall limit any Indemnified Party’s exercise of any right hereunder or be deemed to be a waiver of
any such right.

     5.9 Registration Rights.

          (a) Registration.

          (1) Subject to the terms and conditions of this Agreement, the Company covenants and
agrees that as promptly as practicable after the Closing Date (and in any event no later
than the date that is 60 days after the Closing Date (the “Registration Deadline”)), the
Company shall have prepared and filed with the SEC a Shelf Registration Statement (defined
below) covering the resale of all Registrable Securities (or, if permitted by the rules of
the SEC, otherwise designate an existing Shelf Registration Statement filed with the SEC to
cover the Registrable Securities), and, to the extent the Shelf Registration Statement has
not theretofore been declared effective, the Company shall use reasonable best efforts to
cause such Shelf Registration Statement to be declared or become effective not later than
the Effectiveness Deadline and to keep such Shelf Registration Statement continuously
effective and in compliance with the Securities Act and usable for resale of such
Registrable Securities for a period from the date of its initial effectiveness until such
time as there are no Registrable Securities remaining (including by re-filing such Shelf
Registration Statement (or a new Shelf Registration Statement) if the initial Shelf
Registration Statement expires) (the “Effectiveness Period”). Notwithstanding the
registration obligations set forth in this Section 5.9(a)(1), in the event that all of the
Registrable Securities cannot, as a result of the application of Rule 415, be registered for
resale as a secondary offering on a single registration statement, the Company agrees to
promptly (i) inform each of the Holders thereof and use its commercially reasonable efforts
to file amendments to the initial Shelf Registration Statement as required by the SEC and/or
(ii) withdraw the initial Shelf Registration Statement and file a new Shelf Registration
Statement, in either case covering the maximum number of Registrable Securities permitted to
be registered by the SEC, on such form available to the Company to register for resale the
Registrable Securities as a secondary offering; provided, however, that prior to filing such
amendment or new Shelf Registration Statement, the Company shall be obligated to use its
commercially reasonable efforts to advocate with the SEC for the registration of all of the
Registrable Securities in accordance with the SEC Guidance, including Compliance and
Disclosure Interpretation 612.09. Notwithstanding any other provision of this Agreement and
subject to the payment of Liquidated Damages in Section 5.9(m), if any SEC Guidance sets
forth a limitation of the number of Registrable Securities or other shares of Common Stock
permitted to be registered on a particular Shelf Registration Statement as a secondary
offering (and notwithstanding that the Company used commercially reasonable efforts to
advocate with the SEC for the registration of all or a

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greater number of Registrable Securities), the number of Registrable Securities or
other shares of Common Stock to be registered on such Shelf Registration Statement will be
reduced as follows: first, the Company shall reduce or eliminate the shares of Common Stock
to be included by any person other than a Holder; second, the Company shall reduce or
eliminate any shares of Common Stock to be included by any Affiliate (which shall not
include Investor or its Affiliates) of the Company; and third, the Company shall reduce the
number of Registrable Securities to be included by all Holders on a pro rata basis based on
the total number of unregistered Registrable Securities held by such Holders, subject to a
determination by the SEC that certain Holders must be reduced before other Holders based on
the number of Registrable Securities held by such Holders. In the event the Company amends
the initial Shelf Registration Statement or files a new Shelf Registration Statement, as the
case may be, under clauses (i) or (ii) above, the Company will use its commercially
reasonable efforts to file with the SEC, as promptly as allowed by the SEC or SEC Guidance
provided to the Company or to registrants of securities in general, one or more registration
statements on such form available to the Company to register for resale those Registrable
Securities that were not registered for resale on the initial Shelf Registration Statement,
as amended, or the new Shelf Registration Statement. No Holder shall be named as an
“underwriter” in any Registration Statement without such Holder’s prior written consent.

          (2) Any registration pursuant to this Section 5.9(a) shall be effected by means of a
shelf registration under the Securities Act on Form S-1 (or, if the Company is then
eligible, on Form S-3) (a “Shelf Registration Statement”) in accordance with the methods and
distribution set forth in the Shelf Registration Statement and Rule 415. If the Investor or
any other Holder of Registrable Securities to whom the registration rights conferred by this
Agreement have been transferred in compliance with this Agreement intends to distribute any
Registrable Securities by means of an underwritten offering it shall promptly so advise the
Company and the Company shall take all reasonable steps to facilitate such distribution,
including the actions required pursuant to Section 5.9(c); provided, that the Company shall
not be required to facilitate an underwritten offering of Registrable Securities unless the
expected gross proceeds from such offering exceed $1,000,000. The lead underwriters in any
such distribution shall be selected by the holders of a majority of the Registrable
Securities to be distributed and be reasonably acceptable to the Company.

          (3) The Company shall not be required to effect a registration (including a resale of
Registrable Securities from an effective Shelf Registration Statement) or an underwritten
offering pursuant to this Section 5.9(a): (i) with respect to securities that are not
Registrable Securities; (ii) during any Scheduled Black-out Period, with respect to any
resale of Registrable Securities from an effective Shelf Registration Statement by any
Investor who, at such time, has appointed a Board Representative or Observer pursuant to
Section 5.10; or (iii) if the Company has notified the Investor and all other Holders that
in the good faith judgment of the Board of Directors, it would be materially detrimental to
the Company or its security holders for such registration or underwritten offering to be
effected at such time, in which event the Company shall have the right to defer such
registration or underwritten offering for a period of not more than 45 days after receipt of
the request of the Investor or any other Holder; provided that such

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right to delay a registration or underwritten offering shall be exercised by the
Company (A) only if the Company has generally exercised (or is concurrently exercising)
similar black-out rights against all holders of similar securities that have registration
rights, (B) not more than once in any 12-month period and (C) so long as the total number of
days of any delays hereunder and the total number of days of any suspension under Section
5.9(d) do not exceed, in the aggregate, 60 days in any 12-month period. The Company shall
provide the Investor written notice of any Scheduled Black-out Period, if applicable to such
Investor, no later than 7 business days prior to the commencement of such Scheduled
Black-out Period.

          (4) After the Closing Date, whenever the Company proposes to register any of its equity
securities, other than a registration pursuant to Section 5.9(a)(1), a Special Registration
or securities registered pursuant to Section 5.19 hereof, and the registration form to be
filed may be used for the registration or qualification for distribution of Registrable
Securities, the Company will give prompt written notice to the Investor and all other
Holders of its intention to effect such a registration (but in no event less than 15 days
prior to the anticipated filing date) and (subject to clause (6) below) will include in such
registration all Registrable Securities with respect to which the Company has received
written requests for inclusion therein within ten business days after the date of the
Company’s notice (a “Piggyback Registration”). Any such person that has made such a written
request may withdraw its Registrable Securities from such Piggyback Registration by giving
written notice to the Company and the managing underwriter, if any, on or before the fifth
day prior to the planned effective date of such Piggyback Registration. The Company may
terminate or withdraw any registration under this Section 5.9(a)(4) prior to the
effectiveness of such registration, whether or not the Investor or any other Holders have
elected to include Registrable Securities in such registration. “Special Registration”
means the registration of (i) equity securities and/or options or other rights in respect
thereof solely registered on Form S-4 or Form S-8 (or successor form) or (ii) shares of
equity securities and/or options or other rights in respect thereof to be offered to
directors, members of management, employees, consultants, customers, lenders or vendors of
the Company or Company Subsidiaries or in connection with dividend reinvestment plans.

          (5) If the registration referred to in Section 5.9(a)(4) is proposed to be
underwritten, the Company will so advise the Investor and all other Holders as a part of the
written notice given pursuant to Section 5.9(a)(4). In such event, the right of the
Investor and all other Holders to registration pursuant to this Section 5.9(a) will be
conditioned upon such persons’ participation in such underwriting and the inclusion of such
persons’ Registrable Securities in the underwriting, and each such person will (together
with the Company and the other persons distributing their securities through such
underwriting) enter into an underwriting agreement in customary form with the underwriter or
underwriters selected for such underwriting by the Company. If any participating person
disapproves of the terms of the underwriting, such person may elect to withdraw therefrom by
written notice to the Company, the managing underwriter and the Investor.

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          (6) Except for certain registration rights granted to the U.S. Treasury in connection
with the Treasury’s investment in the Company under the CPP, the Company represents and
warrants that it has not granted to any holder of its securities and agrees that it shall
not grant “piggyback” registration rights to one or more third parties to include their
securities in the Shelf Registration Statement or in an underwritten offering under the
Shelf Registration Statement pursuant to Section 5.9(a)(2). If a Piggyback Registration
under Section 5.9(a)(4) relates to an underwritten primary offering on behalf of the
Company, and in either case the managing underwriters advise the Company that in their
reasonable opinion the number of securities requested to be included in such offering
exceeds the number which can be sold without adversely affecting the marketability of such
offering (including an adverse effect on the per share offering price), the Company will
include in such registration or prospectus only such number of securities that in the
reasonable opinion of such underwriters can be sold without adversely affecting the
marketability of the offering (including an adverse effect on the per share offering price),
which securities will be so included in the following order of priority: (i) first, in the
case of a Piggyback Registration under Section 5.9(a)(4), the securities the Company
proposes to sell, (ii) second, Registrable Securities of the Investor and all other Holders
who have requested registration of Registrable Securities pursuant to Section 5.9(a)(2) or
5.9(a)(4), as applicable, pro rata on the basis of the aggregate number of such securities
or shares owned by each such person and (iii) third, any other securities of the Company
that have been requested to be so included, subject to the terms of this Agreement.

          (7) In the event that Form S-3 is not available for the registration of the resale of
Registrable Securities under Section 5.9(a)(1), the Company shall (i) register the resale of
the Registrable Securities on another appropriate form, including Form S-1 and (ii)
undertake to register the Registrable Securities on Form S-3 promptly after such form is
available, provided that the Company shall maintain the effectiveness of the Shelf
Registration Statement then in effect until such time as a Shelf Registration Statement on
Form S-3 covering the Registrable Securities has been declared effective by the SEC.

          (b) Expenses of Registration. All Registration Expenses incurred in connection with any registration, qualification or
compliance hereunder shall be borne by the Company. Without limiting the foregoing, the Company
shall bear its internal expenses (including all salaries and expenses of their officers and
employees performing legal, accounting or other duties) and expenses of any person, including
special experts, retained by the Company. The Company shall also reimburse the Investor for the
reasonable fees and disbursements of Holders’ Counsel in an amount not to exceed $50,000 per
registration. All Selling Expenses incurred in connection with any registrations hereunder shall be
borne by the holders of the securities so registered pro rata on the basis of the aggregate
offering or sale price of the securities so registered.

          (c) Obligations of the Company. The Company shall use its reasonable best efforts for so long as there are Registrable
Securities outstanding, to take such actions as are under its control to remain a well-known
seasoned issuer (as defined in Rule 405 under the Securities Act) if it becomes eligible for such
status in the future (and not become an ineligible issuer (as defined in Rule 405 under the
Securities Act)). In addition, whenever required to

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effect the registration of any Registrable Securities or facilitate the distribution of
Registrable Securities pursuant to an effective Shelf Registration Statement, the Company shall, as
expeditiously as reasonably practicable:

          (1) By 9:30 a.m., New York City time on the first business day after the Effective Date
of a Shelf Registration Statement, file a final prospectus with the SEC as required by Rule
424(b) under the Securities Act.

          (2) Provide to each Holder a copy of any disclosure regarding the plan of distribution
or the selling Holder, in each case, with respect to such Holder, at least three (3)
business days in advance of any filing with the SEC of any registration statement or any
amendment or supplement thereto that amends such information.

          (3) Prepare and file with the SEC a prospectus supplement with respect to a proposed
offering of Registrable Securities pursuant to an effective registration statement, subject
to this Section 5.9(c), and keep such registration statement effective or such prospectus
supplement current until the securities described therein are no longer Registrable
Securities.

          (4) Prepare and file with the SEC such amendments and supplements to the applicable
registration statement and the prospectus or prospectus supplement used in connection with
such registration statement as may be necessary to comply with the provisions of the
Securities Act with respect to the disposition of all securities covered by such
registration statement.

          (5) Furnish to the Holders and any underwriters such number of copies of the applicable
registration statement and each such amendment and supplement thereto (including in each
case all exhibits) and of a prospectus, including a preliminary prospectus, in conformity
with the requirements of the Securities Act, and such other documents as they may reasonably
request in order to facilitate the disposition of Registrable Securities owned or to be
distributed by them.

          (6) Use its reasonable best efforts to register and qualify the securities covered by
such registration statement under such other securities or blue sky laws of such
jurisdictions as shall be reasonably requested by the Holders or any managing
underwriter(s), to keep such registration or qualification in effect for so long as such
registration statement remains in effect, and to take any other action which may be
reasonably necessary to enable such seller to consummate the disposition in such
jurisdictions of the securities owned by such Holder; provided that the Company shall not be
required in connection therewith or as a condition thereto to qualify to do business or to
file a general consent to service of process in any such states or jurisdictions.

          (7) Notify each Holder of Registrable Securities at any time when a prospectus relating
thereto is required to be delivered under the Securities Act of the happening of any event
as a result of which the applicable prospectus, as then in effect, includes an untrue
statement of a material fact or omits to state a material fact required to be stated therein
or necessary to make the statements therein not misleading in light of

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the circumstances then existing (which notice shall not contain any material non-public
information).

          (8) Within one business day after such event, give written notice to the Holders (which
notice shall not contain any material non-public information):

          (i) when any registration statement filed pursuant to Section 5.9(a) or any
amendment thereto has been filed with the SEC (except for any amendment effected by
the filing of a document with the SEC pursuant to the Exchange Act) and when such
registration statement or any post-effective amendment thereto has become effective;

          (ii) of any request by the SEC for amendments or supplements to any
registration statement or the prospectus included therein or for additional
information;

          (iii) of the issuance by the SEC of any stop order suspending the effectiveness
of any registration statement or the initiation of any proceedings for that purpose;

          (iv) of the receipt by the Company or its legal counsel of any notification
with respect to the suspension of the qualification of the Common Stock for sale in
any jurisdiction or the initiation or threatening of any proceeding for such
purpose;

          (v) of the happening of any event that requires the Company to make changes in
any effective registration statement or the prospectus related to the registration
statement in order to make the statements therein not misleading (which notice shall
be accompanied by an instruction to suspend the use of the prospectus until the
requisite changes have been made); and

          (vi) if at any time the representations and warranties of the Company contained
in any underwriting agreement contemplated by Section 5.9(c)(12) cease to be true
and correct.

          (9) Use its reasonable best efforts to prevent the issuance or obtain the withdrawal of
any order suspending the effectiveness of any registration statement referred to in Section
5.9(c)(8)(iii) at the earliest practicable time.

          (10) Upon the occurrence of any event contemplated by Section 5.9(c)(7) or
5.9(c)(8)(v), promptly prepare a post-effective amendment to such registration statement or
a supplement to the related prospectus or file any other required document so that, as
thereafter delivered to the Holders and any underwriters, the prospectus will not contain an
untrue statement of a material fact or omit to state any material fact necessary to make the
statements therein, in light of the circumstances under which they were made, not
misleading.

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          (11) Use reasonable best efforts to procure the cooperation of the Company’s transfer
agent in settling any offering or sale of Registrable Securities, including with respect to
the transfer of physical stock certificates into book-entry form in accordance with any
procedures reasonably requested by the Holders or any managing underwriter(s).

          (12) If an underwritten offering is requested pursuant to Section 5.9(a)(2), enter into
an underwriting agreement in customary form, scope and substance and take all such other
actions reasonably requested by the Holders of a majority of the Registrable Securities
being sold in connection therewith or by the managing underwriter(s), if any, to expedite or
facilitate the underwritten disposition of such Registrable Securities, and in connection
therewith in any underwritten offering (including making members of management and
executives of the Company available to participate in “road shows,” similar sales events and
other marketing activities), (i) make such representations and warranties to the Holders
that are selling shareholders and the managing underwriter(s), if any, with respect to the
business of the Company and its subsidiaries, and the Shelf Registration Statement,
prospectus and documents, if any, incorporated or deemed to be incorporated by reference
therein, in each case, in customary form, substance and scope, and, if true, confirm the
same if and when requested, (ii) furnish the underwriters with opinions of counsel to the
Company, addressed to the managing underwriter(s), if any, covering the matters customarily
covered in such opinions requested in underwritten offerings, (iii) obtain “comfort” letters
from the independent certified public accountants of the Company (and, if necessary, any
other independent certified public accountants of any business acquired by the Company for
which financial statements and financial data are included in the Shelf Registration
Statement) who have certified the financial statements included in such Shelf Registration
Statement, addressed to each of the managing underwriter(s), if any, such letters to be in
customary form and covering matters of the type customarily covered in “comfort” letters,
(iv) if an underwriting agreement is entered into, the same shall contain indemnification
provisions and procedures customary in underwritten offerings, and (v) deliver such
documents and certificates as may be reasonably requested by the Holders of a majority of
the Registrable Securities being sold in connection therewith, their counsel and the
managing underwriter(s), if any, to evidence the continued validity of the representations
and warranties made pursuant to clause (i) above and to evidence compliance with any
customary conditions contained in the underwriting agreement or other agreement entered into
by the Company.

          (13) Make available for inspection by a representative of Holders that are selling
shareholders, the managing underwriter(s), if any, and any attorneys or accountants retained
by such Holders or managing underwriter(s), at the offices where normally kept, during
reasonable business hours, financial and other records, pertinent corporate documents and
properties of the Company, and cause the officers, directors and employees of the Company to
supply all information in each case reasonably requested (and of the type customarily
provided in connection with due diligence conducted in connection with a registered public
offering of securities) by any such representative, managing underwriter(s), attorney or
accountant in connection with such Shelf Registration Statement.

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          (14) Cause all such Registrable Securities to be listed on each securities exchange on
which similar securities issued by the Company are then listed or, if no similar securities
issued by the Company are then listed on any securities exchange, take all steps reasonably
necessary to effectuate the listing of the Registrable Securities on the NASDAQ Stock Market
within the timeframe contemplated in Section 5.5 hereof, including, but not limited to,
using commercially reasonable efforts to effect a reverse stock split (including any
shareholder approvals in connection therewith), at a ratio sufficient to satisfy the minimum
bid price requirements for listing the Common Stock on the NASDAQ Stock Market after giving
effect to such registration or distribution.

          (15) If requested by Holders of a majority of the Registrable Securities being
registered and/or sold in connection therewith, or the managing underwriter(s), if any,
promptly include in a prospectus supplement or amendment such information as the Holders of
a majority of the Registrable Securities being registered and/or sold in connection
therewith or managing underwriter(s), if any, may reasonably request in order to permit the
intended method of distribution of such securities and make all required filings of such
prospectus supplement or such amendment as soon as practicable after the Company has
received such request.

          (16) Timely provide to its security holders earning statements satisfying the
provisions of Section 11(a) of the Securities Act and Rule 158 thereunder.

          (d) Suspension of Sales. During any Scheduled Black-out Period (other than with respect to any resale of Registrable
Securities from an effective Shelf Registration Statement if the Investor, at such time, has not
appointed a Board Representative or Observer pursuant to this Agreement) and upon receipt of
written notice from the Company that a registration statement, prospectus or prospectus supplement
contains or may contain an untrue statement of a material fact or omits or may omit to state a
material fact required to be stated therein or necessary to make the statements therein not
misleading or that circumstances exist that make inadvisable use of such registration statement,
prospectus or prospectus supplement, each Holder of Registrable Securities shall forthwith
discontinue disposition of Registrable Securities until termination of such Scheduled Black-out
Period (if applicable) or until such Holder has received copies of a supplemented or amended
prospectus or prospectus supplement, or until such Holder is advised in writing by the Company that
the use of the prospectus and, if applicable, prospectus supplement may be resumed, and, if so
directed by the Company, such Holder shall deliver to the Company (at the Company’s expense) all
copies, other than permanent file copies then in such Holder’s possession, of the prospectus and,
if applicable, prospectus supplement covering such Registrable Securities current at the time of
receipt of such notice. Excluding, to the extent applicable to the Investor, Scheduled Black-out
Periods, the total number of days of any delays under Section 5.9(a)(3) and the total number of
days of any suspensions under this Section 5.9(d) shall not exceed, in the aggregate, 60 days in
any 12-month period (an “Allowable Suspension Period”).

          (e) Termination of Registration Rights. A Holder’s registration rights as to any securities held by such Holder (and its
Affiliates, partners, members and former members) shall not be available unless such securities are
Registrable Securities.

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          (f) Free Writing Prospectuses; Furnishing Information.

          (1) The Investor shall not use any “free writing prospectus” (as defined in Rule 405)
in connection with the sale of Registrable Securities without the prior written consent of
the Company.

          (2) It shall be a condition precedent to the obligations of the Company with respect to
the Investor and/or the selling Holders to take any action pursuant to Section 5.9(c) that
the Investor and/or the selling Holders and the underwriters, if any, shall furnish to the
Company such information regarding themselves, the Registrable Securities held by them and
the intended method of disposition of such securities as shall be required to effect the
registered offering of their Registrable Securities.

          (g) Indemnification.

          (1) The Company agrees to indemnify each Holder and, if a Holder is a person other than
an individual, such Holder’s officers, directors, employees, agents, representatives and
Affiliates, and each person, if any, that controls a Holder within the meaning of the
Securities Act (each, a “Holder Indemnitee”), against any and all Losses, joint or several,
arising out of or based upon any untrue statement or alleged untrue statement of, material
fact contained in any registration statement, including any preliminary prospectus or final
prospectus contained therein or any amendments or supplements thereto or any documents
incorporated therein by reference or contained in any “free writing prospectus” (as such
term is defined in Rule 405) prepared by the Company or authorized by it in writing for use
by such Holder (or any amendment or supplement thereto); or any omission or alleged omission
to state therein a material fact required to be stated therein or necessary to make the
statements therein, in light of the circumstances under which they were made, not
misleading; provided, that the Company shall not be liable to such Holder Indemnitee in any
such case to the extent that any such Loss arises out of or is based upon (i) an untrue
statement or omission of material fact made in such registration statement, including any
such preliminary prospectus or final prospectus contained therein or any such amendments or
supplements thereto or contained in any “free writing prospectus” (as such term is defined
in Rule 405) prepared by the Company or authorized by it in writing for use by such Holder
Indemnitee (or any amendment or supplement thereto), in reliance upon and in conformity with
information regarding such Holder Indemnitee or its plan of distribution or ownership
interests which was furnished in writing to the Company by such Holder Indemnitee expressly
for use in connection with such registration statement, including any such preliminary
prospectus or final prospectus contained therein or any such amendments or supplements
thereto, or (ii) offers or sales effected by or on behalf such Holder Indemnitee “by means
of” (as defined in Rule 159A) a “free writing prospectus” (as defined in Rule 405) that was
not authorized in writing by the Company.

          (2) In connection with any registration statement in which the Investor (or a Holder
who assumes the obligations of the Investor in accordance with Section 5.8(h) is
participating, such Investor (or such Holder) agrees to indemnify the Company and its
officers, directors, employees, agents, representatives and Affiliates

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(each, a “Company Indemnitee”), against any and all Losses, joint or several, arising out of or
based upon (i) an untrue statement or omission of a material fact made in any registration
statement, including any such preliminary prospectus or final prospectus contained therein
or any such amendments or supplements thereto or contained in any free writing prospectus
(as such term is defined in Rule 405) prepared by the Company or authorized by it in writing
for use by the Investor or such Holder (or any amendment or supplement thereto), in reliance
upon and in conformity with information regarding the Investor or such Holder or its plan of
distribution or ownership interests which was furnished in writing to the Company by the
Investor or such Holder expressly for use in connection with such registration statement,
including any such preliminary prospectus or final prospectus contained therein or any such
amendments or supplements thereto, or (ii) offers or sales effected by or on behalf of the
Investor or such Holder “by means of” (as defined in Rule 159A) a “free writing prospectus”
(as defined in Rule 405) that was not authorized in writing by the Company; provided that
the obligation to indemnify shall be individual, not joint and several, for the Investor and
each such Holder and shall be limited to the net amount of proceeds received by the Investor
or such Holder from the sale of Registrable Securities pursuant to such registration
statement.

          (3) If the indemnification provided for in Section 5.9(g)(1) or 4.9(g)(2) is
unavailable to a Holder Indemnitee or Company Indemnitee (each, an “Indemnitee”),
respectively, with respect to any Losses or is insufficient to hold the Indemnitee harmless
as contemplated therein, then the indemnifying party, in lieu of indemnifying such
Indemnitee, shall contribute to the amount paid or payable by such Indemnitee as a result of
such Losses in such proportion as is appropriate to reflect the relative fault of the
Indemnitee, on the one hand, and the indemnifying party, on the other hand, in connection
with the statements or omissions which resulted in such Losses as well as any other relevant
equitable considerations. The relative fault of the indemnifying party, on the one hand,
and of the Indemnitee, on the other hand, shall be determined by reference to, among other
factors, whether the untrue statement of a material fact or omission to state a material
fact relates to information supplied by the indemnifying party or by the Indemnitee and the
parties’ relative intent, knowledge, access to information and opportunity to correct or
prevent such statement or omission; the Company and each Holder agree that it would not be
just and equitable if contribution pursuant to this Section 5.9(g)(3) were determined by pro
rata allocation or by any other method of allocation that does not take account of the
equitable considerations referred to in Section 5.9(g)(1) and 5.9(g)(2). Notwithstanding
the provisions of this Section 5.9(g), no Holder shall be required to contribute, in the
aggregate, any amount in excess of the amount by which the net proceeds actually received by
such Holder from the sale of the Registrable Securities subject to the proceeding exceeds
the amount of any damages that such Holder has otherwise been required to pay by reason of
such untrue or alleged untrue statement or omission or alleged omission. No Indemnitee
guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the
Securities Act) shall be entitled to contribution from the indemnifying party if the
indemnifying party was not guilty of such fraudulent misrepresentation.

          (4) The indemnity and contribution agreements contained in this Section 5.9(g) are in
addition to any liability that the Company may have to the

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Indemnitees and are not in diminution or limitation of the indemnification provisions
under Section 5.8 of this Agreement.

          (h) Assignment of Registration Rights. The rights of the Investor to registration of Registrable Securities pursuant to Section
5.9(a) may be assigned by the Investor to a transferee or assignee of Registrable Securities to
which (i) there is transferred to such transferee no less than the lesser of (A) $1.0 million in
Registrable Securities and (B) all Registrable Securities held by the Investor, and (ii) such
transfer or assignment is permitted under the terms hereof; provided, however, that the transferee
shall have agreed in writing for the benefit of the Company to be bound by all of the obligations
of the Investor under Section 5.9 of this Agreement with respect to the transferred or assigned
Registrable Securities, and provided further, that the transferor shall, within ten days after such
transfer, furnish to the Company written notice of the name and address of such transferee or
assignee and the number and type of Registrable Securities that are being transferred or assigned.

          (i) Holdback. With respect to any underwritten offering of Registrable Securities by the Investor or
other Holders pursuant to Section 5.9, the Company agrees not to effect (other than in connection
with the Rights Offering, pursuant to such registration or pursuant to a Special Registration) any
public sale or distribution, or to file any Shelf Registration Statement (other than such
registration or a Special Registration) covering any of its equity securities, or any securities
convertible into or exchangeable or exercisable for such securities, during the period not to
exceed ten days prior and 60 days following the effective date of such offering or such longer
period up to 90 days as may be requested by the managing underwriter. The Company also agrees to
cause each of its directors and senior executive officers to execute and deliver customary lockup
agreements in such form and for such time period up to 90 days as may be requested by the managing
underwriter.

          (j) Rule 144; Rule 144A Reporting. With a view to making available to the Investor and Holders the benefits of certain rules
and regulations of the SEC which may permit the sale of the Registrable Securities to the public
without registration, the Company agrees to use its reasonable best efforts to:

          (1) make and keep adequate and current public information available, as those terms are
understood and defined in Rule 144(c)(1) or any similar or analogous rule promulgated under
the Securities Act, at all times after the effective date of this Agreement;

          (2) file with the SEC, in a timely manner, all reports and other documents required of
the Company under the Exchange Act, and if at any time the Company is not required to file
such reports, make available, upon the request of any Holder, such information necessary to
permit sales pursuant to Rule 144A (including the information required by Rule 144A(d)(4)
and the Securities Act);

          (3) so long as the Investor or a Holder owns any Registrable Securities, furnish to the
Investor or such Holder forthwith upon request: a written statement by the Company as to its
compliance with the reporting requirements of Rule 144 under the Securities Act, and of the
Exchange Act; a copy of the most recent annual

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or quarterly report of the Company; and such other reports and documents as the
Investor or Holder may reasonably request in availing itself of any rule or regulation of
the SEC allowing it to sell any such securities without registration; and

          (4) take such further action as any Holder may reasonably request, all to the extent
required from time to time to enable such Holder to sell Registrable Securities without
registration under the Securities Act.

          (k) As used in this Section 5.9, the following terms shall have the following respective
meanings:

          (1) “Effectiveness Deadline” means, with respect to the initial Shelf Registration
Statement required to be filed pursuant to Section 5.9(a), the earlier of (i) the 120th
calendar day following the Closing Date and (ii) the 5th business day after the date the
Company is notified (orally or in writing, whichever is earlier) by the SEC that such Shelf
Registration Statement will not be “reviewed” or will not be subject to further review;
provided, that if the Effectiveness Deadline falls on a Saturday, Sunday or other day that
the SEC is closed for business, the Effectiveness Deadline shall be extended to the next
business day on which the SEC is open for business.

          (2) “Holder” means the Investor and any other holder of Registrable Securities to whom
the registration rights conferred by this Agreement have been transferred in compliance with
Section 5.9(h) hereof.

          (3) “Holders’ Counsel” means one counsel for the selling Holders chosen by Holders
holding a majority interest in the Registrable Securities being registered.

          (4) “Register,” “registered,” and “registration” shall refer to a registration effected
by preparing and (a) filing a registration statement in compliance with the Securities Act
and applicable rules and regulations thereunder, and the declaration or ordering of
effectiveness of such registration statement or (b) filing a prospectus and/or prospectus
supplement in respect of an appropriate effective registration statement pursuant to Rule
415 under the Securities Act.

          (5) “Registrable Securities” means (A) all Common Stock held by the Investor from time
to time, (B) all Warrants held by the Investor from time to time and (C) any equity
securities issued or issuable directly or indirectly with respect to the securities referred
to in the foregoing clauses (A) or (B) by way of conversion, exercise or exchange thereof or
stock dividend or stock split or in connection with a combination of shares,
recapitalization, reclassification, merger, amalgamation, arrangement, consolidation or
other reorganization, provided that, once issued, such securities will not be Registrable
Securities when (i) they are sold pursuant to an effective registration statement under the
Securities Act, (ii) they shall have ceased to be outstanding; (iii) with respect to any
transferee of the Common Stock who is not an Affiliate of the Investor or a Holder, they
shall be freely transferrable pursuant to Rule 144 under the Securities Act in the hand of
such transferee without any volume, holding period or other limitations;

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(including no requirement for the Company to be in compliance with the current public
information requirements under Rule 144(c)(1) (or Rule 144(i)(2), if applicable) or (iv)
they have been sold in a private transaction in which the transferor’s rights under this
Agreement are not assigned to the transferee of the securities. No Registrable Securities
may be registered under more than one registration statement at one time.

          (6) “Registration Expenses” means all expenses incurred by the Company in effecting any
registration pursuant to this Agreement (whether or not any registration or prospectus
becomes effective or final) or otherwise complying with its obligations under this Section
5.9, including all registration, filing and listing fees (including filings made with the
Financial Industry Regulatory Authority), printing expenses (including printing of
prospectuses and certificates for the Registrable Securities), the Company’s expenses for
messenger and delivery services and telephone, fees and disbursements of counsel for the
Company, blue sky fees and expenses, expenses incurred by the Company in connection with any
“road show,” and expenses of the Company’s independent accountants in connection with any
regular or special reviews or audits incident to or required by any such registration, but
shall not include the compensation of regular employees of the Company, which shall be paid
in any event by the Company, or Selling Expenses.

          (7) “Rule 144,” “Rule 144A,” “Rule 158,” “Rule 159A,” “Rule 405” and “Rule 415” mean,
in each case, such rule promulgated under the Securities Act (or any successor provision),
as the same shall be amended from time to time.

          (8) “Scheduled Black-out Period” means the period from and including the last day of a
fiscal quarter of the Company to and including the business day after the day on which the
Company publicly releases its earnings for such fiscal quarter.

          (9) “SEC Guidance” means (i) any publicly-available written or oral guidance, comments,
requirements or requests of the SEC staff and (ii) the Securities Act.

          (10) “Selling Expenses” means all discounts, selling commissions and stock transfer
taxes applicable to the sale of Registrable Securities and fees and disbursements of counsel
for any Holder (other than the fees and disbursements of Holders’ Counsel included in
Registration Expenses), other than up to $50,000 of fees and disbursements of Holders’
Counsel, which shall be reimbursed by the Company pursuant to Section 5.9(b).

          (l) At any time, any holder of Securities (including any Holder) may elect to forfeit its
rights set forth in this Section 5.9 from that date forward; provided, that a Holder forfeiting
such rights shall nonetheless be entitled to participate under Sections 5.9(a)(4)-(6) in any
Pending Underwritten Offering to the same extent that such Holder would have been entitled to if
the holder had not withdrawn; and provided, further, that no such forfeiture shall terminate a
Holder’s rights or obligations under Section 5.9(f) with respect to any prior registration or
Pending Underwritten Offering. “Pending Underwritten Offering” means, with respect to any Holder
forfeiting its rights pursuant to this Section 5.9(l), any underwritten offering of

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Registrable Securities in which such Holder has advised the Company of its intent to register
its Registrable Securities either pursuant to Section 5.9(a)(2) or 5.9(a)(4) prior to the date of
such Holder’s forfeiture.

          (m) If: (1) the initial Shelf Registration Statement is not filed with the SEC on or prior to
the Registration Deadline, or (2) the initial Shelf Registration Statement or any new Shelf
Registration Statement required under Section 5.9(a)(1) is not declared effective by the SEC (or
otherwise does not become effective) for any reason on or prior to the Effectiveness Deadline, (3)
after its Effective Date, (A) such Shelf Registration Statement ceases for any reason (including by
reason of a stop order, or the Company’s failure to update the Shelf Registration Statement), to
remain continuously effective as to all Registrable Securities for which it is required to be
effective or (B) the Holders are not permitted to utilize the Prospectus therein to resell such
Registrable Securities (in each case of (A) and (B), other than during an Allowable Suspension
Period), (4) a suspension period exceeds the length of an Allowable Suspension Period, or (5) after
the date six months following the Closing Date, and only in the event a Registration Statement is
not effective or available to sell all Registrable Securities, the Company fails to file with the
SEC any required reports under Section 13 or 15(d) of the Exchange Act such that it is not in
compliance with Rule 144(c)(1) (or Rule 144(i)(2), if applicable), as a result of which the Holders
who are not affiliates are unable to sell Registrable Securities without restriction under Rule 144
(any such failure or breach in clauses (1) through (5) above being referred to as an “Event”, and,
for purposes of clauses (1), (2), (3) or (5) the date on which such Event occurs, or for purposes
of clause (4) the date on which such Allowable Suspension Period is exceeded, being referred to as
an “Event Date” for purposes of this Section 5.9(m)), then in addition to any other rights the
Investor or any other Holder may have hereunder or under applicable law, on each such Event Date
the Company shall pay to the Investor and each other Holder an amount in cash, as partial
liquidated damages and not as a penalty (“Liquidated Damages”), equal to 1% of the purchase price
paid (in cash or by conversion) for any Registrable Securities held by the Investor or such other
Holder on the Event Date. The parties hereto agree that notwithstanding anything to the contrary
in this Agreement, no Liquidated Damages shall be payable to the Investor if as of the relevant
Event Date (i) the Investor has not appointed a Board Representative or Observer to the Board, (ii)
the Registrable Securities may be sold by the Investor without volume or manner of sale
restrictions under Rule 144 under the Securities Act and (iii) the Company is in compliance with
the current public information requirements under Rule 144(c)(1) (or Rule 144(i)(2), if
applicable), as reasonably determined by counsel to the Company. The Effectiveness Deadline for a
Shelf Registration Statement shall be extended without default or Liquidated Damages hereunder in
the event that the Company’s failure to obtain the effectiveness of the Shelf Registration
Statement on a timely basis results from the failure of the Investor to timely provide the Company
with information requested by the Company and necessary to complete the Shelf Registration
Statement in accordance with the requirements of the Securities Act (in which case the
Effectiveness Deadline would be extended with respect to Registrable Securities held by the
Investor or such other Holder, as applicable).

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     5.10 [Governance Matters].5

          (a) [The Company shall cause the Board Representative to be elected or appointed, as the case
may be, subject to all legal and governance requirements regarding service and election or
appointment as a director of the Company, and to the approval of the Company’s Nominating/Corporate
Governance Committee (the “Governance Committee”) (such approval not to be unreasonably withheld or
delayed), to the Board of Directors, as well as the board of directors of the Bank (the “Bank
Board”) for as long as the Investor, together with its Affiliates, has a Qualifying Ownership
Interest. The Company will recommend to its shareholders the election of the Board Representative
to the Board of Directors and the Bank Board at the Company’s annual meeting of shareholders,
subject to satisfaction of all legal and governance requirements regarding service as a director of
the Company and to the approval of the Governance Committee (such approval not to be unreasonably
withheld or delayed). If the Investor no longer has a Qualifying Ownership Interest, the Investor
will have no further rights under Sections 5.10(a) through 5.10(c) and, at the written request of
the Board of Directors, shall use all reasonable best efforts to cause its Board Representative to
resign from the Board of Directors and the Bank Board as promptly as possible thereafter. The
Investor shall promptly inform the Company if and when it ceases to hold a Qualifying Ownership
Interest in the Company.

          (b) The Board Representative shall, subject to applicable law, be one of the Company’s and the
Governance Committee’s nominees to serve on the Board of Directors. The Company shall use its
reasonable best efforts to have the Board Representative elected as a director of the Company by
the shareholders of the Company and the Company shall solicit proxies for the Board Representative
to the same extent as it does for any of its other Company nominees to the Board of Directors. At
the option of the Board Representative, the Board of Directors shall cause such Board
Representative to be appointed to any of two of the following committees five committees of the
Board of Directors of the Company, and/or any equivalent committees of the Bank, as agreed by the
Company and the Investor prior to the Closing: the Audit Committee, the Compensation Committee, the
Nominating/Corporate Governance Committee, the Loan Review Committee, and the Risk Management
Committee, in each case so long as the Board Representative qualifies to serve on such committees
under the Company’s or the Bank’s corporate governance guidelines and committee charters currently
in effect, as applicable, and rules applicable to the Company by any exchange on which the Common
Shares are then listed. The Company shall ensure, and shall cause the Bank to ensure, that each
committee of the Board of Directors and any equivalent committees of the Bank shall have at least
four members for so long as the Investor shall have the right to appoint a Board Representative.
The Board Representative shall have the right to attend, as a nonvoting observer, each meeting of
each committee of the Board of Directors and the Bank Board of which the Board Representative is
not then a member. The Investor covenants and agrees to hold all such information obtained from
its Board Representative in confidence pursuant to the confidentiality and non-disclosure
provisions of Section 3.3(b) above.

 

			
	5	 	[Included in the Agreements for three
Investors.]

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          (c) Subject to Section 5.10(a), upon the death, resignation, retirement, disqualification, or
removal from office as a member of the Board of Directors or the Bank Board of the Board
Representative, the Investor shall have the right to designate the replacement for such Board
Representative, which replacement shall satisfy all legal and governance requirements regarding
service as a director of the Company, and shall be reasonably acceptable to the Company. The Board
of Directors and the Bank Board shall use their respective commercially reasonable efforts to take
all action required to fill the vacancy resulting therefrom with such person (including such
person, subject to applicable law, being one of the Company’s and the Governance Committee’s
nominees to serve on the Board of Directors and the Bank Board, using all reasonable best efforts
to have such person elected as director of the Company by the shareholders of the Company and the
Company soliciting proxies for such person to the same extent as it does for any of its other
nominees to the Board of Directors or the Bank Board, as the case may be).

          (d) The Company hereby agrees that, from and after the Closing Date, for so long as the
Investor and its Affiliates in the aggregate have a Qualifying Ownership Interest, and do not have
a Board Representative currently serving on the Board of Directors and the Bank Board (or have a
Board Representative whose appointment is subject to receipt of regulatory approvals), the Company
shall, subject to applicable law, invite a person designated by the Investor and reasonably
acceptable to the Company (the “Observer”) to attend meetings of the Board of Directors and the
Bank Board (including any meetings of committees thereof) in a nonvoting observer capacity[;
provided, that the right of the Investor to designate such person shall be jointly exercised by the
Investor, [•] and [•]].6 The Observer shall be entitled to attend such meetings only in
the event the Investor does not have a Board Representative on the Board of Directors and the Bank
Board. The Observer shall not have any right to vote on any matter presented to the Board of
Directors or the Bank Board or any committee thereof. The Company shall give the Observer written
notice of each meeting of the Board of Directors and the Bank Board at the same time and in the
same manner as the members of the Board of Directors or the Bank Board (as the case may be), shall
provide the Observer with all written materials and other information given to members of the Board
of Directors or the Bank Board (as the case may be) at the same time such materials and information
are given to such members and shall permit the Observer to attend as an observer at all meetings
thereof, and in the event the Company proposes to take any action by written consent in lieu of a
meeting, the Company shall give written notice thereof to the Observer prior to the effective date
of such consent describing the nature and substance of such action and including the proposed text
of such written consents; provided, however, that (1) the Observer may be excluded from executive
sessions comprised solely of independent directors by the Chairman of the Board (or, if applicable,
the lead or presiding independent director) if, in the written advice of counsel, such exclusion is
necessary in order for the Company to comply with applicable law, regulation or stock exchange
listing standards (it being understood that it is not expected that the Observer would be excluded
from routine executive sessions), (2) the Company, the Board of Directors, the Bank and the Bank
Board shall have the right to withhold any information and to exclude the Observer from any meeting
or portion thereof if doing so is, in the written advice of counsel, (A) necessary to protect the
attorney-client privilege between such party and counsel or (B) necessary to avoid a violation of

 

			
	6	 	[Included when the Investor will be holding
Shares through affiliated funds.]

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fiduciary requirements under applicable law and (3) the Investor shall cause its Observer to
agree to hold in confidence and trust and to act in a fiduciary manner with respect to all
information provided to such Observer. The Investor covenants and agrees to hold all such
information obtained from its Observer as provided in the prior sentence in confidence pursuant to
the confidentiality and non-disclosure provisions of Section 3.3(b) above. If the Investor and its
Affiliates in the aggregate no longer have a Qualifying Ownership Interest, the Investor will have
no further rights under this Section 5.10(d).

          (e) The Board Representative shall be entitled to compensation and indemnification in
connection with his or her role as a director to the same extent as other directors on the Board of
Directors or the Bank Board, as applicable, and the Board Representative or Observer, as the case
may be, shall be entitled to reimbursement for reasonable documented, out-of-pocket expenses
incurred in attending meetings of the Board of Directors and the Bank Board, or any committee
thereof in accordance with Company policy. The Company shall notify the Board Representative or
the Observer, as the case may be, of all regular meetings and special meetings of the Board of
Directors or the Bank Board and of all regular and special meetings of any committee of the Board
of Directors and any committee of the Bank Board. The Company shall provide the Board
Representative or the Observer, as the case may be, with copies of all notices, minutes, consents
and other material that it provides to all other members of the Board of Directors or the Bank
Board (as applicable) concurrently as such materials are provided to the other members.

          (f) For purposes of this Agreement, “Board Representative” means such person designated by the
Investor to be elected or appointed to the Board of Directors and the Bank Board in accordance with
all legal and governance requirements regarding service and election or appointment as a director
of the Company, or (ii) any individual designated as a replacement Board Representative pursuant to
Section 5.10(c) hereof[; provided, that the right of the Investor to designate such person shall be
jointly exercised by the Investor, [•] and [•]].7]

     5.10 [Governance Matters.]8

          (a) After or concurrently with the Closing, the Company shall cause the Board Representative
to be elected or appointed, as the case may be, subject to all legal and governance requirements
regarding service and election or appointment as a director of the Company, and to the approval of
the Company’s Nominating/Corporate Governance Committee (the “Governance Committee”) (such approval
not to be unreasonably withheld or delayed), to the Board of Directors, as well as the board of
directors of the Bank (the “Bank Board”).

          (b) The Board Representative shall have the right to attend, as a nonvoting observer, each
meeting of each committee of the Board of Directors and the Bank Board of which the Board
Representative is not then a member. Investor covenants and agrees to hold all

 

			
	7	 	[Included when the Investor will be holding
Shares through affiliated funds.]
	 
	8	 	[Included in the Agreement for one Investor.]

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such information obtained from its Board Representative in confidence pursuant to the
confidentiality and non-disclosure provisions of Section 3.3(b) above.

          (c) The Company hereby agrees that, during the period of time, if any, from the Closing until
the Investor has a Board Representative currently serving on the Board of Directors and the Bank
Board (including if Investor has a Board Representative whose appointment is subject to receipt of
regulatory approvals), the Company shall, subject to applicable law, invite a person designated by
the Investor and reasonably acceptable to the Company (the “Observer”) to attend meetings of the
Board of Directors and the Bank Board (including any meetings of committees thereof) in a nonvoting
observer capacity. The Observer shall be entitled to attend such meetings only in the event the
Investor does not have a Board Representative on the Board of Directors and the Bank Board during
the time from the Closing until such time as the Board Representative is first elected or appointed
to the Board of Directors and the Bank Board. The Observer shall not have any right to vote on any
matter presented to the Board of Directors or the Bank Board or any committee thereof. The Company
shall give the Observer written notice of each meeting of the Board of Directors and the Bank Board
at the same time and in the same manner as the members of the Board of Directors or the Bank Board
(as the case may be), shall provide the Observer with all written materials and other information
given to members of the Board of Directors or the Bank Board (as the case may be) at the same time
such materials and information are given to such members and shall permit the Observer to attend as
an observer at all meetings thereof, and in the event the Company proposes to take any action by
written consent in lieu of a meeting, the Company shall give written notice thereof to the Observer
prior to the effective date of such consent describing the nature and substance of such action and
including the proposed text of such written consents; provided, however, that (1) the Observer may
be excluded from executive sessions comprised solely of independent directors by the Chairman of
the Board (or, if applicable, the lead or presiding independent director) if, in the written advice
of counsel, such exclusion is necessary in order for the Company to comply with applicable law,
regulation or stock exchange listing standards (it being understood that it is not expected that
the Observer would be excluded from routine executive sessions), (2) the Company, the Board of
Directors, the Bank and the Bank Board shall have the right to withhold any information and to
exclude the Observer from any meeting or portion thereof if doing so is, in the written advice of
counsel, (A) necessary to protect the attorney-client privilege between such party and counsel or
(B) necessary to avoid a violation of fiduciary requirements under applicable law and (3) the
Investor shall cause its Observer to agree to hold in confidence and trust and to act in a
fiduciary manner with respect to all information provided to such Observer. The Investor covenants
and agrees to hold all such information obtained from its Observer as provided in the prior
sentence in confidence pursuant to the confidentiality and non-disclosure provisions of Section
3.3(b) above. From and after such time as the Board Representative is first elected or appointed
to the Board of Directors and the Bank Board, the Investor will have no further rights under this
Section 5.10(c).

          (d) The Board Representative shall be entitled to compensation and indemnification in
connection with his or her role as a director to the same extent as other directors on the Board of
Directors or the Bank Board, as applicable, and the Board Representative or Observer, as the case
may be, shall be entitled to reimbursement for reasonable documented, out-of-pocket expenses
incurred in attending meetings of the Board of Directors and the Bank Board, or any committee
thereof in accordance with Company policy. The

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Company shall notify the Board Representative or the Observer, as the case may be, of all
regular meetings and special meetings of the Board of Directors or the Bank Board and of all
regular and special meetings of any committee of the Board of Directors and any committee of the
Bank Board. The Company shall provide the Board Representative or the Observer, as the case may
be, with copies of all notices, minutes, consents and other material that it provides to all other
members of the Board of Directors or the Bank Board (as applicable) concurrently as such materials
are provided to the other members.

          (e) For purposes of this Agreement, “Board Representative” means such person designated by the
Investor to be elected or appointed to the Board of Directors and the Bank Board in accordance with
all legal and governance requirements regarding service and election or appointment as a director
of the Company.]

     5.11 Anti-Takeover Matters. If any Takeover Law may become, or may purport to be,
applicable to the transactions contemplated or permitted by this Agreement, the Company and the
Board of Directors shall grant such approvals and take such actions as are necessary so that the
transactions contemplated or permitted by this Agreement and the other Transaction Documents may be
consummated, as promptly as practicable, on the terms contemplated by this Agreement and the other
Transaction Documents, as the case may be, and otherwise act to eliminate or minimize the effects
of any Takeover Law on any of the transactions contemplated or permitted by this Agreement and the
other Transaction Documents.

     5.12 Additional Regulatory Matters.

          (a) Each of the Company and the Investor agrees to cooperate and use its reasonable best
efforts to ensure, including by communicating with each other with respect to their respective
purchases of Common Stock and Warrants, that neither the Investor nor any of the Investor’s
Affiliates will become, or control, a “bank holding company” within the meaning of the BHC Act and
the CBCA.

          (b) Notwithstanding anything to the contrary in this Agreement, neither the Company nor any
Company Subsidiary shall knowingly take any action (including any redemption, repurchase, or
recapitalization of Common Stock, or securities or rights, options or warrants to purchase Common
Stock, or securities of any type whatsoever that are, or may become, convertible into or
exchangeable into or exercisable for Common Stock in each case, where Investor is not given the
right to participate in such redemption, repurchase or recapitalization to the extent of Investor’s
pro rata proportion), that would reasonably be expected to pose a substantial risk that the (a)
Investor’s equity of the Company (together with equity of the Company owned by Investor’s
Affiliates (as such term is used under the BHC Act)) would exceed 24.9% of the Company’s total
equity or (b) the Investor’s ownership of any class of voting securities of the Company (together
with the ownership by Investor’s Affiliates (as such term is used under the BHC Act) of voting
securities of the Company) to exceed 24.9% of such class (in the case of Lead Investors) or 9.9% of
such class (in the case of Investors other than Lead Investors), in each case without the prior
written consent of Investor or such person, or to increase to an amount that would constitute
“control” under the BHC Act, the CBCA or any rules or regulations promulgated thereunder (or any
successor provisions) or otherwise cause

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Investor to “control” the Company under and for purposes of the BHC Act, the CBCA or any rules
or regulations promulgated thereunder (or any successor provisions).

          (c) Notwithstanding anything in this Agreement, in no event will the Investor or any of its
Affiliates be obligated to:

          (1) Without limiting clause (2) below, (A) propose or accept any divestiture of any of
the Investor’s or any of its Affiliates’ assets, or (B) accept any operational restriction
on the Investor’s or any of its Affiliates’ business, or agree to take any action that
limits the Investor’s or its Affiliates’ commercial practices in any way (except as they
relate to the Company and the Company Subsidiaries) including by requiring the modification
of governance, fee or carried interest arrangements with respect to, or otherwise by
imposing any capital or other requirements on, the Investor or any of its Affiliates, (C)
agree to provide capital to, or otherwise maintain or contribute, directly or indirectly, to
the capital of, the Company or any Company Subsidiary (including the Company Bank) other
than the aggregate amount of the Purchase Price, or (D) register as a bank holding company,
in each case in order to obtain any consent, acceptance or approval of any Governmental
Entity to consummate the transactions contemplated by this Agreement and the other
Transaction Documents; or

          (2) Propose or agree to accept any term or condition or otherwise modify the terms of
this Agreement or any other Transaction Document, including, for the avoidance of doubt, the
terms or the amount of the Purchased Shares to be delivered by the Company under this
Agreement, to obtain any consent, acceptance, approval of any Governmental Entity to the
consummation of the transactions contemplated by this Agreement and the other Transaction
Documents if such term, condition, modification or confirmation would (A) materially
adversely affect (with respect to the Investor or its Affiliates) any material term of the
transactions, or (B) reasonably be expected to adversely affect (with respect to the
Investor or its Affiliates) any material financial term of the transactions contemplated by
this Agreement and the other Transaction Documents or the anticipated benefits to the
Investor and its Affiliates hereunder.

          (d) So long as the Investor holds any Securities, the Company will not, without the consent of
the Investor, take any action, directly or indirectly through its subsidiaries or otherwise, that
the Board of Directors of the Company believes in good faith would reasonably be expected to cause
the Investor to be subject to transfer restrictions or other covenants of the FDIC Statement of
Policy on Qualifications for Failed Bank Acquisitions as in effect at the time of taking such
action.

     5.13 Third-Party Loan Review Report. The Investor hereby acknowledges that (i) the third
party loan review reports reviewed by the Investor in connection with its due diligence examination
of the Company were prepared by the third-party firm named therein, (ii) the Investor relied solely
on such reports for the information contained therein and (iii) the Investor did not rely on any
third party, including the Company and the Placement Agent, in evaluating such information.

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     5.14 Gross-Up Rights.

          (a) Sale of New Securities. For so long as the Investor, together with its Affiliates
and, for purposes of this Section 5.14, persons who share a common discretionary investment advisor
with such Investor, owns 2.9% or more of all of the outstanding shares of Common Stock (provided
that, in making such calculation, all shares of Common Stock into or for which shares of any
securities owned by the Investor are directly or indirectly convertible or exercisable, which, for
the avoidance of doubt, shall include those shares of Common Stock issuable upon the exercise of
the Warrants, shall be included in both the numerator and denominator, and all Common Shares issued
by the Company after the Closing Date other than in connection with an issuance in which the
Investor (or a permitted assignee under Section 6.8) was offered the right to purchase its pro rata
portion of such Common Shares in accordance with Section 5.14 shall be excluded from the
denominator) (before giving effect to any issuances triggering provisions of this Section 5.14), if
at any time after the date hereof the Company makes any public or nonpublic offering or sale of any
equity (including Common Stock, preferred stock or restricted stock), or any securities, options or
debt that is convertible or exchangeable into equity or that includes an equity component (such as,
an “equity kicker”) (including any hybrid security) (any such security, a “New Security”) (other
than (i) any Common Stock or other securities issuable upon the exercise or conversion of any
securities of the Company issued or agreed or contemplated to be issued as of the date hereof; (ii)
pursuant to the granting or exercise of employee stock options or other stock incentives pursuant
to the Company’s stock incentive plans approved by the Board of Directors or the issuance of stock
pursuant to the Company’s employee stock purchase plan approved by the Board of Directors or
similar plan where stock is being issued or offered to a trust, other entity or otherwise, for the
benefit of any employees, officers or directors of the Company, in each case in the ordinary course
of providing incentive compensation; (iii) issuances of capital stock as full or partial
consideration for a merger, acquisition, joint venture, strategic alliance, license agreement or
other similar nonfinancing transaction), (iv) issuance of Common Stock upon exercise of warrants
outstanding as of the date hereof; or (v) in connection with the Rights Offering), then the
Investor shall be afforded the opportunity to acquire from the Company for the same price (net of
any underwriting discounts or sales commissions) and on the same terms as such securities are
proposed to be offered to others, up to the amount of New Securities in the aggregate required to
enable it to maintain its proportionate Common Stock-equivalent interest in the Company immediately
prior to any such issuance of New Securities. The amount of New Securities that the Investor shall
be entitled to purchase in the aggregate shall be determined by multiplying (x) the total number or
principal amount of such offered New Securities by (y) a fraction, the numerator of which is the
number of shares of Common Stock then held by the Investor (counting for such purposes all shares
of Common Stock into or for which any securities owned by the Investor are directly or indirectly
convertible or exercisable), if any, and the denominator of which is the number of shares of Common
Stock then outstanding. Notwithstanding anything herein to the contrary, in no event shall the
Investor have the right to purchase securities hereunder to the extent such purchase would result
in such Investor, together with any other person whose Company securities would be aggregated with
the Investor’s Company securities for purposes of any bank regulation or law, to collectively be
deemed to own, control or have the power to vote securities which (assuming, for this purpose only,
full conversion and/or exercise of such securities by the Investor) would represent more than the
ownership limitation set forth in Section 5.2(a).

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          (b) Notice. In the event the Company proposes to offer or sell New Securities (the
“Offering”), it shall give the Investor written notice of its intention, describing the price (or
range of prices), anticipated amount of securities, timing, and other terms upon which the Company
proposes to offer the same (including, in the case of a registered public offering and to the
extent possible, a copy of the prospectus included in the registration statement filed with respect
to such offering), no later than ten business days, as the case may be, after the initial filing of
a registration statement with the SEC with respect to an underwritten public offering, after the
commencement of marketing with respect to a Rule 144A offering or after the Company proposes to
pursue any other offering. If the information contained in the notice constitutes material
non-public information (as defined under the applicable securities laws), the Company shall deliver
such notice only to the individuals identified (with respect to the Investor) in Section 6.7
hereof, and shall not communicate the information to anyone else acting on behalf of the Investor
without the consent of one of the designated individuals. The Investor shall have ten business days
from the date of receipt of such a notice to notify the Company in writing that it intends to
exercise its rights provided in this Section 5.14 and as to the amount of New Securities the
Investor desires to purchase, up to the maximum amount calculated pursuant to Section 5.14. Such
notice shall constitute a nonbinding indication of interest of the Investor to purchase the amount
of New Securities so specified at the price and other terms set forth in the Company’s notice to
it. The failure of the Investor to respond within such ten business day period shall be deemed to
be a waiver of such Investor’s rights under this Section 5.14 only with respect to the Offering
described in the applicable notice.

          (c) Purchase Mechanism. If the Investor exercises its rights provided in this Section
5.14, the closing of the purchase of the New Securities in connection with the closing of the
Offering with respect to which such right has been exercised shall take place within 30 calendar
days after the giving of notice of such exercise, which period of time shall be extended for a
maximum of 180 days in order to comply with applicable laws and regulations (including receipt of
any applicable regulatory or shareholder approvals). Notwithstanding anything to the contrary
herein, the closing of the purchase of the New Securities by the Investors will occur no earlier
than the closing of the Offering triggering the right being exercised by the Investor. Each of the
Company and the Investor agrees to use its commercially reasonable efforts to secure any regulatory
or shareholder approvals or other consents, and to comply with any law or regulation necessary in
connection with the offer, sale and purchase of, such New Securities.

          (d) Failure of Purchase. In the event the Investor fails to exercise its rights provided
in this Section 5.14 within said 10 business day period or, if so exercised, the Investor is unable
to consummate such purchase within the time period specified in Section 5.14(c) above because of
its failure to obtain any required regulatory or shareholder consent or approval, the Company shall
thereafter be entitled (during the period of 60 days following the conclusion of the applicable
period) to sell or enter into an agreement (pursuant to which the sale of the New Securities
covered thereby shall be consummated, if at all, within 90 days from the date of said agreement) to
sell the New Securities not elected to be purchased pursuant to this Section 5.14 by the Investor
or which the Investor is unable to purchase because of such failure to obtain any such consent or
approval, at a price and upon terms no more favorable in the aggregate to the purchasers of such
securities than were specified in the Company’s notice to the Investor. Notwithstanding the
foregoing, if such sale is subject to the receipt of any regulatory or shareholder approval or
consent or the expiration of any waiting period, the time period during

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which such sale may be consummated shall be extended until the expiration of five business
days after all such approvals or consents have been obtained or waiting periods expired, but in no
event shall such time period exceed 180 days from the date of the applicable agreement with respect
to such sale. In the event the Company has not sold the New Securities or entered into an agreement
to sell the New Securities within said 60-day period (or sold and issued New Securities in
accordance with the foregoing within 90 days from the date of said agreement (as such period may be
extended in the manner described above for a period not to exceed 180 days from the date of said
agreement)), the Company shall not thereafter offer, issue or sell such New Securities without
first offering such securities to the Investor in the manner provided above.

          (e) Expedited Issuance; Regulatory Directive. Notwithstanding the foregoing provisions of
this Section 5.14, if a majority of the directors of the Board of Directors determines that the
Company must issue equity or debt securities on an expedited basis, then the Company may consummate
the proposed issuance or sale of such securities (“Expedited Issuance”) and then comply with the
provisions of this Section 5.14 provided that (i) the purchaser(s) of such New Securities has
consented in writing to the issuance of additional New Securities in accordance with the provisions
of this Section 5.14, and (ii) the sale of any such additional New Securities under this Section
5.14(e) to the Investor and certain Other Investors signatory to Other Securities Purchase
Agreements pursuant to this Section 5.14 and similar provisions in the Other Securities Purchase
Agreements shall be consummated as promptly as is practicable but in any event no later than ninety
(90) days subsequent to the date on which the Company consummates the Expedited Issuance under this
Section 5.14(e). Notwithstanding anything to the contrary herein, the provisions of this Section
5.14(e) (other than as provided in subclause (ii) of this Section 5.14(e)) shall not be applicable
and the consent of the purchasers of such New Securities shall not be required in connection with
any Expedited Issuance undertaken at the written direction of the applicable federal regulator of
the Company or the Bank. Notwithstanding anything to the contrary in this Agreement, no rights of
the Investor under this Agreement will be adversely affected solely as the result of the temporary
dilution of its percentage ownership of Common Shares due to an Expedited Issuance under this
Section 5.14(e); provided, however, that such rights may be adversely affected from and after such
time, if any, that the Investor declines to purchase Common Shares offered to the Investor under
this Section 5.14.

          (f) Non-Cash Consideration. In the case of the offering of securities for a consideration
in whole or in part other than cash, including securities acquired in exchange therefor (other than
securities by their terms so exchangeable), the consideration other than cash shall be deemed to be
the fair value thereof as determined by the Board of Directors; provided, however, that such fair
value as determined by the Board of Directors shall not exceed the aggregate market price of the
securities being offered as of the date the Board of Directors authorizes the offering of such
securities.

          (g) Cooperation. The Company and the Investor shall cooperate in good faith to facilitate
the exercise of the Investor’s rights under this Section 5.14, including to secure any required
approvals or consents.

          (h) No Assignment of Rights. The rights of an Investor described in this Section 5.14
shall be personal to Investor and the transfer, assignment and/or conveyance of said

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rights from Investor to any other person and/or entity, other than to an Affiliate of the
Investor or a person that shares a common discretionary investment advisor with the Investor, but
only if such transferee agrees in writing for the benefit of the Company to be bound by the terms
of this Agreement to the same extent as the Investor (with a copy thereof to be furnished to the
Company (any such transferee shall be included in the term “Investor”)), is prohibited and shall be
void and of no force or effect.

     5.15 Form D and Blue Sky. The Company agrees to timely file a Form D with respect to the
Securities as required under Regulation D. The Company, on or before the Closing Date, shall take
such action as the Company shall reasonably determine is necessary in order to obtain an exemption
for or to qualify the Securities for sale to the Investor pursuant to this Agreement under
applicable securities or “Blue Sky” laws of the states of the United States (or to obtain an
exemption from such qualification). The Company shall make all filings and reports relating to the
offer and sale of the Purchased Shares required under applicable securities or “Blue Sky” laws of
the states of the United States following the Closing Date.

     5.16 Securities Laws Disclosure; Publicity. By 9:00 a.m., New York City time, on the first
(1st) business day after the date of this Agreement, the Company shall issue one or more press
releases (collectively, the “Press Release”) reasonably acceptable to the Investor disclosing all
material terms of the transactions contemplated hereby and by the other Transaction Documents and
any other material non-public information that the Company may have provided to the Investor at any
time prior to the filing of the Press Release. On or before 9:00 a.m., New York City time, on the
fourth trading day immediately following the execution of this Agreement, the Company will file a
Current Report on Form 8-K with the SEC describing the material terms of the Transaction Documents
(and including as exhibits to such Current Report on Form 8-K the material Transaction Documents).
If this Agreement terminates prior to Closing, by the end of the first business day following the
date of such termination, the Company shall issue a press release disclosing such termination.
Notwithstanding the foregoing, the Company shall not publicly disclose the name of the Investor or
any Affiliate or investment adviser of the Investor, or include the name of the Investor or any
Affiliate or investment adviser of the Investor in any press release or in any filing with the SEC
(other than a registration statement) or any regulatory agency or trading market, without the prior
written consent of the Investor, except (i) as required by the federal securities laws in
connection with (A) any registration statement contemplated by Section 5.9 and (B) the filing of
final Transaction Documents with the SEC and (ii) to the extent such disclosure is required by law,
at the request of the staff of the SEC or regulatory agency or under trading market regulations, in
which case the Company shall provide the Investor with prior written notice of such disclosure
permitted under this subclause (ii). Whenever any party determines, based upon the advice of such
party’s counsel, that a public announcement or other disclosure is required by or advisable with
respect to any applicable law or regulation, the parties shall discuss with each other in good
faith prior to the making of such public announcement or other disclosure.

     5.17 No Additional Issuances. Between the date of this Agreement and the Closing Date,
except for the issuance of shares of Common Stock issuable as of the date hereof as set forth in
Section 2.2(c) of the Disclosure Schedule and the Securities being issued pursuant to this
Agreement and the other Transaction Documents, the Company shall not issue and agree to issue

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any additional shares of Common Stock or other securities which provide the holder thereof the
right to convert such securities into shares of Common Stock.

     5.18 Acknowledgment of Dilution. The Company acknowledges that the issuance of the
Securities may result in dilution of the outstanding shares of Common Stock. The Company further
acknowledges that its obligations under the Transaction Documents, including its obligation to
issue the Securities pursuant to the Transaction Documents, are unconditional and absolute and not
subject to any right of set off, counterclaim, delay or reduction, regardless of the effect of any
such dilution or any claim the Company may have against the Investor and regardless of the dilutive
effect that such issuance may have on the ownership of the other shareholders of the Company.

     5.19 Rights Offering.

          (a) As promptly as practicable following the Closing, and subject to compliance with all
applicable laws and regulations, including the Securities Act, the Company shall distribute to each
holder of record of Common Stock as of the close of business on the business day immediately
preceding the Closing Date (each, a “Legacy Shareholder”) non-transferable rights (the “Rights”) to
purchase from the Company an amount of Common Shares calculated pursuant to Section 5.19(b) at a
per share purchase price of $1.00 (the “Rights Purchase Price”). The transactions described in this
Section 5.19, including the purchase and sale of Common Shares upon the exercise of Rights and any
commitments to purchase unsubscribed Common Shares in Section 5.19(c), shall be referred to in this
Agreement as the “Rights Offering.” The registration statement relating to the Rights Offering
shall be filed within 15 days after the Closing.

          (b) Each Right shall entitle a Legacy Shareholder to purchase any whole number of Common
Shares, provided that (i) no Legacy Shareholder shall thereby exceed, together with any other
person with whom such Legacy Shareholder may be aggregated under applicable law, 4.9% beneficial
ownership of the Company’s equity securities and (ii) the aggregate purchase price of all Common
Shares purchased in the Rights Offering shall not exceed five million dollars ($5,000,000).

          (c) In the event the Rights Offering is over-subscribed, subscriptions by Legacy Shareholders
shall be reduced proportionally based on their pro rata ownership of the Common Stock outstanding
as of the close of business on the trading day immediately preceding the Closing Date.

          (d) [In the event the Company does not sell an aggregate amount of $5 million in Common Shares
pursuant to the Rights Offering, the Investor hereby agrees to purchase its Pro Rata Share of the
aggregate amount of Common Shares with a value, based on the Rights Purchase Price, equal to $5
million less the dollar amount of Common Shares sold to the holders of Rights (“Unsubscribed
Shares”) at the Rights Purchase Price, subject to and simultaneously with the Other Investors’
purchase of their respective Pro Rata Share, if any, of the Unsubscribed Shares; provided that in
no event shall the Investor or any other investor purchase Unsubscribed Shares to the extent in
excess of their respective Pro Rata Share or such as would cause the Investor to hold more than
24.9%, if the Investor is a Lead Investor, or 9.9%, if the Investor is

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not a Lead Investor, of the Company’s outstanding Common Shares or cause any other investor to
exceed their respective ownership limitation set forth in the applicable Other Securities Purchase
Agreements.

          (e) As used in Section 5.19(d), “Pro Rata Share” with respect to each person means a
commitment by that person to purchase that number of Unsubscribed Shares equal to the total number
of Unsubscribed Shares multiplied by a fraction, the numerator of which is the number of Common
Shares (counting for such purposes all shares of Common Stock into or for which any securities
owned by the Investor are directly or indirectly convertible or exercisable) purchased by such
person in connection with this Agreement or the applicable Other Securities Purchase Agreements, as
the case may be, and the denominator of which is the total aggregate number of Common Shares
purchased by the Investor and all Other Investors whose Other Securities Purchase Agreements
contain an obligation to purchase Unsubscribed Shares, subject to the limitations set forth in the
proviso contained in Section 5.19(d) above. If any of the Unsubscribed Shares are not purchased by
the Investor or Other Investors by reason of the limitation in the proviso contained in Section
5.19(d) above, such unpurchased Unsubscribed Shares shall be allocated to, and purchased by, the
Investor and Other Investors purchasing Unsubscribed Shares pro rata based on the same fraction set
forth above, but (i) subject to the same proviso as contained in Section 5.19(d) above and (ii)
excluding from the denominator in such fraction the number of Common Shares purchased by the
Investor and Other Investors, as the case may be, who have reached their respective ownership
limitations, until all such Unsubscribed Shares have been purchased or all such investors have
reached their respective ownership
limitations.]9

     5.20 Certain Adjustments. If the representations and warranties set forth in Section
2.2(c) shall not be true and correct as of the Closing Date, the number of Purchased Shares and the
number of shares of Common Stock subject to the Warrants shall be, at the Investor’s option,
proportionally adjusted to provide the Investor with the same economic effect as contemplated by
this Agreement in the absence of such failure to be true and correct.

     5.21 Resolution of Sandpoint Center Matter. From and after the Closing Date, the Company
shall (i) at all times maintain in the deposit account contemplated by Section 1.2(b)(1)(xvii) and
in accordance with the Intercompany Agreement an amount of cash sufficient so that the Company and
the Bank are at all times in compliance with all applicable laws and regulations with respect to
the matters contemplated by the Intercompany Agreement; provided that, following the Closing Date,
the Company may substitute for all or a portion of such cash deposit direct obligations issued or
unconditionally guaranteed by the government of the United States of America or issued by an agency
thereof and backed by the full faith and credit of the United States of America, in each case
having a fair market value equal to the cash withdrawn from such deposit, and in each case on terms
and conditions and pursuant to documentation reasonably satisfactory to the Investor; (ii) make the
payments to the Bank contemplated by Section 1.2(b)(1)(xvii) in accordance with the Intercompany
Agreement so that the Company and the Bank are at all times in compliance with all applicable laws
and regulations with respect to the matters contemplated by the Intercompany Agreement; and (iii)
not enter into any

 

			
	9	 	[Included in Agreements of certain
Investors.]

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amendments to the Intercompany Agreement except with the prior written consent of the Investor
(not to be unreasonably withheld).

ARTICLE VI

Miscellaneous

     6.1 Survival. Each of the representations and warranties set forth in this Agreement
shall survive the Closing under this Agreement but only for a period of 18 months following the
Closing Date (or until final resolution of any claim or action arising from the breach of any such
representation and warranty, if notice of such breach was provided prior to the end of such period)
and thereafter shall expire and have no further force and effect; provided that the representations
and warranties in Sections 2.2(a), 2.2(b), 2.2(c), 2.2(d), 2.2(f), 2.3(a) and 2.3(b) shall survive
indefinitely and the representations and warranties in Section 2.2(i) shall survive until the
expiration of the applicable statutory periods of limitations. Except as otherwise provided
herein, all covenants and agreements contained herein shall survive for the duration of any
statutes of limitations applicable thereto or until, by their respective terms, they are no longer
operative.

     6.2 Amendment. No amendment or waiver of this Agreement will be effective with respect to
any party unless made in writing and signed by an officer of a duly authorized representative of
such party.

     6.3 Waivers. No failure or delay by any party in exercising any right, power or privilege
hereunder shall operate as a waiver thereof nor shall any single or partial exercise thereof
preclude any other or further exercise thereof or the exercise of any other right, power or
privilege. The conditions to each party’s obligation to consummate the Closing are for the sole
benefit of such party and may be waived by such party in whole or in part to the extent permitted
by applicable law. No waiver of any party to this Agreement will be effective unless it is in a
writing signed by a duly authorized officer of the waiving party that makes express reference to
the provision or provisions subject to such waiver. The rights and remedies herein provided shall
be cumulative and not exclusive of any rights or remedies provided by law.

     6.4 Counterparts and Facsimile. For the convenience of the parties hereto, this Agreement
may be executed in any number of separate counterparts, each such counterpart being deemed to be an
original instrument, and all such counterparts will together constitute the same agreement.
Executed signature pages to this Agreement may be delivered by facsimile transmission or by e-mail
delivery of a “.pdf” format data file and such signatures will be deemed as sufficient as if actual
signature pages had been delivered.

     6.5 Governing Law. This Agreement will be governed by and construed in accordance with
the laws of the State of New York applicable to contracts made and to be performed entirely within
such State. The parties hereto irrevocably and unconditionally consent to submit to the exclusive
jurisdiction of the state and federal courts located in the State of New York for any actions,
suits or proceedings arising out of or relating to this Agreement and the transactions contemplated
hereby.

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     6.6 Waiver of Jury Trial. EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY WAIVES ANY AND
ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATED TO THIS AGREEMENT OR
THE TRANSACTIONS CONTEMPLATED HEREBY.

     6.7 Notices. Any notice, request, instruction or other document to be given hereunder by
any party to the other will be in writing and will be deemed to have been duly given (a) on the
date of delivery if delivered personally or by telecopy, facsimile or e-mail, upon confirmation of
receipt, (b) on the first business day following the date of dispatch if delivered by a recognized
next-day courier service, or (c) on the third business day following the date of mailing if
delivered by registered or certified mail, return receipt requested, postage prepaid. All notices
hereunder shall be delivered as set forth below, or pursuant to such other instructions as may be
designated in writing by the party to receive such notice.

	 	(1)	 	If to the Investor:
	 
	 	 	 	with a copy to (which copy alone shall not constitute notice):
	 
	 	(2)	 	If to the Company:
	 
	 	 	 	Intermountain Community Bancorp

414 Church Street

Sandpoint, Idaho 83864

Attn: Chief Executive Officer

Facsimile: (208) 265-5295

Email: curt.hecker@panhandlebank.com
	 
	 	 	 	with a copy to (which copy alone shall not constitute notice):
	 
	 	 	 	Graham & Dunn PC

Pier 70

2801 Alaskan Way, Suite 300

Seattle, Washington 98121

Attn: Stephen M. Klein, Esq.

Facsimile: (206) 340-9599

Email: sklein@grahamdunn.com

     6.8 Entire Agreement, etc. This Agreement (including the Exhibits, Schedules, and
Disclosure Schedules hereto) constitutes the entire agreement, and supersedes all other prior

-74-

 

agreements, understandings, representations and warranties, both written and oral, between the
parties, with respect to the subject matter hereof; the terms and conditions of this Agreement
shall inure to the benefit of and be binding upon the parties hereto and their respective
successors, and with respect to the Investor, its permitted assigns; and this Agreement will not be
assignable by operation of law or otherwise (any attempted assignment in contravention hereof being
null and void), except that the Investor shall be permitted to assign its rights or obligations
hereunder (i) to any Affiliate entity or person that shares a common discretionary investment
advisor, but only if the transferee agrees in writing for the benefit of the Company to be bound by
the terms of this Agreement to the same extent as the Investor (with a copy thereof to be furnished
to the Company (any such transferee shall be included in the term “Investor”)); provided, further,
that no such assignment shall relieve the Investor of any of its obligations under this Agreement
and (ii) as and to the extent provided in Section 5.8.

     6.9 Other Definitions. Wherever required by the context of this Agreement, the singular
shall include the plural and vice versa, and the masculine gender shall include the feminine and
neuter genders and vice versa, and references to any agreement, document or instrument shall be
deemed to refer to such agreement, document or instrument as amended, supplemented or modified from
time to time. All article, section, paragraph or clause references not attributed to a particular
document shall be references to such parts of this Agreement, and all exhibit, annex and schedule
references not attributed to a particular document shall be references to such exhibits, annexes
and schedules to this Agreement. When used herein:

          (1) the term “subsidiary” means those corporations, banks, savings banks, associations
and other persons of which such person owns or controls 51% or more of the outstanding
equity securities either directly or indirectly through an unbroken chain of entities as to
each of which 51% or more of the outstanding equity securities is owned directly or
indirectly by its parent; provided, however, that there shall not be included any such
entity to the extent that the equity securities of such entity were acquired in satisfaction
of a debt previously contracted in good faith or are owned or controlled in a bona fide
fiduciary capacity;

          (2) the term “Affiliate” means, with respect to any person, any person directly or
indirectly controlling, controlled by or under common control with, such other person. For
purposes of this definition, “control” (including, with correlative meanings, the terms
“controlled by” and “under common control with”) when used with respect to any person, means
the possession, directly or indirectly, of the power to cause the direction of management
and/or policies of such person, whether through the ownership of voting securities by
contract or otherwise;

          (3) the term “Lead Investor” means any Investor who, as a result of the transactions
contemplated by this Agreement and the other Transaction Documents, will have an ownership
interest in the Company in excess of 9.9% after giving effect to the transactions
contemplated by this Agreement and the other Transaction Documents;

          (4) the term “Major Investor” means any Investor who, as a result of the transactions
contemplated by this Agreement and the other Transaction Documents, will have an ownership
interest in the Company in excess of 4.9% but not in excess of

-75-

 

9.9% after giving effect to the transactions contemplated by this Agreement and the
other Transaction Documents;

          (5) the word “or” is not exclusive;

          (6) the words “including,” “includes,” “included” and “include” are deemed to be
followed by the words “without limitation”;

          (7) the terms “herein,” “hereof” and “hereunder” and other words of similar import
refer to this Agreement as a whole and not to any particular section, paragraph or
subdivision;

          (8) “business day” means any day except Saturday, Sunday and any day which shall be a
legal holiday or a day on which banking institutions in the State of New York or the State
of Idaho generally are authorized or required by law or other governmental actions to close;

          (9) “person” has the meaning given to it in Section 3(a)(9) of the Exchange Act and as
used in Sections 13(d)(3) and 14(d)(2) of the Exchange Act;

          (10) “Beneficially Own,” “Beneficial Owner” and “Beneficial Ownership” are defined in
Rules 13d-3 and 13d-5 of the Exchange Act;

          (11) “knowledge of the Company” or “Company’s knowledge” means the actual knowledge of
the officers of the Company listed on Disclosure Schedule 6.9(11); and

          (12) “knowledge of the Investor” or “Investor’s knowledge” means the actual knowledge
of the executive officers or, to the extent an Investor does not have executive officers,
persons performing substantially similar functions.

     6.10 Captions. The article, section, paragraph and clause captions herein are for
convenience of reference only, do not constitute part of this Agreement and will not be deemed to
limit or otherwise affect any of the provisions hereof.

     6.11 Severability. If any provision of this Agreement or the application thereof to any
person (including the officers and directors of the Investor and the Company) or circumstance is
determined by a court of competent jurisdiction to be invalid, void or unenforceable, the remaining
provisions hereof, or the application of such provision to persons or circumstances other than
those as to which it has been held invalid or unenforceable, will remain in full force and effect
and shall in no way be affected, impaired or invalidated thereby, so long as the economic or legal
substance of the transactions contemplated hereby is not affected in any manner materially adverse
to any party. Upon such determination, the parties shall negotiate in good faith in an effort to
agree upon a suitable and equitable substitute provision to effect the original intent of the
parties.

     6.12 No Third-Party Beneficiaries. Nothing contained in this Agreement, expressed or
implied, is intended to confer or shall confer upon any person other than the express parties

-76-

 

hereto and the Placement Agent, any benefit right or remedies, except that the provisions of
Sections 3.4, 5.4, 5.8 and 5.9 shall inure to the benefit of the persons referred to in those
Sections, including any Holders. The representations and warranties set forth in Article II and
the covenants set forth in Articles III and V have been made solely for the benefit of the parties
to this Agreement and (a) may be intended not as statements of fact, but rather as a way of
allocating the risk to one of the parties if those statements prove to be inaccurate, (b) have been
qualified by reference to the Disclosure Schedules, each of which contains certain disclosures that
are not reflected in the text of this Agreement, and (c) may apply standards of materiality in a
way that is different from what may be viewed as material by shareholders of, or other investors
in, the Company.

     6.13 Time of Essence. Time is of the essence in the performance of each and every term of
this Agreement.

     6.14 Public Announcements. Subject to each party’s disclosure obligations imposed by law
or regulation, each of the parties hereto will cooperate with each other in the development and
distribution of all news releases and other public information disclosures with respect to this
Agreement and any of the transactions contemplated by this Agreement or the other Transaction
Documents, and no party hereto will make any such news release or public disclosure without first
consulting with the other party hereto and receiving its consent (which shall not be unreasonably
withheld, conditioned, or delayed), and each party shall coordinate with the other with respect to
any such news release or public disclosure.

     6.15 Specific Performance. The parties agree that irreparable damage would occur in the
event that any of the provisions of this Agreement were not performed in accordance with their
specific terms. It is accordingly agreed that the parties shall be entitled to seek specific
performance of the terms hereof, this being in addition to any other remedies to which they are
entitled at law or equity.

     6.16 Independent Nature of Investors’ Obligations and Rights. The obligations of the
Investor under this Agreement and the respective Other Investors under the Other Securities
Purchase Agreements are several and not joint with the obligations of any other such investor, and
neither the Investor nor any such Other Investor shall be responsible in any way for the
performance of the obligations of any Other Investor under any Transaction Document. The decision
of the Investor and such Other Investors to purchase Common Shares pursuant to the Transaction
Documents has been made by each such investor independently of any other investor and independently
of any information, materials, statements or opinions as to the business, affairs, operations,
assets, properties, liabilities, results of operations, condition (financial or otherwise) or
prospects of the Company or any Subsidiary which may have been made or given by any other investor
or by any agent or employee of any other investor, and neither the Investor nor any such Other
Investor, nor any of their respective agents or employees, shall have any liability to any other
investor (or any other person) relating to or arising from any such information, materials,
statement or opinions. Nothing contained herein or in any Transaction Document, and no action
taken by the Investor or any Other Investor pursuant thereto, shall be deemed to constitute the
investors as a partnership, an association, a joint venture or any other kind of entity, or create
a presumption that the investors are in any way acting in concert or as a group with respect to
such obligations or the transactions contemplated

-77-

 

by the Transaction Documents. The Investor acknowledges that no Other Investor has acted as
agent for the Investor in connection with making its investment hereunder and that no Other
Investor will be acting as agent of the Investor in connection with monitoring its investment in
the Purchased Shares or enforcing its rights under the Transaction Documents. The Investor and
each of the Other Investors signatory to the Other Securities Purchase Agreements shall be entitled
to independently protect and enforce its rights, including the rights arising out of this Agreement
or out of the other Transaction Documents, and it shall not be necessary for any other investor to
be joined as an additional party in any proceeding for such purpose.

     6.17
Applicability of Certain Provisions. Notwithstanding any other provision of this
Agreement to the contrary, the provisions of Section 1.2(b)(1)(xvi), Section 1.2(b)(1)(xvii),
Section 3.1(a), Section 3.1(b), Section 3.1(d), Section 3.2(b) (but only the first sentence
thereof), Section 3.3(a), Section 5.1, Section 5.2, Section 5.7(a), Section 5.16 and Section 5.21
shall not apply to each of the Company and the Investor if such Investor is neither a Lead Investor
nor a Major Investor, except that the provisions of Section 3.1 will apply to the Company and the
Investor if the Investor has the right to appoint a Board Representative under Section 5.10.

* * *

-78-

 

     IN WITNESS WHEREOF, this Agreement has been duly executed and delivered by the duly authorized
officers of the parties hereto as of the date first herein above written.

	 	 	 	 	 
	 	INTERMOUNTAIN COMMUNITY BANCORP

 	 
	 	By:  	 	 
	 	 	Name:  	Curt Hecker 	 
	 	 	Title:  	President and Chief Executive Officer 	 
	 
	 	INVESTOR

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	 	Number of shares of common stock beneficially
owned by the Investor as of the date first
herein above written: 	 
	 
	 	  	 	 

 

 

	 	 	 	 	 

EXHIBIT A

FORM OF OPINION OF COMPANY COUNSEL

     1. The Company has been duly incorporated, and is validly existing and in good standing under
the laws of the State of Idaho.

     2. The shares of Common Stock to be issued pursuant to the Transaction Documents have been
duly authorized and, when issued pursuant to the Transaction Documents upon receipt of the
consideration provided for therein, will be validly issued, fully paid and nonassessable.

     3. The shares of Common Stock issuable upon exercise of the Warrants have been duly authorized
for issuance upon such exercise and, when issued upon such exercise in accordance with the terms of
the Warrants, will be validly issued, fully paid and nonassessable.

     4. Assuming (a) the accuracy of the representations and warranties, and compliance with the
agreements, contained in the Transaction Documents and (b) that the shares of Common Stock to be
issued and sold by the Company under the Transaction Documents are sold in the manner contemplated
by, and in accordance with, the Transaction Documents, it is not necessary to register under the
Securities Act the issuance and sale of the shares of Common Stock to be issued and sold by the
Company under the Transaction Documents.

     5. Each of this Agreement and the Other Securities Purchase Agreements has been duly
authorized, executed and delivered by the Company and, assuming due authorization, execution and
delivery by the Investor and the Other Investors signatory to the Other Securities Purchase
Agreements, respectively, constitutes a legal, valid and binding obligation of the Company,
enforceable against the Company in accordance with its terms, except as rights to indemnity and
contribution thereunder may be limited under applicable law or public policy, and subject to the
qualifications that (a) enforcement thereof may be limited by bankruptcy, insolvency, receivership,
reorganization, liquidation, voidable preference, moratorium or other laws (including the laws of
fraudulent conveyance and transfer) or judicial decisions affecting the enforcement of creditors’
rights generally or the reorganization of financial institutions and (b) the enforceability of the
obligations of the Company thereunder is subject to general principles of equity (regardless of
whether such enforceability is considered in a proceeding in equity or at law) and to the effect of
certain laws and judicial decisions upon the availability and enforceability of certain remedies,
including the remedies of specific performance and self-help.

     6. The Warrants have been duly authorized, executed and delivered by the Company and, assuming
due authorization, execution and delivery by the Investor, constitute a legal, valid and binding
obligation of the Company, enforceable against the Company in accordance with their terms, except
as rights to indemnity and contribution thereunder may be limited under applicable law or public
policy, and subject to the qualifications that (a) enforcement thereof may be limited by
bankruptcy, insolvency, receivership, reorganization, liquidation, voidable preference, moratorium
or other laws (including the laws of fraudulent conveyance and transfer) or judicial decisions
affecting the enforcement of creditors’ rights generally or the reorganization of financial
institutions and (b) the enforceability of the obligations of the Company thereunder is subject to
general principles of equity (regardless of whether such enforceability is considered

A-1

 

in a proceeding in equity or at law) and to the effect of certain laws and judicial decisions
upon the availability and enforceability of certain remedies, including the remedies of specific
performance and self-help..

     7. The issuance and sale by the Company of the shares of Common Stock under the Transaction
Documents (including in connection with the exercise of the Warrants) will not be subject to any
preemptive rights, rights of first offer or similar rights of any person under (a) the articles of
incorporation of the Company as currently in effect (the “Charter”), (b) the bylaws of the Company
as currently in effect (the “Bylaws”), or (c) any Company Significant Agreement.

     8. The issuance and sale by the Company of the shares of Common Stock in accordance with the
Transaction Documents and the execution, delivery and performance by the Company of its obligations
under the Transaction Documents do not and will not, whether with or without the giving of notice
or lapse of time or both, constitute a violation of (a) the Charter, (b) the Bylaws, (c) laws of
any state applicable to the Company, (d) applicable federal laws of the United States or (e) any
Company Significant Agreement listed on Schedule __ to this opinion.

     9. It is not necessary to register the shares of Common Stock to be issued in accordance with
the Transaction Documents (including in connection with the exercise of the Warrants) under the
Securities Act of 1933 in connection with the sale and delivery of the shares of Common Stock by
the Company to the Investor in accordance with the arrangements relating to offers, sales and
deliveries of the shares of Common Stock as contemplated in the Transaction Documents.

     10. No consent, approval, authorization or order of, or filing with, any federal or state
governmental authority or regulatory body is required to be obtained or made by the Company for the
consummation by the Company of the transactions contemplated by the Transaction Documents,
including, without limitation, each Other Private Placement, except for the filing of a Form 8-K
with the Securities and Exchange Commission, appropriate filings under applicable state blue sky
laws, and such other consents, approvals, authorizations, orders and filings as have been
previously obtained or made.

A-2

 

EXHIBIT B

FORM OF OFFICER’S CERTIFICATE OF THE COMPANY

     The undersigned, the President and Chief Executive Officer of Intermountain Community Bancorp,
an Idaho corporation (the “Company”), pursuant to Section 1.2(b)(1)(x) of the Securities Purchase
Agreement, dated as of ____________, 2011 (the “Agreement”) between the Company and
__________________, a ______________________ (the “Investor”), hereby certifies to the Investor
that:

     1. The Company has performed in all material respects all obligations required to be performed
by it at or prior to or contemporaneously with the Closing under the Agreement (except that with
respect to obligations that are qualified by materiality, the Company has performed such
obligations, as so qualified, in all respects).

     2. The representations and warranties of the Company set forth in Section 2.2 of the Agreement
are or were, as applicable, true and correct in all respects as of the date hereof and as of the
Closing (except (A) to the extent such representations and warranties are made as of a specified
date, in which case, subject to clause (B) below, such representations and warranties shall be true
and correct in all respects as of such date, and (B) with respect to each of the representations
and warranties of the Company in this Agreement (other than Section 2.2(b) (but only with respect
to the first sentence thereof), Section 2.2(c) (which are or were, as applicable, true and correct
in all respects except to a de minimis extent that is addressed to the Investor’s reasonable
satisfaction at the Closing pursuant to Section 5.20), Section 2.2(d)(i), Section 2.2(f) (which are
or were, as applicable, true and correct in all material respects), Section 2.2(j)(i), Section
2.2(l), Section 2.2(u), Section 2.2(w), Section 2.2(y)(3), Section 2.2(dd) (which are or were, as
applicable, true and correct in all material respects, but which shall not be deemed not to be true
and correct in all material respects solely as a result of fees payable by the Company pursuant to
the first sentence of Section 3.2(b)) Section 2.2(hh), Section 2.2(jj) and Section 2.2(mm)), where
the failure to be true and correct (without regard to any materiality or Material Adverse Effect
qualifications contained therein), individually or in the aggregate, would not be reasonably likely
to have a Material Adverse Effect with respect to the Company);

     3. Since the date of the Agreement, there has not occurred any circumstance, event, change,
development or effect that, individually or in the aggregate, has had or could reasonably be
expected to have a Material Adverse Effect on the Company or the Bank.

     4. Capitalized terms used but not defined herein shall have the meanings given to such terms
in the Agreement.

     IN WITNESS WHEREOF, the undersigned has executed and delivered this certificate solely in the
capacity indicated and not in an individual capacity as of this ___ day of __________, 2011.

	 	 	 	 	 
	 	 	 
	 	By:  	
 	 
	 	 	Name:  	Curt Hecker 	 
	 	 	Title:  	President and Chief Executive Officer 	 

B-1

 

	 	 	 	 	 

EXHIBIT C

FORM OF OFFICER’S CERTIFICATE OF THE INVESTOR

     The undersigned, the _______________________ of __________________, a ______________________
(the “Investor”), pursuant to Section 1.2(b)(2)(vi) of the Securities Purchase Agreement, dated as
of ____________, 2011 (the “Agreement”) between the Investor and Intermountain Community Bancorp,
an Idaho corporation (the “Company”), hereby certifies to the Company that:

     1. The Investor has performed in all material respects all obligations required to be
performed by it at or prior to or contemporaneously with the Closing under the Agreement (except
that with respect to obligations that are qualified by materiality, the Investor has performed such
obligations, as so qualified, in all respects).

     2. The representations and warranties of the Investor set forth in Section 2.3 of the
Agreement were true and correct in all material respects (except to the extent such representations
and warranties are qualified by materiality, in which case they were true and correct in all
respects) as of the date of the Agreement and are true and correct in all material respects (except
to the extent such representations and warranties are qualified by materiality, in which case they
are true and correct in all material respects) as of the Closing Date (except to the extent such
representations and warranties are made as of a specific date, in which case such representations
and warranties were true and correct, in all material respects as applicable, as of such date).

     3. Capitalized terms used but not defined herein shall have the meanings given to such terms
in the Agreement.

     IN WITNESS WHEREOF, the undersigned has executed and delivered this certificate solely in the
capacity indicated and not in an individual capacity as of this ___ day of __________, 2011.

	 	 	 	 	 
	 	 	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

C-1

 

EXHIBIT D

SECRETARY’S CERTIFICATE

___________, 2011

     I, Dale Schuman, Secretary of Intermountain Community Bancorp, an Idaho corporation (the
“Company”), do hereby certify as follows:

     1. I am the duly elected Secretary of the Company.

     2. Attached hereto as Exhibit A, are true, correct and complete copies of resolutions
duly adopted by (i) the Board of Directors of the Company on _________, 2011 and ________, 2011,
respectively and (ii) the Transactional Approval Committee designated by the Board of Directors of
the Company on _________, 2011 and ______, 2011, respectively. Such resolutions have not been
rescinded, amended or modified, are in full force and effect in the form adopted, and are the only
resolutions adopted by the Board of Directors or by any committee designated by the Board of
Directors relating to the transactions contemplated by the Securities Purchase Agreement, dated as
of ____________, 2011 (the “Agreement”) between the Company and __________________, a
______________________, and the other Transaction Documents and the issuance of the Purchased
Shares (as those terms are defined in the Agreement).

     3. Attached hereto as Exhibit B is a true, correct and complete copy of the Company’s
Amended and Restated Articles of Incorporation as certified by the Idaho Secretary of State on
___________, 2011 (the “Articles of Incorporation”), and such Articles of Incorporation have not
since been altered, amended or repealed, no such alteration, amendment or repeal has been
authorized by the Board of Directors or shareholders of the Company, and the Articles of
Incorporation were in full force and effect on the date of the Agreement and are in full force and
effect on the date hereof.

     4. Attached hereto as Exhibit C is a true, correct and complete copy of the Amended
and Restated Bylaws of the Company and such Bylaws have not been altered, amended or repealed, no
such alteration, amendment or repeal has been authorized by the Board of Directors or shareholders
of the Company, and were in full force and effect on the date of the Agreement and are in full
force and effect on the date hereof.

     5. Each person who, as an officer of the Company, signed the Transaction Documents or any
other document delivered in connection with the transactions contemplated by the Agreement was duly
elected or appointed, qualified and acting as such officer at the respective times of the signing
and delivery thereof and was duly authorized to sign such document on behalf of the Company, and
the signature of each such person appearing on each such document is the genuine signature of such
officer.

     6. The Agreement has been executed pursuant to and in compliance with the resolutions attached
as Exhibit A hereto.

D-1

 

     7. Graham & Dunn PC is entitled to rely on this certificate in connection with the opinions it
is rendering pursuant to the Agreement. All capitalized terms used herein and not otherwise
defined shall have the meanings set forth in the Agreement.

D-2

 

     IN WITNESS WHEREOF, I have executed this certificate in my capacity as Secretary of the
Company as of the date first written above.

	 	 	 	 	 
	 
	 	Name:  Dale Schuman

Title:    Secretary

 	 

     I, Curt Hecker, President and Chief Executive Officer of the Company, hereby certify that Dale
Schuman has been duly elected or appointed, has been duly qualified, and is the Secretary of the
Company and that the signature above is his genuine signature.

     IN WITNESS WHEREOF, I have hereunto set my hand by and on behalf of the Company on
___________, 2011.

	 	 	 	 	 
	 	INTERMOUNTAIN COMMUNITY BANCORP

	 
	 
	 	Name:  Curt Hecker

Title:    President and Chief Executive Officer

 	 

D-3

 

Exhibit E

FORM OF WARRANT

THE SECURITIES REPRESENTED BY THIS INSTRUMENT HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF
1933, AS AMENDED, OR SECURITIES LAWS OF ANY STATE AND MAY NOT BE TRANSFERRED, SOLD OR OTHERWISE
DISPOSED OF EXCEPT WHILE A REGISTRATION STATEMENT RELATING THERETO IS IN EFFECT UNDER SUCH ACT AND
APPLICABLE STATE SECURITIES LAWS OR PURSUANT TO AN EXEMPTION FROM REGISTRATION UNDER SUCH ACT OR
SUCH LAWS.

WARRANT

to purchase

1,000,000

Shares of

Common Stock

dated as of [•], 2011

Intermountain Community Bancorp

an Idaho Corporation

Issue Date: [•], 2011

     1. Definitions. Unless the context otherwise requires, when used herein the following
terms shall have the meanings indicated.

     “Affiliate” means, with respect to any Person, any Person directly or indirectly controlling,
controlled by or under common control with, such other person. For purposes of this definition,
“control” (including, with correlative meanings, the terms “controlled by” and “under common
control with”) when used with respect to any Person, means the possession, directly or indirectly,
of the power to cause the direction of management or policies of such person, whether through the
ownership of voting securities, by contract or otherwise.

     “Applicable Price” means 95% of the greater of (A) the Market Price per share of outstanding
Common Stock on the date on which the Company issues or sells any Common Stock other than Excluded
Stock and (B) the Market Price per share of outstanding Common Stock on the first date of the
announcement of such issuance or sale.

     “Appraisal Procedure” means a procedure whereby two independent appraisers, one chosen by the
Company and one by the Warrantholder, shall mutually agree upon the determinations then the subject
of appraisal. Each party shall deliver a notice to the other appointing its appraiser within
fifteen (15) days after the Appraisal Procedure is invoked. If

 

 

within thirty (30) days after
appointment of the two appraisers they are unable to agree upon the amount in question, a third
independent appraiser shall be chosen within ten (10) days thereafter by the mutual consent of such
first two appraisers or, if such first two appraisers fail to agree upon the appointment of a third
appraiser, such appointment shall be made by the American Arbitration Association, or any
organization successor thereto, from a panel of arbitrators having experience in the appraisal of
the subject matter to be appraised. The decision of the third appraiser so appointed and chosen
shall be given within thirty (30) days after the selection of such third appraiser. If three
appraisers shall be appointed and the determination of one appraiser is disparate from the middle
determination by more than twice the amount by which the other determination is disparate from the
middle determination, then the determination of such appraiser shall be excluded, the remaining two
determinations shall be averaged and such average shall be binding and conclusive on the Company
and the Warrantholder; otherwise, the average of all three determinations shall be binding and
conclusive on the Company and the Warrantholder. The costs of conducting any Appraisal Procedure
shall be borne by the Warrantholder, except that (A) the fees and expenses of the appraiser
appointed by the Company and any other costs incurred by the Company shall be borne by the Company
and (B) if such Appraisal Procedure shall result in a determination that is disparate by 5% or more
from the Company’s initial determination, all costs of conducting such Appraisal Procedure shall be
borne by the Company.

     “Beneficial Owner” and “Beneficial Ownership” have the meanings given to such terms in Rules
13d-3 and 13d-5 of the Exchange Act.

     “Board” means the Board of Directors of the Company.

     “Board Representative” has the meaning given to it in the Securities Purchase Agreement.

     “Business Combination” means a merger, consolidation, statutory share exchange or similar
transaction that requires adoption or approval by the Company’s shareholders.

     “Business Day” means any day except Saturday, Sunday and any day which shall be a legal
holiday or a day on which banking institutions in the State of New York or the State of Idaho
generally are authorized or required by law or other governmental actions to close.

     “Capital Stock” means (A) with respect to any Person that is a corporation or company, any and
all shares, interests, participations or other equivalents (however designated) of capital or
capital stock of such Person and (B) with respect to any Person that is not a corporation or
company, any and all partnership or other equity interests of such Person.

     “Change of Control” means, with respect to the Company, the occurrence of any one of the
following events:

     (A) any Person is or becomes a Beneficial Owner, directly or indirectly, of 24.9% or more of
the aggregate voting power of the outstanding Voting Securities of the Company (other
than (i) the Investor and its Affiliates or (ii) Stadium Capital Management, LLC or its
Affiliates so long as in the aggregate they do no own more than 24.9% of the aggregate voting power
of the Voting Securities) and, in connection with or subsequent to such acquisition, the Incumbent
Directors cease for any reason to constitute at least a majority of the Board; provided, that any

-2-

 

person becoming a director subsequent to the date of the Securities Purchase Agreement whose
election or nomination for election was approved by a vote of at least two-thirds of the Incumbent
Directors then on the Board (either by a specific vote or by approval of the proxy statement of the
relevant party in which such person is named as a nominee for director, without written objection
to such nomination) shall be an Incumbent Director (except that no individuals who were not
directors at the time any agreement or understanding with respect to any Business Combination or
contested election is reached shall be treated as Incumbent Directors for the purposes of clause
(C) below with respect to such Business Combination or this paragraph in the case of a contested
election); provided, further, that the Board Representative will be treated as an Incumbent
Director even if the Person designated to be such Board Representative should change;

     (B) any Person is or becomes a Beneficial Owner (other than the Investor and its Affiliates),
directly or indirectly, of 50% or more of the aggregate voting power of the outstanding Voting
Securities of the Company; provided, however, that the event described in this clause (B) will not
be deemed a Change of Control by virtue of any holdings or acquisitions: (i) by the Company or any
of its Subsidiaries, (ii) by any employee benefit plan (or related trust) sponsored or maintained
by the Company or any of its Subsidiaries, provided that such holdings or acquisitions by any such
plan (other than any plan maintained under Section 401(k) of the Internal Revenue Code of 1986, as
amended) do not exceed 50% of the then outstanding Voting Securities of the Company, (iii) by any
underwriter temporarily holding securities pursuant to an offering of such securities or (iv)
pursuant to a Non-Qualifying Transaction;

     (C) a Business Combination, to the extent it is not a Non-Qualifying Transaction;

     (D) approval by the shareholders of the Company of a plan of liquidation or dissolution of the
Company or a sale of all or substantially all of the Company’s assets; or

     (E) entry by the Company into a definitive agreement, the consummation of which would result
in the occurrence of any of the events described in clauses (A) through (D) of this definition
above.

     “Common Stock” means the Company’s common stock, no par value, and (except as used in the
definition of Non-Qualifying Transaction) any Capital Stock for or into which such Common Stock
hereafter is exchanged, converted, reclassified or recapitalized by the Company or pursuant to an
agreement or Business Combination to which the Company is a party.

     “Company” means Intermountain Community Bancorp, an Idaho corporation.

     “Exchange Act” means the Securities Exchange Act of 1934, as amended, or any successor
statute, and the rules and regulations promulgated thereunder.

     “Excluded Stock” means (A) shares of Common Stock issued by the Company as a stock dividend
payable in shares of Common Stock, or upon any subdivision or split-up of the
outstanding shares of Capital Stock, in each case which is subject to Section 13(B), or upon
conversion of shares of Capital Stock (but not the issuance of such Capital Stock which will be
subject to the provision of Section 13(A)), (B) shares of Common Stock to be issued to directors,
employees or consultants of the Company pursuant to options granted prior to the date of

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issuance
of this Warrant and pursuant to options, restricted stock units or other equity-based awards
granted after the date of issuance of this Warrant if the exercise price per share of Common Stock
on the date of such grant equals or exceeds the Market Price of a share of Common Stock on the date
of such grant and (C) shares of Common Stock issued upon exercise of subscription rights in
connection with the Permitted Rights Offering.

     “Exercise Price” means $1.25, subject to adjustment from time to time in accordance with
Section 13.

     “Expiration Time” has the meaning given to it in Section 3.

     “Fair Market Value” means, with respect to any security or other property, the fair market
value of such security or other property as determined by the Board, acting in good faith. If the
Warrantholder does not accept the Board’s calculation of Fair Market Value and the Warrantholder
and the Company are unable to agree on Fair Market Value, the procedures described in Section 14
shall be used to determine Fair Market Value.

     “Group” means a “group” within the meaning of Section 13(d)(3) of the Exchange Act.

     “Incumbent Directors” means individuals who, on the date of the Securities Purchase Agreement,
constitute the Board.

     “Investor” means Castle Creek Capital Partners IV, LP.

     “Market Price” of the Common Stock (or other relevant capital stock or equity interest) on any
date of determination means the closing sale price as reported in the composite transactions for
the principal U.S. national or regional securities exchange on which the Common Stock (or other
relevant capital stock or equity interest) is so listed or quoted, or, if no closing sale price is
reported, the last reported sale price on the principal U.S. national or regional securities
exchange on which the Common Stock (or other relevant capital stock or equity interest) is so
listed or quoted, or if the Common Stock (or other relevant capital stock or equity interest) is
not so listed or quoted on a U.S. national or regional securities exchange, the last quoted bid
price for the Common Stock (or other relevant capital stock or equity interest) in the
over-the-counter market as reported on the OTC Bulletin Board or by Pink Sheets LLC or similar
organization, or, if that bid price is not available, the fair market value of a share of Common
Stock as determined by an independent appraiser selected in good faith by the Company and
reasonably acceptable to the Warrantholder, the fees and expenses of which shall be paid by the
Company.

     “Non-Qualifying Transaction” means any Business Combination that satisfies all of the
following criteria: (A) more than 50% of the total voting power of the capital stock of the
surviving corporation resulting from such Business Combination, or, if applicable, the ultimate
parent corporation that directly or indirectly has Beneficial Ownership of 100% of the voting
securities eligible to elect directors of such surviving corporation, is represented by shares of
Common Stock that were outstanding immediately before such Business Combination and (B) at
least a majority of the members of the board of directors of such parent corporation (or, if there
is no parent corporation, the surviving corporation) following the consummation of the Business

-4-

 

Combination were Incumbent Directors at the time the Company’s Board approved the execution of the
initial agreement providing for such Business Combination.

     “Ordinary Cash Dividends” means a regular quarterly cash dividend out of surplus or net
profits legally available therefor (determined in accordance with generally accepted accounting
principles, consistently applied) and consistent with past practice.

     “Permitted Rights Offering” shall mean the offering of up to $10 million of aggregate offering
price of Common Stock pursuant to subscription rights distributed pro rata to holders of record of
Common Stock on the day immediately prior to the date hereof at a price per share of Common Stock
not less than $1.00, and the associated declaration, issuance and exercise of the subscription
rights with respect to such offering and shares of Common Stock issuable in connection with the
exercise of any such rights; provided that the Company will use its best efforts to ensure that
such rights offering, including exercise of such right, is completed as soon as practicable in
accordance with Section 5.19 of the Securities Purchase Agreement.

     “Person” has the meaning given to it in Section 3(a)(9) of the Exchange Act and as used in
Sections 13(d)(3) and 14(d)(2) of the Exchange Act.

     “Pro Rata Repurchases” means any purchase of shares of Common Stock by the Company or any
Affiliate thereof pursuant to (A) any tender offer or exchange offer subject to Section 13(e) of
the Exchange Act, or (B) pursuant to any other offer available to substantially all holders of
Common Stock, in each case whether for cash, shares of Capital Stock of the Company, other
securities of the Company, evidences of indebtedness of the Company or any other Person or any
other property (including, without limitation, shares of Capital Stock, other securities or
evidences of indebtedness of a Subsidiary of the Company), or any combination thereof, effected
while this Warrant is outstanding; provided, however, that “Pro Rata Repurchase” shall not include
any purchase of shares by the Company or any Affiliate thereof made in accordance with the
requirements of Rule 10b-18 as in effect under the Exchange Act. The “Effective Date” of a Pro
Rata Repurchase shall mean the date of acceptance of shares for purchase or exchange under any
tender or exchange offer which is a Pro Rata Repurchase or the date of purchase with respect to any
Pro Rata Repurchase that is not a tender or exchange offer.

     “Purchase Price” has the meaning given to it in Section 2.

     “SEC” has the meaning given to it in Section 12.

     “Securities Act” means the Securities Act of 1933, as amended, or any successor statute, and
the rules and regulations promulgated thereunder.

     “Securities Purchase Agreement” means the Securities Purchase Agreement, dated as of [•],
2011, between the Company and the Investor, including all schedules and exhibits thereto.

     “Shares” has the meaning given to it in Section 2.

     “Subsidiary” of a Person means any corporation, bank, savings bank, association or other
Person of which such Person owns or controls 51% or more of the outstanding equity securities
either directly or indirectly through an unbroken chain of entities, as to each of which 51% or

-5-

 

more of the outstanding equity securities is owned directly or indirectly by its parent; provided,
however, that there shall not be included any such entity to the extent that the equity securities
of such entity were acquired in satisfaction of a debt previously contracted in good faith or are
owned or controlled in a bona fide fiduciary capacity.

     “Voting Securities” means, at any time, shares of any class of Capital Stock of the Company
that are then entitled to vote generally in the election of directors.

     “VWAP” means, for any date, the price determined by the first of the following clauses that
applies: (a) if the Common Stock is then listed or quoted on a national securities exchange, the
daily volume weighted average price per share of the Common Stock for such date (or the nearest
preceding date) on such exchange on which the Common Stock is then listed or quoted as reported by
Bloomberg L.P. (based on a trading day from 9:30 a.m. (New York City time) to 4:02 p.m. (New York
City time), (b) if the Common Stock is then quoted on the OTC Bulletin Board, the volume weighted
average price per share of the Common Stock for such date (or the nearest preceding date) on the
OTC Bulletin Board, (c) if the Common Stock is not then listed or quoted on a national securities
exchange or the OTC Bulletin Board and if prices for the Common Stock are then reported by Pink
Sheets LLC (or a similar organization or agency succeeding to its functions of reporting prices),
the most recent bid price per share of the Common Stock so reported, or (d) in all other cases, the
fair market value of a share of Common Stock as determined by an independent appraiser selected in
good faith by the Company and reasonably acceptable to the Warrantholder, the fees and expenses of
which shall be paid by the Company.

     “Warrantholder” has the meaning given to it in Section 2.

     “Warrant” means this Warrant, issued to the Investor pursuant to the Securities Purchase
Agreement.

     2. Number of Shares of Common Stock; Exercise Price. This certifies that, for value
received, the Investor, its Affiliates or its registered assigns (individually and collectively,
the “Warrantholder”) is entitled, upon the terms and subject to the conditions hereinafter set
forth, to acquire from the Company, in whole or in part 1,000,000 fully paid and nonassessable
shares of Common Stock, as the same may be adjusted from time to time pursuant to the terms of this
Warrant (the “Shares”), at a purchase price per share (the “Purchase Price”) equal to the Exercise
Price. The Exercise Price is subject to adjustment as provided herein, and all references to
“Exercise Price” herein shall be deemed to include any such adjustment or series of adjustments.

     3. Exercise of Warrant; Term. (a) To the extent permitted by applicable laws and
regulations, the right to purchase the Common Stock represented by this Warrant is exercisable, in
whole or in part by the Warrantholder, at any time or from time to time after the execution and
delivery of this Warrant by the Company, on the date hereof, but in no event later than 11:59 p.m.,
New York City time, on the third anniversary of the date of issuance of the Warrant (the
“Expiration Time”), by: (i) delivery to the Company (or such other office or agency of the
Company as it may designate by notice in writing to the registered Warrantholder at the last
address of the Warrantholder as it shall appear upon the warrant register of the Company) of a

-6-

 

duly
executed facsimile copy of the Form of Notice of Exercise annexed hereto; and (ii) within three (3)
trading days after the date said Notice of Exercise is delivered to the Company, payment to the
Company of the aggregate Exercise Price in respect of the Shares thereby purchased by wire transfer
in immediately available funds or, if available, pursuant to the cashless exercise procedure
specified in Section 3(b) below. Notwithstanding anything herein to the contrary, the
Warrantholder shall not be required to physically surrender this Warrant to the Company until the
Warrantholder has purchased all of the Shares available hereunder and the Warrant has been
exercised in full in which case, the Warrantholder shall surrender this Warrant to the Company for
cancellation within three (3) trading days after the date the final Notice of Exercise is delivered
to the Company. Partial exercises of this Warrant resulting in purchases of a portion of the total
number of Shares available hereunder shall have the effect of lowering the outstanding number of
Shares purchasable hereunder in an amount equal to the applicable number of Shares purchased. The
Warrantholder and the Company shall maintain records showing the number of Shares purchased and the
date of such purchases. Absent manifest error, the records of the Company shall be conclusive as
to the number of Shares issuable upon exercise and binding on the Company and the Warrantholder.
The Warrantholder and any assignee, by acceptance of this Warrant, acknowledge and agree that, by
reason of the provisions of this paragraph, following the purchase of a portion of the Shares
hereunder, the number of Shares available for purchase hereunder at any given time may be less than
the amount stated on the face hereof. 

	 	(b)	 	This Warrant may also be exercised, in whole or in part, at such time by means of a
“cashless exercise” in which the Warrantholder shall be entitled to receive a certificate
for the number of Shares equal to the quotient obtained by dividing [(A-B) (X)] by (A),
where:

	 	(A)	= 	 the VWAP on the trading day immediately preceding the date on
which the Warrantholder elects to exercise this Warrant by means of a “cashless
exercise,” as set forth in the applicable Notice of Exercise;
	 
	 	(B)	= 	the Exercise Price; and
	 
	 	(X)	= 	the number of Shares that would be issuable upon exercise of
this Warrant in accordance with the terms of this Warrant if such exercise were
by means of a cash exercise rather than a cashless exercise.

     4. Issuance of Common Stock; Authorization; Listing. Certificates for Common Stock
issued upon exercise of this Warrant will be issued in such name or names as the Warrantholder may
designate and will be delivered to such named Person or Persons within a reasonable time, not to
exceed three (3) Business Days after the date on which this Warrant has been duly exercised in
accordance with the terms of this Warrant. The Company hereby represents and warrants that any
Common Stock issued upon the exercise of this Warrant in accordance with the provisions of Section
3 and all other provisions of this Warrant will be duly and validly authorized and issued, fully
paid and nonassessable and free from all taxes, liens and
charges (other than liens or charges created by the Warrantholder or taxes in respect of any
transfer occurring contemporaneously therewith). The Company agrees that the Common Stock so
issued will be deemed to have been issued to the Warrantholder as of the close of business on

-7-

 

the
date on which this Warrant and payment of the Exercise Price are delivered to the Company in
accordance with the terms of this Warrant, notwithstanding that the stock transfer books of the
Company may then be closed or certificates representing such Common Stock may not be actually
delivered on such date. The Company will at all times hereafter reserve and keep available, out of
its authorized but unissued Common Stock, solely for the purpose of providing for the exercise of
this Warrant, the aggregate number of shares of Common Stock then issuable upon exercise of this
Warrant. The Company will (i) procure, at its sole expense, the listing of the shares of Common
Stock issuable upon exercise of this Warrant, subject to issuance or notice of issuance, on all
stock exchanges on which the Common Stock is then listed or traded, if any, and (ii) maintain the
listing of such securities after issuance. The Company will use commercially reasonable efforts to
ensure that the Common Stock may be issued without violation of any applicable law or regulation or
of any requirement of any securities exchange on which the Common Stock is listed or traded.

     5. No Fractional Shares or Scrip. No fractional shares or scrip representing
fractional shares shall be issued upon any exercise of this Warrant. In lieu of any fractional
share to which the Warrantholder would otherwise be entitled, the Warrantholder shall be entitled
to receive a cash payment equal to the Market Price of the Common Stock on the date of exercise
less the Exercise Price for the shares of Common Stock into which such fractional share could be
converted.

     6. No Rights as Shareholders; Transfer Books. This Warrant does not entitle the
Warrantholder to any voting rights or other rights as a shareholder of the Company prior to the
date of exercise hereof. The Company will at no time close its transfer books against transfer of
this Warrant in any manner which interferes with the timely exercise of this Warrant.

     7. Charges, Taxes and Expenses. Issuance of certificates for Common Stock to the
Warrantholder upon the exercise of this Warrant shall be made without charge to the Warrantholder
for any issue or transfer tax or other incidental expense in respect of the issuance of such
certificates, all of which taxes and expenses shall be paid by the Company.

     8. Transfer/Assignment.

     (A) Subject to compliance with applicable securities laws, without obtaining the consent of
the Company to assign or transfer this Warrant, this Warrant and all rights hereunder are
transferable, in whole or in part, upon the books of the Company by the registered holder hereof in
person or by duly authorized attorney, and a new warrant shall be made and delivered by the
Company, of the same tenor and date as this Warrant but registered in the name of the transferee,
upon surrender of this Warrant, duly endorsed, to the office or agency of the Company described in
Section 3. All expenses (other than stock transfer taxes) and other charges payable in connection
with the preparation, execution and delivery of the new warrants pursuant to this Section 8 shall
be paid by the Company.

     (B) The Warrantholder agrees that all certificates or other instruments representing the
Warrant and the Shares will bear a legend substantially to the following effect on the terms and
subject to the conditions, limitations and other provisions of Section 5.4 of the Securities
Purchase Agreement:

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THE SECURITIES REPRESENTED BY THIS INSTRUMENT HAVE NOT BEEN REGISTERED UNDER THE SECURITIES
ACT OF 1933, AS AMENDED, OR SECURITIES LAWS OF ANY STATE AND MAY NOT BE TRANSFERRED, SOLD OR
OTHERWISE DISPOSED OF EXCEPT WHILE A REGISTRATION STATEMENT RELATING THERETO IS IN EFFECT
UNDER SUCH ACT AND APPLICABLE STATE SECURITIES LAWS OR PURSUANT TO AN EXEMPTION FROM
REGISTRATION UNDER SUCH ACT OR SUCH LAWS.

     9. Exchange and Registry of Warrant. This Warrant is exchangeable, upon the surrender
hereof by the Warrantholder to the Company, for a new warrant or warrants of like tenor and
representing the right to purchase the same aggregate number of Shares. The Company shall maintain
a registry showing the name and address of the Warrantholder as the registered holder of this
Warrant. This Warrant may be surrendered for exchange or exercise, in accordance with its terms,
at the office of the Company, and the Company shall be entitled to rely in all respects, prior to
written notice to the contrary, upon such registry.

     10. Loss, Theft, Destruction or Mutilation of Warrant. Upon receipt by the Company of
evidence reasonably satisfactory to it of the loss, theft, destruction or mutilation of this
Warrant, and in the case of any such loss, theft or destruction, upon receipt of an indemnity or
security reasonably satisfactory to the Company, or, in the case of any such mutilation, upon
surrender and cancellation of this Warrant, the Company shall make and deliver, in lieu of such
lost, stolen, destroyed or mutilated Warrant, a new Warrant of like tenor and representing the
right to purchase the same aggregate number of shares of Common Stock as provided for in such lost,
stolen, destroyed or mutilated Warrant.

     11. Saturdays, Sundays, Holidays, etc. If the last or appointed day for the taking of
any action or the expiration of any right required or granted herein shall not be a Business Day,
then such action may be taken or such right may be exercised on the next succeeding day that is a
Business Day.

     12. Rule 144 Information. The Company covenants that it will use its reasonable best
efforts to timely file all reports and other documents required to be filed by it under the
Securities Act and the Exchange Act and the rules and regulations promulgated by the U.S.
Securities and Exchange Commission (the “SEC”) thereunder (or, if the Company is not required to
file such reports under the Securities Act or the Exchange Act, it will, upon the request of any
Warrantholder, make publicly available such information as necessary to permit sales pursuant to
Rule 144), and it will use reasonable best efforts to take such further action as any Warrantholder
may reasonably request, all to the extent required from time to time to enable such holder to sell
the Warrants without registration under the Securities Act within the limitation of the exemptions
provided by (i) Rule 144 or Regulation S under the Securities Act, as such rules may be amended
from time to time, or (ii) any successor rule or regulation hereafter adopted by the SEC. Upon
the written request of any Warrantholder, the Company will deliver to such Warrantholder a
written statement that it has complied with such requirements.

     13. Adjustments and Other Rights. The Exercise Price and the number of Shares into
which this Warrant is to be convertible pursuant to Section 2 of this Warrant shall be subject to
adjustment from time to time as follows; provided, that no single event shall be subject to

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adjustment under more than one sub-section of this Section 13 so as to result in duplication;
provided, further, that, notwithstanding any provision of this Warrant to the contrary, any
adjustment shall be made to the extent (and only to the extent) that such adjustment would not
cause or result in any Warrantholder and its Affiliates, collectively, being in violation of
applicable law, regulation or rule of any governmental authority or self-regulatory organization.
Any adjustment (or portion thereof) prohibited pursuant to the foregoing proviso shall be postponed
and implemented on the first date on which such implementation would not result in the condition
described in such proviso.

     (A) Common Stock Issued at Less Than the Applicable Price. (i) If the Company issues
or sells, or agrees to issue or sell, any Common Stock or other securities that are convertible
into or exchangeable or exercisable for Common Stock (or are otherwise linked to Common Stock),
other than Excluded Stock, for consideration per share less than the Applicable Price, then the
Exercise Price in effect immediately prior to each such issuance or sale will immediately (except
as provided below) be reduced to the price determined by multiplying the Exercise Price in effect
immediately prior to such issuance or sale by a fraction, (x) the numerator of which shall be (1)
the number of shares of Common Stock outstanding immediately prior to such issuance or sale plus
(2) the number of shares of Common Stock which the aggregate consideration received by the Company
for the total number of such additional shares of Common Stock (or other securities that are
convertible into or exchangeable or exercisable for Common Stock (or are otherwise linked to Common
Stock)) so issued or sold would purchase at the Applicable Price, and (y) the denominator of which
shall be the number of shares of Common Stock outstanding immediately after such issuance or sale
(including the number of shares of Common Stock into which such other securities are convertible or
for which such other securities are exchangeable or exercisable). In such event, the number of
shares of Common Stock issuable upon the exercise of this Warrant shall be increased to the number
obtained by dividing (x) the product of (1) the number of Shares issuable upon the exercise of this
Warrant before such adjustment and (2) the Exercise Price in effect immediately prior to the
issuance or sale giving rise to this adjustment, by (y) the new Exercise Price determined in
accordance with the immediately preceding sentence. For the avoidance of doubt, no increase in the
Exercise Price or reduction in the number of Shares issuable upon exercise of this Warrant shall be
made pursuant to this sub-clause (i) of this Section 13(A).

     (ii) For the purposes of any adjustment of the Exercise Price and the number of Shares issuable
upon exercise of this Warrant pursuant to this Section 13(A), the following provisions shall be
applicable:

     (1) In the case of the issuance or sale of equity or equity-linked securities for cash,
the amount of the consideration received by the Company shall be deemed to be the amount of
the gross cash proceeds received by the Company for such securities before deducting
therefrom any discounts or commissions allowed, paid or incurred by the
Company for any underwriting or otherwise in connection with the issuance and sale
thereof.

     (2) In the case of the issuance or sale of equity or equity-linked securities
(otherwise than upon the conversion of shares of Capital Stock or other securities of the
Company) for a consideration in whole or in part other than cash, including securities

-10-

 

acquired in exchange therefor (other than securities by their terms so exchangeable), the
consideration other than cash shall be deemed to be the Fair Market Value, before deducting
therefrom any discounts or commissions allowed, paid or incurred by the Company for any
underwriting or otherwise in connection with the issuance and sale thereof.

     (3) In the case of the issuance of (i) options, warrants or other rights to purchase or
acquire equity or equity-linked securities (whether or not at the time exercisable) or (ii)
securities by their terms convertible into or exchangeable for equity or equity-linked
securities (whether or not at the time so convertible or exchangeable) or options, warrants
or rights to purchase such convertible or exchangeable securities (whether or not at the
time exercisable):

     (a) The aggregate maximum number of securities deliverable upon
exercise of such options, warrants or other rights to purchase or acquire
equity or equity-linked securities shall be deemed to have been issued at
the time such options, warrants or rights are issued and for a consideration
equal to the consideration (determined in the manner provided in Section
13(A)(i) and (ii)), if any, received by the Company upon the issuance or
sale of such options, warrants or rights plus the minimum purchase price
provided in such options, warrants or rights for the equity or equity-linked
securities covered thereby.

     (b) The aggregate maximum number of shares of equity or equity-linked
securities deliverable upon conversion of or in exchange for any such
convertible or exchangeable securities, or upon the exercise of options,
warrants or other rights to purchase or acquire such convertible or
exchangeable securities and the subsequent conversion or exchange thereof,
shall be deemed to have been issued at the time such securities were issued
or such options, warrants or rights were issued and for a consideration
equal to the consideration, if any, received by the Company for any such
securities and related options, warrants or rights (excluding any cash
received on account of accrued interest or accrued dividends), plus the
additional consideration (in each case, determined in the manner provided in
Section 13(A)(i) and (ii)), if any, to be received by the Company upon the
conversion or exchange of such securities, or upon the exercise of any
related options, warrants or rights to purchase or acquire such convertible
or exchangeable securities and the subsequent conversion or exchange
thereof.

     (c) On any change in the number of shares of equity or equity-linked
securities deliverable upon exercise of any such options, warrants or rights
or conversion or exchange of such convertible or exchangeable securities or
any change in the consideration to be received by the Company upon such
exercise, conversion or exchange, but excluding changes resulting from the
anti-dilution provisions thereof (to the extent comparable to the
anti-dilution provisions contained herein), the Exercise

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Price and the
number of Shares issuable upon exercise of this Warrant shall forthwith be
readjusted to such Exercise Price and number of Shares as would have been
obtained had an adjustment been made upon the issuance or sale of such
options, warrants or rights not exercised prior to such change, or of such
convertible or exchangeable securities not converted or exchanged prior to
such change, upon the basis of such change.

     (d) If the Exercise Price and the number of Shares issuable upon
exercise of this Warrant shall have been adjusted upon the issuance or sale
of any such options, warrants, rights or convertible or exchangeable
securities, no further adjustment of the Exercise Price and the number of
Shares issuable upon exercise of this Warrant shall be made for the actual
issuance of Common Stock upon the exercise, conversion or exchange thereof.

     (B) Stock Splits, Subdivisions, Reclassifications or Combinations. If the Company
shall (i) declare a dividend or make a distribution on its Common Stock in shares of Common Stock,
(ii) subdivide or reclassify the outstanding shares of Common Stock into a greater number of
shares, or (iii) combine or reclassify the outstanding Common Stock into a smaller number of
shares, the number of Shares issuable upon exercise of this Warrant at the time of the record date
for such dividend or distribution or the effective date of such subdivision, combination or
reclassification shall be proportionately adjusted so that the Warrantholder after such date shall
be entitled to purchase the number of shares of Common Stock which such holder would have owned or
been entitled to receive after such date had this Warrant been exercised immediately prior to such
date. In such event, the Exercise Price in effect at the time of the record date for such dividend
or distribution or the effective date of such subdivision, combination or reclassification shall be
adjusted to the number obtained by dividing (x) the product of (1) the number of Shares issuable
upon the exercise of this Warrant before such adjustment and (2) the Exercise Price in effect
immediately prior to the record or effective date, as the case may be, for such dividend,
distribution, subdivision, combination or reclassification giving rise to this adjustment by (y)
the new number of Shares issuable upon exercise of this Warrant determined pursuant to the
immediately preceding sentence.

     (C) Other Distributions. Except with respect to the Permitted Rights Offering, in
case the Company shall fix a record date for the making of a distribution to all holders of shares
of its Common Stock (i) of shares of any class other than its Common Stock other than shares
referred to in Section 13(A)(i), (ii) of evidence of indebtedness of the Company or any Subsidiary,
(iii) of assets or cash (excluding Ordinary Cash Dividends, and dividends or distributions referred
to in Section 13(B)), or (iv) of rights or warrants (other than in connection with the adoption of
a
shareholder rights plan), in each such case, the Exercise Price in effect prior thereto shall
be reduced immediately thereafter to the price determined by dividing (x) an amount equal to the
difference resulting from (1) the number of shares of Common Stock outstanding on such record date
multiplied by the Exercise Price per Share on such record date, less (2) the Fair Market Value of
said shares or evidences of indebtedness or assets or rights or warrants to be so distributed, by
(y) the number of shares of Common Stock outstanding on such record date; such adjustment shall be
made successively whenever such a record date is fixed. In such
event, the

-12-

 

number of shares of
Common Stock issuable upon the exercise of this Warrant shall be increased to the number obtained
by dividing (x) the product of (1) the number of Shares issuable upon the exercise of this Warrant
before such adjustment, and (2) the Exercise Price in effect immediately prior to the issuance
giving rise to this adjustment by (y) the new Exercise Price determined in accordance with the
immediately preceding sentence. In the event that such distribution is not so made, the Exercise
Price and the number of Shares issuable upon exercise of this Warrant then in effect shall be
readjusted, effective as of the date when the Board determines not to distribute such shares,
evidences of indebtedness, assets, rights or warrants, as the case may be, to the Exercise Price
that would then be in effect and the number of Shares then issuable upon exercise of this Warrant
if such record date had not been fixed.

     (D) Certain Repurchases of Common Stock. In case the Company effects a Pro Rata
Repurchase of Common Stock, then the Exercise Price shall be reduced to the price determined by
multiplying the Exercise Price in effect immediately prior to the effective date of such Pro Rata
Repurchase by a fraction of which the numerator shall be (i) the product of (x) the number of
shares of Common Stock outstanding immediately before such Pro Rata Repurchase and (y) the Market
Price of a share of Common Stock on the trading day immediately preceding the first public
announcement by the Company or any of its Affiliates of the intent to effect such Pro Rata
Repurchase, minus (ii) the aggregate purchase price of the Pro Rata Repurchase, and of which the
denominator shall be the product of (i) the number of shares of Common Stock outstanding
immediately prior to such Pro Rata Repurchase minus the number of shares of Common Stock so
repurchased and (ii) the Market Price per share of Common Stock on the trading day immediately
preceding the first public announcement of such Pro Rata Repurchase. In such event, the number of
Shares issuable upon the exercise of this Warrant shall be increased to the number obtained by
dividing (x) the product of (1) the number of Shares issuable upon the exercise of this Warrant
before such adjustment, and (2) the Exercise Price in effect immediately prior to the Pro Rata
Repurchase giving rise to this adjustment by (y) the new Exercise Price determined in accordance
with the immediately preceding sentence.

     (E) Business Combinations. In case of any Business Combination or reclassification of
Common Stock (other than a reclassification of Common Stock referred to in Section 13(B)), any
Shares issued or issuable upon exercise of this Warrant after the date of such Business Combination
or reclassification shall be exchangeable for the number of shares of stock or other securities or
property (including cash) to which the Common Stock issuable (at the time of such Business
Combination or reclassification) upon exercise of this Warrant immediately prior to the
consummation of such Business Combination or reclassification would have been entitled upon
consummation of such Business Combination or reclassification; and in any such case, if necessary,
the provisions set forth herein with respect to the rights and interests thereafter of the
Warrantholder shall be appropriately adjusted so as to be applicable, as nearly as may reasonably
be, to any shares of stock or other securities or property thereafter deliverable on the exercise
of
this Warrant. In determining the kind and amount of stock, securities or the property
receivable upon consummation of such Business Combination, if the holders of Common Stock have the
right to elect the kind or amount of consideration receivable upon consummation of such Business
Combination, then the Warrantholder shall have the right to make a similar election upon exercise
of this Warrant with respect to the number of shares of stock or other securities or property which
the Warrantholder will receive upon exercise of this Warrant.

-13-

 

     (F) Rounding of Calculations; Minimum Adjustments. All calculations under this
Section 13 shall be made to the nearest one-tenth (1/10th) of a cent or to the nearest
one-hundredth (1/100th) of a share, as the case may be. Any provision of this Section 13 to the
contrary notwithstanding, no adjustment in the Exercise Price or the number of Shares issuable upon
the exercise of this Warrant shall be made if the amount of such adjustment would be less than
$0.01 or one-tenth (1/10th) of a share of Common Stock, respectively, but any such amount shall be
carried forward and an adjustment with respect thereto shall be made at the time of and together
with any subsequent adjustment which, together with such amount and any other amount or amounts so
carried forward, shall aggregate $0.01 or 1/10th of a share of Common Stock, respectively, or more.

     (G) Timing of Issuance of Additional Common Stock Upon Certain Adjustments. In any
case in which the provisions of this Section 13 shall require that an adjustment shall become
effective immediately after a record date for an event, the Company may defer until the occurrence
of such event (i) issuing to the Warrantholder of this Warrant exercised after such record date and
before the occurrence of such event the additional Shares issuable upon such exercise by reason of
the adjustment required by such event over and above the Shares issuable upon such exercise before
giving effect to such adjustment and (ii) paying to such Warrantholder any amount of cash in lieu
of a fractional Share; provided, however, that the Company upon request shall deliver to such
Warrantholder a due bill or other appropriate instrument evidencing such Warrantholder’s right to
receive such additional shares, and such cash, upon the occurrence of the event requiring such
adjustment.

     (H) Adjustment for Unspecified Actions. If the Company takes any action affecting the
Common Stock, other than actions described in this Section 13, which in the reasonable opinion of
the Board would adversely affect the exercise rights of the Warrantholder, the Exercise Price
and/or the number of Shares received upon exercise of the Warrant shall be adjusted for the
Warrantholder’s benefit, to the extent permitted by law, in such manner, and at such time, as such
Board after consultation with the Warrantholder shall reasonably determine to be equitable in the
circumstances.

     (I) Statement Regarding Adjustments. Whenever the Exercise Price or the number of
Shares issuable upon exercise of this Warrant shall be adjusted as provided in Section 13, the
Company shall forthwith file at the principal office of the Company a statement showing in
reasonable detail the facts requiring such adjustment and the Exercise Price that shall be in
effect and the number of Shares issuable upon exercise of this Warrant after such adjustment, and
the Company shall also cause a copy of such statement to be sent by mail, first class postage
prepaid, to each Warrantholder at the address appearing in the Company’s records.

     (J) Notice of Adjustment Event. In the event that the Company shall propose to take
any action of the type described in this Section 13 (but only if the action of the type described
in this Section 13 would result in an adjustment in the Exercise Price or the number of Shares
issuable upon exercise of this Warrant or a change in the type of securities or property to be
delivered upon exercise of this Warrant), the Company shall give notice to the Warrantholder, in
the manner set forth in Section 13(I), which notice shall specify the record date, if any, with
respect to any such action and the approximate date on which such action is to take place. Such
notice shall also set forth the facts with respect thereto as shall be reasonably necessary to

-14-

 

indicate the effect on the Exercise Price and the number, kind or class of shares or other
securities or property which shall be deliverable upon exercise of this Warrant. In the case of
any action which would require the fixing of a record date, such notice shall be given at least ten
(10) days prior to the date so fixed, and in case of all other action, such notice shall be given
at least fifteen (15) days prior to the taking of such proposed action. Failure to give such
notice, or any defect therein, shall not affect the legality or validity of any such action.

     (K) No Impairment. The Company will not, by amendment of its certificate of
incorporation or through any reorganization, transfer of assets, consolidation, merger,
dissolution, issue or sale of securities or any other voluntary action, avoid or seek to avoid the
observance or performance of any of the terms to be observed or performed hereunder by the Company,
but will at all times in good faith assist in the carrying out of all the provisions of this
Warrant and in taking of all such action as may be necessary or appropriate in order to protect the
rights of the Warrantholder.

     (L) Proceedings Prior to Any Action Requiring Adjustment. As a condition precedent to
the taking of any action which would require an adjustment pursuant to this Section 13, the Company
shall take any action which may be necessary, including obtaining regulatory, stock exchange (if
applicable) or shareholder approvals or exemptions, in order that the Company may thereafter
validly and legally issue as fully paid and nonassessable all shares of Common Stock that the
Warrantholder is entitled to receive upon conversion or exercise of this Warrant pursuant to this
Section 13.

     (M) Adjustment Rules. Any adjustments pursuant to this Section 13 shall be made
successively whenever an event referred to herein shall occur. If an adjustment in the Exercise
Price made hereunder would reduce the Exercise Price to an amount below par value of the Common
Stock, then such adjustment in Exercise Price made hereunder shall reduce the Exercise Price to the
par value of the Common Stock.

     14. Contest and Appraisal Rights. Upon each determination of Market Price or Fair
Market Value, as the case may be, hereunder, the Company shall promptly give notice thereof to the
Warrantholder, setting forth in reasonable detail the calculation of such Market Price or Fair
Market Value, and the method and basis of determination thereof, as the case may be. If the
Warrantholder shall disagree with such determination and, by notice to the Company given within
fifteen (15) days after the Company’s notice of such determination, elect to dispute such
determination, such dispute shall be resolved in accordance with this Section 14. In the event
that a determination of Market Price, or Fair Market Value (if such determination solely involves
Market Price), is disputed, such dispute shall be submitted, at the Company’s expense, to a
qualified third party selected by the Company and reasonably acceptable to the Warrantholder,
whose determination of Market Price or Fair Market Value, as the case may be, shall be binding
on the Company and the Warrantholder. In the event that a determination of Fair Market Value,
other than a determination solely involving Market Price, is disputed, such dispute shall be
resolved through the Appraisal Procedure.

     15. Governing Law. This Warrant shall be binding upon any successors or assigns of
the Company. This Warrant shall constitute a contract under the laws of the State of New York

-15-

 

and
for all purposes shall be construed in accordance with and governed by the laws of the State of New
York applicable to agreements made and to be performed entirely within such state.

     16. Attorneys’ Fees. In any litigation, arbitration or court proceeding between the
Company and the Warrantholder as the holder of this Warrant relating hereto, the prevailing party
shall be entitled to reasonable attorneys’ fees and expenses incurred in enforcing this Warrant.

     17. Amendments. This Warrant may be amended and the observance of any term of this
Warrant may be waived only, in the case of an amendment, with the written consent of the Company
and the Warrantholder, or in the case of a waiver, by the party against whom the waiver is to be
effective.

     18. Notices. All notices hereunder shall be in writing and shall be effective (A) on
the day on which delivered if delivered personally or transmitted by telex or telegram or
telecopier with evidence of receipt, (B) one Business Day after the date on which the same is
delivered to a nationally recognized overnight courier service with evidence of receipt, or (C)
five Business Days after the date on which the same is deposited, postage prepaid, in the U.S.
mail, sent by certified or registered mail, return receipt requested, and addressed to the party to
be notified at the address indicated below for the Company, or at the address for the Warrantholder
set forth in the registry maintained by the Company pursuant to Section 9, or at such other address
and/or telecopy or telex number and/or to the attention of such other person as the Company or the
Warrantholder may designate by ten-day advance written notice.

If to the Company, to:

Intermountain Community Bancorp

414 Church Street

Sandpoint, Idaho 83864

Attn: Chief Executive Officer

Facsimile: (208) 265-5295

with copies to (which copy alone shall not constitute notice):

Graham & Dunn PC

Pier 70

2801 Alaskan Way, Suite 300

Seattle, Washington 98121

Attn: Stephen M. Klein, Esq.

Facsimile: (206) 340-9599

     19. Prohibited Actions. The Company agrees that it will not take any action which
would entitle the Warrantholder to an adjustment of the Exercise Price if the total number of
shares of Common Stock issuable upon exercise of this Warrant, together with the number of shares
of Common Stock then outstanding and the number of shares of Common Stock then issuable upon the
exercise of all outstanding options, warrants, conversion and other rights, would exceed the total
number of shares of Common Stock then authorized by its articles of

-16-

 

incorporation and available for
reservation for the issuance of shares of Common Stock issuable pursuant hereto.

     20. Entire Agreement. This Warrant and the forms attached hereto, and the Securities
Purchase Agreement, contain the entire agreement between the parties with respect to the subject
matter hereof and supersede all prior and contemporaneous arrangements or undertakings with respect
thereto.

[Remainder of page intentionally left blank]

-17-

 

     IN WITNESS WHEREOF, the Company has caused this Warrant to be executed by a duly authorized
officer as of the date first herein above written.

	 	 	 	 	 
	 	Intermountain Community Bancorp

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

	 	 	 	 	 
	Acknowledged and Agreed:

[•]

 	 	 
	By:  	 	 	 
	 	Name:  	 	 	 
	 	Title:  	 	 	 
	 

[Signature Page to Warrant]

 

 

[Form Of Notice Of Exercise]

Date: __________________

			
	TO:	 	Intermountain Community Bancorp

			
	RE:	 	Election to Subscribe for and Purchase Common Stock

     The undersigned, pursuant to the provisions set forth in the attached Warrant, hereby agrees
to subscribe for and purchase the number of shares of Common Stock set forth below covered by such
Warrant. The undersigned hereby agrees to pay the aggregate Exercise Price for such shares of
Common Stock in accordance with Section 3 of the Warrant.

     Payment shall take the form of (check applicable box):

			
	o	 	in lawful money of the United States; or

			
	o	 	the cancellation of such number of Shares as is necessary, in
accordance with the formula set forth in subsection 3(b), to exercise this Warrant
with respect to the number of Shares indicated.

     A new warrant evidencing the remaining shares of Common Stock covered by such Warrant, but not
yet subscribed for and purchased, should be issued in the name set forth below. If the new warrant
is being transferred, an opinion of counsel is attached hereto with respect to the transfer of such
warrant.

	 	 	 
	Number of Shares of Common Stock: 

	 	
	Name and Address of Person to be 

	 	
	Issued New Warrant: 

	 	

	 	 	 	 	 
	 

	Holder:	 
	 

	By:	 
	 

	 	Name:	 
	 

	 	Title:	 

[Form of Notice of Exercise]

 

 

EXHIBIT F

FORM OF PASSIVITY COMMITMENT

     [List of Investors] (each, an “Investor Name”), and their subsidiaries and affiliates
(collectively, the “Investor Name Group”), will not, without the prior approval of the Board or its
staff, directly or indirectly:

     1. Exercise or attempt to exercise a controlling influence over the management or policies of
[_______________], or any of its subsidiaries;

     2. Have or seek to have more than one representative of the [Investor Name] Group serve on the
board of directors of [_____________] or any of its subsidiaries;

     3. Permit any representative of the [Investor Name] Group who serves on the board of directors
of [_____________] or any of its subsidiaries to serve (i) as the chairman of the board of
directors of [_____________] or any of its subsidiaries, (ii) as the chairman of any committee of
the board of directors of [_____________] or any of its subsidiaries, (iii) as a member of any
committee of the board of directors of [_____________] or any of its subsidiaries if the [Investor
Name] Group representative occupies more than 25 percent of the seats on the committee, (iv) as a
member of a committee of the board of directors of [_____________] if at any time such committee
would have decision making authority for policies or actions on managerial matters (other than
decisions related to retaining third party consultants or advisers in connection with carrying out
committee duties) unless (a) recommendations of such committee as to policy or actions on
managerial matters are reviewed and approved or reviewed and ratified by the full board, (b) such
committee is carrying out functions in accordance with a policy or parameters approved by the full
board, or (c) Board staff authorizes service on a particular committee in light of all the facts
and circumstances of the case, or (v) as a member of any committee if such representative has the
authority or practical ability unilaterally to make, or block the making of, policy or other
decisions that bind the board, any committee of the board, or management of [_____________];

     4. Have or seek to have any employee or representative of the [Investor Name] Group serve as
an officer, agent, or employee of [_____________] or any of its subsidiaries;

     5. Take any action that would cause [_____________] or any of its subsidiaries to become a
subsidiary of the [Investor Name] Group;

     6. Own, control, or hold with power to vote securities that (when aggregated with securities
that the officers and directors of the [Investor Name] Group own, control, or hold with power to
vote) represent 25 percent or more of any class of voting securities of [_____________] or any of
its subsidiaries;

     7. Own or control equity interests that would result in the combined voting and nonvoting
equity interests of the [Investor Name] Group and its officers and directors to equal or exceed 25
percent of the total equity capital of [_____________] or any of its subsidiaries, except that, if
the [Investor Name] Group and its officers and directors own, hold, or have the power to vote less
than 15 percent of the outstanding shares of any classes of voting securities of

F-1

 

[_____________], the [Investor Name] Group and its officers and directors may own or control
equity interests greater than 25 percent, but in no case more than 33.3 percent, of the total
equity capital of [_____________] or any of its subsidiaries;

     8. Propose a director or slate of directors in opposition to a nominee or slate of nominees
proposed by the management or board of directors of [_____________] or any of its subsidiaries;

     9. Enter into any agreement with [_____________] or any of its subsidiaries that substantially
limits the discretion of [_____________]’s management over major policies and decisions, including,
but not limited to, policies or decisions about employing and compensating executive officers;
engaging in new business lines; raising additional debt or equity capital; merging or consolidating
with another firm; or acquiring, selling, leasing, transferring, or disposing of material assets,
subsidiaries, or other entities;

     10. Solicit or participate in soliciting proxies with respect to any matter presented to the
shareholders of [_____________] or any of its subsidiaries;

     11. Dispose or threaten to dispose (explicitly or implicitly) of equity interests of
[_____________] or any of its subsidiaries in any manner as a condition or inducement of specific
action or non-action by [_____________] or any of its subsidiaries; or

     12. Enter into any other banking or nonbanking transactions with [_____________] or any of its
subsidiaries, except that the [Investor Name] Group may establish and maintain deposit accounts
with [_____________], provided that the aggregate balance of all such deposit accounts does not
exceed $500,000 and that the accounts are maintained on substantially the same terms as those
prevailing for comparable accounts of persons unaffiliated with [_____________].

     Each [Investor Name] also certifies that:

     13. The [Investor Name] is not an affiliate of any other investor in the proposed transaction
(individually, each an “Investor,” and, collectively, the “Investors”);

     14. The [Investor Name] has reached its decision to invest in [_____________] independently
from the other Investors;

     15. The [Investor Name] is not managed or advised by an investment manager or investment
advisor who performs the same services for any other Investor;

     16. The [Investor Name] (including any subsidiary or affiliate of the [Investor Name]) has not
engaged and will not engage as part of a group consisting of substantially the same entities as the
Investors, in substantially the same combination of interests, in any additional banking or
nonbanking activities or business ventures in the United States without prior consultation with the
Board;

     17. The [Investor Name] has not and will not enter into any agreements or understandings with
any other Investor to act in concert for the purpose of exercising a

F-2

 

controlling influence over [_____________] or any of its subsidiaries, including, but not
limited to, any agreements or understandings regarding the voting or transfer of shares of
[_____________]; and

     18. Any director representing the [Investor Name] will not collude or conspire with any other
directors or shareholders of [_____________] with respect to the exercise of any director’s voting
rights. Nothing in this commitment shall limit a director’s ability to exercise its legitimate
duties/rights as a director of [_____________], including the ability to consult with other
directors and shareholders as appropriate.

     The terms used in these commitments have the same meanings as set forth in the BHC Act and the
Board’s Regulation Y. For purposes of these commitments, “Investor” includes any subsidiary or
affiliate of the Investor. Nothing in these commitments releases the [Investor Name] Group from
compliance with the Change in Bank Control Act and the Board’s regulations there under for any
subsequent acquisition or increase in the percentage ownership of any class of voting shares of
[_____________].

     Each [Investor Name] understands that these commitments constitute conditions imposed in
writing in connection with the Board’s findings and decisions related to the [Investor Name]
Group’s acquisition of up to 24.9 percent of voting shares of [_____________], including a
determination that no filing under the BHC Act is required for this transaction by the [Investor
Name] Group, and, as such, may be enforced in proceedings under applicable law.

F-3

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