Document:

Amended and Restated Family Shareholder Agreement

 Exhibit 4.2 
 AMENDED AND RESTATED 
 FAMILY SHAREHOLDERS AGREEMENT 

OF 

HOMESTREET, INC. 
 October 23, 2008 

  

 Table of Contents 

 

							
	 	 	 	  	Page	 
			
	 1.
	 	APPLICATION OF THIS AGREEMENT TO ALL SHARES	  	 	2	  
			
		 	1.1    Family Agreement Shareholders	  	 	2	  
			
		 	1.2    ESOP	  	 	2	  
			
		 	1.3    Officers and Directors	  	 	2	  
			
		 	1.4    Cessation	  	 	3	  
			
	 2.
	 	 GENERAL RESTRICTION ON TRANSFER
	  	 	3	  
			
	 3.
	 	 PERMITTED TRANSFERS
	  	 	3	  
			
		 	3.1    Permitted Transferees	  	 	3	  
			
		 	3.2    Conditions for Permitted Transfers	  	 	4	  
			
		 	3.3    Transfers to Charities	  	 	5	  
			
		 	3.4    Procedure	  	 	6	  
			
		 	3.5    Transfers to Others	  	 	6	  
			
	 4.
	 	 PRIORITY
	  	 	6	  
			
		 	4.1    Offer Notice	  	 	6	  
			
		 	4.2    Effect of Offer Notice	  	 	7	  
			
		 	4.3    Share Purchase Procedures	  	 	7	  
			
		 	4.4    Price and Closing	  	 	8	  
			
		 	4.5    Installment Purchase	  	 	9	  
			
		 	4.6    Subsequent Transfers	  	 	9	  
			
	 5.
	 	 SALE TO OTHER TRANSFEREE
	  	 	9	  
			
		 	5.1    Conditions of Sale	  	 	9	  
			
		 	5.2    Re-Offer	  	 	9	  

  
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 Table of Contents 

(Continued) 
  

							
	 	 	 	  	Page	 
			
	 6.
	 	 OPTION EVENTS
	  	 	10	  
			
		 	6.1    Definition of Option Event	  	 	10	  
			
		 	6.2    Optional Purchase of Shares	  	 	10	  
			
		 	6.3    Option Notice; Option Price	  	 	12	  
			
		 	6.4    Payment for the Shares	  	 	12	  
			
	 7.
	 	 EFFECT OF NON-COMPLYING TRANSFER
	  	 	12	  
			
	 8.
	 	 FAMILY SHAREHOLDER VOTING
	  	 	13	  
			
		 	8.1    Family Agreement Shareholders Meeting	  	 	13	  
			
		 	8.2    Voting for the Election of Directors and on Minor Decisions	  	 	14	  
			
		 	8.3    Major Decisions	  	 	14	  
			
		 	8.4    Appointment of Proxies	  	 	15	  
			
	 9.
	 	 SHAREHOLDER SPOUSE AND SPOUSE CONSENT
	  	 	15	  
			
		 	 9.1    Shareholder Spouse Consent
	  	 	15	  
			
		 	9.2    Spouse Consent	  	 	15	  
			
		 	9.3    Existing and Future Spouses	  	 	16	  
			
	 10.
	 	 COMPANY’S RESPONSIBILITIES
	  	 	16	  
			
	 11.
	 	 MISCELLANEOUS PROVISIONS
	  	 	17	  
			
		 	11.1    Further Assurances	  	 	17	  
			
		 	11.2    Attorneys’ Fees	  	 	17	  
			
		 	11.3    Construction; Venue; Submission to Jurisdiction	  	 	17	  
			
		 	11.4    Securities Laws; Legend	  	 	18	  
			
		 	11.5    Amendments; Waiver	  	 	18	  

  
 ii 

 Table of Contents 

(Continued) 
  

							
	 	 	 	  	Page	 
			
		 	11.6    Successors and Assigns	  	 	19	  
			
		 	11.7    Testamentary Provisions	  	 	19	  
			
		 	11.8    Severability	  	 	19	  
			
		 	11.9    Entire Agreement	  	 	19	  
			
		 	11.10  Captions	  	 	19	  
			
		 	11.11  Notices	  	 	19	  
			
		 	11.12  Counterparts	  	 	20	  
			
		 	11.13  Suspension of Time Periods	  	 	20	  
			
		 	11.14  Changes in Capital Structure	  	 	20	  
			
		 	11.15  Arbitration	  	 	20	  
			
		 	11.16  Termination	  	 	21	  
			
		 	11.17  Specific Performance	  	 	22	  
			
		 	11.18  Legal Counsel	  	 	22	  
			
		 	11.19  Definitions	  	 	22	  

  

					
			
		 	Exhibit A	  	HomeStreet Inc. Shareholders Invited to Become Family Agreement Shareholders
			
		 	 Exhibits B-l
 through
B-5
	  	Shareholder Consent Forms
			
		 	Exhibit C	  	Spouse Consent
			
		 	Exhibit D	  	Form of Promissory Note
			
		 	Exhibit E	  	Form of Irrevocable Proxy

  
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 AMENDED AND RESTATED 

FAMILY SHAREHOLDERS AGREEMENT 
 HOMESTREET, INC. 
 THIS AMENDED AND RESTATED FAMILY SHAREHOLDERS
AGREEMENT (this Agreement) is entered into effective as of October 23, 2008 (the Effective Date), by and among HomeStreet, Inc., a Washington corporation (the Company), and those persons or entities
listed on the attached Exhibit A to this Agreement, and it shall supersede and replace that certain Family Shareholders Agreement dated April 16, 2008. Certain descendants of W. Walter Williams and their family members and certain permitted
affiliates (defined in this Agreement as Lineal Descendants, Shareholder Spouses, Stepchildren, Permitted Trusts and Permitted Entities) who are listed on Exhibit A have been invited to become parties to this Agreement, and those who have agreed to
do so by executing a shareholder consent in the form of Exhibits B-l, B-2, B-3, B-4 or B-5 (depending on the nature of the shareholder) (in each case a Shareholder Consent) are referred to as Family Agreement Shareholders. Exhibit A
also reflects the number of shares of common stock (the Shares) of the Company held by each person or entity invited to become a Family Agreement Shareholder. Permitted Transferees who acquire Shares in the Company after the date of this
Agreement and become bound by the provisions of this Agreement in the manner provided in Section 3 will thereafter also be referred to in this Agreement as Family Agreement Shareholders. 

RECITALS 

A. The members of the extended family of W. Walter Williams have adopted certain goals and policies for the family’s ownership of
the Company and its subsidiaries. These include the following: 
 (1) a commitment to the perpetuation of
HomeStreet’s long-standing values as an exemplary corporate citizen, dedicated to providing the highest quality services to its customers and an outstanding work environment for productive employees, and making significant, positive
contributions to its communities; and 
 (2) that the family shareholders should vote their shares in a unified
manner and responsive to, and capable of achieving, the family goals and interests in electing the Company’s Board of Directors (the Board) and in taking action on other matters submitted to a vote by shareholders. 

B. In order to assure the continued involvement of the family in the Company, the Family Agreement Shareholders therefore desire to
restrict the transferability of the 

  

 
Shares and to agree to the manner in which their Shares are to be voted under certain circumstances, in accordance with the provisions of this Agreement. 

C. The Company has agreed to become a party to this Agreement in order to assist the Family Agreement Shareholders with the
administration of this Agreement. 
 D. The HomeStreet, Inc. 401(k) Savings and Employee Stock Ownership Plan & Trust
(ESOP) is not a party to this Agreement, but shall be a third-party beneficiary of the provisions giving it rights to buy Shares under the conditions and on the terms provided in this Agreement. 

E. Capitalized terms used in this Agreement shall have the meanings given those terms in the text of this Agreement. Section 11.19
contains a list of definitions and the sections in which they are located. 
 NOW, THEREFORE, in consideration of the
mutual covenants set forth in this Agreement, the Company and the Family Agreement Shareholders agree as follows: 
 1.
Application of This Agreement to All Shares. 
 1.1 Family Agreement Shareholders. Exhibit A reflects
the number of Shares held by each Family Agreement Shareholder, and identifies each Family Agreement Shareholder as a: Lineal Descendant; Shareholder Spouse; Stepchild; Permitted Trust; or Permitted Entity, consistent with the definitions contained
in this Agreement. The terms of this Agreement shall apply to all Shares presently held or acquired in any manner in the future (including interest held individually or as marital community property interests) by any Family Agreement Shareholder,
including those who become Family Agreement Shareholders in accordance with the provisions of Section 3. 

1.2 ESOP. Notwithstanding any provision of this Agreement, this Agreement shall not apply to Shares held by
the ESOP in which a Family Agreement Shareholder has an interest unless and until such time as the Shares are distributed out of the ESOP to a Family Agreement Shareholder. If any Shares are acquired with the proceeds of a loan to the ESOP, the
provisions of this Agreement shall not apply to such Shares. Nothing in this Agreement shall require the Company or a Family Agreement Shareholder, to the extent any of them are acting as a fiduciary of the ESOP, to take any action that will violate
their fiduciary duties under ERISA. Voting requirements in this Agreement shall not apply to any Family Agreement Shareholders in the role of an ERISA fiduciary in deciding how to vote Company stock held by the ESOP. 

1.3 Officers and Directors. Nothing in this Agreement shall affect the duties of any Family Agreement Shareholders
in their capacity as corporate officers or directors of the Company. 

  
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 1.4 Cessation. If at any time a Family Agreement Shareholder no
longer owns any Shares, he, she or it will cease to be a Family Agreement Shareholder. 
 2. General Restriction on
Transfer. No Family Agreement Shareholder shall effect any sale, assignment, pledge, gift or other disposition, for consideration or otherwise, whether voluntary, involuntary, by will or intestacy, or by operation of law (a Transfer) of
any Shares or any interest therein except in accordance with the provisions of this Agreement. A Transfer or attempt to effect a Transfer subject to the provisions of this Agreement shall be deemed to occur whenever any interest in any Shares is
transferred or is attempted to be transferred, voluntarily, involuntarily or by operation of law, irrespective of whether any change in the record ownership of the Shares occurs. Any Transfer or attempted Transfer in violation of the Agreement (a
Non-complying Transfer) shall not be recognized by the Company for any reason and shall be void. 
 3. Permitted
Transfers. Each Family Agreement Shareholder agrees that he, she or it will not effect any Transfers of any Shares after the date of becoming a party to this Agreement, except as permitted by this Agreement. 

3.1 Permitted Transferees. A Family Agreement Shareholder may Transfer Shares to any of the following (Permitted
Transferees), provided that the Permitted Transferee complies with the conditions contained in Section 3.2 (a Permitted Transfer): 
 (a) Lineal Descendants who are or become Family Agreement Shareholders (who may hold the Shares as separate or community property). The term Lineal Descendants shall mean biological and adopted
descendants of W. Walter Williams, and for purposes of this Agreement only shall also include Dale Myers and Harold Zimmerman, except that Dale Myers and Harold Zimmerman shall not be considered Lineal Descendants in the context of any provisions in
this Agreement dealing with divorce. 
 (b) A trust (which includes, for purposes of this Agreement, a custodial
account under a uniform gift to minors act) (hereafter referred to as a Permitted Trust) having the following provisions: 
 (i) either: (a) a charitable lead trust for which all of the remainder beneficiaries are Lineal Descendants; or (b) a trust for which the only beneficiaries are: one or more Lineal Descendants;
one or more of the following spouses of a Lineal Descendant: Gro Buer or Michael Westling (a Shareholder Spouse); a person other than a Shareholder Spouse who is married to a Lineal Descendant who is a Family Agreement Shareholder (a
Spouse), provided that Shares held by a Shareholder Spouse and the interests of a Spouse in any Shares are subject to the provisions of Section 6; or any of the following individuals: Kaya Westling, Craig Westling, Brooke VanderHoogt and
Brittney VanderHoogt 

  
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(hereafter collectively, the Stepchildren and each a Stepchild), provided that the Shares held by a Stepchild are subject to the provisions of Section 6; 

(ii) either: 
 (a) the trustee(s) having voting rights under the trust instrument with respect to Shares held by the trust are persons who are Family Agreement Shareholders who are: (i) Lineal Descendants; or
(ii) Stepchildren or Shareholder Spouses who may exercise such voting rights (at Family Agreement Shareholders meetings and meetings of Company Shareholders) solely with respect to Shares held as of the Effective Date by themselves or by a
trust for which the Stepchild or Shareholder Spouse is at the time of the voting the current income beneficiary of the trust; or 
 (b) the trustee(s) have entered into a voting agreement approved by the duly elected officer of the Company holding the position of corporate secretary (the Secretary of the Company) which remains
in effect (a Family Shareholder Voting Agreement) under which the Shares will be voted (at Family Agreement Shareholders meetings and meeting of Company Shareholders) in the discretion of a Family Agreement Shareholder who is: (i) a
Lineal Descendant; or (ii) a Stepchild or Shareholder Spouse who may exercise such voting rights solely with respect to Shares held as of the Effective Date by themselves or by a trust for which the Stepchild or Shareholder Spouse is at the
time of the voting the current income beneficiary of the trust; 
 (c) An entity, other than a Permitted Trust,
for which: 
 (i) all legal and beneficial interests in the entity are held by Lineal Descendants or Permitted
Trusts; and 
 (ii) for which a majority of the board of directors, managers or other controlling body are
Lineal Descendants who are Family Agreement Shareholders or the entity has entered into a Family Shareholder Voting Agreement with a Lineal Descendant who is a Family Agreement Shareholder (hereafter referred to as a Permitted Entity);

 (d) The Company; or 
 (e) The ESOP. 
 3.2 Conditions for Permitted Transfers.
A Family Agreement Shareholder may effect a Permitted Transfer of any or all of his, her or its Shares to one or more other Permitted Transferees, so long as the following requirements are met: 

  
 4 

 (a) If a Family Agreement Shareholder wishes to sell Shares, such Shares
shall first be offered to Lineal Descendants who are Family Agreement Shareholders, Permitted Trusts, or Permitted Entities (collectively, Family Permitted Transferees), in accordance with the provisions of Section 3.4(a) or (b), prior
to any Transfer to other Permitted Transferees. 
 (b) Each Permitted Transferee, who was not, prior to the
Permitted Transfer, a party to this Agreement, becomes a party to this Agreement by executing a Shareholder Consent to be bound by this Agreement, and the Spouse of the Transferee signs a spouse consent in the form attached hereto as Exhibit C
(Spouse Consent). 
 (c) In the case of a Permitted Transfer to a Permitted Trust or other Permitted
Entity, the Trustee of the Permitted Trust or all of the owners of a Permitted Entity shall provide, from time to time upon request of the Secretary of the Company, a written certification, accompanied by documentary and other evidence acceptable to
the Company and its legal counsel, that the Permitted Trust or Permitted Entity is in compliance with the requirements in this Agreement. 
 (d) Upon compliance with the conditions contained in this Section, the Permitted Transferee shall become a Family Agreement Shareholder for purposes of this Agreement, and the Secretary of the Company
shall be authorized to replace Exhibit A with a revised version to reflect the name and address of, and number of Shares owned by, Family Agreement Shareholders as of that date, including the Permitted Transferee, which shall be dated as of the date
it is attached to this Agreement in the records of the Company. 
 3.3 Transfers to Charities. A Family
Agreement Shareholder may also Transfer Shares to a charity which qualifies as a 501(c)3 entity under the Internal Revenue Code (a Charity), provided that: 

(a) the Transfer is a charitable gift; 

(b) the Charity enters into an agreement approved by the Secretary of the Company under which it acknowledges that:
(i) Permitted Transferees have the right to purchase the Shares from the Charity at any time, on the terms provided in Section 3.3(d) below; and (ii) the Charity may only Transfer the Shares to a Permitted Transferee; and 

(c) if required by the donor as a condition of the gift, the Charity enters into either: (i) a Family Shareholder
Voting Agreement granting a Lineal Descendant who is a Family Agreement Shareholder the right to vote the Shares given to the Charity at meetings of the holders of record of the Company’s Shares (the Shareholders); or (ii) an
agreement with the donor to vote the Shares in favor of any 

  
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action in which a majority of the Shares held by Family Agreement Shareholders present at a meeting of the Shareholders are voted in favor, and against any action on which a majority of Shares
held by Family Agreement Shareholders present at a meeting of the Company’s Shareholders are voted against, and in either event a copy of the agreement shall be provided to the Secretary of the Company by the donor. 

(d) In the event of a Transfer to a Charity that otherwise complies with this Section 3.3, the Family Permitted
Transferees, the Company and the ESOP shall have the right to purchase the Shares held by the Charity at any time following the Transfer to the Charity. The Secretary of the Company shall notify the Family Permitted Transferees and the ESOP of such
Transfer within a period of fifteen (15) days after it occurs. In the event any of the Family Permitted Transferees, the Company and the ESOP wish to purchase some or all of the Shares which are held by the Charity, he, she or it shall notify
the Company and the Charity in writing. The Secretary of the Company shall then follow the procedures of Sections 4.3, 4.4 and 4.5 to effect a Transfer of the Shares by purchase from the Charity. 

3.4 Procedure. A Family Agreement Shareholder who wishes to effect a Transfer (a Transferor) may make a
Permitted Transfer of Shares to a Permitted Transferee by: 
 (a) entering into a Transfer, with or without
consideration, to a Family Permitted Transferee on whatever terms the Transferor and a Family Permitted Transferee may agree upon, subject to satisfaction of the conditions contained in Section 3.2; or 

(b) notifying the Secretary of the Company that he or she or it wishes to sell Shares to Permitted Transferees, in which
event: first, other Family Permitted Transferees; and second, the Company; and third, the ESOP will have the option to purchase the Shares for a price equal to the most recently established ESOP Value, subject to the conditions of Section 3.2
and the provisions specified in Section 4. 
 3.5 Transfers to Others. Except for Transfers to
Charities in accordance with Section 3.3, Shares may only be transferred to other persons or entities who are not Permitted Transferees after the Shares have first been offered to Permitted Transferees in accordance with Section 4. Any
remaining Shares which are not purchased by Permitted Transferees may then be sold in accordance with Section 5. 
 4.
Priority. 
 4.1 Offer Notice. If a Family Agreement Shareholder wishes to transfer Shares utilizing
the procedure described in Section 3.4(b), the Transferor shall deliver a notice (the Offer Notice) to the Company specifying the number of Shares proposed to be transferred (the Offered Shares), and indicating whether the Seller
is only willing to 

  
 6 

 
sell the Shares on terms requiring full payment upon closing or on the installment terms specified in Section 4.5. If the Transferor does not specify full payment terms, the purchaser may
elect the installment terms described in Section 4.5. The Company shall promptly forward a copy of the Offer Notice to the Family Permitted Transferees and to the ESOP. 

4.2 Effect of Offer Notice. Delivery of an Offer Notice under Section 4.1 shall constitute an offer by the
Transferor, on the date the Offer Notice is delivered in accordance with this Section 4 (the Offer Date) to sell the Offered Shares to the Family Permitted Transferees, the Company and the ESOP (in the priority order specified in
Section 4.3), at a price equal to the per share value of the Shares held by the ESOP as of the end of the calendar quarter immediately preceding the Closing Date, as determined by the appraisal of the Shares periodically obtained by the
Company’s Retirement Benefits Committee (the ESOP Value); and on the other terms and conditions, and in accordance with the procedures, specified in this Agreement. 

4.3 Share Purchase Procedures. Each purchase of Offered Shares from a Family Agreement Shareholder who wishes to
transfer Shares under Section 3.4(b), or purchase of Shares as a result of an Option Event under Section 6, shall be effected in accordance with the following procedures: 

(a) First Purchase Priority. The Family Permitted Transferees shall have the first priority right to purchase any
or all of the Offered Shares, subject to the other provisions of this Agreement, on a pro rata basis proportionate to their ownership of Shares as a percentage (Pro Rata Portion) of all Shares held by Family Permitted Transferees desiring to
exercise this right (Accepting Family Offerees). Each Accepting Family Offeree shall deliver a notice to the Transferor and to the Company (an Acceptance Notice), within a period of thirty (30) days (the Family Offeree
Acceptance Period) after the Offer Date, specifying the number of Offered Shares that he, she or it agrees to purchase. If any Accepting Family Offeree agrees to purchase less than his or her Pro Rata Portion of the Offered Shares, each
Accepting Family Offeree who agrees to purchase more than his or her Pro Rata Portion of the Offered Shares shall have allocated to him, her or it such additional portion of the Offered Shares not so allocated under the preceding sentence as the
number of Shares of such Accepting Family Offeree bears to the aggregate number of Shares of all Accepting Family Offerees who agree to purchase more than their Pro Rata Portion of the Offered Shares. This allocation procedure shall be repeated
until all of the Offered Shares, or the aggregate number of Offered Shares specified in all of the Accepting Family Offerees’ Acceptance Notices, if less, have been allocated among the Accepting Family Offerees, or it has been determined that
one or more Accepting Family Offerees wish to purchase the remaining Offered Shares. The Accepting Family Offerees agree to cooperate with one another, and provide each other with such information as may be required, to

  
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implement the foregoing allocation procedure. The Secretary of the Company shall be entitled to facilitate the allocation procedures as he or she may deem appropriate. 

(b) Second Purchase Priority. If some or all of the Accepting Family Offerees do not purchase all of the
Offered Shares, the Company shall have the second priority to purchase any or all of the remainder of the Offered Shares, subject to the provisions of this Agreement. If the Company desires to exercise this right, it shall deliver an Acceptance
Notice to the Transferor within a period of twenty (20) days after the expiration of the Family Offeree Acceptance Period (the Company Acceptance Period), specifying the number of remaining Offered Shares that it agrees to purchase.

 (c) Third Purchase Priority. If Family Permitted Transferees do not agree to purchase all of the
Offered Shares in accordance with Section 4.3(a) and the Company does not agree to purchase all of any remaining Offered Shares in accordance with Section 4.3(b), the ESOP shall have the third priority right to purchase any or all of the
balance of the Offered Shares, subject to the provisions of this Agreement. If the ESOP desires to exercise this right, it shall deliver an Acceptance Notice to the Company and to the Transferor within a period of twenty (20) days after the
expiration of the Company’s Acceptance Period described in Section 4.3(b), specifying the number of Offered Shares that it wishes to purchase (the ESOP Acceptance Period). 

(d) Acceptance Notice Creates Contract. If one or more of the Accepting Family Offerees, the Company or the ESOP
agree to purchase, in the aggregate, some or all of the Offered Shares within the acceptance periods specified in Sections 4.3(a), (b) or (c), delivery to the Transferor of the Acceptance Notices by those who agree to purchase Offered Shares
(Purchasers) shall create binding contracts between the Purchasers and the Transferor for the purchase and sale, at the time and in the manner specified in Section 4.4 and Section 4.5, of the number of Offered Shares specified in
their respective Acceptance Notices (as such number is finally allocated among the Purchasers under this Section 4). 
 (e) Reallocation. Notwithstanding the foregoing method of allocating Offered Shares among the Purchasers, at any time before the Closing Date, the Purchasers shall be allowed to enter into a
binding written agreement among themselves reallocating the Offered Shares to be purchased by them so long as all of the Offered Shares for which Acceptance Notices have been delivered are purchased in accordance with such reallocation. 

4.4 Price and Closing. The purchase price (Purchase Price) for the Transfer to the Purchasers of all of the
Offered Shares for which Acceptance Notices have been delivered shall be consummated at the ESOP Value on a date set by the Secretary of the Company (the Closing Date), which date shall be within the next Trading Window determined by the
Secretary of the Company to be practical for the closing of the Transfer. For purposes of this Agreement, Trading Window shall mean 

  
 8 

 
the time period declared by the Secretary of the Company as a permitted period for purchasing or selling Shares of the Company. At the closing of the Transfer, the Transferor shall deliver to the
Company, against receipt of the consideration to which the Transferor is entitled under this Section 4, certificates for the Offered Shares properly endorsed to effect the Transfer to the Purchasers. Closing of the Transfer shall constitute a
representation and warranty by the Transferor that: he or she or it owns the Offered Shares; he, she or it has not transferred or attempted to transfer any interest in the Offered Shares to any other person or entity; he, she or it has full power
and authority to transfer and deliver the Offered Shares to the Purchasers; and the Offered Shares are free and clear of any and all liens, encumbrances, charges, duties and assessments whatsoever. 

4.5 Installment Purchase. The Purchase Price to be paid at the Closing Date for Transfers made in accordance with
this Section shall be paid in installments as follows: twenty-five percent (25%) paid down at the Closing Date and the balance shall be paid in accordance with the terms of a Promissory Note in the form attached as Exhibit D; provided, however,
that the Purchase Price shall be paid in full in immediately available U.S. funds at closing if either: the Offer Notice described in Section 4.1 specified full payment terms; or the Purchaser elects to pay the Purchase Price in full at the
Closing Date. 
 4.6 Subsequent Transfers. Failure by any Family Permitted Transferee or the Company or
the ESOP to exercise his, her or its right of purchase under this Section 4 with respect to one or more proposed Transfers of Offered Shares shall not adversely affect his, her or its right to exercise such right with respect to any subsequent
proposed Transfer of Offered Shares. 
 5. Sale To Other Transferee. 

5.1 Conditions of Sale. If a Family Agreement Shareholder delivers an Offer Notice to sell Shares in accordance
with Section 4.1, and, after following the procedures described in Section 4, some of the Offered Shares remain unpurchased, any Offered Shares not purchased by Accepting Family Offerees, the Company or the ESOP in accordance with
Section 4 may be transferred by the Transferor to a transferee who/which is not a Permitted Transferee, provided that: (1) the price is equal to or greater than the ESOP Value; (2) the closing occurs within sixty (60) days after
the expiration of the ESOP Acceptance Period specified in Section 4.3(c); and (3) the transferee executes the Company’s then current form of shareholder agreement for Shareholders who are not Permitted Transferees, on such terms as
the Company may require as of the date of the Transfer (the General Shareholders Agreement). 
 5.2
Re-Offer. In the event the purchase price in the proposed Transfer to a Non-Permitted Transferee in accordance with Section 5.1 is less than the ESOP Value at which the Shares were offered to Permitted Transferees in accordance with
Section 4, the Transferor must resubmit an Offer Notice as described in Section 4, with 

  
 9 

 
the proposed price, and follow the procedures of that Section to enable the Family Permitted Transferees, the Company and the ESOP to exercise a right of first refusal to purchase the Offered
Shares on the price and terms that the Transferor proposes to sell the Shares to the transferee who/which is not a Permitted Transferee. The Family Permitted Transferees, Company and ESOP shall have the right to purchase the Offered Shares by
matching that price and those terms, in that order of priority, in accordance with the procedures described in Section 4. 

6. Option Events. 
 6.1 Definition of Option Event. For purposes of this Agreement, an Option Event means the occurrence, with respect to a Family Agreement Shareholder, of any of the following events or
conditions: 
 (a) The filing of a voluntary or involuntary petition in bankruptcy by or against a Family
Agreement Shareholder (unless, in the case of an involuntary petition, the same is dismissed within sixty (60) days from the date of filing); 
 (b) Any general assignment by a Family Agreement Shareholder for the benefit of his or her creditors; 
 (c) A dissolution of the marriage between: a Family Agreement Shareholder who is a Lineal Descendant and a Shareholder Spouse; a Family Agreement Shareholder who is a Lineal Descendant and a Spouse; or a
parent of a Stepchild and a Family Agreement Shareholder who is a Lineal Descendant (a Divorce); 
 (d) In
the event that, following the death of an individual Family Agreement Shareholder, the Shares held by the deceased Family Agreement Shareholder are not transferred to a Permitted Transferee within the time period specified in Section 6.2(c);

 (e) In the event a Permitted Trust or Permitted Entity ceases to meet the qualifications set out in
Section 3.1; or 
 (f) Any attempted Non-complying Transfer. 

6.2 Optional Purchase of Shares. 

(a) In General. If an Option Event other than a Divorce occurs with respect to a Family Agreement Shareholder, the
other Family Permitted Transferees, the Company and the ESOP shall have the right to purchase the Shares held by the Family Agreement Shareholder who has experienced the Option Event on the same terms and conditions and in accordance with the same
procedures, except as otherwise provided in this Section 6, that would have applied if the Family Agreement Shareholder had made 

  
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an Offer to sell such Shares pursuant to Section 4 at the price provided in Section 4.4 and on the terms provided in Section 4.5. 

(b) Upon Divorce. Recognizing that certain Shareholder Spouses and Spouses currently have, or may in the future
receive or be awarded an interest in Shares, the following provisions are intended to address the disposition of such Shares in the event of Divorce. Nothing in this Agreement is intended to create a presumption that Shareholder Spouses and Spouses
have a right to an ownership interest in or the economic value of Shares upon Divorce. If a Divorce occurs with respect to a Family Agreement Shareholder and a Permitted Transfer to a Permitted Trust is not at that time made by the Family Agreement
Shareholder and the Shareholder Spouse or the Spouse of the Family Agreement Shareholder in accordance with the last sentence of this Section 6.2(b), the Family Agreement Shareholder who is a Lineal Descendant and a party to the Divorce shall
have the right to purchase any or all Shares awarded to, owned by or held for the benefit of the Shareholder Spouse or the Spouse and of any Stepchildren who are children of the Shareholder Spouse or Spouse (such circumstances being referred to
herein as a Spousal Award), on the same terms and conditions and in accordance with the same procedures, except as otherwise provided in this Section 6, that would have applied if the Shareholder Spouse, Spouse or Stepchildren had
submitted an Offer Notice to sell such Shares pursuant to Section 4 at the price provided in Section 4.4 and on the terms provided in Section 4.5. If that Lineal Descendant does not exercise his or her purchase right with respect to
all of the Shares that were part of the Spousal Award to or for the benefit of the Shareholder Spouse, Spouse or Stepchildren and a Permitted Trust is not created in accordance with the last sentence of this Section 6.2(b), the other Family
Permitted Transferees, the ESOP and the Company shall have the right to do so on the same terms and in the same manner as set forth above in Section 6.2(a). In the event that both parties to a Divorce between a Family Agreement Shareholder and
a Shareholder Spouse or a Spouse agree, as part of the final Divorce proceedings, to effect a Permitted Transfer of Shares to a Permitted Trust, for the benefit of the former Shareholder Spouse or the former Spouse for a term not to exceed the
lifetime of that former Shareholder Spouse or former Spouse, or for the benefit of the Lineal Descendants of the marriage which is being dissolved, the purchase option described in this Section 6.2 shall not apply to such Shares. 

(c) Upon the Death of an Individual Family Agreement Shareholder. Following the death of an individual Family
Agreement Shareholder, Shares in which he or she held a separate or community property interest may be transferred to a Family Permitted Transferee, including a Permitted Trust. If the Shares are not transferred to a Family Permitted Transferee
within two hundred seventy (270) days following the death of the Family Agreement Shareholder, the Shares shall immediately become subject to the option to purchase the Shares described in Section 6.2(a). The provisions of this Section
apply to the separate or community interests of the 

  
 11 

 
deceased Family Agreement Shareholder who is a Lineal Descendant and to the community interests held by the other member of his or her marital community. 

6.3 Option Notice; Option Price. Within a period of fifteen (15) days after the occurrence of an Option Event,
the Family Agreement Shareholder or his or her trustee in bankruptcy, personal representative or guardian, as appropriate, who shall be deemed to be the Transferor for purposes of Section 4 (except in the case of a Spousal Award with respect to
the Family Agreement Shareholder, where the former Shareholder Spouse or the former Spouse shall be deemed to be the Transferor), shall deliver notice to the Company of such event specifying the date of such event and describing in reasonable detail
the nature of the event and the number of Shares affected. For purposes of Section 4, such notice shall be deemed to be an Offer Notice, the date such notice is delivered to the Company shall be deemed to be the Offer Date, the number of Shares
affected shall be deemed to be the Offered Shares, and the price and terms shall be in accordance with Section 4.4 and Section 4.5. If the Company has not received this notice by the end of such period, any of the Family Agreement
Shareholders or the Company who has knowledge of the Option Event may deliver notice to the other Family Agreement Shareholders or to the Company at any time after the end of such period, and the notice shall be deemed to be the Offer Notice.
Determination of which Family Permitted Transferees will be Accepting Family Offerees and the manner of allocation of the Offered Shares among the Accepting Family Offerees and the Company or the ESOP will be made in accordance with the procedures
of Section 4, except that, in the case of Shares that are part of a Spousal Award to a former Shareholder Spouse or former Spouse, in allocating Offered Shares under Section 4.3(a), the Family Agreement Shareholder who is a Lineal
Descendant and a party to the Divorce in which the Spousal Award is made shall be allocated all of the Offered Shares that he or she agrees to purchase prior to any allocation to the other Family Permitted Transferees. 

6.4 Payment for the Shares. If one or more of the Accepting Family Offerees, the Company and the ESOP agree to
purchase, in the aggregate, some or all of the Offered Shares (the persons agreeing to purchase the Offered Shares shall be deemed to be the Purchasers for purposes of Section 4), then the Purchase Price for the Offered Shares shall be
determined in accordance with Section 4.4. The Purchase Price shall be allocated among the Purchasers in proportion to the number of Offered Shares purchased by each. The Purchase Price shall, at the Purchasers’ option, be paid in cash at
the Closing Date or be paid on terms with twenty-five percent (25%) down and the balance under a Promissory Note in the form attached as Exhibit D. 
 7. Effect of Non-complying Transfer. A Non-complying Transfer shall be void, and, upon presentation for transfer of Shares that are the subject of a Non-complying Transfer, the Company shall refuse
to transfer the Shares on its share transfer records. The failure of the Family Agreement Shareholders, the Company or the ESOP to purchase, pursuant to Section 6, Shares that are the subject of a Non-complying

  
 12 

 
Transfer shall not be construed as permission to proceed with the Non-complying Transfer. In addition, any Family Agreement Shareholder or the Company may institute and maintain a proceeding to
compel specific performance of this Agreement by the Family Agreement Shareholder attempting the Non-complying Transfer, it being agreed that the other Family Agreement Shareholders not in default and the Company do not have an adequate remedy at
law. 
 8. Family Shareholder Voting. The Family Agreement Shareholders agree to the following provisions regarding the
voting of their Shares. 
 8.1 Family Agreement Shareholders Meeting. Prior to each annual or special
meeting of the Shareholders of the Company, the Family Agreement Shareholders shall participate in a meeting (a Family Agreement Shareholders Meeting) to confer about the matters to be considered at the Shareholders meeting and to determine
how Shares held by them will be voted at the Shareholders meeting. The following procedures shall apply to the Family Agreement Shareholders Meetings: 
 (a) Family Agreement Shareholders may participate in a Family Agreement Shareholders Meeting in person, by telephone or by proxy, or by submitting electronic ballots to the Secretary of the Company, who
shall present them at the Family Agreement Shareholders Meeting. 
 (b) If the CEO or Chairman of the Company is
a Family Agreement Shareholder, he or she shall preside at the Family Agreement Shareholders Meeting as chair. If the CEO or Chairman is not a Family Agreement Shareholder, the chair shall be elected by a majority of Shares held by participating
Family Agreement Shareholders. Subject to the requirements set forth in this Section 8, the chair shall determine how the meeting will be conducted and when and in what format the ballot shall be taken. The chair will also have authority to
call for further Family Agreement Shareholders Meetings and set the place, date and time for such meetings. 

(c) The chair shall appoint a person to serve as secretary of each Family Agreement Shareholders Meeting to record the
votes taken at the meeting, and take minutes of the proceedings. The Secretary of the Company may perform this function in the chair’s discretion. 
 (d) The Family Agreement Shareholders present at the Family Agreement Shareholders Meeting may, by a simple majority vote of their Shares, determine whether to allow other persons to be present at the
meeting as guests. 
 (e) Shares held by Lineal Descendants as community property may only be voted at a Family
Agreement Shareholders Meeting by the Lineal Descendant member of the marital community and may not be voted by the Spouse of the Lineal Descendant at such meetings. 

  
 13 

 (f) Shares held by a Shareholder Spouse or a Stepchild as of the Effective
Date may be voted by such person at a Family Agreement Shareholders Meeting. 
 (g) Voting of Shares by Permitted
Trusts or Permitted Entities shall be in accordance with Section 3.1 (b) or 3.1(c). 
 8.2 Voting
for the Election of Directors and on Minor Decisions. At a Family Agreement Shareholders Meeting held prior to a Shareholders meeting of the Company at which directors will be elected or shareholder action is proposed other than with respect to
those matters specified in 8.3 (a Minor Decision), the Family Agreement Shareholders will cast ballots indicating their preference for persons to be elected to fill available Board seats or whether they approve the proposed Minor Decision. If
more than fifty percent (50%) of the Shares then held by Family Agreement Shareholders at the time of the meeting are voted in favor of a candidate or a proposed Minor Decision, each Family Agreement Shareholder hereby agrees that all of the
Shares held by him, her or it which are subject to this Agreement shall be voted in favor of that candidate or Minor Decision at the Shareholders meeting, regardless of whether the Family Agreement Shareholder holding such Shares attended or
participated in the Family Agreement Shareholders Meeting. If a nominee for a position on the Board or a proposed Minor Decision does not receive the approval of a majority of the Shares then held by Family Agreement Shareholders, then all Family
Agreement Shareholders shall be free to vote their Shares as they choose at the Shareholders meeting with respect to that position or Minor Decision, unless the chair calls an additional Family Agreement Shareholders Meeting prior to the
Shareholders meeting at which a majority vote is obtained. 
 8.3 Major Decisions. If one of the following
matters is to be considered at the Shareholders meeting, it shall be considered a Major Decision: 
 (a)
Amendment of the Articles of Incorporation of the Company (the Articles of Incorporation). 
 (b) Adoption
of a plan of merger or plan of share exchange. 
 (c) Sale, lease, exchange or other disposition of all or
substantially all of the property of the Company, other than in the usual and regular course of business. 
 (d)
Dissolution of the Company. 
 (e) Any other matter requiring the affirmative vote of two thirds of the
outstanding shares of the Company. 
 At a Family Agreement Shareholders Meeting held before a Shareholders meeting at which a Major Decision is
to be presented for a vote by all Shareholders, the Family 

  
 14 

 
Agreement Shareholders will cast ballots indicating their preference for how the Family Agreement Shareholders’ Shares shall be voted on any such Major Decision. If at least sixty-seven
percent (67%) of Shares then held by Family Agreement Shareholders (a Family Agreement Shareholders Supermajority) are voted in favor of the Major Decision, each Family Agreement Shareholder hereby agrees that all of the Shares held by
him, her or it which are subject to this Agreement shall be voted in favor of the Major Decision at the Shareholders meeting, regardless of whether the Family Agreement Shareholder holding such Shares attended or participated in the Family Agreement
Shareholders Meeting. If the proposed Major Decision does not receive the affirmative vote of a Family Agreement Shareholders Supermajority, then all Family Agreement Shareholders shall be free to vote their Shares as they choose at the Shareholder
meeting with respect to that Major Decision, unless the chair calls an additional Family Agreement Shareholders Meeting prior to the Shareholder meeting at which an affirmative vote of a Family Agreement Shareholders Supermajority is obtained.

 8.4 Appointment of Proxies. To implement any election of Directors, Minor Decision, or Major Decision
approved or taken by the requisite vote at a Family Agreement Shareholders Meeting, each Family Agreement Shareholder hereby appoints Bruce W. Williams, or in his absence either Janet Westling or Steve Zimmerman, with full power of substitution in
each of them, to vote and exercise all voting and related rights (to the fullest extent that such Family Agreement Shareholder is entitled to do so) in accordance with the outcome of voting determinations pursuant to Section 8.2 or
Section 8.3, as the case may be, with respect to all of the Shares that now are or hereafter may be legally or beneficially owned by such Family Agreement Shareholder, and any and all other shares or securities of the Company issued or issuable
in respect thereof on or after the date hereof. In order to implement this appointment, each Family Agreement Shareholder agrees to execute an Irrevocable Proxy in the form of Exhibit E hereto and to deliver such Irrevocable Proxy to the Secretary
of the Company. 
 9. Shareholder Spouse and Spouse Consent. 

9.1 Shareholder Spouse Consent. The execution of a Shareholder Consent by a Shareholder Spouse signifies that: the
Shareholder Spouse has consented to become a party to this Agreement, and acknowledges that any interest the Shareholder Spouse at any time owns in any Shares of the Company, whether in the Shareholder Spouse’s own name, jointly with a Lineal
Descendant under community property laws or otherwise, shall be subject to the terms of this Agreement, specifically including the provisions of Section 2, Section 6 and Section 8. 

9.2 Spouse Consent. The execution of a Spouse Consent by a Spouse signifies that: the Spouse approves or ratifies
the execution of a Consent to become a party to the Family Shareholder Agreement by the person to whom the Spouse is married; and an acknowledgement that any interest the marital community of which the Spouse is

  
 15 

 
a party at any time owns in the Shares of the Company shall be subject to the terms of this Agreement, specifically including the provisions of Sections 2, 6 and 8. 

9.3 Existing and Future Spouses. If a Family Agreement Shareholder who is a Lineal Descendant is married at the
time he or she executes this Agreement, or if a Family Agreement Shareholder who is a Lineal Descendant marries or remarries after executing this Agreement, the Family Agreement Shareholder agrees to use best efforts to cause his or her Shareholder
Spouse or Spouse to execute this Agreement or a Spouse Consent within a reasonable period of time, not to exceed sixty (60) days after the Family Agreement Shareholder has signed this Agreement for existing Spouses or Shareholder Spouses, or
sixty (60) days after the marriage for future Spouses. If the Shareholder Spouse has not signed the Agreement or if such Spouse Consent is not delivered within that time period, the Family Agreement Shareholder will not be considered a Family
Permitted Transferee or entitled to be the recipient of any Transfer of Shares until the Agreement or Spouse Consent has been executed by his or her Shareholder Spouse or Spouse and delivered to the Company. 

10. Company’s Responsibilities. The Company agrees to perform the following duties to assist the Family Agreement
Shareholders to carry out the Agreement. 
 10.1 A purported transferee of a Transfer not made in
accordance with the provisions of the Agreement shall not be recognized as a Shareholder of the Company for any purpose whatsoever. 
 10.2 The Secretary of the Company, or his or her designee, shall review the written certifications, as provided by Section 3, and approve or disapprove the certifications as such Secretary or
designee shall, in his or her discretion, deem appropriate. 
 10.3 The Company shall promptly forward to
the Family Agreement Shareholders copies of all Offer Notices received by the Company under Section 4.1, a summary of Acceptance Notices received by the end of the Family Offeree Acceptance Period, a copy of any Acceptance Notice received from
the Company or the ESOP as provided by Section 4.3, and such other notices as may reasonably be required to assist in the timely closing of the transactions covered by Section 4; and shall forward to Family Agreement Shareholders the
notices to be given under Section 6. 
 10.4 In issuing Shares transferred in accordance with the
Agreement, the Company shall affix to the newly issued Shares such legends, as may be required by this Agreement or determined by the Secretary of the Company to be appropriate, including without limitation, the legend described in
Section 11.4. 
 10.5 The Company shall give all Family Agreement Shareholders at least twenty
(20) days written notice of meetings at which directors of the Company are to be 

  
 16 

 
elected, amendments to the Articles of Incorporation of the Company are to be voted on by Shareholders, or other Major Decisions are to be voted on by the Shareholders; record the votes of the
Shares on the matters to be voted on at the Family Agreement Shareholders meeting and cause the Shares to be voted at Shareholder meetings in accordance with the provisions of Section 8. 

10.6 The Secretary of the Company is authorized to revise Exhibit A to reflect changes in the list of Family
Agreement Shareholders. 
 11. Miscellaneous Provisions. 

11.1 Further Assurances. Each party agrees to perform any further acts and to execute and deliver any further
documents that may be reasonably necessary to carry out the purposes of this Agreement. 
 11.2
Attorneys’ Fees. In the event that a lawsuit or arbitration is commenced in connection with this Agreement between parties to it, the prevailing party or parties shall, in addition to any other relief, be entitled to an award of reasonable
costs and expenses, including but not limited to attorneys’ fees, incurred in connection therewith, including such costs and expenses incurred on appeal. 
 11.3 Construction; Venue; Submission to Jurisdiction. It is agreed and understood that this Agreement is made in accordance with and shall be interpreted under the laws of the State of Washington.
Any disputes arising under or in connection with this Agreement shall be resolved through arbitration in accordance with Section 11.15, provided that this shall not prevent a party from seeking equitable relief from a federal or state court
sitting in Seattle, Washington. If any action or other proceeding be brought to compel, enforce, or in aid of such arbitration, or for equitable relief, the venue of said actions shall be in the United States District Court for the Western District
of Washington or the Superior Court for King County, Washington. Each of the parties submits to the jurisdiction of any state or federal court sitting in Seattle, Washington, in any action or proceeding arising out of or relating to this Agreement
and agrees that all claims in respect of the action or proceeding may be heard and determined in any such courts. Each party also agrees not to bring any action or proceeding arising out of or relating to this Agreement in any other court. Each of
the parties waives to the fullest extent permitted by law any defense that maintenance of the proceeding in any such court is inconvenient, and waives any bond, surety, or other security that might be required of any other party with respect
thereto. Each party agrees that a final judgment in any action or proceeding so brought shall be conclusive and may be enforced by suit on the judgment or in any other manner provided by law or in equity. 

  
 17 

 11.4 Securities Laws; Legend. 

(a) Each Family Agreement Shareholder represents to all other Family Agreement Shareholders and to the Company that all of
such Family Agreement Shareholder’s Shares have been acquired by such Family Agreement Shareholder for investment and not with a view to sale or distribution within the meaning of the Securities Act of 1933, as it may be amended and is in
effect during the term of this Agreement (the Securities Act), and that he or she has been advised that the Shares have not been registered with the Securities and Exchange Commission and may not be offered, sold or otherwise transferred
except in compliance with the Securities Act. 
 (b) Upon the reissuance or transfer of any Shares, the Family
Agreement Shareholder shall deliver the certificates representing his or her Shares to the Company to have placed upon the reissued or transferred Shares a legend in substantially the following form: 

The shares represented by this certificate (a) are subject to the terms of a Family Shareholders Agreement restricting the transfer
of these shares and making them subject to a voting agreement, as such agreement may be amended from time to time as provided therein (a copy of which Agreement may be examined at the principal office of the corporation), and (b) have not been
registered under federal or any applicable state securities acts and cannot be transferred without an opinion of counsel satisfactory to the corporation’s counsel that such transfer will not violate any such securities laws. 

11.5 Amendments; Waiver. Prior to the tenth (10th) anniversary of the Effective Date, the provisions of this
Agreement may be amended or waived, in whole or in part, only upon the consent of a Family Agreement Shareholders Supermajority, and on or after the tenth (10th) anniversary of the Effective Date may be amended or waived, in whole or in part, only upon the consent of
majority of the Family Agreement Shareholders; provided, however, that no such amendment shall materially reduce the rights or materially increase the obligations of a Family Agreement Shareholder, unless the Family Agreement Shareholder
consents to the amendment or the amendment effects a comparable reduction in the rights or increase in the obligations of all Family Agreement Shareholders that is proportionate to the respective number of Shares of the Family Agreement Shareholders
at the time of the amendment. No waiver of any breach of any provision of this Agreement shall be held to be a waiver of any other or subsequent breach, and the failure of a party to enforce at any time any provision hereof shall not be deemed a
waiver of any right of such party to subsequently enforce such provision or any other provision hereof. No amendment to this Agreement may be made which would increase the Company’s responsibilities under this Agreement unless the Company
specifically approves such amendment by becoming a signatory to it. 

  
 18 

 11.6 Successors and Assigns. This Agreement shall be binding on, and
shall inure to the benefit of, the parties hereto and their respective heirs, personal representatives, successors and assigns. The Company shall not permit the Transfer of any of the Shares on its books or issue new certificates representing any of
the Shares to a Transferee who or which is not a Family Agreement Shareholder unless and until each Transferee shall have executed an appropriate form of Shareholder Consent or other form of agreement as specified herein, and the certificate for the
Shares shall have been prepared with such legends as may be deemed to be appropriate by the Secretary of the Company. 
 11.7 Testamentary Provisions. Each Family Agreement Shareholder agrees to exercise best efforts to insert in his or her will a direction and authorization to the Family Agreement Shareholder’s
personal representative to fulfill and comply with the provisions of this Agreement, but the failure to do so shall not impact the obligation to comply with the terms of this Agreement. Should a personal representative of a deceased or incompetent
Family Agreement Shareholder not be appointed within a time period that is reasonable in order to effectuate the provisions of this Agreement, either the Company or any of the Family Agreement Shareholders is hereby given the right to petition for
such appointment. 
 11.8 Severability. If any provision of this Agreement, on its face or as applied to
any person or circumstance, is or becomes unenforceable to any extent, the remainder of this Agreement and the application of the provision to any other person, entity, circumstance or extent, shall not be affected, and this Agreement shall continue
in force. 
 11.9 Entire Agreement. This instrument constitutes the sole and entire agreement of the
parties with respect to its subject matter and correctly sets forth the rights, duties and obligations of each as to the other with respect to the subject matter as of its date. Any prior agreements, promises, negotiations or representations
concerning its subject matter not expressly set forth in this Agreement are of no force or effect. 
 11.10
Captions. Section titles and other captions in this Agreement are inserted only as a matter of convenience and for reference and shall in no way define, limit, extend or describe the scope of this Agreement or the intent of any provision hereof.
Whenever the singular number is used in this Agreement, the same shall include the plural, and the masculine shall include the feminine and neuter genders and vice versa, in either case when required by the context. 

11.11 Notices. To be effective, any notice, consent or other communication hereunder by a party shall be in
writing, delivered in person, transmitted via facsimile machine; sent by documented overnight delivery service; mailed by certified or registered mail, postage prepaid, to the other party; or delivered electronically to the email address maintained
in the records of the Company for the recipient. All such 

  
 19 

 
notices, consents and communications shall be deemed to be delivered on the second day after transmittal. Any notice or other communication to the Company or the ESOP shall be sent addressed to
the Company or the ESOP at 2000 Two Union Square, 601 Union Street, Seattle, WA 98101, Attention: HomeStreet, Inc. Corporate Secretary or sent by electronic mail to the Secretary of the Company at his or her Company email address. Any notice or
other communication to a Family Agreement Shareholder shall be sent addressed to the Family Agreement Shareholder at his, her or its physical or email address in the official records of the Company. 

11.12 Counterparts. This Agreement may be executed by the parties in one or more counterparts, all of which taken
together shall constitute one instrument. 
 11.13 Suspension of Time Periods. The death or incompetency
of a Family Agreement Shareholder, or the need to conduct an arbitration pursuant to Section 11.15, shall suspend all time periods set forth in this Agreement for notices required to be given or elections that the Company or a Family Agreement
Shareholder is entitled to make pursuant to this Agreement, for a reasonable time, to allow a personal representative to be appointed for the deceased or incompetent Family Agreement Shareholder, or completion of the arbitration, as the case may be.

 11.14 Changes in Capital Structure. An appropriate adjustment shall be made to any Purchase Price
determined hereunder or to any other provision hereof to equitably reflect any stock dividend, stock split, share combination or other recapitalization or reorganization occurring between the date of the Offer Notice and the Closing Date, the intent
of such adjustment being to assure that the Transferor, in the aggregate, sells the same interest in the Company and receives the same consideration as would have been sold and received if such event had not occurred. 

11.15 Arbitration. Any dispute arising under or in connection with this Agreement will be resolved by arbitration
as set forth in this Section 11.15. Each party, however, will have full access to the courts in accordance with Section 11.3 to compel compliance with these arbitration provisions, to enforce an arbitration award or to seek injunctive
relief, whether or not arbitration is available or under way. The arbitration will take place as follows: 
 (a)
The party or parties demanding arbitration (collectively the demanding party) must give the other party or parties (collectively the responding party) a notice, which must contain, in addition to the demand for arbitration, a
clear statement of the issue or issues to be resolved by arbitration, an appropriate reference to the provision of the Agreement which is involved, the relief the party requests through arbitration, and the names and addresses of at least three
individuals whom the demanding party would consider acceptable as an arbitrator. 

  
 20 

 (b) The responding party shall provide a response to the demanding party
within fifteen (15) days following receipt of the notice. The response shall contain a clear statement of the responding party’s position concerning the issue or issues in dispute and the names and addresses of at least three individuals
whom the responding party would consider acceptable as an arbitrator. If the responding party fails to provide a timely response, the demanding party may apply to the presiding department of the Superior Court for King County, State of Washington,
to designate an arbitrator. 
 (c) Within seven (7) days following receipt of the response, the parties
shall agree on a single arbitrator to settle the dispute. If the parties are unable to do so, then either party may apply to the presiding department of the Superior Court for King County, State of Washington, to designate an arbitrator. 

(d) The arbitration will be conducted in Seattle, Washington within twenty (20) days after the selection of the
arbitrator. The arbitrator will have the authority to determine the scope and timing of discovery. The arbitrator will allow each party an opportunity to submit oral and written evidence and argument concerning the issue or issues in dispute. The
arbitrator may resolve only the issue or issues submitted to arbitration and must include as part of his or her consideration a full review of the Agreement and all material incorporated in the Agreement by reference. The decision of the arbitrator
will be final and will bind the parties. 
 (e) Except to the extent inconsistent with the terms of this
Agreement, the terms and provisions of Chapter 7.04 RCW are incorporated in and made a part of this Agreement. 

11.16 Termination. This Agreement shall automatically terminate upon the earliest of 

(a) the written agreement to terminate executed by a Family Agreement Shareholder Supermajority, if
the termination occurs before the tenth
(10th) anniversary of the Effective Date; 

(b) the written agreement to terminate executed by a majority of Family Agreement Shareholders, if the
termination occurs on or after the tenth
(10th) anniversary of the Effective Date; 

(c) the bankruptcy, receivership or dissolution of the Company; 

(d) the date on which all Shares are held by a single Shareholder; 

(e) the date of closing of an underwritten public offering of common stock of the Company, pursuant to a registration
statement filed by the Company under the Securities Act; or 

  
 21 

 (f) April 14, 2033. 

No such termination shall affect the obligation of the Company or any Family Agreement Shareholder to continue to make payments for Shares already
purchased or then required to be purchased pursuant to this Agreement. 
 11.17 Specific Performance. Each
of the parties acknowledges that one or more of the other parties will suffer immediate and irreparable harm, which will not be compensable by damages alone, if a party repudiates or breaches any of the provisions of this Agreement, or threatens or
attempts to do so. If any such actual, threatened or attempted repudiation or breach occurs, each party agrees and stipulates that the party suffering the harm, in addition to and not in limitation of any other rights, remedies or damages available
to the party at law or in equity, shall be entitled to obtain temporary, preliminary and permanent injunctions in accordance with Section 11.3 in order to prevent or restrain any such breach and enforce specifically the provisions of this
Agreement. 
 11.18 Legal Counsel. Each Family Agreement Shareholder and Spouse who executes this
Agreement, a Shareholder Consent, or a Spouse Consent acknowledges that he or she (a) has read this Agreement, including but not limited to Sections 2, 3, 6, 8 and Section 9, and understands its intended effect, (b) understands that
this Agreement has been drafted by legal counsel for the Company, and (c) has been encouraged and has had the opportunity, before executing this Agreement, to consult separate and independent legal counsel of his or her choice and has either
exercised or waived the right to do so. 
 11.19 Definitions. Capitalized terms used in the foregoing
Agreement have the meanings given those terms in the text of the Agreement, which are located in the following sections: 

Acceptance Notice is defined in Section 4.3(a) of the Agreement. 

Accepting Family Offerees is defined in Section 4.3(a) of the Agreement. 

Agreement is defined in the preamble of the Agreement. 
 Articles of Incorporation is defined in Section 8.3 of the Agreement. 

Board is defined in Section A of the Recitals. 
 Charity is defined in Section 3.3 of the Agreement. 
 Closing Date
is defined in Section 4.4 of the Agreement. 
 Company is defined in the preamble of the Agreement. 

  
 22 

 Company Acceptance Period is defined in Section 4.3(b) of the Agreement.

 Divorce is defined in Section 6.1(c) of the Agreement. 

Effective Date is defined in the Preamble of the Agreement. 

ESOP is defined in Recital E of the Agreement. 
 ESOP Acceptance Period is defined in Section 4.3(c). 
 ESOP Value
is defined in Section 4.2 of the Agreement. 
 Family Agreement Shareholders is defined in the Preamble of the
Agreement. 
 Family Agreement Shareholders Supermajority is defined in Section 8.3 of the Agreement. 

Family Agreement Shareholders Meeting is defined in Section 8.1 of the Agreement. 

Family Offeree Acceptance Period is defined in Section 4.3(a).  

Family Permitted Transferees is defined in Section 3.2(a). 

Family Shareholder Voting Agreement is defined in Section 3.1 (b) of the Agreement. 

General Shareholders Agreement is defined in Section 5.1 of the Agreement. 

Lineal Descendant(s) is defined in Section 3.1 (a) of the Agreement. 

Major Decision is defined in Section 8.3 of the Agreement. 

Minor Decision is defined in Section 8.2 of the Agreement. 

Non-complying Transfer is defined in section 2 of the Agreement. 

Offer Date is defined in Section 4.2 of the Agreement. 

Offer Notice is defined in Section 4.1 of the Agreement. 

Offered Shares is defined in Section 4.1 of the Agreement. 

Option Event is defined in Section 6.1 of the Agreement. 

Permitted Entity is defined in Section 3.1(c) of the Agreement. 

  
 23 

 Permitted Transfer is defined in Section 3.1 of the Agreement. 

 Permitted Transferees is defined in Section 3.1 of the Agreement.  

Permitted Trust is defined in Section 3.1 (b) of the Agreement.  

Pro Rata Portion is defined in Section 4.3(a) of the Agreement.  

Purchase Price is defined in Section 4.4 of the Agreement.  

Purchasers is defined in Section 4.3(d) of the Agreement.  

Secretary of the Company is defined in Section 3.1 (b) of the Agreement.  

Securities Act is defined in Section 11.4 of the Agreement.  

Shareholder is defined in Section 3.3(c) of the Agreement.  

Shareholder Consent is defined in the preamble of the Agreement.  

Shareholder Spouse is defined in Section 3.1(b) of the Agreement.  

Shares is defined in the preamble of this Agreement.  

Spouse is defined in Section 3.1 (b) of the Agreement.  

Spouse Consent is defined in Section 3.2(b) of the Agreement.  

Spousal Award is defined in Section 6.2(b) of the Agreement.  

Stepchild, Stepchildren are defined in Section 3.1(b) of the Agreement  

Trading Window is defined in Section 4.4 of the Agreement.  

Transfer is defined in Section 2 of the Agreement.  

Transferor is defined in Section 3.4 of the Agreement. 

  
 24 

 It is so agreed, between the Company and the Shareholders listed on Exhibit A who have
executed a Shareholder Consent. 
  

			
	HomeStreet, Inc.
		
	by	 	 
		
	Its	 	 

  
 25 

 Shareholder Consent for a Shareholder Spouse 

IN WITNESS WHEREOF, the following party has executed this Shareholder Consent to become a party to the Amended and Restated Family
Shareholders Agreement of HomeStreet, Inc. (specifically including Sections 3, 6, 8 and 9 of the Agreement) effective as of 11/15/08 (fill in the date you sign). 
 I acknowledge receipt of a copy of the Agreement and that I have been encouraged to retain independent legal counsel to advise me with respect to it. 

 

					
			
	 Shareholder Spouse:
	 		 	/s/ Gro Buer
		 		 	 Signature
 Gro
Buer

 Shareholder Consent for a Shareholder Spouse 

IN WITNESS WHEREOF, the following party has executed this Shareholder Consent to become a party to the Amended and Restated Family
Shareholders Agreement of HomeStreet, Inc. (specifically including Sections 3, 6, 8 and 9 of the Agreement) effective as of 11/11/08 (fill in the date you sign). 
 I acknowledge receipt of a copy of the Agreement and that I have been encouraged to retain independent legal counsel to advise me with respect to it. 

 

					
			
	 Shareholder Spouse:
	 		 	/s/ Michael J. Westling
		 		 	 Signature
 Michael J.
Westling

 Shareholder Consent for a Stepchild 

IN WITNESS WHEREOF, the following party has executed this Shareholder Consent to become party to the Amended and Restated Family
Shareholders Agreement of Home Street, Inc. (specifically including Sections 3, 6 and 8 of the Agreement) effective as of 11/1/2008 (fill in the date you sign). 
 I acknowledge receipt of a copy of the Agreement and that I have been encouraged to retain independent legal counsel to advise me with respect to it. 

 

					
			
	 Stepchild:
	 		 	/s/ Kaya Westling
		 		 	 Signature
 Kaya
Westling

 Shareholder Consent for a Stepchild 

IN WITNESS WHEREOF, the following party has executed this Shareholder Consent to become party to the Amended and Restated Family
Shareholders Agreement of Home Street, Inc. (specifically including Sections 3, 6 and 8 of the Agreement) effective as of 10/30/08 (fill in the date you sign). 
 I acknowledge receipt of a copy of the Agreement and that I have been encouraged to retain independent legal counsel to advise me with respect to it. 

 

					
			
	 Stepchild:
	 		 	/s/ Craig Westling
		 		 	 Signature
 Craig
Westling

 Shareholder Consent for Lineal Descendants 

IN WITNESS WHEREOF, the following party has executed this Shareholder Consent to become a party to the Amended and Restated Family
Shareholders Agreement of HomeStreet, Inc. (specifically including Sections 3, 6 and 8 of the Agreement) effective as of 11/02/2008 (fill in the date you sign). 
 I acknowledge receipt of a copy of the Agreement and that I have been encouraged to retain independent legal counsel to advise me with respect to it. 

 

					
			
	 Lineal Descendant:
	 		 	/s/ Glory Curtis Beijar
		 		 	 Signature
 Glory Curtis
Beijar

 Shareholder Consent for Lineal Descendants 

IN WITNESS WHEREOF, the following party has executed this Shareholder Consent to become a party to the Amended and Restated Family
Shareholders Agreement of HomeStreet, Inc. (specifically including Sections 3, 6 and 8 of the Agreement) effective as of Nov. 3, 2008 (fill in the date you sign). 
 I acknowledge receipt of a copy of the Agreement and that I have been encouraged to retain independent legal counsel to advise me with respect to it. 

 

					
			
	 Lineal Descendant:
	 		 	/s/ Barbara M. Curtis
		 		 	 Signature
 Barbara M.
Curtis

 Shareholder Consent for Lineal Descendants 

IN WITNESS WHEREOF, the following party has executed this Shareholder Consent to become a party to the Amended and Restated Family
Shareholders Agreement of HomeStreet, Inc. (specifically including Sections 3, 6 and 8 of the Agreement) effective as of 11/15/08 (fill in the date you sign). 
 I acknowledge receipt of a copy of the Agreement and that I have been encouraged to retain independent legal counsel to advise me with respect to it. 

 

					
			
	 Lineal Descendant:
	 		 	/s/ Crystal Dawn Curtis
		 		 	 Signature
 Crystal Dawn
Curtis

 Shareholder Consent for Lineal Descendants 

IN WITNESS WHEREOF, the following party has executed this Shareholder Consent to become a party to the Amended and Restated Family
Shareholders Agreement of HomeStreet, Inc. (specifically including Sections 3, 6 and 8 of the Agreement) effective as of November 19, 2008 (fill in the date you sign). 
 I acknowledge receipt of a copy of the Agreement and that I have been encouraged to retain independent legal counsel to advise me with respect to it. 

 

					
			
	 Lineal Descendant:
	 		 	/s/ Andrew Alvaro Mullins-Williams
		 		 	 Signature
 Andrew Alvaro
Mullins-Williams

 Shareholder Consent for Lineal Descendants 

IN WITNESS WHEREOF, the following party has executed this Shareholder Consent to become a party to the Amended and Restated Family
Shareholders Agreement of HomeStreet, Inc. (specifically including Sections 3, 6 and 8 of the Agreement) effective as of November 14, 2008 (fill in the date you sign). 
 I acknowledge receipt of a copy of the Agreement and that I have been encouraged to retain independent legal counsel to advise me with respect to it. 

 

					
			
	 Lineal Descendant:
	 		 	/s/ Annika M. Swanson
		 		 	 Signature
 Annika M.
Swanson

 Shareholder Consent for Lineal Descendants 

IN WITNESS WHEREOF, the following party has executed this Shareholder Consent to become a party to the Amended and Restated Family
Shareholders Agreement of HomeStreet, Inc. (specifically including Sections 3, 6 and 8 of the Agreement) effective as of 11/24/2008 (fill in the date you sign). 
 I acknowledge receipt of a copy of the Agreement and that I have been encouraged to retain independent legal counsel to advise me with respect to it. 

 

					
			
	 Lineal Descendant:
	 		 	/s/ Jordan W. Swanson
		 		 	 Signature
 Jordan W.
Swanson

 Shareholder Consent for Lineal Descendants 

IN WITNESS WHEREOF, the following party has executed this Shareholder Consent to become a party to the Amended and Restated Family
Shareholders Agreement of HomeStreet, Inc. (specifically including Sections 3, 6 and 8 of the Agreement) effective as of 10/30/08 (fill in the date you sign). 
 I acknowledge receipt of a copy of the Agreement and that I have been encouraged to retain independent legal counsel to advise me with respect to it. 

 

					
			
	 Lineal Descendant:
	 		 	/s/ Bruce W. Williams
		 		 	 Signature
 Bruce W.
Williams

 Shareholder Consent for Lineal Descendants 

IN WITNESS WHEREOF, the following party has executed this Shareholder Consent to become a party to the Amended and Restated Family
Shareholders Agreement of HomeStreet, Inc. (specifically including Sections 3, 6 and 8 of the Agreement) effective as of 10/30/08 (fill in the date you sign). 
 I acknowledge receipt of a copy of the Agreement and that I have been encouraged to retain independent legal counsel to advise me with respect to it. 

 

					
	 Lineal Descendant:
	 		 	Estate of Marie W. Williams
			
	 	 		 	/s/ Bruce W. Williams
		 		 	 Signature
 Executor Bruce W.
Williams

 Shareholder Consent for Lineal Descendants 

IN WITNESS WHEREOF, the following party has executed this Shareholder Consent to become a party to the Amended and Restated Family
Shareholders Agreement of HomeStreet, Inc. (specifically including Sections 3, 6 and 8 of the Agreement) effective as of 10/30/08 (fill in the date you sign). 
 I acknowledge receipt of a copy of the Agreement and that I have been encouraged to retain independent legal counsel to advise me with respect to it. 

 

					
	 Lineal Descendant:
	 		 	Estate of Walter B. Williams
			
	 	 		 	/s/ Bruce W. Williams
		 		 	 Signature
 Executor Bruce W.
Williams

 Shareholder Consent for Lineal Descendants 

IN WITNESS WHEREOF, the following party has executed this Shareholder Consent to become a party to the Amended
and Restated Family Shareholders Agreement of HomeStreet, Inc. (specifically including Sections 3, 6 and 8 of the Agreement) effective as of Oct. 28, 2008 (fill in the date you sign).  
 I acknowledge receipt of a copy of the Agreement and that I have been encouraged to retain independent legal counsel to advise me with respect to it. 

 

					
	 Lineal Descendant:
	 		 	/s/ Kathryn A. Williams
		 		 	 Signature
 Kathryn A.
Williams

 Shareholder Consent for Lineal Descendants 

IN WITNESS WHEREOF, the following party has executed this Shareholder Consent to become a party to the Amended and Restated Family
Shareholders Agreement of HomeStreet, Inc. (specifically including Sections 3, 6 and 8 of the Agreement) effective as of 11/10/08 (fill in the date you sign). 
 I acknowledge receipt of a copy of the Agreement and that I have been encouraged to retain independent legal counsel to advise me with respect to it. 

 

					
	 Lineal Descendant:
	 		 	/s/ Marcia F. Williams
		 		 	 Signature
 Marcia F.
Williams

 Shareholder Consent for Lineal Descendants 

IN WITNESS WHEREOF, the following party has executed this Shareholder Consent to become a party to the Amended and Restated Family
Shareholders Agreement of HomeStreet, Inc. (specifically including Sections 3, 6 and 8 of the Agreement) effective as of 11-10-08 (fill in the date you sign). 
 I acknowledge receipt of a copy of the Agreement and that I have been encouraged to retain independent legal counsel to advise me with respect to it. 

 

					
	 Lineal Descendant:
	 		 	/s/ Karen M. Zimmerman
		 		 	 Signature
 Karen M.
Zimmerman

 Shareholder Consent for Lineal Descendants 

IN WITNESS WHEREOF, the following party has executed this Shareholder Consent to become a party to the Amended and Restated Family
Shareholders Agreement of HomeStreet, Inc. (specifically including Sections 3, 6 and 8 of the Agreement) effective as of Nov. 6, 2008 (fill in the date you sign). 

I acknowledge receipt of a copy of the Agreement and that I have been encouraged to retain independent legal counsel to advise me with
respect to it. 
  

					
	 Lineal Descendant:
	 		 	/s/ Steven W. Zimmerman
		 		 	Signature
		 		 	Steven W. Zimmerman

 Shareholder Consent for Lineal Descendants 

IN WITNESS WHEREOF, the following party has executed this Shareholder Consent to become a party to the Amended and Restated Family
Shareholders Agreement of HomeStreet, Inc. (specifically including Sections 3, 6 and 8 of the Agreement) effective as of 10/29/08 (fill in the date you sign). 
 I acknowledge receipt of a copy of the Agreement and that I have been encouraged to retain independent legal counsel to advise me with respect to it. 

 

					
	 Lineal Descendant:
	 		 	/s/ Wendy S. Williams
		 		 	Signature
		 		 	Wendy S. Williams

 Shareholder Consent for Lineal Descendants 

IN WITNESS WHEREOF, the following party has executed this Shareholder Consent to become a party to the Amended and Restated Family
Shareholders Agreement of HomeStreet, Inc. (specifically including Sections 3, 6 and 8 of the Agreement) effective as of 11/11/08 (fill in the date you sign). 
 I acknowledge receipt of a copy of the Agreement and that I have been encouraged to retain independent legal counsel to advise me with respect to it. 

 

					
	 Lineal Descendant:
	 		 	/s/ Justin M. Westling
		 		 	Signature
		 		 	Justin M. Westling

 Shareholder Consent for Lineal Descendants 

IN WITNESS WHEREOF, the following party has executed this Shareholder Consent to become a party to the Amended and Restated Family
Shareholders Agreement of HomeStreet, Inc. (specifically including Sections 3, 6 and 8 of the Agreement) effective as of 11/11/08 (fill in the date you sign). 
 I acknowledge receipt of a copy of the Agreement and that I have been encouraged to retain independent legal counsel to advise me with respect to it. 

 

					
	 Lineal Descendant:
	 		 	/s/ John Dale Westling
		 		 	Signature
		 		 	John Dale Westling

 Shareholder Consent for Permitted Trust 

IN WITNESS WHEREOF, the following party has executed this Shareholder Consent to become a party to the Amended and Restated Family
Shareholders Agreement of HomeStreet, Inc. (specifically including Sections 3, 6, and 8 of the Agreement) effective as of 10/31/2008 (fill in the date you sign). 
 I acknowledge receipt of a copy of the Agreement and that I have been encouraged to retain independent legal counsel to advise me with respect to it. 

 

									
	 Permitted Trust:
	 		 	Myers Family Trust dated 3/28/89
					
		 		 		 	By	 	/s/ Dale Myers
		 		 		 		 	Co-Trustee Dale Myers
					
		 		 		 	By	 	/s/ Marjorie Myers
		 		 		 		 	Co-Trustee Marjorie Myers
					
		 		 		 	By	 	/s/ Dale Myers
		 		 		 		 	Dale Myers her attorney in fact

 Shareholder Consent for Permitted Trust 

IN WITNESS WHEREOF, the following party has executed this Shareholder Consent to become a party to the Amended and Restated Family
Shareholders Agreement of HomeStreet, Inc. (specifically including Sections 3, 6, and 8 of the Agreement) effective as of 11/11/08 (fill in the date you sign). 
 I acknowledge receipt of a copy of the Agreement and that I have been encouraged to retain independent legal counsel to advise me with respect to it. 

 

									
	 Permitted Trust:
	 		 	John Dale Westling Trust dated 12/22/05
					
		 		 		 	By	 	/s/ Janet L. Westling
		 		 		 		 	Trustee Janet L. Westling

 Shareholder Consent for Permitted Trust 

IN WITNESS WHEREOF, the following party has executed this Shareholder Consent to become a party to the Amended and Restated Family
Shareholders Agreement of HomeStreet, Inc. (specifically including Sections 3, 6, and 8 of the Agreement) effective as of 11/11/08 (fill in the date you sign). 
 I acknowledge receipt of a copy of the Agreement and that I have been encouraged to retain independent legal counsel to advise me with respect to it. 

 

									
	 Permitted Trust:
	 		 	Justin M. Westling Trust dated 12/22/05
					
		 		 		 	By	 	/s/ Janet L. Westling
		 		 		 		 	Trustee Janet L. Westling

 Shareholder Consent for Permitted Trust 

IN WITNESS WHEREOF, the following party has executed this Shareholder Consent to become a party to the Amended and Restated Family
Shareholders Agreement of HomeStreet, Inc. (specifically including Sections 3, 6, and 8 of the Agreement) effective as of 11/11/08 (fill in the date you sign). 
 I acknowledge receipt of a copy of the Agreement and that I have been encouraged to retain independent legal counsel to advise me with respect to it. 

 

									
	 Permitted Trust:
	 		 	Westling Family Trust
					
		 		 		 	By	 	/s/ Michael J. Westling
		 		 		 		 	Co-Trustee Michael J. Westling
					
		 		 		 	By	 	/s/ Janet L. Westling
		 		 		 		 	Co-Trustee Janet L. Westling

 Shareholder Consent for Permitted Trust 

IN WITNESS WHEREOF, the following party has executed this Shareholder Consent to become a party to the Amended and Restated Family
Shareholders Agreement of HomeStreet, Inc. (specifically including Sections 3, 6, and 8 of the Agreement) effective as of 11/10/08 (fill in the date you sign). 
 I acknowledge receipt of a copy of the Agreement and that I have been encouraged to retain independent legal counsel to advise me with respect to it. 

 

									
	 Permitted Trust:
	 		 	John D. Westling Trust dated 6/20/02
					
		 		 		 	By	 	/s/ Michael J. Westling
		 		 		 		 	Trustee Michael J. Westling

 Shareholder Consent for Permitted Trust 

IN WITNESS WHEREOF, the following party has executed this Shareholder Consent to become a party to the Amended and Restated Family
Shareholders Agreement of HomeStreet, Inc. (specifically including Sections 3, 6, and 8 of the Agreement) effective as of 11/11/08 (fill in the date you sign). 
 I acknowledge receipt of a copy of the Agreement and that I have been encouraged to retain independent legal counsel to advise me with respect to it. 

 

									
	 Permitted Trust:
	 		 	Justin M. Westling Trust dated 6/20/02
					
		 		 		 	By	 	/s/ Michael J. Westling
		 		 		 		 	Trustee Michael J. Westling

 Shareholder Consent for Permitted Trust 

IN WITNESS WHEREOF, the following party has executed this Shareholder Consent to become a party to the Amended and Restated Family
Shareholders Agreement of HomeStreet, Inc. (specifically including Sections 3, 6, and 8 of the Agreement) effective as of 11/11/08 (fill in the date you sign). 
 I acknowledge receipt of a copy of the Agreement and that I have been encouraged to retain independent legal counsel to advise me with respect to it. 

 

									
	 Permitted Trust:
	 		 	Myers Family Trust dated 12/76
					
		 		 		 	By	 	/s/ Michael J. Westling
		 		 		 		 	Trustee Michael J. Westling

 Shareholder Consent for Permitted Trust 

IN WITNESS WHEREOF, the following party has executed this Shareholder Consent to become a party to the Amended and Restated Family
Shareholders Agreement of HomeStreet, Inc. (specifically including Sections 3, 6, and 8 of the Agreement) effective as of Oct. 30, 2008 (fill in the date you sign). 
 I acknowledge receipt of a copy of the Agreement and that I have been encouraged to retain independent legal counsel to advise me with respect to it. 

 

									
	 Permitted Trust:
	 		 	Andrew Alvaro Mullins-Williams 2005 Trust
					
		 		 		 	By	 	/s/ Bruce W. Williams
		 		 		 		 	Trustee Bruce W. Williams

 Shareholder Consent for Permitted Trust 

IN WITNESS WHEREOF, the following party has executed this Shareholder Consent to become a party to the Amended and Restated Family
Shareholders Agreement of HomeStreet, Inc. (specifically including Sections 3, 6, and 8 of the Agreement) effective as of 10-30-08 (fill in the date you sign). 
 I acknowledge receipt of a copy of the Agreement and that I have been encouraged to retain independent legal counsel to advise me with respect to it. 

 

									
	 Permitted Trust:
	 		 	Myers Irrevocable Trust #1 dated 8/5/94
					
		 		 		 	By	 	/s/ Bruce W. Williams
		 		 		 		 	Trustee Bruce W. Williams

 Shareholder Consent for Permitted Trust 

IN WITNESS WHEREOF, the following party has executed this Shareholder Consent to become a party to the Amended and Restated Family
Shareholders Agreement of HomeStreet, Inc. (specifically including Sections 3, 6, and 8 of the Agreement) effective as of 11/14/2008 (fill in the date you sign). 
 I acknowledge receipt of a copy of the Agreement and that I have been encouraged to retain independent legal counsel to advise me with respect to it. 

 

									
	 Permitted Trust:
	 		 	Trust dated 12/25/95
					
		 		 		 	By 	 	/s/ Bruce W. Williams
		 		 		 		 	Co-Trustee Bruce W. Williams
					
		 		 		 	By 	 	/s/ Gro A. Buer
		 		 		 		 	Co-Trustee Gro A. Buer

 Shareholder Consent for Permitted Trust 

IN WITNESS WHEREOF, the following party has executed this Shareholder Consent to become a party to the Amended and Restated Family
Shareholders Agreement of HomeStreet, Inc. (specifically including Sections 3, 6, and 8 of the Agreement) effective as of 10/30/08 (fill in the date you sign). 
 I acknowledge receipt of a copy of the Agreement and that I have been encouraged to retain independent legal counsel to advise me with respect to it. 

 

									
	 Permitted Trust:
	 		 	Marina Sonja Williams Trust dated 12/23/03
					
		 		 		 	By 	 	/s/ Bruce W. Williams
		 		 		 		 	Trustee Bruce W. Williams

 Shareholder Consent for Permitted Trust 

IN WITNESS WHEREOF, the following party has executed this Shareholder Consent to become a party to the Amended and Restated Family
Shareholders Agreement of HomeStreet, Inc. (specifically including Sections 3, 6, and 8 of the Agreement) effective as of 10/30/08 (fill in the date you sign). 
 I acknowledge receipt of a copy of the Agreement and that I have been encouraged to retain independent legal counsel to advise me with respect to it. 

 

									
	 Permitted Trust:
	 		 	2000 Karen M. Zimmerman Trust dated 12/22/00
					
		 		 		 	By 	 	/s/ Bruce W. Williams
		 		 		 		 	Trustee Bruce W. Williams

 Shareholder Consent for Permitted Trust 

IN WITNESS WHEREOF, the following party has executed this Shareholder Consent to become a party to the Amended and Restated Family
Shareholders Agreement of HomeStreet, Inc. (specifically, including Sections 3, 6 and 8 of the Agreement) effective as of 10/30/08 (fill in the date you sign). 
 I acknowledge receipt of a copy of the Agreement and that I have been encouraged to retain independent legal counsel to advise me with respect to it. 

 

									
	 Permitted Trust:
	 		 	2000 Steven W. Zimmerman Trust dated 12/22/00
					
		 		 		 	By 	 	/s/ Bruce W. Williams
		 		 		 		 	Trustee Bruce W. Williams

 Shareholder Consent for Permitted Trust 

IN WITNESS WHEREOF, the following party has executed this Shareholder Consent to become a party to the Amended and Restated Family
Shareholders Agreement of HomeStreet, Inc. (specifically including Sections 3, 6, and 8 of the Agreement) effective as of Oct. 28, 2008 (fill in the date you sign). 
 I acknowledge receipt of a copy of the Agreement and that I have been encouraged to retain independent legal counsel to advise me with respect to it. 

 

									
	 Permitted Trust:
	 		 	Andrew Alvaro Mullins-Williams Trust
					
		 		 		 	By 	 	/s/ Kathryn Anne Williams
		 		 		 		 	Trustee Kathryn Anne Williams

 Shareholder Consent for Permitted Trust 

IN WITNESS WHEREOF, the following party has executed this Shareholder Consent to become a party to the Amended and Restated Family
Shareholders Agreement of HomeStreet, Inc. (specifically including Sections 3, 6. and 8 of the Agreement) effective as of Oct. 28, 2008 (fill in the date you sign). 
 I acknowledge receipt of a copy of the Agreement and that I have been encouraged to retain independent legal counsel to advise me with respect to it. 

 

									
	 Permitted Trust:
	 		 	Andrew A. Mullins-Williams Trust dated 12/27/88
					
		 		 		 	By 	 	/s/ Kathryn A. Williams
		 		 		 		 	Trustee Kathryn A. Williams

 Shareholder Consent for Permitted Trust 

IN WITNESS WHEREOF, the following party has executed this Shareholder Consent to become a party to the Amended and Restated Family
Shareholders Agreement of HomeStreet, Inc. (specifically including Sections 3, 6, and 8 of the Agreement) effective as of Oct. 28, 2008 (fill in the date you sign). 
 I acknowledge receipt of a copy of the Agreement and that I have been encouraged to retain independent legal counsel to advise me with respect to it. 

 

									
	 Permitted Trust:
	 		 	Mullins-Williams Children’s Trust dated 7/28/93
					
		 		 		 	By 	 	/s/ Kathryn A. Williams
		 		 		 		 	Trustee Kathryn A. Williams

 Shareholder Consent for Permitted Trust 

IN WITNESS WHEREOF, the following party has executed this Shareholder Consent to become a party to the Amended and Restated Family
Shareholders Agreement of HomeStreet, Inc. (specifically including Sections 3, 6, and 8 of the Agreement) effective as of 11/10/08 (fill in the date you sign). 
 I acknowledge receipt of a copy of the Agreement and that I have been encouraged to retain independent legal counsel to advise me with respect to it. 

 

									
	 Permitted Trust:
	 		 	Annika Marie Swanson Trust
					
		 		 		 	By 	 	/s/ Marcia F. Williams
		 		 		 		 	Trustee Marcia F. Williams

 Shareholder Consent for Permitted Trust 

IN WITNESS WHEREOF, the following party has executed this Shareholder Consent to become a party to the Amended and Restated Family
Shareholders Agreement of HomeStreet, Inc. (specifically including Sections 3, 6, and 8 of the Agreement) effective as of 11/10/08 (fill in the date you sign). 
 I acknowledge receipt of a copy of the Agreement and that I have been encouraged to retain independent legal counsel to advise me with respect to it. 

 

									
	 Permitted Trust:
	 		 	Trustee under Jordan Williams Swanson Trust
					
		 		 		 	By 	 	/s/ Marcia F. Williams
		 		 		 		 	Trustee Marcia F. Williams

 Shareholder Consent for Permitted Trust 

IN WITNESS WHEREOF, the following party has executed this Shareholder Consent to become a party to the Amended and Restated Family
Shareholders Agreement of HomeStreet, Inc. (specifically including Sections 3, 6, and 8 of the Agreement) effective as of 11-20-08 (fill in the date you sign). 
 I acknowledge receipt of a copy of the Agreement and that I have been encouraged to retain independent legal counsel to advise me with respect to it. 

 

									
	 Permitted Trust:
	 		 	Zimmerman Living Trust dated 11/12/97
					
		 		 		 	By 	 	/s/ Harold Zimmerman
		 		 		 		 	Co-Trustee Harold Zimmerman
					
		 		 		 	By 	 	/s/ Julianne Zimmerman
		 		 		 		 	Co-Trustee Julianne Zimmerman
				
		 		 		 	By Harold Zimmerman as attorney-in-fact for Julianne Zimmerman under Power of Attorney dated 11-20-08
				
		 		 		 	/s/ Harold Zimmerman
		 		 		 	Harold Zimmerman

 Shareholder Consent for Permitted Trust 

IN WITNESS WHEREOF, the following party has executed this Shareholder Consent to become a party to the Amended and Restated Family
Shareholders Agreement of HomeStreet, Inc. (specifically including Sections 3, 6, and 8 of the Agreement) effective as of Nov. 6, 2008 (fill in the date you sign). 
 I acknowledge receipt of a copy of the Agreement and that I have been encouraged to retain independent legal counsel to advise me with respect to it. 

 

									
	 Permitted Trust:
	 		 	Brittney Vanderhoogt Trust Dated 03/13/08
					
		 		 		 	By 	 	/s/ Steven W. Zimmerman
		 		 		 		 	Trustee Steven W. Zimmerman

 Shareholder Consent for Permitted Trust 

IN WITNESS WHEREOF, the following party has executed this Shareholder Consent to become a party to the Amended and Restated Family
Shareholders Agreement of HomeStreet, Inc. (specifically including Sections 3, 6, and 8 of the Agreement) effective as of Nov. 6, 2008 (fill in the date you sign). 
 I acknowledge receipt of a copy of the Agreement and that I have been encouraged to retain independent legal counsel to advise me with respect to it. 

 

									
	 Permitted Trust:
	 		 	Brooke Vanderhoogt Trust Dated 03/13/08
					
		 		 		 	By 	 	/s/ Steven W. Zimmerman
		 		 		 		 	Trustee Steven W. Zimmerman

 Shareholder Consent for Permitted Trust 

IN WITNESS WHEREOF, the following party has executed this Shareholder Consent to become a party to the Amended and Restated Family
Shareholders Agreement of HomeStreet, Inc. (specifically including Sections 3, 6, and 8 of the Agreement) effective as of Nov. 6, 2008 (fill in the date you sign). 
 I acknowledge receipt of a copy of the Agreement and that I have been encouraged to retain independent legal counsel to advise me with respect to it. 

 

									
	 Permitted Trust:
	 		 	Brian Paul Zimmerman Trust Dated 12/20/07
					
		 		 		 	By 	 	/s/ Steven W. Zimmerman
		 		 		 		 	Trustee Steven W. Zimmerman

 Shareholder Consent for Permitted Trust 

IN WITNESS WHEREOF, the following party has executed this Shareholder Consent to become a party to the Amended and Restated Family
Shareholders Agreement of HomeStreet, Inc. (specifically including Sections 3, 6, and 8 of the Agreement) effective as of Nov. 6, 2008 (fill in the date you sign). 
 I acknowledge receipt of a copy of the Agreement and that I have been encouraged to retain independent legal counsel to advise me with respect to it. 

 

									
	 Permitted Trust:
	 		 	Zimmerman Trust U/A dated 12/84
					
		 		 		 	By 	 	/s/ Steven W. Zimmerman
		 		 		 		 	Trustee Steven W. Zimmerman

 Shareholder Consent for Permitted Trust 

IN WITNESS WHEREOF, the following party has executed this Shareholder Consent to become a party to the Amended and Restated Family
Shareholders Agreement of HomeStreet, Inc. (specifically including Sections 3, 6, and 8 of the Agreement) effective as of Nov. 6, 2008 (fill in the date you sign). 
 I acknowledge receipt of a copy of the Agreement and that I have been encouraged to retain independent legal counsel to advise me with respect to it. 

 

									
	 Permitted Trust:
	 		 	David John Zimmerman Trust Dated 12/20/07
					
		 		 		 	By 	 	/s/ Steven W. Zimmerman
		 		 		 		 	Trustee Steven W. Zimmerman

 Shareholder Consent for Permitted Trust 

IN WITNESS WHEREOF, the following party has executed this Shareholder Consent to become a party to the Amended and Restated Family
Shareholders Agreement of HomeStreet, Inc. (specifically including Sections 3, 6, and 8 of the Agreement) effective as of Nov. 6, 2008 (fill in the date you sign). 
 I acknowledge receipt of a copy of the Agreement and that I have been encouraged to retain independent legal counsel to advise me with respect to it. 

 

									
	 Permitted Trust:
	 		 	Zimmerman Grandchildren Trust dated 12/25/91
					
		 		 		 	By 	 	/s/ Steven W. Zimmerman
		 		 		 		 	Trustee Steven W. Zimmerman

 Shareholder Consent for Permitted Trust 

IN WITNESS WHEREOF, the following party has executed this Shareholder Consent to become a party to the Amended and Restated Family
Shareholders Agreement of HomeStreet, Inc. (specifically including Sections 3, 6, and 8 of the Agreement) effective as of Nov. 6, 2008 (fill in the date you sign). 
 I acknowledge receipt of a copy of the Agreement and that I have been encouraged to retain independent legal counsel to advise me with respect to it. 

 

									
	 Permitted Trust:
	 		 	Hannah Abbey Zimmerman Trust Dated 12/20/07
					
		 		 		 	By	 	/s/ Steven W. Zimmerman
		 		 		 		 	Trustee Steven W. Zimmerman

 Shareholder Consent for Permitted Trust 

IN WITNESS WHEREOF, the following party has executed this Shareholder Consent to become a party to the Amended and Restated Family
Shareholders Agreement of HomeStreet, Inc. (specifically including Sections 3, 6, and 8 of the Agreement) effective as of Nov. 6, 2008 (fill in the date you sign). 
 I acknowledge receipt of a copy of the Agreement and that I have been encouraged to retain independent legal counsel to advise me with respect to it. 

 

									
	 Permitted Trust:
	 		 	Kevin Mark Zimmerman Trust Dated 12/20/07
					
		 		 		 	By	 	/s/ Steven W. Zimmerman
		 		 		 		 	Trustee Steven W. Zimmerman

 SPOUSE CONSENT 

I, Janice Zimmerman, am the spouse of Steve Zimmerman and hereby approve or ratify the execution of a Shareholder Consent to become a
party to the Amended and Restated Family Shareholders Agreement of HomeStreet, Inc. by my spouse. 
 I agree to the provisions
of the Agreement, including Sections 2 (restrictions on transfer), 6 (purchase option events following death or divorce), 8 (Voting) and 9 (application to marital community property). 

I acknowledge receipt of a copy of the Agreement and that I have been encouraged to retain independent legal counsel to advise me in this
matter. 
 I have signed this Spouse Consent effective Nov. 6th, 2008 (fill in the date you sign). 

 

	
	/s/ Janice Zimmerman
	Signature
	Janice Zimmerman

 SPOUSE CONSENT 

I, Henrik Beijar, am the spouse of Glory Beijar and hereby approve or ratify the execution of a Shareholder Consent to become a party to
the Amended and Restated Family Shareholders Agreement of HomeStreet, Inc. by my spouse. 
 I agree to the provisions of the
Agreement, including Sections 2 (restrictions on transfer), 6 (purchase option events following death or divorce), 8 (Voting) and 9 (application to marital community property). 

I acknowledge receipt of a copy of the Agreement and that I have been encouraged to retain independent legal counsel to advise me in this
matter. 
 I have signed this Spouse Consent effective October 31, 2008 (fill in the date you sign). 

 

	
	/s/ Henrik Beijar
	Signature
	Henrik Beijar

 SPOUSE CONSENT 

I, Magda Guillen Swanson, am the spouse of Jordan Swanson and hereby approve or ratify the execution of a Shareholder Consent to become a
party to the Amended and Restated Family Shareholders Agreement of HomeStreet, Inc. by my spouse. 
 I agree to the provisions
of the Agreement, including Sections 2 (restrictions on transfer), 6 (purchase option events following death or divorce), 8 (Voting) and 9 (application to marital community property). 

I acknowledge receipt of a copy of the Agreement and that I have been encouraged to retain independent legal counsel to advise me in this
matter. 
 I have signed this Spouse Consent effective November 24, 2008 (fill in the date you sign). 

 

	
	/s/ Magda Guillen Swanson
	Signature
	Magda Guillen Swanson

 FORM OF IRREVOCABLE PROXY 

TO VOTE STOCK 
 OF HOMESTREET, INC. 
 The undersigned shareholder of HomeStreet, Inc., a Washington
corporation (the “Company”), hereby irrevocably appoints Bruce W. Williams, Janet Westling and Steve Zimmerman and each of them, with full power of substitution in each of them, as the sole and exclusive attorneys and proxies of the
undersigned to vote and exercise all voting and related rights (to the fullest extent that the undersigned is entitled to do so) with respect to all of the shares of capital stock of the Company, that now are or hereafter may be legally or
beneficially owned by the undersigned, and any and all other shares or securities of the Company issued or issuable in respect thereof on or after the date hereof (collectively, the Shares) in accordance with the outcome of voting
determinations pursuant to Section 8.2 or Section 8.3, as the case may be, of that certain Amended and Restated Family Shareholders Agreement dated as of October 23, 2008, by and among the Company and the undersigned (the Family
Shareholders Agreement). Upon the undersigned’s execution of this Irrevocable Proxy, any and all prior proxies given by the undersigned with respect to any Shares are hereby revoked and the undersigned agrees not to grant any subsequent
proxies with respect to the Shares that are inconsistent with this Irrevocable Proxy until after the termination of the Irrevocable Proxy, it being understood that if the undersigned is free to vote his or her Shares as he or she chooses pursuant to
Section 8.2 or Section 8.3 of the Family Shareholders Agreement, then the undersigned may grant a proxy in his or her discretion for the voting of such Shares at the relevant all shareholder meeting. 

This Irrevocable Proxy is irrevocable (to the fullest extent permitted by and subject to applicable law), is coupled with an interest, including, but not
limited to, the Family Shareholders Agreement, and is granted in consideration of the need to streamline and expedite the Company’s shareholder approval process. This proxy shall terminate upon the valid termination of the Family Shareholders
Agreement. 
 The authority of the attorneys and proxies named above includes the authority and power to act as the undersigned’s attorney
and proxy to vote the Shares, and to exercise all voting and other rights of the undersigned with respect to the Shares in accordance with the outcome of the voting determinations pursuant to Section 8.2 or Section 8.3 of the Family
Shareholders Agreement (including, without limitation, the power to execute and deliver written consents, pursuant to the Washington Business Corporation Act), at every annual, special or adjourned meeting of the shareholders of the Company and in
every written consent in lieu of such meeting. 
 All authority herein conferred shall survive the death or incapacity of the undersigned and
any obligation of the undersigned hereunder shall be binding upon the heirs, personal representatives, successors and assigns of the undersigned. 
 [signature page follows] 

 IN WITNESS WHEREOF, the undersigned has executed this Irrevocable Proxy with an interest as aforesaid
and is irrevocable. 
 Dated: 11/02/2008 
  

	
	SHAREHOLDER:
	
	/s/ Glory Curtis Beijar
	Signature
	Name: Glory Curtis Beijar
	
	Address: 33821 Pequito Drive
	Dana Point, CA 92629

 [SIGNATURE
PAGE TO IRREVOCABLE PROXY] 

 IN WITNESS WHEREOF, the undersigned has executed this Irrevocable Proxy with an interest as aforesaid
and is irrevocable. 
 Dated: October 31, 2008 

 

	
	SHAREHOLDER:
	
	/s/ Henrik Beijar
	Name: Henrik Beijar
	
	Address: 33821 Pequito Drive
	Dana Point, CA 92629

 [SIGNATURE
PAGE TO IRREVOCABLE PROXY] 

 IN WITNESS WHEREOF, the undersigned has executed this Irrevocable Proxy with an interest as aforesaid
and is irrevocable. 
 Dated: 11/15/2008 
  

	
	SHAREHOLDER:
	
	/s/ Gro Buer
	Signature
	
	Name: Gro Buer
	
	 Address: 6215 Palatine Avenue

North Seattle, WA 98103

 [SIGNATURE PAGE TO IRREVOCABLE PROXY] 

 IN WITNESS WHEREOF, the undersigned has executed this Irrevocable Proxy with an interest as aforesaid
and is irrevocable. 
 Dated: Nov. 9, 2008 
  

	
	SHAREHOLDER:
	
	/s/ Barbara M. Curtis
	Signature
	
	Name: Barbara M. Curtis
	
	 Address: 1554 Sleeping Indian Road
 Fallbrook, CA 92028

 [SIGNATURE PAGE TO IRREVOCABLE
PROXY] 

 IN WITNESS WHEREOF, the undersigned has executed this Irrevocable Proxy with an interest as aforesaid
and is irrevocable. 
 Dated: 11/15/2008 
  

	
	SHAREHOLDER:
	
	/s/ Crystal Dawn Curtis
	Signature
	
	Name: Crystal Dawn Curtis
	
	 Address: 99 McGuinness Blvd, #2
 Brooklyn, NY 11222-3301

 [SIGNATURE PAGE TO IRREVOCABLE
PROXY] 

 IN WITNESS WHEREOF, the undersigned has executed this Irrevocable Proxy with an interest as aforesaid
and is irrevocable. 
 Dated: November 19, 2008 

 

	
	SHAREHOLDER:
	
	/s/ Andrew Alvaro Mullins-Williams
	Signature
	
	Name: Andrew Alvaro Mullins-Williams
	
	 Address: 1246 16th Avenue E.

Seattle, WA 98112

 [SIGNATURE PAGE TO IRREVOCABLE PROXY] 

 IN WITNESS WHEREOF, the undersigned has executed this Irrevocable Proxy with an interest as aforesaid
and is irrevocable. 
 Dated: November 14, 2008 

 

	
	SHAREHOLDER:
	
	/s/ Annika M. Swanson
	Signature
	
	Name: Annika M. Swanson
	
	 Address: 112 Sewall Ave. Apt. 3
 Brookline, MA 02446

 [SIGNATURE PAGE TO IRREVOCABLE
PROXY] 

 IN WITNESS WHEREOF, the undersigned has executed this Irrevocable Proxy with an interest as aforesaid
and is irrevocable. 
 Dated: 11/24/2008 
  

	
	SHAREHOLDER:
	
	/s/ Jordan W. Swanson
	Signature
	
	Name: Jordan W. Swanson
	
	 Address: 1214 E, Hamlin. #6

Seattle, WA 98101

 [SIGNATURE PAGE TO IRREVOCABLE PROXY] 

 IN WITNESS WHEREOF, the undersigned has executed this Irrevocable Proxy with an interest as aforesaid
and is irrevocable. 
 Dated: 10/30/2008 
  

	
	SHAREHOLDER:
	
	/s/ Craig Westling
	Signature
	
	Name: Craig Westling
	
	 Address: PO Box 232

Norwich, VT 05055

 [SIGNATURE PAGE TO IRREVOCABLE PROXY] 

 IN WITNESS WHEREOF, the undersigned has executed this Irrevocable Proxy with an interest as aforesaid
and is irrevocable. 
 Dated: 11/1/2008 
  

			
	SHAREHOLDER:
	
	/s/ Kaya Westling
	Signature
		
	Name:	 	Kaya Westling
		
	Address:	 	PO Box 54
	Canyon, CA 94516

[SIGNATURE PAGE TO IRREVOCABLE PROXY] 

 IN WITNESS WHEREOF, the undersigned has executed this Irrevocable Proxy with an interest as aforesaid
and is irrevocable. 
 Dated: 10/30/2008 
  

			
	SHAREHOLDER:
	
	/s/ Bruce W. Williams
	Signature
		
	Name:	 	Bruce W. Williams
		
	Address:	 	601 Union Street, Suit 2000
	Seattle, WA 98101

[SIGNATURE PAGE TO IRREVOCABLE PROXY] 

 IN WITNESS WHEREOF, the undersigned has executed this Irrevocable Proxy with an interest as aforesaid
and is irrevocable. 
 Dated: 11/14/2008 
  

			
	SHAREHOLDER:
	
	/s/ Bruce W. Williams
	Bruce W. Williams
	
	/s/ Gro A. Buer
	Gro A. Buer
	
	Name: Bruce W. Williams and Gro A. Buer, Husband and Wife
	
	 Address: 601 Union Street. Suite 2000
 Seattle, WA 98101

 [SIGNATURE PAGE TO IRREVOCABLE PROXY]

 IN WITNESS WHEREOF, the undersigned has executed this Irrevocable Proxy with an interest as aforesaid
and is irrevocable. 
 Dated: 10/30/2008 
  

	
	SHAREHOLDER:
	
	/s/ Bruce W. Williams
	Signature
	
	Name: Bruce W. Williams, Executor for Estate of Marie W. Williams
	
	 Address: 601 Union Street, Suite 2000
 Seattle, WA 98101

 [SIGNATURE PAGE TO IRREVOCABLE PROXY]

 IN WITNESS WHEREOF, the undersigned has executed this Irrevocable Proxy with an interest as aforesaid
and is irrevocable. 
 Dated: 10/30/2008 
  

	
	SHAREHOLDER:
	
	/s/ Bruce W. Williams
	Signature
	 Name: Bruce W. Williams, Executor for Estate of Walter B. Williams

 
 Address: 601 Union Street Suite 2000

Seattle, WA 98101

 [SIGNATURE PAGE TO IRREVOCABLE PROXY] 

 IN WITNESS WHEREOF, the undersigned has executed this Irrevocable Proxy with an interest as aforesaid
and is irrevocable. 
 Dated: Oct. 28, 2008 
  

	
	SHAREHOLDER:
	
	/s/ Kathryn A. Williams
	Signature
	 Name: Kathryn A. Williams
  

Address: 1246 16th Avenue E.
 Seattle, WA
98112

 [SIGNATURE PAGE TO IRREVOCABLE PROXY] 

 IN WITNESS WHEREOF, the undersigned has executed this Irrevocable Proxy with an interest as aforesaid
and is irrevocable. 
 Dated: 11/10/2008 
  

	
	SHAREHOLDER:
	
	/s/ Marcia F. Williams
	Signature
	 Name: Marcia F. Williams
  

Address: P.O. Box 11500
 Bainbridge Island WA
98110

 [SIGNATURE PAGE TO IRREVOCABLE PROXY] 

 IN WITNESS WHEREOF, the undersigned has executed this Irrevocable Proxy with an interest as aforesaid
and is irrevocable. 
 Dated: 11/10/2008 
  

	
	SHAREHOLDER:
	
	/s/ Karen M. Zimmerman
	Signature
	 Name: Karen M. Zimmerman
  

Address: 1432 NE 6th Street
 Camas, WA
98607

 [SIGNATURE PAGE TO IRREVOCABLE PROXY] 

 IN WITNESS WHEREOF, the undersigned has executed this Irrevocable Proxy with an interest as aforesaid
and is irrevocable. 
 Dated: Nov. 6, 2008 
  

	
	SHAREHOLDER:
	
	/s/ Steven W. Zimmerman
	Signature
	Name: Steven W. Zimmerman
	
	Address: 730 S. Andresen Rd.
	Vancouver, WA 98661

 [SIGNATURE
PAGE TO IRREVOCABLE PROXY] 

 IN WITNESS WHEREOF, the undersigned has executed this Irrevocable Proxy with an interest as aforesaid
and is irrevocable. 
 Dated: 10/29/2008 
  

	
	SHAREHOLDER:
	
	/s/ Wendy S. Williams
	Signature
	Name: Wendy S. Williams
	
	Address: 4215 NE 125th Avenue
	Seattle, WA 98125

 [SIGNATURE PAGE
TO IRREVOCABLE PROXY] 

 IN WITNESS WHEREOF, the undersigned has executed this Irrevocable Proxy with an interest as aforesaid
and is irrevocable. 
 Dated: 10/31/2008 
  

			
	SHAREHOLDER:
	
	Myers Family Trust dated 3/28/89
		
	By	 	/s/ Dale Myers
		 	Co-Trustee Dale Myers
		
	By	 	/s/ Marjorie Myers
		 	Co-Trustee Marjorie Myers
		
	By	 	/s/ Dale Myers
		 	Dale Myers her attorney in fact
		
		 	Address: 7835 Rush Rose Drive #H-214
		 	Carlsbad, CA 92009

 [SIGNATURE
PAGE TO IRREVOCABLE PROXY] 

 IN WITNESS WHEREOF, the undersigned has executed this Irrevocable Proxy with an interest as aforesaid
and is irrevocable. 
 Dated: 11/11/2008 
  

			
	SHAREHOLDER:
	
	John Dale Westling Trust dated 12/22/05
		
	By	 	/s/ Janet L. Westling
		 	Trustee: Janet L. Westling
		
		 	Address: 1601 Avery Rd
		 	San Marcos, CA 92078

 [SIGNATURE
PAGE TO IRREVOCABLE PROXY] 

 IN WITNESS WHEREOF, the undersigned has executed this Irrevocable Proxy with an interest as aforesaid
and is irrevocable. 
 Dated: 11/11/2008 
  

			
	SHAREHOLDER:
	
	Justin M. Westling Trust dated 12/22/05
		
	By	 	/s/ Janet L. Westling
	Trustee: Janet L. Westling
	
	 Address: 1601 Avery Rd.
 San Marcos, CA 92078

 [SIGNATURE PAGE TO IRREVOCABLE
PROXY] 

 IN WITNESS WHEREOF, the undersigned has executed this Irrevocable Proxy with an interest as aforesaid
and is irrevocable. 
 Dated: 11/11/2008 
  

			
	SHAREHOLDER:
	
	Justin M. Westling Trust dated 12/22/05
		
	By	 	/s/ Janet L. Westling
	Trustee: Janet L. Westling
	
	 Address: 1601 Avery Rd.
 San Marcos, CA 92078

 [SIGNATURE PAGE TO IRREVOCABLE
PROXY] 

 IN WITNESS WHEREOF, the undersigned has executed this Irrevocable Proxy with an interest as aforesaid
and is irrevocable. 
 Dated: 11/18/2008 
  

			
	SHAREHOLDER:
	
	Westling Family Trust
		
	By	 	/s/ Michael J. Westling
		 	Co-Trustee: Michael J. Westling
		
	By	 	/s/ Janet L. Westling
		 	Co-Trustee: Janet L. Westling
		
	By	 	/s/ Janet L. Westling
		 	Janet L. Westling as Grantee under Irrevocable Proxy and voting Agreement dated may 4, 2008
	
	Address: 1601 Avery Rd. San Marcos, CA 92078

 [SIGNATURE PAGE TO IRREVOCABLE PROXY] 

 
to the Washington Business Corporation Act), at every annual, special or adjourned meeting of the shareholders of the Company and in every written consent in lieu of such meeting. 

All authority herein conferred shall survive the death or incapacity of the undersigned and any obligation of the undersigned hereunder shall be binding
upon the heirs, personal representatives, successors and assigns of the undersigned. 
 [signature page follows] 

IN WITNESS WHEREOF, the undersigned has executed this Irrevocable Proxy with an interest as aforesaid and is irrevocable. 

Dated: 11/18/08 
  

			
	SHAREHOLDER:
	
	 Westling Family Trust, as
 Michael
 Westling’s Separate Property

		
	By	 	/s/ Michael J. Westling
		 	Co-Trustee: Michael J. Westling
		
	By	 	/s/ Janet L. Westling
		 	Co-Trustee: Janet L. Westling
		
	By	 	/s/ Michael J. Westling
		 	Michael J. Westling as Grantee

  

	
	              under Irrevocable Proxy

             and Voting
Agreement
             dated May 4, 2008

	
	Address: 1601 Avery Rd
	
	San Marcos, CA 92078

 [SIGNATURE
PAGE TO IRREVOCABLE PROXY] 

 IN WITNESS WHEREOF, the undersigned has executed this Irrevocable Proxy with an interest as aforesaid
and is irrevocable. 
 Dated: 11/11/2008 
  

			
	SHAREHOLDER:
	
	John D. Westling Trust dated 6/20/02
		
	By	 	/s/ Michael J. Westling
	Trustee: Michael J. Westling
		
	By	 	/s/ John D. Westling
		 	John D. Westling as Grantee under Irrevocable Proxy and Voting Agreement dated May 4, 2008
	
	 Address: 1601 Avery Rd
 San Marcos, CA 92078

 [SIGNATURE PAGE TO IRREVOCABLE
PROXY] 

 IN WITNESS WHEREOF, the undersigned has executed this Irrevocable Proxy with an interest as aforesaid
and is irrevocable. 
 Dated: 11/11/2008 
  

			
	SHAREHOLDER:
	
	Justin M. Westling Trust dated 6/20/02
		
	By	 	/s/ Michael J. Westling
	Trustee: Michael J. Westling
		
	By	 	/s/ Justin M. Westling
		 	Justin M. Westling as Grantee under Irrevocable Proxy and Voting Agreement dated May 4, 2008
	
	 Address: 1601 Avery Rd
 San Marcos, CA 92078

 [SIGNATURE PAGE TO IRREVOCABLE
PROXY] 

 IN WITNESS WHEREOF, the undersigned has executed this Irrevocable Proxy with an interest as aforesaid
and is irrevocable. 
 Dated: 11/11/2008 
  

			
	 SHAREHOLDER:
  

Myers Family Trust dated 12/76

		
	By 	 	/s/ Michael J. Westling
	Trustee: Michael J. Westling
		
	By 	 	/s/ Janet L. Westling
		 	Janet L. Westling as Grantee under Irrevocable Proxy and Voting Agreement dated May 4, 2008
	  
 Address: 1601 Avery Rd

San Marcos, CA 92078

 [SIGNATURE PAGE TO IRREVOCABLE PROXY] 

 IN WITNESS WHEREOF, the undersigned has executed this Irrevocable Proxy with an interest as aforesaid
and is irrevocable. 
 Dated: Oct. 30, 2008 
  

			
	 SHAREHOLDER:
  

Andrew Alvaro Mullins-Williams 2005 Trust

		
	By 	 	/s/ Bruce W. Williams
	Trustee: Bruce W. Williams
	
	 Address: 601 Union Street,
 Suite 2000 Seattle, WA 98101

 [SIGNATURE PAGE TO
IRREVOCABLE PROXY] 

 IN WITNESS WHEREOF, the undersigned has executed this Irrevocable Proxy with an interest as aforesaid
and is irrevocable. 
 Dated: Oct. 30, 2008 
  

			
	 SHAREHOLDER:
  

Myers Irrevocable Trust #1 dated 8/5/94

		
	By 	 	/s/ Bruce W. Williams
	Trustee: Bruce W. Williams
	
	 Address: 601 Union Street,
 Suite 2000 Seattle, WA 98101-2326

 [SIGNATURE PAGE TO
IRREVOCABLE PROXY] 

 IN WITNESS WHEREOF, the undersigned has executed this Irrevocable Proxy with an interest as aforesaid
and is irrevocable. 
 Dated: 11/14/2008 
  

			
	 SHAREHOLDER:
  

Trust dated 12/25/95

		
	By 	 	/s/ Bruce W. Williams
	Co-Trustee: Bruce W. Williams
		
	By 	 	/s/ Gro A. Buer
	Co-Trustee: Gro A. Buer
		
	By 	 	/s/ Bruce W. Williams
		 	 Bruce W. Williams as Grantee under Irrevocable Proxy and Voting Agreement
 dated April 24, 2008

	  
 Address: 601 Union Street, Suite 2000

Seattle, WA 98101

 [SIGNATURE PAGE TO IRREVOCABLE PROXY] 

 IN WITNESS WHEREOF, the undersigned has executed this Irrevocable Proxy with an interest as aforesaid
and is irrevocable. 
 Dated: 10/30/2008 
  

			
	 SHAREHOLDER:
  

Marina Sonja Williams Trust dated 12/23/03

		
	By 	 	/s/ Bruce W. Williams
	Trustee: Bruce W. Williams
	  
 Address: 601 Union Street, Suite 2000

Seattle, WA 98101

 [SIGNATURE PAGE TO IRREVOCABLE PROXY] 

 IN WITNESS WHEREOF, the undersigned has executed this Irrevocable Proxy with an interest as aforesaid
and is irrevocable. 
 Dated: 10/30/2008 
  

			
	 SHAREHOLDER:
  

2000 Karen M. Zimmerman Trust dated 12/22/00

		
	By 	 	/s/ Bruce W. Williams
	Trustee: Bruce W. Williams
	
	 Address: 601 Union Street, Suite 2000
 Seattle, WA 98101

 [SIGNATURE PAGE TO IRREVOCABLE PROXY]

 IN WITNESS WHEREOF, the undersigned has executed this Irrevocable Proxy with an interest as aforesaid
and is irrevocable. 
 Dated: 10/30/2008 
  

			
	 SHAREHOLDER:
  

2000 Steven W. Zimmerman Trust dated 12/22/00

		
	By 	 	/s/ Bruce W. Williams
	Trustee: Bruce W. Williams
	  
 Address: 601 Union Street, Suite 2000

Seattle, WA 98101

 [SIGNATURE PAGE TO IRREVOCABLE PROXY] 

 IN WITNESS WHEREOF, the undersigned has executed this Irrevocable Proxy with an interest as aforesaid
and is irrevocable. 
 Dated: Oct. 28, 2008 
  

			
	 SHAREHOLDER:
  

Andrew Alvaro Mullins-Williams Trust

		
	By 	 	/s/ Kathryn Anne Williams
	Trustee: Kathryn Anne Williams
	
	 Address: 1246 16th Avenue E.
 Seattle, WA 98112

 [SIGNATURE PAGE TO IRREVOCABLE PROXY]

 IN WITNESS WHEREOF, the undersigned has executed this Irrevocable Proxy with an interest as aforesaid
and is irrevocable. 
 Dated: Oct. 28, 2008 
  

			
	 SHAREHOLDER:
  

Andrew A. Mullins-Williams Trust dated 12/27/88

		
	By 	 	/s/ Kathryn A. Williams
	Trustee: Kathryn A. Williams
	
	 Address: 1246 16th Avenue E.
 Seattle, WA 98112

 [SIGNATURE PAGE TO IRREVOCABLE PROXY]

 IN WITNESS WHEREOF, the undersigned has executed this Irrevocable Proxy with an interest as aforesaid
and is irrevocable. 
 Dated: Oct. 28, 2008 
  

			
	SHAREHOLDER:
	
	Mullins-Williams Children’s Trust dated 7/28/93
		
	By	 	/s/ Kathyn A. Williams
	Trustee: Kathryn A. Williams
	
	Address: 1246 16th Avenue E.
	Seattle, WA 98112

[SIGNATURE PAGE TO IRREVOCABLE PROXY] 

 IN WITNESS WHEREOF, the undersigned has executed this Irrevocable Proxy with an interest as aforesaid
and is irrevocable. 
 Dated: 11/10/2008 
  

			
	SHAREHOLDER:
	
	Annika Marie Swanson Trust
		
	By	 	/s/ Marcia F. Williams
	Trustee: Marcia F. Williams
	
	Address: P.O. Box 11500
	Bainbridge Island, WA 98110

[SIGNATURE PAGE TO IRREVOCABLE PROXY] 

 IN WITNESS WHEREOF, the undersigned has executed this Irrevocable Proxy with an interest as aforesaid
and is irrevocable. 
 Dated: 11/10/2008 
  

			
	SHAREHOLDER:
	
	Trustee under Jordan Williams Swanson Trust
		
	By:	 	/s/ Marcia F. Williams
	Trustee:	 	Marcia F. Williams
	Address:	 	 P.O. Box 11500 Bainbridge Island,
 WA 98110

 [SIGNATURE PAGE TO IRREVOCABLE PROXY]

 IN WITNESS WHEREOF, the undersigned has executed this Irrevocable Proxy with interest as aforesaid
and is irrevocable. 
 Dated: Nov. 20, 2008 
  

			
	SHAREHOLDER:
	
	Zimmerman Living Trust Dated 11/12/97
		
	By	 	/s/ Harold Zimmerman

			
	Co-Trustee:	 	Harold Zimmerman

			
	
		
	By	 	/s/ Julianne Zimmerman

			
	Co-Trustee:	 	Julianne Zimmerman
	 By Harold Zimmerman as attorney-in-fact for Julianne Zimmerman under Power of Attorney

dated 11-20-08

	
	
	/s/ Harold Zimmerman
	Harold Zimmerman
	
	 Address: 1625 N.W. Ivy Street
 Cannas, WA 98607

 [SIGNATURE PAGE TO IRREVOCABLE PROXY]

 IN WITNESS WHEREOF, the undersigned has executed this Irrevocable Proxy with an interest as aforesaid
and is irrevocable. 
 Dated: Nov. 6, 2008 

			
	SHAREHOLDER:
	
	Brittney Vanderhoogt Trust Dated 03/13/08
		
	By	 	/s/ Steven W. Zimmerman
	Trustee:	 	Steven W. Zimmerman
		
	Address:	 	 730 S. Andrsen Rd.

Vancouver, WA 98661

 [SIGNATURE PAGE TO IRREVOCABLE PROXY] 

 IN WITNESS WHEREOF, the undersigned has executed this Irrevocable Proxy with an interest as aforesaid
and is irrevocable. 
 Dated: Nov. 6, 2008 
  

			
	SHAREHOLDER:
	
	Brooke Vanderhoogt Trust Dated 03/13/08
		
	By	 	/s/ Steven W. Zimmerman
	Trustee: Steven W. Zimmerman
	
	Address: 730 S. Andresen Rd.
	Vancouver, WA 98661

[SIGNATURE PAGE TO IRREVOCABLE PROXY] 

 IN WITNESS WHEREOF, the undersigned has executed this Irrevocable Proxy with an interest as aforesaid
and is irrevocable. 
 Dated: Nov. 6, 2008 
  

			
	SHAREHOLDER:
	
	Brian Paul Zimmerman Trust Dated 12/20/07
		
	By	 	/s/ Steven W. Zimmerman
	Trustee: Steven W. Zimmerman
	
	Address: 730 S. Andresen Rd.
	Vancouver, WA 98661

[SIGNATURE PAGE TO IRREVOCABLE PROXY] 

 IN WITNESS WHEREOF, the undersigned has executed this Irrevocable Proxy with an interest as aforesaid
and is irrevocable. 
 Dated: Nov. 6, 2008 
  

			
	SHAREHOLDER:
	
	Zimmerman Trust U/A dated 12/84
		
	By	 	/s/ Steven W. Zimmerman
	Trustee: Steven W. Zimmerman
	
	Address: 730 S. Andresen Rd.
	Vancouver, WA 98661

[SIGNATURE PAGE TO IRREVOCABLE PROXY] 

 IN WITNESS WHEREOF, the undersigned has executed this Irrevocable Proxy with an interest as aforesaid
and is irrevocable. 
 Dated: Nov. 6, 2008 
  

			
	SHAREHOLDER:
	
	David John Zimmerman Trust Dated 12/20/07
		
	By	 	/s/ Steven W. Zimmerman
	Trustee: Steven W. Zimmerman
	
	Address: 730 S. Andresen Rd.
	Vancouver, WA 98661

[SIGNATURE PAGE TO IRREVOCABLE PROXY] 

 IN WITNESS WHEREOF, the undersigned has executed this Irrevocable Proxy with an interest as aforesaid
and is irrevocable. 
 Dated: Nov. 6, 2008 
  

			
	 SHAREHOLDER:
  

Zimmerman Grandchildren Trust dated 12/25/91

		
	By 	 	/s/ Steven W. Zimmerman
	Trustee: Steven W. Zimmerman
	
	 Address: 730 S. Andresen Rd.
 Vancouver, WA 98661

 [SIGNATURE PAGE TO IRREVOCABLE
PROXY] 

 IN WITNESS WHEREOF, the undersigned has executed this Irrevocable Proxy with an interest as aforesaid
and is irrevocable. 
 Dated: Nov. 6, 2008 
  

			
	 SHAREHOLDER:
  

Hannah Abbey Zimmerman Trust Dated 12/20/07

		
	By 	 	/s/ Steven W. Zimmerman
	Trustee: Steven W. Zimmerman
	
	 Address: 730 S. Andresen Rd.
 Vancouver, WA 98661

 [SIGNATURE PAGE TO IRREVOCABLE
PROXY] 

 IN WITNESS WHEREOF, the undersigned has executed this Irrevocable Proxy with an interest as aforesaid
and is irrevocable. 
 Dated: Nov. 6, 2008 
  

			
	 SHAREHOLDER:
  

Kevin Mark Zimmerman Trust Dated 12/20/07

		
	By 	 	/s/ Steven W. Zimmerman
	Trustee: Steven W. Zimmerman
	
	 Address: 730 S. Andresen Rd.
 Vancouver, WA 98661

 [SIGNATURE PAGE TO IRREVOCABLE
PROXY]HomeStreet, Inc. 2002 Long Term Incentive Plan

 Exhibit 10.1 
 HOMESTREET, INC. 
 2002 LONG-TERM INCENTIVE PLAN 

SECTION 1. PURPOSES 
 The purposes of the HomeStreet, Inc. 2002 Long-Term Incentive Plan (the “Plan”) are (a) to enhance the long-term shareholder value of the Company (as defined in Section 2); (b) to provide
an increased incentive for eligible individuals to assert their best efforts by conferring benefits based on increased profitability of the Company; (c) to provide an opportunity for increased stock ownership by such individuals; and
(d) to encourage such persons to remain in the service of the Company. 
 SECTION 2. DEFINITIONS 

In the Plan: 

2.1 “Adjusted Equity” means the beginning consolidated GAAP equity plus the estimated after-tax value of
certain loan servicing rights not recorded on the books of the Company. 
 2.2 “Adjusted Net
Income” means GAAP earnings less the after-tax change in value of the unrecorded servicing rights included in beginning Adjusted Equity, subject to the following: 
 (a) any item of income or expense attributable to one or more prior years that is shown in the certified financial statements as an adjustment of equity shall not be included in current year income in the
computation of AROE; and 
 (b) the Finance and Planning Committee may make any adjustments with respect to inclusion or
exclusion of any items of income or expense as that committee deems appropriate, including, without limitation, the addition or discontinuation of any operations, provided that all such adjustments shall be applied uniformly in determining Awards
issuable under the Plan. 
 2.3 “Adjusted Return on Equity” (or “AROE”)
means the Company’s Consolidated Adjusted Net Income divided by the Company’s Consolidated Adjusted Equity. AROE shall be rounded to the nearest tenth of one percent (.1%). The Finance and Planning Committee shall have the right (but not
the obligation) to make at any time, in its sole discretion, any adjustments in the method of determining AROE. Further, the Finance and Planning Committee shall have the right (but not the obligation) to utilize at any time, in its sole discretion,
the GAAP Return on Equity standard, in which case the term AROE in this Plan shall be replaced with “GAAP Return on Equity.” “Adjusted Net Income” shall be replaced by “GAAP Net Income” and “Adjusted Equity”
shall be replaced by “GAAP 

 
Equity.” In the event the Finance and Planning Committee elects to change to GAAP Return on Equity, an appropriate adjustment shall be made to the AROE Targets. 

2.4 “Annual Base Salary” means a Key Employee’s annual base salary and does not include any bonuses,
commissions, reimbursements or other expense allowances, cash and non-cash fringe benefits, short-term incentive payments, hiring and relocation bonuses, pay in lieu of vacations, sick leave or any other special payments. 

2.5 “AROE Targets” means the following three classes of targets established by the Finance and Planning
Committee at the beginning of each Performance Period: Threshold AROE Target, Target AROE Target, and Maximum AROE Target. Each AROE Target shall be assigned a corresponding Award Level as described in Section 8.2. 

2.6 “Award” means an issuance of shares of Common Stock as described in Section 8.1. 

2.7 “Award Level” has the meaning set forth in 8.2. 

2.8 “Beneficiary” means one or more persons, trusts, estates or other entities designated by the
Participant that are entitled to receive benefits under the Plan upon the death of a Participant. The beneficiary designation last filed with the Company shall control. If no Beneficiary is designated, such payment shall be paid to the surviving
spouse of the Participant, if living, and otherwise to the descendants of the Participant in equal shares by right of representation; if no descendants survive to receive payments, the balance due shall be paid to the estate of the Participant.

 2.9 “Board” means the Board of Directors of HomeStreet, Inc. 

2.10 “Change in Control” means (a) the acquisition by any person or persons, other than the Owners,
after the Effective Date, of beneficial ownership of 50% or more of the voting power of the outstanding voting stock of HomeStreet, Inc. or of HomeStreet Bank; (b) consummation of a merger or consolidation of HomeStreet, Inc. or HomeStreet Bank
with another corporation if the Owners will not, as a result of such merger or consolidation, own more than 50% of the voting stock of the corporation (or its parent) resulting from such merger or consolidation; (c) a complete liquidation of
HomeStreet, Inc. or HomeStreet Bank; or (d) the sale of all, or substantially all, of the assets of HomeStreet, Inc. or of HomeStreet Bank. Notwithstanding the foregoing, a Change in Control shall not occur solely because 50% or more of the
voting stock of HomeStreet, Inc. or HomeStreet Bank is acquired by a corporation (or its parent) which, immediately following such acquisition, is owned directly or indirectly by the Owners in the same proportion as their ownership of stock in
HomeStreet, Inc. or HomeStreet Bank immediately prior to such acquisition. 
 2.11 “Common Stock”
means the common stock, no par value, of HomeStreet, Inc. 

  
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 2.12 “Company” means HomeStreet, Inc., a Washington
corporation, and its subsidiaries, including HomeStreet Bank, either singly or together, as appropriate. 
 2.13
“Disability,” unless otherwise defined by the Human Resources and Corporate Governance Committee from time to time for purposes of the Plan, means a period of disability during which a Key Employee qualifies for benefits
under HomeStreet Bank’s current long-term disability plan, or in the case of a Nonemployee Director, means a period of disability during which such Participant, if he or she were an employee of the HomeStreet Bank, would qualify for benefits
under HomeStreet Bank’s current long-term disability plan. 
 2.14 “Earned Board Fees” means
the sum of all Board meeting fees, Board committee participation fees, plus any retainers earned, for service on the Board of Directors of HomeStreet Bank, which sum may be adjusted from time to time during or at the close of a Performance Period as
necessary to reflect actual Board and committee attendance, and any mid-year increase in Board compensation. Earned Board Fees shall not include any short term incentive payments to Nonemployee Directors. 

2.15 “Effective Date” means the date on which the Plan is adopted by the Board, except that certain
Participants may begin participation in the Plan prior to the Effective Date as set forth in Sections 6.2 and 7.2. 

2.16 “Fair Market Value” means the per share value of the Common Stock as established in the most recent
Quarterly Appraised Value. 
 2.17 “Finance and Planning Committee” means the Finance and
Planning Committee of the Board of Directors of HomeStreet Bank, or any successor committee thereto. 
 2.18
“Human Resources and Corporate Governance Committee” means the Human Resources and Corporate Governance Committee of the Board of Directors of HomeStreet Bank, or any successor committee thereto. 

2.19 “Key Employee” means an executive officer of the Company as defined in the Company’s Bylaws, as
such Bylaws may be amended from time to time. 
 2.20 “Nonemployee Director” means a member of
the Board of Directors of HomeStreet Bank who is not also an employee of HomeStreet Bank or any of its affiliates. 

2.21 “Owners” means the following groups of owners who, as of the Effective Date, collectively control the
Company: (a) the lineal descendants of W. Walter Williams and their families; (b) the HomeStreet, Inc. Employee Stock Ownership Plan; and (c) officers and directors of the Company. 

2.22 “Participant” means a Key Employee or a Nonemployee Director who is eligible to participate in the
Plan. 

  
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 2.23 “Performance Period” has the meaning set forth in
Section 6.1. 
 2.24 “Plan” means the HomeStreet, Inc. 2002 Long-Term Incentive Plan, as it
may be amended from time to time by the Board. 
 2.25 “Prior Plans” means HomeStreet,
Inc.’s Performance Share Plan and HomeStreet, Inc.’s Performance Share Plan for the Board of Directors. 
 2.26
“Quarterly Appraised Value” means the value of a share of Common Stock determined as of the end of each calendar quarter by an independent appraiser and approved by the Board. 

2.27 “Reduction-in-Force” means the elimination of an employment position or positions due to
(a) adverse business conditions of the Company or (b) a reorganization, other than a Change in Control. 
 2.28
“Repurchase Procedures” means, as of any date, the written procedures then in effect, as approved by the Board, for the repurchase by HomeStreet, Inc. of Common Stock. 

2.29 “Retirement” unless otherwise defined by the Human Resources and Corporate Governance Committee from
time to time for purposes of the Plan, means (a) with respect to Key Employees, that the Participant leaves active employment after having either (i) attained age 65 or (ii) attained at least age 55 plus that number of full years of
employment with the Company such that the Participant’s age and years of employment total at least 65 and (b) with respect to Nonemployee Directors, that the Participant has retired in accordance with HomeStreet Bank’s Policy
Regarding the Retirement of Directors. 
 2.30 “Securities Act” means the Securities Act of 1933,
as amended. 
 2.31 “Shareholder Agreement” means the Shareholder Agreement by and between
HomeStreet, Inc. and the shareholders of HomeStreet, Inc., as it may be amended from time to time by the Board. 
 2.32
“Target Award” has the meaning set forth in Section 7.1. 
 2.33
“Transitional Performance Period” has the meaning set forth in Section 6.2. 
 SECTION 3.
ADMINISTRATION 
  

	3.1	Plan Administrator 

 The
Plan shall be administered by the Human Resources and Corporate Governance Committee, except that the Finance and Planning Committee shall also be authorized to act 

  
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as expressly provided in the Plan. Notwithstanding the foregoing, the Board shall retain the authority to amend, suspend or terminate the Plan. 

 

	3.2	Administration and Interpretation by the Human Resources and Corporate Governance Committee; Limitation of Liability 

Subject to the terms and conditions explicitly set forth in the Plan, including those responsibilities expressly delegated under the Plan
to the Finance and Planning Committee, the Human Resources and Corporate Governance Committee shall have exclusive authority, in its discretion, to determine all matters under the Plan, including determining the size of Target Awards, whether and to
what extent Participants are entitled to Plan benefits, and all terms, conditions, restrictions and limitations, if any, of any Target Awards and Awards. The Human Resources and Corporate Governance Committee shall also have exclusive authority to
interpret the Plan and the terms of any instrument thereunder and may from time to time adopt and change rules and regulations of general application for the Plan’s administration. The Human Resources and Corporate Governance Committee’s
interpretation of the Plan and its rules and regulations, and all actions taken and determinations made by the Human Resources and Corporate Governance Committee pursuant to the Plan, shall be conclusive and binding on all parties involved or
affected. The Human Resources and Corporate Governance Committee may delegate ministerial duties to such of the Company’s officers as it so determines. 
 The Human Resources and Corporate Governance Committee shall not be liable for any action or determination made in good faith with respect to the Plan or any Target Award or Award issued hereunder. In
addition to such other rights of indemnification as members of such committee may have as an officer and/or director, the members of the Human Resources and Corporate Governance Committee shall be indemnified by the Company to the extent permitted
by law against the reasonable expenses, including attorneys’ fees, actually and necessarily incurred in connection with the defense of any action, suit or proceeding, or in connection with any appeal therein, to which members of such committee
may be a party by reason of any action taken or failure to act under or in connection with the Plan, and against all amounts paid by such committee in settlement thereof (provided such settlement is approved by independent legal counsel selected by
the Company) or paid by such committee in satisfaction of a judgment in any such action, suit or proceeding; provided, however, that within sixty days after institution of any such action, suit or proceeding, the Human Resources and Corporate
Governance Committee shall, in writing, offer the Company the opportunity, at its own expense, to handle and defend the same. 

SECTION 4. STOCK SUBJECT TO THE PLAN 
  

	4.1	Authorized Number of Shares 

 Subject to adjustment from time to time as provided in Section 12.1, a maximum of 100,000 shares of Common Stock shall be available for issuance under the Plan. Shares 

  
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issued under the Plan shall be drawn from authorized and unissued shares or shares now held or subsequently acquired by HomeStreet, Inc. 

 

	4.2	Reuse of Shares 

 If any
shares of Common Stock issued under the Plan are reacquired by HomeStreet, Inc. pursuant to the Repurchase Procedures or otherwise, such shares shall again be available for the purposes of the Plan. 

SECTION 5. ELIGIBILITY 
 Unless the Human Resources and Corporate Governance Committee determines otherwise, Key Employees and Nonemployee Directors are automatically eligible to participate in the Plan, provided such individuals
are Key Employees or Nonemployee Directors as of the beginning of a Performance Period or, subject to Section 7.3, become Key Employees or Nonemployee Directors during a Performance Period. No director emeritus shall be eligible to participate
in the Plan. 
 SECTION 6. PERFORMANCE PERIODS 

 

	6.1	Performance Periods 

 The
Plan shall be implemented by consecutive three-year performance periods (each, a “Performance Period”) that begin each January 1. The first Performance Period shall begin on January 1, 2003 and shall end on December 31,
2005, except that participants in the Prior Plans as of the Effective Date shall be eligible to begin earlier participation in the Plan as described in Section 6.2. Participants may participate simultaneously in overlapping Performance Periods.

 Notwithstanding the foregoing, the Human Resources and Corporate Governance Committee may establish (a) a different term
for one or more future Performance Periods and (b) different commencing and ending dates for any such Performance Period. In the event that the first or the last day of a Performance Period is not a regular business day, then the first day of
the Performance Period shall be deemed to be the next regular business day and the last day of the Performance Period shall be deemed to be the last preceding regular business day. 

 

	6.2	Prior Plans 

 Individuals
participating in the five-year performance period that began on January 1, 2002 under either Prior Plan shall discontinue participation in such Prior Plan as of the Effective Date of this Plan and shall automatically begin participation in this
Plan, subject to the terms and conditions of this Plan, except that (a) the Performance Period applicable to such individuals shall begin on January 1, 2002 and shall end on December 31, 2004 (the “Transitional Performance
Period”); (b) the Target Awards for such Performance Period shall 

  
 -6-

 
be as described in Section 7.2; and (c) the simple average of the annual AROE for the three years in the Transitional Performance Period shall be compared to the AROE Targets previously
established under the Prior Plans for the five-year performance period that began on January 1, 2002. 
 SECTION 7.
PEFORMANCE SHARE TARGET AWARDS 
  

	7.1	Determination of Performance Share Target Awards 

 (a) For each Performance Period, the Human Resources and Corporate Governance Committee shall determine performance share target awards (“Target Awards”) for Participants under the Plan, which
Target Awards may be based on title, job responsibilities, salary level or such other criteria as the Human Resources and Corporate Governance Committee may in its discretion approve. Except as otherwise provided in the Plan, for Key Employees,
Target Awards shall be a dollar amount equal to a percentage of each such Participant’s Annual Base Salary for the first calendar year in a Performance Period. For Nonemployee Directors, Target Awards shall be a dollar amount equal to a
percentage of each such Participant’s Earned Board Fees for the first calendar year in a Performance Period. The Human Resources and Corporate Governance Committee’s determination of Target Awards shall be final and binding on the Company
and all Participants. Unless the Human Resources and Corporate Governance Committee determines otherwise, Target Awards shall not be adjusted for any mid-calendar year increases to annual base salaries. 

(b) Notwithstanding the foregoing, the Human Resources and Corporate Governance Committee may determine alternative methods of
calculating Target Awards for future Performance Periods. 
 (c) No credits, payments or benefits under the Plan shall be
included as part of the base salary of any Participant for the purpose of computing benefits under any other bonus, retirement or compensation plan of the Company. 
  

	7.2	Transitional Performance Period 

 For Participants in the Transitional Performance Period, Target Awards shall be equal to that amount of the Participant’s annual salary or Earned Board Fees previously determined under the Prior
Plans in connection with awarding performance shares to each such Participant for the five-year performance period that began on January 1, 2002. 
  

	7.3	New Participants 

 Unless
the Human Resources and Corporate Governance Committee determines otherwise, individuals who first become eligible to participate in the Plan after a Performance Period has begun shall automatically be eligible to participate in the Performance
Period that began on January 1 of the calendar year in which the individual first became a Key Employee 

  
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or Nonemployee Director. In such event, the Participant’s Target Award for such Performance Period shall be a dollar amount equal to a percentage of the amount that the individual will
receive as Annual Base Salary or Earned Board Fees, as applicable, during the first calendar year of participation in the Plan solely in his or her capacity as a Key Employee or Nonemployee Director, as applicable. Any determination by the Human
Resources and Corporate Governance Committee of such Participant’s Target Award shall be final and conclusive in all cases. 

SECTION 8. CONVERSION OF TARGET AWARDS INTO SHARES 
 OF COMMON STOCK 
  

	8.1	Conversion 

 At the end of
a Performance Period, Target Awards shall be converted into shares of Common Stock (“Awards”), provided (a) certain pre-established AROE Targets are met by the end of such Performance Period and (b) subject to Sections 7.3 and 9,
the Participant remains a Key Employee or Nonemployee Director throughout the Performance Period. A Participant’s Award shall be (a) a fraction equal to the Participant’s Target Award divided by the Fair Market Value of the Common
Stock on the last day of the applicable Performance Period, multiplied by (b) the applicable Award Level assigned to each AROE Target as described in Section 8.2. 

 

	8.2	Determination of Award Levels 

 At the end of each Performance Period, the applicable award level (the “Award Level”) shall be determined by comparing the simple average of the annual AROE for each year in the Performance
Period to the applicable Threshold AROE Target, the Target AROE Target and the Maximum AROE Target established for such Performance Period. Award Levels shall be determined by straight-line interpolation for actual average AROE figures that fall in
between the pre-established AROE objectives. 
 Unless the Human Resources and Corporate Governance Committee determines
otherwise for a future Performance Period, Award Levels shall be as follows for each of the AROE Targets determined for each Performance Period: 
  

			
	 AROE TARGET
	 	 AWARD LEVELS

	 Threshold AROE (Less than 50% of Target AROE)
	 	0% of Target Award
	 Target AROE
	 	100% of Target Award
	 Maximum AROE (150% or More of Target AROE)
	 	200% of Target Award

  
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	8.3	Award Payment Dates and Procedures 

 (a) Except as otherwise provided herein, Awards shall be issued on or prior to the March 15 (or as soon thereafter as practicable) next following the end of the applicable Performance Period.
Notwithstanding the foregoing and subject to Section 9.4, if a Participant terminates employment as a Key Employee or service as a Nonemployee Director following a Performance Period but prior to payment of an Award, such Participant shall not
receive an Award in shares of Common Stock, but shall rather receive a cash payment equal to the Fair Market Value of the shares in lieu of an Award. 
 (b) Subject to Section 10, all Awards shall be issued net of applicable withholding taxes. Fractional shares shall not be issued under the Plan and in lieu thereof, a cash payment equal to the Fair
Market Value of the fractional share shall be issued. 
 (c) The Human Resources and Corporate Governance Committee may
determine for a Performance Period that no shares of Common Stock shall be issued to a Participant following a Performance Period unless such Participant shall receive a certain minimum number of shares as a result of participation in such
Performance Period, which minimum number of shares shall be determined by the Human Resources and Corporate Governance Committee in its discretion. If the Participant is not eligible to receive such minimum number of shares, the Participant shall
receive a cash payment equal to the Fair Market Value of the shares in lieu of an Award. 
  

	8.4	Adjustments 

Notwithstanding the foregoing, the Finance and Planning Committee may, after the determination of AROE Targets, adjust such targets and
the related Award Levels to take into account changes in the law or in accounting or tax rules and may otherwise make such adjustments as the Finance and Planning Committee deems necessary or appropriate to reflect the inclusion or exclusion of any
extraordinary items, events or circumstances in order to avoid windfalls or hardships. In addition, in the Finance and Planning Committee’s discretion, AROE Targets and the related Award Levels may vary from Participant to Participant and
between groups of Participants. 
 SECTION 9. TERMINATION OF EMPLOYMENT OR SERVICES 

 

	9.1	Termination of Employment or Service for Reasons Other than Retirement, Disability, a Reduction-in-Force, Death or for Nonemployee Directors, Other than by Reason of
Normal Expiration of Their Term 

 Subject to Section 9.4, if a Participant’s employment as a Key
Employee or services as a Nonemployee Director terminate for any reason prior to the end of a Performance Period, and such termination is not for any reason set forth in Section 9.2, such Participant’s participation in the Plan shall
automatically terminate as of the effective date of such termination of employment or services and such individual shall not be entitled to receive any 

  
 -9-

 
Awards or other consideration under the Plan with respect to a Performance Period that ends following such termination, unless the Human Resources and Corporate Governance Committee determines
otherwise in its discretion. 
  

	9.2	Termination of Employment or Service by Reason of Retirement, Disability, a Reduction-in-Force, Death or upon the Normal Expiration of a Nonemployee Director’s
Term 

 Subject to Section 9.4, if a Participant’s employment as a Key Employee or services as a
Nonemployee Director terminate prior to the end of a Performance Period by reason of Retirement, Disability, a Reduction-in-Force, death or, for Nonemployee Directors, upon the normal expiration of the term for which they were elected or appointed
to serve, such Participant shall be entitled to receive a cash payment for each Performance Period in which the Participant was then participating, such cash payment to be determined as follows: 

(a) AROE shall be equal to the simple average of the annual AROE for the years in each applicable Performance Period through the end of
the year in which termination of employment or services occurs. This AROE shall then be compared to the previously established AROE Targets (and related Award Levels) for each applicable Performance Period; and 

(b) the cash payment shall be equal to the Participant’s Target Award multiplied by the applicable Award Level, except that such
cash payment shall be discounted by the percentage difference between the number of years in the applicable Performance Period and the number of full and partial years served by the Participant in such Performance Period prior to termination.

 Cash payments shall be paid as soon as practicable following the year in which a Participant terminates employment as a Key
Employee or services as a Nonemployee Director. 
  

	9.3	Repurchase and Forfeiture Provisions 

 (a) Subject to Section 9.4, unless the Human Resources and Corporate Governance Committee determines otherwise, Participants who terminate employment or services shall be required to resell to
HomeStreet, Inc. during the window period immediately following the date of such termination any shares of Common Stock received under the Plan pursuant to the Repurchase Procedures then in effect, unless such Participant (i) will remain or
will become a member of the Board of Directors of HomeStreet Bank following the date of termination of employment as a Key Employee; (ii) is Retiring as a Key Employee after having attained at least age 55 and ten full years of employment with
the Company; or (iii) is Retiring after having served as a member of the Board of Directors of HomeStreet Bank for at least ten years. 

  
 -10-

 (b) Notwithstanding the foregoing, in the event a Key Employee terminates employment by
reason of Retirement pursuant to Section 9.3(a)(ii) and, within two years immediately following such termination, engages in any capacity in a business that is in substantial direct competition with the business of and in the geographic area
served by the Company, such individual shall forfeit all right to receive any Awards and/or cash following termination of employment and shall be required to resell to HomeStreet, Inc. all shares of Common Stock received under this Plan pursuant to
the Repurchase Procedures then in effect. The Human Resources and Corporate Governance Committee’s determination of whether an individual has acted in competition with the Company shall be made in its sole discretion. Nothing contained in this
Section 9.3(b) shall restrict a Participant from purchasing or owning shares in a competitor which constitute less than 5% of the outstanding equity securities of such publicly or privately held entity. 

 

	9.4	Change in Status 

 In the
event that during a Performance Period a Participant changes status from a Key Employee to a Nonemployee Director, or from a Nonemployee Director to a Key Employee, such Participant shall automatically continue participation in the Plan, except that
Target Awards shall be proportionately adjusted for each Performance Period in which the Participant is currently participating as follows: 
 (a) for employment or services rendered prior to the change in status, the Participant’s Target Award shall be reduced to reflect only that period of time during which the Participant served in the
Performance Period prior to the change in status, such adjusted Target Award to equal the initial Target Award multiplied by a fraction, the numerator of which is the number of full and partial years the Participant served in the Performance Period
prior to the change of status and the denominator of which is the number of full years in the Performance Period; and 
 (b) for
employment or services rendered after the change in status, the Participant’s Target Award shall be similarly adjusted to reflect only that period of time the Participant will serve as a Key Employee or Nonemployee Director, as applicable,
during the remainder of the Performance Period. Such adjusted Target Award shall generally be equal to the new Target Award on an annualized basis multiplied by a fraction, the numerator of which is the number of full and partial years such
Participant will serve in the Performance Period following the change in status and the denominator of which is the number of full years in the Performance Period. 
 As a result of the foregoing adjustments, such Participants shall have two Target Awards applicable to a single Performance Period that shall be aggregated for purposes of determining Awards. Any
determination by the Human Resources and Corporate Governance Committee of the foregoing adjustments shall be conclusive and binding. 

  
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	9.5	Determinations of Human Resources and Corporate Governance Committee Conclusive and Binding 

Any question as to whether and when there has been a termination of employment or services for purposes of the Plan and the cause of such
termination shall be determined by the Human Resources and Corporate Governance Committee and its determination shall be conclusive and binding. 
  

	9.6	Effect of Leave of Absence or Reduction in Hours 

 The Human Resources and Corporate Governance Committee shall have the discretion to determine the effect of a Company-approved leave of absence or a reduction in hours of employment or services on a
Target Award and the issuance of Awards thereunder. 
  

	9.7	Waiver of Restrictions 

Notwithstanding any other provision of the Plan, the Human Resources and Corporate Governance Committee may, in its sole discretion, waive
any of the foregoing forfeiture or repurchase provisions and any other terms, conditions or restrictions under such circumstances and subject to such terms and conditions as the Human Resources and Corporate Governance Committee shall deem
appropriate. 
 SECTION 10. WITHHOLDING 
 Unless the Human Resources and Corporate Governance Committee determines otherwise, all Awards and cash payments issuable under the Plan shall be issued net of all applicable withholding taxes required by
applicable federal, state, local or foreign law. 
 No shares of Common Stock shall be issued under the Plan until all
applicable withholding obligations are satisfied. 
 SECTION 11. NONASSIGNABILITY 

Neither the Participant nor any other person shall have any right to sell, assign, transfer, pledge, anticipate, mortgage or otherwise
encumber, transfer, hypothecate or convey in advance any of the benefits provided for under this Plan. No part of the amounts payable shall, prior to actual payment, be subject to seizure or sequestration for the payment of any debts, judgments,
alimony or separate maintenance owed by the Participant or any other person, nor be transferable by operation of law in the event of the Participant’s or any person’s bankruptcy or insolvency. If any Participant or Beneficiary should
attempt to sell, assign, transfer, pledge, anticipate, mortgage or otherwise encumber, transfer, hypothecate or convey in advance of actual receipt, the amounts, if any, payable hereunder, then such amounts shall automatically terminate unless the
Human Resources and Corporate Governance Committee, in its discretion, provides otherwise. 

  
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 SECTION 12. ADJUSTMENTS 

 

	12.1	Adjustment of Shares 

 In
the event that a stock dividend, stock split, spin-off, combination or exchange of shares, recapitalization, merger, consolidation, distribution to shareholders other than a normal cash dividend, or other change in the Company’s corporate or
capital structure results in (a) the outstanding shares of Common Stock, or any securities exchanged therefor or received in their place, being exchanged for a different number or kind of securities of HomeStreet, Inc. or of any other company
or (b) new, different or additional securities of HomeStreet, Inc. or of any other company being received by the holders of shares of Common Stock of HomeStreet, Inc., then proportional adjustments shall be made in the (i) maximum number
and kind of securities subject to the Plan and (ii) the maximum number and kind of securities subject to Awards and the Fair Market Value of such securities. The determination by the Board as to the terms of any of the foregoing adjustments
shall be conclusive and binding. Notwithstanding the foregoing, a Change in Control shall not be governed by this Section 12.1 but shall be governed by Section 12.2. 

 

	12.2	Change in Control 

 In the
event of a Change in Control, Participants shall be eligible to receive unearned Awards as determined under Sections 8.1 and 8.2; provided, however, that 
 (a) each Performance Period then underway shall be deemed to end as of the immediately preceding fiscal quarter prior to the Change in Control; 

(b) the number of shares subject to Awards shall be discounted by the percentage difference between the number of years in the applicable
Performance Period and the number of full and partial years in such Performance Period up to the immediately preceding fiscal quarter prior to the Change in Control; 
 (c) the Fair Market Value of the Awards shall be calculated as of the immediately preceding fiscal quarter prior to the Change in Control; and 

(d) AROE shall be equal to the simple average of the annual AROE for the years (including partial years) in each applicable Performance
Period (as each such Performance Period is shortened by this Section 12.2); except 
 (e) that in the event of a
dissolution or liquidation that occurs prior to completion of the first year of a Performance Period, no Awards or other consideration shall be payable for that Performance Period. 

  
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 SECTION 13. SHAREHOLDER AGREEMENT 

All shares of Common Stock issued pursuant to the terms of the Plan shall be subject to the terms of a Shareholder Agreement, and each
Participant, as a condition precedent to the issuance of Awards, shall agree to enter into and to require his or her spouse, if applicable, to enter into the Shareholder Agreement. The Shareholder Agreement shall (a) impose certain restrictions
on transfer by the Participants of shares received under the Plan and (b) grant HomeStreet, Inc. certain repurchase rights for such shares. 
 SECTION 14. MARKET STANDOFF 
 In the event of an underwritten public
offering by the Company of its equity securities pursuant to an effective registration statement filed under the Securities Act, including the Company’s initial public offering, no person may sell, make any short sale of, loan, hypothecate,
pledge, grant any option for the purchase of, or otherwise dispose of or transfer for value or otherwise agree to engage in any of the foregoing transactions with respect to any shares issued pursuant to an Award under the Plan without the prior
written consent of the Company or its underwriters. Such limitations shall be in effect for such period of time as may be requested by the Company or such underwriters; provided, however, that in no event shall such period exceed 180 days. The
limitations of this Section 14 shall in all events terminate two years after the effective date of the Company’s initial public offering. 
 In the event of any stock split, stock dividend, recapitalization, combination of shares, exchange of shares or other change affecting the Company’s outstanding Common Stock effected as a class
without the Company’s receipt of consideration, any new, substituted or additional securities distributed with respect to the purchased shares shall be immediately subject to the provisions of this Section 14, to the same extent the
purchased shares are at such time covered by such provisions. 
 In order to enforce the limitations of this Section 14,
the Company may impose stop-transfer instructions with respect to the purchased shares until the end of the applicable standoff period. 
 SECTION 15. AMENDMENT AND TERMINATION 
  

	15.1	Amendment, Suspension or Termination of Plan 

 The Board may amend, suspend or terminate the Plan or any portion of the Plan at any time and in such respects as it shall deem advisable; provided, however, that shareholder approval shall be obtained
for any amendment to the Plan if required by applicable law or regulation. 
  

	15.2	Term of Plan 

 The Plan shall have no fixed expiration date. 

  
 -14-

 SECTION 16. GENERAL 

 

	16.1	No Individual Rights 

Nothing in the Plan, any Target Award or Award granted under the Plan shall be deemed to constitute an employment contract or confer or be
deemed to confer on any Participant any right to continue in the employ of, or to continue any other relationship with, the Company or limit in any way the right of the Company to terminate a Participant’s employment or other relationship at
any time, with or without cause. 
  

	16.2	Issuance of Shares 

Notwithstanding any other provision of the Plan, HomeStreet, Inc. shall have no obligation to issue or deliver any shares of Common Stock
under the Plan or make any other distribution of benefits under the Plan unless, in the opinion of HomeStreet, Inc.’s counsel, such issuance, delivery or distribution would comply with all applicable laws (including, without limitation, the
requirements of the Securities Act or the laws of any state or foreign jurisdiction), and the applicable requirements of any securities exchange or similar entity. 
 HomeStreet, Inc. shall be under no obligation to any Participant to register for offering or resale or to qualify for exemption under the Securities Act, or to register or qualify under the laws of any
state or foreign jurisdiction, any shares of Common Stock, security or interest in a security paid or issued under, or created by, the Plan, or to continue in effect any such registrations or qualifications if made. 

To the extent the Plan or any instrument thereunder provides for issuance of stock certificates to reflect the issuance of shares of
Common Stock, the issuance may be effected on a noncertificated basis, to the extent not prohibited by applicable law or the applicable rules of any stock exchange. As a condition to the receipt of Common Stock pursuant to an Award under the Plan,
HomeStreet, Inc. may require (a) the Participant to represent and warrant at the time of such receipt that such shares are being purchased or received only for the Participant’s own account and without any present intention to sell or
distribute such shares and (b) such other action or agreement by the Participant as may from time to time be necessary to comply with the federal, state and foreign securities laws. At the option of HomeStreet, Inc., a stop-transfer order
against any such shares may be placed on the official stock books and records of HomeStreet, Inc., and a legend indicating that such shares may not be pledged, sold or otherwise transferred, unless an opinion of counsel is provided (concurred in by
counsel for HomeStreet, Inc.) stating that such transfer is not in violation of any applicable law or regulation, may be stamped on stock certificates to ensure exemption from registration. 

 

	16.3	Successors 

 The
provisions of the Plan shall bind and inure to the benefit of the Company and its successors and assigns and the Participant and the Participant’s Beneficiaries. 

  
 -15-

	16.4	No Rights as a Shareholder 

No Target Award shall entitle the Participant to any cash dividend, voting or other right of a shareholder unless and until the date of
issuance under the Plan of Awards determined in accordance with the Plan. 
  

	16.5	Incompetency 

 If the
Human Resources and Corporate Governance Committee determines in its discretion that a benefit under this Plan is to be paid to a minor, a person declared incompetent or to a person incapable of handling the disposition of that person’s
property, the Human Resources and Corporate Governance Committee may direct payment of such benefit to the guardian, legal representative or person having the care and custody of such minor, incompetent or incapable person. The Human Resources and
Corporate Governance Committee may require proof of minority, incompetency, incapacity or guardianship, as it may deem appropriate prior to distribution of the benefit. Any payment of a benefit shall be a payment for the account of the Participant
and the Participant’s Beneficiary, as the case may be, and shall be a complete discharge of any liability under the Plan for such payment amount. 
  

	16.6	No Trust or Fund 

 The
Plan is intended to constitute an “unfunded” plan. Nothing contained herein shall require the Company to segregate any monies or other property, or shares of Common Stock, or to create any trusts, or to make any special deposits for any
amounts payable to any Participant, and no Participant shall have any rights that are greater than those of a general unsecured creditor of the Company. 
  

	16.7	Severability 

 If any
provision of the Plan or any Target Award or Award is determined to be invalid, illegal or unenforceable in any jurisdiction, or as to any person, or would disqualify the Plan or any Target Award or Award under any law deemed applicable by the Human
Resources and Corporate Governance Committee, such provision shall be construed or deemed amended to conform to applicable laws, or, if it cannot be so construed or deemed amended without, in the Human Resources and Corporate Governance
Committee’s determination, materially altering the intent of the Plan or the Target Award or Award, such provision shall be stricken as to such jurisdiction, person, Target Award or Award, and the remainder of the Plan and any such Target Award
or Award shall remain in full force and effect. 

  
 -16-

	16.8	Choice of Law 

 The Plan
and all determinations made and actions taken pursuant hereto, to the extent not otherwise governed by the laws of the United States, shall be governed by the laws of the State of Washington without giving effect to principles of conflicts of law.

 Adopted by the Board on November 21, 2002. 

  
 -17-

 PLAN ADOPTION AND AMENDMENTS/ADJUSTMENTS 

SUMMARY PAGE 
  

							
	 Date of Board
 Action
	  	Action	  	 Section/Effect
 of Amendment
	  	 Date of Shareholder

Approval

				
	November 21, 2002	  	Initial Plan Adoption	  		  	Not required

  
 R-1

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