38,993,956 Shares Associated Banc-Corp Common Stock UNDERWRITING AGREEMENT
Exhibit 1.1
38,993,956 Shares
Common Stock
January 11, 2010
Credit Suisse Securities (USA) LLC
As Representative of the Several Underwriters
Eleven ▇▇▇▇▇▇▇ ▇▇▇▇▇▇
▇▇▇ ▇▇▇▇, ▇▇ ▇▇▇▇▇-▇▇▇▇
As Representative of the Several Underwriters
Eleven ▇▇▇▇▇▇▇ ▇▇▇▇▇▇
▇▇▇ ▇▇▇▇, ▇▇ ▇▇▇▇▇-▇▇▇▇
Dear Sirs:
1. Introductory. Associated Banc-Corp, a bank holding company registered pursuant to the Bank
Holding Company Act of 1956, as amended (the “BHCA”), and a Wisconsin corporation (“Company”),
agrees with the several Underwriters named in Schedule A hereto (“Underwriters”) to issue and sell
to the several Underwriters 38,993,956 shares (“Firm Securities”) of its common stock, par value
$0.01 per share (“Securities”), and also proposes to issue and sell to the Underwriters, at the
option of the Underwriters, an aggregate of not more than 5,849,093 additional shares (“Optional
Securities”) of its Securities as set forth below. The Firm Securities and the Optional Securities
are herein collectively called the “Offered Securities”.
2. Representations and Warranties of the Company. The Company represents and warrants to, and
agrees with, the several Underwriters that:
(a) Filing and Effectiveness of Registration Statement; Certain Defined Terms. The
Company has filed with the Commission a registration statement on Form S-3ASR (No.
333-156251), including a related prospectus or prospectuses, covering the registration of
the Offered Securities under the Act, which has become effective. “Registration Statement”
at any particular time means such registration statement in the form then filed with the
Commission, including any amendment thereto, any document incorporated by reference therein
and all 430B Information and all 430C Information with respect to such registration
statement, that in any case has not been superseded or modified. “Registration Statement”
without reference to a time means the Registration Statement as of the Effective Time. For
purposes of this definition, 430B Information shall be considered to be included in the
Registration Statement as of the time specified in Rule 430B.
For purposes of this Agreement:
“430B Information” means information included in a prospectus then deemed to be a part
of the Registration Statement pursuant to Rule 430B(e) or retroactively deemed to be a part
of the Registration Statement pursuant to Rule 430B(f).
“430C Information” means information included in a prospectus then deemed to be a part
of the Registration Statement pursuant to Rule 430C.
“Act” means the Securities Act of 1933, as amended.
“Applicable Time” means 8:00 p.m. (Eastern time) on the date of this Agreement.
“Closing Date” has the meaning defined in Section 3 hereof.
“Commission” means the Securities and Exchange Commission.
“Effective Time” of the Registration Statement relating to the Offered Securities means
the time of the first contract of sale for the Offered Securities.
“Exchange Act” means the Securities Exchange Act of 1934.
“Final Prospectus” means the Statutory Prospectus that discloses the public offering
price, other 430B Information and other final terms of the Offered Securities and otherwise
satisfies Section 10(a) of the Act.
“General Use Issuer Free Writing Prospectus” means any Issuer Free Writing Prospectus
that is intended for general distribution to prospective investors, as evidenced by its
being so specified in Schedule B to this Agreement.
“Issuer Free Writing Prospectus” means any “issuer free writing prospectus,” as defined
in Rule 433, relating to the Offered Securities in the form filed or required to be filed
with the Commission or, if not required to be filed, in the form retained in the Company’s
records pursuant to Rule 433(g).
“Limited Use Issuer Free Writing Prospectus” means any Issuer Free Writing Prospectus
that is not a General Use Issuer Free Writing Prospectus.
“Representative” means Credit Suisse Securities (USA) LLC.
“Rules and Regulations” means the rules and regulations of the Commission.
“Securities Laws” means, collectively, the ▇▇▇▇▇▇▇▇-▇▇▇▇▇ Act of 2002
(“▇▇▇▇▇▇▇▇-▇▇▇▇▇”), the Act, the Exchange Act, the Rules and Regulations, the auditing
principles, rules, standards and practices applicable to auditors of “issuers” (as defined
in ▇▇▇▇▇▇▇▇-▇▇▇▇▇) promulgated or approved by the Public Company Accounting Oversight Board
and the rules of the NASDAQ Stock Market (“Exchange Rules”).
“Significant Subsidiary” means a significant subsidiary as defined in Rule 405 under
the Act.
“Statutory Prospectus” with reference to any particular time means the prospectus
relating to the Offered Securities that is included in the Registration Statement
immediately prior to that time, including all 430B Information and all 430C Information with
respect to the Registration Statement. For purposes of the foregoing definition, 430B
Information shall be considered to be included in the Statutory Prospectus only as of the
actual time that form of prospectus (including a prospectus supplement) is filed with the
Commission pursuant to Rule 424(b) and not retroactively.
Unless otherwise specified, a reference to a “rule” is to the indicated rule under the Act.
(b) Compliance with Securities Act Requirements. (i) (A) At the time the Registration
Statement initially became effective, (B) at the time of each amendment thereto for the
purposes of complying with Section 10(a)(3) of the Act (whether by post-effective amendment,
incorporated report or form of prospectus), (C) at the Effective Time relating to the
Offered Securities and (D) on the Closing Date, the Registration Statement conformed and
will conform in all material respects to the requirements of the Act and the Rules and
Regulations and did not and will not include any untrue statement of a material fact or omit
to state any material fact required to be stated therein or necessary to make the statements
therein not misleading and (ii) (A) on its date, (B) at the time of filing the Final
Prospectus pursuant to Rule 424(b) and (C) on the Closing Date, the Final Prospectus will
conform in all material respects to the
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requirements of the Act and the Rules and Regulations, and will not include any untrue
statement of a material fact or omit to state any material fact required to be stated
therein or necessary to make the statements therein, in light of the circumstances under
which they were made, not misleading. The preceding sentence does not apply to statements
in, or omissions from, any such document based upon written information furnished to the
Company by any Underwriter through the Representative specifically for use therein, it being
understood and agreed that the only such information is that described as such in Section
8(b) hereof.
(c) Automatic Shelf Registration Statement.
(i) Well-Known Seasoned Issuer Status. (A) At the time of initial filing of the
Registration Statement, (B) at the time of the most recent amendment thereto for the
purposes of complying with Section 10(a)(3) of the Act (whether such amendment was
by post-effective amendment, incorporated report filed pursuant to Section 13 or
15(d) of the Exchange Act or form of prospectus), and (C) at the time the Company or
any person acting on its behalf (within the meaning, for this clause only, of Rule
163(c)) made any offer relating to the Offered Securities in reliance on the
exemption of Rule 163, the Company was a “well known seasoned issuer” as defined in
Rule 405, including not having been an “ineligible issuer” as defined in Rule 405.
(ii) Effectiveness of Automatic Shelf Registration Statement. The Registration
Statement is an “automatic shelf registration statement,” as defined in Rule 405,
that initially became effective on December 17, 2008. If immediately prior to the
Renewal Deadline (as hereinafter defined), any of the Offered Securities remain
unsold by the Underwriters, the Company will prior to the Renewal Deadline file, if
it has not already done so and is eligible to do so, a new automatic shelf
registration statement relating to the Offered Securities, in a form satisfactory to
the Representative. If the Company is no longer eligible to file an automatic shelf
registration statement, the Company will prior to the Renewal Deadline, if it has
not already done so, file a new shelf registration statement relating to the Offered
Securities, in a form satisfactory to the Representative, and will use its best
efforts to cause such registration statement to be declared effective within 180
days after the Renewal Deadline. The Company will take all other action necessary
or appropriate to permit the public offering and sale of the Offered Securities to
continue as contemplated in the expired registration statement relating to the
Offered Securities. References herein to the Registration Statement shall include
such new automatic shelf registration statement or such new shelf registration
statement, as the case may be. “Renewal Deadline” means December 16, 2011.
(iii) Eligibility to Use Automatic Shelf Registration Form. The Company has
not received from the Commission any notice pursuant to Rule 401(g)(2) objecting to
use of the automatic shelf registration statement form. If at any time when Offered
Securities remain unsold by the Underwriters, the Company receives from the
Commission a notice pursuant to Rule 401(g)(2) or otherwise ceases to be eligible to
use the automatic shelf registration statement form, the Company will (i) promptly
notify the Representative, (ii) promptly file a new registration statement or
post-effective amendment on the proper form relating to the Offered Securities, in a
form reasonably satisfactory to the Representative, (iii) use its best efforts to
cause such registration statement or post-effective amendment to be declared
effective as soon as practicable, and (iv) promptly notify the Representative of
such effectiveness. The Company will take all other reasonable action necessary or
appropriate to permit the public offering and sale of the Offered Securities to
continue as contemplated in the registration statement that was the subject of the
Rule 401(g)(2) notice or for which the Company has otherwise become ineligible.
References herein to the Registration Statement shall include such new registration
statement or post-effective amendment, as the case may be.
(iv) Filing Fees. The Company has paid or shall pay the required Commission
filing fees relating to the Offered Securities within the time required by Rule
456(b)(1) without regard to the proviso therein and otherwise in accordance with
Rules 456(b) and 457(r).
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(d) Ineligible Issuer Status. (i) At the earliest time after the filing of the
Registration Statement that the Company or another offering participant makes a bona fide
offer (within the meaning of Rule 164(h)(2)) of the Offered Securities and (ii) at the date
of this Agreement, the Company was not and is not an “ineligible issuer,” as defined in Rule
405.
(e) General Disclosure Package. As of the Applicable Time, neither (i) the General Use
Issuer Free Writing Prospectus(es) issued at or prior to the Applicable Time and the
preliminary prospectus supplement, dated January 11 2010, including the base prospectus,
dated December 17, 2008 (which is the most recent Statutory Prospectus distributed to
investors generally), and the other information, if any, stated in Schedule B to this
Agreement to be included in the General Disclosure Package, all considered together
(collectively, the “General Disclosure Package”), nor (ii) any individual Limited Use Issuer
Free Writing Prospectus, when considered together with the General Disclosure Package,
included any untrue statement of a material fact or omitted to state any material fact
necessary in order to make the statements therein, in the light of the circumstances under
which they were made, not misleading. The preceding sentence does not apply to statements
in, or omissions from, any Statutory Prospectus, any Issuer Free Writing Prospectus or the
General Disclosure Package in reliance upon, and in conformity with, written information
furnished to the Company by any Underwriter through the Representative specifically for use
therein, it being understood and agreed that the only such information furnished by any
Underwriter consists of the information described as such in Section 8(b) hereof.
(f) Issuer Free Writing Prospectuses. Each Issuer Free Writing Prospectus, as of its
issue date and at all subsequent times through the completion of the public offer and sale
of the Offered Securities or until any earlier date that the Company notified or notifies
the Representative as described in the next sentence, did not, does not and will not include
any information that conflicted, conflicts or will conflict with the information then
contained in the Registration Statement. If at any time following issuance of an Issuer
Free Writing Prospectus there occurred or occurs an event or development as a result of
which such Issuer Free Writing Prospectus conflicted or would conflict with the information
then contained in the Registration Statement or as a result of which such Issuer Free
Writing Prospectus, if republished immediately following such event or development, would
include an untrue statement of a material fact or omitted or would omit to state a material
fact necessary in order to make the statements therein, in the light of the circumstances
under which they were made, not misleading, (i) the Company has promptly notified or will
promptly notify the Representative and (ii) the Company has promptly amended or will
promptly amend or supplement such Issuer Free Writing Prospectus to eliminate or correct
such conflict, untrue statement or omission.
(g) Existence of the Company. The Company has been duly incorporated and is validly
existing under the laws of the State of Wisconsin (it being understood that the State of
Wisconsin does not acknowledge good standing in its Certificate of Status, no action or
proceeding for the dissolution of the Company has been taken, and the Company is not aware
of the failure by the Company to make any prescribed filing or take any required action to
maintain its legal status certification with the Department of Financial Institutions in the
State of Wisconsin) with power and authority (corporate and other) to own its properties and
conduct its business as described in the General Disclosure Package; and the Company is duly
qualified to do business as a foreign corporation in good standing in all other
jurisdictions in which its ownership or lease of property or the conduct of its business
requires such qualification, except where the failure to be so qualified would not,
individually or in the aggregate, result in a material adverse effect on the condition
(financial or otherwise), results of operations, business, properties or prospects of the
Company and its subsidiaries taken as a whole (“Material Adverse Effect”).
(h) Subsidiaries; Banking Subsidiaries. The Company’s sole Significant Subsidiary is
Associated Bank, National Association (the “Bank”). The Bank has been duly organized and is
validly existing as a nationally chartered commercial bank under the laws of the United
States, with the power and authority (corporate or other) to own its properties and conduct
its business as described in the General Disclosure Package. Each other subsidiary of the
Company is validly existing and (if such concept exists in such jurisdiction) in good
standing under the laws of the jurisdiction of its incorporation or organization, as the
case may be, with power and authority (corporate and other) to own its properties and
conduct its business as described in the General Disclosure Package. Each subsidiary of the
Company is duly qualified
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to do business as a foreign corporation in good standing in all other jurisdictions in
which its ownership or lease of property or the conduct of its business requires such
qualification, except where failure to be in good standing, have such power and authority,
or be so qualified would not, individually or in the aggregate, result in a Material Adverse
Effect. All of the issued and outstanding equity interests of the Bank have been duly
authorized and validly issued and are fully paid and nonassessable, and all of the equity
interests of the Bank are owned by the Company free and clear from liens, encumbrances and
defects. The deposit accounts of the Bank are insured up to the applicable limits by the
Federal Deposit Insurance Corporation. Associated Trust Company, National Association (the
“Trust”) is duly organized and validly existing as a nationally chartered trust company in
good standing under the laws of the United States. All of the issued and outstanding equity
interests of the Trust have been duly authorized and validly issued and are fully paid and
nonassessable, and all of the equity interests of the Trust are owned by the Bank, free from
liens, encumbrances and defects. All of the issued and outstanding equity interests of the
subsidiaries of the Company other than the Bank and the Trust have been duly authorized and
validly issued and are fully paid and nonassessable, and all of the equity interests of the
other subsidiaries are owned by the Company, free from liens, encumbrances and defects,
except where such defects, individually or in aggregate, would not have a Material Adverse
Effect.
(i) Offered Securities. The Offered Securities and all other outstanding shares of
capital stock of the Company have been duly authorized; the authorized capitalization of the
Company is as set forth in the General Disclosure Package; all outstanding shares of capital
stock of the Company are, and, when the Offered Securities have been delivered and paid for
in accordance with this Agreement on each Closing Date, such Offered Securities will have
been, validly issued, fully paid and nonassessable, will conform in all material respects to
the information in the General Disclosure Package and to the description of such Offered
Securities contained in the Final Prospectus; the stockholders of the Company have no
preemptive rights with respect to the Securities; and none of the outstanding shares of
capital stock of the Company have been issued in violation of any preemptive or similar
rights of any security holder.
(j) No Finder’s Fee. Except as disclosed in the General Disclosure Package, there are
no contracts, agreements or understandings between the Company and any person that would
give rise to a valid claim against the Company or any Underwriter for a brokerage
commission, finder’s fee or other like payment in connection with this offering.
(k) Registration Rights. Except as disclosed in the General Disclosure Package, there
are no contracts, agreements or understandings between the Company and any person granting
such person the right to require the Company to file a registration statement under the Act
with respect to any securities of the Company owned or to be owned by such person or to
require the Company to include such securities in the securities registered pursuant to the
Registration Statement or in any securities being registered pursuant to any other
registration statement filed by the Company under the Act (collectively, “registration
rights”).
(l) Listing. The Offered Securities have been approved for listing on the NASDAQ Stock
Market (“NASDAQ”), subject to notice of issuance.
(m) Absence of Further Requirements. No consent, approval, authorization, or order of,
or filing or registration with, any person (including any governmental agency or body or any
court) is required in connection with the execution and delivery of this Agreement or the
consummation of the transactions contemplated by this Agreement (including, without
limitation, the offering, issuance and sale of the Offered Securities by the Company),
except such as have been obtained, or made and such as may be required under the
notification requirements of NASDAQ (which shall be delivered on or before the Closing Date)
and state securities laws.
(n) Title to Property. Except as disclosed in the General Disclosure Package, the
Company and its subsidiaries have good and marketable title to all real properties and all
other properties and assets owned by them, in each case free from liens, charges,
encumbrances and defects that would materially affect the value thereof or materially
interfere with the use made or to be made thereof by them and, except as disclosed in the
General Disclosure Package, the Company and its subsidiaries hold any leased real or
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personal property under valid and enforceable leases with no terms or provisions that
would materially interfere with the use made or to be made thereof by them.
(o) Absence of Defaults and Conflicts Resulting from Transaction. The execution,
delivery and performance of this Agreement, and the issuance and sale of the Offered
Securities, will not result in a breach or violation of any of the terms and provisions of,
or constitute a default or a Debt Repayment Triggering Event (as defined below) under, or
result in the imposition of any lien, charge or encumbrance upon any property or assets of
the Company or any of its subsidiaries pursuant to (i) the charter or by-laws of the Company
or the Bank, (ii) any statute, rule, regulation or order of any governmental agency or body
or any court, domestic or foreign, having jurisdiction over the Company or any of its
subsidiaries or any of their properties, or (iii) any agreement or instrument to which the
Company or any of its subsidiaries is a party or by which the Company or any of its
subsidiaries is bound or to which any of the properties of the Company or any of its
subsidiaries is subject, except in the case of clauses (ii) or (iii) for breaches,
violations, defaults, liens, charges or encumbrances that would not have a Material Adverse
Effect; a “Debt Repayment Triggering Event” means any event or condition that gives, or with
the giving of notice or lapse of time would give, the holder of any note, debenture, or
other evidence of indebtedness (or any person acting on such holder’s behalf) the right to
require the repurchase, redemption or repayment of all or a portion of such indebtedness by
the Company or any of its subsidiaries.
(p) Absence of Existing Defaults and Conflicts. (i) Neither the Company nor the Bank
is in violation of its respective charter or by-laws, limited liability agreement or other
organizational instruments or (ii) neither the Company nor any of its subsidiaries is in
violation of or in default (or with the giving of notice or lapse of time would be in
default) under any existing obligation, agreement, covenant or condition contained in any
indenture, loan agreement, mortgage, lease or other agreement or instrument to which any of
them is a party or by which any of them is bound or to which any of the properties of any of
them is subject, except, in the case of clause (ii) only, such violations or defaults that
would not have, individually or in the aggregate, a Material Adverse Effect.
(q) Authorization of Agreement. This Agreement has been duly authorized, executed and
delivered by the Company.
(r) Bank Holding Company; Possession of Licenses and Permits. The Company is duly
registered as a bank holding company under the BHCA. Except as would not individually or in
the aggregate have a Material Adverse Effect, the Company and its subsidiaries possess, and
are in compliance with the terms of, all certificates, authorizations, franchises, licenses
and permits (“Licenses”) and have made all filings, applications and registrations with all
courts, regulatory authorities or governmental agencies or bodies having jurisdiction over
the Company and its subsidiaries necessary to the conduct of the business now conducted or
proposed. The Bank possesses an effective charter duly issued by the Office of the
Comptroller of the Currency. Except as described in the General Disclosure Package, neither
the Company nor the Bank has received any notice of proceedings relating to the revocation
or modification of any Licenses that, if determined adversely to the Company or the Bank,
would individually or in the aggregate have a Material Adverse Effect. The Company has not
elected to be treated as a financial holding company.
(s) No Enforcement. Except as disclosed in the General Disclosure Package and Final
Prospectus, neither the Company nor any subsidiary of the Company (i) is the subject of any
cease-and-desist order, operating agreement, written agreement, consent decree, memorandum
of understanding, commitment letter, order, directive, extraordinary supervisory letter or
similar action taken, issued or required by any governmental, regulatory, judicial,
self-regulatory or similar body or (ii) has, since November 5, 2009, been advised by any
governmental, regulatory, judicial, self-regulatory or similar body having jurisdiction over
the Company and its subsidiaries that it is considering taking, issuing or requiring any of
the items in clause (i), the disclosure of which advisement would be required in the General
Disclosure Package or the Final Prospectus pursuant to the Rules and Regulations. The
Company and its subsidiaries are in compliance in all material respects with the terms of
any item listed in clause (i) that is disclosed in the General Disclosure Package and Final
Prospectus.
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(t) Absence of Labor Dispute. No labor dispute with the employees of the Company or
any of its subsidiaries exists or, to the knowledge of the Company, is imminent that could
have a Material Adverse Effect.
(u) Possession of Intellectual Property. The Company and its subsidiaries own, possess
or can acquire on reasonable terms, adequate trademarks, trade names and other rights to
inventions, know-how, patents, copyrights, confidential information and other intellectual
property (collectively, “intellectual property rights”) necessary to conduct the business
now conducted by them, and have not received any notice of infringement of or conflict with
asserted rights of others with respect to any intellectual property rights that, if
determined adversely to the Company or any of its subsidiaries, would individually or in the
aggregate have a Material Adverse Effect.
(v) Environmental Laws. Except as disclosed in the General Disclosure Package, neither
the Company nor any of its subsidiaries is in violation of any statute, any rule,
regulation, decision or order of any governmental agency or body or any court, domestic or
foreign, relating to the use, disposal or release of Hazardous Substances or relating to the
protection or restoration of the environment or human exposure to Hazardous Substances
(collectively, “environmental laws”), owns or operates any real property contaminated with
any Hazardous Substances, is liable for any off-site disposal of, or contamination by,
Hazardous Substances, or is subject to any claim by any governmental agency or body or other
person relating to any environmental laws or Hazardous Substances, which violation,
contamination, liability or claim would individually or in the aggregate have a Material
Adverse Effect and, to the knowledge of the Company, there is no pending investigation that
might lead to such a claim. “Hazardous Substances” means (i) petroleum or petroleum
products, by-products or breakdown products, radioactive materials, asbestos containing
materials, polychlorinated biphenyls and mold, and (ii) any other chemical, material or
substances defined or regulated as toxic or hazardous under environmental laws.
(w) Absence of Manipulation. The Company has not taken, directly or indirectly, any
action that is designed to or that has constituted or that would reasonably be expected to
cause or result in the stabilization or manipulation of the price of any security of the
Company to facilitate the sale or resale of the Offered Securities.
(x) Internal Controls and Compliance with the ▇▇▇▇▇▇▇▇-▇▇▇▇▇ Act. Except as set forth
in the General Disclosure Package, the Company, its subsidiaries and the Company’s Board of
Directors (the “Board”) are in compliance in all material respects with ▇▇▇▇▇▇▇▇-▇▇▇▇▇ and
all applicable Exchange Rules. The Company maintains a system of internal controls,
including, but not limited to, internal controls over accounting matters and financial
reporting, an internal audit function and legal and regulatory compliance controls
(collectively, “Internal Controls”) that comply with the Securities Laws and are sufficient
to provide reasonable assurances that (i) transactions are executed in accordance with
management’s general or specific authorizations, (ii) transactions are recorded as necessary
to permit preparation of financial statements in conformity with U.S. Generally Accepted
Accounting Principles and to maintain accountability for assets, (iii) access to assets is
permitted only in accordance with management’s general or specific authorization and (iv)
the recorded accountability for assets is compared with the existing assets at reasonable
intervals and appropriate action is taken with respect to any differences. The Internal
Controls over financial reporting are effective and the Company is not aware of any material
weakness in its Internal Control over financial reporting. Except as disclosed in the
General Disclosure Package and the Final Prospectus, since December 31, 2008, there has been
no change in the Internal Controls that has materially affected, or is reasonably likely to
materially affect, the Internal Controls. The Internal Controls are overseen by the Audit
Committee of the Board (the “Audit Committee”) in accordance with Exchange Rules. The
Company has not publicly disclosed or reported to the Audit Committee or the Board, and
within the next 90 days the Company does not reasonably expect to publicly disclose or
report to the Audit Committee or the Board, a significant deficiency, material weakness,
change in Internal Controls or fraud involving management or other employees who have a
significant role in Internal Controls (each, an “Internal Control Event”), any violation of,
or failure to comply with, the Securities Laws, or any matter which, if determined
adversely, would have a Material Adverse Effect. The Company maintains “disclosure controls
and procedures” (as such term is defined in Rule 13a-15(e) under the Exchange Act) that
comply with the requirements of the Exchange Act; such disclosure controls and procedures
have been designed to
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ensure that material information relating to the Company and its subsidiaries is made
known to the Company’s principal executive officer and principal financial officer by others
within those entities and that such disclosure controls and procedures are effective.
(y) Absence of Accounting Issues. A member of the Audit Committee has confirmed to the
Chief Financial Officer that, except as set forth in the General Disclosure Package, the
Audit Committee is not reviewing or investigating, and neither the Company’s independent
auditors nor its internal auditors have recommended that the Audit Committee review or
investigate, (i) adding to, deleting, changing the application of, or changing the Company’s
disclosure with respect to any of the Company’s material accounting policies; (ii) any
matter that could result in a restatement of the Company’s financial statements for any
annual or interim period during the current or prior three fiscal years; or (iii) any
Internal Control Event.
(z) Legal Proceedings. Except as disclosed in the General Disclosure Package, there
are no pending actions, suits or proceedings (including any inquiries or investigations by
or before any court or governmental agency or body, domestic or foreign) against or
affecting the Company or any of its subsidiaries or any of their respective properties that,
if determined adversely to the Company or any of its subsidiaries, would individually or in
the aggregate have a Material Adverse Effect, or would materially and adversely affect the
ability of the Company to perform its obligations under this Agreement, or which are
otherwise material in the context of the sale of the Offered Securities; and no such
actions, suits or proceedings (including any inquiries or investigations by any court or
governmental agency or body, domestic or foreign) are, to the Company’s knowledge,
threatened or contemplated.
(aa) Financial Statements and Information. The financial statements included or
incorporated by reference in the Registration Statement and the General Disclosure Package
present fairly the financial position of the Company and its consolidated subsidiaries as of
the dates shown and their results of operations and cash flows for the periods shown, and
such financial statements have been prepared in conformity with the generally accepted
accounting principles in the United States applied on a consistent basis. The summary
financial information (including at and for the quarter and year ended December 31, 2009)
and the selected financial data included or incorporated by reference in the Registration
Statement and the General Disclosure Package fairly present, in all material respects, the
information therein and have been compiled on a basis consistent with that of the audited
financial statements included or incorporated by reference in the Registration Statement and
the General Disclosure Package. The other financial, operational and statistical information
(including at and for the quarter and year ended December 31, 2009) included or incorporated
by reference in the Registration Statement and the General Disclosure Package fairly
present, in all material respects, the information therein and are derived from the books
and records of the Company. All disclosures contained in the Registration Statement or the
General Disclosure Package regarding “non-GAAP financial measures” (as such term is defined
by the Rules and Regulations) comply with Regulation G of the Exchange Act, the Rules and
Regulations and Item 10 of Regulation S-K under the Act. The presentation of the “as
adjusted” financial statements showing the effect of the proceeds received from the sale of
the Offered Securities reflect the proper application of those adjustments to the
corresponding historical financial statement amounts.
(bb) No Material Adverse Change in Business. Except as disclosed in the General
Disclosure Package, since the end of the period covered by the latest audited financial
statements included or incorporated by reference in the General Disclosure Package (i) there
has been no change, nor any development or event involving a prospective change, in the
condition (financial or otherwise), results of operations, business, properties or prospects
of the Company and its subsidiaries, taken as a whole that is material and adverse, (ii)
except as disclosed in or contemplated by the General Disclosure Package, there has been no
dividend or distribution of any kind declared, paid or made by the Company on any class of
its capital stock and (iii) except as disclosed in or contemplated by the General Disclosure
Package, there has been no material adverse change in the capital stock, short-term
indebtedness, long-term indebtedness, net current assets or net assets of the Company and
its subsidiaries.
8
(cc) Investment Company Act. The Company is not and, after giving effect to the
offering and sale of the Offered Securities and the application of the proceeds thereof as
described in the General Disclosure Package, will not be an “investment company” as defined
in the Investment Company Act of 1940, as amended (the “Investment Company Act”).
(dd) Ratings. No “nationally recognized statistical rating organization” as such term
is defined for purposes of Rule 436(g)(2) (i) has imposed (or has informed the Company that
it is considering imposing) any condition (financial or otherwise) on the Company’s
retaining any rating assigned to the Company or any securities of the Company or (ii) has
indicated to the Company that it is considering any of the actions described in Section
7(c)(ii) hereof.
(ee) Anti-Bribery Laws; Money Laundering Laws; OFAC. None of the Company, any of its
subsidiaries, or any director, officer or, to the knowledge of the Company, any agent,
employee or other person associated with or acting on behalf of the Company or any of its
subsidiaries has (i) used any corporate funds for any unlawful contribution, gift,
entertainment or other unlawful expense relating to political activity; (ii) made any direct
or indirect unlawful payment to any foreign or domestic government official or employee from
corporate funds; (iii) violated or is in violation of any provision of the Foreign Corrupt
Practices Act of 1977; or (iv) made any bribe, rebate, payoff, influence payment, kickback
or other unlawful payment. The operations of the Company and its subsidiaries are and have
been conducted at all times in compliance with applicable financial record keeping and
reporting requirements relating to money laundering applicable to the Company or any of its
subsidiaries and, to the Company’s knowledge, any related or similar statutes, rules,
regulations or guidelines, issued, administered or enforced by any governmental agency
(collectively, the “Money Laundering Laws”), and no action, suit or proceeding by or before
any court or governmental agency, authority or body or any arbitrator involving the Company,
any of its subsidiaries or, to the knowledge of the Company, any of their respective
directors, officers, supervisors, agents, managers, employees or affiliates with respect to
the Money Laundering Laws is pending or, to the knowledge of the Company, threatened. None
of the Company, any of its subsidiaries or, to the knowledge of the Company, any of their
respective directors, officers, supervisors, agents, managers, employees or affiliates is
currently subject to any sanctions administered by the Office of Foreign Assets Control of
the U.S. Treasury Department (“OFAC”); and the Company will not directly or indirectly use
the proceeds of the sale of the Offered Securities, or lend, contribute or otherwise make
available such proceeds to any subsidiary, joint venture partner or other person or entity
for the purpose of financing the activities of any person currently subject to any U.S.
sanctions administered by OFAC.
(ff) Tax. The Company and its subsidiaries have filed all federal, state, local and
non-U.S. tax returns that are required to be filed or have requested extensions thereof
(except in any case in which the failure so to file would not have a Material Adverse
Effect); and, except as set forth in the General Disclosure Package, the Company and the
Bank have paid all taxes (including any assessments, fines or penalties) required to be paid
by them, other than (i) those being contested in good faith and for which adequate reserves
have been established and such reserves appear in the Company’s consolidated financial
statements and (ii) where the failure to pay would not, individually or in the aggregate,
have a Material Adverse Effect.
(gg) Insurance. The Company and its subsidiaries are insured by insurers with
appropriately rated claims paying abilities against such losses and risks and in such
amounts as are customary for the businesses in which they are engaged; all policies of
insurance and fidelity or surety bonds insuring the Company or any of its subsidiaries or
their respective businesses, assets, employees, officers and directors are in full force and
effect; the Company and its subsidiaries are in compliance with the terms of such policies
and instruments in all material respects; and there are no material claims by the Company or
any of its subsidiaries under any such policy or instrument as to which any insurance
company is denying liability or defending under a reservation of rights clause; and neither
the Company nor any such subsidiary has any reason to believe that it will not be able to
renew its existing insurance coverage as and when such coverage expires or to obtain similar
coverage from similar insurers as may be necessary to continue its business at a cost that
would not have a Material Adverse Effect, except as set forth in or contemplated in the
General Disclosure Package.
9
3. Purchase, Sale and Delivery of Offered Securities. On the basis of the representations,
warranties and agreements and subject to the terms and conditions set forth herein, the Company
agrees to sell to the several Underwriters, and each of the Underwriters agrees, severally and not
jointly, to purchase from the Company, at a purchase price of $10.676125 per share, the respective
number of shares of Firm Securities set forth opposite the names of the Underwriters in Schedule A
hereto.
The Company will deliver the Firm Securities to or as instructed by the Representative for the
accounts of the several Underwriters in a form reasonably acceptable to the Representative against
payment of the purchase price by the Underwriters in Federal (same day) funds by wire transfer to
an account at a bank acceptable to the Representative drawn to the order of the Company at the
office of Skadden, Arps, Slate, ▇▇▇▇▇▇▇ & ▇▇▇▇ LLP, Four Times Square, ▇▇▇ ▇▇▇▇ ▇▇ ▇▇▇▇▇, at 10:00
a.m., New York time, on January 15, 2010, or at such other time not later than seven full business
days thereafter as the Representative and the Company determine, such time being herein referred to
as the “First Closing Date”. For purposes of Rule 15c6-1 under the Exchange Act, the First Closing
Date (if later than the otherwise applicable settlement date) shall be the settlement date for
payment of funds and delivery of securities for all the Offered Securities sold pursuant to the
offering. The Firm Securities so to be delivered or evidence of their issuance will be made
available for checking at the above office of Skadden, Arps, Slate, ▇▇▇▇▇▇▇ & ▇▇▇▇ LLP at least 24
hours prior to the First Closing Date.
In addition, upon written notice from the Representative given to the Company from time to
time not more than 30 days subsequent to the date of the Final Prospectus, the Underwriters may
purchase all or less than all of the Optional Securities at the purchase price per Security to be
paid for the Firm Securities. The Company agrees to sell to the Underwriters the number of shares
of Optional Securities specified in such notice and the Underwriters agree, severally and not
jointly, to purchase such Optional Securities. Such Optional Securities shall be purchased for the
account of each Underwriter in the same proportion as the number of shares of Firm Securities set
forth opposite such Underwriter’s name bears to the total number of shares of Firm Securities
(subject to adjustment by the Representative to eliminate fractions) and may be purchased by the
Underwriters only for the purpose of covering over-allotments made in connection with the sale of
the Firm Securities. No Optional Securities shall be sold or delivered unless the Firm Securities
previously have been, or simultaneously are, sold and delivered. The right to purchase the Optional
Securities or any portion thereof may be exercised from time to time and to the extent not
previously exercised may be surrendered and terminated at any time upon notice by the
Representative to the Company.
Each time for the delivery of and payment for the Optional Securities, being herein referred
to as an “Optional Closing Date”, which may be the First Closing Date (the First Closing Date and
each Optional Closing Date, if any, being sometimes referred to as a “Closing Date”), shall be
determined by the Representative but shall be no later than five full business days after written
notice of election to purchase Optional Securities is given. The Company will deliver the Optional
Securities being purchased on each Optional Closing Date to or as instructed by the Representative
for the accounts of the several Underwriters in a form reasonably acceptable to the Representative
against payment of the purchase price therefor in Federal (same day) funds by wire transfer to an
account at a bank acceptable to the Representative drawn to the order of the Company, at the above
office of Skadden, Arps, Slate, ▇▇▇▇▇▇▇ & ▇▇▇▇ LLP. The Optional Securities being
purchased on each Optional Closing Date or evidence of their issuance will be made available for
checking at the above office of Skadden, Arps, Slate, ▇▇▇▇▇▇▇ & ▇▇▇▇ LLP at a reasonable time in
advance of such Optional Closing Date.
4. Offering by Underwriters. It is understood that the several Underwriters propose to offer
the Offered Securities for sale to the public as set forth in the Final Prospectus.
5. Certain Agreements of the Company. The Company agrees with the several Underwriters that:
(a) Filing of Prospectuses. The Company has filed or will file each Statutory
Prospectus (including the Final Prospectus) pursuant to and in accordance with Rule
424(b)(2) (or, if applicable and consented to by the Representative, subparagraph (5)) not
later than the second business day following the earlier of the date it is first used or the
execution and delivery of this Agreement. The Company has complied and will comply with
Rule 433.
10
(b) Filing of Amendments; Response to Commission Requests. The Company will promptly
advise the Representative of any proposal to amend or supplement the Registration Statement
or any Statutory Prospectus at any time and will offer the Representative a reasonable
opportunity to comment on any such amendment or supplement; and the Company will also advise
the Representative promptly of (i) the filing of any such amendment or supplement, (ii) any
request by the Commission or its staff for any amendment to the Registration Statement, for
any supplement to any Statutory Prospectus or for any additional information, (iii) the
institution by the Commission of any stop order proceedings in respect of the Registration
Statement or the threatening of any proceeding for that purpose, and (iv) the receipt by the
Company of any notification with respect to the suspension of the qualification of the
Offered Securities in any jurisdiction or the institution or threatening of any proceedings
for such purpose. The Company will use its best efforts to prevent the issuance of any such
stop order or the suspension of any such qualification and, if issued, to obtain as soon as
possible the withdrawal thereof.
(c) Continued Compliance with Securities Laws. If, at any time when a prospectus
relating to the Offered Securities is (or but for the exemption in Rule 172 would be)
required to be delivered under the Act by any Underwriter or dealer, any event occurs as a
result of which the Final Prospectus as then amended or supplemented would include an untrue
statement of a material fact or omit to state any material fact necessary to make the
statements therein, in the light of the circumstances under which they were made, not
misleading, or if it is necessary at any time to amend the Registration Statement or
supplement the Final Prospectus to comply with the Act, the Company will promptly notify the
Representative of such event and will promptly prepare and file with the Commission and
furnish, at its own expense, to the Underwriters and the dealers and any other dealers upon
request of the Representative, an amendment or supplement which will correct such statement
or omission or an amendment which will effect such compliance. Neither the Representative’s
consent to, nor the Underwriters’ delivery of, any such amendment or supplement shall
constitute a waiver of any of the conditions set forth in Section 7 hereof.
(d) Rule 158. As soon as practicable, but not later than 16 months, after the date of
this Agreement, the Company will make generally available to its securityholders an earnings
statement covering a period of at least 12 months beginning after the date of this Agreement
and satisfying the provisions of Section 11(a) of the Act and Rule 158.
(e) Furnishing of Prospectuses. The Company will furnish to the Representative copies
of the Registration Statement, including all exhibits, any Statutory Prospectus, the Final
Prospectus and all amendments and supplements to such documents, in each case as soon as
available and in such quantities as the Representative reasonably requests. The Company
will pay the expenses of printing and distributing to the Underwriters all such documents.
(f) Blue Sky Qualifications. The Company will arrange for the qualification of the
Offered Securities for sale under the laws of such jurisdictions as the Representative
designates and will continue such qualifications in effect so long as required for the
distribution; provided that the Company shall not be required to (i) qualify as a foreign
corporation or other entity or as a dealer in securities in any such jurisdiction where it
would not otherwise be required to so qualify or (ii) file any general consent to service of
process in any such jurisdiction.
(g) Reporting Requirements. During the period of two years hereafter, the Company will
furnish, upon request, to the Representative and to each of the other Underwriters, as soon
as practicable after the end of each fiscal year, a copy of its annual report to
stockholders for such year; and the Company will furnish to the Representative (i) as soon
as available, a copy of each report and any definitive proxy statement of the Company filed
with the Commission under the Exchange Act or mailed to stockholders, and (ii) from time to
time, such other information concerning the Company as the Representative may reasonably
request. However, so long as the Company is subject to the reporting requirements of either
Section 13 or Section 15(d) of the Exchange Act and is timely filing reports with the
Commission on its Electronic Data Gathering, Analysis and Retrieval system (“▇▇▇▇▇”), it is
not required to furnish such reports or statements to the Underwriters.
11
(h) Payment of Expenses. The Company will pay all expenses incident to the performance
of its obligations under this Agreement, including but not limited to any filing fees and
other expenses (including fees and disbursements of counsel to the Underwriters) incurred in
connection with qualification of the Offered Securities for sale under the laws of such
jurisdictions as the Representative designates and the preparation and printing of memoranda
relating thereto, costs and expenses related to any review by the Financial Industry
Regulatory Authority of the Offered Securities (including filing fees and the fees and
expenses of counsel for the Underwriters relating directly to such review), costs and
expenses relating to investor presentations or any “road show” in connection with the
offering and sale of the Offered Securities including, without limitation, any travel
expenses of the Company’s officers and employees and any other expenses of the Company
including the chartering of airplanes and the cost of lodging, meals, and other expenses for
the Company, fees and expenses incident to listing the Offered Securities on NASDAQ, fees
and expenses in connection with the registration of the Offered Securities under the
Exchange Act, and expenses incurred in distributing preliminary prospectuses and the Final
Prospectus (including any amendments and supplements thereto) to the Underwriters and for
expenses incurred for preparing, printing and distributing any Issuer Free Writing
Prospectuses to investors or prospective investors. It is understood and acknowledged,
however, that, except as provided above and in Section 10, the Underwriters will pay all of
their own costs and expenses, including fees of their counsel and transfer taxes on resale
of any of the Offered Securities.
(i) Use of Proceeds. The Company will use the net proceeds received in connection with
this offering in the manner described in the “Use of Proceeds” section of the General
Disclosure Package and, except as disclosed in the General Disclosure Package, the Company
does not intend to use any of the proceeds from the sale of the Offered Securities hereunder
to repay any outstanding debt owed to any affiliate of any Underwriter.
(j) Absence of Manipulation. The Company will not take, directly or indirectly, any
action designed to or that would constitute or that might reasonably be expected to cause or
result in, stabilization or manipulation of the price of any securities of the Company to
facilitate the sale or resale of the Offered Securities.
(k) Restriction on Sale of Securities. For the period specified below (the “Lock-Up
Period”), the Company will not, directly or indirectly, take any of the following actions
with respect to its Securities or any securities convertible into or exchangeable or
exercisable for any of its Securities (“Lock-Up Securities”): (i) offer, sell, issue,
contract to sell, pledge or otherwise dispose of Lock-Up Securities, (ii) offer, sell,
issue, contract to sell, contract to purchase or grant any option, right or warrant to
purchase Lock-Up Securities, (iii) enter into any swap, hedge or any other agreement that
transfers, in whole or in part, the economic consequences of ownership of Lock-Up
Securities, (iv) establish or increase a put equivalent position or liquidate or decrease a
call equivalent position in Lock-Up Securities within the meaning of Section 16 of the
Exchange Act or (v) file with the Commission a registration statement under the Act relating
to Lock-Up Securities, or publicly disclose the intention to take any such action, without
the prior written consent of the Representative except for (1) the offer and sale of the
Offered Securities, (2) the issuance of Lock-Up Securities pursuant to the conversion or
exercise of convertible securities outstanding on the date hereof, (3) grants of employee
stock options or other equity-based awards, in the case of either (2) or (3), pursuant to
the terms of an equity incentive plan or arrangement in effect on the date hereof and
described in the General Disclosure Package or issuances of Lock-Up Securities pursuant to
the exercise of such options or other awards. The Lock-Up Period will commence on the date
hereof and continue for 90 days after the date hereof or such earlier date that the
Representative consents to in writing.
6. Free Writing Prospectuses. The Company represents and agrees that, unless it obtains the
prior consent of the Representative, and each Underwriter represents and agrees that, unless it
obtains the prior consent of the Company and the Representative, it has not made and will not make
any offer relating to the Offered Securities that would constitute an Issuer Free Writing
Prospectus, or that would otherwise constitute a “free writing prospectus,” as defined in Rule 405,
required to be filed with the Commission. Any such free writing prospectus consented to by the
Company and the Representative is hereinafter referred to as a “Permitted Free Writing Prospectus.”
The Company represents that it has treated and agrees that it will treat each Permitted Free
Writing Prospectus as an “issuer free writing prospectus,” as defined in Rule 433, and has complied
and will comply with the
12
requirements of Rules 164 and 433 applicable to any Permitted Free Writing Prospectus,
including timely Commission filing where required, legending and record keeping.
7. Conditions of the Obligations of the Underwriters. The obligations of the several
Underwriters to purchase and pay for the Firm Securities on the First Closing Date and the Optional
Securities to be purchased on each Optional Closing Date will be subject to the accuracy of the
representations and warranties of the Company herein (as though made on such Closing Date), to the
accuracy of the statements of Company officers made pursuant to the provisions hereof, to the
performance by the Company of its obligations hereunder and to the following additional conditions
precedent:
(a) Accountants’ Comfort Letter. The Representative shall have received letters,
dated, respectively, the date hereof and each Closing Date, of KPMG LLP confirming that they
are a registered public accounting firm and independent public accountants within the
meaning of the Securities Laws and substantially in the form of Schedule C hereto (except
that, in any letter dated a Closing Date, the specified date referred to in Schedule C
hereto shall be a date no more than three days prior to such Closing Date).
(b) Filing of Prospectus. The Final Prospectus shall have been filed with the
Commission in accordance with the Rules and Regulations and Section 5(a) hereof. No stop
order suspending the effectiveness of the Registration Statement or of any part thereof
shall have been issued and no proceedings for that purpose shall have been instituted or, to
the knowledge of the Company or any Underwriter, shall be contemplated by the Commission.
(c) No Material Adverse Change. Subsequent to the execution and delivery of this
Agreement, there shall not have occurred (i) any change, or any development or event
involving a prospective change, in the condition (financial or otherwise), results of
operations, business, properties or prospects of the Company and its subsidiaries taken as a
whole which, in the judgment of the Representative, is material and adverse and makes it
impractical or inadvisable to market the Offered Securities; (ii) any downgrading in the
rating of any debt securities (or, if applicable, preferred stock) of the Company by any
“nationally recognized statistical rating organization” (as defined for purposes of
Rule 436(g)), or any public announcement that any such organization has under surveillance
or review its rating of any debt securities (or, if applicable, preferred stock) of the
Company (other than an announcement with positive implications of a possible upgrading, and
no implication of a possible downgrading, of such rating); (iii) any change in U.S. or
international financial, political or economic conditions or currency exchange rates or
exchange controls the effect of which is such as to make it, in the judgment of the
Representative, impractical or inadvisable to market or to enforce contracts for the sale of
the Offered Securities, whether in the primary market or in respect of dealings in the
secondary market; (iv) any suspension or material limitation of trading in securities
generally on the New York Stock Exchange or NASDAQ, or any setting of minimum or maximum
prices for trading on such exchange; (v) or any suspension of trading of any securities of
the Company on any exchange or in the over-the-counter market; (vi) any banking moratorium
declared by any U.S. federal, New York or Wisconsin authorities; (vii) any major disruption
of settlements of securities, payment, or clearance services in the United States or
(viii) any attack on, outbreak or escalation of hostilities or act of terrorism involving
the United States, any declaration of war by Congress or any other national or international
calamity or emergency if, in the judgment of the Representative, the effect of any such
attack, outbreak, escalation, act, declaration, calamity or emergency is such as to make it
impractical or inadvisable to market the Offered Securities or to enforce contracts for the
sale of the Offered Securities.
(d) Opinion of In-house Counsel for Company. The Representative shall have received
from the Company’s in-house counsel, ▇▇▇▇▇▇ ▇. ▇▇▇▇▇, such opinion (the form of such opinion
is attached as Exhibit B hereto), dated as of such Closing Date.
(e) Opinion of Outside Counsel for Company. The Representative shall have received
from ▇▇▇▇▇▇ ▇▇▇▇▇▇ Rosenman LLP, the Company’s outside counsel, such opinion (the form of
such opinion is attached as Exhibit C hereto), dated as of such Closing Date and the Company
shall have furnished to such counsel such documents as they request for the purpose of
enabling them to pass upon such matters.
13
(f) Opinion of Counsel for Underwriters. The Representative shall have received from
Skadden, Arps, Slate, ▇▇▇▇▇▇▇ & ▇▇▇▇ LLP, counsel for the Underwriters, such opinion and
letter, dated as of such Closing Date and the Company shall have furnished to such counsel
such documents as they request for the purpose of enabling them to pass upon such matters.
(g) Officers’ Certificate. The Representative shall have received a certificate, dated
such Closing Date, of the chief executive officer of the Company and the principal financial
or accounting officer of the Company in which such officers shall state that: the
representations and warranties of the Company in this Agreement are true and correct; the
Company has complied with all agreements and satisfied all conditions on its part to be
performed or satisfied hereunder at or prior to such Closing Date; no stop order suspending
the effectiveness of the Registration Statement has been issued and no proceedings for that
purpose have been instituted or, to the best of their knowledge, are contemplated by the
Commission; and, subsequent to the respective dates of the most recent financial statements
in the General Disclosure Package, there has been no material adverse change, nor any
development or event involving a prospective material adverse change, in the condition
(financial or otherwise), results of operations, business, properties or prospects of the
Company and its subsidiaries taken as a whole except as set forth in the General Disclosure
Package or as described in such certificate.
(h) Chief Financial Officer’s Certificate. The Representative shall have received a
certificate, dated the date hereof, and a bring-down certificate dated each Closing Date, of
the principal financial or accounting officer of the Company substantially in the form of
Schedule D hereto.
(i) Lock-Up Agreements. The “lock-up” agreements, each substantially in the form of
Exhibit A hereto, between the Representative, officers and directors of the Company set
forth on Schedule E hereto relating to sales and certain other dispositions of Securities or
certain other securities, delivered to the Representative on or before the date hereof,
shall be in full force and effect at each Closing Date.
The Company will furnish the Representative with such conformed copies of such opinions,
certificates, letters and documents as the Representative reasonably requests. The
Representative may in its sole discretion waive on behalf of the Underwriters compliance
with any conditions to the obligations of the Underwriters hereunder, whether in respect of
an Optional Closing Date or otherwise.
8. Indemnification and Contribution.
(a) Indemnification of Underwriters. The Company will indemnify and hold harmless each
Underwriter, its partners, members, directors, officers, employees, agents, affiliates and
each person, if any, who controls such Underwriter within the meaning of Section 15 of the
Act or Section 20 of the Exchange Act (each, an “Indemnified Party”), against any and all
losses, claims, damages or liabilities, joint or several, to which such Indemnified Party
may become subject, under the Act, the Exchange Act, other Federal or state statutory law or
regulation or otherwise, insofar as such losses, claims, damages or liabilities (or actions
in respect thereof) arise out of or are based upon (i) any untrue statement or alleged
untrue statement of any material fact contained in any part of the Registration Statement,
or the omission or alleged omission therefrom of a material fact required to be stated
therein or necessary to make the statements therein not misleading or (ii) any untrue
statement or alleged untrue statement of any material fact contained in any Statutory
Prospectus, Final Prospectus or any Issuer Free-Writing Prospectus or the omission or
alleged omission therefrom of a material fact necessary in order to make the statements
therein, in light of the circumstances under which they were made, not misleading, and will
reimburse each Indemnified Party for any legal or other expenses reasonably incurred by such
Indemnified Party in connection with investigating or defending against any loss, claim,
damage, liability, action, litigation, investigation or proceeding whatsoever (whether or
not such Indemnified Party is a party thereto), whether threatened or commenced, and in
connection with the enforcement of this provision with respect to any of the above as such
expenses are incurred; provided, however, that the Company will not be liable in any such
case to the extent that any such loss, claim, damage or liability arises out of or is based
upon an untrue statement or alleged untrue statement in or omission or alleged omission from
any of such documents in reliance upon and in conformity with written information furnished
to the Company by any Underwriter through the Representative specifically for use therein,
it being understood and agreed that the only such
14
information furnished by any Underwriter consists of the information described as such
in subsection (b) below.
(b) Indemnification of Company. Each Underwriter will severally and not jointly
indemnify and hold harmless the Company, each of its directors and each of its officers who
signs a Registration Statement and each person, if any, who controls the Company within the
meaning of Section 15 of the Act or Section 20 of the Exchange Act (each, an “Underwriter
Indemnified Party”), against any losses, claims, damages or liabilities to which such
Underwriter Indemnified Party may become subject, under the Act, the Exchange Act, other
Federal or state statutory law or regulation or otherwise, insofar as such losses, claims,
damages or liabilities (or actions in respect thereof) arise out of or are based upon (i)
any untrue statement or alleged untrue statement of any material fact contained in any part
of the Registration Statement, or the omission or the alleged omission therefrom of a
material fact required to be stated therein or necessary to make the statements therein not
misleading or (ii) any untrue statement or alleged untrue statement of any material fact
contained in any Statutory Prospectus, Final Prospectus or any Issuer Free-Writing
Prospectus or upon the omission or alleged omission therefrom of a material fact necessary
in order to make the statements therein, in light of the circumstances under which they were
made, not misleading, in each case to the extent, but only to the extent, that such untrue
statement or alleged untrue statement or omission or alleged omission was made in reliance
upon and in conformity with written information furnished to the Company by such Underwriter
through the Representative specifically for use therein, and will reimburse any legal or
other expenses reasonably incurred by such Underwriter Indemnified Party in connection with
investigating or defending against any such loss, claim, damage, liability, action,
litigation, investigation or proceeding whatsoever (whether or not such Underwriter
Indemnified Party is a party thereto), whether threatened or commenced, based upon any such
untrue statement or omission, or any such alleged untrue statement or omission as such
expenses are incurred, it being understood and agreed that the only such information
furnished by any Underwriter consists of the following information in the preliminary
prospectus, dated January 15, 2010, and the Final Prospectus furnished on behalf of each
Underwriter: the concession figure appearing in the fourth paragraph under the caption
“Underwriting” and the twelfth paragraph under the caption “Underwriting” to the extent
concerning stabilizing transactions.
(c) Actions Against Parties; Notification. Promptly after receipt by an indemnified
party under this Section of notice of the commencement of any action, such indemnified party
will, if a claim in respect thereof is to be made against the indemnifying party under
subsection (a) or (b) above, notify the indemnifying party of the commencement thereof; but
the failure to notify the indemnifying party shall not relieve it from any liability that it
may have under subsection (a) or (b) above except to the extent that it has been materially
prejudiced (through the forfeiture of substantive rights or defenses) by such failure; and
provided further that the failure to notify the indemnifying party shall not relieve it from
any liability that it may have to an indemnified party otherwise than under subsection (a)
or (b) above. In case any such action is brought against any indemnified party and it
notifies the indemnifying party of the commencement thereof, the indemnifying party will be
entitled to participate therein and, to the extent that it may wish, jointly with any other
indemnifying party similarly notified, to assume the defense thereof, with counsel
satisfactory to such indemnified party (who shall not, except with the consent of the
indemnified party, be counsel to the indemnifying party), and after notice from the
indemnifying party to such indemnified party of its election so to assume the defense
thereof, the indemnifying party will not be liable to such indemnified party under this
Section for any legal or other expenses subsequently incurred by such indemnified party in
connection with the defense thereof other than reasonable costs of investigation. No
indemnifying party shall, without the prior written consent of the indemnified party, effect
any settlement of any pending or threatened action in respect of which any indemnified party
is or could have been a party and indemnity could have been sought hereunder by such
indemnified party unless such settlement (i) includes an unconditional release of such
indemnified party from all liability on any claims that are the subject matter of such
action and (ii) does not include a statement as to, or an admission of, fault, culpability
or a failure to act by or on behalf of an indemnified party.
(d) Contribution. If the indemnification provided for in this Section is unavailable
or insufficient to hold harmless an indemnified party under subsection (a) or (b) above,
then each indemnifying party shall contribute to the amount paid or payable by such
indemnified party as a result of the losses, claims, damages or liabilities referred to in
subsection (a) or (b) above (i) in such proportion as
15
is appropriate to reflect the relative benefits received by the Company on the one hand
and the Underwriters on the other from the offering of the Offered Securities or (ii) if the
allocation provided by clause (i) above is not permitted by applicable law, in such
proportion as is appropriate to reflect not only the relative benefits referred to in clause
(i) above but also the relative fault of the Company on the one hand and the Underwriters on
the other in connection with the statements or omissions which resulted in such losses,
claims, damages or liabilities as well as any other relevant equitable considerations. The
relative benefits received by the Company on the one hand and the Underwriters on the other
shall be deemed to be in the same proportion as the total net proceeds from the offering
(before deducting expenses) received by the Company bear to the total underwriting discounts
and commissions received by the Underwriters. The relative fault shall be determined by
reference to, among other things, whether the untrue or alleged untrue statement of a
material fact or the omission or alleged omission to state a material fact relates to
information supplied by the Company or the Underwriters and the parties’ relative intent,
knowledge, access to information and opportunity to correct or prevent such untrue statement
or omission. The amount paid by an indemnified party as a result of the losses, claims,
damages or liabilities referred to in the first sentence of this subsection (d) shall be
deemed to include any legal or other expenses reasonably incurred by such indemnified party
in connection with investigating or defending any action or claim which is the subject of
this subsection (d). Notwithstanding the provisions of this subsection (d), no Underwriter
shall be required to contribute any amount in excess of the amount by which the total price
at which the Securities underwritten by it and distributed to the public were offered to the
public exceeds the amount of any damages which such Underwriter has otherwise been required
to pay by reason of such untrue or alleged untrue statement or omission or alleged omission.
No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of
the Act) shall be entitled to contribution from any person who was not guilty of such
fraudulent misrepresentation. The Underwriters’ obligations in this subsection (d) to
contribute are several in proportion to their respective underwriting obligations and not
joint. The Company and the Underwriters agree that it would not be just and equitable if
contribution pursuant to this Section 8(d) were determined by pro rata allocation (even if
the Underwriters were treated as one entity for such purpose) or by any other method of
allocation which does not take account of the equitable considerations referred to in this
Section 8(d).
9. Default of Underwriters. If any Underwriter or Underwriters default in their obligations
to purchase Offered Securities hereunder on either the First or any Optional Closing Date and the
aggregate number of shares of Offered Securities that such defaulting Underwriter or Underwriters
agreed but failed to purchase does not exceed 10% of the total number of shares of Offered
Securities that the Underwriters are obligated to purchase on such Closing Date, the Representative
may make arrangements satisfactory to the Company for the purchase of such Offered Securities by
other persons, including any of the Underwriters, but if no such arrangements are made by such
Closing Date, the non-defaulting Underwriters shall be obligated severally, in proportion to their
respective commitments hereunder, to purchase the Offered Securities that such defaulting
Underwriters agreed but failed to purchase on such Closing Date. If any Underwriter or Underwriters
so default and the aggregate number of shares of Offered Securities with respect to which such
default or defaults occur exceeds 10% of the total number of shares of Offered Securities that the
Underwriters are obligated to purchase on such Closing Date and arrangements satisfactory to the
Representative and the Company for the purchase of such Offered Securities by other persons are not
made within 36 hours after such default, this Agreement will terminate without liability on the
part of any non-defaulting Underwriter or the Company, except as provided in Section 10 (provided
that if such default occurs with respect to Optional Securities after the First Closing Date, this
Agreement will not terminate as to the Firm Securities or any Optional Securities purchased prior
to such termination). As used in this Agreement, the term “Underwriter” includes any person
substituted for an Underwriter under this Section. Nothing herein will relieve a defaulting
Underwriter from liability for its default.
10. Survival of Certain Representations and Obligations. The respective indemnities,
agreements, representations, warranties and other statements of the Company or its officers and of
the several Underwriters set forth in or made pursuant to this Agreement will remain in full force
and effect, regardless of any investigation, or statement as to the results thereof, made by or on
behalf of any Underwriter, the Company or any of their respective representatives, officers or
directors or any controlling person, and will survive delivery of, and payment for, the Offered
Securities. If the purchase of the Offered Securities by the Underwriters is not consummated for
any reason other than solely because of the termination of this Agreement pursuant to Section 9
hereof, the Company will reimburse the Underwriters for all out-of-pocket expenses (including fees
and disbursements of counsel) reasonably
16
incurred by them in connection with the offering of the Offered Securities, and the respective
obligations of the Company and the Underwriters pursuant to Section 8 hereof shall remain in
effect. In addition, if any Offered Securities have been purchased hereunder, the representations
and warranties in Section 2 and all obligations under Section 5 shall also remain in effect.
11. Notices. All communications hereunder will be in writing and, if sent to the Underwriters,
will be mailed, delivered or faxed and confirmed to the Representative c/o Credit Suisse Securities
(USA) LLC, Eleven Madison Avenue, New York, N.Y. 10010-3629, Attention: LCD-IBD, or, if sent to
the Company, will be mailed, delivered or faxed and confirmed to it at Associated Banc-Corp, ▇▇▇▇
▇▇▇▇▇▇ ▇▇▇▇, ▇▇▇▇▇ ▇▇▇, ▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇, Attention: General Counsel, with a copy to ▇▇▇▇▇▇ ▇▇▇▇▇▇
Rosenman LLP, ▇▇▇ ▇▇▇▇ ▇▇▇▇▇▇ ▇▇▇▇▇▇, ▇▇▇▇▇ ▇▇▇▇, ▇▇▇▇▇▇▇, ▇▇▇▇▇▇▇▇ ▇▇▇▇▇, Attention: ▇▇▇▇▇▇ ▇.
Wild; provided, however, that any notice to an Underwriter pursuant to Section 8 will be mailed,
delivered or faxed and confirmed to such Underwriter.
12. Successors. This Agreement will inure to the benefit of and be binding upon the parties
hereto and their respective successors and the officers and directors and controlling persons
referred to in Section 8, and no other person will have any right or obligation hereunder.
13. Representation of Underwriters. The Representative will act for the several Underwriters
in connection with this financing, and any action under this Agreement taken by the Representative
will be binding upon all the Underwriters.
14. Counterparts. This Agreement may be executed by facsimile or other electronic signatures
in any number of counterparts, each of which shall be deemed to be an original, but all such
counterparts shall together constitute one and the same Agreement.
15. Absence of Fiduciary Relationship. The Company acknowledges and agrees that:
(a) No Other Relationship. The Representative has been retained solely to act as
underwriters in connection with the sale of Offered Securities and that no fiduciary,
advisory or agency relationship between the Company and the Representative has been created
in respect of any of the transactions contemplated by this Agreement or the Final
Prospectus, irrespective of whether the Representative has advised or is advising the
Company on other matters;
(b) Arms’ Length Negotiations. The price of the Offered Securities set forth in this
Agreement was established by the Company following discussions and arms-length negotiations
with the Representative and the Company is capable of evaluating and understanding and
understands and accepts the terms, risks and conditions of the transactions contemplated by
this Agreement;
(c) Absence of Obligation to Disclose. The Company has been advised that the
Representative has and its affiliates are engaged in a broad range of transactions which may
involve interests that differ from those of the Company and that the Representative has no
obligation to disclose such interests and transactions to the Company by virtue of any
fiduciary, advisory or agency relationship; and
(d) Waiver. The Company waives, to the fullest extent permitted by law, any claims it
may have against the Representative for breach of fiduciary duty or alleged breach of
fiduciary duty and agrees that the Representative shall have no liability (whether direct or
indirect) to the Company in respect of such a fiduciary duty claim or to any person
asserting a fiduciary duty claim on behalf of or in right of the Company, including
stockholders, employees or creditors of the Company.
16. Applicable Law. This Agreement shall be governed by, and construed in accordance with,
the laws of the State of New York.
The Company hereby submits to the non-exclusive jurisdiction of the Federal and state courts
in the Borough of Manhattan in The City of New York in any suit or proceeding arising out of or
relating to this
17
Agreement or the transactions contemplated hereby. The Company irrevocably and
unconditionally waives any objection to the laying of venue of any suit or proceeding arising out
of or relating to this Agreement or the transactions contemplated hereby in Federal and state
courts in the Borough of Manhattan in The City of New York and irrevocably and unconditionally
waives and agrees not to plead or claim in any such court that any such suit or proceeding in any
such court has been brought in an inconvenient forum.
18
If the foregoing is in accordance with the Representative’s understanding of our agreement,
kindly sign and return to the Company one of the counterparts hereof, whereupon it will become a
binding agreement between the Company and the several Underwriters in accordance with its terms.
Very truly yours,
| Associated Banc-Corp |
||||
| By: | /s/ ▇▇▇▇▇▇ ▇. ▇▇▇▇▇ | |||
| Name: | ▇▇▇▇▇▇ ▇. ▇▇▇▇▇ | |||
| Title: | President and Chief Executive Officer | |||
The foregoing Underwriting Agreement is hereby
confirmed and accepted as of the date first
above written.
confirmed and accepted as of the date first
above written.
| Credit Suisse Securities (USA) LLC |
||||
| By: | /s/ ▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇ | |||
| Name: | ▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇ | |||
| Title: | Managing Director | |||
Acting on behalf of itself and as the Representative
of the several Underwriters
of the several Underwriters
19
SCHEDULE A
| Number of | ||||
| Underwriter | Firm Securities | |||
Credit Suisse Securities (USA) LLC |
25,346,074 | |||
▇▇▇▇▇▇ ▇. ▇▇▇▇▇ & Co. Incorporated |
2,274,647 | |||
Citigroup
Global Markets Inc. |
2,274,647 | |||
▇▇▇▇▇,
▇▇▇▇▇▇▇▇ & ▇▇▇▇▇, Inc. |
2,274,647 | |||
RBC Capital Markets Corporation |
2,274,647 | |||
Sandler ▇’▇▇▇▇▇ & Partners, L.P. |
2,274,647 | |||
UBS Securities LLC |
2,274,647 | |||
Total |
38,993,956 | |||
SCHEDULE B
1. General Use Free Writing Prospectuses (included in the General Disclosure Package)
“General Use Issuer Free Writing Prospectus” includes each of the following documents:
1. Issuer Free Writing Prospectus filed with the Commission on January 11, 2010 (entitled
“Associated Banc-Corp Investor Presentation”)
2. Issuer Free Writing Prospectus submitted for filing with and accepted by the Commission
on January 11, 2010 and appearing on ▇▇▇▇▇ with a filing date of January 12, 2010
2. Other Information Included in the General Disclosure Package
The following information is also included in the General Disclosure Package:
1. The initial price to the public of the Offered Securities: $11.15
2. Number of Firm Securities: 38,993,956
3. Number of Optional Securities: 5,849,093
SCHEDULE C
The Representative has shall have received letters, dated, respectively, the date hereof and
the First Closing Date confirming that they are a registered public accounting firm and independent
public accountants within the meaning of the Securities Laws to the effect that:
[TO BE ATTACHED]
SCHEDULE
D
CFO
Certificate
[TO BE ATTACHED]
SCHEDULE E
▇▇▇▇▇▇ ▇. ▇▇▇▇▇, President, Chief Executive Officer and Director
▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇, Executive Vice President, Chief Administrative Officer, General Counsel and
Corporate Secretary
▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇, Executive Vice President, Director of Human Resources
▇▇▇▇▇ ▇. ▇▇▇▇▇▇, Executive Vice President and Chief Credit Officer
▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇, Executive Vice President, Director of Wealth Management
▇▇▇▇▇▇ ▇. ▇▇▇▇▇ III, Executive Vice President, General Auditor
▇▇▇▇ ▇. ▇▇▇▇▇▇▇, Executive Vice President, Chief Information Officer, Director of Operations and
Technology
▇▇▇▇ ▇. ▇▇▇▇▇▇, Executive Vice President, Commercial Banking
▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇, Executive Vice President and Chief Financial Officer
▇▇▇▇▇ ▇. ▇▇▇▇▇, Executive Vice President, Director of Retail Banking
▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇▇▇, Chairman of the Board
▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇, Director
▇▇▇▇ ▇. ▇▇▇▇▇▇▇, Director
▇▇▇▇▇▇ ▇▇▇▇▇▇▇ ▇▇▇▇▇▇, Director
▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇, Director
▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇, Director
▇▇▇▇ ▇▇▇▇▇▇▇ ▇▇▇▇, Director
▇. ▇▇▇▇▇▇▇ Quick, Director
▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇, Director
▇▇▇▇ ▇. ▇▇▇▇▇▇▇, Director
EXHIBIT A
January 11, 2010
Credit Suisse Securities (USA) LLC
As Representative of the several Underwriters named in the Underwriting Agreement
Eleven ▇▇▇▇▇▇▇ ▇▇▇▇▇▇
▇▇▇ ▇▇▇▇, ▇▇ ▇▇▇▇▇-▇▇▇▇
As Representative of the several Underwriters named in the Underwriting Agreement
Eleven ▇▇▇▇▇▇▇ ▇▇▇▇▇▇
▇▇▇ ▇▇▇▇, ▇▇ ▇▇▇▇▇-▇▇▇▇
Dear Sirs:
As an inducement to the Underwriters to execute the Underwriting Agreement , pursuant to which
an offering will be made that is intended to result in an orderly market for the common stock (the
"Securities”) of Associated Banc-Corp and any successor (by merger or otherwise) thereto (the
"Company”), the undersigned hereby agrees that during the period specified in the following
paragraph (the “Lock-Up Period”), the undersigned will not offer, sell, contract to sell, pledge or
otherwise dispose of, directly or indirectly, any Securities or securities convertible into or
exchangeable or exercisable for any Securities, enter into a transaction which would have the same
effect, or enter into any swap, hedge or other arrangement that transfers, in whole or in part, any
of the economic consequences of ownership of the Securities, whether any such aforementioned
transaction is to be settled by delivery of the Securities or such other securities, in cash or
otherwise, or publicly disclose the intention to make any such offer, sale, pledge or disposition,
or to enter into any such transaction, swap, hedge or other arrangement, without, in each case, the
prior written consent of Credit Suisse Securities (USA) LLC (“Credit Suisse”). In addition, the
undersigned agrees that, without the prior written consent of Credit Suisse, it will not, during
the Lock-Up Period, make any demand for or exercise any right with respect to, the registration of
any Securities or any security convertible into or exercisable or exchangeable for the Securities.
The Lock-Up Period will commence on the date of this Lock-Up Agreement and continue and
include the date 90 days after the public offering date set forth on the final prospectus used to
sell the Securities (the “Public Offering Date”) pursuant to the Underwriting Agreement governing
the terms of the offering.
Any Securities received upon exercise of options granted to the undersigned will also be
subject to this Lock-Up Agreement. Any Securities acquired by the undersigned in the open market
will not be subject to this Lock-Up Agreement. Notwithstanding the foregoing, the undersigned may
transfer its Securities (i) as a bona fide gift, provided that the donee or donees thereof
agree to be bound in writing by the restrictions set forth herein, (ii) to any trust for the direct
or indirect benefit of the undersigned or the immediate family of the undersigned, provided
that the trustee of the trust agrees to be bound in writing by the restrictions set forth herein,
(iii) to any corporation, limited liability company, limited partnership or general partnership of
which all of the equity interest is owned by the undersigned, or the immediate family of the
undersigned and/or one or more trusts described in clause (ii) above, provided that the
transferee agrees to be bound in writing by the restrictions set forth herein prior to such
transfer, and provided further that, in the case of (i), (ii) or (iii), any such transfer
shall not involve a disposition for value and no filing by any party (donor, donee, transferor or
transferee) under the Securities Exchange Act of 1934 (the “Exchange Act”) shall be required or
shall be voluntarily made in connection with such transfer (other than a filing on a Form 5 made
after the expiration of the Lock-Up Period), (iv) if the transfer of the undersigned’s Securities
occurs by operation of law upon the death of the undersigned, such as rules of intestate
succession, or (v) for payment of taxes required to be paid upon the vesting of restricted
Securities issued pursuant to the Company’s equity incentive plan described in the preliminary
prospectus and final prospectus used to sell Securities pursuant to the Underwriting Agreement,
provided that the total number of shares of Securities withheld or transferred for the
payment of taxes to be paid upon the vesting of such restricted Securities during the Lock-Up
Period shall not exceed 50,000 shares for all officers and directors of the
A-1
Company (including the undersigned) subject to this Lock-Up Agreement or a lock-up agreement
substantially similar to this Lock-Up Agreement, and provided further that the undersigned
or the Company shall notify Credit Suisse at least one business day prior to the filing of any Form
4 in connection with a transfer pursuant to this clause (v). For purposes of this Lock-Up
Agreement, “immediate family” shall mean any relationships by blood, marriage or adoption, not more
remote than first cousin.
In furtherance of the foregoing, the Company and its transfer agent and registrar are hereby
authorized to decline to make any transfer of shares of Securities if such transfer would
constitute a violation or breach of this Lock-Up Agreement.
This Lock-Up Agreement shall be binding on the undersigned and the successors, heirs, personal
representatives and assigns of the undersigned. This Lock-Up Agreement shall lapse and become null
and void at the earliest of (i) the time the Company notifies you in writing that it does not
intend to proceed with the offering contemplated by the Underwriting Agreement, (ii) the
Underwriting Agreement is terminated for any reason prior to the sale of the Securities to the
Underwriters and (iii) the Public Offering Date shall not have occurred on or before February 28,
2010. This Lock-Up Agreement shall be governed by, and construed in accordance with, the laws of
the State of New York.
| Very truly yours, |
||||
| [Name of stockholder] | ||||
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