Company: ASB
Filing Date: 2025-03-17
Form Type: DEF 14A
Source: 0000007789-25-000025
Chunk: 37

Company: ASSOCIATED BANC-CORP
Filing Date: 2025-03-17
Form: DEF 14A
Chunk 37
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 However, the transfer of Common Stock to an option holder upon exercise of their options may or

may not give rise to taxable income to the option holder and tax deductions for Associated, depending upon whether the options

are “incentive stock options” or “non-qualified options.”

The exercise of a non-qualified option by an option holder generally results in immediate recognition of taxable ordinary

income by the option holder and a corresponding tax deduction for Associated in the amount by which the fair market value of

the shares of Common Stock purchased, on the date of such exercise, exceeds the aggregate exercise price paid. Any

appreciation or depreciation in the fair market value of those shares after the date of such exercise will generally result in a

capital gain or loss to the holder at the time he or she disposes of those shares.

In general, the exercise of an incentive stock option is exempt from income tax (although not from the alternative minimum tax)

and does not result in a tax deduction for Associated if the holder has been an employee of ours at all times beginning with the

option grant date and ending three months before the date the holder exercises the option (or 12 months in the case of

termination of employment due to disability). If the holder has not been so employed during that time, the holder will be taxed

as described above for non-qualified stock options. If the option holder disposes of the shares purchased more than two years

after the incentive stock option was granted and more than one year after the option was exercised, then the option holder will

recognize any gain or loss upon disposition of those shares as capital gain or loss. However, if the option holder disposes of the

shares prior to satisfying these holding periods (known as “disqualifying dispositions”), the option holder will be obligated to

report as taxable ordinary income for the year in which that disposition occurs the excess, with certain adjustments, of the fair

market value of the shares disposed of, on the date the incentive stock option was exercised, over the exercise price paid for

those shares. Associated would be entitled to a tax deduction equal to that amount of ordinary income reported by the option

holder. Any additional gain realized by the option holder on the disqualifying disposition of the shares would be capital gain. If

the total amount realized in a disqualifying disposition is less than the exercise price of the incentive stock option, the difference

would be a capital loss for the option holder.

SARs

The granting of SARs