Company: OSBC
Filing Date: 2025-04-23
Form Type: S-4
Source: 0001104659-25-037832
Chunk: 63

Company: OLD SECOND BANCORP INC
Filing Date: 2025-04-23
Form: S-4
Chunk 63
---
, Old Second continued its detailed due diligence review of the financial condition and operations of Bancorp Financial and Evergreen Bank Group, Bancorp Financial’s and Evergreen Bank Group’s material agreements and other information concerning Bancorp Financial and Evergreen Bank Group. In addition, Bancorp Financial continued its due diligence review of Old Second’s operations, including reviewing reports and other materials filed by Old Second with the SEC. The management team of Bancorp Financial also continued to engage in discussions and negotiation with Old Second’s management team regarding the proposed terms of the transaction.

On January 17, 2025, Old Second’s counsel, Nelson Mullins, provided Vedder Price with an initial draft of the definitive merger agreement. Over the course of the following weeks, the parties and their respective legal advisors negotiated the principal terms of the merger agreement. In particular the parties worked through due diligence issues requiring resolution prior to execution of a definitive agreement, discussed the treatment of Bancorp Financial’s equity-based compensation awards and related benefit plans, and negotiated the terms of representations and warranties for both sides, covenants for both sides and termination rights and fees. In addition, each party prepared drafts of disclosure schedules listing certain supplemental information and exceptions to the representations and warranties contained in the merger agreement. While negotiating the definitive merger agreement, the parties and their representatives continued to conduct ongoing, reciprocal comprehensive due diligence regarding the business, operations and markets of the other party.

During this time, Bancorp Financial and Old Second continued to negotiate the terms of the transaction, including the treatment of Bancorp Financial’s outstanding restricted stock units. In particular, the parties agreed that the restricted stock units would be converted into the right to receive the merger consideration rather than being cashed out or assumed by Old Second. In addition, Old Second and Darin Campbell negotiated the terms of Mr. Campbell’s proposed employment agreement with Old Second regarding Mr. Campbell’s post-closing employment with Old Second.

At the January 29, 2025 meeting of Bancorp Financial’s board of directors, Bancorp Financial’s management team provided the board with an update on the proposed terms of the transaction and current status of the negotiation of the transaction. After discussing the proposed terms of the transaction, the board requested that the management team continue to negotiate the terms of the proposed transaction.

Throughout early to mid-February 2025, the parties continued to work through open due diligence issues and negotiated the remaining open terms of the merger agreement and ancillary agreements, such as the voting agreement to be entered into by certain stockholders of Banc