Document:

exv10w1

Exhibit 10.1

United States Department of the Treasury

1500 Pennsylvania Avenue, NW

Washington, D.C. 20220

December 22, 2010

Ladies and Gentlemen:

     Reference is made to that certain Letter Agreement incorporating the Securities Purchase
Agreement — Standard Terms (the “Securities Purchase Agreement”), dated as of the date set forth
on Schedule A hereto, between the United States Department of the Treasury (the “Investor”) and the
company set forth on Schedule A hereto (the “Company”). Capitalized terms used but not defined
herein shall have the meanings assigned to them in the Securities Purchase Agreement. Pursuant to
the Securities Purchase Agreement, at the Closing, the Company issued to the Investor the number of
shares of the series of its preferred stock set forth on Schedule A hereto (the “Preferred Shares”)
and a warrant to purchase the number of shares of its common stock set forth on Schedule A hereto
(the “Warrant”).

     In connection with the consummation of the repurchase (the “Repurchase”) by the Company from
the Investor, on the date hereof, of the number of Preferred Shares listed on Schedule A hereto
(the “Repurchased Preferred Shares”), as permitted by the Emergency Economic Stabilization Act of
2008, as amended by the American Recovery and Reinvestment Act of 2009:

     (a) The Company hereby acknowledges receipt from the Investor of the share
certificate(s) set forth on Schedule A hereto representing the Preferred Shares; and

     (b) The Investor hereby acknowledges receipt from the Company of a wire transfer to the
account of the Investor set forth on Schedule A hereto in immediately available funds of the
aggregate purchase price set forth on Schedule A hereto, representing payment in full for
the Repurchased Preferred Shares at a price per share equal to the Liquidation Amount per
share, together with any accrued and unpaid dividends to, but excluding, the date hereof;

     The Investor and the Company hereby agree that, notwithstanding Section 4.4 of the Securities
Purchase Agreement, immediately following consummation of the Repurchase, but subject to compliance
with applicable securities laws, the Investor shall be permitted to Transfer all or a portion of
the Warrant with respect to, and/or exercise the Warrant for, all or a portion of the number of
shares of Common Stock issuable thereunder, at any time and without limitation, and Section 4.4 of
the Securities Purchase Agreement shall be deemed to be amended in order to permit the foregoing.
The Company shall take all steps as may be reasonably requested by the Investor to facilitate any
such Transfer.

 

 

     In addition, the Company agrees that in the event it elects to repurchase the Warrant, it
shall deliver to the Investor within 15 calendar days of the date hereof a notice of intent to
repurchase the Warrant, which notice shall be in accordance with Section 4.9(b) of the Securities
Purchase Agreement (the “Warrant Repurchase Notice”). In the event the Company does not deliver
the Warrant Repurchase Notice to the Investor within 15 calendar days of the date hereof, the
Investor hereby provides notice, pursuant to Section 4.5(p) of the Securities Purchase Agreement,
of its intention to sell the Warrant, such notice to be effective as of the first day following the
end of such 15-day period.

     In the event that the Company delivers a Warrant Repurchase Notice and the Company and the
Investor fail to agree on the Fair Market Value of the Warrant pursuant to the procedures
(including the Appraisal Procedure), and in accordance with the time periods, set forth in Section
4.9(c) of the Securities Purchase Agreement or the Company revokes the delivery of such Warrant
Repurchase Notice, then the Investor hereby provides notice of its intention to sell the Warrant.

     This letter agreement will be governed by and construed in accordance with the federal law of
the United States if and to the extent such law is applicable, and otherwise in accordance with the
laws of the State of New York applicable to contracts made and to be performed entirely within such
State.

     This letter agreement may be executed in any number of separate counterparts, each such
counterpart being deemed to be an original instrument, and all such counterparts will together
constitute the same agreement. Executed signature pages to this letter agreement may be delivered
by facsimile and such facsimiles will be deemed sufficient as if actual signature pages had been
delivered.

[Remainder of this page intentionally left blank]

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          In witness whereof, the parties have duly executed this letter agreement as of the date first
written above.

	 	 	 	 	 
	 	UNITED STATES DEPARTMENT OF THE TREASURY

 	 
	 	By:  	/s/ Timothy G. Massad
 	 
	 	 	Name:  	Timothy G. Massad 	 
	 	 	Title:  	Acting Assistant Secretary for Financial Stability 	 
	 
	 	COMPANY:
WINTRUST FINANCIAL CORPORATION

 	 
	 	By:  	/s/ David A. Dykstra
 	 
	 	 	Name:  	David A. Dykstra 	 
	 	 	Title:  	Senior Executive Vice President 	 

 

 

	 	 	 	 	 

SCHEDULE A

	 	 	 

	General Information:
	 	 
	Date of Letter Agreement incorporating the
Securities Purchase Agreement:

	 	December 19, 2008
	Name of the Company:

	 	Wintrust Financial Corporation
	Corporate or other organizational form of the
Company:

	 	Corporation
	Jurisdiction of organization of the Company:

	 	Illinois
	Number and series of preferred stock issued to
the Investor at the Closing:

	 	250,000 shares of Fixed Rate
Cumulative
 Perpetual Preferred
Stock, Series B
	Number of Initial Warrant Shares:

	 	1,643,295
	 
	 	 
	Terms of the Repurchase:
	 	 
	Number of Preferred Shares repurchased by the
Company:

	 	250,000
	Share certificate number (representing the
Preferred Shares previously issued to the
Investor at the Closing):

	 	FRCPPB01
	Per share Liquidation Amount of Preferred Shares:

	 	$1,000
	Accrued and unpaid dividends on Preferred Shares:

	 	$1,284,722.22
	Aggregate purchase price for Repurchased
Preferred Shares:

	 	$251,284,722.22
	 
	 	 
	Investor wire information for payment of purchase
price:

	 	ABA Number: 021000018

Bank: The Bank of New York Mellon

Account Name: BETA EESA
Preferred Account

Account Number: GLA/111567exv10w1

Exhibit 10.1

STANDBY PURCHASER AGREEMENT

December ____, 2010

     
 

 

 

Dear ______________:

     This letter confirms our agreement with respect to the intention of Farmers National Banc
Corp., an Ohio corporation (the “Company”), to raise additional capital through a rights offering,
with oversubscription privileges, of up to 5,000,000 (the “Underlying Shares”) of the Company’s
common shares, no par value per share (the “Common Shares”), to its shareholders of record as of
October 25, 2010 (“Rights Offering”) with the participation of standby purchasers for any
unsubscribed shares in the Rights Offering (The Rights Offering and the offering to standby
purchasers are hereinafter referred to as the “Offering”). Capitalized terms used herein and not
defined herein shall have the meanings set forth in the Prospectus (as hereinafter defined).

     A REGISTRATION STATEMENT ON FORM S-1 (THE “REGISTRATION STATEMENT”) RELATING TO THE COMPANY’S
COMMON SHARES WAS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION (“SEC”) ON MAY 28, 2010. NO
OFFER TO BUY SECURITIES CAN BE ACCEPTED AND NO PART OF THE PURCHASE PRICE CAN BE RECEIVED UNTIL THE
REGISTRATION STATEMENT HAS BECOME EFFECTIVE, AND ANY SUCH OFFER MAY BE WITHDRAWN OR REVOKED,
WITHOUT OBLIGATION OR COMMITMENT OF ANY KIND, AT ANY TIME PRIOR TO NOTICE OF ITS ACCEPTANCE GIVEN
AFTER THE EFFECTIVE DATE.

1. Purchase and Sale of Unsubscribed Shares.

     (a) Subject to the terms and conditions and in reliance upon the representations and
warranties herein set forth, the Company agrees to issue and sell to you as a standby purchaser
(the “Standby Purchaser”), and the Standby Purchaser agrees to purchase from the Company, at the
$3.00 subscription price set forth in the Prospectus (the “Subscription Price”)                 
                 
Common
Shares (the “Standby Shares”) which remain available for issuance in accordance with the Rights
Offering after the issuance of all Common Shares validly subscribed for through the exercise of
rights (the “Rights”), including the exercise of all oversubscription privileges, in the Rights
Offering (such remaining shares being hereinafter referred to as the “Unsubscribed Shares”).

     (b) The Standby Purchaser and the Company acknowledge and agree that the Company has entered
into, or contemplates entering into, one or more other Standby Purchase
Agreements with certain other parties (collectively, the “Standby Purchasers”) on terms
substantially similar to this Agreement, except that they may provide for the purchase of a
different number of Standby Shares in Section 1(a).

2. Limitations on Issuance of Standby Shares.

 

 

     The Standby Purchaser hereby acknowledges and agrees that the Company may decline to issue
Common Shares to the Standby Purchaser hereunder if, in the opinion of the Company, the Standby
Purchaser is required to obtain prior clearance or approval of such purchase from any state or
federal bank regulatory authority and if such approval or clearance has not been obtained or if
satisfactory evidence thereof has not been presented to the Company prior to the expiration of the
Offering.

3. The Closing.

     The delivery of and payment for the Standby Shares shall take place at the offices of Vorys,
Sater, Seymour and Pease LLP, at 10:00 a.m., Eastern time, immediately after the closing of the
sale of Common Shares pursuant to the Rights Offering, such time and date to be not more than five
(5) business days after the foregoing notification and to be specified therein (such time and date
being referred to as the “Closing Time,” the date of the Closing Time being referred to as the
“Closing Date” and the consummation of the transaction being referred to as the “Closing”).

4. Delivery of Standby Shares.

     At the Closing, the Standby Shares to be purchased by the Standby Purchaser hereunder,
registered in the name of the Standby Purchaser or its nominee(s), as the Standby Purchaser may
specify in writing at least three (3) days prior to the Closing Date, shall be delivered by or on
behalf of the Company to the Standby Purchaser, for the Standby Purchaser’s account, against
delivery by the Standby Purchaser of the Subscription Price therefor in immediately available funds
in the form of one or more federal funds checks or a wire transfer to an account designated by the
Company.

5. Representations and Warranties.

     The Company and the Standby Purchaser hereby confirm their agreement as follows:

     (a) The Company represents and warrants to, and covenants with, the Standby Purchaser as
follows:

          (i) The Company has filed a Registration Statement on Form S-1 with the SEC and all amendments
thereto. Such Registration Statement as amended at the time it becomes effective (the “Effective
Date”), including all exhibits, is herein called the “Registration Statement.” The prospectus filed
with the SEC pursuant to the Securities Act of 1933, as amended (the “Securities Act”), and the
regulations promulgated thereunder (“Regulations”), and which constitutes a part of the
Registration Statement, is herein called the “Prospectus.”

          (ii) The Underlying Shares and the Standby Shares have been duly authorized
by the Company, and when issued and delivered by the Company against payment therefor, will be
duly and validly issued, fully paid and non-assessable. The Rights have been duly authorized by the
Company, and when issued and delivered by the Company, will constitute valid and legally binding
obligations of the Company, subject to bankruptcy, insolvency, fraudulent transfer, reorganization,
moratorium and similar laws of general applicability relating to or affecting creditors’ rights and
to general equity principles.

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          (iii) The Company has been duly incorporated and is validly existing as a corporation in good
standing under the laws of the State of Ohio, with corporate power and authority to perform its
obligations under this Agreement.

          (iv) The execution, delivery and performance of this Agreement by the Company and the
consummation by the Company of the transactions contemplated hereby have been duly authorized by
all necessary corporate action of the Company, and this Agreement, when duly executed and delivered
by the Standby Purchaser, will constitute a valid and legally binding agreement of the Company
enforceable in accordance with its terms, except as may be limited by bankruptcy, insolvency,
fraudulent transfer, reorganization, moratorium and similar laws of general applicability relating
to or affecting creditors’ rights and to general equity principles.

          (v) On the Closing Date and at the time when the Registration Statement was first filed with
the SEC pursuant to the Securities Act and the Regulations, the Registration Statement and the
Prospectus complied and will comply in all material respects with the requirements of the
Securities Act and the Regulations and on the Closing Date, neither the Registration Statement nor
the Prospectus will contain an untrue statement of a material fact or omit to state a material fact
required to be stated therein or necessary to make the statements therein, in the light of the
circumstances under which they were made, not misleading; except that the foregoing does not apply
to statements or omissions in the Registration Statement or the Prospectus made in reliance upon
and in conformity with information furnished by the Standby Purchaser to the Company expressly for
use therein.

          (vi) Neither the Company nor any of its direct or indirect subsidiaries (“Subsidiaries”) is in
violation of its articles of incorporation, articles of organization, code of regulations or
operating agreement, or in default under any agreement, indenture or instrument to which the
Company or any of its Subsidiaries is a party, the effect of which violation or default would be
material to the business, properties, financial condition or results of operations of the Company
and its Subsidiaries, taken as a whole, and the execution, delivery and performance of this
Agreement by the Company and the consummation of the transactions contemplated hereby will not
conflict with, or constitute a breach of, or default under, or result in the creation or imposition
of any lien, charge or encumbrance upon any of the assets of the Company or its Subsidiaries
pursuant to the terms of any agreement, indenture or instrument to which the Company or any of its
Subsidiaries is a party, or result in a violation of the certificate of incorporation, articles of
association, certificate of trust or code of regulations of the Company or any of its Subsidiaries
or any order, rule or regulation of any court or governmental agency having jurisdiction over the
Company, any of its Subsidiaries or any of their property; and, except as required by the
Regulations, the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and applicable
state securities law, no consent, authorization or order of, or
filing or registration with, any court or governmental agency is required for the execution,
delivery and performance of this Agreement.

     (b) The Standby Purchaser represents and warrants to, and covenants with, the Company as
follows:

          (i) (A) If the Standby Purchaser is an individual, he or she has full power

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and authority to perform his or her obligations under this Agreement.

               (B) If the Standby Purchaser is a corporation, the Standby Purchaser is a corporation duly
incorporated, validly existing and in good standing under the laws of its jurisdiction of
incorporation, with corporate power and authority to perform its obligations under this Agreement.

               (C) If the Standby Purchaser is a trust, the Trustee has been duly appointed as trustee of the
Standby Purchaser with full power and authority to act on behalf of the Standby Purchaser and to
perform the obligations of the Standby Purchaser under this Agreement.

               (D) If the Standby Purchaser is a partnership or limited liability company, the Standby
Purchaser is a partnership or limited liability company duly organized, validly existing and in
good standing under the laws of its jurisdiction of incorporation or organization, with full power
and authority to perform its obligations under this Agreement.

          (ii) The Standby Purchaser has received from the Company and has reviewed carefully a copy of
the Prospectus as well as the public documents filed in connection therewith through the date
hereof, and except as set forth in this Agreement and in the Prospectus, the Standby Purchaser is
not relying on any information other than information contained in this Agreement or the
Prospectus.

          (iii) The Standby Purchaser is acquiring the Common Shares pursuant to this Agreement for its
own account for investment only and not with a view to any resale, distribution or other
disposition thereof.

          (iv) The execution, delivery and performance of this Agreement by the Standby Purchaser and
the consummation by the Standby Purchaser of the transactions contemplated hereby have been duly
authorized by all necessary action of the Standby Purchaser; and this Agreement, when duly executed
and delivered by the Standby Purchaser, will constitute a valid and legally binding instrument,
enforceable in accordance with its terms, subject to bankruptcy, insolvency, fraudulent transfer,
reorganization, moratorium and similar laws of general applicability relating to or affecting
creditors’ fights and to general equity principles.

          (v) The Standby Purchaser is not insolvent and has sufficient cash funds on hand to purchase
the Standby Shares on the terms and conditions contained in this Agreement and will have such funds
on the Closing Date. The Standby Purchaser has simultaneously with the execution and delivery of
this Agreement or prior thereto provided the Company with evidence or substantiated that such
Standby Purchaser has the financial means to satisfy its financial obligations under this Agreement
and the foregoing evidence and substantiation is a
true and accurate representation of such means.

          (vi) No state, federal or foreign regulatory approvals, permits, licenses or consents or other
contractual or legal obligations are required with respect to the Standby Purchaser in order for
the Standby Purchaser to enter into this Agreement or purchase the Standby Shares.

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          (vii) The execution and delivery of this Agreement, the consummation by the Standby Purchaser
of the transactions herein contemplated and the compliance by the Standby Purchaser with the terms
hereof do not and will not conflict with, or result in a breach or violation of any of the terms or
provisions of, or constitute a default under, any indenture, mortgage, deed of trust, loan
agreement or other agreement or instrument to which the Standby Purchaser is a party or by which
any of the Standby Purchaser’s properties or assets are bound, or any applicable law, rule,
regulation, judgment, order or decree of any government, governmental instrumentality or court,
domestic or foreign, having jurisdiction over the Standby Purchaser or any of the Standby
Purchaser’s properties or assets; and no consent, approval, authorization, order, registration or
qualification of or with any such government, governmental instrumentality or court, domestic or
foreign, is required for the valid authorization, execution, delivery and performance by the
Standby Purchaser of this Agreement or the consummation by the Standby Purchaser of the
transactions contemplated by this Agreement that will not have been obtained prior to the Closing.

          (viii) The Standby Purchaser has not entered into any contracts, arrangements, understandings
or relationships (legal or otherwise) with any other person or persons with respect to the
transactions contemplated by this Agreement or any securities of the Company, including but not
limited to transfer or voting of any of the securities, finder’s fees, joint ventures, loan or
option arrangements, puts or calls, guarantees of profits, division of profits or loss, or the
giving or withholding of proxies; and the Standby Purchaser does not own any securities of the
Company which are pledged or otherwise subject to a contingency, the occurrence of which would give
another person voting power or investment power of such securities.

6. Conditions.

     The respective obligations of the Company and the Standby Purchaser to purchase Common Shares
as set forth in this Agreement are subject to the following conditions:

     (a) No order suspending the effectiveness of the Registration Statement or any amendment or
supplement thereto shall have been issued and no proceedings for such purpose shall be pending
before or, to the knowledge of the Company or the Standby Purchaser, threatened by the SEC and any
requests for additional information by the SEC (to be included in the Registration Statement, in
the Prospectus or otherwise) shall have been complied with in all material respects.

     (b) The representations and warranties of the Company and the Standby Purchaser contained
herein shall be true and correct in all material respects as of the Closing Date, and the Company
and the Standby Purchaser shall have performed all covenants and agreements herein
required to be performed on its part at or prior to the Closing Date.

     (c) The Company shall have conducted the Rights Offering substantially in the manner described
in the Prospectus.

7. Termination.

     (a) The Standby Purchaser may terminate this Agreement (i) upon the occurrence of a

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suspension
of trading in the Common Shares, the establishment of limited or minimum prices for the Common
Shares or a general suspension of trading in or the establishment of limited or minimum prices on
the New York Stock Exchange or the Nasdaq National Market, any banking moratorium, any suspension
of payments with respect to banks in the United States or a declaration of war or national
emergency in the United States, (ii) under any circumstances which would result in the Standby
Purchaser, individually or together with any other person or entity, being required to register as
a depository institution holding company under federal or state laws or regulations, or to submit
an application, or notice, to acquire or retain control of a depository institution or depository
institution holding company, to a federal bank regulatory authority, or (iii) prior to the
expiration of the Offering, if the Company experiences a material adverse change in its financial
condition from its financial condition at September 30, 2010.

     (b) In the event (x) the Company, in its reasonable judgment, determines that it is not in the
best interests of the Company and its shareholders to go forward with the Rights Offering or (y)
consummation of the Rights Offering is prohibited by law, rule or regulation and the Company
terminates the Rights Offering, in each case, the Company may terminate this Agreement without
liability.

     (c) Either of the parties hereto may terminate this Agreement (i) if the transactions
contemplated hereby are not consummated by January 31, 2011, through no fault of the Standby
Purchaser or (ii) in the event that the Company is unable to obtain any required federal or state
approvals for the transactions contemplated hereby on conditions reasonably satisfactory to it
despite its reasonable efforts to obtain such approvals. In addition, this Agreement shall
terminate upon mutual consent of the parties hereto.

     (d) The Company and the Standby Purchaser hereby agree that any termination of this Agreement
pursuant to Section 7(a), (b) or (c) (other than termination by one party in the event of a breach
of this Agreement by the other party or misrepresentation of any of the statements made hereby by
the other party), shall be without liability of the Company or the Standby Purchaser.

8. Continuing Provisions.

     The representations and warranties of the Company and the Standby Purchaser set forth in this
Agreement shall be true and correct in all material respects only as of the date of this Agreement
and as of the Closing Date. All of the covenants, agreements and obligations of each of the Company
and the Standby Purchaser required to be performed by the Closing Date shall have been duly
performed and complied with by the Closing Date unless such performance shall have been waived in
writing by the Company or the Standby Purchaser, as the case may be. The
respective representations, warranties, covenants, agreements and obligations of the parties
to this Agreement shall survive the Closing Date.

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9. Recapitalization, etc.

     Other than as disclosed in the Prospectus, prior to Closing, the Company shall not split,
combine, reclassify or repurchase any of its capital stock or declare or pay any extraordinary
dividends on any of its capital stock.

10. Miscellaneous.

     This Agreement is made solely for the benefit of the Standby Purchaser and the Company, and
their respective personal representatives and successors, and no other person, partnership,
association or corporation shall acquire or have any right under or by virtue of this Agreement.

11. Assignment.

     Neither the Company nor the Standby Purchaser may assign any of its rights under this
Agreement without the prior written consent of the other party hereto.

12. Entire Agreement.

     This Agreement constitutes the entire agreement and understanding between the Standby
Purchaser and the Company, and supersedes all prior agreements and understandings relating to the
subject matter hereof. In case any one or more of the provisions contained in this Agreement, or
the application thereof in any circumstance, is held invalid, illegal or unenforceable in any
respect under the laws of any jurisdiction, the validity, legality and enforceability of any such
provision in every other respect and of the remaining provisions contained herein shall not be in
any way affected or impaired thereby or under the laws of any other jurisdiction.

13. Counterparts.

     This Agreement may be executed in any number of counterparts, each of which when so executed
and delivered shall be an original, and all such counterparts together constitute but one and the
same instrument.

14. Amendments.

     This Agreement may not be amended, modified or changed, in whole or in part, except by an
instrument in writing signed by the Company and the Standby Purchaser.

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15. Notices.

     Except as otherwise provided in this Agreement, and unless otherwise notified by the
respective addressee, all notices and communications hereunder shall be in writing and mailed or
delivered or by facsimile or telephone if subsequently confirmed in writing, to:

If to the Company:

Farmers National Banc Corp.

20 South Broad Street

Canfield, Ohio 44406

Attention: John S. Gulas

President and Chief Executive Officer

Telephone: 330-533-3341

With a copy to:

Vorys, Sater, Seymour and Pease LLP

106 South Main Street, Suite 1100

Akron, Ohio 44308

Attention: J. Bret Treier

Telephone: 330-208-1015

Facsimile: 330-208-1066

If to the Standby Purchaser:

	 	 	 	 	 

	 

	 	 	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	 	 	 

16. Applicable Law.

     This Agreement shall be governed by and construed in accordance with the laws of the State of
Ohio, without regard to the conflict of laws rules thereof.

17. Business Day.

     The term “business day” shall mean a day on which banking institutions are open generally in
New York.

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     IN WITNESS WHEREOF, and intending to be legally bound hereby, each of the Standby Purchaser
and the Company has signed or caused to be signed its name as of the day and year first above
written.

	 	 	 	 	 
	 	FARMERS NATIONAL BANC CORP.

 	 
	 	By:  	 	 
	 	 	Name:  	John S. Gulas 	 
	 	 	Title:  	President and Chief Executive Officer 	 
	 
	 	Agreed and Accepted as of the day of the

15th day of December 2010:

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

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