Document:

EXECUTIVE SERVICE
AND SETTLEMENT AGREEMENT  

        THIS
EXECUTIVE SERVICE AND SETTLEMENT AGREEMENT is made and entered into as of this 21st day
of March, 2005, by and between ASSOCIATED BANC-CORP, a Wisconsin corporation (“Associated”),
and MICHAEL J. FALBO, an individual (the “Executive”).  

RECITALS  

        A.       Associated
and State Financial Services Corporation, a Wisconsin corporation           (the “Company”),
are entering into an Agreement and Plan of Merger           (the “Merger Agreement”)
on this 21st day of March, 2005, which,           subject to the terms and conditions
contained in the Agreement, contemplates the           merger (the “Merger”) of
the Company with and into Associated.           Capitalized terms not expressly defined
in this Agreement shall have the           meanings given to them in the Merger
Agreement.  

        B.       The
Company and the Executive are parties to a Key Executive Employment and
          Severance Agreement (the “Employment Agreement”) under which the
          parties to such Employment Agreement have certain rights and obligations.  

        C.       The
Executive participates in various welfare benefit and retirement benefit           plans
of the Company and State Financial Bank, National Association (the           “Company
Bank”) under which the Executive has certain rights and           benefits.  

        D.       Associated
and Associated Bank, National Association (“Associated           Bank”) wish to
resolve all of the employment related issues with respect to           the Executive and
to assure that the Executive’s services are available to           Associated and
Associated Bank for post-merger transition and beyond.  

AGREEMENTS  

        In
consideration of the recitals and other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties hereby agree as follows:  

        1.       Employment
Agreement. The Executive and Associated Bank will enter into           the Employment
Agreement in the form attached hereto as Exhibit A immediately           prior to the
Effective Time, to be effective as of the Effective Time, under           which Executive
agrees to the terms and conditions of his employment by           Associated Bank
following the Effective Time.  

        2.       Noncompetition
Agreement. The Executive and Associated will enter into           the Noncompetition
Agreement in the form attached hereto as Exhibit B           immediately prior to the
Effective Time, to be effective as of the Effective           Time, under which Executive
agrees to refrain from competition with Associated           under the limitations
provided for under the Noncompetition Agreement.  

        3.       Separation
Agreement and General Release. The Executive, Associated, the           Company and
the Company Bank will enter into the Separation Agreement and           General Release
in the form attached hereto as Exhibit C immediately prior to           the Effective
Time, to be effective as of the Effective Time.  

        4.       Binding
Effect. This Agreement shall be binding upon and inure to the           benefit of
the parties hereto, the successors and permitted assigns of           Associated,
Associated Bank, the Company and the Company Bank, and the           Executive’s
heirs and legal representatives.  

        5.       Amendment.
This Agreement may be amended only by a written instrument           executed by the
parties hereto or their respective successors, assigns, heirs or           legal
representatives, as applicable.  

        6.       Governing
Law. This Agreement shall be governed by and construed in           accordance with
the internal laws of the State of Wisconsin.  

[Remainder of page
intentionally left blank. Signature page to follow.] 

2 

        IN
WITNESS WHEREOF, the parties hereto have executed this Agreement on the date first above
written. 

		ASSOCIATED BANC-CORP

		BY   	/s/ Paul S. Beideman

		    Its   	President and CEO

		ASSOCIATED BANK, NATIONAL ASSOCIATION

		BY   	/s/ Paul S. Beideman

		    Its   	President and CEO

		STATE FINANCIAL SERVICES CORPORATION

		BY   	/s/ Daniel L. Westrope

		    Its   	Executive Vice President

		STATE FINANCIAL BANK, NATIONAL ASSOCIATION

		BY   	/s/ Daniel L. Westrope

		    Its   	Executive Vice President

		
		/s/ Michael J. Falbo

		MICHAEL J. FALBO

3 

EXHIBIT A
to Executive Service
and Settlement Agreement 

EMPLOYMENT AGREEMENT 

        THIS
EMPLOYMENT AGREEMENT is made as of __________, 2005, between ASSOCIATED BANK, NATIONAL
ASSOCIATION, its successors and assigns (the “Bank”) and MICHAEL J. FALBO (the
“Executive”). 

RECITALS 

        The
Bank and the Executive acknowledge the following: 

    A.                     The
Executive has valuable expertise and experience in the Bank’s business
          which will enable him to provide valuable business and management services to
          the Bank.  

    B.                     The
Bank desires to employ the Executive and the Executive desires to accept           such
employment on the terms and conditions set forth in this Agreement.  

    C.                     The
Executive’s employment is expressly conditioned upon entering into this
          Agreement and the Bank will not employ the Executive absent his execution of
          this Agreement.  

AGREEMENTS 

        In
consideration of the mutual covenants and agreements set forth in this Agreement, the
parties agree as follows: 

    1.           Employment.
The Bank employs the Executive and the Executive accepts           employment with the
Bank on the terms and conditions set forth in this           Agreement.  

    2.           Term.
The term of the Executive’s employment shall commence on the           date of this
Agreement and continue for a period of 5 years unless sooner           terminated in
accordance with the terms hereof (the “Employment           Period”).  

    3.           Duties.
The Executive shall serve in such capacity as President and           Chief Executive
Officer of Associated Community Development Corporation and           Executive shall,
under the direction of an executive officer of the           Bank, faithfully and
to the best of his ability perform the duties assigned to him from time to time.
It is understood and acknowledged that the           Executive will be employed on a less
than full-time basis (constituting           approximately 50% of the Executive’s
business time), but that he will           devote a sufficient part of his business time,
effort, skill and attention to           perform his duties while employed by the Bank.  

    4.           Compensation.
The Executive shall receive a base salary of           $250,000 per year (“Base
Salary”), which will be payable in           regular installments in accordance with
the Bank’s regular payroll           practices and which will be subject to ordinary
tax withholding and all required           deductions. Except as otherwise provided, the
Bank’s obligation to pay Base           Salary shall terminate upon termination of
this Agreement.  

    5.           Benefits.  

        (a)           Insurance.
The Executive shall be eligible to participate in any group           health, life, dental, or
other group insurance plan offered by the Bank to its           executive employees,
subject to the terms, provisions and limitations of such           plans or programs,
during the Employment Period. The Executive shall pay any           required employee
contribution for such plan.  

        (b)           Reimbursement
for Reasonable Business Expenses. The Bank shall reimburse           the Executive
for reasonable expenses incurred by him in connection with the           performance of
his duties pursuant to this Agreement, which are consistent with           the Bank’s
policies in effect from time to time, including, but not limited           to, travel
expenses, expenses in connection with seminars, professional           conventions or
similar professional functions and other reasonable business           expenses. The
Executive agrees to provide the Bank with receipts and/or           documentation
sufficient to permit the Bank to take its full business expense           deduction. The
Bank shall have no obligation to reimburse the Executive for           expenses claimed
for which reasonable documentation is not provided.           Executive shall be
reimbursed for dues and assessments for membership at private           clubs for which
Executive was being reimbursed by State Financial Services           Corporation and
shall be provided with an automobile allowance under the           Bank’s
automobile reimbursement policy for similarly situated executives.           Furthermore,
the Executive shall have the option to purchase his current           automobile for fair
market value (i.e., Blue Book value). 

        (c)              Other
Benefits. Executive shall also be eligible to receive           fringe benefits
and to participate in any other retirement or welfare benefit           plan or program
generally offered by the Bank to its executive employees,           subject to the terms,
provisions and limitations of such plans or programs           during the Employment
Period. In addition, the Bank shall maintain a life           insurance policy
insuring the Executive’s life. Such policy shall provide a           lump sum
payment within six months of the Executive’s death of $1.5           million. The
Executive shall have the right to designate the beneficiary of the           policy
during the period ending on the later of termination of employment or           such time
as the Executive reaches 65 years of age. Executive’s memorandum           balance
under the State Financial Services Corporation Supplemental Executive
          Retirement Plan (“SFS SERP”) will be assumed or maintained by
          Bank as of the date of this Agreement and will continue to be credited with
          earnings at the rate credited under the Associated Banc-Corp Supplemental
          Executive Defined Contribution Plan (“Associated DC SERP”).
          Distribution options, with respect to the portion transferred to Executive,
will           be no less favorable to Executive than the SFS SERP, subject to any
changes           Bank deems necessary to conform to Internal Revenue Code section 409A.
The           death benefit under the Associated DC SERP (and the balance maintained
in           or transferred from the SFS SERP) is equal to the account balance.
After           the date of this Agreement, Executive will no longer be eligible for any
other           death benefits under the SFS SERP. Executive understands that
neither he           nor any beneficiary has any right to the policy on his life owned by
the SFS           SERP or to the proceeds of such policy. Executive acknowledges and
agrees that           the Bank shall have complete and total discretion with respect to
if, when and           how the Bank will integrate the SFS SERP benefits with the
Associated           DC SERP benefits and what steps shall be taken with respect to
either plan.           The Bank shall also have the right to modify or amend any part of
the           SFS SERP or the Associated DC SERP as necessary to comply with
          Internal Revenue Code section 409A or related guidance.  

2 

    6.           Termination
of Employment.  

        (a)           Termination
of the Employment. The employment of the Executive shall be           terminated
before the end of the Employment Period (i) upon the Executive’s           death or
Disability; (b) upon the delivery to the Bank of the Executive’s           written
notice of resignation or (c) upon the delivery to the Executive of the           Bank’s
written notice of termination.  

        (b)           Definitions.  

		    (i)                     For
purposes of this Agreement, “Disability” shall mean a physical or
          mental sickness or any injury which renders the Executive incapable of
          performing the services required of him as an employee of the Bank and which
          does or may be expected to continue for more than 6 months during any 12-month
          period. The Board of Directors of the Bank and the Executive shall determine
the           existence of a Disability and the date upon which it occurred. In the event
of a           dispute regarding whether or when a Disability occurred, the matter shall
be           referred to a medical doctor jointly selected by the Board of
Directors           of the Bank and the Executive (or the Executive’s legal
          representative). In the event of their failure to agree upon such a medical
          doctor, the Board of Directors and the Executive (or the Executive’s
          legal representative) shall each select a medical doctor who together shall
          select a third medical doctor who shall make the determination. Such
          determination shall be conclusive and binding upon the parties hereto.  

		    (ii)                     For
purposes of this Agreement, “Cause” shall mean (i) the willful           and
continual failure of the Executive to substantially perform his duties for a
period of not less than 30 days (exclusive of time off for vacation,           PTO or
other permitted leave) and shall not include any failure resulting           from
incapacity due to physical or mental illness; (ii) the diversion or           attempted
diversion by the Executive of business from the Bank for the           Executive’s
personal gain or benefit; (iii) the commission by the Executive           of an act of
dishonesty or moral turpitude involving the Bank; (iv) gross           incompetence by
the Executive in the performance of his duties hereunder; (v)           gross negligence
by the Executive involving the Bank; (vi) commission by the           Executive of a
felony or serious misdemeanor offense or pleading guilty or nolo           contendere to
same; (vii) willful misconduct by the Executive as determined in           good faith by
the Board of Directors of the Bank which results in a demonstrably           material
injury to the Bank; or (viii) a material breach by the Executive of any
          provision of this Agreement, the Noncompetition Agreement or the Separation
          Agreement and General Release between the parties of even date herewith. In the
          event the Bank seeks to terminate the Executive’s employment with the Bank
          for Cause, the Bank shall provide the Executive with a written notice stating
          the facts and circumstances constituting the Cause for such termination. If the
          Executive fails to cure or correct the facts and circumstances which constitute
          such Cause within 30 days of receipt of such notice, the Executive may be
          terminated upon the expiration of such 30-day period.  

        (c)                        For
purposes of this Agreement, the Executive shall have a “Good           Reason” for
termination of employment on or after the Effective Time if the           Executive
determines in good faith that any of the following events has           occurred:  

3 

		    (i)                        any
material breach of this Agreement by the Bank, which the Bank fails to cure           or
correct within 30 days of receipt of written notice from the Executive           stating
the facts and circumstances for such material breach;  

		    (ii)                        the
relocation of the Executive’s principal place of employment outside of
          Milwaukee County, Wisconsin without the Executive’s prior consent;  

		    (iii)                        the
Employer requires the Executive to travel on Employer business to a           materially
greater extent than was required during the one-year period prior to           the
Effective Time (provided, however, that the Executive will periodically be
          required to travel to Green Bay, Wisconsin, which shall not constitute a Good
          Reason for termination).  

        (d)              Termination
by the Bank for Cause or Resignation by the Executive. In the           event of
termination of the Executive’s employment by the Bank for Cause or           the
resignation by the Executive, payments of the Executive’s Base Salary
          shall be prorated to the date of termination. The Bank shall have no further
          obligation to the Executive, except to the extent such obligations may be
          imposed by applicable law or under the terms of a Bank plan or program in which
          Executive is a participant.  

        (e)              Termination
Without Cause or for Good Reason. If the Executive’s           employment is
terminated by the Bank for any reason other than for Cause,           Disability or
death, or if this Agreement is terminated by the Bank for what the           Bank
believes is Cause and it is ultimately determined that the Executive was
          terminated without Cause, or the Executive terminates for Good Reason, the
          Executive shall receive his Base Salary for the remainder of the original 5
year           Employment Period. The Bank shall have no further obligation to the
Executive,           except to the extent such obligations may be imposed by applicable
law or under           the terms of a Bank plan or program in which Executive is a
participant.  

        (f)              Termination
for Death or Disability. If the Executive’s employment           is terminated
for death or Disability of the Executive, the Executive shall           receive his Base
Salary for the remainder of the original 5 year Employment           Period (to be paid
to the Executive’s estate in the event of death), and           his spouse or other
dependents shall be eligible for continued coverage under           Bank’s health
programs. The Bank shall have no further obligation to the           Executive, except to
the extent such obligations may be imposed by applicable           law or under the terms
of a Bank plan or program in which Executive is a           participant.  

        (g)              Continuation
of Health Coverage. After the Employment Period,           or upon Executive’s
termination of employment Without Cause, for Good           Reason or due to Disability
or death, Executive shall be entitled to continue to           purchase health coverage
under Bank’s health plan for active employees for           himself and his spouse
until he reaches the age at which he is eligible for           Medicare and, upon his
eligibility for Medicare (or his death, if earlier), his           spouse shall be
eligible to purchase such coverage, in each case at the same           cost Bank charges
to its active executive employees.  

    7.           Confidential
Information; Inventions and Improvements.  

4 

        (a)           Confidential
Information. The parties agree information relating to the           Bank’s
business, including but not limited to customer lists, business           procedures and
operations, investments, employee compensation and other employee           information,
and other proprietary information (the “Confidential           Information”)
are established at great expense and provide the Bank with a           substantial
competitive advantage in conducting its business. The parties           further agree
that by virtue of the Executive’s employment with the Bank,           he will have
access to, and be entrusted with Confidential Information, and that           the Bank
would suffer great loss and injury if the Executive would disclose this
          information or use it to compete with the Bank. Therefore, the Executive agrees
          that during the Employment Period and thereafter (i) until such time as the
          Confidential Information becomes generally available to the public through no
          fault of the Executive, (ii) until such time as the Confidential Information no
          longer provides benefit to the Bank or (iii) for a period of two years after
the           expiration of the Employment Period, whichever occurs sooner, the Executive
will           not, directly or indirectly, in any capacity, use or disclose or cause to
be           used or disclosed, any Confidential Information.  

        (b)                     The
Executive will disclose to the Bank and upon the Bank’s request, assign           to
it, without charge, all of the Executive’s right, title and interest, if
          any, in and to any and all ideas, inventions, discoveries and improvements
which           the Executive may make or conceive, solely or jointly with others, during
the           Employment Period (collectively, the “New Developments”). Upon
request           by the Bank, whether during or subsequent to the Employment Period, the
          Executive will do any and all acts and execute and deliver such documents as
may           be deemed by the Bank or its counsel to be necessary or advisable to vest
in the           Bank all of the Executive’s right, title and interest in and to
such New           Developments and to apply and obtain domestic or foreign patents,
provided that           the expenses incurred in connection with the foregoing shall be
borne by the           Bank. If services in connection therewith are performed at the Bank’s
          request after the Employment Period, the Bank will pay the Executive reasonable
          compensation for such services. The term “New Developments” shall not
          include any ideas, inventions and discoveries which the Executive makes at his
          expense when not fulfilling his duties to the Bank hereunder and which are not
          related in any way to the Bank’s business.  

    8.           Common
Law of Torts and Trade Secrets. The parties agree that nothing in           this
Agreement shall be construed to limit or negate the statutory or common law           of
torts or trade secrets where it provides the Bank with broader protection           than
that provided herein.  

    9.           Specific
Performance. The Executive acknowledges and agrees that           irreparable injury
to the Bank may result in the event the Executive engages in           any act in
violation of the provisions of section 7 and that the remedy at law           for the
breach of any such covenant will be inadequate, the Executive agrees           that the
Bank shall be entitled, in addition to such other remedies and damages           as may
be available to it by law or under this Agreement, to injunctive relief           to
enforce the provisions of section 7 without the necessity of providing a           bond.  

    10.           Sale,
Consolidation or Merger. In the event of a sale of the stock of the           Bank,
or consolidation or merger of the Bank with or into another Bank or           entity, or
the sale of substantially all of the operating assets of the Bank to           another
Bank, entity or individual, the successor-in-interest shall be deemed to           have
assumed all liabilities of the Bank under this Agreement. It is agreed that           the
rights and obligations of the Executive may not be delegated or assigned           except
as specifically set forth in this Agreement.  

5 

    11.           Waiver.
The failure of either party to insist, in any one or more           instances, upon
performance of the terms or conditions of this Agreement shall           not be construed
as a waiver or a relinquishment of any right granted hereunder           or of the future
performance of any such term, covenant or condition.  

    12.           Notices.
Any notice to be given hereunder shall be deemed sufficient if           addressed in
writing and delivered by registered or certified mail or delivered           personally,
in the case of the Bank, to its principal business office and, in           the case of
the Executive, to his address appearing on the records of the Bank,           or to such
other address as he may designate in writing to the Bank.  

    13.           Severability.
In the event that any provision shall be held to be invalid           or unenforceable
for any reason whatsoever, it is agreed such invalidity or           unenforceability
shall not affect any other provision of this Agreement and the           remaining
covenants, restrictions and provisions hereof shall remain in full           force and
effect and any court of competent jurisdiction may so modify the           objectionable
provision as to make it valid, reasonable and enforceable.  

    14.           Complete
Agreement. Except as otherwise expressly set forth herein, this           document
and other agreements of even dates herewith, embody the complete           agreement and
understanding among the parties hereto with respect to the subject           matter
hereof and supersedes and preempts any prior understandings, agreements           or
representations by or among the parties, written or oral, which may have
          related to the subject matter hereof in any way.  

    15.           Amendment.
This Agreement may only be amended by an agreement in writing           signed by all of
the parties hereto.  

    16.           Governing
Law. This Agreement shall be governed by and construed in           accordance with
the laws of the State of Wisconsin, without reference to           principles of
conflicts of laws.  

    17.           Benefit.
This Agreement shall be binding upon and inure to the benefit of           and shall be
enforceable by and against the Bank, its successors and assigns and           the
Executive, his heirs, beneficiaries and legal representatives.  

[Remainder of page
intentionally left blank. Signature page to follow.]  

6 

IN WITNESS WHEREOF, the parties have
executed or caused this Employment Agreement to be executed as of the date first above
written. 

		ASSOCIATED BANK, NATIONAL ASSOCIATION
	

 	By: ________________________________
	
 	Its: ________________________________
	

 	______________________________________
		MICHAEL J. FALBO

7 

EXHIBIT B  to Executive Service
and Settlement Agreement 

NONCOMPETITION AGREEMENT 

        THIS
NONCOMPETITION AGREEMENT (this “Agreement”), dated as of
_____________, 2005, is between ASSOCIATED BANC-CORP, a Wisconsin corporation
(“Associated”), and MICHAEL J. FALBO (the “Shareholder”). 

RECITALS 

         A.       
          Associated and State Financial Services Corporation, a Wisconsin corporation
          (the “Company”), are parties to an Agreement and Plan of Merger, dated
          as of March 21, 2005 (the “Merger Agreement”), pursuant to which
          the Company will be merged (the “Merger”) with and into Associated. 

         B.       
          The Shareholder owns shares of the issued and outstanding common stock of the
          Company and options to purchase common stock of the Company. The Company is the
          sole shareholder of State Financial Bank, National Association (the
          “Bank”). The Company (including Associated as successor to the Company
          pursuant to the Merger), the Bank and the other direct and indirect subsidiaries
          of the Company are collectively referred to in this Agreement as “State
          Financial.” 

         C.       
          State Financial is engaged in the business of providing financial services,
          including making loans and accepting deposits (the “Business”). 

         D.       
          The Shareholder acknowledges that he has (1) been an executive level employee of
          State Financial, (2) had access to confidential information of State Financial
          and (3) extensive experience and knowledge of the Business that he could use to
          compete with Associated (as successor to the Company) after the Effective Time
          of the Merger. 

         E.       
          Associated and the Shareholder acknowledge that the execution and delivery of
          this Agreement by the Shareholder is a condition to the obligation of Associated
          to consummate the transactions contemplated by the Merger Agreement. Associated
          and the Shareholder deem it to be in the best interest of all parties to limit
          the ability of the Shareholder to compete with State Financial after the date
          hereof as a result of the consummation of the transactions contemplated by the
          Merger Agreement. 

AGREEMENTS 

        In
consideration of the Recitals, the consideration paid to the Shareholder pursuant to the
Merger Agreement, and the mutual covenants and agreements set forth in this Agreement, the
parties agree as follows: 

         1.       
          Definitions. Capitalized terms not expressly defined in this Agreement
          shall have the meanings given to them in the Merger Agreement. For purposes of
          this Agreement: 

             (a)       
          “Customer” means any individual or entity to which State Financial
          provided products or services at any time during the two year period prior to
          the Effective Time of the Merger or which State Financial actively solicited for
          the purpose of providing products or services during the two year period prior
          to the Effective Time of the Merger. 

             (b)       
          “Confidential Information” means information, whether or not a trade
          secret, that is possessed by or developed for State Financial and that relates
          to State Financial’s business or technology, including but not limited to,
          Inventions, business plans and strategies, existing or proposed bids, technical
          or engineering developments, existing or proposed research projects, financial
          or business projections, investments, marketing plans and strategies, pricing
          and cost information, negotiation strategies, training information and
          materials, employee compensation and other employee information, customer or
          potential customer lists, customer purchasing history and information generated
          for customer engagements. Confidential Information also includes information
          received by the Shareholder from others, which the Shareholder has an obligation
          to treat as confidential, including all information obtained in connection with
          customer engagements. Confidential Information shall not include information
          that is generally known to the public as of the date of this Agreement. 

             (c)       
          “Inventions” mean all inventions, original works of authorship,
          developments, concepts, improvements, designs, discoveries, ideas, processes,
          techniques, formulae, trademarks, data and other intellectual property other
          than trade secrets (whether or not protectible under intellectual property laws
          or similar laws) made solely by the Shareholder (or jointly with others) while
          the Shareholder owned any interest in the Company or during the
          Shareholder’s employment with State Financial that (i) relate to State
          Financial’s business services or activities; (ii) were developed or
          conceived in connection with the Shareholder’s ownership of any interest in
          State Financial or the Shareholder’s employment State Financial; or
          (iii) were developed or conceived using the assets of State Financial. 

2 

             (d)       
          “Noncompete Period” means the period starting on the date of the
          Effective Time of the Merger and ending on the second anniversary of such date. 

             (e)       
          “Territory” means the counties in which the Company or any of the
          Company Subsidiaries has an office as of the date of this Agreement (including
          any branch of the Bank). 

         2.       
          Consideration; Acknowledgments by the Shareholder. The Shareholder shall
          receive 24 equal monthly payments of $22,292 during the Noncompete Period
          in exchange for agreeing to the terms of this Agreement (the “Noncompete
          Payments”). The Shareholder acknowledges and agrees that: (a) the
          benefits and consideration he will receive as a result of the consummation of
          the transactions contemplated by the Merger Agreement constitute adequate and
          sufficient consideration for their covenants contained in this Agreement;
          (b) Associated would not consummate the transactions contemplated by the
          Merger Agreement if the Shareholder did not agree to be bound by the provisions
          contained in this Agreement; (c) the covenants contained herein are being
          entered into in the connection with the acquisition of State Financial by
          Associated and not in connection with employment or other principal-agent
          relationship; (d) the provisions of sections 3, 4, 5, 6 and 7 of this
          Agreement are reasonable and necessary to protect and preserve State Financial;
          and (e) Associated would be irreparably damaged if the Shareholder were to
          breach the covenants set forth in sections 3, 4, 5, 6 or 7 of this
          Agreement. In the event of the death of the Shareholder, Associated shall
          continue to pay to the estate of the Shareholder the Noncompete Payments during
          the Noncompete Period. Associated may prepay such payments without penalty. 

         3.       
          Confidential Information. 

             (a)       
          The Shareholder acknowledges and agrees that the Confidential Information is the
          property of State Financial, has been established and maintained at great
          expense, and is of great value to State Financial. Therefore, the Shareholder
          agrees that he will not, directly or indirectly, in any geographic territory
          where his use or disclosure of the Confidential Information could harm
          Associated or State Financial, disclose to any unauthorized persons or use for
          his own benefit or for the benefit of any third party any Confidential
          Information without Associated’s prior written consent, until the earlier
          of (a) the end of the Noncompete Period, (b) such time as the Confidential
          Information no longer provides a benefit to State Financial, or (c) the
          date the Confidential Information is or becomes generally known to and available
          for use by the public other than by the Shareholder’s fault or the fault of
          any other person bound by a duty of confidentiality to Associated or State
          Financial. The Shareholder agrees to deliver to Associated at the time of
          execution of this Agreement, and at any other time Associated may request, all
          tangible copies of, and destroy all digital copies of (certifying to Associated
          in writing such destruction or delivery), all documents, memoranda, notes,
          plans, records, reports, and other documentation, models, components, devices,
          or computer software (and all copies of all of the foregoing), relating to State
          Financial and any other Confidential Information that the Shareholder may then
          possess or have under his control. 

3 

             (b)       
          To the extent that he has not already done so, the Shareholder hereby assigns to
          Associated all of the Shareholder’s right, title and interest in and to any
          and all Inventions and trade secrets, whether or not patentable or registrable
          under copyright or similar laws, (i) which the Shareholder may solely or
          jointly have conceived, developed or reduced to practice, or caused to be
          conceived, developed or reduced to practice, during the Shareholder’s
          employment with State Financial or (ii) which the Shareholder may solely or
          jointly have conceived, developed or reduced to practice, or caused to be
          conceived, developed or reduced to practice on behalf of or at the request of
          State Financial while the Shareholder owned any interest in State Financial but
          was not an employee of State Financial. The Shareholder agrees to take such
          additional actions and execute such additional documents as may be necessary or
          appropriate to effectuate the foregoing assignments. The Shareholder further
          acknowledges that all original works of authorship which were made by the
          Shareholder (solely or jointly with others) within the scope of and during the
          period of the Shareholder’s employment with State Financial or which were
          made by the Shareholder (solely or jointly with others) on behalf of or at the
          request of State Financial while the Shareholder owned any interest in State
          Financial but was not an employee of State Financial and which are protectable
          by copyright are “works made for hire,” as that term is defined in the
          United States Copyright Act. 

         4.       
          Noncompetition. During the Noncompete Period, the Shareholder will not,
          directly or indirectly, either individually or as an employee, officer,
          director, advisory board member, principal, agent, partner, owner, trustee,
          beneficiary, co-venturer, distributor, consultant or in any other capacity,
          (i) participate in, become associated with, provide assistance to, engage
          in, or have a financial or other interest in any business, activity, enterprise
          or entity, which competes within the Territory with the Business or any other
          business of State Financial that relates or is complementary or supplemental to
          the Business or (ii) advertise, promote or otherwise endorse any third
          party products and/or services which compete within the Territory with the
          Business or any other business of State Financial that relates or its
          complimentary or supplemental to the Business; provided, that the ownership of
          less than a 1% interest in an entity whose securities are traded in a recognized
          stock exchange or traded in the over-the-counter market, even though that entity
          competes with the Business, shall not be deemed in itself to be a breach of this
          section 4. 

4 

         5.       
          Customers. During the Noncompete Period, the Shareholder will not,
          directly or indirectly, either individually or as an employee, officer,
          director, advisory board member, principal, agent, partner, owner, trustee,
          beneficiary, co-venturer, distributor, consultant or in any other capacity,
          canvass, contact, solicit or do business with any Customer for the purpose of
          providing products or services similar to or competitive with those provided by
          State Financial; provided, that the ownership of less than a 1% interest in an
          entity whose securities are traded in a recognized stock exchange or traded in
          the over-the-counter market, even though that entity is a competitor of State
          Financial, shall not be deemed in itself to be a breach of this section 5. 

         6.       
          Relations with Suppliers and Vendors. During the Noncompete Period, the
          Shareholder will not, directly or indirectly, cause, request, or advise any
          supplier or vendor of State Financial to curtail or cancel its business with
          State Financial. 

         7.       
          Relations with Employees. During the Noncompete Period, the Shareholder
          will not, directly or indirectly, induce or attempt to induce any employee,
          officer, director, sales or other representative, consultant, independent
          contractor or other agent of State Financial who had a relationship with State
          Financial prior to the Effective Time of the Merger to terminate his, her or its
          relationship with State Financial or breach his, her or its agreements with
          State Financial. 

         8.       
          Remedies. If the Shareholder breaches the covenants set forth in
          Sections 3, 4, 5, 6 or 7 of this Agreement, Associated will be entitled to
          the following remedies: 

             (a)       
          Money damages from the Shareholder. 

             (b)       
          In addition to its right to money damages and any other rights it may have, to
          obtain injunctive or other equitable relief to restrain any breach or threatened
          breach or otherwise to specifically enforce the provisions of Sections 3,
          4, 5, 6 and 7 of this Agreement, it being agreed that money damages alone would
          be inadequate to compensate Associated and would be an inadequate remedy for
          such breach. 

             (c)       
          The rights and remedies of Associated are cumulative and not alternative. 

         9.       
          Trade Secrets. The parties agree that nothing in this Agreement shall be
          construed to limit or negate any common or statutory law regarding torts or
          trade secrets where it provides Associated with broader protection than that
          provided herein. The Shareholder shall take all steps that are reasonably
          necessary to prevent unauthorized misappropriation or disclosure of State
          Financial’s trade secrets and shall not use or disclose any of State
          Financial’s trade secrets as long as they remain trade secrets. 

5 

         10.       
          Successors and Assigns. This Agreement will be binding upon the parties
          and will inure to the benefit of the parties and their respective affiliates,
          successors and assigns. 

         11.       
          Waiver. Neither the failure nor any delay by any party in exercising any
          right, power or privilege under this Agreement will operate as a waiver of such
          right, power or privilege, and no single or partial exercise of any such right,
          power or privilege will preclude any other or further exercise of such right,
          power or privilege or the exercise of any other right, power or privilege. To
          the maximum extent permitted by applicable law: (a) no claim or right
          arising out of this Agreement can be discharged by one party, in whole or in
          part, by a waiver or renunciation of the claim or right unless in writing signed
          by the other party; (b) no waiver that may be given by a party will be
          applicable except in the specific instance for which it is given; and
          (c) no notice to or demand on one party will be deemed to be a waiver of
          any obligation of such party or of the right of the party giving such notice or
          demand to take further action without notice or demand as provided in this
          Agreement. 

         12.       
          Governing Law. This Agreement shall be governed by and construed and
          interpreted in accordance with the laws of the State of Wisconsin, without
          reference to principles of conflict of laws. 

         13.       
          Severability. Whenever possible each provision and term of this Agreement
          will be interpreted in a manner to be effective and valid but if any provision
          or term of this Agreement is held to be prohibited by law or otherwise invalid,
          then such provision or term will be ineffective only to the extent of such
          prohibition or invalidity, without invalidating or affecting in any manner
          whatsoever the remainder of such provision or term or the remaining provisions
          or terms of this Agreement. If any of the covenants set forth in section 3,
          4, 5, 6 or 7 of this Agreement are held to be unreasonable, arbitrary, or
          against public policy, such covenants may be modified by a court of competent
          jurisdiction, with respect to scope, time, and geographic area, and in such
          lesser scope, time and geographic area, will be effective, binding and
          enforceable against the Shareholder. 

         14.       
          Counterparts. This Agreement may be executed by facsimile and in one or
          more counterparts, each of which will be deemed to be an original copy of this
          Agreement and all of which, when taken together, will be deemed to constitute
          one and the same agreement. 

         15.       
          Section Headings; Construction. The headings of sections in this
          Agreement are provided for convenience only and shall not affect this
          Agreement’s construction or interpretation. All references to
          “section” or “sections” refer to the corresponding section
          or sections of this Agreement unless otherwise specified. All words used in this
          Agreement will be construed to be of such gender or number as the circumstances
          require. Unless otherwise expressly provided, the word “including”
          does not limit the preceding words or terms. This Agreement was jointly drafted
          by the parties hereto and no rule of strict construction shall be applied versus
          either party. 

6 

         16.       
          Notices. All notices and other communications among the parties shall be
          in writing and shall be deemed to have been duly given (a) when delivered
          in person; (b) one day after delivery to a reputable overnight courier
          service; (c) five days after posting in the United States mail having been
          sent registered or certified mail return receipt requested; or (d) when
          delivered by facsimile, and promptly confirmed by delivery in person or post as
          aforesaid in each case, with postage prepaid, addressed as follows: 

if to Associated: 

	 	
Associated
Banc-Corp                   
1200 Hansen Road                   
Green Bay, WI 54304
                  
Attention:  Brian R. Bodager, Chief Administrative Officer, General

Counsel and Corporate                   Secretary                   
Facsimile:
 920-491-7010 

with a copy to: 

	 	
Reinhart
Boerner Van Deuren s.c.                   
1000 North Water Street, Suite 2100
                  
Milwaukee, WI 53202                   
Attention:  James M. Bedore, Esq.
                  
Facsimile:  414-298-8097 

if to the Shareholder: 

	 	
Michael
J. Falbo                   
__________________                  
__________________
                  
Facsimile:  (___) ____-_________ 

7 

with a copy to: 

	 	
Jay
O. Rothman                   
Foley & Lardner LLP                   
777 East Wisconsin
Avenue                   
Milwaukee, WI 53202                   
Facsimile:  (414) 297-4900 

or to such other address or addresses
as the parties may from time to time designate in writing. 

         18.       
          Entire Agreement. This Agreement constitutes the entire agreement between
          the parties with respect to the subject matter of this Agreement and supersede
          all prior written and oral agreements and understandings between the parties
          with respect to the subject matter of this Agreement. This Agreement may not be
          amended except by a written agreement executed by the party to be charged with
          the amendment. 

[Remainder of page
intentionally left blank. Signature page to follow.] 

8 

        IN
WITNESS WHEREOF, the parties have executed and delivered this Agreement as of the date
first above written. 

		ASSOCIATED
	
 	ASSOCIATED BANC-CORP
	

 	BY  _____________________________
		        (signature)
	
	        _____________________________
		        (print name)
	
 	        _____________________________
		        (title)
	

 	THE SHAREHOLDER
	
 	_____________________________________
		MICHAEL J. FALBO

9 

EXHIBIT C 
to the Executive
Service and Settlement Agreement 

SEPARATION AGREEMENT
AND GENERAL RELEASE 

        THIS
SEPARATION AGREEMENT AND GENERAL RELEASE is entered into as of ________, 2005 among
ASSOCIATED BANC-CORP, a Wisconsin corporation (“Associated”), STATE FINANCIAL
SERVICES CORPORATION, a Wisconsin corporation (the “Company”), STATE FINANCIAL
BANK, NATIONAL ASSOCIATION (the “Bank”), and MICHAEL J. FALBO (the
“Executive”). 

RECITALS 

        The
parties acknowledge the following: 

         A.       
          The Company and the Executive are parties to a Key Executive Employment and
          Severance Agreement dated as of __________ attached hereto as
          Schedule 1 (the “Employment Agreement”). 

         B.       
          The Company and Associated have entered into an Agreement and Plan of Merger,
          dated as of March 21, 2005 (the “Merger Agreement”), which
          contemplates the merger (the “Merger”) of the Company with and into
          Associated. 

         C.       
          Associated desires that the Company, the Bank and the Executive effect a final
          resolution and settlement of all matters and issues relating directly or
          indirectly to the Employment Agreement and the Executive’s employment with
          the Company and the Bank and his separation from that employment prior to the
          effective time of the Merger. 

AGREEMENTS 

        In
consideration of the Recitals and mutual agreements which follow, the parties agree as
follows: 

    1.              Effective
Time. This Agreement shall become effective only upon                consummation of
the Merger and upon such consummation shall have the same                effective time (“Effective
Time”) as the Merger.  

    2.              Termination
of Employment Agreement. As of the Effective Time, the                Employment
Agreement and all of the respective rights and obligations of the                Company,
the Bank, and the Executive thereunder shall cease and terminate. The
               Executive acknowledges and agrees that he is not entitled to any further
               compensation or payment pursuant to the terms of the Employment Agreement.  

    3.              Acknowledgment
of Full Compensation. The Executive acknowledges and                agrees that he
received from the Company and the Bank all wages, fringe benefits
               (including without limitation by enumeration vacation pay, insurance
benefits,                retirement and pension benefits, stock options, severance pay,
bonus payments,                and expense reimbursement) and all other compensation owed
by the Company and                the Bank to the Executive through and including the
date of this Agreement. The                Executive further confirms that he is not
entitled to any further compensation                arising out of his employment.  

    4.              Consideration.
Conditioned upon the Executive’s execution of this                Agreement and his
return of this Agreement to the Company expiration of the                seven-day
revocation period without revocation, and the Executive’s                properly
executing and returning the attached acknowledgment form to the Company
               (in the form attached hereto as Schedule 2) indicating his decision
not to                revoke this Agreement, the Executive shall receive a lump sum cash
payment of                $823,161, less ordinary tax withholding and all required
deductions. Such cash                payment shall be made within 10 days of the date
hereof. Such cash payment shall                not be deemed “compensation” for
purposes of any of either the Company                or the Bank’s qualified
retirement plans or other benefit programs, and                payment of this severance
pay does not entitle the Executive to any retirement                plan contributions by
the Company and the Bank for the Executive’s benefit                or account.  

    5.              Non-Admission
of Liability. Neither this Agreement nor any action taken                by the
Company or the Bank pursuant to it shall in any way be construed as an
               admission by the Company or the Bank of any liability, wrongdoing, or
violation                of law, regulation, contract or policy regarding any of the
Company or the                Bank’s decisions and actions regarding the employment
or separation from                employment of the Executive or termination of the
Employment Agreement.  

    6.              Release.
Except as specifically provided in this Section or                Section 16 of this
Agreement, for valuable consideration from the Company                and the Bank as
stated above, the Executive, for himself and his heirs, personal
               representatives, successors and assigns, hereby releases all claims of
whatever                nature that he may have against the Company or the Bank, their
respective                affiliates, subsidiaries, predecessors, successors and assigns
and their                respective present, former or later insurers, agents,
representatives, officers,                administrators, directors, principals and
employees (collectively                “Releasees”), which arise out of or are
in any manner based upon or                related to the employment relationship between
the Executive, the Company or the                Bank, and his separation from the
Company and the Bank, and from all other                claims or liabilities of any
nature whatsoever which have arisen from any                occurrence, transaction,
omission or communication which transpired or occurred                at any time before
or on the date of this Agreement; provided, however, that                this Agreement
will not prevent any party from asserting a claim against the                other party
in the event the other party breaches this Agreement. In addition,                this
waiver and release is not intended to affect Executive’s rights to
               indemnification pursuant to the Company’s Articles of Incorporation
and                By-Laws as in effect on March 21, 2005, or under applicable law.  

2 

        Except
as specifically provided in this Section or Section 16 of this Agreement, without
limitation, the Executive specifically releases, waives and forever discharges the
above-listed entities and persons from and against all liabilities, claims, actions,
demands, damages and costs of every nature, whether known or unknown, asserted or
unasserted, which arise under the Wisconsin Fair Employment Act; Wisconsin wage and hour
laws; Title VII of the Civil Rights Act of 1964, as amended; the Age Discrimination in
Employment Act (29 U.S.C. § 621, et seq.); the Americans With Disabilities
Act; the Fair Labor Standards Act; the Equal Pay Act; state or federal parental, family
and medical leave acts; or arising under any other local, state or federal statute,
ordinance, regulation or order, or which involve a claim or action for wrongful discharge,
breach of contract (express or implied) and/or any other tort or common law cause of
action. This waiver and release does not affect those rights or claims that arise after
the execution of this Agreement. 

         7.       
          No Pending Matters. The Executive warrants and represents that he has not
          filed any pending complaint, charge, claim or grievance concerning his
          compensation, separation from employment or terms and conditions of employment
          against the Company or the Bank with any local, state or federal agency, court
          or commission, and that if any agency, commission or court assumes jurisdiction
          of any such complaint or charge on behalf of the Executive relating to the
          claims released in Section 6, he will request that agency, commission, or
          court to dismiss such proceeding. 

         8.       
          Binding Agreement. This Agreement shall be binding upon the Executive and
          upon his heirs, administrators, representatives, executors, successors and
          assigns and shall inure to the benefit of the Releasees and to their respective
          heirs, administrators, representatives, executors, successors and assigns. 

         9.       
          Severability. It is understood and agreed that the provisions of this
          Agreement shall be deemed severable, and the invalidity or unenforceability of
          any one or more of the provisions herein shall not affect the validity and
          enforceability of the other provisions herein. 

3 

         10.       
          Complete and Exclusive Agreement. The parties understand and agree that
          this Agreement is final and binding and constitutes the complete and exclusive
          statement of the terms and conditions of separation, that no representations or
          commitments were made by the parties to induce this Agreement other than as
          expressly set forth herein. This Agreement may not be modified or supplemented
          except by a subsequent written agreement signed by the party against whom
          enforcement is sought. 

         11.       
          Consideration Period. The Executive represents that he has had the
          opportunity and time to consult with legal counsel concerning the provisions of
          this Agreement and that he has been given up to 21 days to consider this
          Agreement. 

         12.       
          Further Assurances. The parties hereto shall take such additional actions
          and execute and deliver such additional documents as may be reasonably necessary
          or desirable to consummate the transactions contemplated by this Agreement. 

         13.       
          Governing Law. This Agreement shall be governed by, and construed in
          accordance with, the laws of the State of Wisconsin, without reference to
          principles of conflicts of law. 

         14.       
          Acknowledgment. The undersigned parties acknowledge and agree that they
          have carefully read this Agreement, that a copy of this Agreement was available
          to them prior to execution, that they understand its contents including its
          release of claims, that they have been given the opportunity to ask any
          questions concerning this Agreement and its contents, and that they have signed
          this Agreement as their free and voluntary act. 

         15.       
          Cooperation. The Executive shall make all reasonable efforts to cooperate
          with the Company, the Bank and all of their respective successors and assigns in
          preventing and defending against the application of any tax imposed pursuant to
          Section 4999 of the Internal Revenue Code. Such efforts shall include, but
          not be limited to, the following: 

        (a)                             In
reporting and paying the Executive’s federal, state and local income tax
               on the payments or value of any benefits provided under this Agreement,
the                Executive shall be obligated to report to any applicable taxing
authority in                accordance with the directions of Associated, which
directions shall be                consistent with applicable law and this Agreement.  

4 

        (b)                             The
Executive shall not agree or consent to any tax assessment by any taxing
               authority that is inconsistent with a reporting position directed under
Section                15(a) above, without the written approval of Associated.  

        (c)                             The
Executive shall allow Associated, at its option (and at Associated’s
               expense), to control and defend against any tax audit that purports to
subject                any payment described in this Agreement to tax under Section 4999
of the                Internal Revenue Code.  

         16.       
          Non-Applicability to Certain Benefits. Notwithstanding anything in this
          Agreement to the contrary, this Agreement shall not apply to: 

             (a)       
          Benefit Plans. Any claims for benefits: (i) pursuant to any
          retirement benefit plan maintained by the Company or the Bank and that is
          intended to be a tax-qualified plan under Section 401 of the Internal
          Revenue Code (including the lump-sum payment features); (ii) pursuant to
          the terms of any medical plan of the Bank with respect to claims;
          (iii) pursuant to the supplemental executive retirement plan maintained by
          the Bank; (iv) for vacation which has accrued as of the Effective Time; (v) any
          benefits due under the Welfare Benefit Plans of the Company or Bank set forth on
          Schedule 2.10 of the Merger Agreement; (vi) wages due and unpaid as of the
          Effective Time in accordance with the Company’s standard payroll policies;
          or (vii) any unreimbursed business expenses properly incurred prior to the
          Effective Time and unpaid as of the Effective Time. 

             (b)       
          Options. The Executive currently holds options with respect to a total of
          213,361 shares. Such options shall be cashed-out in accordance with Section 1.10
          of the Merger Agreement. The following schedule identifies the grant date of
          each option, the exercise price, the number of shares, the current expiration
          date to which the option is subject, and the type of option (ISO or NQSO). 

	Date of Grant	Option Price	Number of

Shares	Expiration Date	Type of Option
	01/31/01	$10.13	6,242	01/31/06	ISO
	01/31/01	$10.13	4,645	01/31/06	NQSO
	01/31/01	$10.13	12,702	01/31/08	NQSO
	01/31/01	$10.13	9,072	01/31/11	NQSO
	02/28/02	$13.00	3,592	08/28/07	ISO
	02/28/02	$13.00	14,350	08/27/07	NQSO
	02/28/02	$13.00	8,708	02/28/07	NQSO
	02/28/02	$13.00	10,250	02/28/12	NQSO
	01/31/03	$18.69	5,350	01/31/13	ISO
	01/31/03	$18.69	35,650	01/31/13	NQSO
	02/03/04	$27.00	3,703	02/03/14	ISO
	02/03/04	$27.00	40,067	02/03/14	NQSO
	01/31/05	$29.719	3,364	01/31/15	ISO
	01/31/05	$29.719	55,666	01/31/15	NQSO

5 

        All
options shall continue to be subject to the terms of the Company Stock Option Plan under
which they were respectively issued, as amended, except as otherwise agreed to and
provided in the Merger Agreement and the Option Conversion Agreement contemplated by
Section 1.10 of the Merger Agreement. 

[Remainder of page
intentionally left blank. Signature page to follow.] 

6 

        IN
WITNESS WHEREOF, the parties herein executed this Separation Agreement and General Release
as of the date appearing next to their signatures. 

		ASSOCIATED BANC-CORP
	
Date:____________________	BY____________________________________________
		        Its________________________________________
	

 	STATE FINANCIAL SERVICES CORPORATION
	
Date:____________________	BY____________________________________________
		        Its________________________________________
	

 	STATE FINANCIAL BANK, NATIONAL ASSOCIATION
	
Date:____________________	BY____________________________________________
		        Its________________________________________

CAUTION: THIS IS A
RELEASE. THE COMPANY AND THE BANK HEREBY ADVISES THE EXECUTIVE TO CONSULT WITH AN
ATTORNEY AND READ IT BEFORE SIGNING. THIS AGREEMENT MAY BE REVOKED IN WRITING BY THE
EXECUTIVE WITHIN SEVEN DAYS OF HIS EXECUTION OF THE DOCUMENT.  

	Dated: ___________________	______________________________
		MICHAEL J. FALBO

7 

SCHEDULE 1 

[Employment Agreement
between the Company and Executive] 

SCHEDULE 2 

SEVEN DAY RIGHT TO
REVOCATION
ACKNOWLEDGMENT FORM  

        I,
MICHAEL J. FALBO, hereby acknowledge that State Financial Services Corporation and State
Financial Bank, National Association each has tendered a Separation Agreement and General
Release offer which I voluntarily agreed to accept on ______________, 2005, a date at
least seven days prior to today’s date. 

        I
certify that seven calendar days have elapsed since my voluntary acceptance of the
above-referenced offer (i.e., seven days have elapsed since the above date), and
that I have voluntarily chosen not to revoke my acceptance of the above-referenced
Separation Agreement and General Release. 

        Signed
this ____ day of _____________, 2005 at ___________, ___________. 

 		______________________________
		MICHAEL J. FALBOEXECUTIVE SERVICE
AND SETTLEMENT AGREEMENT  

        THIS
EXECUTIVE SERVICE AND SETTLEMENT AGREEMENT is made and entered into as of this 21st day
of March, 2005, by and between ASSOCIATED BANC-CORP, a Wisconsin corporation (“Associated”),
and ROBERT J. CERA, an individual (the “Executive”).  

RECITALS  

        A.       Associated
and State Financial Services Corporation, a Wisconsin corporation           (the “Company”),
are entering into an Agreement and Plan of Merger           (the “Merger Agreement”)
on this 21st day of March, 2005, which,           subject to the terms and conditions
contained in the Agreement, contemplates the           merger (the “Merger”) of
the Company with and into Associated.           Capitalized terms not expressly defined
in this Agreement shall have the           meanings given to them in the Merger
Agreement.  

        B.       The
Company and the Executive are parties to a Key Executive Employment and
          Severance Agreement (the “Employment Agreement”) under which the
          parties to such Employment Agreement have certain rights and obligations.  

        C.       The
Executive participates in various welfare benefit and retirement benefit           plans
of the Company and State Financial Bank, National Association (the           “Company
Bank”) under which the Executive has certain rights and           benefits.  

        D.       Associated
and Associated Bank, National Association (“Associated           Bank”) wish to
resolve all of the employment related issues with respect to           the Executive and
to assure that the Executive’s services are available to           Associated and
Associated Bank for post-merger transition and beyond.  

AGREEMENTS  

        In
consideration of the recitals and other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties hereby agree as follows:  

        1.       Employment
Agreement. The Executive and Associated Bank will enter into           the Employment
Agreement in the form attached hereto as Exhibit A immediately           prior to the
Effective Time, to be effective as of the Effective Time, under           which Executive
agrees to the terms and conditions of his employment by           Associated Bank
following the Effective Time.  

        2.       Noncompetition
Agreement. The Executive and Associated will enter into           the Noncompetition
Agreement in the form attached hereto as Exhibit B           immediately prior to the
Effective Time, to be effective as of the Effective           Time, under which Executive
agrees to refrain from competition with Associated           under the limitations
provided for under the Noncompetition Agreement.  

        3.       Separation
Agreement and General Release. The Executive, Associated, the           Company and
the Company Bank will enter into the Separation Agreement and           General Release
in the form attached hereto as Exhibit C immediately prior to           the Effective
Time, to be effective as of the Effective Time.  

        4.       Binding
Effect. This Agreement shall be binding upon and inure to the           benefit of
the parties hereto, the successors and permitted assigns of           Associated,
Associated Bank, the Company and the Company Bank, and the           Executive’s
heirs and legal representatives.  

        5.       Amendment.
This Agreement may be amended only by a written instrument           executed by the
parties hereto or their respective successors, assigns, heirs or           legal
representatives, as applicable.  

        6.       Governing
Law. This Agreement shall be governed by and construed in           accordance with
the internal laws of the State of Wisconsin.  

[Remainder of page
intentionally left blank. Signature page to follow.] 

2 

        IN
WITNESS WHEREOF, the parties hereto have executed this Agreement on the date first above
written.  

		ASSOCIATED BANC-CORP

		BY   	/s/ Paul S. Beideman

		    Its   	President

		ASSOCIATED BANK, NATIONAL ASSOCIATION

		BY   	/s/ Paul S. Beideman

		    Its   	President

		STATE FINANCIAL SERVICES CORPORATION

		BY   	/s/ Michael J. Falbo

		    Its   	Chrisman and CEO

		STATE FINANCIAL BANK, NATIONAL ASSOCIATION

		BY   	/s/ Michael J. Falbo

		    Its   	Chairman and CEO

		
		/s/ Robert J. Cera

		ROBERT J. CERA

3 

EXHIBIT A
to Executive Service
and Settlement Agreement 

EMPLOYMENT AGREEMENT 

        THIS
EMPLOYMENT AGREEMENT is made as of __________, 2005, between ASSOCIATED BANK, NATIONAL
ASSOCIATION, its successors and assigns (the “Bank”) and ROBERT J. CERA (the
“Executive”). 

RECITALS 

        The
Bank and the Executive acknowledge the following: 

    A.                     The
Executive has valuable expertise and experience in the Bank’s business
          which will enable him to provide valuable business and management services to
          the Bank.  

    B.                     The
Bank desires to employ the Executive and the Executive desires to accept           such
employment on the terms and conditions set forth in this Agreement.  

    C.                     The
Executive’s employment is expressly conditioned upon entering into this
          Agreement and the Bank will not employ the Executive absent his execution of
          this Agreement.  

AGREEMENTS 

        In
consideration of the mutual covenants and agreements set forth in this Agreement, the
parties agree as follows: 

    1.           Employment.
The Bank employs the Executive and the Executive accepts           employment with the
Bank on the terms and conditions set forth in this           Agreement.  

    2.           Term.
The term of the Executive’s employment shall commence on the           date of this
Agreement and continue for a period of 3 years unless sooner           terminated in
accordance with the terms hereof (the “Employment           Period”).  

    3.           Duties.
The Executive shall serve as Senior Vice President of the Bank           and will, under
the direction of an executive officer of the Bank, faithfully           and to the best
of his ability perform the duties assigned to him from time to           time. The
Executive agrees to devote his entire business time, effort, skill and
          attention to the discharge of such duties while employed by the Bank.  

    4.           Compensation.
The Executive shall receive a base salary of $260,000 per           year (“Base
Salary”), which will be payable in regular installments in           accordance with
the Bank’s regular payroll practices and which will be           subject to ordinary
tax withholding and all required deductions. Except as           otherwise provided, the
Bank’s obligation to pay Base Salary shall           terminate upon termination of
this Agreement.  

    5.           Benefits.  

        (a)           Insurance.
The Executive shall be eligible to participate in any group           health, dental, or
other group insurance plan offered by the Bank to its           executive employees,
subject to the terms, provisions and limitations of such           plans or programs,
during the Employment Period. The Executive shall pay any           required employee
contribution for such plan.  

        (b)           Reimbursement
for Reasonable Business Expenses. The Bank shall reimburse           the Executive
for reasonable expenses incurred by him in connection with the           performance of
his duties pursuant to this Agreement, which are consistent with           the Bank’s
policies in effect from time to time, including, but not limited           to, travel
expenses, expenses in connection with seminars, professional           conventions or
similar professional functions and other reasonable business           expenses. The
Executive agrees to provide the Bank with receipts and/or           documentation
sufficient to permit the Bank to take its full business expense           deduction. The
Bank shall have no obligation to reimburse the Executive for           expenses claimed
for which reasonable documentation is not provided. Executive           shall be
reimbursed for dues and assessments for membership at private clubs for           which
Executive was being reimbursed by State Financial Services           Corporation, and
shall be provided with an automobile allowance under the           Bank’s automobile
reimbursement policy for similarly situated executives.           Furthermore, the
Executive shall have the option to purchase his current           automobile for fair
market value (i.e., Blue Book value).  

        (c)           Other
Benefits. Executive shall also be eligible to receive fringe           benefits and
to participate in any other retirement or welfare benefit plan or           program
generally offered by the Bank to its executive employees, subject to the           terms,
provisions and limitations of such plans or programs during the           Employment
Period. In addition, the Bank shall maintain a life insurance policy           insuring
the Executive’s life. Such policy such provide a lump sum payment           within
six months of the Executive’s death of $1.5 million. The Executive           shall
have the right to designate the beneficiary of the policy during the           period
ending on the earlier of termination of employment or such time as the
          Executive begins receiving benefits under any Supplemental Employee Retirement
          Plan sponsored by the Bank or any related entity. Executive’s memorandum
          balance under the State Financial Services Corporation Supplemental Executive
          Retirement Plan (“SFS SERP”) will be assumed or maintained by
          Bank as of the date of this Agreement and will continue to be credited with
          earnings at the rate credited under the Associated Banc-Corp Supplemental
          Executive Defined Contribution Plan (“Associated DC SERP”).
          Distribution options, with respect to the portion transferred to Executive,
will           be no less favorable to Executive than the SFS SERP, subject to any
changes           Bank deems necessary to conform to Internal Revenue Code section 409A.
The           death benefit under the Associated DC SERP (and the balance maintained
in           or transferred from the SFS SERP) is equal to the account balance.
          Executive understands that neither he nor any beneficiary has any right to the
          policy on his life owned by the SFS SERP or to the proceeds of such policy.
          Executive acknowledges and agrees that the Bank shall have complete and total
          discretion with respect to if, when and how the Bank will integrate the
          SFS SERP benefits with the Associated DC SERP benefits and what steps
          shall be taken with respect to either plan. The Bank shall also have the right
          to modify or amend any part of the SFS SERP or the Associated DC SERP
          as necessary to comply with Internal Revenue Code section 409A or related
          guidance.  

2 

    6.           Termination
of Employment.  

        (a)           Termination
of the Employment. The employment of the Executive shall be           terminated
before the end of the Employment Period (i) upon the Executive’s           death or
Disability; (b) upon the delivery to the Bank of the Executive’s           written
notice of resignation or (c) upon the delivery to the Executive of the           Bank’s
written notice of termination.  

        (b)           Definitions.  

		    (i)                     For
purposes of this Agreement, “Disability” shall mean a physical or
          mental sickness or any injury which renders the Executive incapable of
          performing the services required of him as an employee of the Bank and which
          does or may be expected to continue for more than 6 months during any 12-month
          period. The Board of Directors of the Bank and the Executive shall determine
the           existence of a Disability and the date upon which it occurred. In the event
of a           dispute regarding whether or when a Disability occurred, the matter shall
be           referred to a medical doctor jointly selected by the Board of Directors of
the           Bank and the Executive (or the Executive’s legal representative). In
the           event of their failure to agree upon such a medical doctor, the Board of
          Directors and the Executive (or the Executive’s legal representative)
shall           each select a medical doctor who together shall select a third medical
doctor           who shall make the determination. Such determination shall be conclusive
and           binding upon the parties hereto.  

		    (ii)                     For
purposes of this Agreement, “Cause” shall mean (i) the willful and
          continual failure of the Executive to substantially perform his duties for a
          period of not less than 30 days (exclusive of time off for vacation, PTO or
          other permitted leave) and shall not include any failure resulting from
          incapacity due to physical or mental illness; (ii) the diversion or attempted
          diversion by the Executive of business from the Bank for the Executive’s
          personal gain or benefit; (iii) the commission by the Executive of an act of
          dishonesty or moral turpitude involving the Bank; (iv) gross incompetence by
the           Executive in the performance of his duties hereunder; (v) gross negligence
by           the Executive involving the Bank; (vi) commission by the Executive of a
felony           or serious misdemeanor offense or pleading guilty or nolo contendere to
same;           (vii) willful misconduct by the Executive as determined in good faith by
the           Board of Directors of the Bank which results in a demonstrably material
injury           to the Bank; or (viii) a material breach by the Executive of any
provision of           this Agreement, the Noncompetition Agreement or the Separation
Agreement and           General Release between the parties of even date herewith. In the
event the Bank           seeks to terminate the Executive’s employment with the Bank
for Cause, the           Bank shall provide the Executive with a written notice stating
the facts and           circumstances constituting the Cause for such termination. If the
Executive           fails to cure or correct the facts and circumstances which constitute
such Cause           within 30 days of receipt of such notice, the Executive may be
terminated upon           the expiration of such 30-day period.  

        (c)                     For
purposes of this Agreement, the Executive shall have a “Good           Reason” for
termination of employment on or after the date of this           Agreement if the
Executive determines in good faith that any of the following           events has
occurred:  

3 

		    (i)                     any
material breach of this Agreement by the Bank, which the Bank fails to cure           or
correct within 30 days of receipt of written notice from the Executive           stating
the facts and circumstances for such material breach;  

		    (ii)                        a
material adverse change, without the Executive’s prior written consent,           in
the Executive’s working conditions or status with the Bank from such
          working conditions or status established as of the date of this Agreement,
          including but not limited to (A) a material adverse change in the nature or
          scope of the Executive’s titles, authority, powers, functions, duties,
          reporting requirements or responsibilities, or (B) a material reduction in the
          level of support services, staff, secretarial and other assistance, office
space           and accoutrements, but excluding for this purpose an isolated,
insubstantial and           inadvertent event not occurring in bad faith that the Bank
remedies promptly           after receipt of notice thereof given by the Executive;  

		    (iii)                        the
relocation of the Executive’s principal place of employment outside of
          Milwaukee County, Wisconsin without Executive’s prior consent;  

		    (iv)                        the
Bank requires the Executive to travel on Bank business to a materially           greater
extent than was required during the one-year period prior to the date of           this
Agreement (provided, however, that the Executive will periodically be           required
to travel to Green Bay, Wisconsin, which shall not constitute a Good           Reason for
termination).  

        (d)           Termination
by the Bank for Cause or Resignation by the Executive. In the           event of
termination of the Executive’s employment by the Bank for Cause or           the
resignation by the Executive, payments of the Executive’s Base Salary
          shall be prorated to the date of termination. The Bank shall have no further
          obligation to the Executive, except to the extent such obligations may be
          imposed by applicable law or under the terms of a Bank plan or program in which
          Executive is a participant.  

        (e)           Termination
Without Cause or for Good Reason. If the Executive’s           employment is
terminated by the Bank for any reason other than for Cause,           Disability or
death, or if this Agreement is terminated by the Bank for what the           Bank
believes is Cause and it is ultimately determined that the Executive was
          terminated without Cause, or the Executive terminates for Good Reason, the
          Executive shall receive his Base Salary for the remainder of the original 3
year           Employment Period and his spouse or other dependents shall be eligible
          for continued coverage under Bank’s health programs, at the same cost
          charged to active executive employees of Bank. The Bank shall have no further
          obligation to the Executive except to the extent such obligations may be
imposed           by applicable law or under the terms of a Bank plan or program in which
          Executive is a participant.  

        (f)           Termination
for Death or Disability. If the Executive’s employment           is terminated
for death or Disability of the Executive, the Executive shall           receive his Base
Salary for the remainder of the original 3 year Employment           Period (to be paid
to the Executive’s estate in the event of death), and           his spouse or other
dependents shall be eligible for continued coverage under           Bank’s health
programs at the same cost charged to active executive           employees of Bank. The
Bank shall have no further obligation to the Executive,           except to the extent
such obligations may be imposed by applicable law or under           the terms of a Bank
plan or program in which Executive is a participant.  

4 

    7.           Confidential
Information; Inventions and Improvements.  

        (a)           Confidential
Information. The parties agree information relating to the           Bank’s
business, including but not limited to customer lists, business           procedures and
operations, investments, employee compensation and other employee           information,
and other proprietary information (the “Confidential           Information”)
are established at great expense and provide the Bank with a           substantial
competitive advantage in conducting its business. The parties           further agree
that by virtue of the Executive’s employment with the Bank,           he will have
access to, and be entrusted with Confidential Information, and that           the Bank
would suffer great loss and injury if the Executive would disclose this
          information or use it to compete with the Bank. Therefore, the Executive agrees
          that during the Employment Period and thereafter (i) until such time as the
          Confidential Information becomes generally available to the public through no
          fault of the Executive, (ii) until such time as the Confidential Information no
          longer provides benefit to the Bank or (iii) for a period of two years after
the           expiration of the Employment Period, whichever occurs sooner, the Executive
will           not, directly or indirectly, in any capacity, use or disclose or cause to
be           used or disclosed, any Confidential Information.  

        (b)                     The
Executive will disclose to the Bank and upon the Bank’s request, assign           to
it, without charge, all of the Executive’s right, title and interest, if
          any, in and to any and all ideas, inventions, discoveries and improvements
which           the Executive may make or conceive, solely or jointly with others, during
the           Employment Period (collectively, the “New Developments”). Upon
request           by the Bank, whether during or subsequent to the Employment Period, the
          Executive will do any and all acts and execute and deliver such documents as
may           be deemed by the Bank or its counsel to be necessary or advisable to vest
in the           Bank all of the Executive’s right, title and interest in and to
such New           Developments and to apply and obtain domestic or foreign patents,
provided that           the expenses incurred in connection with the foregoing shall be
borne by the           Bank. If services in connection therewith are performed at the Bank’s
          request after the Employment Period, the Bank will pay the Executive reasonable
          compensation for such services. The term “New Developments” shall not
          include any ideas, inventions and discoveries which the Executive makes at his
          expense when not fulfilling his duties to the Bank hereunder and which are not
          related in any way to the Bank’s business.  

    8.           Common
Law of Torts and Trade Secrets. The parties agree that nothing in           this
Agreement shall be construed to limit or negate the statutory or common law           of
torts or trade secrets where it provides the Bank with broader protection           than
that provided herein.  

    9.           Specific
Performance. The Executive acknowledges and agrees that           irreparable injury
to the Bank may result in the event the Executive engages in           any act in
violation of the provisions of section 7 and that the remedy at law           for the
breach of any such covenant will be inadequate, the Executive agrees           that the
Bank shall be entitled, in addition to such other remedies and damages           as may
be available to it by law or under this Agreement, to injunctive relief           to
enforce the provisions of section 7 without the necessity of providing a           bond.  

    10.           Sale,
Consolidation or Merger. In the event of a sale of the stock of the           Bank,
or consolidation or merger of the Bank with or into another Bank or           entity, or
the sale of substantially all of the operating assets of the Bank to           another
Bank, entity or individual, the successor-in-interest shall be deemed to           have
assumed all liabilities of the Bank under this Agreement. It is agreed that           the
rights and obligations of the Executive may not be delegated or assigned           except
as specifically set forth in this Agreement.  

5 

    11.           Waiver.
The failure of either party to insist, in any one or more           instances, upon
performance of the terms or conditions of this Agreement shall           not be construed
as a waiver or a relinquishment of any right granted hereunder           or of the future
performance of any such term, covenant or condition.  

    12.           Notices.
Any notice to be given hereunder shall be deemed sufficient if           addressed in
writing and delivered by registered or certified mail or delivered           personally,
in the case of the Bank, to its principal business office and, in           the case of
the Executive, to his address appearing on the records of the Bank,           or to such
other address as he may designate in writing to the Bank.  

    13.           Severability.
In the event that any provision shall be held to be invalid           or unenforceable
for any reason whatsoever, it is agreed such invalidity or           unenforceability
shall not affect any other provision of this Agreement and the           remaining
covenants, restrictions and provisions hereof shall remain in full           force and
effect and any court of competent jurisdiction may so modify the           objectionable
provision as to make it valid, reasonable and enforceable.  

    14.           Complete
Agreement. Except as otherwise expressly set forth herein, this           document
and other agreements of even dates herewith, embody the complete           agreement and
understanding among the parties hereto with respect to the subject           matter
hereof and supersedes and preempts any prior understandings, agreements           or
representations by or among the parties, written or oral, which may have
          related to the subject matter hereof in any way.  

    15.           Amendment.
This Agreement may only be amended by an agreement in writing           signed by all of
the parties hereto.  

    16.           Governing
Law. This Agreement shall be governed by and construed in           accordance with
the laws of the State of Wisconsin, without reference to           principles of
conflicts of laws.  

    17.           Benefit.
This Agreement shall be binding upon and inure to the benefit of           and shall be
enforceable by and against the Bank, its successors and assigns and           the
Executive, his heirs, beneficiaries and legal representatives.  

[Remainder of page
intentionally left blank. Signature page to follow.] 

6 

IN WITNESS WHEREOF, the parties have
executed or caused this Employment Agreement to be executed as of the date first above
written. 

		ASSOCIATED BANK, NATIONAL ASSOCIATION
	

 	By: ________________________________
	
 	Its: ________________________________
	

 	______________________________________
		ROBERT J. CERA

7 

EXHIBIT B 
to Executive Service
and Settlement Agreement 

NONCOMPETITION AGREEMENT 

        THIS
NONCOMPETITION AGREEMENT (this “Agreement”), dated as of
_____________, 2005, is between ASSOCIATED BANC-CORP, a Wisconsin corporation
(“Associated”), and ROBERT J. CERA (the “Shareholder”). 

RECITALS 

         A.       
          Associated and State Financial Services Corporation, a Wisconsin corporation
          (the “Company”), are parties to an Agreement and Plan of Merger, dated
          as of March 21, 2005 (the “Merger Agreement”), pursuant to which
          the Company will be merged (the “Merger”) with and into Associated. 

         B.       
          The Shareholder owns shares of the issued and outstanding common stock of the
          Company and options to purchase common stock of the Company. The Company is the
          sole shareholder of State Financial Bank, National Association (the
          “Bank”). The Company (including Associated as successor to the Company
          pursuant to the Merger), the Bank and the other direct and indirect subsidiaries
          of the Company are collectively referred to in this Agreement as “State
          Financial.” 

         C.       
          State Financial is engaged in the business of providing financial services,
          including making loans and accepting deposits (the “Business”). 

         D.       
          The Shareholder acknowledges that he has (1) been an executive level employee of
          State Financial, (2) had access to confidential information of State Financial
          and (3) extensive experience and knowledge of the Business that he could use to
          compete with Associated (as successor to the Company) after the Effective Time
          of the Merger. 

         E.       
          Associated and the Shareholder acknowledge that the execution and delivery of
          this Agreement by the Shareholder is a condition to the obligation of Associated
          to consummate the transactions contemplated by the Merger Agreement. Associated
          and the Shareholder deem it to be in the best interest of all parties to limit
          the ability of the Shareholder to compete with State Financial after the date
          hereof as a result of the consummation of the transactions contemplated by the
          Merger Agreement. 

AGREEMENTS 

        In
consideration of the Recitals, the consideration paid to the Shareholder pursuant to the
Merger Agreement, and the mutual covenants and agreements set forth in this Agreement, the
parties agree as follows: 

         1.       
          Definitions. Capitalized terms not expressly defined in this Agreement
          shall have the meanings given to them in the Merger Agreement. For purposes of
          this Agreement: 

             (a)       
          “Customer” means any individual or entity to which State Financial
          provided products or services at any time during the two year period prior to
          the Effective Time of the Merger or which State Financial actively solicited for
          the purpose of providing products or services during the two year period prior
          to the Effective Time of the Merger. 

             (b)       
          “Confidential Information” means information, whether or not a trade
          secret, that is possessed by or developed for State Financial and that relates
          to State Financial’s business or technology, including but not limited to,
          Inventions, business plans and strategies, existing or proposed bids, technical
          or engineering developments, existing or proposed research projects, financial
          or business projections, investments, marketing plans and strategies, pricing
          and cost information, negotiation strategies, training information and
          materials, employee compensation and other employee information, customer or
          potential customer lists, customer purchasing history and information generated
          for customer engagements. Confidential Information also includes information
          received by the Shareholder from others, which the Shareholder has an obligation
          to treat as confidential, including all information obtained in connection with
          customer engagements. Confidential Information shall not include information
          that is generally known to the public as of the date of this Agreement. 

             (c)       
          “Inventions” mean all inventions, original works of authorship,
          developments, concepts, improvements, designs, discoveries, ideas, processes,
          techniques, formulae, trademarks, data and other intellectual property other
          than trade secrets (whether or not protectible under intellectual property laws
          or similar laws) made solely by the Shareholder (or jointly with others) while
          the Shareholder owned any interest in the Company or during the
          Shareholder’s employment with State Financial that (i) relate to State
          Financial’s business services or activities; (ii) were developed or
          conceived in connection with the Shareholder’s ownership of any interest in
          State Financial or the Shareholder’s employment State Financial; or
          (iii) were developed or conceived using the assets of State Financial. 

2 

             (d)       
          “Noncompete Period” means the period starting on the date of the
          Effective Time of the Merger and ending on the second anniversary of such date. 

             (e)       
          “Territory” means the counties in which the Company or any of the
          Company Subsidiaries has an office as of the date of this Agreement (including
          any branch of the Bank). 

         2.       
          Consideration; Acknowledgments by the Shareholder. The Shareholder shall
          receive 24 equal monthly payments of $25,000 during the Noncompete Period
          in exchange for agreeing to the terms of this Agreement (the “Noncompete
          Payments”). The Shareholder acknowledges and agrees that: (a) the
          benefits and consideration he will receive as a result of the consummation of
          the transactions contemplated by the Merger Agreement constitute adequate and
          sufficient consideration for their covenants contained in this Agreement;
          (b) Associated would not consummate the transactions contemplated by the
          Merger Agreement if the Shareholder did not agree to be bound by the provisions
          contained in this Agreement; (c) the covenants contained herein are being
          entered into in the connection with the acquisition of State Financial by
          Associated and not in connection with employment or other principal-agent
          relationship; (d) the provisions of sections 3, 4, 5, 6 and 7 of this
          Agreement are reasonable and necessary to protect and preserve State Financial;
          and (e) Associated would be irreparably damaged if the Shareholder were to
          breach the covenants set forth in sections 3, 4, 5, 6 or 7 of this
          Agreement. In the event of the death of the Shareholder, Associated shall
          continue to pay to the estate of the Shareholder the Noncompete Payments during
          the Noncompete Period. Associated may prepay such payments without penalty. 

         3.       
          Confidential Information. 

             (a)       
          The Shareholder acknowledges and agrees that the Confidential Information is the
          property of State Financial, has been established and maintained at great
          expense, and is of great value to State Financial. Therefore, the Shareholder
          agrees that he will not, directly or indirectly, in any geographic territory
          where his use or disclosure of the Confidential Information could harm
          Associated or State Financial, disclose to any unauthorized persons or use for
          his own benefit or for the benefit of any third party any Confidential
          Information without Associated’s prior written consent, until the earlier
          of (a) the end of the Noncompete Period, (b) such time as the Confidential
          Information no longer provides a benefit to State Financial, or (c) the
          date the Confidential Information is or becomes generally known to and available
          for use by the public other than by the Shareholder’s fault or the fault of
          any other person bound by a duty of confidentiality to Associated or State
          Financial. The Shareholder agrees to deliver to Associated at the time of
          execution of this Agreement, and at any other time Associated may request, all
          tangible copies of, and destroy all digital copies of (certifying to Associated
          in writing such destruction or delivery), all documents, memoranda, notes,
          plans, records, reports, and other documentation, models, components, devices,
          or computer software (and all copies of all of the foregoing), relating to State
          Financial and any other Confidential Information that the Shareholder may then
          possess or have under his control. 

3 

             (b)       
          To the extent that he has not already done so, the Shareholder hereby assigns to
          Associated all of the Shareholder’s right, title and interest in and to any
          and all Inventions and trade secrets, whether or not patentable or registrable
          under copyright or similar laws, (i) which the Shareholder may solely or
          jointly have conceived, developed or reduced to practice, or caused to be
          conceived, developed or reduced to practice, during the Shareholder’s
          employment with State Financial or (ii) which the Shareholder may solely or
          jointly have conceived, developed or reduced to practice, or caused to be
          conceived, developed or reduced to practice on behalf of or at the request of
          State Financial while the Shareholder owned any interest in State Financial but
          was not an employee of State Financial. The Shareholder agrees to take such
          additional actions and execute such additional documents as may be necessary or
          appropriate to effectuate the foregoing assignments. The Shareholder further
          acknowledges that all original works of authorship which were made by the
          Shareholder (solely or jointly with others) within the scope of and during the
          period of the Shareholder’s employment with State Financial or which were
          made by the Shareholder (solely or jointly with others) on behalf of or at the
          request of State Financial while the Shareholder owned any interest in State
          Financial but was not an employee of State Financial and which are protectable
          by copyright are “works made for hire,” as that term is defined in the
          United States Copyright Act. 

         4.       
          Noncompetition. During the Noncompete Period, the Shareholder will not,
          directly or indirectly, either individually or as an employee, officer,
          director, advisory board member, principal, agent, partner, owner, trustee,
          beneficiary, co-venturer, distributor, consultant or in any other capacity,
          (i) participate in, become associated with, provide assistance to, engage
          in, or have a financial or other interest in any business, activity, enterprise
          or entity, which competes within the Territory with the Business or any other
          business of State Financial that relates or is complementary or supplemental to
          the Business or (ii) advertise, promote or otherwise endorse any third
          party products and/or services which compete within the Territory with the
          Business or any other business of State Financial that relates or its
          complimentary or supplemental to the Business; provided, that the ownership of
          less than a 1% interest in an entity whose securities are traded in a recognized
          stock exchange or traded in the over-the-counter market, even though that entity
          competes with the Business, shall not be deemed in itself to be a breach of this
          section 4. 

4 

         5.       
          Customers. During the Noncompete Period, the Shareholder will not,
          directly or indirectly, either individually or as an employee, officer,
          director, advisory board member, principal, agent, partner, owner, trustee,
          beneficiary, co-venturer, distributor, consultant or in any other capacity,
          canvass, contact, solicit or do business with any Customer for the purpose of
          providing products or services similar to or competitive with those provided by
          State Financial; provided, that the ownership of less than a 1% interest in an
          entity whose securities are traded in a recognized stock exchange or traded in
          the over-the-counter market, even though that entity is a competitor of State
          Financial, shall not be deemed in itself to be a breach of this section 5. 

         6.       
          Relations with Suppliers and Vendors. During the Noncompete Period, the
          Shareholder will not, directly or indirectly, cause, request, or advise any
          supplier or vendor of State Financial to curtail or cancel its business with
          State Financial. 

         7.       
          Relations with Employees. During the Noncompete Period, the Shareholder
          will not, directly or indirectly, induce or attempt to induce any employee,
          officer, director, sales or other representative, consultant, independent
          contractor or other agent of State Financial who had a relationship with State
          Financial prior to the Effective Time of the Merger to terminate his, her or its
          relationship with State Financial or breach his, her or its agreements with
          State Financial. 

         8.       
          Remedies. If the Shareholder breaches the covenants set forth in
          Sections 3, 4, 5, 6 or 7 of this Agreement, Associated will be entitled to
          the following remedies: 

             (a)       
          Money damages from the Shareholder. 

             (b)       
          In addition to its right to money damages and any other rights it may have, to
          obtain injunctive or other equitable relief to restrain any breach or threatened
          breach or otherwise to specifically enforce the provisions of Sections 3,
          4, 5, 6 and 7 of this Agreement, it being agreed that money damages alone would
          be inadequate to compensate Associated and would be an inadequate remedy for
          such breach. 

             (c)       
          The rights and remedies of Associated are cumulative and not alternative. 

         9.       
          Trade Secrets. The parties agree that nothing in this Agreement shall be
          construed to limit or negate any common or statutory law regarding torts or
          trade secrets where it provides Associated with broader protection than that
          provided herein. The Shareholder shall take all steps that are reasonably
          necessary to prevent unauthorized misappropriation or disclosure of State
          Financial’s trade secrets and shall not use or disclose any of State
          Financial’s trade secrets as long as they remain trade secrets. 

5 

         10.       
          Successors and Assigns. This Agreement will be binding upon the parties
          and will inure to the benefit of the parties and their respective affiliates,
          successors and assigns. 

         11.       
          Waiver. Neither the failure nor any delay by any party in exercising any
          right, power or privilege under this Agreement will operate as a waiver of such
          right, power or privilege, and no single or partial exercise of any such right,
          power or privilege will preclude any other or further exercise of such right,
          power or privilege or the exercise of any other right, power or privilege. To
          the maximum extent permitted by applicable law: (a) no claim or right
          arising out of this Agreement can be discharged by one party, in whole or in
          part, by a waiver or renunciation of the claim or right unless in writing signed
          by the other party; (b) no waiver that may be given by a party will be
          applicable except in the specific instance for which it is given; and
          (c) no notice to or demand on one party will be deemed to be a waiver of
          any obligation of such party or of the right of the party giving such notice or
          demand to take further action without notice or demand as provided in this
          Agreement. 

         12.       
          Governing Law. This Agreement shall be governed by and construed and
          interpreted in accordance with the laws of the State of Wisconsin, without
          reference to principles of conflict of laws. 

         13.       
          Severability. Whenever possible each provision and term of this Agreement
          will be interpreted in a manner to be effective and valid but if any provision
          or term of this Agreement is held to be prohibited by law or otherwise invalid,
          then such provision or term will be ineffective only to the extent of such
          prohibition or invalidity, without invalidating or affecting in any manner
          whatsoever the remainder of such provision or term or the remaining provisions
          or terms of this Agreement. If any of the covenants set forth in section 3,
          4, 5, 6 or 7 of this Agreement are held to be unreasonable, arbitrary, or
          against public policy, such covenants may be modified by a court of competent
          jurisdiction, with respect to scope, time, and geographic area, and in such
          lesser scope, time and geographic area, will be effective, binding and
          enforceable against the Shareholder. 

         14.       
          Counterparts. This Agreement may be executed by facsimile and in one or
          more counterparts, each of which will be deemed to be an original copy of this
          Agreement and all of which, when taken together, will be deemed to constitute
          one and the same agreement. 

         15.       
          Section Headings; Construction. The headings of sections in this
          Agreement are provided for convenience only and shall not affect this
          Agreement’s construction or interpretation. All references to
          “section” or “sections” refer to the corresponding section
          or sections of this Agreement unless otherwise specified. All words used in this
          Agreement will be construed to be of such gender or number as the circumstances
          require. Unless otherwise expressly provided, the word “including”
          does not limit the preceding words or terms. This Agreement was jointly drafted
          by the parties hereto and no rule of strict construction shall be applied versus
          either party. 

6 

         16.       
          Notices. All notices and other communications among the parties shall be
          in writing and shall be deemed to have been duly given (a) when delivered
          in person; (b) one day after delivery to a reputable overnight courier
          service; (c) five days after posting in the United States mail having been
          sent registered or certified mail return receipt requested; or (d) when
          delivered by facsimile, and promptly confirmed by delivery in person or post as
          aforesaid in each case, with postage prepaid, addressed as follows: 

if to Associated: 

	 	
Associated
Banc-Corp                   
1200 Hansen Road                   
Green Bay, WI 54304
                  
Attention:  Brian R. Bodager, Chief Administrative Officer, General

Counsel and Corporate                   Secretary                   
Facsimile:
 920-491-7010 

with a copy to: 

	 	
Reinhart
Boerner Van Deuren s.c.                   
1000 North Water Street, Suite 2100
                  
Milwaukee, WI 53202                   
Attention:  James M. Bedore, Esq.
                  
Facsimile:  414-298-8097 

if to the Shareholder: 

	 	
Robert
J. Cera                   
__________________                   
__________________
                  
Facsimile:  (___) ____-_________ 

7 

with a copy to: 

	 	
Jay
O. Rothman                   
Foley & Lardner LLP                   
777 East Wisconsin
Avenue                   
Milwaukee, WI 53202                   
Facsimile:  (414) 297-4900 

or to such other address or addresses
as the parties may from time to time designate in writing. 

         18.       
          Entire Agreement. This Agreement constitutes the entire agreement between
          the parties with respect to the subject matter of this Agreement and supersede
          all prior written and oral agreements and understandings between the parties
          with respect to the subject matter of this Agreement. This Agreement may not be
          amended except by a written agreement executed by the party to be charged with
          the amendment. 

[Remainder of page
intentionally left blank. Signature page to follow.] 

8 

        IN
WITNESS WHEREOF, the parties have executed and delivered this Agreement as of the date
first above written. 

		ASSOCIATED
	
 	ASSOCIATED BANC-CORP
	

 	BY  _____________________________
		        (signature)
	
	        _____________________________
		        (print name)
	
 	        _____________________________
		        (title)
	

 	THE SHAREHOLDER
	
 	_____________________________________
		ROBERT J. CERA

9 

EXHIBIT C 
to the Executive
Service and Settlement Agreement 

SEPARATION AGREEMENT
AND GENERAL RELEASE 

        THIS
SEPARATION AGREEMENT AND GENERAL RELEASE is entered into as of ________, 2005 among
ASSOCIATED BANC-CORP, a Wisconsin corporation (“Associated”), STATE FINANCIAL
SERVICES CORPORATION, a Wisconsin corporation (the “Company”), STATE FINANCIAL
BANK, NATIONAL ASSOCIATION (the “Bank”), and ROBERT J. CERA (the
“Executive”). 

RECITALS 

        The
parties acknowledge the following: 

         A.       
          The Company and the Executive are parties to a Key Executive Employment and
          Severance Agreement dated as of __________ attached hereto as
          Schedule 1 (the “Employment Agreement”). 

         B.       
          The Company and Associated have entered into an Agreement and Plan of Merger,
          dated as of March 21, 2005 (the “Merger Agreement”), which
          contemplates the merger (the “Merger”) of the Company with and into
          Associated. 

         C.       
          Associated desires that the Company, the Bank and the Executive effect a final
          resolution and settlement of all matters and issues relating directly or
          indirectly to the Employment Agreement and the Executive’s employment with
          the Company and the Bank and his separation from that employment prior to the
          effective time of the Merger. 

AGREEMENTS 

        In
consideration of the Recitals and mutual agreements which follow, the parties agree as
follows: 

    1.              Effective
Time. This Agreement shall become effective only upon                consummation of
the Merger and upon such consummation shall have the same                effective time (“Effective
Time”) as the Merger.  

    2.              Termination
of Employment Agreement. As of the Effective Time, the                Employment
Agreement and all of the respective rights and obligations of the                Company,
the Bank, and the Executive thereunder shall cease and terminate. The
               Executive acknowledges and agrees that he is not entitled to any further
               compensation or payment pursuant to the terms of the Employment Agreement.  

    3.              Acknowledgment
of Full Compensation. The Executive acknowledges and                agrees that he
received from the Company and the Bank all wages, fringe benefits
               (including without limitation by enumeration vacation pay, insurance
benefits,                retirement and pension benefits, stock options, severance pay,
bonus payments,                and expense reimbursement) and all other compensation owed
by the Company and                the Bank to the Executive through and including the
date of this Agreement. The                Executive further confirms that he is not
entitled to any further compensation                arising out of his employment.  

    4.               Consideration.
Conditioned upon the Executive’s execution of this                Agreement and his
return of this Agreement to the Company expiration of the                seven-day
revocation period without revocation, and the Executive’s                properly
executing and returning the attached acknowledgment form to the Company
               (in the form attached hereto as Schedule 2) indicating his decision
not to                revoke this Agreement, the Executive shall receive a lump sum cash
payment of                $662,031, less ordinary tax withholding and all required
deductions. Such cash                payment shall be made within 10 days of the date
hereof. Such cash payment shall                not be deemed “compensation” for
purposes of any of either the Company                or the Bank’s qualified
retirement plans or other benefit programs, and                payment of this severance
pay does not entitle the Executive to any retirement                plan contributions by
the Company and the Bank for the Executive’s benefit                or account.  

    5.              Non-Admission
of Liability. Neither this Agreement nor any action taken                by the
Company or the Bank pursuant to it shall in any way be construed as an
               admission by the Company or the Bank of any liability, wrongdoing, or
violation                of law, regulation, contract or policy regarding any of the
Company or the                Bank’s decisions and actions regarding the employment
or separation from                employment of the Executive or termination of the
Employment Agreement.  

    6.              Release.
Except as specifically provided in this Section or                Section 16 of this
Agreement, for valuable consideration from the Company                and the Bank as
stated above, the Executive, for himself and his heirs, personal
               representatives, successors and assigns, hereby releases all claims of
whatever                nature that he may have against the Company or the Bank, their
respective                affiliates, subsidiaries, predecessors, successors and assigns
and their                respective present, former or later insurers, agents,
representatives, officers,                administrators, directors, principals and
employees (collectively                “Releasees”), which arise out of or are
in any manner based upon or                related to the employment relationship between
the Executive, the Company or the                Bank, and his separation from the
Company and the Bank, and from all other                claims or liabilities of any
nature whatsoever which have arisen from any                occurrence, transaction,
omission or communication which transpired or occurred                at any time before
or on the date of this Agreement; provided, however, that                this Agreement
will not prevent any party from asserting a claim against the                other party
in the event the other party breaches this Agreement. In addition,                this
waiver and release is not intended to affect Executive’s rights to
               indemnification pursuant to the Company’s Articles of Incorporation
and                By-Laws as in effect on March 21, 2005, or under applicable law.  

2 

        Except
as specifically provided in this Section or Section 16 of this Agreement, without
limitation, the Executive specifically releases, waives and forever discharges the
above-listed entities and persons from and against all liabilities, claims, actions,
demands, damages and costs of every nature, whether known or unknown, asserted or
unasserted, which arise under the Wisconsin Fair Employment Act; Wisconsin wage and hour
laws; Title VII of the Civil Rights Act of 1964, as amended; the Age Discrimination in
Employment Act (29 U.S.C. § 621, et seq.); the Americans With Disabilities
Act; the Fair Labor Standards Act; the Equal Pay Act; state or federal parental, family
and medical leave acts; or arising under any other local, state or federal statute,
ordinance, regulation or order, or which involve a claim or action for wrongful discharge,
breach of contract (express or implied) and/or any other tort or common law cause of
action. This waiver and release does not affect those rights or claims that arise after
the execution of this Agreement. 

         7.       
          No Pending Matters. The Executive warrants and represents that he has not
          filed any pending complaint, charge, claim or grievance concerning his
          compensation, separation from employment or terms and conditions of employment
          against the Company or the Bank with any local, state or federal agency, court
          or commission, and that if any agency, commission or court assumes jurisdiction
          of any such complaint or charge on behalf of the Executive relating to the
          claims released in Section 6, he will request that agency, commission, or
          court to dismiss such proceeding. 

         8.       
          Binding Agreement. This Agreement shall be binding upon the Executive and
          upon his heirs, administrators, representatives, executors, successors and
          assigns and shall inure to the benefit of the Releasees and to their respective
          heirs, administrators, representatives, executors, successors and assigns. 

         9.       
          Severability. It is understood and agreed that the provisions of this
          Agreement shall be deemed severable, and the invalidity or unenforceability of
          any one or more of the provisions herein shall not affect the validity and
          enforceability of the other provisions herein. 

3 

         10.       
          Complete and Exclusive Agreement. The parties understand and agree that
          this Agreement is final and binding and constitutes the complete and exclusive
          statement of the terms and conditions of separation, that no representations or
          commitments were made by the parties to induce this Agreement other than as
          expressly set forth herein. This Agreement may not be modified or supplemented
          except by a subsequent written agreement signed by the party against whom
          enforcement is sought. 

         11.       
          Consideration Period. The Executive represents that he has had the
          opportunity and time to consult with legal counsel concerning the provisions of
          this Agreement and that he has been given up to 21 days to consider this
          Agreement. 

         12.       
          Further Assurances. The parties hereto shall take such additional actions
          and execute and deliver such additional documents as may be reasonably necessary
          or desirable to consummate the transactions contemplated by this Agreement. 

         13.       
          Governing Law. This Agreement shall be governed by, and construed in
          accordance with, the laws of the State of Wisconsin, without reference to
          principles of conflicts of law. 

         14.       
          Acknowledgment. The undersigned parties acknowledge and agree that they
          have carefully read this Agreement, that a copy of this Agreement was available
          to them prior to execution, that they understand its contents including its
          release of claims, that they have been given the opportunity to ask any
          questions concerning this Agreement and its contents, and that they have signed
          this Agreement as their free and voluntary act. 

         15.       
          Cooperation. The Executive shall make all reasonable efforts to cooperate
          with the Company, the Bank and all of their respective successors and assigns in
          preventing and defending against the application of any tax imposed pursuant to
          Section 4999 of the Internal Revenue Code. Such efforts shall include, but
          not be limited to, the following: 

        (a)                             In
reporting and paying the Executive’s federal, state and local income tax
               on the payments or value of any benefits provided under this Agreement,
the                Executive shall be obligated to report to any applicable taxing
authority in                accordance with the directions of Associated, which
directions shall be                consistent with applicable law and this Agreement.  

4 

        (b)                             The
Executive shall not agree or consent to any tax assessment by any taxing
               authority that is inconsistent with a reporting position directed under
Section                15(a) above, without the written approval of Associated.  

        (c)                             The
Executive shall allow Associated, at its option (and at Associated’s
               expense), to control and defend against any tax audit that purports to
subject                any payment described in this Agreement to tax under Section 4999
of the                Internal Revenue Code.  

         16.       
          Non-Applicability to Certain Benefits. Notwithstanding anything in this
          Agreement to the contrary, this Agreement shall not apply to: 

             (a)       
          Benefit Plans. Any claims for benefits: (i) pursuant to any
          retirement benefit plan maintained by the Company or the Bank and that is
          intended to be a tax-qualified plan under Section 401 of the Internal
          Revenue Code (including the lump-sum payment features); (ii) pursuant to
          the terms of any medical plan of the Bank with respect to claims;
          (iii) pursuant to the supplemental executive retirement plan maintained by
          the Bank; (iv) for vacation which has accrued as of the Effective Time; (v) any
          benefits due under the Welfare Benefit Plans of the Company or Bank set forth on
          Schedule 2.10 of the Merger Agreement; (vi) wages due and unpaid as of the
          Effective Time in accordance with the Company’s standard payroll policies;
          or (vii) any unreimbursed business expenses properly incurred prior to the
          Effective Time and unpaid as of the Effective Time. 

             (b)       
          Options. The Executive currently holds options with respect to a total of
          93,408 shares. Such options shall be cashed-out in accordance with Section 1.10
          of the Merger Agreement. The following schedule identifies the grant date of
          each option, the exercise price, the number of shares, the current expiration
          date to which the option is subject, and the type of option (ISO or NQSO). 

	Date of Grant	Option Price	Number of

Shares	Expiration Date	Type of Option
	02/28/02	$13.00	1,540	02/28/07	NQSO
	02/28/02	$13.00	8,078	02/28/09	NQSO
	02/28/02	$13.00	5,770	02/28/12	NQSO
	01/31/03	$18.69	5,350	01/31/13	ISO
	01/31/03	$18.69	17,860	01/31/13	NQSO
	02/03/04	$27.00	3,703	02/03/14	ISO
	02/03/04	$27.00	27,177	02/03/14	NQSO
	01/31/05	$29.719	3,364	01/31/15	ISO
	01/31/05	$29.719	20,566	01/31/15	NQSO

5 

        All
options shall continue to be subject to the terms of the Company Stock Option Plan under
which they were respectively issued, as amended, except as otherwise agreed to and
provided in the Merger Agreement and the Option Conversion Agreement contemplated by
Section 1.10 of the Merger Agreement. 

[Remainder of page
intentionally left blank. Signature page to follow.] 

6 

        IN
WITNESS WHEREOF, the parties herein executed this Separation Agreement and General Release
as of the date appearing next to their signatures. 

		ASSOCIATED BANC-CORP
	
Date:____________________	BY____________________________________________
		        Its________________________________________
	

 	STATE FINANCIAL SERVICES CORPORATION
	
Date:____________________	BY____________________________________________
		        Its________________________________________
	

 	STATE FINANCIAL BANK, NATIONAL ASSOCIATION
	
Date:____________________	BY____________________________________________
		        Its________________________________________

CAUTION: THIS IS A
RELEASE. THE COMPANY AND THE BANK HEREBY ADVISES THE EXECUTIVE TO CONSULT WITH AN
ATTORNEY AND READ IT BEFORE SIGNING. THIS AGREEMENT MAY BE REVOKED IN WRITING BY THE
EXECUTIVE WITHIN SEVEN DAYS OF HIS EXECUTION OF THE DOCUMENT.  

	Dated: ___________________	______________________________
		ROBERT J. CERA

7 

SCHEDULE 1 

[Employment Agreement
between the Company and Executive] 

SCHEDULE 2 

SEVEN DAY RIGHT TO
REVOCATION
ACKNOWLEDGMENT FORM  

        I,
ROBERT C. CERA, hereby acknowledge that State Financial Services Corporation and State
Financial Bank, National Association each has tendered a Separation Agreement and General
Release offer which I voluntarily agreed to accept on ______________, 2005, a date at
least seven days prior to today’s date. 

        I
certify that seven calendar days have elapsed since my voluntary acceptance of the
above-referenced offer (i.e., seven days have elapsed since the above date), and
that I have voluntarily chosen not to revoke my acceptance of the above-referenced
Separation Agreement and General Release. 

	 	        Signed
this ____ day of _____________, 2005 at ___________, ___________. 

		______________________________
		ROBERT J. CERA

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00081-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00081-of-00352.parquet"}]]