Document:

Acquisition Agreement

Exhibit 10(ii) 
ACQUISITION AGREEMENT 
 
THIS ACQUISITION AGREEMENT (the “Agreement”) is entered into as of December 30, 2002 by and among Eagle Capital, LLC, a
Missouri limited liability company (“Purchaser”), Marshall & Ilsley Corporation, a Wisconsin corporation (“M&I”), and Mississippi Valley Capital Company, a Missouri corporation (“MVCC”),
(hereinafter M&I and MVCC are collectively referred to as “Seller”). 
 
RECITALS 
 
WHEREAS, M&I is (i) the owner of an equity investment in Hillstreet Fund II (the “Investment”), and (ii) the sole limited partner in and owner of one hundred percent (100%) of the limited partnership interest
(“Partnership Interest”) in Eagle Fund I, L.P., a Missouri limited partnership (“Eagle Fund”); and 
 
WHEREAS, MVCC is the owner of certain assets, including but not limited to, one hundred percent (100%) of the membership interest (the
“LLC Interest”) in Eagle Fund, L.L.C., a Missouri limited liability company (“LLC”); and 
 
WHEREAS, Purchaser desires to purchase, and Seller desires to sell the Investment, all of the Partnership Interest and certain assets of
MVCC set forth herein, including the LLC Interest, upon the terms and conditions hereinafter set forth. 
 
NOW, THEREFORE, in consideration of the premises and the terms, conditions and mutual covenants herein contained, it is agreed as follows:

 

	1.	 	PURCHASE AND SALE; CLOSING 

 

	1.1	 	Purchase and Sale of Assets. Upon the terms and subject to the conditions set forth in this Agreement, at the Closing, Purchaser agrees to purchase from
Seller, and Seller agrees to sell to Purchaser, all of the assets described on Schedule 1.1 attached hereto (the “Assets”). Notwithstanding anything herein to the contrary, the parties understand and agree that all equity
investments or other ownership interests of Eagle Fund in Bakers Footwear Group, Inc., Haystack Toy Company, Physicians Edge, Inc., and Partner Communications & Services, Inc. will be excluded from the sale and will be transferred to M&I in
the form of a partnership distribution on or prior to the Closing Date (the “Excluded Asset”). 

 

	1.2	 	Excluded Liabilities. Except for the liabilities and obligations specifically listed on Schedule 1.2 attached hereto (the “Assumed
Liabilities”), it is expressly understood that Purchaser shall not assume, pay or be liable for any liability or obligation of Seller, Eagle Fund or LLC of any kind or nature at any time existing or asserted, whether, known, unknown, fixed,
contingent or otherwise, including, but not limited to responsibilities and obligations of MVCC under written commitments to Thompson Street Capital Management LLC and Mortgage Acquisition Partners. 

 

	1.3	 	Purchase Price. The purchase price for the Assets will be equal to the aggregate book value of the Assets as set forth on Schedule 1.3 attached hereto (the
“Purchase Price”). The Purchase Price paid at Closing will be increased for any accrued and unpaid interest for the Assets from November 30, 2002 through the Closing Date or decreased for any accrued interest that is distributed
prior to Closing. 

 

	1.4	 	 Closing. Unless this Agreement shall have been terminated and the transactions herein contemplated shall have been abandoned pursuant to Section 8.1, and
subject to the satisfaction or waiver 

	 	 
of the conditions set forth in Article 6, the purchase and sale of the Assets (the “Closing”) will take place at 10:00 a.m.
local time on January 15, 2003 or, if later, the second business day immediately following the date on which the last of the conditions set forth in Article 6 hereof is satisfied or waived (the “Closing Date”), at the offices of
M&I, or at such other place and time as the parties shall agree. 

 

	1.5	 	Closing Obligations. At the Closing: 

 

	 	(a)	 	Seller will deliver to Purchaser: 

 

	 	(i)	 	a Bill of Sale, Assignment and Assumption Agreement, in the form attached hereto as Exhibit A; 

 

	 	(ii)	 	evidence that MVCC has changed its name (or the fully executed documentation required to change its name); and 

 

	 	(iii)	 	a certificate executed by Seller representing and warranting to Purchaser that (1) Seller has satisfied the conditions set forth in Section 6.2(a), and (2) Seller
has performed in all material respects each of the obligations under this Agreement required to be performed by it at or prior to the Closing Date. 

 

	 	(b)	 	Purchaser will deliver to Seller: 

 

	 	(i)	 	the Purchase Price; and 

 

	 	(ii)	 	a certificate executed by Purchaser representing and warranting to Seller that (1) Purchaser has satisfied the conditions set forth in Section 6.3(a), and (2)
Purchaser has performed in all material respects each of the obligations under this Agreement required to be performed by it at or prior to the Closing Date. 

 

	2.	 	REPRESENTATIONS AND WARRANTIES OF SELLER 

 
Seller represents and warrants to Purchaser as follows: 
 

	2.1	 	Organization and Capitalization. MVCC is a corporation organized under the laws of the State of Missouri, and based solely on a certificate from the Missouri
Secretary of State, dated December 11, 2002, MVCC is in good standing and has filed its most recent required annual report and has not filed articles of dissolution with the Missouri Secretary of State. Eagle Fund is a limited partnership organized
under the laws of the State of Missouri, and based solely on a certificate from the Missouri Secretary of State, dated December 11, 2002, in good standing under the laws of the State of Missouri. LLC is a limited liability company organized under
the laws of the State of Missouri, and based solely on a certificate from the Missouri Secretary of State, dated December 11, 2002, in good standing under the laws of the State of Missouri. LLC is the sole general partner of Eagle Fund, and M&I
is the sole limited partner of Eagle Fund. M&I is the lawful record and beneficial owner of all of the Partnership Interest and MVCC is the lawful record and beneficial owner of all of the LLC Interest. Since October 1, 2002, M&I has not
created or incurred any liens, title claims, encumbrances or security interests affecting any of the Assets, and to the best knowledge of Seller, since October 1, 2002, Seller has not received notice of any liens, title claims, encumbrances or
security interests affecting the Assets. Since October 1, 2002, neither MVCC, Eagle Fund nor LLC have filed articles of dissolution or a certificate of termination, as the case may be, with the Missouri Secretary of State.

 

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	2.2	 	Authority. Seller has all necessary corporate power and authority to execute and deliver this Agreement and to consummate the transactions contemplated
hereby. The execution, delivery and performance by Seller of this Agreement, and the consummation by Seller of the transactions contemplated hereby, have been, or will be, duly authorized by and approved by all necessary corporate action on the part
of Seller and, no other corporate action on the part of Seller is, or will be, necessary to authorize the execution and delivery by Seller of this Agreement and the consummation by it of the transactions contemplated hereby. This Agreement has been
duly executed and delivered by Seller and, assuming due and valid authorization, execution and delivery hereof by Purchaser, constitutes a valid and binding obligation of Seller, enforceable against it in accordance with its terms, except that such
enforceability (i) may be limited by bankruptcy, insolvency, moratorium or other similar laws affecting or relating to the enforcement of creditors’ rights generally and (ii) is subject to general principles of equity.

 

	2.3	 	Consents and Approvals; No Violations. 

 

	 	(a)	 	Except for the consents and approvals set forth in Section 2.3(a) of the Disclosure Schedule, no consents or approvals of, or filings, declarations or registrations
with, any United States federal administrative or regulatory agency or commission or other federal governmental authority or instrumentality are necessary for the consummation by Seller of the transactions contemplated hereby, other than such other
consents, approvals, filings, declarations or registrations that, if not obtained, made or given, would not reasonably be expected to have, in the aggregate, a material adverse effect on the Assets. 

 

	 	(b)	 	Neither the execution and delivery of this Agreement by Seller nor the consummation by Seller of the transactions contemplated hereby, nor compliance by Seller with
any of the terms or provisions hereof, will (i) conflict with or violate any provision of the articles of incorporation, bylaws or other organizational documents of Seller or (ii) assuming that the authorizations, consents and approvals referred to
in Section 2.3(a) are duly obtained in accordance with applicable law, (x) violate any applicable law, statute or regulation of the United States applicable to Seller or the Assets, (y) violate any statute code, ordinance, rule, regulation judgment,
order, writ, decree of injunction applicable to Seller or the Assets, or (z) violate, conflict with, result in the loss of any material benefit under, constitute a default (or an event which, with notice or lapse of time, or both, would constitute a
default) under, result in the termination of or a right of termination or cancellation under, accelerate the performance required by, or result in the creation of any lien upon any of the properties or assets of M&I under, any of the terms,
conditions or provisions of any note, bond, mortgage, indenture, deed of trust, license, lease, agreement or other instrument or obligation to which M&I is a party, or by which it or any of its respective properties or assets may be bound or
affected, except, in the case of clause (ii) above, for such violations, conflicts, breaches, defaults, losses, terminations of rights thereof, accelerations or lien creations which, in the aggregate, would not reasonably be expected to have a
material adverse effect. 

 

	2.4	 	Broker’s Fees. Neither Seller nor any of its respective officers or directors has employed any financial advisor, broker or finder or incurred any
liability for any broker’s fees, commissions or finder’s fees in connection with any of the transactions contemplated hereby. 

 

	2.5	 	Litigation. To the best knowledge of Seller, since October 1, 2002, there have been no claims, suits, actions, proceedings, arbitrations, or investigations
filed or threatened against or otherwise relating to or affecting any Asset or which would prevent or hinder the consummation of the transactions contemplated by this Agreement. To the best knowledge of Seller, since October 1, 2002, Seller has not
received notice of any judgment, order, decree, or other direction of any governmental entity which would affect any Asset or prevent or hinder the consummation of the transactions contemplated by this Agreement. 

 

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	2.6	 	Absence of Certain Changes. Since October 1, 2002, (i) no events have occurred which had, or could reasonably be expected to have a material adverse effect on
the Assets, and (ii) Seller has not taken any action that would be prohibited under Section 4.1 after the date of this Agreement. 

 

	2.7	 	Tax Returns and Tax Payments. 

 

	 	(a)	 	Since October 1, 2002, MVCC, Eagle Fund and their subsidiaries have filed any and all federal, state, local or foreign income tax returns, declarations, reports or
other statements required to be filed. All Taxes relating to MVCC, Eagle Fund and any of their subsidiaries in respect of periods beginning after October 1, 2002, if due and payable, have been timely paid. 

 

	 	(b)	 	As used in this Agreement, “Taxes” shall mean all taxes of any kind, including, without limitation, those on or measured by or referred to as
income, gross receipts, sales, use, ad valorem, franchise, profits, license, employment, withholding, value added, property or windfall profits taxes, customs, duties or similar fees, assessments or charges of any kind whatsoever, together with any
interest and any penalties, additions to tax or additional amounts imposed by any governmental authority, domestic or foreign. 

 

	3.	 	REPRESENTATIONS AND WARRANTIES OF PURCHASER 

 
Purchaser represents and warrants to Seller as follows: 
 

	3.1	 	Organization. Purchaser is a limited liability company duly organized, validly existing and in good standing under the laws of the State of Missouri, with all
requisite limited liability company power and authority to carry on the business in which it is engaged and to own the properties it owns. 

 

	3.2	 	Authority. The Purchaser has all necessary limited liability company power and authority to execute and deliver this Agreement and to consummate the
transactions contemplated hereby. The execution, delivery and performance by Purchaser of this Agreement, and the consummation of the transactions contemplated hereby, have been duly authorized and approved by all necessary action on the part of
Purchaser. This Agreement has been duly executed and delivered by Purchaser, and, assuming due and valid authorization, execution and delivery hereof by Seller, is a valid and binding obligation of Purchaser, enforceable against it in accordance
with its terms, except that such enforceability (i) may be limited by bankruptcy, insolvency, moratorium or other similar laws affecting or relating to the enforcement of creditors’ rights generally and (ii) is subject to general principles of
equity. 

 

	3.3	 	Consents and Approvals: No Violation. 

 

	 	(a)	 	Except for the consents and approvals set forth in Section 2.3(a) of the Disclosure Schedule, no consents or approvals of, or filings, declarations or registrations
with, any governmental entity are necessary for the consummation by Purchaser of the transactions contemplated hereby, other than such other consents, approvals, filings, declarations or registrations that, if not obtained, made or given, would not
reasonably be expected to have, in the aggregate, a material adverse effect. 

 

	 	(b)	 	 Neither the execution and delivery of this Agreement by Purchaser, nor the consummation by Purchaser of the transactions contemplated hereby, nor compliance by
Purchaser with any of the terms or provisions hereof, will (i) conflict with or violate any provision of the articles of organization or operating agreement of Purchaser, or (ii) assuming that the authorizations, consents and approvals referred to
in Section 2.3(a) are obtained, (x) violate any statute, code, ordinance, rule, regulation, judgment, order, writ, decree or injunction applicable to Purchaser or any of its respective properties or assets, or (y) violate, conflict with, result in
the loss of any material benefit under, constitute 

 

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a default (or an event which, with notice or lapse of time, or both, would constitute a default) under, result in the termination of or a
right of termination or cancellation under, accelerate the performance required by, or result in the creation of any lien upon any of the respective properties or assets of Purchaser under, any of the terms, conditions or provisions of any note,
bond, mortgage, indenture, deed of trust, license, lease, agreement or other instrument or obligation to which Purchaser is a party, or by which it or any of its respective properties or assets may be bound or affected, except, in the case of clause
(ii) above, for such violations, conflicts, breaches, defaults, losses, terminations of rights thereof, accelerations or lien creations which, in the aggregate, would not reasonably be expected to have a material adverse effect.

 

	3.4	 	Broker’s Fees. Neither Purchaser nor any of its respective officers or directors has employed any financial advisor, broker or finder or incurred any
liability for any broker’s fees, commissions or finder’s fees in connection with any of the transactions contemplated hereby. 

 

	4.	 	COVENANTS 

 

	4.1	 	Conduct of Businesses Prior to the Closing. Except as expressly contemplated or permitted by this Agreement, or as required by applicable law, rule or
regulation, during the period from the date of this Agreement through the Closing, unless Purchaser otherwise agrees in writing, MVCC and Eagle Fund shall, and shall cause their respective subsidiaries to, in all material respects, (i) conduct its
business in the usual, regular and ordinary course consistent with past practice and (ii) use all reasonable efforts to maintain and preserve intact its business organization and the goodwill of those having business relationships with it and retain
the services of its present officers and key employees. Without limiting the generality of the foregoing, and except as expressly contemplated or permitted by this Agreement, or as required by applicable law, rule or regulation, during the period
from the date of this Agreement through the Closing, MVCC and Eagle Fund shall not, nor shall they permit any of their respective subsidiaries to, without the prior written consent of Purchaser: 

 

	 	(a)	 	(i) except as set forth in Section 1.1 hereof, issue, sell, grant, dispose of, pledge or otherwise encumber, or authorize or propose the issuance, sale, disposition
or pledge or other encumbrance of (A) any its securities or rights convertible into, exchangeable for, or evidencing the right to subscribe for any of its securities, or any rights, warrants, option, calls, commitments or any other agreements of any
character to purchase or acquire any of its securities or rights convertible into, exchangeable for, or evidencing the right to subscribe for, any its securities or (B) any other securities in respect of, in lieu of, or in substitution for, any
shares of its capital stock outstanding on the date hereof; (ii) redeem, purchase or otherwise acquire, or propose to redeem, purchase or otherwise acquire, any of its outstanding securities; (iii) split, combine, subdivide or reclassify any shares
of its securities; or (iv) declare, set aside for payment or pay any dividend, or make any other actual, constructive or deemed distribution, in respect of any shares of its capital stock or otherwise make any payments to its stockholders or
partners in their capacity as such; 

 

	 	(b)	 	incur any indebtedness for borrowed money or guarantee any such indebtedness or make any loans, advances or capital contributions to, or investments in, any other
person; 

 

	 	(c)	 	sell, transfer, mortgage, encumber or otherwise dispose of any of its material properties or assets to any person other than a direct or indirect wholly owned
subsidiary, or cancel, release or assign any indebtedness to any such person or any material claims held by any such person, except in each case pursuant to contracts or agreements in force at the date of this Agreement; 

 

	 	(d)	 	 make any material acquisition or investment in a business either by purchase of stock or securities, merger or consolidation, contributions to capital, property
transfers, or purchases of 

 

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any property or assets of any other person, or purchase or enter into any agreement to purchase equipment, materials, supplies, or services
for a material amount; 

 

	 	(e)	 	amend its articles of incorporation, bylaws or similar governing documents; 

 

	 	(f)	 	change any material accounting principle used by it, except for such changes as may be required to be implemented following the date of this Agreement pursuant to
GAAP; 

 

	 	(g)	 	take any action that would, or is reasonably likely to, result in any of its representations and warranties in this Agreement becoming untrue, or in any of the
conditions to the consummation of the transactions contemplated hereby set forth in Article 7 not being satisfied; 

 

	 	(h)	 	except in the ordinary course of business and consistent with past practice, make any tax election or settle or compromise any federal, state, local or foreign
income tax liability; 

 

	 	(i)	 	waive or fail to enforce any provision of any confidentiality or standstill agreement to which it is a party; or 

 

	 	(j)	 	make any commitment to take any of the actions prohibited by this Section 4.1. 

 

	5.	 	ADDITIONAL AGREEMENTS 

 

	5.1	 	Expenses. Except as specifically contemplated herein, whether or not the transactions contemplated hereby are consummated, all costs and expenses incurred in
connection with this Agreement and the transactions contemplated hereby shall be paid by the party incurring such expenses. 

 

	5.2	 	Public Announcements. Purchaser and Seller will consult with each other before issuing any press release or otherwise making any public statements with
respect to the transactions contemplated hereby, and shall not issue any such press release or make any such public statement prior to such consultation, except as may be required by applicable law or by obligations pursuant to any listing agreement
with any national securities exchange. 

 

	5.3	 	Notification of Certain Matters. Seller shall give prompt notice to Purchaser, and Purchaser shall give prompt notice to Seller, of (i) the occurrence or
non-occurrence of any event the occurrence or non-occurrence of which would cause any representation or warranty contained in this Agreement to be untrue or inaccurate in any material respect on or prior to the Closing Date, and (ii) any material
failure of Seller, on the one hand, or Purchaser, on the other hand, to comply with or satisfy any covenant, condition or agreement to be complied with or satisfied by them hereunder; provided, however, that the delivery of any notice pursuant to
this Section 5.3 shall not limit or otherwise affect the remedies available hereunder to the party receiving such notice. 

 

	5.4	 	Access to Information. Purchaser hereby acknowledges that it has, and Seller hereby agrees that it shall continue to afford the officers, employees,
accountants, counsel and other representatives of Purchaser with, reasonable access to MVCC’s, Eagle Fund’s and their subsidiaries’ properties, books, contracts, commitments, records and all other information concerning their
businesses, properties and personnel as Purchaser may reasonably request prior to the Closing Date. 

 

	5.5	 	Small Business Investment Company License. Upon the date hereof, Seller hereby agrees that Purchaser may commence obtaining the consent of the U.S. Small
Business Administration to the transfer of the control of the Small Business Investment Company License owned by Eagle Fund. 

 

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	5.6	 	Further Assurances. 

 

	 	(a)	 	Subject to the terms and conditions of this Agreement, Seller, on the one hand, and Purchaser, on the other hand, shall, and shall cause their respective
subsidiaries to, use all reasonable efforts (i) to take, or cause to be taken, all actions necessary, proper or advisable to comply promptly with all legal requirements which may be imposed on such parties or their subsidiaries with respect to the
transactions contemplated hereby and, subject to the conditions set forth in Article 6 hereof, to consummate the transactions contemplated hereby as promptly as practicable, and (ii) to obtain (and to cooperate with the other party to obtain) any
consent, authorization, order or approval of, or any exemption by, any governmental entity and any other third party which is required to be obtained by them or any of their respective subsidiaries in connection with the transactions contemplated
hereby, and to comply with the terms and conditions of any such consent, authorization, order or approval. 

 

	 	(b)	 	Subject to the terms and conditions of this Agreement, each of the parties hereto shall use all reasonable efforts to take, or cause to be taken, all actions, and to
do, or cause to be done, all things necessary, proper or advisable to consummate and make effective, as soon as practicable after the date of this Agreement, the transactions contemplated hereby, including, without limitation, using all reasonable
efforts to lift or rescind any injunction or restraining order or other order adversely affecting the ability of the parties to consummate the transactions contemplated hereby and using all reasonable efforts to defend any litigation seeking to
enjoin, prevent or delay the consummation of the transactions contemplated hereby or seeking material damages. 

 

	 	(c)	 	The parties acknowledge that third parties may not fully and immediately appreciate the consequences of the transaction herein contemplated, and Seller and Purchaser
each agree to remit promptly to the other any payments received by such party which are properly for the account of the other. 

 

	5.7	 	Additional Agreements. In case at any time after the Closing Date any further action is necessary or desirable to carry out the purposes of this Agreement or
to vest Purchaser with full title to all of the Assets, the proper officers and directors of each party to this Agreement and their respective subsidiaries shall take all such necessary action as may be reasonably requested by Purchaser.

 

	5.8	 	Office Space. Seller shall provide Scott D. Fesler with office space rent-free for the continued operation of MVCC and Eagle Fund at 13205 Manchester Road, or
comparable space in the St. Louis metropolitan area, for a period of one year after the Closing Date. 

 

	5.9	 	Continuation of Benefits. For a period of one year after the Closing Date, Seller will provide Scott D. Fesler with health and dental insurance benefits on
the same basis as other full-time employees of M&I. After January 31, 2003 (Mr. Fesler’s termination date), Seller will provide Mr. Fesler with six (6) months of salary continuation payments, or a total of $46,750.00 based on Mr.
Fesler’s current annual salary of $93,500.00, payable in the same manner as Mr. Fesler currently receives his salary payments. The salary continuation payments will be made in lieu of any other separation or severance benefits that Mr. Fesler
may be entitled to receive from Seller or its affiliates, and all other benefits sponsored by the Seller or its affiliates, other than those expressly provided herein, shall cease on Mr. Fesler’s termination date. The salary continuation
payments will be contingent on Mr. Fesler executing a complete and permanent release. 

 

	5.10	 	 Release. Purchaser shall, effective as of the Closing Date, cause Seller and its affiliates to be irrevocably released from, and, if required, Purchaser
or its affiliates to be irrevocably substituted in all respects for Seller and Seller’s affiliates in respect of, all obligations of Seller and Seller’s affiliates 

 

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under any guarantees, indemnities, surety bonds, or letters of credit provided by Seller and Seller’s affiliates in connection with the
Assets. 

 

	5.11	 	Tax Proration Method. The Purchaser and Seller hereby agree that, for tax purposes, the “closing of the books” method shall be used to allocate
income, gain or loss from the disposition of any investment by Eagle Fund, but that a pro rata daily allocation shall be used for all other types of Eagle Fund’s income or loss. 

 

	5.12	 	Tax Records. The Purchaser hereby agrees to use its best efforts to assist Seller in obtaining the information regarding the tax basis of the equity
investments held by MVCC and Eagle Fund, including copies of any K-1s received from entities in which MVCC and Eagle Fund have made equity investments. 

 

	6.	 	CONDITIONS PRECEDENT 

 

	6.1	 	Conditions to Each Party’s Obligation To Effect the Transactions. The respective obligation of each party to effect the transactions contemplated by this
Agreement is subject to the satisfaction or waiver on or prior to the Closing Date of the following conditions: 

 

	 	(a)	 	All governmental consents, orders and approvals required for the consummation of the transactions contemplated hereby shall have been obtained and shall be in
effect. 

 

	 	(b)	 	No temporary restraining order, preliminary or permanent injunction or other order issued by any court of competent jurisdiction or other legal restraint or
prohibition preventing the consummation of the transactions contemplated hereby shall be in effect; provided, however, that the parties hereto shall use their best efforts to have any such injunction, order, restraint or prohibition vacated.

 

	6.2	 	Conditions to Obligation of Purchaser. The obligation of Purchaser to effect the transactions contemplated hereby is further subject to the following
conditions: 

 

	 	(a)	 	The representations and warranties of Seller set forth in this Agreement shall be true and correct, unless the failure of such representations and warranties to be
so true and correct, in the aggregate, has not had and would not reasonably be expected to have a material adverse effect as of the date of this Agreement and as of the Closing Date as though made on and as of the Closing Date.

 

	 	(b)	 	Seller shall have performed in all material respects the obligations required to be performed by it under this Agreement at or prior to the Closing Date.

 

	 	(c)	 	Purchaser shall have obtained, with the reasonable assistance of Seller, such licenses, consents, approvals, and authorizations of any third parties as are necessary
in connection with the transactions contemplated, including, but not limited, the consent of the U.S. Small Business Administration as described in Section 5.5. 

 

	6.3	 	Conditions to Obligation of Seller. The obligation of Seller to effect the transactions contemplated hereby is further subject to the following conditions:

 

	 	(a)	 	The representations and warranties of Purchaser set forth in this Agreement shall be true and correct, unless the failure of such representations and warranties to
be so true and correct, in the aggregate, has not had and would not reasonably be expected to have a material adverse effect as of the date of this Agreement and as of the Closing Date as though made on and as of the Closing Date.

 

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	 	(b)	 	Purchaser shall have performed in all material respects the obligations required to be performed by it under this Agreement at or prior to the Closing Date.

 

	 	(c)	 	Purchaser shall have obtained, with the reasonable assistance of Seller, such licenses, consents, approvals, and authorizations of any third parties as are necessary
in connection with the transactions contemplated, including, but not limited, the consent of the U.S. Small Business Administration as described in Section 5.5. 

 

	7.	 	INDEMNIFICATION 

 

	7.1	 	Survival of Representations and Warranties. The representations and warranties of Seller shall survive the Closing Date through the close of business on the
first anniversary of the Closing Date, after which date no claim for indemnification or otherwise not theretofore asserted may be brought in respect of any misrepresentation or breach of warranty based on such other representations and warranties.
No representations, warranties, covenants, and agreements of any party contained in this Agreement shall be deemed waived or otherwise affected by any investigation or knowledge of the other party. 

 

	7.2	 	Indemnification by Seller. Seller shall indemnify and hold harmless Purchaser, and its affiliates, members, officers, directors, agents, employees, successors
and assigns (collectively, “Purchaser Indemnitees”), from any liability, obligations, fines, penalties, losses, settlements, damages, claims, interest, awards and judgments, costs and expenses (including reasonable attorneys’
fees and other reasonable costs and expenses of investigating or contesting any of the foregoing) (collectively, “Losses”), suffered or incurred by any of them for, or arising out of or based upon, or relating to any untruth,
inaccuracy, or breach of any representation, warranty, agreement, or covenant of such Seller contained in this Agreement, the schedules relating to this Agreement, or any document or certificate of such Seller referenced in Section 1.5(a)(iii).

 

	7.3	 	Indemnification by Purchaser. Purchaser shall indemnify and hold harmless Seller, and its affiliates, officers, directors, agents, employees, successors, and
assigns from any Losses suffered or incurred by any of them for, or arising out of or based upon, or relating to any untruth, inaccuracy, or breach of any representation, warranty, agreement, or covenant of Purchaser contained in this Agreement, the
schedules relating thereto, or any document or certificate of Purchaser referenced in Section 1.5(b)(ii). 

 

	7.4	 	Limitations on Liability. Notwithstanding anything to the contrary contained in this Agreement, no party shall be entitled to indemnification until its
aggregate Losses exceed $75,000, at which time such party shall be entitled to indemnification for the full amount of its Losses to the extent such Losses exceed such amount. In no event shall the Losses payable by Seller in the aggregate exceed the
Purchase Price and in no event shall any party be entitled to any incidental, consequential, special, exemplary, or punitive damages. 

 

	7.5	 	 Third-Party Claims. Within ten (10) days after receipt by a person entitled or claiming to be entitled to indemnification pursuant to Sections 7.2 or 7.3
(“Indemnitee”) of written notice of the commencement of any action or the assertion of any claim, liability or obligation by a third party, against which claim, liability or obligation a person is, or may be, required under Sections
7.2 or 7.3 to indemnify Indemnitee (“Indemnitor”), Indemnitee will, if a claim thereon is to be made against Indemnitor, notify Indemnitor in writing of the commencement or assertion thereof (the “Claim Notice”) and
give Indemnitor a copy of such claim, process and all legal pleadings relating thereto. Indemnitor shall have the right to contest and conduct the defense of such action with counsel reasonably acceptable to Indemnitee by giving written notice to
Indemnitee of its election to do so within ten (10) days of the receipt of the Claim Notice, and Indemnitee may participate in such defense by counsel of its own 

 

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choosing at its own expense. If Indemnitee shall be required by final judgment not subject to appeal or by a settlement agreement to pay any
amount in respect of any obligation or liability against which Indemnitor has agreed to indemnify Indemnitee under this Agreement, such amount net of any associated Tax benefits plus all reasonable expenses incurred by such Indemnitee in accordance
with such obligation or liability (including, without limitation, reasonable attorneys’ fees (other than fees incurred by counsel to Indemnitee employed pursuant to the immediately preceding sentence) and costs of investigations) shall be
promptly paid by Indemnitor to Indemnitee, subject to reasonable documentation. Indemnitee shall not settle or compromise any claim, action or proceeding without the prior written consent of Indemnitor, which shall not be unreasonably withheld.
Indemnitee shall use reasonable efforts to mitigate any damage, loss, cost, expense, liability or obligation with respect to which it shall be entitled to indemnification hereunder. Failure of Indemnitee to give the Claim Notice to Indemnitor within
the ten-day period required hereunder shall not affect Indemnitee’s rights to indemnification hereunder, except if (and then only to the extent that) Indemnitor incurs additional expenses or Indemnitor’s defense of such claim is actually
prejudiced by reason of such failure to give timely notice. 

 

	7.6	 	Direct Claims. With respect to claims other than third-party claims, Indemnitee shall use reasonable efforts promptly to notify Indemnitor of such claims, but
failure of Indemnitee so to give notice to Indemnitor shall not affect the rights of Indemnitee to indemnification hereunder. 

 

	8.	 	TERMINATION, AMENDMENT AND WAIVER 

 

	8.1	 	Termination. This Agreement may be terminated and abandoned at any time prior to the Closing Date: 

 

	 	(a)	 	by mutual written consent of Seller and Purchaser; or 

 

	 	(b)	 	by either Seller, on the one hand, or Purchaser, on the other hand, if any governmental entity shall have issued an order, decree or ruling or taken any other action
permanently enjoining, restraining or otherwise prohibiting the transactions contemplated hereby and such order, decree, ruling or other action shall have become final and nonappealable; or 

 

	 	(c)	 	by either Seller, on the one hand, or Purchaser, on the other hand, if the transactions contemplated by this Agreement shall not have been consummated on or before
June 30, 2003 (other than due to the failure of the party seeking to terminate this Agreement to perform its obligations under this Agreement required to be performed on or prior to the Closing Date); or 

 

	 	(d)	 	by Purchaser, if any of the conditions set forth in Section 6.2 shall fail to be met and any such failure that is reasonably capable of being cured has not been
cured by the date specified in Section 8.1(c); or 

 

	 	(e)	 	by Seller, if any of the conditions set forth in Section 6.3 shall fail to be met and any such failure that is reasonably capable of being cured has not been cured
by the date specified in Section 8.1(c). 

 

	8.2	 	Effect of Termination. In the event of termination of this Agreement by either Seller or Purchaser as provided in Section 8.1, this Agreement shall forthwith
become void and have no effect, without any liability or obligation on the part of Purchaser or Seller, other than pursuant to the provisions of Section 5.2. Nothing contained in this Section shall, however, relieve any party of liability for any
breach of the representations, warranties, covenants or agreements set forth in this Agreement prior to any such termination. 

 

10 

 

	8.3	 	Amendment. This Agreement may be amended by the parties at any time. This Agreement may not be amended except by an instrument in writing signed on behalf of
each of the parties. 

 

	8.4	 	Extension; Waiver. At any time prior to the Closing, the parties may (a) extend the time for the performance of any of the obligations or other acts of the
other parties, (b) waive any inaccuracies in the representations and warranties contained in this Agreement or in any document delivered pursuant to this Agreement or (c) waive compliance with any of the agreements or conditions contained in this
Agreement. Any agreement on the part of a party to any such extension or waiver shall be valid only if set forth in an instrument in writing signed on behalf of such party. The failure of any party to this Agreement to assert any of its rights under
this Agreement or otherwise shall not constitute a waiver of such rights. 

 

	9.	 	GENERAL PROVISIONS 

 

	9.1	 	Notices. All notices, requests, claims, demands and other communications under this Agreement shall be in writing and shall be deemed given when received if
delivered personally, on the next business day if sent by overnight courier for next business day delivery (providing proof of delivery), on receipt of confirmation if sent by facsimile, or in 5 business days if sent by U.S. registered or certified
mail, postage prepaid (return receipt requested) to the other parties at the following addresses (or at such other address for a party as shall be specified by like notice): 

 

	 if to Purchaser to:
	  	 Eagle Capital, LLC
 13205 Manchester Road
 St. Louis, Missouri 63131
 Attention: Scott D. Fesler
 Facsimile No.: (314) 543-3377

	
	 if to Seller:
	  	 Marshall & Ilsley Corporation
 770 North Water Street
 Milwaukee, Wisconsin 53202
 Attention: Randall J. Erickson
 Facsimile No.: (414) 765-7899

 

	9.2	 	Definitions. For purposes of this Agreement: 

 

	 	(a)	 	an “affiliate” of any person means another person that directly or indirectly, through one or more intermediaries, controls, is controlled by, or is
under common control with, such first person; and 

 

	 	(b)	 	“person” means an individual, corporation, partnership, joint venture, association, trust, unincorporated organization or other entity.

 

	9.3	 	Interpretation. A reference made in this Agreement to a Section, Exhibit or Schedule, shall be to a Section of, or an Exhibit or Schedule to, this Agreement
unless otherwise indicated. The table of contents and headings contained in this Agreement are for reference purposes only and shall not affect the meaning or interpretation of this Agreement. Whenever the words “include,”
“includes” or “including” are used in this Agreement, they shall be deemed to be followed by the words “without limitation.” 

 

11 

 

	9.4	 	Counterparts. This Agreement may be executed in one or more counterparts, all of which shall be considered one and the same agreement and shall become
effective when one or more counterparts have been signed by each of the parties and delivered to the other parties. 

 

	9.5	 	Entire Agreement; No Third-Party Beneficiaries. This Agreement (including the documents and instruments referred to herein) constitutes the entire agreement
between the parties, and supersedes all prior agreements and understandings, both written and oral, between the parties with respect to the subject matter hereof. Except as provided in Article 8, this Agreement is not intended to confer upon any
person other than the parties hereto any rights or remedies. 

 

	9.6	 	Governing Law. This Agreement shall be governed by, and construed in accordance with, the laws of the State of Missouri regardless of the laws that might
otherwise govern under applicable principles of conflicts of laws thereof. 

 

	9.7	 	Assignment. Neither this Agreement nor any of the rights, interests or obligations under this Agreement shall be assigned, in whole or in part, by operation
of law or otherwise, by any of the parties without the prior written consent of the other parties; provided, however, that no such consent shall be required for Seller or any of its affiliates to assign or assume the rights, privileges, duties or
obligations of MVCC or Eagle Fund in connection with (i) the transfer and distribution of the Excluded Assets as provided in Section 1.1 of this Agreement, and (ii) the transfer and assumption of the unfunded commitments as provided in Section 5.8
of this Agreement. Any assignment in violation of the preceding sentence shall be void. Subject to the preceding two sentences, this Agreement will be binding upon, inure to the benefit of, and be enforceable by, the parties and their respective
successors and assigns. 

 

	9.8	 	Enforcement. The parties agree that irreparable damage would occur in the event that any of the provisions of this Agreement were not performed in accordance
with their specific terms or were otherwise breached. It is accordingly agreed that the parties shall be entitled to an injunction or injunctions to prevent breaches of this Agreement and to enforce specifically the terms and provisions of this
Agreement. 

 

	9.9	 	Severability. Whenever possible, each provision or portion of any provision of this Agreement will be interpreted in such manner as to be effective and valid
under applicable law but if any provision or portion of any provision of this Agreement is held to be invalid, illegal or unenforceable in any respect under any applicable law or rule in any jurisdiction, such invalidity, illegality or
unenforceability will not affect any other provision or portion of any provision in such jurisdiction, and this Agreement will be reformed, construed and enforced in such jurisdiction as if such invalid, illegal or unenforceable provision or portion
of any provision had never been contained herein, so long as the economic and legal substance of the transactions contemplated hereby are not affected in a manner materially adverse to any party hereto. 

 

12 

IN WITNESS WHEREOF, each of the parties hereto have caused this Agreement to be signed by
their respective officers hereunto duly authorized, all as of the date first written above. 
 

	 EAGLE CAPITAL, LLC

	
	 By:
	 	 /s/ Scott D. Felser

	 	 	 Name: Scott D. Felser

	 	 	 Title: Member

 

	 MARSHALL & ILSLEY CORPORATION

	
	 By:
	 	 /s/ Dennis J. Kuester

	 	 	 Name: Dennis J. Kuester

	 	 	 Title: President and Chief Executive Officer

 

	 MISSISSIPPI VALLEY CAPITAL COMPANY

	
	 By:
	 	 /s/ Scott D. Felser

	 	 	 Name: Scott D. Felser

	 	 	 Title: President

 

13 

Exhibit 10(ii) 
 
FIRST AMENDMENT TO ACQUISITION AGREEMENT 
 
THIS FIRST AMENDMENT TO ACQUISITION AGREEMENT (“First
Amendment”) is entered into as of January 30, 2003 by and among Eagle Capital, LLC, a Missouri limited liability company (“Purchaser”), Marshall & Ilsley Corporation, a Wisconsin corporation
(“M&I”), and Mississippi Valley Capital Company, a Missouri corporation (“MVCC”), (hereinafter M&I and MVCC are collectively referred to as “Seller”). 
 
RECITALS 
 
WHEREAS, Seller and Purchaser entered into an Acquisition
Agreement dated as of December 30, 2002 (the “Agreement”); and 
 
WHEREAS, Seller and Purchaser now desire to amend the Agreement to include Purchaser’s acquisition of all of MVCC’s interest in Bakers Footwear Group, Inc. f/k/a Weiss and Neuman Shoe Co.
(“Weiss and Neuman”) according to the terms set forth below; and 
 
WHEREAS, terms not otherwise defined herein shall have the meanings assigned to such terms in the Agreement. 
 
NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as
follows: 
 

	1.	 	Article 5 of the Agreement shall be amended to include the following provision: 

 

	 	5.13	 	Weiss and Neuman Investment. The parties understand and agree that Purchaser is acquiring from MVCC all of MVCC’s debt and equity investment and
ownership interest in Weiss and Neuman, including, but not limited to, the right to receive a payment (the “Warrant Redemption Payment”) from Weiss and Neuman pursuant to an agreement to redeem an outstanding warrant set forth in
Section 1.2 of that certain Subordinated Note dated June 22, 1999 payable by Weiss and Neuman to MVCC. For purposes of the foregoing, the term “Warrant Redemption Payment” shall include the right to receive a payment (including a premium)
under any amendment, modification or extension of the warrant and any warrant given in renewal, exchange, replacement or substitution of the warrant. Notwithstanding anything herein to the contrary, the parties agree that if Purchaser receives any
of the Warrant Redemption Payment from Weiss and Neuman, then such Warrant Redemption Payment shall be paid to Purchaser and/or M&I as follows: 

 

	 	(i)	 	If the total of the Warrant Redemption Payment received by Purchaser is equal to or less than One Hundred Thousand Dollars ($100,000), then the entire Warrant
Redemption Payment will be retained by Purchaser; 

 

	 	(ii)	 	If the total of the Warrant Redemption Payment received by Purchaser is greater than One Hundred Thousand Dollars ($100,000), then Purchaser shall pay to M&I
that portion of the Warrant Redemption Payment that is greater than One Hundred Thousand Dollars; provided that the total of such payments to M&I shall not exceed Two Hundred Seventy-Five Thousand Dollars ($275,000); and

 

	 	(iii)	 	If the Warrant Redemption Payment exceeds Three Hundred Seventy-Five Thousand Dollars ($375,000), then Purchaser shall retain that portion of the Warrant Redemption
Payment that is greater than Three Hundred Seventy-Five Thousand Dollars ($375,000). 

 

	2.	 	The parties hereby agree to amend Schedule I of the Agreement by adding the following language: 

 

	 	6.	 	All of MVCC’s debt and equity investment and ownership interest in Bakers Footwear Group, Inc. f/k/a Weiss and Neuman Shoe Co. 

 

	3.	 	Except as expressly amended by this First Amendment, the Agreement is hereby confirmed and shall remain in full force and effect without impairment or modification.

 

	4.	 	In the event of any conflict between the Agreement and this First Amendment, the terms of this First Amendment shall govern. 

 

	5.	 	The parties agree that this First Amendment may be transmitted between them by facsimile machine. The parties intend that faxed signatures constitute original
signatures and that a faxed copy of the First Amendment containing the signatures (original or faxed) of the parties is binding on the parties. 

 

	6.	 	This First Amendment may be executed in several counterparts, each of which shall be an original, but all of which shall constitute one in the same instrument.

 
IN WITNESS WHEREOF, each of the
parties hereto have caused this First Amendment to be signed by their respective officers hereunto duly authorized, all as of the date first written above. 
 
 

	 EAGLE CAPITAL, LLC

	
	 By:
	 	 /s/    Scott D. Felser        

	 	 	 Name: Scott D. Felser
 Title: Manager

 

	 MARSHALL & ILSLEY CORPORATION

	
	 By:
	 	 /s/    Randall J. Erickson        

	 	 	 Name: Randall J. Erickson
 Title: Senior Vice President and General
           Counsel

 

	 MISSISSIPPI VALLEY CAPITAL COMPANY

	
	 By:
	 	 /s/    Scott D. Felser        

	 	 	 Name: Scott D. Felser
 Title: President

 

2<PAGE>

                                                                  EXHIBIT 4 (ii)

                                                                      Rev. 11/02

     UNLESS THIS SENIOR NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE
DEPOSITORY TRUST COMPANY (55 WATER STREET, NEW YORK, NEW YORK) TO THE BANK OR
ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY SENIOR NOTE
ISSUED UPON REGISTRATION OF TRANSFER OF, OR IN EXCHANGE FOR, OR IN LIEU OF, THIS
SENIOR NOTE IS REGISTERED IN THE NAME OF CEDE & CO. OR SUCH OTHER NAME AS
REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY AND
ANY PAYMENT HEREON IS MADE TO CEDE & CO., ANY TRANSFER, PLEDGE OR OTHER USE
HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL SINCE THE
REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

     IF THIS SENIOR NOTE IS ISSUED WITH "ORIGINAL ISSUE DISCOUNT" FOR PURPOSES
OF SECTION 1273 OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED, THE FOLLOWING
SHALL BE COMPLETED: THE FOLLOWING INFORMATION IS PROVIDED SOLELY FOR PURPOSES OF
APPLYING SECTIONS 1272, 1273 AND 1275 OF THE UNITED STATES INTERNAL REVENUE CODE
OF 1986, AS AMENDED, TO THIS SENIOR NOTE. THE ISSUE DATE OF THIS SENIOR NOTE IS
_____________. THE ISSUE PRICE OF THIS SENIOR NOTE IS _____% OF ITS PRINCIPAL
AMOUNT. THE AMOUNT OF ORIGINAL ISSUE DISCOUNT ON THIS SENIOR NOTE IS $_________
PER $1,000 OF THE INITIAL PRINCIPAL AMOUNT, THE YIELD TO MATURITY IS ____%, AND
THE AMOUNT OF THE ORIGINAL ISSUE DISCOUNT ALLOCABLE TO THE INITIAL SHORT ACCRUAL
PERIOD, IF ANY, IS $_____ PER $1,000 OF THE INITIAL PRINCIPAL AMOUNT, DETERMINED
ON THE BASIS OF THE EXACT METHOD.

No. SEN FLR-_______________                                           REGISTERED
CUSIP NO.: _______________

                           THE NORTHERN TRUST COMPANY

                             GLOBAL SENIOR BANK NOTE

                                 (Floating Rate)

ORIGINAL ISSUE DATE:                              PRINCIPAL AMOUNT:
________________                                  _______________

INITIAL BASE RATE: ________%                      MATURITY DATE: ________
INTEREST RATE BASIS: ________                     INDEX MATURITY: _________

SPREAD AND/OR SPREAD MULTIPLIER:                  REGULAR RECORD DATES (If other
______________                                    than the 15th day prior to
                                                  each Interest Payment Date):
                                                  _______________

<PAGE>

MAXIMUM INTEREST RATE: ________%                    MINIMUM INTEREST RATE:
                                                    ________%

INTEREST PAYMENT DATES:                             INTEREST PAYMENT PERIOD:
______________                                      _______________

INTEREST RESET DATES:                               INTEREST RESET PERIOD:
______________                                      _______________

INITIAL REDEMPTION DATE:                            ANNUAL REDEMPTION
_______________                                     PERCENTAGE REDUCTION:
                                                    ______________

INITIAL REDEMPTION PERCENTAGE:                      HOLDER'S OPTIONAL REPAYMENT
________%                                           DATE: _______________

ORIGINAL ISSUE DISCOUNT NOTE:                       OID AMOUNT:
     Yes: ______  No: ______                        _______________

OTHER PROVISIONS:                                   CALCULATION AGENT:________
                                                    DEFAULT RATE: ________%

                                                    ALTERNATE RATE EVENT SPREAD:
                                                    ________________

     The Northern Trust Company, an Illinois banking corporation (the "Bank"),
for value received, hereby promises to pay to Cede & Co., or registered assigns,
the principal amount specified on the face hereof in United States Dollars on
the Maturity Date specified above and to pay interest thereon from the Original
Issue Date specified above or from the most recent interest payment date (or, if
the Interest Reset Period specified above is daily or weekly, from, and
including, the day following the most recent Regular Record Date) to which
interest on this Senior Note (or any predecessor Senior Note) has been paid or
made available for payment (each, an "Interest Payment Date"), on the Interest
Payment Dates specified above and at maturity or upon earlier redemption or
repayment, if applicable, commencing on the first Interest Payment Date next
succeeding the Original Issue Date (or, if the Original Issue Date is between a
Regular Record Date and the Interest Payment Date immediately following such
Regular Record Date, on the second Interest Payment Date following the Original
Issue Date), at a rate per annum equal to the Initial Base Rate specified above,
as adjusted by the addition or subtraction of the Spread, if any, specified
above and/or by the multiplication by the Spread Multiplier, if any specified
above, until the first Interest Reset Date following the Original Issue Date
and, on and after such Interest Reset Date, at the rate determined in accordance
with the provisions set forth herein, until the principal hereof is paid or made
available for payment, and (to the extent that the payment of such interest
shall be legally enforceable) at the last rate in effect prior to any payment
default (or the Default Rate per annum specified above, if such Default Rate is
specified above) on any overdue principal and premium, if any, and on any
overdue installment of interest. The interest so payable, and punctually paid or
made available for payment, on any Interest Payment Date will be paid to the
person in whose name this Senior Note (or any predecessor Senior Note) is
registered at the close of business on the Regular Record Date for such
interest, which shall be the 15th calendar day (whether or not a Business Day
(as defined below)) before such Interest Payment Date (unless otherwise
specified on the face hereof); provided, however, that interest payable at
maturity or upon earlier redemption or repayment, if applicable, will be payable
to the person to whom principal shall be payable.

<PAGE>

     Payment of principal of, and premium, if any, and interest on, this Senior
Note will be made in such coin or currency of the United States of America as at
the time of payment is legal tender for payment of public and private debts. The
Bank will at all times appoint and maintain a paying agent (the "Paying Agent")
authorized by the Bank to pay the principal of, and premium, if any, and
interest on, this Senior Note on behalf of the Bank and having an office or
agency (the "Paying Agent Office") in The City of New York or the City of
Chicago, Illinois (the "Place of Payment"), where this Senior Note may be
presented or surrendered for payment and where notices, designations or requests
in respect of payments with respect to this Senior Note may be served. The Bank
has initially appointed itself as such Paying Agent, with the Paying Agent
Office currently located at 50 South LaSalle Street (Level BB-A), Chicago,
Illinois 60675, Attention: Securities Services.

     THIS SENIOR NOTE IS A DIRECT, UNCONDITIONAL, UNSECURED AND UNSUBORDINATED
GENERAL OBLIGATION OF THE BANK. THIS SENIOR NOTE IS NOT INSURED BY THE FEDERAL
DEPOSIT INSURANCE CORPORATION, IS NOT A DEPOSIT OF, OR GUARANTEED BY, THE BANK,
AND IS SUBJECT TO INVESTMENT RISKS, INCLUDING POSSIBLE LOSS OF THE PRINCIPAL
AMOUNT INVESTED. THIS SENIOR NOTE RANKS PARI PASSU WITH ALL OTHER UNSECURED AND
UNSUBORDINATED OBLIGATIONS OF THE BANK, EXCEPT DEPOSITS AND OTHER OBLIGATIONS
THAT ARE SUBJECT TO A PRIORITY OR PREFERENCE. UNDER APPLICABLE LAW, CLAIMS OF
CERTAIN CREDITORS, INCLUDING HOLDERS OF DEPOSITS IN THE BANK, WOULD BE ENTITLED
TO PRIORITY OVER CLAIMS OF UNSECURED GENERAL CREDITORS OF THE BANK, INCLUDING
THE HOLDER OF THIS SENIOR NOTE, IN THE EVENT OF A LIQUIDATION OR OTHER
RESOLUTION OF THE BANK.

     Payment of the principal of, and premium, if any, and interest on, this
Senior Note due at maturity or upon earlier redemption or repayment, if
applicable, will be made in immediately available funds upon presentation and
surrender of this Senior Note to the Paying Agent at the Paying Agent Office in
the Place of Payment; provided that this Senior Note is presented to the Paying
Agent in time for the Paying Agent to make such payment in accordance with its
normal procedures. Payments of interest on this Senior Note (other than at
maturity or upon earlier redemption or repayment) will be made by wire transfer
to such account as has been appropriately designated to the Paying Agent by the
person entitled to such payments.

     This Senior Note is one of a duly authorized issue of Senior Bank Notes due
from 30 days to fifteen years from date of issue of the Bank (herein called the
"Senior Notes").

     Unless otherwise indicated on the face hereof, if the rate of interest on
this Senior Note resets daily, weekly or monthly the Interest Payment Date for
this Senior Note will be the third Wednesday of each month or the third
Wednesday of March, June, September and December of each year; if the rate of
interest on this Senior Note resets quarterly, the Interest Payment Date for
this Senior Note will be the third Wednesday of March, June, September and
December of each year; if the rate of interest on this Senior Note resets
semi-annually, the Interest Payment Date for this Senior Note will be the third
Wednesday of each of two months of each year specified on the face hereof that
are six months apart; and if the rate of interest on this Senior Note resets
annually, the Interest Payment Date for this Senior Note will be the third
Wednesday

<PAGE>

of the month specified on the face hereof. If any Interest Payment Date (unless
it is also the Maturity Date) for this Senior Note falls on a day that is not a
Business Day, such Interest Payment Date will be postponed to the next
succeeding Business Day; provided, however, that if the Interest Rate Basis
specified on the face hereof is LIBOR and such next succeeding Business Day is
in the next succeeding calendar month, such Interest Payment Date (unless it is
also the Maturity Date) will be the immediately preceding Business Day. If any
Maturity Date or date of earlier redemption or repayment of this Senior Note
falls on a day that is not a Business Day, the related payment of interest shall
be made on the next succeeding Business Day with the same force and effect as if
made on the date such payment were due, and no interest shall accrue on the
amount so payable for the period from and after such Maturity Date or date of
earlier redemption or repayment. "Business Day" means any day other than a
Saturday, Sunday or a day on which banking institutions in The City of New York
or the City of Chicago, Illinois generally are authorized or obligated by law or
executive order to close, and with respect to Senior Notes with respect to which
the Interest Rate Basis specified on the face hereof is LIBOR, any day on which
dealings in U.S. dollars are transacted in the London interbank market (a
"London Business Day").

     This Senior Note will not be subject to any sinking fund. If so provided on
the face of this Senior Note, this Senior Note may be redeemed by the Bank on
and after the Initial Redemption Date, if any, specified on the face hereof. If
no Initial Redemption Date is specified on the face hereof, this Senior Note may
not be redeemed prior to the Maturity Date. On and after the Initial Redemption
Date, if any, this Senior Note may be redeemed at any time either in whole or in
part from time to time in increments of $1,000 (provided that any remaining
principal amount hereof shall be at least $250,000) at the option of the Bank at
the applicable Redemption Price (as defined below), together with accrued and
unpaid interest hereon at the applicable rate borne by this Senior Note to the
date of redemption (each such date, a "Redemption Date"), on written notice
given not more than 60 nor less than 30 calendar days prior to the Redemption
Date by the Bank to the registered holder hereof. Whenever less than all the
Senior Notes at any time outstanding are to be redeemed, the terms of the Senior
Notes to be so redeemed shall be selected by the Bank. If less than all the
Senior Notes with identical terms at any time outstanding are to be redeemed,
the Senior Notes to be so redeemed shall be selected by the Paying Agent by lot
or in any usual manner approved by it. In the event of redemption of this Senior
Note in part only, a new Senior Note for the unredeemed portion hereof shall be
issued in the name of the holder hereof upon the surrender hereof.

     The "Redemption Price" shall initially be the Initial Redemption Percentage
specified on the face hereof of the principal amount of this Senior Note to be
redeemed and shall decline at each anniversary of the Initial Redemption Date
specified on the face hereof by the Annual Redemption Percentage Reduction, if
any, specified on the face hereof, of the principal amount to be redeemed until
the Redemption Price is 100% of such principal amount.

     This Senior Note may be subject to repayment at the option of the holder
hereof in accordance with the terms hereof on the Holder's Optional Repayment
Date(s), if any, specified on the face hereof. If no Holder's Optional Repayment
Date is specified on the face hereof, this Senior Note will not be so repayable
at the option of the holder hereof prior to maturity. On any Holder's Optional
Repayment Date, this Senior Note will be repayable in whole or in part in
increments of $1,000 (provided that any remaining principal amount hereof will
be at least

<PAGE>

$250,000) at the option of the holder hereof at a repayment price equal to 100%
of the principal amount to be repaid, together with accrued and unpaid interest
hereon payable to the date of repayment. For this Senior Note to be repaid in
whole or in part at the option of the holder hereof on a Holder's Optional
Repayment Date, this Senior Note must be given, with the form entitled "Option
to Elect Repayment" below duly completed, to the Paying Agent at its offices
located at 50 South LaSalle Street (Level BB-A), Chicago, Illinois 60675,
Attention: Securities Services, or at such address which the Bank shall from
time to time notify the holders of the Senior Notes, not more than 60 nor less
than 30 days prior to such Holder's Optional Repayment Date. Exercise of such
repayment option by the holder hereof shall be irrevocable.

     The rate of interest on this Senior Note will be reset daily, weekly,
monthly, quarterly, semi-annually or annually (each such period, an "Interest
Reset Period" for this Senior Note, and the first calendar day of an Interest
Reset Period, an "Interest Reset Date"), as specified on the face hereof. Unless
otherwise indicated on the face hereof, if this Senior Note resets daily, the
Interest Reset Date will be each Business Day; if this Senior Note resets weekly
and the Interest Rate Basis is not the Treasury Rate, the Interest Reset Date
will be the Wednesday of each week; if this Senior Note resets weekly and the
Interest Rate Basis is the Treasury Rate, the Interest Reset Date will be the
Tuesday of each week (except as provided below); if this Senior Note resets
monthly, the Interest Reset Date will be the third Wednesday of each month; if
this Senior Note resets quarterly, the Interest Reset Date will be the third
Wednesday of March, June, September and December; if this Senior Note resets
semi-annually, the Interest Reset Date will be the third Wednesday of each of
two months of each year that are six months apart, as specified on the face
hereof; and if this Senior Note resets annually, the Interest Reset Date will be
the third Wednesday of one month of each year, as specified on the face hereof;
provided, however, that the base rate in effect from the Original Issue Date to
the first Interest Reset Date will be the Initial Base Rate specified on the
face hereof. If any Interest Reset Date with respect to this Senior Note would
otherwise be a day that is not a Business Day, such Interest Reset Date will be
the next succeeding Business Day, except that in the case that the Interest Rate
Basis specified on the face hereof is LIBOR, if such Business Day is in the next
succeeding calendar month, such Interest Reset Date will be the immediately
preceding Business Day.

     All calculations relating to this Senior Note will be made by the
"Calculation Agent." The Bank will serve as Calculation Agent for this Senior
Note as of its Original Issue Date, unless otherwise specified on the face
hereof. The Bank may appoint a different institution to serve as Calculation
Agent from time to time after the Original Issue Date of this Senior Note
without the consent of the holder and without notice.

     The Calculation Agent will determine the interest rate that takes effect on
an Interest Reset Date by reference to the Interest Determination Date. Unless
otherwise specified on the face hereof, (i) if the Interest Rate Basis is not
LIBOR or the Treasury Rate, the Interest Determination Date will be the second
Business Day before the Interest Reset Date; (ii) if the Interest Rate Basis is
LIBOR, the Interest Determination Date will be the second London Business Day
(as defined below) preceding the Interest Reset Date; and (iii) if the Interest
Rate Basis is the Treasury Rate, the Interest Determination Date will be the day
of the week in which the Interest Reset Date falls on which treasury bills -
i.e., direct obligations of the U.S. government - would normally be auctioned.
Treasury bills are usually sold at auction on the Monday of each week, unless
that day is a legal holiday, in which case the auction is usually held

<PAGE>

on the following Tuesday but may be held on the preceding Friday. If as the
result of a legal holiday an auction is held on the preceding Friday, that
Friday will be the Treasury Interest Determination Date relating to the Interest
Reset Date occurring in the next succeeding week. If the auction is held on a
day that would otherwise be an Interest Reset Date, then the Interest Reset Date
will instead be the first Business Day following the auction date.

     Unless the Interest Rate is LIBOR, the Calculation Agent will calculate the
interest rate that takes effect on a particular Interest Reset Date no later
than the corresponding Interest Calculation Date. The Interest Calculation Date
will be the earlier of (i) the tenth calendar day after the Interest
Determination Date or, if that tenth calendar day is not a Business Day, the
next succeeding Business Day, and (ii) the Business Day immediately preceding
the Interest Payment Date or the Maturity Date on which the next payment of
interest will be due. The Calculation Agent need not wait until the relevant
Interest Calculation Date to determine the interest rate if the rate information
it needs to make the determination is available from the relevant sources
sooner.

     For each Interest Reset Period, the Calculation Agent will calculate the
amount of accrued interest by multiplying the face amount of this Senior Note by
an accrued interest factor for the Interest Reset Period. This factor will equal
the sum of the interest factors calculated for each day during the Interest
Reset Period. The interest factor for each day will be expressed as a decimal
and will be calculated by dividing the interest rate (also expressed as a
decimal) applicable to that day (i) by 360, if the Interest Rate Basis is the
Commercial Paper Rate, the Prime Rate, LIBOR, the CD Rate or the Federal Funds
Rate, or (ii) by the actual number of days in the year, if the Interest Rate
Basis is the Treasury Rate or the CMT Rate.

     Upon the request of the holder of this Senior Note, the Calculation Agent
will provide such holder with the interest rate then in effect for this Senior
Note and, if determined, the interest rate that will become effective on the
next Interest Reset Date. The Calculation Agent's determination of any interest
rate, and its calculation of the amount of interest for any Interest Reset
Period, will be final and binding in the absence of manifest error.

     All percentages resulting from any calculation relating to this Senior Note
will be rounded upward or downward, as appropriate, to the next higher or lower
one hundred-thousandth of a percentage point. For example, 9.876541% (or
..09876541) would be rounded down to 9.87654% (or .0987654) and 9.876545% (or
..09876545) would be rounded up to 9.87655% (or .0987655). All amounts used in or
resulting from any calculation relating to this Senior Note will be rounded
upward or downward, as appropriate, to the nearest cent, with one-half cent or
more being rounded upward.

     In determining the Base Rate that applies this Senior Note during a
particular Interest Reset Period, the Calculation Agent may obtain rate quotes
from various banks or dealers active in the relevant market, as described in the
following subsections. Those reference banks and dealers may include the
Calculation Agent itself, including the Bank, and its affiliates.

     Except as otherwise provided herein, the rate of interest on this Senior
Note for each Interest Reset Date will be the rate determined in accordance with
the provisions set forth under the applicable heading below corresponding to the
Interest Rate Basis specified on the face

<PAGE>

hereof. Notwithstanding the foregoing, the interest rate hereon shall not be
greater than the Maximum Interest Rate, if any, specified on the face hereof and
shall not be lower than the Minimum Interest Rate, if any, specified on the face
hereof. In addition, the interest rate hereon will in no event be greater than
the maximum rate permitted by Illinois law, as the same may be modified by
United States law of general application.

     Commercial Paper Rate. If the Interest Rate Basis of this Senior Note is
the Commercial Paper Rate, this Senior Note will bear interest at a Base Rate
equal to the Commercial Paper Rate, as adjusted by the Spread or Spread
Multiplier, if any, specified on the face hereof.

     The Commercial Paper Rate will be the Money Market Yield (as defined below)
of the rate, for the relevant Interest Determination Date, for commercial paper
having the Index Maturity (as defined below) specified on the face of this
Senior Note, as published in H.15(519) (as defined below) under the heading
"Commercial Paper -- Nonfinancial." If the Commercial Paper Rate cannot be
determined as described above, the following procedures will apply:

          (i)   If the rate described above does not appear in H.15(519) at 3:00
     P.M., New York City time, on the relevant Interest Calculation Date (unless
     the calculation is made earlier and the rate is available from that source
     at that time), then the Commercial Paper Rate will be the rate, for the
     relevant Interest Determination Date, for commercial paper having the Index
     Maturity specified on the face of this Senior Note, as published in H.15
     Daily Update (as defined below) or another recognized electronic source
     used for displaying that rate, under the heading "Commercial Paper --
     Nonfinancial."

          (ii)  If the rate described above does not appear in H.15(519), H.15
     Daily Update or another recognized electronic source at 3:00 P.M., New York
     City time, on the relevant Interest Calculation Date (unless the
     calculation is made earlier and the rate is available from one of those
     sources at that time), the Commercial Paper Rate will be the Money Market
     Yield of the arithmetic mean of the offered rates, as of 11:00 A.M., New
     York City time, on the relevant Interest Determination Date, by three
     leading U.S. dollar commercial paper dealers in New York City selected by
     the Calculation Agent for U.S. dollar commercial paper that has the
     relevant Index Maturity and is placed for an industrial issuer whose bond
     rating is "AA", or the equivalent, from a nationally recognized rating
     agency.

          (iii) If fewer than three dealers selected by the Calculation Agent
     are quoting as described above, the Commercial Paper Rate for the new
     Interest Reset Period will be the rate in effect for the prior Interest
     Reset Period.

     LIBOR. If the Interest Rate Basis of this Senior Note is LIBOR, this Senior
Note will bear interest at a Base Rate equal to LIBOR, as adjusted by the Spread
or Spread Multiplier, if any, specified on the face hereof. LIBOR will be the
London interbank offered rate for deposits of U.S. dollars. LIBOR will be either
(a) the offered rate appearing on the Telerate LIBOR Page (as defined below) or
(b) the arithmetic mean of the offered rates appearing on the Reuters screen
LIBOR Page (as defined below), unless that page by its terms cites only one
rate, in which case that rate; in either case, as of 11:00 A.M., London time, on
the relevant LIBOR Interest Determination Date, for deposits of U.S. dollars
having the relevant Index Maturity beginning on

<PAGE>

the relevant Interest Reset Date. If no reference page is specified on the face
of this Senior Note, the Telerate LIBOR Page will apply. If LIBOR cannot be
determined in this manner, the following procedures will apply:

          (i)   If the Telerate LIBOR Page applies and the rate described above
     does not appear on that page, or if the Reuters Screen LIBOR Page applies
     and fewer than two of the rates described above appear on that page or no
     rate appears on any page on which only one rate normally appears, then
     LIBOR will be determined on the basis of the rates, at approximately 11:00
     A.M., London time, on the relevant LIBOR Interest Determination Date, at
     which deposits of U.S. dollars having the relevant Index Maturity,
     beginning on the relevant Interest Reset Date and in a Representative
     Amount (as defined below) are offered to prime banks in the London
     interbank market by four major banks in that market selected by the
     Calculation Agent. The Calculation Agent will request the principal London
     office of each of these banks to provide a quotation of its rate. If at
     least two quotations are provided, LIBOR for the relevant LIBOR Interest
     Determination Date will be the arithmetic mean of the quotations.

          (ii)  If fewer than two quotations are provided as described above,
     LIBOR for the relevant LIBOR Interest Determination Date will be the
     arithmetic mean of the rates for loans of U.S. dollars having the relevant
     Index Maturity, beginning on the relevant Interest Reset Date and in a
     Representative Amount to leading European banks quoted, at approximately
     11:00 A.M., New York City time, on that LIBOR Interest Determination Date,
     by three major banks in New York City selected by the Calculation Agent.

          (iii) If fewer than three banks selected by the Calculation Agent are
     quoting as described above, LIBOR for the new Interest Reset Period will be
     the rate in effect for the prior Interest Reset Period.

     Treasury Rate. If the Interest Rate Basis of this Senior Note is the
Treasury Rate, this Senior Note will bear interest at a Base Rate equal to the
Treasury Rate, as adjusted by the Spread or Spread Multiplier, if any, specified
on the face hereof.

     The Treasury Rate will be the rate for the auction, on the relevant
Treasury Interest Determination Date, of treasury bills having the Index
Maturity specified in the on the face of this Senior Note, as that rate appears
on Telerate Page (as defined below) 56 or 57 under the heading "Investment
Rate." If the Treasury Rate cannot be determined in this manner, the following
procedures will apply:

          (i)   If the rate described above does not appear on either page at
     3:00 P.M., New York City time, on the relevant Interest Calculation Date
     (unless the calculation is made earlier and the rate is available from that
     source at that time), the Treasury Rate will be the Bond Equivalent Yield
     (as defined below) of the rate, for the relevant Interest Determination
     Date, for the type of treasury bill described above, as published in H.15
     Daily Update or another recognized electronic source used for displaying
     that rate, under the heading "U.S. Government Securities/Treasury
     Bills/Auction High."

<PAGE>

          (ii)  If the rate described in the prior paragraph does not appear in
     H.15 Daily Update or another recognized electronic source at 3:00 P.M., New
     York City time, on the relevant Interest Calculation Date (unless the
     calculation is made earlier and the rate is available from one of those
     sources at that time), the Treasury Rate will be the Bond Equivalent Yield
     of the auction rate, for the relevant Treasury Interest Determination Date
     and for treasury bills of the kind described above, as announced by the
     U.S. Department of the Treasury.

          (iii) If the auction rate described in the prior paragraph is not so
     announced by 3:00 P.M., New York City time, on the relevant Interest
     Calculation Date, or if no such auction is held for the relevant week, then
     the Treasury Rate will be the Bond Equivalent Yield of the rate, for the
     relevant Treasury Interest Determination Date and for treasury bills having
     a remaining maturity closest to the specified Index Maturity, as published
     in H.15(519) under the heading "U.S. Government Securities/Treasury Bills
     (Secondary Market)."

          (iv)  If the rate described in the prior paragraph does not appear in
     H.15(519) at 3:00 P.M., New York City time, on the relevant Interest
     Calculation Date (unless the calculation is made earlier and the rate is
     available from one of those sources at that time), then the Treasury Rate
     will be the rate, for the relevant Treasury Interest Determination Date and
     for treasury bills having a remaining maturity closest to the specified
     Index Maturity, as published in H.15 Daily Update or another recognized
     electronic source used for displaying that rate, under the heading "U.S.
     Government Securities/Treasury Bills (Secondary Market)."

          (v)   If the rate described in the prior paragraph does not appear in
     H.15 Daily Update or another recognized electronic source at 3:00 P.M., New
     York City time, on the relevant Interest Calculation Date (unless the
     calculation is made earlier and the rate is available from one of those
     sources at that time), the Treasury Rate will be the Bond Equivalent Yield
     of the arithmetic mean of the secondary market bid rates as of
     approximately 3:30 P.M., New York City time, on the relevant Treasury
     Interest Determination Date, of three primary U.S. government securities
     dealers in New York City selected by the Calculation Agent for the issue of
     treasury bills with a remaining maturity closest to the specified Index
     Maturity.

          (vi)  If fewer than three dealers selected by the Calculation Agent
     are quoting as described in the prior paragraph, the Treasury Rate in
     effect for the new Interest Reset Period will be the rate in effect for the
     prior Interest Reset Period.

     CMT Rate. If the Interest Rate Basis of this Senior Note is the CMT Rate,
this Senior Note will bear interest at a Base Rate equal to the CMT Rate, as
adjusted by the Spread or Spread Multiplier, if any, specified on the face
hereof.

     The CMT Rate will be the rate displayed on the Designated CMT Telerate Page
(as defined below) under the heading ". . . Treasury Constant Maturities . . .
Federal Reserve Board Release H.15 . . . Mondays Approximately 3:45 P.M.," under
the column for the Designated CMT Index Maturity (as defined below), as follows:
(a) if the Designated CMT Telerate Page is

<PAGE>

Telerate Page 7051, the rate for the relevant Interest Determination Date, or
(b) if the Designated CMT Telerate Page is Telerate Page 7052, the weekly or
monthly average, as specified on the face of this Senior Note, for the week that
ends immediately before the week in which the relevant Interest Determination
Date falls, or for the month that ends immediately before the month in which the
relevant Interest Determination Date falls, as applicable. If the CMT Rate
cannot be determined in this manner, the following procedures will apply:

          (i)   If the applicable rate described above is not displayed on the
     relevant Designated CMT Telerate Page at 3:00 P.M., New York City time, on
     the relevant Interest Calculation Date (unless the calculation is made
     earlier and the rate is available from that source at that time), then the
     CMT Rate will be the applicable treasury constant maturity rate described
     above -- that is, for the Designated CMT Index Maturity and for either the
     relevant Interest Determination Date or the weekly or monthly average, as
     applicable -- as published in H.15(519).

          (ii)  If the applicable rate described above does not appear in
     H.15(519) at 3:00 P.M., New York City time, on the relevant Interest
     Calculation Date (unless the calculation is made earlier and the rate is
     available from one of those sources at that time), then the CMT Rate will
     be the treasury constant maturity rate, or other U.S. treasury rate, for
     the Designated CMT Index Maturity and with reference to the relevant
     Interest Determination Date, that (a) is published by the Board of
     Governors of the Federal Reserve System, or the U.S. Department of the
     Treasury, and (b) is determined by the Calculation Agent to be comparable
     to the applicable rate formerly displayed on the Designated CMT Telerate
     Page and published in H.15(519).

          (iii) If the rate described in the prior paragraph does not appear at
     3:00 P.M., New York City time, on the relevant Interest Calculation Date
     (unless the calculation is made earlier and the rate is available from one
     of those sources at that time), then the CMT Rate will be the yield to
     maturity of the arithmetic mean of the offered rates, as of approximately
     3:30 P.M., New York City time, on the relevant Interest Determination Date,
     of three primary U.S. government securities dealers in New York City
     selected by the Calculation Agent for the most recently issued treasury
     notes having an original maturity of approximately the Designated CMT Index
     Maturity and a remaining term to maturity of not less than the Designated
     CMT Index Maturity minus one year, and in a Representative Amount. In
     selecting these offered rates, the Calculation Agent will request
     quotations from five of these primary dealers and will disregard the
     highest quotation -- or, if there is equality, one of the highest -- and
     the lowest quotation -- or, if there is equality, one of the lowest.
     Treasury notes are direct, non-callable, fixed rate obligations of the U.S.
     government.

          (iv)  If the Calculation Agent is unable to obtain three quotations of
     the kind described in the prior paragraph, the CMT rate will be the yield
     to maturity of the arithmetic mean of the offered rates, as of
     approximately 3:30 P.M., New York City time, on the relevant Interest
     Determination Date, of three primary U.S. government securities dealers in
     New York City selected by the Calculation Agent for treasury notes with an
     original maturity longer than the Designated CMT Index Maturity, with a
     remaining term to maturity closest to the Designated CMT Index Maturity and
     in a Representative

<PAGE>

     Amount. In selecting these offered rates, the Calculation Agent will
     request quotations from five of these primary dealers and will disregard
     the highest quotation -- or, if there is equality, one of the highest --
     and the lowest quotation -- or, if there is equality, one of the lowest. If
     two treasury notes with an original maturity longer than the Designated CMT
     Index Maturity have remaining terms to maturity that are equally close to
     the Designated CMT Index Maturity, the Calculation Agent will obtain
     quotations for the treasury note with the shorter remaining term to
     maturity.

          (v)   If fewer than five but more than two of these primary dealers
     are quoting as described in the prior paragraph, then the CMT Rate for the
     relevant Interest Determination Date will be based on the arithmetic mean
     of the offered rates so obtained, and neither the highest nor the lowest of
     those quotations will be disregarded.

          (vi)  If two or fewer primary dealers selected by the Calculation
     Agent are quoting as described above, the CMT Rate in effect for the new
     Interest Reset Period will be the rate in effect for the prior Interest
     Reset Period.

     CD Rate. If the Interest Rate Basis of this Senior Note is the CD Rate,
this Senior Note will bear interest at a Base Rate equal to the CD Rate, as
adjusted by the Spread or Spread Multiplier, if any, specified on the face
hereof.

     The CD Rate will be the rate, on the relevant Interest Determination Date,
for negotiable U.S. dollar certificates of deposit having the Index Maturity
specified on the face of this Senior Note, as published in H.15(519) under the
heading "CDs (Secondary Market)." If the CD Rate cannot be determined in this
manner, the following procedures will apply:

          (i)   If the rate described above does not appear in H.15(519) at 3:00
     P.M., New York City time, on the relevant Interest Calculation Date (unless
     the calculation is made earlier and the rate is available from that source
     at that time), then the CD Rate will be the rate, for the relevant Interest
     Determination Date, described above as published in H.15 Daily Update or
     another recognized electronic source used for displaying that rate, under
     the heading "CDs (Secondary Market)."

          (ii)  If the rate described above does not appear in H.15(519), H.15
     Daily Update or another recognized electronic source at 3:00 P.M., New York
     City time, on the relevant Interest Calculation Date (unless the
     calculation is made earlier and the rate is available from one of those
     sources at that time), the CD Rate will be the arithmetic mean of the rates
     offered as of 10:00 A.M., New York City time, on the relevant Interest
     Determination Date, by three leading nonbank dealers in negotiable U.S.
     dollar certificates of deposit in New York City, as selected by the
     Calculation Agent for negotiable U.S. dollar certificates of deposit of
     major U.S. money center banks with a remaining maturity closest to the
     specified Index Maturity, and in a Representative Amount.

          (iii) If fewer than three dealers selected by the Calculation Agent
     are quoting as described above, the CD Rate in effect for the new Interest
     Reset Period will be the rate in effect for the prior Interest Reset
     Period.

<PAGE>

     Federal Funds Rate. If the Interest Rate Basis of this Senior Note is the
Federal Funds Rate, this Senior Note will bear interest at a Base Rate equal to
the Federal Funds Rate, as adjusted by the Spread or Spread Multiplier, if any,
specified on the face hereof.

     The Federal Funds Rate will be the rate for U.S. dollar federal funds on
the relevant Interest Determination Date, as published in H.15(519) under the
heading "Federal Funds (Effective)," as that rate is displayed on Telerate Page
120. If the Federal Funds Rate cannot be determined in this manner, the
following procedures will apply:

          (i)   If the rate described above is not displayed on Telerate Page
     120 at 3:00 P.M., New York City time, on the relevant Interest Calculation
     Date (unless the calculation is made earlier and the rate is available from
     that source at that time), then the Federal Funds Rate, for the relevant
     Interest Determination Date, will be the rate described above as published
     in H.15 Daily Update or another recognized electronic source used for
     displaying that rate, under the heading "Federal Funds (Effective)."

          (ii)  If the rate described above is not displayed on Telerate Page
     120 and does not appear in H.15 Daily Update or another recognized
     electronic source at 3:00 P.M., New York City time, on the relevant
     Interest Calculation Date (unless the calculation is made earlier and the
     rate is available from one of those sources at that time), the Federal
     Funds Rate will be the arithmetic mean of the rates for the last
     transaction in overnight, U.S. dollar federal funds arranged, before 9:00
     A.M., New York City time, on the relevant Interest Determination Date, by
     three leading brokers of U.S. dollar federal funds transactions in New York
     City selected by the Calculation Agent.

          (iii) If fewer than three brokers selected by the Calculation Agent
     are quoting as described above, the Federal Funds Rate in effect for the
     new Interest Reset Period will be the rate in effect for the prior Interest
     Reset Period.

     Prime Rate. If the Interest Rate Basis of this Senior Note is the Prime
Rate, this Senior Note will bear interest at a Base Rate equal to the Prime
Rate, as adjusted by the Spread or Spread Multiplier, if any, specified on the
face hereof.

     The Prime Rate will be the rate, for the relevant Interest Determination
Date, published in H.15(519) under the heading "Bank Prime Loan." If the Prime
Rate cannot be determined as described above, the following procedures will
apply.

          (i)   If the rate described above does not appear in H.15(519) at 3:00
     P.M., New York City time, on the relevant Interest Calculation Date (unless
     the calculation is made earlier and the rate is available from that source
     at that time), then the Prime Rate will be the rate, for the relevant
     Interest Determination Date, as published in H.15 Daily Update or another
     recognized electronic source used for the purpose of displaying that rate,
     under the heading "Bank Prime Loan."

          (ii)   If the rate described above does not appear in H.15(519), H.15
     Daily Update or another recognized electronic source at 3:00 P.M., New York
     City time, on the relevant Interest Calculation Date (unless the
     calculation is made earlier and the rate is available from one of those
     sources at that time), then the Prime Rate will be the

<PAGE>

     arithmetic mean of the rates of interest publicly announced by each bank
     appearing on the Reuters Screen US PRIME 1 Page (as defined below) as that
     bank's prime rate or base lending rate, as of 11:00 A.M., New York City
     time, on the relevant Interest Determination Date.

          (iii) If fewer than four of these rates appear on the Reuters Screen
     US PRIME 1 Page, the Prime Rate will be the arithmetic mean of the prime
     rates or base lending rates, as of the close of business on the relevant
     Interest Determination Date, of three major banks in New York City selected
     by the Calculation Agent. For this purpose, the Calculation Agent will use
     rates quoted on the basis of the actual number of days in the year divided
     by a 360-day year.

          (iv)  If fewer than three banks selected by the Calculation Agent are
     quoting as described above, the Prime Rate for the new Interest Reset
     Period will be the rate in effect for the prior Interest Reset Period.

     Definitions of Terms Used in Interest Rate Bases. The terms listed below
are defined as follows:

     "Bond Equivalent Yield" means a yield expressed as a percentage and
calculated in accordance with the following formula:

                       D x N       x 100
                  ---------------
                   360 - (D x M)

where (i) "D" means the annual rate for treasury bills quoted on a bank discount
basis and expressed as a decimal, (ii) "N" means the number of days in the year,
365 or 366, as the case may be, and (iii) "M" means the actual number of days in
the applicable Interest Reset Period.

     "Business Day" means, for purposes of calculating interest on this Senior
Note, a day that is a Monday, Tuesday, Wednesday, Thursday or Friday that is not
a day on which banking institutions in New York City generally are authorized or
obligated by law, regulation or executive order to close and, if the Interest
Rate Basis specified on the face hereof is LIBOR, is also a London Business Day.

     "Designated CMT Index Maturity" means the Index Maturity for a Note having
as its Interest Rate Basis the CMT Rate and will be the original period to
maturity of a U.S. treasury security -- either 1, 2, 3, 5, 7, 10, 20 or 30 years
-- specified in the applicable pricing supplement. If no such original maturity
period is so specified, the Designated CMT Index Maturity will be 2 years.

     "Designated CMT Telerate Page" means the Telerate Page specified on the
face of this Senior Note (if the Interest Rate Basis is the CMT Rate) that
displays treasury constant maturities as reported in H.15(519). If no Telerate
Page is so specified, then the applicable page will be Telerate Page 7052. If
Telerate Page 7052 applies but this Senior Note does not specify whether the
weekly or monthly average applies, the weekly average will apply.

     "H.15(519)" means the weekly statistical release entitled "Statistical
Release H.15

<PAGE>

(519)," or any successor publication, published by the Board of Governors of the
Federal Reserve System.

     "H.15 Daily Update" means the daily update of H.15(519) available through
the world wide web site of the Board of Governors of the Federal Reserve System,
at http://www.federalreserve.gov/releases/h15/update or any successor site or
publication.

     "Index Maturity" means the period to maturity of the instrument or
obligation on which the interest rate formula is based, as specified on the face
of this Senior Note.

     "London Business Day" means any day on which dealings in U.S. dollars are
transacted in the London interbank market.

     "Money Market Yield" means a yield expressed as a percentage and calculated
in accordance with the following formula:

                       D x 360     x 100
                  ---------------
                   360 - (D x M)

where (a) "D" means the annual rate for commercial paper quoted on a bank
discount basis and expressed as a decimal, and (b) "M" means the actual number
of days in the relevant Interest Reset Period.

     "Representative Amount" means an amount that, in the Calculation Agent's
judgment, is representative of a single transaction in the relevant market at
the relevant time.

     "Reuters Screen LIBOR Page" means the display on the Reuters Monitor Money
Rates Service, or any successor service, on the page designated as "LIBO" or any
replacement page or pages on which London interbank rates of major banks for
U.S. dollars are displayed.

     "Reuters Screen US PRIME 1 Page" means the display on the "US PRIME 1" page
on the Reuters Monitor Money Rates Service, or any successor service, or any
replacement page or pages on that service, for the purpose of displaying prime
rates or base lending rates of major U.S. banks.

     "Telerate LIBOR Page" means Telerate Page 3750 or any replacement page or
pages on which London interbank rates of major banks for U.S. dollars are
displayed.

     "Telerate Page" means the display on Bridge Telerate, Inc., or any
successor service, on the page or pages specified in a Senior Note, or any
replacement page or pages on that service.

     References to particular headings on pages designated by the following
terms include any successor or replacement heading or headings as determined by
the Calculation Agent: CMT Telerate Page, H.15(519), H.15 Daily Update, Reuters
Screen LIBOR Page, Reuters Screen US PRIME 1 Page, Telerate LIBOR Page or
Telerate Page.

     If this Senior Note is an Original Issue Discount Note and if an Event of
Default with respect to the Senior Notes shall have occurred and be continuing,
the Default Amount (as

<PAGE>

defined hereafter) of this Senior Note may be declared due and payable in the
manner and with the effect provided herein. The "Default Amount" shall be equal
to the adjusted issue price as of the first day of the accrual period as
determined under Treasury Regulation Section 1.1275-1(b) (or successor
regulation) under the United States Internal Revenue Code of 1986, as amended,
in which the date of acceleration occurs increased by the daily portion of the
original issue discount for each day in such accrual period ending on the date
of acceleration, as determined under Treasury Regulation Section 1.1275-1(b) (or
successor regulation) under the United States Internal Revenue Code of 1986, as
amended. Upon payment of (i) the amount of principal or premium, if any, so
declared due and payable and (ii) interest on any overdue principal and overdue
interest or premium, if any (in each case to the extent that the payment of such
interest shall be legally enforceable), all of the Bank's obligations in respect
of the payment of the principal of, and interest or premium, if any, on, this
Senior Note shall terminate.

     In case any Senior Note shall at any time become mutilated, destroyed, lost
or stolen and such Senior Note or evidence satisfactory to the Bank of the loss,
theft or destruction thereof (together with indemnity satisfactory to the Bank
and such other documents or proof as may be required in the premises) shall be
delivered to the Bank, a new Senior Note of like tenor will be issued by the
Bank in exchange for the Senior Note so mutilated, or in lieu of the Senior Note
so destroyed or lost or stolen. All expenses and reasonable charges associated
with procuring the indemnity referred to above and with the preparation,
authentication and delivery of a new Senior Note shall be borne by the holder of
the Senior Note so mutilated, destroyed, lost or stolen. If any Senior Note
which has matured or is about to mature shall become mutilated, destroyed, lost
or stolen, the Bank may, instead of issuing a substitute Senior Note, pay or
authorize the payment of the same (without surrender thereof except in the case
of a mutilated Senior Note) upon compliance by the holder thereof with the
provisions of this paragraph.

     No recourse shall be had for the payment of the principal of, premium, if
any, or interest on, this Senior Note, for any claim based hereon, or otherwise
in respect hereof, against any shareholder, employee, officer or director, as
such, past, present or future, of the Bank or of any successor corporation,
either directly or through the Bank or any successor corporation, whether by
virtue of any constitution, statute or rule of law or by the enforcement of any
assessment or penalty or otherwise, all such liability being, by the acceptance
hereof and as part of the consideration for the issue hereof, expressly waived
and released.

     The occurrence of any of the following events shall constitute an "Event of
Default" with respect to this Senior Note: (i) default in the payment of any
interest with respect to this Senior Note when due, which continues for 30 days;
(ii) default in the payment of any principal of, or premium, if any, on, this
Senior Note when due; (iii) the entry by a court having jurisdiction in the
premises of (a) a decree or order for relief in respect of the Bank in an
involuntary case or proceeding under any applicable United States federal or
state bankruptcy, insolvency, reorganization or other similar law or (b) a
decree or order appointing a conservator, receiver, liquidator, assignee,
trustee, sequestrator or any other similar official of the Bank, or of
substantially all of the property of the Bank, or ordering the winding up or
liquidation of the affairs of the Bank, and the continuance of any such decree
or order for relief or any such other decree or order unstayed and in effect for
a period of 60 consecutive days; or (iv) the commencement by the Bank of a
voluntary case or proceeding under any applicable United States federal or state
bankruptcy, insolvency, reorganization or other similar law or of any other

<PAGE>

case or proceeding to be adjudicated as bankrupt or insolvent, or the consent by
the Bank to the entry of a decree or order for relief in an involuntary case or
proceeding under any applicable United States federal or state bankruptcy,
insolvency, reorganization or other similar law or to the commencement of any
bankruptcy or insolvency case or proceeding, or the filing by the Bank of a
petition or answer or consent seeking reorganization or relief under any
applicable United States federal or state law, or the consent by the Bank to the
filing of such petition or to the appointment of or taking possession by a
custodian, receiver, liquidator, assignee, trustee, sequestrator or similar
official of the Bank or of substantially all of the property of the Bank, or the
making by the Bank of an assignment for the benefit of creditors, or the taking
of corporate action by the Bank in furtherance of any such action. If an Event
of Default shall occur and be continuing, the holder of this Senior Note may
declare the principal amount of, and accrued interest and premium, if any, on,
this Senior Note due and payable immediately by written notice to the Bank. Upon
such declaration and notice, such principal amount, accrued interest and
premium, if any, shall become due and payable seven calendar days after such
notice. Any Event of Default with respect to this Senior Note may be waived by
the holder hereof.

     No provision of this Senior Note shall alter or impair the obligation of
the Bank, which is absolute and unconditional, to pay the principal, and
premium, if any, and interest on, this Senior Note in U.S. dollars at the times,
places and rate herein prescribed.

     The Bank shall cause to be kept at the corporate trust office of the Senior
Note Registrar designated below a register (the register maintained in such
corporate trust office or any other office or agency of the Bank in the Place of
Payment herein referred to as the "Senior Note Register") in which, subject to
such reasonable regulations as it may prescribe, the Bank shall provide for the
registration of the Senior Notes and of transfers of the Senior Notes. The Bank
is hereby initially appointed "Senior Note Registrar" for the purposes of
registering the Senior Notes and transfers of the Senior Notes as herein
provided.

     The transfer of this Senior Note is registrable in the Senior Note
Register, upon surrender of this Senior Note for registration of transfer at the
office or agency of the Bank in the Place of Payment, duly endorsed by, or
accompanied by a written instrument of transfer in form satisfactory to the Bank
and the Paying Agent duly executed by, the holder hereof or his attorney duly
authorized in writing, and thereupon one or more new Senior Notes of like tenor,
of authorized denominations and for the same aggregate principal amount, will be
issued to the designated transferee or transferees. Notwithstanding the
foregoing, the Bank shall not be required to register the transfer of any Senior
Note that has been called for redemption during a period beginning at the
opening of business fifteen calendar days before the date of mailing of a notice
of such redemption and ending at the close of business on the date of such
mailing.

     No service charge shall be made for any such registration of transfer or
exchange, but the Bank may require payment of a sum sufficient to cover any tax
or other governmental charge payable in connection therewith.

     The Senior Notes are issuable only in registered form without coupons in
minimum denominations of $250,000 and any integral multiple of $1,000 in excess
thereof. Each owner of a beneficial interest in this Senior Note is required to
hold a beneficial interest in $250,000 principal amount or any integral multiple
of $1,000 in excess thereof of this Senior Note at all

<PAGE>

times.

     Prior to due presentment of this Senior Note for registration of transfer,
the Bank, the Paying Agent or any agent of the Bank or the Paying Agent may
treat the person in whose name this Senior Note is registered as the owner
hereof for all purposes, whether or not this Senior Note be overdue, and neither
the Bank, the Paying Agent nor any such agent shall be affected by notice to the
contrary.

     All notices to the Bank under this Senior Note shall be in writing and
addressed to the Bank at 50 South LaSalle Street, Chicago, Illinois 60675, or to
such other address of the Bank as the Bank may notify the holders of the Senior
Notes.

     This Senior Note shall be governed by, and construed in accordance with,
the laws of the State of Illinois.

     IN WITNESS WHEREOF, the Bank has caused this instrument to be duly
executed.

                                              THE NORTHERN TRUST COMPANY

                                              By:_______________________________
                                                     Authorized Signatory

<PAGE>

                                  ABBREVIATIONS

       The following abbreviations, when used in the inscription on the face of
the within Senior Note, shall be construed as though they were written out in
full according to applicable laws or regulations.

       TEN COM - as tenants in common

       TEN ENT - as tenants by the entireties

       JT TEN  -  as joint tenants with right of survivorship and not as tenants
in common

UNIF GIFT MIN ACT -     ____________            Custodian           ____________
                          (Cust)                                      (Minor)
                  under Uniform Gifts to Minors Act

                       __________________________________
                                     (State)

                    Additional abbreviations may also be used
                          though not in the above list.

<PAGE>

                                   ASSIGNMENT

     FOR VALVE RECEIVED, the undersigned hereby sell(s), assign(s) and
transfer(s) unto

PLEASE INSERT SOCIAL SECURITY NUMBER OR OTHER IDENTIFYING NUMBER OF ASSIGNEE

________________________________________________________________________________

                  (Please print or typewrite name and address,
                     including postal zip code, of assignee)

________________________________________________________________________________

the within Senior Note and all rights thereunder, and hereby irrevocably
constitutes and appoints _______________________________________________________

to transfer said Senior Note on the books of the Bank, with full power of
substitution in the premises.

Dated:____________________________

                                                NOTICE: The signature to this
                                                assignment must correspond with
                                                the name as written upon the
                                                face of the within Senior Note
                                                in every particular, without
                                                alteration or enlargement or any
                                                change whatsoever.

                            OPTION TO ELECT REPAYMENT

     The undersigned hereby irrevocably request(s) and instruct(s) the Bank to
repay this Senior Note (or portion hereof specified below) pursuant to its terms
and at a price equal to 100% of the principal amount hereof to be repaid,
together with accrued and unpaid interest hereon, payable to the date of
repayment, to the undersigned, at___

(Please print or typewrite name and address of the undersigned)

     For this Senior Note to be repaid, the undersigned must give to the Paying
Agent at its

<PAGE>

offices located at 50 South LaSalle Street (Level BB-A), Chicago, Illinois
60675, Attention: Securities Services, or at such other place or places of which
the Bank shall from time to time notify the holders of the Senior Notes, not
more than 60 days nor less than 30 days prior to the date of repayment, this
Senior Note with this "Option to Elect Repayment" form duly completed.

     If less than the entire principal amount of this Senior Note is to be
repaid, specify the portion hereof (which shall be increments of $1,000) which
the holder elects to have repaid and specify the denomination or denominations
(which shall be $250,000 or an integral multiple of $1,000 in excess thereof) of
the Senior Notes to be issued to the holder for the portion of this Senior Note
not being repaid (in the absence of any such specification, one such Senior Note
will be issued for the portion not being repaid):

$_______________________

Dated:________________________

                                                NOTICE:  The signature on this
                                                "Option to Elect Repayment" form
                                                must correspond with the name as
                                                written upon the face of the
                                                within Senior Note in every
                                                particular, without alteration
                                                or enlargement or any change
                                                whatsoever.

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