Document:

EXHIBIT 4.7

 

 

PREFERRED SECURITIES GUARANTEE AGREEMENT

 

BY AND BETWEEN

 

FIRST BUSEY CORPORATION

 

AND

 

WILMINGTON TRUST COMPANY

 

Dated as of
                ,
2008

 

 

 

TABLE
OF CONTENTS

 

	
  SECTION

  	
   

  	
  HEADING

  	
   

  	
  PAGE

  
	
   

  	
   

  	
   

  
	
  ARTICLE I

  	
  DEFINITIONS AND INTERPRETATION

  	
  1

  
	
  Section 1.1.

  	
  Definitions and Interpretation

  	
  1

  
	
   

  	
   

  	
   

  
	
  ARTICLE II

  	
  TRUST INDENTURE ACT

  	
  5

  
	
  Section 2.1.

  	
  Trust Indenture Act; Application

  	
  5

  
	
  Section 2.2.

  	
  The List of Holders of the Securities

  	
  5

  
	
  Section 2.3.

  	
  Reports by the Preferred Guarantee Trustee

  	
  5

  
	
  Section 2.4.

  	
  Periodic Reports to the Preferred Guarantee Trustee

  	
  5

  
	
  Section 2.5.

  	
  Evidence of Compliance with Conditions Precedent

  	
  5

  
	
  Section 2.6.

  	
  Events of Default; Waiver

  	
  6

  
	
  Section 2.7.

  	
  Event of Default; Notice

  	
  6

  
	
  Section 2.8.

  	
  Conflicting Interests

  	
  6

  
	
   

  	
   

  	
   

  
	
  ARTICLE III

  	
  POWERS, DUTIES AND RIGHTS OF THE
  PREFERRED GUARANTEE TRUSTEE

  	
  6

  
	
  Section 3.1.

  	
  Powers and Duties of the Preferred Guarantee Trustee

  	
  6

  
	
  Section 3.2.

  	
  Certain Rights of the Preferred Guarantee Trustee

  	
  8

  
	
  Section 3.3.

  	
  Not Responsible for Recitals or Issuance of Guarantee

  	
  10

  
	
   

  	
   

  	
   

  
	
  ARTICLE IV

  	
  THE PREFERRED GUARANTEE TRUSTEE

  	
  10

  
	
  Section 4.1.

  	
  The Preferred Guarantee Trustee; Eligibility

  	
  10

  
	
  Section 4.2.

  	
  Appointment, Removal and Resignation of the Preferred Guarantee Trustee

  	
  11

  
	
   

  	
   

  	
   

  
	
  ARTICLE V

  	
  GUARANTEE

  	
  12

  
	
  Section 5.1.

  	
  Guarantee

  	
  12

  
	
  Section 5.2.

  	
  Waiver of Notice and Demand

  	
  12

  
	
  Section 5.3.

  	
  Obligations not Affected

  	
  12

  
	
  Section 5.4.

  	
  Rights of the Holders

  	
  13

  
	
  Section 5.5.

  	
  Guarantee of Payment

  	
  13

  
	
  Section 5.6.

  	
  Subrogation

  	
  13

  
	
  Section 5.7.

  	
  Independent Obligations

  	
  14

  
	
   

  	
   

  	
   

  
	
  ARTICLE VI

  	
  LIMITATION OF TRANSACTIONS; SUBORDINATION

  	
  14

  
	
  Section 6.1.

  	
  Limitation on Transactions

  	
  14

  
	
  Section 6.2.

  	
  Ranking

  	
  14

  
	
   

  	
   

  	
   

  
	
  ARTICLE VII

  	
  TERMINATION

  	
  14

  
	
  Section 7.1.

  	
  Termination

  	
  14

  
	
   

  	
   

  	
   

  
	
  ARTICLE VIII

  	
  INDEMNIFICATION

  	
  15

  
	
  Section 8.1.

  	
  Exculpation

  	
  15

  
	
  Section 8.2.

  	
  Indemnification

  	
  15

  

 

 

	
  ARTICLE IX

  	
  MISCELLANEOUS

  	
  15

  
	
  Section 9.1.

  	
  Successors and Assigns

  	
  15

  
	
  Section 9.2.

  	
  Amendments

  	
  15

  
	
  Section 9.3.

  	
  Notices

  	
  16

  
	
  Section 9.4.

  	
  Benefit

  	
  16

  
	
  Section 9.5.

  	
  Governing Law

  	
  16

  

 

ii

 

CROSS-REFERENCE
TABLE

 

	
  SECTION OF

  	
   

  	
  SECTION OF

  	
   

  
	
  TRUST INDENTURE ACT

  	
   

  	
  GUARANTEE

  	
   

  
	
  OF 1939, AS AMENDED

  	
   

  	
  AGREEMENT

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  310(a)

  	
   

  	
  4.1(a)

  	
   

  
	
  310(b)

  	
   

  	
  2.8, 4.1(c)

  	
   

  
	
  310(c)

  	
   

  	
  Not Applicable

  	
   

  
	
  311(a)

  	
   

  	
  2.2(b)

  	
   

  
	
  311(b)

  	
   

  	
  2.2(b)

  	
   

  
	
  311(c)

  	
   

  	
  Not Applicable

  	
   

  
	
  312(a)

  	
   

  	
  2.2(a)

  	
   

  
	
  312(b)

  	
   

  	
  2.2(b)

  	
   

  
	
  313

  	
   

  	
  2.3

  	
   

  
	
  314(a)

  	
   

  	
  2.4

  	
   

  
	
  314(b)

  	
   

  	
  Not Applicable

  	
   

  
	
  314(c)

  	
   

  	
  2.5

  	
   

  
	
  314(d)

  	
   

  	
  Not Applicable

  	
   

  
	
  314(e)

  	
   

  	
  1.1, 2.5, 3.2

  	
   

  
	
  314(f)

  	
   

  	
  2.1, 3.2

  	
   

  
	
  315(a)

  	
   

  	
  3.1(d)

  	
   

  
	
  315(b)

  	
   

  	
  2.7

  	
   

  
	
  315(c)

  	
   

  	
  3.1

  	
   

  
	
  315(d)

  	
   

  	
  3.1(d)

  	
   

  
	
  316(a)

  	
   

  	
  1.1, 2.6, 5.4

  	
   

  
	
  317(a)

  	
   

  	
  3.1

  	
   

  
	
  317(b)

  	
   

  	
  Not Applicable

  	
   

  
	
  318(a)

  	
   

  	
  2.1(b)

  	
   

  
	
  318(b)

  	
   

  	
  2.1

  	
   

  
	
  318(c)

  	
   

  	
  2.1(a)

  	
   

  

 

Note: This Cross-Reference Table does not constitute
part of this Agreement and shall not affect the interpretation of any of its
terms or provisions.

 

iii

 

PREFERRED
SECURITIES GUARANTEE AGREEMENT

 

THIS PREFERRED SECURITIES GUARANTEE AGREEMENT (this “Preferred Securities Guarantee”), dated as of
                ,
2008, is executed and delivered by FIRST BUSEY CORPORATION, a Nevada
corporation (the “Guarantor”), and WILMINGTON
TRUST COMPANY, a Delaware banking corporation, as trustee (the “Preferred Guarantee Trustee”), for the benefit of the
Holders (as defined herein) from time to time of the Preferred Securities (as
defined herein) of FIRST BUSEY STATUTORY TRUST V, a Delaware statutory
trust (the “Trust”).

 

RECITALS

 

WHEREAS, pursuant to an Amended and Restated Trust
Agreement (the “Trust Agreement”), dated as of
                ,
2008, among the trustees of the Trust named therein, the Guarantor, as
depositor, and the Holders, the Trust is issuing on the date hereof up to
3,450,000 preferred securities, having an aggregate liquidation amount of
$34,500,000 designated the     .    %
Cumulative Trust Preferred Securities (the “Preferred Securities”);

 

WHEREAS, as incentive for the Holders to purchase the
Preferred Securities, the Guarantor desires irrevocably and unconditionally to
agree, to the extent set forth in this Preferred Securities Guarantee, to pay
to the Holders of the Preferred Securities the Guarantee Payments (as defined
herein) and to make certain other payments on the terms and conditions set
forth herein.

 

NOW, THEREFORE, in consideration of the purchase by
each Holder of Preferred Securities, which purchase the Guarantor hereby agrees
shall benefit the Guarantor, the Guarantor executes and delivers this Preferred
Securities Guarantee for the benefit of the Holders.

 

Article I

 

DEFINITIONS AND INTERPRETATION

 

Section 1.1.                                Definitions and Interpretation.  In this Preferred Securities Guarantee,
unless the context otherwise requires:

 

(a)                               capitalized terms used in this
Preferred Securities Guarantee but not defined in the preamble above have the
respective meanings assigned to them in this Section 1.1;

 

(b)                              terms defined in the Trust
Agreement as at the date of execution of this Preferred Securities Guarantee
have the same meaning when used in this Preferred Securities Guarantee, unless
otherwise defined in this Preferred Securities Guarantee;

 

 

(c)                               a term defined anywhere in this
Preferred Securities Guarantee has the same meaning throughout;

 

(d)                              all references to “the Preferred
Securities Guarantee” or “this Preferred Securities Guarantee” are to this
Preferred Securities Guarantee as modified, supplemented or amended from time
to time;

 

(e)                               all references in this Preferred
Securities Guarantee to Articles and Sections are to Articles and Sections of
this Preferred Securities Guarantee, unless otherwise specified;

 

(f)                                 a term defined in the Trust
Indenture Act has the same meaning when used in this Preferred Securities
Guarantee, unless otherwise defined in this Preferred Securities Guarantee or
unless the context otherwise requires; and

 

(g)                              a reference to the singular
includes the plural and vice versa.

 

“Affiliate” has the same meaning
as given to that term in Rule 405 of the Securities Act of 1933, as
amended, or any successor rule thereunder.

 

“Business Day” means any day
other than a Saturday, Sunday, a day on which federal or state banking institutions
in the Borough of Manhattan, The City of New York are authorized or
required by law, executive order or regulation to close or a day on which the
Corporate Trust Office of the Preferred Guarantee Trustee is closed for
business.

 

“Corporate Trust Office” means
the office of the Preferred Guarantee Trustee at which the corporate trust
business of the Preferred Guarantee Trustee shall, at any particular time, be
principally administered, which office at the date of execution of this
Preferred Securities Guarantee is located at Rodney Square North, 1100 North
Market Street, Wilmington, Delaware 19890-0001, Attention: Corporate Trust
Administration.

 

“Covered Person” means any Holder
or beneficial owner of Preferred Securities.

 

“Debentures” means the
    .    % Subordinated Debentures due
                  ,
2038, of the Debenture Issuer held by the Property Trustee of the Trust.

 

“Debenture Issuer” means First
Busey Corporation, issuer of the Debentures under the Indenture.

 

“Event of Default” means a default
by the Guarantor on any of its payment or other obligations under this
Preferred Securities Guarantee.

 

“Guarantee Payments” means the
following payments or distributions, without duplication, with respect to the
Preferred Securities, to the extent not paid or made by the Trust: (i) any
accrued and unpaid Distributions that are required to be paid on such Preferred
Securities, 

 

2

 

to the extent the Trust
shall have funds available therefor, (ii) the redemption price, including
all accrued and unpaid Distributions to the date of redemption (the “Redemption Price”), to the extent the Trust has funds
available therefor, with respect to any Preferred Securities called for
redemption by the Trust, and (iii) upon a voluntary or involuntary
dissolution, winding-up or termination of the Trust (other than in connection
with the distribution of the Debentures to the Holders in exchange for the
Preferred Securities as provided in the Trust Agreement), the lesser of (A) the
aggregate of the Liquidation Amount and all accrued and unpaid Distributions on
the Preferred Securities to the date of payment, to the extent the Trust shall
have funds available therefor (the “Liquidation Distribution”),
and (B) the amount of assets of the Trust remaining available for
distribution to Holders in liquidation of the Trust.

 

“Holder” means a Person in whose
name a Preferred Security is or Preferred Securities are registered in the
Securities Register; provided, however,
that, in determining whether the holders of the requisite percentage of the
Preferred Securities have given any request, notice, consent or waiver
hereunder, “Holder” shall not include the Guarantor, the Preferred Guarantee
Trustee or any of their respective Affiliates.

 

“Indemnified Person” means the
Preferred Guarantee Trustee, any Affiliate of the Preferred Guarantee Trustee,
or any officers, directors, shareholders, members, partners, employees,
representatives, nominees, custodians or agents of the Preferred Guarantee
Trustee.

 

“Indenture” means the Indenture,
dated as of
                    ,
2008, among the Debenture Issuer and Wilmington Trust Company, as trustee, and
any indenture supplemental thereto pursuant to which the Debentures are to be
issued to the Property Trustee of the Trust.

 

“Liquidation Amount” means the
stated value of $10 per Preferred Security.

 

“Liquidation Distribution” has
the meaning provided therefor in the definition of Guarantee Payments.

 

“List of Holders” has the meaning
set forth in Section 2.2.

 

“Majority in Liquidation Amount of the Preferred
Securities” means the Holders of more than 50% of the
Liquidation Amount (including the stated value that would be paid on
redemption, liquidation or otherwise, plus accrued and unpaid Distributions to
the date upon which the voting percentages are determined) of all of the
Preferred Securities.

 

“Officers’ Certificate” means,
with respect to any Person, a certificate signed by two authorized officers of
such Person, at least one of whom shall be the principal executive officer,
principal financial officer, principal accounting officer, treasurer or any
vice president of such Person.  Any
Officers’ Certificate delivered with respect to compliance with a condition or
covenant provided for in this Preferred Securities Guarantee shall include:

 

(a)                               a statement that each officer
signing the Officers’ Certificate has read the covenant or condition and the
definition relating thereto;

 

3

 

(b)                              a brief statement of the nature
and scope of the examination or investigation undertaken by each officer in
rendering the Officers’ Certificate;

 

(c)                               a statement that each such
officer has made such examination or investigation as, in such officer’s
opinion, is necessary to enable such officer to express an informed opinion as
to whether or not such covenant or condition has been complied with; and

 

(d)                              a statement as to whether, in
the opinion of each such officer, such condition or covenant has been complied
with.

 

“Person” means a legal person,
including any individual, corporation, estate, partnership, joint venture,
association, joint stock company, limited liability company, trust,
unincorporated association, or government or any agency or political
subdivision thereof, or any other entity of whatever nature.

 

“Preferred Guarantee Trustee”
means Wilmington Trust Company, until a Successor Preferred Guarantee Trustee
has been appointed and has accepted such appointment pursuant to the terms of
this Preferred Securities Guarantee and thereafter means each such Successor
Preferred Guarantee Trustee.

 

“Redemption Price” has the
meaning provided therefor in the definition of Guarantee Payments.

 

“Responsible Officer” means, with
respect to the Preferred Guarantee Trustee, any officer within the Corporate
Trust Office of the Preferred Guarantee Trustee with direct responsibility for
the administration of this Preferred Securities Guarantee, including any
vice president, any assistant vice president, any assistant secretary, the
treasurer, any assistant treasurer or other officer of the Corporate Trust
Office of the Preferred Guarantee Trustee customarily performing functions
similar to those performed by any of the above designated officers and also
means, with respect to a particular corporate trust matter, any other officer
to whom such matter is referred because of that officer’s knowledge of and
familiarity with the particular subject.

 

“Securities Register” and “Securities Registrar” have the meanings assigned to such
terms as in the Trust Agreement (as defined in the Indenture).

 

“Successor Preferred Guarantee Trustee”
means a successor Preferred Guarantee Trustee possessing the qualifications to
act as Preferred Guarantee Trustee under Section 4.1.

 

“Trust Indenture Act” means the
Trust Indenture Act of 1939, as amended, as in force at the date of which this
instrument was executed; provided, however,
that in the event the Trust Indenture Act of 1939, as amended, is amended after
such date, “Trust Indenture Act” means, to the extent required by any such
amendment, the Trust Indenture Act of 1939, as so amended.

 

4

 

Article II

 

TRUST INDENTURE ACT

 

Section 2.1.                                Trust Indenture Act; Application.  (a) This Preferred Securities Guarantee
is subject to the provisions of the Trust Indenture Act that are required to be
part of this Preferred Securities Guarantee and shall, to the extent
applicable, be governed by such provisions.

 

(b)                              If and to the extent that any
provision of this Preferred Securities Guarantee limits, qualifies or conflicts
with the duties imposed by Section 310 to 317, inclusive, of the Trust
Indenture Act, such imposed duties shall control.

 

Section 2.2.                                The List of Holders of the
Securities.  (a) In the event the Preferred Guarantee
Trustee is not also the Securities Registrar, the Guarantor shall provide the
Preferred Guarantee Trustee with a list, in such form as the Preferred
Guarantee Trustee may reasonably require, of the names and addresses of the
Holders of the Preferred Securities (the “List of Holders”)
(i) within three Business Days after March 1, June 1, September 1
and December 1 of each year, and (ii) at any other time within 30
days of receipt by the Guarantor of a written request for a List of Holders as
of a date no more than 15 days before such List of Holders is given to the
Preferred Guarantee Trustee, provided, that
the Guarantor shall not be obligated to provide such List of Holders at any
time the List of Holders does not differ from the most recent List of Holders
given to the Preferred Guarantee Trustee by the Guarantor. The Preferred
Guarantee Trustee may destroy any List of Holders previously given to it on
receipt of a new List of Holders.

 

(b)                              The Preferred Guarantee Trustee
shall comply with its obligations under Sections 311(a), 311(b) and Section 312(b) of
the Trust Indenture Act.

 

Section 2.3.                                Reports by the Preferred
Guarantee Trustee.  On or before July 15 of each year,
commencing July 15, 2009, the Preferred Guarantee Trustee shall provide to
the Holders of the Preferred Securities such reports as are required by Section 313
of the Trust Indenture Act, if any, in the form and in the manner provided by Section 313
of the Trust Indenture Act. The Preferred Guarantee Trustee shall also comply
with the requirements of Section 313(d) of the Trust Indenture Act.

 

Section 2.4.                                Periodic Reports to the Preferred
Guarantee Trustee.  The Guarantor shall provide to the Preferred
Guarantee Trustee such documents, reports and information as required by Section 314
of the Trust Indenture Act, if any, and the compliance certificate required by Section 314
of the Trust Indenture Act in the form, in the manner and at the times required
by Section 314 of the Trust Indenture Act.

 

Section 2.5.                                Evidence of Compliance with
Conditions Precedent.  The Guarantor shall provide to the Preferred
Guarantee Trustee such evidence of compliance with any conditions precedent, if
any, provided for in this Preferred Securities Guarantee that relate to any of
the 

 

5

 

matters set forth in Section 314(c) of the Trust
Indenture Act. Any certificate or opinion required to be given by an officer
pursuant to Section 314(c)(1) may be given in the form of an Officers’
Certificate.

 

Section 2.6.                                Events of Default; Waiver.  The Holders of a Majority in Liquidation
Amount of the Preferred Securities may, by vote, on behalf of the Holders of
all of the Preferred Securities, waive any past Event of Default and its
consequences. Upon such waiver, any such Event of Default shall cease to exist,
and any Event of Default arising therefrom shall be deemed to have been cured,
for every purpose of this Preferred Securities Guarantee, but no such waiver
shall extend to any subsequent or other default or Event of Default or impair
any right consequent thereon.

 

Section 2.7.                                Event of Default; Notice.  (a) The Preferred Guarantee Trustee
shall, within 90 days after the occurrence of an Event of Default, transmit by
mail, first class postage prepaid, to the Holders of the Preferred Securities,
notices of all Events of Default actually known to a Responsible Officer of the
Preferred Guarantee Trustee, unless such Events of Default have been cured
before the giving of such notice, provided that,
except in the case of a default by Guarantor under the terms of this Preferred
Securities Guarantee on any of its payment obligations, the Preferred Guarantee
Trustee shall be protected in withholding such notice if and so long as a
Responsible Officer of the Preferred Guarantee Trustee in good faith determines
that the withholding of such notice is in the interests of the Holders of the
Preferred Securities.

 

(b)                              The Preferred Guarantee Trustee
shall not be deemed to have knowledge of any Event of Default unless the
Preferred Guarantee Trustee shall have received written notice, or of which a
Responsible Officer of the Preferred Guarantee Trustee charged with the
administration of the Trust Agreement shall have obtained actual knowledge, of
such Event of Default.

 

Section 2.8.                                Conflicting Interests.  The Trust Agreement shall be deemed to be
specifically described in this Preferred Securities Guarantee for the purposes
of clause (i) of the first proviso contained in Section 310(b) of
the Trust Indenture Act.

 

Article III

 

POWERS, DUTIES AND RIGHTS OF THE PREFERRED GUARANTEE TRUSTEE

 

Section 3.1.                                Powers and Duties of the
Preferred Guarantee Trustee.  (a) This Preferred Securities Guarantee
shall be held by the Preferred Guarantee Trustee for the benefit of the Holders
of the Preferred Securities, and the Preferred Guarantee Trustee shall not
transfer this Preferred Securities Guarantee to any Person except a Holder of
Preferred Securities exercising his or her rights pursuant to Section 5.4(b) or
to a Successor Preferred Guarantee Trustee on acceptance by such Successor
Preferred Guarantee Trustee of its appointment to act as Successor Preferred
Guarantee Trustee. The right, title and interest of the Preferred Guarantee
Trustee shall automatically vest in any Successor Preferred Guarantee Trustee,
and such vesting and cessation 

 

6

 

of title shall be effective whether or not conveyancing
documents have been executed and delivered pursuant to the appointment of such
Successor Preferred Guarantee Trustee.

 

(b)                              If an Event of Default actually
known to a Responsible Officer of the Preferred Guarantee Trustee has occurred
and is continuing, the Preferred Guarantee Trustee shall enforce this Preferred
Securities Guarantee for the benefit of the Holders of the Preferred
Securities.

 

(c)                               The Preferred Guarantee Trustee,
before the occurrence of any Event of Default and after the curing of all
Events of Default that may have occurred, shall undertake to perform only such
duties as are specifically set forth in this Preferred Securities Guarantee,
and no implied covenants shall be read into this Preferred Securities Guarantee
against the Preferred Guarantee Trustee. In case an Event of Default has
occurred (that has not been cured or waived pursuant to Section 2.6) and
is actually known to a Responsible Officer of the Preferred Guarantee Trustee,
the Preferred Guarantee Trustee shall exercise such of the rights and powers
vested in it by this Preferred Securities Guarantee, and use the same degree of
care and skill in its exercise thereof, as a prudent person would exercise or
use under the circumstances in the conduct of his or her own affairs.

 

(d)                              No provision of this Preferred
Securities Guarantee shall be construed to relieve the Preferred Guarantee
Trustee from liability for its own negligent action, its own negligent failure
to act, or its own willful misconduct, except that:

 

(i)                                      prior to the occurrence of any
Event of Default and after the curing or waiving of all such Events of Default
that may have occurred:

 

(A)                              the duties and obligations of
the Preferred Guarantee Trustee shall be determined solely by the express
provisions of this Preferred Securities Guarantee, and the Preferred Guarantee
Trustee shall not be liable except for the performance of such duties and
obligations as are specifically set forth in this Preferred Securities
Guarantee, and no implied covenants or obligations shall be read into this
Preferred Securities Guarantee against the Preferred Guarantee Trustee; and

 

(B)                                in the absence of bad faith on
the part of the Preferred Guarantee Trustee, the Preferred Guarantee Trustee
may conclusively rely, as to the truth of the statements and the correctness of
the opinions expressed therein, upon any certificates or opinions furnished to
the Preferred Guarantee Trustee and conforming to the requirements of this
Preferred Securities Guarantee; but in the case of any such certificates or
opinions that by any provision hereof are specifically required to be furnished
to the Preferred Guarantee Trustee, the Preferred Guarantee Trustee shall be
under a duty to examine the same to determine whether or not they conform to
the requirements of this Preferred Securities Guarantee;

 

7

 

(ii)           the Preferred Guarantee Trustee shall not be liable for any
error of judgment made in good faith by a Responsible Officer of the Preferred
Guarantee Trustee, unless it shall be proved that the Preferred Guarantee
Trustee was negligent in ascertaining the pertinent facts upon which such
judgment was made;

 

(iii)          the Preferred Guarantee Trustee shall not be liable with
respect to any action taken or omitted to be taken by it in good faith in
accordance with the direction of the Holders of not less than a Majority in
Liquidation Amount of the Preferred Securities relating to the time, method and
place of conducting any proceeding for any remedy available to the Preferred
Guarantee Trustee, or exercising any trust or power conferred upon the
Preferred Guarantee Trustee under this Preferred Securities Guarantee; and

 

(iv)          no provision of this Preferred Securities Guarantee shall
require the Preferred Guarantee Trustee to expend or risk its own funds or
otherwise incur personal financial liability in the performance of any of its
duties or in the exercise of any of its rights or powers, if the Preferred
Guarantee Trustee shall have reasonable grounds for believing that the
repayment of such funds or liability is not reasonably assured to it under the
terms of this Preferred Securities Guarantee or indemnity, reasonably
satisfactory to the Preferred Guarantee Trustee, against such risk or liability
is not reasonably assured to it.

 

Section 3.2.           Certain Rights of the Preferred
Guarantee Trustee.  (a) Subject to the provisions of Section 3.1:

 

(i)            the Preferred Guarantee Trustee
may conclusively rely, and shall be fully protected in acting or refraining
from acting upon, any resolution, certificate, statement, instrument, opinion,
report, notice, request, direction, consent, order, bond, debenture, note,
other evidence of indebtedness or other paper or document believed by it to be
genuine and to have been signed, sent or presented by the proper party or
parties;

 

(ii)           any direction or act of the Guarantor contemplated by this
Preferred Securities Guarantee shall be sufficiently evidenced by an Officers’
Certificate;

 

(iii)          whenever, in the administration of this Preferred Securities
Guarantee, the Preferred Guarantee Trustee shall deem it desirable that a
matter be proved or established before taking, suffering or omitting any action
hereunder, the Preferred Guarantee Trustee (unless other evidence is herein
specifically prescribed) may, in the absence of bad faith on its part, request
and conclusively rely upon an Officers’ Certificate which, upon receipt of such
request, shall be promptly delivered by the Guarantor;

 

8

 

(iv)          the Preferred Guarantee Trustee shall have no duty to see to
any recording, filing or registration of any instrument (or any rerecording,
refiling or reregistration thereof);

 

(v)           the Preferred Guarantee Trustee may consult with counsel,
and the written advice or opinion of such counsel with respect to legal matters
shall be full and complete authorization and protection in respect of any
action taken, suffered or omitted by it hereunder in good faith and in
accordance with such advice or opinion. Such counsel may be counsel to the
Guarantor or any of its Affiliates and may include any of its employees. The
Preferred Guarantee Trustee shall have the right at any time to seek
instructions concerning the administration of this Preferred Securities
Guarantee from any court of competent jurisdiction;

 

(vi)          the Preferred Guarantee Trustee shall be under no obligation
to exercise any of the rights or powers vested in it by this Preferred
Securities Guarantee at the request or direction of any Holder, unless such
Holder shall have provided to the Preferred Guarantee Trustee such security and
indemnity, reasonably satisfactory to the Preferred Guarantee Trustee, against
the costs, expenses (including reasonable attorneys’ fees and expenses and the
expenses of the Preferred Guarantee Trustee’s agents, nominees or custodians)
and liabilities that might be incurred by it in complying with such request or
direction, including such reasonable advances as may be requested by the
Preferred Guarantee Trustee, provided that,
nothing contained in this Section 3.2(a)(vi) shall be taken to
relieve the Preferred Guarantee Trustee, upon the occurrence and during the
continuance of an Event of Default, of its obligation to exercise the rights
and powers vested in it by this Preferred Securities Guarantee;

 

(vii)         the Preferred Guarantee Trustee shall not be bound to make
any investigation into the facts or matters stated in any resolution,
certificate, statement, instrument, opinion, report, notice, request,
direction, consent, order, bond, debenture, note, other evidence of
indebtedness or other paper or document, but the Preferred Guarantee Trustee,
in its discretion, may make such further inquiry or investigation into such
facts or matters as it may see fit;

 

(viii)        the Preferred Guarantee Trustee
may execute any of the trusts or powers hereunder or perform any duties hereunder
either directly or by or through agents, nominees, custodians or attorneys, and
the Preferred Guarantee Trustee shall not be responsible for any misconduct or
negligence on the part of any agent or attorney appointed with due care by it
hereunder;

 

(ix)           no third party shall be required to inquire as to the
authority of the Preferred Guarantee Trustee to so act or as to its compliance
with any of the terms and provisions of this Preferred Securities Guarantee,
both of which shall be conclusively evidenced by the Preferred Guarantee
Trustee’s or its agent’s taking such action; and

 

9

 

(x)            whenever in the administration
of this Preferred Securities Guarantee the Preferred Guarantee Trustee shall
deem it desirable to receive instructions with respect to enforcing any remedy
or right or taking any other action hereunder, the Preferred Guarantee Trustee (A) may
request instructions from the Holders of a Majority in Liquidation Amount of
the Preferred Securities, (B) may refrain from enforcing such remedy or
right or taking such other action until such instructions are received, and (C) shall
be protected in conclusively relying on or acting in accordance with such
instructions.

 

(b)           No provision of this Preferred Securities Guarantee shall be
deemed to impose any duty or obligation on the Preferred Guarantee Trustee to
perform any act or acts or exercise any right, power, duty or obligation
conferred or imposed on it in any jurisdiction in which it shall be illegal, or
in which the Preferred Guarantee Trustee shall be unqualified or incompetent in
accordance with applicable law, to perform any such act or acts or to exercise
any such right, power, duty or obligation. No permissive power or authority
available to the Preferred Guarantee Trustee shall be construed to be a duty.

 

Section 3.3.           Not Responsible for Recitals or
Issuance of Guarantee.  The Recitals contained in this Guarantee
shall be taken as the statements of the Guarantor, and the Preferred Guarantee
Trustee does not assume any responsibility for their correctness. The Preferred
Guarantee Trustee makes no representation as to the validity or sufficiency of
this Preferred Securities Guarantee.

 

Article IV

 

THE PREFERRED GUARANTEE TRUSTEE

 

Section 4.1.           The Preferred Guarantee Trustee;
Eligibility.  (a) There shall at all times be a
Preferred Guarantee Trustee which shall:

 

(i)            not be an Affiliate of the
Guarantor; and

 

(ii)           be a Person permitted by the Securities and Exchange
Commission to act as an institutional trustee under the Trust Indenture Act,
authorized under such laws to exercise corporate trust powers, having a
combined capital and surplus of at least $50,000,000, and subject to
supervision or examination by federal, state, territorial or District of
Columbia authority. If such Person publishes reports of condition at least
annually, pursuant to law or to the requirements of its supervising or
examining authority referred to above, then, for the purposes of this Section 4.1(a)(ii),
the combined capital and surplus of such Person shall be deemed to be its
combined capital and surplus as set forth in its most recent report of
condition so published.

 

10

 

(b)           If at any time the Preferred Guarantee Trustee shall cease
to be eligible to so act under Section 4.1(a), the Preferred Guarantee
Trustee shall immediately resign in the manner and with the effect set out in Section 4.2(c).

 

(c)           If the Preferred Guarantee Trustee has or shall acquire any “conflicting
interest” within the meaning of Section 310(b) of the Trust Indenture
Act, the Preferred Guarantee Trustee and the Guarantor shall in all respects
comply with the provisions of Section 310(b) of the Trust Indenture
Act.

 

Section 4.2.           Appointment, Removal and Resignation
of the Preferred Guarantee Trustee.  (a) Subject to
Section 4.2(b), the Preferred Guarantee Trustee may be appointed or
removed without cause at any time by the Guarantor.

 

(b)           The Preferred Guarantee Trustee shall not be removed in
accordance with Section 4.2(a) until a Successor Preferred Guarantee
Trustee has been appointed and has accepted such appointment by written
instrument executed by such Successor Preferred Guarantee Trustee and delivered
to the Guarantor.

 

(c)           The Preferred Guarantee Trustee appointed to office shall
hold office until a Successor Preferred Guarantee Trustee shall have been
appointed or until its removal or resignation. The Preferred Guarantee Trustee
may resign from office (without need for prior or subsequent accounting) by an
instrument in writing executed by the Preferred Guarantee Trustee and delivered
to the Guarantor, which resignation shall not take effect until a Successor
Preferred Guarantee Trustee has been appointed and has accepted such
appointment by instrument in writing executed by such Successor Preferred
Guarantee Trustee and delivered to the Guarantor and the resigning Preferred
Guarantee Trustee.

 

(d)           If no Successor Preferred Guarantee Trustee shall have been
appointed and accepted appointment as provided in this Section 4.2 within
60 days after delivery to the Guarantor of an instrument of resignation, the
resigning Preferred Guarantee Trustee may petition any court of competent
jurisdiction for appointment of a Successor Preferred Guarantee Trustee. Such
court may thereupon, after prescribing such notice, if any, as it may deem
proper, appoint a Successor Preferred Guarantee Trustee.

 

(e)           No Preferred Guarantee Trustee shall be liable for the acts
or omissions to act of any Successor Preferred Guarantee Trustee.

 

(f)            Upon termination of this
Preferred Securities Guarantee or removal or resignation of the Preferred
Guarantee Trustee pursuant to this Section 4.2, the Guarantor shall pay to
the Preferred Guarantee Trustee all fees and expenses accrued to the date of
such termination, removal or resignation.

 

11

 

Article V

 

GUARANTEE

 

Section 5.1.           Guarantee.  The Guarantor irrevocably and unconditionally
agrees to pay in full to the Holders the Guarantee Payments (without
duplication of amounts theretofore paid by the Trust), as and when due,
regardless of any defense, right of set-off or counterclaim that the Trust may
have or assert. The Guarantor’s obligation to make a Guarantee Payment may be
satisfied by direct payment of the required amounts by the Guarantor to the
Holders or by causing the Trust to pay such amounts to the Holders.

 

Section 5.2.           Waiver of Notice and Demand.  The Guarantor hereby waives notice of
acceptance of this Preferred Securities Guarantee and of any liability to which
it applies or may apply, presentment, demand for payment, any right to require
a proceeding first against the Trust or any other Person before proceeding
against the Guarantor, protest, notice of nonpayment, notice of dishonor,
notice of redemption and all other notices and demands.

 

Section 5.3.           Obligations not Affected.  The obligations, covenants, agreements and
duties of the Guarantor under this Preferred Securities Guarantee shall in no
way be affected or impaired by reason of the happening from time to time of any
of the following:

 

(a)           the release or waiver, by operation of law or otherwise, of
the performance or observance by the Trust of any express or implied agreement,
covenant, term or condition relating to the Preferred Securities to be
performed or observed by the Trust;

 

(b)           the extension of time for the payment by the Trust of all or
any portion of the Distributions, Redemption Price, Liquidation Distribution or
any other sums payable under the terms of the Preferred Securities or the
extension of time for the performance of any other obligation under, arising
out of, or in connection with, the Preferred Securities (other than an
extension of time for payment of Distributions, Redemption Price, Liquidation Distribution
or other sum payable that results from the extension of any interest payment
period on the Debentures or any extension of the maturity date of the
Debentures permitted by the Indenture);

 

(c)           any failure, omission, delay or lack of diligence on the
part of the Holders to enforce, assert or exercise any right, privilege, power
or remedy conferred on the Holders pursuant to the terms of the Preferred
Securities, or any action on the part of the Trust granting indulgence or
extension of any kind;

 

(d)           the voluntary or involuntary liquidation, dissolution, sale
of any collateral, receivership, insolvency, bankruptcy, assignment for the
benefit of creditors, reorganization, arrangement, composition or readjustment
of debt of, or other similar proceedings affecting, the Trust or any of the
assets of the Trust;

 

12

 

(e)           any invalidity of, or defect or deficiency in, the Preferred
Securities;

 

(f)            any failure or omission to
receive any regulatory approval or consent required in connection with the
Preferred Securities (or the common equity securities issued by the Trust),
including the failure to receive any approval of the Board of Governors of the
Federal Reserve System required for the redemption of the Preferred Securities;

 

(g)           the settlement or compromise of any obligation guaranteed
hereby or hereby incurred; or

 

(h)           any other circumstance whatsoever that might otherwise
constitute a legal or equitable discharge or defense of a guarantor, it being
the intent of this Section 5.3 that the obligations of the Guarantor
hereunder shall be absolute and unconditional under any and all circumstances.

 

There shall be no obligation of the Holders to give notice to, or
obtain consent of, the Guarantor with respect to the happening of any of the
foregoing.

 

Section 5.4.           Rights of the Holders.  (a) The Holders of a Majority in
Liquidation Amount of the Preferred Securities have the right to direct the
time, method and place of conducting of any proceeding for any remedy available
to the Preferred Guarantee Trustee in respect of this Preferred Securities
Guarantee or exercising any trust or power conferred upon the Preferred
Guarantee Trustee under this Preferred Securities Guarantee.

 

(b)           Any Holder of Preferred Securities may institute and
prosecute a legal proceeding directly against the Guarantor to enforce its
rights under this Preferred Securities Guarantee, without first instituting and
prosecuting a legal proceeding against the Trust, the Preferred Guarantee Trustee
or any other Person.

 

Section 5.5.           Guarantee of Payment.  This Preferred Securities Guarantee creates a
guarantee of payment and not of collection.

 

Section 5.6.           Subrogation.  The Guarantor shall be subrogated to all, if
any, rights of the Holders of the Preferred Securities against the Trust in
respect of any amounts paid to such Holders by the Guarantor under this
Preferred Securities Guarantee; provided, however,
that the Guarantor shall not (except to the extent required by mandatory
provisions of law) be entitled to enforce or exercise any right that it may
acquire by way of subrogation or any indemnity, reimbursement or other
agreement, in all cases as a result of payment under this Preferred Securities
Guarantee, if, at the time of any such payment, any amounts are due and unpaid
under this Preferred Securities Guarantee. If any amount shall be paid to the
Guarantor in violation of the preceding sentence, the Guarantor agrees to hold
such amount in trust for the Holders and to pay over such amount to the
Holders.

 

13

 

Section 5.7.           Independent Obligations.  The Guarantor acknowledges that its
obligations hereunder are independent of the obligations of the Trust with
respect to the Preferred Securities, and that the Guarantor shall be liable as
principal and as debtor hereunder to make Guarantee Payments pursuant to the
terms of this Preferred Securities Guarantee notwithstanding the occurrence of
any event referred to in subsections (a) through (h), inclusive, of Section 5.3.

 

Article VI

 

LIMITATION
OF TRANSACTIONS; SUBORDINATION

 

Section 6.1.           Limitation on Transactions.  So long as any of the Preferred Securities
remain outstanding, if there shall have occurred and Event of Default, an event
of default under the Trust Agreement or during an Extension Period (as defined
in the Indenture), then (a) neither the Guarantor nor any of its
Subsidiaries (as defined in the Indenture) shall declare or pay any dividend
on, make any distributions with respect to, or redeem, purchase, acquire or
make a liquidation payment with respect to, any of its capital stock except as
permitted in such circumstances by the Indenture, (b) the Guarantor shall
not make any payment of principal or interest on or repay, repurchase or redeem
any debt securities issued by the Guarantor which rank pari passu
with or junior to the Debentures other than payments under this Preferred
Securities Guarantee, and (c) the Guarantor shall not redeem, purchase or
acquire less than all of the outstanding Debentures or any of the Preferred
Securities.

 

Section 6.2.           Ranking.  This Preferred Securities Guarantee will
constitute an unsecured obligation of the Guarantor and will rank (a) subordinate
and junior in right of payment to all Senior Debt, Subordinated Debt and
Additional Senior Obligations (as defined in the Indenture) of the Guarantor, (b) pari passu with the most senior preferred securities now or
hereafter issued by the Guarantor and with any guarantee now or hereafter
entered into by the Guarantor in respect of any preferred securities of any
Affiliate of the Guarantor, and (c) senior to the Guarantor’s common
stock.

 

Article VII

 

TERMINATION

 

Section 7.1.           Termination.  This Preferred Securities Guarantee shall
terminate upon (a) full payment of the Redemption Price of all the
Preferred Securities, (b) full payment of the amounts payable in
accordance with the Trust Agreement upon liquidation of the Trust, or (c) distribution
of the Debentures to the Holders of the Preferred Securities. Notwithstanding
the foregoing, this Preferred Securities Guarantee shall continue to be
effective or shall be reinstated, as the case may be, if at any time any Holder
of Preferred Securities must restore payment of any sums paid under the
Preferred Securities or under this Preferred Securities Guarantee.

 

14

 

Article VIII

 

INDEMNIFICATION

 

Section 8.1.           Exculpation.  (a) No Indemnified Person shall be
liable, responsible or accountable in damages or otherwise to the Guarantor or
any Covered Person for any loss, damage or claim incurred by reason of any act
performed or omitted by such Indemnified Person in good faith in accordance
with this Preferred Securities Guarantee and in a manner that such Indemnified
Person reasonably believed to be within the scope of the authority conferred on
such Indemnified Person by this Preferred Securities Guarantee or by law,
except that an Indemnified Person shall be liable for any such loss, damage or
claim incurred by reason of such Indemnified Person’s negligence, willful
misconduct or bad faith with respect to such acts or omissions.

 

(b)           An Indemnified Person shall be fully protected in relying in
good faith upon the records of the Guarantor and upon such information,
opinions, reports or statements presented to the Guarantor by any Person as to
matters the Indemnified Person reasonably believes are within such other Person’s
professional or expert competence and who has been selected with reasonable
care by or on behalf of the Guarantor, including information, opinions, reports
or statements as to the value and amount of the assets, liabilities, profits,
losses, or any other facts pertinent to the existence and amount of assets from
which Distributions to the Holders of the Preferred Securities might properly
be paid.

 

Section 8.2.           Indemnification.  The Guarantor agrees to indemnify each
Indemnified Person for, and to hold each Indemnified Person harmless against,
any loss, liability or expense incurred without negligence, willful misconduct
or bad faith on its part, arising out of or in connection with the acceptance
or administration of the trust or trusts hereunder, including the costs and
expenses (including reasonable legal fees and expenses) of defending itself
against, or investigating, any claim or liability in connection with the
exercise or performance of any of its powers or duties hereunder. The
obligation to indemnify as set forth in this Section 8.2 shall survive the
termination of this Preferred Securities Guarantee.

 

Article IX

 

MISCELLANEOUS

 

Section 9.1.           Successors and Assigns.  All guarantees and agreements contained in
this Preferred Securities Guarantee shall bind the successors, assigns,
receivers, trustees and representatives of the Guarantor and shall inure to the
benefit of the Holders of the Preferred Securities then outstanding.

 

Section 9.2.           Amendments.  Except with respect to any changes that do
not adversely affect the rights of the Holders (in which case no consent of the
Holders will be required), this Preferred Securities Guarantee may only be
amended with the prior approval of the Holders of at least a Majority in
Liquidation Amount of the Preferred Securities. The provisions of Article VI

 

15

 

of the Trust Agreement with respect to meetings of the
Holders of the Preferred Securities apply to the giving of such approval.

 

Section 9.3.           Notices.  All notices provided for in this Preferred
Securities Guarantee shall be in writing, duly signed by the party giving such
notice, and shall be delivered, telecopied or mailed by registered or certified
mail, as follows:

 

(a)           If given to the Preferred Guarantee Trustee, at the
Preferred Guarantee Trustee’s mailing address set forth below (or such other
address as the Preferred Guarantee Trustee may give notice of to the Holders of
the Preferred Securities):

 

Wilmington
Trust Company

Rodney Square North

1100 North Market Street

Wilmington, Delaware
19890-0001

Attention:   Corporate Trust Administration

 

(b)           If given to the Guarantor, at the Guarantor’s mailing
address set forth below (or such other address as the Guarantor may give notice
of to the Holders of the Preferred Securities):

 

First Busey Corporation

201 West Main Street

Urbana, Illinois 61801

Attention: 
Chief Executive Officer

 

(c)           If given to any Holder of Preferred Securities, at the
address set forth on the books and records of the Trust.

 

All such notices shall be deemed to have been given when received in
person, telecopied with receipt confirmed, or mailed by first class mail,
postage prepaid except that if a notice or other document is refused delivery
or cannot be delivered because of a changed address of which no notice was
given, such notice or other document shall be deemed to have been delivered on
the date of such refusal or inability to deliver.

 

Section 9.4.           Benefit.  This Preferred Securities Guarantee is solely
for the benefit of the Holders of the Preferred Securities and, subject to Section 3.1(a),
is not separately transferable from the Preferred Securities.

 

Section 9.5.           Governing Law.  This Preferred Securities Guarantee shall be
governed by, and construed and interpreted in accordance with, the laws of the
State of Delaware (without regard to its conflict of laws principles).

 

[SIGNATURE
PAGE FOLLOWS]

 

16

 

IN WITNESS WHEREOF, this Preferred Securities
Guarantee is executed as of the day and year first above written.

 

	
   

  	
  FIRST BUSEY CORPORATION, as Guarantor

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:  Van A.
  Dukeman

  
	
   

  	
   

  	
  Title:  President
  and Chief Executive Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  WILMINGTON TRUST COMPANY, as Preferred 

  Guarantee Trustee

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:QuickLinks
 -- Click here to rapidly navigate through this document

 

 
 

Exhibit 10.12    
    

United
States Department of the Interior

  

BUREAU OF LAND MANAGEMENT

Wyoming State Office

P. O. Box 1828

Cheyenne, Wyoming 82009-1828 

In
Reply Refer To: 

3432
(922Love)

WYW146744

Phone No: 307-775-6115

Fax. No:    307-775-6203 

JUN
19 2006 

NOTICE  

	Jacobs Ranch Coal Company	 	:	 	 	 	 
	P.O. Box 3013	 	:	 	Federal Coal	 	 
	Gillette, Wyoming 82718	 	:	 	Jacobs Ranch Mine	 	 

Modified Coal Lease Issued;

Consent of Surety Accepted

Attached
is a copy of modified lease WYW146744. The approval is effective June 1, 2006. Federal coal lease WYWI46744 now contains 5,022.595 acres. The effective date of the lease remains
May 1, 2002. 

Rental
in the amount of $15,069.00 will continue to be due on or before May 1st of each year. 

On
May 23, 2006, you filed a consent of surety to extend the coverage of your present lease bond number 104647221 to include the additional lands. We are accepting the consent of surety
effective June 19, 2006, the date of this notice. 

	 	 	/s/ Robert A. Bennett
 Robert A. Bennett

State Director

Attachment

Ms. Lynne
Boomgaarden, Wyoming State Lands and Investment, 122 W. 25th St., 3rd West, Cheyenne, WY 82002  w/cy of atch.

Department
of Justice, Attn: Jill Ptacek, TEA Section, Antitrust Division, Liberty Place Bldg., 325 7th St. NW, 5th Floor #500, Washington, D.C. 20004  w/cy of atch.

Department
of Environmental Quality, Land Quality Division, 122 West 25th Street, Cheyenne, WY 82002 w/cy of atch.

Mr. Peter
Rutledge, Office of Surface Mining, Western Regional Coordinating Center, P.O. Box 46667, Denver, CO 80202-6667 w/cy of
atch.

MMS,
Minerals Revenue Management, Solids and Geothermal CAM, P.O. Box 25165, MS390B2, Lakewood, CO 80225-0165 w/cy of atch.

Travelers
Casualty and Surety Company of America, c/o Carolyn E. Wheeler, Attorney-in-Fact, Marsh USA Inc., P.O. Box 36012, Knoxville, TN 37930 

QuickLinks

Exhibit 10.12

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00147-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00147-of-00352.parquet"}]]