Document:

EX-4.1

Exhibit 4.1

 

 

4.000% SENIOR NOTES DUE 2014

FOURTH SUPPLEMENTAL INDENTURE

between

BAXTER INTERNATIONAL INC.,

as Issuer

and

THE BANK OF NEW YORK MELLON TRUST COMPANY, N.A.,

as Trustee

Dated as of February 26, 2009

 

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	 	 	 	 	Page	 
	 
	 	ARTICLE 1	 	 	 	 
	 
	 	Definitions	 	 	 	 
	 
	 	 	 	 	 	 
	Section 1.01.
	 	Definition of Terms	 	 	1	 
	 
	 	 	 	 	 	 
	 
	 	ARTICLE 2	 	 	 	 
	 
	 	The Notes	 	 	 	 
	 
	 	 	 	 	 	 
	Section 2.01.
	 	Designation	 	 	2	 
	Section 2.02.
	 	Principal Amount; Series Treatment	 	 	2	 
	Section 2.03.
	 	Maturity	 	 	3	 
	Section 2.04.
	 	Interest	 	 	3	 
	Section 2.05.
	 	Form of Notes	 	 	3	 
	Section 2.06.
	 	Transfers Restrictions	 	 	4	 
	Section 2.07.
	 	Transfers and Exchanges	 	 	5	 
	 
	 	 	 	 	 	 
	 
	 	ARTICLE 3	 	 	 	 
	 
	 	Redemption Of The Notes	 	 	 	 
	 
	 	 	 	 	 	 
	Section 3.01.
	 	Optional Redemption by Company	 	 	5	 
	 
	 	 	 	 	 	 
	 
	 	ARTICLE 4	 	 	 	 
	 
	 	Change of Control	 	 	 	 
	 
	 	 	 	 	 	 
	Section 4.01.
	 	Offer to Purchase Upon Change of Control Triggering Event	 	 	5	 
	 
	 	 	 	 	 	 
	 
	 	ARTICLE 5	 	 	 	 
	 
	 	Execution Of The Notes	 	 	 	 
	 
	 	 	 	 	 	 
	Section 5.01.
	 	Execution; Certificates	 	 	5	 
	 
	 	 	 	 	 	 
	 
	 	ARTICLE 6	 	 	 	 
	 
	 	Miscellaneous	 	 	 	 
	 
	 	 	 	 	 	 
	Section 6.01.
	 	Ratification of Indenture	 	 	5	 
	Section 6.02.
	 	Trustee Not Responsible for Recitals	 	 	6	 
	Section 6.03.
	 	Governing Law	 	 	6	 
	Section 6.04.
	 	Separability	 	 	6	 
	Section 6.05.
	 	Counterparts	 	 	6	 

- i -

 

     FOURTH SUPPLEMENTAL INDENTURE, dated as of February 26, 2009 (the “Supplemental
Indenture”), between Baxter International Inc., a Delaware corporation (the “Company”),
and The Bank of New York Mellon Trust Company, N.A. (as successor in interest to J.P. Morgan Trust
Company, National Association), as Trustee, under the Indenture, dated as of August 8, 2006 (the
“Indenture”), between the Company and the Trustee.

     WHEREAS, the Company executed and delivered the Indenture to the Trustee to provide for, among
other things, the issuance from time to time of the Company’s debt securities in one or more series
as might be authorized under the Indenture;

     WHEREAS, the Indenture provides that the Company and the Trustee may enter into an indenture
supplemental to the Indenture to establish the form and terms of any series of Securities (as
defined in the Indenture) as provided by Sections 2.01 and 3.01 of the Indenture;

     WHEREAS, the Board of Directors of the Company has duly adopted resolutions authorizing the
Company to issue the Securities provided for in this Supplemental Indenture;

     WHEREAS, the Company desires to enter into this Supplemental Indenture to provide for the
establishment of a series of Securities (as defined in the Indenture) to be known as the 4.000%
Senior Notes due 2014 (the “Notes”), the form, substance, terms, provisions and conditions
of which shall be set forth in the Indenture and this Supplemental Indenture;

     WHEREAS, the Company has requested that the Trustee execute and deliver this Supplemental
Indenture and satisfy all requirements necessary to make (i) this Supplemental Indenture a valid
instrument in accordance with its terms and (ii) the Securities provided for hereby, when executed
and delivered by the Company and authenticated by the Trustee, the valid obligations of the
Company.

     NOW THEREFORE, each party agrees as follows for the benefit of the other parties and for the
equal and ratable benefit of the Holders of the Notes:

ARTICLE 1

Definitions

     Section 1.01. Definition of Terms.

     Unless the context otherwise requires:

     (a) a term defined in the Indenture has the same meaning when used in this Supplemental
Indenture unless the definition of such term is amended and supplemented pursuant to this
Supplemental Indenture;

     (b) a term defined anywhere in this Supplemental Indenture has the same meaning throughout;

     (c) the singular includes the plural and vice versa;

 1 

 

     (d) a reference to a Section or Article is to a Section or Article of this Supplemental
Indenture;

     (e) headings are for convenience of reference only and do not affect interpretation;

     (f) the following terms have the meanings given to them in this Section 1.01(f):

     “Closing Date” means February 26, 2009.

     “Company” shall have the meaning set forth in the first paragraph hereof.

     “Depositary” means the clearing agency registered under the Exchange Act that is
designated to act as the Depositary for the Global Note. The Depository Trust Company shall be the
initial Depositary, until a successor shall have been appointed and become such pursuant to the
applicable provisions of the Indenture, and thereafter, “Depositary” shall mean or include such
successor.

     “Global Note” shall have the meaning set forth in Section 2.05(b).

     “Initial Notes” means (i) all Notes issued on the first date that Notes were
originally issued under this Supplemental Indenture, (ii) any additional Notes issued under
Section 2.02(a) and (iii) any Notes issued in replacement therefor.

     “Notes” shall have the meaning set forth in the recitals above and shall include any
Global Note.

ARTICLE 2

The Notes

     Section 2.01. Designation.

     The Company hereby establishes a series of Securities designated the “4.000% Senior Notes due
2014” for issuance under the Indenture.

     Section 2.02. Principal Amount; Series Treatment.

     (a) The Notes shall be initially limited to an aggregate principal amount of $350,000,000.
The Company may, from time to time, without the consent of the Holders of the outstanding Notes,
issue additional Notes, so that such additional Notes and the outstanding Notes shall be
consolidated together and form a single series of Securities under the Indenture as supplemented by
this Supplemental Indenture. Any increase in the aggregate principal amount of the Notes shall be
evidenced by an Officers’ Certificate to be delivered to the Trustee, without any further action by
the Company.

     (b) Any additional Notes issued under Section 2.02(a) shall have the same terms in all
respects as the corresponding series of Notes, except that interest will accrue on the additional
Notes from the most recent date to which interest has been paid on the Notes of such series (other
than the additional Notes) or if no interest has been paid on the Outstanding Notes of such

 2 

 

series from the first date that the Outstanding Notes were originally issued under the
Indenture, as supplemented by this Supplemental Indenture.

     (c) For all purposes of the Indenture and this Supplemental Indenture, all Notes, whether
Initial Notes, or additional Notes issued under Section 2.02(a), shall constitute one
series of Securities and shall vote together as one series of Securities.

     (d) The Notes shall be issued in minimum denominations of $2,000 and integral multiples of
$1,000 in excess thereof.

     Section 2.03. Maturity.

     The Notes will become due and payable on March 1, 2014.

     Section 2.04. Interest. The Notes will bear interest at the rate of 4.000% per annum
from February 26, 2009 until the principal thereof becomes due and payable or to the date of
redemption or repurchase (if any) of the Notes, such interest to be payable semi-annually on March
1 and September 1 of each year, to the Holders of record of the Notes as of the close of business
on the February 15 and August 15 preceding such interest payment dates, commencing, in the case of
the Initial Notes or any additional Notes issued prior to such date, on September 1, 2009.

     Section 2.05. Form of Notes.

     (a) The Notes shall contain the terms set forth in, and shall be substantially in the form of,
Exhibit A hereto. The terms and provisions contained in the form of Notes set forth in
Exhibit A shall constitute, and are hereby expressly made, a part of the Indenture, as
supplemented by this Supplemental Indenture.

     Any of the Notes may have such letters, numbers or other marks of identification and such
notations, legends, endorsements or changes as the Authorized Officers executing the same may
approve (execution thereof to be conclusive evidence of such approval) and as are not inconsistent
with the provisions of the Indenture, as supplemented by this Supplemental Indenture, or as may be
required by the Depositary or as may be required to comply with any applicable law or with any rule
or regulation made pursuant thereto or with any rule or regulation of any securities exchange or
automated quotation system on which the Notes may be listed, or to conform to usage, or to indicate
any special limitations or restrictions to which any particular Notes are subject.

     (b) So long as the Notes are eligible for book-entry settlement with the Depositary, or unless
otherwise required by law, or otherwise contemplated herein, all of the Notes shall be represented
by one or more Notes in global form registered in the name of the Depositary or the nominee of the
Depositary.

     The Notes shall be issued initially in the form of one or more permanent Global Securities in
registered form, substantially in the form set forth in Exhibit A (the “Global
Note”), registered in the name of the nominee of the Depositary, deposited with the Trustee, as
custodian for the Depositary, duly executed by the Company and authenticated by the Trustee as

 3 

 

hereinafter provided. The aggregate principal amount of the Global Note may from time to time
be increased or decreased by adjustments made on the records of the Trustee, as custodian for the
Depositary or its nominee, in accordance with the instructions given by the Holder thereof, as
hereinafter provided.

     The transfer and exchange of beneficial interests in any such Global Note shall be effected
through the Depositary in accordance with the Indenture and the applicable procedures of the
Depositary. Except as provided in the Indenture, beneficial owners of a Global Note shall not be
entitled to have certificates registered in their names, will not receive or be entitled to receive
physical delivery of certificates in definitive form and will not be considered Holders of such
Global Note.

     Any Global Note shall represent such of the Outstanding Notes as shall be specified therein
and shall provide that it shall represent the aggregate amount of Outstanding Notes from time to
time endorsed thereon and that the aggregate amount of Outstanding Notes represented thereby may
from time to time be increased or reduced to reflect redemptions, transfers or exchanges permitted
hereby. Any endorsement of a Global Note to reflect the amount of any increase or decrease in the
amount of outstanding Notes represented thereby shall be made by the Trustee in such manner and
upon instructions given by the Holder of such Notes in accordance with the Indenture and this
Supplemental Indenture. Payment of principal of and interest and premium, if any, on any Global
Note shall be made to the Holder of such Note.

     Section 2.06. Transfer Restrictions. The following provisions shall apply only to a
Global Note:

     (i) Each Global Note authenticated under this Supplemental Indenture shall be
registered in the name of the Depositary or a nominee thereof and delivered to such
Depositary or a nominee thereof or Trustee if the Trustee is acting as custodian for the
Depositary or its nominee with respect to such Global Note, and each such Global Note shall
constitute a single Note for all purposes of the Indenture and this Supplemental Indenture.

     (ii) Notwithstanding any other provision in this Supplemental Indenture, no Global Note
may be exchanged in whole or in part for Notes registered, and no transfer of a Global Note
in whole or in part may be registered, in the name of any Person other than the Depositary
or a nominee thereof except as provided in Section 3.05 of the Indenture. Any Note issued
in exchange for a Global Note or any portion thereof shall be a Global Note; provided that
any such Note so issued that is registered in the name of a Person other than the Depositary
or a nominee thereof shall not be a Global Note.

     (iii) Securities issued in exchange for a Global Note or any portion thereof pursuant
to clause (ii) above shall be issued pursuant to Section 3.05 of the Indenture.

     (iv) At such time as all interests in a Global Note have been redeemed, repurchased,
converted, canceled or exchanged for Notes in certificated form, such Global Note shall,
upon receipt thereof, be canceled by the Trustee in accordance with standing procedures and
instructions existing between the Depositary and the Trustee. At

 4 

 

any time prior to such cancellation, if any interest in a Global Note is redeemed,
repurchased, converted, canceled or exchanged for Notes in certificated form, the principal
amount of such Global Note shall, in accordance with the standing procedures and
instructions existing between the Depositary and the Trustee, be appropriately reduced, and
an endorsement shall be made on such Global Note, by the Trustee or at the direction of the
Trustee, to reflect such reduction.

     Section 2.07. Transfers and Exchanges. The Notes shall be transferred and exchanged
by the Holders thereof and the Trustee in accordance with the terms and conditions set forth in
Section 3.05 the Indenture.

ARTICLE 3

Redemption Of The Notes

     Section 3.01. Optional Redemption by Company. The Notes may be redeemed at the option
of the Company on the terms and conditions set forth in the form of Note set forth as Exhibit
A.

ARTICLE 4

Change of Control

     Section 4.01. Offer to Purchase Upon Change of Control Triggering Event. Upon the
occurrence of a Change of Control Triggering Event (as defined in the form of Note set forth as
Exhibit A), and unless the Company has exercised its option to redeem the Notes pursuant to
Section 3.01, the Company shall be required to make an offer to each holder of the Notes to
repurchase all or any part (equal to $2,000 or an integral multiple of $1,000 in excess thereof) of
that holder’s Notes on the terms and conditions set forth in the form of Note set forth as
Exhibit A.

ARTICLE 5

Execution Of The Notes

     Section 5.01. Execution; Certificates. The Notes and any Officers’ Certificate to be
delivered under the Indenture in connection with the authentication and delivery of the Notes shall
be executed and delivered as set forth in the Indenture.

ARTICLE 6

Miscellaneous

     Section 6.01. Ratification of Indenture.

     The Indenture, as supplemented by this Supplemental Indenture, is in all respects ratified and
confirmed, and this Supplemental Indenture shall be deemed part of the Indenture in the manner and
to the extent herein and therein provided.

 5 

 

     Section 6.02. Trustee Not Responsible for Recitals.

     The recitals herein contained are made by the Company and not by the Trustee, and the Trustee
assumes no responsibility for the correctness thereof. The Trustee makes no representation as to
the validity or sufficiency of this Supplemental Indenture.

     Section 6.03. Governing Law.

     This Supplemental Indenture and the Notes shall be governed by and construed in accordance
with the laws of the State of New York, as applied to contracts made and performed within the State
of New York, without regards to principles of conflicts of law.

     Section 6.04. Separability.

     In case any one or more of the provisions contained in this Supplemental Indenture or in the
Notes shall for any reason be held to be invalid, illegal or unenforceable in any respect, such
invalidity, illegality or unenforceability shall not affect any other provisions of this
Supplemental Indenture or of the Notes, but this Supplemental Indenture and the Notes shall be
construed as if such invalid or illegal or unenforceable provision had never been contained herein
or therein.

     Section 6.05. Counterparts.

     This Supplemental Indenture may be executed in any number of counterparts each of which shall
be an original; but such counterparts shall together constitute but one and the same instrument.

 6 

 

     IN WITNESS WHEREOF, the parties hereto have caused this Fourth Supplemental Indenture to be
duly executed as of the date first above written.

	 	 	 	 	 
	 	BAXTER INTERNATIONAL INC.

 	 
	 	By:  	/s/ Robert J. Hombach
 	 
	 	 	Name:  	Robert J. Hombach 	 
	 	 	Title:  	Corporate Vice President
and Treasurer 	 
	 
	 	THE BANK OF NEW YORK MELLON TRUST COMPANY, N.A., as Trustee

 	 
	 	By:  	/s/
A. Hernandez
 	 
	 	 	Name:  	A. Hernandez 	 
	 	 	Title:  	Assistant Treasurer 	 
	 

(Signature Page to Supplemental Indenture)

   

 

EXHIBIT A

[FACE OF NOTE]

[Each Global Note shall bear the following legend:]

[THIS SECURITY IS A GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE HEREINAFTER REFERRED
TO AND IS REGISTERED IN THE NAME OF A DEPOSITARY OR A NOMINEE THEREOF. THIS SECURITY IS
EXCHANGEABLE FOR SECURITIES REGISTERED IN THE NAME OF A PERSON OTHER THAN THE DEPOSITARY OR
ITS NOMINEE ONLY IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE AND, UNLESS AND
UNTIL IT IS EXCHANGED IN WHOLE OR IN PART FOR SECURITIES IN DEFINITIVE REGISTERED FORM, THIS
SECURITY MAY NOT BE TRANSFERRED EXCEPT AS A WHOLE BY THE DEPOSITARY TO THE NOMINEE OF THE
DEPOSITARY OR BY A NOMINEE OF THE DEPOSITARY TO THE DEPOSITARY OR ANOTHER NOMINEE OF THE
DEPOSITARY OR BY THE DEPOSITARY OR ANY SUCH NOMINEE TO A SUCCESSOR DEPOSITARY OR TO A
NOMINEE OF SUCH SUCCESSOR DEPOSITARY.

     Unless this certificate is presented by an authorized representative of The Depository Trust
Company, a New York corporation (“DTC”), to the Company or its agent for registration of transfer,
exchange or payment, and any certificate issued is registered in the name of Cede & Co., or such
other name as requested by an authorized representative of DTC (and any payment is made to Cede &
Co. or to such other entity as is required by an authorized representative of DTC), 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.]

 

 

CUSIP No. 071813 AZ2

ISIN US071813AZ23

BAXTER INTERNATIONAL INC.

4.000% Senior Notes due 2014

			
	No. A-1
	 	$350,000,000

     Baxter International Inc., a Delaware corporation (the “Company”), for value received,
hereby promises to pay to Cede & Co. or registered assigns, at the office or agency of the Company
in the City of New York, the principal sum of THREE HUNDRED FIFTY MILLION DOLLARS ($350,000,000) on
March 1, 2014, in such coin or currency of the United States of America as at the time of payment
shall be legal tender for the payment of public and private debts, and to pay interest,
semiannually on March 1 and September 1 of each year, commencing on September 1, 2009, on said
principal sum at said office or agency, in like coin or currency, at the rate per annum specified
in the title of this Note, from the March 1 and September 1, as the case may be, next preceding the
date of this Note to which interest has been paid, unless the date hereof is a date to which
interest has been paid, in which case from the date of this Note, or unless no interest has been
paid on these Notes, in which case from February 26, 2009 until payment of said principal sum has
been made or duly provided for; provided, that payment of interest may be made at the option of the
Company by check mailed to the address of the person entitled thereto as such address shall appear
on the Security Register or by wire transfer to an account maintained by the payee with a bank
located in the United States.

     Notwithstanding the foregoing, if the date hereof is after the 15th day of February
or August, as the case may be, and before the following March 1 or September 1, as the case may be,
this Note shall bear interest from such March 1 or September 1; provided, that, if
the Company shall default in the payment of interest due on such March 1 or September 1, then this
Note shall bear interest from the next preceding March 1 or September 1, to which interest has been
paid or, if no interest has been paid on these Notes, from February 26, 2009. The interest so
payable on any March 1 or September 1, will, subject to certain exceptions provided in the
Indenture referred to on the reverse hereof, be paid to the person in whose name this Note is
registered at the close of business on the February 15 or August 15, as the case may be, preceding
such March 1 or September 1. Interest on this Note will be calculated on the basis of a 360-day
year of twelve 30-day months.

     Reference is made to the further provisions of this Note set forth on the reverse hereof.
Such further provisions shall for all purposes have the same effect as though fully set forth at
this place.

     This Note shall not be valid or become obligatory for any purpose until the certificate of
authentication hereon shall have been signed by the Trustee under the Indenture referred to on the
reverse hereof.

 

 

     IN WITNESS WHEREOF, Baxter International Inc. has caused this instrument to be duly executed
on the date set forth below.

Dated: February 26, 2009

	 	 	 	 	 
	 	BAXTER INTERNATIONAL INC.

 	 
	 	By:  	 	 
	 	 	Name:  	Robert  J. Hombach 	 
	 	 	Title:  	Corporate Vice President

and Treasurer 	 
	 

 

 

(FORM OF CERTIFICATION OF AUTHENTICATION)

CERTIFICATE OF AUTHENTICATION

     This is one of the Securities of the series designated herein issued under the
within-mentioned Indenture.

THE BANK OF NEW YORK MELLON TRUST

COMPANY, N.A.

   as Trustee

	 	 	 	 	 
	By:
	 	 	 	 
	 

	 	 

Authorized Signatory
	 	 
	 
	 	 	 	 
	Dated:	 	 

 

 

REVERSE OF NOTE

BAXTER INTERNATIONAL INC.

4.000% Senior Notes due 2014

     This Note is one of a duly authorized issue of Securities of the Company of the series
hereinafter specified, all issued or to be issued under and pursuant to an Indenture, dated as of
August 8, 2006, as supplemented by the Fourth Supplemental Indenture, dated as of February 26, 2009
(both together herein called the “Indenture”), between the Company and The Bank of New York
Mellon Trust Company, N.A. (as successor in interest to J.P. Morgan Trust Company, National
Association), as trustee (herein called the “Trustee” which term includes any successor
Trustee under the Indenture), to which Indenture and all indentures supplemental thereto reference
is hereby made for a description of the rights, limitations of rights, obligations, duties and
immunities thereunder of the Trustee, the Company and the Holders of the Securities. This Note is
one of a series of Securities of the Company designated as the 4.000% Senior Notes due 2014 (the
“Notes”), initially limited in aggregate principal amount of $350,000,000, subject to the
issuance of additional Notes as provided in the Indenture. Terms used but not defined herein shall
have the respective meanings set forth in the Indenture.

     If any interest payment date, maturity date or redemption date of this Note falls on a day
that is not a Business Day, payment will be made on the next succeeding Business Day, and no
interest will accrue for the period from and after the interest payment date, maturity date or
redemption date, as the case may be, to the next succeeding Business Day. As used in this Note,
the term “Business Day” means each Monday, Tuesday, Wednesday, Thursday and Friday which is
not a day on which banking institutions in the City of New York are authorized or obligated by or
pursuant to law, regulation or executive order to close.

     The Indenture contains provisions for the defeasance at any time of the entire indebtedness of
the Notes or certain covenants set forth in the Indenture applicable to the Notes upon compliance
by the Company of certain conditions set forth therein, which provisions apply to this Note.

     This Note is redeemable in whole at any time or in part, from time to time, at the option of
the Company (an “Optional Redemption”), at a make whole redemption price (the “Optional
Redemption Price”) equal to the greater of:

     (i) 100% of the principal amount of the Notes to be redeemed plus accrued and unpaid
interest thereon to the redemption date, and

     (ii) the sum of the present values of the remaining scheduled payments of principal and
interest on the principal amount of the Notes to be redeemed (not including any portion of
the payment of interest accrued as of the date of redemption) discounted to the redemption
date on a semiannual basis (assuming a 360-day year consisting of twelve 30-day months) at
the Treasury Rate plus 35 basis points, plus accrued and unpaid interest thereon to the date
of redemption.

 

 

     “Treasury Rate” means, with respect to any redemption date, the rate per annum equal
to the semiannual equivalent yield to maturity of the Comparable Treasury Issue, assuming a price
for the Comparable Treasury Issue (expressed as a percentage of its principal amount) equal to the
Comparable Treasury Price for such redemption date.

     “Comparable Treasury Issue” means the United States Treasury security selected by an
Independent Investment Banker as having an actual or interpolated maturity comparable to the
remaining term of the Notes to be redeemed that would be utilized, at the time of selection and in
accordance with customary financial practice, in pricing new issues of corporate debt securities of
comparable maturity to the remaining term of the Notes.

     “Comparable Treasury Price” means, with respect to any redemption date, (1) the
average of four Reference Treasury Dealer Quotations for such redemption date, after excluding the
highest and lowest such Reference Treasury Dealer Quotations, or (2) if the Company obtains fewer
than four such Reference Treasury Dealer Quotations, the average of all such quotations.

     “Independent Investment Banker” means one of the Reference Treasury Dealers appointed
by the Company.

     “Reference Treasury Dealers” means (1) Deutsche Bank Securities Inc. and UBS
Securities LLC and their successors; provided, however, that if either of the foregoing shall cease
to be a primary U.S. Government securities dealer (“Primary Treasury Dealer”), the Company
shall substitute another nationally recognized investment banking firm that is a Primary Treasury
Dealer, and (2) at the option of the Company, additional Primary Treasury Dealers selected by the
Company.

     “Reference Treasury Dealer Quotations” means, with respect to each Reference Treasury
Dealer and any redemption date, the average, as determined by the Company, of the bid and asked
prices for the Comparable Treasury Issue (expressed in each case as a percentage of its principal
amount) quoted in writing to the Company by such Reference Treasury Dealer at 5:00 p.m. New York
City time on the third Business Day preceding such redemption date.

     Any redemption pursuant to the preceding paragraph will be made at the Optional Redemption
Price upon not less than 30 nor more than 60 days prior notice before the redemption date to the
Holders. If the Notes are only partially redeemed by the Company pursuant to an Optional
Redemption, the Notes will be redeemed by such method as the Trustee shall deem fair and
appropriate and in accordance with the Indenture. In the event of redemption of this Note in part
only, a new Note or Notes of this series for the unredeemed portion hereof shall be issued in the
name of the Holder hereof upon the cancellation hereof. Unless the Company defaults in payment of
the redemption price, on and after the redemption date interest will cease to accrue on the Notes
or portions thereof called for redemption.

     If a Change of Control Triggering Event (as defined below) occurs, unless the Company has
exercised its option to redeem the Notes (as described above), the Company shall be required to
make an offer (the “Change of Control Offer”) to each holder of the Notes to repurchase all
or any part (equal to $2,000 or an integral multiple of $1,000 in excess thereof) of that holder’s
Notes on the terms set forth below. In the Change of Control Offer, the Company shall be

 

 

required to offer payment in cash equal to 101% of the aggregate principal amount of Notes
repurchased, plus accrued and unpaid interest, if any, on the Notes repurchased to the date of
repurchase (the “Change of Control Payment”). Within 30 days following any Change of
Control Triggering Event or, at the option of the Company, prior to any Change of Control, but
after public announcement of the transaction that constitutes or may constitute the Change of
Control, a notice shall be mailed to holders of the Notes describing the transaction that
constitutes or may constitute the Change of Control Triggering Event and offering to repurchase the
Notes on the date specified in the notice, which date shall be no earlier than 30 days and no later
than 60 days from the date such notice is mailed (the “Change of Control Payment Date”).
The notice shall, if mailed prior to the date of consummation of the Change of Control, state that
the offer to purchase is conditioned on the Change of Control Triggering Event occurring on or
prior to the Change of Control Payment Date.

     On the Change of Control Payment Date, the Company shall, to the extent
lawful:

	 	(1)	 	accept for payment all Notes or portions of Notes properly tendered pursuant to
the Change of Control Offer;
	 
	 	(2)	 	deposit with the paying agent an amount equal to the Change of Control Payment in
respect of all Notes or portions of Notes properly tendered; and
	 
	 	(3)	 	deliver or cause to be delivered to the Trustee the Notes properly accepted
together with an Officers’ Certificate stating the aggregate principal amount of Notes
or portions of Notes being repurchased.

     The Company shall not be required to make a Change of Control Offer upon the occurrence of a
Change of Control Triggering Event if a third party makes such an offer in the manner, at the times
and otherwise in compliance with the requirements for an offer made by the Company and the third
party repurchases all Notes properly tendered and not withdrawn under its offer. In addition, the
Company shall not repurchase any Notes if there has occurred and is continuing on the Change of
Control Payment Date an Event of Default, other than a default in the payment of the Change of
Control Payment upon a Change of Control Triggering Event.

     The Company shall comply with the requirements of Rule 14e-1 under the Securities Exchange Act
of 1934, as amended (the “Exchange Act”), and any other securities laws and regulations
thereunder to the extent those laws and regulations are applicable in connection with the
repurchase of the Notes as a result of a Change of Control Triggering Event. To the extent that the
provisions of any such securities laws or regulations conflict with the Change of Control Offer
provisions of the Notes, the Company shall comply with those securities laws and regulations and
shall not be deemed to have breached its obligations under the Change of Control Offer provisions
of the Notes by virtue of any such conflict.

     For purposes of the Change of Control Offer provisions of the Notes, the following definitions
shall apply:

     “Change of Control” means the occurrence of any of the following: (1) the consummation
of any transaction (including, without limitation, any merger or consolidation) the

 

 

result of which is that any “person” (as that term is used in Section 13(d)(3) of the Exchange
Act), other than the Company or one of its subsidiaries, becomes the beneficial owner (as defined
in Rules 13d-3 and 13d-5 under the Exchange Act), directly or indirectly, of more than 50% of the
Company’s Voting Stock or other Voting Stock into which the Company’s Voting Stock is reclassified,
consolidated, exchanged or changed, measured by voting power rather than number of shares; (2) the
direct or indirect sale, transfer, conveyance or other disposition (other than by way of merger or
consolidation), in one or a series of related transactions, of all or substantially all of the
Company’s assets and the assets of its subsidiaries, taken as a whole, to one or more “persons” (as
that term is defined in the Indenture), other than the Company or one of its subsidiaries; (3) the
adoption of a plan relating to the Company’s liquidation or dissolution; or (4) the replacement of
a majority of the Company’s Board of Directors over a two-year period from the directors who
constituted the Company’s Board of Directors at the beginning of such period, and such replacement
directors shall not have been approved by at least a majority of the Company’s Board of Directors
then still in office (either by a specific vote or by approval of a proxy statement in which such
member was named as a nominee for election as a director) who either were members of such Board of
Directors at the beginning of such period or whose election as a member of such Board of Directors
was previously so approved. Notwithstanding the foregoing, a transaction shall not be deemed to be
a Change of Control if (1) the Company becomes a direct or indirect wholly-owned subsidiary of a
holding company and (2)(A) the direct or indirect holders of the Voting Stock of such holding
company immediately following that transaction are substantially the same as the holders of the
Company’s Voting Stock immediately prior to that transaction or (B) immediately following that
transaction no “person” (as that term is used in Section 13(d)(3) of the Exchange Act) (other than
a holding company satisfying the requirements of this sentence) is the beneficial owner, directly
or indirectly, of more than 50% of the Voting Stock of such holding company.

     “Change of Control Triggering Event” means the occurrence of both a Change of
Control and a Rating Event.

     “Investment Grade Rating” means a rating equal to or higher than Baa3 (or the
equivalent) by Moody’s and BBB- (or the equivalent) by S&P, and the equivalent investment grade
credit rating from any replacement Rating Agency or Rating Agencies.

     “Moody’s” means Moody’s Investors Service, Inc.

     “Rating Agencies” means (1) each of Moody’s and S&P, and (2) if either Moody’s or S&P
ceases to rate the Notes or fails to make a rating of the Notes publicly available for reasons
outside of the Company’s control, a “nationally recognized statistical rating organization” within
the meaning of Rule 15c3-1(c)(2)(vi)(F) under the Exchange Act selected by the Company (as
certified by a resolution of the Company’s Board of Directors) as a replacement agency for Moody’s
or S&P, or both of them, as the case may be.

     “Rating Event” means the rating on the Notes is lowered by each of the Rating Agencies
and the Notes are rated below an Investment Grade Rating by each of the Rating Agencies on any day
within the 60-day period (which 60-day period will be extended so long as the rating of the Notes
is under publicly announced consideration for a possible downgrade by any of the Rating Agencies
but no longer than 180 days) after the earlier of (1) the occurrence of a Change

 

 

of Control and (2) public notice of the Company’s intention to effect a Change of Control;
provided, however, that a Rating Event otherwise arising by virtue of a particular
reduction in rating shall not be deemed to have occurred in respect of a particular Change of
Control (and thus shall not be deemed a Rating Event for purposes of the definition of Change of
Control Triggering Event) if the Rating Agencies making the reduction in rating to which this
definition would otherwise apply do not announce or publicly confirm or inform the Trustee in
writing at the Company’s or its request that the reduction was the result, in whole or in part, of
any event or circumstance comprised of or arising as a result of, or in respect of, the applicable
Change of Control (whether or not the applicable Change of Control has occurred at the time of the
Rating Event).

     “S&P” means Standard & Poor’s Rating Services, a division of The McGraw-Hill
Companies, Inc.

     “Voting Stock” means, with respect to any specified “person” (as that term is used in
Section 13(d)(3) of the Exchange Act), as of any date, the capital stock of such person that is at
the time entitled to vote generally in the election of the board of directors of such person.

     The Company’s obligation to make a Change of Control Offer as set forth herein shall be
subject to the covenant defeasance provisions of Section 13.02(c) of the Indenture.

     If an Event of Default, with respect to the Notes shall have occurred and be continuing, the
principal of this Note may be declared due and payable in the manner and with the effect set forth
in the Indenture.

     The Indenture contains provisions permitting the Company and the Trustee, with the consent of
the Holders of not less than a majority in aggregate principal amount of the Notes at the time
Outstanding of each series to be affected to execute supplemental indentures adding any provisions
to or changing in any manner or eliminating any of the provisions of the Indenture or of any
supplemental indenture or modifying in any manner the rights of the Holders of the Notes subject to
the limitations set forth in the Indenture. It is also provided in the Indenture that, with
respect to certain defaults or Events of Default regarding the Securities of any series, the
Holders of a majority in aggregate principal amount of the Securities at the time Outstanding of
such series may on behalf of the Holders of all the Securities of such series waive any such past
default or Event of Default and its consequences. The preceding sentence shall not, however, apply
to a default in the payment of the principal of or premium, if any, or interest on the Notes. Any
such consent or waiver by the Holder of this Note (unless revoked as provided in the Indenture)
shall be conclusive and binding upon such Holder and upon all future Holders and owners of this
Note and any Notes which may be issued in exchange or substitution herefor, irrespective of whether
or not any notation thereof is made upon this Note or such other Notes.

     No reference herein to the Indenture and no provision of this Note or of the Indenture shall
alter or impair the obligations of the Company, which are absolute and unconditional, to pay the
principal of, and any premium and interest on, this Note in the manner and at the respective times
herein provided.

 

 

     The Notes are issuable in registered form without coupons in denominations of $2,000 and any
multiple of $1,000 in excess thereof. In the manner and subject to the limitations provided in the
Indenture, but without the payment of any service charge, Notes may be exchanged for a like
aggregate principal amount of Notes of other authorized denominations at the office or agency of
the Trustee in the City of New York.

     There is no sinking fund for the retirement of the Notes.

     Upon due presentment for registration of transfer of this Note at the office or agency of the
Trustee in the City of New York, a new Note or Notes of authorized denominations for an equal
aggregate principal amount will be issued to the transferee in exchange therefor, subject to the
limitations provided in the Indenture, without charge except for any tax or other governmental
charge imposed in connection therewith.

     Prior to due presentment for registration of transfer, the Company, the Trustee and any agent
of the Company, or the Trustee may treat the registered Holder hereof as the owner of this Note
(whether or not this Note shall be overdue), for the purpose of receiving payment of the principal
hereof and premium, if any, and subject to the provisions on the face hereof, interest hereon, and
for all other purposes, and neither the Company, nor the Trustee nor any agent of the Company, or
the Trustee shall be affected by any notice to the contrary.

     No recourse under or upon any obligation, covenant or agreement contained in the Indenture or
any indenture supplemental thereto or in any Note, or because of any indebtedness evidenced
thereby, shall be had against any past, present or future stockholder, employee, officer or
director, as such, of the Company, or of any predecessor or successor, either directly or through
the Company, or any predecessor or successor, under any rule of law, statute or constitutional
provision or by the enforcement of any assessment or by any legal or equitable proceeding or
otherwise, all such liability being expressly waived and released by the acceptance hereof and as
part of the consideration for the issue hereof.

     This Note is the senior unsecured and unsubordinated obligation of the Company and will rank
on a parity with all other unsecured and unsubordinated indebtedness of the Company, including any
other Securities issued under the Indenture.

 

 

[FORM OF TRANSFER NOTICE]

     FOR VALUE RECEIVED the undersigned registered holder hereby sell(s), assign(s) and transfer(s)
unto

Insert Taxpayer Identification No.

      

Please print or typewrite name and address including zip code of assignee

      

the within Note and all rights thereunder, hereby irrevocably constituting and appointing attorney
to transfer said Note on the books of

      

the Company with full power of substitution in the premises.

	 	 	 	 	 
	By:
	 	 	 	 
	 

	 	 

	 	 
	Date:
	 	 	 	 
	 

	 	 

	 	 

 

 

Schedule I

[Include as Schedule I only for a Global Note]

BAXTER INTERNATIONAL INC.

4.000% Senior Notes due 2014

No.
—

	 	 	 	 	 	 	 
	 	 	 	 	Notation Explaining Principal	 	Authorized Signature of
	Date	 	Principal Amount	 	Amount Recorded	 	Trustee or CustodianEX-10(A)

Exhibit
(10)(a)

ASSOCIATED BANC-CORP

1987 LONG-TERM INCENTIVE STOCK PLAN

Amended and Restated Effective January 1, 2008

 

ASSOCIATED BANC-CORP

1987 LONG-TERM INCENTIVE STOCK PLAN

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	 	 	Page
	SECTION I
	 	Purpose of the Plan	 	1
	 
	SECTION II
	 	Administration	 	1
	 
	SECTION III
	 	Awards	 	2
	 
	SECTION IV
	 	Miscellaneous Provisions	 	11
	 
	SECTION V
	 	Amendment and Termination; Adjustments Upon Changes in Stock	 	16
	 
	SECTION VI
	 	Shares of Stock Available	 	16
	 
	SECTION VII
	 	Effective Date and Term of the Plan	 	17
	 
	SECTION VIII
	 	Disclaimer	 	17

i

 

Section I. Purpose of the Plan.

     The purpose of this Associated Banc-Corp 1987 Long-Term Incentive Stock Plan (prior to January
1, 2008, known as the Associated Banc-Corp Restated Long-Term Incentive Stock Plan) (the “Plan”) is
(i) to associate more closely the interests of certain key employees of Associated Banc-Corp (the
“Company”) and its affiliated units and directors of the Company (the “Participants”) with those of
the Company’s stockholders by encouraging stock ownership, (ii) to provide long-term incentives and
rewards to those key employees of the Company and its affiliated units who are in a position to
contribute to the long-term success and growth of the Company, and (iii) to assist the Company in
retaining and attracting key employees with requisite experience and ability.

Section II. Administration.

	(a)	 	The Committee. The Plan shall be administered by the Compensation and Benefits
Committee of the Company’s Board of Directors (the “Committee”) composed of not less than
three Directors. In the event that any member of the Committee is to be granted Options under
the Plan, then said grant shall be made by the Board of Directors of the Company. The Board
of Directors’ actions in such instances shall be governed by each of the provisions of the
Plan to the extent applicable to the Committee. Options under the Plan can be granted to
officers and directors of the Company only after the Plan has been ratified by the
shareholders of the Company.

	(b)	 	Authority and Discretion of Committee. Subject to the express provisions of the Plan
and provided that all actions taken shall be consistent with the purposes of the Plan, the
Committee shall have full and complete authority and the sole discretion to: (i) determine
those key employees of the Company and its affiliated units who shall be among the
Participants; (ii) select the Participants to whom awards are to be granted under this Plan;
(iii) determine the size and the form of the award or awards to be granted to any Participant;
(iv) determine the time or times such awards shall be granted; (v) establish the terms and
conditions upon which such awards may be exercised and/or transferred; (vi) alter any
restrictions or vesting schedules; and (vii) adopt such rules and regulations, establish,
define and/or interpret any other terms and conditions, and make all other determinations
(which may be on a case-by-case basis) deemed necessary or desirable for the administration of
the Plan.

1

 

	(c)	 	Option Grants. Options granted under the Plan may, in the discretion of the
Committee, be either Incentive Stock Options (“ISOs”) as defined in Section 422 of the
Internal Revenue Code of 1986, as amended, (the “Code”) or nonqualified stock options
(collectively, “Options”). Each stock option agreement shall specifically state, for each
Option granted thereunder, whether the Option is an ISO or a nonqualified stock option. In no
event, however, shall both an ISO and a nonqualified stock option be granted together under
the Plan in such a manner that the exercise of one Option affects the right to exercise the
other. The provisions of this Plan and of each ISO granted hereunder shall be interpreted in
a manner consistent with Section 422 of the Code and with all valid regulations issued
thereunder. However, to the extent that any ISO granted hereunder does not comply with the
provisions of Section 422, such ISO shall be treated as a nonqualified stock option for all
purposes under the Code. ISOs may be granted only to employees of the Company and its
affiliated units. No ISO shall be granted under the Plan subsequent to April 22, 2008.
Except as provided in section III(f)(2), all provisions of this Plan apply to both ISOs and
nonqualified options.

Section III. Awards.

     Awards which the Committee may grant under the Plan may include any or all of the following,
as described herein: Any form of Option, Stock Appreciation Right, Stock Award or Performance
Shares granted under this Plan.

	 	(a)	 	Nonqualified Stock Options. Nonqualified stock options are rights to
purchase shares of the Common Stock of the Company, $.01 par value, (“Common Stock”)
at a price equal to the Fair Market Value of such Common Stock on the date of grant
for a predetermined period of time.

	 	(i)	 	The Committee may grant nonqualified stock options either
alone or in conjunction with Stock Appreciation Rights as described in
paragraph (c) below. It shall determine the number of shares of Common Stock
to be covered by each such nonqualified stock option. Nonqualified stock
options granted hereunder shall be evidenced by option agreements containing
such terms and conditions as the Committee shall establish from time to time
consistent with the Plan.
	 
	 	(ii)	 	No nonqualified stock option shall be exercisable until it is
vested and, thereafter, shall be immediately exercisable. A nonqualified
stock option shall vest in accordance with terms

2

 

	 	 	 	set forth by the Committee at the date of grant in the option agreement.

	 	(iii)	 	In the event of termination of a Participant’s employment
with the Company or its affiliated units for any reason, except as otherwise
provided below, any non-vested portion of any nonqualified stock option
granted to such Participant shall terminate immediately.
	 
	 	(iv)	 	Except as described below or as otherwise determined by the
Committee in its sole discretion, in the event of a Participant’s voluntary or
involuntary termination of employment with the Company or its affiliated
units, the vested portion of any nonqualified stock option granted to such
Participant, but not yet exercised, shall terminate on the date of termination
of employment.
	 
	 	(v)	 	If a Participant’s employment with the Company or its
affiliated unit terminates by reason of the Participant’s death, Permanent
Disability or Retirement, any outstanding nonqualified stock option then held
by such Participant shall remain exercisable, but only to the extent such
nonqualified stock option was exercisable on the date of such Participant’s
termination of employment, until the earlier of (a) one year following the
date of termination and (b) the expiration of the term of such Option. If on
the date of such termination of employment, any such nonqualified stock option
shall not be fully exercisable, the Committee shall have the discretion to
cause such Option to continue to become exercisable on the date or dates
specified therein as if such termination of employment had not occurred. The
Committee may exercise the discretion granted to it by the preceding sentence
at the time a nonqualified stock option is granted or at any time thereafter
while such a nonqualified stock option remains outstanding.
	 
	 	(vi)	 	The Committee will determine the conditions of nonqualified
stock option exercise, but in no event may any portion of a vested
nonqualified stock option be exercisable earlier than one year (except
pursuant to a Change in Control) or later than ten years from the date of the
grant.
	 
	 	(vii)	 	All nonqualified stock options shall vest immediately upon a
Change in Control, as defined in section IV(1) hereof.

3

 

	 	(viii)	 	The purchase price of shares purchased pursuant to any nonqualified stock
option shall be equal to the Fair Market Value of such shares on the date of
nonqualified stock option grant, as determined by the Committee, and shall be
paid in full upon exercise, either (a) in cash; (b) by delivery of shares of
Common Stock held for a period of at least six months (valued at their Fair
Market Value on the date of nonqualified stock option exercise, as defined in
section IV); or (c) a combination of cash and Common Stock.
	 
	 	(ix)	 	The Committee may at any time offer to buy out a nonqualified
stock option previously granted, based on such terms and conditions as the
Committee shall establish and communicate to the Participant at the time that
such offer is made.

	 	(b)	 	ISO. ISOs are rights to purchase shares of the Common Stock at a
price equal to the Fair Market Value of such Common Stock on the date of grant for a
predetermined period of time. Only Participants who are key employees (not directors
who are not also employees) of the Company or an affiliated unit shall be eligible to
receive an ISO grant. However, in the case of an ISO granted to a Participant who at
the time of the grant owns (directly or indirectly, and including the Shares
purchasable under such ISO) stock of the Company possessing more than ten percent
(10%) of the total combined voting power of all classes of stock of the Company, the
Option price shall be at least 110% of such Fair Market Value at the time the ISO is
granted; provided further, that the Option price shall in no event be less than the
par value of the Shares subject to such Option and the ISO must be exercised within 5
years of the date of grant.

	 	(i)	 	The Committee shall determine the number of shares of Common
Stock to be covered by each such ISO. ISOs granted hereunder shall be
evidenced by option agreements containing such terms and conditions as the
Committee shall establish from time to time consistent with the Plan.
	 
	 	(ii)	 	No ISO shall be exercisable until it is vested and,
thereafter, shall be immediately exercisable. An ISO shall vest in accordance
with terms set forth by the Committee at the date of grant in the option
agreement.

4

 

	 	(iii)	 	In the event of termination of a Participant’s employment
with the Company or its affiliated units for any reason, except as otherwise
provided below or as otherwise determined by the Committee in its sole
discretion, any non-vested portion of any ISO granted to such Participant
shall terminate immediately.
	 
	 	(iv)	 	Except as described below or as otherwise determined by the
Committee in its sole discretion, in the event of a Participant’s voluntary or
involuntary termination of employment with the Company or its affiliated
units, the vested portion of any ISO granted to such Participant, but not yet
exercised, shall terminate on the date of termination of employment.
	 
	 	(v)	 	If a Participant’s employment with the Company or its
affiliated unit terminates by reason of the Participant’s death, Permanent
Disability or Retirement, any outstanding ISO then held by such Participant
shall remain exercisable, but only to the extent such option was exercisable
on the date of such Participant’s termination of employment, until the earlier
of (a) one year following the date of termination and (b) the expiration of
the term of such ISO. If on the date of such termination of employment, any
such ISO shall not be fully exercisable, the Committee shall have the
discretion to cause such ISO to continue to become exercisable on the date or
dates specified therein as if such termination of employment had not occurred.
The Committee may exercise the discretion granted to it by the preceding
sentence at the time an ISO is granted or at any time thereafter while such an
ISO remains outstanding.
	 
	 	(vi)	 	The Committee will determine the conditions of Option
exercise, but in no event may any portion of a vested ISO be exercisable
earlier than one year (except pursuant to a Change in Control) or later than
ten years from the date of the grant.
	 
	 	(vii)	 	All ISOs shall vest immediately upon a Change in Control, as
defined in section IV(1) hereof.
	 
	 	(viii)	 	The purchase price of shares purchased pursuant to any ISO shall be equal to
the Fair Market Value of such shares on the date of grant, as determined by
the Committee, and shall be paid in full upon exercise, either (a) in cash;
(b) by delivery

5

 

	 	 	 	of shares of Common Stock held for a period of at least six months (valued
at their Fair Market Value on the date of ISO exercise, as defined in
section IV); or (c) a combination of cash and Common Stock.

	 	(ix)	 	The Committee may at any time offer to buy out an ISO
previously granted, based on such terms and conditions as the Committee shall
establish and communicate to the Participant at the time that such offer is
made.

	 	(c)	 	Stock Appreciation Rights. Stock Appreciation Rights are rights to
receive cash and/or Common Stock in lieu of the purchase of shares under a related
Option. The Committee may grant Stock Appreciation Rights to any optionee either at
the time of the grant of the Option or subsequently, by amendment to such grant. All
Stock Appreciation Rights shall be evidenced by option agreements containing such
terms and conditions as the Committee shall establish from time to time consistent
with the Plan and shall be granted subject to the following terms and conditions and
such other terms and conditions as the Committee may establish:

	 	(i)	 	Each Stock Appreciation Right shall be exercisable at the
same time as the related Option is exercisable.
	 
	 	(ii)	 	Each Stock Appreciation Right shall entitle the holder
thereof to surrender to the Company a portion of or all of the unexercised,
but exercisable, related Option. With respect to each share of Common Stock
as to which an optionee’s Option is surrendered upon exercise of any Stock
Appreciation Right, the optionee shall be entitled to receive, in cash or in
 shares of Common Stock, the economic value of such Stock Appreciation Right.
Such economic value shall be equal to the excess of the Fair Market Value
(determined on the date of exercise of such Stock Appreciation Right) of one
share of Common Stock over the option price per share specified in the related
Option. The Optionee shall not be required to pay the Option exercise price
upon surrender of the Option upon exercise of the related Stock Appreciation
Right.
	 
	 	(iii)	 	Each surrender of a portion of or all of an Option upon the
exercise of a Stock Appreciation Right shall cause a

6

 

	 	 	 	share-for-share reduction in the number of shares of Common Stock covered
by the related Option.

	 	(iv)	 	Stock Appreciation Rights, when exercised, may be paid for by
the Company in cash or Common Stock. The Committee shall have the sole and
absolute discretion to determine the relative amounts of cash or Common Stock
which may be paid or issued upon exercise of Stock Appreciation Rights.

	 	(d)	 	Restricted Stock Awards. Restricted Stock Awards are stock grants,
the payment of which will depend upon the Participant’s continued employment with the
Company and may depend upon the achievement of certain financial performance
objectives.

	 	(i)	 	The Committee may grant Restricted Stock either alone or in
conjunction with Performance Shares as described in paragraph (e) below. It
shall determine the number of shares of Restricted Stock to be covered by each
such grant.
	 
	 	(ii)	 	Restricted Stock is Common Stock acquired by a Participant
subject to the restrictions described in the following subsections.
	 
	 	(iii)	 	Restricted Stock may not be sold, transferred or otherwise
disposed of, pledged, or otherwise encumbered during a period set by the
Committee, commencing with the date of such award. In the event of the
termination of employment of a recipient of Restricted Stock for any reason
except death, Retirement or Permanent Disability, the recipient shall transfer
or cause to be transferred to the Company title to the Restricted Stock owned
by such recipient within 30 days following such termination.
	 
	 	(iv)	 	Restriction terms and conditions will be set by the Committee
at the time of award. These conditions may include the requirement that
certain financial performance objectives of a Participant or the Company are
achieved.
	 
	 	(v)	 	Upon the occurrence of the earlier of the death or Permanent
Disability of the recipient of Restricted Stock, the restrictions against
sale, transfer, and other disposition and against pledge or other encumbrance
of such Restricted Stock, which have not otherwise lapsed, shall immediately
lapse.

7

 

	 	(vi)	 	Upon the occurrence of Retirement, the restrictions against
sale, transfer or other disposition and against pledge or other encumbrance,
as to a portion of the Restricted Stock (Portion A), as to which restrictions
have not otherwise lapsed shall immediately lapse. The retiree shall transfer
or cause to be transferred to the Company title to the balance of the
Restricted Stock (i.e., the portion of Restricted Stock as to which
restrictions have not otherwise lapsed and which is not included in Portion A)
within 30 days following such Retirement.
	 
	 	 	 	For purposes of this subsection, Portion A will be determined separately
for each block of Restricted Stock for which restrictions are due to lapse
on a different date. For each such block, Portion A will be determined by
multiplying the number of shares in such block by a fraction, the
numerator of which is the number of months from the date of grant of that
block of Restricted Stock to the date of retiree’s Retirement and the
denominator of which is the number of months from the date of grant of
that block of Restricted Stock to the date that restrictions on such block
are due to lapse, as determined by the Committee. In the event that the
total Portion A calculated for all such fraction shall be rounded up to
the nearest whole number.
	 
	 	 	 	By way of illustration, if a Participant was granted 100 shares of
Restricted Stock on January 1, 1994, with the restrictions on such stock
due to lapse on January 1, 1999, and 200 shares of Restricted Stock on
January 1, 1995, with the restrictions on such stock due to lapse on
January 1, 2000, and if the Participant retired on January 1, 1996,
Portion A would be determined separately for the Restricted Stock granted
on January 1, 1994, and for the Restricted Stock granted on January 1,
1995. With respect to the Restricted Stock granted on January 1, 1994,
Portion A would equal 40 shares [determined by multiplying 100 (the number
of shares in such block) by 24/60 (the number of months from the date of
grant to the date of Retirement divided by the number of months from the
date of grant to the date of lapse)]. Thus the total amount of stock
included in Portion A for the Participant would be 60 shares (40 plus 20).

8

 

	 	(vii)	 	All restrictions shall lapse immediately upon a Change in
Control, as defined in section IV(1) hereof.
	 
	 	(viii)	 	Certificates issued in respect of Restricted Stock granted under the Plan
shall be registered in the name of the recipient but shall bear the following
legend:
	 
	 	 	 	“The transferability of this certificate and the shares of stock
represented hereby is restricted and the shares are subject to the further
terms and conditions contained in the Associated Banc-Corp 1987 Long-Term
Incentive Stock Plan of Associated Banc-Corp (the “Company”). A copy of
said Plan is on file in the office of the Secretary of the Company at the
Company’s offices in Green Bay, Wisconsin.”
	 
	 	 	 	Prior to January 1, 2008, the legend provided:
	 
	 	 	 	“The transferability of this certificate and the shares of stock
represented hereby is restricted and the shares are subject to the further
terms and conditions contained in the Amended and Restated Long-Term
Incentive Stock Plan of Associated Banc-Corp (the “Company”). A copy of
said Plan is on file in the office of the Secretary of the Company at the
Company’s offices in Green Bay, Wisconsin.”
	 
	 	(ix)	 	In order to enforce the restrictions, terms and conditions on
Restricted Stock, each recipient thereof shall, immediately upon receipt of a
certificate or certificates representing such stock, deposit such
certificates, together with stock powers and such other instructions of
transfer as the Committee may require, appropriately endorsed in blank, with
the Company as Escrow Agent under an escrow agreement in such form as shall be
determined by the Committee.

	 	(e)	 	Performance Shares. Each Restricted Stock Award may be accompanied
by a Performance Share Award.

	 	(i)	 	On the date the restrictions lapse on an accompanying
Restricted Stock Award, each Performance Share awarded will result in payment
to the recipient of the Performance Share Award, in Common Stock or in cash,
of an amount equal to the Fair Market Value of one share of Company Common
Stock on such date multiplied by sum of the highest Federal and state of
residence of Participant marginal income

9

 

	 	 	 	tax rates in effect in the year in which restrictions lapse. A marginal
income tax rate is the rate of tax applicable to the last dollar of income
earned by the taxpayer. The Committee shall have the sole and absolute
discretion to determine the relative amounts of cash or Common Stock which
may be paid or issued in satisfaction of a Performance Share Award.

	 	(ii)	 	The number of Performance Shares shall be determined by the
Committee and will be granted on the same date as is the Restricted Stock
Award.

	 	(f)	 	Limitations on Grants.

	 	(i)	 	The following limitations will apply to grants of Options or
Stock Appreciation Rights under the Plan:

	 	[a] 	 	 No Participant will be granted Options or
Stock Appreciation Rights under the Plan to receive more than 100,000
shares of Common Stock in any fiscal year, provided that the Company
may make an additional one-time grant of up to 20,000 shares to newly
hired employees; and
	 
	 	[b] 	 	 No Participant will be granted Options or
Stock Appreciation Rights under the Plan to purchase more than
1,000,000 shares over the term of the Plan, provided that, if the
number of shares available for issuance under the Plan is increased,
the maximum number of Options or Stock Appreciation Rights that any
Participant may be granted also automatically will increase by a
proportionate amount equal of shares for each additional fiscal year
in which shares are allocated for issuance under the Plan.

	 	 	 	Except as to forfeited shares, the payment of cash dividends and dividend
equivalents in conjunction with outstanding awards shall not be counted
against the shares available for issuance.
	 
	 	 	 	The foregoing limitations are intended to satisfy the requirements
applicable to Options and Stock Appreciation Rights so as to qualify such
awards as “performance-based compensation” within the meaning of
section 162 (m) of the Code. In the event that the Committee determines
that such

10

 

	 	 	 	limitations are not required to qualify Options or Stock Appreciation
Rights as performance-based compensation, the Committee may modify or
eliminate such limitations.

	 	(ii)	 	The following limitations will apply to grants of ISOs under
the Plan:

	 	[a] 	 	 The aggregate Fair Market Value (determined
at the time the ISOs are granted) of the Shares with respect to which
the ISOs are exercisable for the first time by an employee during any
calendar year shall not exceed $100,000. This limitation shall be
applied by taking ISOs into account in the order they were granted.
	 
	 	[b] 	 	 Shares acquired upon the exercise of an ISO
shall not be disposed of (a) within two (2) years following the date
the ISO was granted; nor (b) within one (1) year following the date
shares of Common Stock are transferred to the employee.

Section IV. Miscellaneous Provisions.

	 	(a)	 	Rights of Recipients of Awards. A holder of Options, Stock
Appreciation Rights and Performance Shares granted under the Plan shall have no rights
as a shareholder of the Company by virtue thereof unless and until certificates for
 shares are issued. The holder of a Restricted Stock Award will be entitled to receive
any dividends on such shares in the same amount and at the same time as declared on
 shares of Common Stock of the Company and shall be entitled to vote such shares as a
shareholder of record.
	 
	 	(b)	 	Assignment. Options, Stock Appreciation Rights and Performance
Shares or any rights or interests of a Participant therein, shall be assignable or
transferable by such Participant at the discretion of the Committee or by will or the
laws of descent and distribution.
	 
	 	(c)	 	Further Agreements. All Options, Stock Appreciation Rights,
Restricted Stock Awards and Performance Shares granted under this Plan shall be
evidenced by agreements or other written documents from the Company, in such form and
containing such terms and conditions (not inconsistent with this Plan) as the
Committee may require. Such agreement may set forth certain restrictive covenants
applicable to the Participant and penalties for the breach thereof, as determined by
the Committee in its sole discretion.

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	 	(d)	 	Replacement Options. Upon cancellation of an outstanding Option,
replacement Options may be issued in an amount and with such terms as the Committee
may determine.
	 
	 	(e)	 	Deferral of Exercise.

	 	(i)	 	Securities Law Restrictions. Although the Company
intends to use its best efforts so that the shares purchasable upon the
exercise of Options will be registered under, or exempt from the registration
requirements of the federal Securities Act of 1933, as amended (the
“Securities Act”) and any applicable state securities law at the time Options
become exercisable, if the exercise of an Option or any part of it would
otherwise result in the violation by the Company of any provision of the
Securities Act or of any state securities law, the Company may require that
such exercise be deferred until the Company has taken appropriate action to
avoid any such violation.
	 
	 	(ii)	 	Legal and Other Requirements. No shares of Common
Stock shall be issued or transferred upon exercise of any award under the Plan
unless and until all legal requirements applicable to the issuance or transfer
of such shares and such other requirements as are consistent with the Plan
have been complied with to the satisfaction of the Committee. The Committee
may require that prior to the issuance or transfer of Common Stock hereunder,
the recipient thereof shall enter into a written agreement to comply with any
restrictions on subsequent disposition that the Committee or the Company deem
necessary or advisable under any applicable law, regulation or official
interpretation thereof. Certificates of stock issued hereunder may bear a
legend to reflect such restrictions.

	 	(f)	 	Withholding of Taxes. Pursuant to applicable Federal, state, local,
or foreign tax laws, the Company may be required to collect income or other taxes upon
the grant of certain awards, the exercise of an Option or Stock Appreciation Right, or
the lapse of restrictions on a Restricted Stock Award or Performance Share. The
Company may deduct from payments made under the Plan, or require, as a condition to
such award or to the exercise of an Option or Stock Appreciation Right, that the
recipient pay the Company, at such time as the Committee or the Company determine, the
amount of any taxes which the Committee or the Company determine, in their

12

 

	 	 	 	discretion are required to be withheld. Unless otherwise determined by the
Company, the Participant’s withholding reimbursement obligation may be settled by
the Participant’s transfer of vested Common Stock to the Company. The maximum
number of shares that the Participant may use toward satisfying the withholding
reimbursement shall not exceed the minimum funding required for the withholding.
Where the Participant’s withholding reimbursement obligation arises by reason of
the Participant’s election under section 83(b) of the Code with respect to the
Award, the Participant may not remit unvested shares in satisfaction of the
Participant’s withholding reimbursement obligation.

	 	(g)	 	Right to Awards. No employee of the Company or its affiliated unit
or other person shall have any claim or right to be a Participant in this Plan or to
be granted an award hereunder. Neither the adoption of this Plan nor any action taken
hereunder shall be construed as giving any Participant any right to be retained in the
employ of the Company or any affiliated unit nor shall the grant of any award
hereunder constitute a request or consent to postpone the retirement date of a
Participant. Nothing contained hereunder shall be construed as giving any Participant
or any other person any equity or interest of any kind in any assets of the Company or
creating a trust of any kind or a fiduciary relationship of any kind between the
Company and any such person. As to any claim for any unpaid amounts under the Plan,
any Participant or any other person having a claim for payments shall be an unsecured
creditor.
	 
	 	(h)	 	Fair Market Value. The “Fair Market Value” of the Common Stock of
the Company shall be determined by the Committee and shall be the closing price as
reported on the NASDAQ National Market System as reported in the Wall Street Journal,
for the Company’s Common Stock for the trading day of the date of the grant or
exercise, whichever is appropriate. If no trade occurs on the NASDAQ National Market
System on such date, the “Fair Market Value” of the Common Stock of the Company shall
be determined by the Committee in good faith.
	 
	 	(i)	 	Permanent Disability. “Permanent Disability” shall mean a finding by
the Committee that a Participant is, by reason of any medically determinable physical
or mental impairment that can be expected to result in death or can be expected to
last for a continuous period of not less than 12 months, receiving income replacement
benefits of

13

 

	 	 	 	not less than 3 months under the Associated Banc-Corp Long-Term Disability Plan.

	 	(j)	 	Retirement. “Retirement” shall mean any date on which an employee
retires under the terms and conditions of the Company’s 401(k) and Employee Stock
Ownership Plan provided, however, that the employee has attained age 55 as of such
date.
	 
	 	(k)	 	Indemnity. Neither the Board of Directors nor the Company, nor any
members of either, nor any employees of the Company or its affiliated units, shall be
liable for any act, omission, interpretation, construction or determination made in
good faith in connection with their responsibilities with respect to the Plan, and the
Company hereby agrees to indemnify the members of the Board of Directors, the members
of the Committee, and the employees of the Company and its affiliated units with
respect to any claim, loss, damage, or expense (including counsel fees) arising from
any such act, omission, interpretation, construction or determination with respect to
the Plan or any action taken pursuant to it to the full extent permitted by law and
the Articles of Incorporation of the Company.
	 
	 	(l)	 	Change in Control. “Change in Control” shall mean a change in
control of the Company which shall be deemed to have occurred only if:

	 	(i)	 	25% or more of the outstanding voting securities of the
Company changes beneficial ownership as a result of a tender offer;
	 
	 	(ii)	 	The Company is merged or consolidated with another
corporation, and as a result of such merger or consolidation, less than 75% of
the outstanding voting securities of the surviving or resulting corporation is
owned in the aggregate by the shareholders of the Company who owned such
securities immediately prior to such merger or consolidation, other than
affiliates (within the meaning of the Exchange Act) of any party to such
merger or consolidation;
	 
	 	(iii)	 	The Company sells at least 85% of its assets to any entity
which is not a member of the control group of corporations, within the meaning
of Internal Revenue Code section 1563, of which the Company is a member; or

14

 

	 	(iv)	 	A person, within the meaning of sections 3(a)(9) or 13(d)(3)
of the Exchange Act, acquires 25% or more of the outstanding voting securities
of the Company (whether directly, indirectly, beneficially or of record).

	 	 	 	For purposes hereof, ownership of voting securities shall take into account and
shall include ownership as determined by applying the provisions of Rule
13d-3(d)(1)(i) (relating to options) of the Exchange Act.
	 
	 	(m)	 	Transfers and Leaves. A change in employment or service from the
Company to an affiliated unit of the Company, or vice versa, shall not constitute
termination of employment or service for purposes of the Plan. Furthermore, the
Committee (or Board of Directors in case of a member of the Committee) may determine
that for purposes of the Plan, a Participant who is on leave of absence will still be
considered as in the continuous employment or service of the Company.
	 
	 	(n)	 	No Fiduciary Relationship or Responsibility. The Plan is not subject
to ERISA. Under ERISA and related federal laws, the Company is not a fiduciary with
respect to the Plan, and has no fiduciary obligation with respect to any Participant,
beneficiary or other person claiming a right hereunder. Further, nothing herein
contained, and no action or inaction arising pursuant hereto shall give rise under
state or federal law to a trust of any kind or create any fiduciary relationship of
any kind or degree for the benefit of Participants, any beneficiary, or any other
person.
	 
	 	(o)	 	Severability of Provisions. If any provision of this Plan is held to
be invalid or unenforceable, such invalidity or unenforceability shall not affect any
other provisions, and this Plan shall be construed and enforced as if such provision
had not been included.
	 
	 	(p)	 	Governing Law. This Plan shall be governed, administered, construed
and enforced according to the laws of the United States and the State of Wisconsin law
to the extent not preempted by the laws of the United States.
	 
	 	(q)	 	Waiver. A waiver by a party of any of the terms and conditions of
this agreement in any instance shall not be deemed or construed to be a waiver of such
term or condition for the future, or of any

15

 

	 	 	 	subsequent breach thereof, or of any other term or condition of this agreement.

	 	(r)	 	Entire Agreement. This Plan constitutes the entire agreement between
the parties respecting the subject matter hereof, and there are no representations,
warranties, agreements, or commitments of the Company hereto except as set forth
herein. This Plan may be amended only by an instrument in writing.

Section V.
Amendment and Termination; Adjustments
Upon Changes in Stock

     The Board of Directors of the Company may at any time, and from time to time, amend, suspend
or terminate the Plan in whole or in part; provided, that such amendment shall be subject to
shareholder approval to the extent required by applicable law or the rules of the NASDAQ National
Market System or any other exchange or market on which any of the Company’s securities are traded.
Except as provided herein, no amendment, suspension or termination of the Plan may impair the
rights of a Participant to whom an award has been granted without such Participant’s consent. If
there shall be any change in the stock subject to the Plan or to any Option, Stock Appreciation
Right, Restricted Stock Award, Performance Share Award or other award granted under the Plan,
through merger, consolidation, reorganization, recapitalization, stock dividend, stock split or
other change in the corporate structure, appropriate adjustments may be made by the Board of
Directors of the Company in the aggregate number and kind of shares and the price per share subject
to outstanding Options, Stock Appreciation Rights, Restricted Awards, Performance Share Awards or
other awards. Effective January 1, 2008, the Board of Directors of the Company has authorized the
Committee to act on behalf of the Company for purposes of the Plan.

Section VI. Shares of Stock Available.

     The shares available for Options, Stock Appreciation Right Awards, Restricted Stock Awards,
Performance Share Awards or other awards under this Plan shall not exceed 9,440,575 shares of the
Company’s common stock (adjusted for stock dividends and splits), $.01 par value. This amount will
be reduced upon the exercise of an Option, by the number of shares exercised; upon the exercise of
a Stock Appreciation Right, by an amount equal to the number of shares covered by the Option
cancelled due to Stock Appreciation Rights exercised; by the number of shares which are released
due to the lapse of restrictions in case of a Restricted Stock Award; by the number of Performance
Shares paid (in cash or Common Stock) at the time restrictions lapse on the Restricted Stock Awards
which the Performance Shares accompany paid at the time restrictions lapse on

16

 

such awards. Any shares subject to an Option hereunder that for any reason expires,
terminates or is cancelled (other than because of the exercise of an attached Stock Appreciation
Right or the unexercised expiration of such Option); shares reacquired by the Company because the
Participant’s employment with the Company terminates prior to the lapse of restrictions on
Restricted Stock Awards; or Performance Shares not paid because the participant’s employment with
the Company terminates prior to the lapse of restrictions on accompanying Restricted Stock Awards
will be available for further awards. Shares of Common Stock available for Options, Stock
Appreciation Right Awards, Restricted Stock Awards and Performance Share Awards, Performance Units
or Other Stock-Based Awards may be authorized but unissued shares, treasury shares, or shares
reacquired on the open market. No fractional shares shall be issued under the Plan. Cash may be
paid in lieu of any fractional shares and settlement of awards under the Plan.

Section VII. Effective Date and Term of the Plan.

     Subject to shareholder approval, the effective date of the amendment and restatement of the
Plan is the date on which shareholder approval is obtained (the “Effective Date”). Awards under
the Plan may be made for a period of ten years commencing on such date. The period during which an
Option or other Award may be exercised may extend beyond that time as provided herein. Unless
otherwise agreed to by the Participant in writing, awards made prior to the Effective Date shall
remain subject to the terms and conditions of the Plan prior to its amendment and restatement and
the applicable option (or other award) agreement.

Section VIII. Disclaimer

     Associated is not responsible for the failure of optionees to make timely exercises, nor will
any exception to the Plan be granted because of such failure and inaction.

     Adopted by the Administrative Committee of the Board of Directors: January 26, 1994.

     Adopted by the Board of Directors: January 26, 1994.

     Approved by Shareholders at the April 28, 1994, Annual Meeting.

     Amended by the Board of Directors: October 23, 1996.

     Amended by the Administrative Committee of the Board of Directors: January 22, 1997.

17

 

     Adopted by the Board of Directors: January 22, 1997.

     Approved by the Shareholders at the April 23, 1997, Annual Meeting.

     Amended by the Administrative Committee of the Board of Directors: January 28, 1998.

     Adopted by the Board of Directors: January 28, 1998.

     Approved by the Shareholders at the April 22, 1998, Annual Meeting.

     Amended by the Administrative Committee of the Board of Directors: January 27, 1999

     Adopted by the Board of Directors: January 27, 1999

     Amended by the Administrative Committee of the Board of Directors: January 23, 2002

     Adopted by the Board of Directors: January 23, 2002

     Approved by the Shareholders at the April 24, 2002, Annual Meeting.

     Amended
by the Compensation and Benefits Committee: October 28, 2008.

     Adopted by the Board of Directors: October 28, 2008.

18

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