Document:

exv10wk

 

EXHIBIT (10)(k)

NONCOMPETE AGREEMENT

     THIS NONCOMPETE AGREEMENT (this “Agreement”) is dated as of October 29, 2004 by and among
ASSOCIATED BANC-CORP., a Wisconsin corporation (“Associated”) and JACK C. RUSCH (“Mr. Rusch”).

RECITALS

     A. Mr. Rusch owns shares of the issued and outstanding common stock of First Federal Capital
Corp., a Wisconsin corporation, the sole shareholder of First Federal Capital Bank (collectively,
“First Federal”).

     B. First Federal engaged in the business of providing financial services (the “Business”).

     C. Associated and First Federal are parties to that certain Agreement and Plan of Merger dated
as of the date hereof (the “Merger Agreement”) pursuant to which First Federal will be merged with
and into Associated and Associated shall continue as the surviving corporation.

     D. Mr. Rusch acknowledges that he has (1) been an executive level employee of First Federal
(2) had access to confidential information of First Federal and (3) extensive experience and
knowledge of the Business that he could use to compete with Associated (as successor to First
Federal) after the Closing Date (as defined in the Merger Agreement).

     E. Associated and Mr. Rusch acknowledge that their entry into this Agreement is a condition to
the consummation of the transactions contemplated by the Merger Agreement. Mr. Rusch further
acknowledges that he has entered into a Consulting Agreement (attached hereto as Exhibit A), the
term of which runs concurrently with the obligations contained herein, and that entry into this
Agreement is a condition of Associated entering into the Consulting Agreement. Mr. Rusch
acknowledges that during the term of the Consulting Agreement, he owes Associated a common law duty
of loyalty, in addition to the obligations contained herein.

     F. Associated and Mr. Rusch deem it to be in the best interest of all parties to limit the
ability of Mr. Rusch to compete with Associated after the date hereof as a result of the
consummation of the transactions contemplated by the Merger Agreement.

 

 

AGREEMENTS

     In consideration of the Recitals and mutual promises set forth below and other good and
valuable consideration the receipt and sufficiency of which is hereby acknowledged, the parties
agree as follows:

     1. Consideration. Mr. Rusch shall receive $62,500 per month over the term of this
Agreement in exchange for agreeing to the terms of this Agreement (the “Noncompete Payments”). Mr.
Rusch acknowledges and agrees that the benefits and consideration he will receive as a result of
the consummation of the transactions contemplated by the Merger Agreement constitute adequate and
sufficient consideration for their covenants contained in this Agreement. Mr. Rusch acknowledges
that Associated would not consummate the transactions contemplated by the Merger Agreement if Mr.
Rusch did not agree to be bound by the provisions contained in this Agreement. In the event of the
death of Mr. Rusch, Associated shall continue to pay to the estate of Mr. Rusch the Noncompete
Payments through the term of this Agreement. Associated may prepay such payments without penalty.

     2. Noncompete Provisions.

          (a) Certain Definitions. For purposes of this Agreement, “Territory” means the
counties in which First Federal or its subsidiaries currently has an office. For purposes of this
Agreement, “Customer of First Federal” means any individual or entity to which First Federal
provided products or services at any time during the two year period prior to the Closing Date or
which First Federal actively solicited for the purpose of providing products or services during the
two year period prior to the Closing Date.

          (b) Noncompete. During the period commencing on the Closing Date (as defined in the
Merger Agreement) and ending on the second anniversary of the Closing Date, Mr. Rusch will not,
directly or indirectly, either individually or as an employee, officer, principal, agent, partner,
owner, trustee, beneficiary, co-venturer, distributor, consultant or in any other capacity, (i)
within the Territory, participate in, become associated with, provide assistance to, engage in, or
have a financial or other interest in any business, activity, enterprise or entity, which competes
with the Business or any other business of First Federal (or Associated as successor to First
Federal) that relates or is complimentary or supplemental to the Business, (ii) within the
Territory, advertise, promote or otherwise endorse any second party products and/or services which
compete with the Business or any other business of First Federal (or Associated as successor to
First Federal)or supplemental to the Business or (iii) canvass, contact, solicit or do

 

 

business with any Customer of First Federal for the purpose of providing products or services
similar to or competitive with those provided by First Federal (or Associated as successor to First
Federal).

          (c) Limitations. The ownership of less than a 5% interest in an entity whose
securities are traded in a recognized stock exchange or traded in the over-the-counter market, even
though that entity is competitive with the Business, shall not be a breach of paragraph 2(b) of
this Agreement.

     3. Confidential Information and Trade Secrets.

          (a) Certain Definitions.

               (i) For purposes of this Agreement, “Confidential Information” means information, to the
extent it is not a trade secret, that is possessed by or developed for First Federal (or Associated
as successor to First Federal) and that relates to the business or technology, including but not
limited to, Inventions (as defined below), business plans and strategies, existing or proposed
bids, technical or engineering developments, existing or proposed research projects, financial or
business projections, investments, marketing plans and strategies, pricing and cost information,
negotiation strategies, training information and materials, employee compensation and other
employee information, customer or potential customer lists, customer accounts or customer account
history and information generated for customer engagements. Confidential Information also includes
information received by First Federal (or Associated as successor to First Federal) from others
which either has an obligation to treat as confidential, including all information obtained in
connection with customer engagements. Confidential Information shall not include information that
is generally known to the public as of the date of this Agreement.

               (ii) For purposes of this Agreement, “Inventions” means all inventions, original works of
authorship, developments, concepts, improvements, designs, discoveries, ideas, processes,
techniques, formula, trademarks, data and other intellectual property other than trade secrets
(whether or not protectible under intellectual property laws or similar laws), made solely by Mr.
Rusch (or jointly with others) while Mr. Rusch owned securities of First Federal that [a] relate to
First Federal’s business services or activities, [b] were developed or conceived in connection with
Mr. Rusch’s ownership of securities of First Federal or [c] were developed or conceived using First
Federal’s assets.

          (b) Nondisclosure. Mr. Rusch agrees that until the first to occur of (i) such time as
the Confidential Information becomes generally available to the public through no fault of Mr.
Rusch, or any other person under a duty of

 

 

confidentiality to First Federal or Associated, (ii) such time as the Confidential Information
no longer provides a benefit to Associated, or (iii) the second anniversary of the Closing Date,
Mr. Rusch will not, directly or indirectly, use or disclose, or cause to be used or disclosed, in
any geographic area in which such use or disclosure could harm Associated’s existing or potential
business interests, any Confidential Information.

          (c) Trade Secrets. Notwithstanding the foregoing paragraph, the parties agree that
nothing in this Agreement shall be construed to limit or negate any statutory or common law of
torts or trade secrets, where such law provides Associated with broader protection than that
provided in this Agreement. Following the Closing Date, Mr. Rusch shall take all steps that are
reasonably necessary to prevent unauthorized misappropriation or disclosure of First Federal’s (or
Associated as successor to First Federal) trade secrets and shall not use or disclose such trade
secrets as long as they remain trade secrets.

     4. Acknowledgements Regarding Confidential Information and Trade Secrets. Mr. Rusch
agrees and acknowledges that the Confidential Information has been established, maintained and
protected by First Federal (and Associated as successor to First Federal) at great expense, is
valuable to each party, and will provide such parties with a substantial competitive advantage in
conducting the Business. Mr. Rusch acknowledges and agrees that the Confidential Information and
all of First Federal’s (and Associated as successor to First Federal) trade secrets are part of the
assets of First Federal being transferred to Associated pursuant to the Merger Agreement. To the
extent Mr. Rusch has not already done so, Mr. Rusch hereby assigns to First Federal (and Associated
as successor to First Federal) all of Mr. Rusch’s right, title and interest in and to any and all
Inventions and trade secrets, whether or not patentable or registrable under copyright or similar
laws, which Mr. Rusch may solely or jointly have conceived, developed or reduced to practice, or
caused to be conceived, developed or reduced to practice, during Mr. Rusch’s ownership of
securities of First Federal. Mr. Rusch agrees to take such additional actions and execute such
additional documents as may be necessary or appropriate to effectuate the foregoing assignments.
Mr. Rusch further acknowledges that all original works of authorship which were made by Mr. Rusch
(solely or jointly with others) on behalf of or at the request of First Federal while Mr. Rusch
owned securities of First Federal and which are protectible by copyright are “works made for hire,”
as that term is defined in the United States Copyright Act.

     5. Relations with Suppliers and Vendors. During the period commencing on the Closing
Date and ending on the second anniversary of the Closing Date, Mr. Rusch will not, directly or
indirectly, cause, request, or advise

 

 

any supplier or vendor of First Federal (or Associated as successor to First Federal) to curtail or
cancel its business with Associated.

     6. Relations with Employees. During the period commencing on the Closing Date and
ending on the second anniversary of the Closing Date, Mr. Rusch will not, directly or indirectly,
induce or attempt to induce any employee, officer, director, sales or other representative,
consultant, independent contractor or other agent of First Federal (or Associated as successor to
First Federal) who had a relationship with First Federal prior to the Closing Date to terminate
his, her or its relationship with Associated or breach his, her or its agreements with Associated.
Nothing in this Agreement shall otherwise prohibit Mr. Rusch’s future employer from hiring such
individuals without Mr. Rusch’s involvement.

     7. Specific Performance. Mr. Rusch acknowledges and agrees that irreparable injury to
Associated may result in the event that Mr. Rusch breaches any covenant in this Agreement, and that
the remedy at law for the breach of any such covenant will be inadequate. If Mr. Rusch engages in
any act in violation of any provision of paragraph 2(b), 3(b), 3(c), 5 or 6, Mr. Rusch agrees that
Associated shall be entitled, in addition to such other remedies and damages that may be available
to it by law or under this Agreement, to injunctive relief to enforce such provisions without the
necessity of posting a bond.

     8. Miscellaneous.

          (a) All provisions in this Agreement, including subparagraphs, are severable, and the
unenforceability of any provision shall not affect the enforceability of any other provision. The
parties agree that each covenant contained in paragraphs 2(b), 3(b), 3(c), 5 and 6 is separate and
independent.

          (b) Associated may assign this Agreement to a successor entity without notification to, or the
consent of Mr. Rusch. This Agreement shall be binding upon Mr. Rusch, and shall inure to the
benefit of Associated, its successors and assigns. Mr. Rusch shall not assign the Agreement
without prior consent from Associated.

          (c) The failure by Associated to enforce any right or remedy available to it under this
Agreement shall not be construed to be a waiver of such right or remedy with respect to any other
prior, concurrent or subsequent breach or failure. No waiver of rights under this Agreement shall
be effective unless made in writing.

 

 

          (d) This Agreement shall be governed by and construed in accordance with the laws of the State
of Wisconsin.

          (e) This Agreement was jointly drafted by the parties hereto and no rules of strict
construction shall be applied against any party.

Dated as of the date first written above.

	 	 	 	 	 
	 	 	ASSOCIATED
BANC-CORP.:

	 	 	

	 
	 	 	 	 
	

	 	BY  
	/s/ Brian R. Bodager
	

	 	 	 	 
	

	 	 	Its    	 
	 
	 	 	 	 
	 	 	JACK C. RUSCH:
	 
	 	 	 	 
	 	 	/s/ Jack C. Ruschexv10wl

 

EXHIBIT (10)(L)

CONSULTING AGREEMENT

     THIS AGREEMENT is made and entered into as of this 29th day of October, 2004, by and between
ASSOCIATED BANK, a Wisconsin chartered bank (the “Bank”), and JACK C. RUSCH, an individual (“Mr.
Rusch”).

RECITALS

     A. The Bank and Mr. Rusch have terminated their employer/employee relationship pursuant to the
Termination Agreement between the Bank and Mr. Rusch dated as of the date hereof.

     B. The Bank and Mr. Rusch acknowledges that Mr. Rusch (1) has been an executive level employee
of First Federal and (2) has extensive experience and knowledge of the Business.

     C. The Bank desires to retain Mr. Rusch to perform personal services in the capacity of an
independent contractor and Mr. Rusch desires to be so retained pursuant to the terms and conditions
set forth herein. Mr. Rusch acknowledges that, during the term of this Agreement, he owes the Bank
a duty of loyalty. Mr. Rusch further acknowledges that entry into this Agreement is a condition of
Associated Banc-Corp. entering into the Selling Shareholders Noncompete Agreement.

     D. The Bank and Mr. Rusch desire to reduce their agreement concerning the terms and conditions
of such personal services to written form.

AGREEMENTS

     NOW, THEREFORE, in consideration of the premises set forth above, and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereby
agree as follows:

          1. Consulting Services. Mr. Rusch agrees to perform for the Bank, during the
Consulting Period (as hereinafter defined), the services described in Exhibit A attached hereto
(the “Services”). In connection therewith:

               (a) Mr. Rusch will perform the Services as the Bank’s Board of Directors or Chief Executive
Officer/President shall assign to him from time to time.

 

 

               (b) Mr. Rusch will devote such reasonable time, energy and effort as required to perform the
services set forth on Exhibit A in a satisfactory and timely manner. Mr. Rusch has no obligation
to perform services exclusively for the Bank, or to work any particular hours or days or any
particular number of hours per day performing services for the Bank. Such services may be
performed remotely as appropriate.

               (c) All services performed by Mr. Rusch pursuant to this Agreement will be of the highest
quality and performed to the Bank’s reasonable satisfaction. Mr. Rusch warrants that he has the
expertise, qualifications and capabilities to perform the services described on Schedule A. In the
performance of such services, Mr. Rusch shall have the ability to control and direct the details of
Mr. Rusch’s work and the Bank shall be interested only in the results obtained by such services,
including the quality of the services provided.

               (d) Mr. Rusch will perform his services pursuant to this Agreement to the best of his ability
and shall cooperate fully with the Bank in performing such services.

          2. Consulting Fee. In consideration of and contingent on the services to be performed
by Mr. Rusch during the Consulting Period pursuant to section 1 hereof and Mr. Rusch’s compliance
with the other provisions of this Agreement, the Bank will pay Mr. Rusch a monthly consulting fee
of $16,668, commencing on November 30, 2004 and on the last day of each month thereafter (the
“Consulting Fee”).

          3. Term.

               (a) The term of this Agreement pursuant to which Mr. Rusch will provide services to the Bank
hereunder (the “Consulting Period”) will be for a period of two years commencing on the date
hereof, unless earlier terminated as follows:

                    (i) The Consulting Period will terminate upon the written agreement of the parties;

                    (ii) The Consulting Period will terminate upon the death or permanent disability of Mr. Rusch.
The term “permanent disability” of Mr. Rusch shall mean mental or physical illness, disability or
incapacity which renders Mr. Rusch unable to effectively perform his duties hereunder for 90
consecutive days.

2

 

                    (iii) The Bank may terminate the Consulting Period for “cause” at any time upon written notice
to Mr. Rusch stating the facts constituting such “cause.” For purposes of this section 3, the term
“cause” means:

	 	•  	the diversion or attempted
diversion by Mr. Rusch of business from the Bank for Mr.
Rusch’s personal gain or benefit;
	 
	 	•  	the commission by Mr. Rusch
of an act of dishonesty or moral turpitude involving the
Bank;
	 
	 	•  	gross incompetence by Mr.
Rusch in the performance of his duties hereunder;
	 
	 	•  	gross negligence by Mr.
Rusch involving the Bank;
	 
	 	•  	habitual use by Mr. Rusch
of alcohol or narcotics;
	 
	 	•  	commission by Mr. Rusch of
a felony or serious misdemeanor offense or pleading guilty or
nolo contendere to same which results in
demonstrable material injury to the Bank;
	 
	 	•  	willful misconduct by Mr.
Rusch as determined in good faith by the Board of Directors
of the Bank which results in a demonstrably material injury
to the Bank;
	 
	 	•  	the willful and persistent
failure of Mr. Rusch to follow a specific directive of the
Board of Directors or an officer of the Bank;
	 
	 	•  	a material breach by Mr.
Rusch of any provision of this Agreement, including without
limitation any provision of section 4 hereof provided such
failure or noncompliance is not remedied by Mr. Rusch within
30 days following written notice to Mr. Rusch from the Bank
specifying in reasonable detail the nature of such failure or
noncompliance; or

3

 

	 	•  	a breach by Mr. Rusch of
any provision of the Selling Shareholders Noncompete
Agreement attached hereto as Exhibit B or the Separation
Agreement and General Release attached hereto as Exhibit C.

               (c) Upon the termination of the Consulting Period pursuant to section 3(a)(ii), the Bank shall
continue to pay the Consulting Fee to Mr. Rusch (or the estate of Mr. Rusch in the event of death)
through the term of this Agreement. The Bank may prepay such payments without penalty. The Bank
shall not be obligated to make any further payments to Mr. Rusch.

               (d) Upon the termination of the Consulting Period for any reason other than those described in
(c) above, the Bank will pay to Mr. Rusch the full amount of any unpaid compensation earned by Mr.
Rusch pursuant to section 2 of this Agreement through and including the termination date (and
prorated as appropriate), and the Bank shall not be obligated to make any further payments to Mr.
Rusch.

               (e) Mr. Rusch’s obligations set forth in sections 4 through 11 hereof shall survive the
termination of the Consulting Period.

          4. Unauthorized Disclosure: Inventions and Improvement.

               (a) Mr. Rusch will not disclose to any person or entity, other than employees of the Bank or
other persons to whom disclosure is reasonably necessary or appropriate in connection with the
performance by Mr. Rusch of his duties hereunder, any confidential or proprietary information of
the Bank obtained by Mr. Rusch during the Consulting Period.

               (b) Mr. Rusch will disclose to the Bank and upon the Bank’s request, assign to it, without
charge, all of Mr. Rusch’s right, title and interest, if any, in and to any and all ideas,
inventions, discoveries and improvements pertaining in any manner to the business which Mr. Rusch
may make or conceive, solely or jointly with others, during the Consulting Period (collectively,
the “New Developments”). Upon request by the Bank, whether during or subsequent to the Consulting
Period, Mr. Rusch will do any and all acts and execute and deliver such documents as may be deemed
by the Bank or its counsel to be necessary or advisable to vest in the Bank all of Mr. Rusch’s
right, title and interest in and to such New Developments and to apply and obtain domestic or
foreign patents, provided that the expenses incurred in connection with the foregoing shall be
borne by the Bank. If services in connection therewith are performed at the Bank’s request after
the Consulting Period, the Bank will pay

4

 

Mr. Rusch reasonable compensation for such services. The term “New Developments” shall not include
any ideas, inventions and discoveries which Mr. Rusch makes at his expense when not fulfilling his
duties to the Bank hereunder and which are not related in any way to the Business.

          5. Common Law or Torts or Trade Secrets. Nothing in this Agreement shall be construed
to limit or negate the common law of torts or trade secrets where such common law provides the Bank
with broader protection than the protection provided by this Agreement.

          6. Expense Reimbursement. The Bank will reimburse Mr. Rusch for his out-of-pocket
expenses reasonably incurred in connection with the performance of Mr. Rusch’s duties hereunder,
subject to approval by the Bank.

          7. Independent Contractor. Mr. Rusch shall at all times be an independent contractor,
and Mr. Rusch will be responsible for all employment and income taxes on his compensation
hereunder. Neither party will assert that an employment relationship exists or take any action
inconsistent with the independent contractor status of Mr. Rusch. Mr. Rusch shall have no
authority to bind the Bank to any agreement, except to the extent such authority is expressly
conferred upon him by the Bank in writing (exclusive of this Agreement) and Mr. Rusch will not take
any action inconsistent with the provisions of this Section.

          8. Severability. The invalidity or unenforceability of any provision of this
Agreement shall not affect or impair the validity or enforceability of any other provision and this
Agreement shall be construed as if such invalid or unenforceable provision were not contained
herein. Notwithstanding the preceding sentence, if any court of competent jurisdiction shall
determine that any geographic or time restraint provided in this Agreement is too broad as to the
area or time covered, such restraint may be reduced to whatever extent the court deems reasonable
and such restraint may be enforced as reduced.

          9. Notice. All notices under this Agreement shall be in writing and any notice shall
be considered to be given and received in all respects on the day it is personally delivered or
deposited in the United States mail, first class, postage prepaid, addressed as follows or to such
other address as may be designated by one party to the other by notice duly given:

	 	 	 	 	 
	 

	 	If to the Bank:
	 	Associated Banc-Corp
	

	 	 	 	Attn: Brian R. Bodager, Chief
	

	 	 	 	 Administrative Officer, General Counsel
	

	 	 	 	and Corporate Secretary
	

	 	 	 	1200 Hansen Road

5

 

	 	 	 	 	 
	

	 	 	 	Green Bay, WI 54304

	

	 	 	 	Telecopier: (920) 491-7010
	 
	 	 	 	 
	

	 	with a copy to:
	 	Reinhart Boerner Van Deuren s.c.
	

	 	 	 	Attn: Richard W. Graber, Esq.
	

	 	 	 	1000 North Water Street, Suite 2100
	

	 	 	 	Milwaukee, WI 53202
	

	 	 	 	Telecopier: (414) 298-8097
	 
	 	 	 	 
	

	 	If to Mr. Rusch:
	 	Mr. Jack Rusch
	

	 	 	 	W6447 Riverview Drive
	

	 	 	 	Onalaska, WI 54650

          10. Waiver. A waiver by a party of any breach by the other party of any provision of
this Agreement shall not be deemed to be a waiver by such first party of any subsequent breach.

          11. Assignment. This Agreement may not be assigned by the Bank without the written
consent of Mr. Rusch, except that if the Bank shall merge or consolidate with or into, or transfer
substantially all of the business or the assets thereof to another corporation or other form of
business or other entity, this Agreement may be assigned to such a successor and it shall be
binding upon and inure to its benefit. Mr. Rusch may not assign, pledge or encumber this Agreement
or any interest herein.

          12. Binding Effect. This Agreement shall be binding upon and inure to the benefit of
the parties hereto, the Bank’s successors and permitted assigns and Mr. Rusch’s heirs and legal
representatives.

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

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

[Signature Page to follow]

6

 

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

	 	 	 	 	 
	 	 	ASSOCIATED BANK
	 
	 	 	 	 
	

	 	BY
	 	/s/ Paul S. Beideman
	

	 	 	 	 
	

	 	 	Its	 
	 
	 	 	 	 
	 
	 	 	 	 
	 	 	/s/ Jack C. Rusch
	 	 	 
	 	 	JACK C. RUSCH

7

 

Schedule A

Description of Services to Be Rendered

Jack Rusch – President and Chief Executive Officer

		
	     § 	Assist in the management of all aspects of the merger to ensure maximum
profits commensurate with the best interest of customers, shareholders, employees and the
public

		
	     § 	Assist in the transition of leadership and to provide continued leadership in
achieving overall objectives to ensure maximum return on assets and return on equity

		
	     § 	Assist and provide leadership in the overall integration of the companies

		
	     § 	Assist in Shareholder relations

		
	     § 	Assist in Community relations

		
	     § 	Assist and provide leadership in customer retention and transition

		
	     § 	Assist in communication with industry trade groups

		
	     § 	Provide guidance and objectivity in areas of organizational restructuring,
change management, and matters affecting the organization

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