Document:

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Exhibit (10(i)

ASSOCIATED BANC-CORP INCENTIVE COMPENSATION PLAN

ARTICLE 1. PURPOSE.

     The purposes of the Plan are (i) to promote the success of the Company; (ii) to associate more
closely the interests of certain key employees with those of the Company’s financial, performance,
and service goals, (iii) 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; (iv) to assist the Company in retaining and attracting key employees with
requisite experience and ability; and (v) to provide solely Awards that are “qualified
performance-based compensation” under Section 162(m) of the Code.

ARTICLE 2. DEFINITIONS.

     Section 2.01 “Award” means the cash incentive compensation paid or payable pursuant to the
Plan.

     Section 2.02 “Award Formula” means one or more objective formulas or standards, as defined in
Section 162(m) of the Code, established by the Committee for purposes of determining the amount of
an Award with respect to a Performance Goal. An Award Formula based upon a percentage of a
Participant’s base pay shall use the Participant’s base pay as of the date the Performance Goal is
established. The Award Formula may include a modifier of the Award based upon the Company’s
performance in relation to its peer group of companies, provided that such modifier satisfies the
requirements of an objective formula as defined in Section 162(m) of the Code. Award Formulas may
vary from Performance Period to Performance Period and from Participant to Participant and may be
established on a stand-alone basis, in tandem or in the alternative.

     Section 2.03 “Award Schedule” means the Award Schedule established pursuant to Section 4.01.

     Section 2.04 “Beneficiary” mean the person(s) designated by the Participant, in writing on a
form provided by the Committee, to receive payments under the Plan in the event of his death while
a Participant or, in the absence of such designation, the Participant’s estate.

     Section 2.05 “Board” means the Board of Directors of the Company.

     Section 2.06 A “Change of Control” shall be deemed to have occurred on the date of the
following transactions:

          (i) An offer is accepted, in writing, for a change in ownership of 25% or more of the
outstanding voting securities of the Company;

          (ii) An offer is accepted, in writing, whereby the Company will be merged or
consolidated with another corporation, and as a result of such anticipated merger or
consolidation, less than 75% of the outstanding voting securities of the surviving or
resulting corporation will be 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 Securities Exchange Act of 1934, as amended (the
“Exchange Act”) of any party to such merger or consolidation;

          (iii) An offer is accepted, in writing, whereby 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 Code section 1563, of which the Company is a member; or

          (iv) An offer is accepted, in writing, whereby 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.

     Section 2.07 “Code” means the Internal Revenue Code of 1986, as amended.

     Section 2.08 “Committee” means the Administrative Committee of the Board or such other
committee or subcommittee of the Board designated by the Board to administer the Plan. The
Committees for purposes of this Plan shall be composed of not less than two directors, each of whom
is intended to be an “outside director” within the meaning of Code Section 162(m).

     Section 2.09 “Company” means Associated Banc-Corp and its successors.

     Section 2.10 “Covered Employee” means a covered employee within the meaning of Code Section
162(m)(3).

     Section 2.11 “Eligible Employee” means a key employee of the Company.

     Section 2.12 “Establishment Period” means, with respect to a Performance Period applicable to
any Performance Grant under the Plan, the period commencing on or before the first day of such
Performance Period and ending on the earlier to occur of (i) 90 days after the commencement of the
Performance Period and (ii) the date upon which twenty-five percent (25%) of the Performance Period
shall have elapsed.

     Section 2.13 “Participant” means an Eligible Employee selected from time to time by the
Committee to participate in the Plan.

     Section 2.14 “Performance Goal” means the target, goal or level of performance established by
the Committee with respect to a Performance Measure for a Performance Period. The outcome of a
Performance Goal shall be substantially uncertain when established by the Committee. Performance
Goals shall be adjusted automatically, without discretion by the Committee, in the event of a
dividend or stock split. Performance Goals may vary from Performance Period to Performance Period
and from Participant to Participant and may be established on a stand-alone basis, in tandem or in
the alternative.

     Section 2.15 “Performance Grant” means the grant to an Eligible Employee of an opportunity to
participate in a particular Performance Goal with respect to a particular Performance Period.

 

 

     Section 2.16 “Performance Measure” means one or more of the following selected by the
Committee to measure Company performance for a Performance Period: basic or diluted earnings per
share, revenue growth, return on equity and stock price. Performance Measures are determined in
accordance with generally accepted accounting principles as consistently applied by the Company.
Prior to the expiration of the Establishment Period, the Committee may provide for a mandatory
adjustment of a Performance Measure to omit the effects of extraordinary items (other than a stock
dividend or stock split), gain or loss on the disposal of a business segment, unusual or
infrequently occurring events and transactions and cumulative effects of changes in accounting
principles. Performance Measures may vary from Performance Period to Performance Period and from
Participant to Participant and may be established on a stand-alone basis, in tandem or in the
alternative.

     Section 2.17 “Performance Period” means one or more periods of time, as the Committee may
designate, over which the attainment of one or more Performance Goals will be measured for the
purpose of determining a Participant’s right to payment of an Award.

     Section 2.18 “Plan” means the Associated Banc-Corp Incentive Compensation Plan.
Section 2.10 “Plan Year” means the Company’s fiscal year.

     Section 2.20 “Retirement” means any date on which an employee retires under the terms and
conditions of the Company’s Profit Sharing & 401(k) Plan provided, however, that the employee has
attained age 55 as of such date.

     Section 2.21 “Total Disability” means a finding by the Committee that a Participant meets the
standard for Total Disability as provided in the Associated Banc-Corp Long-Term Disability Plan.

ARTICLE 3. PARTICIPATION.

     Participants shall be selected by the Committee and shall only include Eligible Employees.
The selection of a Participant for a Performance Grant shall not entitle such individual to be
selected as a Participant with respect to any other Performance Grant.

ARTICLE 4. AWARDS.

     Section 4.01 Award Schedules. For each Performance Period with respect to which an
Award may be earned by a Participant under the Plan, prior to the expiration of the Establishment
Period, the Committee shall establish the Performance Grants in writing for such Performance Period
by preparing an Award Schedule for each Participant. The Award Schedule shall set forth the
applicable Performance Period, Performance Measure(s), Performance Goal(s), Award Formula(s), and
such other information (including a peer group modifier, if applicable) as the Committee may
determine. Once established for a Performance Period, such items shall not be amended or otherwise
modified. Award Schedules may vary from Performance Period to Performance Period and from
Participant to Participant.

     Section 4.02 Performance Grant Agreement. Performance Grants shall be evidenced by a
separate written agreement between the Company and the Participant, in such form and contain such
terms and conditions (not inconsistent with the Plan) as the Committee may require. An

 

 

agreement executed pursuant to this section shall include a copy of the Award Schedule with
respect to the Participant and such other information as the Committee may determine is necessary
and appropriate.

     Section 4.03 Certification of Awards. A Participant shall be eligible to receive
payment of an Award only when the Performance Goal(s) are achieved and the Committee determines,
pursuant to the Award Formula, that all or some portion of such Participant’s Award has been earned
for the Performance Period. As soon as administratively feasible after the close of each
Performance Period, the Committee shall meet to review and certify in writing whether, and to what
extent, the Performance Goals for the Performance Period have been achieved and, if so, to
calculate and certify in writing the amount of the Award earned by each Participant for such
Performance Period based upon such Participant’s Award Formula. The Committee shall then determine
the actual amount of the Award to be paid to each Participant and, in so doing, may use discretion
to decrease, but not increase, the amount of the Award otherwise payable to the Participant based
upon such performance. The maximum Award payable to any Participant with respect to each Plan Year
(or portion thereof) contained within a Performance Period shall be $3,000,000.

     Section 4.04 Payment of Awards. Awards shall be paid in a lump sum cash payment as
soon as administratively feasible after the amount thereof has been determined and certified in
accordance with Section 4.03.

ARTICLE 5. ADMINISTRATION.

     Section 5.01 In General. The Committee shall have full and complete authority, in
its sole and absolute discretion, (i) to exercise all of the powers granted to it under the Plan;
(ii) to construe, interpret and implement the Plan and any related document; (iii) to prescribe,
amend, and rescind rules relating to the Plan; (iv) to make all determinations necessary or
advisable in administering the Plan; and (v) to correct any defect, supply any omission, and
reconcile any inconsistency in the Plan.

     Section 5.02 Determinations. The actions and determinations of the Committee or
others to whom authority is delegated under the Plan on all matters relating to the Plan and any
Performance Grants shall be final and conclusive. Such determinations need not be uniform and may
be made selectively among persons who receive, or are eligible to receive, Performance Grants under
the Plan, whether or not such persons are similarly situated.

     Section 5.03 Appointment of Experts. The Committee may appoint such accountants,
attorneys, and other experts as it deems necessary or desirable in connection with the
administration of the Plan.

     Section 5.04 Delegation. The Committee may delegate to others the authority to
execute and deliver such instruments and documents, to do all such acts and things, and to take all
such other steps deemed necessary, advisable or convenient for the effective administration of the
Plan in accordance with its terms and purposes, except that the Committee shall not delegate any
authority with respect to duties it is required to perform under Section 162(m) of the Code.

     Section 5.05 Books and Records. The Committee and others to whom the Committee has
delegated such duties shall keep a record of all their proceedings and actions and shall

 

 

maintain all such books of account, records, and other data as shall be necessary for the proper
administration of the Plan.

     Section 5.06 Payment of Expenses. The Company shall pay all reasonable expenses of
administering the Plan, including, but not limited to, the payment of professional and expert fees.

     Section 5.07 Code Section 162(m). Except for payments made pursuant to Section 6.02,
it is the intent of the Company that this Plan and Awards satisfy the applicable requirements of
“performance-based compensation” under Code Section 162(m) so that the Company’s tax deduction for
remuneration in respect of this Plan for services performed by Participants who are or may be
Covered Employees is not disallowed in whole or in part by the operation of such Code section. If
any provision of this Plan or if any Award would otherwise frustrate or conflict with such intent,
that provision to the extent possible shall be interpreted and deemed amended so as to avoid such
conflict, and, to the extent of any remaining irreconcilable conflict with such intent, that
provision shall be deemed void as applicable to such Covered Employees. With respect to any Award
under the Plan that does not qualify as performance-based compensation for purposes of Code section
162(m), the Committee is authorized to defer payment of such Awards, generally until the
Participant terminates employment.

ARTICLE 6. TERMINATION OF EMPLOYMENT AND

CHANGE OF CONTROL.

     Section 6.01 Termination of Employment. In the event of the termination of
employment of a Participant due to death, Total Disability, or Retirement, the Participant shall
receive a prorated portion of the Award, based upon the length of the Participant’s employment
during the Performance Period. The Committee will determine the amount of the prorated award by
multiplying the amount of the award that would have been earned, determined at the end of the
Performance Period, by a fraction. The numerator of the fraction equals the number of whole months
such Participant was employed during the Performance Period. The denominator of the fraction
equals the total number of months of the Performance Period. This Section 6.01 shall apply only if
the Company meets the Performance Goal (or the minimum of the performance range, if any) specified
in the Performance Grant. The Participant will receive no Award if the Company does not meet the
Performance Goal specified in the Performance Grant. Except as otherwise provided in the Plan, no
Award with respect to a Performance Period will be payable to any Participant who is not an
employee of the Company on the last day of such Performance Period.

     Section 6.02 Change of Control. Awards shall become immediately payable upon a
Change of Control. If the Change of Control occurs during a Performance Period, the Committee
shall meet to determine if the Performance Goal is partially satisfied or is likely to be fully
satisfied based upon the Company’s performance to that date. If the Committee determines that the
Performance Goal is partially satisfied or is likely to be fully satisfied, the Committee shall
certify this determination in writing, and a prorated portion of the Award shall become immediately
payable. The prorated portion of the Award shall be determined pursuant to the fraction described
in Section 6.01, except that the numerator shall include the whole number of months that have
elapsed during a Performance Period and prior to the Change of Control. Notwithstanding any other
provision of the Plan, the Committee shall not have discretion to reduce the amount of Awards if a
Change of Control occurs during a Performance Period and/or before the Performance Goal is
certified in accordance with Section 4.03.

 

 

ARTICLE 7. MISCELLANEOUS.

     Section 7.01 Nonassignability. Except as otherwise provided in the Plan, no
Performance Grant or Award shall be assignable or transferable (including pursuant to a pledge or
security interest) other than by will or by laws of descent and distribution.

     Section 7.02 Withholding Taxes. The Company shall be entitled, if necessary or
desirable, to withhold from any Participant, from any amounts due and payable by the Company to
such Participant (or secure payment from such Participant in lieu of withholding), the amount of
any withholding or other tax due from the Company with respect to any Award under the Plan.

     Section 7.03 Amendment or Termination of the Plan. The Plan may be amended or
terminated by the Board in any respect except that (i) no amendment may be made after the date on
which an Eligible Employee is selected as a Participant for a Performance Period that would
adversely affect the rights of such Participant with respect to such Performance Period without the
consent of the affected Participant, (ii) no amendment to increase the maximum Award payable under
the Plan shall be effective without the approval of the shareholders of the Company or if, in the
opinion of counsel to the Company, such approval is necessary to satisfy the intent set forth in
Section 5.07, and (iii) the Plan may not be amended or terminated for two years after the date a
Change of Control occurs.

     Section 7.04 Other Payments or Awards. Nothing contained in the Plan will be deemed
in any way to limit or restrict the Company from making any award or payment to any person under
any other plan, arrangement or understanding, whether now existing or hereafter in effect.

     Section 7.05 Payments to Other Persons. If payments are legally required to be made
to any person other than the person to whom any amount is payable under the Plan, such payments
will be made accordingly. Any such payment will be a complete discharge of the liability of the
Company under the Plan.

     Section 7.06 Unfunded Plan. Nothing in this Plan will require the Company to
purchase assets or place assets in a trust or other entity to which contributions are made or
otherwise to segregate any assets for the purpose of satisfying any obligations under the Plan.
Participants will have no rights under the Plan other than as unsecured general creditors of the
Company.

     Section 7.07 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.

     Section 7.08 Limits of Liability and Indemnity. Neither the Board nor the Committee,
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, 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.

     Section 7.09 Right to Awards. No employee of the Company or its affiliated units or
other person shall have any claim or right to be a Participant in this Plan or to be granted a
Performance Grant or 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 Performance Grant or 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.

     Section 7.10 Section Headings. Section headings used herein are for convenience and
reference only, and in the event of any conflict, the text of the Plan, rather than the section
headings, will control.

     Section 7.11 Severability. Whenever possible, each provision of this Plan shall be
interpreted in such manner as to be effective and valid under applicable law; provided, however,
that if any provision of this Plan shall be held to be prohibited or invalid under such applicable
law, such provision shall be ineffective only to the extent of such prohibition or invalidity,
without invalidating the remainder of such provision or the remaining provisions of this Plan.

     Section 7.12 Applicable Law. This Plan shall be governed, administered, construed
and enforced according to the laws of the United States and the State of Wisconsin to the extent
not preempted by the laws of the United States.

     Section 7.13 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 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.

     Section 7.14 Effective Date/Term. The Plan shall become effective upon its adoption
by the Committee and the Company, subject to shareholder approval of the Plan as described below.

Adopted by the Administrative Committee of the Board of Directors: March 4, 2003.

Adopted by the Board of Directors: March 4, 2003.

Approved by Shareholders at the April 23, 2003 Annual Meeting.exv10wj

 

EXHIBIT (10)(j)

SEPARATION AGREEMENT AND GENERAL RELEASE

     THIS SEPARATION AGREEMENT AND GENERAL RELEASE (“Release”) is entered into by and among FIRST
FEDERAL CAPITAL CORP, its successor and assigns (“Capital Corp”), FIRST FEDERAL CAPITAL BANK (f/k/a
First Federal Capital Bank), its successor and assigns (“Capital Bank”) and JACK C. RUSCH (“Mr.
Rusch”) as of this 29th day of October, 2004.

RECITALS

     The parties acknowledge the following:

          A. Capital Corp and Mr. Rusch are parties to an Employment Agreement dated July 1, 2001
attached hereto as Schedule 1 and Capital Bank and Mr. Rusch are parties to an Employment Agreement
dated July 1, 2001 attached hereto as Schedule 2 (collectively, the “Employment Agreements”).

          B. Capital Corp and Associated Banc-Corp (“Associated”) have entered into an Agreement and
Plan of Merger (the “Merger Agreement”) as of April 27, 2004, which Merger Agreement contemplates
the merger of the Capital Corp into Associated (the “Merger”).

          C. Associated desires that Capital Corp, Capital Bank and Mr. Rusch affect a final resolution
and settlement of all matters and issues relating directly or indirectly to the Employment
Agreements and Mr. Rusch’s employment with Capital Corp and Capital Bank and his separation from
that employment prior to the effective time of said Merger.

AGREEMENTS

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

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

     2. Termination of Employment Agreements. As of the Effective Time, the Employment
Agreements and all of the respective rights and obligations of Capital Corp, Capital Bank, and Mr.
Rusch thereunder shall cease and terminate.

 

 

Mr. Rusch acknowledges and agrees that he is not entitled to any further compensation or payment
pursuant to the terms of the Employment Agreements.

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

     4. Consideration. Conditioned upon Mr. Rusch’s signing of this Release and his return
of the Release to Capital Corp. and/or Capital Bank, expiration of the seven-day revocation period
without revocation, and Mr. Rusch’s properly executing and returning the attached acknowledgment
form to Capital Corp. and/or Capital Bank (Schedule 3) indicating his decision not to revoke this
Release, Mr. Rusch shall receive the following lump sum cash payments and benefits:

	 	(A)  	a lump sum cash payment of $449,074.81, less ordinary tax withholding and all
required deductions;
	 
	 	(B)  	a lump sum cash payment of $339,000 for “Rule of 90” benefit, less ordinary
tax withholding and all required deductions;
	 
	 	(C)  	a cash payment for retirement and other fringe benefits of $1,042,000,
reduced by the fair market value of any split-dollar life insurance transferred to the
Executive and less ordinary tax withholding and all required deductions;
	 
	 	(D)  	a lump sum cash payment calculated based on the Exchange Ratio as defined in
Section 1.10 of the Merger Agreement, representing the value of the cancellation of
Executive’s stock options in Capital Corp which were granted on April 20, 2004 (which
options become fully vested upon consummation of the Merger), less ordinary tax
withholding and all required deductions;
	 
	 	(E)  	a lump sum cash payment representing the value of or the cancellation of
Executive’s restricted stock in Capital Corp which was awarded on April 20, 2004, less
ordinary tax withholding and all required deductions; and

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	 	(F)  	Executive, Executive’s Spouse and Executive’s Dependents shall be eligible to
participate in Associated’s group health and dental plans for Executive’s lifetime,
subject to the terms, provisions and limitations of such plans, to the extent such
terms, provisions and limitations applicable to current employees of Associated.
Associated shall pay the entire premium associated with such coverage for Executive
and Executive’s Spouse and Dependents under the plans for the Executive’s and Spouse’s
lifetime.

All cash payment shall be made within 10 days of the date hereof. These payments shall not be
deemed “compensation” for purposes of any of either Capital Corp or Capital Bank’s qualified
retirement plans or other benefit programs, and payment of this severance pay does not entitle
Executive to any retirement plan contributions by Capital Corp and Capital Bank for Executive’s
benefit or account.

     5. Confidentiality and Non-Disclosure. Mr. Rusch agrees that this Release, and its
terms and provisions, are strictly confidential and shall not be divulged or disclosed in any way
to any person other than his spouse, legal counsel, or tax advisor, except as required by law.
Should Mr. Rusch choose to divulge the terms and conditions of this Release to his spouse, legal
counsel, or tax advisor, he shall insure that they will be similarly bound to keep the same
confidential. A breach of this paragraph by Mr. Rusch’s spouse, legal counsel, or tax advisor
shall be considered a breach of this paragraph by Mr. Rusch.

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

     7. Release. Excepted as specifically provided in paragraphs 16 and 18 of the Release,
for valuable consideration from Capital Corp. and Capital Bank as stated above, Mr. Rusch, for
himself and his heirs, personal representatives, successors and assigns, hereby releases all claims
of whatever nature that he may have against Capital Corp. or Capital Bank, their affiliates,
subsidiaries, predecessors, successors and assigns and their present, former or later insurers,
agents, representatives, officers, administrators, directors, principals and employees
(collectively “Releasees”), which arise out of or are in any manner based upon or related to the
employment relationship between Mr. Rusch, Capital Corp. or Capital Bank, and his separation from
Capital Corp. and Capital Bank,

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and from all other claims or liabilities of any nature whatsoever which have arisen from any
occurrence, transaction, omission or communication which transpired or occurred at any time before
or on the date of this Release; provided, however, that this Release will not prevent any party
from asserting a claim against the other party in the event the other party breaches this Release.

           Excepted as specifically provided in paragraphs 16 and 18 of the Release, without limitation,
Mr. Rusch specifically releases, waives and forever discharges the above-listed entities and
persons from and against all liabilities, claims, actions, demands, damages and costs of every
nature, whether known or unknown, asserted or unasserted, which arise under the Wisconsin Fair
Employment Act; Wisconsin wage and hour laws; Title VII of the Civil Rights Act of 1964, as
amended; the Age Discrimination in Employment Act (29 U.S.C. § 621, et seq.); the Americans With
Disabilities Act; the Fair Labor Standards Act; the Equal Pay Act; state or federal parental,
family and medical leave acts; or arising under any other local, state or federal statute,
ordinance, regulation or order, or which involve a claim or action for wrongful discharge, breach
of contract (express or implied) and/or any other tort or common law cause of action. This waiver
and release does not affect those rights or claims that arise after the execution of this Release.

     8. No Pending Matters. Mr. Rusch warrants and represents that he has not filed any
pending complaint, charge, claim or grievance concerning his compensation, separation from
employment or terms and conditions of employment against Capital Corp. or Capital Bank with any
local, state or federal agency, court or commission, and that if any agency, commission or court
assumes jurisdiction of any such complaint or charge on behalf of Mr. Rusch relating to the claims
released in Section 5, he will request that agency, commission, or court to dismiss such
proceeding.

     9. Binding Agreement. This Release shall be binding upon Mr. Rusch and upon his
heirs, administrators, representatives, executors, successors and assigns and shall inure to the
benefit of the Releasees and to their heirs, administrators, representatives, executors, successors
and assigns.

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

     11. Complete and Exclusive Agreement. The parties understand and agree that this
Release is final and binding and constitutes the complete and exclusive statement of the terms and
conditions of separation, that no

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representations or commitments were made by the parties to induce this Release other than as
expressly set forth herein. This Release may not be modified or supplemented except by a
subsequent written agreement signed by the party against whom enforcement is sought.

     12. Consideration Period. Mr. Rusch represents that he has had the opportunity and
time to consult with legal counsel concerning the provisions of this Release and that he has been
given up to twenty-one (21) days to consider this Release.

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

     14. Governing Law. This Release shall be governed by, and construed in accordance
with, the laws of the State of Wisconsin, regardless of the laws that might otherwise govern under
applicable principles of conflicts of law.

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

     16. Reimbursement Payment. If the payments or value of all or any part of the Total
Payments becomes subject to any tax imposed pursuant to Section 4999 of the Internal Revenue Code
(the “Excise Tax”), Executive shall be entitled to an additional amount (the “Reimbursement
Payment”) such that the net amount retained by Executive after deduction of (i) any Excise Tax;
(ii) any federal, state, or local income tax, interest charges or penalties arising in respect to
imposition of such Excise Tax; (iii) any federal, state or local income tax or Excise Tax imposed
upon the payment provided for in this Section 16, necessary to place Mr. Rusch in the same
after-tax financial position he would have been in if he had not incurred any liability for the
Excise Tax.

For this purpose, “Total Payments” means together any payments or the value of any benefits
provided to Mr. Rusch by Capital Bank, Capital Corp and their successors and assigns under this
Release or any other agreement, including but not limited to any amount or value attributable to
the vesting of stock options and restricted stock and to which said Excise Tax applies by reason of
Section 280G of the Internal Revenue Code.

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For purposes of determining the amount of Reimbursement Payment, Executive shall be deemed to pay
federal income taxes at the highest marginal rate of federal income taxation in the calendar year
in which the Reimbursement Payment is to be made and state and local income taxes at the highest
marginal rate of taxation in the state and locality of Executive’s domicile for income tax purposes
on the date the Reimbursement Payment is made, net of the maximum reduction of federal income taxes
that could be obtained from deduction of such state and local taxes.

The Reimbursement Payment shall be made on the earlier of (i) 30 days following the determination
of the Reimbursement Payment, or (ii) the date the Executive is required to pay or deposit any sum
with respect to the Excise Tax. In the event the Reimbursement Payment exceeds the amount actually
required (“Overpayment”) or that an additional amount should have been paid (“Underpayment”), the
amount of the Overpayment or Underpayment shall be treated as a loan from one party to the other,
as the case may be, and shall be promptly repaid by the other at such time as finally determined,
together with interest at the applicable federal rate provided for in Section 7872(f)(2) of the
Internal Revenue Code.

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

	 	(A)  	In reporting and paying Executive’s federal, state and local income tax on
the payments or value of any benefits provided under this Agreement, Executive shall
be obligated to report to any applicable taxing authority in accordance with the
directions of Associated, which directions shall be consistent with applicable law and
these Agreements.
	 
	 	(B)  	The Executive shall not agree or consent to any tax assessment by any taxing
authority that is inconsistent with a reporting position directed under Section 17(A)
above, without the written approval of Associated.
	 
	 	(C)  	The Executive shall allow Associated, at its option (and at Associated’s
expense), to control and defend against any tax audit that purports to subject any
payment described in this Agreement to tax under Section 4999 of the Internal Revenue
Code.

6

 

     If the Executive fails to abide by any of the agreements contained in Section 17(A), (B) or
(C) above, or if the Executive has misrepresented or fails to abide by his agreement in Section 3
above, and as a result, any payment becomes subject to tax under Section 4999 of the Internal
Revenue Code, the Executive shall have no right to receive any Reimbursement Payment under Section
16 above.

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

	 	a.  	Benefit Plans. Any claims for benefits: (i) pursuant to any retirement
benefit plan maintained by Capital Corp or Capital Bank and that is intended to be a
tax-qualified plan under Section 401 of the Internal Revenue Code (including the
lump-sum payment features); (ii) pursuant to the terms of any medical plan of the
Capital Bank with respect to claims; (iii) pursuant to the supplemental executive
retirement plan maintained by the Capital Bank; and (iv) for vacation which has
accrued as of the Effective Time.
	 
	 	b.  	Options. Including the Options described in Section 4(D), Executive
currently holds options with respect to a total of 180,580 shares. Such options shall
be cashed-out unless converted into options with respect to Associated Common Stock in
accordance with Section 1.10 of the Merger Agreement. The following schedule
identifies the grant date of each option, the exercise price, the number of shares,
the current expiration date to which the option is subject, and the type of option
(ISO or NSO).

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	Number of	 	 	 	 	 	 	 	 
	 	Date of Grant	 	 	Option Price	 	 	Shares	 	 	Expiration Date	 	 	Type of Option	 	 
	 	April 20, 2004
	 	 	$20.11	 	 	14,916	 	 	April 20,2014	 	 	ISO	 
	 	January 27, 1998
	 	 	$14.75	 	 	10,872	 	 	January 27, 2008	 	 	NSO	 
	 	August 1, 2000
	 	 	$11.00	 	 	41,820	 	 	August 1, 2010	 	 	NSO	 
	 	April 20, 2004
	 	 	$20.11	 	 	52,584	 	 	April 20, 2014	 	 	NSO	 
	 	April 24, 2001
	 	 	$14.06	 	 	60,388	 	 	April 24, 2011	 	 	NSO	 
	 

     All options shall continue to be subject to the terms of Capital Corp Stock
Option Plan under which they were respectively issued, as amended, except as
otherwise agreed to and provided in the

7

 

	 	   	Merger Agreement and the Conversion Agreement contemplated thereby.
	 
	 	c.  	2002 Restricted Stock. Executive currently holds 7,500 shares of restricted
stock granted on April 8, 2003, on account of work performed during the 2002 calendar
year or earlier (all of which shares shall become fully vested upon consummation of
the Merger). The following schedule identifies the grant date of each share, the
number of shares, and the vesting status (or date) of each share.

	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	Number of	 	 	Vesting Status (or Future	 
	 	Date of Grant	 	 	Shares	 	 	Vesting Date)	 
	 	April 8, 2003
	 	 	7,500	 	 	January 1, 2005	 
	 

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

	 	 	 	 	 
	 	FIRST FEDERAL CAPITAL CORP

 	 
	Date: 10/29/04 	BY	 /s/ Bradford R. Price
 	 
	 	 	 Its Exec Vice Pres & Sec 	 
	 	 	 
	 
	 	FIRST FEDERAL CAPITAL BANK

 	 
	Date: 10/29/04 	BY	 /s/ Bradford R. Price
 	 
	 	 	 Its Exec Vice Pres & Sec 	 
	 	 	 
	 

CAUTION: THIS IS A RELEASE. CAPITAL CORP. AND CAPITAL BANK HEREBY ADVISES MR. RUSCH TO CONSULT

WITH AN ATTORNEY AND READ IT BEFORE SIGNING. THIS RELEASE MAY BE REVOKED IN WRITING BY MR. RUSCH
WITHIN SEVEN (7) DAYS OF HIS EXECUTION OF THE DOCUMENT.

	 	 	 	 	 
	 	 	 
	Dated: 10/29/04 	/s/ Jack C. Rusch
 	 
	 	Jack C. Rusch 	 
	 	 	 
	 

8

 

SCHEDULE 1

[Employment Agreement between Capital Corp and Executive]

 

 

SCHEDULE 2

[Employment Agreement between Capital Bank and Executive]

 

 

SCHEDULE 3

SEVEN DAY RIGHT TO REVOCATION

ACKNOWLEDGMENT FORM

     I, Jack C. Rusch, hereby acknowledge that First Federal Capital Corp. and First Federal
Capital Bank each has tendered a Separation Agreement and General Release offer which I voluntarily
agreed to accept on _______, 2004, a date at least seven days prior to today’s date.

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

     Signed this                     day of                     , 2004 at                     ,                     .

                                                            

Jack C. Rusch

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