Document:

exv4w1

Exhibit 4.1

CERTIFICATE OF DESIGNATIONS

OF

8.00% NON-CUMULATIVE PERPETUAL

CONVERTIBLE PREFERRED STOCK, SERIES A

OF

WINTRUST FINANCIAL CORPORATION

Pursuant to Section 6.10 of the

Illinois Business Corporation Act

     The undersigned, David A. Dykstra, Senior Executive Vice President, Chief Operating Officer
and Secretary of Wintrust Financial Corporation, an Illinois corporation (the “Corporation”),
hereby certifies that, in accordance with Section 6.10 of the Illinois Business Corporation Act, as
amended (the “IBCA”), the Board of Directors of the Corporation (the “Board of Directors”) hereby
makes this Certificate of Designations and hereby states and certifies that pursuant to the
authority conferred upon the Board of Directors by Article Four of the Amended and Restated
Articles of Incorporation of the Corporation, as amended (as such may be amended, modified or
restated from time to time, the “Articles of Incorporation”) and the duly adopted resolutions of
the Board of Directors, the Board of Directors duly adopted the following resolutions:

     RESOLVED, that pursuant to Article Four of the Articles of Incorporation (which authorizes
20,000,000 shares of preferred stock, no par value (the “Preferred Stock”)), the Board of Directors
hereby fixes the powers, designations, preferences and relative, participating, optional and other
special rights, and the qualifications, limitations and restrictions, of a series of Preferred
Stock.

     RESOLVED, that each share of such series of Preferred Stock shall rank equally in all respects
and shall be subject to the following provisions:

     1. Designation and Number.

     (a) The series of preferred stock shall be designated as the “8.00% Non-Cumulative
Perpetual Convertible Preferred Stock, Series A” (the “Series A Preferred Stock”), no par value,
and the number of shares so designated shall be 50,000; provided, that, if the Corporation elects
to issue additional shares of Series A Preferred Stock after the date of this Certificate of
Designations, the Corporation may increase the number of shares so designated by the number of such
additional shares of Series A Preferred Stock with the prior approval by the holders of at least a
majority of the shares of the Series A Preferred Stock then outstanding and by filing the
appropriate document with the Secretary of State of the State of Illinois (the “Illinois
Secretary”); provided, however, that any additional shares of Series A Preferred Stock must be
deemed to form a single series with the Series A Preferred Stock issued pursuant to this
Certificate of Designations for U.S. federal income tax purposes. Each share of Series A Preferred
Stock shall be identical in all respects to every other share of Series A Preferred Stock, except
for the issue price, date of issuance, and, in some cases, the initial dividend payment date. The
number of authorized shares of Series A Preferred Stock may be reduced (but not below the number of
shares of Series A Preferred Stock then issued and outstanding) by further resolution duly adopted
by the Board of Directors and by filing the appropriate document with the Illinois Secretary; no
such reduction shall affect the due authorization of any issued and outstanding shares of Series A
Preferred Stock. The Series A Preferred Stock is issuable in whole shares only.

 

 

     (b) The Series A Preferred Stock shall have an issue price of, and a liquidation
preference (the “Liquidation Preference”) of, $1,000 per share and shall be perpetual, subject to
conversion in accordance with the terms set forth herein.

     2. Definitions.

     As used herein with respect to Series A Preferred Stock, the following terms shall have the
following meaning:

     “Applicable Conversion Price” at any given time means the price equal to $1,000 divided by the
Applicable Conversion Rate in effect at such time.

     “Applicable Conversion Rate” means the Conversion Rate in effect at any given time.

     “Business Day” means any day that is not Saturday or Sunday and that, in New York City, is not
a day on which banking institutions generally are authorized or obligated by law or executive order
to be closed.

     “Capital Stock” of any Person means any and all shares, interests, rights to purchase,
warrants, options, participations or other equivalents of or interests in (however designated)
equity of such Person, including any preferred stock, excluding any debt securities convertible
into such equity.

     “Closing Price” of the Common Stock on any date of determination means:

     (a) the closing sale price of the Common Stock (or, if no closing sale price
is reported, the last reported sale price of the Common Stock) on that date on the Nasdaq
Stock Market;

     (b) if the Common Stock is not traded on the Nasdaq Stock Market on that
date, the closing sale price of the Common Stock (or, if no closing sale price is reported,
the last reported sale price of the Common Stock) on that date as reported in composite
transactions for the principal U.S. national or regional securities exchange or association
on which the Common Stock is traded;

     (c) if the Common Stock is not traded on a U.S. national or regional
securities exchange or association on that date, the last quoted bid price per share on that
date in the over-the-counter market as reported by Pink Sheets LLC or similar organization;
or

     (d) if the Common Stock is not so quoted by Pink Sheets LLC or a similar
organization on that date, as determined by a nationally recognized independent investment
banking firm retained by the Corporation for this purpose.

     The “Closing Price” for any other share of Capital Stock shall be determined on a comparable
basis.

     For purposes of this Certificate of Designations, all references herein to the “Closing Price”
and “last reported sale price” of the Common Stock on the Nasdaq Stock Market shall be such closing
sale price and last reported sale price as reflected on the website of the Nasdaq Stock Market
(http://www.nasdaq.com) and as reported by Bloomberg Professional Service; provided that in the
event that there is a discrepancy between the closing sale price or last reported sale price as
reflected on the website of the Nasdaq Stock Market and as reported by Bloomberg Professional
Service, the closing sale price and last reported sale price on the website of the Nasdaq Stock
Market shall govern.

     “Common Stock” means the common stock, no par value, of the Corporation.

     “Conversion Agent” shall mean Illinois Stock Transfer Company acting in its capacity as
conversion agent for the Series A Preferred Stock, and its successors and assigns or any other
conversion agent appointed by the Corporation.

     “Conversion Date” has the meaning set forth in Section 12(e)(ii).

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     “Conversion Rate” means, with respect to each share of Series A Preferred Stock, 36.5230
shares of Common Stock, subject to adjustment as set forth in Section 13.

     “Current Market Price” of the Common Stock means the average Closing Price of the Common Stock
during the 10 consecutive Trading Day period ending on the Trading Day immediately preceding the
Ex-Dividend Date with respect to the issuance, dividend or distribution requiring such
computation. Notwithstanding the foregoing, whenever successive adjustments to the Conversion Rate
are called for pursuant to Section 13, such adjustments shall be made to the Current Market Price
as may be necessary or appropriate to effectuate the intent of Section 13 and to avoid unjust or
inequitable results as determined in good faith by the Board of Directors.

     “Distributed Assets” has the meaning set forth in Section 13(a)(iv).

     “Dividend Payment Date” has the meaning set forth in Section 3(a).

     “Dividend Period” means each period from, and including, a Dividend Payment Date (or with
respect to the first Dividend Period, the date of original issuance of the Series A Preferred
Stock) to, but excluding, the following Dividend Payment Date.

     “Dividend Threshold Amount” has the meaning set forth in Section 13(a)(v).

     “Exchange Act” means the Securities Exchange Act of 1934, as amended.

     “Exchange Property” has the meaning set forth in Section 10(a).

     “Ex-Dividend Date,” when used with respect to any issuance, dividend or distribution, means
the first date on which the shares of Common Stock trade on the applicable exchange or in the
applicable market, regular way, without the right to receive the relevant issuance, dividend or
distribution.

     “Expiration Date” has the meaning set forth in Section 13(a)(vi).

     “Expiration Time” has the meaning set forth in Section 13(a)(vi).

     “Fair Market Value” means the amount which a willing buyer would pay a willing seller in an
arm’s-length transaction as determined by the Board of Directors; provided, however, that any
determination of Fair Market Value required in connection with a Fundamental Transaction shall (1)
be made as of the Business Day immediately preceding the closing of such transaction and (2) if
made with respect to a publicly traded security, such determination shall be based on the average
of the midpoint of the intraday high and intraday low trading prices for such security on each of
the ten (10) consecutive trading days immediately preceding the date as of which such Fair Market
Value is determined.

     “Fiscal Quarter” means, with respect to the Corporation, the fiscal quarter publicly disclosed
by the Corporation.

     “Fundamental Transaction” means the occurrence of any of the following:

     (a) a “person” or “group” within the meaning of Section 13(d) of the Exchange
Act files a Schedule TO or any schedule, form or report under the Exchange Act disclosing
that such person or group has become the direct or indirect ultimate “beneficial owner,” as
defined in Rule 13d-3 under the Exchange Act, of common equity of the Corporation
representing more than 50% of the voting power of the Common Stock; or

     (b) consummation of any consolidation or merger of the Corporation or similar
transaction or any sale, lease or other transfer in one transaction or a series of
transactions of all or substantially all of the consolidated assets of the Corporation and
its subsidiaries, taken as a whole, to any Person other than one of the Corporation’s
subsidiaries, in each case pursuant to which the Common Stock will be converted

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into cash, securities or other property, other than pursuant to a transaction in which
the Persons that “beneficially owned” (as defined in Rule 13d-3 under the Exchange Act)
directly or indirectly, Voting Shares of the Corporation immediately prior to such
transaction beneficially own, directly or indirectly, Voting Shares representing a majority
of the total voting power of all outstanding classes of Voting Shares of the continuing or
surviving Person immediately after the transaction.

     “Holder” means the Person in whose name the shares of Series A Preferred Stock are registered,
which may be treated by the Corporation, Transfer Agent, Registrar, Paying Agent and Conversion
Agent as the absolute owner of the shares of Series A Preferred Stock for the purpose of making
payment of dividends and settling conversions and for all other purposes.

     “Illinois Secretary” has the meaning set forth in Section 1(a).

     “Junior or Parity Stock” has the meaning set forth in Section 3(e).

     “Liquidation Preference” has the meaning set forth in Section 1(b).

     “Mandatory Conversion Date” has the meaning set forth in Section 9(c).

     “New Issuance Price” means the greater of (i) the purchase (or reference, implied, conversion,
exchange or comparable) price per share of Common Stock for the applicable Reset Issuance or (ii)
14.83.

     “Notice of Mandatory Conversion” has the meaning set forth in Section 9(c).

     “Officer” means the Chief Executive Officer, Chief Operating Officer, the Chief Financial
Officer, any Executive Vice President, any Senior Vice President, the Treasurer, the Secretary or
any Assistant Secretary of the Corporation.

     “Parity Preferred Stock” has the meaning set forth in Section 7(b).

     “Parity Securities” means any securities of the Corporation ranking equally with the Series A
Preferred Stock as to dividends.

     “Preferred Certificate” has the meaning set forth in Section 20.

     “Paying Agent” shall mean Illinois Stock Transfer Company acting in its capacity as paying
agent for the payment of dividends for the Series A Preferred Stock, and its successors and assigns
or any other paying agent appointed by the Corporation.

     “Person” means a legal person, including any individual, corporation, estate, partnership,
joint venture, association, joint-stock company, limited liability company or trust.

     “Record Date” has the meaning set forth in Section 3(b).

     “Registrar” shall mean Illinois Stock Transfer Company acting in its capacity as registrar for
the Series A Preferred Stock, and its successors and assigns or any other registrar appointed by
the Corporation.

     “Reorganization Event” has the meaning set forth in Section 10(a).

     “Reset Issuance” means any issuance or sale by the Corporation of, or agreement to issue or
sell, in one or more transactions, at a purchase (or reference, implied, conversion, exchange or
comparable) price per share less than the Subject Price, more than an aggregate of $10,000,000 of
Common Stock (or securities that are convertible into or exchangeable or exercisable for Common
Stock), excluding any Common Stock or securities that are convertible into or exchangeable or
exercisable for Common Stock that are offered, granted, issued or issuable (i) under the
Corporation’s equity benefit or compensation plans or under other customary compensatory plans or
arrangements, (ii) in connection with acquisitions that do not constitute a “Fundamental
Transaction” or (iii) upon

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the exercise, vesting or conversion of the Warrants of the Corporation, but not to amendments
or adjustments to any such Warrants having the effect of reducing the exercise or conversion price
thereof or increasing the number of shares issuable upon the exercise or conversion of such
Warrants.

     “Retained Stock” has the meaning set forth in Section 15.

     “Spin-Off” has the meaning set forth in Section 13(a)(iv).

     “Spin-Off Valuation Period” has the meaning set forth in Section 13(a)(iv).

     “Subject Price” means an amount equal to the Applicable Conversion Price less $1.00.

     “Trading Day” means a day on which the shares of Common Stock:

     (a) are not suspended from trading on any U.S. national or regional
securities exchange or association or over-the-counter market at the close of business; and

     (b) have traded at least once on the U.S. national or regional securities
exchange or association or over-the-counter market that is the primary market for the
trading of the Common Stock.

     “Transfer Agent” shall mean Illinois Stock Transfer Company acting in its capacity as transfer
agent for the Series A Preferred Stock, and its successors and assigns or any other transfer agent
appointed by the Corporation.

     “Voting Parity Securities” has the meaning set forth in Section 5(b).

     “Voting Shares” of a Person means shares of all classes of Capital Stock of such Person then
outstanding and normally entitled (without regard to the occurrence of any contingency) to vote in
the election of the board of directors of such Person.

     “Warrants” means the warrant certificates issued pursuant to that certain Agreement and Plan
of Merger by and among the Corporation, Wayne Hummer Asset Management Company and Lake Forest
Capital Management Co., Robert L. Meyers, James P. Richter and S.A. Lincoln dated as of February 4,
2003.

     3. Dividends.

     (a) Holders of shares of Series A Preferred Stock shall be entitled to receive only
if, when and as declared by the Board of Directors, out of funds legally available for the payment
of dividends, cash dividends on the Liquidation Preference of $1,000 per share, at an annual rate
equal to 8.00%. Subject to the foregoing, dividends shall be payable in arrears on January 15,
April 15, July 15 and October 15 of each year (each, a “Dividend Payment Date”), commencing on
October 15, 2008. If a Dividend Payment Date falls on a day that is not a Business Day, the
dividend will be paid on the next Business Day as if it were paid on the Dividend Payment Date, and
no interest or other amount will accrue on the dividend so payable for the period from and after
that Dividend Payment Date to the date the dividend is paid.

     (b) Each dividend shall be payable to Holders of record as they appear on the
Corporation’s stock register at 5:00 p.m., New York City time, on the first day of the month in
which the relevant Dividend Payment Date occurs (the “Record Date”). The Record Date shall apply
regardless of whether any particular Record Date is a Business Day.

     (c) Dividends are payable on the Series A Preferred Stock on the basis of a 360-day
year consisting of twelve 30-day months. There shall be no sinking fund with respect to dividends.

     (d) Dividends on the Series A Preferred Stock shall not be cumulative. To the
extent that the Board of Directors does not declare and pay dividends on the Series A Preferred
Stock for a Dividend Period prior to the related Dividend Payment Date, in full or otherwise, such
unpaid dividend shall not accrue and shall cease to be payable. The Corporation shall have no
obligation to pay dividends for such Dividend Period after the Dividend

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Payment Date for such Dividend Period or to pay interest with respect to such dividends,
whether or not the Corporation declares dividends on the Series A Preferred Stock for any
subsequent Dividend Period.

     (e) If full quarterly dividends on all outstanding shares of the Series A Preferred Stock for
any Dividend Period have not been authorized, declared, and paid or set aside for payment, the
Corporation shall not declare or pay dividends with respect to, or redeem, purchase or acquire any
stock of the Corporation ranking equally with or junior to the Series A Preferred Stock as to
dividends (any such stock, “Junior or Parity Stock”) during the next succeeding Dividend Period,
other than:

          (i) redemptions, purchases or other acquisitions of Junior or Parity Stock in connection
with any benefit plan or other similar arrangement with or for the benefit of any one or more
employees, officers, directors or consultants or in connection with a dividend reinvestment or
shareholder stock purchase plan;

          (ii) any declaration of a dividend in connection with any stockholders’ rights plan, or the
issuance of rights, stock or other property under any stockholders’ rights plan, including with
respect to any successor stockholders’ rights plan, or the redemption or repurchase of rights
pursuant thereto; and

          (iii) conversions into or exchanges for other Junior or Parity Stock and cash solely in lieu
of fractional shares of the Junior or Parity Stock.

If dividends for any Dividend Payment Date are not paid in full on the shares of the Series A
Preferred Stock and there are issued and outstanding shares of Parity Securities with the same
Dividend Payment Date, then all dividends declared on shares of the Series A Preferred Stock and
such Parity Securities on such date shall be declared pro rata so that the respective amounts of
such dividends shall bear the same ratio to each other as full quarterly dividends per share on the
shares of the Series A Preferred Stock and all such Parity Securities otherwise payable on such
Dividend Payment Date (subject to their having been authorized by the Board of Directors and
declared by the Corporation out of legally available funds and including, in the case of any such
Parity Securities that bear cumulative dividends, all accrued but unpaid dividends) bear to each
other.

     (f) Payments of cash for dividends shall be delivered to the Holder.

     4. Liquidation Rights.

     (a) In the event of any liquidation, dissolution or winding up of the Corporation,
whether voluntary or involuntary, the Holders shall be entitled to receive out of the assets of the
Corporation available for distribution to its stockholders, before any distribution of assets is
made to holders of shares of Common Stock or any such other stock of the Corporation ranking junior
to the Series A Preferred Stock as to rights upon liquidation, dissolution or winding up of the
Corporation, a liquidation distribution in an amount equal to the greater of (i) the Liquidation
Preference of $1,000 per share, plus an amount equal to any declared and unpaid dividends on the
shares of Series A Preferred Stock to the date of such liquidation distribution and (ii) the amount
Holders would have received as a holder of Common Stock had all of the Series A Preferred Stock
been converted into Common Stock immediately prior to such event. After payment of the full amount
of such liquidation distribution, the Holders shall not be entitled to any further participation in
any distribution of assets by the Corporation.

     (b) In the event that the assets of the Corporation, or proceeds thereof,
distributable among the Holders of Series A Preferred Stock and holders of Parity Securities shall
be insufficient to pay in full the liquidation distribution payable on the Series A Preferred Stock
and the corresponding amounts payable on Parity Securities, then such assets, or the proceeds
thereof, shall be distributable among the Holders of Series A Preferred Stock and holders of Parity
Securities ratably in proportion to the full respective amounts which would be payable on such
shares if all amounts payable thereon were paid in full.

     (c) Neither a consolidation or merger of the Corporation with or into any other
entity, nor a consolidation or merger of any other entity with or into the Corporation, nor a sale,
lease or other transfer of all or substantially all of the Corporation’s assets shall be considered
a liquidation, dissolution or winding up of the Corporation.

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     5. Voting Rights.

     (a) The Series A Preferred Stock shall have no voting rights except as provided
herein or as otherwise from time to time required by law.

     (b) Whenever dividends payable on the Series A Preferred Stock have not been paid
for four or more Dividend Periods, whether or not consecutive, the Holders shall have the right,
with holders of any other series of Parity Securities that have similar voting rights and on which
dividends likewise have not been paid (the “Voting Parity Securities”), voting together as a class,
at a special meeting called at the request of Holders of at least 20% of the shares of Series A
Preferred Stock outstanding or of holders of at least 20% of the shares of any Voting Parity
Securities (unless such request for a special meeting is received less than 90 calendar days before
the date fixed for the next annual or special meeting of the Corporation’s stockholders, in which
event such election shall be held only at such next annual or special meeting of the Corporation’s
stockholders) or at the Corporation’s next annual or special meeting of the Corporation’s
stockholders, to elect two additional directors to the Board of Directors; provided that the
election of any such director does not cause the Corporation to violate the applicable corporate
governance requirements or the exchange or trading market where the Common Stock is then listed or
quoted, as the case may be. At any meeting held for the purpose of electing such a director, the
presence in person or by proxy of the holders of shares representing at least a majority of the
voting power of the Series A Preferred Stock and any Voting Parity Securities, voting together as a
class, shall be required to constitute a quorum of such shares. The affirmative vote of the
Holders of Series A Preferred Stock and holders of any Voting Parity Securities, voting together as
a class, representing a majority of the voting power of such shares present at such meeting, in
person or by proxy, shall be sufficient to elect any such director.

     (c) Upon the election of any such directors, the number of directors that comprise
the Board of Directors shall be increased by such number of directors. Such directors shall be
elected to terms that are the shorter of the next annual meeting of the Corporation and such time
as full dividends have been paid on the Series A Preferred Stock for at least four consecutive
Dividend Periods. In the event such term expires prior to the time full dividends have been paid
on the Series A Preferred Stock for at least four consecutive Dividend Periods, any such Directors
shall be elected to successive terms of similar duration until full dividends have been paid on the
Series A Preferred Stock for at least four consecutive Dividend Periods. Holders of Series A
Preferred Stock, together with holders of any Voting Parity Securities, voting together as a class,
may remove any director they elected. Any vacancy created by the removal of any such director
shall be filled only by the vote of the Holders of the Series A Preferred Stock and holders of any
Voting Parity Securities, voting together as a class. If the office of either such director
becomes vacant for any reason other than removal, the remaining director may choose a successor who
will hold office for the unexpired term of the vacant office.

     (d) So long as any shares of Series A Preferred Stock remain outstanding, the
Corporation shall not, without the vote, in person or by proxy, or written consent of the holders
of at least 66 2/3% of the shares of the Series A Preferred Stock, voting as
a separate class:

     (i) amend, alter or repeal the Corporation’s Articles of Incorporation
(including this Certificate of Designations) or the Corporation’s bylaws in a way that
adversely affects the powers, preferences or special rights of the Series A Preferred Stock,
including, without limitation, any amendment increasing the number of shares designated as
Series A Preferred Stock or authorizing or creating any class of Voting Parity Securities
(which, for the avoidance of doubt means the creation of any class of stock have voting
rights along with the voting rights of the Series A Preferred Stock, including the right to
vote on the election of the two additional directors as contemplated by Section 5(b)
hereof);

     (ii) issue any of the Corporation’s Capital Stock ranking, as to dividends or
upon liquidation, dissolution or winding up of the Corporation, senior to the Series A
Preferred Stock, or reclassify any of the Corporation’s authorized Capital Stock into any
such shares of such Capital Stock, or issue any obligation or security convertible into or
evidencing the right to purchase any such shares; or

     (iii) consummate a binding share exchange, a reclassification involving the
Series A Preferred Stock or a merger or consolidation of the Corporation with another
entity; provided, however, that the holders of Series A Preferred Stock shall have no right
to vote under this provision or otherwise

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under Illinois law if in each case (A) both (1) the Series A Preferred Stock remains
outstanding or, in the case of any such merger or consolidation with respect to which the
Corporation is not the surviving or resulting entity, is converted into or exchanged for
preferred securities of the surviving or resulting entity (or its ultimate parent) that is
an entity organized and existing under the laws of the United States of America, any state
thereof or the District of Columbia and (2) the Series A Preferred Stock remaining
outstanding or the new preferred securities, as the case may be, have such powers,
preferences and special rights, taken as a whole, as are not materially less favorable to
the holders thereof than the powers, preferences and special rights of the Series A
Preferred Stock, or (B) either (1) the Corporation has exercised its mandatory conversion
rights pursuant to Section 9 hereof in connection with such consummation or (2) the Holders
are entitled to receive the minimum consideration required by Section 11 hereof in
connection with such consummation.

     Any (1) increase in the amount of authorized Common Stock or preferred stock, (2) increase in
the number of shares of any series of preferred stock (excluding the Series A Preferred Stock or
any Voting Parity Securities); or (3) authorization, creation and issuance of other classes or
series of Capital Stock (or securities convertible into such Capital Stock), in each case ranking
equally with or junior to the Series A Preferred Stock shall be deemed not to adversely affect such
powers, preferences or special rights.

     (e) The number of votes that each share of Series A Preferred Stock and any Parity
Preferred Stock participating in the votes described above shall be calculated on an as converted
basis or, if not all of such stock is convertible or exchangeable for Common Stock, shall be in
proportion to the liquidation preference of such share.

     6. Redemption.

     The shares of Series A Preferred Stock shall not be redeemable at any time either at the
option of the Corporation or a Holder.

     7. Ranking.

     The Series A Preferred Stock shall rank, with respect to dividend rights and rights upon the
liquidation, dissolution or winding-up of the Corporation:

     (a) senior to the Common Stock and any other class or series of the
Corporation’s Capital Stock that the Corporation may issue in the future the terms of which
do not expressly provide that it ranks on a parity with, or senior to, to the Series A
Preferred Stock;

     (b) equally with any class or series of the Corporation’s Capital Stock that
the Corporation may issue in the future the terms of which expressly provide that such class
or series shall rank on a parity with the Series A Preferred Stock (“Parity Preferred
Stock”); and

     (c) junior to any class or series of the Corporation’s Capital Stock that the
Corporation may issue in the future the terms of which expressly provide that such class or
series shall rank senior to the Series A Preferred Stock; and

     (d) junior to all of the Corporation’s existing and future indebtedness and
other liabilities.

     In addition, the Series A Preferred Stock, with respect to dividends rights and rights upon
the liquidation, dissolution or winding-up of the Corporation will be structurally subordinated to
existing and future indebtedness of the Corporation’s subsidiaries.

     For the avoidance of doubt, as provided in Section 5(d), the Corporation may, from time to
time, without notice to or consent from the Holders, create and issue additional shares of Series A
Preferred Stock, subject to the compliance with Section 1(a), or preferred stock ranking equally
with or junior to the Series A Preferred Stock as to dividend rights and rights upon the
liquidation, dissolution or winding-up of the Corporation.

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     8. Holder’s Right to Convert At Any Time.

     Each Holder shall have the right, at such Holder’s option, at any time, to convert all or any
portion of such Holder’s shares of Series A Preferred Stock into shares of Common Stock at the
Applicable Conversion Rate, plus cash in lieu of fractional shares, subject to antidilution
adjustments provided herein, compliance with the conversion procedures set forth in Section 12 and
subject to the limitations on beneficial ownership set forth in Section 15.

     9. Mandatory Conversion at the Corporation’s Option.

     (a) The Corporation shall have the right, at its option:

     (i) On and after August 26, 2010 to cause all but not less than all of the shares of
Series A Preferred Stock to be converted into shares of Common Stock upon the closing of any
Fundamental Transaction in which the shares of Common Stock into which the Series A
Preferred Stock is so converted or exchanged represents the right to receive cash or
securities with a Fair Market Value equal to or greater than $35.59 per share, as equitably
adjusted for any stock splits, stock combinations, stock dividends, or similar transactions;
provided, that the Corporation shall not be entitled to exercise such conversion right
unless the Corporation shall have declared and paid in full dividends on the Series A
Preferred Stock for the four most recently completed Dividend Periods.

     (ii) On and after August 26, 2013 to cause, at any time and from time to time, some or
all of the shares of Series A Preferred Stock to be converted into shares of Common Stock at
the Applicable Conversion Rate, plus cash in lieu of fractional shares, if (x) for 20
Trading Days during any period of 30 consecutive Trading Days, including the last Trading
Day of such period, ending on the Trading Day preceding the date the Corporation gives
notice of mandatory conversion pursuant to Section 9(c), the Closing Price per share of the
Common Stock exceeds $35.59, as equitably adjusted for any stock splits, stock combinations,
stock dividends, or similar transactions and (y) dividends on the Series A Preferred Stock
for the four most recently completed Dividend Periods have been declared and paid in full.

     (b) If the Corporation elects to cause less than all of the shares of Series A
Preferred Stock to be converted pursuant to Section 9(a)(ii), the Conversion Agent shall select the
shares of Series A Preferred Stock to be converted by lot, or on a pro rata basis or by another
method the Conversion Agent considers fair and appropriate (so long as such method is not
prohibited by the rules of any stock exchange on which the Series A Preferred Stock is then traded,
if any). If the Conversion Agent selects a portion of a Holder’s Series A Preferred Stock for
partial mandatory conversion and such Holder converts a portion of its shares of Series A Preferred
Stock, the converted portion will be deemed to be from the portion selected for mandatory
conversion under this Section 9.

     (c) If the Corporation elects to exercise its mandatory conversion right pursuant to
this Section 9, the Corporation shall give notice of mandatory conversion by (i) providing a notice
of such conversion by first class mail to each Holder of the shares of Series A Preferred Stock to
be converted (a “Notice of Mandatory Conversion”) or (ii) issuing a press release for publication
and making this information available on its website. The Conversion Date shall be a date selected
by the Corporation (the “Mandatory Conversion Date”), not less than 10 calendar days, and not more
than 20 calendar days, after the date on which the Corporation provides the Notice of Mandatory
Conversion or issues such press release. In addition to any information required by applicable law
or regulation, the Notice of Mandatory Conversion or press release shall state, as appropriate:

     (i) the Mandatory Conversion Date;

     (ii) the number of shares of Common Stock to be issued upon conversion of
each share of Series A Preferred Stock;

     (iii) the aggregate number of shares of Series A Preferred Stock to be
converted; and

     (iv) a reasonably detailed explanation of the circumstances giving rise to such
mandatory conversion, including any related determination of Fair Market Value.

9

 

     The Corporation shall honor all Notices of Conversion received by the Corporation by 5:00 p.m.
(New York City time) on the Trading Day immediately preceding the Mandatory Conversion Date.

     10. Reorganization Events.

     (a) In the event of:

     (i) any consolidation or merger of the Corporation with or into another
Person, in each case pursuant to which the Common Stock will be converted into cash,
securities, or other property of the Corporation or another Person;

     (ii) any sale, transfer, lease, or conveyance to another Person of all or
substantially all of the property and assets of the Corporation, in each case pursuant to
which the Common Stock will be converted into cash, securities, or other property;

     (iii) any reclassification of the Common Stock into securities, including
securities other than the Common Stock; or

     (iv) any statutory exchange of the Corporation’s securities with another
Person (other than in connection with a merger or acquisition);

(any such event specified in clauses (i)-(iv) of this Section 10(a), a “Reorganization
Event”), each share of Series A Preferred Stock outstanding immediately prior to such
Reorganization Event shall, without the consent of Holders (but subject to the rights of the
Holders pursuant to Section 11 hereof and the Company pursuant to Section 9 hereof) become
convertible into the kind of securities, cash, and other property receivable in such Reorganization
Event by a holder of the shares of Common Stock that was not the counterparty to the Reorganization
Event or an affiliate of such other party (such securities, cash, and other property, the “Exchange
Property”).

     (b) In the event that holders of the shares of the Common Stock have the opportunity
to elect the form of consideration to be received in such transaction, the consideration that the
Holders are entitled to receive shall be deemed to be the types and amounts of consideration
received by the majority of the holders of the shares of the Common Stock that affirmatively make
an election. The amount of Exchange Property receivable upon conversion of any Series A Preferred
Stock in accordance with Section 8, Section 9 or Section 11 shall be determined based upon the
Conversion Rate in effect on the applicable Conversion Date or Mandatory Conversion Date.

     (c) The above provisions of this Section 10 shall similarly apply to successive
Reorganization Events and the provisions of Section 13 shall apply to any shares of Capital Stock
of the Corporation (or any successor) received by the holders of the Common Stock in any such
Reorganization Event.

     (d) The Corporation (or any successor) shall, within 20 calendar days of the
occurrence of any Reorganization Event, provide written notice to the Holders of such occurrence of
such event and of the kind and amount of the cash, securities or other property that constitutes
the Exchange Property. Failure to deliver such notice shall not affect the operation of this
Section 10.

     (e) Notwithstanding anything to the contrary in this Certificate of Designations, the terms of
any agreement pursuant to which a Reorganization Event is effected shall, if the Holders of the
Series A Preferred Stock will receive securities of the successor or surviving entity, include
terms requiring any such successor or surviving entity to comply with the provisions of this
Certificate of Designations.

     11. Fundamental Transaction Protection.

     In the event a Fundamental Transaction occurs prior to August 26, 2010, each share of Series A
Preferred Stock shall, without any action of the Holders and effective as of the date of
consummation of such Fundamental Transaction (such date being deemed a Mandatory Conversion Date),
become convertible at the option of the Holder, into the right to receive the consideration into
which shares of Common Stock were exchanged or converted

10

 

as a result of such Fundamental Transaction; provided, however, that in no event shall the
Fair Market Value of such consideration to the Holders for each share of Common Stock into which
the Series A Preferred Stock is convertible be less than (i) $38.33, as equitably adjusted for any
stock splits, stock combinations, stock dividends, or similar transactions, if such Fundamental
Transaction is consummated on or prior to August 26, 2009 or (ii) $36.96, as equitably adjusted for
any stock splits, stock combinations, stock dividends, or similar transactions, if such Fundamental
Transaction is consummated after August 26, 2009 and prior to August 26, 2010.

     12. Conversion Procedures.

     (a) Effective immediately prior to the close of business on the Mandatory Conversion Date or
any applicable Conversion Date, dividends shall no longer be authorized and declared on any
converted shares of Series A Preferred Stock and such shares of Series A Preferred Stock shall
cease to be outstanding, in each case, subject to the right of Holders to receive any authorized,
declared and unpaid dividends on such shares and any other payments to which they are otherwise
entitled pursuant to Section 8, Section 9, Section 11, or this Section 12, as applicable.

     (b) No allowance or adjustment, except pursuant to Section 13, shall be made in respect of
dividends payable to holders of the Common Stock of record as of any date prior to the close of
business on the Mandatory Conversion Date or any applicable Conversion Date. Prior to the close of
business on the Mandatory Conversion Date or any applicable Conversion Date, shares of Common Stock
issuable upon conversion of, or other securities issuable upon conversion of, any shares of
Series A Preferred Stock shall not be deemed outstanding for any purpose, and Holders shall have no
rights with respect to the Common Stock or other securities issuable upon conversion (including
voting rights, rights to respond to tender offers for the Common Stock or other securities issuable
upon conversion and rights to receive any dividends or other distributions on the Common Stock or
other securities issuable upon conversion) by virtue of holding shares of Series A Preferred Stock.

     (c) Shares of Series A Preferred Stock duly converted in accordance with this Certificate of
Designation, or otherwise reacquired by the Corporation, will resume the status of authorized and
unissued preferred stock, undesignated as to series and available for future issuance. The
Corporation may from time-to-time take such appropriate action as may be necessary to reduce the
authorized number of shares of Series A Preferred Stock, but not below the number of shares of
Series A Preferred Stock then outstanding.

     (d) The Person or Persons entitled to receive the Common Stock and/or cash, securities or
other property issuable upon conversion of Series A Preferred Stock shall be treated for all
purposes as the record holder(s) of such shares of Common Stock and/or securities as of the close
of business on the Mandatory Conversion Date or any applicable Conversion Date. In the event that a
Holder shall not by written notice designate the name in which shares of Common Stock and/or cash,
securities or other property (including payments of cash in lieu of fractional shares) to be issued
or paid upon conversion of shares of Series A Preferred Stock should be registered or paid or the
manner in which such shares should be delivered, the Corporation shall be entitled to register and
deliver such shares, and make such payment, in the name of the Holder and in the manner shown on
the records of the Corporation.

     (e) Conversion into shares of Common Stock will occur on the Mandatory Conversion Date or any
applicable Conversion Date as follows:

          (i) On the Mandatory Conversion Date, shares of Common Stock shall be issued to Holders or
their designee upon presentation and surrender of the certificate evidencing the Series A Preferred
Stock to the Conversion Agent, if shares of the Series A Preferred Stock are held in certificated
form, and, if required, the furnishing of appropriate endorsements and transfer documents and the
payment of all transfer and similar taxes.

          (ii) On the date of any conversion at the option of a Holder pursuant to Section 8, if a
Holder’s interest is in certificated form, a Holder must do each of the following in order to
convert:

               (1) complete and manually sign the conversion notice provided by the Conversion Agent, or a
facsimile of the conversion notice, and deliver this irrevocable notice to the Conversion Agent;

11

 

               (2) surrender the shares of Series A Preferred Stock to the Conversion Agent;

               (3) if required, furnish appropriate endorsements and transfer documents; and

               (4) if required, pay all transfer or similar taxes.

          If a Holder’s interest is a beneficial interest in a global certificate representing Series A
Preferred Stock, in order to convert, such Holder must comply with Sections 12(3)(ii)(3) through
(5). The date on which a Holder complies with the procedures in this clause (ii) is the “Conversion
Date.”

          (iii) The Conversion Agent shall, on a Holder’s behalf, convert the Series A Preferred Stock
into shares of Common Stock, in accordance with the terms of the notice delivered by such Holder
described in Section 12(e)(ii).

     (iv) No fractional shares of Common Stock will be issued as a result of any
conversion of shares of Series A Preferred Stock. In lieu of any fractional share of
Common Stock otherwise issuable in respect of any conversion of Series A Preferred Stock,
the Corporation shall pay an amount in cash (computed to the nearest cent) equal to the same
fraction of the Closing Price of the Common Stock determined as of the Trading Day
immediately preceding the effective date of conversion. If more than one share of the
Series A Preferred Stock is surrendered for conversion at one time by or for the same
Holder, the number of full shares of Common Stock issuable upon conversion thereof shall be
computed on the basis of the aggregate number of shares of the Series A Preferred Stock so
surrendered.

     (v) If a Conversion Date on which a Holder elects to convert its Series A
Preferred Stock pursuant to Section 8 or a Mandatory Conversion Date (including as a result
of a Fundamental Transaction pursuant to Section 11) is prior to the Record Date relating to
any declared dividend for the Dividend Period, the Holder(s) will not have the right to
receive any declared dividends for that Dividend Period. If a Conversion Date on which a
Holder elects to convert its Series A Preferred Stock pursuant to Section 8 or a Mandatory
Conversion Date is after the Record Date for any declared dividend and prior to the Dividend
Payment Date, the Holder(s) shall receive that dividend on the relevant Dividend Payment
Date if such Holder(s) were the Holder(s) on the Record Date for that dividend.

     (f) Notwithstanding anything to the contrary contained herein, including, but not
limited to, the provisions of Section 11 hereof, in no event shall the shares of Common Stock
issuable upon conversion of the Series A Preferred Stock exceed 19.9% of the Corporation’s Common
Stock outstanding as of the close of business on August 26, 2008 (the “Conversion Rate Cap”).

          13. Anti-Dilution Adjustments.

     (a) The Conversion Rate shall be adjusted from time to time by the Corporation as
follows:

          (i) Stock Dividends and Distributions. In case the Corporation shall, at
any time or from time to time while any of the Series A Preferred Stock is outstanding, pay a
dividend in shares of Common Stock or make a distribution in shares of Common Stock to all or
substantially all holders of its outstanding shares of Common Stock, then the Conversion Rate shall
be adjusted based on the following formula:

where,

	 	 	 	 	 
	CR0

	 	=
	 	the Conversion Rate in effect at 5:00 p.m., New
York City time, on the Trading Day immediately
preceding the Ex-Dividend Date for such dividend
or distribution;
	 
	 	 	 	 
	CR1

	 	=
	 	the Conversion Rate in effect on the Ex-Dividend
Date for such dividend or distribution;

12

 

	 	 	 	 	 
	OS0

	 	=
	 	the number of shares of Common Stock outstanding
at 5:00 p.m., New York City time, on the Trading
Day immediately preceding the Ex-Dividend Date for
such dividend or distribution; and
	 
	 	 	 	 
	OS1

	 	=
	 	the number of shares of Common Stock that would be
outstanding immediately after, and solely as a
result of, such dividend or distribution.

     Any adjustment made pursuant to this Section 13(a)(i) shall become effective immediately prior
to 9:00 a.m., New York City time, on the Ex-Dividend Date for such dividend or distribution. If
any dividend or distribution that is the subject of this Section 13(a)(i) is declared but not so
paid or made, the Conversion Rate shall be readjusted, effective as of the date the Board of
Directors publicly announces its decision not to pay or make such dividend or distribution, to the
Conversion Rate that would then be in effect if such dividend or distribution had not been
declared. For purposes of this Section 13(a)(i), the number of shares of Common Stock outstanding
at 5:00 p.m., New York City time, on the Trading Day immediately preceding the Ex-Dividend Date for
such dividend or distribution shall not include shares of Common Stock held in treasury, if any.
The Corporation will not pay any dividend or make any distribution on shares of Common Stock held
in treasury, if any.

          (ii) Subdivisions, Splits and the Combination of the Common Stock. If the Corporation
subdivides, splits or combines the shares of Common Stock, the Conversion Rate shall be adjusted
based on the following formula:

where,

	 	 	 	 	 
	CR0

	 	=
	 	the Conversion Rate in effect at 5:00 p.m., New York City time, on the Trading Day
immediately preceding the effective date of such subdivision or combination;
	 
	 	 	 	 
	CR1

	 	=
	 	the Conversion Rate in effect on the effective date of such subdivision or combination;
	 
	 	 	 	 
	OS0

	 	=
	 	the number of shares of Common Stock outstanding at 5:00 p.m., New York City time, on
the Trading Day immediately preceding the effective date of such subdivision or
combination; and
	 
	 	 	 	 
	OS1

	 	=
	 	the number of shares of Common Stock that would be outstanding immediately after, and
solely as a result of, such subdivision or combination.

     Any adjustment made pursuant to this Section 13(a)(ii) shall become effective immediately
prior to 9:00 a.m., New York City time, on the effective date of such subdivision or combination.

          (iii) Issuance of Stock Purchase Rights. In case the Corporation shall issue
rights (other than rights or warrants issued pursuant to a stockholders’ rights plan, dividend
reinvestment plan or share purchase plan or other similar plans) or warrants to all or
substantially all holders of its outstanding shares of Common Stock entitling them to purchase, for
a period expiring within 45 calendar days of the date of issuance, shares of Common Stock at a
price per share less than the Current Market Price of the Common Stock, the Conversion Rate shall
be adjusted based on the following formula:

where,

13

 

	 	 	 	 	 
	CR0

	 	=
	 	the Conversion Rate in effect at 5:00 p.m., New York City time, on the
Trading Day immediately preceding the Ex-Dividend Date for such
issuance;
	 
	 	 	 	 
	CR1

	 	=
	 	the Conversion Rate in effect on the Ex-Dividend Date for such issuance;
	 
	 	 	 	 
	OS0

	 	=
	 	the number of shares of the Common Stock that are outstanding at
5:00 p.m., New York City time, on the Trading Day immediately preceding
the Ex-Dividend Date for such issuance;
	 
	 	 	 	 
	X   
	 	=
	 	the total number of shares of the Common Stock issuable
pursuant to such rights or warrants; and
	 
	 	 	 	 
	Y   

	 	=
	 	the number of shares of the Common Stock equal to the
quotient of (x) the aggregate price payable to exercise such
rights or warrants, divided by (y) the Current Market Price
of the Common Stock.

     Any adjustment made pursuant to this Section 13(a)(iii) shall become effective immediately
prior to 9:00 a.m., New York City time, on the Ex-Dividend Date for such issuance. In the event
that such rights or warrants described in this Section 13(a)(iii) are not so issued, the Conversion
Rate shall be readjusted, effective as of the date the Board of Directors publicly announces its
decision not to issue such rights or warrants, to the Conversion Rate that would then be in effect
if such issuance had not been declared. To the extent that such rights or warrants are not
exercised prior to their expiration or shares of the Common Stock are otherwise not delivered
pursuant to such rights or warrants upon the exercise of such rights or warrants, the Conversion
Rate shall be readjusted to the Conversion Rate that would then be in effect had the adjustments
made upon the issuance of such rights or warrants been made on the basis of delivery of only the
number of shares of Common Stock actually delivered. In determining the aggregate price payable to
exercise such rights or warrants, there shall be taken into account any consideration received by
the Corporation for such rights or warrants and the Fair Market Value of such consideration. For
purposes of this Section 13(a)(iii), the number of shares of Common Stock outstanding at 5:00 p.m.,
New York City time, on the Trading Day immediately preceding the Ex-Dividend Date for such issuance
shall not include shares of Common Stock held in treasury, if any. The Corporation will not issue
any such rights or warrants in respect of shares of Common Stock held in treasury, if any.

          (iv) Debt or Asset Distributions. In case the Corporation shall, by dividend
or otherwise, distribute to all or substantially all holders of its outstanding shares of Common
Stock shares of any class of Capital Stock of the Corporation, evidences of its indebtedness or
assets, including securities, but excluding (1) any dividends or distributions referred to in
Section 13(a)(i), (2) any rights or warrants referred to in Section 13(a)(iii), (3) any dividends
or distributions referred to in Section 13(a)(v), (4) any dividends or distributions in connection
with a transaction to which Section 10 applies, or (5) any Spin-Off to which the provisions set
forth below in this Section 13(a)(iv) applies, any of the foregoing hereinafter in this Section
13(a)(iv) called the “Distributed Assets”), then, in each such case, the Conversion Rate shall be
adjusted based on the following formula:

where,

	 	 	 	 	 
	CR0

	 	=
	 	the Conversion Rate in effect at 5:00 p.m., New
York City time, on the Trading Day immediately
preceding the Ex-Dividend Date for such
distribution;
	 
	 	 	 	 
	CR1

	 	=
	 	the Conversion Rate in effect on the Ex-Dividend
Date for such distribution;
	 
	 	 	 	 
	SP0

	 	=
	 	the Current Market Price of the Common Stock; and

14

 

	 	 	 	 	 
	FMV

	 	=
	 	the Fair Market Value, on the Ex-Dividend Date for
such distribution, of the Distributed Assets so
distributed, expressed as an amount per share of
Common Stock.

     If the transaction that gives rise to an adjustment pursuant to this Section 13(a)(iv) is,
however, one pursuant to which the payment of a dividend or other distribution on the Common Stock
of shares of Capital Stock of, or similar equity interests in, a Subsidiary or other business unit
of the Corporation (a “Spin-Off”) that are, or, when issued, will be, traded or listed on the
Nasdaq Stock Market, the New York Stock Exchange or any other U.S. national securities exchange or
association, then the Conversion Rate shall instead be adjusted based on the following formula:

where,

	 	 	 	 	 
	CR0    

	 	=
	 	the Conversion Rate in effect at 5:00 p.m., New York City time, on the
Trading Day immediately preceding the Ex-Dividend Date for such
distribution;
	 
	 	 	 	 
	CR1    

	 	=
	 	the Conversion Rate in effect on the Ex-Dividend Date for such distribution;
	 
	 	 	 	 
	FMV0

	 	=
	 	the average of the Closing Prices of such Capital Stock or similar equity
interests distributed to holders of Common Stock applicable to one share of
Common Stock during the 10 consecutive Trading Day period commencing on,
and including, the effective date of the Spin-Off (the “Spin-Off Valuation
Period”); and
	 
	 	 	 	 
	MP0   

	 	=
	 	the average of the Closing Prices of the Common Stock during the Spin-Off
Valuation Period.

     Any adjustment made pursuant to this Section 13(a)(iv) shall become effective immediately
prior to 9:00 a.m., New York City time, on the Ex-Dividend Date for such distribution. If any
dividend or distribution of the type described in this Section 13(a)(iv) is not so paid or made,
the Conversion Rate shall be readjusted, effective as of the date the Board of Directors publicly
announces its decision not to pay such dividend or distribution, to the Conversion Rate that would
then be in effect if such dividend or distribution had not been declared. If an adjustment to the
Conversion Rate is required under this Section 13(a)(iv), delivery of any additional shares of
Common Stock upon conversion of the Series A Preferred Stock shall be delayed to the extent
necessary in order to complete the calculations provided for in this Section 13(a)(iv).

          (v) Cash Distributions. In case the Corporation shall pay a dividend or
otherwise make a distribution to all or substantially all holders of its outstanding shares of
Common Stock consisting exclusively of cash, excluding (1) any dividend or distribution in
connection with the liquidation, dissolution or winding up of the Corporation, whether voluntary or
involuntary, or upon a transaction to which Section 10 applies, (2) any consideration payable in
connection with a tender or exchange offer made by the Corporation or any of its subsidiaries, (3)
any cash that is distributed as part of a “spin-off” referred to in Section 13(a)(iv) and
(4) regular cash dividends in any Fiscal Quarter, calculated in a manner consistent with past
practice (the “Dividend Threshold Amount”), in which event the Conversion Rate shall be adjusted
based on the following formula:

where,

	 	 	 	 	 
	CR0

	 	=
	 	the Conversion Rate in effect at 5:00 p.m., New
York City time, on the Trading Day immediately
preceding the Ex-Dividend Date for such dividend
or distribution;

15

 

	 	 	 	 	 
	CR1

	 	=
	 	the Conversion Rate in effect on the Ex-Dividend
Date for such dividend or distribution;
	 
	 	 	 	 
	SP0

	 	=
	 	the Current Market Price of the Common Stock; and
	 
	 	 	 	 
	DIV

	 	=
	 	the amount in cash per share of Common Stock of
the dividend or distribution, as determined
pursuant to the following sentences. If any
adjustment is required to be made as set forth in
this Section 13(a)(v) as a result of a
distribution (1) that is a regularly scheduled
quarterly dividend, such adjustment would be based
on the amount by which such dividend exceeds the
Dividend Threshold Amount or (2) that is not a
regularly scheduled quarterly dividend, such
adjustment would be based on the full amount of
such distribution. The Dividend Threshold Amount
is subject to adjustment on an inversely
proportional basis whenever the Conversion Rate is
adjusted; provided that no adjustment shall be
made to the Dividend Threshold Amount for any
adjustment made to the Conversion Rate as
described under this Section 13(a)(v).

     Any adjustment made pursuant to this Section 13(a)(v) shall become effective immediately prior
to 9:00 a.m., New York City time, on the Ex-Dividend Date for such dividend or distribution. If
any dividend or distribution of the type described in this Section 13(a)(v) is not so paid or made,
the Conversion Rate shall be readjusted, effective as of the date the Board of Directors publicly
announces its decision not to pay such dividend or distribution, to the Conversion Rate that would
then be in effect if such dividend or distribution had not been declared.

          (vi) Self Tender Offers and Exchange Offers. If the Corporation or any of its
subsidiaries successfully completes a tender offer or exchange offer for all or any portion of the
Common Stock, to the extent that the cash and value of any other consideration included in the
payment per share of Common Stock exceeds the Closing Price per share of Common Stock on the
Trading Day next succeeding the last date, as it may be amended, on which tenders or exchanges may
be made pursuant to such tender offer or exchange offer (the “Expiration Date”), the Conversion
Rate shall be adjusted based on the following formula:

where,

	 	 	 	 	 
	CR0

	 	=
	 	the Conversion Rate in
effect at 5:00 p.m., New
York City time, on the
Expiration Date;
	 
	 	 	 	 
	CR1

	 	=
	 	the Conversion Rate in
effect immediately after
5:00 p.m., New York City
time, on the Expiration
Date;
	 
	 	 	 	 
	AC

	 	=
	 	the aggregate value of
all cash and any other
consideration (as
determined by the Board
of Directors), on the
Expiration Date, paid or
payable for shares of
Common Stock validly
tendered or exchanged and
not withdrawn as of the
Expiration Date;
	 
	 	 	 	 
	OS1

	 	=
	 	the number of shares of
Common Stock outstanding
immediately after the
last time tenders or
exchanges may be made
pursuant to such tender
offer or exchange offer
(the “Expiration Time”);
	 
	 	 	 	 
	OS0

	 	=
	 	the number of shares of
Common Stock outstanding
immediately before the
Expiration Time; and
	 
	 	 	 	 
	SP1

	 	=
	 	the average Closing Price per share of
Common Stock during the 10 consecutive
Trading Day period commencing on the
Trading Day immediately after the
Expiration Date.

     Any adjustment made pursuant to this Section 13(a)(vi) shall become effective immediately
prior to 9:00 a.m., New York City time, on the Trading Day immediately following the Expiration
Date. If the Corporation,

16

 

or one of its subsidiaries, is obligated to purchase shares of Common
Stock pursuant to any such tender offer or exchange offer, but the Corporation or such subsidiary
is permanently prevented by applicable law from effecting any such purchases, or all such purchases
are rescinded, then the Conversion Rate shall be readjusted to be the Conversion Rate that would
then be in effect if such tender offer or exchange offer had not been made. Except as set forth in
the preceding sentence, if the application of this Section 13(a)(vi) to any tender offer or
exchange offer would result in a decrease in the Conversion Rate, no adjustment shall be made for
such tender offer or exchange offer under this Section 13(a)(vi). If an adjustment to the
Conversion Rate is required under this Section 13(a)(vi), delivery of any additional shares of
Common Stock upon conversion of the Series A Preferred Stock shall be delayed to the extent
necessary in order to complete the calculations provided for in this Section 13(a)(vi).

     (vii) Certain Future Offerings. If, between August 26, 2008 and August 26,
2010, a Reset Issuance occurs, then the Conversion Rate shall be adjusted based on the following
formula:

where,

	 	 	 	 	 
	CR0

	 	=
	 	the Conversion Rate in effect at 5:00 p.m., New
York City time, on the date of the Reset Issuance;
	 
	 	 	 	 
	CR1

	 	=
	 	the Conversion Rate in effect immediately after
5:00 p.m., New York City time, on the date of the
Reset Issuance;
	 
	 	 	 	 
	OS1

	 	=
	 	the number of shares of Common Stock outstanding
immediately prior to the initial issuance of the
Series A Preferred Stock plus the number of shares
of common stock into which the Series A Preferred
Stock is convertible into as of the date of
issuance thereof (assuming such Series A Preferred
Stock was convertible on such date);
	 
	 	 	 	 
	NI

	 	=
	 	the number of shares of Common Stock to be issued
in such Reset Issuance (or issuable upon
conversion or exercise of the securities issued in
such Reset Issuance); provided, however, that NI
shall in no event exceed the quotient obtained by
dividing (i) the gross proceeds to the Corporation
from the Reset Issuance by (ii) the New Issuance
Price;

     provided, however, that the amount of any adjustment to the Conversion Rate resulting from a
Reset Issuance (e.g., the amount by which CR1 exceeds CR0) shall be reduced
by 50% in the event the per share price of the applicable Reset Issuance is greater than or equal
to the Applicable Conversion Rate minus $2.00 and less than the Subject Price.

     Any adjustment made pursuant to this Section 13(a)(vii) shall become effective immediately
prior to 9:00 a.m., New York City time, on the Trading Day immediately following the date of the
Reset Issuance. If an adjustment to the Conversion Rate is required under this Section 13(a)(vii),
delivery of any additional shares of Common Stock upon conversion of the Series A Preferred Stock
shall be delayed to the extent necessary in order to complete the calculations provided for in this
Section 13(a)(vii).

     (b) Miscellaneous Anti-Dilution Provisions.

          (i) To the extent the Corporation has a rights plan in effect with respect to the Common
Stock on any Conversion Date, upon conversion of any shares of the Series A Preferred Stock, the
Holder will receive, in addition to the shares of Common Stock, the rights under the rights plan,
unless, prior to such Conversion Date, the
rights have separated from the shares of Common Stock in accordance with the provisions of
such rights plan, in which case the Conversion Rate shall be adjusted at the time of separation as
if the Corporation made a distribution to all or substantially all holders of the outstanding
shares of Common Stock as provided in Section 13(a)(iv), such to readjustment in the event of the
expiration, termination or redemption of such rights.

17

 

          (ii) In cases where the Fair Market Value of shares of Capital Stock, evidences of
indebtedness, assets (including cash) or securities, including with respect to a Spin-Off, as to
which Section 13(a)(iv) or Section 13(a)(v) apply, applicable to one share of Common Stock,
distributed to holders of Common Stock:

     (1) equals or exceeds the Current Market Price of the Common Stock; or

     (2) the Current Market Price of the Common Stock exceeds the fair market
value of shares of Capital Stock, evidences of indebtedness, assets (including cash) or
securities so distributed by less than $1.00,

rather than being entitled to an adjustment in the Conversion Rate, the Holder shall be entitled to
receive upon conversion, in addition to the shares of Common Stock, the kind and amount of shares
of Capital Stock, evidences of indebtedness, assets (including cash) or securities comprising the
distribution that such Holder would have received if such Holder’s Series A Preferred Stock had
been converted immediately prior to the record date for determining the holders of Common Stock
entitled to receive the distribution.

          (iii) Notwithstanding any of the foregoing clauses in this Section 13, the
applicable Conversion Rate will not be adjusted pursuant to this Section 13 if the Holders may
participate in the transaction that would otherwise give rise to adjustment pursuant to this
Section 13 as a result of holding shares of the Series A Preferred Stock, without conversion of
such Holder’s shares of Series A Preferred Stock, as if such Holder held the full number of shares
of Common Stock in to which a share of Series A Preferred Stock may then be converted.

          (iv) The Corporation may, but is not required to, make such increases in the
Conversion Rate, in addition to those required by Section 13(a)(i) through (vii), as the Board of
Directors deems advisable to avoid or diminish any income tax to holders of Common Stock resulting
from any dividend or distribution of Common Stock (or rights to acquire Common Stock) or from any
event treated as such for income tax purposes.

          (v) In addition to the foregoing, to the extent permitted by applicable law and
subject to the applicable rules of the Nasdaq Stock Market, the Corporation from time to time may
increase the Conversion Rate by any amount for any period of time if the period is at least 20
Business Days, the increase is irrevocable during the period and the Board of Directors shall have
made a determination that such increase would be in the best interests of the Corporation, which
determination shall be conclusive. Whenever the Conversion Rate is increased pursuant to the
preceding sentence, the Corporation shall mail to Holders of record of the Series A Preferred Stock
a notice of the increase, which notice will be given at least 15 calendar days prior to the
effectiveness of any such increase, and such notice shall state the increased Conversion Rate and
the period during which it will be in effect.

          (vi) If during a period applicable for calculating the Closing Price of Common Stock
or any other security, an event occurs that requires an adjustment to the Conversion Rate, the
Closing Price of such security shall be calculated for such period in a manner determined by the
Corporation to appropriately reflect the impact of such event on the price of such security during
such period. Whenever any provision of this Certificate of Designations requires a calculation of
an average of Closing Prices of Common Stock or any other security over multiple days, appropriate
adjustments shall be made to account for any adjustment to the Conversion Rate that becomes
effective, or any event requiring an adjustment to the Conversion Rate where the Ex-Dividend Date
of the event occurs, at any time during the period during which the average is to be calculated.

          (vii) In the event the Common Stock ceases to be traded on an applicable exchange or
applicable market and as a result there is no Ex-Dividend Date with respect to any issuance,
dividend or distribution requiring an adjustment to the Conversion Rate pursuant to this Section
13, the Corporation shall calculate the adjustment using the record date for such issuance,
dividend or distribution in lieu of the Ex-Dividend Date.

          (viii) The Corporation shall provide upon the request of a Holder a brief statement
setting forth in reasonable detail reasonable detail the method by which the adjustment to the
Conversion Rate was determined and setting forth the revised Conversion Rate.

     14. Reservation of Common Stock.

18

 

     (a) The Corporation shall at all times reserve and keep available out of its
authorized and unissued shares of Common Stock or shares of Common Stock held in the treasury by
the Corporation, solely for issuance upon the conversion of shares of Series A Preferred Stock as
provided in this Certificate of Designations, free from any preemptive or other similar rights,
such number of shares of Common Stock as shall from time to time be issuable upon the conversion of
all the shares of Series A Preferred Stock then outstanding. For purposes of this Section 14(a),
the number of shares of Common Stock that shall be deliverable upon the conversion of all
outstanding shares of Series A Preferred Stock shall be computed as if at the time of computation
all such outstanding shares were held by a single Holder.

     (b) Notwithstanding the foregoing, the Corporation shall be entitled to deliver upon
conversion of shares of Series A Preferred Stock, as herein provided, shares of Common Stock
acquired by the Corporation (in lieu of the issuance of authorized and unissued shares of Common
Stock), so long as any such acquired shares are free and clear of all liens, charges, security
interests or encumbrances (other than liens, charges, security interests and other encumbrances
created by the Holders).

     (c) All shares of Common Stock delivered upon conversion of the Series A Preferred
Stock shall be duly authorized, validly issued, fully paid and non-assessable, free and clear of
all liens, claims, security interests and other encumbrances (other than liens, charges, security
interests and other encumbrances created by the Holders).

     15. Limitations on Beneficial Ownership.

     Notwithstanding anything to the contrary contained herein, no holder of Series A Preferred
Stock will be entitled to receive shares of Common Stock upon conversion pursuant to Section 8,
Section 9 or Section 11 to the extent (but only to the extent) that such receipt would cause such
converting holder to become, directly or indirectly, a “beneficial owner” (within the meaning of
Section 13(d) of the Exchange Act and the rules and regulations promulgated thereunder) of more
than 9.9% of the shares of Common Stock outstanding at such time, unless such Holder has, prior to
such conversion, received written approval from the Federal Reserve to own Common Stock in excess
of 9.9%, in which case the Corporation shall issue Common Stock, subject to the other limitations
set forth herein, upon conversion up to the maximum amount permitted by such approval. Any
purported delivery of shares of Common Stock upon conversion of Series A Preferred Stock shall be
void and have no effect to the extent (but only to the extent) that such delivery would result in
the converting holder becoming the beneficial owner of more than 9.9% of the shares of Common Stock
outstanding at such time.

     If any delivery of shares of Common Stock owed to a holder upon conversion of Series A
Preferred Stock is not made, in whole or in part, as a result of the limitation set forth in this
Section 15, the Corporation’s obligation to make such delivery shall not be extinguished and (i)
the Corporation shall hold any shares of Common Stock not so delivered (the “Retained Stock”) until
such time as the converting holder gives notice to the Corporation that such delivery would be
permissible pursuant to clauses (iii) or (iv) below; (ii) during the time the Corporation holds
Retained Stock, the converting holder shall not have the right to vote any such Retained Stock nor
shall dividends be payable on such Retained Stock; (iii) as promptly as practical following such
time as the converting holder gives notice to the Corporation that delivery of all or a portion of
the Retained Stock would not result in it being the beneficial owner of more than 9.9% of the
shares of Common Stock outstanding at such time, the Corporation shall deliver to such holder the
shares of Retained Stock that are the subject of the notice and (iv) as promptly as practical
following such time as the converting holder gives notice to the Corporation that such holder has
received approval from the Federal Reserve to own such Retained Stock, the Corporation shall
deliver to such holder the Retained Stock.

     16. Preemptive or Subscription Rights.

     The Holders of Series A Preferred Stock shall not have any preemptive or subscription rights.

     17. Repurchase.

19

 

     Subject to the limitations imposed herein, the Corporation may purchase and sell shares of
Series A Preferred Stock from time to time to such extent, in such manner, and upon such terms as
the Board of Directors or any duly authorized committee of the Board of Directors may determine;
provided, however, that the Corporation shall not use any of its funds for any such purchase when
there are reasonable grounds to believe that the Corporation is, or by such purchase would be,
rendered insolvent.

     18. Converted or Reacquired Shares.

     Shares of Series A Preferred Stock that have been issued and converted or otherwise
repurchased or reacquired by the Corporation shall be restored to the status of authorized and
unissued shares of preferred stock, undesignated as to series and available for future issuance.

     19. Transfer Taxes.

     The Corporation shall pay any and all stock transfer and documentary stamp taxes that may be
payable in respect of any issuance or delivery of shares of Series A Preferred Stock or shares of
Common Stock or other securities issued on account of Series A Preferred Stock pursuant hereto or
certificates representing such shares or securities. The Corporation shall not, however, be
required to pay any such tax that may be payable in respect of any transfer involved in the
issuance or delivery of shares of Series A Preferred Stock or Common Stock or other securities in a
name other than that in which the shares of Series A Preferred Stock with respect to which such
shares or other securities are issued or delivered were registered, or in respect of any payment to
any Person other than a payment to the registered holder thereof, and shall not be required to make
any such issuance, delivery or payment unless and until the Person otherwise entitled to such
issuance, delivery or payment has paid to the Corporation the amount of any such tax or has
established, to the satisfaction of the Corporation, that such tax has been paid or is not payable.

     20. Form.

          Series A Preferred Stock shall be issued in the form attached hereto as Exhibit A (each a
“Preferred Certificate”), which is hereby incorporated in and expressly made a part of this
Certificate of Designations. The Preferred Certificates may have notations, legends or
endorsements required by law, stock exchange rules, agreements to which the Corporation is subject,
if any, or usage (provided that any such notation, legend or endorsement is in a form acceptable to
the Corporation).

     21. Replacement Certificates.

     (a) The Corporation shall replace any mutilated certificate at the Holder’s expense
upon surrender of that certificate to the Registrar. The Corporation shall replace certificates
that become destroyed, stolen or lost at the Holder’s expense upon delivery to the Corporation and
the Registrar of satisfactory evidence that the certificate has been destroyed, stolen or lost,
together with any indemnity that may be required by the Registrar and the Corporation.

     (b) The Corporation shall not be required to issue any certificates representing the
Series A Preferred Stock on or after any applicable Conversion Date or Mandatory Conversion Date.
In place of the delivery of a replacement certificate following any applicable Conversion Date or
Mandatory Conversion Date, the Registrar, upon delivery of the evidence and indemnity described in
Section 21(a), shall deliver the shares of Common Stock pursuant to the terms of the Series A
Preferred Stock formerly evidenced by the certificate.

[REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK]

20

 

     IN WITNESS WHEREOF, the Corporation has caused this Certificate of Designations to be executed
and acknowledged this 26th day of August 2008.

	 	 	 	 	 
	 	 	WINTRUST FINANCIAL CORPORATION
	 
	 	 	 	 
	 

	 	By:	 	/s/ David A. Dykstra
	 

	 	 	 	 
	 

	 	Name:
	 	David A. Dykstra
	 

	 	Title:
	 	Senior Executive Vice President, Chief
	 

	 	 	 	Operating Officer and Secretary

	 	 	 	 	 
	ACKNOWLEDGED:	 	 
	 
	 	 	 	 
	By:
	 	/s/ David Stoehr	 	 
	Name:

	 	 

David Stoehr
	 	 
	Title:

	 	Chief Financial Officer	 	 

21

 

EXHIBIT A

FORM OF 8.00% NON-CUMULATIVE PERPETUAL CONVERTIBLE

PREFERRED STOCK, SERIES A

SEE REVERSE FOR LEGEND

Number: [     ]

	 	 	 
	8.00% Non-Cumulative Perpetual Convertible Preferred Stock, Series A

	 	[     ] Shares

WINTRUST FINANCIAL CORPORATION

FACE OF SECURITY

This certifies that [___] is the owner of [     ] fully paid and non-assessable shares of the
8.00% Non-Cumulative Perpetual Convertible Preferred Stock, Series A, no par value, of Wintrust
Financial Corporation, an Illinois corporation (hereinafter called the “Corporation”), transferable
only the books of the Corporation by the holder hereof in person or by duly authorized attorney,
upon surrender of this Certificate properly endorsed. This certificate and the shares represented
hereby are issued and shall be held subject to all the provisions of the Amended and Restated
Articles of Incorporation, as amended, of the Corporation and all amendments thereto (copies of
which are on file at the Corporation’s principal executive offices in Lake Forest, Illinois) to all
of which the holder of this certificate by acceptance hereof assents.

IN WITNESS WHEREOF, the Corporation has caused this certificate to be executed.

	 	 	 	 	 
	 	 	WINTRUST FINANCIAL CORPORATION
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	Name:	 	 
	 

	 	Title:	 	 
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	Name:	 	 
	 

	 	Title:	 	 

22

 

REVERSE OF SECURITY

WINTRUST FINANCIAL CORPORATION

          The shares of 8.00% Non-Cumulative Perpetual Convertible Preferred Stock, Series A (the
“Series A Preferred Stock”) have the preferences and privileges, conversion rights, dividend
rights, liquidation preferences and such other rights and qualifications, limitations and
restrictions as provided in the Certificate of Designations relating to the Series A Preferred
Stock (the “Certificate of Designations”), in addition to those set forth in the Amended and
Restated Articles of Incorporation of the Corporation, as amended, and the Corporation’s bylaws,
copies of which shall be furnished by the Corporation to any holder without charge upon the request
addressed to the Secretary of the Corporation at its principal office in Lake Forest, Illinois.

          The shares of Series A Preferred Stock are convertible into shares of Common Stock at any time
at the option of the Holder, subject to certain conditions as provided in the Certificate of
Designations. On or after August 26, 2013, the Corporation also has the right to cause some or all
of the Series A Preferred Stock to be converted into shares of Common Stock, subject to certain
conditions as provided in the Certificate of Designations. The preceding description is qualified
in its entirety by reference to the Certificate of Designations.

          The Corporation shall furnish to any stockholders, upon request, and without charge, a full
statement of the designations, relative rights, preferences and limitations of the shares of each
class and series authorized to be issued so far as the same have been determined and of the
authority of the Board of Directors to divide the shares into classes or series and to determine
and change the relative rights, preferences and limitations of any class or series. Any such
request should be addressed to the Secretary of the Corporation at its principal office in Lake
Forest, Illinois.

          THE SECURITIES REPRESENTED BY THIS INSTRUMENT HAVE NOT BEEN REGISTERED UNDER THE SECURITIES
ACT OF 1933, AS AMENDED, OR SECURITIES LAWS OF ANY STATE AND MAY NOT BE TRANSFERRED, SOLD OR
OTHERWISE DISPOSED OF EXCEPT WHILE A REGISTRATION STATEMENT RELATING THERETO IS IN EFFECT UNDER
SUCH ACT AND APPLICABLE STATE SECURITIES LAWS OR AN OPINION OF COUNSEL SATISFACTORY TO THE
CORPORATION THAT SUCH REGISTRATION IS NOT REQUIRED.

          THE SECURITIES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO THE TERMS AND CONDITIONS OF AN
INVESTMENT AGREEMENT BETWEEN THE CORPORATION AND THE HOLDER HEREOF, AND MAY NOT BE SOLD, ASSIGNED,
PLEDGED, TRANSFERRED OR ENCUMBERED EXCEPT IN ACCORDANCE WITH THE TERMS AND PROVISIONS OF SAID
AGREEMENT, A COPY OF WHICH IS ON FILE AT THE PRINCIPAL EXECUTIVE OFFICES OF THE CORPORATION IN LAKE
FOREST, ILLINOIS AND WILL BE FURNISHED TO THE HOLDER OF THIS CERTIFICATE UPON REQUEST AND WITHOUT
CHARGE.

23

 

NOTICE OF CONVERSION

(To be Executed by the Holder in order to

Convert the 8.00% Non-Cumulative Perpetual Convertible Preferred Stock, Series A)

          The undersigned hereby irrevocably elects to convert (the “Conversion”) 8.00% Non-Cumulative
Perpetual Convertible Preferred Stock, Series A (the “Series A Preferred Stock”) of Wintrust
Financial Corporation (hereinafter called the “Corporation”), represented by stock certificate
No(s). [      ] (the “ Series A Preferred Stock Certificates”), into common stock, no par
value, of the Corporation (the “Common Stock”) according to the conditions of the Certificate of
Designations of the Series A Preferred Stock (the “Certificate of Designations”), as of the date
written below. If Common Stock is to be issued in the name of a person other than the undersigned,
the undersigned will pay all transfer taxes payable with respect thereto, if any, and is delivering
herewith the Series A Preferred Stock Certificates. No fee will be charged to the holder for any
conversion, except for transfer taxes, if any. Each Series A Preferred Stock Certificate is
attached hereto (or evidence of loss, theft or destruction thereof).

          The undersigned represents and warrants that (i) all offers and sales by the undersigned of
the Common Stock, if any, issuable to the undersigned upon conversion of the Series A Preferred
Stock shall be made pursuant to registration of the Common Stock under the Securities Act of 1933,
as amended (the “Act”), or pursuant to any exemption from registration under the Act and (ii) the
Conversion is in compliance with the requirements of Section 15 of the Certificate of Designations.

          Capitalized terms used but not defined herein shall have the meanings ascribed thereto in or
pursuant to the Certificate of Designations.

Date of Conversion:

Shares of Series A Preferred Stock to be Converted:

Shares of Common Stock to be Issued: *

Signature:

Name:

Address:**

Fax No.:

 

			
	*	 	The Corporation is not required to issue Common Stock until the original Series A Preferred Stock
Certificate(s) (or evidence of loss, theft or destruction thereof) to be converted are received by
the Corporation or the Conversion Agent. The Corporation shall issue and deliver Common Stock to an
overnight courier not later than three business days following receipt of the original Series A
Preferred Stock Certificate(s) to be converted.
	 
	**	 	Address where Common Stock and any other payments or certificates shall be sent by the
Corporation.

24

 

ASSIGNMENT

For value received,                 hereby sell, assign and transfer unto

Please Insert Social Security or Other Identifying Number of Assignee

(Please
Print or Typewrite Name and Address, Including Zip Code, of
Assignee)

shares of the Capital Stock represented by the within certificate, and do hereby irrevocably
constitute and appoint Attorney to transfer the said stock on the books of the within named
Corporation with full power of substitution in the premises.

Dated                                         

	 	 	 	 	 
	 

	 	 	 	 
	 

	 	NOTICE:
	 	The Signature to this Assignment Must Correspond with
the Name As Written Upon the Face of the Certificate in
Every Particular, Without Alteration or Enlargement or
Any Change Whatever.

	 	 	 
	SIGNATURE GUARANTEED
	 	 
	 
	 	 
	 

(Signature Must Be Guaranteed by a Member

	 	 
	of a Medallion Signature Program)
	 	 

25exv10w1

Exhibit 10.1

Execution Copy

 

INVESTMENT AGREEMENT

dated as of August 26, 2008

between

Wintrust Financial Corporation

and

CIVC-WTFC LLC

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	ARTICLE I PURCHASE; CLOSING
	 	 	 	 
	 
	 	 	 	 
	1.1 Purchase
	 	 	1	 
	1.2 Closing
	 	 	1	 
	 
	 	 	 	 
	ARTICLE II REPRESENTATIONS AND WARRANTIES
	 	 	 	 
	 
	 	 	 	 
	2.1 Disclosure
	 	 	2	 
	2.2 Representations and Warranties of the Company
	 	 	3	 
	2.3 Representations and Warranties of the Investor
	 	 	14	 
	 
	 	 	 	 
	ARTICLE III COVENANTS
	 	 	 	 
	 
	 	 	 	 
	3.1 Other Actions
	 	 	16	 
	3.2 Access, Information and Confidentiality
	 	 	16	 
	 
	 	 	 	 
	ARTICLE IV ADDITIONAL AGREEMENTS
	 	 	 	 
	 
	 	 	 	 
	4.1 Standstill Agreement
	 	 	17	 
	4.2 Transfer Restrictions
	 	 	18	 
	4.3 Legend
	 	 	19	 
	4.4 Reservation for Issuance
	 	 	20	 
	4.5 Certain Transactions
	 	 	20	 
	4.6 Indemnity
	 	 	20	 
	4.7 Registration Rights
	 	 	22	 
	4.8 Certificate of Designations
	 	 	36	 
	 
	 	 	 	 
	ARTICLE V MISCELLANEOUS
	 	 	 	 
	 
	 	 	 	 
	5.1 Survival
	 	 	37	 
	5.2 Expenses
	 	 	37	 
	5.3 Amendment; Waiver
	 	 	37	 
	5.4 Counterparts and Facsimile
	 	 	37	 
	5.5 Governing Law
	 	 	37	 
	5.6 WAIVER OF JURY TRIAL
	 	 	38	 
	5.7 Notices
	 	 	38	 
	5.8 Entire
Agreement, Etc.
	 	 	39	 
	5.9 Interpretation; Other Definitions
	 	 	39	 
	5.10 Captions
	 	 	41	 
	5.11 Severability
	 	 	41	 
	5.12 No Third Party Beneficiaries
	 	 	41	 
	5.13 Time of Essence
	 	 	41	 
	5.14 Specific Performance
	 	 	41	 
	5.15 Use of Proceeds
	 	 	41	 
	5.16 Limitation on Liability
	 	 	41	 
	5.17 Public Announcements
	 	 	41	 

i

 

INDEX OF DEFINED TERMS

	 	 	 
	 	 	Location of
	Term	 	Definition
	Affiliate
	 	5.9(a)                    
	Agency
	 	2.2(v)                   
	Agreement
	 	Preamble
	Articles of Incorporation
	 	Recitals
	Beneficially Own
	 	5.9(b)                   
	Beneficial Owner
	 	5.9(b)
	BHC Act
	 	2.2(a)
	Board of Directors
	 	2.2(d)
	business day
	 	5.9(c)
	Capitalization Date
	 	2.2(b)                         
	Articles of Incorporation
	 	Recitals
	Closing
	 	1.2(a)
	Closing Date
	 	1.2(a)
	Code
	 	2.2(i)
	Common Stock
	 	2.2(b)
	Company
	 	Preamble
	Company Banks
	 	5.9(f)
	Company Financial Statements
	 	2.2(f)
	Company Preferred Stock
	 	2.2(b)
	Company Reports
	 	2.2(g)
	Company Significant Agreement
	 	2.2(l)
	Company Significant Subsidiary
	 	5.9(l)
	Company Subsidiary
	 	5.9(l)
	control/controlled by/under common control with
	 	5.9(a)                         
	Convertible Preferred Stock
	 	Recitals
	Demand Registration
	 	4.7(a)
	Disclosure Schedule
	 	2.1(a)
	Exchange Act
	 	2.2(g)                         
	GAAP
	 	2.1(b)
	Governmental Entity
	 	5.9(e)
	herein/hereof/hereunder
	 	5.9(f)
	Holders’ Counsel
	 	4.7(l)
	Illinois Secretary
	 	Recitals
	Including/includes/included/include
	 	5.9(c)
	Indemnitee
	 	4.7(i)
	Indemnified Party
	 	4.6(c)
	Indemnifiable Party
	 	4.6(c)
	Information
	 	3.2(b)
	Initiating Investors
	 	4.7(a)
	Insurer
	 	2.2(v)
	Investor
	 	Preamble

ii

 

	 	 	 
	 	 	Location of
	Term	 	Definition
	knowledge of the Company/Company’s knowledge
	 	5.9(h)
	Liens
	 	2.2(c)
	Loan Investor
	 	2.2(v)                               
	Losses
	 	4.6(a)
	material
	 	2.1(b)
	Material Adverse Effect
	 	2.1(b)
	or
	 	5.9(i)
	Past Due
	 	5.9(j)
	person
	 	5.9(k)
	Piggyback Registration
	 	4.7(b)
	Preferred Stock Certificate of Designations
	 	Recitals
	Previously Disclosed
	 	2.1(c)
	Purchase Price
	 	1.2(b)
	Qualifying Ownership Interest
	 	3.2(a)
	Registrable Securities
	 	4.7(a)
	Registration Expenses
	 	4.7(d)
	Registration Request
	 	4.7(a)
	Registration Statement
	 	4.7(a)
	Regulatory Agreement
	 	2.2(u)
	Rule 144
	 	4.7(l)
	Rule 159A
	 	4.7(l)
	Rule 405
	 	4.7(l)
	Rule 415
	 	4.7(l)
	Scheduled Blackout Period
	 	4.7(l)
	SEC
	 	2.1(c)
	Securities
	 	Recitals
	Securities Act
	 	2.2(g)
	Short-Form Registration
	 	4.7(a)                               
	Special Registration
	 	4.7(b)
	Significant Subsidiary
	 	5.9(l)
	Subsidiary
	 	5.9(l)
	Taxes
	 	2.2(i)
	Tax Return
	 	2.2(i)
	Transaction Documents
	 	2.1(b)
	Threshold Amount
	 	4.6(e)
	Transfer
	 	3.2(a)
	Voting Debt
	 	2.2(b)
	Voting Securities
	 	5.9(m)
	Warrants
	 	2.2(b)                         

iii

 

LIST OF SCHEDULES AND EXHIBITS

	 	 	 
	Exhibit A:

	 	Preferred Stock Certificate of Designations
	Exhibit B:

	 	Form Opinion of Counsel

iv

 

     INVESTMENT AGREEMENT, dated as of August 26, 2008 (this “Agreement”), between Wintrust
Financial Corporation, an Illinois corporation (the “Company”) and CIVC-WTFC LLC, a
Delaware limited liability company (the “Investor”).

RECITALS:

     A. The Investment. The Company intends to sell to the Investor, and the Investor
intends to purchase from the Company, as an investment in the Company, shares of a series of
non-cumulative perpetual convertible preferred stock, no par value, of the Company, having the
terms set forth on Exhibit A (the “Convertible Preferred Stock”).

     B. The Securities. The term “Securities” refers collectively to (1) the
shares of Convertible Preferred Stock purchased under this Agreement and (2) the shares of Common
Stock into which the Convertible Preferred Stock is convertible. When purchased, the Convertible
Preferred Stock will be evidenced by a share certificate incorporating the terms set forth in a
certificate of designations for the Convertible Preferred Stock in the form attached as Exhibit
A (the “Preferred Stock Certificate of Designations”) made a part of the Company’s
Amended and Restated Articles of Incorporation, as amended (the “Articles of
Incorporation”) by the filing of the Preferred Stock Certificate of Designations with the
Secretary of State of the State of Illinois (the “Illinois Secretary”).

     NOW, THEREFORE, in consideration of the premises, and of the representations, warranties,
covenants and agreements set forth herein, the parties agree as follows:

ARTICLE I

PURCHASE; CLOSING

     1.1 Purchase. On the terms and subject to the conditions set forth herein, the
Investor will purchase from the Company, and the Company will sell to the Investor, 50,000 shares
of Convertible Preferred Stock.

     1.2 Closing.

     (a) The closing of the purchase of the Securities referred to in Section 1.1 by
the Investor pursuant hereto (the “Closing”) shall occur at 8:30 a.m., Chicago time,
on the date hereof, at the offices of Sidley Austin LLP located at One South Dearborn
Street, Chicago, Illinois 60603 or such other time or location as agreed by the parties.
The date of the Closing is referred to as the “Closing Date.”

     (b) At the Closing,

     (1) the Company will deliver to the Investor:

     (A) a certificate representing the number of shares of Convertible
Preferred Stock sold to the Investor as provided in Section 1.1;

 

 

     (B) the opinion of Sidley Austin LLP, counsel to the Company, addressed
to the Investor and dated the Closing Date, to the effect set forth in
Exhibit B;

     (2) the Investor will deliver to the Company, by wire transfer of immediately
available funds, an amount equal to $50,000,000 (the “Purchase Price”).

ARTICLE II

REPRESENTATIONS AND WARRANTIES

     2.1 Disclosure. (a) On or prior to the date hereof, the Company delivered to the
Investor and the Investor delivered to the Company a schedule (a “Disclosure Schedule”)
setting forth, among other things, items the disclosure of which is necessary or appropriate either
in response to an express disclosure requirement contained in a provision hereof or as an exception
to one or more representations or warranties contained in Section 2.2 with respect to the
Company, or in Section 2.3 with respect to the Investor, or to one or more covenants
contained in Article III.

     (b) As used in this Agreement, any reference to any fact, change, circumstance or
effect being “material” with respect to the Company means such fact, change, circumstance or
effect is material in relation to the business, assets, results of operations or financial
condition of the Company and the Company Subsidiaries taken as a whole. As used in this
Agreement, the term “Material Adverse Effect” means any circumstance, event, change,
development or effect that, individually or in the aggregate, (1) is material and adverse to
the business, assets, results of operations or financial condition of the Company and
Company Subsidiaries taken as a whole or (2) would materially impair the ability of the
Company to perform its obligations under this Agreement or the Preferred Stock Certificate
of Designations (collectively with this Agreement, the “Transaction Documents”) or
to consummate the Closing; provided, however, that in determining whether a Material Adverse
Effect has occurred, there shall be excluded any effect resulting from the following:
(A) changes in U.S. generally accepted accounting principles (“GAAP”) or regulatory
accounting principles generally applicable to banks, financial holding companies, mortgage
originators, savings associations or their holding companies, (B) changes in applicable
laws, rules and regulations or interpretations thereof by Governmental Entities, (C) actions
or omissions of the Company required or expressly permitted by the terms of this Agreement
or taken with the prior written consent of the Investor, (D) changes in general economic,
monetary or financial conditions, including changes in prevailing interest rates, credit
markets, secondary mortgage market conditions or housing price appreciation/depreciation
trends, (E) changes in the market price or trading volumes of the Common Stock or the
Company’s other securities (but not the underlying causes of such changes), (F) the failure
of the Company to meet any internal or public projections, forecasts, estimates or guidance
(including guidance as to “earnings drivers”) (but not the underlying causes of such
failure), (G) changes in global or national political conditions, including the outbreak or
escalation of war or acts of terrorism, and (H) the identity of the Investor or

2

 

the public disclosure of this Agreement or the transactions contemplated hereby except,
with respect to clauses (D) and (G), to the extent that the effects of such changes have a
disproportionate effect on the Company, taken as a whole, relative to other similarly
situated banks, savings associations or their holding companies generally.

     (c) “Previously Disclosed” with regard to (1) a party (including the Company)
means information set forth on its Disclosure Schedule, provided, however, that disclosure
in any section of such Disclosure Schedule shall apply only to the indicated section of this
Agreement except to the extent that it is reasonably apparent from the face of such
disclosure that such disclosure is relevant to another section of this Agreement, and
(2) the Company means information publicly disclosed by the Company in (A) its Annual Report
on Form 10-K for the fiscal year ended December 31, 2007, as filed by it with the Securities
and Exchange Commission (“SEC”) on February 29, 2008, (B) its Definitive Proxy
Statement on Schedule 14A, as filed by it with the SEC on April 25, 2008, (C) its Quarterly
Reports on Form 10-Q for the quarterly periods ended March 31, 2008, as filed by it with the
SEC on May 12, 2008, or June 30, 2008, as filed by it with the SEC on August 11, 2008 or (D)
any Current Report on Form 8-K filed or furnished by it with the SEC since December 31, 2007
and publicly available on EDGAR prior to the date of this Agreement.

     2.2 Representations and Warranties of the Company. Except as Previously Disclosed,
the Company represents and warrants to the Investor, as of the date of this Agreement (except to
the extent made only as of a specified date), that:

     (a) Organization and Authority. (1) The Company is a corporation duly
organized and validly existing under the laws of the State of Illinois, is duly qualified to
do business and is in good standing in all jurisdictions where its ownership or leasing of
property or the conduct of its business requires it to be so qualified and where failure to
be so qualified would have or reasonably be expected to result in a Material Adverse Effect,
and has the corporate power and authority to own its properties and assets and to carry on
its business as it is now being conducted. The Company is duly registered as a bank holding
company under the Bank Holding Company Act of 1956, as amended (“BHC Act”). The
Company has furnished to the Investor true, correct and complete copies of the Articles of
Incorporation and bylaws as in effect on the date of this Agreement. The Company is not in
violation of any of the provisions of its Articles of Incorporation, bylaws or other
organizational or charter documents.

     (2) Each Company Significant Subsidiary is duly organized and validly existing
under the laws of its jurisdiction of organization, is duly qualified to do business
and is in good standing in all jurisdictions where its ownership or leasing of
property or the conduct of its business requires it to be so qualified, except in
each case where failure to be so qualified, in good standing or validly existing
would not have or reasonably be expected to result in a Material Adverse Effect, and
has the corporate power and authority to own its properties and assets and to carry
on its business as it is being conducted. No Company Significant Subsidiary is in
violation of any of the material provisions of its respective

3

 

certificate or articles of incorporation, bylaws or other organizational or
charter documents.

     (3) The deposit accounts of each Company Bank are insured up to applicable
limits by the Federal Deposit Insurance Corporation, and all premiums and
assessments required to be paid in connection therewith have been paid when due.
The Company does not control, as that term is used in section 2(a)(2) of the BHC
Act, 12 U.S.C. s. 1841(a)(2), and defined and interpreted by the Federal Reserve
Board under 12 C.F.R. Part 225, any bank, trust company, savings association, or
depository institution that is not included as a Company Bank under Section
5.9(d) of this Agreement.

     (b) Capitalization. The authorized capital stock of the Company consists of
60,000,000 shares of common stock, no par value per share (the “Common Stock”), and
20,000,000 shares of preferred stock, no par value, of the Company (the “Company
Preferred Stock”), of which 100,000 shares have been designated as Junior Serial
Preferred Stock A. As of the close of business on August 20, 2008 (the “Capitalization
Date”), there were 23,637,725 shares of Common Stock outstanding and no shares of
Company Preferred Stock outstanding. As of the close of business on the Capitalization
Date, other than (i) issuances, awards or grants outstanding or issuable under the Company’s
Directors Deferred Fee and Stock Plan, the Company’s 2007 Stock Incentive Plan and the
Company’s 1997 Stock Incentive Plan or the Company’s Employee Stock Purchase Plan, each as
amended in respect of which an aggregate of 3,337,607 shares of Common Stock have been
reserved for issuance, and (ii) the warrant certificates issued pursuant to that certain
Agreement and Plan of Merger by and among the Company, Wayne Hummer Asset Management Company
and Lake Forest Capital Management Co., Robert L. Meyers, James P. Richter and S.A. Lincoln
dated as of February 4, 2003 (the “Warrants”), in respect of which an aggregate of
19,000 shares of Common Stock have been reserved for issuance, no shares of Common Stock or
Company Preferred Stock were reserved for issuance. All of the issued and outstanding
shares of Common Stock have been duly authorized and validly issued and are fully paid,
nonassessable and free of preemptive or similar rights. No bonds, debentures, notes or
other indebtedness having the right to vote on any matters on which the stockholders of the
Company may vote (“Voting Debt”) are issued and outstanding. As of the date of this
Agreement, except (i) pursuant to any cashless exercise provisions of any Company stock
options or pursuant to the surrender of shares to the Company or the withholding of shares
by the Company to cover tax withholding obligations under the Benefit Plans, and (ii) as set
forth elsewhere in this Section 2.2(b), the Company does not have and is not bound
by any outstanding subscriptions, options, warrants, calls, commitments or agreements of any
character calling for the purchase or issuance of, or securities or rights convertible into
or exchangeable for, any shares of Common Stock or Company Preferred Stock or any other
equity securities of the Company or Voting Debt or any securities representing the right to
purchase or otherwise receive any shares of capital stock of the Company (including any
rights plan or agreement). The issue and sale of the Securities hereunder will not obligate
the Company or any Subsidiary to issue shares of Common Stock or other securities to any
person (other than the Investor) and will not result in a right of any holder of Company or
Subsidiary securities to adjust or reset the exercise, conversion,

4

 

exchange or purchase price of or under such securities. There are no persons entitled
to registration rights or similar rights of the Corporation that would entitle such persons
to pre-empt, “piggyback” or participate in the registration contemplated by Section
4.7.

     (c) Company’s Subsidiaries. The Company owns, directly or indirectly, all of
the issued and outstanding shares of capital stock of and all other equity interests in each
of the Company Significant Subsidiaries, free and clear of any material liens, charges,
rights of first refusal, adverse rights or claims, pledges, covenants, title defects,
security interests and other material encumbrances of any kind other than those accruing to
the benefit of, or initiated by, the Investor or any of its Affiliates (“Liens”),
and all of such shares or equity interests are duly authorized and validly issued and are
fully paid, nonassessable and free of preemptive rights. No Company Subsidiary has or is
bound by any outstanding subscriptions, options, warrants, calls, commitments or agreements
of any character calling for the purchase or issuance of any shares of capital stock, any
other equity security or any Voting Debt of such Company Subsidiary or any securities
representing the right to purchase or otherwise receive any shares of capital stock, any
other equity security or Voting Debt of such Company Subsidiary.

     (d) Authorization. (1) The Company has the corporate power and authority to
enter into this Agreement and to carry out its obligations under the Transaction Documents.
The execution, delivery and performance of this Agreement by the Company and the
consummation of the transactions contemplated by the Transaction Documents have been duly
authorized by the board of directors of the Company (the “Board of Directors”).
This Agreement has been duly and validly executed and delivered by the Company and, assuming
due authorization, execution and delivery by the Investor, is a valid and binding obligation
of the Company enforceable against the Company in accordance with its terms (except as
enforcement may be limited by applicable bankruptcy, insolvency, reorganization, moratorium,
fraudulent transfer and similar laws of general applicability relating to or affecting
creditors’ rights or by general equity principles). No other corporate proceedings
(including any shareholder approval) are necessary for the execution and delivery by the
Company of this Agreement, the performance by it of its obligations under the Transaction
Documents or the consummation by it of the transactions contemplated thereby.

     (2) Neither the execution and delivery by the Company of the Transaction
Documents, nor the consummation of the transactions contemplated thereby, nor
compliance by the Company with any of the provisions thereof (including, without
limitation, the conversion provisions of the Convertible Preferred Stock), will
(A) violate, conflict with, or result in a breach of any provision of, or constitute
a default (or an event which, with notice or lapse of time or both, would constitute
a default) under, or result in the termination of, or result in the loss of any
benefit or creation of any right on the part of any third party under, or accelerate
the performance required by, or result in a right of termination or acceleration of,
or result in the creation of any Lien upon any of the material properties or assets
of the Company or any Company Subsidiary under any of the terms, conditions or
provisions of (i) its Articles of Incorporation or bylaws (or similar governing
documents) or the charter, bylaws or other

5

 

governing instrument of any Company Significant Subsidiary or (ii) any note,
bond, mortgage, indenture, deed of trust, license, lease, agreement or other
instrument or obligation to which the Company or any Company Significant Subsidiary
is a party or by which it may be bound, or to which the Company or any Company
Significant Subsidiary or any of the properties or assets of the Company or any
Company Subsidiary may be subject, or (B) subject to compliance with the statutes
and regulations referred to in Section 2.2(e), violate any law, statute,
ordinance, rule, regulation, permit, concession, grant, franchise or any judgment,
ruling, order, writ, injunction or decree applicable to the Company or any Company
Subsidiary or any of their respective properties or assets except in the case of
clauses (A)(ii) and (B) for such violations, conflicts and breaches as would not,
individually or in the aggregate, have or reasonably be expected to result in a
Material Adverse Effect.

     (e) Governmental Consents. Other than the securities or blue sky laws of the
various states, no material notice to, registration, declaration or filing with, exemption
or review by, or authorization, order, consent or approval of, any Governmental Entity, or
expiration or termination of any statutory waiting period, is necessary for the consummation
by the Company of the transactions contemplated by the Transaction Documents.

     (f) Financial Statements. Each of the consolidated balance sheets of the
Company and the Company Subsidiaries and the related consolidated statements of income,
stockholders’ equity and cash flows, together with the notes thereto (collectively, the
“Company Financial Statements”), included in any Company Report filed with the SEC
prior to the date of this Agreement, (1) have been prepared from, and are in accordance
with, the books and records of the Company and the Company Subsidiaries, (2) complied, as of
their respective date of filing with the SEC, in all material respects with applicable
accounting requirements and with the published rules and regulations of the SEC with respect
thereto, (3) have been prepared, in all material respects, in accordance with GAAP applied
on a consistent basis during the periods involved and (4) present fairly, in all material
respects, the consolidated financial position of the Company and the Company Subsidiaries as
of and for the dates set forth therein and the consolidated results of operations, changes
in stockholders’ equity and cash flows of the Company and the Company Subsidiaries for the
periods stated therein, subject, in the case of any unaudited financial statements, to
normal recurring year-end audit adjustments and the lack of footnotes. The independent
auditors who examined or audited the Company Financial Statements are independent public
accountants with respect to the Company and its Subsidiaries within the meaning of Rule 101
of the AICPA’s Code of Professional Conduct and its interpretations and rulings.

     (g) Reports. (1) Since December 31, 2005, the Company and each Company
Subsidiary has timely filed all material reports, registrations, documents, filings,
statements and submissions, together with any amendments thereto, that it was required to
file with any Governmental Entity (the foregoing, collectively, the “Company
Reports”) and has paid all fees and assessments due and payable in connection therewith.
As of their respective dates of filing, the Company Reports complied in all material

6

 

respects with all statutes and applicable rules and regulations of the applicable
Governmental Entities. To the knowledge of the Company, as of the date of this Agreement,
there are no outstanding comments from the SEC or any other Governmental Entity with respect
to any Company Report. In the case of each such Company Report filed with or furnished to
the SEC, such Company Report did not, as of its date or if amended prior to the date of this
Agreement, as of the date of such amendment, contain an untrue statement of a material fact
or omit to state a material fact required to be stated therein or necessary in order to make
the statements made in it, in light of the circumstances under which they were made, not
misleading and complied in all material respects with the applicable requirements of the
Securities Act of 1933, as amended (the “Securities Act”) and the Securities
Exchange Act of 1934, as amended (the “Exchange Act”). With respect to all other
Company Reports, the Company Reports were complete and accurate in all material respects as
of their respective dates. No executive officer of the Company or any Company Subsidiary
has failed in any respect to make the certifications required of him or her under Section
302 or 906 of the Sarbanes-Oxley Act of 2002.

     (2) The records, systems, controls, data and information of the Company and the
Company Subsidiaries are recorded, stored, maintained and operated under means
(including any electronic, mechanical or photographic process, whether computerized
or not) that are under the exclusive ownership and direct control of the Company or
the Company Subsidiaries or their accountants (including all means of access thereto
and therefrom), except for any non-exclusive ownership and non-direct control that
would not have or reasonably be expected to result in a material adverse effect on
the system of internal accounting controls described below in this
Section 2.2(g). The Company (A) has implemented and maintains disclosure
controls and procedures (as defined in Rule 13a-15(e) of the Exchange Act) to ensure
that material information relating to the Company, including the consolidated
Company Subsidiaries, is made known to the chief executive officer and the chief
financial officer of the Company by others within those entities, and (B) has
disclosed, based on its most recent evaluation prior to the date hereof, to the
Company’s outside auditors and the audit committee of the Board of Directors (x) any
significant deficiencies and material weaknesses in the design or operation of
internal controls over financial reporting (as defined in Rule 13a-15(f) of the
Exchange Act) that are reasonably likely to adversely affect the Company’s ability
to record, process, summarize and report financial information and (y) any fraud,
whether or not material, that involves management or other employees who have a
significant role in the Company’s internal controls over financial reporting. Since
December 31, 2006 and until the date of this Agreement, (A) neither the Company nor
any Company Subsidiary nor, to the knowledge of the Company, any director, officer,
employee, auditor, accountant or representative of the Company or any Company
Subsidiary has received or otherwise had or obtained knowledge of any material
complaint, allegation, assertion or claim, whether written or oral, regarding the
accounting or auditing practices, procedures, methodologies or methods of the
Company or any Company Subsidiary or their respective internal accounting controls,
including any material complaint, allegation, assertion or claim that the

7

 

Company or any Company Subsidiary has engaged in questionable accounting or
auditing practices and (B) no attorney representing the Company or any Company
Subsidiary, whether or not employed by the Company or any Company Subsidiary, has
reported evidence of a material violation of securities laws, breach of fiduciary
duty or similar violation by the Company or any of its officers, directors,
employees or agents to the Board of Directors or any committee thereof or to any
director or officer of the Company.

     (h) Properties and Leases. Except as (1) would not have or (2) would not
reasonably be expected to have a Material Adverse Effect, the Company and the Company
Subsidiaries have good and marketable title to all real properties and all other properties
and assets owned by them, in each case free from Liens that would affect the value thereof
or interfere with the use made or to be made thereof by them. Except as (1) would not have
or (2) would not reasonably be expected to have a Material Adverse Effect, the Company and
the Company Subsidiaries hold all leased real or personal property under valid and
enforceable leases, of which they are in compliance, and with no exceptions that would
interfere with the use made or to be made thereof by them.

     (i) Taxes. (1) Each of the Company and the Company Subsidiaries has (x) duly
and timely filed (including pursuant to applicable extensions granted without penalty) all
material Tax Returns required to be filed by it and (y) paid in full all material Taxes due
or made adequate provision in the financial statements of the Company (in accordance with
GAAP) for any such Taxes, whether or not shown as due on such Tax Returns; (2) no material
deficiencies for any Taxes have been proposed, asserted or assessed in writing against or
with respect to any Taxes due by or Tax Returns of the Company or any of the Company
Subsidiaries which deficiencies have not since been resolved, except for Taxes proposed,
asserted or assessed that are being contested in good faith by appropriate proceedings and
for which reserves adequate in accordance with GAAP have been provided; and (3) there are no
material Liens for Taxes upon the assets of either the Company or the Company Subsidiaries
except for statutory Liens for current Taxes not yet due or Liens for Taxes that are being
contested in good faith by appropriate proceedings and for which reserves adequate in
accordance with GAAP have been provided. None of the Company or any of the Company
Subsidiaries has been a “distributing corporation” or a “controlled corporation” in any
distribution occurring during the last two years in which the parties to such distribution
treated the distribution as one to which Section 355 of the Internal Revenue Code of 1986,
as amended (the “Code”) is applicable. None of the Company or any Company Subsidiary
has engaged in any transaction that is a “listed transaction” for federal income tax
purposes within the meaning of Treasury Regulations section 1.6011-4, which has not yet been
the subject of an audit. For purposes of this Agreement, “Taxes” shall mean all
taxes, charges, levies, penalties or other assessments imposed by any United States federal,
state, local or foreign taxing authority, including any income, excise, property, sales,
transfer, franchise, payroll, withholding, social security or other taxes, together with any
interest or penalties attributable thereto, and any payments made or owing to any other
person measured by such taxes, charges, levies, penalties or other assessment, whether
pursuant to a tax indemnity agreement, tax sharing payment or otherwise (other than pursuant
to commercial agreements or Benefit Plans). For purposes of this Agreement, “Tax
Return”

8

 

shall mean any return, report, information return or other document (including any
related or supporting information) required to be filed with any taxing authority with
respect to Taxes, including without limitation all information returns relating to Taxes of
third parties, any claims for refunds of Taxes and any amendments or supplements to any of
the foregoing.

     (j) Absence of Certain Changes. Since December 31, 2007 until the date hereof,
(1) the Company and the Company Subsidiaries have conducted their respective businesses in
all material respects in the ordinary course, consistent with prior practice, (2) except (A)
for any publicly disclosed ordinary dividends on the Common Stock, (B) pursuant to any
cashless exercise provisions of any Company stock options or pursuant to the surrender of
shares to the Company or the withholding of shares by the Company to cover tax withholding
obligations under the Benefit Plans, and (C) for any repurchases of Common Stock under
announced repurchase programs, the Company has not made or declared any distribution in cash
or in kind to its stockholders or issued or repurchased any shares of its capital stock or
other equity interests and (3) no event or events have occurred that has had or would
reasonably be expected to result in a Material Adverse Effect.

     (k) No Undisclosed Liabilities. Neither the Company nor any of the Company
Subsidiaries has any material liabilities or obligations of any nature (absolute, accrued,
contingent or otherwise) which are not properly reflected or reserved against in the Company
Financial Statements to the extent required to be so reflected or reserved against in
accordance with GAAP, except for (1) liabilities that have arisen since December 31, 2007 in
the ordinary course of business or of a nature and amount consistent with past practice and
(2) contractual liabilities under (other than liabilities arising from any breach or
violation of) agreements Previously Disclosed or not required by this Agreement to be so
disclosed.

     (l) Commitments and Contracts. The Company has Previously Disclosed or provided
or made available to the Investor or its representatives true, correct and complete copies
of, each contract or agreement that is a “material contract” (as such term is defined in
Item 601(b)(10) of Regulation S-K under the Securities Act) to which the Company or any
Company Significant Subsidiary is a party or subject (each, a “Company Significant
Agreement”). (i) Each of the Company Significant Agreements is valid and binding on the
Company and the Company Significant Subsidiaries, as applicable, and in full force and
effect; (ii) the Company and each of the Company Significant Subsidiaries, as applicable,
are in all material respects in compliance with and have in all material respects performed
all obligations required to be performed by them to date under each Company Significant
Agreement; and (iii) as of the date hereof, to the Company’s knowledge, neither the Company
nor any of the Company Significant Subsidiaries has received notice of any material
violation or default (or any condition which with the passage of time or the giving of
notice would cause such a violation of or a default) by any party under any Company
Significant Agreement.

     (m) Offering of Securities. Neither the Company nor any person acting on its
behalf has taken any action (including any offering of any securities of the Company

9

 

under circumstances which would require the integration of such offering with the
offering of any of the Securities to be issued pursuant to this Agreement under the
Securities Act, and the rules and regulations of the SEC promulgated thereunder) which might
subject the offering, issuance or sale of any of the Securities to the Investor pursuant to
this Agreement to the registration requirements of the Securities Act.

     (n) Status of Securities. The Preferred Stock Certificate of Designations is
being concurrently filed with the Secretary of State of the State of Illinois in accordance
with the Illinois Business Corporation Act. The shares of Convertible Preferred Stock have
been duly authorized by all necessary corporate action. When issued and sold against
receipt of the consideration therefor as provided in this Agreement, such shares of
Convertible Preferred Stock will be validly issued, fully paid and nonassessable and will
not be subject to any Liens or preemptive or similar rights of any other stockholder of the
Company. The shares of Common Stock issuable upon the conversion of the Convertible
Preferred Stock have been duly authorized by all necessary corporate action and when so
issued upon such conversion or exercise will be validly issued, fully paid and
nonassessable, will not be subject to any Liens or subject the holders thereof to personal
liability and will not be subject to preemptive or similar rights of any other stockholder
of the Company.

     (o) Litigation and Other Proceedings. There is no pending or, to the knowledge
of the Company, threatened, claim, action, suit, investigation or proceeding, against the
Company or any Company Subsidiary or to which any of their assets are subject, nor is the
Company or any Company Subsidiary subject to any order, judgment or decree, in each case
except as are disclosed in the Company reports filed with the SEC or which are not required
to be disclosed pursuant to the Securities Act or the Exchange Act, or the rules and
regulations promulgated thereunder. Except as are disclosed in the Company reports filed
with the SEC or which are not required to be disclosed pursuant to the Securities Act or the
Exchange Act, or the rules and regulations promulgated thereunder, there is no unresolved
violation, criticism or exception by any Governmental Entity with respect to any report or
relating to any examinations or inspections of the Company or any Company Subsidiaries.

     (p) Compliance with Laws. The Company and each Company Subsidiary have all
material permits, licenses, franchises, authorizations, orders and approvals of, and have
made all filings, applications and registrations with, Governmental Entities that are
required in order to permit them to own or lease their properties and assets and to carry on
their business as presently conducted and that are material to the business of the Company
or such Company Subsidiary. The Company and each Company Subsidiary has complied in all
material respects and is not in default or violation in any respect of, and none of them is,
to the knowledge of the Company, under investigation with respect to or, to the knowledge of
the Company, has been threatened to be charged with or given notice of any material
violation of, any applicable material domestic (federal, state or local) or foreign law,
statute, ordinance, license, rule, regulation, policy or guideline, order, demand, writ,
injunction, decree or judgment of any Governmental Entity, other than such noncompliance,
defaults or violations that would not have or reasonably be expected to result in a Material
Adverse Effect. Except for statutory or regulatory

10

 

restrictions of general application, no Governmental Entity has placed any material
restriction on the business or properties of the Company or any Company Subsidiary.

     (q) Risk Management Instruments. Except as has not had or would not reasonably
be expected to result in a Material Adverse Effect, all material derivative instruments,
including, swaps, caps, floors and option agreements, whether entered into for the Company’s
own account, or for the account of one or more of the Company Subsidiaries, were entered
into (1) only in the ordinary course of business, (2) in accordance with prudent practices
and in all material respects with all applicable laws, rules, regulations and regulatory
policies and (3) with counterparties believed to be financially responsible at the time; and
each of them constitutes the valid and legally binding obligation of the Company or one of
the Company Subsidiaries, enforceable in accordance with its terms, except as may be limited
by applicable bankruptcy, insolvency, fraudulent transfer, moratorium or other laws relating
to or affecting the enforcement of creditors’ rights generally or by general equitable
principles. Neither the Company or the Company Subsidiaries, nor, to the knowledge of the
Company, any other party thereto, is in material breach of any of its obligations under any
such agreement or arrangement.

     (r) Anti-takeover Provisions Not Applicable. The Board of Directors has taken
all necessary action to ensure that the transactions contemplated by the Transaction
Documents and any of the transactions contemplated thereby will be deemed to be exceptions
to the provisions of Section 11.75 of the Illinois Business Corporation Act, and that any
other similar “moratorium,” “control share,” “fair price,” “takeover” or “interested
stockholder” law does not and will not apply to this Agreement or to any of the transactions
contemplated by the Transaction Documents.

     (s) Brokers and Finders. Neither the Company nor any Company Subsidiary nor
any of their respective officers, directors, employees or agents has employed any broker or
finder or incurred any liability for any financial advisory fees, brokerage fees,
commissions or finder’s fees, and no broker or finder has acted directly or indirectly for
the Company or any Company Subsidiary, in connection with this Agreement or the transactions
contemplated hereby.

     (t) Registration Exemption. Based, in part, upon the representations and
warranties of the Investor contained in Section 2.3(c), the Company is not required
by applicable law or regulation in connection with the offer, sale and delivery of the
Securities to the Investor in the manner contemplated by this Agreement to register the
Securities under the Securities Act or any state securities laws.

     (u) Agreements with Regulatory Agencies. Neither the Company nor any Company
Subsidiary is subject to any cease-and-desist or other similar order or enforcement action
issued by, or is a party to any written agreement, consent agreement or memorandum of
understanding with, or is a party to any commitment letter or similar undertaking to, or is
subject to any capital directive by, or since December 31, 2006, has adopted any board
resolutions at the request of, any Governmental Entity that currently restricts in any
material respect the conduct of its business or that in any material manner

11

 

relates to its capital adequacy, its liquidity and funding policies and practices, its
ability to pay dividends, its credit, risk management or compliance policies, its internal
controls, its management or its operations or business (each item in this sentence, a
“Regulatory Agreement”), nor has the Company or any Company Subsidiary been advised
since December 31, 2006 and until the date hereof by any Governmental Entity that it is
considering issuing, initiating, ordering, or requesting any such Regulatory Agreement. The
Company and each Company Subsidiary are in compliance in all material respects with each
Regulatory Agreement to which it is party or subject, and neither the Company nor any
Company Subsidiary has received any notice from any Governmental Entity indicating that
either the Company or any Company Subsidiary is not in compliance in all material respects
with any such Regulatory Agreement. Neither the Company nor any of the Company Banks have,
during the Company’s ownership of such Company Banks, been notified by any Governmental
Authority that it is in “Troubled Condition” as defined in 12 C.F.R. 225.71(d); 12 C.F.R.
5.51(c)(6); or 12 C.F.R. 303.101(c). The Company and each Company Bank is “Well Managed” as
defined in 12 C.F.R. 5.34(d)(3); 12 C.F.R. 225.2(s); 12 C.F.R. 208.77(h); and 12. C.F.R.
362.17(e), respectively.

     (v) Mortgage Banking Business. To the knowledge of the Company (which solely
for purposes of this Section 2.2(v) shall include the officer of the Company in
charge of the Company’s mortgage banking business), and except as has not had and would not
reasonably be expected to have a Material Adverse Effect:

(1) The Company and each Company Subsidiary has complied with, and all documentation
in connection with the origination, processing, underwriting and credit approval of
any mortgage loan originated, purchased or serviced by the Company or any Company
Subsidiary satisfied, (A) all applicable federal, state and local laws, rules and
regulations with respect to the origination, insuring, purchase, sale, pooling,
servicing, subservicing, or filing of claims in connection with mortgage loans,
including all laws relating to real estate settlement procedures, consumer credit
protection, truth in lending laws, usury limitations, fair housing, transfers of
servicing, collection practices, equal credit opportunity and adjustable rate
mortgages, (B) the responsibilities and obligations relating to mortgage loans set
forth in any agreement between the Company or any Company Subsidiary and any Agency,
Loan Investor or Insurer, (C) the applicable rules, regulations, guidelines,
handbooks and other requirements of any Agency, Loan Investor or Insurer and (D) the
terms and provisions of any mortgage or other collateral documents and other loan
documents with respect to each mortgage loan; and

(2) Except as Previously Disclosed, no Agency, Loan Investor or Insurer has (A)
claimed in writing that the Company or any Company Subsidiary has violated or has
not complied with the applicable underwriting standards with respect to mortgage
loans sold by the Company or any Company Subsidiary to a Loan Investor or Agency, or
with respect to any sale of mortgage servicing rights to a Loan Investor, (B)
imposed in writing restrictions on the activities (including commitment authority)
of the Company or any Company Subsidiary or (C)

12

 

indicated in writing to the Company or any Company Subsidiary that it has terminated
or intends to terminate its relationship with the Company or any Company Subsidiary
for poor performance, poor loan quality or concern with respect to the Company’s or
any Company Subsidiary’s compliance with laws.

For purposes of this Section 2.2(v):

(A) “Agency” shall mean the Federal Housing Administration, the Federal Home
Loan Mortgage Corporation, the Federal National Mortgage Association, the Government
National Mortgage Association, or any other federal or state agency with authority
to (i) authority to determine any investment, origination, lending or servicing
requirements with regard to mortgage loans originated, purchased or serviced by the
Company or any Company Subsidiary or (ii) originate, purchase, or service mortgage
loans, or otherwise promote mortgage lending, including without limitation state and
local housing finance authorities.

(B) “Loan Investor” shall mean any person (including an Agency) having a
beneficial interest in any mortgage loan originated, purchased or serviced by the
Company or any Company Subsidiary or a security backed by or representing an
interest in any such mortgage loan; and

(C) “Insurer” means a person who insures or guarantees for the benefit of
the mortgagee all or any portion of the risk of loss upon borrower default on any of
the mortgage loans originated, purchased or serviced by the Company or any Company
Subsidiary, including, the Federal Housing Administration, the United States
Department of Veterans’ Affairs, the Rural Housing Service of the U.S. Department of
Agriculture and any private mortgage insurer, and providers of hazard, title or
other insurance with respect to such mortgage loans or the related collateral.

(w) Credit Reporting.

(1) The Company has provided Investor with a true and complete list of (A) all
Past Due, nonaccrual, and restructured loans of $5 million or more made by the
Company or any Company Bank as of June 30, 2008, and (B) any loan of $5 million or
more that would be graded “substandard,” “doubtful” or “loss” in connection with a
state or federal bank inspection or bank holding company inspection, and have duly
reported all Past Due loans, nonaccrual loans, and restructured loans on Schedule
RC-N of form FFIEC 031 or 041, as applicable, as of June 30, 2008.

(2) Neither the Company nor any of the Company Banks are under an order,
directive, or request in any form from any federal or state banking agency to
increase the provision to the ALLL for any current reporting period or any other or
reporting period ended during the previous twelve (12) months.

(3) The Company and the Company Banks have developed and implemented a loan review
system that meets in all material respects the applicable standards of

13

 

the federal banking agencies that are the primary regulators for each of them as
defined in the Interagency Policy Statement on the Allowance for Loan and Lease
Losses, Attachment 1.

     2.3 Representations and Warranties of the Investor. Except as Previously Disclosed,
the Investor hereby represents and warrants to the Company, as of the date of this Agreement, that:

     (a) Organization and Authority. The Investor is duly organized, validly
existing and in good standing under the laws of the jurisdiction of its organization, is
duly qualified to do business and is in good standing in all jurisdictions where its
ownership or leasing of property or the conduct of its business requires it to be so
qualified and where failure to be so qualified would be reasonably expected to materially
and adversely affect the Investor’s ability to perform its obligations under this Agreement
or consummate the transactions contemplated hereby on a timely basis, and the Investor has
the corporate or other power and authority and governmental authorizations to own its
properties and assets and to carry on its business as it is now being conducted.

     (b) Authorization. (1) The Investor has the corporate or other power and
authority to enter into this Agreement and to carry out its obligations hereunder. The
execution, delivery and performance of this Agreement by the Investor and the consummation
of the transactions contemplated hereby have been duly authorized by the Investor’s board of
directors, general partner or managing members, as the case may be, and no further approval
or authorization by any of its partners or other equity owners, as the case may be, is
required. This Agreement has been duly and validly executed and delivered by the Investor
and assuming due authorization, execution and delivery by the Company, is a valid and
binding obligation of the Investor enforceable against the Investor in accordance with its
terms (except as enforcement may be limited by applicable bankruptcy, insolvency,
reorganization, moratorium, fraudulent transfer and similar laws of general applicability
relating to or affecting creditors’ rights or by general equity principles).

     (2) Neither the execution, delivery and performance by the Investor of this
Agreement, nor the consummation of the transactions contemplated hereby, nor
compliance by the Investor with any of the provisions hereof, will (A) violate,
conflict with, or result in a breach of any provision of, or constitute a default
(or an event which, with notice or lapse of time or both, would constitute a
default) under, or result in the termination of, or accelerate the performance
required by, or result in a right of termination or acceleration of, or result in
the creation of any Lien upon any of the properties or assets of the Investor under
any of the terms, conditions or provisions of (i) its certificate of limited
partnership or partnership agreement or similar governing documents or (ii) any
note, bond, mortgage, indenture, deed of trust, license, lease, agreement or other
instrument or obligation to which the Investor is a party or by which it may be
bound, or to which the Investor or any of the properties or assets of the Investor
may be subject, or (B) subject to compliance with the statutes and regulations
referred to in the next paragraph, violate any law, statute, ordinance, rule or
regulation,

14

 

permit, concession, grant, franchise or any judgment, ruling, order, writ,
injunction or decree applicable to the Investor or any of its properties or assets
except in the case of clauses (A)(ii) and (B) for such violations, conflicts and
breaches as would not reasonably be expected to materially and adversely affect the
Investor’s ability to perform its respective obligations under this Agreement or
consummate the transactions contemplated hereby on a timely basis.

     (3) Other than the securities or blue sky laws of the various states, no notice
to, registration, declaration or filing with, exemption or review by, or
authorization, order, consent or approval of, any Governmental Entity, nor
expiration or termination of any statutory waiting period, is necessary for the
consummation by the Investor of the transactions contemplated by this Agreement.

     (c) Purchase for Investment. The Investor acknowledges that the Securities
have not been registered under the Securities Act or under any state securities laws and are
“restricted securities” within the meaning of Rule 144 and may not be sold, transferred or
otherwise disposed of without registration under the Securities Act or an exemption
therefrom and acknowledges that each certificate evidencing the Convertible Preferred Stock
and shares of Common Stock issuable upon conversion thereof will bear a legend to the effect
set forth in Section 4.3. The Investor (1) is acquiring the Securities pursuant to
an exemption from registration under the Securities Act solely for investment with no
present intention to distribute any of the Securities to any person, without prejudice,
however, to the Investor’s right at all times to sell or otherwise dispose of all or any
part of such Securities in compliance with applicable federal and state securities laws
(and, subject to this sentence and the provisions of Section 4.2, nothing contained
herein shall be deemed a representation or warranty by the Investor to hold any Securities
for any period of time), (2) will not sell or otherwise dispose of any of the Securities,
except in compliance with the registration requirements or exemption provisions of the
Securities Act and any other applicable securities laws, (3) has such knowledge and
experience in financial and business matters and in investments of this type that it is
capable of evaluating the merits and risks of its investment in the Securities and of making
an informed investment decision, and (4) is an “accredited investor” (as that term is
defined by Rule 501 of the Securities Act).

     (d) Ownership. As of the date of this Agreement, neither the Investor nor any
of its Affiliates are the owners of record or the Beneficial Owners of shares of Common
Stock or securities convertible into or exchangeable for Common Stock other than as
specified in Schedule 2.3(d).

     (e) Brokers and Finders. Neither the Investor nor its Affiliates, any of their
respective officers, directors, employees or agents has employed any broker or finder or
incurred any liability for any financial advisory fees, brokerage fees, commissions or
finder’s fees, and no broker or finder has acted directly or indirectly for the Investor, in
connection with this Agreement or the transactions contemplated hereby.

15

 

ARTICLE III

COVENANTS

     3.1 Other Actions.

     The Investor, on the one hand, and the Company, on the other hand, will cooperate and consult
with the other and use reasonable best efforts to perform the covenants contemplated by this
Agreement. Each party shall execute and deliver both before and after the Closing such further
certificates, agreements and other documents and take such other actions as the other parties may
reasonably request to consummate or implement such transactions or to evidence such events or
matters.

     3.2 Access, Information and Confidentiality.

     (a) From the date hereof, until the date when the Investor holds less than 50% of the
Convertible Preferred Stock or Common Stock into which shares of Convertible Preferred Stock
owned by the Investor are convertible (the “Qualifying Ownership Interest”), the
Company will permit the Investor to visit and inspect, at the Investor’s expense, the
properties of the Company and the Company Subsidiaries, to examine the corporate books and
to discuss the affairs, finances and accounts of the Company and the Company Subsidiaries
with the principal officers of the Company, all upon reasonable notice and at such
reasonable times and as often as the Investor may reasonably request. Any investigation
pursuant to this Section 3.2 shall be conducted during normal business hours and in
such manner as not to interfere unreasonably with the conduct of the business of the
Company, and nothing herein shall require the Company or any Company Subsidiary to disclose
any information to the extent (i) prohibited by applicable law or regulation, (ii) that the
Company reasonably believes such information to be competitively sensitive proprietary
information (except to the extent the Investor provides assurances reasonably acceptable to
the Company that such information shall not be used by the Investor or its Affiliates to
compete with the Company and Company Subsidiaries), (iii) that is protected by
attorney-client privilege, or (iv) that such disclosure would reasonably be expected to
cause a violation of any agreement to which the Company or any Company Subsidiary is a party
or would cause a risk of a loss of privilege to the Company or any Company Subsidiary
(provided that the Company shall use commercially reasonable efforts to make appropriate
substitute disclosure arrangements under circumstances where the restrictions in this clause
(iii) apply).

     (b) Each party to this Agreement will hold, and will use its best efforts to cause its
respective Affiliates and their directors, officers, employees, agents, consultants and
advisors to hold, in strict confidence, unless disclosure to a regulatory authority is
necessary or appropriate in connection with any necessary regulatory approval or unless
disclosure is required by judicial or administrative process or, in the written opinion of
its counsel, by other requirement of law or the applicable requirements of any regulatory
agency or relevant stock exchange, all non-public records, books, contracts, instruments,
computer data and other data and information (collectively, “Information”)
concerning the other party hereto furnished to it by such other party or its representatives
pursuant to

16

 

this Agreement (except to the extent that such information can be shown to have been
(1) previously known by such party on a non-confidential basis, (2) in the public domain
through no fault of such party or (3) later lawfully acquired from other sources by the
party to which it was furnished), and, subject to the foregoing, neither party hereto shall
release or disclose such Information to any other person, except its auditors, attorneys,
financial advisors, other consultants and advisors.

ARTICLE IV

ADDITIONAL AGREEMENTS

     4.1 Standstill Agreement. The Investor agrees that, without the prior written
approval of the Company, until the date that is twelve months from the Closing Date, neither the
Investor nor any of its Affiliates will, directly or indirectly:

     (a) in any way acquire, offer or propose to acquire or agree to acquire, Beneficial
Ownership of any Voting Securities if such acquisition would result in the Investor and its
Affiliates having Beneficial Ownership of 9.9% or more of the outstanding shares of voting
securities (including the Common Stock of the Company and, for the avoidance of doubt, for
purposes of calculating Beneficial Ownership of the Investor and its Affiliates hereunder,
(x) any security that is convertible into, or exercisable for, any such voting securities or
Common Stock that is Beneficially Owned by the Investor or its Affiliates shall be treated
as fully converted or exercised, as the case may be, into the underlying voting securities
or Common Stock, and (y) any security convertible into, or exercisable for, the Common Stock
that is Beneficially Owned by any person other than the Investor or any of its Affiliates
shall not be taken into account), other than solely as a result of the exercise of any
rights or obligations set forth in this Agreement;

     (b) enter into or agree, offer, propose or seek (whether publicly or otherwise) to
enter into, or otherwise be involved in or part of, any acquisition transaction, merger or
other business combination relating to all or part of the Company or any of the Company
Subsidiaries or any acquisition transaction for all or part of the assets of the Company or
any Company Subsidiary or any of their respective businesses;

     (c) make, or in any way participate in, any “solicitation” of “proxies” (as such terms
are defined under Regulation 14A under the Exchange Act, disregarding clause (iv) of Rule
14a-1(1)(2) and including any otherwise exempt solicitation pursuant to Rule 14a-2(b)) to
vote, or seek to advise or influence any person or entity with respect to the voting of, any
voting securities of the Company or any Company Subsidiary;

     (d) call or seek to call a meeting of the stockholders of the Company or any of the
Company Subsidiaries or initiate any shareholder proposal for action by stockholders of the
Company or any of the Company Subsidiaries, form, join or in any way participate in a
“group” (within the meaning of Section 13(d)(3) of the Exchange Act and the rules and
regulations thereunder) with respect to any Voting Securities, or seek, propose or

17

 

otherwise act alone or in concert with others, to influence or control the management,
Board of Directors or policies of the Company or any Company Subsidiaries; or

     (e) bring any action or otherwise act to contest the validity of this Section
4.1 or seek a release of the restrictions contained herein, or make a request to amend
or waive any provision of this Section 4.1;

provided, that (i) Section 4.1(a) shall not apply to any investment activity related to
employee benefit or retirement plans conducted in the ordinary course of business by any portfolio
company with respect to which such Investor is not the party exercising control over either the day
to day operations of such portfolio company or the decision to purchase Voting Securities; provided
that such Investor does not (A) directly or indirectly provide or make available to such entity any
non-public information concerning the Company or any Company Subsidiary and such portfolio company
is not acting at the request or direction of or in coordination with such Investor or (B) cause
such portfolio company or its directors, officers, managers, members or other representatives to
take any action that Investor would be prohibited from doing hereby; and provided, further, that
ownership of such shares is not attributed to such Investor under 12 C.F.R. Part 225 and (ii)
nothing in this Section 4.1 shall prevent the Investor or its Affiliates from voting any
Voting Securities then Beneficially Owned by the Investor or its Affiliates in any manner.

     4.2 Transfer Restrictions.

     (a) Restrictions on Transfer. Except as otherwise expressly permitted in the
Transaction Documents, the Investor will not transfer, sell, assign, pledge or otherwise
dispose of, or agree to take any such action (“Transfer”) any Securities acquired
pursuant to this Agreement, except as follows: following the date that is twelve months from
the Closing Date, the Investor may Transfer the Securities owned by it; provided, that,
except for Transfers pursuant to Rule 144 under the Securities Act or a registered
underwritten offering, the Investor must reasonably believe that any transferee in any such
Transfer would not own more than 4.9% of the Common Stock (or securities convertible or
exercisable for Common Stock) of the Company after such Transfer unless being transferred to
a person such Investor reasonably believes would upon such purchase be eligible to file a
Schedule 13G in respect thereof; provided further, that, other than a Transfer which is (i)
in connection with the conversion of Convertible Preferred Stock and (ii) is for the purpose
of preventing Investor from owning in excess of 9.9% of the Common Stock outstanding at such
time, no such Transfer shall be permitted unless the aggregate liquidation preference (or,
if there is no liquidation preference, fair market value) of Securities to be Transferred
exceeds $5,000,000. The restrictions set forth in this Section 4.2(a) shall
terminate and be of no further effect on the second anniversary of the Closing Date.

     (b) Permitted Transfers. Notwithstanding Section 4.2(a), or anything to
the contrary contained in any Transaction Document, the Investor shall be permitted to
Transfer any portion or all of its Securities at any time under the following circumstances:

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     (1) Transfers to (A) any Affiliate of the Investor under common control with
Investor’s ultimate parent, general partner or investment advisor or (B) any limited
partner or shareholder of the Investor, but in each case only if the transferee
agrees in writing for the benefit of the Company (with a copy thereof to be
furnished to the Company) to be bound by the terms of this Agreement (any such
transferee shall be included in the term “Investor”).

     (2) Transfers pursuant to a merger, tender offer or exchange offer or other
business combination, acquisition of assets or similar transaction or change of
control involving the Company or any Company Subsidiaries; provided, that such
transaction has been approved by or not opposed by the Board of Directors.

     (c) Hedging. The Investor agrees that, during the one-year period following the
Closing, it shall not, directly or indirectly, enter into any hedging agreement, arrangement
or transaction, the value of which is based upon the value of any of the Securities
purchased pursuant to this Agreement, except for transactions involving an index-based
portfolio of securities that includes Common Stock (provided that the value of such Common
Stock in such portfolio is not more than 5% of the total value of the portfolio of
securities).

     4.3 Legend. (a) The Investor agrees that all certificates or other instruments
representing the Securities subject to this Agreement will bear a legend substantially to the
following effect:

     (1) THE SECURITIES REPRESENTED BY THIS INSTRUMENT HAVE NOT BEEN REGISTERED
UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR SECURITIES LAWS OF ANY STATE AND
MAY NOT BE TRANSFERRED, SOLD OR OTHERWISE DISPOSED OF EXCEPT WHILE A REGISTRATION
STATEMENT RELATING THERETO IS IN EFFECT UNDER SUCH ACT AND APPLICABLE STATE
SECURITIES LAWS OR PURSUANT TO AN EXEMPTION FROM REGISTRATION UNDER SUCH ACT OR SUCH
LAWS.

     (2) THE SECURITIES REPRESENTED BY THIS INSTRUMENT ARE SUBJECT TO THE TERMS AND
CONDITIONS OF AN INVESTMENT AGREEMENT BETWEEN THE CORPORATION AND THE HOLDER HEREOF,
AND MAY NOT BE SOLD, ASSIGNED, PLEDGED, TRANSFERRED OR ENCUMBERED EXCEPT IN
ACCORDANCE WITH THE TERMS AND PROVISIONS OF SAID AGREEMENT, A COPY OF WHICH IS ON
FILE AT THE PRINCIPAL EXECUTIVE OFFICES OF THE CORPORATION IN LAKE FOREST, ILLINOIS
AND WILL BE FURNISHED TO THE HOLDER OF THIS CERTIFICATE UPON REQUEST AND WITHOUT
CHARGE.

     (b) Upon request of the Investor, upon receipt by the Company of an opinion of counsel
reasonably satisfactory to the Company to the effect that such legend is no longer required
under the Securities Act, the Company shall promptly cause clause (1) of

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the legend to be removed from any certificate for any Securities to be Transferred in
accordance with the terms of this Agreement and following such time as the applicable shares
of Common Stock issuable upon conversion of the Convertible Preferred Stock can be sold by
the Investor or the holder thereof without volume restrictions pursuant to Rule 144 and
clause (2) of the legend shall be removed upon the expiration of such transfer and other
restrictions set forth in this Agreement. The Investor acknowledges that the Securities
have not been registered under the Securities Act or under any state securities laws and
agrees that it will not sell or otherwise dispose of any of the Securities, except in
compliance with the registration requirements or exemption provisions of the Securities Act
and any other applicable securities laws.

     4.4 Reservation for Issuance. The Company will reserve that number of shares of
Common Stock sufficient for issuance upon exercise or conversion of Securities owned at any time by
the Investor.

     4.5 Certain Transactions. The Company will not merge or consolidate into, or sell,
transfer or lease all or substantially all of its property or assets to, any other party unless the
successor, transferee or lessee party, as the case may be (if not the Company), expressly assumes
the due and punctual performance and observance of each and every covenant and condition of this
Agreement to be performed and observed by the Company.

     4.6 Indemnity. (a) The Company agrees to indemnify and hold harmless the Investor and
its Affiliates and their respective officers, directors, partners, members and employees, and each
person who controls them within the meaning of the Exchange Act and the rules and regulations
promulgated thereunder, to the fullest extent lawful, from and against any and all actions, suits,
claims, proceedings, costs, losses, liabilities, damages, expenses (including reasonable attorneys’
fees and disbursements), amounts paid in settlement and other costs (collectively,
“Losses”) arising out of or resulting from (1) any inaccuracy in or breach of the Company’s
representations or warranties in this Agreement or (2) the Company’s breach of agreements or
covenants made by the Company in this Agreement or (3) any action, suit, claim, proceeding or
investigation by any Governmental Entity, stockholder of the Company or any other person (other
than the Company) relating to this Agreement or the transactions contemplated hereby (other than
any Losses to the extent attributable solely to the acts, errors or omissions on the part of the
Investor, but not including the transactions contemplated hereby).

     (b) The Investor agrees to indemnify and hold harmless each of the Company and its
Affiliates and each of their officers, directors, partners, members and employees, and each
person who controls the Company within the meaning of the Exchange Act and the rules and
regulations promulgated thereunder, to the fullest extent lawful, from and against any and
all Losses arising out of or resulting from (1) any inaccuracy in or breach of the
Investor’s representations or warranties in this Agreement or (2) the Investor’s breach of
agreements or covenants made by Investor in this Agreement.

     (c) A party entitled to indemnification hereunder (each, an “Indemnified
Party”) shall give written notice to the party indemnifying it (the “Indemnifying
Party”) of any claim with respect to which it seeks indemnification promptly after the
discovery by such Indemnified Party of any matters giving rise to a claim for
indemnification;

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provided, that the failure of any Indemnified Party to give notice as provided herein
shall not relieve the Indemnifying Party of its obligations under this Section 4.6
unless and to the extent that the Indemnifying Party shall have been actually prejudiced by
the failure of such Indemnified Party to so notify such party. Such notice shall describe
in reasonable detail such claim. In case any such action, suit, claim or proceeding is
brought against an Indemnified Party, the Indemnified Party shall be entitled to hire, at
its own expense, separate counsel and participate in the defense thereof; provided,
however, that the Indemnifying Party shall be entitled to assume and conduct the
defense thereof, unless the counsel to the Indemnified Party advises such Indemnifying Party
in writing that such claim involves a conflict of interest (other than one of a monetary
nature) that would reasonably be expected to make it inappropriate for the same counsel to
represent both the Indemnifying Party and the Indemnified Party, in which case the
Indemnified Party shall be entitled to retain its own counsel at the cost and expense of the
Indemnifying Party (except that the Indemnifying Party shall only be liable for the legal
fees and expenses of one law firm for all Indemnified Parties, taken together with respect
to any single action or group of related actions). If the Indemnifying Party assumes the
defense of any claim, all Indemnified Parties shall thereafter deliver to the Indemnifying
Party copies of all notices and documents (including court papers) received by the
Indemnified Party relating to the claim, and each Indemnified Party shall cooperate in the
defense or prosecution of such claim. Such cooperation shall include the retention and (upon
the Indemnifying Party’s request) the provision to the Indemnifying Party of records and
information that are reasonably relevant to such claim, and making employees available on a
mutually convenient basis to provide additional information and explanation of any material
provided hereunder. The Indemnifying Party shall not be liable for any settlement of any
action, suit, claim or proceeding effected without its written consent; provided, however,
that the Indemnifying Party shall not unreasonably withhold or delay its consent. The
Indemnifying Party further agrees that it will not, without the Indemnified Party’s prior
written consent (which shall not be unreasonably withheld or delayed), settle or compromise
any claim or consent to entry of any judgment in respect thereof in any pending or
threatened action, suit, claim or proceeding in respect of which indemnification has been
sought hereunder unless such settlement or compromise includes an unconditional release of
such Indemnified Party from all liability arising out of such action, suit, claim or
proceeding.

     (d) For purposes of the indemnity contained in Section 4.6(a)(1) and
Section 4.6(b)(1), all qualifications and limitations set forth in the parties’
representations and warranties (other than Section 2.2(j)(3)) as to “materiality”
and “Material Adverse Effect,” shall be disregarded in determining whether there shall have
been any inaccuracy in or breach of any representations and warranties in this Agreement.

     (e) The Company shall not be required to indemnify the Indemnified Parties pursuant to
Section 4.6(a)(1), unless the aggregate amount of all Losses incurred with respect
to all claims pursuant to Section 4.6(a)(1) exceed $1 million (the “Threshold
Amount”), in which event the Company shall be responsible for only the amount of such
Losses in excess of the Threshold Amount. Investor shall not be required to indemnify the
Indemnified Parties pursuant to Section 4.6(b)(1), disregarding all qualifications
and limitations set forth in such representations and warranties as to “materiality” and

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“Material Adverse Effect,” (A) with respect to any De Minimis Claim and (B) unless and
until the aggregate amount of all Losses incurred with respect to all claims (other than De
Minimis Claims) pursuant to Section 4.6(b)(1) exceed the Threshold Amount, in which
event Investor shall be responsible for only the amount of such Losses in excess of the
Threshold Amount. The cumulative indemnification obligation of (1) the Company to Investor
and all of the Indemnified Parties affiliated with (or whose claims are permitted by virtue
of their relationship with) Investor or (2) Investor to the Company and the Indemnified
Parties affiliated with (or whose claims are permitted by virtue of their relationship with
the) Company, in each case for inaccuracies in or breaches of representations and
warranties, shall in no event exceed the Purchase Price.

     (f) Any claim for indemnification pursuant to this Section 4.6 for breach of
any representation or warranty can only be brought on or prior to the twelve month
anniversary of the Closing Date; provided, that if notice of a claim for indemnification
pursuant to this Section 4.6 for breach of any representation or warranty is brought
prior to the end of such period, then the obligation to indemnify in respect of such breach
shall survive as to such claim, until such claim has been finally resolved.

     (g) The indemnity provided for in this Section 4.6 shall be the sole and
exclusive monetary remedy of Indemnified Parties after the Closing for any inaccuracy of any
representation or warranty or any other breach of any covenant or agreement contained in
this Agreement; provided, that nothing herein shall limit in any way any such party’s
remedies in respect of actual fraud by any other party in connection with the transactions
contemplated hereby or the right to seek indemnity, if available, under Section
4.7(f). No party to this Agreement (or any of its Affiliates) shall, in any event, be
liable or otherwise responsible to any other party (or any of its Affiliates) for any
special, consequential or punitive damages of such other party (or any of its Affiliates)
arising out of or relating to this Agreement or the performance or breach hereof.

     (h) Any indemnification payments pursuant to this Section 4.6 shall be treated
as an adjustment to the Purchase Price for the Securities for U.S. federal income and
applicable state and local Tax purposes, unless a different treatment is required by
applicable law.

     4.7 Registration Rights.

     (a) Demand Registrations.

     (1) Requests for Registration. At any time following the first year anniversary
of the Closing Date, Investors (or permitted transferees) holding, on an
as-converted basis, more than 20% of the Registrable Securities (as defined below)
(the “Initiating Investors”) may request in writing that the Company effect
the registration of all or any part of the Registrable Securities (as defined below)
held by the Initiating Investors (a “Registration Request”). Promptly after
its receipt of any Registration Request but no later than ten days after receipt of
such Registration Request, the Company will give written notice of such request to
any known transferees, and will use its reasonable best efforts to register, in

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accordance with the provisions of this Agreement, all Registrable Securities
that have been requested to be registered in the Registration Request or by the
Investor or such transferees by written notice to the Company given within fifteen
business days after the date the Company has given such notice of the Registration
Request; provided, that the Company will not be required to effect a registration
pursuant to this Section 4.7(a)(1) unless the value of Registrable
Securities included in the Registration Request is at least $10 million or, with
respect to an underwritten offering, $10 million. The Company will pay all
Registration Expenses incurred in connection with any registration pursuant to this
Section 4.7(a). Any registration requested by the Investors pursuant to
Section 4.7(a)(1) is referred to in this Agreement as a “Demand
Registration.” For purposes of this Agreement, “Registrable Securities”
means all Common Stock issued or issuable pursuant to the conversion of the
Convertible Preferred Stock and any equity securities issued or issuable directly or
indirectly with respect to the Common Stock issued or issuable pursuant to the
conversion of the Convertible Preferred Stock by way of conversion or exchange
thereof or share dividend or share split or in connection with a combination of shares, recapitalization, reclassification, merger, amalgamation, arrangement,
consolidation or other reorganization. As to any particular securities constituting
Registrable Securities, such securities will cease to be Registrable Securities when
(w) a registration statement with respect to the sale by the holder thereof shall
have been declared effective under the Securities Act and such securities shall have
been disposed of in accordance with such registration statement, (x) they have been
sold to the public pursuant to Rule 144 or Rule 145 or other exemption from
registration under the Securities Act, (y) they have been acquired by the Company or
(z) they are able to be sold by the Investor or transferee holding such securities
without restriction as to volume or manner of sale pursuant to Rule 144 under the
Securities Act as specified in a legal opinion to such effect rendered by counsel to
the Company at its sole expense and acceptable to the affected holders and the
Company’s Common Stock transfer agent. In addition, for purposes of this Agreement,
“Registration Statement” means the prospectus and other documents filed with
the SEC to effect a registration under the Securities Act.

     (2) Limitation on Demand Registrations. The Investor will be entitled to
initiate no more than two (2) Demand Registrations, and the Company will not be
obligated to effect more than one Demand Registration in any six month period. Upon
filing a Registration Statement, the Company will use its reasonable best efforts to
keep such Registration Statement effective with the SEC at all times until the
Investor or any transferee who would require such registration to effect a sale of
the Registrable Securities no longer holds the Registrable Securities. No request
for registration will count for the purposes of the limitations in this Section
4.7(a)(2) if (i) the Investor determines in good faith to withdraw the proposed
registration prior to the effectiveness of the Registration Statement relating to
such request due to marketing conditions or regulatory reasons relating to the
Company (provided that this clause (i) shall cease to apply if Investor has
previously withdrawn a proposed registration), (ii) the Registration Statement
relating to such request is not declared effective within 210 days of the

23

 

date such Registration Statement is first filed with the SEC (other than by
reason of the Investor having refused to proceed or provide any required information
for inclusion therein) and the Investor withdraws the Registration Request prior to
such Registration Statement being declared effective, (iii) prior to the sale of at
least 85% of the Registrable Securities included in the applicable registration
relating to such request, such registration is adversely affected by any stop order,
injunction or other order or requirement of the SEC or other governmental agency or
court for any reason and the Company fails to have such stop order, injunction or
other order or requirement removed, withdrawn or resolved to the Investor’s
reasonable satisfaction within thirty days of the date of such order, (iv) more than
25% of the Registrable Securities requested by the Investor to be included in the
registration are not so included pursuant to Section 4.7(a)(6), or (v) the
conditions to closing specified in the underwriting agreement or purchase agreement
entered into in connection with the registration relating to such request, if any,
are not satisfied (other than as a result of a material default or breach thereunder
by the Investor). Notwithstanding the foregoing, the Company will pay all
Registration Expenses in connection with any request for registration pursuant to
Section 4.7(a)(1) regardless of whether or not such request counts toward
the limitation set forth above.

     (3) Short-Form Registrations. In no event shall the Company be obligated to
effect any registration other than pursuant to Form S-3 or any comparable or
successor form or forms or any similar short-form registration (“Short-Form
Registration”) unless it is not then eligible to utilize such form.

     (4) Restrictions on Demand Registrations. If the filing or initial
effectiveness of a registration statement with respect to a Demand Registration
would require the Company to make a public disclosure of material non-public
information, which disclosure in the good faith judgment of the Board of Directors
(i) would be required to be made in any Registration Statement so that such
Registration Statement would not be materially misleading, (ii) would not be
required to be made at such time but for the filing, effectiveness or continued use
of such Registration Statement, (iii) would in the good faith judgment of the Board
of Directors reasonably be expected to materially adversely affect the Company or
its business if made at such time or (iv) reasonably be excepted to interfere with
the Company’s ability to effect a planned or proposed acquisition, disposition,
financing, reorganization, recapitalization or similar transaction, then the Company
may upon giving prompt written notice of such action to the participants in such
registration (each of whom hereby agrees to maintain the confidentiality of all
information disclosed to such participants) delay the filing or initial
effectiveness of, or suspend use of, such Registration Statement; provided, that the
Company shall not be permitted to do so (x) for more than 90 days for a given
occurrence of such a circumstance, (y) more than three times during any twelve-month
period or (z) for periods exceeding, in the aggregate, 180 days during any
twelve-month period. In the event the Company exercises its rights under the
preceding sentence, the Investor or such transferees agree to suspend, promptly upon
its receipt of the notice referred to above, its use of any prospectus

24

 

relating to such registration in connection with any sale or offer to sell
Registrable Securities. If the Company so postpones the filing of a prospectus or
the effectiveness of a Registration Statement, the Investor will be entitled to
withdraw such request and, if such request is withdrawn, such registration request
will not count for the purposes of the limitation set forth in Section
4.7(a)(2). The Company will pay all Registration Expenses incurred in connection
with any such aborted registration or prospectus.

     (5) Selection of Underwriters. If the Initiating Investors intend that the
Registrable Securities covered by the Registration Request shall be distributed by
means of an underwritten offering, the Initiating Investors will so advise the
Company as a part of the Registration Request, and the Company will include such
information in the notice sent by the Company to the Investors and any known
transferees with respect to such Registration Request. In such event, the lead
underwriter to administer the offering will be chosen by the Company, subject to the
prior written consent of the participating Investors selling a majority of the
securities to be sold by the Investors in such offering, not to be unreasonably
withheld or delayed. If the offering is underwritten, the right of the Investor or
transferee to registration pursuant to this Section 4.7(a) will be
conditioned upon Investor or transferee’s participation in such underwriting and the
inclusion of Investor’s or such transferee’s Registrable Securities in the
underwriting, and each of Investor and such transferees will (together with the
Company, the participating Investors and any other transferees distributing their
securities through such underwriting) enter into an underwriting agreement in
customary form with the underwriter or underwriters selected for such underwriting.
If Investor or any transferee disapproves of the terms of the underwriting, Investor
or such transferee may elect to withdraw therefrom by written notice to the Company,
the managing underwriter and the Initiating Investors.

     (6) Priority on Demand Registrations. The Company will not include in any
underwritten registration pursuant to this Section 4.7(a) any securities
that are not Registrable Securities, without the prior written consent of the
Initiating Investors. If the managing underwriters advise the Company that in their
reasonable opinion the number of Registrable Securities (and, if permitted
hereunder, other securities requested to be included in such offering) exceeds the
number of securities that can be sold in such offering without adversely affecting
the marketability of the offering (including an adverse effect on the per share
offering price), the Company will include in such offering only such number of
securities that in the reasonable opinion of such managing underwriters can be sold
without adversely affecting the marketability of the offering (including an adverse
effect on the per share offering price), which securities will be so included in the
following order of priority: (i) first, Registrable Securities of the participating
Investors (including the Initiating Investors), pro rata (if applicable), based on
the number of Registrable Securities owned by each such Investor, (ii) second,
Registrable Securities of any transferee who has delivered written requests for
registration pursuant to Section 4.7(a)(1), pro rata on the basis of the

25

 

aggregate number of Registrable Securities owned by each such person, and (iii)
third, any other securities of the Company that have been requested to be so
included, subject to the terms of this Agreement.

     (7) Effective Registration Statement. A registration requested pursuant to
Section 4.7(a)(1) shall not be deemed to have been effected unless it is
declared effective by the SEC or is automatically effective upon filing pursuant to
Rule 462 of the Securities Act and remains effective for the period specified in
Section 4.7(a)(2).

     (b) Piggyback Registrations.

     (1) Right to Piggyback. Whenever the Company proposes to register any of its
securities, other than a registration pursuant to Section 4.7(a)(1) or a
Special Registration (as defined below), and the registration form to be filed may
be used for the registration or qualification for distribution of Registrable
Securities, the Company will give prompt written notice to the Investor and all
known transferees of its intention to effect such a registration (but in no event
less than 10 days prior to the anticipated filing date) and, subject to Section
4.7(b)(4), will include in such registration all Registrable Securities with
respect to which the Company has received written requests for inclusion therein
within ten business days after the date of the Company’s notice (a “Piggyback
Registration”). Any such person that has made such a written request may
withdraw its Registrable Securities from such Piggyback Registration by giving
written notice to the Company and the managing underwriter, if any, on or before the
fifth business day prior to the planned effective date of such Piggyback
Registration. The Company may terminate or withdraw any registration under this
Section 4.7(b)(1) prior to the effectiveness of such registration, whether
or not the Investor or any transferees have elected to include Registrable
Securities in such registration. “Special Registration” means the
registration of (i) equity securities and/or options or other rights in respect
thereof solely registered on Form S-4 or Form S-8 (or successor form) or (ii) shares
of equity securities and/or options or other rights in respect thereof to be offered
to directors, members of management, employees, consultants, customers, lenders or
vendors of the Company or its direct or indirect Subsidiaries or in connection with
dividend reinvestment plans.

     (2) Underwritten Registration. If the registration referred to in Section
4.7(b)(1) is proposed to be underwritten, the Company will so advise the
Investor and any known transferees as a part of the written notice given pursuant to
Section 4.7(b)(1). In such event, the right of the Investor or any
transferees to registration pursuant to this Section 4.7(b) will be
conditioned upon such persons’ participation in such underwriting and the inclusion
of such person’s Registrable Securities in the underwriting, and each such person
will (together with the Company and the other persons distributing their securities
through such underwriting) enter into an underwriting agreement in customary form
with the underwriter or underwriters selected for such underwriting by the Company.
If any participating person disapproves of the terms of the underwriting, such
person

26

 

may elect to withdraw therefrom by written notice to the Company, the managing
underwriter and the Investor.

     (3) Piggyback Registration Expenses. The Company will pay all Registration
Expenses in connection with any Piggyback Registration, whether or not any
registration or prospectus becomes effective or final.

     (4) Priority on Primary Registrations. If a Piggyback Registration relates to
an underwritten primary offering on behalf of the Company, and the managing
underwriters advise the Company that in their reasonable opinion the number of
securities requested to be included in such registration exceeds the number which
can be sold without adversely affecting the marketability of such offering
(including an adverse effect on the per share offering price), the Company will
include in such registration or prospectus only such number of securities that in
the reasonable opinion of such underwriters can be sold without adversely affecting
the marketability of the offering (including an adverse effect on the per share
offering price), which securities will be so included in the following order of
priority: (i) first, the securities the Company proposes to sell, (ii) second,
Registrable Securities of the Investor and any transferees who have requested
registration of Registrable Securities pursuant to Sections 4.7(a) or
4.7(b), pro rata on the basis of the aggregate number of such securities or
shares owned by each such person and (iii) third, any other securities of the
Company that have been requested to be so included, subject to the terms of this
Agreement.

     (c) Registration Procedures. Subject to Section 4.7(a)(4), whenever the
Investor or any transferees of Registrable Securities have requested that any Registrable
Securities be registered pursuant to Section 4.7(a) or 4.7(b) of this
Agreement, the Company will use its reasonable best efforts to effect the registration and
sale of such Registrable Securities as soon as reasonably practicable in accordance with the
intended method of disposition thereof and pursuant thereto. The Company shall use its
reasonable best efforts to as expeditiously as possible:

     (1) prepare and file with the SEC a Registration Statement with respect to such
Registrable Securities, make all required filings with the National Association of
Securities Dealers and the Financial Industry Regulatory Authority and thereafter
use its reasonable best efforts to cause such Registration Statement to become
effective as soon as reasonably practicable and to remain effective as provided
herein, provided that before filing a Registration Statement or any amendments or
supplements thereto, the Company will, at the Company’s expense, furnish or
otherwise make available to the Holders’ Counsel (as defined below) copies of all
such documents proposed to be filed and such other documents reasonably requested by
such counsel, which documents will be subject to review and comment of such counsel,
including any comment letter from the SEC with respect to such filing or the
documents incorporated by reference therein, and if requested by such counsel,
provide such counsel reasonable opportunity to participate in the preparation of
such Registration Statement and such other opportunities to conduct a reasonable
investigation

27

 

within the meaning of the Securities Act, including reasonable access to the
Company’s financial books and records, officers, accountants and other advisors;

     (2) prepare and file with the SEC such amendments and supplements to such
Registration Statement as may be necessary to keep such Registration Statement
effective for a period of either (A) not less than (i) six months or (ii) if such
Registration Statement relates to an underwritten offering, such longer period as,
based upon the opinion of counsel for the underwriters, a prospectus is required by
law to be delivered in connection with sales of Registrable Securities by an
underwriter or dealer or (B) such shorter period as will terminate when all of the
securities covered by such Registration Statement have been disposed of in
accordance with the intended methods of disposition by the seller or sellers thereof
set forth in such Registration Statement (but in any event not before the expiration
of any longer period required under the Securities Act), and comply with the
provisions of the Securities Act with respect to the disposition of all securities
covered by such Registration Statement until such time as all of such securities
have been disposed of in accordance with the intended methods of disposition by the
seller or sellers thereof set forth in such Registration Statement, and cause the
related prospectus to be supplemented by any prospectus supplement as may be
necessary to comply with the provisions of the Securities Act with respect to the
disposition of the securities covered by such Registration Statement, and as so
supplemented to be filed pursuant to Rule 424 (or any similar provisions then in
force) under the Securities Act;

     (3) furnish to each seller of Registrable Securities, and each managing
underwriter, if any, such number of copies, without charge, of such Registration
Statement, each amendment and supplement thereto, including each preliminary
prospectus, final prospectus, any other prospectus (including any prospectus filed
under Rule 424, Rule 430A or Rule 430B under the Securities Act and any “issuer free
writing prospectus” as such term is defined under Rule 433 promulgated under the
Securities Act), all exhibits and other documents filed therewith and such other
documents as such seller or such managing underwriter may reasonably request
including in order to facilitate the disposition of the Registrable Securities owned
by such seller, and upon request a copy of any and all transmittal letters or other
correspondence to or received from, the SEC or any other Governmental Entity
relating to such offer;

     (4) register or qualify (or exempt from registration or qualification) such
Registrable Securities, and keep such registration or qualification (or exemption
therefrom) effective, under such other securities or blue sky laws of such
jurisdictions as any seller reasonably requests and do any and all other acts and
things that may be reasonably necessary or reasonably advisable to enable such
seller to consummate the disposition in such jurisdictions of the Registrable
Securities owned by such seller (provided that the Company will not be required to
(i) qualify generally to do business in any jurisdiction where it would not
otherwise be required to qualify but for this subsection, (ii) subject itself to

28

 

taxation in any such jurisdiction or (iii) consent to general service of
process in any such jurisdiction);

     (5) notify each seller of such Registrable Securities, the Holders’ Counsel and
the managing underwriter(s), if any, at any time when a prospectus relating thereto
is required to be delivered under the Securities Act, upon discovery that, or upon
the discovery of the happening of any event that makes any statement made in the
Registration Statement or related prospectus or any document incorporated or deemed
to be incorporated therein by reference untrue in any material respect or that
requires the making of any changes in such Registration Statement, prospectus or
documents and, as soon as reasonably practicable (but subject to the delay
provisions of Section 4.7(a)(4)), prepare and furnish to such seller a
reasonable number of copies of a supplement or amendment to such prospectus so that,
in the case of the Registration Statement, it will not contain any untrue statement
of material fact or omit to state any material fact required to be stated therein or
necessary to make the statements therein, not misleading, and that in the case of
any prospectus, it will not contain any untrue statement of a material fact or omit
to state any material fact necessary in order to make the statement therein, in
light of the circumstances in which they were made, not misleading;

     (6) notify each seller of any Registrable Securities covered by such
Registration Statement, the Holders’ Counsel and the managing underwriter(s), if
any, (i) when such Registration Statement or the prospectus or any prospectus
supplement or post-effective amendment has been filed and, with respect to such
Registration Statement or any post-effective amendment, when the same has become
effective, (ii) of any request by the SEC for amendments or supplements to such
Registration Statement or to amend or to supplement such prospectus or for
additional information, (iii) of the issuance by the SEC of any stop order
suspending the effectiveness of such Registration Statement or the initiation of any
proceedings for any of such purposes, (iv) if at any time the representations and
warranties of the Company contained in any underwriting agreement contemplated by
Section 4.7(c)(11) below cease to be true and correct, and (v) of the
receipt by the Company of any notification with respect to the suspension of the
qualification or exemption from qualification of any of the Registrable Securities
for sale in any jurisdiction, or the initiation or threatening of any proceeding for
such purpose;

     (7) upon the occurrence of an event contemplated in Section 4.7(c)(5)
or in Section 4.7(c)(6)(ii), (c)(6)(iii), (c)(6)(iv) or
(c)(6)(v) (but subject to the delay provisions of Section
4.7(a)(4)), prepare a supplement or amendment to the Registration Statement or
supplement to the related prospectus or any document incorporated or deemed to be
incorporated therein by reference, or file any other required document so that such
prospectus as thereafter delivered to the sellers of such Registrable Securities
will not contain an untrue statement of a material fact or omit to state any fact
necessary to make the statements therein not misleading in the light of the
circumstances under which they were made;

29

 

     (8) cause all such Registrable Securities to be listed on each securities
exchange on which similar securities issued by the Company are then listed or, if no
similar securities issued by the Company are then listed on any securities exchange,
use its reasonable best efforts to cause all such Registrable Securities to be
listed on the New York Stock Exchange or the NASDAQ stock market, as determined by
the Company;

     (9) provide a transfer agent and registrar for all such Registrable Securities
not later than the effective date of such Registration Statement;

     (10) enter into such customary agreements (including underwriting agreements
and, subject to Section 4.7(f), lock-up agreements in customary form, and
including provisions with respect to indemnification and contribution in customary
form) and take all such other customary actions as the Investor, the participating
transferees or the underwriters, if any, reasonably request in order to expedite or
facilitate the disposition of such Registrable Securities (including, making members
of management and executives of the Company available to participate in “road show,”
similar sales events and other marketing activities; provided that the Company shall
not be required to make members of management and executives of the Company so
available for more than five consecutive days or more than 10 days in any 365 day
period);

     (11) in connection with any underwritten offering, make such representations
and warranties to the sellers and the managing underwriter(s), if any, with respect
to the business of the Company and the Company Subsidiaries, and the Registration
Statement, prospectus, and documents incorporated or deemed to be incorporated by
reference therein, in each case, in form, substance and scope as are customarily
made by the issuer in underwritten offerings, and, if true, make customary
confirmations of the same if and when requested;

     (12) if requested by any seller of Registrable Securities, or the managing
underwriter(s), if any, promptly include in a prospectus supplement or amendment
such information as the seller or managing underwriter(s), if any, may reasonably
request in order to permit the intended method of distribution of such securities
and make all required filings of such prospectus supplement or such amendment as
soon as practicable after the Company has received such request;

     (13) in the case of certificated Registrable Securities, cooperate with the
sellers of such Registrable Securities and the managing underwriter(s), if any, to
facilitate the timely preparation and delivery of certificates (not bearing any
legends) representing Registrable Securities to be sold after receiving written
representations from each seller that that the Registrable Securities represented by
the certificates so delivered by such seller will be transferred in accordance with
the Registration Statement, and enable such Registrable Securities to be in such
denominations and registered in such names as the sellers or managing underwriters,
if any, may request at least two business days prior to any sale of Registrable
Securities;

30

 

     (14) make available for inspection by any seller of Registrable Securities and
the Holders’ Counsel, any underwriter participating in any disposition pursuant to
such Registration Statement and any attorney, accountant or other agent retained by
any such seller or underwriter, all financial and other records, pertinent corporate
documents and documents relating to the business of the Company, and cause the
Company’s officers, directors, employees and independent accountants to supply all
information reasonably requested by any such seller, underwriter, attorney,
accountant or agent in connection with such Registration Statement, provided that it
shall be a condition to such inspection and receipt of such information that the
inspecting person (i) enter into a confidentiality agreement in form and substance
reasonably satisfactory to the Company and (ii) agree to minimize the disruption to
the Company’s business in connection with the foregoing;

     (15) otherwise use its reasonable best efforts to comply with all applicable
rules and regulations of the SEC and any applicable national securities exchange;

     (16) timely provide to its security holders earning statements satisfying the
provisions of Section 11(a) of the Securities Act and Rule 158 thereunder;

     (17) in the event of the issuance of any stop order suspending the
effectiveness of a Registration Statement, or of any order suspending or preventing
the use of any related prospectus or ceasing trading of any securities included in
such Registration Statement for sale in any jurisdiction, use every reasonable
effort to promptly obtain the withdrawal of such order;

     (18) obtain one or more comfort letters, addressed to the underwriters, if any,
dated the effective date of such Registration Statement and the date of the closing
under the underwriting agreement for such offering, signed by the Company’s
independent public accountants (and if necessary, any other independent certified
public accountants of any business acquired by the Company for which financial
statements and financial data are, or are required to be, included in the
Registration Statement) in customary form and covering such matters of the type
customarily covered by comfort letters as such underwriters shall reasonably
request;

     (19) provide legal opinions of the Company’s counsel, addressed to the
underwriters, if any, dated the date of the closing under the underwriting
agreement, with respect to the Registration Statement, each amendment and supplement
thereto (including the preliminary prospectus) and such other documents relating
thereto as the underwriter shall reasonably request in customary form and covering
such matters of the type customarily covered by legal opinions of such nature; and

     (20) obtain any required regulatory approval necessary for the Investor or any
transferee to sell its Registrable Securities in an offering.

31

 

     (d) Registration Expenses.

     (1) Except as otherwise provided in this Agreement, all expenses incidental to
the Company’s performance of or compliance with this Section 4.7, including
all registration and filing fees, fees and expenses of compliance with securities or
blue sky laws, word processing, duplicating and printing expenses, messenger,
telephone and delivery expenses, expenses incurred in connection with any road show,
and fees and disbursements of counsel for the Company and all independent certified
public accountants and other persons retained by the Company (all such expenses,
“Registration Expenses”), will be borne by the Company. The holders of the
securities so registered shall pay all underwriting discounts, selling commissions
and transfer taxes applicable to the sale of Registrable Securities hereunder and
any other Registration Expenses required by law to be paid by a selling holder pro
rata on the basis of the amount of proceeds from the sale of their shares so
registered.

     (2) In connection with each of the first two Demand Registrations or Piggyback
Registrations, the Company will reimburse Holder’s Counsel for their reasonable fees
and disbursements up to $50,000.

     (e) Participation in Underwritten Registrations.

     (1) None of the Investor or any transferee may participate in any registration
hereunder that is underwritten unless such person (i) agrees to sell its Registrable
Securities on the basis provided in the underwriting arrangements in customary form
entered into pursuant to this Agreement (including pursuant to the terms of any
over-allotment or “green shoe” option requested by the managing underwriter(s),
provided that no such person will be required to sell more than the number of
Registrable Securities that such person has requested the Company to include in any
registration), (ii) completes and executes all questionnaires, powers of attorney,
indemnities, underwriting agreements and other documents reasonably required under
the terms of such underwriting arrangements, provided that such person shall not be
required to make any representations or warranties other than those related to title
and ownership of shares and as to the accuracy and completeness of statements made
in a Registration Statement, prospectus, offering circular, or other document in
reliance upon and in conformity with written information furnished to the Company or
the managing underwriter(s) by such person, and (iii) cooperates with the Company’s
reasonable requests in connection with such registration or qualification (it being
understood that the Company’s failure to perform its obligations hereunder, which
failure is caused by such person’s failure to cooperate with such reasonable
requests, will not constitute a breach by the Company of this Agreement).
Notwithstanding the foregoing, the liability of the Investor or any transferee
participating in such an underwritten registration shall be limited to an amount
equal to the amount of gross proceeds attributable to the sale of such person’s
Registrable Securities.

32

 

     (2) Each person that is participating in any registration hereunder agrees
that, either during any Scheduled Black-out Period or upon receipt of any notice
from the Company of the happening of any event of the kind described in Section
4.7(c)(5) and (c)(6), such person will forthwith discontinue the
disposition of its Registrable Securities pursuant to the Registration Statement
until termination of such Scheduled Black-Out Period or such person receives copies
of a supplemented or amended prospectus as contemplated by such Section
4.7(c)(5), (c)(6) and (c)(7). In the event the Company gives any
such notice, the applicable time period mentioned in Section 4.7(c)(2)
during which a Registration Statement is to remain effective will be extended by the
number of days during the period from and including the date of the giving of such
notice pursuant to this Section 4.7(e)(2) to and including the date when
each seller of a Registrable Security covered by such Registration Statement will
have received the copies of the supplemented or amended prospectus contemplated by
Section 4.7(c)(5), (c)(6) and (c)(7).

     (f) “Market Stand-Off’ Agreement; Agreement to Furnish Information. The
Investor and each transferee agrees:

     (1) that they shall not sell, transfer, make any short sale of, grant any
option for the purchase of, or enter into any hedging or similar transaction with
the same economic effect as a sale with respect to any common equity securities of
the Company or any securities convertible into or exchangeable or exercisable for
any common equity securities of the Company held by such person (other than those
included in the registration) for a period specified by the representatives of the
underwriters of the common equity or equity-related securities not to exceed ten
days prior and 90 days following the effective date of any firm commitment
underwritten registered sale of common equity securities of the Company or any
securities convertible into or exchangeable or exercisable for any common equity
securities of the Company by the Company for the Company’s own account in which the
Company gave such investor or transferee an opportunity to participate; provided,
that, if the Company is registering securities thereon, all executive officers and
directors of the Company enter into similar agreements and only if such persons
remain subject thereto (and are not released from such agreement) for such period;
provided that nothing herein will prevent the Investor from making any distribution
of Registrable Securities to the partners or shareholders thereof or a transfer to
an Affiliate that is otherwise in compliance with applicable securities laws, so
long as such distributes or transferees agree to be bound by the restrictions set
forth herein;

     (2) to execute and deliver such other agreements as may be reasonably requested
by the Company or the representatives of the underwriters which are consistent with
the foregoing obligation in Section 4.7(f)(1) or which are necessary to give
further effect thereto; and

     (3) if requested by the Company or the representative of the underwriters of
Common Stock (or other securities of the Company), to provide,

33

 

within ten days of such request, such information as may be required by the
Company or such representative in connection with the completion of any public
offering of the Company’s securities pursuant to a registration statement filed
under the Securities Act in which such person participates.

     (g) Termination of Registration Rights. The Investor and any transferee or
other Person’s registration rights as to any securities held by such Holder (and its
Affiliates, partners, members and former members) shall not be available unless such
securities are Registrable Securities.

     (h) Furnishing Information.

     (1) Neither the Investor nor any transferee shall use any free writing
prospectus (as defined in Rule 405) in connection with the sale of Registrable
Securities without the prior written consent of the Company.

     (2) It shall be a condition precedent to the obligations of the Company to take
any action pursuant to Section 4.7(a), (b) and (c) that the
Investor and/or transferee and the underwriters, if any, shall furnish to the
Company such information regarding themselves, the Registrable Securities held by
them and the intended method of disposition of such securities as shall be required
to effect the registered offering of their Registrable Securities.

     (i) Indemnification.

     (1) The Company agrees to indemnify Investor and transferee, and their
respective officers, directors, employees, agents, representatives and Affiliates,
and each Person, if any, that controls them within the meaning of the Securities Act
and the rules and regulations promulgated thereunder (each, an
“Indemnitee”), against any and all losses, claims, damages, actions,
liabilities, costs and expenses (including without limitation reasonable fees,
expenses and disbursements of attorneys and other professionals incurred in
connection with investigating, defending, settling, compromising or paying any such
losses, claims, damages, actions, liabilities, costs and expenses), joint or
several, arising out of or based upon any untrue statement or alleged untrue
statement of material fact contained in any registration statement, including any
preliminary prospectus or final prospectus contained therein or any amendments or
supplements thereto or any documents incorporated therein by reference or contained
in any free writing prospectus (as such term is defined in Rule 405) prepared by the
Company or authorized by it in writing for use by such Investor or transferee (or
any amendment or supplement thereto); or any omission to state therein a material
fact required to be stated therein or necessary to make the statements therein, in
light of the circumstances under which they were made, not misleading; provided,
that the Company shall not be liable to such Indemnitee in any such case to the
extent that any such loss, claim, damage, liability (or action or proceeding in
respect thereof) or expense arises out of or is based upon (i) an untrue statement
or omission made in such registration statement, including any such preliminary

34

 

prospectus or final prospectus contained therein or any such amendments or
supplements thereto or contained in any free writing prospectus (as such term is
defined in Rule 405) prepared by the Company or authorized by it in writing for use
by the Investor or a transferee (or any amendment or supplement thereto), in
reliance upon and in conformity with information regarding such Person or its plan
of distribution or ownership interests which was furnished in writing to the Company
by such Person for use in connection with such registration statement, including any
such preliminary prospectus or final prospectus contained therein or any such
amendments or supplements thereto, or (ii) offers or sales effected by or on behalf
such Indemnitee “by means of” (as defined in Rule 159A) a “free writing prospectus”
(as defined in Rule 405) that was not authorized in writing by the Company.

     (2) If the indemnification provided for in Section 4.7(i)(1) is
unavailable to an Indemnitee with respect to any losses, claims, damages, actions,
liabilities, costs or expenses referred to therein or is insufficient to hold the
Indemnitee harmless as contemplated therein, then the Company, in lieu of
indemnifying such Indemnitee, shall contribute to the amount paid or payable by such
Indemnitee as a result of such losses, claims, damages, actions, liabilities, costs
or expenses in such proportion as is appropriate to reflect the relative fault of
the Indemnitee, on the one hand, and the Company, on the other hand, in connection
with the statements or omissions which resulted in such losses, claims, damages,
actions, liabilities, costs or expenses as well as any other relevant equitable
considerations. The relative fault of the Company, on the one hand, and of the
Indemnitee, on the other hand, shall be determined by reference to, among other
factors, whether the untrue statement of a material fact or omission to state a
material fact relates to information supplied by the Company or by the Indemnitee
and the parties’ relative intent, knowledge, access to information and opportunity
to correct or prevent such statement or omission; the Company and each Holder agree
that it would not be just and equitable if contribution pursuant to this Section
4.7(i)(2) were determined by pro rata allocation or by any other method of
allocation that does not take account of the equitable considerations referred to in
Section 4.7(i)(1). No Indemnitee guilty of fraudulent misrepresentation
(within the meaning of Section 11(f) of the Securities Act) shall be entitled to
contribution from the Company if the Company was not guilty of such fraudulent
misrepresentation.

     (j) Assignment of Registration Rights. The rights of Investor to registration
of Registrable Securities pursuant to Section 4.7(a) and (b) may be assigned
by Investor to a transferee of Registrable Securities who agrees to be bound by the terms
and conditions hereof and to which (i) there is transferred to such transferee no less than
$5,000,000 in Registrable Securities and (ii) such Transfer is otherwise not precluded under
the terms hereof; provided, however, the transferor shall, within ten days after such
transfer, furnish to the Company written notice of the name and address of such transferee
or assignee and the number and type of Registrable Securities that are being assigned.

35

 

     (k) Rule 144 Reporting. With a view to making available to the Investor the
benefits of certain rules and regulations of the SEC which may permit the sale of the
Registrable Securities to the public without registration, the Company agrees to use its
reasonable best efforts to:

     (1) make and keep public information available, as those terms are understood
and defined in Rule 144(c)(1) or any similar or analogous rule promulgated under the
Securities Act, at all times after the effective date of this Agreement;

     (2) file with the SEC, in a timely manner, all reports and other documents
required of the Company under the Exchange Act; and

     (3) so long as Investor owns any Registrable Securities, furnish to Investor
forthwith upon request: a written statement by the Company as to its compliance with
the reporting requirements of Rule 144 under the Securities Act, and of the Exchange
Act; a copy of the most recent annual or quarterly report of the Company; and such
other reports and documents as such the Investor may reasonably request in availing
itself of any rule or regulation of the SEC allowing it to sell any such securities
without registration.

     (l) As used in this Section 4.7, the following terms shall have the following
respective meanings:

     (1) “Holders’ Counsel” means one counsel for the selling Investor and
transferees chosen by the Investor and selling transferees holding a majority
interest in the Registrable Securities being registered.

     (2) “Rule 144”, “Rule 159A”, “Rule 405” and “Rule
415” mean, in each case, such rule promulgated under the Securities Act (or any
successor provision), as the same shall be amended from time to time.

     (3) “Scheduled Black-out Period” means the period from and including
the last day of a fiscal quarter of the Company to and including the second business
day after the day on which the Company publicly releases its earnings for such
fiscal quarter, provided that the trading window applicable to the Company’s senior
management under the Company’s trading policies then in effect is not open any time
during such period.

     4.8 Certificate of Designations. In connection with the Closing, the Company shall
file the Preferred Stock Certificate of Designations for the Convertible Preferred Stock in the
form attached to this Agreement as Exhibit A in the State of Illinois, and such Preferred
Stock Certificate of Designations shall continue to be in full force and effect as of the Closing
Date.

36

 

ARTICLE V

MISCELLANEOUS

     5.1 Survival. Each of the representations and warranties set forth in this Agreement
shall survive the Closing under this Agreement but only for a period of eighteen months following
the Closing Date (or until final resolution of any claim or action arising from the breach of any
such representation and warranty, if notice of such breach was provided prior to the end of such
period) and thereafter shall expire and have no further force and effect, including in respect of
Section 4.6. Except as otherwise provided herein, all covenants and agreements contained
herein, other than those, including, without limitation, Section 4.4 hereof, which by their
terms are to be performed in whole or in part after the Closing Date, shall terminate as of the
Closing Date.

     5.2 Expenses. Except as provided in this Section 5.2, each of the parties
will bear and pay all costs and expenses incurred by it or on its behalf in connection with the
transactions contemplated pursuant to this Agreement. The Company agrees to reimburse the Investor
for up to $450,000 of reasonable and documented out-of-pocket expenses actually incurred related to
the preparation, negotiation, execution and performance of this Agreement.

     5.3 Amendment; Waiver. No waiver or amendment of this Agreement may be enforced
against the Company or the Investor unless contained in a writing signed by (in the case of an
amendment) the Company and the Investors holding at least 50% of the shares of Common Stock
issuable upon conversion of the Convertible Preferred Stock (and for such purposes, without regard
to any conversion limitations contained in the Transaction Documents) and (in the case of a waiver)
the Investors holding at least 50% of the shares of Common Stock issuable upon conversion of the
Convertible Preferred Stock. No failure or delay by any party in exercising any right, power or
privilege hereunder shall operate as a waiver thereof nor shall any single or partial exercise
thereof preclude any other or further exercise thereof or the exercise of any other right, power or
privilege. No waiver of any party to this Agreement, as the case may be, will be effective unless
it is in a writing signed by a duly authorized officer of the waiving party that makes express
reference to the provision or provisions subject to such waiver. The rights and remedies herein
provided shall be cumulative and not exclusive of any rights or remedies provided by law.

     5.4 Counterparts and Facsimile. For the convenience of the parties hereto, this
Agreement may be executed in any number of separate counterparts, each such counterpart being
deemed to be an original instrument, and all such counterparts will together constitute the same
agreement. Executed signature pages to this Agreement may be delivered by facsimile and such
facsimiles will be deemed as sufficient as if actual signature pages had been delivered.

     5.5 Governing Law. This Agreement will be governed by and construed in accordance
with the laws of the State of Illinois applicable to contracts made and to be performed entirely
within such State. The parties hereby irrevocably and unconditionally consent to submit to the
exclusive jurisdiction of the state and federal courts located in the City of Chicago, State of
Illinois for any actions, suits or proceedings arising out of or relating to this Agreement and the
transactions contemplated hereby.

37

 

     5.6 WAIVER OF JURY TRIAL. EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY WAIVES ANY
AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATED TO THIS AGREEMENT
OR THE TRANSACTIONS CONTEMPLATED HEREBY.

     5.7 Notices. Any notice, request, instruction or other document to be given hereunder
by any party to the other will be in writing and will be deemed to have been duly given (a) on the
date of delivery if delivered personally or by telecopy or facsimile, upon confirmation of receipt,
(b) on the first business day following the date of dispatch if delivered by a recognized next-day
courier service, or (c) on the third business day following the date of mailing if delivered by
registered or certified mail, return receipt requested, postage prepaid. All notices hereunder
shall be delivered as set forth below, or pursuant to such other instructions as may be designated
in writing by the party to receive such notice.

(a) If to the Investor:

CIVC Partners

191 North Wacker Drive, Suite 1100

Chicago, Illinois 60606

Attn: Christopher J. Perry

Telephone: (312) 873-7300

Fax: (312) 873-7301

with copies to (which copy alone shall not constitute notice):

Winston & Strawn LLP

35 W. Wacker Drive

Chicago, Illinois 60601

Attn: Steven J. Gavin and Eric L. Cohen

Telephone: (312) 558-5979

Fax: (312) 558-5700

(b) If to the Company:

Wintrust Financial Corporation

727 North Bank Lane

Lake Forest, IL 60045

Attn: David A. Dykstra

Telephone: (847) 615-4034

Fax: (847) 615-4091

with a copy to (which copy alone shall not constitute notice):

Sidley Austin LLP

One South Dearborn Street

Chicago, Illinois 60603

Attn: Lisa J. Reategui

Telephone: (312) 853-7833

Fax: (312) 853-7036

38

 

     5.8 Entire Agreement, Etc. (a) This Agreement (including the Exhibits, Schedules and
Disclosure Schedules hereto) constitutes the entire agreement, and supersedes all other prior
agreements, understandings, representations and warranties, both written and oral, among the
parties, with respect to the subject matter hereof; and (b) this Agreement will not be assignable
by operation of law or otherwise (any attempted assignment in contravention hereof being null and
void); provided, that after the Closing the Investor may assign its rights and obligations under
this Agreement to any Affiliate, but only if the transferee agrees in writing for the benefit of
the Company (with a copy thereof to be furnished to the Company) to be bound by the terms of this
Agreement (any such transferee shall be included in the term “Investor”); provided,
further, that no such assignment shall relieve Investor of its obligations hereunder.

     5.9 Interpretation; Other Definitions. Wherever required by the context of this
Agreement, the singular shall include the plural and vice versa, and the masculine gender shall
include the feminine and neuter genders and vice versa, and references to any agreement, document
or instrument shall be deemed to refer to such agreement, document or instrument as amended,
supplemented or modified from time to time. All article, section, paragraph or clause references
not attributed to a particular document shall be references to such parts of this Agreement, and
all exhibit, annex and schedule references not attributed to a particular document shall be
references to such exhibits, annexes and schedules to this Agreement. In addition, the following
terms are ascribed the following meanings:

     (a) the term “Affiliate” means, with respect to any person, any person directly
or indirectly controlling, controlled by or under common control with, such other person.
For purposes of this definition, “control”(including, with correlative meanings, the
terms “controlled by” and “under common control with”) when used with
respect to any person, means the possession, directly or indirectly, of the power to cause
the direction of management or policies of such person, whether through the ownership of
voting securities by contract or otherwise;

     (b) a person shall be deemed to “Beneficially Own” any securities of which such
person is considered to be a “Beneficial Owner” under Rule 13d-3 under the Exchange
Act;

     (c) “business day” means any day except Saturday, Sunday and any day which
shall be a legal holiday or a day on which banking institutions in the State of New York or
in the State of Illinois generally are authorized or required by law or other governmental
action to close;

     (d) “Company Banks” means, collectively, Lake Forest Bank and Trust Company,
Hinsdale Bank and Trust Company, North Shore Community Bank and Trust Company, Libertyville
Bank and Trust Company, Northbrook Bank & Trust Company, Village Bank & Trust, Wheaton Bank
& Trust Company, State Bank of The Lakes, St. Charles Bank & Trust Company, Town Bank,
Barrington Bank and Trust Company,

39

 

N.A., Crystal Lake Bank & Trust Company, N.A., Advantage National Bank, Beverly Bank &
Trust Company, N.A. and Old Plank Trail Community Bank, N.A;

     (e) “Governmental Entity” means any Agency, court, administrative agency or
commission or other governmental authority or instrumentality, whether federal, state, local
or foreign, or any applicable industry self-regulatory organization or stock market or
quotation system on which the Common Stock is listed;

     (f) the terms “herein,” “hereof” and “hereunder” and other
words of similar import refer to this Agreement as a whole and not to any particular
section, paragraph or subdivision;

     (g) the words “including,” “includes,” “included” and
“include” are deemed to be followed by the words “without limitation”;

     (h) to the “knowledge of the Company” or “Company’s knowledge” means
the actual knowledge after due inquiry of the “officers” (as such term is defined in
Rule 3b-2 under the Exchange Act, but excluding any Vice President or Secretary) of the
Company;

     (i) the word “or” is not exclusive;

     (j) “Past Due” means, with respect to any loan, that payment on such loan has,
as of the date of determination, not been received for more than 30 days from the date on
which such payment is otherwise due and payable;

     (k) “person” means an individual or corporation, partnership, trust,
incorporated or unincorporated association, joint venture, limited liability company, joint
stock company, government (or an agency or subdivision thereof) or other entity of any kind
and includes the meaning given to it in Section 3(a)(9) of the Exchange Act and as used in
Sections 13(d)(3) and 14(d)(2) of the Exchange Act;

     (l) As used herein, “Subsidiary” means, with respect to any person, any
corporation, partnership, joint venture, limited liability company or other entity (x) of
which such person or a subsidiary of such person is a general partner or (y) of which a
majority of the voting securities or other voting interests, or a majority of the securities
or other interests of which having by their terms ordinary voting power to elect a majority
of the board of directors or persons performing similar functions with respect to such
entity, is directly or indirectly owned by such person and/or one or more subsidiaries
thereof; “Company Subsidiary” means any Subsidiary of the Company; “Company
Significant Subsidiary” means any Significant Subsidiary of the Company; and
“Significant Subsidiary” means, with respect to any person, any Subsidiary that
would constitute a “significant Subsidiary” of such person within the meaning of
Rule 1-02(w) of Regulation S-X of the SEC; and

     (m) “Voting Securities” shall mean at any time shares of any class of capital
stock of the Company that are then entitled to vote generally in the election of directors.

40

 

     5.10 Captions. The article, section, paragraph and clause captions herein are for
convenience of reference only, do not constitute part of this Agreement and will not be deemed to
limit or otherwise affect any of the provisions hereof.

     5.11 Severability. If any provision of this Agreement or the application thereof to
any person (including the officers and directors the parties hereto) or circumstance is determined
by a court of competent jurisdiction to be invalid, void or unenforceable, the remaining provisions
hereof, or the application of such provision to persons or circumstances other than those as to
which it has been held invalid or unenforceable, will remain in full force and effect and shall in
no way be affected, impaired or invalidated thereby, so long as the economic or legal substance of
the transactions contemplated hereby is not affected in any manner materially adverse to any party.
Upon such determination, the parties shall negotiate in good faith in an effort to agree upon a
suitable and equitable substitute provision to effect the original intent of the parties.

     5.12 No Third Party Beneficiaries. Nothing contained in this Agreement, expressed or
implied, is intended to confer upon any person other than the parties hereto, any benefit right or
remedies, except that the provisions of Section 4.6 and 4.7 shall inure to the
benefit of the persons referred to in such Sections.

     5.13 Time of Essence. Time is of the essence in the performance of each and every
term of this Agreement.

     5.14 Specific Performance. The parties agree that irreparable damage would occur in
the event that any of the provisions of this Agreement were not performed in accordance with their
specific terms. It is accordingly agreed that the parties shall be entitled to seek specific
performance of the terms hereof, this being in addition to any other remedies to which they are
entitled at law or equity.

     5.15 Use of Proceeds. The Company will use the net proceeds from the sale of the
Convertible Preferred Stock for general corporate purposes.

     5.16 Limitation on Liability. Notwithstanding anything herein to the contrary, the
Company acknowledges and agrees that the liability of an Investor arising under any Transaction
Document shall be satisfied solely out of the assets of such Investor, and that no trustee,
officer, other investment vehicle or any other Affiliate of such Investor or any investor,
shareholder or holder of shares of beneficial interest of such a Investor shall be personally
liable for any liabilities of such Investor.

     5.17 Public Announcements. Subject to each party’s disclosure obligations imposed by
law or regulation or the rules of any stock exchange upon which its securities are listed, each of
the parties hereto will cooperate with each other in the development and distribution of all news
releases and other public information disclosures with respect to this Agreement and any of the
transactions contemplated by this Agreement, and no party hereto will make any such news release or
public disclosure without first consulting with the other party hereto and receiving its consent
(which shall not be unreasonably withheld or delayed) and each party shall coordinate with the
other with respect to any such news release or public disclosure.

*      *      *

41

 

          IN WITNESS WHEREOF, this Agreement has been duly executed and delivered by the duly authorized
officers of the parties hereto as of the date first herein above written.

	 	 	 	 	 
	 	WINTRUST FINANCIAL CORPORATION

 	 
	 	By:  	/s/ David A. Dykstra 	 
	 	 	Name:  	David A. Dykstra 	 
	 	 	Title:  	Senior Executive Vice President,

 Chief
Operating Officer and Secretary 	 
	 

	 	 	 	 	 	 	 
	 	 	CIVC-WTFC LLC
	 
	 	 	 	 	 	 
	 

	 	By:
	 	CIVC Partners, L.P.	 	 
	 

	 	Its:
	 	Manager	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	CIVC Management GP, LLC	 	 
	 

	 	Its:
	 	General Partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Christopher J. Perry
	 	 
	 

	 	 
	 	Name: Christopher J. Perry
	 	 
	 

	 	 	 	Its: Member	 	 

[Signature
Page to Investment Agreement]

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