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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
September 25, 1997
(Date of earliest event reported)
ST. FRANCIS CAPITAL CORPORATION
(Exact name of registrant as specified in its charter)
Commission File No. 0-21298
39-1747461
WISCONSIN (I.R.S. Employer
(State of incorporation) Identification No.)
13400 BISHOPS LANE, SUITE 350
BROOKFIELD, WISCONSIN 53005-6203
(Address of principal executive offices) (Zip Code)
(414) 486-8700
(Registrant's telephone number, including area code)
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ITEM 5. OTHER EVENTS
On September 25, 1997, the Board of Directors (the "Board") of St. Francis
Capital Corporation (the "Company") declared a dividend of one preferred stock
purchase right (a "Right") for each outstanding share of Common Stock, $.01 par
value per share (the "Common Stock"), of the Company. The dividend is payable
on October 10, 1997 (the "Record Date") to the holders of record of the Common
Stock at 5:00 p.m. Wisconsin time on such date. Except as described below,
each Right entitles the holder thereof, at any time on or after the Business
Day (as hereinafter defined) following the Distribution Date (as hereinafter
defined) and prior to the earliest of the close of business on the "Final
Expiration Date" (as hereinafter defined) and the time at which such Rights are
exchanged, to purchase from the Company one one-hundredth of a share of the
Company's Series A Junior Participating Preferred Stock, $.01 par value per
share (the "Preferred Shares"), at a price of $150 per one one-hundredth of a
Preferred Share, subject to adjustment (the "Exercise Price"). The Rights may
not be exercised until the Business Day after the Distribution Date. The terms
of the Rights are set forth in the Shareholder Rights Agreement dated as of
September 25, 1997 (the "Rights Agreement") between the Company and Firstar
Trust Co., as Rights Agent (the "Rights Agent").
Initially, the Rights associated with the Common Stock outstanding as of
the Record Date will be evidenced solely by the certificates for shares of
Common Stock, with a copy of a "Summary of Rights" attached thereto.
Certificates for shares of Common Stock delivered by or on behalf of the
Company after the Record Date and prior to the earliest of the Distribution
Date, redemption of the Rights or the Final Expiration Date, either upon
transfer of outstanding shares, including certificates for shares of Common
Stock which were reacquired by the Company and then transferred, or original
issuance of additional shares of Common Stock, will contain a notation
incorporating the Rights Agreement by reference. Until the Distribution Date,
redemption of the Rights or the Final Expiration Date, the Rights may be
transferred only with the associated shares of Common Stock and the surrender
for transfer of any certificate for shares of Common Stock, with or without a
notation and whether or not a copy of a Summary of Rights is attached thereto,
shall constitute the transfer of the Rights associated with the shares of
Common Stock represented by such stock certificate.
The Rights will separate from the Common Stock upon the earliest to occur
of: (i) the close of business on the tenth Business Day after the first date
on which there shall be, as determined by a majority of the Disinterested
Directors (as hereinafter defined) then in office in their sole discretion, a
public announcement by the Company or any individual, firm, corporation,
partnership, limited liability company, association or other entity, and any
successor of the foregoing (a "Person") that such Person has become an
Acquiring Person (as hereinafter defined); (ii) the close of business on the
tenth Business Day (or such later Business Day as may be determined by action
of the Board) after commencement by any Person (other than an Exempt Person)
of, or the first public announcement of the intention of any Person to
commence, a tender or exchange offer if, upon consummation thereof, such Person
would be the beneficial owner of 15% or more of the outstanding shares of
Common Stock (provided, however, that if such tender or exchange offer is
cancelled, terminated or otherwise withdrawn prior to the Distribution Date
without the purchase of any Common Stock, such offer shall be deemed for
purposes of the definition of "Distribution Date" never to have been commenced
or publicly announced); and (iii) the close of business on the tenth Business
Day after a determination by at least a majority of the Disinterested Directors
who are not officers of the Company that a Person has become an Adverse Person
(as hereinafter defined). The earliest of the dates specified in clauses (i),
(ii) and (iii) is the "Distribution Date." After the Distribution Date, the
Rights will be evidenced solely by separate certificates.
An "Acquiring Person" is any Person who or which, together with its
affiliates and associates, has become the beneficial owner of 15% or more of
the shares of Common Stock then outstanding, but does not include (i) the
Company, (ii) any subsidiary of the Company, (iii) any employee stock ownership
plan, employee benefit plan or other compensation program or arrangement of the
Company or of any subsidiary, (iv) any Person holding shares of Common Stock
for or pursuant to the terms of any such plan, program or arrangement set forth
in (iii) above, (v) any Person who becomes the beneficial owner of 15% or more
of the outstanding Common Stock solely as a result of an acquisition of Common
Stock by the Company, until such time as such Person acquires additional Common
Stock, or (vi) any Person who becomes an Acquiring Person without any plan or
intent to seek or affect control of the Company if such Person promptly enters
into an irrevocable commitment promptly to divest and
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thereafter promptly divests such Common Stock so that such Person ceases to be
the beneficial owner of 15% or more of the outstanding Common Stock (the
Persons specified in clauses (i) through (iv) being herein collectively called
"Exempt Persons"). An "Adverse Person" is any Person who or which, together
with its affiliates and associates, has acquired 10% or more of the Common
Stock outstanding and has been determined, by at least a majority of the
Disinterested Directors who are not officers of the Company, to be reasonably
likely to cause the Company to take action which would provide such Person with
a short-term financial gain not in the best long-term interests of the Company
and its shareholders or is reasonably likely to have a material adverse effect
on the business or prospects of the Company. "Business Day" shall mean any day
other than a Saturday, a Sunday or a day on which banking institutions in the
State of Wisconsin are authorized or obligated by law or executive order to
close. A "Disinterested Director" is any member of the Board who is not a
Restricted Person (as hereinafter defined), or a representative or nominee of a
Restricted Person, and who was a member of the Board as of the date of the
Rights Agreement, or any individual who subsequently becomes a member of the
Board and is not a Restricted Person or a representative or nominee of a
Restricted Person, if such Person's nomination for election to the Board is
recommended or approved by a majority of the Disinterested Directors then in
office. A "Restricted Person" is an Acquiring Person, an Adverse Person or any
affiliate or associate thereof.
As soon as practicable following the Distribution Date, separate
certificates evidencing the Rights ("Rights Certificates") will be mailed to
the holders of record of the Common Stock as of the close of business on the
Distribution Date. Each share of Common Stock issued by the Company after the
Distribution Date and prior to the Final Expiration Date, including shares of
Common Stock issued by reason of the exercise of any option, warrant, right
(other than the Rights) or conversion or exchange privilege (other than the
Rights) or convertible or exchangeable security issued by the Company prior to
the Distribution Date, will be accompanied by a Right (unless the Board
expressly provides to the contrary at the time of issuance of any such option,
warrant, right or convertible or exchangeable security), and Rights
Certificates evidencing such Rights will be issued at the same time as the
certificates for the associated shares of Common Stock.
The Preferred Shares receivable upon exercise of the Rights will not be
redeemable. Each Preferred Share will entitle the record holder thereof to
receive a preferential dividend equal to 100 times the aggregate per share
amount of all cash dividends, and 100 times the aggregate per share amount
(payable in kind) of all non-cash dividends or other distributions (other than
in shares of Common Stock) declared on the Common Stock, adjusted to give
effect to any dividend on the Common Stock payable in shares of Common Stock or
any subdivision, combination or reclassification of the Common Stock (a
"Dilution Event"). In the event of liquidation of the Company, the holder of
each Preferred Share will be entitled to receive a preferential liquidation
payment equal to the greater of $1.00 and 100 times the aggregate per share
amount to be distributed to the holders of the Common Stock, adjusted to give
effect to any Dilution Event, plus an amount equal to accrued and unpaid
dividends and distributions on such Preferred Share, whether or not declared,
to the date of such payment. Each Preferred Share will entitle the holder
thereof to 100 votes on all matters submitted to a vote of the shareholders of
the Company, voting together as a single class with the holders of the Common
Stock and the holders of any other class of capital stock having general voting
rights, adjusted to give effect to any Dilution Event. In the event of any
merger, consolidation or other transaction in which the outstanding shares of
Common Stock of the Company are exchanged for or converted into other capital
stock, securities, cash or other property, each Preferred Share will be
similarly exchanged or converted into 100 times the per share amount applicable
to the Common Stock, adjusted to give effect to any Dilution Event. The Rights
will expire on the close of business on September 25, 2007 (the "Final
Expiration Date"), unless the Final Expiration Date is extended or the Rights
are earlier redeemed or exchanged by the Company. Until a Right is exercised,
the holder thereof, as such, will have no rights as a shareholder of the
Company, including, without limitation, the right to vote or to receive
dividends.
In the event that (i) a Person becomes an Acquiring Person, (ii) a Person
(other than an Exempt Person) commences or first publicly announces the
intention of a Person (other than an Exempt Person) to commence a tender or
exchange offer if, upon the consummation thereof, such Person would be the
beneficial owner of 15% or more of the shares of Common Stock outstanding, or
(iii) a person is declared to be an Adverse Person (where the earliest of such
events shall be referred to as a "Flip-In Event"), proper provision will be
made so that the registered holder of each Right (other than Rights
beneficially owned by a Restricted Person or their designated transferees) will
thereafter have the right, unless the Rights are earlier redeemed, exchanged or
expire, to acquire, upon exercise
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and payment of the Exercise Price, to receive the number of shares of Common
Stock which, at the time of the occurrence of such event, will have a market
value equal to two times the then current Exercise Price. After a Flip-In
Event, all rights which are, or (under certain circumstances specified in the
Rights Agreement) were, beneficially owned by a Restricted Person or designated
transferees therefrom, will be or become void. Under no circumstances may a
Right be exercised unless the Company's option to redeem the Rights has
expired.
At any time after a Flip-In Event and prior to the time that any Person
(other than an Exempt Person), together with its affiliates and associates, has
become the beneficial owner of 50% or more of the outstanding shares of Common
Stock, the Board may direct that all or any part of the outstanding and
exercisable Rights (other than Rights which have become void) be exchanged for
shares of Common Stock at the exchange rate of one share of Common Stock per
Right, adjusted to give effect to any Dilution Event. Any partial exchange
will be effected pro rata among the registered holders of the Rights based upon
the number of Rights held.
If, on or after the occurrence of a Flip-In Event: (i) the Company merges
into or consolidates with an Interested Shareholder (as hereinafter defined)
or, unless all holders of the Common Stock are treated the same, another Person
(with limited designated exceptions); (ii) an Interested Shareholder or, unless
all holders of the Common Stock are treated the same, another Person (with
limited exceptions) merges into the Company and either (A) all or part of the
outstanding shares of Common Stock of the Company are converted into capital
stock or other securities of any other Person (or the Company), cash and/or
other property, or (B) such shares remain outstanding, unconverted and
unchanged; or (iii) the Company sells or transfers 50% or more of its
consolidated assets or earning power in one or a series of related transactions
to an Interested Shareholder or, unless all holders of the Company's
outstanding shares of Common Stock are treated the same, another Person (with
limited exceptions); then proper provision will be made so that the registered
holder of each Right (other than Rights which have become void) will thereafter
have the right to acquire, upon exercise and payment of the Exercise Price, the
number of common shares of the acquiror (or of another Person affiliated
therewith) which, at the time of consummation of such transaction, will have a
market value equal to two times the then current Exercise Price. An
"Interested Shareholder" is any Restricted Person or any affiliate or associate
of any other Person in which such Restricted Person has an interest, or any
Person acting, directly or indirectly, on behalf of or in concert with any such
Restricted Person.
The Exercise Price payable and the number and kind of shares of capital
stock issuable upon exercise of the Rights are subject to adjustment from time
to time to prevent dilution (i) in the event of a dividend payable in Preferred
Shares on, or a subdivision, combination or reclassification of, the Preferred
Shares, (ii) upon the grant to the holders of the Preferred Shares of certain
options, warrants or rights to subscribe for or purchase Preferred Shares at a
price, or securities convertible into or exchangeable for Preferred Shares with
a conversion or exchange price, less than the then current market price of the
Preferred Shares, or (iii) upon the distribution to the holders of the
Preferred Shares of cash, securities, evidences of indebtedness or other
property (other than a regular quarterly cash dividend or a dividend payable in
Preferred Shares) or options, warrants or rights (other than those referred to
in clause (ii) above). The number of outstanding Rights and the number of one
one-hundredths of a Preferred Share issuable upon exercise of each Right also
are subject to adjustment in the event of a dividend on the Common Stock
payable in shares of Common Stock or a subdivision, combination or
reclassification of the Common Stock occurring, in any such case, prior to the
Distribution Date.
With certain specified exceptions, no adjustment in the Exercise Price
will be made until the cumulative adjustments required equal at least 1% of the
Exercise Price. The Company is not required to issue fractional Preferred
Shares (other than fractions which are multiples of one one-hundredth of a
Preferred Share), but in lieu thereof the Company will make a cash payment
based upon the market value of the Preferred Shares on the trading day
immediately preceding the date of exercise.
At any time prior to the earliest of the Distribution Date and the Final
Expiration Date, the Board may redeem the Rights in whole, but not in part, at
the redemption price of $.0l per Right, adjusted to give effect to any Dilution
Event (the "Redemption Price"); provided, however, that, under certain
circumstances specified in the Rights Agreement, the Rights may not be redeemed
unless there is more than one Disinterested Director in office and such
redemption is approved by at least a majority of such Disinterested Directors.
The redemption of the Rights may
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be made effective at such time, on such basis and with such conditions as the
Board, in its sole discretion, may establish. Immediately after action by the
Board directing the redemption of the Rights, the option to exercise the Rights
will terminate, and thereafter each registered holder of the Rights will only
be entitled to receive the Redemption Price therefor.
Prior to the Distribution Date, the terms of the Rights and the Rights
Agreement may be supplemented or amended by the Board in any manner. From and
after the Distribution Date, the Rights may be supplemented or amended by the
Board, without the approval of the holders of the Rights, in certain respects
which do not materially adversely affect, as determined by the Board (with the
concurrence of at least a majority of the Disinterested Directors), the
interests of such holders (excluding the interests of any Restricted Person);
provided, however, that the Rights Agreement cannot be amended to lengthen (i)
any time period unless such lengthening is approved by at least a majority of
the Disinterested Directors, and such lengthening is for the benefit of the
holders of the Rights (excluding the interests of any Acquiring Person, Adverse
Person or affiliate or associate thereof), or (ii) any time period relating to
when the Rights may be redeemed if at such time the Rights are not then
redeemable.
The Rights have certain anti-takeover effects. The Rights will cause
substantial dilution to a person or group that attempts to acquire the Company
in certain circumstances. Accordingly, the existence of the Rights may deter
certain potential acquirors from making certain takeover proposals or tender
offers. The Rights should not interfere with any merger or other business
combination approved by the Board of Directors since the Rights may be redeemed
by the Company as described above.
A copy of the Rights Agreement is attached hereto as an exhibit and
incorporated herein by reference. The foregoing description of the Rights is
qualified in its entirety by reference to the Rights Agreement and such
exhibits thereto.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS
(C) EXHIBITS.
3.5 Articles of Amendment to the Articles of Incorporation
of St. Francis Capital Corporation.
4.1 Shareholder Rights Agreement dated as of September 25,
1997 between St. Francis Capital Corporation and
Firstar Trust Co.
99.1 Press Release dated September 25, 1997.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
Date: September 25, 1997 ST. FRANCIS CAPITAL CORPORATION
By: /s/ Thomas R. Perz
-------------------------------------
Thomas R. Perz, President and
Chief Executive Officer
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APPENDIX AND EXHIBIT INDEX
<TABLE>
<CAPTION>
APPENDIX AND SEQUENTIAL
EXHIBIT NO. DESCRIPTION PAGE NO.
- ------------ ----------- ----------
<S> <C> <C>
3.5 Articles of Amendment to the Articles of Incorporation of
St. Francis Capital Corporation..........................
4.1 Shareholder Rights Agreement dated as of September 25,
1997 between St. Francis Capital Corporation and
Firstar Trust Co.........................................
99.1 Press Release dated September 25, 1997...................
</TABLE>
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EXHIBIT 3.5
ARTICLES OF AMENDMENT
TO THE
ARTICLES OF INCORPORATION
OF
ST. FRANCIS CAPITAL CORP.
St. Francis Capital Corporation, a corporation organized and existing
under Chapter 180 of the Wisconsin Business Corporation Law (the
"Corporation"), does hereby certify that the Board of Directors of the
Corporation (the "Board") duly adopted the necessary resolutions to create a
new series of Preferred Stock consisting of 120,000 shares designated as Series
A Junior Participating Preferred Stock, $.01 par value per share, pursuant to
Section 180.0602 of the Wisconsin Business Corporation Law ("WBCL") and the
authority conferred upon the Board by the Articles of Incorporation; and to
effectuate the foregoing, further approved the amendment of Subsection B of
Article IV of the existing Articles of Incorporation, to read as follows:
B. PREFERRED STOCK. Shares of Preferred Stock may be issued from
time to time, in one or more classes or series, in any manner permitted by
law pursuant to a resolution or resolutions of the Board, each class or
series to be appropriately designated prior to issuance of any shares
thereof. The Board is authorized to act under WBCL Section 180.0602 (or
any successor statutory provision) to determine with respect to any class
or series of shares of preferred stock the preference, limitations and
relative rights, in whole or in part, before the issuance of any shares of
that class or series. The Board also may create one or more series within
a class and, with respect to any series, determine the number of shares,
the distinguishing designation and preferences, limitation and relative
rights, in whole or in part, before issuance of shares of that series.
1. DESIGNATION OF SERIES: NUMBER OF SHARES. There is
designated a series of Preferred Stock titled as "Series A Junior
Participating Preferred Stock," par value $.01 per share (the "Series A
Preferred Stock"), and the authorized number of shares constituting the
Series A Preferred Stock shall be 120,000. Such number of authorized
shares may be increased or decreased, from time to time, by resolution of
the Board; provided, however, that no such decrease shall reduce the number
of authorized shares of the Series A Preferred Stock to a number less than
the number of shares of the Series A Preferred Stock then outstanding, plus
the number of such shares then reserved for issuance upon the exercise of
any outstanding options, warrants or rights or the exercise of any
conversion or exchange privilege contained in any outstanding security
issued by the Corporation.
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2. DIVIDENDS AND DISTRIBUTIONS.
a. Subject to the rights of the holders of shares of any
other series of Preferred Stock (or shares of any other class of capital
stock of the Corporation) ranking senior to the Series A Preferred Stock
with respect to dividends, the holders of shares of the Series A Preferred
Stock, in preference to the holders of shares of Common Stock and of any
other class of capital stock of the Corporation ranking junior to the
Series A Preferred Stock with respect to dividends, shall be entitled to
receive, when, as and if declared by the Board out of funds legally
available therefor, such dividends, subject to the provision for adjustment
hereinafter set forth, equal to 100 times the aggregate per share amount of
all cash dividends, and 100 times the aggregate per share amount (payable
in kind) of all non-cash dividends or other distributions other than a
dividend payable in shares of Common Stock or subdivision of the
outstanding shares of Common Stock (by reclassification or otherwise),
declared on the Common Stock. In the event the Company shall at any time
after September 25, 1997 (i) declare any dividend on Common Stock payable
in shares of Common Stock, (ii) subdivide the outstanding Common Stock, or
(iii) combine the outstanding Common Stock into a smaller number of shares,
then in each such case the amount to which holders of shares of Series A
Preferred Stock were entitled immediately prior to such event shall be
adjusted by multiplying such amount by a fraction the numerator of which is
the number of shares of Common Stock outstanding immediately after such
event and the denominator of which is the number of shares of Common Stock
that were outstanding immediately prior to such event.
b. The Board shall declare, out of funds legally available
therefor, a dividend or distribution on the Series A Preferred Stock, as
provided in paragraph (a) of this Section immediately after it has declared
a dividend or distribution on the Common Stock (other than a dividend
payable in shares of Common Stock).
3. VOTING RIGHTS. In addition to any other voting rights
required by applicable law, the holders of shares of the Series A Preferred
Stock shall have the following voting rights:
a. Each share of the Series A Preferred Stock shall
entitle the holder thereof to 100 votes on all matters submitted to a vote
of the shareholders of the Corporation. The multiple of 100 (the "Voting
Multiple") set forth in the preceding sentence shall be adjusted from time
to time as hereinafter provided in this paragraph. In the event that the
Corporation shall at any time after the effective date of this amendment to
the Articles of Incorporation (the "Amendment") (i) declare or pay any
dividend on Common Stock payable in shares of Common Stock, or (ii) effect
a subdivision, combination or consolidation of the outstanding shares of
Common Stock (by reclassification or otherwise than by payment of a
dividend in shares of Common Stock) into a greater or lesser number of
shares of Common Stock, then, in each such case, the
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Voting Multiple thereafter applicable to the determination of the number of
votes per share to which the holders of shares of the Series A Preferred
Stock shall be entitled shall be the Voting Multiple in effect immediately
prior to such event multiplied by a fraction, the numerator of which shall
be the number of shares of Common Stock outstanding immediately after such
event and the denominator of which shall be the number of shares of Common
Stock that were outstanding immediately prior to such event.
b. Except as otherwise provided in this Amendment, in any
other amendment establishing another series of Preferred Stock (or any
series of any other class of capital stock of the Corporation) or by
applicable law, the holders of the Series A Preferred Stock, the holders of
Common Stock and the holders of any other class of capital stock of the
Corporation having general voting rights shall vote together as a single
class on all matters submitted to a vote of the shareholders of the
Corporation.
c. Except as otherwise provided in this Amendment or by
applicable law, the holders of the Series A Preferred Stock shall have no
special voting rights and their consent shall not be required (except to
the extent provided in paragraph (b) of this Section for the taking of any
corporate action.
4. CERTAIN RESTRICTIONS.
a. Whenever dividends or other distributions payable on
the Series A Preferred Stock as provided in Section 2 are in arrears,
thereafter and until all accrued and unpaid dividends and distributions,
whether or not declared, on outstanding shares of the Series A Preferred
Stock shall have been paid in full, the Corporation shall not:
(1) declare or pay dividends or make any other
distributions on any shares of any class of capital stock of the
Corporation ranking junior (either as to dividends or upon liquidation,
dissolution or winding up of the Corporation) to the Series A Preferred
Stock;
(2) declare or pay dividends, or make any other
distributions, on any shares of any class of capital stock of the
Corporation ranking on a parity (either as to dividends or upon
liquidation, dissolution or winding up of the Corporation) with the Series
A Preferred Stock, except dividends paid ratably on the Series A Preferred
Stock and all such parity stock on which dividends are accrued and unpaid
in proportion to the total amounts to which the holders of all such shares
are then entitled;
(3) redeem, purchase or otherwise acquire for
consideration any shares of any class of capital stock of the Corporation
ranking junior (either as to dividends or upon liquidation, dissolution or
winding up of the Corporation) to the Series A Preferred Stock, except that
the Corporation may at any time redeem, purchase or otherwise acquire any
shares of such junior stock
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in exchange for other shares of any class of capital stock of the
Corporation ranking junior (both as to dividends and upon dissolution,
liquidation or winding up of the Corporation) to the Series A Preferred
Stock; or
(4) purchase or otherwise acquire for consideration
any shares of the Series A Preferred Stock or any shares of any class of
capital stock of the Corporation ranking on a parity (either as to
dividends or upon liquidation, dissolution or winding up of the
Corporation) with the Series A Preferred Stock, or redeem any shares of
such parity stock, except in accordance with a purchase offer made in
writing or by publication to the holders of all such shares upon such terms
and conditions as the Board, after taking into consideration the respective
annual dividend rates and the other relative powers, preferences and rights
of the respective series and classes of such shares, shall determine in
good faith will result in fair and equitable treatment among the respective
holders of shares of all such series and classes.
b. The Corporation shall not permit any subsidiary of
the Corporation to purchase or otherwise acquire for consideration any
shares of any class of capital stock of the Corporation unless the
Corporation could, under paragraph (a) of this Section, purchase or
otherwise acquire such shares at such time and in such manner.
5. REACQUIRED SHARES. Any shares of the Series A Preferred
Stock purchased or otherwise acquired by the Corporation in any manner
whatsoever shall be retired and cancelled promptly after such purchase or
acquisition. All such cancelled shares shall thereupon become authorized
and unissued shares of Preferred Stock and may be reissued as part of any
new series of Preferred Stock, subject to the conditions and restrictions
on issuance set forth in the Articles of Incorporation of the Corporation,
from time to time, in any other amendment establishing another series of
Preferred Stock (or any series of any other class of capital stock of the
Corporation) or in any applicable law.
6. LIQUIDATION, DISSOLUTION OR WINDING UP. Upon any
liquidation (whether voluntary or otherwise), dissolution or winding up of
the Corporation, no distribution shall be made (a) to the holders of shares
of any class of capital stock of the Corporation ranking junior (either as
to dividends or upon liquidation, dissolution or winding up of the
Corporation) to the Series A Preferred Stock unless, prior thereto, the
holder of each outstanding share of the Series A Preferred Stock shall have
received an amount equal to the accrued and unpaid dividends and
distributions thereon, whether or not declared, to the date of such
payment, plus an amount equal to the greater of (i) $1.00, and (ii) an
aggregate amount, subject to adjustment as hereinafter provided in this
Section, equal to 100 times the aggregate per share amount to be
distributed to the holders of Common Stock, or (b) to the holders of shares
of any class of capital stock of the Corporation ranking on a parity
(either as to dividends or upon liquidation, dissolution or winding up of
the Corporation) with the Series A Preferred Stock, except distributions
made ratably on the Series A Preferred Stock and all such
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parity stock in proportion to the total amounts to which the holders of all
such shares are entitled upon such liquidation, dissolution or winding up.
In the event that the Corporation shall at any time after the effective
date of this Amendment (a) declare or pay any dividend on Common Stock
payable in shares of Common Stock, or (b) effect a subdivision, combination
or consolidation of the outstanding shares of Common Stock (by
reclassification or otherwise than by payment of a dividend in shares of
Common Stock) into a greater or lesser number of shares of Common Stock,
then, in each such case, the aggregate amount per share to which the
holders of shares of the Series A Preferred Stock would have been entitled
to receive immediately prior to such event pursuant to clause (a)(ii) of
the preceding sentence shall be adjusted by multiplying such aggregate per
share amount by a fraction, the numerator of which shall be the number of
shares of Common Stock outstanding immediately after such event and the
denominator of which shall be the number of shares of Common Stock that
were outstanding immediately prior to such event.
7. CONSOLIDATION, MERGER, ETC. In the event that the
Corporation shall be a party to any consolidation, merger, combination or
other transaction in which the outstanding shares of Common Stock are
converted or changed into or exchanged for other capital stock, securities,
cash or other property, or any combination thereof, then, in each such
case, each share of the Series A Preferred Stock shall at the same time be
similarly converted or changed into or exchanged for an aggregate amount,
subject to adjustment as hereinafter provided in this Section, equal to 100
times the aggregate amount of capital stock, securities, cash and/or other
property (payable in kind), as the case may be, into which or for which
each share of Common Stock is being converted or changed or exchanged. In
the event that the Corporation shall at any time after the effective date
of this Amendment declare or pay any dividend on Common Stock payable in
shares of Common Stock or effect a subdivision, combination or
consolidation of the outstanding shares of Common Stock (by
reclassification or otherwise than by payment of a dividend in shares of
Common Stock) into a greater or lesser number of shares of Common Stock,
then, in each such case, the aggregate amount per share to which the
holders of shares of the Series A Preferred Stock would have been entitled
to receive immediately prior to such event pursuant to the preceding
sentence shall be adjusted by multiplying such aggregate per share amount
by a fraction, the numerator of which shall be the number of shares of
Common Stock outstanding immediately after such event and the denominator
of which shall be the number of shares of Common Stock that were
outstanding immediately prior to such event.
8. NO REDEMPTION. The shares of the Series A Preferred Stock
shall not be redeemable at any time.
9. RANK. Unless otherwise provided in the amendment
establishing another series of Preferred Stock after the effective date of
this Amendment, the Series A Preferred Stock shall rank, as to the payment
of
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dividends and the making of any other distribution of assets of the
Corporation, senior to the Common Stock, but junior to all other series of
the Preferred Stock.
10. AMENDMENTS. The Articles of Incorporation of the Corporation
shall not be amended in any manner which would materially alter or change
the powers, preferences and rights of the Series A Preferred Stock so as to
adversely affect any thereof without the affirmative vote of the holders of
at least two-thirds of the outstanding shares of the Series A Preferred
Stock, voting separately as a single class.
11. FRACTIONAL SHARES. Fractional shares of the Series A
Preferred Stock may be issued, but, unless the Board shall otherwise
determine, only in multiples of one one-hundredth of a share. The holder
of any fractional share of the Series A Preferred Stock shall be entitled
to receive dividends, participate in distributions, exercise voting rights
and have the benefit of all other powers, preferences and rights relating
to the Series A Preferred Stock in the same proportion as such fractional
share bears to a whole share.
The foregoing constitutes the text of this Amendment. None of the shares
of Series A Junior Participating Preferred Stock authorized thereby has been
issued as of the date hereof.
This Amendment to the Articles of Incorporation, of the Corporation was
adopted by the Board of Directors of the Corporation at a meeting of the Board
of Directors held on September 25, 1997 in accordance with Section 180.0602 of
the Wisconsin Business Corporation Law. Shareholder approval of this Amendment
was not required.
Dated as of the 25th day of September, 1997.
By: /s/ Thomas R. Perz
-----------------------------------
Thomas R. Perz
President/Chief Executive Officer
This document was drafted by and is returnable to:
JAMES P. PETERSON, ESQ.
MICHAEL BEST & FRIEDRICH LLP
100 EAST WISCONSIN AVENUE
SUITE 3300
MILWAUKEE, WI 53202
(414) 271-6560
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<PAGE> 1
EXHIBIT 4.1
SHAREHOLDER RIGHTS AGREEMENT
DATED AS OF SEPTEMBER 25, 1997
BETWEEN
ST. FRANCIS CAPITAL CORPORATION
AND
FIRSTAR TRUST CO.
AS RIGHTS AGENT
<PAGE> 2
SHAREHOLDER RIGHTS AGREEMENT
THIS SHAREHOLDERS RIGHTS AGREEMENT (this "Agreement") is dated as of
September 25, 1997 between St. Francis Capital Corporation, a Wisconsin
corporation (the "Company"), and Firstar Trust Co., a Wisconsin-chartered trust
company (the "Rights Agent").
W I T N E S S E T H:
WHEREAS, the Board of Directors of the Company (the "Board") desires to
provide all shareholders of the Company with the opportunity to benefit from
the long-term prospects and value of the Company and to ensure that all such
shareholders receive fair and equal treatment in the event of any proposed
takeover of the Company; and
WHEREAS, on September 25, 1997, the Board authorized and declared a
dividend of one preferred stock purchase right (individually a "Right" and
collectively the "Rights") for each share of Common Stock (as hereinafter
defined) of the Company outstanding at the Close of Business (as hereinafter
defined) on October 10, 1997 (the "Record Date"), each Right representing the
right to purchase one one-hundredth of a Preferred Share (as hereinafter
defined), upon the terms and subject to the conditions hereinafter set forth,
and contemplates that one Right will be issued with respect to each share of
Common Stock which shall become outstanding after the Record Date and prior to
the earlier of the Redemption Date and the Final Expiration Date (as such terms
are hereinafter defined), including any shares of Common Stock issued by reason
of the exercise of any option, warrant, right (other than the Rights) or
conversion or exchange privilege contained in any option, warrant, right (other
than the Rights) or convertible or exchangeable security issued by the Company
prior to the Distribution Date (as hereinafter defined), unless the Board shall
expressly provide to the contrary at the time of issuance of any such option,
warrant, right or convertible or exchangeable security;
NOW, THEREFORE, in consideration of the premises and the mutual agreements
herein set forth, the parties hereto agree as follows:
ARTICLE I
CERTAIN DEFINITIONS
1.1 CERTAIN DEFINITIONS. For the purposes of this Agreement, the
following terms shall have the respective meanings set forth below:
(a) "Acquiring Person" shall mean any Person (as hereinafter defined)
who or which, together with all Affiliates and Associates (as hereinafter
defined) of such Person, shall be the Beneficial Owner (as hereinafter defined)
of 15% or more of the shares of Common Stock of the Company then outstanding,
but shall not include (i) the Company, (ii) any Subsidiary (as hereinafter
defined) of the Company, (iii) any employee stock ownership plan, employee
benefit plan or other compensation program or arrangement of the Company or any
Subsidiary, or (iv) any Person holding such shares of Common Stock for or
pursuant to the terms of any such plan,
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<PAGE> 3
program or arrangement set forth in (iii) above (collectively, "Exempt
Persons"). Notwithstanding the preceding sentence, (A) no Person shall become
an Acquiring Person as the result of an acquisition by the Company of shares of
its Common Stock which, by reason of reducing the number of then outstanding
shares of Common Stock, increases the percentage of then outstanding shares of
Common Stock Beneficially Owned by such Person to 15% or more; provided,
however, that if such Person shall, after such acquisition by the Company,
become the Beneficial Owner (as hereinafter defined) of any additional shares of
Common Stock of the Company, then such Person shall be deemed to be an Acquiring
Person, and (B) an Acquiring Person shall not include any Person who is the
Beneficial Owner of 15% or more of the outstanding shares of Common Stock but
who acquired Beneficial Ownership of shares of Common Stock without any plan or
intention to seek or affect control of the Company, if such Person promptly
enters into an irrevocable commitment promptly to divest, and thereafter
promptly divests (without exercising or retaining any power, including voting,
with respect to such shares) sufficient shares of Common Stock (or securities
convertible into, exchangeable into or exercisable for Common Stock), so that
such Person ceases to be the Beneficial Owner of 15% or more of the outstanding
shares of Common Stock, in which case such Person shall then be deemed never to
have become an Acquiring Person.
(b) "Affiliate" and "Associate" shall have the respective meanings
ascribed to such terms in Rule 12b-2 (as may be amended from time to time)
promulgated under the Exchange Act (as hereinafter defined); provided, however,
that no director or officer of the Company shall be deemed an Affiliate or
Associate of any other director or officer of the Company solely as a result of
his or her being a director or officer of the Company.
(c) "Beneficial Owner" (including the terms "Beneficially Own" and
"Beneficial Ownership"), when used with respect to any Person, shall be deemed
to include any securities which:
(i) such Person or any of such Person's Affiliates or Associates
beneficially owns, directly or indirectly (determined as provided in Rule
13d-3 [as may be amended from time to time] promulgated under the
Exchange Act);
(ii) such Person or any of such Person's Affiliates or
Associates, directly or indirectly, has:
(A) the right to acquire (whether such right is
exercisable immediately or only after the passage
of time or upon the satisfaction of any conditions,
or both) pursuant to any written or oral agreement,
arrangement or understanding (other than customary
agreements with and among underwriters and selling
group members with respect to a bona fide public
offering of securities), upon the exercise of any
options, warrants, rights (other than the Rights)
or conversion or exchange privileges or otherwise;
provided, however, that a Person shall not be
deemed the Beneficial Owner of, or to Beneficially
Own securities tendered pursuant to a tender or
exchange offer made by or on behalf
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<PAGE> 4
of such Person or any of such Person's Affiliates
or Associates until such tendered securities are
accepted for purchase or exchange, and securities
issuable upon exercise of the Rights at any time
prior to the Distribution Date, or
(B) the right to vote pursuant to any written or oral
agreement, arrangement or understanding; provided,
however, that a Person shall not be deemed the
Beneficial Owner of, or to Beneficially Own, any
security otherwise subject to this item (B) if such
agreement, arrangement or understanding to vote
arises solely from a revocable proxy or consent
given to such Person or any of such Person's
Affiliates or Associates in response to a public
proxy or consent solicitation made pursuant to, and
in accordance with, the applicable rules and
regulations under the Exchange Act, and is not also
then reportable by such Person on Schedule 13D (or
any comparable or successor report then in effect)
under the Exchange Act, or
(C) the right to dispose of pursuant to any written or
oral agreement, arrangement or understanding (other
than customary agreements with and among
underwriters and selling group members with respect
to a bona fide public offering of securities); or
(iii) are beneficially owned, directly or indirectly, by any
other Person with which such Person or any of such Person's Affiliates or
Associates has any written or oral agreement, arrangement or understanding
(other than customary agreements with and among underwriters and selling
group members with respect to a bona fide public offering of securities)
for the purpose of acquiring, holding, voting (except to the extent
contemplated by the proviso to Section 1.1(c)(ii)(B) hereof) or disposing
of any securities of the Company.
Notwithstanding anything contained in Section 1.1(c)(i) hereof, no director or
officer of the Company or any of its Subsidiaries shall be deemed to be the
Beneficial Owner of, or to Beneficially Own, shares of Common Stock or other
securities of the Company beneficially owned by any other director or officer
of the Company or any of its Subsidiaries solely as a result of his or her
being a director or officer of the Company or any of its Subsidiaries.
(d) "Business Day" shall mean any day other than a Saturday, a Sunday
or a day on which banking institutions in the State of Wisconsin are authorized
or obligated by law or executive order to close.
(e) "Certificate of Designations" shall mean the Certificate of
Designations for the Preferred Shares in substantially the form attached hereto
as EXHIBIT A.
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(f) "Close of Business" on any given date shall mean 5:00 P.M.,
Wisconsin time, on such date or, if such date is not a Business Day, then 5:00
P.M., Wisconsin time, on the next succeeding Business Day.
(g) "Common Stock," when used with reference to the Company,
shall mean the Common Stock, $.01 par value per share, of the Company. "Common
Stock," when used with reference to any Person other than the Company, shall
mean the capital stock with the greatest voting power (or the other equity
securities or equity interests having the power to control or direct management)
of such Person or, if such Person is a Subsidiary of another Person, of the
Person which ultimately controls such first-mentioned Person and which has
issued and outstanding such capital stock, equity securities or equity
interests.
(h) "Disinterested Director" shall mean any member of the Board
who is not a Restricted Person (as hereinafter defined), or a representative or
nominee of a Restricted Person, who was a member of the Board as of the date of
this Agreement, or any individual who subsequently becomes a member of the Board
after the date of this Agreement who is not a Restricted Person, or a
representative or nominee of a Restricted Person, if such individual's
nomination for election or election to the Board is recommended or approved by a
majority of the Disinterested Directors then in office.
(i) "Exchange Act" shall mean the Securities Exchange Act of
1934, as amended.
(j) "Fair Market Value," when used with respect to Preferred
Shares or shares of Common Stock or other capital stock of any class
(collectively, the "Stock"), to any option, warrant, right or other security or
evidence of indebtedness (collectively, a "Security") or to any other property,
shall be determined as follows:
(i) In the case of any Stock or Security which is publicly
traded, the Fair Market Value on any date shall be deemed to be the average
of the daily closing prices per share of such Stock or per unit of such
Security for the 30 consecutive Trading Days (as hereinafter defined)
immediately prior to such date; provided, however, that in the event that
the Fair Market Value per share of any Stock is determined during a period
commencing after the public announcement by its issuer of a dividend or
distribution on such Stock payable in shares of such Stock or securities
convertible into or exchangeable for shares of such Stock or a subdivision,
combination, consolidation or reclassification of such Stock, and ending
prior to the expiration of the 30 Trading Days after the ex-dividend date
for such dividend or distribution, or the record date for such subdivision,
combination, consolidation or reclassification, then, in each such case,
the Fair Market Value of such Stock shall be properly adjusted to take into
account "ex-dividend" trading. The closing price for each day shall be the
last sale price, regular way, or, in case no such sale shall take place on
such day, the average of the closing bid and asked prices, regular way, in
either case as reported in the principal consolidated transaction reporting
system with respect to securities listed or admitted to trading, as
reported in the principal consolidated transaction reporting system with
respect to securities listed or admitted to trading on the principal
national securities exchange on which such Stock or Security is listed or
admitted to trading; or if such Stock or Security is not listed or admitted
to
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<PAGE> 6
trading on any national securities exchange, the last quoted price or, if
not so quoted, the average of the last quoted high bid and low asked prices
in the over-the-counter market, as reported by Nasdaq or any other similar
system then in use; or if on any such day no bid for such Stock or Security
is quoted by any such organization, the average of the closing bid and
asked prices, as furnished by a professional market maker making a market
in such Stock or Security selected by the Board. If during any relevant
period no market maker is making a market in such Stock or Security, its
Fair Market Value on a specified date shall be determined reasonably and
with good faith to the holders of the Rights by the Board; provided,
however, that if at the time of such determination there shall be an
Acquiring Person or an Adverse Person (as hereinafter defined), the Fair
Market Value of such Stock or Security on such date shall be determined by
a nationally recognized investment banking firm selected by the Board,
which determination shall be described in a statement filed with the Rights
Agent and shall be binding on the Company, the Rights Agent and the holders
of the Rights.
(ii) In the case of any Stock or Security which is not
publicly traded, the Fair Market Value on any date shall be the fair value
per share of such Stock or per unit of such Security as determined
reasonably and with utmost good faith to the holders of the Rights by the
Board; provided, however, that if at the time of such determination there
shall be an Acquiring Person or an Adverse Person, the Fair Market Value of
such Stock or Security on such date shall be determined by a nationally
recognized investment banking firm selected by the Board, which
determination shall be described in a statement filed with the Rights Agent
and shall be binding on the Company, the Rights Agent and the holders of
the Rights.
(iii) In the case of any property which is not a Stock or a
Security, the Fair Market Value on any date shall be determined reasonably
and with utmost good faith to the holders of Rights by the Board; provided,
however, that if at the time of such determination there shall be an
Acquiring Person or an Adverse Person, the Fair Market Value of such
property on such date shall be determined by a nationally recognized
investment banking firm selected by the Board, which determination shall be
described in a statement filed with the Rights Agent and shall be binding
on the Company, the Rights Agent and the holders of the Rights.
(k) "Interested Shareholder" shall mean any Restricted Person and
any Affiliate or Associate of any other Person in which such Restricted Person
has an interest, and any Person acting, directly or indirectly, on behalf of or
in concert with any such Restricted Person.
(l) "Permitted Offer" shall mean any tender or exchange offer for
all of the outstanding shares of Common Stock of the Company at a price and on
terms determined, prior to the purchase of shares under such tender or exchange
offer, by at least a majority of the Disinterested Directors who are not
officers of the Company to be appropriate (taking into account all factors which
such Disinterested Directors deem relevant, including, without limitation,
prices reasonably obtainable if the Company or its assets were sold on an
orderly basis designed to realize maximum value) and otherwise in the best
interests of the Company and its shareholders (other than the Person or any
Affiliate or Associate thereof on whose behalf or for whose benefit such tender
or exchange offer is being made).
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<PAGE> 7
(m) "Person" shall mean any individual, firm, corporation,
partnership, limited liability company, association or other entity, and shall
include any successor (by merger or otherwise) of any of the foregoing.
(n) "Preferred Shares" shall mean the Series A Junior
Participating Preferred Stock, $.01 par value per share, of the Company, which
series shall have the powers, preferences and other rights set forth in the
Certificate of Designations.
(o) "Principal Party" shall mean: in the case of any transaction
described in Section 3.3(a)(i) or (ii), the Person which is the issuer of the
securities into which shares of Common Stock of the Company are being converted
or exchanged in such transaction or, if there shall be more than one such
issuer, the issuer having shares of Common Stock with the greatest aggregate
market value; or if no securities are being issued in such transaction for
shares of Common Stock of the Company, the Person which is the other party to
such transaction or, if there shall be more than one such Person, the Person
having shares of Common Stock with the greatest aggregate market value; and in
the case of any transaction described in Section 3.3(a)(iii), the Person which
is the party receiving the greatest portion of the assets or earning power sold
or otherwise transferred pursuant to such transaction or transactions; provided,
however, that in any such case (i) if the shares of Common Stock of such Person
shall not at the time of the consummation of such transaction been continuously
registered under Section 12 of the Exchange Act during the immediately preceding
twelve-month period, and such Person shall be a direct or indirect Subsidiary or
Affiliate of another Person the shares of Common Stock of which shall have been
so registered, "Principal Party" shall mean such other Person; (ii) if such
Person shall be a direct or indirect Subsidiary or Affiliate of more than one
other Person, the shares of Common Stock of two or more of which shall have been
so registered, "Principal Party" shall mean whichever of such other Persons
shall have Common Stock with the greatest aggregate market value; or (iii) if
such Person shall be owned, directly or indirectly, by a joint venture formed by
two or more Persons which are not owned, directly or indirectly, by the same
Person, the rules set forth in clauses (i) and (ii) of this proviso shall apply
to each chain of ownership of any joint venturer as though such joint venture
were a "Subsidiary" of all of such joint venturers, and the Principal Party in
each such chain shall bear the obligations and duties set forth in Section 3.3
in the same proportion as their direct or indirect ownership interest in such
Person bears to the total of such ownership interests.
(p) "Restricted Person" shall mean an Acquiring Person, an
Adverse Person and any Affiliate or Associate of an Acquiring Person or an
Adverse Person.
(q) "Rights Certificates" shall mean the certificates evidencing
the Rights after the Distribution Date.
(r) "Securities Act" shall mean the Securities Act of 1933, as
amended.
(s) "Share Acquisition Date" shall mean the first date on which
there shall be, as determined by a majority of the Disinterested Directors then
in office in their sole discretion, a public announcement (which shall include,
without limitation, any press release or publicly available filing with the
Securities and Exchange Commission or any other federal or state
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<PAGE> 8
governmental authority or agency) by the Company or any Person that such Person
has become an Acquiring Person.
(t) "Subsidiary" of any Person shall mean any corporation,
limited liability company or other entity of which a majority of the voting
power (with respect to such Person's equity securities or equity interests
having the power to control or direct management) is owned, directly or
indirectly, by such Person.
(u) "Summary of Rights" shall mean the Summary of Rights to
Purchase shares of Series A Junior Participating Preferred Stock in
substantially the form attached hereto as EXHIBIT C.
(v) "Trading Day" shall mean a day on which the principal
national securities exchange on which such Stock or Security is listed or
admitted to trading is open for the transaction of business or, if such Stock or
Security is not listed or admitted to trading on any national securities
exchange, a Business Day.
ARTICLE II
THE RIGHTS
2.1 ISSUANCE OF RIGHTS CERTIFICATES.
(a) The Rights shall be evidenced (subject to the provisions of
paragraph (b) of this Section) by the certificates for shares of Common Stock
registered in the names of holders of Common Stock (which certificates for
shares of Common Stock also shall be deemed to be certificates for Rights) and
not by separate certificates until the earliest of (such date being hereinafter
the "Distribution Date"):
(i) The Close of Business on the tenth Business Day after
the Share Acquisition Date (or, if the Share Acquisition Date shall have
occurred prior to the Record Date, the Close of Business on the tenth
Business Day after the Record Date);
(ii) The Close of Business on the tenth Business Day (or
such other Business Day as may be determined, in compliance with this
Agreement, by action of the Board) after the date of the commencement by
any Person (other than an Exempt Person) of, or the first public
announcement of the intention of any Person (other than an Exempt Person)
to commence, a tender or exchange offer if, upon the consummation thereof,
such Person would be the Beneficial Owner of 15% or more of the shares of
Common Stock of the Company then outstanding; and
(iii) The Close of Business on the tenth Business Day after
at least a majority of the Disinterested Directors who are not officers of
the Company shall have determined that a Person is an "Adverse Person" (as
hereinafter defined).
Such date shall be referred to herein as the "Distribution Date"; provided,
however, that if any tender or exchange offer referred to in Section 2.1(a)(ii)
is cancelled, terminated or otherwise
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<PAGE> 9
withdrawn prior to the Distribution Date without the purchase of any Common
Stock pursuant thereto, such offer shall be deemed for the purposes of the
definition of "Distribution Date" never to have been commenced or publicly
announced.
(b) As soon as practicable after the Distribution Date (or, in
the case of any shares of Common Stock of the Company which are issued or
otherwise become outstanding after the Distribution Date and prior to the Final
Expiration Date, including any shares of Common Stock issued by reason of the
exercise of any option, warrant, right (other than the Rights) or conversion or
exchange privilege contained in any option, warrant, right (other than the
Rights) or convertible or exchangeable security issued by the Company prior to
the Distribution Date, unless the Board shall have expressly provided to the
contrary at the time of issuance of any such option, warrant, right or
convertible or exchangeable security, simultaneously with the issuance of stock
certificates for such shares of Common Stock), the Company shall prepare and
execute, the Rights Agent shall countersign and the Company shall deliver or
cause to be delivered or the Rights Agent shall, if requested, deliver, by
first-class mail, postage prepaid, to each record holder of shares of Common
Stock of the Company as of the Close of Business on the Distribution Date or, in
the case of shares of Common Stock issued or otherwise becoming outstanding
after the Distribution Date (unless otherwise provided), to each record holder
of the shares of Common Stock so being issued or becoming outstanding at the
time of such occurrence, at the record holder's last address shown on the
registry books of the transfer agent for the Common Stock of the Company, one or
more Rights Certificates evidencing one Right for each share of Common Stock of
the Company so held, issued or becoming outstanding. As of and after the
Distribution Date, the Rights shall be evidenced solely by the Rights
Certificates.
(c) On the Record Date, or as soon as practicable thereafter, the
Company shall send a copy of the Summary of Rights, by first-class mail, postage
prepaid, to each record holder of shares of Common Stock of the Company as of
the Close of Business on the Record Date, at such record holder's last address
as shown by the records of the Company.
(d) Until the Distribution Date, no Rights Certificates shall be
issued. Each stock certificate for shares of Common Stock of the Company
outstanding as of the Record Date, until the earliest of the Distribution Date,
the Redemption Date and the Final Expiration Date, shall be deemed also to
constitute a certificate for the Rights associated with the shares represented
thereby, together with a copy of the Summary of Rights attached thereto and the
registered holder of such shares also shall be the registered holder of the
associated Rights. Until the earliest of the Distribution Date, the Redemption
Date and the Final Expiration Date, the surrender for transfer of any such stock
certificate, with or without a copy of the Summary of Rights attached thereto,
shall constitute the transfer of the Rights associated with the shares of Common
Stock represented thereby.
(e) Any stock certificate for shares of Common Stock of the
Company which shall be delivered by or on behalf of the Company (including,
without limitation, stock certificates for shares of Common Stock which are
reacquired by the Company and then transferred) after the Record Date and prior
to the earliest of the Distribution Date, the Redemption Date and the Final
Expiration Date shall have impressed, printed or written thereon, or otherwise
affixed thereto, the following legend:
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<PAGE> 10
"This certificate also evidences and entitles the holder hereof to
certain Rights as set forth in the Shareholder Rights Agreement
dated as of September 25, 1997 (the "Rights Agreement") between
St. Francis Capital Corporation and Firstar Trust Co., as Rights
Agent, the terms, provisions and conditions of which are
incorporated herein by reference and made a part hereof. The
Rights Agreement is on file at the principal office of the Rights
Agent, and the Rights Agent will mail to the holder of this
certificate a copy without charge after receipt of a written
request therefor. Under certain circumstances set forth in the
Rights Agreement, such Rights will be evidenced by separate
certificates and will no longer be evidenced by this certificate.
Under certain circumstances set forth in the Rights Agreement, the
Rights may be redeemed at a redemption price (subject to
adjustment) of $.01 per Right, may be exchanged, in whole or in
part, for shares of Common Stock at an exchange rate (subject to
adjustment) of one share of Common Stock per Right or may become
exercisable for securities or assets of the Company or another
entity. Under certain circumstances set forth in the Rights
Agreement, Rights Beneficially Owned by a Restricted Person (as
such terms are defined in the Rights Agreement) or by certain
transferees from a Restricted Person, shall be or become void."
Each stock certificate containing the foregoing legend, until the earliest of
the Distribution Date, the Redemption Date and the Final Expiration Date, shall
be deemed also to constitute a certificate for the Rights associated with the
shares represented thereby, and the registered holder of such shares also shall
be the registered holder of the associated Rights. The omission of the
foregoing legend shall not in any manner whatsoever affect the application or
interpretation of Section 2.5(c).
(f) In the event that the Company shall reacquire any shares of
its Common Stock after the Record Date and prior to the Distribution Date, the
Rights associated with such shares shall be deemed cancelled and retired, the
Company not being entitled to exercise any Rights associated with shares of its
Common Stock which are no longer outstanding.
2.2 FORM OF RIGHTS CERTIFICATES.
(a) The Rights Certificates (including the Form of Election to
Purchase and Certification of Status and the Form of Assignment and Certificate
of Status to be set forth on the reverse side thereof) shall be in substantially
the form attached hereto as EXHIBIT B and may have such marks of identification
or designation and such legends, summaries or endorsements set forth thereon as
the Company may deem appropriate or to comply with any applicable law or any
rule or regulation made pursuant thereto or with any rule or regulation of any
stock exchange on which the Rights may from time to time be listed. Subject to
the terms of this Agreement, the Rights Certificates, whenever distributed,
shall be dated as of the Record Date (or, in the case of Rights with respect to
shares of Common Stock issued or becoming outstanding after the Record Date, the
same date as the stock certificate evidencing such shares), shall (if the
Company shall so require) indicate the date of countersignature by the Rights
Agent and shall entitle the holders thereof to purchase such number of one
one-hundredths of a Preferred Share at the Exercise Price as shall be set forth
therein, subject to adjustment as provided herein.
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<PAGE> 11
(b) Any Rights Certificate that represents Rights Beneficially
Owned by: (i) a Restricted Person, (ii) a transferee from a Restricted Person
who becomes a transferee after the Acquiring Person or Adverse Person becomes
such, or (iii) a transferee from a Restricted Person who becomes a transferee
prior to or concurrently with the Acquiring Person or Adverse Person becoming
such and receives such Rights pursuant to either a transfer (whether or not for
consideration) from such Acquiring Person or Adverse Person (or any Affiliate or
Associate thereof) to holders of equity interests in such Acquiring Person or
Adverse Person (or any such Affiliate or Associate) or to any Person with whom
such Acquiring Person or Adverse Person (or any such Affiliate or Associate) has
any continuing written or oral agreement, arrangement or understanding regarding
the transferred Rights or a transfer which the Board has determined is part of a
plan, arrangement or understanding which intends to effect the avoidance of
Section 2.5(c) (collectively, a "Restricted Person/Transferee"), and any Rights
Certificate issued pursuant to the transfer, exchange, replacement or adjustment
of any other Rights Certificate referred to in this sentence, shall have deleted
therefrom the second sentence of the legend on the Rights Certificate attached
hereto as EXHIBIT B and, in lieu thereof, shall contain the following two
sentences:
"The Rights represented by this Rights Certificate are or were
Beneficially Owned by a Restricted Person as such term is defined
in the Rights Agreement. This Rights Certificate and the Rights
represented hereby shall be or become void under the circumstances
specified in Section 2.5(c) of the Rights Agreement."
The Company shall give prompt written notice to the Rights Agent after becoming
aware of the existence and identity of any Restricted Person. The failure to
insert the foregoing sentences on any such Rights Certificate or any defect
therein shall not in any manner whatsoever affect the application or
interpretation of Section 2.5(c). The Company shall specify to the Rights
Agent in writing which Rights Certificates are to be so legended.
2.3 COUNTERSIGNATURE AND REGISTRATION.
(a) The Rights Certificates shall be executed on behalf of the
Company by its Chairman of the Board, its President, any of its Vice Presidents
or its Treasurer, either manually or by facsimile signature attested by its
Secretary or any of its Assistant Secretaries, either manually or by facsimile
signature. The Rights Certificates shall be manually countersigned by an
authorized signatory of the Rights Agent and shall not be valid or obligatory
for any purpose unless so countersigned. In case any officer of the Company who
shall have executed any Rights Certificate shall cease to be such officer of the
Company before such Rights Certificate shall have been countersigned by an
authorized signatory of the Rights Agent and issued and delivered by or on
behalf of the Company, such Rights Certificate, nevertheless, may be
countersigned by the Rights Agent and issued and delivered by or on behalf of
the Company with the same force and effect as though the individual who executed
such Rights Certificate or who attested the Company's seal thereon had not
ceased to be such officer; and any Rights Certificate may be executed on behalf
of the Company by any individual who, at the actual date of such execution,
shall be a proper officer of the Company, although at the date of execution of
this Rights Agreement such person was not such an officer.
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(b) After the Distribution Date, the Rights Agent shall keep or
cause to be kept, at its principal office, books for registration and transfer
of the Rights Certificates issued hereunder. Such books shall show the names
and addresses of the respective holders of the Rights Certificates, the number
of Rights evidenced on its face by each Rights Certificate, the date of each
Rights Certificate and (if required by the Company) the date of countersignature
by the Rights Agent.
2.4 MUTILATED, DESTROYED, LOST OR STOLEN RIGHTS CERTIFICATES.
(a) If any mutilated Rights Certificate is surrendered to the
Rights Agent prior to the earlier to occur of the Final Expiration Date, the
time at which the Rights are exercised pursuant to Section 2.5 and the time at
which Rights are exchanged pursuant to the provisions of Section 3.2, the
Company shall execute and the Rights Agent shall countersign and deliver in
exchange therefor a new Rights Certificate evidencing the same number of Rights
as did the Rights Certificate so surrendered.
(b) If there shall be delivered to the Company and the Rights
Agent prior to the Final Expiration Date evidence to their satisfaction of the
destruction, loss or theft of any Rights Certificate and such security or
indemnity as may be required by them to save each of them and any of their
agents harmless, then, subject to the terms of this Agreement and in the absence
of notice to the Company or the Rights Agent that such Rights Certificate has
been acquired by a bona fide purchaser, the Company shall execute and upon its
request the Rights Agent shall countersign and deliver, in lieu of any such
destroyed, lost or stolen Rights Certificate, a new Rights Certificate
evidencing the same number of Rights as did the Rights Certificate so destroyed,
lost or stolen.
(c) As a condition to the issuance of any new Rights Certificate
under this Section, the Company may require the payment of a sum sufficient to
cover any tax or other governmental charge that may be imposed in relation
thereto and any other expenses (including the fees and expenses of the Rights
Agent) connected therewith.
(d) Every new Rights Certificate issued pursuant to this Section
in lieu of any destroyed, lost or stolen Rights Certificate shall evidence an
original additional contractual obligation of the Company, whether or not the
destroyed, lost or stolen Rights Certificate shall be at any time enforceable by
anyone, and shall be entitled to all the benefits of this Agreement equally and
proportionately with any and all other Rights duly issued hereunder.
2.5 EXERCISE OF RIGHTS; EXERCISE PRICE; EXPIRATION DATE OF RIGHTS.
(a) No Right may be exercised until the Business Day after the
Distribution Date. At any time on and after the Business Day after the
Distribution Date and prior to the earliest of (i) the Close of Business on
September 25, 2007 (the "Final Expiration Date"), and (ii) the time at which
such Rights are exchanged as provided in Section 3.2, the registered holder of
any Rights Certificate may exercise the Rights evidenced thereby, except as
otherwise provided herein and subject to Section 2.5(c), in whole or in part,
upon surrender of such Rights Certificate, with the Form of Election to Purchase
and Certification of Status on the reverse side thereof duly executed, together
with such signature guarantees and other documentation as the
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Rights Agent may reasonably request, to the Rights Agent at its principal
office, accompanied by payment (as provided in Section 2.5(b)) of the Exercise
Price for each one one-hundredth of a Preferred Share (or after a "Triggering
Event" [as hereinafter defined], the securities, cash and other property
purchasable in lieu thereof) as to which the surrendered Rights are then being
exercised.
(b) Upon receipt of a Rights Certificate representing then
exercisable Rights, with the Form of Election to Purchase and Certification of
Status on the reverse side thereof duly executed, together with such signature
guarantees and other documentation as the Rights Agent may reasonably request,
accompanied by payment of the Exercise Price for the number of one
one-hundredths of a Preferred Share (or after a Triggering Event, the
securities, cash and other property purchasable in lieu thereof) being
purchased, plus the amount of any applicable transfer tax (as determined by the
Rights Agent) required to be paid by the holder of such Rights Certificate, by
certified or cashier's check or money order payable to the order of the Company,
the Rights Agent shall, subject to the terms and conditions of this Agreement,
thereupon promptly:
(i) Requisition from any transfer agent for the Preferred
Shares (or, if the Rights Agent is such a transfer agent, make available)
stock certificates for the number of one one-hundredths of a Preferred
Share being purchased, the Company hereby irrevocably authorizing any such
transfer agent to comply with all such requests;
(ii) Requisition from the depository agent depository
receipts for the number of one one-hundredths of a Preferred Share being
purchased (in which case stock certificates for the Preferred Shares
represented by such depository receipts shall be deposited by the transfer
agent for the Preferred Shares with the depository agent and to which the
Company hereby irrevocably authorizing any such depository agent to comply
with all such requests) if the Company shall have elected to deposit the
Preferred Shares issuable upon exercise of the Rights with a depository
agent;
(iii) Requisition or obtain from the appropriate Person or
Persons such securities, cash and other property as may then be purchasable
in lieu of Preferred Shares after a Triggering Event (the Company hereby
irrevocably authorizing all such requests);
(iv) Requisition from the Company the amount of cash to be
paid in lieu of the issuance of any fractional share of Preferred Shares
when appropriate; and
(v) Cause the same to be delivered to or upon the order of
the registered holder of such Rights Certificate, registered (when
appropriate) in such name or names as may be designated by such registered
holder promptly after receipt of such stock certificates, depository
receipts, securities, cash and/or other property.
(c) Notwithstanding anything in this Agreement to the contrary,
from and after the first occurrence of a Flip-In Event (as hereinafter defined),
any Rights Beneficially Owned by a Restricted Person/Transferee shall be or
become void without any further action. No holder of such Rights shall have any
rights whatsoever with respect to such Rights, whether under any provision of
this Agreement or otherwise, from and after such first occurrence. The Company
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shall use all reasonable efforts to ensure that the provisions of this Section
and Section 2.2(b) are complied with, but shall have no liability to any holder
of the Rights Certificates or to any other Person as a result of the Company's
failure to make any applicable finding or determination with respect to any
Restricted Person, or any transferee of any thereof.
(d) Notwithstanding Section 2.5(a), a Right may be exercised by
the holder thereof on or after the Business Day after the Distribution Date and
prior to the receipt of the associated Rights Certificate by notifying the
Rights Agent in writing and furnishing to the Rights Agent such information and
evidence as to such election as the Rights Agent may reasonably request;
provided, however, that the Rights Agent shall not be required to take any of
the actions specified in this Section until such holder shall have fully
satisfied the applicable requirements specified therein.
(e) Neither the Rights Agent nor the Company shall be obligated
to undertake any action with respect to any Rights or Rights Certificate upon
the purported exercise or transfer thereof unless the registered holder thereof
shall have completed and signed the Certification of Status following the Form
of Election to Purchase or the Form of Assignment, as the case may be, set forth
on the reverse side of the Rights Certificate surrendered for such exercise or
transfer, and provided such additional evidence as to the identity of the
Beneficial Owner (or former Beneficial Owner) thereof or the Affiliates or
Associates thereof as the Company shall reasonably request.
(f) In case the registered holder of any Rights Certificate shall
exercise less than all of the Rights evidenced thereby, then, subject to the
provisions of Section 5.6, a new Rights Certificate evidencing the Rights
remaining unexercised shall be prepared and executed by the Company and
countersigned and delivered by the Rights Agent to the registered holder of such
surrendered Rights Certificate or to such registered holder's duly authorized
assigns.
2.6 EXERCISE PRICE. The price for each one one-hundredth of a
Preferred Share purchased upon exercise of the Rights shall initially be $150
(the "Exercise Price"), shall be subject to adjustment from time to time as
provided in this Agreement and shall be payable in lawful money of the United
States of America in accordance with Section 2.5(b).
2.7 ADJUSTMENT OF EXERCISE PRICE, NUMBER AND KIND OF SHARES AND
RIGHTS.
(a) In the event that the Company shall at any time after the
date of this Agreement declare a dividend on the Preferred Shares payable in
Preferred Shares, subdivide the outstanding Preferred Shares into a greater
number of Preferred Shares, combine or consolidate the outstanding Preferred
Shares into a smaller number of Preferred Shares or issue any shares of capital
stock of any class in a reclassification of the Preferred Shares (including any
such reclassification in connection with a combination or merger in which the
Company is the continuing or surviving corporation), except as otherwise
provided in this Section 2.7 and in Section 2.5(c), the Exercise Price in effect
at the Close of Business on the record date for such dividend or at the
effective time of such subdivision, combination, consolidation or
reclassification, and the number and kind of shares of capital stock issuable
upon exercise of the Rights at such date or time, shall be proportionately
adjusted so that the registered holder of each Right exercised after such date
or time shall be entitled to receive the aggregate number and kind
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<PAGE> 15
of shares of capital stock which, if such Right had been exercised immediately
prior to such date or time and at a time when the registry books of the transfer
agent for the Preferred Shares were open, such registered holder would have been
entitled to receive by reason of such dividend, subdivision, combination,
consolidation or reclassification; provided, however, that in no event shall the
consideration to be paid upon the exercise of one Right be less than the
aggregate par value of the shares of capital stock of the Company issuable upon
the exercise thereof. If an event shall occur which would require an adjustment
under both this paragraph and Section 3.1, the adjustment provided for in this
paragraph shall be in addition to, and shall be made prior to, any adjustment
required pursuant to such Section 3.1.
(b) In the event that the Company shall fix a record date for the
making of any distribution to all registered holders of Preferred Shares of
options, warrants or rights entitling them (for a period expiring not later than
45 calendar days after such record date) to subscribe for or purchase (i)
Preferred Shares or shares of capital stock of any class of the Company having
the same or more favorable powers, preferences and rights as the Preferred
Shares ("Equivalent Preferred Shares"), or (ii) securities convertible into or
exchangeable for Preferred Shares or Equivalent Preferred Shares, at a price per
Preferred Share or per Equivalent Preferred Share (or having a conversion or
exchange price per share, in the case of securities convertible into or
exchangeable for Preferred Shares or Equivalent Preferred Shares) less than the
Fair Market Value of one Preferred Share on such record date, the Exercise Price
to be in effect after such record date shall be determined by multiplying the
Exercise Price in effect immediately prior to such record date by a fraction,
the numerator of which shall be the number of Preferred Shares outstanding on
such record date, plus the number of Preferred Shares which the aggregate
offering price of the total number of Preferred Shares and/or Equivalent
Preferred Shares so to be offered (and/or the aggregate initial conversion or
exchange price, in the case of convertible or exchangeable securities so to be
offered) would purchase at such Fair Market Value, and the denominator of which
shall be the number of Preferred Shares outstanding on such record date, plus
the total number of Preferred Shares and/or Equivalent Preferred Shares so to be
offered (and/or into or for which the convertible or exchangeable securities so
to be offered are initially convertible or exchangeable); provided, however,
that in no event shall the consideration to be paid upon the exercise of one
Right be less than the aggregate par value of the shares of capital stock of the
Company issuable upon the exercise thereof. In case all or part of such
subscription price may be paid in a form other than cash, the value of such
non-cash consideration shall be its Fair Market Value. Preferred Shares owned by
or held for the account of the Company shall not be deemed outstanding for the
purpose of any computation provided for in this subsection. The adjustment
required by this subsection shall be made successively whenever such a record
date is fixed; and in the event that such distribution is not so made, the
Exercise Price shall be adjusted to the Exercise Price which would have been in
effect if such record date had not been fixed.
(c) In the event that the Company shall fix a record date for the
making of any distribution to all registered holders of Preferred Shares
(including any such distribution made in connection with a combination or merger
in which the Company is the continuing or surviving corporation) of cash (other
than a regular quarterly cash dividend), options, warrants or rights (other than
those referred to in Section 3.1), securities, evidences of indebtedness or
other property (excluding any dividend payable in Preferred Shares, but
including any dividend payable in other shares of capital stock), the Exercise
Price to be in effect after such record date shall be
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<PAGE> 16
determined by multiplying the Exercise Price in effect immediately prior to such
record date by a fraction, the numerator of which shall be the Fair Market Value
of one one-hundredth of a Preferred Share on such record date, less the Fair
Market Value of the cash, options, warrants, rights, securities, evidences of
indebtedness or other property so to be distributed and properly attributable to
one one-hundredth of a Preferred Share, and the denominator of which shall be
such Fair Market Value of one one-hundredth of a Preferred Share. The
adjustment required by this subsection shall be made successively whenever such
a record date is fixed; and in the event that such distribution is not so made,
the Exercise Price shall be adjusted to the Exercise Price which would have been
in effect if such record date had not been fixed.
(d) No adjustment in the Exercise Price shall be required unless
such adjustment would require an increase or decrease of at least 1.0% in the
Exercise Price then in effect; provided, however, that any adjustments which by
reason of this subsection are not required to be made shall be carried forward
and taken into account in any subsequent adjustment. All calculations under
this Section shall be made to the nearest whole cent, to the nearest one
ten-thousandth of a share of Common Stock or other capital stock of any class
(other than Preferred Shares) or to the nearest one one-millionth of a Preferred
Share, as the case may be. Notwithstanding the first sentence of this
subsection, any adjustment required by this Section shall be made no later than
the earliest to occur of three years after the date of the occurrence requiring
such adjustment, the Redemption Date, and the Final Expiration Date.
(e) If as a result of an adjustment required by any Triggering
Event the holder of any Rights thereafter exercised shall become entitled to
receive any shares of capital stock of any class of the Company (other than
Preferred Shares), the number of such other shares so receivable upon exercise
of any Rights shall be subject to adjustment from time to time in a manner and
on terms as nearly equivalent as reasonably possible to the provisions with
respect to the Preferred Shares contained in this Section, and the provisions of
this Agreement with respect to the Preferred Shares shall apply on like terms to
any such other shares.
(f) All Rights originally issued by the Company subsequent to any
adjustment made to the Exercise Price hereunder shall evidence the right to
purchase, at the adjusted Exercise Price, the number of one one-hundredths of a
Preferred Share purchasable from time to time hereunder upon exercise of the
Rights, all subject to further adjustment as provided herein.
(g) Before taking any action which would cause an adjustment
reducing the Exercise Price below one one-hundredth of the then par value, if
any, of the Preferred Shares issuable upon exercise of the Rights, the Company
shall take any corporate action which may, in the opinion of its counsel, be
necessary in order that the Company may validly and legally issue fully paid and
nonassessable Preferred Shares at such adjusted Exercise Price.
(h) Anything in this Section to the contrary notwithstanding, the
Board shall be entitled to make reductions in the Exercise Price, in addition to
the adjustments expressly required by this Section, as and to the extent that
the Board, in its sole discretion, shall determine to be advisable in order that
any dividend on the Preferred Shares payable in Preferred Shares, any
subdivision, combination or consolidation of the Preferred Shares (by
reclassification or otherwise than by payment of dividends in Preferred Shares)
into a greater or lesser number of Preferred Shares, any issuance of Preferred
Shares solely for cash at less than the Fair Market
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<PAGE> 17
Value thereof, any issuance solely for cash of Preferred Shares or securities
which by their terms are convertible into or exchangeable for Preferred Shares
or any issuance of options, warrants, rights, securities, evidences of
indebtedness or other property subject to subsection (b) or (c) of this Section,
hereafter made by the Company to the holders of the Preferred Shares, shall not
be taxable to such holders.
(i) Unless the Company shall have exercised the option provided
in Section 2.7(b), upon each adjustment of the Exercise Price as a result of the
calculations required by Sections 2.7(b) and 2.7(c), each Right outstanding
immediately prior to the making of such Exercise Price adjustment shall
thereafter evidence the right to purchase, at the adjusted Exercise Price, the
number of one one-hundredths of a Preferred Share (calculated to the nearest one
onemillionth) determined by (i) multiplying the number of one one-hundredths of
a Preferred Share purchasable upon exercise of such Right immediately prior to
such adjustment by the Exercise Price in effect immediately prior to such
adjustment and (ii) dividing the product so obtained by the Exercise Price in
effect immediately after such adjustment.
(j) The Company may elect, on or after the date on which any
adjustment of the Exercise Price is required to be made hereunder, to adjust the
number of Rights outstanding in substitution for making an adjustment in the
number of one one-hundredths of a Preferred Share purchasable upon exercise of
each Right. Each Right outstanding after such an adjustment in the number of
Rights shall be exercisable for the same number of one one-hundredths of a
Preferred Share as such Right was exercisable for immediately prior to such
adjustment; but each Right held of record prior to such adjustment shall become
the number of Rights (calculated to the nearest one ten-thousandth) determined
by dividing the Exercise Price in effect immediately prior to the occurrence
requiring the adjustment of the Exercise Price by the Exercise Price in effect
immediately after such adjustment of the Exercise Price. The Company shall make
a prompt public announcement of its election to adjust the number of Rights
outstanding, indicating the record date for the adjustment and, if known at the
time of such announcement, the amount of the adjustment to be made. Such record
date may be the date on which the Exercise Price is required to be adjusted or
any day thereafter, unless the Rights Certificates shall have been issued, in
which case such record date shall be at least ten days after the date of such
public announcement. If the Rights Certificates shall have been issued, upon
each adjustment of the number of Rights outstanding pursuant to this subsection,
the Company shall, as promptly as practicable, cause to be distributed to each
registered holder of the Rights Certificates on such record date Rights
Certificates evidencing, subject to Section 5.6, the additional Rights to which
such registered holder shall be entitled as a result of such adjustment; or, at
its option, the Company shall cause to be distributed to each such registered
holder, in substitution and replacement for the Rights Certificates held by such
registered holder prior to the date of such adjustment, but only upon surrender
thereof (if so required by the Company), new Rights Certificates evidencing all
the Rights to which such registered holder shall be entitled after such
adjustment. Rights Certificates so distributed shall be executed and
countersigned in the manner provided by this Agreement (and may designate, at
the option of the Company, the adjusted Exercise Price) and shall be registered
in the names of the registered holders of the Rights Certificates on the record
date specified in the aforesaid public announcement.
(k) In the event that the Company shall at any time after the
date of this Agreement and prior to the Distribution Date declare a dividend on
its outstanding shares of
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Common Stock payable in shares of Common Stock or effect a subdivision,
combination or consolidation of its outstanding shares of Common Stock (by
reclassification or otherwise than by payment of dividends in shares of Common
Stock) into a greater or lesser number of shares of Common Stock, then, in each
such case, the number of one one-hundredths of a Preferred Share purchasable
after such event upon proper exercise of each Right shall be determined by
multiplying the number of one one-hundredths of a Preferred Share so purchasable
immediately prior to such event by a fraction, the numerator of which shall be
the number of shares of Common Stock outstanding immediately prior to such event
and the denominator of which shall be the number of shares of Common Stock
outstanding immediately after such event; and each share of Common Stock
outstanding immediately after such event shall have issued with respect to it
the same number of Rights which each share of Common Stock outstanding
immediately prior to such event had issued with respect to it. This adjustment
shall be made successively whenever such a dividend is declared or such a
subdivision, combination or consolidation is effected.
(l) Irrespective of any adjustment or change in the Exercise
Price or the number of one one-hundredths of a Preferred Share issuable upon
exercise of the Rights, the Rights Certificates theretofore and thereafter
issued may continue to designate the Exercise Price and the number of one
one-hundredths of a Preferred Share which were designated in the Rights
Certificates originally issued hereunder.
(m) In any case in which this Section shall require an adjustment
of the Exercise Price effective as of the record date for a particular event,
the Company may elect to defer until the occurrence of such event the issuing to
the holder of any Rights exercised after such record date of the Preferred
Shares (and/or the other shares of capital stock, securities or other property
of the Company, if any) issuable upon such exercise in excess of the Preferred
Shares (and/or the other shares of capital stock, securities or other property
of the Company, if any) issuable upon such exercise on the basis of the Exercise
Price in effect immediately prior to such adjustment; provided, however, that
the Company shall deliver to such holder a due bill or other appropriate
instrument evidencing such holder's right to receive such excess upon the
occurrence of such event.
2.8 CANCELLATION AND DESTRUCTION OF RIGHTS CERTIFICATES. All Rights
Certificates surrendered for the purpose of exercise, transfer, split-up,
combination or exchange shall, if surrendered to the Company or to any of its
agents, be delivered to the Rights Agent for cancellation. If the Rights
Certificates are in cancelled form when surrendered to the Rights Agent, they
shall be cancelled by it. No Rights Certificates shall be issued in lieu of the
cancelled Rights Certificates except as expressly permitted by this Agreement.
The Company shall deliver to the Rights Agent for cancellation, and the Rights
Agent shall cancel, any other Rights Certificate purchased or reacquired by the
Company otherwise than upon the exercise thereof. The Rights Agent shall
deliver all cancelled Rights Certificates to the Company or shall, at the
written request of the Company, destroy such cancelled Rights Certificates and
deliver a certificate of the destruction thereof to the Company.
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2.9 RESERVATION AND AVAILABILITY OF PREFERRED SHARES.
(a) The Company covenants and agrees that it will cause to be
reserved and kept available out of its authorized and unissued Preferred Shares,
or any authorized and issued Preferred Shares held in its treasury, the number
of Preferred Shares required to permit the exercise in full of all outstanding
Rights.
(b) The Company covenants and agrees that it will take all such
action as may be necessary to ensure that all Preferred Shares delivered upon
exercise of the Rights shall, at the time of delivery of the stock certificates
therefor in accordance with Section 2.5(b) (including the receipt of payment of
the Exercise Price), be duly and validly authorized and issued and fully paid
and nonassessable.
(c) The Company covenants and agrees that it will use its best
efforts to (i) file, as soon as practicable after the occurrence of a Flip-In
Event for which the consideration to be delivered by the Company upon exercise
of the Rights has been determined, or as soon as required by law after the
Distribution Date, as the case may be, a registration statement on an
appropriate form under the Securities Act with respect to the securities
purchasable upon exercise of the Rights, (ii) cause such registration statement
to become effective as soon as practicable after such filing, and (iii) cause
such registration statement to remain effective (with a prospectus which at all
times meets the requirements of the Securities Act) until the earliest of the
date as of which the Rights are no longer exercisable for such securities, the
Redemption Date and the Final Expiration Date. The Company further covenants
and agrees that it will take such action as may be appropriate under, and which
will ensure compliance with, the securities or "blue sky" laws of such
jurisdictions as may be necessary or appropriate in connection with the
exercisability of the Rights. The Company may temporarily suspend, for not more
than 120 days after the applicable date specified in the first sentence of this
subsection, the exercisability of the Rights in order to prepare and file such
registration statement and permit it to become effective and to complete such
securities or "blue sky" law action. Upon such suspension, the Company shall
issue a public announcement stating that the exercisability of the Rights has
been temporarily suspended, and the Company also shall issue a public
announcement at such time as the suspension shall no longer be in effect.
Failure of the Company to notify the Rights Agent of any such suspension shall
not affect the effectiveness thereof. Notwithstanding any provision of this
Agreement to the contrary, the Rights shall not be exercisable in any
jurisdiction unless the requisite qualification or exemption in such
jurisdiction shall have been effected. Until otherwise notified in writing by
the Company, the Rights Agent may assume that each purported exercise of the
Rights is permitted by this Agreement and by applicable law, and the Rights
Agent shall not be liable for acting in reliance upon such assumption.
(d) The Company covenants and agrees that, subject to Section
2.4, it will pay when due and payable any and all federal and state original
issue or transfer taxes and charges which may be payable in respect of the
issuance or delivery of the Rights or the Rights Certificates or of any stock
certificate for Preferred Shares issued upon exercise of the Rights. The
Company shall not, however, be required to pay any transfer tax which may be
payable in respect of any transfer or delivery of any Rights Certificate to a
Person other than, or the issuance of any stock certificate for Preferred Shares
upon exercise of any of the Rights represented by such Rights Certificate in a
name other than, the registered holder of such Rights Certificate or
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to issue or deliver any Rights Certificate or stock certificate for Preferred
Shares upon such transfer or exercise until any such tax shall have been paid
(any such tax being payable by the holder of such Rights Certificate at the time
of surrender thereof) or until it has been established to the Company's
reasonable satisfaction that no such tax is due.
(e) After a Triggering Event, the provisions of this Section
shall apply, to the extent applicable and appropriate, to all shares of capital
stock and other securities then purchasable upon exercise of the Rights.
2.10 RECORD DATE OF PREFERRED SHARE OWNERSHIP. The Person in whose
name any stock certificate for Preferred Shares is issued upon exercise of any
of the Rights shall for all purposes be deemed to have become the holder of
record of the Preferred Shares represented thereby on, and such stock
certificate shall be dated, the date upon which the Rights Certificate
evidencing such Rights was duly surrendered to the Rights Agent with proper
payment of the Exercise Price (and all applicable transfer taxes, if any);
provided, however, that if the date of such surrender and payment shall be a
date upon which the registry books of the transfer agent for the Preferred
Shares are closed, such Person shall be deemed to have become the record holder
of such Preferred Shares on, and such stock certificate shall be dated, the next
succeeding Business Day on which such registry books are open.
ARTICLE III
ADJUSTMENTS TO THE RIGHTS IN THE EVENT OF
CERTAIN TRANSACTIONS
3.1 FLIP-IN.
(a) For purposes of this Article III, the "Product" shall be
defined as the product of the then current Exercise Price and the number of one
one-hundredths of a Preferred Share for which such Right was exercisable prior
to such occurrence.
(b) Subject to Section 3.2, promptly upon the occurrence of an
event described in (i), (ii) or (iii) below (where each event shall be referred
to herein as a "Flip-In Event") proper provision shall be made so that the
registered holder of each Right, except as otherwise provided in Section 2.5(c),
shall thereafter have the right to receive, upon exercise thereof and payment of
the Product, in accordance with this Agreement, in lieu of Preferred Shares, the
number of shares of Common Stock determined dividing the Product by 50% of the
Fair Market Value of one share of Common Stock on the date of such occurrence:
(i) The occurrence of a Share Acquisition Date;
(ii) The commencement by any Person (other than an Exempt
Person) of, or the first public announcement of the intention of any
Person (other than an Exempt Person) to commence, a tender or exchange
offer if, upon the consummation thereof, such Person would be the
Beneficial Owner of 15% or more of the shares of Common Stock of the
Company then outstanding; provided, however, that if any such tender
or exchange offer is cancelled, terminated or otherwise withdrawn
prior to the Distribution Date
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without the purchase of any Common Stock pursuant thereto, such offer
shall be deemed never to have been commenced or publicly announced; or
(iii) At least a majority of the Disinterested Directors
who are not officers of the Company shall declare that any Person is
an "Adverse Person." A Person may be declared as an Adverse Person if
it is determined by at least a majority of the Disinterested Directors
who are not officers of the Company after reasonable inquiry and
investigation (including such consultation, if any, with such Person
as such Disinterested Directors shall deem appropriate) that a Person,
either alone or with its Affiliates and Associates, has become the
Beneficial Owner of 10% or more of the outstanding shares of Common
Stock of the Company and that:
(A) such Beneficial Ownership by such Person is
intended to cause, is reasonably likely to
cause or will cause the Company to repurchase
the shares of Common Stock Beneficially Owned
by such Person (and/or its Affiliates and
Associates) or the Company to take other
action or enter into one or a series of
related transactions which would provide such
Person (and/or its Affiliates and Associates)
with short-term financial gain under
circumstances which would not be, in the
judgment of such Disinterested Directors, in
the best long-term interests of the Company
and its shareholders, or
(B) such Beneficial Ownership is having or
reasonably likely to have a material adverse
effect (including, but not limited to,
impairment of the Company's relationships
with customers or its ability to maintain its
competitive position) on the business or
prospects of the Company (provided, however,
that such Disinterested Directors may
determine not to declare a Person to be an
Adverse Person if, prior to the time that
such Person acquired 10% or more of the then
outstanding shares of Common Stock of the
Company, such Person provides a written
statement of its purposes and intentions in
connection with its proposed acquisition of
such shares of Common Stock, together with
any other information reasonably requested of
such Person by such Disinterested Directors,
and such Disinterested Directors, based on
such written statement and information and
such further inquiry and investigation as
such Disinterested Directors shall deem
necessary or appropriate, notify such Person
in writing that such Person will not then be
declared to be an Adverse Person.
The Disinterested Directors may expressly condition in any manner their
determination not to declare a Person to be an Adverse Person in such respects
as they deem appropriate, including, without limitation, such Person's not
acquiring more than a specified amount or percentage of
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the Company's then outstanding capital stock or other securities and/or such
Person's not taking actions inconsistent with the purposes and intentions
disclosed in its written statement provided to the Board.
(c) No delay or failure by at least a majority of the
Disinterested Directors who are not officers of the Company to declare any
Person to be an Adverse Person shall in any way waive or otherwise affect the
power of such Disinterested Directors thereafter to declare such Person to be an
Adverse Person. In the event that at least a majority of such Disinterested
Directors should at any time determine, after reasonable inquiry and
investigation, including such consultation, if any, with such Person as such
Disinterested Directors shall deem necessary or appropriate, that such Person
has not met or complied with any condition specified by such Disinterested
Directors, such Disinterested Directors may at any time thereafter declare such
Person to be an Adverse Person.
(d) In the event that there shall not be sufficient authorized
and unissued or treasury shares of Common Stock to permit the exercise in full
of the Rights in accordance with Section 3.1(b), the Company shall take all
necessary action to authorize and reserve for issuance such number of additional
shares of Common Stock as may from time to time be required to be issued upon
the exercise in full of all outstanding Rights and, if necessary, shall use its
best efforts to obtain shareholder approval thereof. Notwithstanding the
preceding sentence, if at least a majority of the Disinterested Directors shall
determine that such action is necessary or appropriate and is not contrary to
the best interests of the holders of the Rights or if a sufficient number of
shares of Common Stock cannot be issued for such purpose in accordance with the
provisions hereof, such Disinterested Directors may cause the Company, in lieu
of issuing shares of Common Stock to distribute, upon the exercise of each
Right, cash, debt securities, shares of preferred stock of the Company, other
property or any combination thereof, having an aggregate Fair Market Value equal
to the Fair Market Value of the number of shares of Common Stock which otherwise
would have been issuable. Any such decision by a majority of the Disinterested
Directors must be made and publicly announced within 45 days after the
occurrence of any Flip-In Event.
3.2 EXCHANGE.
(a) The Board may, at its option, at any time on or after the
occurrence of a Flip-In Event, exchange all or any part of the then outstanding
and exercisable Rights (which shall not include any Rights which have become
void pursuant to Section 2.5(c)) for shares of Common Stock of the Company at an
exchange rate of one share of Common Stock per Right, appropriately adjusted
(such exchange rate being hereinafter called the "Exchange Rate"); provided,
however, that the Board shall not be authorized to effect such an exchange at
any time after any Person (other than an Exempt Person), together with the
Affiliates and Associates of such Person, shall have become the Beneficial Owner
of 50.0% or more of the then outstanding shares of Common Stock of the Company.
(b) Immediately after action by the Board directing the exchange
of any Rights pursuant to this Section, and without any further action and
without any notice, the right to exercise such Rights shall terminate, and
thereafter each registered holder of such Rights shall only be entitled to
receive the number of shares of Common Stock of the Company which shall
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<PAGE> 23
equal the number of such Rights held by such registered holder multiplied
by the Exchange Rate then in effect. The Company shall give prompt written
notice to the Rights Agent and prompt public notice to the holders of the
Rights of any such exchange; provided, however, that the failure to give, or
any defect in, any such notice shall not affect the validity of such exchange.
Within 15 Business Days after action by the Board directing the exchange of any
Rights, the Company shall mail (or cause the Rights Agent to mail) a notice of
exchange to each registered holder of such Rights, at its last address
appearing on the registry books of the Rights Agent or, prior to the
Distribution Date, on the registry books of the transfer agent for the Common
Stock of the Company. Any notice which is mailed in the manner provided in
this subsection (b) shall be deemed given, whether or not received by the
registered holder to whom sent. Each notice of exchange shall state the method
by which the exchange of shares of Common Stock for Rights will be effected
and, in the event of any partial exchange, the number of Rights which will be
exchanged. Any partial exchange shall be effected pro rata among the
registered holders of the Rights based upon the number of Rights held
(excluding Rights which shall have become void pursuant to Section 2.5(c));
and, in such case, a new Rights Certificate evidencing the Rights not being
exchanged shall be prepared and executed by the Company and countersigned and
delivered by the Rights Agent to the registered holder of such Rights.
(c) In any exchange pursuant to this Section, the Company, at its
option, may substitute Preferred Shares (or Equivalent Preferred Shares) for
shares of Common Stock in effecting an exchange for Rights, at the initial rate
of one one-hundredth of a Preferred Share (or Equivalent Preferred Share) for
each share of Common Stock, appropriately adjusted to reflect any adjustments in
the voting rights of the Preferred Shares pursuant to the Certificate of
Designations attached hereto as EXHIBIT A, so that the fractional Preferred
Share delivered in lieu of each share of Common Stock shall have the same voting
rights as one share of Common Stock.
(d) In the event that there shall not be sufficient authorized
and unissued or treasury shares of Common Stock or Preferred Shares (or
Equivalent Preferred Shares) to permit the exchange of Rights directed by the
Board, the Company shall take all necessary action to authorize and reserve for
issuance such number of additional shares of Common Stock or Preferred Shares
(or Equivalent Preferred Shares) as may be required for issuance upon such
exchange and, if necessary, shall use its best efforts to obtain shareholder
approval thereof.
(e) The Company shall not be required to issue fractional shares
of Common Stock in exchange for Rights or to distribute stock certificates which
evidence fractional shares of Common Stock. If the Company shall determine not
to issue fractional shares of Common Stock, the Company shall pay to the
registered holders of the Rights with respect to which such fractional shares
would otherwise be issuable an amount in cash equal to the same fraction of the
Fair Market Value for the Trading Day immediately prior to the date of such
exchange) of one share of Common Stock.
3.3 FLIP-OVER.
(a) In the event that, on or after the occurrence of a Flip-In
Event, and an event described in (i), (ii) or (ii) below (where each such event
shall be referred to herein as a "Flip-Over Event," and where a Flip-In Event or
a Flip-Over Event shall sometimes be referred to
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<PAGE> 24
herein as a "Triggering Event"), proper provision shall be made so that the
registered holder of each Right, except as otherwise provided in Section 2.5(c),
shall thereafter have the right to receive, upon exercise thereof and payment of
an amount equal to the Product, in accordance with this Agreement, in lieu of
Preferred Shares, the number of freely tradable shares (which shall be duly
authorized, validly issued, fully paid and nonassessable) of Common Stock of the
Principal Party or, in the case of a merger described in clause (ii) of this
Section 3.3(a) in which the Common Stock of the Company shall remain
outstanding, unconverted and unchanged, of the Company, free and clear of all
rights of call or first refusal, liens, encumbrances or other adverse claims,
determined by dividing the Product by 50% of the Fair Market Value of the shares
of Common Stock of such Principal Party (or, if appropriate, the Company) on the
date of consummation of a Flip-Over Event. Such Flip-Over Events are as follows:
(i) The Company shall consolidate with, or merge with and
into, any Interested Shareholder or, if in such consolidation or
merger all holders of the Common Stock of the Company are not treated
the same, any other Person (other than a wholly-owned Subsidiary of
the Company in a transaction not prohibited by Section 3.3(i), so that
the Company shall not be the continuing or surviving corporation;
(ii) Any Interested Shareholder or, if in such merger all
holders of the Common Stock of the Company are not treated the same,
any other Person (other than a wholly-owned Subsidiary of the Company
in a transaction not prohibited by Section 3.3(i)) shall merge with
and into the Company, so that the Company shall be the continuing or
surviving corporation, and in connection with such merger either all
or part of the outstanding shares of Common Stock of the Company shall
be converted or changed into or exchanged for capital stock or other
securities of any other Person (or the Company), cash and/or other
property or such shares of Common Stock shall remain outstanding,
unconverted and unchanged; or
(iii) the Company shall sell or otherwise transfer (or one
or more of its Subsidiaries shall sell or otherwise transfer), in one
or a series of related transactions, assets or earning power
aggregating 50% or more of the assets or earning power of the Company
and its Subsidiaries (taken as a whole) to any Interested Shareholder
or, if in such transaction or transactions the holders of the Common
Stock of the Company are not treated the same, any other Person or
Persons (other than the Company or one or more of its wholly-owned
Subsidiaries in one or more transactions, each of which is not
prohibited by Section 3.3(i));
(b) Upon the consummation of a Flip-Over Event, such Principal
Party shall thereafter be liable for, and shall assume, by reason of the
consummation of such Flip-Over Event, all the obligations and duties of the
Company under this Agreement. The term "Company" shall thereafter be deemed to
refer to such Principal Party, it being specifically intended that the
applicable provisions of this Agreement shall apply to such Principal Party and
such Principal Party shall take such steps (including, but not limited to, the
reservation of a sufficient number of its shares of Common Stock to permit
exercise of all outstanding Rights in accordance with this subsection and the
distribution of cash, debt securities, shares and other property in accordance
with Section 3.1(d)) in connection with the consummation of a Flip-Over Event as
may be necessary to assure that the provisions hereof shall thereafter be
applicable, as
23
<PAGE> 25
nearly as reasonably possible, in relation to the shares of Common Stock
thereafter deliverable upon exercise of the Rights.
(c) After the Distribution Date, the Company shall not
consolidate or merge with any other Person (other than a wholly owned Subsidiary
of the Company in a transaction not prohibited by Section 3.3(i)), or sell or
otherwise transfer (or permit one or more of its Subsidiaries to sell or
otherwise transfer), in one or a series of related transactions, assets or
earning power aggregating 50% or more of the assets or earning power of the
Company and its Subsidiaries (taken as a whole) to any other Person or Persons
(other than the Company or one or more of its wholly-owned Subsidiaries in one
or more transactions, each of which is not prohibited by Section 3.3(i)), if (i)
at the time of or immediately after the consummation of such transaction there
are any options, warrants, rights, conversion or exchange privileges or
securities outstanding or any written or oral agreements, arrangements or
understandings (including provisions contained in the Company's Certificate of
Incorporation or Bylaws) in effect which, as a result of the consummation of
such transaction, would eliminate or substantially diminish the benefits
intended to be afforded by the Rights, or (ii) prior to, simultaneously with or
immediately after such transaction the shareholders of the Person who
constitutes, or would constitute, the Principal Party for the purpose of
subsection (a) of this Section shall have received a distribution of Rights
previously owned by such Person or any of its Affiliates or Associates.
(d) The Company shall not consummate any Flip-Over Event unless
prior thereto (i) the Principal Party shall have a sufficient number of
authorized shares of its Common Stock which have not been issued or reserved for
issuance to permit the exercise in full of the Rights in accordance with this
Section, and (ii) the Company, the Principal Party and each other Person who may
become the Principal Party as a result of the consummation of such Flip-Over
Event shall have executed and delivered to the Rights Agent a supplemental
agreement providing for the implementation of all the terms and conditions set
forth in this Section and that, as soon as practicable after the date of such
Flip-Over Event, the Principal Party, at its own expense, shall:
(i) Prepare and file a registration statement on an
appropriate form under the Securities Act with respect to the Rights and
the securities purchasable upon exercise thereof, and use its best efforts
to cause such registration statement to become effective as soon as
practicable after such filing and to remain effective (with a prospectus
which at all times meets the requirements of the Securities Act) until the
earliest of the date as of which the Rights are no longer exercisable for
such securities, the Redemption Date and the Final Expiration Date;
(ii) Use its best efforts to qualify or register the Rights
and the securities purchasable upon exercise thereof under the securities
or "blue sky" laws of such jurisdictions as may be necessary or appropriate
in connection with the exercisability of the Rights;
(iii) Use its best efforts to list (or continue the listing
of) the Rights and the securities purchasable upon exercise thereof on a
national securities exchange or to meet the eligibility requirements for
quotation on Nasdaq; and
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<PAGE> 26
(iv) Deliver to the registered holders of the Rights
historical financial statements for the Principal Party and each of
its Affiliates complying in all material respects with the
requirements for registration of securities on Form 10 under the
Exchange Act.
(e) Notwithstanding anything in this Agreement to the contrary,
this Section shall not apply if (i) such transaction is consummated with a
Person or Persons who acquired their shares of Common Stock of the Company
pursuant to a Permitted Offer, (ii) the price per share of Common Stock of the
Company provided in such transaction shall not be less than the price per share
of Common Stock paid to all holders whose shares were purchased pursuant to such
Permitted Offer, and (iii) the form of consideration being offered to the
remaining holders of the Common Stock of the Company pursuant to such
transaction is the same as the form of consideration paid pursuant to such
Permitted Offer. Upon consummation of any transaction authorized by this
subsection (e), all Rights shall expire.
(f) If, in the case of any transaction described in clause (iii)
of subsection (a) of this Section, the Person or Persons to whom assets or
earning power are sold or otherwise transferred are individuals, then, in lieu
of any other payment or distribution required by this Section, the Company shall
require as a condition to such transaction that, such Person or Persons shall
pay to each holder of a Rights Certificate, upon its surrender to the Rights
Agent and in exchange therefor (without requiring any payment by such holder),
cash in the amount determined by multiplying the then current Exercise Price by
the number of one one-hundredths of a Preferred Share for which a Right is then
exercisable.
(g) In no event shall the Rights Agent have any obligations or
duties in respect of any Flip-Over Event, except as expressly set forth in this
Agreement. The Rights Agent may rely, and shall be fully protected in relying
upon, a certificate of the Company stating that the provisions of this Section
have been fulfilled. The prior written consent of the Rights Agent shall be
required in connection with any supplemental agreement which alters or impairs
the rights, obligations, duties or immunities of the Rights Agent hereunder.
(h) The provisions of this Section shall similarly apply to
successive consolidations, mergers, sales or other transfers. In the event that
a Flip-Over Event shall occur at any time after the occurrence of a Flip-In
Event, the Rights which have not been theretofore exercised shall thereafter be
exercisable in the manner described in this Section.
(i) Except as permitted by Sections 5.1 and 5.9, the Company
covenants and agrees that, after the Distribution Date, it will not take, or
permit any of its Subsidiaries to take, any action if at the time such action
would be taken it is reasonably foreseeable that such action would eliminate or
substantially diminish the benefits intended to be afforded by the Rights.
3.4 CERTIFICATE OF ADJUSTED EXERCISE PRICE OR NUMBER OF SHARES.
Whenever any adjustment shall be required, the Company shall promptly (i)
prepare a certificate setting forth such adjustment and a brief statement of the
facts requiring such adjustment, (ii) file with the Rights Agent and with each
transfer agent (if different than the Rights Agent) for the Preferred Shares or
the Common Stock of the Company a copy of such certificate and (iii) mail a
brief summary thereof to each registered holder of the Rights in accordance with
Section 5.8. The
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Rights Agent shall be fully protected in relying on any such certificate and on
any adjustment described therein and shall not be deemed to have knowledge of
any such adjustment unless and until it shall have received such certificate.
ARTICLE IV
THE RIGHTS AGENT
4.1 APPOINTMENT OF RIGHTS AGENT. The Company hereby appoints the
Rights Agent to act as agent for the Company and the holders of the Rights in
accordance with the terms and conditions of this Agreement. The Rights Agent
hereby accepts such appointment. The Company may from time to time appoint such
Co-Rights Agents as it may deem necessary or desirable.
4.2 CONCERNING THE RIGHTS AGENT.
(a) The Company covenants and agrees to pay to the Rights Agent
reasonable compensation for all services rendered by it hereunder and, from time
to time on the written request of the Rights Agent, to reimburse it for all
reasonable expenses and counsel fees incurred in connection with the acceptance
and administration of this Agreement and the performance of its obligations and
duties hereunder. The Company also covenants and agrees to indemnify the Rights
Agent for, and to hold it harmless against, any loss, liability or expense,
incurred without negligence, bad faith or willful misconduct on its part, for
any action taken, suffered or omitted by it in connection with the acceptance
and administration of this Agreement and the performance of its obligations and
duties hereunder, including the costs and expenses of defending against any
claim of liability arising therefrom, directly or indirectly.
(b) The Rights Agent shall be protected and shall incur no
liability for, or in respect of, any action taken, suffered or omitted by it in
connection with its administration of this Agreement in reliance upon any Rights
Certificate, stock certificate for Preferred Shares, Common Stock or other
shares of capital stock of the Company, instrument of assignment or transfer,
power of attorney, endorsement, affidavit, notice, direction, consent,
certificate, statement or other paper or document believed by it to be genuine
and to be executed and, where necessary, verified or acknowledged by the proper
Person or Persons.
4.3 MERGER OR CONSOLIDATION OF THE RIGHTS AGENT.
(a) Any corporation into which the Rights Agent or any successor
Rights Agent may be merged or with which it may be consolidated, or any
corporation resulting from any merger or consolidation to which the Rights Agent
or any successor Rights Agent shall be a party, or any corporation succeeding to
the shareholder services or corporate trust business of the Rights Agent or any
successor Rights Agent, shall be the successor to the Rights Agent under this
Agreement without the execution or filing of any paper or any further act on the
part of any of the parties hereto, provided that such corporation would be
eligible for appointment as successor Rights Agent under Section 4.5. In case
at the time any successor Rights Agent shall succeed to the agency created by
this Agreement any of the Rights Certificates countersigned by its predecessor
Rights Agent shall not have been delivered, such successor Rights Agent may
adopt
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the countersignature of its predecessor Rights Agent and deliver the Rights
Certificates so countersigned; or in case at such time any of the Rights
Certificates shall not have been countersigned, such successor Rights Agent may
countersign such Rights Certificates either in the name of its predecessor
Rights Agent or in the name of such successor Rights Agent; and in all such
cases, such Rights Certificates shall have the full force and effect provided
therein and in this Agreement.
(b) In case at any time the name of the Rights Agent shall be
changed and at such time any of the Rights Certificates shall have been
countersigned but not delivered, the Rights Agent may adopt the countersignature
under its prior name and deliver the Rights Certificates so countersigned; or in
case at such time any of the Rights Certificates shall not have been
countersigned, the Rights Agent may countersign such Rights Certificates either
in its prior name or in its changed name; and in all such cases, such Rights
Certificates shall have the full force and effect provided therein and in this
Agreement.
4.4 DUTIES OF THE RIGHTS AGENT. The Rights Agent undertakes the
obligations and duties imposed by this Agreement upon the following terms and
conditions, by all of which the Company and the holders of the Rights
Certificates (or, prior to the Distribution Date, the stock certificates for the
Common Stock of the Company), by accepting the same, shall be bound, and no
implied obligations or duties shall be read into this Agreement against the
Rights Agent.
(a) The Rights Agent may consult with legal counsel (who may be
legal counsel for the Company), and the written opinion of such legal counsel
shall be authorization and protection to the Rights Agent as to any action
taken, suffered or omitted by it in good faith and in accordance with such
opinion.
(b) Whenever in the performance of its duties under this
Agreement the Rights Agent shall deem it necessary or desirable that any fact or
matter be proved or established by the Company prior to taking, suffering or
omitting any action hereunder, such fact or matter (unless other evidence in
respect thereof be herein specifically prescribed) may be deemed to be
conclusively proved and established by a certificate executed by any one of the
Chairman of the Board, the President, any Vice President, the Treasurer or the
Secretary of the Company and delivered to the Rights Agent; and such certificate
shall be authorization and protection to the Rights Agent as to any action
taken, suffered or omitted by it in good faith in reliance upon such
certificate.
(c) The Rights Agent shall be liable hereunder to the Company
and any other Person only for its own negligence, bad faith or willful
misconduct.
(d) The Rights Agent shall not be liable for or by reason of any
of the statements of fact or recitals contained in this Agreement or in the
Rights Certificates (except its countersignature thereon) or be required to
verify the same, but all such statements and recitals are and shall be deemed to
have been made by the Company only.
(e) The Rights Agent shall not be responsible for the validity
of this Agreement or the execution and delivery hereof (except for its due
execution hereof) or for the validity or execution of any Rights Certificate
(except for its countersignature thereon); nor shall the Rights
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Agent be responsible for any breach by the Company of any covenant or condition
contained in this Agreement or in any Rights Certificate; nor shall the Rights
Agent be responsible for any change in the exercisability of the Rights
(including Rights becoming void pursuant to Section 2.5(c)), for any adjustment
or change (or for the manner or method of determining same) in the terms of the
Rights (including any adjustment or change in the Exercise Price or in the
number or kind of shares, securities or other property issuable upon the
exercise thereof) required by this Agreement or for ascertaining the existence
of facts which would require any such change or adjustment (except with respect
to the exercise of Rights evidenced by Rights Certificates after actual notice,
in the manner provided in Section 3.3, that such change or adjustment is
required); nor shall the Rights Agent by any act hereunder be deemed to have
made any representation or warranty as to the authorization or reservation of
any Preferred Shares or shares of Common Stock to be issued pursuant to this
Agreement or any Rights Certificate or as to whether any Preferred Shares or
shares of Common Stock will, when issued, be validly authorized and issued and
fully paid and nonassessable.
(f) The Company agrees that it will perform, execute, acknowledge
and deliver or cause to be performed, executed, acknowledged and delivered all
such further acts, instruments and assurances as may reasonably be required by
the Rights Agent for the carrying out or performing by the Rights Agent of the
provisions of this Agreement.
(g) The Rights Agent is hereby authorized and directed to accept
instructions with respect to the performance of its obligations and duties
hereunder from any one of the Chairman of the Board, the President, any Vice
President, the Treasurer or the Secretary of the Company, and to apply to such
officers for advice or instructions in connection with its obligations and
duties; and the Rights Agent shall not be liable for any action taken, suffered
or omitted by it in good faith and in accordance with the written instructions
of any such officer or for any delay in acting while waiting for such
instructions.
(h) The Rights Agent and any shareholder, director, officer or
employee of the Rights Agent may buy, sell or deal in the Rights or in any other
securities of the Company (including the Preferred Shares and its Common Stock)
or become pecuniarily interested in any transaction in which the Company (or any
of its Subsidiaries) may be interested, or contract with or lend money to the
Company (or any of its Subsidiaries), and may otherwise act as fully and freely
as though it were not the Rights Agent under this Agreement; and nothing herein
shall preclude the Rights Agent from acting in any other capacity for the
Company, any of its Subsidiaries or any other entity.
(i) The Rights Agent may execute and exercise any of the rights
or powers hereby vested in it or perform any of its obligations or duties
hereunder either directly or by or through its attorneys or agents, and the
Rights Agent shall not be answerable or accountable for any act, default,
neglect or misconduct of any such attorney or agent or for any loss to the
Company resulting from any such act, default, neglect or misconduct, provided
the Rights Agent exercised reasonable care in the selection and continued
employment of such attorney or agent.
(j) If, with respect to any Rights Certificate surrendered to the
Rights Agent for exercise or transfer, the Form of Certification of Status
attached to the Form of Election to Purchase or the Form of Assignment, as the
case may be, has either not been completed or
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indicates an affirmative response to Question 1 and/or 2 thereof, the Rights
Agent shall not take any further action with respect to the requested exercise
or transfer without first consulting with the Company.
(k) No provision of this Agreement shall require the Rights Agent
to expend or risk its own funds or otherwise incur any financial liability in
the performance of any of its obligations or duties or in the exercise of its
rights or powers hereunder if there shall be reasonable grounds for believing
that repayment of such funds or adequate indemnification against such risk or
liability is not reasonably assured.
4.5 RESIGNATION OR REMOVAL OF THE RIGHTS AGENT. The Rights Agent or
any successor Rights Agent may resign and be discharged from its obligations and
duties under this Agreement upon 30 days' prior notice to the Company and to
each transfer agent for the Preferred Shares and for the Common Stock of the
Company, sent by registered or certified mail, postage prepaid, and to each
registered holder of the Rights Certificates, sent by first-class mail, postage
prepaid. The Company may remove the Rights Agent or any successor Rights Agent
upon 30 days' prior notice to the Rights Agent or successor Rights Agent, as the
case may be, and to each transfer agent for the Preferred Shares and for the
Common Stock of the Company, sent by registered or certified mail, postage
prepaid, and to each registered holder of the Rights Certificates, sent by first
class mail, postage prepaid. If the Rights Agent or any successor Rights Agent
shall resign or be removed or shall otherwise become incapable of acting, the
Company shall appoint a successor Rights Agent. If the Company shall fail to
make such appointment within 30 days after giving notice of such removal or
after receiving notice of such resignation or incapacity, either from the
resigning or incapacitated Rights Agent or from the registered holder of any
Rights Certificate (who shall, with such notice, submit its Rights Certificate
for inspection by the Company), then the incumbent Rights Agent or the
registered holder of any Rights Certificate may apply to any court of competent
jurisdiction for the appointment of a successor Rights Agent. Any successor
Rights Agent, whether appointed by the Company or by such a court, shall be a
corporation organized and doing business under the laws of the United States of
America or the State of Wisconsin (or of any other state so long as such
corporation is authorized to do business as a banking institution in the State
of Wisconsin), be in good standing under the laws of the jurisdiction of its
incorporation, have an office in the State of Wisconsin, be authorized under
such laws to exercise corporate trust or stock transfer powers, be subject to
supervision or examination by federal or state authority and have at the time of
its appointment as Rights Agent a combined capital and surplus of at least
$50,000,000. After its appointment, the successor Rights Agent shall be vested
with the same rights, powers, obligations, duties and immunities as if it had
been originally named as Rights Agent without further act or deed; but the
predecessor Rights Agent shall deliver and transfer to the successor Rights
Agent any property at the time held by it hereunder, and execute and deliver any
further assurance, conveyance, act or deed necessary for the purpose. Not later
than the effective date of any such appointment, the Company shall file notice
thereof in writing with the predecessor Rights Agent and each transfer agent for
the Preferred Shares and for the Common Stock of the Company, and mail notice
thereof to the registered holders of the Rights Certificates. Failure to give
any notice provided for in this Section, however, or any defect therein, shall
not affect the legality or validity of the resignation or removal of the Rights
Agent or any successor Rights Agent or the appointment of any successor thereto.
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ARTICLE V
MISCELLANEOUS
5.1 REDEMPTION.
(a) The Board may, at its option, at any time prior to the
earliest of the (i) Distribution Date, and (ii) the Final Expiration Date (where
such date at which Rights are redeemed pursuant to this Section shall be
referred to herein as the "Redemption Date"), redeem all, but not less than all,
of the then outstanding Rights at a redemption price of $.01 per Right, as may
be adjusted as provided in Section 5.1(f) (the "Redemption Price"), provided
that, if the Board shall authorize the redemption of the Rights in the
circumstances set forth in either of clauses (A) or (B) below, there must be
more than one Disinterested Director then in office and such authorization shall
require the concurrence of at least a majority of such Disinterested Directors:
(A) such authorization shall occur on or after the date a Person becomes an
Acquiring Person or an Adverse Person, or (B) such authorization shall occur on
or after the date of a change (resulting from a solicitation of either proxies
or one or more written shareholder consents) in a majority of the directors in
office at the commencement of such solicitation if any Person who shall be a
participant in such solicitation has stated (or, if upon the commencement of
such solicitation, at least a majority of the Disinterested Directors shall have
determined in good faith) that such Person (or any of its Affiliates or
Associates) intends to take, or may consider taking, any action which would
result in such Person becoming an Acquiring Person or an Adverse Person.
(b) Notwithstanding any other provision of this Agreement, the
Rights shall not be exercisable after the first occurrence of a Flip-Over Event
until such time as the Company's right of redemption under this Section shall
have expired.
(c) In considering whether to redeem the Rights, the Board and
the Disinterested Directors may consider the best long and short term interests
of the Company and its shareholders, including, without limitation, the effects
of the redemption of the Rights upon employees, creditors, suppliers and
customers of the Company or of its Subsidiaries and upon the communities in
which offices or other establishments of the Company and such Subsidiaries are
located and all other pertinent factors. The redemption of the Rights by the
Board may be made effective at such time, on such basis and with such conditions
as the Board, in its sole discretion, may establish.
(d) Immediately after action by the Board directing the
redemption of the Rights and without any further action and without any notice,
the right to exercise the Rights shall terminate, and thereafter each registered
holder of the Rights shall only be entitled to receive the Redemption Price
therefor. The Company shall give prompt written notice to the Rights Agent and
prompt public notice to the holders of the Rights of any such redemption;
provided, however, that the failure to give, or any defect in, any such notice
shall not affect the validity of such redemption. Within ten days after action
by the Board directing the redemption of the Rights, the Company shall mail (or
cause the Rights Agent to mail) a notice of redemption to each registered holder
of the then outstanding Rights, at its last address appearing on the registry
books of the Rights Agent or, prior to the Distribution Date, on the registry
books of the transfer agent for the Common Stock of the Company. Any notice
which is mailed in the manner
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provided in this subsection shall be deemed given, whether or not received by
the registered holder to whom sent. Each notice of redemption shall state the
method by which payment of the Redemption Price is to be made. Neither the
Company nor any of its Affiliates or Associates may at any time redeem, acquire
or purchase for value any Rights other than in the manner set forth in this
Section and Section 3.2 or in connection with any purchase of outstanding shares
of its Common Stock prior to the Distribution Date.
(e) The Company may, at its option, pay the Redemption Price in
cash, shares of Common Stock (based on its Fair Market Value) as of the date of
redemption) or any other form of consideration deemed appropriate by the Board.
(f) In the event that the Company shall at any time after the
date of this Agreement (i) declare a dividend on its outstanding shares of
Common Stock payable in shares of Common Stock, or (ii) effect a subdivision,
combination or consolidation of its outstanding shares of Common Stock (by
reclassification or otherwise than by payment of dividends in shares of Common
Stock) into a greater or lesser number of shares of Common Stock, then, in each
such case, the Redemption Price after such event shall equal the Redemption
Price in effect immediately prior to such event multiplied by a fraction, the
numerator of which shall be the number of shares of Common Stock outstanding
immediately prior to such event and the denominator of which shall be the number
of shares of Common Stock outstanding immediately after such event; provided,
however, that such adjustment shall be made only if the amount of the Redemption
Price would be reduced or increased by at least $0.001 per Right.
5.2 RIGHTS OF ACTION. All rights of action in respect of this
Agreement, other than rights of action which the Rights Agent may have under
Sections 4.2 and 4.4, are vested in the registered holders of the Rights
Certificates (or, prior to the Distribution Date, the registered holders of the
Common Stock of the Company); and the registered holder of any Rights
Certificate (or, prior to the Distribution Date, of any stock certificate for
shares of such Common Stock), without the consent of the Rights Agent or of the
holder of any other Rights Certificate (or, prior to the Distribution Date, of
any other stock certificate for shares of Common Stock), may, on such registered
holder's own behalf and for such registered holder's own benefit, enforce, and
may institute and maintain any suit, action or proceeding against the Company to
enforce, or otherwise act in respect of, such registered holder's right to
exercise the Rights evidenced by such Rights Certificate (or, prior to the
Distribution Date, such stock certificate) in the manner provided in such Rights
Certificate and in this Agreement. Without limiting the generality of the
foregoing or any remedies available to the holders of the Rights, it is
specifically acknowledged that the registered holders of the Rights would not
have an adequate remedy at law for any breach of this Agreement and will be
entitled to specific performance of the obligations and duties under, and
injunctive relief against any actual or threatened violations of the obligations
and duties of any Person subject to, this Agreement.
5.3 AGREEMENTS OF HOLDERS OF THE RIGHTS. Each holder of a Right, by
accepting the same, consents and agrees with the Company and the Rights Agent
and with every other holder of a Right that:
(a) Prior to the Distribution Date, the Rights shall be
transferable only simultaneously and together with the transfer of shares of
Common Stock of the Company;
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<PAGE> 33
(b) After the Distribution Date, the Rights Certificates shall
be transferable on the registry books of the Rights Agent only if surrendered at
the principal office of the Rights Agent, with the Form of Assignment and
Certification of Status on the reverse side thereof duly executed, together with
such signature guarantees and other documentation as the Rights Agent may
reasonably request;
(c) Subject to Sections 2.4 and 2.5(c), the Company and the
Rights Agent may deem and treat the Person in whose name any Rights Certificate
(or, prior to the Distribution Date, any stock certificate for the Common Stock
of the Company) is registered as the absolute owner thereof and of the Rights
represented thereby (notwithstanding any notations of ownership or other writing
on such Rights Certificate or stock certificate made by anyone other than the
Company or the Rights Agent) for all purposes whatsoever, and neither the
Company nor the Rights Agent shall be affected by any notice to the contrary;
and
(d) Neither the Company nor the Rights Agent shall have any
liability to any holder of a Right or to any other Person because of its
inability to perform any of its obligations or duties under this Agreement by
reason of any applicable law, any preliminary or permanent injunction or other
order, decree or ruling issued by a court of competent jurisdiction or by a
governmental, regulatory or administrative agency or commission or any rule,
regulation or executive order promulgated or enacted by any such governmental
authority prohibiting or otherwise restraining performance of any such
obligation or duty; provided, however, that the Company shall use its best
efforts to have any such injunction, order, decree or ruling lifted or otherwise
overturned as soon as reasonably possible.
5.4 RIGHTS CERTIFICATE HOLDER NOT DEEMED A SHAREHOLDER. No holder, as
such, of any Rights Certificate shall be entitled to vote, to receive dividends
or other distributions on or to exercise any preemptive rights with respect to,
or shall be deemed for any other purpose to be the holder of, the Preferred
Shares or other shares of capital stock of any class of the Company which may at
the time be issuable upon exercise of the Rights represented thereby; nor shall
anything contained herein or in any Rights Certificate be construed to confer
upon the holder of any Rights Certificate, as such, any of the rights of a
shareholder of the Company, or any right to vote for the election of directors
or upon any other matter submitted to shareholders at any meeting thereof, to
give or withhold consent to any corporate action, to receive notice of meetings
or other actions affecting shareholders (except as provided in Section 5.7) or
to receive dividends, subscription rights or other distributions, until the
Rights represented by such Rights Certificate shall have been exercised, in
whole or in part, in accordance with the provisions hereof.
5.5 ISSUANCE OF NEW RIGHTS CERTIFICATES. Notwithstanding any
provision of this Agreement or of the Rights Certificates to the contrary, the
Company may, at its option, issue new Rights Certificates evidencing the Rights
in such form as may be approved by the Board to reflect any adjustment or change
in the Exercise Price or in the number or kind of shares, securities or other
property issuable upon exercise of the Rights in accordance with the provisions
of this Agreement; provided, however, that (i) no such Rights Certificates shall
be issued if, and to the extent that, the Company shall be advised by counsel
that such issuance could create a significant risk of material adverse tax
consequences to the Company or to the Persons to whom such Rights Certificates
would be issued and (ii) no such Rights Certificates shall be issued if,
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<PAGE> 34
and to the extent that, appropriate adjustment shall otherwise have been made in
lieu of the issuance thereof.
5.6 FRACTIONAL RIGHTS AND FRACTIONAL SHARES.
(a) The Company shall not be required to issue fractional Rights
or to distribute Rights Certificates which evidence fractional Rights. If the
Company shall determine not to issue fractional Rights, the Company shall pay,
to the registered holders of the Rights with respect to which fractional Rights
would otherwise be issuable an amount in cash equal to the same fraction of the
Fair Market Value for the Trading Day immediately prior to the date on which
such fractional Rights would otherwise have been issued) of one Right in lieu of
issuing fractional Rights.
(b) The Company shall not be required to issue fractional
Preferred Shares (other than fractions which are multiples of one one-hundredth
of a Preferred Share) upon exercise of the Rights or to distribute stock
certificates which evidence fractional Preferred Shares (other than fractions
which are multiples of one one-hundredth of a Preferred Share). If the Company
shall determine not to issue fractional Preferred Shares that are not multiples
of one one-hundredth of a Preferred Share, the Company shall pay to the
registered holders of the Rights Certificates at the time Rights represented
thereby are exercised, in lieu of such fractional Preferred Shares, an amount in
cash equal to the same fraction of the Fair Market Value for the Trading Day
immediately prior to the date of such exercise of one one-hundredth of a
Preferred Share.
(c) Each holder of a Right, by accepting the same, expressly
waives such holder's right to receive or exercise any fractional Right or to
receive any fractional Preferred Share upon the exercise of such Right (except
as provided in this Section).
5.7 NOTICE TO HOLDERS OF RIGHTS CERTIFICATES OF CERTAIN EVENTS.
(a) In the event that any time after the Distribution Date, the
Company shall propose: (i) to pay any dividend payable in shares of capital
stock of any class of the Company to the holders of Preferred Shares (other than
a regular quarterly cash dividend); (ii) to effect any reclassification of the
Preferred Shares (other than a reclassification involving only the subdivision
of the outstanding Preferred Shares); (iii) to make any distribution to the
holders of Preferred Shares described in Section 2.7(b) or 2.7(c); (iv) to
effect any Flip-Over Event; (v) to pay any dividend on its shares of Common
Stock payable in shares of Common Stock or to effect a subdivision, combination
or consolidation of its outstanding shares of Common Stock (by reclassification
or otherwise than by payment of dividends in shares of Common Stock); or (vi) to
effect the liquidation, dissolution or winding up of the Company; then, in each
such case, the Company shall give to the Rights Agent and each registered holder
of the Rights, in the manner provided in Section 5.8, written notice of such
proposed action, which shall specify the record date for such stock dividend or
distribution or the date on which such reclassification, Flip-Over Event,
liquidation, dissolution or winding up is expected to occur (and the date for
participation therein by the holders of the Common Stock and/or Preferred Shares
if any such date is to be fixed). Such notice shall be given, in the case of
any action described in clause (i) or (iii) of the preceding sentence, at least
ten days prior to the record date and, in the case of any other such
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<PAGE> 35
action, at least 20 days prior to the date of taking of such proposed action or
the date for participation therein by the holders of Preferred Shares, whichever
shall be the earlier.
(b) In case any Section Flip-In Event shall occur, the Company
shall, as soon as practicable thereafter, give to the Rights Agent and each
registered holder of the Rights, in the manner provided in Section 5.8, written
notice of the occurrence thereof, which notice shall describe such occurrence
and its consequences in reasonable detail.
5.8 NOTICES. Except as otherwise provided herein, notices or demands
authorized by this Agreement to be given or made by the Rights Agent or by the
registered holder of any Rights, Rights Certificate or stock certificate for
shares of Common Stock of the Company to or on the Company shall be sufficiently
given or made if sent by first-class mail, postage prepaid, addressed (until
another address shall be filed in writing with the Rights Agent) as follows:
St. Francis Capital Corporation
13400 Bishops Lane, Suite 350
Brookfield, Wisconsin 53005-6203
Attention: Thomas R. Perz, President/CEO
Except as otherwise provided herein, notices or demands authorized by this
Agreement to be given or made by the Company or by the registered holder of any
Rights, Rights Certificate or stock certificate for shares of Common Stock of
the Company to or on the Rights Agent shall be sufficiently given or made if
sent by first-class mail, postage prepaid, addressed (until another address
shall be filed in writing with the Company) as follows:
Firstar Trust Co.
1555 North RiverCenter Drive
Suite 301
Milwaukee, Wisconsin 53212
Attention: Eugene R. Lee, Vice President
Except as otherwise provided herein, notices or demands authorized by this
Agreement to be given or made by the Company or the Rights Agent to the
registered holder of any Rights, Rights Certificate or stock certificate for
shares of Common Stock of the Company shall be sufficiently given or made if
sent by first-class mail, postage prepaid, addressed to such holder at its last
address appearing on the registry books of the Rights Agent or, prior to the
Distribution Date, on the registry books of the transfer agent for the Common
Stock of the Company.
5.9 SUPPLEMENTS AND AMENDMENTS. Prior to the Distribution Date, but
subject to the last sentence of this Section, the Company and the Rights Agent,
if so directed in writing by the Company may supplement or amend any term,
provision or condition of this Agreement, without the approval of the registered
holders of the stock certificates representing the Common Stock and the Rights.
From and after the Distribution Date, but subject to the last sentence of this
Section, the Company and the Rights Agent, if so directed in writing by the
Company may supplement or amend this Agreement, without the approval of the
registered holders of the Rights (however represented), in order to: (i) cure
any ambiguity; (ii) correct or supplement any term, provision or condition of
this Agreement which may be defective or inconsistent with any other
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<PAGE> 36
term, provision or condition hereof; (iii) shorten or lengthen any time period
specified herein (except that after the first occurrence of an event described
in either clause (A) or (B) in the first sentence of Section 5.1(a), there must
be Disinterested Directors then in office and any such shortening or lengthening
shall require the concurrence of at least a majority of such Disinterested
Directors); or (iv) change or supplement one or more of the terms, provisions or
conditions hereof, other than as described in (iii) above, in any manner which
the Company may deem necessary or desirable and which shall not materially
adversely affect, as determined by the Board (with the concurrence of at least a
majority of the Disinterested Directors), the interests of the holders (other
than a Restricted Person or the transferees thereof specified in Section 2.5(c))
of the Rights (however represented); provided, however, that this Agreement may
not be supplemented or amended pursuant to clause (iii) of this sentence (A) to
lengthen any time period unless (I) approved by at least a majority of the
Disinterested Directors, and (II) such lengthening is for the purpose of
protecting, enhancing or clarifying the rights of, and/or the benefits to, the
holders (other than a Restricted Person or the transferees thereof specified in
Section 2.5(c)) of the Rights, or (B) to lengthen any time period relating to
when the Rights may be redeemed if at such time the Rights are not then
redeemable. Upon the delivery of a certificate from an appropriate officer of
the Company stating that the proposed supplement or amendment is in compliance
with the terms of this Section, the Rights Agent shall execute such supplement
or amendment; provided, however, that the Rights Agent shall not be required to
execute any supplement or amendment which affects any of the Rights Agent's
rights, powers, obligations, duties or immunities under this Agreement without
its consent. On and after the Distribution Date, no supplement or amendment
shall be made which changes the Exercise Price, the number of one one-hundredths
of a Preferred Share for which a Right is exercisable, the Redemption Price or
the Final Expiration Date. Prior to the Distribution Date, the interests of the
holders of the Rights shall be deemed coincident with the interests of the
holders of the Common Stock of the Company.
5.10 SUCCESSORS. All of the terms, provisions and conditions of this
Agreement by or for the benefit of the Company or the Rights Agent shall bind
and inure to the benefit of their respective successors and assigns.
5.11 CERTAIN DETERMINATIONS AND ACTIONS BY THE BOARD. For all
purposes of this Agreement, any calculation of the number of shares of Common
Stock outstanding at any particular time, including the determination of the
percentage of such outstanding shares of which any Person is the Beneficial
Owner, shall be made in accordance with the last sentence of Rule
13d-3(d)(1)(i), as in effect on the date hereof, under the Exchange Act. The
Board (or, as and when set forth herein, the Disinterested Directors) shall have
the exclusive power and authority to interpret this Agreement and to exercise
all rights and powers specifically granted to the Board or to the Company, or as
may be necessary or advisable in the administration of this Agreement,
including, without limitation, the right and power to make all determinations
deemed necessary or advisable for such administration, including, without
limitation, a determination to redeem or not to redeem the Rights, to exchange
or not to exchange the Rights, to declare a Person to be an Adverse Person or to
supplement or amend this Agreement. All such calculations, determinations,
interpretations and exercises (including, for purposes of clause (ii) below, all
omissions with respect to the foregoing) which are done or made by the Board (or
the Disinterested Directors) in good faith shall (i) be final, conclusive and
binding on the Company, the Rights Agent, the holders of the Rights and all
other Persons and (ii) not subject any director
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<PAGE> 37
(including any Disinterested Director) to any liability to the holders of the
Rights or to any other Person.
5.12 BENEFITS OF THIS AGREEMENT. Nothing in this Agreement shall be
construed to give to any Person other than the Company, the Rights Agent and
the registered holders of the Rights Certificates (and, prior to the
Distribution Date, the registered holders of the stock certificates for the
Common Stock of the Company) any legal or equitable right, remedy or claim
under this Agreement; but this Agreement shall be for the sole and exclusive
benefit of the Company, the Rights Agent and the registered holders of the
Rights Certificates (and, prior to the Distribution Date, the registered
holders of the stock certificates for the Common Stock of the Company).
5.13 SEVERABILITY. If any term, provision or condition of this Agreement
shall be held by a court of competent jurisdiction or other lawful authority to
be invalid, void or unenforceable, the remaining terms, provisions, and
conditions of this Agreement shall remain in full force and effect and shall in
no way affected, impaired or invalidated; provided, however, that if any such
term, provision or condition is held by such court or authority to be invalid,
void or unenforceable and the Board (with the concurrence of at least a
majority of the Disinterested Directors then in office) shall determine in good
faith that severing the same from this Agreement would adversely affect the
purposes or effect of this Agreement, the right of redemption set forth in
Section 5.6 shall be reinstated and shall not expire until the Close of
Business on the tenth day following the date of such determination by the
Board.
5.14 GOVERNING LAW. This Agreement and each Rights Certificate issued
hereunder shall be deemed to be a contract made under the laws of the State of
Wisconsin and for all purposes shall be governed by and construed in accordance
with the laws of such State applicable to contracts made and to be performed
entirely within such State.
5.15 COUNTERPARTS. This Agreement may be executed in any number of
counterparts, each of which shall for all purposes be deemed to be an original,
but all such counterparts shall together constitute one and the same
instrument.
5.16 DESCRIPTIVE READINGS. Descriptive headings of the several Sections
of this Agreement are inserted for convenience only and shall not control or
affect the meaning or construction of any of the provisions hereof.
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IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
duly executed and their respective corporate seals to be hereunto affixed and
attested, all as of the day and year first above written.
ST. FRANCIS CAPITAL CORPORATION
By: /s/ Thomas R. Perz
-----------------------------------
Thomas R. Perz, President/CEO
FIRSTAR TRUST CO.
By: /s/ Eugene R. Lee
-----------------------------------
Eugene R. Lee, Vice President
ATTEST
By: /s/ William Caruso
-----------------------------------
William Caruso, Assistant Secretary
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EXHIBIT A
FORM
OF
CERTIFICATE OF DESIGNATION, PREFERENCES, RIGHTS AND LIMITATIONS
OF
SERIES A JUNIOR PARTICIPATING PREFERRED STOCK
OF
ST. FRANCIS CAPITAL CORPORATION
(Pursuant to Section 180.0602 of the Wisconsin Business Corporation Law)
St. Francis Capital Corporation, a corporation organized and existing
under the Wisconsin Business Corporation Law (the "Corporation"), does hereby
certify that, pursuant to authority conferred upon its Board of Directors by
its Articles of Incorporation and by the provisions of 180.0602 of the
Wisconsin Business Corporation Law, the following resolution was adopted by its
Board of Directors at a meeting duly called and held on September 25, 1997:
RESOLVED, that pursuant to the authority conferred upon the
Board of Directors of the Corporation (the "Board") by the
provisions of the Articles of Incorporation of the Corporation and
the provisions of Section 180.0602 of the Wisconsin Business
Corporation Law, there is hereby created a series of Preferred
Stock of the Corporation, which series shall have the following
powers, designations, preferences and relative, participating,
optional and other special rights, and the qualifications,
limitations or restrictions thereof, in addition to those set
forth in the Articles of Incorporation of the Corporation:
SECTION 1. DESIGNATION OF SERIES: NUMBER OF SHARES. There is designated a
series of Preferred Stock titled as "Series A Junior Participating Preferred
Stock," par value $.01 per share (the "Series A Preferred Stock"), and the
authorized number of shares constituting the Series A Preferred Stock shall be
120,000. Such number of authorized shares may be increased or decreased, from
time to time, by resolution of the Board; provided, however, that no such
decrease shall reduce the number of authorized shares of the Series A Preferred
Stock to a number less than the number of shares of the Series A Preferred
Stock then outstanding, plus the number of such shares then reserved for
issuance upon the exercise of any outstanding options, warrants or rights or
the exercise of any conversion or exchange privilege contained in any
outstanding security issued by the Corporation.
SECTION 2. DIVIDENDS AND DISTRIBUTIONS.
(A) Subject to the rights of the holders of shares of any other
series of Preferred Stock (or shares of any other class of capital stock of the
Corporation) ranking senior to the Series A Preferred Stock with respect to
dividends, the holders of shares of the Series A Preferred
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<PAGE> 40
Stock, in preference to the holders of shares of Common Stock and of any other
class of capital stock of the Corporation ranking junior to the Series A
Preferred Stock with respect to dividends, shall be entitled to receive, when,
as and if declared by the Board out of funds legally available therefor, such
dividends, subject to the provision for adjustment hereinafter set forth, equal
to 100 times the aggregate per share amount of all cash dividends, and 100
times the aggregate per share amount (payable in kind) of all non-cash
dividends or other distributions other than a dividend payable in shares of
Common Stock or subdivision of the outstanding shares of Common Stock (by
reclassification or otherwise), declared on the Common Stock. In the event the
Company shall at any time after September 25, 1997 (i) declare any dividend on
Common Stock payable in shares of Common Stock, (ii) subdivide the outstanding
Common Stock, or (iii) combine the outstanding Common Stock into a smaller
number of shares, then in each such case the amount to which holders of shares
of Series A Preferred Stock were entitled immediately prior to such event shall
be adjusted by multiplying such amount by a fraction the numerator of which is
the number of shares of Common Stock outstanding immediately after such event
and the denominator of which is the number of shares of Common Stock that were
outstanding immediately prior to such event.
(B) The Board shall declare, out of funds legally available therefor,
a dividend or distribution on the Series A Preferred Stock, as provided in
paragraph (A) of this Section 2, immediately after it has declared a dividend or
distribution on the Common Stock (other than a dividend payable in shares of
Common Stock).
SECTION 3. VOTING RIGHTS. In addition to any other voting rights required
by applicable law, the holders of shares of the Series A Preferred Stock shall
have the following voting rights:
(A) Each share of the Series A Preferred Stock shall entitle the
holder thereof to 100 votes on all matters submitted to a vote of the
shareholders of the Corporation. The multiple of 100 (the "Voting Multiple")
set forth in the preceding sentence shall be adjusted from time to time as
hereinafter provided in this paragraph (A). In the event that the Corporation
shall at any time after the effective date of this Resolution of the Board
("Resolution") (i) declare or pay any dividend on Common Stock payable in shares
of Common Stock, or (ii) effect a subdivision, combination or consolidation of
the outstanding shares of Common Stock (by reclassification or otherwise than by
payment of a dividend in shares of Common Stock) into a greater or lesser number
of shares of Common Stock, then, in each such case, the Voting Multiple
thereafter applicable to the determination of the number of votes per share to
which the holders of shares of the Series A Preferred Stock shall be entitled
shall be the Voting Multiple in effect immediately prior to such event
multiplied by a fraction, the numerator of which shall be the number of shares
of Common Stock outstanding immediately after such event and the denominator of
which shall be the number of shares of Common Stock that were outstanding
immediately prior to such event.
(B) Except as otherwise provided in this Resolution, in any other
resolution establishing another series of Preferred Stock (or any series of any
other class of capital stock of the Corporation) or by applicable law, the
holders of the Series A Preferred Stock, the holders of Common Stock and the
holders of any other class of capital stock of the Corporation having
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<PAGE> 41
general voting rights shall vote together as a single class on all matters
submitted to a vote of the shareholders of the Corporation.
(C) Except as otherwise provided in this Resolution or by applicable
law, the holders of the Series A Preferred Stock shall have no special voting
rights and their consent shall not be required (except to the extent provided in
paragraph (B) of this Section 3) for the taking of any corporate action.
SECTION 4. CERTAIN RESTRICTIONS.
(A) Whenever dividends or other distributions payable on the Series
A Preferred Stock as provided in Section 2 are in arrears, thereafter and until
all accrued and unpaid dividends and distributions, whether or not declared, on
outstanding shares of the Series A Preferred Stock shall have been paid in full,
the Corporation shall not:
(i) Declare or pay dividends or make any other distributions
on any shares of any class of capital stock of the Corporation
ranking junior (either as to dividends or upon liquidation,
dissolution or winding up of the Corporation) to the Series A
Preferred Stock;
(ii) Declare or pay dividends, or make any other
distributions, on any shares of any class of capital stock of the
Corporation ranking on a parity (either as to dividends or upon
liquidation, dissolution or winding up of the Corporation) with the
Series A Preferred Stock, except dividends paid ratably on the
Series A Preferred Stock and all such parity stock on which
dividends are accrued and unpaid in proportion to the total amounts
to which the holders of all such shares are then entitled;
(iii) Redeem, purchase or otherwise acquire for consideration
any shares of any class of capital stock of the Corporation ranking
junior (either as to dividends or upon liquidation, dissolution or
winding up of the Corporation) to the Series A Preferred Stock,
except that the Corporation may at any time redeem, purchase or
otherwise acquire any shares of such junior stock in exchange for
other shares of any class of capital stock of the Corporation
ranking junior (both as to dividends and upon dissolution,
liquidation or winding up of the Corporation) to the Series A
Preferred Stock; or
(iv) Purchase or otherwise acquire for consideration any
shares of the Series A Preferred Stock or any shares of any class
of capital stock of the Corporation ranking on a parity (either as
to dividends or upon liquidation, dissolution or winding up of the
Corporation) with the Series A Preferred Stock, or redeem any
shares of such parity stock, except in accordance with a purchase
offer made in writing or by publication to the holders of all such
shares upon such terms and conditions as the Board, after taking
into consideration the respective annual dividend rates and the
other relative powers, preferences and rights of the respective
series and classes of such shares, shall determine in good faith
will
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result in fair and equitable treatment among the respective holders of
shares of all such series and classes.
(B) The Corporation shall not permit any subsidiary of the Corporation
to purchase or otherwise acquire for consideration any shares of any class of
capital stock of the Corporation unless the Corporation could, under paragraph
(A) of this Section 4, purchase or otherwise acquire such shares at such time
and in such manner.
SECTION 5. REACQUIRED SHARES. Any shares of the Series A Preferred Stock
purchased or otherwise acquired by the Corporation in any manner whatsoever
shall be retired and cancelled promptly after such purchase or acquisition.
All such cancelled shares shall thereupon become authorized and unissued shares
of Preferred Stock and may be reissued as part of any new series of Preferred
Stock, subject to the conditions and restrictions on issuance set forth in the
Articles of Incorporation of the Corporation, from time to time, in any other
resolution establishing another series of Preferred Stock (or any series of any
other class of capital stock of the Corporation) or in any applicable law.
SECTION 6. LIQUIDATION, DISSOLUTION OR WINDING UP. Upon any liquidation
(whether voluntary or otherwise), dissolution or winding up of the Corporation,
no distribution shall be made (a) to the holders of shares of any class of
capital stock of the Corporation ranking junior (either as to dividends or upon
liquidation, dissolution or winding up of the Corporation) to the Series A
Preferred Stock unless, prior thereto, the holder of each outstanding share of
the Series A Preferred Stock shall have received an amount equal to the accrued
and unpaid dividends and distributions thereon, whether or not declared, to the
date of such payment, plus an amount equal to the greater of (i) $1.00, and
(ii) an aggregate amount, subject to adjustment as hereinafter provided in this
Section 6, equal to 100 times the aggregate per share amount to be distributed
to the holders of Common Stock, or (b) to the holders of shares of any class of
capital stock of the Corporation ranking on a parity (either as to dividends or
upon liquidation, dissolution or winding up of the Corporation) with the Series
A Preferred Stock, except distributions made ratably on the Series A Preferred
Stock and all such parity stock in proportion to the total amounts to which the
holders of all such shares are entitled upon such liquidation, dissolution or
winding up. In the event that the Corporation shall at any time after the
effective date of this Resolution (a) declare or pay any dividend on Common
Stock payable in shares of Common Stock, or (b) effect a subdivision,
combination or consolidation of the outstanding shares of Common Stock (by
reclassification or otherwise than by payment of a dividend in shares of Common
Stock) into a greater or lesser number of shares of Common Stock, then, in each
such case, the aggregate amount per share to which the holders of shares of the
Series A Preferred Stock would have been entitled to receive immediately prior
to such event pursuant to clause (a)(ii) of the preceding sentence shall be
adjusted by multiplying such aggregate per share amount by a fraction, the
numerator of which shall be the number of shares of Common Stock outstanding
immediately after such event and the denominator of which shall be the number
of shares of Common Stock that were outstanding immediately prior to such
event.
SECTION 7. CONSOLIDATION, MERGER, ETC. In the event that the Corporation
shall be a party to any consolidation, merger, combination or other transaction
in which the outstanding shares of Common Stock are converted or changed into
or exchanged for other capital stock, securities, cash or other property, or
any combination thereof, then, in each such case, each share
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<PAGE> 43
of the Series A Preferred Stock shall at the same time be similarly converted
or changed into or exchanged for an aggregate amount, subject to adjustment as
hereinafter provided in this Section 7, equal to 100 times the aggregate amount
of capital stock, securities, cash and/or other property (payable in kind), as
the case may be, into which or for which each share of Common Stock is being
converted or changed or exchanged. In the event that the Corporation shall at
any time after the effective date of this Resolution declare or pay any
dividend on Common Stock payable in shares of Common Stock or effect a
subdivision, combination or consolidation of the outstanding shares of Common
Stock (by reclassification or otherwise than by payment of a dividend in shares
of Common Stock) into a greater or lesser number of shares of Common Stock,
then, in each such case, the aggregate amount per share to which the holders of
shares of the Series A Preferred Stock would have been entitled to receive
immediately prior to such event pursuant to the preceding sentence shall be
adjusted by multiplying such aggregate per share amount by a fraction, the
numerator of which shall be the number of shares of Common Stock outstanding
immediately after such event and the denominator of which shall be the number
of shares of Common Stock that were outstanding immediately prior to such
event.
SECTION 8. NO REDEMPTION. The shares of the Series A Preferred Stock
shall not be redeemable at any time.
SECTION 9. RANK. Unless otherwise provided in the resolution establishing
another series of Preferred Stock after the effective date of this Resolution,
the Series A Preferred Stock shall rank, as to the payment of dividends and the
making of any other distribution of assets of the Corporation, senior to the
Common Stock, but junior to all other series of the Preferred Stock.
SECTION 10. AMENDMENTS. The Articles of Incorporation of the Corporation
shall not be amended in any manner which would materially alter or change the
powers, preferences and rights of the Series A Preferred Stock so as to
adversely affect any thereof without the affirmative vote of the holders of at
least two-thirds of the outstanding shares of the Series A Preferred Stock,
voting separately as a single class.
SECTION 11. FRACTIONAL SHARES. Fractional shares of the Series A
Preferred Stock may be issued, but, unless the Board shall otherwise determine,
only in multiples of one one-hundredth of a share. The holder of any
fractional share of the Series A Preferred Stock shall be entitled to receive
dividends, participate in distributions, exercise voting rights and have the
benefit of all other powers, preferences and rights relating to the Series A
Preferred Stock in the same proportion as such fractional share bears to a
whole share.
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<PAGE> 44
IN WITNESS WHEREOF, St. Francis Capital Corporation has caused this
Certificate to be executed and attested by its duly authorized officers this
25th day of September, 1997.
ST. FRANCIS CAPITAL CORPORATION
By /s/ Thomas R. Perz
-------------------------
Name: Thomas R. Perz
Title: President/CEO
Attest: /s/ William R. Hotz
-------------------------
Name: William R. Hotz
-------------------------
Title: Executive Vice President/Secretary
-------------------------------------
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EXHIBIT B
[Form of Rights Certificate]
Certificate No. R-______________________ _________ Rights
NOT EXERCISABLE AFTER SEPTEMBER 25, 2007 OR EARLIER IF
REDEMPTION OR EXCHANGE OCCURS. THE RIGHTS ARE SUBJECT
TO REDEMPTION, AT THE OPTION OF ST. FRANCIS CAPITAL
CORPORATION, AT $.0l PER RIGHT, AND EXCHANGE ON THE
TERMS SET FORTH IN THE SHAREHOLDER RIGHTS AGREEMENT.
UNDER CERTAIN CIRCUMSTANCES DESCRIBED IN SUCH
SHAREHOLDER RIGHTS AGREEMENT, RIGHTS BENEFICIALLY
OWNED BY A RESTRICTED PERSON (AS SUCH TERM IS DEFINED
IN SUCH AGREEMENT), OR BY CERTAIN TRANSFEREES FROM A
RESTRICTED PERSON, SHALL BE OR BECOME VOID.
RIGHTS CERTIFICATE
ST. FRANCIS CAPITAL CORPORATION
This certifies that __________________________, or registered assigns, is
the registered owner of the number of Rights set forth above, each of which
entitles the owner, subject to the terms, provisions and conditions of the
Shareholder Rights Agreement dated as of September 25, 1997 (the "Rights
Agreement") between St. Francis Capital Corporation, a Wisconsin corporation
(the "Company"), and Firstar Trust Co., a Wisconsin-chartered trust company
(the "Rights Agent"), to purchase from the Company at any time after the
Distribution Date and prior to the Close of Business on September 25, 2007, at
the principal office of the Rights Agent or its successor as Rights Agent, one
one-hundredth of a fully paid and nonassessable share of Series A Junior
Participating Preferred Stock, $.01 par value per share (the "Preferred
Shares"), of the Company at a purchase price of $150 per one one-hundredth of a
Preferred Share (the "Exercise Price"), upon presentation and surrender of this
Rights Certificate with the Form of Election to Purchase and the related Form
of Certification of Status duly executed, together with such signature
guarantees and other documentation as the Rights Agent may reasonably request.
The number of Rights evidenced by this Rights Certificate (as well as the
number of one one-hundredths of a Preferred Share which may be purchased upon
the exercise of each Right) set forth above, and the Exercise Price set forth
above, are the numbers and the Exercise Price as of __________________, ______,
based on the Preferred Shares as constituted on such date. As provided in
the Rights Agreement, such number of Rights (and/or such number of one
one-hundredths of a Preferred Share) and such Exercise Price are subject to
change and adjustment upon the happening of certain events specified in the
Rights Agreement. Capitalized terms not defined herein have the respective
meanings specified in the Rights Agreement.
From and after the first occurrence of a Flip-In Event, if the Rights
evidenced by this Rights Certificate are Beneficially Owned by (i) a Restricted
Person, (ii) a transferee from a
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<PAGE> 46
Restricted Person who becomes a transferee after the Acquiring Person or
Adverse Person becomes such, or (iii) under certain circumstances specified in
the Rights Agreement, a transferee from a Restricted Person who becomes a
transferee prior to or concurrently with the Acquiring Person or Adverse Person
becoming such, such Rights shall be or become void, and no holder hereof shall
have any rights whatsoever with respect to such Rights.
This Rights Certificate is subject to all of the terms, provisions and
conditions of the Rights Agreement, which terms, provisions and conditions are
incorporated herein by reference and made a part hereof, to which Rights
Agreement reference is hereby made for a full description of the rights,
powers, obligations, duties and immunities hereunder of the Company, the Rights
Agent and the holders of the Rights Certificates. Under the circumstances set
forth in the Rights Agreement, the exercisability of the Rights represented
hereby may be temporarily suspended. The Rights Agreement is on file at the
principal office of the Company and at the principal office of the Rights
Agent, and a copy will be provided upon written request to the Secretary of the
Company.
Upon surrender at the principal office of the Rights Agent, this Rights
Certificate, with or without other Rights Certificates, may be exchanged for
one or more Rights Certificates of like tenor and date evidencing Rights
entitling the holder to purchase the same aggregate number of one
one-hundredths of a Preferred Share as the Rights evidenced by the Rights
Certificates so surrendered. If this Rights Certificate shall be exercised in
part, the holder hereof shall be entitled to receive, upon surrender hereof,
one or more Rights Certificates for the number of whole Rights not exercised.
Subject to the provisions of the Rights Agreement, the Rights evidenced by
this Rights Certificate (i) may be redeemed, at the direction of the Board, at
a redemption price (subject to adjustment) of $.0l per Right (payable in cash,
shares of Common Stock of the Company or any other form of consideration deemed
appropriate by the Board), or (ii) under certain circumstances, may be
exchanged, in whole or in part, at the direction of the Board, for shares of
Common Stock of the Company or Preferred Shares at an exchange rate (subject to
adjustment) of one share of Common Stock or one one-hundredth of a Preferred
Share per Right.
No fractional Preferred Share will be issued upon the exercise of any
Rights represented hereby (other than fractions which are a multiple of one
one-hundredth of a Preferred Share), but in lieu thereof a cash payment will be
made as provided in the Rights Agreement.
In certain circumstances described in the Rights Agreement, the Rights
evidenced hereby may entitle the registered holder thereof to purchase
securities of an entity other than the Company or securities or assets of the
Company other than the Preferred Shares, all as provided in the Rights
Agreement.
No holder, as such, of this Rights Certificate shall be entitled to vote,
to receive dividends or other distributions on or to exercise any preemptive
rights with respect to, or shall be deemed for any other purpose to be the
holder of, the Preferred Shares or other shares of capital stock of any class
of the Company which may at any time be issuable upon exercise hereof; nor
shall anything contained herein or in the Rights Agreement be construed to
confer upon the holder hereof, as such, any of the rights of a shareholder of
the Company, or any right to vote for the
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<PAGE> 47
election of directors or upon any other matter submitted to shareholders at any
meeting thereof, to give or withhold consent to any corporate action, to
receive notice of meetings or other actions affecting shareholders (except as
provided in the Rights Agreement) or to receive dividends, subscription rights
or other distributions, until the Rights evidenced by this Rights Certificate
shall have been exercised, in whole or in part, in accordance with the
provisions of the Rights Agreement.
This Rights Certificate shall not be valid or obligatory for any purpose
until it shall have been countersigned by the Rights Agent.
IN WITNESS WHEREOF, this Rights Certificate has been executed by the
Company by the duly authorized facsimile signature of a proper officer of the
Company and a facsimile of its corporate seal has been imprinted hereon and
duly attested by the duly authorized facsimile signature of a proper officer of
the Company.
Dated as of ____________________,____.
ST. FRANCIS CAPITAL CORPORATION
By: ________________________________
Name:
Title:
ATTEST: ____________________________
Name:
Title:
Countersigned:
FIRSTAR TRUST CO. (AS RIGHTS AGENT)
By: ________________________________
Authorized Signature
ATTEST: ____________________________
Name:
Title:
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<PAGE> 48
[Reverse Side of Rights Certificate]
FORM OF ELECTION TO PURCHASE
(To be executed by the registered holder if such holder desires to exercise
Rights represented by this Rights Certificate)
TO: ST. FRANCIS CAPITAL CORPORATION
The undersigned hereby irrevocably elects to exercise __________ Rights
represented by this Rights Certificate to purchase the Preferred Shares (or
other securities, cash or property) issuable upon the exercise of such Rights
and requests that certificates for such Preferred Shares be issued in the name
of:
Please print name and address: ______________________________________
______________________________________
______________________________________________________________________________
______________________________________________________________________________
Please insert social security,
taxpayer identification
or other identifying number: ______________________________________
If such number of Rights shall not be all the Rights represented by this
Rights Certificate, a new Rights Certificate for the remaining unexercised
Rights shall be registered in the name of and delivered to:
Please print name and address: ______________________________________
______________________________________
______________________________________________________________________________
______________________________________________________________________________
Please insert social security,
taxpayer identification
or other identifying number: ______________________________________
Dated: __________________ , ____ ______________________________________
Signature
Signatures must be guaranteed by an Eligible Guarantor Institution, as
defined in Rule 17Ad-15 promulgated under the Securities Exchange Act of 1934,
as amended.
Signature Guaranteed:___________________________________________________________
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<PAGE> 49
CERTIFICATION OF STATUS
The undersigned hereby certifies by checking the appropriate boxes that:
(1) this Rights Certificate [ ] is [ ] is not being exercised by or on
behalf of a Person who is or was a Restricted Person (as such term is defined
in the Rights Agreement); and
(2) after due inquiry and to the best knowledge of the undersigned, it [ ]
did [ ] did not acquire, directly or indirectly, the Rights evidenced by
this Rights Certificate from any Person who is, was or subsequently became a
Restricted Person.
Dated: _____________, _____________________________________________
Signature
Signatures must be guaranteed by an Eligible Guarantor Institution, as
defined in Rule 17Ad-15 promulgated under the Securities Exchange Act of 1934,
as amended.
Signature Guaranteed:__________________________________________________________
NOTICE
The signature(s) on the foregoing Form of Election to Purchase and
Certification of Status must correspond to the name written upon the face of
this Rights Certificate in every particular, without alteration or any change
whatsoever.
In the event the Certification of Status set forth above is not completed,
the Company will deem the beneficial owner of the Rights represented by this
Rights Certificate to be a Restricted Person (as such term is defined in the
Rights Agreement), will not honor the Election to Purchase and will affix a
legend to such effect on this Rights Certificate and on any Rights Certificates
issued in exchange for this Rights Certificate.
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<PAGE> 50
[Reverse Side of Rights Certificate]
FORM OF ASSIGNMENT
(To be executed by the registered holder if such holder
desires to transfer this Rights Certificate)
FOR VALUE RECEIVED _______________ hereby sells, assigns and transfers unto
________________________________________________________________________________
________________________________________________________________________________
(Please print name and address of transferee)
this Rights Certificate, together with all right, title and interest therein,
and does hereby irrevocably constitute and appoint ____________ Attorney, to
transfer the within Rights Certificate on the books of the within-named
Company, with full power of substitution.
Dated:__________________ , _________________________________________
Signature
Signatures must be guaranteed by an Eligible Guarantor Institution, as
defined in SEC Rule 17Ad-15 promulgated under the Securities Exchange Act of
1934, as amended.
Signature Guaranteed:___________________________________________________________
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<PAGE> 51
CERTIFICATION OF STATUS
The undersigned hereby certifies by checking the appropriate boxes that:
(1) this Rights Certificate [ ] is [ ] is not being sold, assigned or
transferred by or on behalf of a Person who is or was a Restricted Person (as
such term is defined in the Rights Agreement); and
(2) after due inquiry and to the best knowledge of the undersigned, it [ ]
did [ ] did not acquire, directly or indirectly, the Rights evidenced by this
Rights Certificate from any Person who is, was or subsequently became a
Restricted Person.
Dated: __________________, __________________________________________
Signature
Signatures must be guaranteed by an Eligible Guarantor Institution, as
defined in Rule 17Ad-15 promulgated under the Securities Exchange Act of 1934,
as amended.
Signature Guaranteed:___________________________________________________________
NOTICE
The signature(s) on the foregoing Form of Assignment and Certification of
Status must correspond to the name written upon the face of this Rights
Certificate in every particular, without alteration or any change whatsoever.
In the event the Certification of Status set forth above is not completed,
the Company will deem the beneficial owner of the Rights represented by this
Rights Certificate to be a Restricted Person (as such term is defined in the
Rights Agreement), will not honor the Assignment and will affix a legend to
such effect on this Rights Certificate and on any Rights Certificates issued in
exchange for this Rights Certificate.
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<PAGE> 52
EXHIBIT C
SUMMARY OF RIGHTS TO PURCHASE
SHARES OF SERIES A JUNIOR PARTICIPATING PREFERRED STOCK
On September 25, 1997, the Board of Directors (the "Board") of St. Francis
Capital Corporation (the "Company") declared a dividend of one preferred stock
purchase right (a "Right") for each outstanding share of Common Stock, $.01 par
value per share (the "Common Stock"), of the Company. The dividend is payable
to the holders of record of the Common Stock at the Close of Business on
October 10, 1997 (the "Record Date"). Except as described below, each Right
entitles the holder thereof, at any time on or after the Business Day (as
hereinafter defined) following the Distribution Date (as hereinafter defined)
and prior to the earliest of the Close of Business on the "Final Expiration
Date" (as hereinafter defined) and the time at which such Rights are exchanged,
to purchase from the Company one one-hundredth of a share of the Company's
Series A Junior Participating Preferred Stock, $.01 par value per share (the
"Preferred Shares"), at a price of $150 per one one-hundredth of a Preferred
Share, subject to adjustment (the "Exercise Price"). The Rights may not be
exercised until the Business Day after the Distribution Date. The terms of the
Rights are set forth in the Shareholder Rights Agreement dated as of September
25, 1997 (the "Rights Agreement") between the Company and Firstar Trust Co., as
Rights Agent (the "Rights Agent"). Capitalized terms not defined herein have
the respective meanings specified in the Rights Agreement.
1. DISTRIBUTION DATE; TRANSFER OF RIGHTS.
Initially, the Rights associated with the Common Stock outstanding as of
the Record Date will be evidenced solely by the certificates for shares of
Common Stock, with a copy of this Summary of Rights attached thereto.
Certificates for shares of Common Stock delivered by or on behalf of the
Company after the Record Date and prior to the earliest of the Distribution
Date, redemption of the Rights or the Final Expiration Date, either upon
transfer of outstanding shares, including certificates for shares of Common
Stock which were reacquired by the Company and then transferred, or original
issuance of additional shares of Common Stock, will contain a notation
incorporating the Rights Agreement by reference. Until the Distribution Date,
redemption of the Rights or the Final Expiration Date, the Rights may be
transferred only with the associated shares of Common Stock and the surrender
for transfer of any certificate for shares of Common Stock, with or without a
notation and whether or not a copy of this Summary of Rights is attached
thereto, shall constitute the transfer of the Rights associated with the shares
of Common Stock represented by such stock certificate.
The Rights will separate from the Common Stock upon the earliest to occur
of: (i) the Close of Business on the tenth Business Day after the first date
on which there shall be, as determined by a majority of the Disinterested
Directors (as hereinafter defined) then in office in their sole discretion, a
public announcement by the Company or any Person that such Person has become an
Acquiring Person (as hereinafter defined); (ii) the Close of Business on the
tenth Business Day (or such later Business Day as may be determined by action
of the Board) after the commencement by any Person (other than an Exempt
Person) of, or the first public announcement of the intention of any Person to
commence, a tender or exchange offer if, upon consummation
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<PAGE> 53
thereof, such Person would be the Beneficial Owner of 15% or more of the
outstanding shares of Common Stock (provided, however, that if such tender or
exchange offer is cancelled, terminated or otherwise withdrawn prior to the
Distribution Date without the purchase of any Common Stock, such offer shall be
deemed for purposes of the definition of "Distribution Date" never to have been
commenced or publicly announced); and (iii) the Close of Business on the tenth
Business Day after a determination by at least a majority of the Disinterested
Directors who are not officers of the Company that a Person has become an
Adverse Person (as hereinafter defined). The earliest of the dates specified
in clauses (i), (ii) and (iii) is the "Distribution Date." After the
Distribution Date, the Rights will be evidenced solely by separate
certificates.
An "Acquiring Person" is any Person who or which, together with its
Affiliates and Associates, has become the Beneficial Owner of 15% or more of
the shares of Common Stock then outstanding, but does not include (i) the
Company, (ii) any Subsidiary of the Company, (iii) any employee stock ownership
plan, employee benefit plan or other compensation program or arrangement of the
Company or of any Subsidiary, (iv) any Person holding shares of Common Stock
for or pursuant to the terms of any such plan, program or arrangement set forth
in (iii) above, (v) any Person who becomes the Beneficial Owner of 15% or more
of the outstanding Common Stock solely as a result of an acquisition of Common
Stock by the Company, until such time as such Person acquires additional Common
Stock, or (vi) any Person who becomes an Acquiring Person without any plan or
intent to seek or affect control of the Company if such Person promptly enters
into an irrevocable commitment promptly to divest and thereafter promptly
divests such Common Stock so that such Person ceases to be the Beneficial Owner
of 15% or more of the outstanding Common Stock (the Persons specified in
clauses (i) through (iv) being herein collectively called "Exempt Persons").
An "Adverse Person" is any Person who or which, together with its Affiliates
and Associates, has acquired 10% or more of the Common Stock outstanding and
has been determined, by at least a majority of the Disinterested Directors who
are not officers of the Company, to be reasonably likely to cause the Company
to take action which would provide such Person with a short-term financial gain
not in the best long-term interests of the Company and its shareholders or is
reasonably likely to have a material adverse effect on the business or
prospects of the Company. A "Disinterested Director" is any member of the
Board who is not a Restricted Person (as hereinafter defined), or a
representative or nominee of a Restricted Person, and who was a member of the
Board as of the date of the Rights Agreement, or any individual who
subsequently becomes a member of the Board and is not a Restricted Person or a
representative or nominee of a Restricted Person, if such Person's nomination
for election to the Board is recommended or approved by a majority of the
Disinterested Directors then in office. A "Restricted Person" is an Acquiring
Person, an Adverse Person or any Affiliate or Associate thereof.
As soon as practicable following the Distribution Date, separate
certificates evidencing the Rights ("Rights Certificates") will be mailed to
the holders of record of the Common Stock as of the Close of Business on the
Distribution Date. Each share of Common Stock issued by the Company after the
Distribution Date and prior to the Final Expiration Date, including shares of
Common Stock issued by reason of the exercise of any option, warrant, right
(other than the Rights) or conversion or exchange privilege (other than the
Rights) or convertible or exchangeable security issued by the Company prior to
the Distribution Date, will be accompanied by a Right (unless the Board
expressly provides to the contrary at the time of issuance of any such option,
warrant, right or convertible or exchangeable security), and Rights
Certificates
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<PAGE> 54
evidencing such Rights will be issued at the same time as the certificates for
the associated shares of Common Stock.
2. TERMS OF PREFERRED SHARES.
The Preferred Shares receivable upon exercise of the Rights will not be
redeemable. Each Preferred Share will entitle the record holder thereof to
receive a preferential dividend equal to 100 times the aggregate per share
amount of all cash dividends, and 100 times the aggregate per share amount
(payable in kind) of all non-cash dividends or other distributions (other than
in shares of Common Stock) declared on the Common Stock, adjusted to give
effect to any dividend on the Common Stock payable in shares of Common Stock or
any subdivision, combination or reclassification of the Common Stock (a
"Dilution Event"). In the event of liquidation of the Company, the holder of
each Preferred Share will be entitled to receive a preferential liquidation
payment equal to the greater of $1.00 and 100 times the aggregate per share
amount to be distributed to the holders of the Common Stock, adjusted to give
effect to any Dilution Event, plus an amount equal to accrued and unpaid
dividends and distributions on such Preferred Share, whether or not declared,
to the date of such payment. Each Preferred Share will entitle the holder
thereof to 100 votes on all matters submitted to a vote of the shareholders of
the Company, voting together as a single class with the holders of the Common
Stock and the holders of any other class of capital stock having general voting
rights, adjusted to give effect to any Dilution Event. In the event of any
merger, consolidation or other transaction in which the outstanding shares of
Common Stock of the Company are exchanged for or converted into other capital
stock, securities, cash or other property, each Preferred Share will be
similarly exchanged or converted into 100 times the per share amount applicable
to the Common Stock, adjusted to give effect to any Dilution Event.
3. EXERCISE OR EXCHANGE OF RIGHTS UNDER CERTAIN CIRCUMSTANCES.
In the event that (i) a Person becomes an Acquiring Person, (ii) a Person
(other than an Exempt Person) commences or first publicly announces the
intention of a Person (other than an Exempt Person) to commence a tender or
exchange offer if, upon the consummation thereof, such Person would be the
Beneficial Owner of 15% or more of the shares of Common Stock outstanding, or
(iii) a person is declared to be an Adverse Person (where the earliest of such
events shall be referred to as a "Flip-In Event"), proper provision will be
made so that the registered holder of each Right (other than Rights
Beneficially Owned by a Restricted Person or their designated transferees) will
thereafter have the right, unless the Rights are earlier redeemed, exchanged or
expire, to acquire, upon exercise and payment of the Exercise Price, to receive
the number of shares of Common Stock which, at the time of the occurrence of
such event, will have a market value equal to two times the then current
Exercise Price. After a Flip-In Event, all rights which are, or (under certain
circumstances specified in the Rights Agreement) were, Beneficially Owned by a
Restricted Person or designated transferees therefrom, will be or become void.
Under no circumstances may a Right be exercised unless the Company's option to
redeem the Rights has expired.
At any time after a Flip-In Event and prior to the time that any Person
(other than an Exempt Person), together with its Affiliates and Associates, has
become the Beneficial Owner of 50% or more of the outstanding shares of Common
Stock, the Board may direct that all or any
3
<PAGE> 55
part of the outstanding and exercisable Rights (other than Rights which have
become void) be exchanged for shares of Common Stock at the exchange rate of
one share of Common Stock per Right, adjusted to give effect to any Dilution
Event. Any partial exchange will be effected pro rata among the registered
holders of the Rights based upon the number of Rights held.
If, on or after the occurrence of a Flip-In Event: (i) the Company merges
into or consolidates with an Interested Shareholder (as hereinafter defined)
or, unless all holders of the Common Stock are treated the same, another Person
(with limited designated exceptions); (ii) an Interested Shareholder or, unless
all holders of the Common Stock are treated the same, another Person (with
limited exceptions) merges into the Company and either (A) all or part of the
outstanding shares of Common Stock of the Company are converted into capital
stock or other securities of any other Person (or the Company), cash and/or
other property, or (B) such shares remain outstanding, unconverted and
unchanged; or (iii) the Company sells or transfers 50% or more of its
consolidated assets or earning power in one or a series of related transactions
to an Interested Shareholder or, unless all holders of the Company's
outstanding shares of Common Stock are treated the same, another Person (with
limited exceptions); then proper provision will be made so that the registered
holder of each Right (other than Rights which have become void) will thereafter
have the right to acquire, upon exercise and payment of the Exercise Price, the
number of common shares of the acquiror (or of another Person affiliated
therewith) which, at the time of consummation of such transaction, will have a
market value equal to two times the then current Exercise Price. An
"Interested Shareholder" is any Restricted Person or any Affiliate or Associate
of any other Person in which such Restricted Person has an interest, or any
Person acting, directly or indirectly, on behalf of or in concert with any such
Restricted Person.
4. ADJUSTMENTS TO EXERCISE PRICE AND STOCK PURCHASABLE UPON EXERCISE.
The Exercise Price payable and the number and kind of shares of capital
stock issuable upon exercise of the Rights are subject to adjustment from time
to time to prevent dilution (i) in the event of a dividend payable in Preferred
Shares on, or a subdivision, combination or reclassification of, the Preferred
Shares, (ii) upon the grant to the holders of the Preferred Shares of certain
options, warrants or rights to subscribe for or purchase Preferred Shares at a
price, or securities convertible into or exchangeable for Preferred Shares with
a conversion or exchange price, less than the then current market price of the
Preferred Shares, or (iii) upon the distribution to the holders of the
Preferred Shares of cash, securities, evidences of indebtedness or other
property (other than a regular quarterly cash dividend or a dividend payable in
Preferred Shares) or options, warrants or rights (other than those referred to
in clause (ii) above). The number of outstanding Rights and the number of one
one-hundredths of a Preferred Share issuable upon exercise of each Right also
are subject to adjustment in the event of a dividend on the Common Stock
payable in shares of Common Stock or a subdivision, combination or
reclassification of the Common Stock occurring, in any such case, prior to the
Distribution Date.
With certain specified exceptions, no adjustment in the Exercise Price
will be made until the cumulative adjustments required equal at least 1% of the
Exercise Price. The Company is not required to issue fractional Preferred
Shares (other than fractions which are multiples of one one-hundredth of a
Preferred Share), but in lieu thereof the Company will make a cash payment
based upon the market value of the Preferred Shares on the trading day
immediately preceding the date of exercise.
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<PAGE> 56
5. REDEMPTION OF RIGHTS.
At any time prior to the earliest of the Distribution Date and the Final
Expiration Date, the Board may redeem the Rights in whole, but not in part, at
the redemption price of $.0l per Right, adjusted to give effect to any Dilution
Event (the "Redemption Price"); provided, however, that, under certain
circumstances specified in the Rights Agreement, the Rights may not be redeemed
unless there is more than one Disinterested Director in office and such
redemption is approved by at least a majority of such Disinterested Directors.
The redemption of the Rights may be made effective at such time, on such basis
and with such conditions as the Board, in its sole discretion, may establish.
Immediately after action by the Board directing the redemption of the Rights,
the option to exercise the Rights will terminate, and thereafter each
registered holder of the Rights will only be entitled to receive the Redemption
Price therefor.
6. AMENDMENT OF THE RIGHTS.
Prior to the Distribution Date, the terms of the Rights and the Rights
Agreement may be supplemented or amended by the Board in any manner. From and
after the Distribution Date, the Rights may be supplemented or amended by the
Board, without the approval of the holders of the Rights, in certain respects
which do not materially adversely affect, as determined by the Board (with the
concurrence of at least a majority of the Disinterested Directors), the
interests of such holders (excluding the interests of any Restricted Person);
provided, however, that the Rights Agreement cannot be amended to lengthen (i)
any time period unless such lengthening is approved by at least a majority of
the Disinterested Directors, and such lengthening is for the benefit of the
holders of the Rights (excluding the interests of any Acquiring Person, Adverse
Person or Affiliate or Associate thereof), or (ii) any time period relating to
when the Rights may be redeemed if at such time the Rights are not then
redeemable.
7. MISCELLANEOUS.
The Rights will expire on the Close of Business on September 25, 2007 (the
"Final Expiration Date"), unless the Final Expiration Date is extended or the
Rights are earlier redeemed or exchanged by the Company. Until a Right is
exercised, the holder thereof, as such, will have no rights as a shareholder of
the Company, including, without limitation, the right to vote or to receive
dividends. A copy of the Rights Agreement has been filed with the Securities
and Exchange Commission as an Exhibit to Form 8-K dated September 25, 1997. A
copy of the Rights Agreement is available free of charge from the Company.
This summary description of the Rights does not purport to be complete and is
qualified in its entirety by reference to the Rights Agreement, which is
incorporated herein by reference.
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EXHIBIT 99.1
ST. FRANCIS CAPITAL CORPORATION NEWS RELEASE
FOR IMMEDIATE RELEASE
ST. FRANCIS CAPITAL CORPORATION
ADOPTS SHAREHOLDER
RIGHTS PLAN
For More Information Contact:
Jon D. Sorenson
Chief Financial Officer
(414) 486-8700
________________________________________________________________________________
Brookfield, Wisconsin - September 25, 1997 - 4:00 p.m. (CDT) . . . St.
Francis Capital Corporation ("St. Francis") (NASDAQ/NMS: STFR) announced today
that its board of directors has adopted a Shareholder Rights Plan (the "Rights
Plan"). Although the Rights Plan has not been adopted in response to any
specific offer or threat of takeover, Thomas R. Perz, President and Chief
Executive Officer of St. Francis, said that "the Rights Plan is designed to
protect St. Francis's shareholders from any unfair or coercive takeover
attempt."
Under the Rights Plan, St. Francis's shareholders of record as of October
10, 1997 will receive a dividend distribution of one preferred stock purchase
right (a "Right") for each outstanding share of St. Francis common stock.
Subject to the terms of the Rights Plan, each Right entitles the registered
holder to purchase one one-hundredth of a share of St. Francis's new series of
preferred stock at an exercise price of $150. Until Rights become exercisable,
outstanding St. Francis stock certificates will represent both shares of St.
Francis common stock and Rights. Rights will trade with the shares of St.
Francis's common stock until such time as they might become exercisable.
Rights would not become exercisable until eleven business days after any
person or group has acquired, commenced, or announced its intention to commence
a tender or exchange offer to acquire 15% or more of St. Francis's common
stock. Rights also become exercisable eleven business days after the
disinterested members of St. Francis's Board of Directors determine that a
person or group beneficially owning 10% or more of St. Francis's common stock
is likely to (i) seek short-term financial gain to the detriment of the best
long-term interests of St. Francis or its shareholders, or (ii) materially and
adversely effect the business or prospects of St. Francis. At any time prior
to such eleventh business day, the Company is entitled to redeem the Rights at
$.01 per Right. If Rights become exercisable, holders of each Right, other
than the acquiring or adverse person, will have the right, upon payment of the
exercise price, to purchase the number of shares of the Company's common stock
(in lieu of the preferred stock) which, at that time, have a market value of
two times the exercise price of a Right. If the Rights become exercisable, St.
Francis's Board of Directors may also exchange Rights, other than those held by
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the acquiring person or adverse person, in whole or in part, at an exchange
ratio of one share of the Company's common stock per Right.
At any time after a person or group acquires 15% or more of the Company's
common stock, if the Company is acquired in a merger or other business
combination or 50% or more of its consolidated assets or earning power are
sold, Rights holders other than the acquiring person or group will have the
right, upon payment of the exercise price, to purchase that number of shares of
common stock of the acquiring company (in lieu of preferred shares) which, at
the time of the transaction, have a market value equal to two times the
exercise price of a Right.
Rights will expire on September 25, 2007. Details of the Rights
distribution are contained in a "Summary of Rights" which will be mailed to all
of St. Francis's shareholders of record as of October 10, 1997.
St. Francis Capital Corporation is a unitary thrift holding company
incorporated under the laws of the State of Wisconsin and engaged in the
financial services business through its wholly-owned subsidiary, St. Francis
Bank, F.S.B. St. Francis's principal business is attracting retail
deposits from the general public and investing those deposits, together with
funds generated from other operations, primarily to originate commercial,
consumer and mortgage loans within Milwaukee, Waukesha, Ozaukee, Washington,
Walworth and Kenosha counties and to invest in mortgage-backed and related
securities. Primary areas of lending include commercial loans, single-family
and multi-family residential mortgages, home equity lines of credit, second
mortgages and commercial real estate and commercial loans.
# # #
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