Exhibit 4.3
WARRANT TO PURCHASE COMMON
STOCK
THE SECURITIES REPRESENTED BY THIS
INSTRUMENT HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF
1933, AS AMENDED, OR THE SECURITIES LAWS OF ANY STATE AND MAY NOT
BE TRANSFERRED, SOLD OR OTHERWISE DISPOSED OF EXCEPT WHILE A
REGISTRATION STATEMENT RELATING THERETO IS IN EFFECT UNDER SUCH ACT
AND APPLICABLE STATE SECURITIES LAWS OR PURSUANT TO AN EXEMPTION
FROM REGISTRATION UNDER SUCH ACT OR SUCH LAWS. THIS INSTRUMENT IS
ISSUED SUBJECT TO THE RESTRICTIONS ON TRANSFER AND OTHER PROVISIONS
OF A SECURITIES PURCHASE AGREEMENT BETWEEN THE ISSUER OF THESE
SECURITIES AND THE INVESTOR REFERRED TO THEREIN, A COPY OF WHICH IS
ON FILE WITH THE ISSUER. THE SECURITIES REPRESENTED BY THIS
INSTRUMENT MAY NOT BE SOLD OR OTHERWISE TRANSFERRED EXCEPT IN
COMPLIANCE WITH SAID AGREEMENT. ANY SALE OR OTHER TRANSFER NOT IN
COMPLIANCE WITH SAID AGREEMENT WILL BE VOID.
WARRANT
to purchase
1,305,230
Shares of Common
Stock
of First Midwest Bancorp,
Inc.
Issue Date: December 5,
2008
1. Definitions . Unless the
context otherwise requires, when used herein the following terms
shall have the meanings indicated.
“ Affiliate ” has
the meaning ascribed to it in the Purchase Agreement.
“ Appraisal Procedure
” means a procedure whereby two independent appraisers, one
chosen by the Company and one by the Original Warrantholder, shall
mutually agree upon the determinations then the subject of
appraisal. Each party shall deliver a notice to the other
appointing its appraiser within 15 days after the Appraisal
Procedure is invoked. If within 30 days after appointment of the
two appraisers they are unable to agree upon the amount in
question, a third independent appraiser shall be chosen within 10
days thereafter by the mutual consent of such first two appraisers.
The decision of the third appraiser so appointed and chosen shall
be given within 30 days after the selection of such third
appraiser. If three appraisers shall be appointed and the
determination of one appraiser is disparate from the middle
determination by more than twice the amount by which the other
determination is disparate from the middle determination, then the
determination of such appraiser shall be excluded, the remaining
two determinations shall be
averaged and such average shall be binding and
conclusive upon the Company and the Original Warrantholder;
otherwise, the average of all three determinations shall be binding
upon the Company and the Original Warrantholder. The costs of
conducting any Appraisal Procedure shall be borne by the
Company.
“ Board of Directors
” means the board of directors of the Company, including any
duly authorized committee thereof.
“ Business Combination
” means a merger, consolidation, statutory share exchange or
similar transaction that requires the approval of the
Company’s stockholders.
“ business day ”
means any day except Saturday, Sunday and any day on which banking
institutions in the State of New York generally are authorized or
required by law or other governmental actions to close.
“ Capital Stock ”
means (A) with respect to any Person that is a corporation or
company, any and all shares, interests, participations or other
equivalents (however designated) of capital or capital stock of
such Person and (B) with respect to any Person that is not a
corporation or company, any and all partnership or other equity
interests of such Person.
“ Charter ”
means, with respect to any Person, its certificate or articles of
incorporation, articles of association, or similar organizational
document.
“ Common Stock ”
has the meaning ascribed to it in the Purchase
Agreement.
“ Company ” means
the Person whose name, corporate or other organizational form and
jurisdiction of organization is set forth in Item 1 of
Schedule A hereto.
“ conversion ”
has the meaning set forth in Section 13(B).
“ convertible
securities ” has the meaning set forth in
Section 13(B).
“ CPP ” has the
meaning ascribed to it in the Purchase Agreement.
“ Exchange Act ”
means the Securities Exchange Act of 1934, as amended, or any
successor statute, and the rules and regulations promulgated
thereunder.
“ Exercise Price
” means the amount set forth in Item 2 of Schedule A
hereto.
“ Expiration Time
” has the meaning set forth in Section 3.
“ Fair Market Value
” means, with respect to any security or other property, the
fair market value of such security or other property as determined
by the Board of Directors, acting in good faith or, with respect to
Section 14, as determined by the Original Warrantholder acting
in good faith. For so long as the Original Warrantholder holds this
Warrant or any portion thereof, it may object in writing to the
Board of Director’s calculation of fair market value within
10 days of receipt of written notice thereof. If the Original
Warrantholder and the Company are unable to agree on fair market
value during the 10-day period following the delivery of
the
Original Warrantholder’s objection, the
Appraisal Procedure may be invoked by either party to determine
Fair Market Value by delivering written notification thereof not
later than the 30th day after delivery of the Original
Warrantholder’s objection.
“ Governmental Entities
” has the meaning ascribed to it in the Purchase
Agreement.
“ Initial Number
” has the meaning set forth in Section 13(B).
“Issue
Date” means the
date set forth in Item 3 of Schedule A hereto.
“ Market Price ”
means, with respect to a particular security, on any given day, the
last reported sale price regular way or, in case no such reported
sale takes place on such day, the average of the last closing bid
and ask prices regular way, in either case on the principal
national securities exchange on which the applicable securities are
listed or admitted to trading, or if not listed or admitted to
trading on any national securities exchange, the average of the
closing bid and ask prices as furnished by two members of the
Financial Industry Regulatory Authority, Inc. selected from time to
time by the Company for that purpose. “Market Price”
shall be determined without reference to after hours or extended
hours trading. If such security is not listed and traded in a
manner that the quotations referred to above are available for the
period required hereunder, the Market Price per share of Common
Stock shall be deemed to be (i) in the event that any portion
of the Warrant is held by the Original Warrantholder, the fair
market value per share of such security as determined in good faith
by the Original Warrantholder or (ii) in all other
circumstances, the fair market value per share of such security as
determined in good faith by the Board of Directors in reliance on
an opinion of a nationally recognized independent investment
banking corporation retained by the Company for this purpose and
certified in a resolution to the Warrantholder. For the purposes of
determining the Market Price of the Common Stock on the
“trading day” preceding, on or following the occurrence
of an event, (i) that trading day shall be deemed to commence
immediately after the regular scheduled closing time of trading on
the New York Stock Exchange or, if trading is closed at an earlier
time, such earlier time and (ii) that trading day shall end at
the next regular scheduled closing time, or if trading is closed at
an earlier time, such earlier time (for the avoidance of doubt, and
as an example, if the Market Price is to be determined as of the
last trading day preceding a specified event and the closing time
of trading on a particular day is 4:00 p.m. and the specified event
occurs at 5:00 p.m. on that day, the Market Price would be
determined by reference to such 4:00 p.m. closing
price).
“ Ordinary Cash
Dividends ” means a regular quarterly cash dividend on
shares of Common Stock out of surplus or net profits legally
available therefor (determined in accordance with generally
accepted accounting principles in effect from time to time),
provided that Ordinary Cash Dividends shall not include any
cash dividends paid subsequent to the Issue Date to the extent the
aggregate per share dividends paid on the outstanding Common Stock
in any quarter exceed the amount set forth in Item 4 of
Schedule A hereto, as adjusted for any stock split, stock dividend,
reverse stock split, reclassification or similar
transaction.
“ Original
Warrantholder ” means the United States Department of the
Treasury. Any actions specified to be taken by the Original
Warrantholder hereunder may only be taken by such Person and not by
any other Warrantholder.
“ Permitted
Transactions ” has the meaning set forth in
Section 13(B).
“ Person ” has
the meaning given to it in Section 3(a)(9) of the Exchange Act
and as used in Sections 13(d)(3) and 14(d)(2) of the Exchange
Act.
“ Per Share Fair Market
Value ” has the meaning set forth in
Section 13(C).
“Preferred
Shares ” means the
perpetual preferred stock issued to the Original Warrantholder on
the Issue Date pursuant to the Purchase Agreement.
“ Pro Rata Repurchases
” means any purchase of shares of Common Stock by the Company
or any Affiliate thereof pursuant to (A) any tender offer or
exchange offer subject to Section 13(e) or 14(e) of the
Exchange Act or Regulation 14E promulgated thereunder or
(B) any other offer available to substantially all holders of
Common Stock, in the case of both (A) or (B), whether for
cash, shares of Capital Stock of the Company, other securities of
the Company, evidences of indebtedness of the Company or any other
Person or any other property (including, without limitation, shares
of Capital Stock, other securities or evidences of indebtedness of
a subsidiary), or any combination thereof, effected while this
Warrant is outstanding. The “ Effective Date ”
of a Pro Rata Repurchase shall mean the date of acceptance of
shares for purchase or exchange by the Company under any tender or
exchange offer which is a Pro Rata Repurchase or the date of
purchase with respect to any Pro Rata Repurchase that is not a
tender or exchange offer.
“ Purchase Agreement
” means the Securities Purchase Agreement – Standard
Terms incorporated into the Letter Agreement, dated as of the date
set forth in Item 5 of Schedule A hereto, as amended from time
to time, between the Company and the United States Department of
the Treasury (the “ Letter Agreement ”),
including all annexes and schedules thereto.
“ Qualified Equity
Offering ” has the meaning ascribed to it in the Purchase
Agreement.
“ Regulatory Approvals
” with respect to the Warrantholder, means, to the extent
applicable and required to permit the Warrantholder to exercise
this Warrant for shares of Common Stock and to own such Common
Stock without the Warrantholder being in violation of applicable
law, rule or regulation, the receipt of any necessary approvals and
authorizations of, filings and registrations with, notifications
to, or expiration or termination of any applicable waiting period
under, the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as
amended, and the rules and regulations thereunder.
“ SEC ” means the
U.S. Securities and Exchange Commission.
“ Securities Act
” means the Securities Act of 1933, as amended, or any
successor statute, and the rules and regulations promulgated
thereunder.
“ Shares ” has
the meaning set forth in Section 2.
“trading
day” means
(A) if the shares of Common Stock are not traded on any
national or regional securities exchange or association or
over-the-counter market, a business day or (B) if the shares
of Common Stock are traded on any national or regional
securities exchange or association or
over-the-counter market, a business day on which such relevant
exchange or quotation system is scheduled to be open for business
and on which the shares of Common Stock (i) are not suspended
from trading on any national or regional securities exchange or
association or over-the-counter market for any period or periods
aggregating one half hour or longer; and (ii) have traded at
least once on the national or regional securities exchange or
association or over-the-counter market that is the primary market
for the trading of the shares of Common Stock.
“ U.S. GAAP ”
means United States generally accepted accounting
principles.
“ Warrantholder ”
has the meaning set forth in Section 2.
“ Warrant ” means
this Warrant, issued pursuant to the Purchase Agreement.
2. Number of Shares; Exercise
Price . This certifies that, for value received, the United
States Department of the Treasury or its permitted assigns (the
“Warrantholder”) is entitled, upon the terms and
subject to the conditions hereinafter set forth, to acquire from
the Company, in whole or in part, after the receipt of all
applicable Regulatory Approvals, if any, up to an aggregate of the
number of fully paid and nonassessable shares of Common Stock set
forth in Item 6 of Schedule A hereto, at a purchase price per
share of Common Stock equal to the Exercise Price. The number of
shares of Common Stock (the “Shares”) and the Exercise
Price are subject to adjustment as provided herein, and all
references to “Common Stock,” “Shares” and
“Exercise Price” herein shall be deemed to include any
such adjustment or series of adjustments.
3. Exercise of Warrant; Term
. Subject to Section 2, to the extent permitted by applicable
laws and regulations, the right to purchase the Shares represented
by this Warrant is exercisable, in whole or in part by the
Warrantholder, at any time or from time to time after the execution
and delivery of this Warrant by the Company on the date hereof, but
in no event later than 5:00 p.m., New York City time on the tenth
anniversary of the Issue Date (the “ Expiration Time
”), by (A) the surrender of this Warrant and Notice of
Exercise annexed hereto, duly completed and executed on behalf of
the Warrantholder, at the principal executive office of the Company
located at the address set forth in Item 7 of Schedule A
hereto (or such other office or agency of the Company in the United
States as it may designate by notice in writing to the
Warrantholder at the address of the Warrantholder appearing on the
books of the Company), and (B) payment of the Exercise Price
for the Shares thereby purchased:
(i) by having the Company withhold,
from the shares of Common Stock that would otherwise be delivered
to the Warrantholder upon such exercise, shares of Common stock
issuable upon exercise of the Warrant equal in value to the
aggregate Exercise Price as to which this Warrant is so exercised
based on the Market Price of the Common Stock on the trading day on
which this Warrant is exercised and the Notice of Exercise is
delivered to the Company pursuant to this Section 3,
or
(ii) with the consent of both the
Company and the Warrantholder, by tendering in cash, by certified
or cashier’s check payable to the order of the Company, or by
wire transfer of immediately available funds to an account
designated by the Company.
If the Warrantholder does not
exercise this Warrant in its entirety, the Warrantholder will be
entitled to receive from the Company within a reasonable time, and
in any event not exceeding three business days, a new warrant in
substantially identical form for the purchase of that number of
Shares equal to the difference between the number of Shares subject
to this Warrant and the number of Shares as to which this Warrant
is so exercised. Notwithstanding anything in this Warrant to the
contrary, the Warrantholder hereby acknowledges and agrees that its
exercise of this Warrant for Shares is subject to the condition
that the Warrantholder will have first received any applicable
Regulatory Approvals.
4. Issuance of Shares;
Authorization; Listing . Certificates for Shares issued upon
exercise of this Warrant will be issued in such name or names as
the Warrantholder may designate and will be delivered to such named
Person or Persons within a reasonable time, not to exceed three
business days after the date on which this Warrant has been duly
exercised in accordance with the terms of this Warrant. The Company
hereby represents and warrants that any Shares issued upon the
exercise of this Warrant in accordance with the provisions of
Section 3 will be duly and validly authorized and issued,
fully paid and nonassessable and free from all taxes, liens and
charges (other than liens or charges created by the Warrantholder,
income and franchise taxes incurred in connection with the exercise
of the Warrant or taxes in respect of any transfer occurring
contemporaneously therewith). The Company agrees that the Shares so
issued will be deemed to have been issued to the Warrantholder as
of the close of business on the date on which this Warrant and
payment of the Exercise Price are delivered to the Company in
accordance with the terms of this Warrant, notwithstanding that the
stock transfer books of the Company may then be closed or
certificates representing such Shares may not be actually delivered
on such date. The Company will at all times reserve and keep
available, out of its authorized but unissued Common Stock, solely
for the purpose of providing for the exercise of this Warrant, the
aggregate number of shares of Common Stock then issuable upon
exercise of this Warrant at any time. The Company will
(A) procure, at its sole expense, the listing of the Shares
issuable upon exercise of this Warrant at any time, subject to
issuance or notice of issuance, on all principal stock exchanges on
which the Common Stock is then listed or traded and
(B) maintain such listings of such Shares at all times after
issuance. The Company will use reasonable best efforts to ensure
that the Shares may be issued without violation of any applicable
law or regulation or of any requirement of any securities exchange
on which the Shares are listed or traded.
5. No Fractional Shares or
Scrip . No fractional Shares or scrip representing fractional
Shares shall be issued upon any exercise of this Warrant. In lieu
of any fractional Share to which the Warrantholder would otherwise
be entitled, the Warrantholder shall be entitled to receive a cash
payment equal to the Market Price of the Common Stock on the last
trading day preceding the date of exercise less the pro-rated
Exercise Price for such fractional share.
6. No Rights as Stockholders;
Transfer Books . This Warrant does not entitle the
Warrantholder to any voting rights or other rights as a stockholder
of the Company prior to the date of exercise hereof. The Company
will at no time close its transfer books against transfer of this
Warrant in any manner which interferes with the timely exercise of
this Warrant.
7. Charges, Taxes and
Expenses . Issuance of certificates for Shares to the
Warrantholder upon the exercise of this Warrant shall be made
without charge to the Warrantholder for any issue or transfer tax
or other incidental expense in respec
