Document:

hb_8k0824ex102.htm

Exhibit 10.2

 

ANNEX K

 FORM OF REPAYMENT DOCUMENT

UNITED STATES DEPARTMENT OF THE TREASURY

1500 Pennsylvania Avenue, NW

Washington, D.C. 20220

August 25, 2011

Ladies and Gentlemen:

Reference is made to that certain Letter Agreement incorporating the Securities Purchase Agreement – Standard Terms (the “Securities Purchase Agreement”), dated as of the date set forth on Schedule A hereto, between the United States Department of the Treasury (the “Investor”) and the company set forth on Schedule A hereto (the “Company”).  Capitalized terms used but not defined herein shall have the meanings assigned to them in the Securities Purchase Agreement.  Pursuant to the Securities Purchase Agreement, at the Closing, the Company issued to the Investor the number of shares of the series of its preferred stock set forth on Schedule A hereto (the “Preferred Shares”) and a warrant to purchase the number of shares of its common stock set forth on Schedule A hereto (the “Warrant”).

 

In connection with the consummation of the repurchase (the “Repurchase”) by the Company from the Investor, on the date hereof, of the number of Preferred Shares listed on Schedule A hereto (the “Repurchased Preferred Shares”), as permitted by the Emergency Economic Stabilization Act of 2008, as amended by the American Recovery and Reinvestment Act of 2009:

 

(a)           The Company hereby acknowledges receipt from the Investor of the share certificate(s) set forth on Schedule A hereto representing the Preferred Shares; and

 

(b)           The Investor hereby acknowledges receipt from the Company of a wire transfer to the account of the Investor set forth on Schedule A hereto in immediately available funds of the aggregate purchase price set forth on Schedule A hereto, representing payment in full for the Repurchased Preferred Shares at a price per share equal to the Liquidation Amount per share, together with any accrued and unpaid dividends to, but excluding, the date hereof.

 

The Investor and the Company hereby agree that, notwithstanding Section 4.4 of the Securities Purchase Agreement, immediately following consummation of the Repurchase, but subject to compliance with applicable securities laws, the Investor shall be permitted to Transfer all or a portion of the Warrant with respect to, and/or exercise the Warrant for, all or a portion of the number of shares of Common Stock issuable thereunder, at any time and without limitation, and Section 4.4 of the Securities Purchase Agreement shall be deemed to be amended in order to permit the foregoing.  The Company shall take all steps as may be reasonably requested by the Investor to facilitate any such Transfer.

 

In addition, the Company agrees that in the event it elects to repurchase the Warrant, it shall deliver to the Investor within 15 calendar days of the date hereof a notice of intent to repurchase the Warrant, which notice shall be in accordance with Section 4.9(b) of the Securities Purchase Agreement (the “Warrant Repurchase Notice”).  In the event the Company does not deliver the Warrant Repurchase Notice to the Investor within 15 calendar days of the date hereof, the Investor hereby provides notice, pursuant to Section 4.5(p) of the Securities Purchase Agreement, of its intention to sell the Warrant, such notice to be effective as of the first day following the end of such 15-day period.

 

In the event that the Company delivers a Warrant Repurchase Notice and the Company and the Investor fail to agree on the Fair Market Value of the Warrant pursuant to the procedures (including the Appraisal Procedure), and in accordance with the time periods, set forth in Section 4.9(c) of the Securities Purchase Agreement or the Company revokes the delivery of such Warrant Repurchase Notice, then the Investor hereby provides notice of its intention to sell the Warrant.

 

This letter agreement will be governed by and construed in accordance with the federal law of the United States if and to the extent such law is applicable, and otherwise in accordance with the laws of the State of New York applicable to contracts made and to be performed entirely within such State.

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

[Remainder of this page intentionally left blank]

 

 

  

  

  

In witness whereof, the parties have duly executed this letter agreement as of the date first written above.

 

	  	
UNITED STATES DEPARTMENT OF THE TREASURY

	  	  	  	  
	  	  	  	  
	  	  	  	  
	  	
By:

	  	  
	  	  	
Name:

	  
	  	  	
Title:

	  
	  	  	  	  
	  	  	  	  
	  	
HORIZON BANCORP

	  	  	  	  
	  	  	  	  
	  	
By:

	  	  
	  	  	
Name: Mark E. Secor

	  	  	
Title: CFO

  

  

  

SCHEDULE A

	
General Information:

	  
	
Date of Letter Agreement incorporating the Securities Purchase Agreement:

	
December 19, 2008

	
Name of the Company:

	
Horizon Bancorp

	
Corporate or other organizational form of the Company:

	
Corporation

	
Jurisdiction of organization of the Company:

	
State of Indiana

	
Number and series of preferred stock issued to the Investor at the Closing:

	
25,000 shares of Fixed Rate Cumulative Perpetual Preferred Stock, Series A

	
Number of Initial Warrant Shares:

	
212,104

	  	  
	
Terms of the Repurchase:

	  
	
Number of Preferred Shares repurchased by the Company:

	
18,750

	
Share certificate number (representing the Preferred Shares previously issued to the Investor at the Closing):

	
Certificate Number A-2

	
Per share Liquidation Amount of Preferred Shares:

	
$1,000

	
Accrued and unpaid dividends on Preferred Shares:

	
$23,437.50

	
Aggregate purchase price for Repurchased Preferred Shares:

	
$18,773,435.50

	
Investor wire information for payment of purchase price:

	
ABA Number: 

Bank: 

Account Name: 

Account Number:exh101_082611.htm

Exhibit 10.1

 

CHANGE IN TERMS AGREEMENT

 

	
Principal

	
Loan Date

	
Maturity

	
Loan No

	
Call / Coll

	
Account

	
Officer

	
Initials

	
$1,906,781.18

	
07-11-2011

	
09-09-2011

	
1089922418

	
410 / 4

	
MACC PE00

	
755

	  
	
References in the boxes above are for Lender’s use only and do not limit the applicability of this document to any particular loan or item.

Any item above containing “***” has been omitted due to text length limitations.

	
 

Borrower:

	
 

MACC PRIVATE EQUITIES INC.

101 2ND ST SE SUITE 800

CEDAR RAPIDS, IA 52401-1219

 

	
 

Lender:

	
 

CEDAR RAPIDS BANK AND TRUST COMPANY

500 1ST AVENUE NE STE 100

CEDAR RAPIDS, IA 52401

 

 

	Principal Amount:  $1,906,781.18	Date of Agreement:  July 11, 2011

 

DESCRIPTION OF EXISTING INDEBTEDNESS.  Promissory Note dated 8/14/2009 in the amount of $4,814,022.34 with an original maturity date of 3/31/2010 and amended on 3/31/2010, 8/16/2010 and 1/10/2011.

 

DESCRIPTION OF CHANGE IN TERMS.  The maturity date is being extended from 7/11/2011 to 9/09/2011.

 

The verbiage under the heading “Payment” in the original Promissory Note and Change in Terms Agreements is hereby deleted in its’ entirety and replaced with the verbiage under the heading “Payment” below.

 

The verbiage under the heading “Exit Fee” in Section 3 of the Fifth Amendment to Business Loan Agreement is hereby deleted in its’ entirety and replaced the verbiage under the heading “Exit Fee” below.

 

Exit Fee.  A fee of $50,000.00 will be due from Borrower to Lender upon final payoff of the Note.

 

PAYMENT.  Borrower will pay this loan in one principal payment of $1,906,781.18 plus interest on September 9, 2011.  This payment due on September 9, 2011, will be for all principal and all accrued interest not yet paid.  In addition, Borrower will pay regular monthly payments of all accrued unpaid interest due as of each payment date, beginning July 31, 2011, with all subsequent interest payments to be due on the last day of each month after that.

 

VARIABLE INTEREST RATE.  The interest rate on this loan is subject to change from time to time based on changes in an independent index which is the Wall Street Journal Prime as published in The Wall Street Journal (the “Index”).  The Index is not necessarily the lowest rate charged by Lender on its loans.  If the Index becomes unavailable during the term of this loan, Lender may designate a substitute index after notifying Borrower.  Lender will tell Borrower the current Index rate upon Borrower’s request.  The interest rate change will not occur more often than each day.  Borrower understands that Lender may make loans based on other rates as well.  The Index currently is 3.250% per annum.  Interest on the unpaid principal balance of this loan will be calculated as described in the “INTEREST CALCULATION METHOD” paragraph using a rate of 2.000 percentage points over the Index, adjusted if necessary for any minimum and maximum rate limitations described below, resulting in an initial rate of 6.000% per annum based on a year of 360 days.  NOTICE: Under no circumstances will the interest rate on this loan be less than 6.000% per annum or more than (except for any higher default rate shown below) the lesser of 21.000% per annum or the maximum rate allowed by applicable law.

 

INTEREST CALCULATION METHOD.  Interest on this loan is computed on a 365/360 basis; that is, by applying the ratio of the interest rate over a year of 360 days, multiplied by the outstanding principal balance, multiplied by the actual number of days the principal balance is outstanding.  All interest payable under this loan is computed using this method.

 

CONTINUING VALIDITY.  Except as expressly changed by this Agreement, the terms of the original obligation or obligations, including all agreements evidenced or securing the obligation(s), remain unchanged and in full force and effect.  Consent by Lender to this Agreement does not waive Lender’s right to strict performance of the obligation(s) as changed, nor obligate Lender to make any future change in terms.  Nothing in this Agreement will constitute a satisfaction of the obligation(s).  It is the intention of Lender to retain as liable parties all makers and endorsers of the original obligation(s), including accommodation parties, unless a party is expressly released by Lender in writing.  Any maker or endorser, including accommodation makers, will not be released by virtue of this Agreement.  If any person who signed the original obligation does not sign this Agreement below, then all persons signing below acknowledge that this Agreement is given conditionally, based on the representation to Lender that the non-signing party consents to the changes and provisions of this Agreement or otherwise will not be released by it.  This waiver applies not only to any initial extension, modification or release, but also to all such subsequent actions.

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