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.

UST Seq. No. 290 and SBLF0526

  

Page 1

  

 

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]

UST Seq. No. 290 and SBLF0526

  

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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:

	
/s/

	  	
Name:

	  
	  	
Title:

	  

	  	
MUTUALFIRST FINANCIAL, INC.

	  	  	  
	  	
By:

	
/s/

	  	
Name:

	
David W. Heeter

	  	
Title:

	
President and Chief Executive Officer

UST Seq. No. 290 and SBLF0526

  

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SCHEDULE A

 

	
General Information:

	  	  
	  	  	  
	
Date of Letter Agreement incorporating the Securities Purchase Agreement:

	  	
December 23, 2008

	  	  	  
	
Name of the Company:

	  	
MutualFirst Financial, Inc.

	  	  	  
	
Corporate or other organizational form of the Company:

	  	
Corporation

	  	  	  
	
Jurisdiction of organization of the Company:

	  	
Maryland

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

	  	
32,382 shares of Fixed Rate Cumulative Perpetual Preferred Stock, Series A

	  	  	  
	
Number of Initial Warrant Shares:

	  	
625,135 shares of Common Stock

	  	  	  
	
Terms of the Repurchase:

	  	  
	  	  	  
	
Number of Preferred Shares repurchased by the Company:

	  	
32,382

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

	  	
00001

	  	  	  
	
Per share Liquidation Amount of Preferred Shares:

	  	
$1,000

	  	  	  
	
Accrued and unpaid dividends on Preferred Shares:

	  	
$44,975.00

	  	  	  
	
Aggregate purchase price for Repurchased Preferred Shares:

	  	
 

$32,426,975.00

	  	  	  
	
Investor wire information for payment of purchase price:

	
  

	  

UST Seq. No. 290 and SBLF0526

  

Page 4Exhibit 10.1

August 25, 2011

BAETA Corp.

Attn: Len Pushkantser

1 Bridge Plaza, Suite 275

Fort Lee, NJ 07024

Re: ADVISORS ENGAGEMENT

Dear Mr. Pushkantser:

This letter confirms the understanding and agreement (the “Agreement”) between BAETA Corp. (the “Company”) and Imagine Growth Strategy, Inc., a Utah Corporation (“Advisor”) to perform the services outlined in Section (1).

	
1. 

	
ENGAGEMENT. The Company hereby engages Advisor in connection with the exploration of any number of financing transactions, including, not limited to a merger or acquisition, as well as the development of new business (herein collectively referred to as a “Transaction”) that Advisor brings to the Company or the Company engages Advisor to pursue (each, a “Transaction”).

	 	
Advisor’s services will include, if appropriate or if requested by the Company, soliciting, coordinating and evaluating indications of interest and proposals regarding a Transaction.

	 	
ADVISOR WILL HAVE NO POWER OR AUTHORITY TO ACT FOR COMPANY EXCEPT AS EXPRESSLY SET FORTH HEREIN. THE COMPANY ACKNOWLEDGES AND UNDERSTANDS THAT ADVISOR IS NOT IN THE BUSINESS OF BUYING AND SELLING SECURITIES AND IS NOT A BROKER OR DEALER AS THOSE TERMS ARE DEFINED IN THE U.S. SECURITIES AND EXCHANGE ACT OF 1934. ACCORDINGLY, THE COMPANY WAIVES ANY CLAIM THAT ADVISOR IS A BROKER OR DEALER AND ALL RIGHTS TO RECESSION.

	
2. 

	
TERM: The term of this Agreement shall be ninety (90) days, commencing on the effective date hereof (defined below), and shall continue for successive Thirty (30) day periods thereafter unless canceled by either party by written notice to the other of at least 15 days prior to the beginning of any renewal period (the "Term").  The expiration of the Term of this Agreement shall not affect (a) Company's obligation to pay any and all fees and/or expenses pursuant to Section 4, or any other amounts payable to Advisor under this Agreement; (b) the Confidentiality provisions of Section 10, below; or (c) Company's indemnification obligations as provided in Section 7, below.

 

	
Engagement Letter

	
Page 1

  

  

  

	
3. 

	
TERMINATION: At any time during the Term, a party shall have the right to terminate this Agreement within (i) thirty (30) days after the other party’s receipt of notice that such party is in material breach of any of the terms or conditions set forth in Agreement, unless such party cures such breach within said thirty (30) day period or the non-breaching party withdraws its notice of termination, (ii) immediately upon notice by a party if the other party (a) is adjudged insolvent or bankrupt, (b) institutes or has instituted against it any proceeding seeking relief, reorganization or arrangement under any laws relating to insolvency (and, in the case of any such proceeding instituted against it, the proceeding is not dismissed within sixty (60) days after filing), (c) makes any assignment for the benefit of creditors, (d) appoints a receiver, liquidator or trustee of any of its property or assets, or (e) liquidates, dissolves or winds up its business, or (iii) immediately upon Advisor’s notice to Company of Advisor’s reasonable determination that Company is using a Service in such a manner that could damage or cause injury to the Service or reflect unfavorably on the reputation of Advisor. In the event of any termination, Company shall promptly pay all amounts due and owing to Advisor pursuant to Agreement.

	
4.

	
FEES AND EXPENSES:

	 	
4.1. Engagement Fee; Upon execution of this Agreement, the Company shall pay to Advisor an initial engagement fee equal to thirty-thousand (30,000) shares of the company's restricted common stock, with piggyback registration rights.

	 	
4.2. Sales Commission; Upon the consummation of a Transaction, the Company shall pay to Advisor a fee (“Sales Commission”) equal to five percent [5%] of the gross value of any new business (including, but not limited to revenues generated, value of a contract, or other value received as a result of Advisor’s activities). The Sales Commission will be paid in cash, no less than fifteen (15) days receipt by the Company from the Customer, less any discounts or returns.

	 	
During the period of thirty six (36) months following the termination of this Agreement for any reason, if the Company consummates, or enters into an agreement in principle to engage in (and which subsequently closes), a Transaction, Advisor shall be entitled to receive its Sales Commission upon the consummation of such Transaction as if no such termination had occurred.

	
Engagement Letter

	
Page 2

  

  

  

	
5.

	
INFORMATION, TRANSPARENCY AND DISCLOSURE:  The Company will furnish Advisor with such information regarding the business and financial condition of the Company as is reasonably requested, all of which will be, to the Company’s best knowledge, accurate and complete in all material respects at the time furnished. The Company further represents and warrants that any projections have been prepared in good faith based upon assumptions which, in the light of the circumstances under which they are made, are reasonable. The Company will promptly notify Advisor if it learns of any material misstatement in, or material omission from, any information previously delivered to Advisor. Advisor may rely, without independent verification, on the accuracy and completeness of all information furnished by the Company or any other potential party to any Transaction. The Company understands that Advisor will not be responsible for independently verifying the accuracy of such information, and shall not be liable for any inaccuracies therein. Except as may be required by law or court process, any opinions or advice (whether written or oral) rendered by Advisor pursuant to this Agreement are intended solely for the benefit and use of the Company, and may not be publicly disclosed in any manner or made available to third parties (other than the Company’s management, directors, advisers, accountants and attorneys) without the prior written consent of Advisor, which consent shall not be unreasonably withheld.

	
6.

	
INFORMATION, COMPANY DELIVERY AND REPRESENTATION:  The Company will furnish Advisor with such information regarding the business and financial condition of the Company as is necessarily requested by Advisor in order to complete and deliver to the Company the services contemplated under this agreement.  In the event the Company does not deliver such information regarding the business and financial condition of the Company, and any parties related thereto in connection with this agreement, Advisor will have the right to immediately terminate this Agreement, and shall retain any and all payments made by the Company to Advisor for services performed, or to be performed.  Furthermore, in the case of termination by Advisor due to the Company’s failure or inability to deliver information regarding the business and financial condition of the Company as is necessarily requested by Advisor in order to complete and deliver to the Company the services contemplated under this agreement, Advisor retains the right to collect on all past due payments, uncollected payments, and accrued interest, as well as the right to file a complaint to recover such payments and other sums owed by the Company to Advisor per section 3.

	
7.

	
INDEMNIFICATION, STANDARD OF CARE: The Company agrees to indemnify and hold harmless Advisor and its affiliates, and their respective past, present and future directors, officers, shareholders, employees, and agents (the "Indemnified Parties") to the fullest lawful extent from and against any and all losses, claims, damages or liabilities (or actions in respect thereof), arising out of or related to this Agreement, any actions taken or omitted to be taken (including acts or omissions constituting ordinary negligence) in connection with the Agreement, or any transaction or proposed transaction contemplated by the Agreement; provided, however, Company shall not be liable under the foregoing indemnity and reimbursement agreement for any loss, claim, damage or liability which is finally judicially determined to have resulted primarily from the willful misconduct or gross negligence of any Indemnified Party.

	
Engagement Letter

	
Page 3

  

  

  

	
8.

	
OTHER SERVICES: To the extent Advisor is requested by the Company to perform any business or financial advisory services which are not within the scope of this assignment, the fees for such services shall be mutually agreed upon by Advisor and the Company in writing, in advance, depending on the level and type of services required, and shall be in addition to the fees and expenses described herein above. Except as set forth in the preceding sentence, if Advisor is called upon to render services directly or indirectly relating to the subject matter of this Agreement (including, but not limited to, producing documents, answering interrogatories, giving depositions, giving expert or other testimony, and whether by subpoena, court process or order, or otherwise), the Company shall pay Advisor’s then current hourly rates for the persons involved for the time expended in rendering such services, including, but not limited to, time for meetings, conferences, preparation and travel, and all related reasonable out-of-pocket costs and expenses, and the reasonable legal fees and expenses of Advisor’s legal counsel incurred in connection therewith.

	
9.

	
NON-CIRCUMVENTION: The parties each hereby irrevocably agrees not to circumvent, avoid or bypass, directly or indirectly, the provisions of this Agreement in order to avoid payments, or otherwise benefit, either financially or otherwise, from information supplied, or persons introduced, by the other party within thirty six (36) months upon termination of this Agreement.

	
10.

	
CONFIDENTIALITY: As used in this Agreement, the term "confidential information" means any information which the disclosing party keeps secret from its business competitors and the public. Each party agrees that the confidential information disclosed by the other party and all rights pertaining thereto will remain the property of such party and, except as may be agreed in writing by the parties, the receiving party shall hold the confidential information in trust and confidence, shall not disclose or use the confidential information for any purpose other than the benefit of the disclosing party, and shall use at least the same level of care as it uses to protect its own confidential information of a similar nature, but no less than a reasonable degree of care.

	
11.

	
ATTORNEY’S FEES: If any party to this Agreement brings an action directly or indirectly based upon this Agreement or the matters contemplated hereby against another party, the prevailing party shall be entitled to recover, in addition to any other appropriate amounts, its reasonable costs and expenses in connection with such preceding including, but not limited to, reasonable attorneys’ fees and court costs.

	
12.

	
EFFECTIVE DATE: The effective date of this Agreement shall be the date on which this Agreement is accepted and approved by the Company, as indicated in its acceptance below.

	
13.

	
DELAYS: Imagine Growth Strategy, Inc.’ failure to perform services hereunder shall be excused without liability if and to the extent caused, directly or indirectly, by (i) fire, flood, elements of nature or other acts of God, (ii) any outbreak or escalation of hostilities, war, riots or civil disorders in any country, (iii) any act or omission by the Company or any governmental authority, (iv) any labor disputes (whether or not the employees’ demands are reasonable or within the Company’s power to satisfy), or (v) nonperformance by a third party or any similar cause beyond the reasonable control of Advisor, including without limitation, failures or fluctuations in telecommunications, computer or other equipment. Imagine Growth Strategy, Inc. agrees to use commercially reasonable efforts to resume performance of services as soon as practicable following the cessation of such condition.

 

	
Engagement Letter

	
Page 4

 

  

  

  

	
14.

	
INDEPENDENT CONTRACTOR STATUS/SUB-CONTRACTORS: Each party shall be and act hereunder as an independent contractor and not as partner, joint venture or agent of the other. Company shall remain fully liable for the acts or omissions of any sub-contractor, consultant, third-party service provider and/or agent engaged by Company in connection with Company’s use of the Services. Advisor has the right to use sub-contractors for performance of the Services, provided that each sub-contractor is bound to terms and conditions that are consistent with the requirements of this Agreement and the applicable Attachment with respect to the work the sub-contractor performs. Advisor is responsible for ensuring that the performance of its sub-contractors meets the requirements of this Agreement and applicable Attachments. Advisor shall have sole control of the manner and means of performing its work, and Company is interested only in the results Advisor obtains.

	
15.

	
MODIFICATIONS AND WAIVERS: Each Attachment, which includes the terms and conditions of this Agreement by reference, represents the entire understanding between Advisor and Company and, excluding any Pre-Existing Agreements, supersedes all prior agreements relating to the subject matter of such Attachment. No failure or delay on the part of either party in exercising any right, power or remedy under this Agreement or an Attachment shall operate as a waiver, nor shall any single or partial exercise of any such right, power or remedy preclude any other or further exercise of any other right, power or remedy. Unless otherwise specified, any amendment, supplement or modification of or to any provision of this Agreement or an Attachment, any waiver of any provision of this Agreement or an Attachment and any consent to any departure by the parties from the terms of this Agreement or an Attachment, shall be effective only if it is made or given in writing and signed by both parties.

	
16.

	
ASSIGNMENT: This Agreement, all Attachments, and all rights granted hereunder and thereunder are not transferable or assignable without the prior written consent of the non-assigning party; provided, however, that this Agreement together with all Attachments may be assigned by either party without the other party’s written consent, and individual Attachments (which incorporate the terms of this Agreement by reference) may be assigned by Advisor without Company’s consent, (a) to a person or entity who acquires, by sale, merger or otherwise, all or substantially all of such party’s assets, stock or business, (b) to a person or entity who acquires, by sale, merger or otherwise, all or substantially all of the assets or business of the Advisor business unit that provides the services pursuant to an individual Attachment and (c) to an affiliate of the assigning party. In the case of an assignment of an individual Attachment by Advisor (which assignment shall include the terms and conditions of this Agreement by reference), this Agreement and all other Attachments (each which incorporate the terms of this Agreement by reference) in effect at the time of such assignment shall remain in full force and effect.  Subject to the foregoing, this Agreement shall bind and inure to the benefit of the parties, their respective successors and permitted assigns.

	
Engagement Letter

	
Page 5

 

  

  

  

	
17.

	
APPLICABLE LAW AND CONFLICTS: This Agreement and each Attachment shall be governed by the laws of the state of Utah, without reference to its conflict of laws rules or principles. The jurisdiction and venue for all disputes hereunder shall be the state and federal courts in the state of Utah.  In the event of a conflict between the terms and conditions of the Agreement and the terms and conditions of any Attachment, the terms and conditions of this Attachment shall govern.

	
18.

	
PUBLICITY: The parties will work together in a good faith, positive and accurate manner to issue publicity and general marketing communications concerning their relationship, Company’s use of Advisor’ Services, and other mutually agreed-upon matters.  Neither party will issue any publicity or general marketing communications concerning this relationship without the prior written consent of the other party; provided, however, that Advisor shall have the right to use Company’s name and logos in general marketing materials related to the Services.

	
19.

	
HIRING EMPLOYEES:  The Company agrees that during the term of this Agreement and for 365 days immediately following the termination of this Agreement, it shall not, directly or indirectly, solicit or induce employees of Imagine Growth Strategy, Inc. to terminate their employment with Imagine Growth Strategy, Inc..

	
20.

	
MISCELLANEOUS: This Agreement shall be binding upon the parties hereto and their respective successors and permitted assigns. Nothing in this Agreement, express or implied, however, is intended to confer or does confer on any person or entity, other than the parties hereto and their respective successors and permitted assigns, and the Indemnified Parties, any rights or remedies under or by reason of this Agreement or as a result of the services to be rendered by Advisor hereunder.

The invalidity or unenforceability of any provision of this Agreement shall not affect the validity or enforceability of any other provision of this Agreement, which shall remain in full force and effect pursuant to the terms hereof.

The Company agrees that it will be solely responsible for ensuring that any transactions it undertakes complies with applicable law.

This Agreement incorporates the entire understanding of the parties regarding the subject matter hereof, and supersedes all previous agreements or understandings regarding the same, whether written or oral.

This Agreement may not be amended, and no portion hereof may be waived, except in a writing duly executed by the parties.

	
Engagement Letter

	
Page 6

  

  

  

We look forward to working with you. Please confirm that the foregoing terms are in accordance with your understanding by signing and returning the enclosed copy of this Agreement along with the Advisor’s Fee Agreement.

Sincerely,

 

Ryan D. Hoggan

Managing Partner, Salt Lake City

 

The undersigned confirm their mutual agreement to the arrangements in this Agreement as of the Effective Date.

	
BAETA Corp.

	 
	  
	
Print Name:

	
Title:

	
Date:

Any invoice for payment should be directed to the Company representative at the address shown below (Company to provide).

AP address if different from above:

Contact Name:

Street:

City, State Zip:

Telephone:

E-Mail:

Fax:

	
Engagement Letter

	
Page 7

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