Document:

Nanophase Technologies Corporation 8-K

 

Exhibit
10.1

 

EMPLOYMENT
AGREEMENT

Employment
Agreement dated and effective as of March 26, 2018 (this “Agreement”), between NANOPHASE TECHNOLOGIES CORPORATION,
a Delaware corporation (with its successors and assigns, referred to as the “Company”), and Jaime Escobar (referred
to as Chief Financial Officer or CFO).

Preliminary
Statement

The
Company desires to employ CFO, and CFO wishes to be employed by the Company, upon the terms and subject to the conditions set
forth in this Agreement. The Company and CFO also wish to enter into the other covenants set forth in this Agreement, all of which
are related to CFO’s employment with the Company. In consideration of the mutual promises and covenants stated below, CFO
and the Company therefore agree as follows:

Agreement

1.       

Employment
for Term. The Company employs CFO, and CFO hereby accepts employment with the Company, beginning on March 26, 2018, and renewing
automatically on an annual basis until terminated pursuant to Section 7 below (the “Term”).

2.       

Position
and Duties. During the Term, CFO shall serve as Chief Financial Officer and shall report to the President and Chief Executive
Officer of the Company. During the Term, CFO shall also hold such additional positions and titles as the Chief Executive Officer
of the Company may determine from time to time. During the Term, CFO shall devote his best efforts and substantially all of his
business time to his duties as a CFO of the Company.

3.       

Signing
Benefits. In consideration of and in reliance upon CFO’s execution of this Agreement, and based entirely upon CFO’s
acceptance of the duties and obligations to the Company under this Agreement (specifically including, without limitation, CFO’s
obligations under the covenants in Section 9, and the restrictions in Section 10 of the Agreement), the Company shall provide
CFO with the following signing benefits:

(a)       

the
following Severance Benefits if the Company ends the Term for reasons other than “Cause” (as defined in Section 8(a))
and CFO signs, without subsequent revocation, a Separation Agreement and Release in a form acceptable to the Company: (i) the
Company shall pay CFO a sum equal in annual amount to CFO’s base salary in effect at the time of termination during the
period (the “Severance Period”) of 26 full weeks after the effective date of termination (provided that termination
without Cause occurs on or before September 30, 2020); if termination without Cause occurs thereafter, the Company shall pay CFO
13 full weeks of severance benefits, payable in proportionate amounts on the Company’s regular pay cycle for professional
employees and (if the last day of the Severance Period is not the last day of a pay period) on the last day of the Severance Period,
and (ii) all stock options granted to CFO prior to termination shall become fully vested, and shall become exercisable (by CFO,
or upon his death or disability, by his heirs, beneficiaries and personal representatives) in accordance with the applicable option
grant agreement and the Company’s 2010 Equity Compensation Plan, as amended (the “Plan”).

    	 	 	 

    	 

    

 

4.       

Compensation.

(a)       

Base
Salary. The Company shall pay CFO a base salary, beginning on the first day of the Term and ending on the last day of the
Term, of not less than $150,000 per annum, payable on the Company’s regular pay cycle for professional employees;

(b)       

Bonus
Payment. CFO will be eligible for discretionary bonuses for services to be performed as a CFO of the Company based on performance
milestones agreed upon by CFO and the Vice-President of Operation, the CEO of the Company and approved by the Board.

(c)       

Stock
Options. In connection with the execution of this Agreement, the Company will recommend its Board of Directors grant to CFO
36,000 options of the Company’s common stock immediately upon start date, vesting over three years, one-third per year from
grant date. All option grants are subject to the provisions of the Company’s 2010 Equity Compensation Plan and to the approval
of the Board of Directors. Subject to the provisions of the Company’s Plan; and as determined by the Board in its sole discretion,
CFO shall be eligible for such additional stock options and other equity compensation as the Board deems appropriate.

(d)       

Other
and Additional Compensation. Section 4(a) establishes the minimum salary level for CFO during the Term, and shall not preclude
the Board from awarding CFO a higher salary at any time, nor shall they preclude the Board from awarding CFO additional bonuses
or other compensation in the discretion of the Board.

5.       

Employee
Benefits. During the Term, CFO shall be entitled to the employee benefits made available by the Company generally to all other
employees of the Company, subject to all the terms and conditions of the Company’s employee benefit plans in effect from
time to time. CFO shall be entitled to four (4) weeks of paid vacation during each year of the Term, subject to the Company’s
vacation policy in effect from time to time.

6.       

Expenses.
The Company shall reimburse CFO for actual out-of-pocket expenses reasonably incurred by CFO in performing services as an employee
of the Company in accord with the Company’s policy for such reimbursements applicable to employees generally, and upon receipt
by the Company of appropriate documentation and receipts for such expenses.

7.       

Termination.

(a)       

General.
The Term shall end (i) immediately upon CFO’s death, or (ii) upon CFO becoming disabled (within the meaning of the Americans
With Disabilities Act of 1991, as amended) and unable to perform fully all essential functions of his job, with or without reasonable
accommodation, for a period of 150 calendar days. Either CFO or the Company may end the Term at any time for any reason or no
reason, with or without Cause, in the absolute discretion of CFO or the Board (but subject to each party’s obligations under
this Agreement), provided that CFO will provide the Company with at least two (2) weeks’ prior written notice of CFO’s
resignation from his position as an CFO with the Company. Upon receipt of such written notice, the Company, in its sole discretion,
may accelerate the effective date of the resignation to such date as the Company deems appropriate, provided that CFO shall receive
the compensation required under Section 4(a) of this Agreement for a full two (2) week period.

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(b)       

Notice
of Termination. If the Company ends the Term, it shall give CFO at least two (2) weeks prior written notice of the termination,
including a statement of whether the termination was for “Cause” (as defined in Section 8(a) below). Upon delivery
of such written notice, the Company, in its sole discretion, may accelerate the effective date of such termination to such date
as the Company deems appropriate, provided that CFO shall receive the compensation required under Section 4(a) of this Agreement
for a full two (2) week period. The Company’s failure to give notice under this Section 7(b) shall not, however, affect
the validity of the Company’s termination of the Term or CFO’s employment, nor shall the lack of such notice entitle
CFO to any rights or claims against the Company other than those arising from CFO’s right to receive the compensation required
under Section 4(a) of this Agreement for a full two (2) week period.

8.       

Severance
Benefits.

(a)       

“Cause”
Defined. “Cause” means (i) willful or gross malfeasance or misconduct by CFO in connection with CFO’s employment;
(ii) CFO’ negligence in performing any of CFO’s duties under this Agreement; (iii) CFO’s conviction of, or entry
of a plea of guilty or nolo contendere with respect to, any felony or misdemeanor reflecting upon CFO’s honesty; (iv) CFO’s
breach of any written policy applicable to all employees adopted by the Company concerning conflicts of interest, political contributions,
standards of business conduct or fair employment practices, procedures with respect to compliance with securities laws or any
similar matters, or adopted pursuant to the requirements of any government contract or regulation; or (v) breach by CFO of any
of the material terms and conditions of this Agreement.

(b)       

Termination
without Cause.  If the Company ends the Term other than for Cause, CFO shall receive the Severance Benefits provided under
Section 3 (c) of this Agreement, provided that CFO signs, without subsequent revocation, a Separation Agreement and Release in
a form acceptable to the Company.

(c)       

Termination
for Any Other Reason. If the Company ends the Term for Cause, or if CFO resigns as an employee of the Company, then the Company
shall have no obligation to pay CFO any amount, whether for salary, benefits, bonuses, or other compensation or expense reimbursements
of any kind, accruing after the end of the Term, and such rights shall, except as otherwise required by law (or, with respect
to the Options, as set forth in the Plan or the applicable option grant agreements), be forfeited immediately upon the end of
the Term.

9.       

Additional
Covenants.

(a)       

Confidentiality.
CFO confirms his acceptance of all his obligations under that certain Confidential Information and Proprietary Rights Agreement
between CFO and the Company dated as of March 26, 2018.

(b)       

“Non-Competition
Period” Defined. “Non-Competition Period” means the period beginning at the end of the Term and ending twelve
(12) months thereafter.

(c)       

Covenants
of Non-Competition and Non-Solicitation.

(i)       

CFO
acknowledges that: [a] the Company will rely upon CFO to help maintain and grow the Company’s business and related functions;
[b] CFO will have business relationships on the Company’s behalf with the Company’s significant customers, suppliers
and vendors with whom the Company has exclusive, long-term or near-permanent relationships; and [c] CFO will have access to, use
or control of highly valuable non-public tangible confidential information about the Company’s developed and developing
technology, inventions, equipment, methods and know-how concerning nanomaterials production, coating and marketing, as well as
highly valuable non-public tangible and non-tangible proprietary information about the Company’s finances, pending transactions,
customer identity and Customer dealings.

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(ii)       

For
the foregoing reasons, and in consideration of the benefits available to CFO under Sections 3(a), 3(b), 3(c), 7(a), 7(b), and
8(b) of this Agreement, CFO covenants that both during the term of this Agreement and the subsequent Non-Competition Period, CFO
shall not in any manner, directly or indirectly:

[A]
Engage in, be financially interested in, represent, render advice or service of any kind to, or be employed by or in any way affiliated
with, any other business (conducted for profit or not for profit) which is materially engaged in developing, producing, coating,
refining, marketing, supplying or selling nanocrystalline materials (including powders, dispersions and coatings) (a “Prohibited
Business”), (a) where such Prohibited Business is located or conducted within a radius of fifty (50) miles from any of the
Company’s facilities where CFO has worked or over which CFO has exercised any form of supervisory authority during a period
of twelve (12) months before the date of CFO’s termination; or (b) where CFO provides a Prohibited Business with services
the same as or similar to those he provided to the Company and such Prohibited Business, regardless of its location, is either
Cabot Corporation; Cabot Microelectronics Corporation; DeGussa Corporation; NanoDynamics, Inc; NanoProducts Corporation; or Nanotechnologies,
Inc.; NanoMaterials Technology Pte, LTD; Nanogate, SDC Materials; Primet Precision Materials, Inc.; ItN Nanovation; Nanux, Inc.;
PPG Industries; Nanomaterials Company.

[B]
Whether on CFO’s own behalf or on behalf of any other person or entity, (a) contact, solicit, accept business from, disrupt
or in any way interfere with the Company’s business relationship with any person or entity that was a customer, supplier
or vendor of the Company during CFO’s employment, with respect to the type of business done by the Company, or (b) contact,
solicit or attempt to solicit for employment or engagement any persons who were officers, employees or contractors of the Company
at any time within a 180-day period before the date of CFO’s termination.

(iii)
The restrictions in this Section 9(c)(ii) shall not preclude CFO from owning up to three percent (3%) of the voting securities
of any Prohibited Business whose voting securities are registered under Section 12(g) of the Securities Exchange Act of 1934.

(d)       

Remedies.

(i)       

Injunctions.
In view of CFO’s access to the Company’s confidential information, and in consideration of the value of such property
to the Company, CFO agrees that the covenants in this Section 9 are necessary to protect the Company’s interests in its
proprietary information and trade secrets, and to protect and maintain customer and supplier relationships, both actual and potential,
which CFO would not have had access to or involvement in but for his employment with the Company. CFO confirms that enforcement
of the covenants in this Section 9 will not prevent him from earning a livelihood. CFO further agrees that in the event of his
actual or threatened breach of any covenant in this Section 9, the Company would be irreparably harmed and the full extent of
injury resulting therefrom would be impossible to calculate, and the Company therefore will not have an adequate remedy at law.
Accordingly, CFO agrees that temporary and permanent injunctive relief are appropriate remedies against such breach, without bond
or security; provided, however, that nothing herein shall be construed as limiting any other legal or equitable remedies available
to the Company.

    	 	 	4

     

    

 

(ii)       

Enforcement.
CFO shall pay all costs and expenses (including, without limitation, court costs, investigation costs, expert witness and attorneys’
fees) incurred by the Company in connection with its successfully enforcing its rights under this Agreement. The Company shall
have the right to disclose the contents of this Agreement or to deliver a copy of it to any person or entity whom the Company
believes the CFO has solicited in violation of this Agreement.

(iii)       

Arbitration.
No dispute arising from CFO’s actual or threatened breach of any covenant in this Section 9 shall be subject to arbitration.
However, any other dispute or claim arising from any other provision of this Agreement, or relating to CFO’s employment
(whether based on statute, ordinance, regulation, contract, tort or otherwise), shall be submitted to arbitration before a single
arbitrator pursuant to the Employment Arbitration Rules of the American Arbitration Association. Any such arbitration shall be
conducted in Chicago, Illinois. An arbitration award rendered under this Section 9(d)(iii) shall be final and binding on the parties
and may be submitted to any court of competent jurisdiction for entry of a judgment thereon in accord with the Federal Arbitration
Act or the Illinois Arbitration Act.

10.

Limitation On Claims. CFO AGREES THAT HE WILL NOT COMMENCE ANY ACTION OR SUIT RELATING TO MATTERS ARISING OUT OF HIS EMPLOYMENT
WITH THE COMPANY (IRRESPECTIVE OF WHETHER SUCH ACTION OR SUIT ARISIES OUT OF THE PROVISIONS OF THIS AGREEMENT) LATER THAN SIX
MONTHS AFTER THE FIRST TO OCCUR OF (A) THE DATE SUCH CLAIM INITIALLY ARISIES, OR (B) THE DATE CFO’S EMPLOYMENT TERMINATES
FOR ANY REASON WHATSOEVER. CFO EXPRESSLY WAIVES ANY APPLICABLE STATUTE OF LIMITATIONS TO THE CONTRARY.

11.       

Successors
and Assigns.

(a)       

Vice-President.
This Agreement is a personal contract, and the rights and interests that this Agreement accords to CFO may not be sold, transferred,
assigned, pledged, encumbered, or hypothecated by CFO. Except to the extent contemplated in Section 3(c)(ii) above, CFO shall
not have any power of anticipation, alienation or assignment of the payments contemplated by this Agreement, all rights and benefits
of CFO shall be for the sole personal benefit of CFO, and no other person shall acquire any right, title or interest under this
Agreement by reason of any sale, assignment, transfer, claim or judgment or bankruptcy proceedings against CFO. Except as so provided,
this Agreement shall inure to the benefit of and be binding upon CFO and CFO’s personal representatives, distributees and
legatees.

(b)       

The
Company. This Agreement shall be binding upon the Company and inure to the benefit of the Company and its successors and assigns,
including but not limited to any person or entity that may acquire all or substantially all of the Company’s assets or business
or with which the Company may be consolidated or merged. This Agreement shall continue in full force and effect in the event the
Company sells all or substantially all of its assets, merges or consolidates, otherwise combines or affiliates with another business,
dissolves and liquidates, or otherwise sells or disposes of substantially all of its assets. The Company’s obligations under
this Agreement shall cease, however, if the successor to the Company, the purchaser or acquirer either of the Company or of all
or substantially all of its assets, or the entity with which the Company has affiliated, shall assume in writing the Company’s
obligations under this Agreement (and deliver an executed copy of such assumption to CFO), in which case such successor or purchaser,
but not the Company, shall thereafter be the only party obligated to perform the obligations that remain to be performed on the
part of the Company under this Agreement.

12.       

Entire
Agreement. This Agreement and the other agreements referenced herein represent the entire agreement between the parties concerning
CFO’s employment with the Company and supersede all prior negotiations, discussions, understandings and agreements, whether
written or oral, between CFO and the Company relating to the subject matter of this Agreement.

    	 	 	5

     

    

 

13.       

Amendment
or Modification, Waiver. No provision of this Agreement may be amended or waived unless such amendment or waiver is agreed
to in writing signed by CFO and by a duly authorized officer of the Company other than CFO. No waiver by any party to this Agreement
of any breach by another party of any condition or provision of this Agreement to be performed by such other party shall be deemed
a waiver of a similar or dissimilar condition or provision at the same time, any prior time or any subsequent time.

14.       

Notices.
Any notice provided for in this Agreement must be in writing and must be either personally delivered, mailed by first class mail
(postage prepaid and return receipt requested), sent by reputable overnight courier service (charges prepaid), or by facsimile
to the recipient at the address below indicated:

To
the Company:

Nanophase Technologies Corporation

1319
Marquette Drive

Romeoville,
IL 60446

Attn:
Chief Executive Officer

Facsimile:
(630) 771-0825

 

To
CFO: 

Mr. Jaime Escobar

715
Grove Drive, Unit 208

Buffalo
Grove, Illinois 60089

 

Or
such other address or facsimile number, or to the attention of such other person as the recipient shall have specified by prior
written notice to the sending party. Any notice under this Agreement shall be deemed to have been given when so personally delivered,
or one day after deposit, if sent by courier, when confirmed received if sent by facsimile, or if mailed, five days after deposit
in the U.S. first-class mail, postage prepaid.

15.       

Severability.
If any provision of this Agreement shall be determined by any court of competent jurisdiction to be unenforceable to any extent,
the remainder of this Agreement shall not be affected, but shall remain in full force and effect. If any provision of this Agreement
containing restrictions is held to cover an area or to be for a length of time that is unreasonable or in any other way is construed
to be invalid, such provision shall not be determined to be entirely of no effect; instead, it is the intention and desire of
both the Company and CFO that any court of competent jurisdiction shall interpret or reform this Agreement to provide for a restriction
having the maximum enforceable area, time period and such other constraints or conditions as shall be enforceable under the applicable
law.

16.       

Survivorship.
The respective rights and obligations of the parties hereunder shall survive any termination of this Agreement to the extent necessary
to the intended preservation of such rights and obligations.

17.       

Headings.
All descriptive headings of sections and paragraphs in this Agreement are intended solely for convenience of reference, and no
provision of this Agreement is to be construed by reference to the heading of any section or paragraph.

18.       

Withholding
Taxes. All salary, benefits, reimbursements and any other payments to CFO under this Agreement shall be subject to all applicable
payroll and withholding taxes and deductions required by any law, rule or regulation of any federal, state or local authority.

    	 	 	6

     

    

19.       

Applicable
Law: Jurisdiction. The laws of the State of Illinois shall govern the interpretation of the terms of this Agreement, without
reference to rules relating to conflicts of law.

IN
WITNESS WHEREOF, the parties hereto have executed this Employment Agreement as of the date first written above.

	 	NANOPHASE
TECHNOLOGIES CORPORATION
	 	 
	 	 
	 	By:	/S/JESS JANKOWSKI	 
	 	Its:	Chief Executive Officer	 
	 	 	 	 
	 	 	 	 
	 	 	/S/JAIME
ESCOBAR	 
	 	 	Jaime
Escobar	 
	 	 

 

    	 	 	7Exhibit 10.1

 

STANDSTILL AGREEMENT

 

This
Standstill Agreement (this "Agreement") is made by and between MutualFirst Financial, Inc. ("MutualFirst")
on the one hand, and Ancora Advisors, LLC, the Ancora Trust, the Ancora Income Fund, Ancora Equity Fund, Ancora Special Opportunity
Fund, Ancora/Thelen Small-Mid Cap Fund, Ancora MicroCap Fund, Merline Partners, AAMAF LP, Birchwald Partners LP, Ancora Catalyst
Fund LP, Pondfield LP, Ancora Greater China Fund LP, Ancora Family of Mutual Funds, Employees of Ancora Advisors LLC and Owners
of Ancora Advisors LLC, Frederick DiSanto  and James Bernard (collectively, the "Ancora Parties"), on the other
hand, on behalf of themselves and their respective affiliates (MutualFirst and the Ancora Parties together, collectively, the
"Parties").  In consideration of the covenants, promises and undertakings set forth herein, and other good
and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties hereby agree as follows:

 

1.       Board
Membership

 

The
Board of Directors of MutualFirst, has nominated James M. Bernard to serve in the class of directors with a term expiring at the
conclusion of MutualFirst's 2020 annual meeting of stockholders. At all times from and after the date of this Agreement, subject
to Section 4 hereof, MutualFirst's Board of Directors will also appoint, at its sole discretion, all other persons to fill remaining
director positions or vacancies on the MutualFirst Board of Directors.  Mr. Bernard shall receive the normal compensation
and benefits paid to directors of MutualFirst while he serves as a director thereof.

 

The
Board of Directors of MutuaFirst will cause the Board of Directors of MutualBank (the "Bank”) to appoint Mr. Bernard
to the Bank's Board of Directors for a term to expire at the annual meeting of the Bank's sole shareholder to be held in 2020,
as required by Article III, Section 11 of the Bank's Bylaws.  Mr. Bernard shall receive the normal compensation and benefits
paid to directors of the Bank while he serves as a director thereof.

 

Mr.
Bernard or the Substitute Nominee (as defined in Section 4 hereof), as the case may be, agrees to promptly submit his resignation
as a member of the Board of Directors of each of MutualFirst and the Bank upon the expiration of his term.

  

2.       Standstill

  

The
Ancora Parties each agree that during the Standstill Period (as hereinafter defined), the Ancora Parties and their affiliates or
associates (as defined in Rule 12b-2 promulgated pursuant to the Securities Exchange Act of 1934, as amended (the "Exchange
Act")) will not (and they will not assist or encourage others to), directly or indirectly, in any manner, without prior written
approval of the Board of Directors of MutualFirst:

  

(i)            acquire,
offer or propose to acquire, solicit an offer to sell or agree to acquire directly or indirectly, alone or in concert with others,
by purchase, gift, tender, exchange or otherwise, any direct or indirect beneficial ownership (within the meaning of Rule 13d-3
under the Exchange Act) or any direct or indirect interest in any securities or direct or indirect rights, warrants or options
to acquire, or securities convertible into or exchangeable for (collectively, an "Acquisition"), any securities of MutualFirst,
such that as a result of such of such Acquisition, the Ancora Parties would maintain beneficial ownership in excess of 9.99% of
the outstanding shares of MutualFirst common stock;

  

     

     

    

 

(ii)            make,
engage in, or in any way participate in, directly or indirectly, alone or in concert with others, any "solicitation"
of "proxies" or consents to vote (as such terms are used in the proxy rules of the Securities and Exchange Commission
promulgated pursuant to Section 14 of the Exchange Act) or seek to advise, encourage or influence in any manner whatsoever any
person with respect to the voting of any voting securities of MutualFirst;

  

(iii)            form,
join, encourage, influence, advise or in any way participate in a "group" within the meaning of Section 13(d)(3) of the
Exchange Act (other than a group involving solely the Ancora Parties) with respect to any voting securities of MutualFirst or otherwise
in any manner agree, attempt, seek or propose to deposit any securities of MutualFirst in any voting trust or similar arrangement,
or subject any securities of MutualFirst to any arrangement or agreement with respect to the voting thereof (other than any such
voting trust, arrangement or agreement solely among the Ancora Parties) except as expressly set forth in this Agreement (for the
benefit of clarification and the avoidance of doubt, this provision shall not prohibit changes in the membership of the group involving
the Ancora Parties as long as any additional member(s) agrees to be bound by the terms of this Agreement);

  

(iv)            acquire,
offer or propose to acquire or agree to acquire, directly or indirectly, alone or in concert with others, by purchase, tender,
exchange or otherwise, (a) any of the assets, tangible and intangible, direct or indirect, of MutualFirst or (b) direct or indirect
rights, warrants or options to acquire any assets of MutualFirst;

  

(v)            arrange,
or in any way participate, directly or indirectly, in any financing (except for margin loan financing for shares beneficially owned)
for the purchase of any securities or securities convertible or exchangeable into or exercisable for any securities or assets of
MutualFirst;

  

(vi)            otherwise
act, alone or in concert with others, propose or seek to offer to MutualFirst or any of its stockholders any business combination,
restructuring, recapitalization or similar transaction to or with MutualFirst or the Bank or otherwise seek, alone or in concert
with others, to control or change the management, Board of Directors or policies of MutualFirst or the Bank, propose or seek any
amendment, waiver or modification of the articles of incorporation or bylaws of MutualFirst, nominate any person as a director
of MutualFirst who is not nominated by the then incumbent directors (provided that if there is a vacancy on the MutualFirst Board
of Directors the Ancora Parties may submit suggestions on a confidential basis to the MutualFirst Board of Directors or the Nominating
Committee of the MutualFirst Board of Directors for nominees to the Board of Directors pursuant to the nomination policy adopted
by the Board of Directors), or propose any matter to be voted upon by the stockholders of MutualFirst;

  

     

     

    

 

(vii)            directly
or indirectly, sell, transfer or otherwise dispose of any interest in the shares of MutualFirst common stock beneficially owned
by the Ancora Parties to any person that would reasonably be understood to be the beneficial owner of 5% or more of the outstanding
shares of MutualFirst common stock, except in a transaction approved by the MutualFirst Board of Directors;

  

(viii)            except
in connection with the enforcement of this Agreement, initiate or participate, by encouragement or otherwise, in any litigation
against MutualFirst or the Bank or their respective directors or officers, or in any derivative litigation on behalf of MutualFirst,
except for testimony which may be required by law; or

  

(ix)            announce
an intention to do, or enter into any arrangement or understanding with others to do, or advise, assist or encourage others to
do, any of the actions restricted or prohibited under clauses (i) through (viii) of this Paragraph 2, publicly announce or disclose
any request to be excused from any of the foregoing obligations of this Paragraph 2 or otherwise take or cause any action or make
any statement inconsistent with any of the foregoing.

  

At
any MutualFirst annual meeting of stockholders during the Standstill Period, the Ancora Parties agree: (1) to vote all shares of
MutualFirst they or any of them beneficially own in favor of the nominees for election or reelection as director of MutualFirst
selected by the Board of Directors of MutualFirst and agree otherwise to support such director candidates, and (2) with respect
to any other proposal submitted by any MutualFirst stockholder to a vote of the MutualFirst stockholders, to vote all of the MutualFirst
shares they beneficially own in accordance with the recommendation of the MutualFirst Board of Directors with respect to any such
stockholder proposal.

  

Notwithstanding
anything in this Agreement to the contrary, nothing herein will be construed to limit or affect:  (1) any action or inaction
by Mr. Bernard or the Substitute in his capacity as a member of MutualFirst's Board of Directors or the Bank's Board of Directors,
provided he acts in good faith in the discharge of his fiduciary duties as a Board member; or (2) the ability of the Ancora Parties
to engage in discussions relating to the topics listed in Paragraph 2 of this Agreement directly with the President and Chief Executive
Officer of MutualFirst, or upon invitation, with other members of management or the Board of Directors of MutualFirst.

  

The
"Standstill Period" shall begin as of the date of this Agreement and shall remain in full force and effect until the
close of business on the date of the 2019 annual meeting of stockholders of MutualFirst.

  

Notwithstanding
anything in this Agreement to the contrary, at the sole option of MutualFirst, the Standstill Period may be terminated by MutualFirst
in the event that the beneficial ownership of the Ancora Parties decreases below 5% of the outstanding shares of MutualFirst common
stock (in which event Mr. Bernard or the Substitute, as the case may be, shall promptly submit his resignation as a director of
MutualFirst and the Bank).

  

     

     

    

 

3.       Non-Disparagement

 

During
the Standstill Period, the Ancora Parties agree not to disparage MutualFirst or any officers, directors (including director nominees)
or employees of MutualFirst or its affiliates or subsidiaries in any public or quasi-public forum, and MutualFirst agrees not to
disparage any of the Ancora Parties or any officers, partners or employees of the Ancora Parties in any public or quasi-public
forum.

  

4.       Ancora
Nominees

  

MutualFirst
agrees that if either Mr. Bernard or any Substitute is unable to serve as a director, resigns as a director or is removed as a
director of MutualFirst or the Bank prior to the expiration of the Standstill Period, then the MutualFirst or the Bank Board of
Directors, as applicable, shall appoint a substitute director, selected by the Ancora Parties and subject to the approval of the
applicable Board of Directors, in its discretion, after exercising its fiduciary duties in good faith, which approval shall not
be unreasonably withheld or delayed (any such substitute director, a "Substitute"), to fill the resulting vacancy in
the class of directors with terms expiring at the conclusion of the 2020 annual meeting of stockholders.

  

5.       Authority

  

Each
of the Parties that is a corporation or other legal entity and each individual Party executing this Agreement on behalf of a corporation
or other legal entity, represents and warrants that: (a) such corporation or other legal entity is duly organized, validly authorized
and in good standing, and possesses full power and authority to enter into and perform the terms of this Agreement; (b) the execution,
delivery and performance of the terms of this Agreement have been duly and validly authorized by all requisite acts and consents
of the company or other legal entity and do not contravene the terms of any other obligation to which the corporation or other
legal entity is subject; and (c) this Agreement constitutes a legal, binding and valid obligation of each such entity, enforceable
in accordance with its terms.

  

     

     

    

  

6.       Expenses

  

All
costs and expenses incurred in connection with this Agreement shall be paid by the party incurring such expenses.

  

7.       Amendment
in Writing

  

This
Agreement and each of its terms may only be amended, waived, supplemented or modified in a writing signed by the signatories hereto
or their respective successors and assigns.

  

8.       Governing
Law/Venue/Jurisdiction

  

This
Agreement, and the rights and liabilities of the Parties hereto, shall be governed by and construed in accordance with the laws
of the State of Maryland without regard to conflict of law provisions.  The venue and jurisdiction for adjudication of
any and all disputes between the Parties to this Agreement shall be in the State of Maryland Circuit Court in and for Baltimore
County.

  

9.       Notice
of Breach and Remedies

  

The
Parties expressly agree that an actual or threatened breach of this Agreement by any Party will give rise to irreparable injury
that cannot adequately be compensated by damages. Accordingly, in addition to any other remedy to which it may be entitled, each
Party shall be entitled to seek a temporary restraining order or injunctive relief to prevent a breach of the provisions of this
Agreement or to secure specific enforcement of its terms and provisions.

  

The
Ancora Parties expressly agree that they will not be excused or claim to be excused from performance under this Agreement as a
result of any material breach by MutualFirst unless and until MutualFirst is given written notice of such breach and thirty (30)
business days either to cure such breach or for MutualFirst to seek relief in court.  If MutualFirst seeks relief in court,
the Ancora Parties irrevocably stipulate that any failure to perform by the Ancora Parties shall be deemed to constitute irreparable
harm under this Agreement, therefore MutualFirst shall not be required to provide further proof of irreparable harm in order to
obtain equitable relief and the Ancora Parties shall not deny or contest that such circumstances would cause MutualFirst irreparable
harm.  If, after such thirty (30) business day period, MutualFirst has not either reasonably cured such material breach or
obtained relief in court, the Ancora Parties may terminate this Agreement by delivery of written notice to MutualFirst.

  

MutualFirst
expressly agrees that it will not be excused or claim to be excused from performance under this Agreement as a result of any material
breach by the Ancora Parties or any of them unless and until the Ancora Parties are given written notice of such breach and thirty
(30) business days either to cure such breach or for the Ancora Parties to seek relief in court.  If the Ancora Parties seek
relief in court, MutualFirst irrevocably stipulates that any failure to perform by MutualFirst shall be deemed to constitute irreparable
harm under this Agreement, therefore the Ancora Parties shall not be required to provide further proof of irreparable harm in order
to obtain equitable relief and MutualFirst shall not deny or contest that such circumstances would cause the Ancora Parties irreparable
harm.  If, after such thirty (30) business day period, the Ancora Parties have not either reasonably cured such material breach
or obtained relief in court, MutualFirst may terminate this Agreement by delivery of written notice to the Ancora Parties.

  

     

     

    

 

10.       Counterparts

  

This
Agreement may be executed in counterparts, each of which shall be considered to be an original or true copy of this Agreement.  Faxed
or emailed signatures shall be presumed valid.

  

11.       Nonwaiver

  

The
failure of any one of the Parties to insist upon strict adherence to any term of this Agreement on any occasion shall not be considered
a waiver thereof or deprive the Parties of the right thereafter to insist upon strict adherence to that term or any other term
of this Agreement.

  

12.       Disclosure
of This Agreement

  

The
parties contemplate that the Ancora Parties will file a Schedule 13D amendment attaching this Agreement, that MutualFirst will
file a Form 8-K attaching this Agreement and that during the Standstill Period there will be no other public comments (except as
required by applicable law, including regulations of the Securities and Exchange Commission) by the Parties regarding this Agreement
other than a press release by MutualFirst factually summarizing this Agreement and referring to the Form 8-K filing, which press
release shall be subject to prior approval by the Ancora Parties (such approval not to be unreasonably withheld).

  

13.       Entire
Agreement

  

This
Agreement constitutes the full, complete and entire understanding, agreement, and arrangement of and between the Parties with respect
to the subject matter hereof and supersedes any and all prior oral and written understandings, agreements and arrangements between
them other than the confidentiality agreement between the parties dated September 8, 2017.  There are no other agreements,
covenants, promises or arrangements between the Parties other than those set forth in this Agreement (including the attachments
hereto).

 

     

     

    

  

14.       Notice

  

All
notices and other communications which are required or permitted hereunder shall be in writing, and sufficient if by same-day hand
delivery (including delivery by courier) or sent by fax, addressed as follows:

  

If to MutualFirst: 

 

David W. Heeter

President and
Chief Executive Officer

MutualFirst Financial,
Inc.

110 E. Charles
Street

Muncie, IN 47305

Fax: (765) 213-2981

  

with a copy, which
will not constitute notice, to:

  

James S. Fleischer,
Esq. and

Martin L. Meyrowitz,
P.C.

Silver, Freedman,
Taff & Tiernan LLP

3299 K Street,
N.W., Suite 100

Washington, DC  20007

Fax: (202) 337-5502

 

If to the Ancora
Parties:

  

Frederick DiSanto

James M. Bernard

Ancora Advisors,
LLC

6060 Parkland
Boulevard, Suite 200

Cleveland, OH
44124

   

15.       Termination

  

This
Agreement shall cease, terminate and have no further force and effect upon the expiration of the last day of the Standstill Period
as set forth in Section 2, unless earlier terminated pursuant to Section 9 hereof or by mutual written agreement of the Parties.

 

     

     

    

 

16.       Further
Assurances

  

The
Ancora Parties and MutualFirst agree to take, or cause to be taken, all such further or other actions as shall reasonably be necessary
to make effective and consummate the transactions contemplated by this Agreement.

  

17.       Successors
and Assigns

  

All
covenants and agreements contained herein shall bind and inure to the benefit of the parties hereto and their respective successors
and assigns.

  

18.       No
Third-Party Beneficiaries

  

This
Agreement is solely for the benefit of the parties and is not enforceable by any other person.

 

 

 

[Signature page
follows]

  

     

     

    

  

 

IN
WITNESS WHEREOF, the Parties hereto have each executed this Agreement on the date set forth below.

  

	Dated:	March 16, 2018

   

	For:	Ancora Advisors, LLC	 	 
	 	Ancora Trust	 	 
	 	Ancora Income Fund	 	 
	 	Ancora Equity Fund	 	 
	 	Ancora Special Opportunity Fund	 	 
	 	Ancora/Thelen Small-Mid Cap Fund	 	 
	 	Ancora MicroCap Fund	 	 
	 	Merline Partners	 	 
	 	AAMAF LP	 	 
	 	Birchwald Partners LP	 	 
	 	Ancora Catalyst Fund LP	 	 
	 	Pondfield LP	 	 
	 	Ancora Greater China Fund LP	 	 
	 	Ancora Family of Mutual Funds	 	 
	 	Employees of Ancora Advisors LLC	 	/s/ James M. Bernard
	 	Owners of Ancora Advisors LLC	 	James M. Bernard, Individually
	 	 	 	 
	By:	/s/ Frederick DiSanto	 	 
	 	Frederick DiSanto	 	 
	 	Chief Executive Officer	 	 
	 	 	 	 
	For:	MutualFirst Financial, Inc.	 	 
	 	 	 	 
	By:  	/s/ David W. Heeter	 	 
	 	David W. Heeter	 	 
	 	President and Chief Executive Officer

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