Document:

EXHIBIT
10.16

      EMPLOYMENT
AGREEMENT WITH CHARLES VIATER

       

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    EMPLOYMENT
AGREEMENT

     

    THIS
EMPLOYMENT AGREEMENT ("Agreement") is made and entered into as of this 7th day of
January 2008 by and between Mutual Federal Savings Bank (hereinafter referred to
as the "Bank"), MutualFirst
Financial, Inc. (the "Company") and Charles J. Viater (the
"Employee").

     

    WHEREAS,
the Employee is currently serving as the President and Chief Executive Officer
of MFB Corp. and MFB Financial; and

     

    WHEREAS,
it is proposed that the Company and MutualFirst Acquisition Corp., a newly
formed wholly owned subsidiary of the Company, enter into an Agreement and Plan
of Merger (together  with the attachments and exhibits thereto, the
"Merger Agreement") with MFB Corp., pursuant to which, among other things, (i)
MFB Corp. will merge with and into MutualFirst Acquisition Corp., (the "Merger")
and (ii) MFB Financial, a wholly owned subsidiary of MFB Corp., will merge with
and into the Bank (the "Bank Merger"); and

     

    WHEREAS,
the Board of Directors of the Bank believes it is in the best interests of the
Bank to enter into this Agreement in connection with the Bank Merger with the
Employee in order to assure continuity of management of the Bank and to
reinforce and encourage the continued attention and dedication of the Employee;
and

     

    WHEREAS,
the Board of Directors of the Company has approved and authorized the execution
of this Agreement for the purpose of the Company making the guarantee set forth
in Section 17; and

     

    WHEREAS,
the Board of Directors of the Bank has approved and authorized the execution of
this Agreement with the Employee to take effect as stated in Section 2
hereof.

     

    NOW,
THEREFORE, in consideration of the foregoing and of the respective covenants and
agreements of the parties herein, it is AGREED as follows:

     

    1.           Definitions.

     

    (a)           For
purposes of this Agreement, a “Change in Control” shall mean any of the
following:

     

    (i)           a
change in the ownership of the Bank or the Company, which shall occur on the
date that any one person, or more than one person acting as a group, acquires
ownership of stock of the Bank or the Company that, together with stock held by
such person or group, constitutes more than fifty percent (50%) of the total
fair market value or total voting power of the stock of the Bank or the
Company.  Such acquisition may occur as a result of a merger of the
Company or the Bank into another entity which pays consideration for the shares
of capital stock of the merging Company or Bank.  However, if any one
person, or more than one person acting as a group, is considered to own more
than fifty percent (50%) of the total fair market value or total voting power of
the stock of the Bank or the Company, the acquisition of additional stock by the
same person or persons is not considered to cause a change in the ownership of
the Bank or the Company (or to cause a change in the effective control of the
Bank or the Company (within the meaning of subsection (ii)).  An
increase in the percentage of stock owned by any one person, or persons acting
as a group, as a result of a transaction in which the Bank or the Company
acquires its stock in exchange for property will be treated as an acquisition of
stock for purposes of this subsection.  This subsection applies only
when there is a transfer of stock of the Bank or the Company (or issuance of
stock of the Bank or the Company) and stock in the Bank or the Company remains
outstanding after the transaction.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    (ii)           a
change in the effective control of the Bank or the Company, which shall occur
only on either of the following dates:

     

    1)           the
date any one person, or more than one person acting as a group acquires (or has
acquired during the 12 month period ending on the date of the most recent
acquisition by such person or persons) ownership of stock of the Bank or the
Company possessing thirty percent (30%) or more of the total voting power of the
stock of the Bank or the Company.

     

    2)           the
date a majority of members of the Company’s board of directors is replaced
during any 12 month period by directors whose appointment or election is not
endorsed by a majority of the members of the Company’s board of directors before
the date of the appointment or election; provided, however, that this provision
shall not apply if another corporation is a majority shareholder of the
Company.

     

    If any
one person, or more than one person acting as a group, is considered to
effectively control the Bank or the Company, the acquisition of additional
control of the Bank or the Company by the same person or persons is not
considered to cause a change in the effective control of the Bank or the Company
(or to cause a change in the ownership of the Bank or the Company within the
meaning of subsection (i) of this section).

     

    (iii)           a
change in the ownership of a substantial portion of the Bank’s assets, which
shall occur on the date that any one person, or more than one person acting as a
group, acquires (or has acquired during the 12 month period ending on the date
of the most recent acquisition by such person or persons) assets from the Bank
that have a total gross fair market value equal to or more than forty percent
(40%) of the total gross fair market value of all of the assets of the Bank
immediately before such acquisition or acquisitions.  For this
purpose, gross fair market value means the value of the assets of the Bank, or
the value of the assets being disposed of, determined without regard to any
liabilities associated with such assets.  No change in control occurs
under this subsection (iii) when there is a transfer to an entity that is
controlled by the shareholders of the Bank immediately after the
transfer.  A transfer of assets by the Bank is not treated as a change
in the ownership of such assets if the assets are transferred to –

     

    1)           a
shareholder of the Bank (immediately before the asset transfer) in exchange for
or with respect to its stock;

    
      
         

      

      
        Page 2 of
11

        
          

        

      

      
         

      

    

    2)           an
entity, 50 percent or more of the total value or voting power of which is owned,
directly or indirectly, by the Bank.

     

    3)           a
person, or more than one person acting as a group, that owns, directly or
indirectly, 50 percent or more of the total value or voting power of all the
outstanding stock of the Bank; or

     

    4)           an
entity, at least 50 percent of the total value or voting power of which is
owned, directly or indirectly, by a person described in paragraph
(3).

     

    For
purposes of this subsection (iii) and except as otherwise provided in paragraph
1) above, a person’s status is determined immediately after the transfer of the
assets.

     

    (iv)           For
purposes of this section, persons will not be considered to be acting as a group
solely because they purchase or own stock of the same corporation at the same
time, or as a result of the same public offering.  Persons will be
considered to be acting as a group if they are owners of a corporation that
enters into a merger, consolidation, purchase or acquisition of stock, or
similar business transaction with the Bank or the Company; provided, however,
that they will not be considered to be acting as a group if they are owners of
an entity that merges into the Bank or the Company where the Bank or the Company
is the surviving corporation.

     

    (b)           
The term "Commencement Date" means the date of the consummation of the Bank
Merger.

     

    (c)           The
term "Date of Termination" means the date upon which the Employee ceases to
serve as an employee of the Bank.

     

    (d)           The
term "Involuntary Termination" means termination of the employment of Employee
without the Employee's express written consent, and shall include a voluntary
termination by the Employee for “good reason.”  For purposes of this
subsection, “good reason” means a material diminution of or interference with
the Employee's duties, responsibilities and benefits as Regional President of
the Bank and Senior Vice President of the Company, including (without
limitation) any of the following actions unless consented to in writing by the
Employee: (1) a change in the principal workplace of the Employee to a location
outside of a 30 mile radius from the Bank's headquarters office as of the date
hereof without the Employee’s consent, (2) a material demotion of the Employee;
(3) a material reduction in the number or seniority of other Bank personnel
reporting to the Employee or a material reduction in the frequency with which,
or in the nature of the matters with respect to which, such personnel are to
report to the Employee, other than as part of a Bank-or Company-wide reduction
in staff, (4) a material adverse change in the Employee's base salary; and (5)
any material breach of this Agreement by the Bank.  The Employee’s
voluntary termination for good reason upon the occurrence of any of the events
or conditions described in the preceding sentence (a “Good Reason Event”) shall
be deemed an “Involuntary Termination” only if such voluntary termination occurs
within two years after the Good Reason Event and after the Employee has provided
the Bank not less than ninety (90) days notice of his intent to terminate
employment and at least thirty (30) days for the Bank to cure the Good Reason
Event. The term "Involuntary Termination" does not include Termination for Cause
or termination of employment due to retirement, death, disability or suspension
or temporary or permanent prohibition from participation in the conduct of the
Bank's affairs under Section 8 of the Federal Deposit Insurance Act
("FDIA").

    
      
         

      

      
        Page 3 of
11

        
          

        

      

      
         

      

    

    (e)           The
terms "Termination for Cause" and "Terminated
For Cause" mean termination of the employment of the Employee because of the
Employee's personal dishonesty, incompetence, willful misconduct, breach of a
fiduciary duty involving personal profit, intentional failure to perform stated
duties, willful violation of any law, rule, or regulation (other than traffic
violations or similar offenses) or final cease-and-desist order, or material
breach of any provision of this Agreement. The Employee shall not be deemed to
have been Terminated for Cause unless and until there shall have been delivered
to the Employee a copy of a resolution, duly adopted by the affirmative vote of
not less than a majority of the entire membership of the Board of Directors of
the Bank at a meeting of the Board called and held for such purpose (after
reasonable notice to the Employee and an opportunity for the Employee, together
with the Employee's counsel, to be heard before the Board), stating that in the
good faith opinion of the Board the Employee has engaged in conduct described in
the preceding sentence and specifying the particulars thereof in
detail.

     

    (f)           The
term “Section 409A” means Section 409A of the Code, and any regulations or other
guidance of general applicability issued thereunder.

     

    (g)           The
term “Specified Employee” means, for an applicable twelve (12) month period
beginning on April 1, a key employee (as described in Code Section 416(i),
determined without regard to paragraph (5) thereof) during the calendar year
immediately preceding such April 1.

     

    (h)           The term “Termination of Employment”
shall have the same meaning as Aseparation from service, as that phrase
is defined in Section 409A (taking into account all rules and presumptions
provided for in the Section 409A regulations).  Any reference to
termination of employment herein shall be deemed to have the same meaning as
“Termination of Employment” as herein defined.

     

    2.           Term. The term of
this Agreement shall be a period of three years beginning on the Commencement
Date, subject to earlier termination as provided herein. Beginning on the first
anniversary of the Commencement Date, and on each anniversary thereafter, the
term of this Agreement shall be extended for a period of one year in addition to
the then-remaining term, provided that (1) the
Bank has not given notice to the Employee in writing at least 90 days prior to
such anniversary that the term of this Agreement shall not be extended further;
and (2) prior to such anniversary, the Board of Directors of the Bank explicitly
reviews and approves the extension. Reference herein to the term of this
Agreement shall refer to both such initial term and such extended
terms.

     

    3.           Employment. Upon the
Commencement Date, the Employee shall be employed as Regional President of the
Bank and Senior Vice President of the Company as of the Commencement Date. As
such, the Employee shall render administrative and management services as are
customarily performed by persons situated in similar executive capacities, and
shall have such other powers and duties of an officer of the Bank and the
Company as the Board of Directors may prescribe from time to
time.

    
      
         

      

      
        Page 4 of
11

        
          

        

      

      
         

      

    

    4.           Compensation.

     

    (a)           Salary. The Bank
agrees to pay the Employee during the term of this Agreement, not less
frequently than monthly, the salary established by the Board of Directors, which
shall be at least $250,000 annually. The amount of the Employee's salary shall
be reviewed by the Board of Directors, beginning not later than the first
anniversary of the Commencement Date. Adjustments in salary or other
compensation shall not limit or reduce any other obligation of the Bank or of
the Company under this Agreement. The Employee's salary
in effect from time to time during the term of this Agreement shall not
thereafter be reduced.

     

    (b)           Discretionary
Bonuses. The Employee shall be entitled to participate in an equitable
manner with all other executive officers of the Bank in discretionary bonuses as
authorized and declared by the Board of Directors to its executive employees. No
other compensation provided for in this Agreement shall be deemed a substitute
for the Employee's right to participate in such bonuses when and as declared by
the Board of Directors. A discretionary bonus declared pursuant to this Section
4(b) shall be paid no later than two and one-half months after the end of the
calendar year in which the bonus is declared.

     

    (c)           Expenses. The
Employee shall be entitled to receive prompt reimbursement for all reasonable
expenses incurred by the Employee in performing services under this Agreement in
accordance with the policies and procedures applicable to the executive officers
of the Bank, provided that the
Employee accounts for such expenses as required under such policies and
procedures.

     

    5.           Benefits.

     

    (a)           Participation in Retirement
and Employee Benefit Plans. The Employee shall be entitled to participate
in all plans relating to pension, thrift, profit-sharing, group life and
disability insurance, medical and dental coverage, education, cash bonuses, and
other retirement or employee benefits or combinations thereof, in which the
Bank's executive officers participate.

     

    (b)           Fringe Benefits. The
Employee shall be eligible to participate in, and receive benefits under, any
fringe benefit plans which are or may become applicable to the Bank's executive
officers, including, without limitation, the Company's Stock Option Plan the
Management Recognition Plan, and the Company’s Employee Stock Ownership
Plan.  So long as Employee is employed by the Bank pursuant to this
Agreement, Employee shall be entitled to an auto allowance of $1,667 per month
to be applied towards the use or lease of an automobile used in part for Bank
business.

     

    (c)           Vacations; Leave. The
Employee shall be entitled to annual paid vacation in accordance with the
policies established by the Board of Directors for executive employees and to
voluntary leave of absence, with or without pay, from time to time at such times
and upon such conditions as the Board of Directors may determine in its
discretion.

    
      
         

      

      
        Page 5 of
11

        
          

        

      

      
         

      

    

     

    6.           Termination of
Employment.

     

    (a)           Involuntary
Termination. The Board of
Directors may terminate the Employee's employment at any time, but, except in
the case of Termination for Cause, termination of employment shall not prejudice
the Employee's right to compensation or other benefits under this Agreement. In
the event of Involuntary Termination other than in connection with or within
twelve (12) months after a Change in Control, (1) the Bank shall pay to the
Employee during the remaining term of this Agreement, the Employee's salary at
the rate in effect immediately prior to the Date of Termination, payable in such
manner and at such times as such salary would have been payable to the Employee
under Section 4 if the Employee had continued to be employed by the Bank, and
(2) the Bank shall provide to the Employee during the remaining term of this
Agreement substantially the same benefits as the Bank maintained for its
executive officers immediately prior to the Date of Termination, including
Bank-paid dependent medical and dental coverage.  If and to the extent
involuntary termination payments under this Section 6 constitute deferred
compensation within the meaning of Section 409A (“Involuntary Termination
Deferred Compensation”), and the Employee is a Specified Employee, then the
payment of such Involuntary Termination Deferred Compensation shall comply with
Code Section 409A(a)(2)(B)(i) and the regulations thereunder, which generally
provides that distributions of deferred compensation (within the meaning of
Section 409A) to a Specified Employee that are payable on account of Termination
of Employment may not commence prior to the six (6) month anniversary of the
Employee’s Termination of Employment (or, if earlier, the date of the Employee’s
death). Amounts that would otherwise be distributed to the Employee during such
six (6) month period but for the preceding sentence shall be paid to the
Employee on the 185th day following the date of the Employee’s Termination of
Employment.  To the extent permitted by Section 409A, Involuntary
Termination Deferred Compensation payments shall be deemed to be made after any
other payments provided for in this Section 6(a).

     

    (b)           Termination for
Cause. In the event of Termination for Cause, the Bank shall pay the
Employee the Employee's salary and benefits through the Date of Termination, and
the Bank shall have no further obligation to the Employee under this
Agreement.

     

    (c)           Voluntary
Termination. The Employee's employment may be voluntarily terminated by
the Employee at any time upon 90 days written notice to the Bank or upon such
shorter period as may be agreed upon between the Employee and the Board of
Directors. In the event of such voluntary termination, the Bank shall be
obligated to continue to pay to the Employee the Employee's salary and benefits
only through the Date of Termination, at the time such payments are due, and the
Bank shall have no further obligation to the Employee under this
Agreement.

     

    (d)           Change in Control. In
the event of Involuntary Termination in connection with or within 12 months
after a Change in Control which occurs at any time while the Employee is
employed under this Agreement, the Bank shall, subject to Section 7 of this
Agreement, (1) pay to the Employee in a lump sum in cash within 25 business days
after the Date of Termination an amount equal to 299% of the Employee's "base
amount" as defined in Section 280G of the Internal Revenue Code of 1986, as
amended (the "Code"); and (2) provide to the Employee during the remaining term
of this Agreement substantially the same health (including, without limitation,
health, dental and vision) and disability benefits as the Bank maintained for
its executive officers immediately prior to the Change in
Control.

    
      
         

      

      
        Page 6 of
11

        
          

        

      

      
         

      

    

    (e)           Death; Disability. In
the event of the death of the Employee while employed under this Agreement and
prior to any termination of employment, the Employee's estate,
or such person as the Employee may have previously designated in writing, shall
be entitled to receive from the Bank the salary and benefits of the Employee
through the last day of the calendar month in which the Employee died. If the
Employee becomes disabled as defined in the Bank's then current disability plan,
if any, or if the Employee is otherwise unable to serve in his current capacity,
this Agreement shall continue in fall force and effect, except that the salary
paid to the Employee shall be reduced by any disability insurance payments made
to Employee on policies of insurance maintained by the Bank at its
expense.

     

    (f)           Temporary Suspension or
Prohibition. If the Employee is suspended and/or temporarily prohibited
from participating in the conduct of the Bank's affairs by a notice served under
Section 8(e)(3) or (g)(1) of the FDIA, 12 U.S.C. § 1818(e)(3) and (g)(1), the
Bank's obligations under this Agreement shall
be suspended as of the date of service, unless stayed by appropriate
proceedings. If the charges in the notice are dismissed, the Bank may in its
discretion (i) pay the Employee all or part of the compensation withheld while
its obligations under this Agreement were suspended and (ii) reinstate in whole
or in part any of its obligations which were suspended.

     

    (g)           Permanent Suspension or
Prohibition. If the Employee is removed and/or permanently prohibited
from participating in the conduct of the Bank's affairs by an order issued under
Section 8(e)(4) or (g)(1) of the FDIA, 12 U.S.C. § 1818(e)(4) and (g)(1), all
obligations of the Bank under this Agreement shall terminate as of the effective
date of the order, but vested rights of the contracting parties shall not be
affected.

     

    (h)           Default of the Bank.
If the Bank is in default (as defined in Section 3(x)(1) of the FDIA), all obligations under this
Agreement shall terminate as of the date of default, but this provision shall
not affect any vested rights of the contracting parties.

     

    (i)           Termination by
Regulators. All obligations of the Bank under this Agreement shall be
terminated, except to the extent determined that continuation of this Agreement
is necessary for the continued operation of the Bank: (1) by the Director of the
Office of Thrift Supervision (the "Director") or his or her designee, at the
time the Federal Deposit Insurance Corporation enters into an agreement to
provide assistance to or on behalf of the Bank under the authority contained in
Section 13(c) of the FDIA; or (2) by the Director or his or her designee, at the
time the Director or his or her designee approves a supervisory merger to
resolve problems related to operation of the Bank or when the Bank is determined
by the Director to be in an unsafe or unsound condition. Any rights of the
parties that have already vested, however, shall not be affected by any such
action.

     

    Payments
due under the Agreement that are suspended in accordance with Paragraphs 6(f)
through 6(i) of the Agreement, but are later determined by the applicable
regulatory authority to be payable, shall be paid at the earliest date the
Company or the Bank reasonably anticipates that the payment would be
permissible.

    
      
         

      

      
        Page 7 of
11

        
          

        

      

      
         

      

    

    7.           Certain
Reduction of Payments by the Bank.

     

    (a)           Notwithstanding
any other provision of this Agreement, if payments under this Agreement,
together with any other payments received or to be received by the Employee in
connection with a Change in Control would cause any amount to be nondeductible
for federal income tax purposes pursuant to Section 280G of the Code, then
benefits under this Agreement shall be reduced (not less than zero) to the
extent necessary so as to maximize payments to the Employee without causing any
amount to become nondeductible. The Employee shall determine the allocation of
such reduction among payments to the Employee.

     

    (b)           Any
payments made to the Employee pursuant to this Agreement, or otherwise, are
subject to and conditioned upon their compliance with 12 U.S.C. § 1828(k) and
any regulations promulgated thereunder.

     

    8.           Confidential Information;
Loyalty; Non-competition.

     

    (a)           During the term of the Employee's employment hereunder
and for three years thereafter, the Employee shall not, except as may be
required to perform his duties hereunder or as required by law, disclose to
others or use, whether directly or indirectly, any Confidential Information.
"Confidential Information" means information about the Bank and the Bank’s
clients and customers which is not available to the general public and was or
shall be learned by the Employee in the course of his employment by the Bank,
including without limitation any data, formulae, information, proprietary
knowledge, trade secrets, and credit reports and analyses owned, developed and
used in the course of the business of the Bank, including client and customer
lists and information related thereto; and all papers, resumes, records and
other documents (and all copies thereof) containing such Confidential
Information. The Employee acknowledges that such Confidential Information is
specialized, unique in nature and of great value to the Bank. The Employee
agrees that upon the expiration of the Employee's term of employment hereunder
or in the event the Employee's employment hereunder is terminated prior thereto
for any reason whatsoever, the Employee will promptly deliver to the Bank all
documents (and all copies thereof) containing any Confidential
Information.

     

    (b)           The Employee shall devote his full time to the
performance of his employment under this Agreement; provided, however, that the
Employee may serve, without compensation, with charitable, community and
industry organizations and to serve, with compensation, as a director of any
business corporation to the extent such directorships do not inhibit the
performance of his duties thereunder or conflict with the business of the Bank.
During the term of the Employee's employment hereunder, the Employee shall not
engage in any business or activity contrary to the business affairs or interests
of the Bank.

     

    (c)           Upon the expiration of the term of the Employee's
employment hereunder or in the event the Employee's employment hereunder
terminates prior thereto for any reason whatsoever, the Employee shall not, for
a period of one year after the occurrence of such event, for himself, or as the
agent of, on behalf of, or in conjunction with, any person or entity, solicit or
attempt to solicit, whether directly or indirectly: (i) any employee of the Bank
to terminate such employee's employment relationship with the Bank; or (ii) any
savings and loan, banking or similar business from any person or entity that is
or was a client, employee, or customer of the Bank and had dealt with the
Employee or any other employee of the Bank under the supervision of the
Employee.

     

    (d)           In the event the Employee's employment hereunder is
terminated for any reason whatsoever, the Employee shall not, for a period of
two years from the date of termination, directly or indirectly, own, manage,
operate or control, or participate in the ownership, management, operation or
control of, or be employed by or connected in any manner with, any financial
institution having an office located within 25 miles of any office of the Bank
as of the date of termination.

    
      
         

      

      
        Page 8 of
11

        
          

        

      

      
         

      

    

    (e)           The provisions of Paragraphs 8(b) and 8(d) of the
Agreement shall not prevent the Employee from purchasing, solely for investment,
not more than 5 percent of any financial institution's stock or other securities
which are traded on any national or regional securities exchange or are actively
traded in the over-the-counter market and registered under Section 12(g) of the
Securities Exchange Act of 1934.

     

    (f)           The provisions of this Paragraph 8 shall survive the
termination of the Employee’s employment hereunder whether by expiration of the
term thereof or otherwise.

     

    9.           No Mitigation. The
Employee shall not be required to mitigate the amount of any salary or other
payment or benefit provided for in this Agreement by seeking other employment or
otherwise, nor shall the amount of any payment or benefit provided for in this
Agreement be reduced by any compensation earned by the Employee as the result of
employment by another employer, by retirement benefits after the Date of
Termination or otherwise.

     

    10.           Attorneys Fees. In
the event the Bank exercises its right of Termination for Cause, but it is
determined by a court of competent jurisdiction or by an arbitrator pursuant to
Section 16 that cause did not exist for such termination, or if in any event it
is determined by any such court or arbitrator that the Bank has failed to make
timely payment of any amounts owed to the Employee under this Agreement, the
Employee shall be entitled to reimbursement for all reasonable costs, including
attorneys' fees, incurred in challenging such termination or collecting such
amounts. Such reimbursement shall be in addition to all rights to which the
Employee is otherwise entitled under this Agreement.

     

    11.           No
Assignments.

     

    (a)           This
Agreement is personal to each of the parties hereto, and no party may assign or
delegate any of its rights or obligations hereunder without first obtaining the
written consent of the other party; provided, however, that the Bank shall
require any successor or assign (whether direct or indirect, by purchase,
merger, consolidation or otherwise) to all or substantially all of the business
and/or assets of the Bank, by an assumption agreement in form and substance
satisfactory to the Employee, to expressly assume and agree to perform this
Agreement in the same manner and to the same extent that the Bank would be
required to perform it if no such succession or assignment had taken place.
Failure of the Bank to obtain such an assumption agreement prior to the
effectiveness of any such succession or assignment shall be a breach of this
Agreement and shall entitle the Employee to compensation from the Bank in the
same amount and on the same terms as the compensation pursuant to Section 6(d)
hereof. For purposes of implementing the provisions of this Section 11(a), the
date on which any such succession becomes effective shall be deemed the Date of
Termination.

     

    (b)           This
Agreement and all rights of the Employee hereunder shall inure to the benefit of
and be enforceable by the Employee's
personal and legal representatives, executors, administrators, successors,
heirs, distributees, devisees and legatees. If the Employee should die while any
amounts would still be payable to the Employee hereunder if the Employee had
continued to live, all such amounts, unless otherwise provided herein, shall be
paid in accordance with the terms of this Agreement to the Employee's devisee,
legatee or other designee or if there is no such designee, to the Employee's
estate.

    
      
         

      

      
        Page 9 of
11

        
          

        

      

      
         

      

    

     

    12.           Notice. For the
purposes of this Agreement, notices and all other communications provided for in
the Agreement shall be in writing and, shall be deemed to have been duly given
when personally delivered or sent by certified mail, return receipt requested,
postage prepaid, to the Bank or Company at its home office, to the attention of
the Board of Directors with a copy to the Secretary, or, if to the Employee, to
such home or other address as the Employee has most recently provided in writing
to the Bank.

     

    13.           Amendments. No
amendments or additions to this Agreement shall be binding unless in writing and
signed by both parties, except as herein otherwise provided.

     

    14.           Headings. The
headings used in this Agreement are included solely for convenience and shall
not affect, or be used in connection with, the interpretation of this
Agreement.

     

    15.           Severability. The
provisions of this Agreement shall be deemed severable and the invalidity or
unenforceability of any provision shall not affect the validity or
enforceability of the other provisions hereof.

     

    16.           Governing Law. This
Agreement shall be governed by the laws of the United States to the extent
applicable and otherwise by the laws of the State of Indiana.

     

    17.           Arbitration. Any
dispute or controversy arising under or in connection with this Agreement shall
be settled exclusively by arbitration in accordance with the rules of the
American Arbitration Association then in effect. Judgment may be entered on the
arbitrator's award in any court having jurisdiction.

     

    18.           Company Guarantee.
The Company hereby guarantees the obligations of the Bank to the Employee under
the Employment Agreement. This guarantee shall be subject to the provisions of
12 U.S.C. Section 1828(k) and regulations thereunder.

     

    19.           Supersedes Prior
Agreements. This Agreement supersedes any and all prior employment
agreements entered into by and between the Employee, the Bank or the
Company.

    
      
         

      

      
        Page 10
of 11

        
          

        

      

      
         

      

    

    IN
WITNESS WHEREOF, the parties have executed this Agreement as of the day and year
first above written.

     

    THIS
AGREEMENT CONTAINS A BINDING ARBITRATION PROVISION WHICH MAY BE ENFORCED BY THE
PARTIES.

     

    
      
        	
                Attest:

              	 
      	
                MUTUAL
      FEDERAL SAVINGS BANK

              
	 
      	 
      	 
      
	
                /s/ Rosalie Petro

              	 
      	
                /s/ David W. Heeter

              
	
                Secretary

              	 
      	
                By:

              	
                David
      W. Heeter

              
	 
      	 
      	
                Its:

              	
                Chief
      Executive Officer

              
	 
      	 
      	 
      
	 
      	 
      	
                MUTUALFIRST FINANCIAL,
      INC.

              
	 
      	 
      	 
      
	
                /s/ Rosalie
      Petro_________________

              	 
      	
                /s/ David W. Heeter

              
	
                Secretary

              	 
      	
                By:

              	
                David
      W. Heeter

              
	 
      	 
      	
                Its:

              	
                President
      and Chief Executive Officer

              
	 
      	 
      	 
      
	 
      	 
      	
                EMPLOYEE

              
	 
      	 
      	 
      
	 
      	 
      	
                /s/ Charles J. Viater

              
	 
      	 
      	
                Charles
      J. Viater

              

      

    

    
      
         

      

      
        Page 11
of 11EXHIBIT
10.17

    SALARY
CONTINUATION AGREEMENT WITH CHARLES VIATER

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    MFB
FINANCIAL

    SALARY
CONTINUATION AGREEMENT

    

    THIS SALARY CONTINUATION AGREEMENT
(this “Agreement”) is adopted this 18th day of
September, 2007, by and between MFB FINANCIAL, a savings association located in
Mishawaka, Indiana (the “Bank”), and CHARLES J. VIATER (the
“Executive”).

    

    The
purpose of this Agreement is to provide specified benefits to the Executive, a
member of a select group of management or highly compensated employees who
contribute materially to the continued growth, development and future business
success of the Bank.  This Agreement shall be unfunded for tax
purposes and for purposes of Title I of the Employee Retirement Income Security
Act of 1974 (“ERISA”), as amended from time to time.

    

    Article
1

    Definitions

    

    Whenever used in this Agreement, the
following words and phrases shall have the meanings specified:

    

    
      	
              1.1

            	
              “Accrual
      Balance” means the liability that should be accrued by the Bank,
      under generally accepted accounting principles (“GAAP”), for the Bank’s
      obligation to the Executive under this Agreement, by applying Accounting
      Principles Board Opinion Number 12 (“APB 12”) as amended by Statement of
      Financial Accounting Standards Number 106 (“FAS 106”) and the Discount
      Rate.  Unless otherwise specified herein, any one of a variety
      of amortization methods may be used to determine the Accrual
      Balance.  However, once chosen, the method must be consistently
      applied.

            

    

    

    
      	
              1.2

            	
              “Beneficiary”
      means each designated person or entity, or the estate of the deceased
      Executive, entitled to any benefits upon the death of the Executive
      pursuant to Article 4.

            

    

    

    
      	
              1.3

            	
              “Beneficiary
      Designation Form” means the form established from time to time by
      the Plan Administrator that the Executive completes, signs and returns to
      the Plan Administrator to designate one or more
    Beneficiaries.

            

    

    

    
      	
              1.4

            	
              “Board” means
      the Board of Directors of the Bank as from time to time
      constituted.

            

    

    

    
      	
              1.5

            	
              “Change in
      Control” shall mean any of the
following:

            

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
      	
               
      

            	
              (i)

            	
              a
      change in the ownership of the Bank or the MFB Corp., which shall occur on
      the date that any one person, or more than one person acting as a group,
      acquires ownership of stock of the Bank or the MFB Corp. that, together
      with stock held by such person or group, constitutes more than fifty
      percent (50%) of the total fair market value or total voting power of the
      stock of the Bank or the MFB Corp..  Such acquisition may occur
      as a result of a merger of the MFB Corp. or the Bank into another entity
      which pays consideration for the shares of capital stock of the merging
      MFB Corp. or Bank.  However, if any one person, or more than one
      person acting as a group, is considered to own more than fifty percent
      (50%) of the total fair market value or total voting power of the stock of
      the Bank or the MFB Corp., the acquisition of additional stock by the same
      person or persons is not considered to cause a change in the ownership of
      the Bank or the MFB Corp. (or to cause a change in the effective control
      of the Bank or the MFB Corp. (within the meaning of subsection
      (ii)).  An increase in the percentage of stock owned by any one
      person, or persons acting as a group, as a result of a transaction in
      which the Bank or the MFB Corp. acquires its stock in exchange for
      property will be treated as an acquisition of stock for purposes of this
      subsection.  This subsection applies only when there is a
      transfer of stock of the Bank or the MFB Corp. (or issuance of stock of
      the Bank or the MFB Corp.) and stock in the Bank or the MFB Corp. remains
      outstanding after the transaction.

            

    

     

    
      	
               
      

            	
              (ii)

            	
              a
      change in the effective control of the Bank or the MFB Corp., which shall
      occur only on either of the following
dates:

            

    

     

    
      	
               
      

            	
              1)

            	
              the
      date any one person, or more than one person acting as a group acquires
      (or has acquired during the 12 month period ending on the date of the most
      recent acquisition by such person or persons) ownership of stock of the
      Bank or the MFB Corp. possessing thirty percent (30%) or more of the total
      voting power of the stock of the Bank or the MFB
  Corp.

            

    

     

    
      	
               
      

            	
              2)

            	
              the
      date a majority of members of the MFB Corp.’s board of directors is
      replaced during any 12 month period by directors whose appointment or
      election is not endorsed by a majority of the members of the MFB Corp.’s
      board of directors before the date of the appointment or election;
      provided, however, that this provision shall not apply if another
      corporation is a majority shareholder of the MFB
  Corp.

            

    

     

    If any
one person, or more than one person acting as a group, is considered to
effectively control the Bank or the MFB Corp., the acquisition of additional
control of the Bank or the MFB Corp. by the same person or persons is not
considered to cause a change in the effective control of the Bank or the MFB
Corp. (or to cause a change in the ownership of the Bank or the MFB Corp. within
the meaning of subsection (i) of this section).

     

    
      	
               
      

            	
              (iii)

            	
              a
      change in the ownership of a substantial portion of the Bank’s assets,
      which shall occur on the date that any one person, or more than one person
      acting as a group, acquires (or has acquired during the 12 month period
      ending on the date of the most recent acquisition by such person or
      persons) assets from the Bank that have a total gross fair market value
      equal to or more than forty percent (40%) of the total gross fair market
      value of all of the assets of the Bank immediately before such acquisition
      or acquisitions.  For this purpose, gross fair market value
      means the value of the assets of the Bank, or the value of the assets
      being disposed of, determined without regard to any liabilities associated
      with such assets.  No change in control occurs under this
      subsection (iii) when there is a transfer to an entity that is controlled
      by the shareholders of the Bank immediately after the
      transfer.  A transfer of assets by the Bank is not treated as a
      change in the ownership of such assets if the assets are transferred
      to:

            

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    
      	
               
      

            	
              1)

            	
              a
      shareholder of the Bank (immediately before the asset transfer) in
      exchange for or with respect to its
stock;

            

    

     

    
      	
               
      

            	
              2)

            	
              an
      entity, 50 percent or more of the total value or voting power of which is
      owned, directly or indirectly, by the
Bank.

            

    

     

    
      	
               
      

            	
              3)

            	
              a
      person, or more than one person acting as a group, that owns, directly or
      indirectly, 50 percent or more of the total value or voting power of all
      the outstanding stock of the Bank;
or

            

    

     

    
      	
               
      

            	
              4)

            	
              an
      entity, at least 50 percent of the total value or voting power of which is
      owned, directly or indirectly, by a person described in paragraph
      (iii).

            

    

     

    For
purposes of this subsection (iii) and except as otherwise provided in paragraph
1) above, a person’s status is determined immediately after the transfer of the
assets.

     

    
      	
               
      

            	
              (iv)

            	
              For
      purposes of this section, persons will not be considered to be acting as a
      group solely because they purchase or own stock of the same corporation at
      the same time, or as a result of the same public
      offering.  Persons will be considered to be acting as a group if
      they are owners of a corporation that enters into a merger, consolidation,
      purchase or acquisition of stock, or similar business transaction with the
      Bank or the MFB Corp.; provided, however, that they will not be considered
      to be acting as a group if they are owners of an entity that merges into
      the Bank or the MFB Corp. where the Bank or the MFB Corp. is the surviving
      corporation.

            

    

     

    
      	
              1.6

            	
              “Code” means the
      Internal Revenue Code of 1986, as amended, and all regulations and
      guidance thereunder, including such regulations and guidance as may be
      promulgated after the Effective
Date.

            

    

    

    
      	
              1.7

            	
              “Disability”
      means the Executive: (i) is unable to engage in any substantial gainful
      activity by reason of any medically determinable physical or mental
      impairment which can be expected to result in death or can be expected to
      last for a continuous period of not less than twelve (12) months; or (ii)
      is, by reason of any medically determinable physical or mental impairment
      which can be expected to result in death or can be expected to last for a
      continuous period of not less than twelve (12) months, receiving income
      replacement benefits for a period of not less than three (3) months under
      an accident and health plan covering employees or directors of the
      Bank.  Medical determination of Disability may be made by either
      the Social Security Administration or by the provider of disability
      insurance covering employees or directors of the Bank provided that the
      definition of “disability” applied under such insurance program complies
      with the requirements of the preceding sentence.  Upon the
      request of the Plan Administrator, the Executive must submit proof to the
      Plan Administrator of the Social Security Administration’s or the
      provider’s determination.

            

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    
      	
              1.8

            	
              “Discount Rate”
      means the rate used by the Plan Administrator for determining the Accrual
      Balance.  The initial Discount Rate is six percent
      (6.0%).  However, the Plan Administrator, in its discretion, may
      adjust the Discount Rate to maintain the rate within reasonable standards
      according to GAAP and/or applicable bank regulatory
    guidance.

            

    

    

    
      	
              1.9

            	
              “Early
      Termination” means the Executive’s Separation from Service before
      attainment of Normal Retirement Age except when such Separation from
      Service occurs within twenty-four (24) months following a Change in
      Control, as a result of a Termination for Cause, or as a result of
      Executive’s voluntary Separation from Service as a result of his
      resignation.

            

    

    

    
      	
              1.10

            	
              “Effective Date”
      means September 18, 2007.

            

    

    

    
      	
              1.11

            	
              “Normal Retirement
      Age” means the Executive’s age sixty
  (60).

            

    

    

    
      	
              1.12

            	
              “Plan
      Administrator” means the Board or such committee or person as the
      Board shall appoint.

            

    

    

    
      	
              1.13

            	
              “Plan Year”
      means each twelve (12) month period commencing on September 1 and ending
      on August 31 of each year.  The initial Plan Year shall commence
      on the Effective Date of this Agreement and end on the following August
      31.

            

    

    

    
      	
              1.14

            	
              “Separation
      from Service means
      termination of the Executive’s employment with the Bank for reasons other
      than death or Disability.  Whether a Separation from Service has
      occurred is determined in accordance with the
      requirements of Code Section 409A based on whether the facts and
      circumstances indicate that the Bank and Executive reasonably anticipated
      that no further services would be performed after a certain date or that
      the Executive would continue to provide services after such date (whether
      as an employee or as an independent contractor) at an annual rate that is
      less than fifty percent (50%) of the bona fide services performed (whether
      as an employee or an independent contractor) during the immediately
      preceding twelve (12) month
period.

            

    

    

    
      	
              1.15

            	
              “Specified
      Employee” means an employee who at the time of Separation from
      Service is a key employee of the Bank or MFB Corp., if any stock of the
      Bank or MFB Corp. is publicly traded on an established securities market
      or otherwise.  For purposes of this Agreement, an employee is a
      key employee if the employee meets the requirements of Code Section
      416(i)(1)(A)(i), (ii), or (iii) (applied in accordance with the
      regulations thereunder and disregarding section 416(i)(5)) at any time
      during the twelve (12) month period ending on December 31 (the
      “identification period”).  If the employee is a key employee
      during an identification period, the employee is treated as a key employee
      for purposes of this Agreement during the twelve (12) month period that
      begins on the first day of April following the close of the identification
      period.

            

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
      	
              1.16

            	
              “Termination for
      Cause” means Separation from Service for: (i) personal dishonesty,
      (ii) incompetence, (iii) willful misconduct, (iv) breach of fiduciary duty
      involving personal profit, (v) intentional failure to perform stated
      duties, (vi) willful violation of any law, rule, or regulation (other than
      traffic violations or similar offenses) or final cease-and-desist order,
      or (vii) any material breach of any term, condition or covenant of this
      Agreement.

            

    

    

    Article
2

    Distributions
During Lifetime

    

    
      	
              2.1

            	
              Normal Retirement
      Benefit.  Upon Separation from Service after attaining
      Normal Retirement Age, the Bank shall distribute to the Executive the
      benefit described in this Section 2.1 in lieu of any other benefit under
      this Article.

            

    

    

    
      	
            	
              2.1.1

            	
              Amount of
      Benefit.  The benefit under this Section 2.1 is an
      Accrual Balance needed to support an annual payment for fifteen (15) years
      of Sixty Thousand Dollars ($60,000) beginning at Normal Retirement
      Age.  For every Plan Year or portion thereof from Normal
      Retirement Age until Separation from Service, the Accrual Balance shall be
      increased by the Discount Rate.

            

    

    

    
      	
            	
              2.1.2

            	
              Distribution of
      Benefit.  The Bank shall distribute the benefit to the
      Executive in one hundred eighty (180) equal monthly installments
      commencing on the first day of the month following Separation of
      Service.

            

    

    

    
      	
              2.2

            	
              Resignation.  If
      Executive resigns resulting in a voluntary Separation from Service, the
      Bank shall distribute to the Executive the benefit described in this
      Section 2.2 in lieu of any other benefit under this
    Article.

            

    

    

    
      	
            	
              2.2.1

            	
              Amount of
      Benefit.  The benefit under this Section 2.2 is the one
      hundred percent (100%) of the Accrual Balance determined as of the end of
      the month preceding Separation from
Service.

            

    

    

    
      	
            	
              2.2.2

            	
              Distribution of
      Benefit.  The Bank shall distribute the benefit to the
      Executive in thirty-six (36) equal monthly installments commencing within
      sixty (60) days following Separation from
  Service.

            

    

    

    
      	
              2.3

            	
              Early Termination
      Benefit.  If Early Termination occurs, the Bank shall
      distribute to the Executive the benefit described in this Section 2.3 in
      lieu of any other benefit under this
Article.

            

    

    

    
      	
            	
              2.3.1

            	
              Amount of
      Benefit.  The benefit under this Section 2.3 is the
      present value of one hundred percent (100%) of the Normal Retirement
      Benefit amount described in Section 2.1.1, computed using the actuarial
      factors that would be used to compute the present value of benefits under
      § 280G of the Code.

            

    

    

    
      	
            	
              2.3.2

            	
              Distribution of
      Benefit.  The Bank shall distribute the benefit to the
      Executive in thirty-six (36) equal monthly installments commencing within
      sixty (60) days following Separation from
  Service.

            

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    
      	
              2.4

            	
              Disability
      Benefit.  If the
      Executive experiences a Disability prior to Normal Retirement Age, the
      Bank shall distribute to the Executive the benefit described in this
      Section 2.3 in lieu of any other benefit under this
    Article.

            

    

    

    
      	
            	
              2.4.1

            	
              Amount of
      Benefit.  The
      benefit under this Section 2.3 is one hundred percent (100%) of the
      Accrual Balance determined as of the end of the month preceding such
      Disability.

            

    

    

    
      	
            	
              2.4.2

            	
              Distribution of
      Benefit.  The Bank shall distribute the benefit to the
      Executive in one hundred eighty (180) equal monthly installments
      commencing on the first  day of the month following
      determination of Disability.

            

    

    

    
      	
              2.5

            	
              Change in Control
      Benefit.  If a Change in Control occurs followed within
      twenty-four (24) months by Separation from Service prior to Normal
      Retirement Age, the Bank shall distribute to the Executive the benefit
      described in this Section 2.4 in lieu of any other benefit under this
      Article.

            

    

    

    
      	
            	
              2.5.1

            	
              Amount of
      Benefit.  The
      benefit under this Section 2.4 is the present value of one hundred percent
      (100%) of the Normal Retirement Benefit amount described in Section 2.1.1,
      computed using the actuarial factors that would be used to compute the
      present value of benefits under § 280G of the
  Code.

            

    

    

    
      	
            	
              2.5.2

            	
              Distribution of
      Benefit.  The Bank shall
      distribute the benefit to the Executive in a lump sum within sixty (60)
      days following Separation from
Service.

            

    

    

    
      	
            	
              2.5.3

            	
              Parachute
      Payments.  Notwithstanding any provision of this
      Agreement to the contrary, and to the extent allowed by Code Section 409A,
      if any benefit payment under this Section 2.4 would be treated as an
      “excess parachute payment” under Code Section 280G, the Bank shall reduce
      such benefit payment to the extent necessary to avoid treating such
      benefit payment as an excess parachute
payment.

            

    

    

    
      	
              2.6

            	
              Restriction on
      Commencement of Distributions.  Notwithstanding any provision
      of this Agreement to the contrary, if the Executive is considered a
      Specified Employee, the provisions of this Section 2.5 shall govern all
      distributions hereunder.  If benefit distributions which would
      otherwise be made to the Executive due to Separation from Service are
      limited because the Executive is a Specified Employee, then such
      distributions shall not be made during the first six (6) months following
      Separation from Service.  Rather, any distribution which would
      otherwise be paid to the Executive during such period shall be accumulated
      and paid to the Executive in a lump sum on the first day of the seventh
      month following Separation from Service.  All subsequent
      distributions shall be paid in the manner
  specified.

            

    

    

    
      	
              2.7

            	
              Distributions Upon
      Taxation of Amounts Deferred. If, pursuant to Code Section 409A,
      the Federal Insurance Contributions Act or other state, local or foreign
      tax, the Executive becomes subject to tax on the amounts deferred
      hereunder, then the Bank may make a limited distribution to the Executive
      in a manner that conforms to the requirements of Code section
      409A.  Any such distribution will decrease the Executive’s
      benefits distributable under this
Agreement.

            

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    
      	
              2.8

            	
              Change in Form or
      Timing of Distributions.  For distribution of benefits under
      this Article 2, the Executive and the Bank may, subject to the terms of
      Section 8.1, amend this Agreement to delay the timing or change the form
      of distributions.  Any such
amendment:

            

    

    

    
      	
               
      

            	
              (a)

            	
              may
      not accelerate the time or schedule of any distribution, except as
      provided in Code Section 409A;

            

    

    
      	
               
      

            	
              (b)

            	
              must,
      for benefits distributable under Sections 2.1, 2.2 and 2.4, delay the
      commencement of distributions for a minimum of five (5) years from the
      date the first distribution was originally scheduled to be made; and

            

    

    
      	
               
      

            	
              (c)

            	
              must
      take effect not less than twelve (12) months after the amendment is
      made.

            

    

    

    Article
3

    Distribution
at Death

    

    
      	
              3.1

            	
              Death During Active
      Service.  If the Executive dies prior to Separation from
      Service, the Bank shall distribute to the Beneficiary the benefit
      described in this Section 3.1.  This benefit shall be
      distributed in lieu of any benefit under Article
  2.

            

    

    

    
      	
            	
              3.1.1

            	
              Amount of
      Benefit.  The benefit under this Section 3.1 is the
      Normal Retirement Benefit amount described in Section
    2.1.1.

            

    

    

    
      	
            	
              3.1.2

            	
              Distribution of
      Benefit.  The Bank shall distribute the annual benefit to
      the Beneficiary in twelve (12) equal monthly installments for fifteen (15)
      years commencing on the first day of the fourth month following the
      Executive’s death. The Beneficiary shall be required to provide the
      Executive’s death certificate to the
Bank.

            

    

     

    
      	
              3.2

            	
              Death During
      Distribution of a Benefit.  If the Executive dies after
      any benefit distributions have commenced under this Agreement but before
      receiving all such distributions, the Bank shall distribute to the
      Beneficiary the remaining benefits at the same time and in the same
      amounts they would have been distributed to the Executive had the
      Executive survived.

            

    

     

    
      	
              3.3

            	
              Death Before Benefit
      Distributions Commence. If the Executive
      is entitled to benefit distributions under this Agreement but dies prior
      to the date that commencement of said benefit distributions are scheduled
      to be made under this Agreement, the Bank shall distribute to the
      Beneficiary the same benefits to which the Executive was entitled prior to
      death, except that the benefit distributions shall be paid in the manner
      specified in Section 3.1.2 and shall commence on the first day of the
      fourth month following the Executive’s
death.

            

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    Article
4

    Beneficiaries

    

    
      	
              4.1

            	
              In
      General.  The Executive shall have the right, at any
      time, to designate a Beneficiary to receive any benefit distributions
      under this Agreement upon the death of the Executive.  The
      Beneficiary designated under this Agreement may be the same as or
      different from the beneficiary designated under any other plan of the Bank
      in which the Executive
participates.

            

    

    

    
      	
              4.2

            	
              Designation.  The
      Executive shall designate a Beneficiary by completing and signing the
      Beneficiary Designation Form and delivering it to the Plan Administrator
      or its designated agent.  If the Executive names someone other
      than the Executive’s spouse as a Beneficiary, the Plan Administrator may,
      in its sole discretion, determine that spousal consent is required to be
      provided in a form designated by the Plan Administrator, executed by the
      Executive’s spouse and returned to the Plan Administrator.  The
      Executive's beneficiary designation shall be deemed automatically revoked
      if the Beneficiary predeceases the Executive or if the Executive names a
      spouse as Beneficiary and the marriage is subsequently
      dissolved.  The Executive shall have the right to change a
      Beneficiary by completing, signing and otherwise complying with the terms
      of the Beneficiary Designation Form and the Plan Administrator’s rules and
      procedures.  Upon the acceptance by the Plan Administrator of a
      new Beneficiary Designation Form, all Beneficiary designations previously
      filed shall be cancelled.  The Plan Administrator shall be
      entitled to rely on the last Beneficiary Designation Form filed by the
      Executive and accepted by the Plan Administrator prior to the Executive’s
      death.

            

    

    

    
      	
              4.3

            	
              Acknowledgment.  No
      designation or change in designation of a Beneficiary shall be effective
      until received, accepted and acknowledged in writing by the Plan
      Administrator or its designated
agent.

            

    

    

    
      	
              4.4

            	
              No Beneficiary
      Designation.  If the Executive dies without a valid
      beneficiary designation, or if all designated Beneficiaries predecease the
      Executive, then the Executive’s spouse shall be the designated
      Beneficiary.  If the Executive has no surviving spouse, any
      benefit shall be paid to the Executive's
estate.

            

    

    

    
      	
              4.5

            	
              Facility of
      Distribution.  If the Plan Administrator determines in
      its discretion that a benefit is to be distributed to a minor, to a person
      declared incompetent or to a person incapable of handling the disposition
      of that person’s property, the Plan Administrator may direct distribution
      of such benefit to the guardian, legal representative or person having the
      care or custody of such minor, incompetent person or incapable
      person.  The Plan Administrator may require proof of
      incompetence, minority or guardianship as it may deem appropriate prior to
      distribution of the benefit.  Any distribution of a benefit
      shall be a distribution for the account of the Executive and the
      Beneficiary, as the case may be, and shall completely discharge any
      liability under this Agreement for such distribution
    amount.

            

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    Article
5

    General
Limitations

    

    
      	
              5.1

            	
              Termination for
      Cause.  Notwithstanding any provision of this Agreement
      to the contrary, the Bank shall not distribute any benefit under this
      Agreement if the Executive’s employment with the Bank is terminated by the
      Bank or an applicable regulator due to a Termination for
      Cause.

            

    

    

    
      	
              5.2

            	
              Suicide or
      Misstatement.  No benefit shall be distributed if the
      Executive commits suicide within two (2) years after the Effective Date,
      or if an insurance company which issued a life insurance policy covering
      the Executive and owned by the Bank denies coverage (i) for material
      misstatements of fact made by the Executive on an application for such
      life insurance, or (ii) for any other
reason.

            

    

    

    
      	
              5.3

            	
              Removal. Notwithstanding
      any provision of this Agreement to the contrary, the Bank shall not
      distribute any benefit under this Agreement if the Executive is subject to
      a final removal or prohibition order issued by an appropriate federal
      banking agency pursuant to Section 8(e) of the Federal Deposit Insurance
      Act.  Notwithstanding anything herein to the contrary, any
      payments made to the Executive pursuant to this Agreement, or otherwise,
      shall be subject to and conditioned upon compliance with 12 U.S.C. 1828
      and FDIC Regulation 12 CFR Part 359, Golden Parachute Indemnification
      Payments and any other regulations or guidance promulgated
      thereunder.

            

    

    

    Article
6

    Administration
of Agreement

    

    
      	
              6.1

            	
              Plan Administrator
      Duties.  The Plan Administrator shall administer this
      Agreement according to its express terms and shall also have the
      discretion and authority to (i) make, amend, interpret and enforce all
      appropriate rules and regulations for the administration of this Agreement
      and (ii) decide or resolve any and all questions, including
      interpretations of this Agreement, as may arise in connection with this
      Agreement to the extent the exercise of such discretion and authority does
      not conflict with Code Section
409A.

            

    

    

    
      	
              6.2

            	
              Agents.  In
      the administration of this Agreement, the Plan Administrator may employ
      agents and delegate to them such administrative duties as the Plan
      Administrator sees fit, including acting through a duly appointed
      representative, and may from time to time consult with counsel who may be
      counsel to the Bank.

            

    

    

    
      	
              6.3

            	
              Binding Effect of
      Decisions.  Any decision or action of the Plan
      Administrator with respect to any question arising out of or in connection
      with the administration, interpretation or application of this Agreement
      and the rules and regulations promulgated hereunder shall be final and
      conclusive and binding upon all persons having any interest in this
      Agreement.

            

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
      	
              6.4

            	
              Indemnity of Plan
      Administrator.  The Bank shall indemnify and hold
      harmless the Plan Administrator against any and all claims, losses,
      damages, expenses or liabilities arising from any action or failure to act
      with respect to this Agreement, except in the case of willful misconduct
      by the Plan Administrator.

            

    

    

    
      	
              6.5

            	
              Bank
      Information.  To enable the Plan Administrator to perform
      its functions, the Bank shall supply full and timely information to the
      Plan Administrator on all matters relating to the date and circumstances
      of the Executive’s death, Disability or Separation from Service, and such
      other pertinent information as the Plan Administrator may reasonably
      require.

            

    

    

    
      	
              6.6

            	
              Annual
      Statement. The Plan Administrator shall provide to the Executive,
      within one hundred twenty (120) days after the end of each Plan Year, a
      statement setting forth the benefits to be distributed under this
      Agreement.

            

    

    

    Article
7

    Claims
And Review Procedures

    

    
      	
              7.1

            	
              Claims
      Procedure.  An Executive or Beneficiary (“claimant”) who
      has not received benefits under this Agreement that he or she believes
      should be distributed shall make a claim for such benefits as
      follows:

            

    

    

    
      	
            	
              7.1.1

            	
              Initiation – Written
      Claim.  The claimant initiates a claim by submitting to
      the Plan Administrator a written claim for the benefits.  If
      such a claim relates to the contents of a notice received by the claimant,
      the claim must be made within sixty (60) days after such notice was
      received by the claimant.  All other claims must be made within
      one hundred eighty (180) days of the date on which the event that
      caused the claim to arise occurred.  The claim must state with
      particularity the determination desired by the
  claimant.

            

    

     

    
      	
            	
              7.1.2

            	
              Timing of Plan
      Administrator Response.  The Plan
      Administrator shall respond to such claimant within ninety (90) days after
      receiving the claim.  If the Plan Administrator determines that
      special circumstances require additional time for processing the claim,
      the Plan Administrator can extend the response period by an additional
      ninety (90) days by notifying the claimant in writing, prior to the end of
      the initial ninety (90) day period, that an additional period is
      required.  The notice of extension must set forth the special
      circumstances and the date by which the Plan Administrator expects to
      render its decision.

            

    

    

    
      	
            	
              7.1.3

            	
              Notice of
      Decision.  If the Plan Administrator denies part or all
      of the claim, the Plan Administrator shall notify the claimant in writing
      of such denial.  The Plan Administrator shall write the
      notification in a manner calculated to be understood by the
      claimant.  The notification shall set
  forth:

            

    

    

    
      	
               
      

            	
              (a)

            	
              The
      specific reasons for the
denial;

            

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    
      	
               
      

            	
              (b)

            	
              A
      reference to the specific provisions of this Agreement on which the denial
      is based;

            

    

    
      	
               
      

            	
              (c)

            	
              A
      description of any additional information or material necessary for the
      claimant to perfect the claim and an explanation of why it is
      needed;

            

    

    
      	
               
      

            	
              (d)

            	
              An
      explanation of this Agreement’s review procedures and the time limits
      applicable to such procedures; and

            

    

    
      	
               
      

            	
              (e)

            	
              A
      statement of the claimant’s right to bring a civil action under ERISA
      Section 502(a) following an adverse benefit determination on
      review.

            

    

    

    
      	
              7.2

            	
              Review
      Procedure.  If the Plan Administrator denies part or all
      of the claim, the claimant shall have the opportunity for a full and fair
      review by the Plan Administrator of the denial as
  follows:

            

    

    

    
      	
            	
              7.2.1

            	
              Initiation – Written
      Request.  To initiate the review, the claimant, within
      sixty (60) days after receiving the Plan Administrator’s notice of denial,
      must file with the Plan Administrator a written request for
      review.

            

    

    

    
      	
            	
              7.2.2

            	
              Additional Submissions
      – Information Access.  The claimant shall then have the
      opportunity to submit written comments, documents, records and other
      information relating to the claim.  The Plan Administrator shall
      also provide the claimant, upon request and free of charge, reasonable
      access to, and copies of, all documents, records and other information
      relevant (as defined in applicable ERISA regulations) to the claimant’s
      claim for benefits.

            

    

    

    
      	
            	
              7.2.3

            	
              Considerations on
      Review.  In considering the review, the Plan
      Administrator shall take into account all materials and information the
      claimant submits relating to the claim, without regard to whether such
      information was submitted or considered in the initial benefit
      determination.

            

    

    

    
      	
            	
              7.2.4

            	
              Timing of Plan
      Administrator Response.  The Plan Administrator shall
      respond in writing to such claimant within sixty (60) days after receiving
      the request for review.  If the Plan Administrator determines
      that special circumstances require additional time for processing the
      claim, the Plan Administrator can extend the response period by an
      additional sixty (60) days by notifying the claimant in writing, prior to
      the end of the initial sixty (60) day period, that an additional period is
      required.  The notice of extension must set forth the special
      circumstances and the date by which the Plan Administrator expects to
      render its decision.

            

    

    

    
      	
            	
              7.2.5

            	
              Notice of
      Decision.  The Plan Administrator shall notify the
      claimant in writing of its decision on review.  The Plan
      Administrator shall write the notification in a manner calculated to be
      understood by the claimant.  The notification shall set
      forth:

            

    

    

    
      	
               
      

            	
              (a)

            	
              The
      specific reasons for the
denial;

            

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    
      	
               
      

            	
              (b)

            	
              A
      reference to the specific provisions of this Agreement on which the denial
      is based;

            

    

    
      	
               
      

            	
              (c)

            	
              A
      statement that the claimant is entitled to receive, upon request and free
      of charge, reasonable access to, and copies of, all documents, records and
      other information relevant (as defined in applicable ERISA regulations) to
      the claimant’s claim for benefits;
and

            

    

    
      	
               
      

            	
              (d)

            	
              A
      statement of the claimant’s right to bring a civil action under ERISA
      Section 502(a).

            

    

    

    Article
8

    Amendments
and Termination

    

    
      	
              8.1

            	
              Amendments.  This
      Agreement may be amended only by a written agreement signed by the Bank
      and the Executive.  However, the Bank may unilaterally amend
      this Agreement to conform with written directives to the Bank from its
      auditors or banking regulators or to comply with legislative changes or
      tax law, including without limitation Code Section
  409A.

            

    

    

    
      	
              8.2

            	
              Plan Termination
      Generally.  This Agreement may be terminated only by a
      written agreement signed by the Bank and the Executive.  The
      benefit shall be the Accrual Balance as of the date this Agreement is
      terminated.  Except as provided in Section 8.3, the termination
      of this Agreement shall not cause a distribution of benefits under this
      Agreement.  Rather, upon such termination benefit distributions
      will be made at the earliest distribution event permitted under Article 2
      or Article 3.

            

    

    

    
      	
              8.3

            	
              Plan Terminations
      Under Code Section 409A.  Notwithstanding anything to the
      contrary in Section 8.2, if the Bank terminates this Agreement in the
      following circumstances:

            

    

    

    
      	
               
      

            	
              (a)

            	
              Within
      thirty (30) days before or twelve (12) months after a Change in Control,
      provided that all distributions are made no later than twelve (12) months
      following such termination of this Agreement and further provided that
      all the Bank's arrangements which would be aggregated under
      Treasury Regulations Section 1.409A-1(c)(2) are terminated and liquidated
      so the Executive and all participants in those arrangements are required
      to receive all amounts of compensation deferred under the terminated
      arrangements within twelve (12) months of such
  termination;

            

    

    
      	
               
      

            	
              (b)

            	
              Upon
      the Bank’s dissolution or with the approval of a bankruptcy court provided
      that the amounts deferred under this Agreement are included in the
      Executive's gross income in the latest of (i) the calendar year in which
      this Agreement terminates; (ii) the calendar year in which the amount is
      no longer subject to a substantial risk of forfeiture; or (iii) the first
      calendar year in which the distribution is administratively practical;
      or

            

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
      	
               
      

            	
              (c)

            	
              Upon
      the Bank’s termination of this and all other arrangements that would be
      aggregated with this Agreement pursuant to Treasury Regulations Section
      1.409A-1(c) if the Executive participated in such arrangements (“Similar
      Arrangements”), provided that (i) the termination and liquidation does not
      occur proximate to a downturn in the financial health of the Bank, (ii)
      all termination distributions are made no earlier than twelve (12) months
      and no later than twenty-four (24) months following such termination, and
      (iii) the Bank does not adopt any new arrangement that would be a Similar
      Arrangement for a minimum of three (3) years following the date the Bank
      takes all necessary action to irrevocably terminate and liquidate the
      Agreement;

            

    

    

    the Bank
may distribute the Accrual Balance, determined as of the date of the termination
of this Agreement, to the Executive in a lump sum subject to the above
terms.

    

    Article
9

    Miscellaneous

    

    
      	
              9.1

            	
              Binding
      Effect.  This Agreement shall bind the Executive and the
      Bank and their beneficiaries, survivors, executors, administrators and
      transferees.

            

    

    

    
      	
              9.2

            	
              No Guarantee of
      Employment.  This Agreement is not a contract for
      employment.  It does not give the Executive the right to remain
      as an employee of the Bank nor interfere with the Bank's right to
      discharge the Executive.  It does not require the Executive to
      remain an employee nor interfere with the Executive's right to terminate
      employment at any time.

            

    

    

    
      	
              9.3

            	
              Non-Transferability.  Benefits
      under this Agreement cannot be sold, transferred, assigned, pledged,
      attached or encumbered in any
manner.

            

    

    

    
      	
              9.4

            	
              Tax Withholding and
      Reporting.  The Bank shall withhold any taxes that are
      required to be withheld, including but not limited to taxes owed under
      Code Section 409A from the benefits provided under this
      Agreement.  The Executive acknowledges that the Bank’s sole
      liability regarding taxes is to forward any amounts withheld to the
      appropriate taxing authorities.  The Bank shall satisfy all
      applicable reporting requirements, including those under Code Section
      409A.

            

    

    

    
      	
              9.5

            	
              Applicable
      Law.  This Agreement and all rights hereunder shall be
      governed by the laws of the State of Indiana, except to the extent
      preempted by the laws of the United States of
  America.

            

    

    

    
      	
              9.6

            	
              Unfunded
      Arrangement.  The Executive and the Beneficiary are
      general unsecured creditors of the Bank for the distribution of benefits
      under this Agreement.  The benefits represent the mere promise
      by the Bank to distribute such benefits.  The rights to benefits
      are not subject in any manner to anticipation, alienation, sale, transfer,
      assignment, pledge, encumbrance, attachment or garnishment by
      creditors.  Any insurance on the Executive's life or other
      informal funding asset is a general asset of the Bank to which the
      Executive and Beneficiary have no preferred or secured
    claim.

            

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
      	
              9.7

            	
              Reorganization. The Bank shall
      not merge or consolidate into or with another bank, or reorganize, or sell
      substantially all of its assets to another bank, firm or person unless
      such succeeding or continuing bank, firm or person agrees to assume and
      discharge the obligations of the Bank under this
      Agreement.  Upon the occurrence of such an event, the term
      “Bank” as used in this Agreement shall be deemed to refer to the successor
      or survivor entity.

            

    

    

    
      	
              9.8

            	
              Entire
      Agreement. This Agreement
      constitutes the entire agreement between the Bank and the Executive as to
      the subject matter hereof.  No rights are granted to the
      Executive by virtue of this Agreement other than those specifically set
      forth herein.

            

    

    

    
      	
              9.9

            	
              Interpretation.  Wherever
      the fulfillment of the intent and purpose of this Agreement requires and
      the context will permit, the use of the masculine gender includes the
      feminine and use of the singular includes the
  plural.

            

    

    

    
      	
              9.10

            	
              Alternative
      Action.  In the event it shall become impossible for the
      Bank or the Plan Administrator to perform any act required by this
      Agreement due to regulatory or other constraints, the Bank or Plan
      Administrator may perform such alternative act as most nearly carries out
      the intent and purpose of this Agreement and is in the best interests of
      the Bank, provided that such alternative act does not violate Code Section
      409A.

            

    

    

    
      	
              9.11

            	
              Headings.  Article
      and section headings are for convenient reference only and shall not
      control or affect the meaning or construction of any provision
      herein.

            

    

    

    
      	
              9.12

            	
              Validity.  If
      any provision of this Agreement shall be illegal or invalid for any
      reason, said illegality or invalidity shall not affect the remaining parts
      hereof, but this Agreement shall be construed and enforced as if such
      illegal or invalid provision had never been included
    herein.

            

    

    

    
      	
              9.13

            	
              Notice.  Any
      notice or filing required or permitted to be given to the Bank or Plan
      Administrator under this Agreement shall be sufficient if in writing and
      hand-delivered or sent by registered or certified mail to the address
      below:

            

    

     

    
      
        	
                MFB
      Financial

              
	
                4100
      Edison Lakes Parkway, Suite 300

              
	
                P.O.
      Box 528

              
	
                Mishawaka,
      IN  46546-0528

              

      

    

     

    Such
notice shall be deemed given as of the date of delivery or, if delivery is made
by mail, as of the date shown on the postmark on the receipt for registration or
certification.

    

    Any
notice or filing required or permitted to be given to the Executive under this
Agreement shall be sufficient if in writing and hand-delivered or sent by mail
to the last known address of the Executive.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
      	
              9.14

            	
              Deduction Limitation
      on Benefit Payments.  If the Bank reasonably anticipates
      that the Bank’s deduction with respect to any distribution under this
      Agreement would be limited or eliminated by application of Code Section
      162(m), then to the extent deemed necessary by the Bank to ensure that the
      entire amount of any distribution from this Agreement is deductible, the
      Bank may delay payment of any amount that would otherwise be distributed
      under this Agreement.  The delayed amounts shall be distributed
      to the Executive (or the Beneficiary in the event of the Executive's
      death) at the earliest date the Bank reasonably anticipates that the
      deduction of the payment of the amount will not be limited or eliminated
      by application of Code Section
162(m).

            

    

    

    
      	
              9.15

            	
              Compliance with
      Section 409A.  This Agreement shall be interpreted and
      administered consistent with Code Section
409A.

            

    

    

    IN
WITNESS WHEREOF, the Executive and a duly authorized representative of the Bank
have signed this Agreement.

    

    
      
        
          
            	
                    EXECUTIVE:

                  	 
      	
                    MFB
      FINANCIAL

                  
	 
      	 
      	 
      
	 
      	 
      	
                    By:

                  	 
      
	
                    CHARLES
      J. VIATER

                  	 
      	
                    Title:

                  	
                    DONALD
      R. KYLE, Executive

                  
	 
      	 
      	 
      	
                    Vice
      President and Chief Operating
Officer

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00156-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00156-of-00352.parquet"}]]