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UNITED\ue000 STATES
SECURITIES\ue000 AND\ue000 EXCHANGE\ue000 COMMISSION
Washington,\ue000 D.C.\ue000 20549
FORM\ue000 8-K

CURRENT\ue000 REPORT
Pursuant\ue000 to\ue000 Section\ue000 13\ue000 or\ue000 15(d)\ue000 of\ue000 the
Securities\ue000 Exchange\ue000 Act\ue000 of\ue000 1934

Date\ue000 of\ue000 Report\ue000 (Date\ue000 of\ue000 earliest\ue000 event\ue000 reported):\ue000 February\ue000 17,\ue000 2009
FIRST\ue000 MERCHANTS\ue000 CORPORATION
FIRST\ue000 MERCHANTS\ue000 CORPORATION
(Exact\ue000 name\ue000 of\ue000 Registrant\ue000 as\ue000 specified\ue000 in\ue000 its\ue000 charter)
\ue000
\ue000
\ue000
\ue000
\ue000
Indiana
\ue000
0-17071
\ue000
35-1544218
\ue000
\ue000
\ue000
\ue000
\ue000
(State\ue000 or\ue000 other\ue000 jurisdiction\ue000 of
incorporation)
\ue000
(Commission\ue000 File\ue000 Number)
\ue000
(IRS\ue000 Employer\ue000 Identification
No.)
200\ue000 East\ue000 Jackson\ue000 Street
P.O.\ue000 Box\ue000 792
Muncie,\ue000 Indiana\ue000 47305-2814
(Address\ue000 of\ue000 Principal\ue000 Executive\ue000 Offices,\ue000 including\ue000 Zip\ue000 Code)
(765)\ue000 747-1500
(Registrant\u2019s\ue000 Telephone\ue000 Number,\ue000 Including\ue000 Area\ue000 Code)
Not\ue000 Applicable
(Former\ue000 name\ue000 or\ue000 former\ue000 address,\ue000 if\ue000 changed\ue000 since\ue000 last\ue000 report)
\ue000
Check\ue000 the\ue000 appropriate\ue000 box\ue000 below\ue000 if\ue000 the\ue000 Form\ue000 8-K\ue000 filing\ue000 is\ue000 intended\ue000 to\ue000 simultaneously\ue000 satisfy\ue000 the\ue000 filing\ue000 obligation\ue000 of\ue000 the\ue000 registrant\ue000 under\ue000 any\ue000 of
the\ue000 following\ue000 provisions\ue000 (see\ue000 General\ue000 Instruction\ue000 A.2\ue000 below):

o\ue000 Written\ue000 communications\ue000 pursuant\ue000 to\ue000 Rule\ue000 425\ue000 under\ue000 the\ue000 Securities\ue000 Act
o\ue000 Soliciting\ue000 material\ue000 pursuant\ue000 to\ue000 Rule\ue000 14a-12\ue000 under\ue000 the\ue000 Exchange\ue000 Act
o\ue000 Pre-commencement\ue000 communications\ue000 pursuant\ue000 to\ue000 Rule\ue000 14d-2(b)\ue000 under\ue000 the\ue000 Exchange\ue000 Act
o\ue000 Pre-commencement\ue000 communications\ue000 pursuant\ue000 to\ue000 Rule\ue000 13e-4(c)\ue000 under\ue000 the\ue000 Exchange\ue000 Act

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\ue000
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ITEM\ue000 1.01.\ue000 ENTRY\ue000 INTO\ue000 A\ue000 MATERIAL\ue000 DEFINITIVE\ue000 AGREEMENT.
\ue000\ue000\ue000\ue000\ue000On\ue000 February\ue000 20,\ue000 2009,\ue000 First\ue000 Merchants\ue000 Corporation\ue000 (the\ue000 \u201cCompany\u201d)\ue000 entered\ue000 into\ue000 a\ue000 Letter\ue000 Agreement\ue000 with\ue000 the\ue000 United\ue000 States\ue000 Department\ue000 of

the\ue000 Treasury\ue000 (the\ue000 \u201cTreasury\ue000 Department\u201d)\ue000 as\ue000 part\ue000 of\ue000 the\ue000 Treasury\ue000 Department\u2019s\ue000 Capital\ue000 Purchase\ue000 Program\ue000 under\ue000 the\ue000 Emergency\ue000 Economic
Stabilization\ue000 Act\ue000 of\ue000 2008\ue000 (\u201cEESA\u201d).\ue000 Pursuant\ue000 to\ue000 the\ue000 Securities\ue000 Purchase\ue000 Agreement-Standard\ue000 Terms\ue000 (\u201cSecurities\ue000 Purchase\ue000 Agreement\u201d)
attached\ue000 to\ue000 the\ue000 Letter\ue000 Agreement,\ue000 the\ue000 Company\ue000 issued\ue000 to\ue000 the\ue000 Treasury\ue000 Department\ue000 116,000\ue000 shares\ue000 of\ue000 Fixed\ue000 Rate\ue000 Cumulative\ue000 Perpetual
Preferred\ue000 Stock,\ue000 Series\ue000 A\ue000 (\u201cDesignated\ue000 Preferred\ue000 Stock\u201d),\ue000 having\ue000 a\ue000 liquidation\ue000 amount\ue000 per\ue000 share\ue000 of\ue000 $1,000,\ue000 for\ue000 a\ue000 total\ue000 price\ue000 of\ue000 $116,000,000\ue000 and\ue000 a
warrant\ue000 (\u201cWarrant\u201d)\ue000 to\ue000 purchase\ue000 up\ue000 to\ue000 991,453\ue000 shares\ue000 (\u201cWarrant\ue000 Shares\u201d)\ue000 of\ue000 the\ue000 Company\u2019s\ue000 common\ue000 stock,\ue000 at\ue000 an\ue000 initial\ue000 per\ue000 share\ue000 exercise\ue000 price
of\ue000 $17.55,\ue000 for\ue000 an\ue000 aggregate\ue000 purchase\ue000 price\ue000 of\ue000 $17,400,000.15.\ue000 The\ue000 Designated\ue000 Preferred\ue000 Stock\ue000 and\ue000 the\ue000 Warrant\ue000 were\ue000 issued\ue000 in\ue000 a\ue000 private
placement\ue000 exempt\ue000 from\ue000 registration\ue000 pursuant\ue000 to\ue000 Section\ue000 4(2)\ue000 of\ue000 the\ue000 Securities\ue000 Act\ue000 of\ue000 1933.

\ue000\ue000\ue000\ue000\ue000The\ue000 Designated\ue000 Preferred\ue000 Stock\ue000 pays\ue000 cumulative\ue000 dividends\ue000 at\ue000 a\ue000 rate\ue000 of\ue000 5%\ue000 per\ue000 year\ue000 for\ue000 the\ue000 first\ue000 five\ue000 years\ue000 and\ue000 9%\ue000 per\ue000 year\ue000 thereafter.

Pursuant\ue000 to\ue000 the\ue000 terms\ue000 of\ue000 the\ue000 recently\ue000 enacted\ue000 American\ue000 Recovery\ue000 and\ue000 Reinvestment\ue000 Act\ue000 of\ue000 2009\ue000 (the\ue000 \u201cARRA\u201d),\ue000 the\ue000 Company\ue000 may,\ue000 upon
consultation\ue000 with\ue000 its\ue000 primary\ue000 federal\ue000 regulator,\ue000 repay\ue000 the\ue000 amount\ue000 received\ue000 for\ue000 the\ue000 Designated\ue000 Preferred\ue000 Stock\ue000 at\ue000 any\ue000 time,\ue000 without\ue000 regard\ue000 to
whether\ue000 the\ue000 Company\ue000 has\ue000 replaced\ue000 such\ue000 funds\ue000 from\ue000 any\ue000 source\ue000 or\ue000 to\ue000 any\ue000 waiting\ue000 period.\ue000 Upon\ue000 repayment\ue000 of\ue000 the\ue000 amount\ue000 received\ue000 for\ue000 the
Designated\ue000 Preferred\ue000 Stock,\ue000 the\ue000 Treasury\ue000 Department\ue000 will\ue000 also\ue000 liquidate\ue000 the\ue000 associated\ue000 Warrant\ue000 in\ue000 accordance\ue000 with\ue000 the\ue000 ARRA\ue000 and\ue000 any\ue000 rules
and\ue000 regulations\ue000 thereunder.\ue000 The\ue000 restrictions\ue000 on\ue000 redemption\ue000 of\ue000 the\ue000 Designated\ue000 Preferred\ue000 Stock\ue000 are\ue000 described\ue000 in\ue000 Item\ue000 3.03\ue000 below.\ue000 The
Designated\ue000 Preferred\ue000 Stock\ue000 is\ue000 generally\ue000 non-voting.

\ue000\ue000\ue000\ue000\ue000Pursuant\ue000 to\ue000 the\ue000 Securities\ue000 Purchase\ue000 Agreement,\ue000 until\ue000 the\ue000 Department\ue000 of\ue000 Treasury\ue000 no\ue000 longer\ue000 owns\ue000 any\ue000 shares\ue000 of\ue000 the\ue000 Designated\ue000 Preferred
Stock,\ue000 the\ue000 Warrant\ue000 or\ue000 Warrant\ue000 Shares,\ue000 the\ue000 Company\u2019s\ue000 employee\ue000 benefit\ue000 plans\ue000 and\ue000 other\ue000 executive\ue000 compensation\ue000 arrangements\ue000 for\ue000 the\ue000 Senior

Executive\ue000 Officers\ue000 must\ue000 continue\ue000 to\ue000 comply\ue000 in\ue000 all\ue000 respects\ue000 with\ue000 Section\ue000 111\ue000 of\ue000 the\ue000 EESA,\ue000 as\ue000 amended\ue000 from\ue000 time\ue000 to\ue000 time.\ue000 The\ue000 Company\u2019s
\u201cSenior\ue000 Executive\ue000 Officers\u201d\ue000 are\ue000 Michael\ue000 C.\ue000 Rechin,\ue000 President\ue000 and\ue000 Chief\ue000 Executive\ue000 Officer;\ue000 Mark\ue000 K.\ue000 Hardwick,\ue000 Executive\ue000 Vice\ue000 President\ue000 and
Chief\ue000 Financial\ue000 Officer;\ue000 Robert\ue000 R.\ue000 Connors,\ue000 Senior\ue000 Vice\ue000 President\ue000 \u2013\ue000 Operations\ue000 and\ue000 Technology;\ue000 David\ue000 W.\ue000 Spade,\ue000 Senior\ue000 Vice\ue000 President\ue000 and
Chief\ue000 Credit\ue000 Officer;\ue000 Michael\ue000 J.\ue000 Stewart,\ue000 Executive\ue000 Vice\ue000 President\ue000 and\ue000 Chief\ue000 Banking\ue000 Officer.\ue000 As\ue000 described\ue000 in\ue000 Item\ue000 5.02\ue000 below,\ue000 each\ue000 of\ue000 the
Senior\ue000 Executive\ue000 Officers\ue000 entered\ue000 into\ue000 a\ue000 Senior\ue000 Executive\ue000 Officer\ue000 Letter\ue000 Agreement\ue000 and\ue000 Waiver\ue000 on\ue000 February\ue000 20,\ue000 2009.\ue000 In\ue000 addition,\ue000 on
February\ue000 20,\ue000 2009,\ue000 the\ue000 Company\ue000 entered\ue000 into\ue000 a\ue000 letter\ue000 agreement\ue000 with\ue000 the\ue000 Treasury\ue000 Department\ue000 (the\ue000 \u201cARRA\ue000 Letter\ue000 Agreement\u201d)\ue000 confirming\ue000 the
applicability\ue000 of\ue000 the\ue000 provisions\ue000 of\ue000 the\ue000 ARRA\ue000 relating\ue000 to\ue000 executive\ue000 compensation\ue000 to\ue000 the\ue000 Company.\ue000 A\ue000 copy\ue000 of\ue000 the\ue000 ARRA\ue000 Letter\ue000 Agreement\ue000 is
attached\ue000 as\ue000 Exhibit\ue000 10.4\ue000 hereto,\ue000 and\ue000 is\ue000 incorporated\ue000 into\ue000 this\ue000 report\ue000 by\ue000 reference.

\ue000\ue000\ue000\ue000\ue000As\ue000 part\ue000 of\ue000 its\ue000 purchase\ue000 of\ue000 the\ue000 Designated\ue000 Preferred\ue000 Stock,\ue000 the\ue000 Treasury\ue000 Department\ue000 received\ue000 a\ue000 Warrant\ue000 to\ue000 purchase\ue000 991,453\ue000 shares\ue000 of\ue000 the Company\u2019s\ue000 Common\ue000 Stock\ue000 at\ue000 an\ue000 initial\ue000 per\ue000 share\ue000 exercise\ue000 price\ue000 of\ue000 $17.55.\ue000 The\ue000 Warrant\ue000 provides\ue000 for\ue000 the\ue000 adjustment\ue000 of\ue000 the\ue000 exercise\ue000 price\ue000 and\ue000 the number\ue000 of\ue000 shares\ue000 of\ue000 the\ue000 Company\u2019s\ue000 common\ue000 stock\ue000 issuable\ue000 upon\ue000 exercise\ue000 pursuant\ue000 to\ue000 customary\ue000 anti-dilution\ue000 provisions,\ue000 such\ue000 as\ue000 upon\ue000 stock splits\ue000 or\ue000 distributions\ue000 of\ue000 securities\ue000 or\ue000 other\ue000 assets\ue000 to\ue000 holders\ue000 of\ue000 Company\ue000 Common\ue000 Stock,\ue000 and\ue000 upon\ue000 certain\ue000 issuances\ue000 of\ue000 the\ue000 Company

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Common\ue000 Stock\ue000 at\ue000 or\ue000 below\ue000 a\ue000 specified\ue000 price\ue000 relative\ue000 to\ue000 the\ue000 initial\ue000 exercise\ue000 price.\ue000 The\ue000 term\ue000 of\ue000 the\ue000 Warrant\ue000 is\ue000 ten\ue000 years.\ue000 If\ue000 the\ue000 Company\ue000 completes one\ue000 or\ue000 more\ue000 Qualified\ue000 Equity\ue000 Offerings\ue000 on\ue000 or\ue000 prior\ue000 to\ue000 December\ue000 31,\ue000 2009\ue000 that\ue000 result\ue000 in\ue000 the\ue000 Company\ue000 receiving\ue000 aggregate\ue000 gross\ue000 proceeds\ue000 equal to\ue000 at\ue000 least\ue000 $116,000,000,\ue000 then\ue000 the\ue000 number\ue000 of\ue000 Warrant\ue000 Shares\ue000 will\ue000 be\ue000 reduced\ue000 by\ue000 50%\ue000 of\ue000 the\ue000 original\ue000 number\ue000 of\ue000 Warrant\ue000 Shares.\ue000 Pursuant\ue000 to\ue000 the Securities\ue000 Purchase\ue000 Agreement,\ue000 the\ue000 Treasury\ue000 Department\ue000 has\ue000 agreed\ue000 not\ue000 to\ue000 exercise\ue000 voting\ue000 power\ue000 with\ue000 respect\ue000 to\ue000 any\ue000 shares\ue000 of\ue000 Common Stock\ue000 issued\ue000 upon\ue000 exercise\ue000 of\ue000 the\ue000 Warrant.

\ue000\ue000\ue000\ue000\ue000The\ue000 foregoing\ue000 description\ue000 of\ue000 the\ue000 Securities\ue000 Purchase\ue000 Agreement,\ue000 the\ue000 Designated\ue000 Preferred\ue000 Stock,\ue000 the\ue000 Warrant,\ue000 the\ue000 Senior\ue000 Executive\ue000 Officer

Letter\ue000 Agreement,\ue000 the\ue000 Waiver\ue000 and\ue000 the\ue000 ARRA\ue000 Letter\ue000 Agreement\ue000 contained\ue000 herein\ue000 does\ue000 not\ue000 purport\ue000 to\ue000 be\ue000 complete\ue000 and\ue000 is\ue000 qualified\ue000 in\ue000 its
entirety\ue000 by\ue000 reference\ue000 to\ue000 the\ue000 full\ue000 text\ue000 of\ue000 the\ue000 Securities\ue000 Purchase\ue000 Agreement,\ue000 the\ue000 Warrant,\ue000 the\ue000 form\ue000 of\ue000 Senior\ue000 Executive\ue000 Officer\ue000 Letter\ue000 Agreement
and\ue000 the\ue000 form\ue000 of\ue000 Waiver\ue000 which\ue000 are\ue000 attached\ue000 hereto\ue000 as\ue000 Exhibits\ue000 10.1,\ue000 4.2,\ue000 10.2,\ue000 10.3\ue000 and\ue000 10.4\ue000 respectively,\ue000 and\ue000 are\ue000 incorporated\ue000 into\ue000 this\ue000 report\ue000 by

reference.
ITEM\ue000 3.02.\ue000 UNREGISTERED\ue000 SALES\ue000 OF\ue000 EQUITY\ue000 SECURITIES.
\ue000\ue000\ue000\ue000\ue000The\ue000 information\ue000 set\ue000 forth\ue000 above\ue000 under\ue000 \u201cItem\ue000 1.01.\ue000 Entry\ue000 into\ue000 a\ue000 Material\ue000 Definitive\ue000 Agreement\u201d\ue000 with\ue000 respect\ue000 to\ue000 the\ue000 issuance\ue000 of\ue000 Designated
Preferred\ue000 Stock\ue000 is\ue000 incorporated\ue000 by\ue000 reference\ue000 into\ue000 this\ue000 Item\ue000 3.02.
ITEM\ue000 3.03.\ue000 MATERIAL\ue000 MODIFICATION\ue000 TO\ue000 RIGHTS\ue000 OF\ue000 SECURITY\ue000 HOLDERS.

\ue000\ue000\ue000\ue000\ue000Prior\ue000 to\ue000 February\ue000 20,\ue000 2012,\ue000 unless\ue000 the\ue000 Company\ue000 has\ue000 redeemed\ue000 the\ue000 Designated\ue000 Preferred\ue000 Stock\ue000 or\ue000 the\ue000 Treasury\ue000 Department\ue000 has\ue000 transferred the\ue000 Designated\ue000 Preferred\ue000 Stock\ue000 to\ue000 a\ue000 third\ue000 party,\ue000 the\ue000 consent\ue000 of\ue000 the\ue000 Treasury\ue000 Department\ue000 will\ue000 be\ue000 required\ue000 for\ue000 the\ue000 Company\ue000 to\ue000 (i)\ue000 increase\ue000 its Common\ue000 Stock\ue000 dividend\ue000 or\ue000 (ii)\ue000 repurchase\ue000 the\ue000 Common\ue000 Stock\ue000 or\ue000 other\ue000 equity\ue000 or\ue000 capital\ue000 securities,\ue000 other\ue000 than\ue000 in\ue000 connection\ue000 with\ue000 benefit\ue000 plans consistent\ue000 with\ue000 past\ue000 practice\ue000 and\ue000 certain\ue000 other\ue000 circumstances\ue000 specified\ue000 in\ue000 the\ue000 Securities\ue000 Purchase\ue000 Agreement.

\ue000\ue000\ue000\ue000\ue000Furthermore,\ue000 under\ue000 the\ue000 Articles\ue000 of\ue000 Amendment\ue000 to\ue000 the\ue000 Company\u2019s\ue000 Articles\ue000 of\ue000 Incorporation\ue000 described\ue000 in\ue000 Item\ue000 5.03\ue000 of\ue000 this\ue000 report,\ue000 the Company\u2019s\ue000 ability\ue000 to\ue000 declare\ue000 or\ue000 pay\ue000 dividends\ue000 or\ue000 repurchase\ue000 its\ue000 Common\ue000 Stock\ue000 or\ue000 other\ue000 equity\ue000 or\ue000 capital\ue000 securities\ue000 will\ue000 be\ue000 subject\ue000 to restrictions\ue000 in\ue000 the\ue000 event\ue000 the\ue000 Company\ue000 fails\ue000 to\ue000 declare\ue000 or\ue000 pay\ue000 full\ue000 dividends\ue000 on\ue000 the\ue000 Designated\ue000 Preferred\ue000 Stock.

\ue000\ue000\ue000\ue000\ue000Pursuant\ue000 to\ue000 the\ue000 ARRA,\ue000 the\ue000 Company\ue000 may,\ue000 upon\ue000 consultation\ue000 with\ue000 its\ue000 primary\ue000 federal\ue000 regulator,\ue000 repay\ue000 the\ue000 amount\ue000 received\ue000 for\ue000 the

Designated\ue000 Preferred\ue000 Stock\ue000 at\ue000 any\ue000 time,\ue000 without\ue000 regard\ue000 to\ue000 whether\ue000 the\ue000 Company\ue000 has\ue000 replaced\ue000 such\ue000 funds\ue000 from\ue000 any\ue000 source\ue000 or\ue000 to\ue000 any\ue000 waiting
period.\ue000 Upon\ue000 repayment\ue000 of\ue000 the\ue000 amount\ue000 received\ue000 for\ue000 the\ue000 Designated\ue000 Preferred\ue000 Stock,\ue000 the\ue000 Treasury\ue000 Department\ue000 will\ue000 also\ue000 liquidate\ue000 the\ue000 associated
Warrant\ue000 in\ue000 accordance\ue000 with\ue000 the\ue000 ARRA\ue000 and\ue000 any\ue000 rules\ue000 and\ue000 regulations\ue000 thereunder.

ITEM\ue000 5.02.\ue000 DEPARTURE\ue000 OF\ue000 DIRECTORS\ue000 OR\ue000 CERTAIN\ue000 OFFICERS;\ue000 ELECTION\ue000 OF\ue000 DIRECTORS;\ue000 APPOINTMENT\ue000 OF\ue000 CERTAIN
OFFICERS;\ue000 COMPENSATORY\ue000 ARRANGEMENTS\ue000 OF\ue000 CERTAIN\ue000 OFFICERS.
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