Pocahontas Bancorp and the Pocahontas Bancorp Subsidiaries currently maintain insurance in amounts considered by Pocahontas Bancorp to be reasonable for their respective operations, and such insurance is similar in scope and coverage to that maintained by other businesses similarly engaged in a similar location, in accordance with good business practice. Neither Pocahontas Bancorp nor any Pocahontas Bancorp Subsidiary has received notice from any insurance carrier that (i) such insurance will be canceled or that coverage thereunder will be reduced or eliminated or (ii) premium costs with respect to such insurance will be substantially increased. There are presently no material claims pending under such policies of insurance and no notices have been given by Pocahontas Bancorp under such policies. All such insurance is valid and enforceable and in full force and effect, and within the last three years Pocahontas Bancorp has received each type of insurance coverage for which it has applied and during such periods has not been denied indemnification for any material claims submitted under any of its insurance policies.
Pocahontas Bancorp shall use its best efforts to cause the persons serving as officers and directors of NARK immediately prior to the Company Merger Effective Date to be covered for a period of six years from the Company Merger Effective Date by the directors' and officers' liability insurance policy maintained by NARK (provided that Pocahontas Bancorp may substitute therefor policies of at least the same coverage and amounts containing terms and conditions which are not less advantageous than such policy) with respect to acts or omissions occurring prior to the Company Merger Effective Date which were committed by such officers and directors in their capacity as such.
Pocahontas Bancorp and the Pocahontas Bancorp Subsidiaries hold all licenses, franchises, permits and authorizations necessary for the lawful conduct of their businesses under, and have complied in all material respects with, applicable laws, statutes, orders, rules or regulations of any federal, state or local governmental authority relating to them, other than where such failure to hold or such noncompliance will neither result in a limitation in any material respect on the conduct of their businesses nor otherwise have a Material Adverse Effect on Pocahontas Bancorp and its Subsidiaries taken as a whole.
