ATLANTIC COAST FINANCIAL CORPORATION (a Maryland-chartered stock corporation) Up to 2,300,000 Shares (Subject to Increase Up to 2,645,000 Shares) COMMON STOCK ($0.01 Par Value) Subscription Price $10.00 Per Share AGENCY AGREEMENT November 12, 2010
Exhibit 1.1
ATLANTIC COAST FINANCIAL CORPORATION
(a Maryland-chartered stock corporation)
Up to 2,300,000 Shares
(Subject to Increase Up to 2,645,000 Shares)
(a Maryland-chartered stock corporation)
Up to 2,300,000 Shares
(Subject to Increase Up to 2,645,000 Shares)
COMMON STOCK ($0.01 Par Value)
Subscription Price $10.00 Per Share
Subscription Price $10.00 Per Share
November 12, 2010
Xxxxxx, Xxxxxxxx & Company, Incorporated
000 Xxxx Xxxxxx, 0xx Xxxxx
Xxx Xxxx, Xxx Xxxx 00000
000 Xxxx Xxxxxx, 0xx Xxxxx
Xxx Xxxx, Xxx Xxxx 00000
Ladies and Gentlemen:
Atlantic Coast Federal Corporation, a federally-chartered stock corporation (the “Mid-Tier
Holding Company”), Atlantic Coast Financial Corporation, a Maryland corporation organized to be the
successor to the Mid-Tier Holding Company (the “Holding Company”), Atlantic Coast Federal, MHC, a
federally-chartered mutual holding company (the “MHC”) that owns 65.1% of the outstanding common
stock of the Mid-Tier Holding Company, and Atlantic Coast Bank, a federally-chartered stock savings
bank (the “Bank”) whose outstanding common stock is owned in its entirety by the Mid-Tier Holding
Company (collectively the Holding Company, Mid-Tier Holding Company, the MHC, and the Bank, the
“Primary Parties”), hereby confirm, jointly and severally, their agreement with Xxxxxx, Xxxxxxxx &
Company, Incorporated (“Stifel” or “Agent”), as follows:
Section 1. The Offering. The MHC, in accordance with the Plan of Conversion and
Reorganization initially adopted on June 16, 2010 (the “Plan”), intends to convert from a
federally-chartered mutual holding company form of organization to a stock holding company form of
organization (the “Conversion”) in accordance with the laws of the United States and the applicable
regulations of the Office of Thrift Supervision (the “OTS”) (collectively, the “Conversion
Regulations”). In connection with the Conversion, the Holding Company will offer shares of Common
Stock (as defined below) on a priority basis to (i) Eligible Account Holders; (ii) Employee Plans
of the Holding Company or Bank; (iii) Supplemental Eligible Account Holders; and (iv) Other Members
(all capitalized terms used in this Agreement and not defined in this Agreement shall have the
meanings set forth in the Plan).
Pursuant to the Plan, the Holding Company is offering a minimum of 1,700,000 shares and a
maximum of 2,300,000 shares of common stock, par value $0.01 per share (the “Common Stock”)
(subject to an increase up to 2,645,000 shares) (the “Offer Shares”), in the Subscription Offering,
and, if necessary, the Community Offering (collectively, the “Offering”). The Holding Company will
sell the Offer Shares in the Offering at $10.00 per share (the “Purchase Price”).
Pursuant to the Plan, the Holding Company will issue a minimum of 912,933 shares and a maximum
of 1,235,145 shares of its Common Stock (subject to increase up to 1,420,417 shares) (the “Exchange
Shares”) to existing public stockholders of the Mid-Tier Holding Company in exchange for their
existing shares of the Mid-Tier Holding Company (the “Exchange”) so that, upon completion of the
Offering and the Exchange, 100% of the outstanding shares of Common Stock of the Holding Company
will be publicly held, 100% of the outstanding shares of common stock of the Bank will be held by
the Holding Company, and the MHC and the Mid-Tier Holding Company will cease to exist.
The Offer Shares and the Exchange Shares may also be termed the “Shares.” If the number of
Shares is increased or decreased in accordance with the Plan, the term “Shares” shall mean such
greater or lesser number, where applicable.
Pursuant to the Plan, in the Subscription Offering, the Holding Company will offer the Offer
Shares, subject to the allocation procedures and purchase limitations set forth in the Plan, in
descending order of priority to: (1) Eligible Account Holders; (2) Employee Plans of the Holding
Company or the Bank; (3) Supplemental Eligible Account Holders; and (4) Other Members. The Holding
Company may offer the Offer Shares, if any, remaining after the Subscription Offering, in the
Community Offering on a priority basis to natural persons and trusts of natural persons residing
within the Florida counties of Clay, Duval, Flagler, Nassau and St. Xxxxx and the Georgia counties
of Chatham, Coffee and Xxxx, then to the Mid-Tier Holding Company’s public stockholders at the
Voting Record Date, and then to the general public. If a Community Offering is held, it may be held
at any time during or immediately after the Subscription Offering. In the Community Offering, the
Holding Company will pay a fee to any Financial Regulatory Industry Authority (“FINRA”) member firm
(including Stifel) whose representatives assist persons in the Community Offering and whose name is
entered on the stock order form accepted by the Holding Company (the “Assisting Brokers”).
It is acknowledged that the number of Offer Shares to be sold in the Offering may be increased
or decreased as described in the Prospectus (as hereinafter defined); that the purchase of the
Offer Shares in the Offering are subject to maximum and minimum purchase limitations as described
in the Plan and the Prospectus; and that the Holding Company may reject, in whole or in part, any
subscription received in the Community Offering.
The Holding Company has filed with the U.S. Securities and Exchange Commission (the
“Commission”) a Registration Statement on Form S-1 (File No. 333-167632) in order to register the
Shares under the Securities Act of 1933, as amended (the “1933 Act”), and the regulations
promulgated thereunder (the “1933 Act Regulations”), and has filed such amendments thereto as have
been required to the date hereof (the “Registration Statement”). The prospectus, as amended,
included in the Registration Statement at the time it initially became effective is hereinafter
called the “Prospectus,” except that if any prospectus is filed by the Holding Company pursuant to
Rule 424(b) or (c) of the 1933 Act Regulations differing from the prospectus included in the
Registration Statement at the time it initially becomes effective, the term “Prospectus” shall
refer to the prospectus filed pursuant to Rule 424(b) or (c) from and after the time said
prospectus is filed with the Commission and shall include any supplements and amendments thereto
from and after their dates of effectiveness or use, respectively.
2
In connection with the Conversion, the MHC filed with the OTS an application for conversion to
a stock company (together with any other required ancillary applications and/or notices and all
amendments or supplements thereto, the “Conversion Application”) as required by the OTS in
accordance with the Home Owners’ Loan Act, as amended (the “HOLA”), and 12 C.F.R. Parts 575 and
563b. The Holding Company also has filed with the OTS its application on Form H-(e)1-S (together
with other required ancillary applications and/or notices and all amendments or supplements
thereto, the “Holding Company Application”) to become a unitary savings and loan holding company
under the Conversion Regulations. Collectively, the Conversion Application and the Holding Company
Application may also be termed the “Applications.”
Concurrently with the execution of this Agreement, the Holding Company is delivering to the
Agent copies of the Prospectus dated November 12, 2010 to be used in the Offering.
Section 2. Appointment of Agent. Subject to the terms and conditions of this
Agreement, the Primary Parties hereby appoint Stifel to consult with, advise and assist the Primary
Parties in connection with the sale of the Offer Shares in the Offering.
On the basis of the representations and warranties of the Primary Parties contained in, and
subject to the terms and conditions of, this Agreement, Stifel accepts such appointment and agrees
to use its best efforts to assist the Primary Parties with the solicitation of subscriptions and
purchase orders for the Offer Shares and agrees to consult with and advise the Primary Parties as
to the matters set forth in Section 3 of the letter agreement, dated November 12, 2010 between the
MHC, the Mid-Tier Holding Company, the Bank and Stifel (the “Letter Agreement”) (a copy of which is
attached hereto as Exhibit A). It is acknowledged by the Primary Parties that the Agent
shall not be obligated to purchase any Offer Shares and shall not be obligated to take any action
that is inconsistent with any applicable law, regulation, decision or order. Except as set forth in
Section 13 hereof, the appointment of the Agent to provide services hereunder shall terminate upon
consummation of the Offering.
Section 2A. Right of First Refusal. The Holding Company hereby agrees that for a
period of twelve (12) months from the Closing of the Conversion, the Agent will have the right to
first refusal regarding any private or public capital raising transactions entered into by the
Holding Company (a “Capital Raising Transaction). If during this period the Holding Company
pursues a Capital Raising Transaction with the assistance of another financial advisor and in which
the Agent is not a participant, the Agent will receive from the Company a payment for the waiver or
termination of such right of first refusal, the amount of which will be negotiated at such time and
shall be in accordance with market and competitive practices at such time but in no event shall
exceed $170,000. If the Agent terminates this engagement or otherwise determines not to
participate in the Offering or a Capital Raising Transaction, then this right of first refusal will
be of no force and effect.
In the event of a Capital Raising Transaction, Stifel will serve as sole-book running manager
and be entitled to a minimum of sixty percent (60%) participation of the economics of the Capital
Raising Transaction. Subject to the foregoing and in consultation with Stifel, the Holding Company
will determine which FINRA member firms will (if any) serve as co-
3
managers of the Capital Raising Transaction or otherwise participate in any selling group and
the extent of their participation.
Section 3. Refund of Purchase Price. In the event that the Conversion is not
consummated for any reason, including but not limited to the inability to sell a minimum of
1,700,000 Offer Shares during the Offering (including any permitted extension thereof) or such
minimum number of Offer Shares as shall be established consistent with the Plan and the Conversion
Regulations, this Agreement shall terminate and any persons who have subscribed for or ordered any
of the Offer Shares shall have refunded promptly to them the full amount which has been received
from such person, together with interest, if applicable, as provided in the Prospectus. Upon
termination of this Agreement, neither the Agent nor the Primary Parties shall have any obligation
to the other except that (i) the Primary Parties shall remain liable for any amounts due pursuant
to Sections 4, 9, 11 and 12 hereof, unless the transaction is not consummated due to the breach by
the Agent of a warranty, representation or covenant; and (ii) the Agent shall remain liable for any
amount due pursuant to Sections 11 and 12 hereof, unless the transaction is not consummated due to
the breach by the Primary Parties of a warranty, representation or covenant.
Section 4. Fees. In addition to the expenses specified in Section 9 hereof, as
compensation for the Agent’s services under this Agreement, the Agent has received or will receive
the following fees from the Primary Parties:
(a) An advisory and administrative services fee of $50,000 shall be paid as follows to Stifel:
(i) $25,000 was paid upon execution of the Letter Agreement, and (ii) $25,000 was paid upon the
initial filing of the Registration Statement.
(b) A fee for sales of the Offer Shares in the Offering of one percent (1%) of the aggregate
dollar amount of the Offer Shares sold in the Subscription Offering and a fee for sales of Offer
Shares in the Offering of two percent (2%) of the aggregate dollar amount of the Offer Shares sold
in the Community Offering. No fee shall be payable in connection with the issuance of Exchange
Shares, or the sale of stock to the officers, directors and employees of the Primary Parties, or
immediate family of such persons (“Insiders”), including trusts of Insiders and the qualified and
non-qualified employee benefit plans of the Primary Parties or the Insiders. “Immediate family”
includes the spouse, parents, siblings and children who live in the same house as the officer,
director or employee. In no event, however, shall the fee payable under this Section 4(b) be less
than $150,000.
In addition to the fees owed by the Holding Company to the Agent pursuant to Sections 4(a) and
4(b) above, the Holding Company shall pay a fee to any Assisting Brokers. This fee shall be five
and one half percent (5.5%) of the aggregate purchase price of the Offer Shares sold by the
Assisting Brokers.
In the event that the Holding Company is required to resolicit subscribers for Offer Shares in
the Subscription Offering or the Community Offering and Stifel is required to provide significant
additional services in connection with such a resolicitation, the Primary Parties shall pay to
Stifel an additional amount not to exceed $50,000.
4
If this Agreement is terminated in accordance with the provisions of Sections 3, 10 or 14 and
the sale of the Offer Shares is not consummated, Stifel shall not be entitled to receive the fees
set forth in Sections 4(b), but Stifel will retain the fee for its conversion and proxy
solicitation advisory and administrative services already earned of $50,000 and the Primary Parties
will reimburse Stifel for its reasonable out-of-pocket expenses pursuant to Section 9.
Section 5. Closing. If: (a) the minimum number of Offer Shares permitted to be sold in
the Offering on the basis of the most recently updated Appraisal (as defined in Section 6(j)) is
subscribed for at or before the termination date of the Offering (which may be extended); and (b)
the other conditions (including those in Section 10) to the completion of the Conversion are
satisfied, the Holding Company agrees to issue the Offer Shares on the Closing Date (as hereinafter
defined) against payment therefor by the means authorized by the Plan and to deliver certificates
evidencing ownership of the Offer Shares or electronically credit the Offer Shares in such
authorized denominations and registrations directly to the purchasers thereof or as instructed as
promptly as practicable after the Closing Date. The closing (the “Closing”) shall be held at the
offices of Xxxx Xxxxxx Xxxxxxxx & Xxxxxx, P.C., Washington, D.C., or at such other place as shall
be agreed upon among the Primary Parties and the Agent, at 10:00 a.m., Eastern Time, on the
business day selected by the Primary Parties, which business day shall be no less than two (2)
business days following the giving of prior notice by the Holding Company to the Agent or at such
other time as shall be agreed upon by the Primary Parties and the Agent. At the Closing, the
Primary Parties shall deliver to the Agent by wire transfer in same-day funds the commissions, fees
and expenses owing to the Agent as set forth in Section 4 and Section 9 hereof and the opinions
required hereby and other documents deemed reasonably necessary for the Agent shall be executed and
delivered to effect the sale of the Offer Shares as contemplated hereby and pursuant to the terms
of the Prospectus. The hour and date upon which the Holding Company shall release the Shares for
delivery in accordance with the terms hereof is referred to herein as the “Closing Date.”
Stifel shall have no liability to any party for the records or other information provided by
the Primary Parties (or their agents) to Stifel for use in allocating the Shares. Subject to the
limitations of Section 11 hereof, the Primary Parties shall indemnify and hold harmless Stifel for
any liability arising out of the allocation of the Shares in accordance with (i) the Plan
generally, and (ii) the records or other information provided to Stifel (or its agents) by the
Primary Parties (or their agents).
Section 6. Representations and Warranties of the Primary Parties. The Primary Parties
jointly and severally represent and warrant to the Agent that:
(a) The MHC, the Mid-Tier Holding Company, the Holding Company and the Bank have all such
power, authority, authorizations, approvals and orders as may be required to enter into this
Agreement, and, as of the Closing Date, the MHC, the Mid-Tier Holding Company, the Holding Company
and the Bank will have all such power, authority, authorizations, approvals and orders as may be
required to carry out the provisions and conditions hereof and to issue and sell the Offer Shares
and to issue the Exchange Shares as provided herein and as described in the Prospectus. The
consummation of the Conversion, the execution, delivery and performance of this Agreement and the
Letter Agreement and the consummation of the transactions contemplated herein have been duly and
validly authorized by
5
all necessary corporate action on the part of the MHC, the Mid-Tier Holding Company, the
Holding Company and the Bank. This Agreement has been validly executed and delivered by the Primary
Parties, and is a valid, legal and binding obligation of the Primary Parties, in each case
enforceable in accordance with its terms, except to the extent, if any, that the provisions of
Sections 11 and 12 hereof may be unenforceable as against public policy, and except to the extent
that enforceability of this Agreement may be limited by bankruptcy laws, insolvency laws, or other
laws affecting the enforcement of creditors’ rights generally, or the rights of creditors of
savings institutions insured by the FDIC (including the laws relating to the rights of the
contracting parties to equitable remedies).
(b) The Registration Statement was declared effective by the Commission on November 12, 2010.
No stop order has been issued with respect to the Registration Statement. No proceedings related to
the Registration Statement have been initiated or, to the knowledge of the Primary Parties,
threatened by the Commission. At the time the Registration Statement, including the Prospectus
contained therein (including any amendment or supplement thereto), became effective, the
Registration Statement complied as to form in all material respects with the 1933 Act and the 1933
Act Regulations and the Registration Statement, including the Prospectus contained therein
(including any amendment or supplement thereto), any Blue Sky Application or any Sales Information
(as such terms are defined in Section 11 hereof) authorized by the Primary Parties for use in
connection with the Offering, did not contain an untrue statement of a material fact or omit to
state a material fact required to be stated therein or necessary to make the statements therein, in
light of the circumstances under which they were made, not misleading. At the time any Rule 424(b)
or (c) Prospectus was filed with the Commission and at the Closing Date referred to in Section 5,
the Registration Statement, including the Prospectus contained therein (including any amendment or
supplement thereto) and, when taken together with the Prospectus, any Blue Sky Application (if
applicable) or Sales Information (as defined below) authorized for use by any of the Primary
Parties in connection with the Offering, will not contain an untrue statement of a material fact or
omit to state a material fact required to be stated therein or necessary in order to make the
statements therein, in light of the circumstances under which they were made, not misleading;
provided, however, that the representations and warranties in this Section 6(b) shall not apply to
statements or omissions made in reliance upon and in conformity with written information furnished
to the Primary Parties by the Agent expressly regarding the Agent for use under the caption “The
Conversion Offering — Plan of Distribution; Selling Agent Compensation” or written statements or
omissions from any sales information or information filed pursuant to state securities or blue sky
laws or regulations regarding the Agent.
(c) At the time of filing the Registration Statement and at the date hereof, the Holding
Company was not, and is not, an ineligible issuer, as defined in Rule 405. At the time of the
filing of the Registration Statement and at the time of the use of any issuer free writing
prospectus, as defined in Rule 433(h), the Holding Company met the conditions required by Rules 164
and 433 for the use of a free writing prospectus. If required to be filed, the Holding Company has
filed any issuer free writing prospectus related to the Offer Shares at the time it is required to
be filed under Rule 433 and, if not required to be filed, will retain such free writing prospectus
in the Holding Company’s records pursuant to Rule 433(g) and if any issuer free writing prospectus
is used after the date hereof in connection with the offering of the Shares of the Holding Company
will file or retain such free writing prospectus as required by Rule 433.
6
(d) As of the Applicable Time, neither (i) the Issuer-Represented General Free Writing
Prospectus(es) issued at or prior to the Applicable Time and the Statutory Prospectus, all
considered together (collectively, the “General Disclosure Package”), nor (ii) any individual
Issuer-Represented Limited-Use Free Writing Prospectus, when considered together with the General
Disclosure Package, included any untrue statement of a material fact or omitted to state any
material fact necessary in order to make the statements therein, in the light of the circumstances
under which they were made, not misleading. The preceding sentence does not apply to statements in
or omissions from any Prospectus included in the Registration Statement relating to the Shares or
any Issuer-Represented Free Writing Prospectus based upon and in conformity with written
information furnished to the Holding Company by the Agent specifically for use therein. As used in
this paragraph and elsewhere in this Agreement:
(1) “Applicable Time” means each and every date when a potential purchaser
submitted a subscription or otherwise committed to purchase Shares.
(2) “Issuer-Represented Free Writing Prospectus” means any “issuer free writing
prospectus,” as defined in Rule 433(h), relating to the Shares that is required to
be filed with the Commission by the Holding Company or required to be filed with the
Commission. The term does not include any writing exempted from the definition of
prospectus pursuant to clause (a) of Section 2(a)(10) of the 1933 Act, without
regard to Rule 172 or Rule 173.
(3) “Issuer-Represented General Free Writing Prospectus” means any
Issuer-Represented Free Writing Prospectus that is intended for general distribution
to prospective investors.
(4) “Issuer-Represented Limited-Use Free Writing Prospectus” means any
Issuer-Represented Free Writing Prospectus that is not an Issuer-Represented General
Free Writing Prospectus. The term Issuer-Represented Limited-Use Free Writing
Prospectus also includes any “bona fide electronic road show,” as defined in Rule
433(h), that is made available without restriction pursuant to Rule 433(d)(8)(ii) or
otherwise, even though not required to be filed with the Commission.
(5) “Statutory Prospectus,” as of any time, means the Prospectus relating to
the Offer Shares that is included in the Registration Statement relating to the
Shares immediately prior to that time, including any document incorporated by
reference therein.
(e) Each Issuer-Represented Free Writing Prospectus, as of its date of first use and at all
subsequent times through the completion of the Offering and sale of the Offer Shares or until any
earlier date that the Holding Company notified or notifies the Agent (as described in the next
sentence), did not, does not and will not include any information that conflicted, conflicts or
will conflict with the information contained in the Registration Statement relating to the Shares,
including any document incorporated by reference therein that has not been superseded or modified.
If at any time following the date of first use of an Issuer-Represented Free Writing Prospectus
there occurred or occurs an event or development as a result of which
7
such Issuer-Represented Free Writing Prospectus conflicted or would conflict with the
information contained in the Registration Statement relating to the Shares or included or would
include an untrue statement of a material fact or omitted or would omit to state a material fact
necessary in order to make the statements therein, in the light of the circumstances prevailing at
that subsequent time, not misleading, the Holding Company has notified or will notify promptly the
Agent so that any use of such Issuer-Represented Free Writing Prospectus may cease until it is
amended or supplemented and the Holding Company has promptly amended or will promptly amend or
supplement such Issuer-Represented Free Writing Prospectus to eliminate or correct such conflict,
untrue statement or omission. The foregoing two sentences do not apply to statements in or
omissions from any Issuer-Represented Free Writing Prospectus based upon and in conformity with
written information furnished to the Holding Company by the Agent specifically for use therein.
(f) The Conversion Application, including the Prospectus, the proxy statement for the
solicitation of proxies from the Voting Members of the MHC for the special meeting to approve the
Plan (the “Members’ Proxy Statement”) and the proxy statement/prospectus for the solicitation of
proxies from the stockholders of the Mid-Tier Holding Company for the special meeting to approve
the Plan (the “Stockholders’ Proxy Statement”), was approved by the OTS on November 12, 2010 and
the Prospectus, Members’ Proxy Statement and Stockholders’ Proxy Statement have been authorized for
use by the OTS. At the time the Conversion Application, including the Prospectus, Members’ Proxy
Statement and Stockholders’ Proxy Statement contained therein (including any amendment or
supplement thereto), were approved and authorized for use by the OTS and at all times subsequent
thereto until the Closing Date, the Conversion Application, including the Prospectus, Members’
Proxy Statement and Stockholders’ Proxy Statement contained therein (including any amendment or
supplement thereto), complied and will comply as to form in all material respects with the
Conversion Regulations. At the time of the approvals by the OTS and at all times subsequent thereto
until the Closing Date, the Conversion Application, including the Prospectus, the Members’ Proxy
Statement and the Stockholders’ Proxy Statement, did not and will not include any untrue statement
of a material fact or omit to state any material fact required to be stated therein or necessary to
make the statements therein, in light of the circumstances under which they were made, not
misleading; provided, however, that representations or warranties in this subsection (f) shall not
apply to statements or omissions made in reliance upon and in conformity with written information
furnished to the Primary Parties by the Agent expressly regarding the Agent for use in the
Prospectus contained under the caption “The Conversion Offering — Plan of Distribution; Selling
Agent Compensation” or written statements or omissions from any sales information or information
filed pursuant to state securities or blue sky laws or regulations regarding the Agent.
(g) No order has been issued by the Commission, the OTS, or any other state or federal
regulatory authority, preventing or suspending the use of the Registration Statement or the
Prospectus and no action by or before any such government entity to revoke any approval,
authorization or order of effectiveness related to the Conversion is pending or, to the knowledge
of the Primary Parties, threatened.
(h) The Plan has been duly adopted by the Board of Directors of the MHC, the Mid-Tier Holding
Company, the Bank and the Holding Company. To the knowledge of the
8
Primary Parties, no person has sought to obtain review of the final action of the OTS in
approving the Plan, the Conversion Application or the Holding Company Application.
(i) The Holding Company Application was approved by the OTS on November 12, 2010. The Holding
Company Application did and will comply as to form in all material respects with all applicable
rules and regulations of the OTS (except as modified or waived by the OTS). At the time of the
approval and at all times subsequent thereto until the Closing Date, the Holding Company
Application (including any amendment or supplement thereto) did not and does not include any untrue
statement of a material fact or omit to state any material fact required to be stated therein or
necessary to make the statements therein, in light of the circumstances under which they were made,
not misleading; provided, however, that representations or warranties in this subsection (i) shall
not apply to statements or omissions made in reliance upon and in conformity with written
information furnished to the Primary Parties by the Agent expressly regarding the Agent for use in
the Holding Company Application.
(j) RP Financial, LC., which prepared the appraisal of the aggregate pro forma market value of
the Common Stock on which the Offering was based (the “Appraisal”), has advised the Primary Parties
in writing that it is independent with respect to each of the Primary Parties and the Primary
Parties believe RP Financial, LC. to be expert in preparing appraisals of savings institutions.
(k) (i) Xxxxx Xxxxxxx LLP, which certified the financial statements filed as part of the
Registration Statement and the Applications, has advised the Primary Parties that it is an
independent certified public accountant within the meaning of the Code of Ethics of the AICPA, and
Xxxxx Xxxxxxx LLP is, with respect to each of the Primary Parties, an independent certified public
accountant as required by the 1933 Act and the 1933 Act Regulations and the regulations of the
Public Company Accounting Oversight Board (the “PCAOB Regulations”).
(ii) McGladrey & Xxxxxx, LLP, the accountants who reviewed the unaudited consolidated
financial statements of the Mid-Tier Holding Company for the six-month period ended June 30, 2010
included in the Registration Statement have advised the Primary Parties that it is an independent
certified public accountant within the meaning of the Code of Ethics of the AICPA, and McGladrey &
Xxxxxx, LLP is, with respect to each of the Primary Parties, an independent certified public
accountant as required by the 1933 Act and the 1933 Act Regulations and PCAOB Regulations.
(l) The financial statements and the notes thereto that are included in the Registration
Statement and that are a part of the Prospectus present fairly the consolidated financial condition
of the Mid-Tier Holding Company and the Bank as of the dates indicated and the consolidated results
of operations and cash flows for the periods specified. The financial statements comply in all
material respects with the applicable accounting requirements of Title 12 of the Code of Federal
Regulations, Regulation S-X of the Commission and accounting principles generally accepted in the
United States (“GAAP”) applied on a consistent basis during the periods presented, except as
otherwise noted therein, and present fairly in all material respects the information required to be
stated therein. The other financial, statistical and pro forma information and related notes
included in the Prospectus present fairly the information shown therein on a basis consistent with
the audited and any unaudited financial statements
9
included in the Prospectus, and as to the pro forma adjustments, the adjustments made therein
have been properly and consistently applied on the basis described therein.
(m) Since the respective dates as of which information is given in the Registration Statement,
including the Prospectus, other than as disclosed therein: (i) there has not been any material
adverse change in the financial condition, results of operation, capital, properties, business
affairs or prospects of any of the Primary Parties or any direct or indirect wholly-owned or
partially-owned subsidiary of the Bank (each, a “Bank Subsidiary”) or the Primary Parties
considered as one enterprise, whether or not arising in the ordinary course of business; (ii) there
has not been any material change in total assets of the Primary Parties (including any subsidiary
of the Bank) on a consolidated basis, any material increase in the aggregate amount of loans past
due ninety (90) days or more, or any real estate acquired by foreclosure or loans characterized as
“in substance foreclosure;” (iii) none of the Primary Parties or any Bank Subsidiary have issued
any securities or incurred any liability or obligation for borrowings other than in the ordinary
course of business, except for shares issued upon the exercise of outstanding stock options; and
(iv) there have not been any material transactions entered into by any of the Primary Parties or
any Bank Subsidiary, other than those in the ordinary course of business. The capitalization,
liabilities, assets, properties and business of the Primary Parties and each Bank Subsidiary
conform in all material respects to the descriptions thereof contained in the Registration
Statement and the Prospectus and, none of the Primary Parties or subsidiaries of the Bank has any
material liabilities of any kind, contingent or otherwise, except as disclosed in the Registration
Statement and the Prospectus.
(n) The Holding Company is a stock corporation duly organized, validly existing and in good
standing under the laws of the State of Maryland, with corporate power and authority to own its
properties and to conduct its business as described in the Prospectus, and will be qualified to
transact business and will be in good standing in Maryland and in each jurisdiction in which the
conduct of business requires such qualification, unless the failure to qualify in one or more of
such jurisdictions would not have a material adverse effect on the financial condition, results of
operation, capital, properties, business affairs or prospects of the Primary Parties taken as a
whole (a “Material Adverse Effect”). As of the Closing Date, the Holding Company will have obtained
all licenses, permits and other governmental authorizations required for the conduct of its
business, except those that individually or in the aggregate would not have a Material Adverse
Effect; and as of the Closing Date, all such licenses, permits and governmental authorizations will
be in full force and effect, and the Holding Company will be in compliance therewith in all
material respects.
(o) Except for an equity investment in Citizens Investors, LLC, a Georgia investment company,
the Holding Company does not, and as of the Closing Date will not, own any equity securities or any
equity interest in any business enterprise except as described in the Prospectus.
(p) Except as described in the Prospectus there are no contractual encumbrances or
restrictions or requirements or material legal restrictions or requirements required to be
described therein, on the ability of the Holding Company, the Mid-Tier Holding Company, the MHC,
the Bank or any Bank Subsidiary, (A) to pay dividends or make any other distributions on its
capital stock or to pay any indebtedness owed to another party, (B) to make
10
any loans or advances to, or investments in, another party or (C) to transfer any of its
property or assets to another party. Except as described in the Prospectus, there are no
restrictions, encumbrances or requirements affecting the payment of dividends or the making of
any other distributions on any of the capital stock of the Holding Company.
(q) The Bank, and each Bank Subsidiary, as applicable, has properly administered all accounts
for which it acts as a fiduciary, including but not limited to accounts for which it serves as a
trustee, agent, custodian, personal representative, guardian, conservator or investment advisor, in
accordance with the terms of the governing documents and applicable state and federal law and
regulation, except where the failure to be in compliance would not have a Material Adverse Effect.
Neither the Bank, any Bank Subsidiary, as applicable, nor any of their respective directors,
officers or employees has committed any material breach of trust with respect to any such fiduciary
account, and the accountings for each such fiduciary account are true and correct in all material
respects and accurately reflect the assets of such fiduciary account in all material respects.
(r) The Bank is a duly organized and validly existing federally-chartered savings bank in
stock form and is duly authorized to conduct its business as described in the Prospectus; the
activities of the Bank are permitted by the rules, regulations and practices of the OTS; the Bank
has obtained all licenses, permits and other governmental authorizations currently required for the
conduct of its business, except those that individually or in the aggregate would not have a
Material Adverse Effect, and all such licenses, permits and other governmental authorizations are
in full force and effect; the Bank is, and as of the Closing Date will be, duly organized and
validly existing under the laws of the United States of America; the Bank is duly qualified as a
foreign corporation to transact business in each jurisdiction in which the failure to so qualify
would have a Material Adverse Effect; all of the issued and outstanding capital stock of the Bank
is duly and validly issued to the Mid-Tier Holding Company and is fully paid and nonassessable; and
all of the issued and outstanding capital stock of the Bank after the Conversion will be duly and
validly issued to the Holding Company and will be fully paid and nonassessable; and as of the
Closing Date, the Holding Company will directly own all of the capital stock of the Bank free and
clear of any mortgage, pledge, lien, encumbrance, claim or restriction of any kind. The Bank does
not own equity securities or any equity interest in any other business enterprise except as
otherwise described in the Prospectus or as are immaterial in amount and are not required to be
described in the Prospectus.
(s) The MHC is a duly organized and validly existing federally-chartered mutual holding
company, duly authorized to conduct its business as described in the Prospectus; the activities of
the MHC are permitted by the rules, regulations and practices of the OTS; the MHC has obtained all
licenses, permits and other governmental authorizations currently required for the conduct of its
business, except those that, individually or in the aggregate, would not have a Material Adverse
Effect; all such licenses, permits and other governmental authorizations are in full force and
effect; the MHC is duly organized and validly existing under the laws of United States; and the MHC
is duly qualified as a foreign corporation to transact business in each jurisdiction in which the
failure to so qualify would have a Material Adverse Effect.
(t) The Mid-Tier Holding Company is a duly organized and validly existing federally-chartered
stock corporation, duly authorized to conduct its business as described in the
11
Prospectus; the activities of the Mid-Tier Holding Company are permitted by the rules,
regulations and practices of the OTS; the Mid-Tier Holding Company has obtained all licenses,
permits and other governmental authorizations currently required for the conduct of its business,
except those that, individually or in the aggregate, would not have a Material Adverse Effect; all
such licenses, permits and other governmental authorizations are in full force and effect; the
Mid-Tier Holding Company is duly organized and validly existing under the laws of United States;
and the Mid-Tier Holding Company is duly qualified as a foreign corporation to transact business in
each jurisdiction in which the failure to so qualify would have a Material Adverse Effect.
(u) The Bank is a member of the Federal Home Loan Bank (the “FHLB”) of Atlanta. The deposit
accounts of the Bank are insured by the FDIC up to applicable limits.
(v) As of the Closing Date, the Bank will be a wholly-owned subsidiary of the Holding Company.
(w) Each Bank Subsidiary is, and as of the Closing Date, will be duly organized, validly
existing and in good standing in the jurisdiction of its incorporation and duly authorized to
conduct its business as described in the Prospectus; the activities of each Bank Subsidiary are
permitted by the rules, regulations and practices of the OTS and any other applicable governmental
entity; each Bank subsidiary has obtained all licenses, permits and other governmental
authorizations currently required for the conduct of its business, except those that individually
or in the aggregate would not have a Material Adverse Effect, and all such licenses, permits and
other governmental authorizations are in full force and effect; all of the issued and outstanding
capital stock of each Bank Subsidiary is duly and validly issued to the Bank and is fully paid and
nonassessable; and all of the issued and outstanding capital stock of each Bank Subsidiary after
the Conversion will be duly and validly issued to the Bank and will be fully paid and
nonassessable; and as of the Closing Date, the Bank will directly own all of the capital stock of
each Bank Subsidiary free and clear of any mortgage, pledge, lien, encumbrance, claim or
restriction of any kind. Each Bank Subsidiary does not own equity securities or any equity
interest in any other business enterprise except as otherwise described in the Prospectus or as are
immaterial in amount and are not required to be described in the Prospectus.
(x) The Holding Company, the Mid-Tier Holding Company, the MHC, the Bank and each Bank
Subsidiary carry, or are covered by, insurance in such amounts and covering such risks as the
Holding Company, the Mid-Tier Holding Company, the MHC, the Bank and each Bank Subsidiary deem
reasonably adequate for the conduct of their respective businesses and the value of their
respective properties.
(y) Upon consummation of the Conversion, the authorized, issued and outstanding capital stock
of the Holding Company will be within the range set forth in the Prospectus under the caption
“Capitalization” and no shares of Common Stock have been or will be issued and outstanding prior to
the Closing Date (except those shares issued to the Bank for its initial organization); the Offer
Shares to be subscribed for in the Offering have been duly and validly authorized for issuance and,
when issued and delivered by the Holding Company pursuant to the Plan against payment of the
consideration calculated as set forth in the Plan and the Prospectus, will be duly and validly
issued and fully paid and nonassessable; the Exchange
12
Shares to be issued in the Exchange have been duly and validly authorized for issuance and,
when issued and delivered by the Holding Company pursuant to the Plan, the Prospectus, and the
Stockholders’ Proxy Statement, will be duly and validly issued and fully paid and nonassessable;
the issuance of the Shares is not subject to preemptive rights, except for the subscription rights
for the Offer Shares granted pursuant to the Plan; and the terms and provisions of the shares of
Common Stock will conform in all material respects to the description thereof contained in the
Prospectus. Upon issuance and sale of the Offer Shares, good title to the Offer Shares will be
transferred from the Holding Company to the purchasers of Offer Shares against payment therefor in
the Offering as set forth in the Plan and the Prospectus. Upon issuance of the Exchange Shares,
good title to the Exchange Shares will be transferred from the Holding Company to the recipients
thereof in the Exchange as set forth in the Plan, the Prospectus and the Stockholders’ Proxy
Statement.
(z) The Primary Parties and each Bank Subsidiary are not, and as of the Closing Date will not
be, in violation of their respective articles of incorporation or charters or their respective
bylaws, or in material default in the performance or observance of any obligation, agreement,
covenant, or condition contained in any contract, lease, loan agreement, indenture or other
instrument to which they are a party or by which they, or any of their respective properties, may
be bound which would result in a Material Adverse Effect. The consummation of the transactions
contemplated herein and in the Plan will not (i) conflict with or constitute a breach of, or
default under, the articles of incorporation, charter or bylaws of any of the Primary Parties or
any Bank Subsidiary, or materially conflict with or constitute a material breach of, or default
under, any material contract, lease or other instrument to which any of the Primary Parties or any
Bank Subsidiary has a beneficial interest, or any applicable law, rule, regulation or order that is
material to the financial condition of the Primary Parties or any Bank Subsidiary, as applicable;
(ii) violate any authorization, approval, judgment, decree, order, statute, rule or regulation
applicable to the Primary Parties or any Bank Subsidiary except for such violations which would not
have a Material Adverse Effect; or (iii) result in the creation of any material lien, charge or
encumbrance upon any property of the Primary Parties or any Bank Subsidiary.
(aa) No default exists, and no event has occurred that with notice or lapse of time, or both,
would constitute a default on the part of any of the Primary Parties or any Bank Subsidiary, in the
due performance and observance of any term, covenant or condition of any indenture, mortgage, deed
of trust, note, bank loan or credit agreement or any other instrument or agreement to which any of
the Primary Parties or any Bank Subsidiary is a party or by which any of their property is bound or
affected in any respect which, in any such case, would have a Material Adverse Effect on the
Primary Parties or Bank Subsidiary individually or taken as a whole, and all such agreements are in
full force and effect; and no other party to any such agreements has instituted or, to the
knowledge of any of the Primary Parties or any Bank Subsidiary, threatened any action or proceeding
wherein any of the Primary Parties or any Bank Subsidiary is alleged to be in default thereunder
under circumstances where such action or proceeding, if determined adversely to any of the Primary
Parties or any Bank Subsidiary, would have a Material Adverse Effect.
(bb) The Primary Parties and each Bank Subsidiary have good and marketable title to all assets
which are material to the businesses, financial condition, results of operation,
13
capital, properties, and assets of the Primary Parties and each Bank Subsidiary and to those
assets described in the Prospectus as owned by them, free and clear of all liens, charges,
encumbrances, restrictions or other claims, except such as are described in the Prospectus or which
do not have a Material Adverse Effect; and all of the leases and subleases that are material to the
businesses of the Primary Parties or any Bank Subsidiary, including those described in the
Registration Statement or Prospectus, are in full force and effect.
(cc) The Primary Parties and each Bank Subsidiary are not in material violation of any
directive, order or memorandum of understanding from the OTS, the Commission or any other agency to
make any material change in the method of conducting their respective businesses; the Primary
Parties and each Bank Subsidiary have conducted and are conducting their respective businesses so
as to comply in all respects with all applicable statutes and regulations (including, without
limitation, regulations, decisions, directives and orders of the OTS, the Commission and the Nasdaq
Stock Market), except where the failure to so comply would not reasonably be expected to result in
a Material Adverse Effect, and there is no charge, investigation, action, suit or proceeding before
or by any court, regulatory authority or governmental agency or body pending or, to the knowledge
of any of the Primary Parties or any Bank Subsidiary, threatened, which would reasonably be
expected to materially and adversely affect the Conversion, the performance of this Agreement, or
the consummation of the transactions contemplated in the Plan as described in the Registration
Statement, or which would reasonably be expected to result in a Material Adverse Effect.
(dd) Prior to the Closing Date, the Primary Parties will have received an opinion of their
special counsel, Xxxx Xxxxxx Xxxxxxxx & Xxxxxx, P.C., with respect to the federal income tax
consequences of the Conversion, as described in the Registration Statement and the Prospectus, and
an opinion from Xxxxx Xxxxxxx LLP with respect to the tax consequences of the Conversion under the
laws of the States of Florida and Georgia; and the facts and representations upon which such
opinions will be based, will be truthful, accurate and complete, and none of the Primary Parties
will take any action inconsistent therewith.
(ee) The Primary Parties have timely filed all required federal, state and local tax returns,
paid all taxes that have become due and payable, and have made adequate reserves for known future
tax liabilities, and no deficiency has been asserted with respect thereto by any taxing authority.
(ff) No approval, authorization, consent or other order of any regulatory or supervisory or
other public authority is required for the execution and delivery by the Primary Parties of this
Agreement, or the sale and issuance of the Offer Shares and the issuance of the Exchange Shares,
except for the approval of the OTS and the Commission and any necessary qualification,
notification, or registration or exemption under the securities or blue sky laws of the various
states in which the Offer Shares are to be offered for sale and the Exchange Shares are to be
issued.
(gg) None of the Primary Parties has: (i) issued any securities within the last 18 months
(except for (a) notes to evidence bank loans or other liabilities in the ordinary course of
business or as described in the Prospectus, (b) shares of Common Stock issued with respect to the
initial capitalization of the Holding Company and (c) shares of common stock of the Mid-
14
Tier Holding Company issued pursuant to the Mid-Tier Holding Company’s Employee Stock
Ownership Plan or the Atlantic Coast Federal Corporation 2005 Recognition and Retention Plan and
options issued (including the exercise of such options) pursuant to the Atlantic Coast Federal
Corporation 2005 Stock Option Plan or as described in the Prospectus); (ii) had any dealings with
respect to sales of securities within the 12 months prior to the date hereof with any member of
FINRA, or any person related to or associated with such member, other than discussions and meetings
relating to the Offering and purchases and sales of U.S. government and agency and other securities
in the ordinary course of business; (iii) entered into a financial or management consulting
agreement relating to the Conversion and the Offering except for the Letter Agreement, the
agreement between the Primary Parties and Stifel, dated April 10, 2009, and as contemplated
hereunder; or (iv) engaged any intermediary between the Agent and the Primary Parties in connection
with the Offering or the offering of shares of the common stock of the Mid-Tier Holding Company,
and no person is being compensated in any manner for such services.
(hh) Neither any of the Primary Parties nor, to the knowledge of the Primary Parties, any
employee of the Primary Parties, has made any payment of funds of the Primary Parties as a loan to
any person for the purchase of Offer Shares, except for the Holding Company’s loan to the employee
stock ownership plan the proceeds of which will be used to purchase Offer Shares and the Mid-Tier
Holding Company’s existing loan to the employee stock ownership plan, or has made any other payment
or loan of funds prohibited by law, and no funds have been set aside to be used for any payment
prohibited by law.
(ii) The Bank complies in all material respects with the applicable financial record keeping
and reporting requirements of the Currency and Foreign Transactions Reporting Act of 1970, as
amended, and the regulations and rules thereunder.
(jj) The Primary Parties have not relied upon the Agent or its counsel for any legal, tax or
accounting advice in connection with the Conversion.
(kk) The records of Eligible Account Holders and Supplemental Eligible Account Holders and
Other Members are accurate and complete in all material respects.
(ll) The Primary Parties comply in all respects with all laws, rules and regulations relating
to environmental protection, except where the failure to comply would not result in a Material
Adverse Effect, and none of them has been notified or is otherwise aware that any of them is
potentially liable, or is considered potentially liable, under the Comprehensive Environmental
Response, Compensation and Liability Act of 1980, as amended, or any other Federal, state or local
environmental laws and regulations; no action, suit, regulatory investigation or other proceeding
is pending, or to the knowledge of the Primary Parties, threatened against the Primary Parties
relating to environmental protection, nor do the Primary Parties have any reason to believe any
such proceedings may be brought against any of them; and no disposal, release or discharge of
hazardous or toxic substances, pollutants or contaminants, including petroleum and gas products, as
any of such terms may be defined under federal, state or local law, has occurred on, in, at or
about any facilities or properties owned or leased by any of the Primary Parties or in which the
Bank has a security interest, except, in the case of facilities or properties in which the Bank has
a security interest, to the extent such disposal, release or discharge would not have a Material
Adverse Effect.
15
(mm) All of the loans represented as assets in the most recent financial information of the
Primary Parties included in the Prospectus meet or are exempt from all requirements of federal,
state and local law pertaining to lending, including, without limitation, truth in lending
(including the requirements of Regulations Z and 12 C.F.R. Part 226), real estate settlement
procedures, consumer credit protection, equal credit opportunity and all disclosure laws applicable
to such loans, except for violations which, if asserted, would not result in a Material Adverse
Effect.
(nn) None of the Primary Parties are required to be registered as an investment company under
the Investment Company Act of 1940, as amended.
(oo) To the Holding Company’s, the Mid-Tier Holding Company’s, the MHC’s and the Bank’s
knowledge, there are no affiliations or associations between any member of the FINRA and any of the
Holding Company’s, the Mid-Tier Holding Company’s, the MHC’s and the Bank’s officers, directors or
5% or greater securityholders, except as set forth in the Registration Statement and the
Prospectus.
(pp) The statistical and market related data contained in any Permitted Free Writing
Prospectus, the Prospectus and the Registration Statement are based on or derived from sources
which the Holding Company, the Mid-Tier Holding Company, the MHC and the Bank believe were reliable
and accurate at the time they were filed with the Commission. No forward-looking statement (within
the meaning of Section 27A of the 1933 Act and Section 21E of the 0000 Xxx) contained in the
Registration Statement, the Prospectus, or any Permitted Free Writing Prospectus has been made or
reaffirmed without a reasonable basis or has been disclosed other than in good faith.
(qq) The Primary Parties have taken all actions necessary to obtain at Closing a Blue Sky
Memorandum from Xxxx Xxxxxx Xxxxxxxx & Xxxxxx, P.C. on which Stifel may rely.
Any certificates signed by an officer of any of the Primary Parties and delivered to the Agent
or its counsel that refer to this Agreement shall be deemed to be a representation and warranty by
the Primary Parties to the Agent as to the matters covered thereby with the same effect as if such
representation and warranty were set forth herein.
Section 7. Representations and Warranties of the Agent. Stifel represents and warrants
to the Primary Parties that:
(a) Stifel is a corporation and is validly existing and in good standing under the laws of the
State of Missouri with full power and authority to provide the services to be furnished to the
Primary Parties hereunder.
(b) The execution, delivery and performance of this Agreement and the consummation of the
transactions contemplated herein have been duly and validly authorized by all necessary corporate
action on the part of Stifel, and each of this Agreement and the Letter Agreement is the legal,
valid and binding agreement of Stifel, enforceable in accordance with its terms, except to the
extent, if any, that the provisions of Sections 11 and 12 hereof may be unenforceable as against
public policy, and except to the extent that such enforceability may be
16
limited by bankruptcy laws, insolvency laws, or other laws affecting the enforcement of
creditors’ rights generally or general equity principles.
(c) Each of the Agent and its employees, agents and representatives who shall perform any of
the services hereunder shall have, and until the Offering is consummated or terminated shall
maintain, all licenses, approvals and permits necessary to perform such services and shall comply
in all material respects with all applicable laws and regulations in connection with the
performance of such services.
(d) No action, suit, charge or proceeding before the Commission, FINRA, any state securities
commission or any court is pending, or to the knowledge of the Agent, threatened against the Agent
which, if determined adversely to such Agent, would have a material adverse effect upon the ability
of Agent to perform its obligations under this Agreement.
(e) Agent is registered as a broker/dealer pursuant to Section 15(b) of the 1934 Act and is a
member of FINRA.
(f) Any funds received in the Offering by the Agent will be handled by the Agent in accordance
with Rule 15c2-4 under the 1934 Act to the extent applicable.
Section 8. Covenants of the Primary Parties. The Primary Parties hereby jointly and
severally covenant with the Agent as follows:
(a) The Holding Company will not, at any time after the date the Registration Statement is
declared effective, file any amendment or supplement to the Registration Statement without
providing the Agent and its counsel an opportunity to review and comment on such amendment or
supplement or file any amendment or supplement to the Registration Statement to which amendment or
supplement the Agent or its counsel shall reasonably object. The Holding Company will furnish
promptly to the Agent and its counsel copies of all correspondence from the Commission with respect
to the Registration Statement and the Holding Company’s responses thereto.
(b) The Holding Company represents and agrees that, unless it obtains the prior consent of the
Agent, and the Agent represents and agrees that, unless it obtains the prior consent of the Holding
Company, it has not made and will not make any offer relating to the Offer Shares that would
constitute an “issuer free writing prospectus,” as defined in Rule 433, or that would constitute a
“free writing prospectus,” as defined in Rule 405, required to be filed with the Commission. Any
such free writing prospectus consented to by the Holding Company and the Agent is hereinafter
referred to as a “Permitted Free Writing Prospectus.” The Holding Company represents that it has
and will comply with the requirements of Rule 433 applicable to any Permitted Free Writing
Prospectus, including timely Commission filing where required, legending and record keeping. The
Holding Company need not treat any communication as a free writing prospectus if it is exempt from
the definition of prospectus pursuant to Clause (a) of Section 2(a)(10) of the 1933 Act without
regard to Rule 172 or 173.
(c) The Primary Parties will not, at any time after the Holding Company and the Conversion
Application (the “Applications”) are approved, file any amendment or supplement to such
applications without providing the Agent and its counsel an opportunity to
17
review and comment on such amendment or supplement or file any amendment or supplement to such
applications to which amendment or supplement the Agent or its counsel shall reasonably object. The
Primary Parties will furnish promptly to the Agent and its counsel copies of all correspondence
from the OTS with respect to the Applications and the Primary Parties’ responses thereto.
(d) The Primary Parties will use their best efforts to cause the OTS to approve the Holding
Company’s acquisition of the Bank, and will use their best efforts to cause any post-effective
amendment to the Registration Statement to be declared effective by the Commission and any
post-effective amendment to the Conversion Application to be approved by the OTS, as applicable,
and will promptly upon receipt of any information concerning the events listed below notify the
Agent (i) when the Registration Statement, as amended, has become effective; (ii) when the
Conversion Application as amended, has been approved by the OTS; (iii) when the Holding Company
Application, as amended, has been approved by the OTS; (iv) of the receipt of any comments from the
OTS, or any other governmental entity with respect to the Conversion or the transactions
contemplated by this Agreement; (v) of any request by the Commission, the OTS, or any other
governmental entity for any amendment or supplement to the Registration Statement or the
Applications or for additional information; (vi) of the issuance by the Commission, the OTS, or any
other governmental agency of any order or other action suspending the Offering or the use of the
Registration Statement, the Prospectus, the Members’ Proxy Statement, the Stockholders’ Proxy
Statement or any other filing of the Primary Parties under the Conversion Regulations or other
applicable law, or the threat of any such action; (vii) of the issuance by the Commission, the OTS,
or any other state authority of any stop order suspending the effectiveness of the Registration
Statement or of the initiation or threat of any proceedings for that purpose; or (viii) of the
occurrence of any event mentioned in subsection (g) below. The Primary Parties will make every
reasonable effort to prevent the issuance by the Commission, the OTS, or any other state authority
of any order referred to in (vi) and (vii) above and, if any such order shall at any time be
issued, to obtain the lifting thereof at the earliest possible time.
(e) The Primary Parties will deliver to the Agent and to its counsel conformed copies of each
of the following documents, with all exhibits: the Applications as originally filed and of each
amendment or supplement thereto, and the Registration Statement, as originally filed and each
amendment thereto. Further, the Primary Parties will deliver such additional copies of the
foregoing documents to counsel to the Agent as may be required for any FINRA filings. In addition,
the Primary Parties will also deliver to the Agent such number of copies of the Prospectus, as
amended or supplemented, as the Agent may reasonably request.
(f) The Primary Parties will comply in all material respects with any and all terms,
conditions, requirements and provisions with respect to the Conversion and the transactions
contemplated thereby imposed by the Commission, by applicable state law and regulations, and by the
1933 Act, the 1933 Act Regulations, the 1934 Act and the 1934 Act Regulations to be complied with
prior to the Closing Date; and when the Prospectus is required to be delivered, the Primary Parties
will comply in all material respects, at their own expense, with all requirements imposed upon them
by the OTS, the Conversion Regulations (except as modified or waived in writing by the OTS), the
Commission, by applicable state law and regulations and by the 1933 Act, the 1934 Act and the rules
and regulations of the Commission
18
promulgated under such statutes, in each case as from time to time in force, so far as is
necessary to permit the continuance of sales or dealing in shares of Common Stock during such
period in accordance with the provisions hereof and the Prospectus.
(g) The Primary Parties will inform the Agent of any event or circumstance of which they are
or become aware as a result of which the Registration Statement and/or Prospectus, as then
supplemented or amended, would include an untrue statement of a material fact or omit to state a
material fact necessary in order to make the statements therein in the light of the circumstances
under which they were made not misleading. If it is necessary, in the reasonable opinion of counsel
for the Primary Parties, to amend or supplement the Registration Statement or the Prospectus in
order to correct such untrue statement of a material fact or to make the statements therein not
misleading in the light of the circumstances existing at the time of their use, the Primary Parties
will, at their expense, prepare, file with the Commission and the OTS, and furnish to the Agent, a
reasonable number of copies of an amendment or amendments of, or a supplement or supplements to,
the Registration Statement and the Prospectus (in form and substance reasonably satisfactory to
counsel for the Agent after a reasonable time for review) which will amend or supplement the
Registration Statement and/or the Prospectus so that as amended or supplemented it will not contain
an untrue statement of a material fact or omit to state a material fact necessary in order to make
the statements therein, in the light of the circumstances existing at the time, not misleading. For
the purpose of this subsection, each of the Primary Parties will furnish such information with
respect to itself as the Agent may from time to time reasonably request.
(h) Pursuant to the terms of the Plan, the Holding Company will endeavor in good faith, in
cooperation with the Agent, to register or to qualify the Shares for offering, sale and exchange or
to exempt such Shares from registration and to exempt the Holding Company and its officers,
directors and employees from registration as broker-dealers, under the applicable securities laws
of the jurisdictions in which the Offering will be conducted; provided, however, that the Holding
Company shall not be obligated to file any general consent to service of process or to qualify as a
foreign corporation to do business in any jurisdiction in which it is not so qualified. In each
jurisdiction where any of the Shares shall have been registered or qualified as above provided, the
Holding Company will make and file such statements and reports in each year as are or may be
required by the laws of such jurisdiction.
(i) Upon consummation of the Conversion, the Holding Company and the Bank each will establish
a liquidation account for the benefit of the Bank’s depositors, in accordance with the Plan and the
requirements of the Conversion Regulations.
(j) The Holding Company will not sell or issue, contract to sell or otherwise dispose of, for
a period of ninety (90) days after the date hereof, any shares of Common Stock or securities into
or exercisable for shares of Common Stock, without the Agent’s prior written consent other than in
connection with any plan or arrangement described in the Prospectus.
(k) For a period of three years from the date of this Agreement, the Holding Company will
furnish to the Agent, as soon as practical after such information is available (i) a copy of each
report of the Holding Company furnished to or filed with the Commission under the 1934 Act or any
national securities exchange or system on which any class of securities of the
19
Holding Company is listed or quoted, (ii) a copy of each report of the Holding Company mailed
to holders of Common Stock, (iii) each press release and material news item and article released by
the Holding Company and/or Bank, and (iv) from time-to-time, such other publicly available
information concerning the Primary Parties as the Agent may reasonably request. For purposes of
this paragraph, any document filed electronically with the Commission shall be deemed to be
furnished to the Agent.
(l) The Primary Parties will use the net proceeds from the sale of the Common Stock in the
manner set forth in the Prospectus under the caption “How We Intend to Use the Proceeds From the
Offering.”
(m) The Holding Company and the Bank will distribute the Prospectus and other offering
materials in connection with the offering and sale of the Common Stock only in accordance with the
Conversion Regulations, the 1933 Act and the 1934 Act and the rules and regulations promulgated
under such statutes, and, as applicable, the laws of any state in which the shares are qualified
for sale.
(n) No later than the Closing Date, the Holding Company shall register its Common Stock under
Section 12(b) of the 1934 Act, and will request that such registration statement be effective no
later than the completion of the Conversion. The Holding Company shall maintain the effectiveness
of such registration for not less than three years or such shorter period as permitted by the OTS
or its successor.
(o) For so long as the Common Stock is registered under the 1934 Act, the Holding Company will
furnish to its stockholders after the end of each fiscal year such reports and other information as
are required to be furnished to its stockholders under the 1934 Act within the timeframes as
required under the 1934 Act Regulations.
(p) The Holding Company will report the use of proceeds of the Offering in accordance with
Rule 463 under the 1933 Act Regulations.
(q) The Primary Parties will maintain appropriate arrangements for depositing all funds
received from persons mailing subscriptions for all orders to purchase Offer Shares in the Offering
on an interest bearing basis (all funds received by check will be deposited in a segregated account
at the Bank no later than 12:00 noon on the Business Day after receipt) as described in the
Prospectus until the Closing Date and satisfaction of all conditions precedent to the release of
the Holding Company’s obligation to refund payments received from persons subscribing for or
ordering Offer Shares in the Offering, in accordance with the Plan as described in the Prospectus,
or until refunds of such funds have been made to the persons entitled thereto or withdrawal
authorizations canceled in accordance with the Plan and as described in the Prospectus. The Primary
Parties will maintain such records of all funds received to permit the funds of each subscriber to
be separately insured by the FDIC (to the maximum extent allowable) and to enable the Primary
Parties to make the appropriate refunds of such funds in the event that such refunds are required
to be made in accordance with the Plan and as described in the Prospectus.
20
(r) Within ninety (90) days following the Closing Date, the Holding Company will
register as a savings and loan holding company under HOLA.
(s) The Primary Parties will take such actions and furnish such information as are reasonably
requested by the Agent in order for the Agent to ensure compliance with FINRA Rule 5130
(Restrictions on the Purchase and Sale of IPOs of Equity Securities).
(t) The Primary Parties will conduct their businesses in compliance in all material respects
with all applicable federal and state laws, rules, regulations, decisions, directives and orders,
including all decisions, directives and orders of the Commission and the OTS.
(u) The Primary Parties shall comply with any and all terms, conditions, requirements and
provisions with respect to the Conversion and the transactions contemplated thereby imposed by the
OTS, the HOLA, the Commission, the 1933 Act, the 1933 Act Regulations, the 1934 Act, the 1934 Act
Regulations to be complied with subsequent to the Closing Date. The Holding Company will comply
with all provisions of all undertakings contained in the Registration Statement.
(v) The Primary Parties will not amend the Plan without notifying the Agent prior thereto.
(w) The Holding Company shall provide Stifel with any information necessary to allow Stifel to
assist with the allocation process in order to permit the Holding Company to carry out the
allocation of the Offer Shares in the event of an oversubscription, and such information shall be
accurate and reliable in all material respects.
(x) The Holding Company will not deliver the Shares until the Primary Parties have satisfied
or caused to be satisfied each condition set forth in Section 10 hereof, unless such condition is
waived in writing by Stifel.
(y) On or before the Closing Date, the Primary Parties will have completed all conditions
precedent to the Conversion specified in the Plan and the offer, sale and issuance of the Shares
will have been conducted in all material respects in accordance with the Plan, the Conversion
Regulations (except as modified or waived in writing by the OTS) and with all other applicable
laws, regulations, decisions and orders, including all terms, conditions, requirements and
provisions precedent to the Conversion imposed upon any of the Primary Parties by the OTS, the
Commission, or any other regulatory authority and in the manner described in the Prospectus.
(z) Immediately upon completion of the sale by the Holding Company of the Offer Shares, the
issuance of the Exchange Shares and the completion of certain transactions necessary to implement
the Plan, (i) all of the issued and outstanding shares of capital stock of the Bank shall be owned
by the Holding Company, (ii) the Holding Company shall have no direct subsidiaries other than the
Bank, and (iii) the Conversion shall have been effected in all material respects in accordance with
all applicable statutes, regulations, decisions and orders; and all terms, conditions, requirements
and provisions with respect to the Conversion (except those that are conditions subsequent) imposed
by the OTS, the Commission, or any other
21
governmental agency, if any, shall have been complied with by the Primary Parties in all
material respects or appropriate waivers shall have been obtained and all notice and waiting
periods shall have been satisfied, waived or elapsed.
(aa) Prior to the Closing Date, the Plan shall have been approved by the members of the MHC
and the stockholders of the Mid-Tier Holding Company in accordance with the Plan, the Conversion
Regulations, the applicable provisions, if any, of the MHC’s charter and bylaws, the Mid-Tier
Holding Company’s charter and bylaws, the Members’ Proxy Statement and the Stockholders’ Proxy
Statement.
(bb) The Holding Company shall notify the Agent when funds shall have been received for the
minimum number of Offer Shares set forth in the Prospectus.
(cc) The officers and directors of the Primary Parties, listed in Exhibit B of this
Agreement, shall not exercise any stock options providing for the issuance of shares of common
stock in the Mid-Tier Holding Company during the Offering or otherwise sell or transfer any shares
of Common Stock commencing on the date hereof and continuing for a period of ninety (90) days
following the Closing Date (the “Restricted Period”). The Primary Parties shall not honor the
exercise of any stock options providing for the issuance of shares of common stock in the Mid-Tier
Holding Company by any such officer or director during the Offering, nor shall the Holding Company
otherwise assist such officers or directors in connection with the sale or transfer of shares of
Common Stock during the Restricted Period.
Section 9. Payment of Expenses.
(a) Whether or not the Conversion is completed or the sale, issuance and exchange of the
Shares by the Holding Company is consummated, the Primary Parties will pay for all their expenses
incident to the performance of this Agreement, including without limitation: (i) the preparation
and filing of the Applications and Registration Statement; (ii) the preparation, printing, filing,
delivery and mailing of the Registration Statement, including the Prospectus, and all documents
related to the Offering and proxy solicitation; (iii) all filing fees and expenses in connection
with the qualification or registration of the Shares for offer and sale by the Holding Company or
the Bank under the securities or “blue sky” laws, including without limitation filing fees,
reasonable legal fees and disbursements of counsel in connection therewith, and in connection with
the preparation of a blue sky law survey; (iv) the filing fees of FINRA related to Stifel’s
fairness filing under Rule 5110 of the FINRA; (v) fees and expenses related to the preparation of
the independent appraisal; (vi) fees and expenses related to providers providing printing, data
processing, auditing, accounting and other services; (vii) all expenses relating to advertising,
temporary personnel, investor meetings and stock information center; and (viii) transfer agent fees
and costs of preparation and distribution of stock certificates. In the event that Stifel incurs
any expenses on behalf of the Primary Parties, the Primary Parties will pay or reimburse Stifel for
such expenses regardless of whether the Conversion is successfully completed, and such
reimbursements will not be included in the expense limitations set forth in subsection (b) of this
Section 9.
(b) The Primary Parties also agree to reimburse Stifel for reasonable out-of-pocket expenses,
including legal fees and expenses, incurred by Stifel in connection with the
22
services hereunder. Stifel will not incur reimbursable legal fees (excluding counsel’s reasonable
out-of-pocket expenses) in excess of $130,000. In addition to legal fees, Stifel will not incur
actual accountable reimbursable out-of-pocket expenses in excess of $30,000 in the Offering. The
Primary Parties acknowledge, however, that such limitations on expenses and legal fees may be
increased by the mutual consent of the Mid-Tier Holding Company and Stifel, including in the event
of a material delay in the Offering, which would require an update of the financial information
contained in the Prospectus to reflect a period later than set forth in the financial statements in
the original Registration Statement; provided, however that under such circumstances, Stifel will
not incur additional accountable reimbursable out-of-pocket expenses in excess of $10,000 or
additional reimbursable legal fees in excess of $20,000 and provided further that the aggregate of
all reimbursable expenses and legal fees shall not exceed $190,000.
(c) Not later than two (2) days prior to the Closing Date, Stifel will provide the Bank with a
detailed accounting of all reimbursable expenses of Stifel and its counsel to be paid at the
Closing.
Section 10. Conditions to the Agent’s Obligations. The obligations of the Agent
hereunder and the occurrence of the Closing and the Conversion are subject to the condition that
all representations and warranties of the Primary Parties herein contained are, at and as of the
commencement of the Offering and at and as of the Closing Date, true and correct, the condition
that the Primary Parties shall have performed all of their obligations hereunder to be performed on
or before such dates and to the following further conditions:
(a) The Registration Statement shall have been declared effective by the Commission, the
Conversion Application and the Holding Company Application shall have been approved by the OTS, and
no stop order or other action suspending the effectiveness of the Registration Statement shall have
been issued under the 1933 Act or proceedings therefor initiated or, to the knowledge of the
Primary Parties, threatened by the Commission or any state authority and no order or other action
suspending the authorization for use of the Prospectus or the consummation of the Conversion shall
have been issued, or proceedings therefor initiated or, to the knowledge of the Primary Parties,
threatened by the OTS, the Commission or any other governmental body.
(b) At the Closing Date, the Agent shall have received:
(1) The opinion, dated as of the Closing Date, of Xxxx Xxxxxx Xxxxxxxx &
Xxxxxx, P.C. and/or local counsel acceptable to the Agent, in form and substance
satisfactory to the Agent and counsel for the Agent attached hereto as Exhibit
D.
(2) The letter of Xxxx Xxxxxx Xxxxxxxx & Xxxxxx, P.C. in form and substance to
the effect that during the preparation of the Registration Statement and the
Prospectus, Luse, Gorman, Xxxxxxxx & Xxxxxx, P.C. participated in conferences with
certain officers of and other representatives of the Primary Parties, counsel to the
Agent, representatives of the independent public accountants for the Primary Parties
and representatives of the Agent at which the contents of the Registration Statement
and the Prospectus and related matters
23
were discussed and has considered the matters required to be stated therein and
the statements contained therein and, although (without limiting the opinions
provided pursuant to Section 10(b)(1)), Xxxx Xxxxxx Xxxxxxxx & Xxxxxx, P.C. has not
independently verified the accuracy, completeness or fairness of the statements
contained in the Registration Statement and Prospectus, on the basis of the
foregoing, nothing has come to the attention of Luse, Gorman, Xxxxxxxx & Xxxxxx,
P.C. that caused Xxxx Xxxxxx Xxxxxxxx & Xxxxxx, P.C. to believe that the
Registration Statement at the time it was declared effective by the Commission and
as of the date of such letter or that the General Disclosure Package as of the
Applicable Time, contained or contains any untrue statement of a material fact or
omitted to state any material fact required to be stated therein or necessary to
make the statements therein in light of the circumstances under which they were made
not misleading (it being understood that counsel need express no comment or opinion
with respect to financial statements, notes to financial statements, schedules and
other financial and statistical data included, or statistical or appraisal
methodology employed, in the Registration Statement, or Prospectus or General
Disclosure Package).
(3) The favorable opinion, dated as of the Closing Date, of Xxxxxxxxxx Xxxxxxxx
LLP, counsel for Stifel, with respect to such matters as the Agent may reasonably
require; such opinion may rely, as to matters of fact, upon certificates of officers
and directors of the Primary Parties delivered pursuant hereto or as such counsel
may reasonably request and upon the opinion of Xxxx Xxxxxx Xxxxxxxx & Xxxxxx, P.C.
(4) The letter of Xxxxxxxxxx Xxxxxxxx LLP in form and substance to the effect
that during the preparation of the Registration Statement and the Prospectus,
Xxxxxxxxxx Xxxxxxxx LLP participated in conferences with certain officers of and
other representatives of the Primary Parties, counsel to the Primary Parties,
representatives of the independent public accountants for the Primary Parties and
representatives of the Agent at which the contents of the Registration Statement and
the Prospectus and related matters were discussed and has considered the matters
required to be stated therein and the statements contained therein and, although
(without limiting the opinions provided pursuant to Section 10(b)(3)), Xxxxxxxxxx
Xxxxxxxx LLP has not independently verified the accuracy, completeness or fairness
of the statements contained in the Registration Statement and Prospectus, on the
basis of the foregoing, nothing has come to the attention of Xxxxxxxxxx Xxxxxxxx LLP
that caused Xxxxxxxxxx Xxxxxxxx LLP to believe that the Registration Statement at
the time it was declared effective by the Commission and as of the date of such
letter or that the General Disclosure Package as of the Applicable Time, contained
or contains any untrue statement of a material fact or omitted to state any material
fact required to be stated therein or necessary to make the statements therein in
light of the circumstances under which they were made not misleading (it being
understood that counsel need express no comment or opinion with respect to financial
statements, notes to financial statements, schedules and other financial and
statistical data included, or statistical or appraisal methodology employed, in the
Registration Statement, or Prospectus or
24
General Disclosure Package).
(5) A Blue Sky Memorandum from Xxxx Xxxxxx Xxxxxxxx & Xxxxxx, P.C. addressed to
the Holding Company and the Agent relating to the Offering and the Exchange,
including Agent’s participation therein. The Blue Sky Memorandum will address the
necessity of obtaining or confirming exemptions, qualifications or the registration
of the Common Stock under applicable state securities law.
(c) (i) Concurrently with the execution of this Agreement, the Agent shall receive a
letter from Xxxxx Xxxxxxx LLP, dated the date hereof and addressed to the Agent, such letter
confirming that Xxxxx Xxxxxxx LLP is a firm of independent registered public accountants
within the meaning of the 1933 Act, the 1933 Act Regulations and the PCAOB Regulations, and
stating in effect that the audited consolidated financial statements of the Mid-Tier Holding
Company included in the Prospectus comply as to form in all material respects with generally
accepted accounting principles, the 1933 Act and the 1933 Act Regulations, and the 1934 Act
and the 1934 Act Regulations;
(ii) Concurrently with the execution of this Agreement, the Agent shall receive a
letter from McGladrey & Xxxxxx, LLP, dated the date hereof and addressed to the Agent, such
letter (i) confirming that McGladrey & Xxxxxx, LLP is a firm of independent registered
public accountants within the meaning of the 1933 Act, the 1933 Act Regulations and the
PCAOB Regulations; (ii) stating in effect that, on the basis of certain agreed upon
procedures (but not an audit examination in accordance with the auditing standards of the
PCAOB) consisting of a review (in accordance with Statement of Auditing Standards No. 100,
Interim Financial Information) of the unaudited consolidated interim financial statements of
the Mid-Tier Holding Company prepared by the Primary Parties included in the Prospectus, a
reading of the minutes of the meetings of the Board of Directors, Executive Committee, Audit
Committee, Loan Committee, Nominating Committee and stockholders of the Mid-Tier Holding
Company and the Bank and consultations with officers of the Mid-Tier Holding Company and the
Bank responsible for financial and accounting matters, nothing came to their attention which
caused them to believe that: (A) any material modifications should be made to the unaudited
consolidated financial statements or the “Recent Developments” information in the Prospectus
or that such unaudited consolidated financial statements and “Recent Developments”
information in the Prospectus comply as to form in all material respects with the applicable
requirements of the 1933 Act and the 1933 Act Regulations; or (B) during the period from the
date of the “Recent Developments” financial information included in the Prospectus to a
specified date not more than three (3) business days prior to the date of the Prospectus,
there was any material increase in borrowings (defined as securities sold under agreements
to repurchase and any other form of debt other than deposits), or non-performing loans,
non-performing assets, special mention loans or decrease in the deposits or loan allowance,
total assets, stockholders’ equity or there was any change in common stock outstanding
(other than for stock option plans) at the date of such letter as compared with amounts
shown in the December 31, 2009 audited statement of condition included in the Prospectus or
there was any decrease in net interest income,
25
non-interest income, net interest income after provision or net income, or increase in
provision for loan losses or non-interest expense of the Primary Parties for the period
commencing immediately after the Recent Development date and ended not more than three (3)
business days prior to the date of the Prospectus as compared to the corresponding period in
the preceding year; and (iii) stating that, in addition to the examination referred to and
the performance of the procedures referred to in clause (ii) of this subsection (c), they
have compared with the general accounting records of the Mid-Tier Holding Company, which are
subject to the internal controls of the accounting system of the Mid-Tier Holding Company,
and other data prepared by the Primary Parties from accounting records, to the extent
specified in such letter, such amounts and/or percentages set forth in the Prospectus as the
Agent may reasonably request, and they have found such amounts and percentages to be in
agreement therewith (subject to rounding).
(d) (i) At the Closing Date, the Agent shall receive a letter from Xxxxx Xxxxxxxx LLP
dated the Closing Date, addressed to the Agent, confirming the statements made by its letter
delivered by it pursuant to subsection (c)(i) of this Section 10, the “specified date”
referred to in clause (ii)(B) thereof to be a date specified in such letter, which shall not
be more than three (3) business days prior to the Closing Date.
(ii) At the Closing Date, the Agent shall receive a letter from McGladrey & Xxxxxx, LLP
dated the Closing Date, addressed to the Agent, confirming the statements made by its letter
delivered by it pursuant to subsection (c)(i) of this Section 10, the “specified date”
referred to in clause (ii)(B) thereof to be a date specified in such letter, which shall not
be more than three (3) business days prior to the Closing Date.
(e) At the Closing Date, counsel to the Agent shall have been furnished with such documents
and opinions as counsel for the Agent may require for the purpose of enabling them to advise the
Agent with respect to the issuance and sale of the Common Stock as herein contemplated and related
proceedings, or in order to evidence the accuracy of any of the representations and warranties, or
the fulfillment of any of the conditions herein contained.
(f) At the Closing Date, the Agent shall receive a certificate of the Chief Executive Officer
and Chief Financial Officer of each of the Primary Parties, dated the Closing Date, to the effect
that: (i) they have examined the Registration Statement and at the time the Registration Statement
became effective and the Prospectus was authorized for final use, the Prospectus did not contain an
untrue statement of a material fact or omit to state a material fact necessary in order to make the
statements therein in the light of the circumstances under which they were made, not misleading;
(ii) there has not been, since the respective dates as of which information is given in the
Registration Statement, any Material Adverse Effect otherwise than as set forth or contemplated in
the Registration Statement; (iii) the representations and warranties contained in Section 6 of this
Agreement are true and correct with the same force and effect as though made at and as of the
Closing Date; (iv) the Primary Parties have complied in all material respects with all agreements
and satisfied all conditions on their part to be performed or satisfied at or prior to the Closing
Date including the conditions contained in this Section 10; (v) no stop order has been issued or,
to the best of their knowledge, is threatened, by the Commission or any
26
other governmental body; (vi) no order suspending the Offering and the Exchange, the
Conversion, the acquisition of all of the shares of the Bank by the Holding Company, the
transactions required under the Plan to consummate the Conversion or the effectiveness of the
Registration Statement has been issued and to the best of their knowledge, no proceedings for any
such purpose have been initiated or threatened by the OTS, the Commission, or any other federal or
state authority; (vii) to the best of their knowledge, no person has sought to obtain regulatory or
judicial review of the action of the OTS in approving the Plan or to enjoin the Conversion, and
(viii) that the officers and directors of the Primary Parties have agreed to abide by the
restrictions on the exercise of options and sale of Common Stock set forth in Section 8(cc).
(g) At the Closing Date, the Agent shall receive a letter from RP Financial, LC., dated as of
the Closing Date, (i) confirming that said firm is independent of the Primary Parties and is
experienced and expert in the area of corporate appraisals, (ii) stating in effect that the
Appraisal complies in all material respects with the applicable requirements of the Conversion
Regulations, and (iii) further stating that its opinion of the aggregate pro forma market value of
the Shares, expressed in the Appraisal as most recently updated, remains in effect.
(h) Prior to and at the Closing Date, none of the Primary Parties shall have sustained, since
the date of the latest financial statements included in the Registration Statement and Prospectus,
any material loss or interference with its business from fire, explosion, flood or other calamity,
whether or not covered by insurance, or from any labor dispute or court or governmental action,
order or decree, otherwise than as set forth in the Registration Statement and the Prospectus, and
since the respective dates as of which information is given in the Registration Statement and the
Prospectus, there shall not have been any material change, or any development involving a
prospective material change in, or affecting the general affairs of, management, financial
position, retained earnings, long-term debt, stockholders’ equity or results of operations of any
of the Primary Parties, otherwise than as set forth or contemplated in the Registration Statement
and the Prospectus, the effect of which, in any such case described above, in the Agent’s
reasonable judgment, is sufficiently material and adverse as to make it impracticable or
inadvisable to proceed with the Offering or the Exchange or the delivery of the Shares on the terms
and in the manner contemplated in the Prospectus and the Stockholders’ Proxy Statement.
(i) Prior to and at the Closing Date: (i) in the reasonable opinion of the Agent, there shall
have been no material adverse change in the financial condition or in the earnings, capital,
properties or business affairs of the Primary Parties considered as one enterprise, from and as of
the latest date as of which such condition is set forth in the Prospectus, except as referred to
therein; (ii) there shall have been no material transaction entered into by the Primary Parties,
independently or considered as one enterprise, from the latest date as of which the financial
condition of the Primary Parties is set forth in the Prospectus, other than transactions referred
to or contemplated therein; (iii) none of the Primary Parties shall have received from the OTS or
the FDIC any direction (oral or written) to make any material change in the method of conducting
their business with which it has not complied in all material respects (which direction, if any,
shall have been disclosed to the Agent) and which would reasonably be expected to have a Material
Adverse Effect; (iv) none of the Primary Parties shall have been in
27
default (nor shall an event have occurred which, with notice or lapse of time or both, would
constitute a default) under any provision of any agreement or instrument relating to any material
outstanding indebtedness; (v) no action, suit or proceeding, at law or in equity or before or by
any federal or state commission, board or other administrative agency, shall be pending or, to the
knowledge of the Primary Parties, threatened against any of the Primary Parties or affecting any of
their properties wherein an unfavorable decision, ruling or finding would reasonably be expected to
have a Material Adverse Effect; and (vi) the Shares shall have been qualified or registered for
offering, sale and exchange, as applicable, under the securities or “blue sky” laws of the
jurisdictions requested by the Agent.
(j) At or prior to the Closing Date, the Agent shall receive (i) a copy of the Conversion
Application and a copy of the letters from the OTS approving the Conversion Application and
authorizing the Prospectus, Members’ Proxy Statement and Stockholders’ Proxy Statement for use,
(ii) if available, a copy of the order from the Commission declaring the Registration Statement
effective, (iii) a certified copy of the articles of incorporation of the Holding Company, (iv) a
copy of Holding Company Application and a copy of the letter from the OTS approving the Holding
Company Application, (v) a certificate from the FDIC evidencing the Bank’s insurance of accounts,
and (vi) any other documents that Agent shall reasonably request.
(k) The “lock-up” agreements, each substantially in the form of Exhibit C hereto,
between the Agent and the persons set forth on Exhibit B hereto, relating to sales and
certain other dispositions of shares of Common Stock or certain other securities, shall be
delivered to the Agent on or before the date hereof and shall be in full force and effect on the
Closing Date.
(l) Subsequent to the date hereof, there shall not have occurred any of the following: (i) a
suspension or limitation in trading in securities generally on the New York Stock Exchange or
American Stock Exchange or in the over-the-counter market, or quotations halted generally on the
Nasdaq Stock Market, or minimum or maximum prices for trading have been fixed, or maximum ranges
for prices for securities have been required by either of such exchanges or FINRA or by order of
the Commission or any other governmental authority other than temporary trading halts or limitation
(A) imposed as a result of intraday changes in the Dow Xxxxx Industrial Average, (B) lasting no
longer than until the regularly scheduled commencement of trading on the next succeeding
business-day and (C) which when combined with all other such halts occurring during the previous
five (5) business days, total less than three (3); (ii) a general moratorium on the operations of
federally-insured financial institutions or a general moratorium on the withdrawal of deposits from
commercial banks or other federally-insured financial institutions declared by either federal or
state authorities; (iii) any material adverse change in the financial markets in the United States
or elsewhere; or (iv) any outbreak of hostilities or escalation thereof or other calamity or
crisis, including, without limitation, terrorist activities after the date hereof, the effect of
any of (i) through (iv) herein, in the judgment of the Agent, is so material and adverse as to make
it impracticable to market the Shares or to enforce contracts, including subscriptions or purchase
orders, for the sale of the Shares.
All such opinions, certificates, letters and documents will be in compliance with the
provisions hereof only if they are reasonably satisfactory in form and substance to the Agent and
28
to counsel for the Agent. Any certificate signed by an officer of the MHC, the Mid-Tier
Holding Company, the Holding Company or the Bank and delivered to the Agent or to counsel for the
Agent shall be deemed a representation and warranty by the MHC, the Mid-Tier Holding Company, the
Holding Company or the Bank, as the case may be, to the Agent as to the statements made therein. If
any condition to the Agent’s obligations hereunder to be fulfilled prior to or at the Closing Date
is not fulfilled, the Agent may terminate this Agreement (provided that if this Agreement is so
terminated but the sale of Shares is nevertheless consummated, the Agent shall be entitled to the
full compensation provided for in Section 4 hereof) or, if the Agent so elect, may waive any such
conditions which have not been fulfilled or may extend the time of their fulfillment.
Section 11. Indemnification.
(a) The Primary Parties, jointly and severally, agree to indemnify and hold harmless the
Agent, its officers, directors, agents, attorneys, servants and employees and each person, if any,
who control the Agent within the meaning of Section 15 of the 1933 Act or Section 20(a) of the 1934
Act, against any and all loss, liability, claim, damage or expense whatsoever (including but not
limited to settlement expenses, subject to the limitation set forth in the last sentence of
subsection (c) below), joint or several, that the Agent or any of such officers, directors, agents,
attorneys, servants, employees and controlling Persons (collectively, the “Related Persons”) may
suffer or to which the Agent or the Related Persons may become subject under all applicable federal
and state laws or otherwise, and to promptly reimburse the Agent and any Related Persons upon
written demand for any reasonable expenses (including reasonable fees and disbursements of counsel)
incurred by the Agent or any Related Persons in connection with investigating, preparing or
defending any actions, proceedings or claims (whether commenced or threatened) to the extent such
losses, claims, damages, liabilities or actions: (i) arise out of or are based upon any untrue
statement or alleged untrue statement of a material fact contained in the Registration Statement
(or any amendment or supplement thereto), the Prospectus (or any amendment or supplement thereto),
any Issuer-Represented Free Writing Prospectus, the Applications, or any blue sky application, or
other instrument or document of the Primary Parties or based upon written information supplied by
any of the Primary Parties filed in any state or jurisdiction to register or qualify any or all of
the Shares under the securities laws thereof (collectively, the “Blue Sky Applications”), or any
application or other document, advertisement, or communication (“Sales Information”) prepared, made
or executed by or on behalf of any of the Primary Parties with its consent or based upon written
information furnished by or on behalf of any of the Primary Parties, whether or not filed in any
jurisdiction, in order to qualify or register the Shares under the securities laws thereof, (ii)
arise out of or are based upon the omission or alleged omission to state in any of the foregoing
documents or information, a material fact required to be stated therein or necessary to make the
statements therein, in light of the circumstances under which they were made, not misleading; (iii)
arise from any theory of liability whatsoever relating to or arising from or based upon the
Registration Statement (or any amendment or supplement thereto), the Prospectus (or any amendment
or supplement thereto), any Issuer-Represented Free Writing Prospectus, the Applications, any Blue
Sky Applications or Sales Information or other documentation distributed in connection with the
Offering; or (iv) result from any claims made with respect to the accuracy, reliability and
completeness of the records of Eligible Account Holders and Supplemental Eligible Account Holders
or Other Members or for any denial or reduction of a subscription or order to purchase Common
Stock,
29
whether as a result of a properly calculated allocation pursuant to the Plan or otherwise,
based upon such records; provided, however, that no indemnification is required under this
subsection (a) to the extent such losses, claims, damages, liabilities or actions arise out of or
are based upon any untrue material statements or alleged untrue material statements in, or material
omission or alleged material omission from, the Registration Statement (or any amendment or
supplement thereto) or the Prospectus (or any amendment or supplement thereto), any
Issuer-Represented Free Writing Prospectus, the Applications, the Blue Sky Applications or Sales
Information or other documentation distributed in connection with the Conversion made in reliance
upon and in conformity with written information furnished to the Primary Parties by the Agent or
its representatives (including counsel) with respect to the Agent expressly for use in the
Registration Statement (or any amendment or supplement thereto) or Prospectus (or any amendment or
supplement thereto) under the caption “The Conversion Offering — Plan of Distribution; Selling
Agent Compensation”; provided, further, that the Primary Parties will not be responsible for any
loss, liability, claim, damage or expense to the extent a court of competent jurisdiction finds
they result primarily from material oral misstatements by the Agent to a purchaser of Shares that
are not based upon information in the Registration Statement or Prospectus, or from actions taken
or omitted to be taken by the Agent in bad faith or from the Agent’s gross negligence or willful
misconduct, and the Agent agrees to repay to the Primary Parties any amounts advanced to it by the
Primary Parties in connection with matters as to which it is found by a court of competent
jurisdiction not to be entitled to indemnification hereunder.
(b) The Agent agrees to indemnify and hold harmless the Primary Parties, their directors and
officers, agents, servants and employees and each person, if any, who controls any of the Primary
Parties within the meaning of Section 15 of the 1933 Act or Section 20(a) of the 1934 Act against
any and all loss, liability, claim, damage or expense whatsoever (including but not limited to
settlement expenses, subject to the limitation set forth in the last sentence of subsection (c)
below), joint or several, which they, or any of them, may suffer or to which they, or any of them,
may become subject under all applicable federal and state laws or otherwise, and to promptly
reimburse the Primary Parties and any such persons upon written demand for any reasonable expenses
(including fees and disbursements of counsel) incurred by them in connection with investigating,
preparing or defending any actions, proceedings or claims (whether commenced or threatened) to the
extent such losses, claims, damages, liabilities or actions arise out of or are based upon any
untrue statement or alleged untrue statement of a material fact contained in the Registration
Statement (or any amendment or supplement thereto), the Prospectus (or any amendment or supplement
thereto), any Issuer-Represented Free Writing Prospectus, the Applications or any Blue Sky
Applications or Sales Information or are based upon the omission or alleged omission to state in
any of the foregoing documents a material fact required to be stated therein or necessary to make
the statements therein, in the light of the circumstances under which they were made, not
misleading; provided, however, that each Agent’s obligations under this Section 11(b) shall exist
only if and only to the extent that such untrue statement or alleged untrue statement was made in,
or such material fact or alleged material fact was omitted from, the Applications, Registration
Statement (or any amendment or supplement thereto), the Prospectus (or any amendment or supplement
thereto), any Blue Sky Applications or Sales Information in reliance upon and in conformity with
written information furnished to the Primary Parties by the Agent or its representatives (including
counsel) expressly for use under the caption “The Conversion Offering — Plan of Distribution;
Selling Agent Compensation.”
30
(c) Each indemnified party shall give prompt written notice to each indemnifying party of any
action, proceeding, claim (whether commenced or threatened), or suit instituted against it in
respect of which indemnity may be sought hereunder, but failure to so notify an indemnifying party
shall not relieve it from any liability which it may have on account of this Section 11, Section 12
or otherwise. An indemnifying party may participate at its own expense in the defense of such
action. In addition, if it so elects within a reasonable time after receipt of such notice, an
indemnifying party, jointly with any other indemnifying parties receiving such notice, may assume
the defense of such action with counsel chosen by it reasonably acceptable to the indemnified
parties that are defendants in such action, unless such indemnified parties reasonably object to
such assumption on the ground that there may be legal defenses available to them that are different
from or in addition to those available to such indemnifying party. If an indemnifying party assumes
the defense of such action, the indemnifying parties shall not be liable for any fees and expenses
of counsel for the indemnified parties incurred thereafter in connection with such action,
proceeding or claim, other than reasonable costs of investigation. In no event shall the
indemnifying parties be liable for the fees and expenses of more than one separate firm of
attorneys (unless an indemnified party or parties shall have reasonably concluded that there may be
defenses available to it or them which are different from or in addition to those of other
indemnified parties) for all indemnified parties in connection with any one action, proceeding or
claim or separate but similar or related actions, proceedings or claims in the same jurisdiction
arising out of the same general allegations or circumstances. The Primary Parties shall be liable
for any settlement of any claim against the Agent (or its directors, officers, employees,
affiliates or controlling persons), made with the consent of the Primary Parties, which consent
shall not be unreasonably withheld. The Primary Parties shall not, without the written consent of
the Agent, settle or compromise any claim against them based upon circumstances giving rise to an
indemnification claim against the Primary Parties hereunder unless such settlement or compromise
provides that the Agent and the other indemnified parties shall be unconditionally and irrevocably
released from all liability in respect of such claim.
(d) The agreements contained in this Section 11 and in Section 12 hereof and the
representations and warranties of the Primary Parties set forth in this Agreement shall remain
operative and in full force and effect regardless of (i) any investigation made by or on behalf of
the Agent or its officers, directors, controlling persons, agents, attorneys, servants or employees
or by or on behalf of any of the Primary Parties or any officers, directors, controlling persons,
agents, attorneys, servants or employees of any of the Primary Parties; (ii) delivery of and
payment hereunder for the Shares; or (iii) any termination of this Agreement. To the extent
required by law, Sections 11 and 12 hereof are subject to and limited by Sections 23A and 23B of
the Federal Reserve Act.
Section 12. Contribution.
(a) In order to provide for just and equitable contribution in circumstances in which the
indemnification provided for in Section 11 is due in accordance with its terms but is found in a
final judgment by a court to be unavailable from the Primary Parties or the Agent, the Primary
Parties and the Agent shall contribute to the aggregate losses, claims, damages and liabilities of
the nature contemplated by such indemnification in such proportion so that (i) the Agent is
responsible for that portion represented by the percentage that the fees paid to the Agent
31
pursuant to Section 4 of this Agreement (not including expenses) (“Agent’s Fees”) bear to the
total proceeds received by the Primary Parties from the sale of the Shares in the Offering, net of
all expenses of the Offering, except Agent’s Fees and (ii) the Primary Parties shall be responsible
for the balance. If, however, the allocation provided above is not permitted by applicable law or
if the indemnified party failed to give the notice required under Section 11 above, then each
indemnifying party shall contribute to such amount paid or payable to such indemnified party in
such proportion as is appropriate to reflect not only such relative fault of the Primary Parties on
the one hand and the Agent on the other in connection with the statements or omissions which
resulted in such losses, claims, damages or liabilities (or actions, proceedings or claims in
respect thereof), but also the relative benefits received by the Primary Parties on the one hand
and the Agent on the other from the Offering, as well as any other relevant equitable
considerations. The relative benefits received by the Primary Parties on the one hand and the Agent
on the other hand shall be deemed to be in the same proportion as the total proceeds from the
Offering, net of all expenses of the Offering except Agent’s Fees, received by the Primary Parties
bear, with respect to the Agent, to the total fees (not including expenses) received by the Agent.
The relative fault shall be determined by reference to, among other things, whether the untrue or
alleged untrue statement of a material fact or the omission or alleged omission to state a material
fact relates to information supplied by the Primary Parties on the one hand or the Agent on the
other and the parties relative intent, good faith, knowledge, access to information and opportunity
to correct or prevent such statement or omission. The Primary Parties and the Agent agree that it
would not be just and equitable if contribution pursuant to this Section 12 were determined by
pro-rata allocation or by any other method of allocation which does not take account of the
equitable considerations referred to above in this Section 12. The amount paid or payable by an
indemnified party as a result of the losses, claims, damages or liabilities (or action, proceedings
or claims in respect thereof) referred to above in this Section 12 shall be deemed to include any
legal or other expenses reasonably incurred by such indemnified party in connection with
investigating or defending any such action, proceeding or claim. It is expressly agreed that the
Agent shall not be liable for any loss, liability, claim, damage or expense or be required to
contribute any amount which in the aggregate exceeds the amount paid (excluding reimbursable
expenses) to the Agent under this Agreement. It is understood and agreed that the above-stated
limitation on the Agent’s liability is essential to the Agent and that the Agent would not have
entered into this Agreement if such limitation had not been agreed to by the parties to this
Agreement. No person found guilty of any fraudulent misrepresentation (within the meaning of
Section 11(f) of the 0000 Xxx) shall be entitled to contribution with respect to any loss or
liability arising from such misrepresentation from any person who was not found guilty of such
fraudulent misrepresentation. For purposes of this Section 12, each of Agent’s and the Primary
Parties’ officers and directors and each person, if any, who controls the Agent or any of the
Primary Parties within the meaning of the 1933 Act and the 1934 Act shall have the same rights to
contribution as the Primary Parties and the Agent. Any party entitled to contribution, promptly
after receipt of notice of commencement of any action, suit, claim or proceeding against such party
in respect of which a claim for contribution may be made against another
party under this Section
12, will notify such party from whom contribution may be sought, but the omission to so notify such
party shall not relieve the party from whom contribution may be sought from any other obligation it
may have hereunder or otherwise than under this Section 12.
Section 13. Survival. All representations, warranties and indemnities contained in
this Agreement (and in Paragraph 12 of the Letter Agreement, “Confidentiality”), or all statements
32
contained in certificates of officers of the Primary Parties or the Agent submitted pursuant
hereto, shall remain operative and in full force and effect, regardless of any termination or
cancellation of this Agreement or any investigation made by or on behalf of the Agent or its
controlling persons, or by or on behalf of the Primary Parties and shall survive the issuance of
the Shares, and any legal representative, successor or assign of the Agent, any of the Primary
Parties, and any indemnified person shall be entitled to the benefit of the respective agreements,
indemnities, warranties and representations.
Section 14. Termination. The Agent may terminate this Agreement by giving the notice
indicated below in this Section at any time after this Agreement becomes effective as follows:
(a) In the event (i) the Plan is abandoned or terminated by the Holding Company; (ii) the
Holding Company fails to consummate the sale and issuance of the minimum number of Shares prior to
June 30, 2011 in accordance with the provisions of the Plan or as required by the Conversion
Regulations and applicable law; (iii) the Agent terminates this relationship because there has been
a material adverse change in the financial condition or operations of the Primary Parties
considered as one enterprise since the date of the latest financial statements included in the
Prospectus; or (iv) immediately prior to commencement of the Offering, the Agent terminates this
relationship because in its opinion, which shall have been formed in good faith after reasonable
determination and consideration of all relevant factors, there has been a failure to satisfactorily
disclose all relevant information in the Prospectus or the existence of market conditions that
might render the sale of the Shares inadvisable, this Agreement shall terminate and no party to
this Agreement shall have any obligation to the other hereunder except as set forth in Sections 3,
4, 9, 11 and 12 hereof.
(b) If any of the conditions specified in Section 10 hereof shall not have been fulfilled when
and as required by this Agreement, or by the Closing Date, or waived in writing by the Agent, this
Agreement and all of the Agent’s obligations hereunder may be canceled by the Agent by notifying
the Bank of such cancellation in writing at any time at or prior to the Closing Date, and any such
cancellation shall be without liability of any party to any other party except as otherwise
provided in Sections 3, 4, 9, 11 and 12 hereof.
(c) If the Agent elects to terminate this Agreement as provided in this Section, the Primary
Parties shall be notified by the Agent as provided in Section 15 hereof.
(d) If this Agreement is terminated in accordance with the provisions of this Agreement,
Stifel shall retain the conversion advisory and administrative services fee earned and paid to it
pursuant to Section 4 and the Primary Parties shall reimburse Stifel for its reasonable
out-of-pocket expenses pursuant to Section 9.
Section 15. Notices. All notices and other communications hereunder shall be in
writing and shall be deemed to have been duly given if mailed or transmitted by any standard form
of telecommunication. Notices to the Agent shall be directed to Xxxxxx, Xxxxxxxx & Company,
Incorporated, 000 Xxxx Xxxxxx, 0xx Xxxxx, Xxx Xxxx, Xxx Xxxx 00000, Attention: Xxx
Xxxxxxx, Executive Vice President (with a copy to Xxxxxxxxxx Xxxxxxxx LLP, Suite 900, 000
00xx Xxxxxx, XX, Xxxxxxxxxx, XX 00000-0000, Attention: Xxxxx X. Xxxxx, Esq.); notices to
the
33
Primary Parties shall be directed to Atlantic Coast Financial Corporation, 00000 Xxxx Xxx
Xxxxxxx, Xxxxx 000, Xxxxxxxxxxxx, Xxxxxxx 00000, Attention: Xxxxxx X. Xxxxxxx, Xx., Chief Operating
Officer (with a copy to Xxxx Xxxxxx Xxxxxxxx & Xxxxxx, P.C., Suite 780, 0000 Xxxxxxxxx Xxxxxx,
X.X., Xxxxxxxxxx, XX 00000, Attention: Xxxxxxx X. Xxxxxxxxxx, Esq.).
Section 16. Parties. This Agreement shall inure to the benefit of and be binding upon
the Agent and the Primary Parties, and their respective successors. Nothing expressed or mentioned
in this Agreement is intended or shall be construed to give any person, firm or corporation, other
than the parties hereto and their respective successors and the controlling persons and officers
and directors referred to in Sections 11 and 12 and their heirs and legal representatives, any
legal or equitable right, remedy or claim under or in respect of this Agreement or any provisions
herein contained. It is understood and agreed that this Agreement is the exclusive agreement among
the parties, supersedes any prior Agreement among the parties and may not be varied except by a
writing signed by all parties, except for Paragraph 12 of the Letter Agreement (“Confidentiality”),
which is not hereby superseded.
Section 17. Partial Invalidity. In the event that any term, provision or covenant
herein or the application thereof to any circumstances or situation shall be invalid or
unenforceable, in whole or in part, the remainder hereof and the application of said term,
provision or covenant to any other circumstance or situation shall not be affected thereby, and
each term, provision or covenant herein shall be valid and enforceable to the full extent permitted
by law.
Section 18. Entire Agreement; Amendment. This Agreement represents the entire understanding of
the Primary Parties and the Agent with respect to the transactions contemplated hereby and
supersedes any and all other oral or written agreements heretofore made, except for paragraph 12 of
the Letter Agreement (“Confidentiality”) and the Data Processing Records Management Agent
Engagement Terms, dated May 28, 2010 by and among the Primary Parties and Stifel, relating to the
Stifel’s providing information agent services in connection with the Conversion. No waiver,
amendment or other modification of this Agreement shall be effective unless in writing and signed
by the parties hereto.
Section 19. Construction and Waiver of Jury Trial. This Agreement shall be construed
in accordance with the laws of the State of New York without giving effect to its conflicts of laws
principles. Any dispute hereunder shall be brought in a court in the State of New York. Each of the
Primary Parties and the Agent waives all right to trial by jury in any action, proceeding, claim or
counterclaim (whether based on contract, tort or otherwise) related to or arising out of this
Agreement.
(Remainder of page intentionally left blank.)
34
If the foregoing is in accordance with your understanding of our agreement, please sign and
return to us a counterpart hereof, whereupon this instrument along with all counterparts will
become a binding agreement between you and us in accordance with its terms.
Very truly yours, ATLANTIC COAST FINANCIAL CORPORATION |
||||
By: | /s/ Xxx X. Xxxxx | |||
Xxx X. Xxxxx | ||||
Executive Chairman of the Board |
ATLANTIC COAST FEDERAL CORPORATION |
||||
By: | /s/ Xxx X. Xxxxx | |||
Xxx X. Xxxxx | ||||
Executive Chairman of the Board |
ATLANTIC COAST FEDERAL, MHC |
||||
By: | /s/ Xxxxxx X. Xxxxxxx, Xx. | |||
Xxxxxx X. Xxxxxxx, Xx. | ||||
President and Chief Executive Officer |
ATLANTIC COAST BANK |
||||
By: | /s/ Xxx X. Xxxxx | |||
Xxx X. Xxxxx | ||||
Executive Chairman of the Board |
The foregoing Agency Agreement is
hereby confirmed and accepted as
of the date first set forth above.
hereby confirmed and accepted as
of the date first set forth above.
XXXXXX, XXXXXXXX & COMPANY, INCORPORATED |
||||
By: | /s/ Xxx Xxxxxxx | |||
Xxx Xxxxxxx | ||||
Executive Vice President |