Company: BCTF
Filing Date: 2025-03-06
Form Type: 10-K
Source: 0001552781-25-000058
Chunk: 896

Company: Bancorp 34, Inc.
Filing Date: 2025-03-06
Form: 10-K
Item: Item 2
Chunk 896
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 included in the offering.

We
will pay all expenses incident to our performance under the registration rights agreement with the Funds, including, without limitation,
all SEC and Financial Industry Regulatory Authority, Inc. (“FINRA”) registration, filing and review fees, all fees and expenses
of complying with securities or state “blue sky” laws, all fees of counsel and independent public accountants retained by
us and those expenses of each Fund actually and reasonably incurred, including reasonable attorneys’ fees, not to exceed $50,000
in the aggregate per Fund. We are not required, however, to pay any underwriting discounts and selling commissions, stock transfer taxes
and fees of counsel (except as provided in the prior sentence) for the holders of registrable securities. We have also agreed to indemnify
the Funds and their affiliates who have securities included in a registration statement against specified liabilities, including certain
potential liabilities arising under the Securities Act, and the Funds have similarly agreed to indemnify us against specific liabilities.

Related
Party Transaction Policy

Transactions by us with
related parties are subject to regulatory requirements and restrictions. These requirements and restrictions include Sections 23A and
23B of the Federal Reserve Act (which govern certain transactions by us with our affiliates) and the Federal Reserve’s Regulation
O (which governs certain loans by us to our executive officers, directors and principal stockholders). We have also adopted policies
to comply with these regulatory requirements and restrictions, including policies governing the approval of related party transactions.
Under our policies, all transactions between us and our directors, officers and 5% stockholders are subject to the approval of a majority
of the independent and disinterested outside directors and are conducted on terms no less favorable than could be obtained from unaffiliated
third parties on an arm’s-length basis. In addition, we conduct an appropriate review of all related person transactions for potential
conflicts of interest on an ongoing basis, and all such transactions must be approved by the Audit Committee (or another independent
body of the board).

137

Director
Independence

Our securities
are not listed on a national securities exchange or any inter-dealer quotation system which has a requirement that a majority of directors
be independent. Our board has undertaken a review of the independence of each director on the Bancorp 34 board of directors under the
standards for director independence set forth in the NASDAQ Marketplace Rules. Under these rules, our board has affirmatively determined
that Ms. Ralls, Mr. Ahern, Mr