Document:

Unassociated Document

    THE
SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED, OR UNDER STATE SECURITIES LAWS. THESE
SECURITIES MAY NOT BE RESOLD OR TRANSFERRED UNLESS REGISTERED OR EXEMPT FROM
REGISTRATION UNDER SUCH ACT AND APPLICABLE STATE SECURITIES LAWS, AND HEDGING
TRANSACTIONS INVOLVING THESE SECURITIES MAY NOT BE CONDUCTED UNLESS IN
COMPLIANCE WITH THE SECURITIES ACT OF 1933, AS AMENDED.

     

    WARRANT
TO PURCHASE COMMON STOCK OF

    FLORIDA
GAMING CORPORATION

    

    Void
after December 11, 2011

    

    Number
of Shares: 30,000

    

    This
certifies that Steven L. Craig   (the “Holder”), for value
received, is entitled to purchase, subject to the terms and conditions of this
warrant (this “Warrant”), from
Florida Gaming Corporation, a Delaware corporation (the “Company”), having its
principal place of business at 3500 N.W. 37th Avenue,
Miami, Florida 33142, an aggregate of Thirty Thousand (30,000) shares (the
“Warrant
Shares”) of the Company’s common stock, par value $0.20 per share
(together with any common stock into which such common stock may be converted in
connection with any merger or consolidation of the Company, the “Common Stock”),
at a price per share of $6.00 (the “Exercise
Price”).

     

    This
Warrant shall be exercisable, in whole or in part, at any time or from time to
time from and after December 11, 2009 (the “Initial Exercise
Date”) up to and including 5:00 p.m. (Eastern Time) on December 11, 2011
(such date being referred to herein as the “Expiration Date”),
upon surrender to the Company at its principal office (or at such other location
as the Company may advise the Holder in writing) of this Warrant properly
endorsed with (i) the Exercise Form attached hereto duly completed and executed
and (ii) payment pursuant to Section 2 of the aggregate Exercise Price for the
number of Warrant Shares for which this Warrant is being exercised determined in
accordance with the provisions hereof.  The Exercise Price and the
number of Warrant Shares purchasable hereunder are subject to further adjustment
as provided in Section 4 of this Warrant.

     

    1.           Exercise; Issuance of
Certificates; Acknowledgement.  This Warrant is exercisable at
the option of the Holder of record hereof, at any time or from time to time on
or after the Initial Exercise Date up to the Expiration Date, for all or any
part of the Warrant Shares (but not for a fraction of a Warrant Share) which may
be purchased hereunder.  The Company agrees that the shares of Common
Stock purchased under this Warrant shall be and are deemed to be issued to the
Holder hereof as the record owner of such shares as of the close of business on
the date on which this Warrant shall have been surrendered, properly endorsed,
the completed, executed Exercise Form delivered and payment made for such
shares.  Certificates for the shares of the Common Stock so purchased,
together with any other securities or property to which the Holder hereof is
entitled upon such exercise, shall be delivered to the Holder hereof by the
Company at the Company’s expense within a reasonable time after the rights
represented by this Warrant have been so exercised.  Each certificate
so delivered shall be in such denominations of the Warrant Shares as may be
requested by the Holder hereof and shall be registered in the name of such
Holder.  In case of a purchase of less than all the Warrant Shares,
the Company shall execute and deliver to Holder within a reasonable time an
Acknowledgement in the form attached hereto indicating the number of Warrant
Shares which remain subject to this Warrant, if any.

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

     

    2.           Payment for
Shares.  The aggregate purchase price for Warrant Shares being
purchased hereunder must be paid by check or wire transfer of immediately
available funds to an account designated in writing by the Company to the
Holder.

     

    3.           Shares to be Fully Paid;
Reservation of Shares.  The Company covenants and agrees that
all shares of Common Stock which may be issued upon the exercise of the rights
represented by this Warrant will, upon issuance, be duly authorized, validly
issued, fully paid and nonassessable and free from all preemptive rights of any
shareholder and free and clear of all taxes, liens and charges with respect to
the issue thereof.  The Company further covenants and agrees that
during the period within which the rights represented by this Warrant may be
exercised, the Company will at all times have authorized and reserved, for the
purpose of issue or transfer upon exercise of the rights evidenced by this
Warrant, a sufficient number of shares of authorized but unissued shares of
Common Stock, or other securities and property, when and as required to provide
for the exercise of the rights represented by this Warrant in full.

     

    4.         Adjustment of Exercise Price
and Number of Shares.   The number of shares of Common Stock
issuable upon the exercise of this Warrant and the Exercise Price hereunder
shall be subject to adjustment from time to time upon the happening of certain
events, as follows:

     

     4.1   Dividends or Distributions
of Common Stock.  If the Company shall at any time or from time
to time after the date hereof make or issue, or fix a record date for the
determination of stockholders entitled to receive, a dividend or other
distribution on the Common Stock payable in additional shares of Common Stock,
then and in each such event the Exercise Price hereunder then in effect shall be
decreased as of the time of such issuance or, in the event such a record date
shall have been fixed, as of the close of business on such record date, by
multiplying the Exercise Price hereunder then in effect by a
fraction:  (a) the numerator of which shall be the total number of
shares of Common Stock (assuming the conversion or exercise of all outstanding
securities of the Company that are convertible into or exercisable for the
purchase of Common Stock, including the exercise of all options and warrants to
purchase Common Stock or securities that are convertible into or exercisable for
the purchase of Common Stock) issued and outstanding immediately prior to the
time of issuance or the close of business on such record date; and (b) the
denominator of which shall be the total number of shares of Common Stock
(assuming the conversion or exercise of all outstanding securities of the
Company that are convertible into or exercisable for the purchase of Common
Stock, including the exercise of all options and warrants to purchase Common
Stock or securities that are convertible into or exercisable for the purchase of
Common Stock) issued and outstanding immediately after the time of issuance or
the close of business on such record date.

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

     

    4.2            Dividends or Distributions
of Other Securities.  If the Company shall at any time or from
time to time after the date hereof make or issue, or fix a record date for the
determination of stockholders entitled to receive, a dividend or other
distribution on the Common Stock payable in securities of the Company other than
Common Stock and other than as otherwise adjusted in this Section 4, then and in
each such event the Holder shall be entitled to receive upon the exercise of
this Warrant, in addition to the number of shares of Common Stock receivable
thereupon, the kind and amount of such other securities receivable upon such
dividend or distribution, to which a holder of the number of shares of Common
Stock (or any shares of stock or other securities which may be) issuable upon
the exercise of this Warrant would have received if this Warrant had been
exercised immediately prior to such dividend or distribution, all subject to
further adjustment as provided herein.

     

    4.3           Stock Splits or
Combinations.  If the Company shall at any time subdivide the
outstanding shares of Common Stock, or if the Company shall at any time combine
the outstanding shares of Common Stock then the exercise price hereunder
immediately shall be decreased proportionally (in the case of a subdivision) or
increased proportionally (in the case of a combination).  Any such
adjustment shall become effective at the close of business on the date the
subdivision or combination becomes effective.

     

    4.4           Reclassification or
Reorganization.  If the Common Stock issuable upon the exercise
of this Warrant shall be changed into the same or different number of shares of
any class or classes of stock, whether by capital reorganization,
reclassification or otherwise (other than a subdivision or combination of shares
or stock dividend provided for in Section 4.1, 4.2 or 4.3 above, or a
reorganization, merger, consolidation or sale of assets provided for in Section
4.5 below), then and in each such event the Holder shall be entitled to receive
upon the exercise of this Warrant the kind and amount of shares of stock and
other securities and property receivable upon such reorganization,
reclassification or other change, to which a holder of the number of shares of
Common Stock (or any shares of stock or other securities which may be) issuable
upon the exercise of this Warrant would have received if this Warrant had been
exercised immediately prior to such reorganization, reclassification or other
change, all subject to further adjustment as provided herein.

     

    4.5           Merger, Consolidation or
Sale of Assets.  If at any time or from time to time there
shall be a capital reorganization of the Common Stock (other than a subdivision,
combination, reclassification or exchange of shares provided for elsewhere in
this Section 4) or a merger or consolidation of the Company with or into another
corporation, or the sale of all or substantially all of the Company’s assets and
properties to any other person or entity, then as a part of such reorganization,
merger, consolidation or sale, provision shall be made so that the Holder shall
thereafter be entitled to receive upon the exercise of this Warrant, the number
of shares of stock or other securities or property of the Company, or of the
successor corporation resulting from such reorganization, merger, consolidation
or sale, to which a holder of the number of shares of Common Stock (or any
shares of stock or other securities which may be) issuable upon the exercise of
this Warrant would have received if this Warrant had been exercised immediately
prior to such reorganization, merger, consolidation or sale.

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    4.6           Notice of Adjustment and
Record Dates.  The Company shall promptly notify the Holder in
writing of each adjustment or readjustment of the exercise price hereunder and
the number of shares of Common Stock issuable upon the exercise of this
Warrant.  Such notice shall state the adjustment or readjustment and
show in reasonable detail the facts on which that adjustment or readjustment is
based.  In the event of any taking by the Company of a record of the
holders of Common Stock for the purpose of determining the holders thereof who
are entitled to receive any dividend or other distribution, the Company shall
notify the Holder in writing of such record date at least ten (10) days prior to
the date specified therein.

     

    5.           Rights of
Holder.  This Warrant does not entitle the Holder to any voting
rights or any other rights as a stockholder of the Company prior to the date of
exercise hereof.

     

    6.           No
Impairment.  Except and to the extent as waived or consented to
by the Holder, the Company will not, by amendment of its Certificate of
Incorporation or through any reorganization, transfer of assets, consolidation,
merger, dissolution, issue or sale of securities or any other voluntary action,
avoid or seek to avoid the observance or performance of any of the terms to be
observed or performed hereunder by the Company, but will at all times in good
faith assist in the carrying out of all the provisions of this Warrant and in
the taking of all such action as may be necessary or appropriate in order to
protect the exercise rights of the Holder against impairment.

     

    7.           Transfer;
Assignment.  Neither this Warrant nor any legal, economic or
beneficial interest in this Warrant shall be transferred by way of sale,
exchange, conversion, assignment, pledge, gift or other disposition or transfer
(all of which acts shall be deemed included in the term “transfer” as used in
this Agreement) by the Holder to any person or entity.  Any attempt by
the Holder to transfer this Warrant, any rights, interests or obligations
hereunder in violation of this Section 7 shall be null and
void.  Subject to the preceding sentences, this Warrant shall be
binding upon, inure to the benefit of and be enforceable by the parties and
their respective successors and assigns.

     

    8.           Loss, Theft, Destruction or
Mutilation of Warrant.  If this Warrant is mutilated, lost,
stolen or destroyed, the Company shall issue and deliver in substitution for and
upon cancellation of the mutilated Warrant, or in substitution for the Warrant
lost, stolen or destroyed, a new warrant or warrants of like tenor and
representing an equivalent right or interest, but only upon, in the case of a
lost, stolen or destroyed certificate, receipt of evidence reasonably
satisfactory to the Company of such loss, theft or destruction.  If
required by the Company, then Holder shall furnish an affidavit or other
evidence reasonably satisfactory to the Company of the loss, theft or
destruction of such Warrant and an indemnification agreement.

     

    9.           Modification and
Waiver.  Any term of this Warrant may be amended and the
observance of any term of this Warrant may be waived (either generally or in a
particular instance and either retroactively or prospectively), only with the
written consent of the Company and the Holder.  Any amendment or
waiver effected in accordance with this paragraph shall be binding upon the
Company and the Holder.

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    10.           Notices.  Except
as may be otherwise provided herein, all notices, requests, waivers and other
communications made pursuant to this Warrant shall be in writing and shall be
conclusively deemed to have been duly given (a) when hand delivered to the
other party; (b) when sent by facsimile to the number set forth below if
sent between 8:00 a.m. and 5:00 p.m. recipient’s local time on a business day,
or on the next business day if sent by facsimile to the number set forth below
if sent other than between 8:00 a.m. and 5:00 p.m. recipient’s local time on a
business day; (c) three business days after deposit in the U.S. mail with
first class or certified mail receipt requested postage prepaid and addressed to
the other party at the address set forth below; or (d) the next business
day after deposit with a national overnight delivery service, postage prepaid,
addressed to the parties as set forth below with next business day delivery
guaranteed, provided that the sending party receives a confirmation of delivery
from the delivery service provider.  Each person making a
communication hereunder by facsimile shall promptly confirm by telephone to the
person to whom such communication was addressed each communication made by it by
facsimile pursuant hereto but the absence of such confirmation shall not affect
the validity of any such communication.  A party may change or
supplement the addresses given above, or designate additional addresses, for
purposes of this Section 10 by giving the other party written notice of the
new address in the manner set forth above.  The addresses for the
parties are as follows:

     

    For the
Company:

    

    Florida
Gaming Corporation

    2669
Charlestown Road

    New
Albany, Indiana  47150

    Fax:  (812)
945-7717

    

    For the
Holder:

    

    Steven L.
Craig

    4500 PGA
Blvd., Suite 304-B

    Palm
Beach Gardens, FL  33418

    

    11.           Saturdays, Sundays, Holidays
etc.  If the last or appointed day for the taking of any action
or the expiration of any right required or granted herein shall not be a day, other than a Saturday, Sunday or
one on which banks are authorized by law or regulation to be closed in either
New York, New York or San Francisco, California (a “Business Day”), then
such action may be taken or such right may be exercised on the next succeeding
day that is a Business Day.

     

    12.           Titles and Subtitles;
Governing Law; Venue.  The titles and subtitles used in this
Warrant are used for convenience only and are not to be considered in construing
or interpreting this Agreement.  This Warrant is to be construed in
accordance with and governed by the internal laws of the State of Delaware
without giving effect to any choice of law rule that would cause the application
of the laws of any jurisdiction other than the internal laws of the State of
Delaware to the rights and duties of the Company and the Holder.  All
disputes and controversies arising out of or in connection with this Warrant
shall be resolved exclusively by the state and federal courts located in the
State of Delaware, and each of the Company and the Holder hereto agrees to
submit to the jurisdiction of said courts and agrees that venue shall lie
exclusively with such courts.

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    13.           Specific
Performance.  The Company agrees that the remedies at law of
the Holder of this Warrant in the event of any default or threatened default by
the Company in the performance of or compliance with any of the terms of this
Warrant are not and will not be adequate and that, to the fullest extent
permitted by law, such terms maybe specifically enforced by a decree for the
specific performance of any obligation contained herein or by an injunction
against a violation of any of the terms hereof or otherwise.

     

    IN WITNESS WHEREOF, the Company and the
Holder have caused this Warrant to be duly executed as of this 11th day of
December, 2009.

     

    
      
        
          
            
              
                
                  
                    
                      
                        
                          	
                                  FLORIDA
      GAMING CORPORATION

                                
	 
      	 
      
	
                                  By:

                                	
                                  /s/ W.
      Bennett Collett   

                                
	
                                  Name:

                                	
                                  W.
      Bennett Collett

                                
	
                                  Title:

                                	
                                  Chairman
      and CEO

                                
	 
      	 
      
	
                                  HOLDER:

                                
	
                                  /s/
      Steven
      L. Craig  

                                
	
                                  Steven
      L.
Craig

                                

                        

                      

                    

                  

                

              

            

          

        

      

    

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    EXERCISE
FORM

    

    (To be
signed only upon exercise of Warrant)

    

    To:  __________________________

    

    The undersigned, the holder of a right
to purchase shares of Common Stock of FLORIDA GAMING CORPORATION (the “Company”) pursuant to
that certain Warrant to Purchase Shares of Florida Gaming Corporation (the
“Warrant”),
dated as of December 11, 2009, hereby irrevocably elects to exercise the
purchase right represented by such Warrant for, and to purchase thereunder,
__________________________ (_________) shares of Common Stock of the Company and
herewith makes payment of _________________________________ Dollars
($__________) therefor by the following method:

    

    (Check one of the
following):

    

    
      
        
          	
                  _______
      (check if applicable)

                	
                  The
      undersigned hereby elects to make payment of ______________ Dollars
      ($___________) therefor in cash.

                
	 
      	 
      
	
                  _______
      (check if applicable)

                	
                  The
      undersigned hereby elects to make payment for the aggregate exercise price
      of this exercise using the Net Issuance method pursuant to Section 2 of
      the Warrant.

                

        

      

    

    

    The undersigned represents that it is
acquiring such securities for its own account for investment and not with a view
to or for sale in connection with any distribution thereof.

    

    
      
        	
                DATED:

              	
                   

              

      

    

    

    
      
        	
                   

              
	
                Steven
      L. CraigUnassociated Document

    ATLANTIC
COAST BANK

    2005
AMENDED AND RESTATED

    DIRECTOR
RETIREMENT PLAN

     

    The
Atlantic Coast Bank 2005 Amended and Restated Director Retirement Plan (the
“Plan”) was originally established on July 1, 2001, was amended and restated
effective January 1, 2005, and is amended and restated effective December 11,
2009 in order to make certain changes to the Plan’s vesting and benefit
calculation provisions.

     

    The
purpose of the Plan is to provide retirement benefits to those non-employee
members of the Board of Directors (“Directors”) who have contributed
significantly to the success and growth of Atlantic Coast Bank (the “Bank”) and
its holding company, Atlantic Coast Federal Corporation (the “Company”) (and any
successors thereto), and the Bank’s predecessor, Atlantic Coast Federal Credit
Union, whose services are vital to its continued growth and success in the
future and who are to be encouraged to remain a member of such Boards until
retirement.

     

    ARTICLE
I

    ELIGIBILITY
AND VESTING

     

    1.1          Eligibility.  Each
individual who is a Director of the Bank (or any predecessors or successors)
shall be eligible to participate in the Plan (“Participants”).

     

    1.2          Vesting.

     

    (a)           Participants
shall vest in their benefits under this Plan upon the earliest to occur of the
date (i) Atlantic Coast Federal, MHC completes a Second-Step Conversion (as
defined below), (ii) of a Change in Control, (iii) the Participant dies pursuant
to Section 2.2, or (iv) the Plan Administrator, in its sole discretion,
accelerates vesting.  Notwithstanding the preceding provisions, any
Participant who resigns at the request of, or is removed from service by, the
Office of Thrift Supervision, Federal Deposit Insurance Corporation or any other
regulatory authority for the Bank, shall be ineligible to participate and shall
forfeit any benefits under this Plan.

     

    (b)           “Second-Step
Conversion” means the conversion and reorganization of Atlantic Coast Federal,
MHC, the Company and the Bank from a mutual holding company structure to a fully
public ownership structure.

     

    (c)           “Change
in Control” means the
following:

     

    (i)           A “change in the ownership” of the Bank
or the Company, a “change in the effective control” of the Bank or the Company,
or a “change in the ownership of a substantial portion of the assets” of the
Bank or the Company, each described below.  Notwithstanding anything
herein to the contrary, a Second-Step Conversion shall not be deemed a Change in
Control.

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

     

    (ii)          A
“change in ownership” occurs on the date that anyone person, or more than one
person acting as a group (as defined in Treasury Regulation Section
1.409A-3(i)(5)(v)(B)), acquires ownership of stock of the Bank or Company that,
together with stock held by such person or group, constitutes more than 50
percent of the total fair market value or total voting power of the stock of
such corporation.

     

    (iii)         A
“change in the effective control” of the Bank or Company occurs on the date that
either (A) anyone person, or more than one person acting as a group (as defined
in Treasury Regulation Section 1.409A-3(i)(5)(vi)(B)) acquires (or has acquired
during the 12-month period ending on the date of the most recent acquisition by
such person or persons) ownership of stock of the Bank or Company possessing 30
percent or more of the total voting power of the stock of the Bank or Company,
or (B) a majority of the members of the Bank’s or Company’s board of directors
is replaced during any 12-month period by directors whose appointment or
election is not endorsed by a majority of the members of the Bank’s or Company’s
board of directors prior to the date of the appointment or election, provided
that this subsection (B) is inapplicable where a majority shareholder of the
Bank or Company is another corporation.

     

    (iv)         A “change in a substantial portion of
the assets” of the Bank or the Company occurs on the date that anyone person or
more than one person acting as a group (as defined in Treasury Regulation
Section 1.409A-3(i)(5)(vii)(C)) acquires (or has acquired during the 12-month
period ending on the date of the most recent acquisition by such person or
persons) assets from the Bank or Company that have a total gross fair market
value equal to or more than 40 percent of the total gross fair market value of
(A) all of the assets of the Bank or Company, or (B) the value of the assets
being disposed of, either of which is determined without regard to any
liabilities associated with such assets.  For all purposes hereunder,
the definition of Change in Control shall be construed to be consistent with the
requirements of Treasury Regulation Section 1.409A-3(i)(5), except to the extent
that such regulations are superseded by subsequent guidance.

     

    ARTICLE
II

    BENEFIT

     

    2.1          Appreciation
Benefit.

     

    (a)           Upon
the earlier to occur of (i) “Separation from Service” (as defined below) at or
after age sixty-five (65) (“Normal Retirement Age”), or (ii) the closing date of
a Second-Step Conversion, the Bank shall pay the Participant their vested
“Appreciation Benefit” (as defined below) payable in equal monthly installments
over a period of One Hundred Twenty (120) months (the “Benefit Period”),
commencing on the first day of the month following the date payment is scheduled
to commence.  Any Participant who has at least 240 full months of
service, whether continuous or otherwise, may receive such annual benefit for
the Benefit Period upon Separation from Service prior to age of 65 provided that
the Separation from Service follows a Second-Step Conversion.

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    (b)           “Separation
from Service” means the Participant’s retirement or termination from service
from the Board. For these purposes, a Participant shall not be deemed to have a
Separation from Service until the Participant no longer serves on the Board of
the Bank, the Bank’s holding company, or any member of a controlled group of
corporations with the Bank or holding company within the meaning of Final
Treasury Regulation §1.409A-l(a)(3).  In addition, service on the
Board of the Bank as an “emeritus director” will not constitute a Separation
from Service until such individual ceases to serve in such
capacity.  Whether a Participant has had a Separation from Service
shall be determined in accordance with the requirements of Final Treasury
Regulation §1.409A-l(h).

     

    (c)           “Appreciation
Benefit” means mean an amount equal to the Prior Benefit Component (as defined
below) plus the Stock Award Component (as defined below) plus the Stock
Ownership Component (as defined below) multiplied by the Issue Price (as defined
below) multiplied by the Exchange Ratio (as defined below).  For
example, if the Participant’s Prior Benefit Component had 20,000 shares of
common stock of the Company (“Company Stock”), the Stock Award Component had
30,000 shares of Company Stock and the Stock Ownership Component had 25,000
shares of Company Stock; the Issue Price was $10.00 and the Exchange Ratio was
60 percent, then the Participant’s Appreciation Benefit would be equal to
$450,000 [(20,000+30,000+25,000)($10.00)(.6)].  The Company will pay interest on unpaid
balance of the Executive’s Appreciation Benefit at the rate of three percent per
annum.

     

    (i)           “Prior
Benefit Component” shall mean a number of shares of Company Stock equal to the
Participant’s benefit under the Agreement as of December 11, 2009, divided by
the Fair Market Value of Company Stock (as defined below) on December 11,
2009.  For example, the Participant’s prior benefit under the terms of
the Agreement on December 11, 2009 was $40,000 and the Fair Market Value of
Company Stock on December 11, 2009 was $2.00.  The Participant is
deemed to have, for purposes of the Agreement, 20,000 shares of Company Stock
($40,000/$2.00) in the Prior Benefit Component.  For purposes of the
Plan, “Fair Market Value of Company Stock” means the per share closing price of common stock
of the Company, as reported by the principal exchange or market over which the
shares are then listed or regularly traded.

     

    (ii)          “Stock
Award Component” shall mean the number of shares of Company Stock awarded to the
Participant under the Atlantic Coast Federal Corporation 2005 Recognition and
Retention Plan that are still held by the Participant on December 11,
2009.

     

    (iii)         “Stock
Ownership Component” shall mean the number of shares of Company Stock directly
or beneficially owned by the Participant (as that term is defined in
Rule 13d-3 under the Securities Exchange Act of 1934, as amended,
disregarding any beneficial ownership of stock options) as of December 11,
2009.

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

     

    (iv)         “Issue
Price” shall mean the initial offered price of the common stock of the newly
formed successor corporation that is issued in connection with the Second-Step
Conversion.

     

    (v)    
     “Exchange Ratio” shall mean the ratio used to
determine the number of shares of common stock in of a successor corporation
each share of Atlantic Coast Federal Corporation will exchanged for in a
Second-Step Offering. The Exchange Ratio will be determined as part of the
independent valuation conducted in connection with the Second-Step
Offering.

     

    In the event the Participant dies
pursuant to Section 2.2, or there is a Change in Control prior to the date of
closing of the Second-Step Conversion, the Fair Market Value of Company Stock as
of the date of death or Change in Control will be substituted for the Issue
Price and the Exchange Ratio as of the date of closing of the Second-Step
Conversion.  For example, the Participant dies prior to the closing of
the Second-Step Conversion.  The Fair Market Value of Company Stock on
that date is $4.00 per share.  In this instance, the Participant’s
Appreciation Benefit is $300,000 [(20,000+30,000+$25,000)*$4.00]. The Company
will pay interest on unpaid balance of the Participant’s Appreciation Benefit at
the rate of three percent per annum.

     

    In the
event of any change in Company Stock through stock dividends, split-ups, stock
splits or reverse stock splits, recapitalizations, reclassifications,
conversions or otherwise, then the Board will make appropriate adjustment or
substitution in the aggregate value of the Prior Benefit Component, the Stock
Award Component and the Stock Ownership Component.

     

    2.2          Death
Benefit.  In
the event a Participant dies and has at least 60 full months of service with the
Bank, the Company or one of their affiliates or subsidiaries, (whether
continuous or otherwise), then the Participant will become vested in his or her
Appreciation Benefit.  Such Appreciation Benefit shall be paid to the
Participant’s “Beneficiary” (as defined below) in a lump sum on the first
business day of the month following the Participant’s death.  If a
Participant dies prior to attaining 60 full months of service, and is not
otherwise vested, then he or she will forfeit his or her Appreciation
Benefit.  “Beneficiary” means the person(s) designated by the
Participant on the form set forth at Appendix A to receive
any death benefits hereunder. If the Participant has not designated a
Beneficiary, the Participant’s spouse shall be the Beneficiary.  In
the absence of any surviving Beneficiary or spouse, the benefits shall be paid
to the Participant’s estate.

     

    2.3          Unforeseeable
Emergency.

     

    (a)           Upon
an “Unforeseeable Emergency” (as defined below), (i) a Participant who is vested
in his or her benefit hereunder but has not yet begun to receive payments; or
(ii) a Participant who is receiving Appreciation Benefits, may request a lump
sum payment in an amount necessary (but not exceeding the present value of the
remaining benefits) to meet the Unforeseeable Emergency, including an amount
necessary to pay any taxes due as a result of such lump sum payment from the
Plan. The present value shall be equal to the amount accrued by the Bank in
accordance with generally accepted accounting principles.

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

    (b)           “Unforeseeable
Emergency” means a severe financial hardship to the Participant or Beneficiary
resulting from (i) an illness or accident of the Participant or Beneficiary, his
or her spouse, or dependent (as defined in Code Section 152(a)); (ii) loss of
the Participant’s or Beneficiary’s property due to casualty; or (iii) other
similar extraordinary and unforeseeable circumstances arising as a result of
events beyond the control of the Participant or Beneficiary.  The term
“Unforeseeable Emergency” shall be construed consistent with Code Section 409A
and the final regulations and other guidance issued thereunder.

     

    (c)           Tax
Withholding.  All benefits paid under this Plan shall be
subject to withholding in accordance with federal and state law.

     

    ARTICLE
III

    ADMINISTRATION
CLAIMS PROCEDURES

     

    3.1          Plan
Administrator.  The
Board of Directors of the Bank (the “Board”) is hereby designated the Plan
Administrator.

     

    3.2          Powers of Plan
Administrator.  As
Plan Administrator, the Board shall be responsible for the management, control,
interpretation and administration of this Plan and may allocate to others
certain aspects of the management and operational responsibilities of the Plan
including the employment of advisors and the delegation of any ministerial
duties to qualified individuals. All decisions of the Plan Administrator shall
be final and binding on all persons.

     

    3.3          Claims
Procedures.  Claims for benefits hereunder shall be submitted
to the President of the Bank, as agent for the Plan Administrator. In the event
a claim for benefits is wholly or partially denied under this Plan, the
Participant or any other person claiming benefits under this Plan (a
“Claimant”), shall be given notice of the denial in writing within thirty (30)
calendar days after the Plan Administrator’s receipt of the claim. The Plan
Administrator may extend this period for an additional thirty (30) calendar
days. Any denial must specifically set forth the reasons for the denial and any
additional information necessary to perfect the claim for benefits. The Claimant
shall have the right to seek a review of the denial by filing a written request
with the Plan Administrator within sixty (60) calendar days after receipt of the
initial denial. Such request may be supported by such documentation and evidence
deemed relevant by the Claimant. Following receipt of this information, the Plan
Administrator shall make a final determination and notify the Claimant within
sixty (60) calendar days of the Plan Administrator’s receipt of the request for
review together with the specific reasons for the decision.

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

    ARTICLE
IV

    AMENDMENT
AND TERMINATION

    

    4.1          Amendments.  The
Board may amend this Plan any time, but no such amendment shall affect the
rights of, or reduce the benefits to, any Participant without their written
consent.

     

    4.2          Termination.  The
Board may completely terminate the Plan. Subject to the requirements of Code
Section 409A, in the event of complete termination with respect to such
benefits, the Plan shall cease to operate and the Bank shall payout to each
Participant his or her account as if that Participant had terminated service as
of the effective date of the complete termination. Such complete termination of
the Plan shall occur only under the following circumstances and
conditions:

     

    (a)           The
Board may terminate the Plan within 12 months of a corporate dissolution taxed
under Code section 331, or with approval of a bankruptcy court pursuant to II
U.S.C. §503(b)(1 )(A), provided that the amounts deferred under the Plan are
included in each Participant’s gross income in the latest of (i) the calendar
year in which the Plan terminates; (ii) the calendar year in which the amount is
no longer subject to a substantial risk of forfeiture; or (iii) the first
calendar year in which the payment is administratively practicable.

     

    (b)           The
Board may terminate the Plan within the 30 days preceding a Change in Control
(but not following a Change in Control), provided that the Plan shall only be
treated as terminated if all substantially similar arrangements sponsored by the
Bank are terminated so that the Participants and all participants under
substantially similar arrangements are required to receive all amounts of
compensation deferred under the terminated arrangements within 12 months of the
date of the termination of the arrangements.

     

    (c)           The
Board may terminate the Plan provided that (i) the termination and liquidation
does not occur proximate to a downturn in the financial health of the Bank or
Company, (ii) all arrangements sponsored by the Bank that would be aggregated
with this Plan under Final Regulations Section 1.409A-I(c) if the Participant
covered by this Plan was also covered by any of those other arrangements are
also terminated; (iii) no payments other than payments that would be payable
under the terms of the arrangement if the termination had not occurred are made
within 12 months of the termination of the arrangement; (iv) all payments are
made within 24 months of the termination of the arrangements; and (v) the Bank
does not adopt a new arrangement that would be aggregated with any terminated
arrangement under Final Regulations Section 1.409A-I(c) if the Participant
participated in both arrangements, at any time within three years following the
date of termination of the arrangement.

     

    (d)           The
Board may terminate the Plan pursuant to such other terms and conditions as the
Internal Revenue Service may permit from time to time.

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

    ARTICLE
V

    UNFUNDED
ARRANGEMENT

    

    5.1     
    Unsecured General
Creditors.  The
Participant and Beneficiaries are general unsecured creditors of the Bank for
the payment of benefits under this Plan. The benefits represent the mere promise
by the Bank to pay such benefits. The benefits payable under this Plan are
payable from the general assets of the Bank and no special fund or arrangement
is intended to be established hereby nor shall the Bank be required to earmark,
place in trust or otherwise segregate assets with respect to this Plan or any
benefits hereunder.

     

    5.2          Rabbi
Trust.  The
Bank shall be responsible for the payment of all benefits provided under the
Plan. At its discretion, the Bank may establish one or more trusts, with such
trustees as the Board may approve, for the purpose of providing for the payment
of such benefits.  Such trust or trusts may be irrevocable, but the
assets thereof shall be subject to the claims of the Bank’s creditors. To the
extent any benefits provided under the Plan are actually paid from any such
trust, the Bank shall have no further obligation with respect thereto, but to
the extent not so paid, such benefits shall remain the obligation of, and shall
be paid by, the Bank. Under no circumstances shall a Participant serve as
trustee or co-trustee of any trust established by the Bank pursuant to this
Plan.

     

    ARTICLE
VI

    MISCELLANEOUS

    

    6.1           No Guarantee of Continued
Service on the Board.  This
Plan does not constitute a guaranty of continued service on the
Board.

     

    6.2           Binding Effect.  This
Plan shall be binding upon the Bank, the Company and their successors and
assigns, and upon the Participants and the Beneficiaries and legal
representatives of the Participant.

     

    6.3           No Assignment.  Neither
the Participant nor any Beneficiary or personal representative of the
Participant can assign any of the rights to benefits under this Plan. Any
attempt to anticipate, sell, transfer, assign, pledge, encumber or change the
Participant’s right to receive benefits shall be void. The rights to benefits
are not subject in any manner to anticipation, alienation, sale, transfer,
assignment, pledge, encumbrance, attachment or garnishment by
creditors.

     

    6.4           Choice
of Law.  This
Plan shall be construed under and governed by the laws of the State of Georgia,
except to the extent preempted by the laws of the United States of
America.

     

    6.5           Payment
to Guardians.  If a
Participant’s benefit is payable to a minor or a person declared incompetent or
to a person incapable of handling the disposition of his property, the Plan
Administrator may direct payment of such Plan benefit to the guardian, legal
representative or person having the care and custody of such minor, incompetent
or person. The Plan Administrator may require proof of incompetency, minority,
incapacity or guardianship as it may deem appropriate prior to distribution of
the Plan benefit. Such distribution shall completely discharge the Plan
Administrator and the Bank from all liability with respect to such
benefit.

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

    IN WITNESS WHEREOF, the Bank
has caused this amended and restated Plan to be executed by its duly authorized
officer.

    

    
      
        	 
      	
                ATLANTIC
      COAST BANK

              
	 
      	 
      
	
                December
      11, 2009

              	
                By:

              	
                /s/
      Robert J. Larison, Jr.

              
	
                Date

              	 
      	
                Robert
      J. Larison, Jr. President and

              
	 
      	 
      	
                Chief
      Executive Officer

              

      

    

    
      
         

      

      
        8

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