Document:

Exhibit 10.1

 

STANDSTILL AGREEMENT

 

THIS STANDSTILL AGREEMENT (the “Agreement”),
dated this 20th day of February 2018, is by and among MB Bancorp, Inc. (the “Company”), Stilwell Activist Fund, L.P.
(“Activist Fund”), Stilwell Activist Investments, L.P. (“Activist Investments”), Stilwell Partners, L.P.
(“Stilwell Partners”), Stilwell Value LLC (“Stilwell Value”), and Joseph Stilwell, an individual (collectively,
with Activist Fund, Activist Investments, Stilwell Partners, and Stilwell Value, the “Stilwell Group,” and each individually,
a “Stilwell Group Member”), and Corissa J. Briglia, an individual (the “Nominee”).

 

RECITALS

 

WHEREAS, the Company, the Stilwell
Group and the Nominee have agreed that it is in their mutual interests to enter into this Agreement.

 

NOW THEREFORE, in consideration of
the Recitals and the representations, warranties, covenants and agreements contained herein and other good and valuable consideration,
and intending to be legally bound hereby, the parties hereto agree as follows:

 

1.           Representations
and Warranties of the Stilwell Group Members. The Stilwell Group Members individually and collectively represent and warrant
to the Company, as follows:

 

(a)       The
Stilwell Group has fully disclosed in Exhibit A to this Agreement the total number of shares of common stock of the Company,
par value $0.01 per share (“Company Common Stock”), as to which it is the beneficial owner, and neither the Stilwell
Group, any Stilwell Group Member nor the Nominee nor any of their affiliates has (i) a right to acquire any interest in any capital
stock of the Company, or (ii) a right to vote any shares of capital stock of the Company other than as set forth in Exhibit
A;

 

(b)       The
Stilwell Group and each Stilwell Group Member has full power and authority to enter into and perform their obligations under this
Agreement, and the execution and delivery of this Agreement by the Stilwell Group and each Stilwell Group Member has been duly
authorized by the Stilwell Group and each Stilwell Group Member. This Agreement constitutes a valid and binding obligation of the
Stilwell Group and the Stilwell Group Members and the performance of its terms will not constitute a violation of any limited partnership
agreement, operating agreement, bylaws, or any agreement or instrument to which the Stilwell Group or any Stilwell Group Member
is a party;

 

(c)       There
are no other persons who, by reason of their personal, business, professional or other arrangement with the Stilwell Group or any
Stilwell Group Member, have agreed, in writing or orally, explicitly or implicitly, to take any action on behalf of or in lieu
of the Stilwell Group or any Stilwell Group Member that would be prohibited by this Agreement; and

 

(d)       There
are no arrangements, agreements or understandings concerning the subject matter of this Agreement between the Stilwell Group or
any Stilwell Group Member and the Company or between the Stilwell Group or any Stilwell Group Member and the Nominee other than
as set forth in this Agreement.

 

     

     

    

 

		2.	Representations and Warranties of the Company.

 

(a)       The
Company hereby represents and warrants to the Stilwell Group that the Company has full power and authority to enter into and perform
its obligations under this Agreement and that the execution and delivery of this Agreement by the Company has been duly authorized
by the Board of Directors of the Company. This Agreement constitutes a valid and binding obligation of the Company and the performance
of its terms will not constitute a violation of its articles of incorporation, charter or bylaws or any agreement or instrument
to which the Company is a party; and

 

(b)       The
Company hereby represents and warrants to the Stilwell Group that there are no arrangements, agreements, or understandings concerning
the subject matter of this Agreement between the Stilwell Group or any Stilwell Group Member and the Company other than as set
forth in this Agreement.

 

		3.	Covenants.

 

(a)       During
the term of this Agreement, the Company covenants and agrees as follows:

 

(i)       Effective
March 27, 2018, the Board of Directors of the Company will be expanded by one board seat, and the Nominee will be appointed a director
of the Company to serve in the class of directors with terms expiring at the Company’s 2018 Annual Meeting of Stockholders
and will be nominated at the 2018 Annual Meeting of Stockholders to serve until the 2019 Annual Meeting of Stockholders or, in
each case, until her successor, if any, is elected and qualified. Effective March 27, 2018, the Board of Directors of the Company
will cause the Board of Directors of, its wholly owned subsidiary Madison Bank of Maryland (the “Bank”) to expand the
Bank’s Board of Directors by one board seat and to appoint the Nominee to fill the vacancy created by the expansion of the
Bank’s Board of Directors to serve in the class of directors with terms expiring at the Bank’s 2018 Annual Meeting
of Stockholders and to elect the Nominee for an additional one year term expiring at the Bank’s 2019 Annual Meeting of Stockholders
or, in each case, until her successor, if any, is elected and qualified;

 

(ii)       Upon
her appointment and qualification to the Company’s and the Bank’s Boards of Directors, the Nominee shall be treated
on a consistent basis with other members of the Company’s and the Bank’s Boards of Directors with respect to compensation
and benefits, including with respect to grants of shares and options to purchase shares;

 

(iii)       Should
the Nominee’s position as a director of the Company or the Bank be terminated during the term of this Agreement due to her
resignation, death, permanent disability or otherwise, the Company shall appoint a replacement director, selected by the Stilwell
Group (“Replacement Director”), subject to the approval of the Company, which approval shall not be unreasonably withheld,
and the Replacement Director shall, subject to his or her agreement to honor the provisions of Sections 3(c) and 3(d) hereof, be
appointed to the Boards of the Company and the Bank.

 

    	 	 2	 

     

    

  

(b)       During
the term of this Agreement, the Stilwell Group and each Stilwell Group Member covenant and agree not to do the following, directly
or indirectly, alone or in concert with any affiliate, other group or other person:

 

(i)       own,
acquire, offer or propose to acquire or agree to acquire, whether by purchase, tender or exchange offer, or through the acquisition
of control of another person or entity (including by way of merger or consolidation) any additional shares of the outstanding Company
Common Stock, any rights to vote or direct the voting of any additional shares of Company Common Stock (i.e., in excess
of the aggregate number of shares held by the Stilwell Group as of the date hereof), or any securities convertible into Company
Common Stock except for additional shares acquired by way of (A) stock splits, stock dividends, stock reclassifications or other
distributions or offerings made available and, if applicable, exercised on a pro rata basis, to holders of the Company Common Stock
generally, (B) inter-company or inter-fund transfers between members of the Stilwell Group and/or its affiliates, or (C) any securities
acquired by the Nominee pursuant to her directorships contemplated herein (or issued to the Nominee upon exercise or conversion
thereof in the case of convertible securities);

 

(ii)       without
the Company’s prior written consent, directly or indirectly, sell, transfer or otherwise dispose of any interest in the Stilwell
Group’s shares of Company Common Stock to any person the Stilwell Group believes, after reasonable inquiry, would be beneficial
owner after any such sale or transfer of more than 5% of the outstanding shares of the Company Common Stock;

 

(iii)       (A)
propose or seek to effect a merger, consolidation, recapitalization, reorganization, sale, lease, exchange or other disposition
of substantially all the assets of, or other business combination involving, or a tender or exchange offer for securities of, the
Company or the Bank or any material portion of the Company’s or the Bank’s business or assets or any type of transaction
that would result in a change in control of the Company (any such transaction described in this clause (A) is a “Company
Transaction” and any proposal or other action seeking to effect a Company Transaction as described in this clause (A) is
defined as a “Company Transaction Proposal”), (B) seek to exercise any control or influence over the management of
the Company or the Boards of Directors of the Company or the Bank or any of the businesses, operations or policies of the Company
or the Bank, (C) present to the Company, its stockholders or any third party any proposal constituting or that could reasonably
be expected to result in a Company Transaction, or (D) seek to effect a change in control of the Company;

 

(iv)       publicly
suggest or announce its willingness or desire to engage in a transaction or group of transactions or have another person engage
in a transaction or group of transactions that would constitute or could reasonably be expected to result in a Company Transaction
or take any action that might require the Company to make a public announcement regarding any such Company Transaction;

 

(v)       initiate,
request, induce, encourage or attempt to induce or give encouragement to any other person to initiate any Company Transaction Proposal,
or otherwise provide assistance to any person who has made or is contemplating making, or enter into discussions or negotiations
with respect to, any Company Transaction Proposal;

 

    	 	 3	 

     

    

 

(vi)       solicit
proxies or written consents or assist or participate in any other way, directly or indirectly, in any solicitation of proxies or
written consents, or otherwise become a “participant” in a “solicitation,” or assist any “participant”
in a “solicitation” (as such terms are defined in Rule 14a-1 of Regulation 14A and Instruction 3 of Item 4 of Schedule
14A, respectively, under the Securities Exchange Act of 1934) in opposition to any recommendation or proposal of the Company’s
Board of Directors, or recommend or request or induce or attempt to induce any other person to take any such actions, or seek to
advise, encourage or influence any other person with respect to the voting of (or the execution of a written consent in respect
of) the Company Common Stock, or execute any written consent in lieu of a meeting of the holders of the Company Common Stock or
grant a proxy with respect to the voting of the capital stock of the Company to any person or entity other than the Board of Directors
of the Company;

 

(vii)       initiate,
propose, submit, encourage or otherwise solicit stockholders of the Company for the approval of one or more stockholder proposals
or induce or attempt to induce any other person to initiate any stockholder proposal, or seek election to, or seek to place a representative
or other affiliate or nominee on, the Company’s Board of Directors (other than with respect to the provisions of Sections
3(a)(i) and (iii) hereof, providing for the possible election of the Nominee) or seek removal of any member of the Company’s
or the Bank’s Boards of Directors;

 

(viii)       form,
join in or in any other way (including by deposit of the Company’s capital stock) participate in a partnership, pooling agreement,
syndicate, voting trust or other group with respect to Company Common Stock, or enter into any agreement or arrangement or otherwise
act in concert with any other person, for the purpose of acquiring, holding, voting or disposing of Company Common Stock;

 

(ix)       (A)
join with or assist any person or entity, directly or indirectly, in opposing, or make any statement in opposition to, any proposal
or director nomination submitted by the Company’s Board of Directors to a vote of the Company’s stockholders, or (B)
join with or assist any person or entity, directly or indirectly, in supporting or endorsing (including supporting, requesting
or joining in any request for a meeting of stockholders in connection with), or make any statement in favor of, any proposal submitted
to a vote of the Company’s stockholders that is opposed by the Company’s Board of Directors;

 

(x)       vote
for any nominee or nominees for election to the Board of Directors of the Company or any proposal other than those nominated, proposed
or supported by the Company’s Board of Directors;

 

(xi)       except
in connection with the enforcement of this Agreement, initiate or participate, by encouragement or otherwise, in any litigation
against the Company or the Bank or their respective officers and directors, or in any derivative litigation on behalf of the Company
or the Bank, except for testimony which may be required by law;

 

    	 	 4	 

     

    

 

(xii)       advise,
assist, encourage or finance (or arrange, assist or facilitate financing to or for) any other person in connection with any of
the matters restricted by, or otherwise seek to circumvent the limitations of, this Agreement; and

 

(xiii)       publicly
announce or disclose any request to be excused from any of the foregoing obligations of this Section 3(b).

 

(c)       During
the term of this Agreement, each Stilwell Group Member and the Nominee agree not to disparage the Company, the Bank or any of their
directors (including nominees supported by the Company’s Board of Directors), officers or employees in any public or quasi-public
forum, and the Company and the Bank agree not to disparage the Stilwell Group, any Stilwell Group Member, or the Nominee (or the
Alternate or Replacement Director, as the case may be) in any public or quasi-public forum.

 

(d)       (i)          The Nominee agrees that during the term of this Agreement she will not take any action, directly or indirectly, which, if the
Nominee were deemed to be a Stilwell Group Member, would be in violation of or inconsistent with any of the covenants and
agreements made by the Stilwell Group in clauses (iii), (iv), (v), (vi), (vii), (viii), (ix), (x), (xi) and (xii) of Section
3(b);

 

(ii)       In
the event that the Nominee, breaches clause (i) of this Section 3(d), she shall promptly resign her positions as a director of
the Company and the Bank; in the event that the Nominee fails to resign after a breach in accordance with the provisions of this
clause (ii), the Nominee agrees that the remaining directors of the Company and the Bank, by majority vote thereof, may remove
the Nominee, from her directorship positions with the Company and the Bank; and

 

(iii)       The
Nominee agrees to promptly submit her resignation as a director in the event of the termination of this Agreement prior to the
Company’s 2019 Annual Meeting of Stockholders.

 

		4.	Notice of Breach and Remedies.

 

(a)              
The parties expressly agree that an actual or threatened breach of this Agreement by any party will give rise to irreparable
injury that cannot adequately be compensated by damages. Accordingly, in addition to any other remedy to which it may be entitled,
each party shall be entitled to seek a temporary restraining order or injunctive relief to prevent a breach of the provisions of
this Agreement or to secure specific enforcement of its terms and provisions.

 

(b)              
The Stilwell Group and each Stilwell Group Member expressly agree that they will not be excused or claim to be excused from
performance under this Agreement as a result of any material breach by the Company unless and until the Company is given written
notice of such breach and thirty (30) business days either to cure such breach or seek relief in court. If the Company seeks relief
in court, the Stilwell Group and each Stilwell Group Member irrevocably stipulate that any failure to perform by the Stilwell Group
and/or any Stilwell Group Member or any assertion by the Stilwell Group and/or any Stilwell Group Member that they are excused
from performing their obligations under this Agreement would cause the Company irreparable harm, that the Company shall not be
required to provide further proof of irreparable harm in order to obtain equitable relief and that the Stilwell Group and each
Stilwell Group Member shall not deny or contest that such circumstances would cause the Company irreparable harm. If, after such
thirty (30) business day period, the Company has not either reasonably cured such material breach or obtained relief in court,
the Stilwell Group or each Stilwell Group Member may terminate this Agreement by delivery of written notice to the Company.

 

    	 	 5	 

     

    

 

(c)              
The Company expressly agrees that it will not be excused or claim to be excused from performance under this Agreement as
a result of any material breach by the Stilwell Group or any Stilwell Group Member unless and until the Stilwell Group and each
Stilwell Group Member is given written notice of such breach and thirty (30) business days either to cure such breach or seek relief
in court. If the Stilwell Group or any Stilwell Group Member seeks relief in court, the Company irrevocably stipulates that any
failure to perform by the Company or any assertion by the Company that it is excused from performing its obligations under this
Agreement would cause the Stilwell Group and each Stilwell Group Member irreparable harm, that the Stilwell Group or any Stilwell
Group Member shall not be required to provide further proof of irreparable harm in order to obtain equitable relief and that the
Company shall not deny or contest that such circumstances would cause the Stilwell Group and each Stilwell Group Member irreparable
harm. If, after such thirty (30) business day period, the Stilwell Group or the Stilwell Group Member has not either reasonably
cured such material breach or obtained relief in court, the Company may terminate this Agreement by delivery of written notice
to the Stilwell Group and each Stilwell Group Member.

 

5.       Term.
This Agreement shall be effective upon the execution of the Agreement, and will remain in effect for a period expiring as of the
close of business on the date of the Company’s 2019 Annual Meeting of Stockholders, provided, however, the Stilwell Group
may terminate this Agreement at any time after the date of the Company’s 2018 Annual Meeting of Stockholders by delivery
of written notice to the Company, provided further, that the Nominee, Alternate or Replacement Director, as the case may be, resigns
as a director of the Company and the Bank in accordance with paragraph (iii) of Section 3(d) hereof.

 

6.       Publicity.
Any press release or publicity with respect to this Agreement or any provisions hereof shall be jointly prepared and issued by
the parties hereto. During the term of this Agreement, no party to this Agreement shall cause, discuss, cooperate or otherwise
aid in the preparation of any press release or other publicity concerning any other party to this Agreement or its operations without
the prior approval of such other party, which approval shall not be unreasonably withheld, provided that the parties shall be entitled
to make such filings as each deems necessary to comply with applicable securities laws.

 

7.       Notices.
All notices, communications and deliveries required or permitted by this Agreement shall be made in writing signed by the party
making the same, shall specify the Section of this Agreement pursuant to which it is given or being made and shall be deemed given
or made (a) on the date delivered if delivered by telecopy or in person, (b) on the third Business Day after it is mailed if mailed
by registered or certified mail (return receipt requested) (with postage and other fees prepaid), or (c) on the day after it is
delivered, prepaid, to an overnight express delivery service that confirms to the sender delivery on such day, as follows:

 

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	Stilwell Group:	 	Megan Parisi
	 	 	111 Broadway, 12th Floor
	 	 	New York, New York 10006
	 	 	Facsimile: 212-269-2675
	 	 	 
	With a copy to:	 	E. J. Borrack, Esq.
	 	 	c/o The Stilwell Group
	 	 	111 Broadway, 12th Floor
	 	 	New York, New York 10006
	 	 	Facsimile: 212-269-2675
	 	 	 
	Nominee:	 	Corissa J. Briglia
	 	 	111 Broadway, 12th Floor
	 	 	New York, New York 10006
	 	 	Facsimile:  212-269-2675
	 	 	 
	The Company:	 	Philip P. Phillips
	 	 	President and Chief Executive Officer
	 	 	MB Bancorp, Inc.
	 	 	1920 Spring Rock Road
	 	 	Forest Hill, Maryland 21050
	 	 	Facsimile: 410-420-3344
	 	 	 
	With a copy to:	 	Gary R. Bronstein, Esq.
	 	 	Kilpatrick Townsend & Stockton LLP 
	 	 	607 14th Street, NW, Suite 900
	 	 	Washington, DC 20005
	 	 	Facsimile: 202-204-5616

 

8.       Governing
Law and Choice of Forum. Unless applicable federal law or regulation is deemed controlling, Maryland law shall govern the construction
and enforceability of this Agreement. Any and all actions concerning any dispute arising hereunder shall be filed and maintained
in the United States District Court for the State of Maryland or, if there is no basis for federal jurisdiction, in the Circuit
Court for Harford County, Maryland. The Stilwell Group, the Stilwell Group Members the Nominee agree that the United States District
Court for the State of Maryland and the in the Circuit Court for Harford County, Maryland in may exercise personal jurisdiction
over them in any such actions.

 

9.       Severability.
If any term, provision, covenant or restriction of this Agreement is held by any governmental authority or a court of competent
jurisdiction to be invalid, void or unenforceable, the remainder of the terms, provisions, covenants and restrictions of this Agreement
shall remain in full force and effect and shall in no way be affected, impaired or invalidated.

 

10.       Successors
and Assigns. This Agreement shall be binding upon and shall inure to the benefit of and be enforceable by the successors and
assigns, and transferees by operation of law, of the parties. Except as otherwise expressly provided, this Agreement shall not
inure to the benefit of, be enforceable by or create any right or cause of action in any person, including any stockholder of the
Company, other than the parties to the Agreement. Nothing contained herein shall prohibit any Stilwell Group Member from transferring
any portion or all of the shares of Company Common Stock owned thereby at any time to any affiliate of Stilwell or any other Stilwell
Group Member but only if the transferee agrees in writing for the benefit of the Company (with a copy thereof to be furnished to
the Company prior to such transfer) to be bound by the terms of this Agreement (any such transferee shall be included in the terms
“Stilwell Group” and “Stilwell Group Member”).

 

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11.       Survival
of Representations, Warranties and Covenants. All representations, warranties and covenants shall survive the execution and
delivery of this Agreement and shall continue for the term of this Agreement unless otherwise provided.

 

12.       Amendments.
This Agreement may not be modified, amended, altered or supplemented except by a written agreement executed by all of the parties.

 

13.       Definitions.
As used in this Agreement, the following terms shall have the meanings indicated, unless the context otherwise requires:

 

(a)       The
term “acquire” means every type of acquisition, whether effected by purchase, exchange, operation of law or otherwise.

 

(b)     
 The term “acting in concert” means (i) knowing participation in a joint activity or conscious parallel
action towards a common goal, whether or not pursuant to an express agreement, or (ii) a combination or pooling of voting or
other interests in the securities of an issuer for a common purpose pursuant to any contract, understanding, relationship,
agreement or other arrangement, whether written or otherwise.

 

(c)       The
term “affiliate” means, with respect to any person, a person or entity that directly, or indirectly through one or
more intermediaries, controls or is controlled by, or is under common control with such other person.

 

(d)       The
term “beneficial owner” shall have the meaning ascribed to it, and be determined in accordance with, Rule 13d-3 of
the Securities and Exchange Commission’s Rules and Regulations under the Securities Exchange Act of 1934.

 

(e)       The
term “change in control” denotes circumstances under which: (i) any person or group becomes the beneficial owner of
shares of capital stock of the Company or the Bank representing 25% or more of the total number of votes that may be cast for the
election of the Boards of Directors of the Company or the Bank, (ii) the persons who were directors of the Company or the Bank
cease to be a majority of the Board of Directors, in connection with any tender or exchange offer (other than an offer by the Company
or the Bank), merger or other business combination, sale of assets or contested election, or combination of the foregoing, or (iii)
stockholders of the Company or the Bank approve a transaction pursuant to which substantially all of the assets of the Company
or the Bank will be sold.

 

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(f)       The
term “control” (including the terms “controlling,” “controlled by,” and “under common
control with”) means the possession, direct or indirect, of the power to direct or cause the direction of the management,
activities or policies of a person or organization, whether through the ownership of capital stock, by contract, or otherwise.

 

(g)       The
term “group” has the meaning as defined in Section 13(d)(3) of the Securities Exchange Act of 1934.

 

(h)       The
term “person” includes an individual, group acting in concert, corporation, partnership, limited liability company,
association, joint stock company, trust, unincorporated organization or similar company, syndicate, or any other entity or group
formed for the purpose of acquiring, holding or disposing of the equity securities of the Company.

 

(i)       The
term “transfer” means, directly or indirectly, to sell, gift, assign, pledge, encumber, hypothecate or similarly dispose
of (by operation of law or otherwise), either voluntarily or involuntarily, or to enter into any contract, option or other arrangement
or understanding with respect to the sale, gift, assignment, pledge, encumbrance, hypothecation or similar disposition of (by operation
of law or otherwise), any Company Common Stock or any interest in any Company Common Stock; provided, however, that a merger or
consolidation in which the Company is a constituent corporation shall not be deemed to be the transfer of any common stock beneficially
owned by the Stilwell Group or a Stilwell Group Member.

 

(j)       The
term “vote” means to vote in person or by proxy, or to give or authorize the giving of any consent as a stockholder
on any matter.

 

14.       Counterparts;
Facsimile. This Agreement may be executed in any number of counterparts and by the parties in separate counterparts, and signature
pages may be delivered by facsimile or by email attachment (in “.pdf” form), each of which when so executed shall be
deemed to be an original and all of which taken together shall constitute one and the same agreement.

 

15.       Duty
to Execute. Each party agrees to execute any and all documents, and to do and perform any and all acts and things necessary
or proper to effectuate or further evidence the terms and provisions of this Agreement.

 

16.       Termination.
This Agreement shall cease, terminate and have no further force and effect upon the expiration of the term as set forth in Section
5 hereof, unless earlier terminated pursuant to Section 4 or Section 5 hereof or by mutual written agreement of the parties.

 

[Remainder of
this page intentionally left blank.]

 

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IN WITNESS WHEREOF, this Agreement has been
duly executed by the undersigned and is effective as of the day and year first above written.

 

	STILWELL ACTIVIST INVESTMENTS, L.P.
	 	 
	By:	Stilwell Value LLC	 
	 	General Partner	 
	 	 	 
	By:	/s/ Megan Parisi	 
	 	Megan Parisi	 
	 	Member	 
	 	 	 
	STILWELL PARTNERS, L.P.
	 	 
	By:	Stilwell Value LLC	 
	 	General Partner	 
	 	 	 
	 	
        /s/ Megan Parisi
	 
	 	Megan Parisi	 
	 	Member	 
	 	 	 
	STILWELL ACTIVIST FUND, L.P.
	 	 
	By:	Stilwell Value LLC	 
	 	General Partner	 
	 	 	 
	By:	/s/ Megan Parisi	 
	 	Megan Parisi	 
	 	Member	 
	 	 
	STILWELL VALUE LLC
	 	 
	By:	/s/ Megan Parisi	 
	 	Megan Parisi	 
	 	Member	 
	 	 	 
	JOSEPH STILWELL
	 	 
	 	/s/ Joseph Stilwell	 
	 	Joseph Stilwell	 
	 	 
	MB BANCORP, INC.
	 	 	 
	By:  	/s/ Philip P. Phillips	 
	 	Philip P. Phillips	 
	 	President and Chief Executive Officer	 

 

    10

     

    

 

	NOMINEE
	 	 	 
	By:  	/s/ Corissa J. Briglia	 
	 	Corissa J. Briglia	 

 

    11

     

    

 

EXHIBIT A

 

The Stilwell Group currently holds 183,583 shares of Company
Common Stock. 

 

    A-1Exhibit 10.2

 

STANDSTILL AGREEMENT

 

THIS STANDSTILL AGREEMENT (the “Agreement”),
dated this 20th day of February 2018, is by and among MB Bancorp, Inc. (the “Company”) and Jeffrey Thorp, an individual
(the “Nominee”).

 

RECITALS

 

WHEREAS, the Company and the Nominee
have agreed that it is in their mutual interests to enter into this Agreement.

 

NOW THEREFORE, in consideration of
the Recitals and the representations, warranties, covenants and agreements contained herein and other good and valuable consideration,
and intending to be legally bound hereby, the parties hereto agree as follows:

 

1.            Representations
and Warranties of the Nominee. Nominee represents and warrants to the Company, as follows:

 

(a)       The
Nominee has fully disclosed in Exhibit A to this Agreement the total number of shares of common stock of the Company, par
value $0.01 per share (“Company Common Stock”), as to which he is the beneficial owner, and neither the Nominee nor
any of his affiliates has (i) a right to acquire any interest in any capital stock of the Company, or (ii) a right to vote any
shares of capital stock of the Company other than as set forth in Exhibit A;

 

(b)       The
Nominee has full power and authority to enter into, perform his obligations under and deliver this Agreement. This Agreement constitutes
a valid and binding obligation of the Nominee and the performance of its terms will not constitute a violation of any limited partnership
agreement, operating agreement, bylaws, or any agreement or instrument to which the Nominee is a party;

 

(c)       There
are no other persons who, by reason of their personal, business, professional or other arrangement with the Nominee have agreed,
in writing or orally, explicitly or implicitly, to take any action on behalf of or in lieu of the Nominee that would be prohibited
by this Agreement; and

 

(d)       There
are no arrangements, agreements or understandings concerning the subject matter of this Agreement between the Nominee other than
as set forth in this Agreement.

 

		2.	Representations and Warranties of the Company.

 

(a)       The
Company hereby represents and warrants to the Nominee that the Company has full power and authority to enter into and perform its
obligations under this Agreement and that the execution and delivery of this Agreement by the Company has been duly authorized
by the Board of Directors of the Company. This Agreement constitutes a valid and binding obligation of the Company and the performance
of its terms will not constitute a violation of its articles of incorporation, charter or bylaws or any agreement or instrument
to which the Company is a party; and

 

    	 

     

    

 

(b)       The
Company hereby represents and warrants to the Nominee that there are no arrangements, agreements, or understandings concerning
the subject matter of this Agreement between the Nominee and the Company other than as set forth in this Agreement.

 

		3.	Covenants.

 

(a)       During
the term of this Agreement, the Company covenants and agrees as follows:

 

(i)       Effective
March 27, 2018, the Board of Directors of the Company will be expanded by one board seat, and the Nominee will be appointed a director
of the Company to serve in the class of directors with terms expiring at the Company’s 2018 Annual Meeting of Stockholders
and will be nominated at the 2018 Annual Meeting of Stockholders to serve until the 2019 Annual Meeting of Stockholders or, in
each case, until his successor, if any, is elected and qualified. Effective March 27, 2018, the Board of Directors of the Company
will cause the Board of Directors of its wholly owned subsidiary Madison Bank of Maryland (the “Bank”) to expand the
Bank’s Board of Directors by one board seat and to appoint the Nominee to fill the vacancy created by the expansion of the
Bank’s Board of Directors to serve in the class of directors with terms expiring at the Bank’s 2018 Annual Meeting
of Stockholders and to elect the Nominee for an additional one year term expiring at the Bank’s 2019 Annual Meeting of Stockholders
or, in each case, until his successor, if any, is elected and qualified;

 

(ii)       Upon
his appointment and qualification to the Company’s and the Bank’s Boards of Directors, the Nominee shall be treated
on a consistent basis with other members of the Company’s and the Bank’s Boards of Directors with respect to compensation
and benefits, including without limitation, director’s and officers’ liability insurance coverage and indemnification
rights, and with respect to grants of shares and options to purchase shares;

 

(iii)       Should
the Nominee’s position as a director of the Company or the Bank be terminated during the term of this Agreement due to his
resignation, death, permanent disability or otherwise, or pursuant to Section 3(d)(iv) of this agreement, the Company shall appoint
a replacement director, selected by the Nominee (“Replacement Director”), subject to the approval of the Company, which
approval shall not be unreasonably withheld, and the Replacement Director shall, subject to his or her agreement to honor the provisions
of Sections 3(c) and 3(d) hereof, be appointed to the Boards of the Company and the Bank.

 

(b)       During
the term of this Agreement, the Nominee covenants and agrees not to do the following, directly or indirectly, alone or in concert
with any affiliate, other group or other person:

 

(i)       own,
acquire, offer or propose to acquire or agree to acquire, whether by purchase, tender or exchange offer, or through the acquisition
of control of another person or entity (including by way of merger or consolidation) any additional shares of the outstanding Company
Common Stock, any rights to vote or direct the voting of any additional shares of Company Common Stock (i.e., in excess
of the aggregate number of shares held by the Nominee as of the date hereof), or any securities convertible into Company Common
Stock except for additional shares acquired by way of (A) stock splits, stock dividends, stock reclassifications or other distributions
or offerings made available and, if applicable, exercised on a pro rata basis, to holders of the Company Common Stock generally,
(B) inter-company or inter-fund transfers between the Nominee and/or his affiliates, (C) any securities acquired by the Nominee
pursuant to his directorships contemplated herein (or issued to the Nominee upon exercise or conversion thereof in the case of
convertible securities), or (D) any other securities acquired directly from the Company;

 

    	 	 2	 

     

    

 

(ii)       without
the Company’s prior written consent, directly or indirectly, privately (or pursuant to a public tender offer) sell, transfer
or otherwise dispose of any interest in the Nominee’s shares of Company Common Stock to any person whom the Nominee believes,
after reasonable inquiry, would be a beneficial owner after any such sale or transfer of more than 5% of the outstanding shares
of the Company Common Stock;

 

(iii)       (A)
propose or seek to effect a merger, consolidation, recapitalization, reorganization, sale, lease, exchange or other disposition
of substantially all the assets of, or other business combination involving, or a tender or exchange offer for securities of, the
Company or the Bank or any material portion of the Company’s or the Bank’s business or assets or any type of transaction
that would result in a change in control of the Company (any such transaction described in this clause (A) is a “Company
Transaction” and any proposal or other action seeking to effect a Company Transaction as described in this clause (A) is
defined as a “Company Transaction Proposal”), (B) take any action that might require the Company to make a public announcement
regarding any such Company Transaction, (C) seek to exercise any control or influence over the management of the Company or the
Boards of Directors of the Company or the Bank or any of the businesses, operations or policies of the Company or the Bank, (D)
present to the Company, its stockholders or any third party any proposal constituting or that could reasonably be expected to result
in a Company Transaction, or (E) seek to effect a change in control of the Company; provided, however, that
this subparagraph (iii) shall not prevent Nominee, acting solely in his capacity as a director of the Company and in a manner consistent
with Nominee’s fiduciary duties to the Company, from participating in deliberations or discussions of such matters privately
with other members of the Board of Directors at a meeting of the Board of Directors of the Company (the excepted conduct described
in this proviso being referred to herein as the “Fiduciary Exception”);

 

(iv)       publicly
suggest or announce his willingness or desire to engage in a transaction or group of transactions or have another person engage
in a transaction or group of transactions that would constitute or could reasonably be expected to result in a Company Transaction;

 

(v)       initiate,
request, induce, encourage or attempt to induce or give encouragement to any other person to initiate any Company Transaction Proposal,
or otherwise provide assistance to any person who has made or is contemplating making, or enter into discussions or negotiations
with respect to, any Company Transaction Proposal;

 

    	 	 3	 

     

    

 

(vi)     
  solicit proxies or written consents or assist or participate in any other way, directly or indirectly, in any
solicitation of proxies or written consents not approved by the Board, or otherwise become a “participant” in a
“solicitation,” or assist any “participant” in a “solicitation” (as such terms are
defined in Rule 14a-1 of Regulation 14A and Instruction 3 of Item 4 of Schedule 14A, respectively, under the Securities
Exchange Act of 1934) in opposition to any recommendation or proposal of the Company’s Board of Directors, or recommend
or request or induce or attempt to induce any other person to take any such actions, or seek to advise, encourage or
influence any other person with respect to the voting of (or the execution of a written consent in respect of) the Company
Common Stock, or execute any written consent in lieu of a meeting of the holders of the Company Common Stock or grant a proxy
with respect to the voting of the capital stock of the Company to any person or entity other than the Board of Directors of
the Company;

 

(vii)       initiate,
propose, submit, encourage or otherwise solicit stockholders of the Company for the approval of one or more stockholder proposals
or induce or attempt to induce any other person to initiate any stockholder proposal, or seek election to, or seek to place a representative
or other affiliate or nominee on, the Company’s Board of Directors (other than with respect to the provisions of Sections
3(a)(i) and (iii) hereof, providing for the possible election of the Nominee) or, subject to the Fiduciary Exception, seek removal
of any member of the Company’s or the Bank’s Boards of Directors;

 

(viii)       form,
join in or in any other way (including by deposit of the Company’s capital stock) participate in a partnership, pooling agreement,
syndicate, voting trust or other group with respect to Company Common Stock, or enter into any agreement or arrangement or otherwise
act in concert with any other person (excluding any affiliates, family members and trusts for their benefit) for the purpose of
acquiring, holding, voting or disposing of Company Common Stock;

 

(ix)       (A)
join with or assist any person or entity, directly or indirectly, in opposing, or subject to the Fiduciary Exception make any statement
in opposition to, any proposal or director nomination submitted by the Company’s Board of Directors to a vote of the Company’s
stockholders, or (B) join with or assist any person or entity, directly or indirectly, in supporting or endorsing (including supporting,
requesting or joining in any request for a meeting of stockholders in connection with), or subject to the Fiduciary Exception make
any statement in favor of, any proposal submitted to a vote of the Company’s stockholders that is opposed by the Company’s
Board of Directors;

 

(x)       vote
for any nominee or nominees for election to the Board of Directors of the Company or any proposal other than those nominated, proposed
or supported by the Company’s Board of Directors;

 

(xi)       except
in connection with the enforcement of this Agreement, initiate or participate, by encouragement or otherwise, in any litigation
against the Company or the Bank or their respective officers and directors, or in any derivative litigation on behalf of the Company
or the Bank, except for testimony which may be required by law;

 

    	 	 4	 

     

    

 

(xii)       advise,
assist, encourage or finance (or arrange, assist or facilitate financing to or for) any other person in connection with any of
the matters restricted by, or otherwise seek to circumvent the limitations of, this Agreement; and

 

(xiii)       publicly
announce or publicly disclose any request to be excused from any of the foregoing obligations of this Section 3(b).

 

(c)       During
the term of this Agreement, the Nominee agrees not to disparage the Company, the Bank or any of their directors (including nominees
supported by the Company’s Board of Directors), officers or employees in any public or quasi-public forum, and the Company
and the Bank agree not to disparage the Nominee (or the Alternate or Replacement Director, as the case may be) in any public or
quasi-public forum.

 

(d)       (i)          The Nominee agrees that during
the term of this Agreement he will not take any action, directly or indirectly, which, would be in violation of or inconsistent
with any of the covenants and agreements made by the Nominee in clauses (iii), (iv), (v), (vi), (vii), (viii), (ix), (x), (xi)
and (xii) of Section 3(b);

 

(ii)       In
the event that the Nominee, breaches clause (i) of this Section 3(d), he shall promptly resign his positions as a director of the
Company and the Bank; in the event that the Nominee fails to resign after a breach in accordance with the provisions of this clause
(ii), the Nominee agrees that the remaining directors of the Company and the Bank, by majority vote thereof, may remove the Nominee,
from his directorship positions with the Company and the Bank; and

 

(iii)       The
Nominee agrees to promptly submit his resignation as a director in the event of his termination of this Agreement prior to the
Company’s 2019 Annual Meeting of Stockholders.

 

(iv)       The
Nominee agrees to promptly resign his positions as a director of the Company and the Bank if any bank regulatory agency having
authority over the Company or the Bank expresses serious written concern regarding the Nominee’s qualifications to serve
as a director of the Company or the Bank.

 

		4.	Notice of Breach and Remedies.

 

(a)              
The parties expressly agree that an actual or threatened breach of this Agreement by any party will give rise to irreparable
injury that cannot adequately be compensated by damages. Accordingly, in addition to any other remedy to which it may be entitled,
each party shall be entitled to seek a temporary restraining order or injunctive relief to prevent a breach of the provisions of
this Agreement or to secure specific enforcement of its terms and provisions.

 

(b)              
The Nominee expressly agrees that he will not be excused or claim to be excused from performance under this Agreement as
a result of any material breach by the Company unless and until the Company is given written notice of such breach and thirty (30)
days either to cure such breach or seek relief in court. If the Company seeks relief in court, the Nominee irrevocably stipulates
that any failure to perform by the Nominee or any assertion by the Nominee that he is excused from performing his obligations under
this Agreement would cause the Company irreparable harm, that the Company shall not be required to provide further proof of irreparable
harm in order to obtain equitable relief and that the Nominee shall not deny or contest that such circumstances would cause the
Company irreparable harm (in the context of opposing equitable relief). If, after such thirty (30) day period, the Company has
not either reasonably cured such material breach or obtained relief in court, the Nominee may terminate this Agreement by delivery
of written notice to the Company.

 

    	 	 5	 

     

    

 

(c)              
The Company expressly agrees that it will not be excused or claim to be excused from performance under this Agreement as
a result of any material breach by the Nominee unless and until the Nominee is given written notice of such breach and thirty (30)
business days either to cure such breach or seek relief in court. If the Nominee seeks relief in court, the Company irrevocably
stipulates that any failure to perform by the Company or any assertion by the Company that it is excused from performing its obligations
under this Agreement would cause the Nominee irreparable harm, that the Nominee shall not be required to provide further proof
of irreparable harm in order to obtain equitable relief and that the Company shall not deny or contest that such circumstances
would cause the Nominee irreparable harm. If, after such thirty (30) day period, the Nominee has not either reasonably cured such
material breach or obtained relief in court, the Company may terminate this Agreement by delivery of written notice to the Nominee.

 

5.       Term.
This Agreement shall be effective upon the execution of the Agreement, and will remain in effect for a period expiring as of the
close of business on the date of the Company’s 2019 Annual Meeting of Stockholders, provided, however, the Nominee may terminate
this Agreement at any time after the date of the Company’s 2018 Annual Meeting of Stockholders by delivery of written notice
to the Company, provided further, that the Nominee, Alternate or Replacement Director, as the case may be, resigns as a director
of the Company and the Bank in accordance with paragraph (iii) of Section 3(d) hereof.

 

6.       Publicity.
Any press release or publicity with respect to this Agreement or any provisions hereof shall be jointly prepared and issued by
the parties hereto. During the term of this Agreement, no party to this Agreement shall cause, discuss, cooperate or otherwise
aid in the preparation of any press release or other publicity concerning any other party to this Agreement or its operations without
the prior approval of such other party, which approval shall not be unreasonably withheld, provided that the parties shall be entitled
to make such filings as each deems necessary to comply with applicable securities laws.

 

7.       Notices.
All notices, communications and deliveries required or permitted by this Agreement shall be made in writing signed by the party
making the same, shall specify the Section of this Agreement pursuant to which it is given or being made and shall be deemed given
or made (a) on the date delivered if delivered by telecopy or in person, (b) on the third Business Day after it is mailed if mailed
by registered or certified mail (return receipt requested) (with postage and other fees prepaid), or (c) on the day after it is
delivered, prepaid, to an overnight express delivery service that confirms to the sender delivery on such day, as follows:

 

    	 	 6	 

     

    

 

	Nominee:	 	Jeffrey Thorp
	 	 	437 Madison Avenue, 34th Floor
	 	 	New York, New York 10022
	 	 	Facsimile: 212-897-8051
	 	 	 
	With a copy to:	 	Martin Sklar, Esq.
	 	 	Kleinberg, Kaplan, Wolff & Cohen, P.C.
	 	 	551 Fifth Avenue
	 	 	New York, New York 10176
	 	 	Facsimile: 212-986-8866
	 	 	 
	The Company:	 	Philip P. Phillips
	 	 	President and Chief Executive Officer
	 	 	MB Bancorp, Inc.
	 	 	1920 Spring Rock Road
	 	 	Forest Hill, Maryland 21050
	 	 	Facsimile: 410-420-3344
	 	 	 
	With a copy to:	 	Gary R. Bronstein, Esq.
	 	 	Kilpatrick Townsend & Stockton LLP 
	 	 	607 14th Street, NW, Suite 900
	 	 	Washington, DC 20005
	 	 	Facsimile: 202-204-5616

 

8.       Governing
Law and Choice of Forum. Unless applicable federal law or regulation is deemed controlling, Maryland law shall govern the construction
and enforceability of this Agreement. Any and all actions concerning any dispute arising hereunder shall be filed and maintained
in the United States District Court for the State of Maryland or, if there is no basis for federal jurisdiction, in the Circuit
Court for Harford County, Maryland. The Nominee agrees that the United States District Court for the State of Maryland and the
in the Circuit Court for Harford County, Maryland may exercise personal jurisdiction over the Nominee in any such actions.

 

9.       Severability.
If any term, provision, covenant or restriction of this Agreement is held by any governmental authority or a court of competent
jurisdiction to be invalid, void or unenforceable, the remainder of the terms, provisions, covenants and restrictions of this Agreement
shall remain in full force and effect and shall in no way be affected, impaired or invalidated.

 

10.       Successors
and Assigns. This Agreement shall be binding upon and shall inure to the benefit of and be enforceable by the successors and
assigns, and transferees by operation of law, of the parties. Except as otherwise expressly provided, this Agreement shall not
inure to the benefit of, be enforceable by or create any right or cause of action in any person, including any stockholder of the
Company, other than the parties to the Agreement. Nothing contained herein shall prohibit the Nominee from transferring any portion
or all of the shares of Company Common Stock owned thereby at any time to any affiliate of the Nominee but only if the transferee
agrees in writing for the benefit of the Company (with a copy thereof to be furnished to the Company prior to such transfer) to
be bound by the terms of this Agreement (any such transferee shall be included in the term “the Nominee”).

 

    	 	 7	 

     

    

 

11.       Survival
of Representations, Warranties and Covenants. All representations, warranties and covenants shall survive the execution and
delivery of this Agreement and shall continue for the term of this Agreement unless otherwise provided.

 

12.       Amendments.
This Agreement may not be modified, amended, altered or supplemented except by a written agreement executed by all of the parties.

 

13.       Definitions.
As used in this Agreement, the following terms shall have the meanings indicated, unless the context otherwise requires:

 

(a)       The
term “acquire” means every type of acquisition, whether effected by purchase, exchange, operation of law or otherwise.

 

(b)       The term “acting in concert” means (i) knowing participation in a
joint activity or conscious parallel action towards a common goal, whether or not pursuant to an express agreement, or (ii)
a combination or pooling of voting or other interests in the securities of an issuer for a common purpose pursuant to
any contract, understanding, relationship, agreement or other arrangement, whether written or otherwise.

 

(c)       The
term “affiliate” means, with respect to any person, a person or entity that directly, or indirectly through one or
more intermediaries, controls or is controlled by, or is under common control with such other person.

 

(d)       The
term “beneficial owner” shall have the meaning ascribed to it, and be determined in accordance with, Rule 13d-3 of
the Securities and Exchange Commission’s Rules and Regulations under the Securities Exchange Act of 1934.

 

(e)       The
term “change in control” denotes circumstances under which: (i) any person or group becomes the beneficial owner of
shares of capital stock of the Company or the Bank representing 25% or more of the total number of votes that may be cast for the
election of the Boards of Directors of the Company or the Bank, (ii) the persons who were directors of the Company or the Bank
cease to be a majority of the Board of Directors, in connection with any tender or exchange offer (other than an offer by the Company
or the Bank), merger or other business combination, sale of assets or contested election, or combination of the foregoing, or (iii)
stockholders of the Company or the Bank approve a transaction pursuant to which substantially all of the assets of the Company
or the Bank will be sold.

 

(f)       The
term “control” (including the terms “controlling,” “controlled by,” and “under common
control with”) means the possession, direct or indirect, of the power to direct or cause the direction of the management,
activities or policies of a person or organization, whether through the ownership of capital stock, by contract, or otherwise.

 

    	 	 8	 

     

    

 

(g)       The
term “group” has the meaning as defined in Section 13(d)(3) of the Securities Exchange Act of 1934.

 

(h)       The
term “person” includes an individual, group acting in concert, corporation, partnership, limited liability company,
association, joint stock company, trust, unincorporated organization or similar company, syndicate, or any other entity or group
formed for the purpose of acquiring, holding or disposing of the equity securities of the Company.

 

(i)       The
term “transfer” means, directly or indirectly, to sell, gift, assign, pledge, encumber, hypothecate or similarly dispose
of (by operation of law or otherwise), either voluntarily or involuntarily, or to enter into any contract, option or other arrangement
or understanding with respect to the sale, gift, assignment, pledge, encumbrance, hypothecation or similar disposition of (by operation
of law or otherwise), any Company Common Stock or any interest in any Company Common Stock; provided, however, that a merger or
consolidation in which the Company is a constituent corporation shall not be deemed to be the transfer of any common stock beneficially
owned by the Nominee.

 

(j)       The
term “vote” means to vote in person or by proxy, or to give or authorize the giving of any consent as a stockholder
on any matter.

 

14.       Counterparts;
Facsimile. This Agreement may be executed in any number of counterparts and by the parties in separate counterparts, and signature
pages may be delivered by facsimile or by email attachment (in “.pdf” form), each of which when so executed shall be
deemed to be an original and all of which taken together shall constitute one and the same agreement.

 

15.       Duty
to Execute. Each party agrees to execute any and all documents, and to do and perform any and all acts and things necessary
or proper to effectuate or further evidence the terms and provisions of this Agreement.

 

16.       Termination.
This Agreement shall cease, terminate and have no further force and effect upon the expiration of the term as set forth in Section
5 hereof, unless earlier terminated pursuant to Section 4 or Section 5 hereof or by mutual written agreement of the parties.

 

[Remainder of this page intentionally
left blank.]

 

    	 	 9	 

     

    

 

IN WITNESS WHEREOF, this Agreement has been
duly executed by the undersigned and is effective as of the day and year first above written.

 

 

	NOMINEE	 
	 	 
	 	/s/ Jeffrey Thorp	 
	 	Jeffrey Thorp	 
	 	 
	MB BANCORP, INC.	 
	 	 	 
	By:  	/s/ Philip P. Phillips	 
	 	Philip P. Phillips	 
	 	President and Chief Executive Officer	 

 

    	 	 10	 

     

    

 

EXHIBIT A

 

The Nominee currently holds 180,000 shares of Company Common
Stock.

 

    	 	 A-1

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