Document:

EX-10.2 FORM OF EMP. STOCK OWNERSHIP PLAN TRUST

Exhibit 10.2

TRUST AGREEMENT

BETWEEN

ATHENS FEDERAL COMMUNITY BANK

AND

[TRUSTEE]

FOR THE

ATHENS FEDERAL COMMUNITY BANK

EMPLOYEE STOCK OWNERSHIP PLAN TRUST

Effective as of January 1, 2010

 

 

CONTENTS

	 	 		 	 	 
	 	 		Page No.	 
	Section 1   Creation of Trust 
	 		1	 	 
	Section 2   Investment of Trust Fund and Administrative Powers
of the Trustee 
	 		2	 	 
	Section 3   Compensation and Indemnification of Trustee and
Payment of Expenses and Taxes 
	 		7	 	 
	Section 4   Records and Valuation 
	 		8	 	 
	Section 5   Instructions from Committee 
	 		9	 	 
	Section 6   Change of Trustee 
	 		10	 	 
	Section 7   Miscellaneous 
	 		10	 	 

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     This TRUST AGREEMENT dated as of [January 1, 2010] between ATHENS FEDERAL COMMUNITY BANK with
its administrative office at 106 Washington Avenue, N.W., Athens, TN 37303 (hereinafter called the
“Bank”), [TRUSTEE] with its administrative office at [Trustee Address] (hereinafter called the
“Trustee”).

W I T N E S S E T H T H A T:

     WHEREAS, the Bank has approved and adopted an employee stock ownership plan for the benefit of
its employees, the Athens Federal Community Bank Employee Stock Ownership Plan (hereinafter called
the “Plan”); and

     WHEREAS, the Bank has authorized the execution of this Trust Agreement and has appointed
[Trustee] as Trustee of the Trust Fund created pursuant to the Plan; and

     WHEREAS, [Trustee] has agreed to act as Trustee and to hold and administer the assets of the
Plan in accordance with the terms of this Trust Agreement.

     NOW, THEREFORE, the Bank and the Trustee agree as follows:

     Section 1. Creation of Trust.

     1.1 Trustee. [Trustee] shall serve as Trustee of the Trust Fund created in accordance
with and in furtherance of the Plan, and shall serve as Trustee until its removal or resignation in
accordance with Section 6 of this Trust Agreement.

     1.2 Trust Fund. The Trustee hereby agrees to accept contributions from the Bank as
defined in the Plan and amounts transferred from other qualified retirement plans from time to time
in accordance with the terms of the Plan. All such property and contributions, together with
income thereon and increments thereto, shall constitute the “Trust Fund” to be held in accordance
with the terms of the Trust Agreement.

     1.3 Incorporation of Plan. An instrument entitled “Athens Federal Community Bank
Employee Stock Ownership Plan” is incorporated herein by reference, and this Trust Agreement shall
be interpreted consistently with that Plan. All words and phrases defined in that Plan shall have
the same meanings when used in this Trust Agreement.

     1.4 Name. The name of this trust shall be “Athens Federal Community Bank Employee
Stock Ownership Plan Trust.”

     1.5 Nondiversion of Assets. In no event shall any part of the corpus or income of the
Trust Fund be used for, or diverted to, purposes other than for the exclusive benefit of the
Participants and their Beneficiaries prior to the satisfaction of all liabilities under the Plan,
except to the extent that assets may be returned to the Employer in accordance with the Plan where
the Plan fails to qualify initially under Section 401(a) of the Internal Revenue Code of 1986, as
amended (the “Code”), or where they are attributable to contributions made by mistake of fact or in
excess of the deductibility allowed under the Code.

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     Section 2. Investment of Trust Fund and Administrative Powers of the Trustee.

     2.1 Stock and Other Investments. The basic investment policy of the Plan shall be to
invest primarily in Stock of [Company] for the exclusive benefit of the Participants and their
Beneficiaries. The Committee shall have full and complete investment authority and responsibility
with respect to the purchase, retention, sale, exchange, and pledge of Stock and the payment of
Stock Obligations, and the Trustee shall not deal in any way with Stock except in accordance with
its obligations pursuant to this Trust Agreement and the written instructions of the Committee.
The Trustee shall invest, or keep invested, all or a portion of the Trust Fund in Stock, and shall
pay Stock Obligations out of assets of the Trust Fund, as instructed from time to time by the
Committee. The Trustee shall invest any balance of the Trust Fund (the “Investment Fund”) in such
other property as the Committee, in its sole discretion, shall deem advisable, subject to any
delegation of such investment responsibility pursuant to Section 2.2. Nothing contained herein
shall provide investment discretion authority or any like responsibility in regard to the assets of
the Trust Fund.

     In connection with instructions to acquire Stock, the Trustee may purchase newly issued or
outstanding Stock from the Employer or any other holders of Stock, including Participants,
Beneficiaries, and Plan fiduciaries. All purchases and sales of Stock shall be made by the Trustee
at fair market value as determined by the Committee in good faith and in accordance with any
applicable requirements under the Employee Retirement Income Security Act of 1974, as amended
(“ERISA”). Such purchases may be made with assets of the Trust Fund, with funds borrowed for this
purpose (with or without guarantees of repayment to the lender by the Employer), or by any
combination of the foregoing.

     Notwithstanding any other provision of this Trust Agreement or the Plan, neither the Committee
nor the Trustee shall make any purchase, sale, exchange, investment, pledge, valuation, or loan, or
take any other action involving those assets for which they are responsible which (i) is
inconsistent with the policy of the Plan and Trust, (ii) is inconsistent with the prudence and
diversification requirements set forth in Sections 404(a)(1)(B) and (C) of ERISA (to the extent
such requirements apply to an employee stock ownership plan and trust), (iii) is prohibited by
Section 406 or 407 of ERISA, or (iv) would impair the qualification of the Plan or the exemption of
the Trust under Sections 401 and 501, respectively, of the Code.

     2.2 Delegation of Investment Responsibility. The Committee may, by written notice and
in accordance with the Plan, direct the Trustee to segregate any portion or all of the Investment
Fund into one or more separate accounts for each of which full investment responsibility will be
delegated to an investment manager appointed in such notice pursuant to Section 402(c)(3) of ERISA
(hereinafter a “Manager”). For any separate account where the Trustee is to maintain custody of
the assets, the Trustee and the Manager shall agree upon procedures for the transmittal of
investment instructions from the Manager to the Trustee, and the Trustee may provide the Manager
with such documents as may be necessary to authorize the Manager to effect transactions directly on
behalf of the segregated account.

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     Further, the Committee may, by written notice and in accordance with the Plan, direct the
Trustee to segregate any portion or all of the Investment Fund into one or more separate accounts
for each of which full investment responsibility will be delegated to an insurance company through
one or more group annuity contracts, deposit administration contracts, or similar contracts, which
may provide for investments in any commingled separate accounts established under such contracts.
An insurance company shall be a Manager with respect to any amounts held under such a contract
except to the extent the insurer’s assets are not deemed assets of the Plan and Trust Fund pursuant
to Section 401(b)(2) of ERISA. The allocation of amounts held under such a contract among the
insurer’s general account and one or more individual or commingled separate accounts shall be
determined by the Committee except as otherwise agreed by the Committee and the insurer.

     Any Manager shall have all of the powers given to the Trustee pursuant to Section 2.3 with
respect to the portion of the Trust Fund committed to its investment discretion and control. The
Trustee shall be responsible for the safekeeping of any assets which remain in their custody, but
in no event shall the Trustee be under any duty to question or make any inquiry or suggestion
regarding the action or inaction of a Manager or an insurer or the advisability of acquiring,
retaining, or disposing of any asset of a segregated account. The Bank shall indemnify and hold
the Trustee harmless from any and all costs, damages, expenses, and liabilities which the Trustee
may incur by reason of any action taken or omitted to be taken by the Trustee upon directions from
the Committee, a Manager, or an insurer pursuant to this Section 2.2.

     2.3 Trustee Powers. In addition to and not by way of limitation upon the fiduciary
powers granted to it by law, the Trustee shall have the following specific powers, subject to the
limitations set forth in Section 2.1:

     2.3-1 to receive, hold, manage, invest and reinvest the money or other property which
constitutes the Trust Fund, without distinction between principal and income;

     2.3-2 to hold funds uninvested temporarily, provided it is a period of time that is not
unreasonable, without liability for interest thereon, and to deposit funds in one or more savings
or similar accounts with any banks and savings and loan associations which are insured by an
instrumentality of the federal government, including the Trustee if it is such an institution;

     2.3-3 at the direction of the Committee, to invest or reinvest the whole or any portion of the
money or other property which constitutes the Trust Fund in such common or preferred stocks,
investment trust shares, mutual funds, commingled trust funds, partnership interests, bonds, notes,
or other evidences of indebtedness, and real and personal property as the Trustee in their absolute
judgment and discretion may deem to be for the best interests of the Trust Fund, regardless of
nondiversification to the extent that such nondiversification is clearly prudent, and regardless of
whether any such investment or property is authorized by law regarding the investment of trust
funds, of a wasting asset nature, temporarily non-income producing, or within or without the United
States;

     2.3-4 to invest in common and preferred stocks, bonds, notes, or other obligations of any
corporation or business enterprise in which an Employer or its owners may own an interest;

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     2.3-5 at the direction of the Committee, to exchange any investment or property, real or
personal, for other investments or properties at such time and upon such terms as the Trustee shall
deem proper;

     2.3-6 at the direction of the Committee, to sell, transfer, convey or otherwise dispose of any
investment or property, real or personal, for cash or on credit, in such manner and upon such terms
and conditions as the Trustee shall deem advisable, and no person dealing with the Trustee shall be
under any duty to inquire as to the validity, expediency, or propriety of any such sale or as to
the application of the purchase money paid to the Trustee;

     2.3-7 to hold any investment or property in the name of the Trustee, with or without the
designation of any fiduciary capacity, or in the name of a nominee, or unregistered, or in such
other form that title may pass by delivery; provided, however, that the Trustee’s records always
show that such investment or property belongs to the Trust Fund and the Trustee shall not be
relieved hereby of its responsibility to maintain safe custody of such investment or property;

     2.3-8 to organize one or more corporations to hold, manage, or liquidate any property,
including real estate, owned or acquired by the Trust Fund if in the sole discretion of the Trustee
the organization of such corporation or corporations is for the best interests of the Trust and the
Plan Participants and Beneficiaries;

     2.3-9 to extend the time for payment of, to modify, to renew, or to release security from any
mortgage, note or other evidence of indebtedness, or to take advantage of or waive any default; to
foreclose mortgages and bid on property under foreclosure or to take title to property by
conveyance in lieu of foreclosure, either with or without the payment of additional consideration;

     2.3-10 to vote in person or by proxy all stocks and other securities having voting privileges;
to exercise or refrain from exercising any option or privilege with respect to stocks and other
securities, including any right or privilege to subscribe for or otherwise to acquire stocks and
other securities; or to sell any such right or privilege; to assent to and join in any plan of
refinance, merger, consolidation, reorganization or liquidation of any corporation or other
enterprise in which this Trust may have an interest, to deposit stocks and other securities with
any committee formed to effectuate the same, to pay any expense incidental thereto, to exchange
stocks and other securities for those which may be issued pursuant to any such plan, and to retain
as an investment the stocks and other securities received by the Trustee; and to deposit any
investment in a voting trust; notwithstanding the preceding, Participants and Beneficiaries shall
be entitled to direct the manner in which stock allocated to their respective accounts are to be
voted on all matters. All stock which has been allocated to Participants’ Accounts for which the
Trustee has received no written direction and all unallocated [Company] securities will be voted by
the Trustee in direct proportion to any Participant’s directions received and solely in the
interest of the Participants and Beneficiaries. Whenever such voting rights are to be exercised,
the Bank, the Committee and the Trustee shall see that all Participants and Beneficiaries are
provided with adequate opportunity to deliver their instructions to the Trustee regarding voting

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of stock allocated to their accounts. The instructions of the Participants with respect to the
voting of allocated shares hereunder shall be confidential;

     2.3-11 to abandon any property, real or personal, which the Trustee shall consider to be
worthless or not of sufficient value to warrant its keeping or protecting; to abstain from the
payment of taxes, water rents, assessments, repairs, maintenance, and upkeep of any such property;
to permit any such property to be lost by tax sale or other proceedings, and to convey any such
property for a nominal consideration or without consideration;

     2.3-12 to borrow money from [Company] or from others (including the Trustee), and to enter
into installment contracts, for the purchase of Stock upon such terms and conditions and at such
reasonable rates of interest as the Committee may deem to be advisable, to issue its promissory
notes as Trustee to evidence such debt, to secure the payment of such notes by pledging any
property of the Trust Fund, and to authorize the holders of any such notes to pledge them to secure
obligations of the holders and in connection therewith to repledge any assets of the Trust as
security therefor; provided that, with respect to any extension of credit to the Trust involving,
as a lender or guarantor, the Employer or other “disqualified person” within the meaning of Section
4975(e)(2) of the Code —

	 	(a)	 	each loan or installment contract is primarily for the benefit of Participants
and Beneficiaries of the Plan;
	 
	 	(b)	 	any interest on a loan or installment contract does not exceed a reasonable
rate;
	 
	 	(c)	 	the proceeds of any loan shall be used only to acquire Stock, to repay the
loan, or to repay a previous loan meeting these conditions, and the subject of any
installment contract shall be only the Trust’s purchase of Stock;
	 
	 	(d)	 	any collateral pledged to a creditor by the Trustee shall consist only of
qualifying employer securities as that term is defined under Section 4975(e)(8) of the
Code and the creditor shall have no recourse against the Trust Fund except with respect
to the collateral (although the creditor may have recourse against an Employer as
guarantor);
	 
	 	(e)	 	payments with respect to a loan or installment contract shall be made only from
those amounts contributed by the Employer to the Trust Fund, from amounts earned on
such contributions, and from cash dividends received on unallocated Stock held by the
Trust as collateral for such an obligation; and
	 
	 	(f)	 	upon the payment of any portion of balance due on a loan or upon any
installment payment, a proportionate part of any qualified employer securities
originally pledged as collateral for such indebtedness shall be released from
encumbrance in accordance with Section 4.2 of the Plan and the Committee shall at least
annually advise the Trustee of the number of shares of Stock so released and the proper
allocation of such shares under the terms of the Plan;

     2.3-13 to manage and operate any real property which shall at any time constitute an asset of
the Trust Fund; to make repairs, alterations, and improvements thereto; to insure such property
against loss by fire or other casualty; to lease or grant options for the sale of such property,
which lease or option may be for a period of time which may extend beyond the life of

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this Trust; and to take any other action or enter into any other contract respecting such property
which is consistent with the best interests of the Trust;

     2.3-14 to pay any and all reasonable and normal expenses incurred in connection with the
exercise of any power, right, authority or discretion granted herein, and, upon prior notice to the
Bank, to employ and compensate agents, investment counsel, custodians, actuaries, attorneys, and
accountants in such connection;

     2.3-15 to employ and consult with any legal counsel, who also may be counsel to an Employer or
the Administrator, with respect to the meaning or construction of this Trust Agreement, the extent
of the Trustee’s obligations and duties hereunder, and whether the Trustee should take or decline
to take a particular action hereunder, and the Trustee shall be fully protected with respect to any
action taken or omitted by such Trustee in good faith pursuant to such advice;

     2.3-16 to defend any action or proceeding instituted against the Trust Fund, to institute any
action on behalf of the Trust Fund, and to compromise or submit to arbitration any dispute
concerning the Trust Fund;

     2.3-17 to make, execute, acknowledge and deliver any and all documents of transfer and
conveyance and any and all other instruments that may be necessary or appropriate to carry out the
powers herein granted;

     2.3-18 to commingle the Trust Fund created pursuant hereto, in whole or in part, in a single
trust with all or any portion of any other trust fund, assigning an undivided interest to each such
commingled trust fund, provided that such commingled trust is itself exempt from taxation pursuant
to Section 501(a) of the Code, or its successor Section; and provided further that the trust
agreement governing such commingled trust shall be deemed incorporated by reference in the Plan;

     2.3-19 where two or more trusts governed by this Trust Agreement have an undivided interest in
any property, to credit the income from such property to such trusts in proportion to their
undivided interests, and when non pro rata distributions of property or money are made from such
trusts, to make appropriate adjustments to the undivided fractional interests of such trusts;

     2.3-20 to invest all or any portion of the Trust Fund in one or more group annuity contracts,
deposit administration contracts, and other such contracts with insurance companies, including any
commingled separate accounts established under such contracts;

     2.3-21 generally, with respect to all cash, stocks and other securities, and property, both
real and personal, received or held in the Trust Fund by the Trustee, to exercise all the same
rights and powers as are or may be lawfully exercised by persons owning cash, or stocks and other
securities, or such property in their own right; and to do all other acts, whether or not expressly
authorized, which it may deem necessary or proper for the protection of the Trust Fund; and

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     2.3-22 whenever more than two persons shall qualify to act as co-Trustee, to exercise and
perform every power (including discretionary powers), authority or duty by the concurrence of a
majority of them the same effect as if all had joined therein, except that the unanimous vote of
such persons shall be necessary to determine the number (one or more) and identity of persons who
may sign checks, make withdrawals from financial institutions, have access to safe deposit boxes,
or direct the sale of trust assets and the disposition of the proceeds.

     2.4 Brokerage. If permitted in writing by the Committee the Trustee shall have the
power and authority, to be exercised in their sole discretion at any time and from time to time, to
issue and place orders for the purchase or sale of securities with qualified brokers and dealers.
Such orders may be placed with such qualified brokers and/or dealers who also provide investment
information or other research or statistical services to the Trustee in its capacity as a fiduciary
or investment manager for other clients.

     Section 3. Compensation and Indemnification of Trustee and Payment of Expenses and
Taxes.

     3.1 Fees and Expenses from Fund. In consideration for rendering services pursuant to
this Trust Agreement, the Trustee shall be paid fees in accordance with the Trustee’s fee schedule
as in effect from time to time. Fee changes resulting in fee increases shall be effective upon not
less than 30 days’ notice to the Bank. In addition, the Trustee shall be reimbursed for any
reasonable expenses, including reasonable attorneys’ fees, incurred in the administration of the
Trust created hereby. Fees and expenses shall be allocated to Participants’ Accounts, if any,
unless paid directly by the Employer. All compensation and expenses of the Trustee shall be paid
out of the Trust Fund or by the Employer as specified in the Plan. If and to the extent the Trust
Fund shall not be sufficient, such compensation and expenses shall be paid by the Employer upon
demand. If payment is due but not paid by the Employer, such amount shall be paid from the assets
of the Trust Fund. The Trustee is hereby empowered to withdraw all such compensation and expenses
which are 60 days past due from the Trust Fund, and, in furtherance thereof, liquidate any assets
of the Trust Fund, without further authorization or direction from or by any person.
Notwithstanding the foregoing, in the event any officer or director of First Savings Bank, F.S.B.
serves as trustee of the Plan, no compensation shall be paid to the officer or director in exchange
for his or her services as trustee.

     3.2 Indemnification. Notwithstanding any other provision of this Trust Agreement, any
individual designated as a trustee hereunder shall be indemnified and held harmless by the Employer
to the fullest extent permitted by law against any and all costs, damages, expenses and liabilities
including, but not limited to attorneys’ fees and disbursements reasonably incurred by or imposed
upon such individual in connection with any claim made against him or in which he may be involved
by reason of his being, or having been, a trustee hereunder, to the extent such amounts are not
satisfied by insurance maintained by the Employer, except liability which is adjudicated to have
resulted from the gross negligence or willful misconduct of the Trustee by reason of any action so
taken. Further, any corporate trustee and its officers, directors and agents may be indemnified
and held harmless by the Employer to the fullest extent permitted by law against any and all costs,
damages, expenses and liabilities including, but not limited to,

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attorneys’ fees and disbursements reasonably incurred by or imposed upon such persons and/or
corporation in connection with any claim made against it or them or in which such persons and/or
corporation may be involved by reason of its being, or having been, a trustee hereunder as may be
agreed between the Employer and such trustee, except liability which is adjudicated to have
resulted from the gross negligence or willful misconduct of the Trustee by reason of any action so
taken.

     3.3 Expenses. All expenses of administering the Trust and the Plan, whether incurred
by the Trustee or the Committee, shall be paid by the Trustee from the Trust Fund to the extent
such expenses shall not have been assumed by the Employer.

     3.4 Taxes. All taxes that may be levied or assessed upon or in respect of the Trust
Fund shall be paid from the Trust Fund. The Trustee shall notify the Committee of any proposed or
final assessments of taxes and may assume that any such taxes are lawfully levied or assessed
unless the Committee advises it in writing to the contrary within fifteen days after receiving the
above notice from the Trustee. In such case, the Trustee, if requested by the Committee in
writing, shall contest the validity of such taxes in any manner deemed appropriate by the
Committee; the Employer may itself contest the validity of any such taxes, in which case the
Committee shall so notify the Trustee and the Trustee shall have no responsibility or liability
respecting such contest. If either party to this Agreement contests any such proposed levy or
assessments, the other party shall provide such information and cooperation as the party conducting
the contest shall reasonably request.

     Section 4. Records and Valuation.

     4.1 Records. The Trustee, and any investment manager appointed pursuant to Section
2.2, shall maintain accurate and detailed records and accounts of all investments, receipts,
disbursements and other transactions made by it with respect to the Trust Fund, and all accounts,
books and records relating thereto shall be open at all reasonable time to inspection and audit by
the Committee and the Employer.

     4.2 Valuation. From time to time upon the request of the Committee, but at least
annually as of the last day of each Plan Year, the Trustee shall prepare a balance sheet of the
Investment Fund in accordance with the Plan and shall deliver copies of the balance sheet to the
Committee and the Employer.

     4.3 Discharge of Trustee. Ninety (90) days after the filing of any balance sheet
under Section 4.2 or any accounting under Section 6, the Trustee shall be forever released and
discharged from any liability or accountability other than for gross negligence or wilful
misconduct on the part of the Trustee to anyone with respect to the transactions shown or reflected
in such balance sheet or accounting, except with respect to any acts or transactions as to which
the Committee, within such 90-day period, files written objections with the Trustee. The written
approval of the Committee of any balance sheet or accounting so filed by the Trustee, or the
Committee’s failure to file written objections within 90 days, shall be a settlement of such
balance sheet or accounting as against all persons, and shall forever release and discharge the
Trustee from any liability of accountability to anyone with respect to the transactions shown or

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reflected in such balance sheet or accounting other than liability arising out of the Trustee’s
gross negligence or wilful misconduct. If a statement of objections is filed by the Committee and
the Committee is satisfied that its objections should be withdrawn or if the balance sheet or
accounting is adjusted to its satisfaction, the Committee shall indicate its approval of the
balance sheet or accounting in a written statement filed with the Trustee and the Trustee shall be
forever released and discharged from any liability of accountability to anyone in accordance with
the immediately preceding sentence. If an objection is not settled by the Committee and the
Trustee, the Trustee may start a proceeding for a judicial settlement of the balance sheet or
accounting in any court of competent jurisdictions; the only parties that need be joined in such a
proceeding are the Trustee, the Committee, the Employer and any other parties whose participation
is required by law.

     4.4 Right to Judicial Settlement. Nothing in this Agreement shall prevent the Trustee
from having its account settled by a court of competent jurisdiction at any time. The only parties
that need be joined in any such proceeding are the Employer, the Committee, the Trustee and any
other parties whose participation is required by law.

     Section 5. Instructions from Committee.

     5.1 Certification of Members of the Committee. From time to time the Bank shall
certify to the Trustee in writing the names of the individuals comprising the Committee and shall
furnish to the Trustee specimens of their signatures and the signatures of their agents, if any.
The Trustee shall be entitled to presume that the identities of such individuals and their agents
are unchanged until it receives a certification from the Bank notifying it of any changes.

     5.2 Instructions to Trustee.

     (a) The Trustee shall pay benefits and administrative expenses under the Plan only when it
receives (and in accordance with) written instructions of the Committee indicating the amount of
the payment and the name and address of the recipient in accordance with the terms of the Plan.
The Trustee need not inquire into whether any payment the Committee instructs the Trustee to make
is consistent with the terms of the Plan or applicable law or otherwise proper. Any payment made
by the Trustee in accordance with such instructions shall be a complete discharge and acquaintance
to the Trustee. If the Committee advises the Trustee that benefits have become payable with
respect to a Participant’s interest in the Trust Fund but does not instruct the Trustee as to the
manner of payment, the Trustee shall hold the Participant’s interest in the Trust until the Trustee
receives written instructions from the Committee as to the manner of payment. The Trustee shall
not pay benefits from the Trust Fund without such instructions, even though it may be informed from
other sources, including, without limitation, a Participant or Beneficiary, that benefits are
payable under the Plan. The Trustee shall have no responsibility to determine when, to whom or in
what amount benefits and expenses are payable under the Plan. Further, the Trustee shall have no
power, authority or duty to interpret the Plan or inquire into the decisions or determinations of
the Committee, or to question the instructions given to it by the Committee. If the Committee so
directs, the Trustee shall segregate amounts payable with respect to the interest in the Plan of
any Participant and administer them separately from the rest of the Trust Fund in accordance with
the Committee’s instructions.

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     (b) The Trustee may require the Committee to certify in writing that any payment of benefits
or expenses it instructs the Trustee to make pursuant to Section 5.2(a) above is: (i) in
accordance with the terms of the Plan and/or (ii) one which the Committee is authorized by the Plan
and any other applicable instruments to direct and/or (iii) made for the exclusive purpose of
providing benefits to Participants and Beneficiaries, or defraying reasonable expenses of Plan
administration and/or (iv) not made to a party in interest (within the meaning of ERISA Section
3(14)), and/or (v) not a prohibited transaction (within the meaning of Code Section 4975 and ERISA
Section 406). If the Trustee requests, instructions to pay benefits shall be made by the Committee
on forms prepared by the Trustee to include any or all of the above representations. The Trustee
shall be fully protected in relying on the truth of any such representation by the Committee and
shall have no duty to investigate whether such representations are correct or to see to the
application of any amounts paid to and received by the recipient.

     5.3 Plan Change. In the event of an amendment, merger, division, or termination of
the Plan, the Trustee shall continue to disburse funds and to take other proper actions in
accordance with the instructions of the Committee.

     Section 6. Change of Trustee.

     The Bank may at any time remove any person or entity serving as a Trustee hereunder by giving
to such person or entity written notice of removal and, if applicable, the name and address of the
successor trustee. Any person or entity serving as a Trustee hereunder may resign at any time by
giving written notice to the Bank. Any such removal or resignation shall take effect within 30
days after notice has been given by the Trustee or by the Bank, as the case may be. Within those
30 days, the removed or resigned Trustee shall transfer, pay over and deliver any portion of the
Trust Fund in its possession or control (less an appropriate reserve for any unpaid fees, expenses,
and liabilities) and all pertinent records to the successor or remaining trustee; provided,
however, that any assets which are invested in a collective fund or in some other manner which
prevents their immediate transfer shall be transferred and delivered to the successor trustee as
soon as may be practicable. Thereafter, the removed or resigned Trustee shall have no liability
for the Trust Fund or for its administration by the successor or remaining trustee, but shall
render an accounting to the Committee of its administration of the Trust Fund through the date on
which its Trusteeship shall have been terminated. The Bank may also, upon 30 days’ notice to each
person currently serving as a trustee, appoint one or more persons to serve as co-Trustee
hereunder.

     Section 7. Miscellaneous.

     7.1 Right to Amend. This Trust Agreement may be amended from time to time by an
instrument executed by the Bank; provided, however, that any amendment affecting the powers, duties
or liabilities of the Trustee must be approved by the Trustee, and provided, further, that no
amendment may divert any portion of the Trust Fund to purposes other than the exclusive benefit of
the Participants and their Beneficiaries prior to the satisfaction of all liabilities for benefits.
Any amendment shall apply to the Trust Fund as constituted at the time of the amendment as well as
to that portion of the Trust Fund which is subsequently acquired.

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     7.2 Compliance with ERISA. In the exercise of its powers and the performance of its
duties, the Trustee shall act in good faith and in accordance with the applicable requirements
under ERISA. Except as may be otherwise required by ERISA, the Trustee shall not be required to
furnish any bond in any jurisdiction for the performance of their duties and, if a bond is required
despite this provision, no surety shall be required on it.

     7.3 Nonresponsibility for Funding. The Trustee shall be under no duty to enforce the
payment of any contributions and shall not be responsible for the adequacy of the Trust Fund to
satisfy any obligations for benefits, expenses, and liabilities under the Plan.

     7.4 Reports. The Trustees shall file any report which they are required by law to
file with any governmental authority with respect to this Trust, and the Committee shall furnish to
the Trustee whatever information is necessary to prepare the report.

     7.5 Dealings with the Trustee. Persons dealing with the Trustee, including, but not
limited to, banks, brokers, dealers, and insurers, shall be under no obligation to inquire
concerning the validity of anything which the Trustee purports to do, nor need any person see to
the proper application of any money paid or any property transferred upon the order of the Trustee
or to inquire into the Trustee’s authority as to any transaction.

     7.6 Limitation Upon Responsibilities. The Trustee shall have no responsibilities with
respect to the Plan or Trust other than those specifically enumerated or explicitly allocated to it
under this Trust Agreement or the provisions of ERISA. All other responsibilities are retained and
shall be performed by one or more of the Employer, the Committee, and such advisors or agents as
they choose to engage.

     The Trustee may execute any of the trusts or powers hereof and perform any of its duties by or
through attorneys, agents, receivers or employees and shall not be answerable for the conduct of
the same if chosen with reasonable care and shall be entitled to advice of counsel concerning all
matters of trust hereof and the duties hereunder, and may in all cases pay such reasonable
compensation to all such attorneys, agents, receivers and employees as may reasonably be employed
in connection with the trusts hereof. The Trustee may act upon the opinion or advice of any
attorney (who may be the attorney for the Trustee or attorney for the Committee), approved by the
Trustee in the exercise of reasonable care. The Trustee shall not be responsible for any loss or
damage resulting from any action or non-action in good faith in reliance upon such opinion or
advice.

     The Trustee shall be protected in acting upon any notice, request, consent, certificate,
order, affidavit, letter, telegram or other paper or document believed to be genuine and correct
and to have been signed or sent by the proper person or persons, and the Trustee shall be under no
duty to make any investigation or inquiry as to any statement contained in any such writing but may
accept the same as conclusive evidence of the truth and accuracy of the statements therein
contained.

11

 

     The Trustee shall not be liable for other than their gross negligence or willful misconduct.
Except in the case of gross negligence or wilful misconduct on the part of the Trustee, the Trustee
in its corporate capacity shall not be liable for claims of any persons in any manner regarding the
Plan; such claims shall be limited to the Trust Fund. Unless the Trustee participates knowingly
in, or knowingly undertakes to conceal, an act or omission of the Committee or any other fiduciary,
knowing such act or omission to be a breach of fiduciary responsibility, the Trustee shall be under
no liability for any loss of any kind which may result by reason of such act or omission.

     Before taking any action hereunder at the request or direction of the Committee, the Trustee
may require that indemnity in form and amount satisfactory to the Trustee be furnished for the
reimbursement of any and all costs and expenses to which they may be put including, without
limitation, reasonable attorneys’ fees and to protect them against all liability, except liability
which is adjudicated to have resulted from the gross negligence or willful misconduct of the
Trustee by reason of any action so taken.

     No provision of this Trust Agreement shall require the Trustee to expend or risk their own
funds or otherwise incur any financial liability in the performance of any of their duties
hereunder, or in the exercise of any of their rights or powers, if they shall have reasonable
grounds for believing that repayment of such funds or adequate indemnity against such risk or
liability is not reasonably assured to them.

     7.7 Qualification of the Plan and Trust. The Trustee shall be fully protected in
assuming that the Plan and Trust meet the requirements of Code Sections 401 and 501, respectively,
and all the applicable provisions of ERISA, unless they are advised to the contrary in writing by
the Committee or a governmental agency.

     7.8 Party in Interest Information. The Employer shall provide the Trustee with such
information concerning the relationship between any person or organization and the Plan as the
Trustee reasonably requests in order to determine whether such person or organization is a party in
interest with respect to the Plan within the meaning of ERISA Section 3(14).

     7.9 Disputes. If a dispute arises as to the payment of any funds or delivery of any
assets by the Trustee, the Trustee may withhold such payment or delivery until the dispute is
determined by a court of competent jurisdiction or finally settled in writing by the parties
concerned.

     7.10 Successor Trustee. This Trust Agreement shall apply to any person who shall be
appointed to succeed the person currently appointed as the Trustee; and any reference herein to the
Trustee shall be deemed to include any one or more individuals or corporations or any combination
thereof who or which have at any time acted as a co-trustee or as the sole trustee.

     7.11 Governing State Law. This Trust Agreement shall be interpreted in accordance
with the laws of the State of [Illinois] to the extent those laws may be applicable under the
provisions of ERISA.

12

 

     IN WITNESS WHEREOF, the parties hereto have executed this Trust Agreement as of the day and
year first above written.

	 	 	 	 	 
	 	ATHENS FEDERAL COMMUNITY BANK

 	 
	 	By:  	 	 
	 	 	For the Entire Board of Directors 	 
	 	 	 	 
	 
	 	[TRUSTEE]

  as TRUSTEE	 
	 	 	 
	 	 	 
	 	Authorized Trust Officer	 

13EX-10.3 FORM OF PLAN LOAN AGRMT, PLEDGE AGRMT

Exhibit 10.3

ESOP LOAN AGREEMENT

     THIS LOAN AGREEMENT (“Loan Agreement”) is made and entered into as of the [x] day of [month],
20010, by and between the ATHENS FEDERAL COMMUNITY BANK EMPLOYEE STOCK OWNERSHIP PLAN TRUST
(“Borrower”), a trust forming part of the Athens Federal Community Bank Employee Stock Ownership
Plan (“ESOP”), and [COMPANY] (“Lender”), a corporation organized and existing under the laws of
[Tennessee].

W I T N E S S E T H

     WHEREAS, the Borrower is authorized to purchase shares of common stock of [Company] (“Common
Stock”), either directly from [Company] or in open market purchases in an amount not to exceed
[amount] ($[#]) of [amount] ([#]) shares of Common Stock.

     WHEREAS, the Borrower is authorized to borrow funds from the Lender for the purpose of
financing authorized purchases of Common Stock; and

     WHEREAS, the Lender is willing to make a loan to the Borrower for such purpose.

     NOW, THEREFORE, the parties agree hereto as follows:

ARTICLE I

Definitions

     The following definitions shall apply for purposes of this Loan Agreement, except to the
extent that a different meaning is plainly indicated by the context:

     Business Day means any day other than a Saturday, Sunday or other day on which banks
are authorized or required to close under federal or local law or regulation.

     Code means the Internal Revenue Code of 1986, as amended (including the corresponding
provisions of any succeeding law).

     Default means an event or condition which would constitute an Event of Default. The
determination as to whether an event or condition would constitute an Event of Default shall be
determined without regard to any applicable requirements of notice or lapse of time.

     ERISA means the Employee Retirement Income Security Act of 1974, as amended (including
the corresponding provisions of any succeeding law).

     Event of Default means an event or condition described in Article 5 of this Loan
Agreement.

     Loan means the loan described in Section 2.1 of this Loan Agreement.

     Loan Documents means, collectively, the Loan Agreement, the Promissory Note and the
Pledge Agreement and all other documents now or hereafter executed and delivered in connection with
such documents, including all amendments, modifications and supplements of or to all such
documents.

 

 

     Pledge Agreement means the agreement described in Section 2.8(a) of this Loan
Agreement.

     Principal Amount means the face amount of the Promissory Note, determined as set forth
in Section 2.1(c) of this Loan Agreement.

     Promissory Note means the promissory note described in Section 2.3 of this Loan
Agreement.

     Register means the register described in Section 2.9 of this Loan Agreement.

ARTICLE II

The Loan; Principal Amount;

Interest; Security; Indemnification

     Section 2.1 The Loan; Principal Amount.

     (a) The Lender hereby agrees to lend to the Borrower such amount, and at such time, as shall
be determined under this Section 2.1; provided, however, that in no event shall the aggregate
amount lent under this Loan Agreement from time to time exceed the greater of (i) [number] ($[#])
or (ii) the aggregate amount paid by the Borrower to purchase up to [number] ([#]) shares of Common
Stock.

     (b) Subject to the limitations of Section 2.1(a), the Borrower shall determine the amounts
borrowed under this Loan Agreement, and the time at which such borrowings are effected. Each such
determination shall be evidenced in a writing which shall set forth the amount to be borrowed and
the date on which the Lender shall disburse such amount, and such writing shall be furnished to the
Lender by notice from the Borrower. The Lender shall disburse to the Borrower the amount specified
in each such notice on the date specified therein or, if later, as promptly as practicable
following the Lender’s receipt of such notice; provided, however, that the Lender shall have no
obligation to disburse funds pursuant to this Agreement following the occurrence of a Default or an
Event of Default until such time as such Default or Event of Default shall have been cured.

     (c) For all purposes of this Loan Agreement, the Principal Amount on any date shall be equal
to the excess, if any, of:

	 	(i)	 	the aggregate amount disbursed by the Lender pursuant
to Section 2.1(b) on or before such date; over
	 
	 	(ii)	 	the aggregate amount of any repayments of such amounts
made before such date.

The Lender shall maintain on the Register a record of, and shall record in the Promissory Note, the
Principal Amount, any changes in the Principal Amount and the effective date of any changes in the
Principal Amount.

     Section 2.2 Interest.

     (a) The Borrower shall pay to the Lender interest on the Principal Amount, for the period
commencing with the first disbursement of funds under this Loan Agreement and continuing until the
Principal Amount shall be paid in full, at the rate of [number] percent ([#]%) per annum. Interest
payable under this Agreement shall be computed on the basis of a

2

 

year of 365 days and actual days elapsed (including the first day but excluding the last) occurring
during the period to which the computation relates.

     (b) Accrued interest on the Principal Amount shall be payable by the Borrower on the dates set
forth in Schedule I to the Promissory Note. All interest on the Principal Amount shall be paid by
the Borrower in immediately available funds.

     (c) Anything in this Loan Agreement or the Promissory Note to the contrary notwithstanding,
the obligation of the Borrower to make payments of interest shall be subject to the limitation that
payments of interest shall not be required to be made to the Lender to the extent that the Lender’s
receipt thereof would not be permissible under the law or laws applicable to the Lender limiting
rates of interest which may be charged or collected by the Lender. Any such payment referred to in
the preceding sentence shall be made by the Borrower to the Lender on the earliest interest payment
date or dates on which the receipt thereof would be permissible under the laws applicable to the
Lender limiting rates of interest which may be charged or collected by the Lender. Such deferred
interest shall not bear interest.

     Section 2.3 Promissory Note.

     The Loan shall be evidenced by the Promissory Note of the Borrower attached hereto as an
exhibit payable to the order of the lender in the Principal Amount and otherwise duly completed.

     Section 2.4 Payment of Trust Loan.

     The Principal Amount of the Loan shall be repaid in accordance with Schedule I to the
Promissory Note on the dates specified therein until fully paid.

     Section 2.5 Prepayment.

     The Borrower shall be entitled to prepay the Loan in whole or in part, at any time and from
time to time; provided, however, that the Borrower shall give notice to the Lender of any such
prepayment; and provided, further, that any partial prepayment of the Loan shall be in an amount
not less than $1,000. Any such prepayment shall be: (a) permanent and irrevocable; (b) accompanied
by all accrued interest through the date of such prepayment; (c) made without premium or penalty;
and (d) applied on the inverse order of the maturity of the installment thereof unless the Lender
and the Borrower agree to apply such prepayments in some other order.

     Section 2.6 Method of Payments.

     (a) All payments of principal, interest, other charges (including indemnities) and other
amounts payable by the Borrower hereunder shall be made in lawful money of the United States, in
immediately available funds, to the Lender at the address specified in or pursuant to this Loan
Agreement for notices to the Lender, on the date on which such payment shall become due. Any such
payment made on such date but after such time shall, if the amount paid bears interest, and except
as expressly provided to the contrary herein, be deemed to have been made on, and interest shall
continue to accrue and be payable thereon until, the next succeeding Business Day. If any payment
of principal or interest becomes due on a day other than a Business Day, such payment may be made
on the next succeeding Business Day, and when paid, such payment shall include interest to the day
on which payment is in fact made.

     (b) Notwithstanding anything to the contrary contained in this Loan Agreement or the
Promissory Note, the Borrower shall not be obligated to make any payment, repayment or pre-

3

 

payment on the Promissory Note if doing so would cause the ESOP to cease to be an employee stock
ownership plan within the meaning of Section 4975(e)(7) of the Code or qualified under Section
401(a) of the Code or cause the Borrower to cease to be a tax exempt trust under Section 501(a) of
the Code or if such act or failure to act would cause the Borrower to engage in any “prohibited
transaction” as such term is defined in the Section 4975(c) of the Code and the regulations
promulgated thereunder which is not exempted by Section 4975(c)(2) or (d) of the Code and the
regulations promulgated thereunder or in Section 406 of ERISA and the regulations promulgated
thereunder which is not exempted by Section 408(b) of ERISA and the regulations promulgated
thereunder; provided, however, that in each case, the Borrower, may act or refrain from acting
pursuant to this Section 2.6(b) on the basis of an opinion of counsel, and any opinion of such
counsel. The Borrower may consult with counsel, and any opinion of such counsel shall be full and
complete authorization and protection in respect of any action taken or suffered or omitted by it
hereunder in good faith and in accordance with such opinion of counsel. Nothing contained in this
Section 2.6(b) shall be construed as imposing a duty on the Borrower to consult with counsel. Any
obligation of the Borrower to make any payment, repayment or prepayment on the Promissory Note or
refrain from taking any other act hereunder or under the Promissory Note which is excused pursuant
to this Section 2.6(b) shall be considered a binding obligation of the Borrower, or both, as the
case may be, for the purposes of determining whether a Default or Event of Default has occurred
hereunder or under the Promissory Note and nothing in this Section 2.6(b) shall be construed as
providing a defense to any remedies otherwise available upon a Default or an Event of Default
hereunder (other than the remedy of specific performance).

     Section 2.7 Use of Proceeds of Loan.

     The entire proceeds of the Loan shall be used solely for acquiring shares of Common Stock, and
for no other purpose whatsoever.

     Section 2.8 Security.

     (a) In order to secure the due payment and performance by the Borrower of all of its
obligations under this Loan Agreement, simultaneously with the execution and delivery of this Loan
Agreement by the Borrower, the Borrower shall:

	 	(i)	 	pledge to the Lender as Collateral (as defined in the
Pledge Agreement), and grant to the Lender a first priority lien on and
security interest in, the Common Stock purchased with the Principal
Amount, by the execution and delivery to the lender of the Pledge
Agreement attached hereto as an exhibit; and
	 
	 	(ii)	 	execute and deliver, or cause to be executed and
delivered, such other agreement, instruments and documents as the
Lender may reasonably require in order to effect the purposes of the
Pledge Agreement and this Loan Agreement.

     (b) The Lender shall release from encumbrance under the Pledge Agreement and transfer to the
Borrower, as of the date on which any payment or repayment of the Principal Amount is made, a
number of shares of Common Stock held as Collateral determined pursuant to the applicable
provisions of the ESOP.

     Section 2.9 Registration of the Promissory Note.

     (a) The Lender shall maintain a Register providing for the registration of the Principal
Amount and any stated interest and of transfer and exchange of the Promissory Note.

4

 

Transfer of the Promissory Note may be effected only by the surrender of the old instrument and
either the reissuance by the Borrower of the old instrument to the new holder or the issuance by
the Borrower of a new instrument to the new holder. The old Promissory Note so surrendered shall
be canceled by the Lender and returned to the Borrower after such cancellation.

     (b) Any new Promissory Note issued pursuant to Section 2.9(a) shall carry the same rights to
interest (unpaid and to accrue) carried by the Promissory Note so transferred or exchanged so that
there will not be any loss or gain of interest on the note surrender. Such new Promissory Note
shall be subject to all of the provisions and entitled to all of the benefits of this Agreement.
Prior to due presentment for registration or transfer, the Borrower may deem and treat the
registered holder of any Promissory Note as the holder thereof for purposes of payment and other
purposes. A notation shall be made on each new Promissory Note of the amount of all payments of
principal and interest theretofore paid.

ARTICLE III

Representations And Warranties Of The Borrower

     The Borrower hereby represents and warrants to the Lender as follows:

     Section 3.1 Power, Authority, Consents.

     The Borrower has the power to execute, deliver and perform this Loan Agreement, the Promissory
Note and Pledge Agreement, all of which have been duly authorized by all necessary and proper
corporate or other action.

     Section 3.2 Due Execution, Validity, Enforceability.

     Each of the Loan Documents, including, without limitation, this Loan Agreement, the Promissory
Note and the Pledge Agreement, has been duly executed and delivered by the Borrower; and each
constitutes the valid and legally binding obligation of the Borrower, enforceable in accordance
with its terms.

     Section 3.3 Properties, Priority of Liens.

     The liens which have been created and granted by the Pledge Agreement constitute valid, first
liens on the properties and assets covered by the Pledge Agreement, subject to no prior or equal
lien.

     Section 3.4 No Defaults, Compliance with Laws.

     The Borrower is not in default in any material respect under any agreement, ordinance,
resolution, decree, bond, note, indenture, order or judgment to which it is a party or by which it
is bound, or any other agreement or other instrument by which any of the properties or assets owned
by it is materially affected.

     Section 3.5 Purchase of Common Stock.

     Upon consummation of any purchase of Common Stock by the Borrower with the proceeds of the
Loan, the Borrower shall acquire valid, legal and marketable title to all of the Common Stock so
purchased, free and clear of any liens, other than a pledge to the Lender of the Common Stock so
purchased pursuant to the Pledge Agreement. Neither the execution and delivery of the Loan
Documents nor the performance of any obligation thereunder violates any provisions of law or
conflicts with or results in a breach of or creates (with or without the giving of notice of lapse
of time, or both) a default under any agreement to which the Borrower is a

5

 

party or by which it is bound or any of its properties is affected. No consent of any federal,
state, or local governmental authority, agency, or other regulatory body, the absence of which
could have a materially adverse effect on the Borrower or the Trustee, is or was required to be
obtained in connection with the execution, delivery, or performance of the Loan Documents and the
transaction contemplated therein or in connection therewith, including without limitation, with
respect to the transfer of the shares of Common Stock purchased with the proceeds of the Loan
pursuant thereto.

     Section 3.6 ESOP; Contributions.

     As of the effective date of the ESOP sponsor’s conversion, the ESOP and the Borrower will be
duly created, organized and maintained by the ESOP sponsor in compliance with all applicable laws,
regulations and rulings. The ESOP will qualify as an “employee stock ownership plan” as defined in
Section 4975(e)(7) of the Code. The ESOP provides that the ESOP sponsor may make contributions to
the ESOP in an amount necessary to enable the Trustee to amortize the Loan in accordance with the
terms of the Promissory Note; provided, however, that no such contributions shall be required if
they would adversely affect the qualification of the ESOP under Section 401(a) of the Code.

     Section 3.7 Trustee.

     The trustee of the ESOP has been duly appointed by the ESOP sponsor.

     Section 3.8 Compliance with Laws; Actions.

     Neither the execution and delivery by the Borrower of this Loan Agreement or any instruments
required thereby, nor compliance with the terms and provisions of any such documents by the lender,
constitutes a violation of any provision of any law or any regulation, order, writ, injunction or
decree of any court or governmental instrumentality, or an event of default under any agreement, to
which the Borrower is a party, to which the Borrower is bound or to which the Borrower is subject,
which violation or event of default would have a material adverse effect on the Borrower. There is
no action or proceeding pending or threatened against either the ESOP or the Borrower before any
court or administrative agency.

ARTICLE IV

Representations And Warranties Of The Lender

     The Lender hereby represents and warrants to the Borrower as follows:

     Section 4.1 Power, Authority, Consents.

     The Lender has the power to execute, deliver and perform this Loan Agreement, the Pledge
Agreement and all documents executed by the Lender in connection with the Loan, all of which have
been duly authorized by all necessary and proper corporate or other action. No consent,
authorization or approval or other action by any governmental authority or regulatory body, and no
notice by the Lender to, or filing by the Lender with, any governmental authority or regulatory
body is required for the due execution, delivery and performance of this Loan Agreement.

     Section 4.2 Due Execution, Validity, Enforceability.

     This Loan Agreement and the Pledge Agreement have been duly executed and delivered by the
Lender, and each constitutes a valid and legally binding obligation of the Lender, enforceable in
accordance with its terms.

6

 

ARTICLE V

Events Of Default

	 
	     Section 5.1 Events of Default under Loan Agreement.

	 
	     Each of the following events shall constitute an “Event of Default” hereunder:

     (a) Failure to make any payment or mandatory prepayment of principal of the Promissory Note
when due, or failure to make any payment of interest on the Promissory Note not later than five (5)
Business Days after the date when due.

     (b) Failure by the Borrower to perform or observe any term, condition or covenant of this Loan
Agreement or of any of the other Loan Documents, including, without limitation, the Promissory Note
and the Pledge Agreement.

     (c) Any representation or warranty made in writing to the Lender in any of the Loan Documents,
or any certificate, statement or report made or delivered in compliance with this Loan Agreement,
shall have been false or misleading in any material respect when made or delivered.

     Section 5.2 Lender’s Rights upon Event of Default.

     If an Event of Default under this Loan Agreement shall occur and be continuing, the Lender
shall have no rights to assets of the Borrower other than: (a) contributions (other than
contributions of Common Stock) that are made by the ESOP sponsor to enable the Borrower to meet its
obligations pursuant to this Loan Agreement and earnings attributable to the investment of such
contributions and (b) “Eligible Collateral” (as defined in the Pledge Agreement); provided,
however, that: (i) the value of the Borrower’s assets transferred to the Lender following an Event
of Default in satisfaction of the due and unpaid amount of the Loan shall not exceed the amount in
default (without regard to amounts owing solely as a result of any acceleration of the Loan); (ii)
the Borrower’s assets shall be transferred to the Lender following an Event of Default only to the
extent of the failure of the Borrower to meet the payment schedule of the Loan; and (iii) all
rights of the Lender to the Common Stock purchased with the proceeds of the Loan covered by the
Pledge Agreement following an Event of Default shall be governed by the terms of the Pledge
Agreement.

ARTICLE VI

Miscellaneous Provisions

     Section 6.1 Payments Due to the Lender.

     If any amount is payable by the Borrower to the Lender pursuant to any indemnity obligation
contained herein, then the Borrower shall pay, at the time or times provided therefor, any such
amount and shall indemnify the Lender against and hold it harmless from any loss or damage
resulting from or arising out of the nonpayment or delay in payment of any such amount. If any
amounts as to which the Borrower has so indemnified the Lender hereunder shall be assessed or
levied against the Lender, the Lender may notify the Borrower and make immediate payment thereof,
together with interest or penalties in connection therewith, and shall thereupon be entitled to and
shall receive immediate reimbursement therefor from the Borrower, together with interest on each
such amount as provided for in Section 2.2(c) of this Loan Agreement. Notwithstanding any other
provision contained in this Loan Agreement, the covenants and agreements of the Borrower contained
in this Section 6.1 shall survive: (a) payment of the Promissory Note and (b) termination of this
Loan Agreement.

7

 

     Section 6.2 Payments.

     All payments hereunder and under the Promissory Note shall be made without set-off or
counterclaim and in such amounts as may be necessary in order that all such payments shall not be
less than the amounts otherwise specified to be paid under this Loan Agreement and the Promissory
Note, subject to any applicable tax withholding requirements. Upon payment in full of the
Promissory Note, the Lender shall mark such Promissory Note “Paid” and return it to the Borrower.

     Section 6.3 Survival.

     All agreements, representations and warranties made herein shall survive the delivery of this
Loan Agreement and the Promissory Note.

     Section 6.4 Modifications, Consents and Waivers; Entire Agreement.

     No modification, amendment or waiver of or with respect to any provision of this Loan
Agreement, the Promissory Note, the Pledge Agreement, or any of the other Loan Documents, nor
consent to any departure from any of the terms or conditions thereof, shall in any event be
effective unless it shall be in writing and signed by the party against whom enforcement thereof is
sought. Any such waiver or consent shall be effective only in the specific instance and for the
purpose for which given. No consent to or demand on a party in any case shall, of itself, entitle
it to any other or further notice or demand in similar or other circumstances. This Loan Agreement
embodies the entire agreement and understanding between the Lender and the Borrower and supersedes
all prior agreements and understandings relating to the subject matter hereof.

     Section 6.5 Remedies Cumulative.

     Each and every right granted to the Lender hereunder or under any other document delivered
hereunder or in connection herewith, or allowed it by law or equity, shall be cumulative and may be
exercised from time to time. No failure on the part of the Lender or the holder of the Promissory
Note to exercise, and no delay in exercising, any right shall operate as a waiver thereof, nor
shall any single or partial exercise of any right preclude any other or future exercise thereof or
the exercise of any other right. The due payment and performance of the obligations under the Loan
Documents shall be without regard to any counterclaim, right of offset or any other claim
whatsoever which the Borrower may have against the Lender and without regard to any other
obligation of any nature whatsoever which the Lender may have to the Borrower, and no such
counterclaim or offset shall be asserted by the Borrower in any action, suit or proceeding
instituted by the Lender for payment or performance of such obligations.

     Section 6.6 Further Assurances; Compliance with Covenants.

     At any time and from time to time, upon the request of the Lender, the Borrower shall execute,
deliver and acknowledge or cause to be executed, delivered and acknowledged, such further documents
and instruments and do such other acts and things as the Lender may reasonably request in order to
fully effect the terms of this Loan Agreement, the Promissory Note, the Pledge Agreement, the other
Loan Documents and any other agreements, instruments and documents delivered pursuant hereto or in
connection with the Loan.

     Section 6.7 Notices.

     Except as otherwise specifically provided for herein, all notice, requests, reports and other
communications pursuant to this Loan Agreement shall be in writing, either by letter

8

 

(delivered by hand or commercial messenger service or sent by registered or certified mail, return
receipt requested, except for routine reports delivered in compliance with Article VI hereof which
may be sent by ordinary first-class mail) or telex or telecopier addressed as follows:

	 	 	 
	(a)

	 	If to the Borrower:
	 
	 	 
	 

	 	Athens Federal Community Bank Employee Stock Ownership Plan
	 

	 	c/o [Trustee
	 

	 	Trustee Address
	 

	 	Attn: ]
	 
	 	 
	(b)

	 	If to the Lender:
	 
	 	 
	 

	 	[COMPANY]
	 

	 	106 Washington Avenue, N.W.
	 

	 	Athens, Tennessee 37303
	 

	 	Attn: Jeffrey L. Cunningham

Any notice, request or communication hereunder shall be deemed to have been given on the day on
which it is delivered by hand or by commercial messenger service, or sent by telex, or telecopier,
to such party at its address specified above, or, if sent by mail, on the third Business Day after
the day deposited in the mail, postage prepaid, addressed as aforesaid. Any party may change the
person or address to whom or which notices are to be given hereunder, by notice duly given
hereunder; provided, however, that any such notice shall be deemed to have been given only when
actually received by the party to whom it is addressed.

     Section 6.8 Counterparts.

     This Loan Agreement may be signed in any number of counterparts which, when taken together,
shall constitute one and the same document.

     Section 6.9 Construction; Governing Law.

     The headings used in the table of contents and in this Loan Agreement are for convenience only
and shall not be deemed to constitute a part hereof. All uses herein of any gender or of singular
or plural terms shall be deemed to include uses of the other genders or plural or singular terms,
as the context may require. All references in this Loan Agreement of an Article or section shall
be to an Article or section of this Loan Agreement, unless otherwise specified. This Loan
Agreement, the Promissory Note, the Pledge Agreement and the other Loan Documents shall be governed
by, and construed and interpreted in accordance with, the laws of the State of Tennessee.

     Section 6.10 Severability.

     Wherever possible, each provision of this Loan Agreement shall be interpreted in such manner
as to be effective and valid under applicable law; however, the provisions of this Loan Agreement
are severable, and if any clause or provision hereof shall be held invalid or unenforceable in
whole or in part in any jurisdiction, then such invalidity or unenforceability shall affect only
such clause or provision, or part thereof, in such jurisdiction and shall not in any manner affect
such clause or provision in any other jurisdiction, or any other clause or provisions in this Loan
Agreement in any jurisdiction. Each of the covenants, agreements and conditions contained in this
Loan Agreement are independent, and compliance by a party with any of them

9

 

shall not excuse non-compliance by such party with any other. The Borrower shall not take any
action the effect of which shall constitute a breach or violation of any provision of this Loan
Agreement.

     Section 6.11 Binding Effect: No Assignment or Delegation.

     This Loan Agreement shall be binding upon and inure to the benefit of the Borrower and its
successors and the Lender and its successors and assigns. The rights and obligations of the
Borrower under this Agreement shall not be assigned or delegated without the prior written consent
of the Lender, and any purported assignment or delegation without such consent shall be void.

[SIGNATURE PAGE TO FOLLOW]

10

 

     IN WITNESS WHEREOF, the parties have caused this Loan Agreement to be executed as of the date
first written above.

	 	 	 	 	 
	 

	 	ATHENS FEDERAL COMMUNITY BANK	 	 
	 

	 	EMPLOYEE STOCK OWNERSHIP PLAN TRUST	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	 

	 	 

Authorized Trust Officer for [Trustee]
	 	 
	 
	 	 	 	 
	 

	 	[COMPANY]	 	 
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 

Jeffrey L. Cunningham

	 	 
	 

	 	President
and Chief Executive Officer
	 	 

11

 

PLEDGE AGREEMENT

     THIS PLEDGE AGREEMENT (“Pledge Agreement”) is made as of the [x] day of [month], 2010, by and
between the ATHENS FEDERAL COMMUNITY BANK EMPLOYEE STOCK OWNERSHIP PLAN TRUST (“Pledgor”), and
[COMPANY] (“Pledgee”).

W I T N E S S E T H

     WHEREAS, this Pledge Agreement is being executed and delivered to the Pledgee pursuant to the
terms of a Loan Agreement (“Loan Agreement”), by and between the Pledgor and the Pledgee;

     NOW, THEREFORE, in consideration of the mutual agreements contained herein and in the Loan
Agreement, the parties hereto do hereby covenant and agree as follows:

     Section 1. Definitions. The following definitions shall apply for purposes of this Pledge
Agreement, except to the extent that a different meaning is plainly indicated by the context; all
capitalized terms used but not defined herein shall have the respective meanings assigned to them
in the Loan Agreement:

     Collateral shall mean the Pledged Shares and, subject to Section 5 hereof, and to the
extent permitted by applicable law, all rights with respect thereto, and all proceeds of such
Pledged Shares and rights.

     ESOP shall mean the Athens Federal Community Bank Employee Stock Ownership Plan.

     Event of Default shall mean an event so defined in the Loan Agreement.

     Liabilities shall mean all the obligations of the Pledgor to the Pledgee, howsoever
created, arising or evidenced, whether direct or indirect, absolute or contingent, now or hereafter
existing, or due or to become due, under the Loan Agreement and the Promissory Note.

     Pledged Shares shall mean all the Shares of Common Stock of [Company] purchased by the
Pledgor with the proceeds of the loan made by the Pledgee to the Pledgor pursuant to the Loan
Agreement, but excluding any such shares previously released pursuant to Section 4 of this Pledge
Agreement.

     Section 2. Pledge. To secure the payment of and performance of all the Liabilities, the
Pledgor hereby pledges to the Pledgee, and grants to the Pledgee, a security interest in, and lien
upon, the Collateral.

     Section 3. Representations and Warranties of the Pledgor. The Pledgor represents, warrants,
and covenants to the Pledgee as follows:

 

 

     (a) the execution, delivery and performance of this Pledge Agreement and the pledging of the
Collateral hereunder do not and will not conflict with, result in a violation of, or constitute a
default under, any agreement binding upon the Pledgor;

     (b) the Pledged Shares are and will continue to be owned by the Pledgor free and clear of any
liens or rights of any other person except the lien hereunder and under the Loan Agreement in favor
of the Pledgee, and the security interest of the Pledgee in the Pledged Shares and the proceeds
thereof is and will continue to be prior to and senior to the rights of all others;

     (c) this Pledge Agreement is the legal, valid, binding and enforceable obligation of the
Pledgor in accordance with its terms;

     (d) the Pledgor shall, from time to time, upon request of the Pledgee, promptly deliver to the
Pledgee such stock powers, proxies, and similar documents, satisfactory in form and substance to
the Pledgee, with respect to the Collateral as the Pledgee may reasonably request; and

     (e) subject to the first sentence of Section 4(b) of this Pledge Agreement, the Pledgor shall
not, so long as any Liabilities are outstanding, sell, assign, exchange, pledge or otherwise
transfer or encumber any of its rights in and to any of the Collateral.

     Section 4. Eligible Collateral.

     (a) As used herein the term “Eligible Collateral” shall mean the amount of Collateral which
has an aggregate fair market value equal to the amount by which the Pledgor is in default (without
regard to any amounts owing solely as the result of an acceleration of the Loan Agreement) or such
lesser amount of Collateral as may be required pursuant to Section 13 of this Pledge Agreement.

     (b) The Pledged Shares shall be released from this Pledge Agreement in a manner conforming to
the requirements of Treasury Regulations Section 54.4975-7(b)(8), as the same may be from time to
time amended or supplemented, and the applicable provisions of the ESOP. Subject to the Treasury
Regulations, the Pledgee may from time to time, after any Default or Event of Default, and without
prior notice to the Pledgor, transfer all or any part of the Eligible Collateral in the name of the
Pledgee or its nominee, without disclosing that such Eligible Collateral is subject to any rights
of the Pledgor and may from time to time, whether before or after any of the Liabilities shall
become due and payable, without notice to the Pledgor, take all or any of the following actions:
(i) notify the parties obligated on any of the Eligible Collateral to make payment to the Pledgee
of any amounts due or due to become due thereunder, (ii) release or exchange all or any part of the
Eligible Collateral, or compromise or extend or renew for any period (whether or not longer than
the original period) any obligations of any nature of any party with respect thereto, and (iii)
take control of any proceeds of the Eligible Collateral.

2

 

     Section 5. Delivery.

     (a) The Pledgor shall deliver to the Pledgee upon execution of this Pledge Agreement (i)
either (A) certificates for the Pledged Shares, each certificate duly signed in blank by the
Pledgor or accompanied by a stock transfer power duly signed in blank by the Pledgor and each such
certificate accompanied by all required documentary or stock transfer tax stamps or (B) if the
Trustee does not yet have possession of the Pledged Shares, an assignment by the Pledgor of all the
Pledgor’s rights to and interest in the Pledged Shares and (ii) an irrevocable proxy, in form and
substance satisfactory to the Pledgee, signed by the Pledgor with respect to the Pledged Shares.

     (b) Subject to the provisions of Section 6 of this Pledge Agreement, the Pledgor shall (i) be
entitled to exercise any and all voting and other rights pertaining to the Collateral or any part
thereof for any purpose not inconsistent with the terms of this Pledge Agreement, and (ii) be
entitled to receive any and all cash dividends or other distributions paid in respect of the
Collateral.

     Section 6. Events of Default.

     (a) If a Default or Event Default shall be existing, in addition to the rights it may have
under the Loan Agreement, the Promissory Note, and this Pledge Agreement, or by virtue of any other
instrument, (i) the Pledgee may exercise, with respect to the Eligible Collateral, from time to
time, any rights and remedies available to it under the Uniform Commercial Code as in effect from
time to time in the State of Indiana or otherwise available to it and (ii) the Pledgee shall have
the right, for and in the name, place and stead of the Pledgor, to execute endorsement,
assignments, stock powers and other instruments of conveyance or transfer with respect to all or
any of the Eligible Collateral. Written notification of intended disposition of any of the
Eligible Collateral shall be given by the Pledgee to the Pledgor at least three (3) business days
before such disposition. Subject to Section 13 below, any proceeds of any disposition of Eligible
Collateral may be applied by the Pledgee toward the payment of such of the Liabilities as are in
Default. No action of the Pledgee permitted hereunder shall impair or affect its rights in and to
the Eligible Collateral. All rights and remedies of the Pledgee expressed hereunder are in
addition to all other rights and remedies possessed by it, including, without limitation, those
contained in the documents referred to in the definition of Liabilities in Section 1 hereof.

     (b) In any sale of any of the Eligible Collateral after a Default or an Event of Default shall
have occurred, the Pledgee is hereby authorized to comply with any limitation or restriction in
connection with such sale as it may be advised by counsel if necessary in order to avoid violation
of applicable law (including, without limitation, compliance with such procedures as may restrict
the number of prospective bidders and purchasers or further restrict such prospective bidders or
purchasers to persons who will represent and agree that they are purchasing for their own account
for investment and not with a view to the distribution or resale of such Eligible Collateral), or
in order to obtain such required approval of the sale or of the purchase by any governmental
regulatory authority or official, and the Pledgor further agrees that such compliance shall not
result in such sale’s being considered or deemed not to have been made in a commercially reasonable
manner, nor shall the Pledgee be liable or accountable to the Pledgor

3

 

for any discount allowed by reason of the fact that such Eligible Collateral is sold in compliance
with any such limitation or restriction.

     Section 7. Payment in Full. Upon the payment in full of all outstanding Liabilities, this
Pledge Agreement shall terminate and the Pledgee shall forthwith assign, transfer and deliver to
the Pledgor, against receipt and without recourse to the Pledgee, all Collateral then held by the
Pledgee pursuant to the Pledge Agreement.

     Section 8. No Waiver. No failure or delay on the part of the Pledgee in exercising any right
or remedy hereunder or under any other document which confers or grants any rights to the Pledgee
in respect of the Liabilities shall operate as a waiver thereof nor shall any single or partial
exercise of any such rights or remedy preclude any other or further exercise thereof or the
exercise of any other right or remedy of the Pledgee.

     Section 9. Binding Effect; No Assignment or Delegation. This Pledge Agreement shall be
binding upon and inure to the benefit of the Pledgor, the Pledgee and their respective successors
and assigns, except that the Pledgor may not assign or transfer its rights hereunder without the
prior written consent of the Pledgee (which consent shall not unreasonably be withheld). Each duty
or obligation of the Pledgor to the Pledgee pursuant to the provisions of this Pledge Agreement
shall be performed in favor of any person or entity designated by the Pledgee, and any duty or
obligation of the Pledgee to the Pledgor may be performed by any other person or entity designated
by the Pledgee.

     Section 10. Governing Law. This Pledge Agreement shall be governed by and construed in
accordance with the laws of the State of Indiana applicable to agreements to be performed wholly
within the State of Tennessee.

     Section 11. Notices. All notices, requests, instructions or documents hereunder shall be in
writing and delivered personally or sent by United States mail, registered or certified, return
receipt requested, with proper postage prepaid as follows:

	 	 	 	 	 
	 

	 	(a)
	 	If to the Pledgee:
	 

	 	 	 	[Company]

106 Washington Avenue, N.W. 

Athens, Tennessee 37303

Attn: Jeffrey L. Cunningham
	 
	 	 	 	 
	 

	 	(b)
	 	If to the Pledgor:
	 

	 	 	 	Athens Federal Community Bank Employee Stock Ownership Plan Trust

c/o [Trustee

Trustee Address

Attn: ]

or at such other address as either of the parties may designate by written notice to the other
party. If delivered personally, the date on which a notice, request, instruction or document is
delivered shall be the date on which such delivery is made, and, if delivered by mail, the date on
which such notice, request, instruction, or document is deposited in the mail shall be the date of

4

 

delivery. Each notice, request, instruction or document shall bear the date on which it is
delivered.

     Section 12. Interpretation. Wherever possible each provision of this Pledge Agreement shall
be interpreted in such manner as to be effective and valid under applicable law, but if any
provision herein shall be prohibited by or invalid under such law, such provision shall be
ineffective to the extent of such prohibition or invalidity, without invalidating the remainder of
such provision or the remaining provisions hereof.

     Section 13. Construction. All provisions hereof shall be construed so as to maintain (a) the
ESOP as a tax-qualified, leveraged employee stock ownership plan under Section 401(a) and
4975(e)(7) of the Internal Revenue Code of 1986, as amended (the “Code”), (b) the ESOP Trust as
exempt from taxation under Section 501(a) of the Code and (c) the loan as an exempt loan under
Section 54.4975-7(b) of the Treasury Regulations and as described in Department of Labor Regulation
Section 2550.408b-3.

[SIGNATURE PAGE TO FOLLOW]

5

 

     IN WITNESS WHEREOF, this Pledge Agreement has been duly executed by the parties hereto as of
the day and year first above written.

	 	 	 	 	 
	 

	 	ATHENS FEDERAL COMMUNITY BANK	 	 
	 

	 	EMPLOYEE STOCK OWNERSHIP PLAN TRUST	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	 

	 	 

Authorized Trust Officer for [Trustee]
	 	 
	 
	 	 	 	 
	 

	 	[COMPANY]	 	 
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 

Jeffrey L. Cunningham

	 	 
	 

	 	President
and Chief Executive Officer
	 	 

6

 

PROMISSORY NOTE

     FOR VALUE RECEIVED, the undersigned, ATHENS FEDERAL COMMUNITY BANK EMPLOYEE STOCK OWNERSHIP
PLAN TRUST (the “Borrower”), hereby promises to pay to the order of [COMPANY] (the “Lender”) up to
[amount] ($[#]) payable in accordance with the Loan Agreement made and entered into between the
Borrower and the Lender of even date herewith (“Loan Agreement”) pursuant to which this Promissory
Note is issued.

     The Principal Amount of this Promissory Note shall be payable in accordance with the schedule
attached hereto (“Schedule I”).

     This Promissory Note shall bear interest at the rate per annum set forth or established under
the Loan Agreement, such interest to be payable in accordance with Schedule I.

     Anything herein to the contrary notwithstanding, the obligation of the Borrower to make
payments of interest shall be subject to the limitation that payments of interest shall not be
required to be made to the Lender to the extent that the Lender’s receipt thereof would not be
permissible under the law or laws applicable to the Lender limiting rates on interest which may be
charged or collected by the Lender. Any such payments on interest which are not made as a result
of the limitation referred to in the preceding sentence shall be made by the Borrower to the Lender
on the earliest interest payment date or dates on which the receipt thereof would be permissible
under the laws applicable to the Lender limiting rates of interest which may be charged or
collected by the Lender. Such deferred interest shall not bear interest.

     Payments of both principal and interest on this Promissory Note are to be made at the
principal office of the Lender or such other place as the holder hereof shall designate to the
Borrower in writing, in lawful money of the United States of America in immediately available
funds.

     Failure to make any payments of principal on this Promissory Note when due, or failure to make
any payment of interest on this Promissory Note not later than five (5) Business Days after the
date when due, shall constitute a default hereunder, whereupon the principal amount of accrued
interest on this Promissory Note shall immediately become due and payable in accordance with the
terms of the Loan Agreement.

     This Promissory Note is secured by a Pledge Agreement between the Borrower and the Lender of
even date herewith and is entitled to the benefits thereof.

	 	 	 	 	 
	 

	 	ATHENS FEDERAL COMMUNITY BANK	 	 
	 

	 	EMPLOYEE STOCK OWNERSHIP PLAN TRUST	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	 

	 	 

Authorized Trust Officer for [Trustee]

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