Document:

Exhibit 10.6

 

FORM OF INDEMNIFICATION AGREEMENT

 

Arch Coal, Inc. (Delaware corporation)

 

This Indemnification Agreement (this “Agreement”), made and entered into as of the      day of        , 20     , by and between Arch Coal, Inc. a Delaware corporation (the “Company”) and               (“Indemnitee”).

 

W I T N E S S E T H:

 

WHEREAS, highly competent persons have become more reluctant to serve publicly-held corporations as directors or officers or in other capacities unless they are provided with adequate protection through insurance or adequate indemnification against risks of claims and actions against them arising out of their service to and activities on behalf of the corporation.

 

WHEREAS, the Board of Directors of the Company (the “Board”) has determined that, in order to attract and retain qualified individuals, the Company will attempt to maintain on an ongoing basis, at its sole expense, liability insurance to protect persons serving the Company and its subsidiaries from certain liabilities.  Although the furnishing of such insurance has been a customary and widespread practice among United States-based corporations and other business enterprises, the Company believes that, given current market conditions and trends, such insurance may be available to it in the future only at higher premiums and with more exclusions.  At the same time, directors, officers, and other persons in service to corporations or business enterprises are being increasingly subjected to expensive and time-consuming litigation relating to, among other things, matters that traditionally would have been brought only against the Company or business enterprise itself.

 

WHEREAS, the By-Laws of the Company provide that the Company shall indemnify and advance expenses to all directors and officers of the Company in the manner set forth therein and to the fullest extent permitted by applicable law, and the Company’s Certificate of Incorporation provides for limitation of liability for directors.  In addition, Indemnitee may be entitled to indemnification pursuant to the General Corporation Law of the State of Delaware (“DGCL”) .  The  By-Laws and the DGCL expressly provide that the indemnification provisions set forth therein are not exclusive, and thereby contemplate that contracts may be entered into between the Company and members of the board of directors, officers and other persons with respect to indemnification.

 

WHEREAS, the uncertainties relating to such insurance and to indemnification have increased the difficulty of attracting and retaining such persons.

 

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WHEREAS, the Board has determined that the increased difficulty in attracting and retaining such persons is detrimental to the best interests of the Company’s stockholders and that the Company should act to assure such persons that there will be increased certainty of such protection in the future.

 

WHEREAS, it is reasonable, prudent and necessary for the Company contractually to obligate itself to indemnify, and to advance expenses on behalf of, such persons to the fullest extent permitted by applicable law so that they will serve or continue to serve the Company free from undue concern that they will not be so indemnified.

 

WHEREAS, this Agreement is a supplement to and in furtherance of the Certificate of Incorporation and By-Laws of the Company and any resolutions adopted pursuant thereto and shall not be deemed a substitute therefor, nor to diminish or abrogate any rights of Indemnitee thereunder.

 

WHEREAS, Indemnitee does not regard the protection available under the Company’s Certificate of Incorporation and By-Laws and insurance as adequate in the present circumstances, and may not be willing to serve as an officer or director of the Company without adequate protection, and the Company desires Indemnitee to serve in such capacity.  Indemnitee is willing to serve, continue to serve and to take on additional service for or on behalf of the Company on the condition that he be so indemnified.

 

NOW, THEREFORE, in consideration of the premises and the covenants contained herein, the Company and Indemnitee do hereby covenant and agree as follows:

 

ARTICLE 1
 CERTAIN DEFINITIONS

 

(a) As used in this Agreement:

 

“Change of Control” means: (i) there shall be consummated (A) any consolidation, merger, or share exchange of the Company in which the Company is not the continuing or surviving corporation or pursuant to which shares of the Company’s common stock would be converted into cash, securities or other property, other than a merger of the Company in which the holders of the Company’s common stock immediately prior to the merger have substantially the same proportionate ownership of common stock of the surviving corporation immediately after the merger, or (B) any sale, lease, exchange or other transfer (in one transaction or a series of related transactions) of all or substantially all of the assets of the Company, or (ii) the stockholders of the Company shall approve any plan or proposal for the liquidation or dissolution of the Company, or (iii) at any time during a period of two (2) consecutive years, the Continuing Directors shall cease for any reason to constitute at least a majority of the members of the Board.

 

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“Continuing Director” means (i) each director who was in office at the beginning of any consecutive two (2) year period or (ii) any new director whose election or nomination for election by the Company’s stockholders was approved by a vote of at least two-thirds of the Continuing Directors then in office.

 

“Corporate Status” means the status of a person who is or was a director, officer, trustee, general partner, managing member, fiduciary, board of directors’ committee member, employee or agent of the Company or of any other Enterprise.

 

“Disinterested Director” means a director of the Company who is not and was not a party to the Proceeding in respect of which indemnification is sought by Indemnitee.

 

“Enterprise” means the Company and any other corporation, limited liability company, partnership, joint venture, trust, employee benefit plan or other enterprise of which Indemnitee is or was serving at the request of the Company as a director, officer, trustee, general partner, managing member, fiduciary, board of directors’ committee member, employee or agent.

 

“Exchange Act” means the Securities Exchange Act of 1934, as amended.

 

“Expenses” means all direct and indirect costs (including attorneys’ fees, retainers, court costs, transcripts, fees of experts, witness fees, travel expenses, duplicating costs, printing and binding costs, telephone charges, postage, delivery service fees, and all other disbursements or expenses) reasonably incurred in connection with (i) prosecuting, defending, preparing to prosecute or defend, investigating, being or preparing to be a witness in, or otherwise participating in, a Proceeding or (ii) establishing or enforcing a right to indemnification under this Agreement, the Company’s By-Laws, applicable law or otherwise.  Expenses also shall include Expenses incurred in connection with any appeal resulting from any Proceeding, including the premium, security for, and other costs relating to any cost bond, supersedeas bond, or other appeal bond or its equivalent.  For the avoidance of doubt, Expenses, however, shall not include any Liabilities.

 

“Independent Counsel” means a law firm, or a member of a law firm, that is experienced in matters of corporate law and neither currently is, nor in the five years previous to its selection or appointment has been, retained to represent (i) the Company or Indemnitee in any matter material to either such party (other than with respect to matters concerning Indemnitee under this Agreement or of other indemnitees under similar indemnification agreements) or (ii) any other party to the Proceeding giving rise to a claim for indemnification hereunder.  Notwithstanding the foregoing, the term “Independent Counsel” shall not include any person who, under the applicable standards of professional conduct then prevailing, would have a conflict of interest in representing either the Company or Indemnitee in an action to determine Indemnitee’s rights under this Agreement.

 

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“Liabilities” means any losses or liabilities, including any judgments, fines, excise taxes and penalties, penalties and amounts paid in settlement, arising out of or in connection with any Proceeding (including all interest, assessments and other charges paid or payable in connection with or in respect of any such judgments, fines, excise taxes and penalties, penalties or amounts paid in settlement).

 

“Proceeding” means any actual or alleged, threatened, pending or completed action, derivative action, suit, claim, counterclaim, cross claim, arbitration, alternate dispute resolution mechanism, investigation, inquiry, administrative or regulatory hearing or any other actual, threatened or completed proceeding, whether civil (including intentional and unintentional tort claims), criminal, administrative, regulatory or investigative, including any appeal therefrom, and whether instituted by or on behalf of the Company or any other party, or any inquiry or investigation that Indemnitee in good faith believes might lead to the institution of any such action, suit or other proceeding hereinabove listed in which Indemnitee was, is or will be involved as a party, potential party, non-party witness or otherwise by reason of any Corporate Status of Indemnitee, or by reason of any action taken (or failure to act) by him or her or of any action (or failure to act) on his or her part while serving in any Corporate Status.

 

(b)   For the purposes of this Agreement:

 

References to “Company” shall include, in addition to the resulting or surviving corporation, any constituent corporation (including any constituent of a constituent) absorbed in a consolidation or merger which, if its separate existence had continued, would have had power and authority to indemnify its directors, officers, employees or agents, so that if Indemnitee is or was a director, officer, employee, or agent of such constituent corporation or is or was serving at the request of such constituent corporation as a director, officer, employee, or agent of another corporation, partnership, joint venture, trust or other enterprise, then Indemnitee shall stand in the same position under the provisions of this Agreement with respect to the resulting or surviving corporation as Indemnitee would have with respect to such constituent corporation if its separate existence had continued.

 

Reference to “other enterprise” shall include employee benefit plans; references to “fines” shall include any excise tax assessed with respect to any employee benefit plan; references to “serving at the request of the Company” shall include any service as a director, officer, employee or agent of the Company which imposes duties on, or involves services by, such director, officer, employee or agent with respect to an employee benefit plan, its participants or beneficiaries; and a person who acted in good faith and in a manner he reasonably believed to be in the best interests of the participants and beneficiaries of an employee benefit plan shall be deemed to have acted in a manner “not opposed to the best interests of the Company” as referred to in this Agreement.

 

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Reference to “including” shall mean “including, without limitation,” regardless of whether the words “without limitation” actually appear, references to the words “herein,” “hereof” and “hereunder” and other words of similar import shall refer to this Agreement as a whole and not to any particular paragraph, subparagraph, section, subsection or other subdivision.

 

ARTICLE 2
 SERVICES BY INDEMNITEE

 

Section 2.01.  Services By Indemnitee.  Indemnitee hereby agrees to serve or continue to serve, at the will of the Company’s shareholders in the case of service as a director, or at the will of the Company in the case of service as an officer, as a director or officer of the Company, for so long as Indemnitee is duly elected or appointed or until Indemnitee tenders his or her resignation or is removed.

 

ARTICLE 3
 INDEMNIFICATION

 

Section 3.01.  General.  (a) The Company hereby agrees to and shall indemnify Indemnitee and hold Indemnitee harmless from and against any and all Expenses and Liabilities, in either case, actually and reasonably incurred by Indemnitee or on Indemnitee’s behalf by reason of Indemnitee’s Corporate Status, to the fullest extent permitted by applicable law.  The Company’s indemnification obligations set forth in this Section 3.01 shall apply (i) in respect of Indemnitee’s past, present and future service in any Corporate Status and (ii) regardless of whether Indemnitee is serving in any Corporate Status at the time any such Expense or Liability is incurred.

 

For purposes of this Agreement, the meaning of the phrase “to the fullest extent permitted by applicable law” shall include, but not be limited to:

 

(i)    to the fullest extent permitted by any provision of the DGCL, or the corresponding provision of any successor statute, and

 

(ii)   to the fullest extent authorized or permitted by any amendments to or replacements of the DGCL adopted after the date of this Agreement that increase the extent to which a corporation may indemnify its officers and directors.

 

(b) Witness Expenses.  Notwithstanding any other provision of this Agreement, to the extent that Indemnitee is, by reason of his or her Corporate Status, a witness in any Proceeding to which Indemnitee is not a party, he shall be indemnified against all Expenses actually and reasonably incurred by Indemnitee or on his or her behalf in connection therewith.

 

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(c) Expenses as a Party Where Wholly or Partly Successful.  Notwithstanding any other provisions of this Agreement, to the fullest extent permitted by applicable law, to the extent that Indemnitee is a party to (or a participant in) and is successful, on the merits or otherwise, in any Proceeding or in defense of any claim, issue or matter therein, in whole or in part, the Company shall indemnify Indemnitee against all Expenses actually and reasonably incurred by him or her in connection therewith.  If Indemnitee is not wholly successful in such Proceeding, but is successful, on the merits or otherwise, as to one or more but less than all claims, issues or matters in such Proceeding, the Company shall, to the fullest extent permitted by applicable law, indemnify Indemnitee against all Expenses actually and reasonably incurred by Indemnitee or on his or her behalf in connection with each successfully resolved claim, issue or matter.  For purposes of this Section and without limitation, the termination of any claim, issue or matter in such a Proceeding by dismissal, with or without prejudice, shall be deemed to be a successful result as to such claim, issue or matter.

 

Section 3.02. Exclusions.  Notwithstanding any provision of this Agreement and unless Indemnitee ultimately is successful on the merits with respect to any such claim, the Company shall not be obligated under this Agreement to make any indemnity in connection with any claim made against Indemnitee:

 

(a)        for (i) an accounting of short-swing profits made from the purchase and sale (or sale and purchase) by Indemnitee of securities of the Company within the meaning of Section 16(b) of the Exchange Act or similar provisions of state statutory law or common law or (ii) any reimbursement of the Company by Indemnitee of any bonus or other incentive-based or equity-based compensation or of any profits realized by Indemnitee from the sale of securities of the Company, in each case as a violation of the Exchange Act (including any such reimbursements that arise from an accounting restatement of the Company pursuant to Section 304 of the Sarbanes-Oxley Act of 2002 (the “Sarbanes-Oxley Act”), or the payment to the Company of profits arising from the purchase and sale by Indemnitee of securities in violation of Section 306 of the Sarbanes-Oxley Act); or

 

(b)        except as otherwise provided in Sections 6.01(e), prior to a Change of Control, in connection with any Proceeding (or any part of any Proceeding) initiated by Indemnitee (other than any cross claim or counterclaim asserted by the Indemnitee), including any Proceeding (or any part of any Proceeding) initiated by Indemnitee against the Company or its directors, officers, employees or other indemnitees, unless (i) the Board authorized the Proceeding (or any part of any Proceeding) prior to its initiation or (ii) the Company provides the indemnification, in its sole discretion, pursuant to the powers vested in the Company under applicable law.

 

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ARTICLE 4
 ADVANCEMENT OF EXPENSES; DEFENSE OF CLAIMS

 

Section 4.01.  Advances.  Notwithstanding any provision of this Agreement to the contrary, the Company shall advance any Expenses actually and reasonably incurred by Indemnitee in connection with any Proceeding within thirty (30) days after the receipt by the Company of each statement requesting such advance from time to time, whether prior to or after final disposition of any Proceeding.  Advances shall be unsecured and interest free.  Advances shall be made without regard to Indemnitee’s ability to repay such amounts and without regard to Indemnitee’s ultimate entitlement to indemnification under the other provisions of this Agreement.  Advances shall include any and all reasonable Expenses incurred pursuing an action to enforce this right of advancement, including Expenses incurred preparing and forwarding statements to the Company to support the advances claimed.

 

Section 4.02.  Repayment of Advances or Other Expenses.  Indemnitee agrees that Indemnitee shall reimburse the Company for all Expenses advanced by the Company pursuant to Section 4.01, in the event and only to the extent that it shall be determined by final non-appealable judgment or other final non-appealable adjudication under the provisions of any applicable law (as to which all rights of appeal therefrom have been exhausted or lapsed) that Indemnitee is not entitled to be indemnified by the Company for such Expenses.

 

Section 4.03.  Defense of Claims.  The Company will be entitled to participate in the Proceeding at its own expense. The Company shall be entitled to assume the defense of any Proceeding with counsel consented to by Indemnitee (such consent not to be unreasonably delayed or withheld) upon the delivery by the Company to Indemnitee of written notice of the Company’s election to do so.  After delivery of such notice, consent to such counsel by Indemnitee and the retention of such counsel by the Company, the Company will not be liable to Indemnitee under this Agreement for any fees or expenses of counsel subsequently incurred by Indemnitee with respect to such Proceeding; provided that (i) Indemnitee shall have the right to employ separate counsel in respect of any Proceeding at Indemnitee’s expense and (ii) if (A) the employment of counsel by Indemnitee has been previously authorized in writing by the Company or (B) Indemnitee shall have reasonably concluded upon the advice of counsel that there is a conflict of interest between the Company and Indemnitee in the conduct of the defense of such Proceeding, then in each such case the fees and expenses of Indemnitee’s counsel shall be at the Company’s expense. The Company shall not settle any action, claim or Proceeding (in whole or in part) which would impose any Expense, judgment, fine, penalty or limitation on Indemnitee without Indemnitee’s prior written consent, such consent not to be unreasonably withheld.  Indemnitee shall not settle any action, claim or Proceeding (in whole or in part) without the Company’s prior written consent, such consent not to be unreasonably withheld.

 

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ARTICLE 5
 PROCEDURES FOR NOTIFICATION OF AND DETERMINATION OF ENTITLEMENT TO INDEMNIFICATION

 

Section 5.01.  Notification; Request For Indemnification.  (a) As soon as reasonably practicable after receipt by Indemnitee of written notice that he is a party to or a participant (as a witness or otherwise) in any Proceeding or of any other matter in respect of which Indemnitee intends to seek indemnification or advancement of Expenses hereunder, Indemnitee shall provide to the Company written notice thereof, including the nature of and the facts underlying the Proceeding.  The omission by Indemnitee to so notify the Company will not relieve the Company from any liability which it may have to Indemnitee hereunder or otherwise.

 

(b)        To obtain indemnification under this Agreement, Indemnitee shall deliver to the Company a written request for indemnification, including therewith such information as is reasonably available to Indemnitee and reasonably necessary to determine Indemnitee’s entitlement to indemnification hereunder.  Such request(s) may be delivered from time to time and at such time(s) as Indemnitee deems appropriate in his or her sole discretion.  Indemnitee’s entitlement to indemnification shall be determined according to Section 5.02 of this Agreement and applicable law.

 

Section 5.02.  Determination of Entitlement.  (a) Where there has been a written request by Indemnitee for indemnification pursuant to Section 5.01(b), then as soon as is reasonably practicable (but in any event not later than 60 days) after final disposition of the relevant Proceeding, a determination, if required by applicable law, with respect to Indemnitee’s entitlement thereto shall be made in the specific case: (i) if a Change of Control shall not have occurred, (A) by a majority vote of the Disinterested Directors, even though less than a quorum of the Board, (B) by a committee of Disinterested Directors designated by a majority vote of the Disinterested Directors, even though less than a quorum of the Board, (C) if there are no such Disinterested Directors or, if such Disinterested Directors so direct, by Independent Counsel in a written opinion to the Board, a copy of which shall be delivered to Indemnitee; or (ii) if a Change of Control shall have occurred, by Independent Counsel in a written opinion to the Board, a copy of which shall be delivered to Indemnitee.  If it is so determined that Indemnitee is entitled to indemnification, payment to Indemnitee shall be made within thirty (30) days after such determination.  Indemnitee shall reasonably cooperate with the person, persons or entity making such determination with respect to Indemnitee’s entitlement to indemnification, including providing to such person, persons or entity upon reasonable advance request any documentation or information which is not privileged or otherwise protected from disclosure and which is reasonably available to Indemnitee and reasonably necessary to such determination.  Any costs or expenses (including attorneys’ fees and disbursements) actually and reasonably incurred by Indemnitee in so cooperating with the person, persons or entity making such determination shall be borne by

 

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the Company (irrespective of the determination as to Indemnitee’s entitlement to indemnification).

 

(b)        If entitlement to indemnification is to be determined by Independent Counsel pursuant to  Section 5.02(a)(ii), such Independent Counsel shall be selected by Indemnitee, and Indemnitee shall give written notice to the Company advising it of the identity of the Independent Counsel so selected.  If entitlement to indemnification is to be determined by Independent Counsel pursuant to Section 5.02(a)(i)(C) (or if Indemnitee requests that such selection be made by the Board), such Independent Counsel shall be selected by the Company in which case the Company shall give written notice to Indemnitee advising him or her of the identity of the Independent Counsel so selected.  In either event, Indemnitee or the Company, as the case may be, may, within ten (10) days after such written notice of selection shall have been received, deliver to the Company or to Indemnitee, as the case may be, a written objection to such selection; provided, however, that such objection may be asserted only on the ground that the Independent Counsel so selected does not meet the requirements of “Independent Counsel” as defined in Section 1 of this Agreement, and the objection shall set forth with particularity the factual basis of such assertion.  Absent a proper and timely objection, the person so selected shall act as Independent Counsel.  If such written objection is so made and substantiated, the Independent Counsel so selected may not serve as Independent Counsel unless and until such objection is withdrawn or a court of competent jurisdiction has determined that such objection is without merit.  If, within 20 days after the later of submission by Indemnitee of a written request for indemnification pursuant to Section 5.01(b) hereof and the final disposition of the Proceeding, no Independent Counsel shall have been selected and not objected to, either the Company or Indemnitee may petition a court of competent jurisdiction for resolution of any objection which shall have been made by the Company or Indemnitee to the other’s selection of Independent Counsel and/or for the appointment as Independent Counsel of a person selected by the court or by such other person as the court shall designate, and the person with respect to whom all objections are so resolved or the person so appointed shall act as Independent Counsel under Section 5.02(a) hereof. Upon the due commencement of any judicial proceeding or arbitration pursuant to Section 6.01(a) of this Agreement, the Independent Counsel shall be discharged and relieved of any further responsibility in such capacity (subject to the applicable standards of professional conduct then prevailing).

 

(c)        The Company agrees to pay the reasonable fees and expenses of any Independent Counsel serving under this Agreement.

 

Section 5.03.  Presumptions and Burdens of Proof; Effect of Certain Proceedings.  (a) In making any determination with respect to entitlement to indemnification hereunder, the person or persons or entity making such determination shall, to the fullest extent not prohibited by law, presume that Indemnitee is entitled to indemnification under this Agreement if Indemnitee has submitted a request for indemnification in accordance with Section 5.01(b) of this

 

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Agreement, and the Company shall, to the fullest extent not prohibited by law, have the burden of proof to overcome that presumption in connection with the making by any person, persons or entity of any determination contrary to that presumption.  Neither the failure of any person, persons or entity to have made a determination prior to the commencement of any action pursuant to this Agreement that indemnification is proper in the circumstances because Indemnitee has met the applicable standard of conduct, nor an actual determination by any person, persons or entity that Indemnitee has not met such applicable standard of conduct, shall be a defense to the action or create a presumption that Indemnitee has not met the applicable standard of conduct.

 

(b)        If the person, persons or entity empowered or selected under Section 5.02 of this Agreement to determine whether Indemnitee is entitled to indemnification shall not have made a determination within the sixty (60) day period referred to in Section 5.02(a), the requisite determination of entitlement to indemnification shall, to the fullest extent not prohibited by law, be deemed to have been made and Indemnitee shall be entitled to such indemnification , absent (i) a misstatement by Indemnitee of a material fact, or an omission of a material fact necessary to make Indemnitee’s statement not materially misleading, in connection with the request for indemnification, or (ii) a prohibition of such indemnification under applicable law.

 

(c)        The termination of any Proceeding or of any claim, issue or matter therein, by judgment, order, settlement or conviction, or upon a plea of nolo contendere or its equivalent, shall not (except as otherwise expressly provided in this Agreement) of itself adversely affect the right of Indemnitee to indemnification or create a presumption that Indemnitee did not act in good faith and in a manner which he reasonably believed to be in or not opposed to the best interests of the Company or, with respect to any criminal Proceeding, that Indemnitee had reasonable cause to believe that his or her conduct was unlawful.

 

(d)        For purposes of any determination of good faith, Indemnitee shall be deemed to have acted in good faith if Indemnitee’s action is in good faith reliance on the records or books of account of any Enterprise, including financial statements, or on information supplied to Indemnitee by the officers of such Enterprise in the course of their duties, or on the advice of legal counsel for such Enterprise or on information or records given or reports made to such Enterprise by an independent certified public accountant or by an appraiser or other expert selected by such Enterprise.  The provisions of this Section 5.03(d) shall not be deemed to be exclusive or to limit in any way the other circumstances in which Indemnitee may be deemed or found to have met the applicable standard of conduct set forth in this Agreement.

 

(e)        The knowledge and/or actions, or failure to act, of any other director, trustee, partner, managing member, fiduciary, officer, agent or employee of any Enterprise shall not be imputed to Indemnitee for purposes of determining any right to indemnification under this Agreement.

 

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ARTICLE 6
 REMEDIES OF INDEMNITEE

 

Section 6.01.  Adjudication or Arbitration.  (a) In the event of any dispute between Indemnitee and the Company hereunder as to entitlement to indemnification or advancement of Expenses (including where (i) a determination is made pursuant to Section 5.02 of this Agreement that Indemnitee is not entitled to indemnification under this Agreement, (ii) advancement of Expenses is not timely made pursuant to Section 4.01 of this Agreement, (iii) payment of indemnification pursuant to Section 3.01 of this Agreement is not made within thirty (30) days after a determination has been made that Indemnitee is entitled to indemnification, (iv) no determination as to entitlement to indemnification is timely made pursuant to Section 5.02 of this Agreement and no payment of indemnification is made within thirty (30) days after entitlement is deemed to have been determined pursuant to Section 5.03(b)) or (v) a contribution payment is not made in a timely manner pursuant to Section 8.04 of this Agreement, then Indemnitee shall be entitled to an adjudication by a court of his or her entitlement to such indemnification, contribution or advancement. Alternatively, in such case, Indemnitee, at his or her option, may seek an award in arbitration to be conducted by a single arbitrator pursuant to the Commercial Arbitration Rules of the American Arbitration Association.  The Company shall not oppose Indemnitee’s right to seek any such adjudication or award in arbitration.

 

(b)        In the event that a determination shall have been made pursuant to Section 5.02(a) of this Agreement that Indemnitee is not entitled to indemnification, any judicial proceeding or arbitration commenced pursuant to this Section 6.01 shall be conducted in all respects as a de novo trial, or arbitration, on the merits, and Indemnitee shall not be prejudiced by reason of that adverse determination.  In any judicial proceeding or arbitration commenced pursuant to this Section 6.01 the Company shall have the burden of proving Indemnitee is not entitled to indemnification or advancement of Expenses, as the case may be, and the Company may not refer to or introduce into evidence any determination pursuant to Section 5.02(a) of this Agreement adverse to Indemnitee for any purpose.  If Indemnitee commences a judicial proceeding or arbitration pursuant to this Section 6.01, Indemnitee shall not be required to reimburse the Company for any advances pursuant to Section 4.02 until a final determination is made with respect to Indemnitee’s entitlement to indemnification (as to which all rights of appeal have been exhausted or lapsed).

 

(c)        If a determination shall have been made pursuant to Section 5.02(a) of this Agreement that Indemnitee is entitled to indemnification, the Company shall be bound by such determination in any judicial proceeding or arbitration commenced pursuant to this Section 6.01, absent (i) a misstatement by Indemnitee of a material fact, or an omission of a material fact necessary to make Indemnitee’s statement not materially misleading, in connection with the request for indemnification, or (ii) a prohibition of such indemnification under applicable law.

 

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(d)        The Company shall be precluded from asserting in any judicial proceeding or arbitration commenced pursuant to this Section 6.01 that the procedures and presumptions of this Agreement are not valid, binding and enforceable and shall stipulate in any such court or before any such arbitrator that the Company is bound by all the provisions of this Agreement.

 

(e)           The Company shall indemnify Indemnitee to the fullest extent permitted by law against all Expenses and, if requested by Indemnitee, shall (within thirty (30) days after the Company’s receipt of such written request) advance such Expenses to Indemnitee, which are reasonably incurred by Indemnitee in connection with any judicial proceeding or arbitration brought by Indemnitee for (i) indemnification or advances of Expenses by the Company (or otherwise for the enforcement, interpretation or defense of his or her rights) under this Agreement or any other agreement, including any other indemnification, contribution or advancement agreement, or any provision of the Company’s Certificate of Incorporation or By-laws now or hereafter in effect or (ii) recovery or advances under any directors’ and officers’ liability insurance policy maintained by the Company, regardless of whether Indemnitee ultimately is determined to be entitled to such indemnification, contribution, advancement or insurance recovery, as the case may be.

 

ARTICLE 7
 DIRECTORS’ AND OFFICERS’ LIABILITY INSURANCE

 

Section 7.01.  D&O Liability Insurance. To the extent that the Company maintains a policy or policies of insurance providing liability insurance for directors and officers of the Company in their capacities as such (and for any capacity in which any director or officer of the Company serves any other Enterprise at the request of the Company), in respect of any actual or alleged acts or omissions occurring while serving in such capacity, Indemnitee shall be covered by such policy or policies, in accordance with its or their terms, to the maximum extent of the coverage available for any other director or officer under such policy or policies.

 

Section 7.02 Evidence of Coverage.  Upon request by Indemnitee, the Company shall provide copies of all policies of insurance maintained in accordance with Section 7.01 of this Agreement.  The Company shall promptly notify Indemnitee of any changes in such insurance coverage.

 

ARTICLE 8
 MISCELLANEOUS

 

Section 8.01.  Nonexclusivity of Rights.  The rights of indemnification, contribution and advancement of Expenses as provided by this Agreement shall 

 

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not be deemed exclusive of any other rights to which Indemnitee may at any time be entitled to under applicable law, the Company’s Certificate of Incorporation, the Company’s Bylaws, any agreement, a vote of stockholders or a resolution of directors, or otherwise.  No right or remedy herein conferred is intended to be exclusive of any other right or remedy, and every other right and remedy shall be cumulative and in addition to every other right and remedy given hereunder or now or hereafter existing at law or in equity or otherwise.  The assertion or employment of any right or remedy hereunder, or otherwise, shall not prevent the concurrent assertion or employment of any other right or remedy.

 

Section 8.02.  Insurance and Subrogation.  (a) If, at the time the Company receives notice of a claim hereunder, the Company has director and officer liability insurance in effect, the Company shall give prompt notice of such Proceeding to the insurers in accordance with the procedures set forth in the respective policies.  The Company shall thereafter take all necessary or desirable action to cause such insurers to pay, on behalf of Indemnitee, all amounts payable as a result of such Proceeding in accordance with the terms of such policies.  The failure or refusal of any such insurer to pay any such amount shall not affect or impair the obligations of the Company under this Agreement.

 

(b)        In the event of any payment under this Agreement, the Company shall be subrogated to the extent of such payment to all of the rights of recovery of Indemnitee, who shall execute all papers required and take all action necessary to secure such rights, including execution of such documents as are necessary to enable the Company to bring suit to enforce such rights.

 

(c)        The Company shall not be liable under this Agreement to make any payment of amounts otherwise indemnifiable (or for which advancement is provided) hereunder if and to the extent that Indemnitee has actually received such payment under any insurance policy or other indemnity provision.

 

Section 8.03  The Company’s obligation to indemnify or advance Expenses hereunder to Indemnitee who is or was serving at the request of the Company as a director, officer, trustee, partner, managing member, fiduciary, board of directors’ committee member, employee or agent of any other Enterprise shall be reduced by any amount Indemnitee has actually received as indemnification or advancement of Expenses from such Enterprise.

 

Section 8.04.  Contribution.  To the fullest extent permissible under applicable law, if the indemnification provided for in this Agreement is unavailable to Indemnitee for any reason whatsoever, the Company, in lieu of indemnifying Indemnitee, shall contribute to the amount incurred by Indemnitee, whether for judgments, fines, penalties, excise taxes, amounts paid or to be paid in settlement and/or for Expenses, in connection with any claim relating to an indemnifiable event under this Agreement, in such proportion as is deemed fair and reasonable in light of all of the circumstances of such Proceeding in order to reflect (i) the relative benefits received by the Company and Indemnitee as a 

 

13

 

result of the event(s) and/or transaction(s) giving rise to such Proceeding; and/or (ii) the relative fault of the Company (and its directors, officers, employees and agents) and Indemnitee in connection with such event(s) and/or transaction(s).

 

Section 8.05.  Amendment.  This Agreement may not be modified or amended except by a written instrument executed by or on behalf of each of the parties hereto.  No amendment, alteration or repeal of this Agreement or of any provision hereof shall limit, restrict or reduce any right of Indemnitee under this Agreement in respect of any act or omission, or any event occurring, prior to such amendment, alteration or repeal.  To the extent that a change in applicable law, whether by statute or judicial decision, (i) permits greater indemnification, contribution or advancement of Expenses than would be afforded currently under the Company’s By-Laws and this Agreement, it is the intent of the parties hereto that Indemnitee shall enjoy by this Agreement the greater benefits so afforded by such change or (ii) limits rights with respect to indemnification, contribution or advancement of Expenses, it is the intent of the parties hereto that the rights with respect to indemnification, contribution or advancement of Expenses in effect prior to such change shall remain in full force and effect to the extent permitted by applicable law.

 

Section 8.06.  Waivers.  The observance of any term of this Agreement may be waived (either generally or in a particular instance and either retroactively or prospectively) by the party entitled to enforce such term only by a writing signed by the party against which such waiver is to be asserted. Unless otherwise expressly provided herein, no delay on the part of any party hereto in exercising any right, power or privilege hereunder shall operate as a waiver thereof, nor shall any waiver on the part of any party hereto of any right, power or privilege hereunder operate as a waiver of any other right, power or privilege hereunder nor shall any single or partial exercise of any right, power or privilege hereunder preclude any other or further exercise thereof or the exercise of any other right, power or privilege hereunder.

 

Section 8.07.  Entire Agreement.  This Agreement and the documents referred to herein constitute the entire agreement between the parties hereto with respect to the indemnification that the Indemnitee is entitled to under this Agreement, and any other prior or contemporaneous oral or written understandings or agreements with respect to the matters covered hereby are superseded by this Agreement, provided that this Agreement is a supplement to and in furtherance of the Certificate of Incorporation and By-laws of the Company and applicable law, and shall not be deemed a substitute therefor, nor to diminish or abrogate any rights of Indemnitee thereunder.

 

Section 8.08.  Severability.  If any provision or provisions of this Agreement shall be held to be invalid, illegal or unenforceable for any reason whatsoever:  (a) the validity, legality and enforceability of the remaining provisions of this Agreement (including each portion of any Section of this Agreement containing any such provision held to be invalid, illegal or unenforceable, that is not itself invalid, illegal or 

 

14

 

unenforceable) shall not in any way be affected or impaired thereby and shall remain enforceable to the fullest extent permitted by law; (b) such provision or provisions shall be deemed reformed to the extent necessary to conform to applicable law and to give the maximum effect to the intent of the parties hereto; and (c) to the fullest extent possible, the provisions of this Agreement (including each portion of any Section of this Agreement containing any such provision held to be invalid, illegal or unenforceable, that is not itself invalid, illegal or unenforceable) shall be construed so as to give effect to the intent manifested thereby.

 

Section 8.09.  Notices.  All notices, requests, demands and other communications under this Agreement shall be in writing (which may be by facsimile transmission).  All such notices, requests and other communications shall be deemed received on the date of receipt by the recipient thereof if received prior to 5:00 p.m. in the place of receipt and such day is a business day in the place of receipt.  Otherwise, any such notice, request or communication shall be deemed not to have been received until the next succeeding business day in the place of receipt.  The address for notice to a party is as shown on the signature page of this Agreement, or such other address as any party shall have given by written notice to the other party as provided above.

 

Section 8.10.  Binding Effect.  (a) The Company expressly confirms and agrees that it has entered into this Agreement and assumed the obligations imposed on it hereby in order to induce Indemnitee to serve as a director or officer of the Company, and the Company acknowledges that Indemnitee is relying upon this Agreement in serving as a director or officer of the Company.

 

(b)        This Agreement shall be binding upon and inure to the benefit of and be enforceable by the parties hereto and their respective successors, assigns, including any direct or indirect successor by purchase, merger, consolidation or otherwise to all or substantially all of the business and/or assets of the Company, spouses, heirs, and executors, administrators, personal and legal representatives.  The Company shall require and cause any successor (whether direct or indirect by purchase, merger, consolidation or otherwise) to all or substantially all, or a substantial part of the business or assets of the Company, by written agreement in form and substance satisfactory to Indemnitee, expressly to assume and agree to perform this Agreement in the manner and to the same extent that the Company would be required to perform if no such succession had taken place.

 

(c)        The indemnification, contribution and advancement of Expenses provided by, or granted pursuant to this Agreement shall continue as to a person who has ceased to be a director or officer and shall inure to the benefit of the heirs, executors, administrators, legatees and assigns of such a person.

 

Section 8.11.  Governing Law.  This Agreement and the legal relations among the parties shall be governed by, and construed and enforced in accordance 

 

15

 

with, the laws of the State of Delaware, without regard to its conflict of laws rules.

 

Section 8.12.  Consent To Jurisdiction.  Except with respect to any arbitration commenced by Indemnitee pursuant to Section 6.01(a) of this Agreement, the Company and Indemnitee hereby irrevocably and unconditionally (i) agree that any action or proceeding arising out of or in connection with this Agreement shall be brought only in the Chancery Court of the State of Delaware (the “Delaware Court”), and not in any other state or federal court in the United States of America or any court in any other country, (ii) consent to submit to the exclusive jurisdiction of the Delaware Court for purposes of any action or proceeding arising out of or in connection with this Agreement, (iii) waive any objection to the laying of venue of any such action or proceeding in the Delaware Court, and (iv) waive, and agree not to plead or to make, any claim that any such action or proceeding brought in the Delaware Court has been brought in an improper or inconvenient forum.

 

Section 8.13.  Headings.  The Article and Section headings in this Agreement are for convenience of reference only, and shall not be deemed to alter or affect the meaning or interpretation of any provisions hereof.

 

Section 8.14.  Counterparts.  This Agreement may be executed in one or more counterparts, each of which shall for all purposes be deemed to be an original but all of which together shall constitute one and the same Agreement.  Only one such counterpart signed by the party against whom enforceability is sought needs to be produced to evidence the existence of this Agreement.

 

Section 8.15.  Use of Certain Terms.  As used in this Agreement, the words “herein,” “hereof,” and “hereunder” and other words of similar import refer to this Agreement as a whole and not to any particular paragraph, subparagraph, section, subsection, or other subdivision. Whenever the context may require, any pronoun used in this Agreement shall include the corresponding masculine, feminine or neuter forms, and the singular form of nouns, pronouns and verbs shall include the plural and vice versa.

 

16

 

IN WITNESS WHEREOF, this Agreement has been duly executed and delivered to be effective as of the date first above written.

 

	
 
    	
ARCH   COAL, INC.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    
	
 
    	
 
    	
 
    
	
 
    	
Address:
    
	
 
    	
Facsimile:
    
	
 
    	
Attention:
    
	
 
    	
 
    
	
 
    	
With   a copy to:
    
	
 
    	
 
    
	
 
    	
Address:
    
	
 
    	
Facsimile:
    
	
 
    	
Attention:
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
INDEMNITEE
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Address:
    
	
 
    	
Facsimile:
    
	
 
    	
 
    
	
 
    	
With   a copy to:
    
	
 
    	
 
    
	
 
    	
Address:
    
	
 
    	
Facsimile:
    
	
 
    	
Attention:
    

 

17Exhibit 10.1

 

VOTING AND SUPPORT AGREEMENT

 

VOTING AND SUPPORT AGREEMENT dated as of October 5, 2016 (this
“Agreement”) by and between Salem Five Bancorp, a Massachusetts mutual holding company (“Parent”),
and the individual or entity whose name appears in the signature block to this Agreement (the “Stockholder”).

 

W I T N E S S E T H:

 

WHEREAS,
concurrently with the execution of this Agreement, Georgetown Bancorp, Inc., a Maryland corporation (the
“Company”), Parent, and [Merger Sub], a Maryland corporation and wholly owned subsidiary of Parent (“Merger
Sub”), are entering into an Agreement and Plan of Merger, dated as of the date hereof (as amended, supplemented, restated
or otherwise modified from time to time, the “Merger Agreement”), pursuant to which, among other things, each
outstanding share of common stock, par value $0.01 per share, of the Company (the “Company Stock”) will be converted
into the right to receive the Merger Consideration, as specified in the Merger Agreement;

 

WHEREAS, as of the date hereof, the Stockholder is the Beneficial
Owner (as defined herein) of such Stockholder’s Existing Shares (as defined herein);

 

WHEREAS, as a condition and inducement to Parent entering into
the Merger Agreement, Parent has required that the Stockholder agree, and the Stockholder has agreed, to enter into this Agreement
and abide by the covenants and obligations with respect to such Stockholder’s Covered Shares (as defined herein); and

 

WHEREAS, the Board of Directors of the Company has adopted the
Merger Agreement and approved the transactions contemplated thereby, understanding that the execution and delivery of this Agreement
by the Stockholder, together with the voting and support agreements concurrently entered into by certain other stockholders of
the Company (collectively, the “Covered Stockholders”), is a material inducement and condition to Parent’s
willingness to enter into the Merger Agreement.

 

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

 

Article
I

General

 

Section
1.1           Defined Terms. Capitalized terms used but not
otherwise defined herein shall have the meanings ascribed thereto in the Merger Agreement. The following capitalized terms, as
used in this Agreement, shall have the following meanings:

 

“Affiliate” of a specified
Person is any Person that directly or indirectly controls, is controlled by, or is under common control with, such specified Person;
provided that, for

 

    	 	 	 

     

    

 

purposes of this Agreement, in no event shall (a) the Company
or any of its controlled Affiliates or (b) any of the portfolio companies in which the Stockholder or its Affiliates have an investment
be deemed to be an Affiliate of such Stockholder so long as such portfolio company has not received confidential information regarding
the Company, any of its Subsidiaries or the transactions contemplated by the Merger Agreement and is not acting at the direction
of or in active coordination with such Stockholder with respect to the Company, any of its Subsidiaries or the transactions contemplated
by the Merger Agreement. For purposes of this Agreement, “control” when used with respect to any Person means
the power to direct the management and policies of such Person, directly or indirectly, whether through the ownership of voting
securities, by contract or otherwise, and the terms “controlling” and “controlled” have correlative meanings.

 

“Beneficial Ownership”
has the meaning ascribed to such term in Rule 13d-3 under the Exchange Act. The terms “Beneficially Own”, “Beneficially
Owned” and “Beneficial Owner” shall each have a correlative meaning.

 

“Covered Shares” means
the Stockholder’s Existing Shares together with any shares of Company Stock or other capital stock of the Company issuable
upon the conversion, exercise or exchange of securities that are as of the relevant date securities convertible into or exercisable
or exchangeable for shares of Company Stock or other capital stock of the Company that the Stockholder has or acquires Beneficial
Ownership of on or after the date hereof and over which the Stockholder has sole voting power.

 

“Encumbrance” means any
security interest, pledge, mortgage, lien (statutory or other), charge, option to purchase, lease or other right to acquire any
interest or any claim, restriction, covenant, title defect, hypothecation, assignment, deposit arrangement or other encumbrance
of any kind or any preference, priority or other security agreement or preferential arrangement of any kind or nature whatsoever
(including any conditional sale or other title retention agreement). The term “Encumber” shall have a correlative meaning.

 

“Existing Shares” means
the shares of Company Stock set forth opposite the Stockholder’s name on Schedule 1 hereto.

 

“Expiration Date” means
the date on which the Merger Agreement is terminated in accordance with its terms.

 

“Person” means an individual,
corporation (including not-for-profit), general or limited partnership, limited liability company, joint venture, estate, trust,
association, organization, Governmental Entity or other entity of any kind or nature.

 

“Representatives” means,
with respect to a Person, such Person’s Affiliates and its and their respective officers, directors, employees, agents and
advisors.

 

“Transfer” means, directly
or indirectly, to sell, transfer, assign, pledge, Encumber, hypothecate or similarly dispose of (including by merger (including
by conversion into securities or other consideration), by tendering into any tender or exchange offer, by testamentary disposition,
by operation of law or otherwise), either voluntarily or involuntarily, or to enter into

 

    	 	- 2 -	 

     

    

 

any contract, option or other arrangement or understanding with
respect to the voting of or sale, transfer, assignment, pledge, Encumbrance, hypothecation or similar disposition of (including
by merger, by tendering into any tender or exchange offer, by testamentary disposition, by operation of law or otherwise).

 

Article
II

Voting

 

Section
2.1           Agreement To Vote.

 

(a)          The
Stockholder hereby irrevocably and unconditionally agrees that during the term of this Agreement, at the Company Meeting and at
any other meeting of the stockholders of the Company, however called, including any adjournment or postponement thereof, such Stockholder
shall, in each case to the fullest extent that the Covered Shares of such Stockholder are entitled to vote thereon or consent thereto:

 

(i)          appear
at each such meeting or otherwise cause the Covered Shares to be counted as present thereat for purposes of calculating a quorum;
and

 

(ii)        vote
(or cause to be voted), in person or by proxy, all of such Covered Shares (A) in favor of (1) the adoption and approval of the
Merger Agreement and approval of the Merger and other transactions contemplated by the Merger Agreement and (2) any proposal to
adjourn or postpone any meeting of the stockholders of the Company at which any of the foregoing matters are submitted for consideration
and vote of the stockholders of the Company to a later date if there are not a quorum or sufficient votes for approval of such
matters on the date on which the meeting is held to vote upon any of the foregoing matters; (B) against any action or agreement
that would result in a breach of any covenant, representation or warranty or any other obligation or agreement of the Company contained
in the Merger Agreement, or of such Stockholder contained in this Agreement, if requested by Parent in writing at least two (2)
Business Days prior to the applicable vote; and (C) against any Acquisition Proposal or Superior Proposal and against any other
action, agreement or transaction involving the Company or any of its Subsidiaries that would reasonably be expected to materially
impede, interfere with, delay, postpone, adversely affect or prevent the consummation of the Merger or the other transactions contemplated
by the Merger Agreement or this Agreement or the performance by the Company of its obligations under the Merger Agreement or by
such Stockholder of its obligations under this Agreement, including (I) any extraordinary corporate transaction, such as a merger,
consolidation, share exchange or other business combination involving the Company or GB (other than the Merger and the Bank Merger);
(II) a sale, lease or transfer of a material amount of assets of the Company or GB or any reorganization, recapitalization, liquidation,
dissolution or other similar transaction involving the Company or GB;

 

    	 	- 3 -	 

     

    

 

or (III) any change in the present
capitalization of the Company or any amendment or other change to the Company’s certificate of incorporation or bylaws.

 

(b)          The
Stockholder hereby (i) waives, and agrees not to exercise or assert, any appraisal or similar rights in connection with the Merger
and (ii) agrees (A) not to commence or participate in and (B) to take all actions necessary to opt out of any class in any class
action with respect to, any claim, derivative or otherwise, against Parent, Merger Sub, the Company or any of their respective
Affiliates relating to the negotiation, execution or delivery of this Agreement or the Merger Agreement or the consummation of
the transactions contemplated hereby or thereby, including any claim (1) challenging the validity of, or seeking to enjoin the
operation of, any provision of this Agreement or (2) alleging a breach of any fiduciary duty of the Board of Directors of the Company
in connection with this Agreement, the Merger Agreement or the transactions contemplated hereby or thereby.

 

(c)          The
obligations of the Stockholder specified in this Section 2.1 shall apply whether or not the Merger or any action described above
is recommended by the Board of Directors of the Company (or any committee thereof).

 

Section
2.2           No Inconsistent Agreements. The Stockholder
hereby covenants and agrees that, except for this Agreement, such Stockholder (a) has not entered into, and shall not enter into
at any time while the Merger Agreement remains in effect, any voting agreement or voting trust with respect to the Covered Shares
of such Stockholder, (b) has not granted, and shall not grant at any time while the Merger Agreement remains in effect, a proxy,
consent or power of attorney with respect to the Covered Shares of such Stockholder (except pursuant to Section 2.3 or pursuant
to any proxy card, in form and substance reasonably satisfactory to Parent, solicited by the Board of Directors of the Company
and delivered to the Company directing that the Covered Shares of such Stockholder be voted in accordance with Section 2.1) and
(c) has not taken and shall not knowingly take any action that would make any representation or warranty of such Stockholder contained
herein untrue or incorrect in any material respects or have the effect of preventing or disabling such Stockholder from performing
any of its obligations under this Agreement. The Stockholder hereby represents that all proxies, powers of attorney, instructions
or other requests given by such Stockholder prior to the execution of this Agreement in respect of the voting of such Stockholder’s
Covered Shares, if any, are not irrevocable and such Stockholder hereby revokes (and shall cause to be revoked) any and all such
previous proxies, powers of attorney, instructions or other requests with respect to such Stockholder’s Covered Shares.

 

Section
2.3           Proxy. The Stockholder hereby irrevocably appoints
as its proxy and attorney-in-fact, Parent and any Person designated in writing by Parent, each of them individually, with full
power of substitution and resubstitution, to vote the Covered Shares Beneficially Owned by such Stockholder solely to the extent
and in accordance with Section 2.1 during the term of this Agreement at the Company Meeting and at any annual or special meetings
of stockholders of the Company (or adjournments or postponements thereof) prior to

 

    	 	- 4 -	 

     

    

 

the termination of this Agreement in accordance
with Section 5.1 at which any of the matters described in Section 2.1 is to be considered; provided, however, that
such Stockholder’s grant of the proxy contemplated by this Section 2.3 shall be effective only if such Stockholder fails
to be counted as present, to consent or to vote such Stockholder’s Covered Shares, as applicable, in accordance with this
Agreement or has not delivered to the Secretary of the Company at least two (2) Business Days prior to the meeting at which any
of the matters described in Section 2.1 is to be considered a duly executed proxy card, in form and substance reasonably satisfactory
to Parent, solicited by the Board of Directors of the Company and delivered to the Company directing that the Covered Shares of
such Stockholder be voted in accordance with Section 2.1. This proxy, if it becomes effective, is coupled with an interest, is
given as an additional inducement of Parent to enter into the Merger Agreement and shall be irrevocable prior to the termination
of this Agreement in accordance with Section 5.1, at which time any such proxy shall terminate. The Stockholder (solely in its
capacity as such) shall take such further actions or execute such other instruments as may be necessary to effectuate the intent
of this proxy. Parent may terminate this proxy with respect to any such Stockholder at any time at its sole election by written
notice provided to such Stockholder.

 

Article
III

Representations And Warranties

 

The Stockholder hereby represents and warrants
to Parent as follows:

 

Section
3.1           Authorization; Validity of Agreement. If such
Stockholder is an entity, such Stockholder is duly organized, validly existing and in good standing under the Laws of the jurisdiction
of its organization. Such Stockholder has the requisite capacity and authority to execute and deliver this Agreement, to perform
its obligations hereunder and to consummate the transactions contemplated hereby. This Agreement has been duly authorized (to the
extent authorization is required), executed and delivered by such Stockholder and, assuming this Agreement constitutes a valid
and binding obligation of Parent, constitutes a legal, valid and binding obligation of such Stockholder, enforceable against such
Stockholder in accordance with its terms, subject to the Enforceability Exceptions. If such Stockholder is an individual and is
married and such Stockholder’s Covered Shares constitute community property under applicable Law, this Agreement has been
duly authorized (to the extent authorization is required), executed and delivered by, and constitutes the valid and binding agreement
of, such Stockholder’s spouse, subject to the Enforceability Exceptions.

 

Section
3.2           Ownership. (i)
Such Stockholder’s Existing Shares are, and all of the Covered Shares Beneficially Owned by such Stockholder during the term
of this Agreement will be, Beneficially Owned by such Stockholder and (ii) such Stockholder has good and valid title to such Stockholder’s
Existing Shares, free and clear of any Encumbrances other than pursuant to this Agreement, the Merger Agreement, or under applicable
federal or state securities laws. With respect to any outstanding Covered Shares of which the Stockholder is not the record owner,
such lack of record ownership will not prevent or impair such Stockholder from complying with any obligation, agreement or covenant
set forth herein. As of the date hereof, such Stockholder’s Existing Shares constitute all of the shares of Company Stock
(or any other 

 

    	 	- 5 -	 

     

    

 

equity
interests of the Company) Beneficially Owned or owned of record by such Stockholder over which such Stockholder has sole voting
power. Any shares of Company Stock (or any other equity interests of the Company) Beneficially Owned or owned of record by the
Stockholder and over which such Stockholder does not have sole voting power are covered by another voting and support agreement
entered into on the date hereof by a Covered Stockholder. Such Stockholder has and will have at all times during the term
of this Agreement sole voting power (including the right to control such vote as contemplated herein), sole power of disposition,
sole power to issue instructions with respect to the matters set forth in Article II, and sole power to agree to all of the matters
set forth in this Agreement, in each case with respect to all of such Stockholder’s Existing Shares and with respect to all
of the Covered Shares Beneficially Owned by such Stockholder and over which such Stockholder has sole voting power at all times
during the term of this Agreement.

 

Section
3.3           No Violation. The execution and delivery of
this Agreement by such Stockholder does not, and the performance by such Stockholder of its obligations under this Agreement will
not, (i) result in such Stockholder violating any Law applicable to such Stockholder or by which any of its assets or properties
is bound or, if applicable, any certificate or articles of incorporation, as applicable, or bylaws or other equivalent organizational
documents of such Stockholder, or (ii) violate, conflict with, result in a breach of any provision of or the loss of any benefit
under, constitute a default (or an event which, with notice or lapse of time, or both, would constitute a default) under, result
in the termination of or a right of termination or cancellation under, accelerate the performance required by, or result in the
creation of any Encumbrance upon any of the properties or assets of such Stockholder under, any of the terms, conditions or provisions
of any note, bond, mortgage, indenture, deed of trust, license, lease, agreement or other instrument or obligation to which such
Stockholder is a party, or by which it or any of its properties or assets may be bound that would adversely affect its ability
to perform its obligations under this Agreement.

 

Section
3.4           Consents and Approvals. The execution and delivery
of this Agreement by such Stockholder does not, and the performance by such Stockholder of its obligations under this Agreement
and the consummation by it of the transactions contemplated hereby will not, require such Stockholder to obtain any consent, approval,
authorization or permit of, or to make any filing with or notification to, any Governmental Entity, other than the filings of any
required reports with the SEC.

 

Section
3.5           Absence of Litigation. As of the date hereof,
there is no litigation, action, suit or proceeding pending or, to the knowledge of such Stockholder, threatened against or affecting
such Stockholder and/or any of its Affiliates before or by any Governmental Entity that would reasonably be expected to impair
the ability of such Stockholder to perform its obligations hereunder or to consummate the transactions contemplated hereby on a
timely basis.

 

Section
3.6           Finder’s Fees. No investment banker, broker,
finder or other intermediary is entitled to a fee or commission from Parent, Merger Sub or the Company in respect of this Agreement
or the Merger Agreement based upon any arrangement or agreement made by or on behalf of such Stockholder.

 

    	 	- 6 -	 

     

    

 

Section
3.7           Reliance by Parent. Such Stockholder understands
and acknowledges that Parent is entering into the Merger Agreement in reliance upon the execution and delivery of this Agreement
by such Stockholder and the representations and warranties of such Stockholder contained herein. Such Stockholder understands and
acknowledges that the Merger Agreement governs the terms of the Merger and the other transactions contemplated thereby.

 

Article
IV

Other Covenants

 

Section
4.1           Prohibition On Transfers; Other Actions. Until
the earlier of (a) the stockholder approval of the Merger and (b) termination of this Agreement in accordance with Section 5.1,
the Stockholder agrees that it shall not (i) Transfer any of such Stockholder’s Covered Shares, Beneficial Ownership thereof
or any other interest therein (including any voting power with respect thereto), except for (x) Transfers to a charity, charitable
trust, or other charitable organization under Section 501(c)(3) of the Internal Revenue Code of 1986, as amended, to a lineal descendant
or a spouse of the Stockholder, or to a trust or other entity for the benefit of any of the foregoing individuals, provided that
the transferee agrees in writing to be bound by the terms of this Agreement, and (y) Transfers to satisfy any tax withholding obligations
in connection with the vesting of a Company Equity Award; (ii)enter into any agreement, arrangement or understanding with any Person,
or take any other action, that violates or conflicts with or would reasonably be expected to violate or conflict with, or result
in or give rise to a violation of or conflict with, such Stockholder’s representations, warranties, covenants and obligations
under this Agreement; or (iii) take any action that could reasonably be expected to restrict or otherwise affect such Stockholder’s
legal power, authority and right to comply with and perform its covenants and obligations under this Agreement. Any Transfer in
violation of this provision shall be void ab initio. The Stockholder shall not request that the Company or its transfer
agent register the transfer (book-entry or otherwise) of any Certificate representing any of such Stockholder’s Covered Shares.

 

Section
4.2           Stock Dividends, Etc. In the event of any change
in the Company Stock by reason of any reclassification, recapitalization, reorganization, stock split (including a reverse stock
split) or subdivision or combination, exchange or readjustment of shares, or any stock dividend or stock distribution, merger or
other similar change in capitalization, the terms “Existing Shares” and “Covered Shares” shall be deemed
to refer to and include such shares as well as all such stock dividends and distributions and any securities into which or for
which any or all of such shares may be changed or exchanged or which are received in such transaction.

 

Section
4.3           No Solicitation; Support Of Acquisition Proposals.

 

(a)          Subject
to the provisions of Section 5.2 of this Agreement, prior to the Expiration Date the Stockholder agrees that it shall not, and
shall cause each of its Subsidiaries, Affiliates and Representatives not to, directly or indirectly (i) initiate, solicit, knowingly
encourage or knowingly facilitate inquiries or proposals with respect to any Acquisition Proposal, (ii) engage or participate in
any negotiations with any person

 

    	 	- 7 -	 

     

    

 

concerning any Acquisition Proposal,
(iii) provide any confidential or nonpublic information or data to, or have or participate in any discussions with, any person
relating to any Acquisition Proposal, (iv) make or participate in, directly or indirectly, a “solicitation” of “proxies”
(as such terms are used in the rules of the SEC) or powers of attorney or similar rights to vote, or seek to advise or influence
any Person, with respect to the voting of any shares of Company Stock in connection with any vote or other action on any matter,
other than to recommend that the stockholders of the Company vote in favor of the adoption and approval of the Merger Agreement
and the transactions contemplated thereby as otherwise expressly provided in this Agreement, (v) approve, adopt, recommend or enter
into, or publicly propose to approve, adopt, recommend or enter into, or allow any of its Affiliates to enter into, a merger agreement,
letter of intent, term sheet, agreement in principle, share purchase agreement, asset purchase agreement, share exchange agreement,
option agreement, voting, profit capture, tender or other similar contract providing for, with respect to, or in connection with,
or that is intended to or could reasonably be expected to result in any Acquisition Proposal, or (vi) agree or propose to do any
of the foregoing. The Stockholder and its Subsidiaries, Affiliates and Representatives shall immediately cease and cause to be
terminated all discussions or negotiations with any Person conducted heretofore (other than with Parent) with respect to any Acquisition
Proposal, and shall take the necessary steps to inform its Affiliates and Representatives of the obligations undertaken pursuant
to this Agreement, including this Section 4.3. Any violation of this Section 4.3 by the Stockholder’s Affiliates or Representatives
shall be deemed to be a violation by the Stockholder of this Section 4.3. The Stockholder agrees to promptly (and in any event
within 24 hours) notify Parent after receipt by it of an Acquisition Proposal or any indication to it that any Person is considering
making an Acquisition Proposal or any request of such Stockholder for nonpublic information relating to the Company or any of its
Subsidiaries or for access to the properties, books or records of the Company or any of its Subsidiaries by any Person that such
Stockholder has knowledge or reasonably expects to be considering making, or has made, an Acquisition Proposal and to keep Parent
fully informed of the status and details of any such Acquisition Proposal, indication or request.

 

(b)          For
the avoidance of doubt, for the purposes of this Section 4.3, any officer, director, employee, agent or advisor of the Company
(in each case, in their capacities as such) shall be deemed not to be a Representative of the Stockholder.

 

Section
4.4           Notice Of Acquisitions. The Stockholder agrees
to notify Parent as promptly as practicable (and in any event within one (1) Business Day after receipt) orally and in writing
of the number of any additional shares of Company Stock or other securities of the Company of which such Stockholder acquires Beneficial
Ownership on or after the date hereof.

 

Section
4.5           Further Assurances; Disclosure. From time to
time, at Parent’s reasonable request and without further consideration, the Stockholder agrees to cooperate with Parent with
respect to Parent’s or the Company’s or their respective Subsidiaries’ filings with Governmental Entities, to
the extent relating to such Stockholder, and to execute and deliver

 

    	 	- 8 -	 

     

    

 

such additional documents and reasonably
cooperate in connection with such further actions, to the extent relating to such Stockholder, as may be necessary or desirable
to effect the actions contemplated by this Agreement and the Merger Agreement; provided that, for the avoidance of doubt,
this Section 4.5 shall not be interpreted to transfer to the Stockholder the responsibility to prepare and/or file any application
or other filing that would traditionally be filed by Parent, the Company or any of their respective Affiliates in connection with
the transactions contemplated hereby. The Stockholder hereby authorizes Parent to publish and disclose in any announcement or disclosure
required by the SEC and in the Proxy Statement such Stockholder’s identity and ownership of such Stockholder’s Covered
Shares and the nature of such Stockholder’s obligations under this Agreement.

 

Article
V

Miscellaneous

 

Section
5.1           Termination. This Agreement shall remain in
effect until the earlier to occur of (a) the Effective Time and (b) the Expiration Date. Neither the provisions of this Section
5.1 nor the termination of this Agreement shall (i) relieve any party hereto from any liability of such party to any other party
incurred prior to such termination or expiration, (ii) relieve any party hereto from any liability to any other party arising out
of or in connection with a breach of this Agreement or (iii) terminate the obligations under Section 2.1(b) or Article V. The Stockholder
shall also have the right to terminate this Agreement by written notice to Parent as specified below if the terms of the Merger
Agreement are amended, modified or waived without the written consent of such Stockholder to change the form or amount of the consideration
payable with respect to the Covered Shares pursuant the Merger Agreement in a manner adverse to such Stockholder; provided that
such Stockholder sends notice to Parent of such Stockholder’s election to terminate within five (5) Business Days after the
public announcement of such amendment.

 

Section 5.2           No
Agreement as Director or Officer; Stockholder Capacity. Notwithstanding any provision in this Agreement to the contrary, nothing
in this Agreement shall limit or restrict the Stockholder (if an individual) in his or her capacity as a director or officer of
the Company from acting in such capacity or voting in such capacity in such person’s sole discretion on any matter and no
such actions shall be deemed a breach of this Agreement. Any trustee executing this Agreement is executing this Agreement solely
in his or her fiduciary capacity and shall have no personal liability or obligation under this Agreement in such capacity. It is
understood that this Agreement shall apply to the Stockholder solely in such Stockholder’s capacity as a stockholder of the
Company.

 

Section
5.3           No Ownership Interest. The Stockholder has agreed
to enter into this Agreement and act in the manner specified in this Agreement for consideration. Except as expressly set forth
in this Agreement, all rights and all ownership and economic benefits of and relating to the Stockholder’s Covered Shares
shall remain vested in and belong to such Stockholder, and except as expressly set forth in this Agreement, nothing herein shall,
or shall be construed to, grant Parent any power, sole or shared, to direct or control the voting or disposition of any of such
Covered Shares. Nothing in this Agreement shall be interpreted as

 

    	 	- 9 -	 

     

    

 

creating or forming a “group”
with any other Person, including Parent, for purposes of Rule 13d-5(b)(1) of the Exchange Act or any other similar provision of
applicable Law.

 

Section
5.4           Notices. All notices and other communications
hereunder shall be in writing and shall be deemed duly given (a) on the date of delivery if delivered personally, or if by facsimile,
upon confirmation of receipt, or if by e-mail so long as such e-mail states it is a notice delivered pursuant to this Section 5.4
and a duplicate copy of such e-mail is promptly given by one of the other methods described in this Section 5.4, (b) on the first
business day following the date of dispatch if delivered utilizing a next-day service by a recognized next-day courier or (c) on
the earlier of confirmed receipt or the fifth business day following the date of mailing if delivered by registered or certified
mail, return receipt requested, postage prepaid. All notices hereunder shall be delivered to the addresses set forth below, or
pursuant to such other instructions as may be designated in writing by the party to receive such notice:

 

		(i)	if to Parent, to:

 

Salem Five Bancorp

210 Essex Street

Salem, Massachusetts 01970.0804

Attention: Ping Yin Chai

Email: PingYin.Chai@salemfive.com

 

with a copy (which shall not constitute
notice) to:

 

K&L Gates LLP

One Lincoln Street

Boston, Massachusetts 02111

Attention: Stephen L. Palmer

Email: stephen.palmer@klgates.com

 

and

 

		(ii)	if to the Stockholder, to the applicable address set forth
on Schedule 1.

 

Section
5.5           Interpretation. The parties have participated
jointly in negotiating and drafting this Agreement. In the event that an ambiguity or a question of intent or interpretation arises,
this Agreement shall be construed as if drafted jointly by the parties, and no presumption or burden of proof shall arise favoring
or disfavoring any party by virtue of the authorship of any provision of this Agreement. When a reference is made in this Agreement
to Articles, Sections or Schedules, such reference shall be to an Article or Section of or Schedule to this Agreement unless otherwise
indicated. Headings contained in this Agreement are for reference purposes only and shall not affect in any way the meaning or
interpretation of this Agreement. Whenever the words “include,” “includes” or “including” are
used in this Agreement, they shall be deemed to be followed by the words “without limitation.” References to “the
date hereof” shall mean the date of this Agreement. As used herein, (i) “business day” means any day other than
a

 

    	 	- 10 -	 

     

    

 

Saturday, a Sunday or a day on which banks
in New York, New York are authorized by law or executive order to be closed and (ii) the “transactions contemplated by the
Merger Agreement” shall include the Merger and the Bank Merger. All references to “dollars” or “$”
in this Agreement are to United States dollars. This Agreement shall not be interpreted or construed to require any Person to take
any action, or fail to take any action, if to do so would violate any applicable Law. References to any statute or regulation refer
to such statute or regulation as amended, modified, supplemented or replaced from time to time (and, in the case of statutes, include
any rules and regulations promulgated under the statute) and references to any section of any statute or regulation include any
successor to such section.

 

Section
5.6           Counterparts. This Agreement may be executed
in two or more counterparts (including by facsimile or other electronic means) all of which shall be considered one and the same
agreement and shall become effective when counterparts have been signed by each of the parties and delivered to the other parties,
it being understood that all parties need not sign the same counterpart.

 

Section
5.7           Entire Agreement. This Agreement and, to the
extent referenced herein, the Merger Agreement, together with the several agreements and other documents and instruments referred
to herein or therein or attached hereto or thereto, constitute the entire agreement among the parties and supersede all prior agreements
and understandings, both written and oral, among the parties with respect to the subject matter hereof and thereof.

 

Section
5.8           Governing Law; Jurisdiction; Waiver Of Jury Trial.

 

(a)          This
Agreement shall be governed and construed in accordance with the laws of the Commonwealth of Massachusetts, without regard to any
applicable conflicts of law.

 

(b)          Each
party agrees that it will bring any action or proceeding in respect of any claim arising out of or related to this Agreement or
the transactions contemplated hereby exclusively in any federal or state court located in the Commonwealth of Massachusetts (the
“Chosen Courts”), and, solely in connection with claims arising under this Agreement or the transactions that
are the subject of this Agreement, (i) irrevocably submits to the exclusive jurisdiction of the Chosen Courts, (ii) waives any
objection to laying venue in any such action or proceeding in the Chosen Courts, (iii) waives any objection that the Chosen Courts
are an inconvenient forum or do not have jurisdiction over any party and (iv) agrees that service of process upon such party in
any such action or proceeding will be effective if notice is given in accordance with Section 5.4.

 

(c)          EACH
PARTY ACKNOWLEDGES AND AGREES THAT ANY CONTROVERSY WHICH MAY ARISE UNDER THIS AGREEMENT IS LIKELY TO INVOLVE COMPLICATED AND DIFFICULT
ISSUES, AND THEREFORE EACH SUCH PARTY HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY LAW, ANY
RIGHT SUCH PARTY MAY HAVE TO

 

    	 	- 11 -	 

     

    

 

A TRIAL BY JURY IN RESPECT OF ANY LITIGATION DIRECTLY
OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT. EACH PARTY CERTIFIES
AND ACKNOWLEDGES THAT: (I) NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT
SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER, (II) SUCH PARTY UNDERSTANDS AND HAS
CONSIDERED THE IMPLICATIONS OF THIS WAIVER, (III) SUCH PARTY MAKES THIS WAIVER VOLUNTARILY, AND (IV) SUCH PARTY HAS BEEN INDUCED
TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS Section
5.8(c).

 

Section
5.9            Amendment; Waiver. This Agreement may not be
amended except by an instrument in writing signed by Parent and the Stockholder. Each party may waive any right of such party hereunder
by an instrument in writing signed by such party and delivered to the other parties, but such waiver shall not operate as a waiver
of, or estoppel with respect to, any subsequent or other failure.

 

Section
5.10         Specific Performance. The parties hereto agree that irreparable
damage would occur if any provision of this Agreement were not performed in accordance with its specific terms or were otherwise
breached. Accordingly, the parties shall be entitled to specific performance of the terms hereof, including an injunction or injunctions
to prevent breaches of this Agreement or to enforce specifically the performance of the terms and provisions hereof, in addition
to any other remedy to which they are entitled at law or in equity. Each of the parties hereby further waives (a) any defense in
any action for specific performance that a remedy at law would be adequate and (b) any requirement under any Law to post security
or a bond as a prerequisite to obtaining equitable relief.

 

Section
5.11         Severability. Whenever possible, each provision or portion
of any provision of this Agreement shall be interpreted in such manner as to be effective and valid under applicable Law, but if
any provision or portion of any provision of this Agreement is held to be invalid, illegal or unenforceable in any respect under
any applicable Law or rule in any jurisdiction, such invalidity, illegality or unenforceability shall not affect any other provision
or portion of any provision in such jurisdiction, and this Agreement shall be reformed, construed and enforced in such jurisdiction
such that the invalid, illegal or unenforceable provision or portion thereof shall be interpreted to be only so broad as is enforceable.

 

Section
5.12         Delivery by Facsimile or Electronic Transmission. This
Agreement and any signed agreement or instrument entered into in connection with this Agreement, and any amendments or waivers
hereto or thereto, to the extent signed and delivered by means of a facsimile machine or by e-mail delivery of a “.pdf”
format data file, shall be treated in all manner and respects as an original agreement or instrument and shall be considered to
have the same binding legal effect as if it were the original signed version thereof delivered in person. No party hereto or to
any such agreement or instrument shall raise the use of a facsimile machine or e-mail delivery of a “.pdf” format data
file to deliver a signature to this Agreement or any

 

    	 	- 12 -	 

     

    

 

amendment hereto or the fact that any signature
or agreement or instrument was transmitted or communicated through the use of a facsimile machine or e-mail delivery of a “.pdf”
format data file as a defense to the formation of a contract and each party hereto forever waives any such defense.

 

Section
5.13         Successors And Assigns; Third Party Beneficiaries. Neither
this Agreement nor any of the rights, interests or obligations contained herein shall be assigned by any of the parties hereto
(whether by operation of law or otherwise) without the prior written consent of the other parties. Any purported assignment in
contravention hereof shall be null and void. Subject to the preceding sentences, this Agreement will be binding upon, inure to
the benefit of and be enforceable by the parties and their respective successors and permitted assigns. This Agreement (including
the documents and instruments referred to herein) is not intended to, and does not, confer upon any person other than the parties
hereto any rights or remedies hereunder, including the right to rely upon the representations and warranties set forth herein,
other than the Company which shall be, and hereby is, an express third party beneficiary of this Agreement.

 

Section
5.14        Expenses. All costs and expenses incurred in connection
with this Agreement shall be paid by the party incurring such cost or expense.

 

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blank]

 

    	 	- 13 -	 

     

    

 

IN WITNESS WHEREOF,
the parties hereto have caused this Agreement to be signed (where applicable, by their respective officers or other authorized
Person thereunto duly authorized) as of the date first written above.

 

	 	SALEM FIVE BANCORP
	 	 	 
	 	By:	 
	 	 	Name: Ping Yin Chai
	 	 	Title: President and Chief Executive Officer

 

    	 	- 1 -	 

     

    

 

IN WITNESS WHEREOF,
the parties hereto have caused this Agreement to be signed (where applicable, by their respective officers or other authorized
Person thereunto duly authorized) as of the date first written above.

 

	 	[STOCKHOLDER]
	 	 	 
	 	By:	 
	 	Name:
	 	Title:

 

    	 	- 1 -	 

     

    

 

SCHEDULE 1

 

	Stockholder	 	Number of Existing
    Shares 

    of Company Stock	 	Address
	[Stockholder Name]	 	 	 	
        [Address]

        Attention: [●]

        E-mail: [●]

 

    	 	- 1 -

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