SEC Contract Filing

Filing Date: 2015-01-27

Document Content:
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<TYPE>EX-10.1
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<FILENAME>a15-3043_1ex10d1.htm
<DESCRIPTION>EX-10.1
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<p align="right" style="margin:0in 0in .0001pt;text-align:right;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">EXHIBIT&nbsp;10.1</font></b></p>
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<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><u><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">AFFILIATE AGREEMENT</font></u></b></p>
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<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Kentucky Bancshares,&nbsp;Inc.</font></p>
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<p style="margin:0in 0in .0001pt 10.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Attention:</font></p> </td>
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<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Louis Prichard</font></p> </td> </tr>
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<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">President and Chief Executive Officer</font></p> </td> </tr> </table>
<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">339 Main Street<br> Paris, Kentucky 40361</font></p>
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<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Gentlemen:</font></p>
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<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The undersigned is a shareholder and a director of (i)&nbsp;Madison Financial Corporation (&#147;MFC&#148;), a Kentucky corporation, or (ii)&nbsp;the subsidiary of MFC, Madison Bank (&#147;MB&#148;).&#160; Pursuant to the transactions described in the Agreement and Plan of Share Exchange, dated as of January&nbsp;21, 2015 (the &#147;Agreement&#148;), by and between MFC and Kentucky Bancshares,&nbsp;Inc. (&#147;KBI&#148;), all of the outstanding shares of MFC Common Stock will be acquired by KBI pursuant to a statutory share exchange (the &#147;Share Exchange&#148;) for the Common Stock Consideration. This Affiliate Agreement represents an agreement between the undersigned and KBI regarding certain rights and obligations of the undersigned in connection with the Share Exchange.</font></p>
<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">In consideration of the benefits the undersigned will receive under the Share Exchange as a shareholder of MFC and the mutual covenants contained herein, the undersigned and KBI hereby agree as follows:</font></p>
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<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <b><u style="font-weight:bold;">Vote on the Share Exchange</u></b>.</font></p>
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<p style="margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; The undersigned agrees that, at any time the Agreement remains in effect, he or she will vote all shares of MFC Common Stock that the undersigned owns beneficially or of record in favor of approving the Agreement, unless KBI is then in breach or default in any material respect as regards any covenant, agreement, representation or warranty as to it contained in the Agreement; provided, however, that nothing in this sentence shall be deemed to require the undersigned to vote any shares of MFC Common Stock over which he or she has or shares voting power solely in a fiduciary capacity on behalf of any Person other than MFC, if the undersigned determines, in good faith after consultation and receipt of an opinion of counsel, that such a vote would cause a breach of fiduciary duty to such other Person.</font></p>
<p style="margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
<p style="margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; KBI acknowledges that the undersigned is not making any agreement pursuant to this Section&nbsp;1 or any other Section&nbsp;of this Letter Agreement in his capacity as a director or officer of MFC and that the undersigned is agreeing to the voting provisions of this Section&nbsp;1 solely in his or