UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SCHEDULE 14A INFORMATION
Proxy Statement Pursuant to Section 14(a) of the
Securities Exchange Act of 1934
(Amendment No. )
Filed by the
Registrant
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Filed by a
Party other than the Registrant
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Check the
appropriate box:
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Preliminary Proxy Statement
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Confidential, for Use of the Commission Only (as permitted by Rule 14a-6(e)(2))
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Definitive Proxy Statement
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Definitive Additional Materials
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Soliciting Material pursuant to §240.14a-12
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AB&T FINANCIAL CORPORATION
(Name of registrant as specified in its charter)
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(Name of person(s) filing proxy statement, if other than the registrant)
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Payment of Filing Fee (Check the appropriate box):
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Fee computed on table below per Exchange Act Rules 14a-6(i)(1) and 0-11.
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(1)
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Title of each class of securities to which the transaction applies:
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(2)
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Aggregate number of securities to which the transaction applies:
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(3)
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Per unit price or other underlying value of transaction computed pursuant to Exchange Act Rule 0-11 (Set forth the amount on which the filing fee is calculated and
state how it was determined):
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(4)
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Proposed maximum aggregate value of transaction:
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Fee paid previously with preliminary materials.
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Check box if any part of the fee is offset as provided by Exchange Act Rule 240.0-11 and identify the filing for which the offsetting fee was paid previously. Identify
the previous filing by registration statement number, or the Form or Schedule and the date of its filing.
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(1)
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Amount Previously Paid:
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(2)
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Form, Schedule or Registration Statement No.:
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AB&T FINANCIAL CORPORATION
292 West Main Avenue
Gastonia, North Carolina 28052
(704) 867-5828
NOTICE OF INTERNET AVAILABILITY OF PROXY MATERIALS
and
NOTICE OF ANNUAL MEETING OF SHAREHOLDERS
To Be Held June 22, 2010
NOTICE
is hereby given that the annual meeting of shareholders of AB&T Financial Corporation (the Company) will be
held as follows:
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Place:
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Gaston College
Myers
Auditorium
201 Highway 321 South
Dallas, North Carolina 28034
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Date:
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June 22, 2010
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Time:
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10:30 a.m.
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The purposes of the
meeting are as follows:
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1.
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To elect one member of the board of directors for a three-year term
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2.
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To ratify a non-binding shareholder resolution regarding executive compensation
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To ratify the appointment of Elliott Davis, PLLC, as the Companys independent registered public accounting firm for 2010
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4.
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To transact any other business that may properly come before the meeting
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You are cordially invited to attend the meeting in person. However, even if you expect to attend the meeting, you are requested to
grant a proxy to vote your shares by mail or internet to ensure that a quorum is present at the meeting. If you choose to vote by mail, please complete, sign and date the enclosed appointment of proxy and return it in the envelope provided for that
purpose.
You can also appoint the proxies to vote your shares for you by going to the following internet website,
https://www.shareholderlink.com/fss/abtf/pxsignon.asp and clicking in the box to enter your voter control number. You should enter the number printed just above your name on the enclosed proxy card, and then follow the instructions you
will be given. You may vote by internet only until 5:00 p.m. on June 21, 2010, which is the day before the annual meeting date. If you vote by internet, you need not sign and return a proxy card through the mail. If you vote by internet, you
will be appointing the proxies to vote your shares on the same terms and with the same authority as if you marked, signed and returned the proxy card through the mail.
We have elected to furnish our proxy solicitation materials via U.S. Mail and also to notify you of the availability of our proxy
materials on the internet. The notice of annual meeting, proxy statement, and annual report are available on the internet at https://www.shareholderlink.com/fss/abtf/pxsignon.asp.
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By Order of the Board of Directors
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Daniel C. Ayscue
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President and Chief Executive Officer
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May 25, 2010
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AB&T FINANCIAL CORPORATION
292 West Main Avenue
Gastonia, North Carolina 28052
(704) 867-5828
PROXY
STATEMENT
Mailing Date: On or about May 25, 2010
ANNUAL MEETING OF SHAREHOLDERS
To Be Held June 22, 2010
General
This proxy
statement is furnished in connection with the solicitation of the enclosed appointment of proxy by the board of directors of AB&T Financial Corporation (the Company) for the 2010 annual meeting of shareholders of the Company to be
held at Myers Auditorium at Gaston College, 201 Highway 321 South, Dallas, North Carolina 28034 at 10:30 a.m. on June 22, 2010, and any adjournments thereof. The Company is the holding company for Alliance Bank & Trust Company,
Gastonia, North Carolina (the Bank).
Our main office is located at 292 West Main Avenue, Gastonia, North Carolina
28052. The mailing address of our main office is Post Office Box 1099, Gastonia, North Carolina 28053.
Solicitation and Voting of
Appointments of Proxy; Revocation
Persons named in the appointment of proxy as proxies to represent shareholders at the
annual meeting are Kenneth C. Appling, Wayne F. Shovelin, and David W. White. Shares represented by each appointment of proxy that is properly executed and returned, and not revoked, will be voted in accordance with the directions contained in the
appointment of proxy. If no directions are given, each such appointment of proxy will be voted
FOR
the election of the nominee for director named in proposal 1 and
FOR
proposals 2 and 3. If, at or before the time of the annual
meeting, the nominee named in proposal 1 has become unavailable for any reason, the proxies will have the discretion to vote for a substitute nominee. On such other matters as may come before the meeting, the proxies will be authorized to vote
shares represented by each appointment of proxy in accordance with their best judgment on such matters. An appointment of proxy may be revoked by the shareholder giving it at any time before it is exercised by filing with the Companys
corporate secretary at its main office a written instrument revoking it or a duly executed appointment of proxy bearing a later date, whether appointed through the mail or the internet, or by attending the annual meeting and announcing his or her
intention to vote in person.
Expenses of Solicitation
The Company will pay the cost of preparing, assembling and mailing this proxy statement and other proxy solicitation expenses. In addition
to the use of the mails and the internet, appointments of proxy may be solicited in person or by telephone by the Companys and the Banks officers, directors and employees without additional compensation. The Company will reimburse banks,
brokers and other custodians, nominees and fiduciaries for their costs in sending the proxy materials to the beneficial owners of the Companys common stock.
Record Date
The close
of business on May 12, 2010 has been fixed as the record date for the determination of shareholders entitled to notice of and to vote at the annual meeting. Only shareholders of record on that date will be eligible to vote on the proposals
described herein.
Voting Securities
The voting securities of the Company are the shares of its common stock, par value $1.00 per share, of which 10,000,000 shares are
authorized and 2,678,205 shares were outstanding on March 31, 2010. There were 694 holders of record of the Companys common stock on March 31, 2010.
Voting Procedures; Quorum; Votes Required for Approval
Each shareholder is entitled to one vote for each share held of record on the record date on each director to be elected and on each other
matter submitted for voting. In accordance with North Carolina law, shareholders will not be entitled to vote cumulatively in the election of directors at the annual meeting.
A majority of the shares of the Companys common stock issued and outstanding on the record date must be present in person or by
proxy to constitute a quorum for the conduct of business at the annual meeting.
Assuming a quorum is present, in the case of
proposal 1, the nominee receiving the greatest number of votes shall be elected.
In the case of proposals 2 and 3, for each
such proposal to be approved, the number of votes cast for approval of the proposal must exceed the number of votes cast against such proposal. Abstentions and broker nonvotes will have no effect.
Authorization to Vote on Adjournment and Other Matters
Unless the secretary of the Company is instructed otherwise, by signing an appointment of proxy, shareholders will be authorizing the
proxy holders to vote in their discretion regarding any procedural motions which may come before the annual meeting. For example, this authority could be used to adjourn the annual meeting if the Company believes it is desirable to do so.
Adjournment or other procedural matters could be used to obtain more time before a vote is taken
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in order to solicit additional appointments of proxy or to provide additional information to shareholders. However, appointments of proxy voted against any one of the proposals will not be used
to adjourn the annual meeting. The Company does not have any plans to adjourn the annual meeting at this time, but intends to do so, if needed, to promote shareholder interests.
Beneficial Ownership of Voting Securities
As of March 31, 2010, the shareholders identified in the following table beneficially owned more than 5% of the Companys common
stock.
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Name and Address of
Beneficial Owner
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Amount and Nature of
Beneficial Ownership
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Percent of
Class
(1)
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Financial Stocks Capital Partners IV, LP
Cincinnati, OH
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225,250
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8.41
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Franklin Mutual Advisors, LLC
Short Hills, NJ
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226,100
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8.44
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(1)
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The calculation of the percentage of class beneficially owned is based on a total of 2,678,205 shares of common stock outstanding as of March 31, 2010.
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As of March 31, 2010, the beneficial ownership of the Companys common stock by the Companys
directors and by the Companys and the Banks executive officers individually and by directors and executive officers as a group, was as follows:
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Name and Address of
Beneficial Owner
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Amount and Nature of
Beneficial
Ownership
(1)(2)
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Percent
of
Class
(3)
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Kenneth C. Appling
Forest City, NC
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62,114
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2.31
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Daniel C. Ayscue
Gastonia, NC
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37,118
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1.37
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Eric L. Dixon
Gastonia, NC
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29,042
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1.08
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Roger A. Mobley
Asheville, NC
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0
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0.00
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Joseph H. Morgan
Shelby, NC
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35,650
(4)
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1.33
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Lawrence H. Pearson, MD
Shelby, NC
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40,421
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1.50
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Wayne F. Shovelin
Gastonia, NC
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92,388
(5)
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3.43
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3
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Matthew J. Triplett
Shelby, NC
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17,059
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0.63
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David W. White
Shelby, NC
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108,385
(6)
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4.03
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All Company Directors and Executive
Officers as a group (9 persons)
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422,177
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15.12
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As of March 31,
2010, the beneficial ownership of the Companys common stock, by Bank-only directors individually and, with the directors and the executive officers of the Company as a group, was as follows:
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Name and Address of
Beneficial Owner
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Amount and Nature of
Beneficial
Ownership
(1)(2)
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Percent
of
Class
(3)
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Kelvin C. Harris, MD
Gastonia, NC
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5,912
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0.22
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Susan J. Joyner
Gastonia, NC
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14,520
(7)
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0.54
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Jerry L. Kellar
Gastonia, NC
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19,599
(8)
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0.73
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Gerald F. McSwain
Gastonia, NC
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16,179
(9)
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0.60
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Carl J. Stewart, Jr., Esq.
Gastonia, NC
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10,388
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0.39
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H. Gene Washburn, MD
Boiling Springs, NC
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11,192
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0.42
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John H. Whaley
Shelby, NC
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23,518
(10)
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0.88
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Jack R. Williams
Sherills Ford, NC
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11,543
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0.43
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All Company and Bank Directors and
Executive Officers as a group
(17 persons)
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535,028
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18.94
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(1)
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Except as otherwise noted, to the best knowledge of the Companys management, the above individuals and group exercise sole voting and investment power with
respect to all shares shown as beneficially owned other than the following shares as to which such powers are shared: Mr. Appling 38,068 shares and Mr. White 47,500 shares.
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(2)
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Included in the beneficial ownership tabulations are the following options to purchase shares of common stock of the Company: Mr. Appling
15,646 shares; Mr. Ayscue 24,043 shares; Mr. Dixon 14,889 shares; Dr. Harris 2,580 shares; Ms. Joyner 4,468 shares; Mr. Kellar 5,735
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shares; Mr. McSwain 3,884 shares; Mr. Morgan 7,127 shares; Dr. Pearson 9,896 shares; Mr. Shovelin 15,655 shares; Mr. Stewart 2,382
shares; Mr. Triplett 14,889 shares; Dr. Washburn 3,261 shares; Mr. Whaley 6,518 shares; Mr. White 12,260 shares; and Mr. Williams 3,362 shares.
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(3)
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The calculation of the percentage of class beneficially owned by each individual and the group is based, in each case, on the sum of (i) a total of 2,678,205
shares of common stock outstanding as of March 31, 2010 and (ii) options to purchase shares of common stock which are exercisable within 60 days of March 31, 2010.
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(4)
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Includes 6,023 shares held by a business entity controlled by Mr. Morgan.
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(5)
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Includes 7,877 shares owned individually by Mr. Shovelins spouse and 625 shares owned by Mr. Shovelins son.
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(6)
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Includes 11,875 shares held by an entity controlled by Mr. White.
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(7)
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Includes 3,121 shares owned individually by Ms. Joyners spouse.
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(8)
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Includes 500 shares owned by Mr. Kellars son.
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(9)
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Includes 795 shares owned individually by Mr. McSwains spouse.
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(10)
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Includes 125 shares held by Mr. Whaley as custodian and 1,250 shares held by Mr. Whaleys son.
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Section 16(a) Beneficial Ownership Reporting Compliance
The Companys directors and executive officers are required to file certain reports with the Securities and Exchange Commission
regarding the amount of and changes in their beneficial ownership of the Companys common stock (including, without limitation, an initial report following election as an officer or director of the Company and a report following any change in a
reporting persons beneficial ownership). Based upon a review of copies of reports received by the Company, all required reports of directors and executive officers of the Company were filed on a timely basis in 2009.
PROPOSAL 1: ELECTION OF DIRECTORS
The Companys bylaws provide that its board shall consist of between five (5) and seven (7) members divided into three
classes in as equal number as possible. Such classes shall be elected to staggered three (3) year terms. The board has set the number of directors of the Company at five (5). The board recommends that shareholders vote for the following
director for a three-year term:
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Name and Age
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Position(s)
Held
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Director
Since
(1)
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Principal Occupation and
Business Experience
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Joseph H. Morgan
(45)
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Director
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2004
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President, J. Morgan Company, Shelby, NC, 1983present (plastic recycling company)
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(1)
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Includes prior service as a director of Alliance Bank & Trust Company.
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THE BOARD OF DIRECTORS RECOMMENDS THAT SHAREHOLDERS VOTE
FOR
THE
NOMINEE FOR DIRECTOR OF THE COMPANY FOR A TERM OF THREE YEARS.
Incumbent Directors
The Companys board of directors includes the following directors whose terms will continue after the annual meeting. Certain
information regarding those directors is set forth in the table below.
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Name and Age
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Director
Since
(1)
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Term
Expires
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Principal Occupation and
Business Experience
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Kenneth C. Appling
(48)
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2004
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2012
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President, Appling Boring Company, Forest City, NC, 1987present (commercial pipe installation and horizontal boring)
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Lawrence H. Pearson, MD
(59)
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2009
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2011
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Cleveland Dermatology, P.A., Shelby, NC
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Wayne F. Shovelin
(65)
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2004
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2012
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Retired; President and Chief Executive Officer, CaroMont Health/Gaston Memorial Hospital, Gastonia, NC, 19762009
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David W. White
(60)
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2004
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2011
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President, White Investments of Shelby, LLC, Shelby, NC, 1988present (real estate development/management)
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(1)
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Includes prior service as a director of Alliance Bank & Trust Company.
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Qualifications of Directors
A description of the specific experience, qualifications, attributes, or skills that led to the conclusion that each of the nominees and
incumbent directors should serve as a director of the Company and the Bank is presented below. Each of these directors brings a unique perspective and set of qualifications to the board of directors and each is involved in their local community and
the Banks market area through their professional pursuits and civic involvement.
Kenneth C. Appling.
Mr. Appling is the owner and president of Appling Boring Co., Inc., in Forest City, North Carolina. Mr. Applings company specializes in the boring and drilling of pipe lines, transmission lines, drainage, and irrigation systems. He
has been involved in many construction projects in the Companys market area. His awareness of the pace of building and other economic activity in the local market is an asset to the board in its discussions and assessment of the local economy
and the Banks land development and construction lending activities.
Kelvin C. Harris, MD.
Dr. Harris
is an obstetrician/gynecologist with Gaston Womens Healthcare, P.A., in Gastonia, North Carolina. He earned his doctor of medicine degree from the University of North Carolina School of Medicine. He also earned an undergraduate degree in
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chemistry at the University of North Carolina - Chapel Hill where he was a Morehead Scholar. He completed his residency in obstetrics and gynecology at Wayne State University in Detroit,
Michigan. Dr. Harris is board certified in obstetrics and gynecology and is a Fellow of the American College of Obstetricians and Gynecologists. The board benefits from Dr. Harriss experience as a small business owner and
medical practitioner in the local community.
Susan J. Joyner.
Ms. Joyner is owner and president of Tally Ho
Clothier, Inc., in Gastonia, North Carolina. Tally Ho is a ladies specialty store that has been in business since 1985 and serves Gastonia, Charlotte, Shelby, Rock Hill, and other areas of both North and South Carolina. Ms. Joyner holds
bachelor of science and master of education degrees from Winthrop University in Rock Hill, South Carolina. Through her ownership and management of the business, Ms. Joyner is well-acquainted with the economic issues facing small business owners
and their customers. This experience is valuable to the board, especially in light of current economic conditions both locally and nationally.
Jerry L. Kellar.
Mr. Kellar is owner and president of Jerry Kellar Real Estate in Gastonia, North Carolina.
Mr. Kellar is also a North Carolina general contractor and is actively involved in the real estate and homebuilding business in Gaston County. He is a member of the Home Builders Association of Gaston County and the Gaston Association of
Realtors. He is also a member of the Gaston Rotary Club. Since the Banks loan portfolio is primarily secured by real estate, Mr. Kellars knowledge and experience in this area is essential to the board.
Gerald F. McSwain.
Mr. McSwain is president of McSwain Communications, Inc., in Gastonia, North Carolina, and general
manager of WNOW radio station in Charlotte, North Carolina. He is also vice president of F.C. Todd Incorporated, an office and warehouse rental company in Gastonia. In addition to his business activities, Mr. McSwain is heavily involved in
community activities. He has been a member of the Gastonia Rotary Club and the Gastonia Optimist Club and served as vice president of the United Way of Gaston County. The board benefits from Mr. McSwains knowledge and experience in the
Companys market area.
Joseph H. Morgan.
Mr. Morgan has been president of J. Morgan Company in
Shelby, North Carolina, since 1983. The company specializes in plastic processing and recycling. He is actively involved in the local business and civic community. He has served on the board of the Cleveland County Chamber of Commerce, is a member
of the Cleveland County Transportation Partnership, is past president and a current board member of the Cleveland YMCA, and is a member of the Shelby Elks Club. Mr. Morgan has extensive experience as a business owner and manager in the
Companys market areas.
Lawrence H. Pearson, MD.
Dr. Pearson is a dermatologist with Cleveland
Dermatology, P.A., in Shelby, North Carolina. He is a graduate of the University of North Carolina School of Medicine. He completed an internship at the Eastern Virginia Medical School and residency at the North Carolina Baptist Hospital and the
Medical College of Georgia. Dr. Pearson is a member of the American Academy of Dermatology, the American Medical Association, the American Society of Dermatologic Surgeons, the Dermatology Foundation Leaders Society, the Cleveland Regional
Medical Center Cancer Committee, the Cleveland/Rutherford Dermatology Society, the North Carolina Medical Society, and the Cleveland County Medical Society. As a business owner and physician, he brings an important perspective to the board of
directors.
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Wayne F. Shovelin.
In 2009, Mr. Shovelin retired as president and chief
executive officer of CaroMont Health and Gaston Memorial Hospital. Mr. Shovelin served the hospital for 33 years, including 23 years as chief executive officer. He is a distinguished business and community leader and is a recipient of the State
of North Carolina Order of the Long Leaf Pine and the Distinguished Service Award from the North Carolina Hospital Association. In the local community, Mr. Shovelin has served as chair of the Gaston County Chamber of Commerce, campaign chair of
the 2004 Gaston County Arts Drive, chair of the United Way of Gaston County, chair of the Gaston County Heart Society, and chair of the bond issuance committee for Gaston County. Mr. Shovelin has been chairman of the board of directors of the
Company and the Bank since inception. His leadership and vast experience as a hospital administrator and community leader have been invaluable to the Company as it has faced the challenges presented by the current economic environment.
Carl J. Stewart, Jr., Esq.
Mr. Stewart is an attorney practicing in Gastonia, North Carolina. He has a long history of
service to the state of North Carolina. In 2004, the governor of North Carolina appointed him to a six-year term as chairman of the board of directors of the North Carolina State Ports Authority. He represented Lincoln and Gaston counties in the
North Carolina House of Representatives from 1967 through 1980, and was elected speaker of the house in 1977 and again in 1979. He served on the North Carolina Board of Transportation from 1981 through 1983. He was a member of the Economic
Development Board and the North Carolina Board of Technology from 1999 to 2001, and was also chairman of the board of directors of Preservation North Carolina. He has also served as chairman of the Gastonia-West Committee since 1996.
Mr. Stewart received undergraduate and law degrees from Duke University. The Company operates in a highly regulated environment, and the boards discussions are enhanced by Mr. Stewarts experiences in the legal profession and in
state government.
H. Gene Washburn, MD.
Dr. Washburn is a retired physician from Boiling Springs, North
Carolina. He attended Gardner-Webb University in Boiling Springs and graduated from Wake Forest University and the Bowman Gray School of Medicine (now Wake Forest University School of Medicine). He has stayed heavily involved with Gardner-Webb
University, serving as vice chair of the board of trustees. Dr. Washburn is able to provide the board with insights about the Companys market area.
John H. Whaley.
Mr. Whaley is owner and president of Whaley Carpet & Tile Company in Shelby and Gastonia,
North Carolina. The company is engaged in the wholesale and retail sale of floor coverings. Mr. Whaley is also a licensed contractor. His community activities include membership in the Shelby Elks Club and the Cleveland County Chamber of
Commerce. Mr. Whaley provides the perspective of a business owner in the building and construction industries, both of which have an important impact on the Companys operations.
David W. White.
Since 1988, Mr. White has been president of White Investments of Shelby, LLC, a real estate
development and management company. He is a board member of the Cleveland County YMCA, chairman of the YMCA We Build People campaign, a past member of the
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Uptown Shelby Association, and board member of the Keep Shelby Beautiful Commission. Mr. Whites involvement in real estate development and management allows him to keep the board
apprised of the condition of the local real estate market, which is a central to the Companys lending function.
Jack R. Williams.
Mr. Williams is president of Lake Cruises, Inc., and Premier Land Co. in Shelby and Lake Norman,
North Carolina. Lake Cruises operates the
Catawba Queen
, a paddle boat providing sightseeing, dinner cruises, and private charters on Lake Norman. Premier Land Co. is a real estate development company. Through his businesses,
Mr. Williams is exposed to both the tourism/leisure and real estate segments of the local economy.
Director Independence
Each member of the Companys board of directors is independent as defined by Nasdaq listing standards and
the regulations promulgated under the Securities Exchange Act of 1934 (the Exchange Act). In making this determination the board considered all insider transactions with directors for the provision of goods or services to the Company and
the Bank. All such transactions were conducted at arms length upon terms no less favorable than those that would be available from an independent third party.
Director Relationships
No director is a director of any other corporation with a class of securities registered pursuant to section 12 of the Exchange Act or
subject to the requirements of section 15(d) of the Exchange Act, or any corporation registered as an investment company under the Investment Company Act of 1940.
There are no family relationships among directors and executive officers of the Company or Bank.
Board Leadership Structure and Role in Risk Oversight
The board of directors is led by a chairman. At present, the positions of principal executive officer and chairman are held by different
persons. The board does not have a formal policy as to whether the roles of chairman and principal executive officer should be separate. At this time, the board has determined that separating these roles and having an independent director serve as
chairman of the board is in the best interests of the Company and its shareholders. The board believes this division of responsibility facilitates communication between the board and executive management and is appropriate given the legal and
regulatory requirements applicable to the Company and the Bank.
Under North Carolina law, the board of directors is
responsible for managing the business and affairs of the Company, including the oversight of risks that could affect the Company. Although the full board has responsibility for the general oversight of risks, it primarily conducts its risk oversight
function through committees, including the audit committee and the compensation committee, as described below, as well as other committees. The loan committee is responsible for
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oversight of credit risk and lending policies. The asset-liability committee is responsible for oversight of interest rate risk and liquidity risk. These committees meet regularly and provide
reports of their activities and conclusions to the full board, which is responsible for reviewing and ratifying the actions of the committees.
Meetings and Committees of the Board of Directors
There were five meetings of the Companys board of directors and nine meetings of the Banks board of directors in 2009. Each
director attended 75% or more of the aggregate number of meetings of the Companys board of directors and any committees on which he served.
The Company does not currently have a formal policy regarding attendance by directors at the Companys annual shareholder meetings.
In 2009, one of the Companys directors attended the annual meeting of shareholders.
The Companys board of
directors has several standing committees including an audit committee, compensation committee, and nominating committee. Formal written charters for the compensation and nominating committees are being developed and will be available on the
Companys website following adoption.
Audit Committee
. The members of the audit committee in 2009 were
Gerald F. McSwain, Joseph H. Morgan, and Jack R. Williams. The audit committee of the Company has in place pre-approval policies and procedures that involve an assessment of the performance and independence of the independent auditors of the
Company, an evaluation of any conflicts of interest that may impair the independence of the independent auditors and pre-approval of an engagement letter that outlines all services to be rendered by the independent auditors. The audit committee has
adopted a formal written charter which is available on the Companys website at http://www.alliancebankandtrust.com.
Report of the Audit Committee
The Companys audit committee is responsible for receiving and reviewing the annual audit report of the independent auditors and
reports of examinations by the Companys regulatory agencies. The committee helps to formulate, implement and review the internal audit program of the Company. The audit committee assesses the performance and independence of the independent
auditors and recommends their appointment and retention.
During the course of its examination of the Companys audit
process in 2009, the Companys audit committee reviewed and discussed the audited financial statements with management. The audit committee also discussed with the independent auditors, Elliott Davis, PLLC, all matters required to be discussed
by the Statement of Auditing Standards No. 61, as amended, as adopted by the Public Company Accounting Oversight Board in Rule 3200T. Furthermore, the audit committee received from Elliott Davis, PLLC, written disclosures and correspondence
regarding their independence required by applicable requirements of the Public Company Accounting Oversight Board and discussed with Elliott Davis their independence with respect to the Company and the Bank.
10
Based on the review and discussions above, the audit committee (i) recommended to the
board that the audited financial statements be included in the Companys annual report on Form 10-K for the year ended December 31, 2009 for filing with the Securities and Exchange Commission and (ii) recommended that shareholders
ratify the appointment of Elliott Davis, PLLC, as auditors of the Bank and Company for 2010.
Although the Companys
common stock is not traded on any exchange, the members of the audit committee are independent and financially literate as defined by Nasdaq listing standards. The board has determined that the Company does not have an audit
committee financial expert serving on its audit committee. An audit committee financial expert, as defined by rules of the Securities and Exchange Commission, is a person who has the following attributes: (1) an understanding
of generally accepted accounting principles (GAAP) and financial statements; (2) the ability to assess the general application of GAAP in connection with the accounting for estimates, accruals, and reserves; (3) experience
preparing, auditing, analyzing, or evaluating financial statements that are of the same level of complexity that can be expected in the Companys financial statements, or experience supervising people engaged in such activities; (4) an
understanding of internal controls and procedures for financial reporting; and (5) an understanding of audit committee functions. The board has determined that no member of the audit committee meets these criteria.
The audit committee met five times during 2009. This report is submitted by the audit committee: Gerald F. McSwain, Joseph H. Morgan and
Jack R. Williams.
Compensation Committee.
The members of the compensation committee in 2009 were Kenneth C.
Appling, Joseph H. Morgan, Wayne F. Shovelin, and David W. White. The compensation committee met once in 2009. The compensation committee reviews and recommends to the board the annual compensation, including salary, equity-based grants, incentive
compensation, and other benefits for senior management and other Company and Bank employees. The compensation committee reviews the salaries and compensation programs required to attract and retain the executive officers of the Company and the Bank.
The committee approves the compensation of executive officers and recommends for approval the compensation of the chief executive officer to the board of directors. The board ratifies the compensation of the executive officers and approves the
compensation of the chief executive officer. The salary of each of the Companys and the Banks executive officers is determined based on the executive officers experience, managerial effectiveness, contribution to the Companys
overall profitability, maintenance of regulatory compliance standards and professional leadership. The committee also compares the compensation of the Companys and the Banks executive officers with compensation paid to executives of
similarly situated bank holding companies, other businesses in the Companys market area and appropriate state and national salary data. These factors were considered in establishing the compensation for the executive officers during the fiscal
year ended December 31, 2009.
Subject to the requirements of the Companys participation in the U.S. Department of
the Treasurys Troubled Asset Relief Program (TARP), all executive officers of the Company and the Bank are eligible to receive discretionary bonuses or non-equity incentive awards declared by
11
the board of directors. Finally, the interests of the Companys and the Banks executive officers are aligned with that of its shareholders through the use of equity-based compensation,
historically through grants of stock options with exercise prices established at the fair market value of the Companys common stock at the time of grant.
In reviewing and recommending annual compensation, the committee must also ensure compliance with certain rules and restrictions on
executive compensation applicable to the Company as a result of its participation in the TARP Capital Purchase Program. Additional information on these restrictions can be found under the heading Restrictions on Executive Compensation
beginning on page 14 of this proxy statement. The compensation committee does not delegate any of its authority.
Nominating Committee
.
The members of the nominating committee in 2009 were Kenneth C. Appling, Joseph H. Morgan,
Wayne F. Shovelin, and David W. White. The nominating committee met twice in 2009. The duties of the nominating committee are: (1) to assist the board of directors by identifying individuals qualified to become board members and to recommend to
the board the director nominees for the next meeting of shareholders at which directors are to be elected; (2) to assist the board of directors by identifying individuals qualified to become board members in the event a vacancy on the board
exists and that such vacancy should be filled; and (3) to recommend to the board of directors director nominees for each board committee, in the event the chairperson of the board of directors delegates such responsibility to the nominating
committee.
The members of the nominating committee are independent as defined by Nasdaq listing standards. In
making recommendations to the board, the nominating committee, in accordance with the bylaws, will consider candidates recommended by shareholders, in writing, to the secretary of the Company if received at least 120 days prior to the annual meeting
at which directors are to be elected. Such recommendations of nominees shall include the nominees written consent to serve as a director if elected and a statement of the nominees qualifications to serve. Although there is not currently
a formal policy requiring that the nominating committee consider diversity in its identification of nominees to the board of directors, the committee values diversity, including diversity of background, experience, and expertise.
Director Compensation
Board Fees.
Directors received cash compensation for attendance at board and committee meetings during 2009. As of
December 31, 2009, each director of the Company received $300 and the chairperson received $500 per board meeting attended. Each director received $150 and the chairperson received $200 per committee meeting attended.
2005 Nonstatutory Stock Option Plan.
The shareholders of the Bank approved the Alliance Bank & Trust Company 2005
Nonstatutory Stock Option Plan for Directors at the 2005 annual meeting of shareholders. Following this approval, options to purchase 133,845 (as adjusted for the 5-for-4 stock split effected in the form of a 25% stock dividend in May 2006) shares
of common stock were made available for issuance to members of the Banks board of directors under the Nonstatutory Plan. In connection with the reorganization of the Bank into the holding company form of organization which resulted in the
creation of the Company, the 2005 Nonstatutory Plan
12
was adopted by the Company and options under that plan were converted into options to purchase shares of the Companys common stock. At the Companys 2008 annual meeting, the
shareholders approved the adoption of an amendment to the Nonstatutory Plan whereby an aggregate of 133,910 shares were added to the original 133,845 shares then reserved under the Nonstatutory Plan. At December 31, 2009, 243,911 options had
been granted under the Nonstatutory Plan. No options were granted under the 2005 Nonstatutory Plan during the fiscal year ended December 31, 2009.
The following table presents a summary of all compensation paid by the Company to its directors for their service as such during the year
ended December 31, 2009.
DIRECTOR COMPENSATION TABLE
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Name
|
|
Fees
Earned
or Paid
in Cash
|
|
Stock
Awards
|
|
Option
Awards
|
|
Non-equity
Incentive Plan
Compensation
|
|
Nonqualified
Deferred
Compensation
Earnings
|
|
All Other
Compensation
|
|
Total
|
|
|
|
|
|
|
|
|
Kenneth C. Appling
|
|
$
|
3,600
|
|
|
|
|
|
|
|
|
|
|
|
$
|
3,600
|
|
|
|
|
|
|
|
|
Joseph H. Morgan
|
|
$
|
6,300
|
|
|
|
|
|
|
|
|
|
|
|
$
|
6,300
|
|
|
|
|
|
|
|
|
Lawrence H. Pearson, MD
|
|
$
|
3,900
|
|
|
|
|
|
|
|
|
|
|
|
$
|
3,900
|
|
|
|
|
|
|
|
|
Wayne F. Shovelin
|
|
$
|
10,500
|
|
|
|
|
|
|
|
|
|
|
|
$
|
10,500
|
|
|
|
|
|
|
|
|
David W. White
|
|
$
|
5,100
|
|
|
|
|
|
|
|
|
|
|
|
$
|
5,100
|
Executive Officers
Set forth below is certain information regarding the executive officers of the Company and the Bank.
|
|
|
|
|
|
|
NAME
|
|
AGE
|
|
POSITION WITH
COMPANY AND BANK
|
|
BUSINESS EXPERIENCE
|
|
|
|
|
Daniel C. Ayscue
|
|
45
|
|
President and Chief Executive Officer of the Company and the Bank
|
|
Group Vice President of Corporate Lending, SouthTrust Bank. Commenced banking career in 1990. Active member of the Gaston County Chamber of Commerce subcommittee, The Public/Private
Partnership.
|
|
|
|
|
Roger A. Mobley
|
|
39
|
|
Executive Vice President and Chief Financial Officer of the Company and the Bank
|
|
Chief Financial Officer,
1
st
Financial Services Corporation and Mountain
1
st
Bank & Trust Company, 20082010. Certified
Public Accountant, Assurance and Advisory Senior Manager, Elliott Davis, PLLC, 20032008.
|
|
|
|
|
Eric L. Dixon
|
|
48
|
|
Senior Vice President and Senior Lending Officer of the Bank
|
|
Vice President of Lending, SouthTrust Bank. Twenty-plus years in banking.
|
13
|
|
|
|
|
|
|
Matthew J. Triplett
|
|
39
|
|
Senior Vice President and Chief Credit Officer of the Bank
|
|
Vice President and Commercial Account Manager, SouthTrust Bank. Commenced banking career in 1995 as a loan development officer in Shelby.
|
Executive Compensation
The following table shows cash and certain other compensation paid to or received or deferred by the Companys principal executive
officer and its next two most highly compensated executive officers for all services in all capacities during 2009 and 2008.
SUMMARY COMPENSATION TABLE
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Name and
Principal Position
|
|
Year
|
|
Salary
|
|
Bonus
|
|
Stock
Awards
|
|
Option
Awards
(1)
|
|
Non-Equity
Incentive Plan
Compensation
|
|
Nonqualified
Deferred
Compensation
Earnings
|
|
All
Other
Compensation
(2)
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
Daniel C. Ayscue,
President and
Chief Executive Officer
|
|
2009
2008
|
|
$135,000
132,792
|
|
|
|
|
|
$157,787
|
|
|
|
|
|
$21,045
27,887
|
|
$156,045
318,466
|
|
|
|
|
|
|
|
|
|
|
Eric Dixon,
Senior Vice President
of the Bank
|
|
2009
2008
|
|
$101,650
105,924
|
|
|
|
|
|
$81,644
|
|
|
|
|
|
$17,333
25,414
|
|
$118,983
212,982
|
|
|
|
|
|
|
|
|
|
|
Matthew J. Triplett,
Senior Vice President of the Bank
|
|
2009
2008
|
|
$90,950
95,982
|
|
|
|
|
|
$81,644
|
|
|
|
|
|
$16,977
23,715
|
|
$107,927
201,341
|
|
(1)
|
Calculated in accordance with FASB ASC Topic 718 and represents the fair value of each stock option award based on the market price of the Companys common stock
on the date of grant of such award. The values do not represent actual cash compensation earned. The assumptions used in estimating the fair value of options are set forth in note 13 to the Companys audited consolidated financial statements at
December 31, 2009.
|
|
(2)
|
Includes matching 401(k) contributions and the dollar value of premiums paid on behalf of the named executive officer for group term life, health, dental, and short-
and long-term disability insurance. In addition to compensation paid in cash, the executive officers of the Company and the Bank receive certain personal benefits. However, the aggregate value of such benefits received by Messrs. Ayscue, Triplett
and Dixon did not exceed $10,000 in each case.
|
Restrictions on Executive Compensation.
The Company is a
participant in the U.S. Department of the Treasurys TARP Capital Purchase Program. On January 23, 2009, the Company issued and sold to the Treasury shares of its preferred stock and a warrant to purchase common stock for an aggregate
purchase price of $3.5 million in cash. In connection with the Treasurys investment, the Company is required to place limitations on the compensation of its senior executive officers, applicable in certain situations. In that regard, each of
Messrs. Ayscue, Dixon, and Triplett executed a waiver whereby the executive voluntarily released the Company from any and all obligations to pay compensation prohibited by federal law and waived any present or future claims against the Company for
any changes to the executives regular, bonus, or incentive compensation or benefit-related arrangements, agreements, or policies and any other changes required to be made
14
by the Treasury. These officers have also entered into executive compensation modification agreements to ensure the Companys compliance with the laws and regulations governing the
Companys participation in the Capital Purchase Program. Furthermore, there are additional restrictions on Mr. Ayscue as the Companys most highly compensated employee. Specifically, the Company is prohibited from paying or accruing
any bonus, retention award or incentive compensation to Mr. Ayscue during the time the Treasury holds its investment in the Company.
Employment Agreements.
The Bank has entered into employment agreements with Daniel C. Ayscue as its president, Matthew J. Triplett
as a senior vice president and Eric Dixon as a senior vice president. The employment agreements establish the duties and compensation of each of the officers and provide for the officers continued employment with the Bank. The employment
agreements provide for an initial term of employment of one year, with provisions for a one-year extension on the anniversary of the date of execution. They also provide that each officer may be terminated for cause (as defined in the
employment agreements) by the Bank, and may otherwise be terminated by the Bank (subject to vested rights) or by each officer.
The employment agreements provide for annual base salary to be reviewed by the board of directors not less often than annually. In
addition, the employment agreements provide for discretionary bonuses, participation in other pension and profit-sharing retirement plans maintained by the Bank on behalf of its employees, as well as fringe benefits normally associated with the
officers respective offices or made available to all other employees.
The employment agreements provide that in the
event of a termination event within eighteen months after a change in control of the Bank the employee shall be able to terminate the agreement and receive 299% of his base amount of compensation. A termination event will
occur if (i) the employee is assigned any duties or responsibilities that are inconsistent with his position, duties, responsibilities or status at the time of the change in control or with his reporting responsibilities or title with the Bank
in effect at the time of the change in control; (ii) the employees annual base salary rate is reduced below the annual amount in effect as of the change in control; (iii) the employees life insurance, medical or hospitalization
insurance, disability insurance, stock option plans, stock purchase plans, deferred compensation plans, management retention plans, retirement plans or similar plans or benefits being provided by the Bank to the employee as of the date of the change
in control are reduced in their level, scope or coverage, or any such insurance, plans or benefits are eliminated, unless such reduction or elimination applies proportionately to all salaried employees of the Bank who participated in such benefits
prior to the change in control; or (iv) the employee is transferred to a location outside of Gastonia, North Carolina in the case of Messrs. Ayscue and Dixon and Shelby, North Carolina in the case of Mr. Triplett, without the
employees express written consent. A change in control of the Bank will occur if (i) any individual or entity, directly or indirectly, acquires beneficial ownership of voting securities or acquires irrevocable proxies or any combination
of voting securities and irrevocable proxies, representing 50% or more of any class of voting securities or the Bank, or acquires control in any manner of the election of a majority of the directors of the Bank; (ii) the Bank is consolidated or
merged with or into another corporation, association or entity where the Bank is not the surviving corporation; or (iii) all or substantially all of the assets of the Bank are sold or otherwise transferred to or are acquired by any other
corporation, association or other person, entity or group. The employment agreements also provide for restrictions on each officers right to compete with the Bank for a period of one year after termination of employment. Such noncompete
restrictions do not apply if the officer is
15
terminated with cause. In the event the employees employment is terminated and the employee is not entitled to any further benefits, the employment agreements provide that the employee
shall continue to receive salary compensation for an additional twelve months provided the employee abides by the noncompete restrictions. If after the expiration of the noncompete restrictions, the employee has not obtained new employment with
another financial institution, the Bank shall pay the employee as additional compensation his regular salary until he secures new employment or the expiration of six months, whichever is earlier.
Payments under these agreement are subject to reduction to the extent, and in the manner described under the heading Restrictions
on Executive Compensation above. The change in control benefits are not currently in effect, due to the provisions of the waivers executed by the executives and delivered to the Treasury and the executive compensation modification agreements
executed by the Company and the officers. As a result, had a change in control of the Company occurred on December 31, 2009, the officers would not have been entitled to any change in control benefits.
2005 Incentive Stock Option Plan
.
At the Banks 2005 annual meeting, the shareholders approved the adoption of
the Alliance Bank & Trust Company 2005 Incentive Stock Option Plan, which provides for the issuance of incentive stock options, as defined in Section 422 of the Internal Revenue Code. In connection with the reorganization of the Bank
into the holding company form of organization which resulted in the creation of the Company, the 2005 Incentive Plan was adopted by the Company and options under that plan were converted into options to purchase shares of the Companys common
stock. The Incentive Plan provides for the grant of stock options covering up to 267,755 shares of the Companys common stock, as adjusted following the 5-for-4 stock split effected in the form of a 25% stock dividend in May 2006 and subject to
adjustment for further stock dividends, stock splits or similar changes in capitalization. At the Companys 2008 annual meeting, the shareholders approved the adoption of an amendment to the Incentive Plan whereby an aggregate of 133,910 shares
were added to the original 133,845 shares currently reserved under the Incentive Plan. At December 31, 2009, 184,044 options had been granted under the Incentive Plan. No options were granted to the named executive officers under the 2005
Incentive Stock Option Plan during the fiscal year ended December 31, 2009.
Stock options are periodically granted under
the Incentive Plan to executive officers and other employees. All stock options authorized under the Incentive Plan are required to be granted with an exercise price not less than 100% of fair market value of our common stock on the date of the
grant.
The following table sets forth information regarding equity awards granted to Messrs. Ayscue, Triplett, and Dixon that
were outstanding as of December 31, 2009.
16
OUTSTANDING EQUITY AWARDS AT FISCAL YEAR-END
|
|
|
|
|
|
|
|
|
|
|
Name
|
|
No. of
Securities
Underlying
Unexercised
Options
Exercisable
|
|
No. of Securities
Underlying
Unexercised Options
Unexerciseable
|
|
|
Option Exercise
Price
|
|
Option Expiration
Date
|
|
|
|
|
|
Daniel C. Ayscue
|
|
10,239
10,391
|
|
6,826
41,565
|
(1)
(2)
|
|
$
|
8.80
7.00
|
|
May 1, 2016
November 3, 2018
|
|
|
|
|
|
Matthew J. Triplett
|
|
7,227
5,253
|
|
4,819
21,016
|
(1)
(2)
|
|
$
|
8.80
7.00
|
|
May 1, 2016
November 3, 2018
|
|
|
|
|
|
Eric Dixon
|
|
7,227
5,253
|
|
4,819
21,016
|
(1)
(2)
|
|
$
|
8.80
7.00
|
|
May 1, 2016
November 3, 2018
|
|
(1)
|
One-half of the remaining options are scheduled to become exercisable on each of May 1, 2010 and 2011.
|
|
(2)
|
One-fourth of the remaining options are scheduled to become exercisable on each of November 3, 2010, 2011, 2012, and 2013.
|
401(k) Savings Plan.
The Bank has a 401(k) plan covering employees. The Bank makes matching contributions on the first 3% of an
employees compensation which is contributed to the 401(k) plan. On employee contributions that exceed 3% of such employees compensation, the Bank makes matching contributions equal to 50% of such employee contributions up to an
additional 1.5% of such employees compensation.
Indebtedness of and Transactions with Management
The Bank has, and expects in the future to have, banking transactions in the ordinary course of business with certain of its or the
Companys current directors, nominees for director, executive officers and their associates. All loans included in such transactions will be made on substantially the same terms, including interest rates, repayment terms and collateral, as
those prevailing for comparable transactions with other persons at the time such loans were made, and will not involve more than the normal risk of collectibility or present other unfavorable features.
Loans made by the Bank to directors and executive officers are subject to the requirements of Regulation O of the Board of Governors of
the Federal Reserve System. Regulation O requires, among other things, prior approval of the board of directors with any interested director not participating, dollar limitations on amounts of certain loans and prohibitions on any
favorable treatment being extended to any director or executive officer in any of the Banks lending matters. To the best knowledge of the management of the Company and the Bank, Regulation O has been complied with in its entirety.
PROPOSAL 2: ADVISORY VOTE ON EXECUTIVE COMPENSATION
The Emergency Economic Stabilization Act of 2008 (EESA), as amended by the American Recovery and Reinvestment Act of 2009
requires that any proxy statement for an annual meeting
17
of the shareholders of any participant in the U.S. Department of the Treasurys TARP Capital Purchase Program include a separate proposal in its proxy statement for a non-binding shareholder
vote on the compensation paid to its executive officers, as disclosed pursuant to the compensation disclosure rules of the Securities and Exchange Commission. This say on pay proposal is required during the period in which any obligation
arising as a result of participation under the TARP Capital Purchase Program remains outstanding.
Accordingly, our board of
directors has proposed the following resolution for shareholder consideration:
Resolved, that the compensation paid or
provided to executive officers of AB&T Financial Corporation (the Company) and its subsidiary, and the Companys and its subsidiarys executive compensation policies and practices, as disclosed pursuant to the compensation
disclosure rules of the Securities and Exchange Commission in the tabular and narrative compensation disclosures contained in the Companys proxy statement for its 2010 annual meeting, hereby are ratified and approved.
As provided in EESA, the vote by our shareholders will be a non-binding, advisory vote. The vote will not be binding on our board of
directors or our compensation committee and will not overrule or affect any previous action or decision by the board or committee or any compensation previously paid or awarded, and it will not create or imply any additional duty on the part of the
board or committee. However, the board and the compensation committee will take the voting results on the proposed resolution into account when considering future executive compensation matters.
THE BOARD OF DIRECTORS BELIEVES THAT THE COMPANYS EXECUTIVE COMPENSATION POLICIES AND PRACTICES ARE ALIGNED WITH THE INTERESTS
OF OUR SHAREHOLDERS AND RECOMMENDS THAT SHAREHOLDERS VOTE
FOR
RATIFICATION OF THE RESOLUTION REGARDING EXECUTIVE COMPENSATION.
PROPOSAL 3: RATIFICATION OF INDEPENDENT REGISTERED PUBLIC
ACCOUNTING FIRM
The board of directors has appointed the firm of Elliott Davis, PLLC, as the Companys independent registered public accounting firm
for 2010. A representative of Elliott Davis is expected to be present at the annual meeting and available to respond to appropriate questions, and will have the opportunity to make a statement if he or she desires to do so.
The Company has paid Elliott Davis fees in connection with its assistance in the Companys annual audit and review of the
Companys financial statements. From time to time, the Company engages Elliott Davis to assist in other areas of financial planning. The following table sets forth the fees paid or expected to be paid to Elliott Davis by the Company in various
categories during 2009 and 2008.
18
|
|
|
|
|
|
|
Category
|
|
2009
Amount Billed
|
|
2008
Amount Billed
|
|
|
|
Audit
Fees:
(1)
|
|
$
|
66,200
|
|
$
|
59,850
|
Audit-Related
Fees:
(2)
|
|
|
10,300
|
|
|
|
Tax
Fees:
(3)
|
|
|
5,500
|
|
|
6,585
|
All Other Fees:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Fees Billed:
|
|
$
|
82,000
|
|
$
|
66,435
|
|
|
|
|
|
|
|
|
(1)
|
Audit fees consisted primarily of the audit of the Companys annual consolidated financial statements and for reviews of the condensed consolidated financial
statements included in the Companys quarterly reports on Form 10-Q.
|
|
(2)
|
Audit-related fees consisted primarily of services performed in connection with the application and initial accounting for the Companys
participation in the U.S. Department of the Treasury TARP Capital Purchase Program and of services performed in connection with the Companys merger agreement with
1
st
Financial Services Corporation, Hendersonville, North
Carolina, which was terminated on October 1, 2009.
|
|
(3)
|
Tax fees include fees billed for tax compliance, tax advice, and tax planning assistance.
|
All services rendered by Elliott Davis during 2009 and 2008 were subject to pre-approval by the audit committee.
THE BOARD OF DIRECTORS RECOMMENDS THAT SHAREHOLDERS VOTE
FOR
RATIFICATION OF ELLIOTT DAVIS, PLLC, AS THE
COMPANYS INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM FOR 2010
.
Internet and Electronic Availability of Proxy Materials
As required by applicable SEC rules and regulations, the Company has furnished a notice of internet availability of proxy
materials to all shareholders as part of this proxy statement and all shareholders will have the ability to access this proxy statement and the Companys annual report on Form 10-K for the fiscal year ended December 31, 2009, by logging on
at https://www.shareholderlink.com/fss/abtf/pxsignon.asp.
OTHER MATTERS
The board knows of no other business that will be brought before the annual meeting. Should other matters properly come before the
meeting, the proxies will be authorized to vote shares represented by each appointment of proxy in accordance with their best judgment on such matters.
PROPOSALS FOR 2011 ANNUAL MEETING
Shareholder Proposals for Inclusion in 2011 Proxy Statement.
It is anticipated that the 2011 annual meeting will be held on
a date during May or June 2011. To be eligible for inclusion in the proxy statement and appointment of proxy for the 2011 annual meeting, shareholder proposals must be received by the Company at its main office no later than the close of business on
January 25,
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2011. Proposals should be sent to AB&T Financial Corporation, Attn: Corporate Secretary, Post Office Box 1099, Gastonia, North Carolina 28053, and follow the procedures required by SEC Rule
14a-8.
Other Shareholder Proposals for Presentation at the 2011 Annual Meeting.
If a proposal for the 2011
annual meeting is not to be included in the proxy statement for that meeting, the proposal must be received by the Company at its main office no later than the close of business on April 11, 2011, for purposes of the proxies discretionary
authority to vote on other matters presented for action by shareholders at that meeting. The proxies will have discretionary authority to vote on any proposals received after April 11, 2011.
SHAREHOLDER COMMUNICATIONS
The Company does not currently have a formal policy regarding shareholder communications with the board of directors, however, any
shareholder may submit written communications to the Secretary of the Company, at the Companys main office whereupon such communications will be forwarded to the board of directors if addressed to the board of directors as a group or to the
individual director or directors addressed.
ADDITIONAL INFORMATION
THE COMPANYS 2009 ANNUAL REPORT ON FORM 10-K HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE COMMISSION. A COPY OF THAT REPORT
IMMEDIATELY FOLLOWS THIS PROXY STATEMENT. ADDITIONAL COPIES WILL BE PROVIDED WITHOUT CHARGE UPON THE WRITTEN REQUEST OF ANY SHAREHOLDER ENTITLED TO VOTE AT THE ANNUAL MEETING. REQUESTS FOR COPIES SHOULD BE DIRECTED TO THE CORPORATE SECRETARY,
AB&T FINANCIAL CORPORATION, POST OFFICE BOX 1099, GASTONIA, NORTH CAROLINA 28053. THE FORM 10-K IS ALSO AVAILABLE AT HTTPS://WWW.SHAREHOLDERLINK.COM/FSS/ABTF/PXSIGNON. ASP.
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REVOCABLE PROXY
AB&T FINANCIAL CORPORATION
292 West Main Avenue
Gastonia, North Carolina 28052
APPOINTMENT OF PROXY
SOLICITED BY BOARD OF DIRECTORS
The undersigned hereby appoints Kenneth C. Appling, Wayne F. Shovelin, and David W. White (the Proxies), or any of them, as attorneys and
proxies, with full power of substitution, to vote all shares of the common stock of AB&T Financial Corporation (the Company) held of record by the undersigned on May 12, 2010 at the annual meeting of shareholders of the Company
to be held at Myers Auditorium at Gaston College, 201 Highway 321 South, Dallas, North Carolina 28034, at 10:30 a.m. on June 22, 2010, and at any adjournments thereof. The undersigned hereby directs that the shares represented by this
appointment of proxy be voted as follows on the proposals listed below:
1.
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ELECTION OF DIRECTORS:
Proposal to elect one member of the board of directors of the Company for a three-year term.
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FOR
the nominee listed below
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WITHHOLD AUTHORITY
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(except as indicated otherwise below)
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to vote for the nominee listed below
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NOMINEE:
Joseph H. Morgan
2.
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RATIFICATION OF A NON-BINDING SHAREHOLDER RESOLUTION REGARDING EXECUTIVE COMPENSATION:
Proposal to ratify a non-binding shareholder resolution regarding
executive compensation.
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3.
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RATIFICATION OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
: Proposal to ratify the appointment of Elliott Davis, PLLC, as the Companys independent
registered public accounting firm for 2010.
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4.
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OTHER BUSINESS
: On such other matters as may properly come before the annual meeting, the proxies are authorized to vote the shares represented by this
appointment of proxy in accordance with their best judgment.
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THE SHARES REPRESENTED BY THIS APPOINTMENT OF PROXY WILL BE
VOTED BY THE PROXIES IN ACCORDANCE WITH THE SPECIFIC INSTRUCTIONS ABOVE. IN THE ABSENCE OF INSTRUCTIONS, THE PROXIES WILL VOTE SUCH SHARES FOR THE ELECTION OF THE NOMINEE LISTED IN PROPOSAL 1 AND FOR PROPOSALS 2 AND 3. IF, AT
OR BEFORE THE TIME OF THE MEETING, THE NOMINEE LISTED IN PROPOSAL 1 FOR ANY REASON HAS BECOME UNAVAILABLE FOR ELECTION OR UNABLE TO SERVE AS A DIRECTOR, THE PROXIES HAVE THE DISCRETION TO VOTE FOR A SUBSTITUTE NOMINEE. THIS APPOINTMENT OF PROXY MAY
BE REVOKED AT ANY TIME BEFORE IT IS EXERCISED BY FILING WITH THE SECRETARY OF THE COMPANY AN INSTRUMENT REVOKING IT OR A DULY EXECUTED APPOINTMENT OF PROXY BEARING A LATER DATE, OR BY ATTENDING THE ANNUAL MEETING AND REQUESTING THE RIGHT TO VOTE IN
PERSON.
TO VOTE AND APPOINT YOUR PROXY VIA THE INTERNET
Your Internet vote and appointment of proxy is quick, confidential and your vote is immediately submitted. Just follow these easy steps:
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1.
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Read the accompanying Proxy Statement.
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2.
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Visit https://www.shareholderlink.com/fss/abtf/pxsignon.asp
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3.
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When prompted for your Control Number, enter the 12-digit number printed above your name on the proxy card.
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Please note that all appointments and votes cast by Internet must be completed and submitted by 5:00 p.m. on June 21, 2010, which is one day prior
to the meeting date. Your Internet vote authorizes the named proxies to vote your shares to the same extent as if you marked, signed, dated and returned the proxy card. You may revoke your Internet appointment by revisiting our website and changing
your vote prior to 5:00 p.m. on June 21, 2010, or by any method sufficient to revoke an appointment of proxy as set forth above.
This is
a secured web page site. Your software and/or Internet provider must be enabled to access this site. Please call your software or Internet provider for further information if needed.
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Signature
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Signature (if held jointly)
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Instruction:
Please
sign above
exactly
as your name appears on this appointment of proxy. Joint owners of shares should
both
sign. Fiduciaries or other persons signing in a representative capacity should indicate the capacity in which they
are signing.
IMPORTANT: To ensure that a quorum is present, please send in your appointment of proxy whether or not you plan to attend the
annual meeting. Even if you send in your appointment of proxy you will be able to vote in person at the meeting if you so desire
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