ATLANTIC COAST BANK AMENDED AND RESTATED SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN

This Amended and Restated Atlantic Coast Bank Supplemental Executive Retirement Plan (the “Plan”) was originally established on November 1, 2002, and was amended and restated effective October 1, 2004, and most recently is amended and restated by this document, effective January 1, 2005, in order to comply with Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”) and the 2007 final regulations issued thereunder.

The purpose of the Plan is to provide supplemental retirement benefits to those members of senior management who have contributed significantly to the success and growth of Atlantic Coast Bank (the “Bank”) and its holding company, Atlantic Coast Federal Corporation (the “Company”) (and any successors thereto), and the Bank’s predecessor, Atlantic Coast Federal Credit Union, whose services are vital to its continued growth and success in the future and who are to be encouraged to remain a valuable part of our future success.

1.1            Eligibility .  Each individual who is selected by the Plan Administrator shall be eligible to participate in the Plan.  Such individuals are “Participants.”  The Plan is intended to only be available to a select group of management or highly compensated employees, and as such, is intended to be a “top hat” plan that for purposes of the Employee Retirement Income Security Act of 1974, as amended.

1.2            Vesting .  Participants shall be 100% vested in their benefits under this Plan upon completion of one hundred and twenty (120) full months of service as a full-time employee of the Bank on or after November 1, 2002, whether continuous or otherwise.  Except as provided in Section 2.4(b) or unless the Plan Administrator accelerates vesting, which is entirely in the sole discretion of the Plan Administrator, until completing such service requirement, Participants are 0% vested in benefits under the Plan.  Notwithstanding the preceding provisions, any Participant who resigns at the request of, or is removed from service by, the Office of Thrift Supervision, Federal Deposit Insurance Corporation or any other regulatory authority for the Bank, shall be ineligible to participate and shall forfeit any benefits under this Plan.

(a)           Upon Separation from Service (as defined below) at or after age sixty-five (65) (“Normal Retirement Age”), the Bank shall pay the Participant a “Normal Retirement Benefit” of twenty thousand dollars ($20,000) per year, payable annually, commencing on January 1 ^st of the year following Separation from Service and on each anniversary thereafter for a period of twenty (20) years (the “Benefit Period”).  Notwithstanding the preceding sentence, to the extent a Participant is a “Specified Employee” (as defined below), solely to the extent necessary to avoid penalties under Code Section 409A, payment shall be delayed until the first day of the seventh month following the Participant’s Separation from Service.

(b)           “Separation from Service” means the Participant’s retirement or termination of employment with the Bank.  No Separation from Service shall be deemed to occur due to military leave, sick leave or other bona fide leave of absence if the period of such leave does not exceed six (6) months or, if longer, so long as the Participant’s right to reemployment is provided by law or contract.  If the leave exceeds six (6) months and the Participant’s right to reemployment is not provided by law or by contract, then the Participant shall have a Separation from Service on the first date immediately following such six-month period. Whether a termination of employment has occurred is determined based on whether the facts and circumstances indicate that the Bank and the Participant reasonably anticipated that no further services would be performed after a certain date or that the level of bona fide services the employee would perform after such date (whether as an employee or as an independent contractor) would permanently decrease to no more than 20% of the average level of bona fide services performed over the immediately preceding 36 months (or such lesser period of time in which the Participant has provided services for the Bank).  The determination of whether a Participant has a Separation from Service shall be made by applying the presumptions set forth in the Treasury Regulations under Code Section 409A.

(c)           “Specified Employee” means an employee of the Bank or Company who is also a “key employee” as such term is defined in Code Section 416(i), without regard to Paragraph 5 thereof, but only if the Bank or the Company (or any successors) is a publicly traded company.

2.2            Early Retirement.

(a)           Upon Separation from Service on or after age fifty-five (55) (“Early Retirement Age”), but before Normal Retirement Age, each Participant shall receive an “Early Retirement Benefit” instead of a Normal Retirement Benefit.  In order to determine the amount of the Early Retirement Benefit, for each year that the Participant’s Early Retirement Age is less than the Normal Retirement Age, the Normal Retirement Benefit shall be reduced by one thousand dollars ($1,000) per year.  For purposes of calculating the Early Retirement Benefit, the Participant’s age shall be determined at the end of the calendar year preceding the year in which Early Retirement Benefits will begin.  For example, a Participant who Separates from Service at age sixty (60) would receive fifteen thousand dollars ($15,000) per year for twenty (20) years commencing January 1 ^st in the year following the calendar year in which the Participant’s Separation from Service occurred.

(b)           Early Retirement Benefits shall be payable annually, commencing on January 1 ^st of the year following the Participant’s Separation from Service and on each anniversary thereafter for a period of twenty (20) years (the “Benefit Period”).  Notwithstanding the preceding sentence, to the extent a Participant is a Specified Employee, solely to the extent necessary to avoid penalties under Code Section 409A, payment shall be delayed until the first day of the seventh month following the Participant’s Separation from Service.

2.3            Death During Benefit Period .   If the Participant dies within the Normal Retirement or Early Retirement Benefit Period, the remaining annual payments due the Participant shall continue be paid to the Participant’s “Beneficiary” (as defined below) in the same time and form as payments were being made to the Participant.

“Beneficiary” means the person(s) designated by the Participant on the form set forth at Appendix A to receive any death benefits hereunder.  If the Participant has not designated a Beneficiary, the Participant’s spouse shall be the Beneficiary. In the absence of any surviving Beneficiary or spouse, the benefits shall be paid to the Participant’s estate.

2.4            Death Before Separation from Service

(a)            Death After Vesting .   In the event the Participant is fully vested in his or her benefits hereunder and dies prior to Separation from Service but before beginning to receive an Early Retirement Benefit or Normal Retirement Benefit, the Bank agrees to pay to the Participant’s Beneficiary the Normal Retirement Benefit that the