Document:

ex10-17.htm

    
      
        

      

      Exhibit
10.17

       

    

    Ronald M.
Warner

     

    ENDORSEMENT
SPLIT-DOLLAR LIFE INSURANCE PLAN

     

    Effective
April 1, 2006

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    TABLE OF
CONTENTS

    
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	
              PAGE

            
	 
      	 
      	 
      	 
      	 
      
	
              ENDORSEMENT
      SPLIT-DOLLAR LIFE INSURANCE PLAN

            	 
      	
              1

            	 
      
	 	 	 	 	 
	
              1.

            	
              Purpose

            	 
      	
              1

            	 
      
	
              2.

            	
              Effective
      Date

            	 
      	
              1

            	 
      
	
              3.

            	
              Eligibility
      and Participation

            	 
      	
              1

            	 
      
	
              4.

            	
              Purchase
      of Life Insurance Policies

            	 
      	
              1

            	 
      
	
              5.

            	
              Policy
      Ownership

            	 
      	
              1

            	 
      
	
              6.

            	
              Division
      of Cash Surrender Value

            	 
      	
              1

            	 
      
	
              7.

            	
              Division
      of Death Proceeds

            	 
      	
              2

            	 
      
	
              8.

            	
              Beneficiary
      Designation

            	 
      	
              2

            	 
      
	
              9.

            	
              Premium
      Payments

            	 
      	
              2

            	 
      
	
              10.

            	
              Termination
      of Participation in the Plan

            	 
      	
              2

            	 
      
	
              11.

            	
              Named
      Fiduciary

            	 
      	
              3

            	 
      
	
              12.

            	
              Funding
      Policy

            	 
      	
              3

            	 
      
	
              13.

            	
              Claims
      Procedure

            	 
      	
              3

            	 
      
	
              14.

            	
              Amendment
      and Revocation

            	 
      	
              4

            	 
      
	
              15.

            	
              Insurance
      Company Not a Party to This Plan

            	 
      	
              4

            	 
      
	
              16.

            	
              Validity

            	 
      	
              4

            	 
      
	
              17.

            	
              Notices

            	 
      	
              4

            	 
      
	
              18.

            	
              Successors

            	 
      	
              4

            	 
      
	
              19.

            	
              Governing
      Law

            	 
      	
              4

            	 
      
	
              20.

            	
              Entire
      Plan

            	 
      	
              4

            	 
      
	
              21.

            	
              Not
      a Contract of Employment

            	 
      	
              5

            	 
      
	 
      	 
      	 
      	 
      	 
      
	
              SCHEDULE
      A

            	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	
              Participation
      Agreement

            	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	
              SCHEDULE
      B

            	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	
              Beneficiary
      Designation

            	 
      	 
      	 
      

    

     

    
      
         

      

      
        (i)

        
          

        

      

      
         

      

    

     

    ENDORSEMENT
SPLIT-DOLLAR LIFE INSURANCE PLAN

     

    This
Endorsement Split-Dollar Life Insurance Plan (the “Plan”) is established by
CharterBank, West Point, Georgia (“Employer”), for the benefit of certain highly
compensated or management employees of the Employer.

     

    1. 
           Purpose

     

    This Plan
is established as part of an integrated executive compensation program that is
in­tended to attract, retain and motivate certain key employees
(“Employees”) who are in a position to make significant contributions to the
operation and profitability of the Employer. This Plan provides a means by which
the Employer assists the Employee in purchasing life insurance on the Employee’s
life that provides a death benefit to the Employee’s personal
beneficiary.

     

    2.   
         Effective
Date

     

    This Plan
shall be effective as of April 1, 2006.

     

    3.     
       Eligibility and
Participation

     

    The Chief
Executive Officer of the Employer may designate any Employee eligible for the
Plan and the Board of Directors of the Employer (“Board”) may approve such
designation. Provided the Board has approved an Employee’s eligibility for the
Plan, such Employee may agree to participate in the Plan by completing a
Participation Agreement and Beneficiary Designation Form as set forth in
Schedules A and B; provided, however, participation and all benefits under this
Plan are subject to the actual purchase of a life insurance Policy under Section
4.

     

    4.       
     Purchase of Life Insurance Policies

     

    Employer
shall use its best efforts to purchase one (1) or more life insurance policies
on the life of each Employee in an amount sufficient to provide for the benefits
outlined in Section 7 of the Plan; provided, however, that the Employer shall
retain the absolute right to decline to purchase a Policy on the life of any
Employee for any reason whatsoever. Each policy purchased shall be subject to
the terms and conditions of the Plan (“Policy”).

     

    5.         
   Policy Ownership

     

    Employer
shall be the sole and absolute owner of any Policy and may exercise all
ownership rights granted to the owner thereof by the terms of the Policy, except
as may otherwise be limited by this Plan.

     

    6.           
 Division of Cash Surrender Value

     

    Employer
shall at all times be entitled to all cash values under the terms of the Policy.
Employee shall have no right, at any time, to the cash value of the
Policy.

     

    PAGE 1 -
ENDORSEMENT SPLIT-DOLLAR LIFE INSURANCE PLAN

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    7.          
  Division of Death Proceeds

     

    Except as
provided in Section 10 herein, upon the death of Employee, the proceeds of the
Policy shall be divided as follows:

     

    (a)           Employee’s Share. Each Employee’s
Beneficiary shall be entitled to one hundred thousand dollars ($100,000.00) as
of the Employee’s date of death.

     

    (b)           Employer’s Share. The Employer shall be
entitled to the remainder of the death proceeds.

     

    (c)           Division of Interest. Employer and Beneficiary
shall share in any interest due with respect to the death proceeds on a pro-rata
basis as the proceeds due each respectively bears to the total proceeds,
excluding any such interest.

     

    8. 
           Beneficiary
Designation

     

    Employee
shall have the right and power to designate a person, persons or entity
(“Beneficiary”) to receive Employee’s share of the proceeds payable upon his
death and to elect and change a payment option for such Beneficiary, subject to
any right or interest the Employer may have in such proceeds, as provided in
this Plan. If no valid Beneficiary designation has been filed with the Employer,
upon Employee’s death, the Beneficiary will be deemed to be the Employee’s
estate.

     

    9.   
         Premium
Payments

     

    (a)           Subject
to Employer’s absolute right to surrender or terminate the Policy at any time
and for any reason, Employer shall pay an amount equal to the planned premiums
and any other premium payments that might become necessary to keep the Policy in
force.

     

    (b)           Employer
shall annually furnish to Employee a statement of the amount reportable by
Employee for federal and state income tax purposes, if any, as a result of the
insurance protection provided.

     

    (c)           Employee
shall have no right to make any premium payment to the Policy at any
time.

     

    10.          Termination
of Participation in the Plan

     

    (a)           Upon
the occurrence of any one (1) of the following, an Employee’s participation in
this Plan shall terminate and all death proceeds shall thereafter be paid solely
to the Employer:

     

    (i)           Employee
terminates employment with Employer for any reason;

     

    (ii)          Total
cessation of Employer’s business;

     

    (iii)         Bankruptcy,
receivership or dissolution of Employer;

     

    PAGE 2 -
ENDORSEMENT SPLIT-DOLLAR LIFE INSURANCE PLAN

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    (iv)           Receipt
by Employer of written notification of a request to terminate Participation
Agreement from Employee;

     

    (v)      
     Surrender, lapse, or other termination of the
Policy on the life of Employee by Employer; or

     

    (vi)           Distribution
of the death proceeds in accordance with Section 7 of this Plan.

     

    11.          Named
Fiduciary

     

    Employer
is hereby designated as the named fiduciary under this Plan. As named fiduciary,
Em­ployer shall be responsible for and have the authority to manage the
operation and administration of this Plan, and it shall be responsible for
establishing and carrying out a funding policy and method consistent with the
objectives of this Plan. The named fiduciary may delegate to others certain
aspects of the management and operation responsibilities of the Plan, including
the employment of advisors and the delegation of any ministerial duties to
qualified individuals.

     

    12.          Funding
Policy

     

    Subject
to Employer’s absolute right to surrender or terminate the Policy at any time
and for any reason, the funding policy for this Plan shall be to maintain each
Policy in force by paying, when due, all premiums required.

     

    13.          Claims
Procedure

     

    (a)           Any
person claiming a benefit, requesting an interpretation or ruling under this
Plan, or requesting information under this Plan shall present the request in
writing to Employer, which shall respond in writing within a reasonable period
of time, but not later than ninety (90) days after receipt of the
request.

     

    (b)           Denial of Claim. If the claim
or request is denied, the written notice of denial shall state:

     

    (i)           The
reason for denial, with specific reference to the provisions in the Plan on
which the denial is based;

     

    (ii)           A
description of any additional material or information required and an
expla­nation of why it is necessary; and

     

    (iii)           An
explanation of the Plan’s claims review procedure.

     

    (c)           Review of Claim. Any person
whose claim or request is denied may request a review by notice given to
Employer within sixty (60) days following receipt of notification of the adverse
determination. The claim or request shall be reviewed by Employer which may, but
shall not be required to, grant the claimant a hearing. On review, the claimant
may have representation, examine pertinent documents, and submit issues and
comments in writing.

     

    PAGE 3 -
ENDORSEMENT SPLIT-DOLLAR LIFE INSURANCE PLAN

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    (d)           Final Decision. The decision
on review shall normally be made within sixty (60) days. If an extension of time
is required for a hearing or other special circumstances, the claimant shall be
notified within such sixty (60) day period of an extension which shall not be
for more than an additional sixty (60) days. The Employer’s decision shall be
delivered in writ­ing to Employee and shall state the reason and the
relevant provisions in the Plan for the deci­sion. All decisions on review
shall be final and bind all parties concerned.

     

    14.          Amendment
and Revocation

     

    This Plan
may be amended or revoked at any time, in whole or in part, by the
Employer.

     

    15.          Insurance
Company Not a Party to This Plan

     

    Each
insurer shall be fully discharged from its obligations under the Policy by
payment of the Policy death benefit to the Beneficiary named in the Policy,
subject to the terms and conditions of the Policy. In no event shall any insurer
be considered a party to this Plan, or any modification or amend­ment
hereof.

     

    16.          Validity

     

    If any
provision of this Plan is held illegal, invalid or unenforceable, the remaining
provisions shall nonetheless be enforceable according to their terms. Further,
in the event that any provision is held to be overbroad as written, such
provision shall be deemed amended to narrow its application to the extent
necessary to make the provision enforceable according to law and enforced as
amended.

     

    17.          Notices

     

    All
notices shall be in writing, and shall be sufficiently given if delivered to the
Employer at its principal place of business, or to the Employee at his last
known address as shown in Employer’s re­cords, in person, by Federal Express
or similar receipted delivery, or, if mailed, postage prepaid, by certified
mail, return receipt requested. The date of such mailing shall be deemed the
date of notice, demand or consent.

     

    18.          Successors

     

    The
provisions of this Plan shall bind and inure to the benefit of Employer and its
successors and assigns, and Employee and his heirs, successors and personal
representatives.

     

    19.          Governing
Law

     

    The
provisions of this Plan shall be construed and interpreted according to the laws
of the State of Georgia, except as preempted by federal law.

     

    20.          Entire
Plan

     

    This
written document is the final and exclusive statement of the terms of the Plan,
and any claim of right or entitlement under the Plan shall be determined in
accordance with its provisions.

     

    PAGE
4 - ENDORSEMENT
SPLIT-DOLLAR LIFE INSURANCE PLAN

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    21.          Not
a Contract of Employment

     

    The terms
and conditions of the Plan shall not be deemed to constitute a
contract of employ­ment between the Employer and any Employee, and an
Employee (or his Beneficiary) shall have no rights against the Employer except
as may be otherwise provided specifically herein. Moreover, noth­ing in the
Plan shall be deemed to give an Employee (the right to be retained in the service
of Employer or to interfere with the right of the Employer to discipline or
discharge any Employee at any time.

     

    IN
WITNESS WHEREOF, the Employer has caused this Plan to be executed by its duly
author­ized officers effective as of April 1, 2006.

    
      	 
      	 
      	 
      
	 
      	 
      	
              CHARTERBANK

            
	 
      	 
      	 
      
	 
      	
              By:

            	
              /s/
      Curtis Kollar

            
	 
      	 
      	 
      
	 
      	 
      	
              CFO

            
	 
      	 
      	
              Title

            
	 
      	 
      	 
      
	 
      	
              Date:  
      

            	
              6-13-06

            

    

     

    PAGE 5 -
ENDORSEMENT SPLIT-DOLLAR LIFE INSURANCE PLANex10-18.htm

    
      

    

    Exhibit
10.18

     

    ENDORSEMENT
SPLIT-DOLLAR

     

    AGREEMENT

     

    Effective
June 1, 2006

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    TABLE OF
CONTENTS

    
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	
              Page

            
	 	 	 
	
              AGREEMENT

            	 
      	
              1

            
	 
      	 
      	 
      
	
              1.

            	
              Effective
      Date

            	 
      	
              1

            
	
              2.

            	
              Purchase
      of Policy

            	 
      	
              1

            
	
              3.

            	
              Policy
      Ownership

            	 
      	
              1

            
	
              4.

            	
              Beneficiary
      Designation

            	 
      	
              1

            
	
              5.

            	
              Division
      of Cash Surrender Value

            	 
      	
              2

            
	
              6.

            	
              Division
      of Death Proceeds

            	 
      	
              2

            
	
              7.

            	
              Premium
      Payments

            	 
      	
              2

            
	
              8.

            	
              Termination
      of Agreement

            	 
      	
              2

            
	
              9.

            	
              Named
      Fiduciary

            	 
      	
              3

            
	
              10.

            	
              Funding
      Policy

            	 
      	
              3

            
	
              11.

            	
              Claims
      Procedure

            	 
      	
              3

            
	
              12.

            	
              Amendment
      and Revocation

            	 
      	
              4

            
	
              13.

            	
              Insurance
      Company Not a Party to This Agreement

            	 
      	
              4

            
	
              14.

            	
              Validity

            	 
      	
              4

            
	
              15.

            	
              Notices

            	 
      	
              4

            
	
              16.

            	
              Successors

            	 
      	
              4

            
	
              17.

            	
              Governing
      Law

            	 
      	
              5

            
	 
      	 
      	 
      	 
      
	
              SCHEDULE
      A

            	 
      	 
      
	 
      	 
      	 
      
	
              Beneficiary
      Designation

            	 
      	 
      

    

    
      
         

      

      
        (i) 

        
          

        

      

      
         

      

    

     

    ENDORSEMENT
SPLIT-DOLLAR

     

    AGREEMENT

     

    This
Endorsement Split-Dollar Agreement (“Agreement”) made and entered into by and
between CharterBank, West Point, Georgia (“Employer”) and David Z. Cauble
(“Director”);

     

    WHEREAS,
Director is considered a key person by Employer; and

     

    WHEREAS,
Director has agreed to permit Employer to purchase a life insurance policy on
Director’s life; and

     

    WHEREAS,
the parties have further agreed to divide the death benefit between the Employer
and the Director’s Beneficiary;

     

    NOW,
THEREFORE, in consideration of the premises and of the mutual promises contained
herein, the parties hereto agree as follows:

     

    1.      
      Effective Date

     

    The
Effective Date of this Agreement shall be June 1, 2006.

     

    2.            Purchase
of Policy

     

    Employer
has purchased the following policies (“Policy”) on the life of Director which
shall be subject to the terms and conditions of this Agreement:

    
      	 
      	 
      	 
      
	
              1

            	 
      	
              2

            
	
              Insurer

            	 
      	
              Policy

              Number

            
	
              NYLIC

            	 
      	
              56612267

            

    

     

    3.            Policy
Ownership

     

    Employer
shall be the sole and absolute owner of the Policy, and may exercise all
ownership rights granted to the owner thereof by the terms of the Policy, except
as may otherwise be limited by this Agreement.

     

    4.            Beneficiary
Designation

     

    Director
shall have the right and power to designate a person, persons or entity
(“Beneficiary”) to receive Director’s share of the proceeds payable upon his
death, subject to any right or interest the Employer may have in such proceeds,
as provided in this Agreement. If no valid Beneficiary designation has been
filed with the Employer, upon Director’s death, the Beneficiary will be deemed
to be the Director’s estate.

     

    PAGE 1 -
ENDORSEMENT SPLIT-DOLLAR
AGREEMENT

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    5.            Division
of Cash Surrender Value

     

    Employer
shall at all times be entitled to all cash values under
the terms of the Policy. Director shall have no right, at any time, to the cash
value of the Policy.

     

    6.            Division
of Death Proceeds

     

    The
division of the death proceeds of the Policy is as follows:

     

    (a)           Director’s Share. Upon the death of Director,
the Beneficiary shall be entitled to one hundred thousand dollars
($100,000).

     

    (b)           Employer’s Share. The Employer shall be
entitled to the remainder of such death proceeds.

     

    (c)           Division of Interest. Employer and Beneficiary
shall share in any interest due with respect to the death proceeds on a pro-rata
basis as the proceeds due each respectively bears to the total proceeds,
excluding any such interest.

     

    7.            Premium
Payments

     

    (a)           Subject
to Employer’s absolute right to surrender or terminate the Policy at any time
and for any reason, Employer shall pay an amount equal to the planned premiums
and any other premium payments that might become necessary to keep the policy in
force.

     

    (b)          Employer
shall annually furnish to Director a statement of the amount reportable by
Director for federal and state income tax purposes, if any, as a result of the
insurance protection provided.

     

    (c)           Director
shall have no right to make any premium payment to the Policy at any
time.

     

    8.            Termination
of Agreement

     

    Upon the
occurrence of any one (1) of the following, the Director’s participation in this
Plan shall terminate and all death proceeds shall thereafter be paid solely to
the Employer:

     

    (a)           Director
terminates service on Employer’s Board for any reason;

     

    (b)           Total
cessation of Employer’s business;

     

    (c)           Bankruptcy,
receivership or dissolution of Employer;

     

    (d)           Receipt
by Employer of written notification of a request to terminate this Agreement
from
Director;

     

    (e)           Surrender,
lapse, or other termination of the Policy by Employer; or

     

    (f)           Distribution
of the death proceeds in accordance with Section 6 of this
Agreement.

     

    PAGE 2 -
ENDORSEMENT SPLIT-DOLLAR AGREEMENT

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    9.            
Named Fiduciary

     

    Employer
is hereby designated as the named fiduciary under this Agreement. As named
fiduciary, Employer shall be responsible for and have the authority to manage
the operation and administration of this Agreement, and it shall be responsible
for establishing and carrying out a funding policy and method consistent with
the objectives of this Agreement. The named fiduciary may delegate to others
certain aspects of the management and operation responsibilities of the
Agreement, including the employment of advisors and the delegation of any
ministerial duties to qualified individuals.

     

    10.          Funding
Policy

     

    Subject
to Employer’s absolute right to surrender or terminate the Policy at any time
and for any reason, the funding policy for this Agreement shall be to maintain
the Policy in force by paying, when due, all premiums required.

     

    11.          Claims
Procedure

     

    (a)          Any
person claiming a benefit, requesting an interpretation or ruling under this
Agreement, or requesting information under this Agreement shall present the
request in writing to Employer, which shall respond in writing within a
reasonable period of time, but not later than ninety (90) days after receipt of
the request.

     

    (b)           Denial of Claim. If the claim or request
is denied, the written notice of denial shall state:

     

    (i)           The
reason for denial, with specific reference to the provisions in the Agreement on
which the denial is based;

     

    (ii)          A
description of any additional material or information required and an
explanation of why it is necessary; and

     

    (iii)         An
explanation of the Agreement’s claims review procedure.

     

    (c)          Review of Claim. Any person whose claim or request is denied
may request a review by notice given to Employer within sixty (60) days
following receipt of notification of the adverse determination. The claim or
request shall be reviewed by Employer which may, but shall not be required to,
grant the claimant a hearing. On review, the claimant may have representation,
examine pertinent documents, and submit issues and comments in
writing.

     

    (d)          Final Decision. The decision on review shall normally be made
within sixty (60) days. If an extension of time is required for a hearing or
other special circumstances, the claimant shall be notified within such sixty
(60) day period of an extension which shall not be for more than an additional
sixty (60) days. The Employer’s decision shall be delivered in writing to
Director and shall state the reason and the relevant provisions in the Agreement
for the decision. All decisions on review shall be final and bind all parties
concerned.

     

    PAGE 3 -
ENDORSEMENT SPLIT-DOLLAR AGREEMENT

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    12.          Amendment
and Revocation

     

    Subject
to Employer’s absolute right to surrender or terminate the Policy at any time
and for any reason, it is agreed by and between the parties hereto that, during
Director’s lifetime, this Agreement may be amended or revoked at any time, in
whole or in part, by the mutual written consent of the Director and
Employer.

     

    13.          Insurance
Company Not a Party to This Agreement

     

    Insurer
shall be fully discharged from its obligations under the Policy by payment of
the Policy death benefit to the Beneficiary named in the Policy, subject to the
terms and conditions of the Policy. In no event shall Insurer be considered a
party to this Agreement, or any modification or amendment hereof.

     

    14.          Validity

     

    If any
provision of this Agreement is held illegal, invalid or unenforceable, the
remaining provisions shall nonetheless be enforceable according to their terms.
Further, in the event that any provision is held to be overbroad as written,
such provision shall be deemed amended to narrow its application to the extent
necessary to make the provision enforceable according to law and enforced as
amended.

     

    15.          Notices

     

    All
notices shall be in writing, and shall be sufficiently given if delivered to the
Employer at its principal place of business, or to the Director at his last
known address as shown in Employer’s records, in person, by Federal Express or
similar receipted delivery, or, if mailed, postage prepaid, by certified mail,
return receipt requested. The date of such mailing shall be deemed the date of
notice, demand or consent.

     

    16.          Successors

     

    The
provisions of this Agreement shall bind and inure to the benefit of Employer and
its successors and assigns, and Director and his heirs, successors, personal
representatives and assigns.

     

    PAGE 4 -
ENDORSEMENT SPLIT-DOLLAR AGREEMENT

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    17.         
Governing Law

     

    The
provisions of this Agreement shall be construed and interpreted according to the
laws of the State of Georgia, except as preempted by federal law.

     

    IN
WITNESS WHEREOF, the parties hereto acknowledge that each has carefully read
this Agreement and executed the original thereof on the date set forth below,
and that upon execution, each has received a conforming copy.

    
      	 
      	 
      	 
      
	 
      	 
      	
              CHARTERBANK

            
	 
      	 
      	 
      
	 
      	
              BY:

            	
              /s/
      Curtis Kollar

            
	 
      	 
      	 
      
	 
      	 
      	
              CFO

            
	 
      	 
      	
              Title

            
	 
      	 
      	 
      
	 
      	
              Date:   
      

            	
              6-13-06

            
	 
      	 
      	 
      
	 
      	 
      	
              DAVID
      Z. CAUBLE

            
	 	 	 
	 
      	 
      	/s/
      David Z. Cauble
	 
      	 
      	 
      
	 
      	
              Date:

            	
              6/26/06

            

    

     

    PAGE 5 -
ENDORSEMENT SPLIT-DOLLAR AGREEMENT

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