Document:

QuickLinks
 -- Click here to rapidly navigate through this document
 

 

 
 

EXHIBIT 10.11    
    

DIRECTOR SUPPLEMENTAL RETIREMENT PLAN  

 AGREEMENT  

           THIS AGREEMENT is made and entered into
this                        day
of                                    , 2005, by and between
Citizens Trust Bank, a bank organized and existing under the laws of the State of Georgia (hereinafter referred to as the "Bank"),
and                                    , a member of the Board of
Directors of the Bank
(hereinafter referred to as the "Director"). 

           WHEREAS, the Director is now serving on the Board of the Bank (hereinafter referred to as the "Board") and has for many years faithfully
served the Bank. It is the consensus of the Board of Directors that the Director's services have been of exceptional merit, in excess of the compensation. paid and an invaluable contribution to the
profits and position of the Bank in its field of activity. The Board further believes that the Director's experience, knowledge of corporate affairs, reputation and industry contacts are of such
value, and the Director's continued services so essential to the Bank's future growth and profits, that it would suffer severe financial loss should the Director terminate his/her service on the
Board; 

           ACCORDINGLY, the Board has adopted the Citizens Trust Bank Director Supplemental Retirement Plan (hereinafter referred to as the
"Director Plan") and it is the desire of the Bank and the Director to enter into this Agreement under which the Bank will agree to make certain payments to the Director upon the Director's retirement
and to the Director's beneficiary(ies) in the event of the Director's death pursuant to the Director Plan; 

           FURTHERMORE, it is the intent of the parties hereto that this Director Plan be considered an unfunded arrangement maintained primarily to
provide supplemental retirement benefits for the
Director, and to be considered a non-qualified benefit plan for purposes of—the Employee Retirement Income Security Act of 1974, as amended ("ERISA"). The Director is fully
advised of the Bank's financial status and has had substantial input in the design and operation of this benefit plan; and 

           THEREFORE, in consideration of services the Director has performed in the past and those to be performed in the future, and based upon
the mutual promises and covenants herein contained, the Bank and the Director agree as follows: 

I.        DEFINITIONS  

	A.
	Effective Date:

The
Effective Date of the Director Plan shall be December 22, 2004. 

	B.
	Plan Year.

Any
reference to the "Plan Year" shall mean a calendar year from January 1st to December 31st. In the year of implementation, the term "Plan Year" shall mean the period from the
Effective Date to December 31st of the year of the Effective Date. 

	C.
	Retirement Date:

Retirement
Date shall mean retirement from service with the Bank which becomes effective on the first day of the calendar month following the month in which the Director reaches age
sixty-five (65) or such later date as the Director may actually retire. 

1

 

	D.
	Termination of Service:

Termination
of Service shall mean the Director's voluntary resignation from service on the Board or failure to be re-elected to the Board, prior to the Normal Retirement Age
(Subparagraph I [J]). 

	E.
	Pre-Retirement Account:

A
Pre-Retirement Account shall be established as a liability reserve account on the books of the Bank for the benefit of the Director. Prior to the Director's Retirement Date
(Subparagraph I [C]), such liability reserve account shall be increased or decreased each Plan Year (including the Plan Year in which the Director ceases to serve on the
Board) by an amount equal to the annual earnings or loss for that Plan Year determined by the Index (Subparagraph I [G] hereinafter), less the Cost of Funds Expense for
that Plan Year Subparagraph I [HJ hereinafter). 

	F.
	Index Retirement Benefit:

The
Index Retirement Benefit for each Director in the Director Plan for each Plan Year shall be equal to the excess (if any) of the Index (Subparagraph I [G]) for that
Plan Year over the Cost of Funds Expense (Subparagraph I [H]) for that Plan Year. 

	G.
	Index:

The
Index for any Plan Year shall be the aggregate annual after-tax income from the life insurance contract(s) described hereinbelow as defined by FASB Technical Bulletin 85-4.
This Index shall be applied as if such insurance contracts were purchased on the Effective Date of the Director Plan. 

	Insurance Company:	 	Massachusetts Mutual Life Insurance Company
	Policy Form:	 	Flexible Premium Adjustable Life
	Policy Name:	 	Strategic Life Executive
	Insured's Age and Sex:	 	 
	Riders:	 	None
	Ratings:	 	None
	Option:	 	Level
	Face Amount:	 	 
	Premiums Paid:	 	 
	Number of Premium Payments:	 	Single
	Assumed Purchase Date:	 	 

If
such contracts of life insurance are actually purchased by the Bank, then the actual policies as of the dates they were actually purchased shall be used in calculations under this Director Plan. If
such contracts of life insurance are not purchased or are subsequently surrendered or lapsed, then the Bank shall receive annual policy illustrations that assume the above-described policies were
purchased, or. had not subsequently surrendered or lapsed. Said illustrations shall be received from the respective insurance companies and will indicate the increase in policy values for purposes of
calculating the amount of the Index. 

In
either case, references to the life insurance contracts are merely for purposes of calculating a benefit. The Bank has no obligation to purchase such life insurance and, if purchased, the Director
and the Director's beneficiary(ies) shall have no ownership interest in such policy and shall always have no greater interest in the benefits under this Director Plan than that of an unsecured
creditor of the Bank. 

2

 

	H.
	Cost of Funds Expense:

The
Cost of Funds Expense for any Plan Year shall be calculated by taking the sum of the amount of premiums set forth in the Indexed policy described above plus the amount of any after-tax
benefits paid to any Director pursuant to the Plan (Paragraph II hereinafter) plus the amount of all previous years after-tax Costs of Funds Expense, and multiplying that sum by the
average after-tax cost of funds as calculated using the Bank's third quarter Call Report for the Plan Year as filed with the Federal Reserve. 

	I.
	Change of Control:

Change
of Control shall be defined as follows: 

	a.
	the
acquisition of more than fifty percent (50%) of the value or voting power of the Bank's stock by a person or group;

	b.
	the
acquisition in a period of twelve months or less of at least thirty-five percent (35%) of the Bank's stock by a person or group;

	c.
	the
replacement of a majority of the Bank's board in a period of twelve months or less by Directors who were not endorsed by a majority of the current board members; or

	d.
	the
acquisition in a period of twelve months or less of forty percent (40%) or more of the Bank's assets by an unrelated entity. 

For
the purposes of this Director Plan, transfers on account of deaths or gifts, transfers between family members or transfers to a qualified retirement plan maintained by the Bank shall not be
considered in determining whether there has been a Change of Control. 

	J.
	Normal Retirement Age.,

Normal
Retirement Age shall mean the date on which the Director attains age sixty-five (65). 

II.       INDEX BENEFITS  

	A.
	Retirement Benefits:

Subject
to Subparagraph II (D) hereinafter, a Director who remains on the Board until the Normal Retirement Age (Subparagraph I [J]) shall be entitled to
receive the balance in- the Pre-Retirement Account in ten (10) equal annual installments commencing thirty (30) days following the Director's retirement. In
addition to these payments and commencing in conjunction therewith, the Index Retirement Benefit (Subparagraph I [F]) for each Plan Year subsequent to the Director's
retirement, and including the remaining portion of the Plan Year in which the Director retires, shall be paid to. the Director until the Director's death and continue after the Director's death to the
Director's beneficiary(ies) as set forth in Subparagraph 11(C) hereinafter. 

	B.
	Termination of Service:

Subject
to Subparagraph II (D) hereinafter, should a Director suffer a Termination of Service (defined in Subparagraph I [D]), the Director shall be
entitled to receive the appropriate percentage times the number of full years of service on the board of the Bank from the date of this plan implementation (to a maximum of 100%) from the following
table, times the balance in the Pre-Retirement Account, paid over ten (10) years in equal 

3

 

annual
installments commencing at the Director's Retirement Date (Subparagraph I [C]). In addition to these payments, the same appropriate percentage (to a maximum of
100%) times the number of full years of service on the board of the Bank from the date of this plan implementation as referred to above, times the Index Retirement Benefit for each Plan Year shall be
paid to the Director until the Director's death and continue after the Director's death to the Director's beneficiary(ies) as set forth in Subparagraph II (C) hereinafter. 

	Total Years of Service with the Bank
 
	 	Vested

(to a maximum of 100%)
	 
	0 - 5	 	0	%
	6 - 10	 	25	%
	11 - 15	 	50	%
	16 - 20	 	75	%
	21	 	100	%

	C.
	Death:

Should
the Director die prior to having received the full balance of the Pre-Retirement Account, the unpaid balance of the Pre-Retirement Account shall be immediately paid
in a lump sum to the beneficiary selected by the Director and filed with the Bank. Said payment due hereunder shall be made the fast day of the second month following the decease of the Director. 

In
the absence of or a failure to designate a beneficiary, the amounts described herein shall be paid to the personal representative of the Director's estate. 

	D.
	Discharge for Cause:

Should
the Director be discharged for cause at any time prior to his Retirement Date, all Benefits under this Agreement (Subparagraphs II [A],
[B] or [C]) shall be forfeited. The term "for cause" shall mean gross negligence or gross neglect or the commission of a felony or gross misdemeanor
involving fraud, dishonesty or willful violation of any law that result in any adverse effect on the bank. If a dispute arises as to discharge "for cause", such dispute shall be resolved by
arbitration as set forth in this Agreement. 

	E.
	Death Benefit:

Except
as set forth above, there is no death benefit provided under this Agreement. 

	F.
	Disability:

Should
the Director suffer a Termination of Service because of a disability, as defined hereinbelow, he shall immediately become one hundred percent (100%) vested and shall immediately begin receiving
the retirement benefit described in Subparagraph II (A), without regard to Normal Retirement Age (Subparagraph I [J]). Disability shall be defined as the Director
not being able to attend at least seventy percent (70%) of the meetings of the Board of Directors due to a physician certified disability condition. If there is a dispute regarding whether the
Director is disabled, such dispute shall be resolved by a physician selected by the Bank and such resolution shall be binding upon all parties to this Agreement. If there is a dispute regarding
whether the Director is disabled, such dispute shall be resolved by a physician mutually selected by the Bank and the Director and such resolution shall be binding upon all parties to this Agreement. 

4

 

III.     DEFERRAL BENEFITS  

	A.
	Deferral Election:

Any
Director wishing to defer any portion or all of his director fees may elect to defer up to one hundred percent (10090) each year for a maximum of five (5) years. At the end of the five
(5) year period the Board of Directors shall have the option of extending the deferral period for any amount of time it shall deem to be appropriate. The Director will make the election to
defer by filing with the Bank a written statement setting forth the amount of the deferrals. This statement must be filed in the calendar year prior to having earned the deferred income. In the case
of the first year in which a participant becomes eligible to participate, the election to defer fees and compensation may only be made for fees and compensation not yet earned as of the. date of said
election, if the election is made within thirty (30) days of the participant becoming eligible for the Plan. At any other time, the election to defer fees and compensation must be made no later
than the close of the preceding taxable year. Signed written statements filed under this section, unless modified or revoked, shall be valid for all succeeding years. Any modification or revocation of
the Deferral section of the Election Form as elected by the participant in the signed written statement must be in writing at least twelve (12) months prior to the date of the first scheduled
payment and shall not be effective earlier than twelve (12) months after the modification is made. Additionally, such modification may extend the deferral period for a period of at least five
(5) additional years from the date the distribution was scheduled to begin. 

	B.
	Deferred Compensation Account:

The
Bank shall establish a Deferred Compensation Account in the name of the Director and credit that account with the deferrals. The Bank shall also credit interest to the Deferred Compensation
Account balance on December 31st of each year. The interest rate credited shall be one hundred percent (100%) of the one year treasury rate as of the crediting date to a: minimum of six
percent (6%). 

	C.
	Retirement, Termination of Service or Death:

Upon
the Director's Retirement Date or Termination of Service from the Board (Subparagraphs I (C) and (D) hereinabove), the balance of the Director's Deferred Compensation Account
shall be payable, thirty (30) days following said event, as elected by the Director. The Director shall be entitled to make a one (1) time election of his deferral distribution payment
within thirty (30) days of executing this Agreement. Should the Director fail to make said payment election, then the Director shall be paid in ten (10) equal annual installments as set
forth herein. Should the Director die while there is a balance in the Director's Deferred Compensation Account, such balance shall be paid pursuant to Subparagraph II (C) hereinabove. 

IV.      RESTRICTIONS UPON FUNDING  

The
Bank shall have no obligation to set aside, earmark or entrust any fund or money with which to pay its obligations under this Director Plan. The Directors, their beneficiary(ies), or any successor
in interest shall be and remain simply a general creditor of the Bank in the same manner as any other creditor having a general claim for matured and unpaid compensation. 

The
Bank reserves the absolute right, at its sole discretion, to either fund the obligations undertaken by this Director Plan or to refrain from funding the same and to determine the extent, nature
and method of such funding. Should the Bank elect to fund this Director Plan, in 

5

 

whole
or in part, through the purchase of life insurance, mutual funds, disability policies or annuities, the Bank reserves the absolute right, in its sole discretion, to terminate such funding at any
time, in whole or in part. At no time shall any Director be deemed to have any lien nor right, title or interest in or to any specific funding investment or to any assets of the Bank. 

If
the Bank elects to invest in a life insurance, disability or annuity policy upon the life of the Director, then the Director, shall assist the Bank by freely submitting to a physical exam and
supplying such additional information necessary to obtain such insurance or annuities. 

V.        CHANGE OF CONTROL  

Upon
a Change of Control (Subparagraph I [I]), if the Director subsequently suffers a Termination of Service (Subparagraph I. [D]), then
the Director shall receive the benefits promised in this Director Plan upon attaining Normal Retirement Age, as if the Director had been continuously serving the Bank until the Director's Normal
Retirement Age. The Director will also remain eligible for all promised death benefits in this Director Plan. In addition, no sale, merger, or consolidation of the Bank shall take place unless the new
or surviving entity expressly acknowledges the obligations under this Director Plan and agrees to abide by its terms. 

VI.      MISCELLANEOUS  

	A.
	Alienability and Assignment Prohibition:

Neither
the Director, nor the Director's surviving spouse, nor any other beneficiary(ies) under this Director Plan shall have any power or right to transfer, assign, anticipate, hypothecate, mortgage,
commute, modify or otherwise encumber in advance any of the benefits payable hereunder nor shall any of said benefits be subject to seizure for the payment of any debts, judgments, alimony or separate
maintenance owed by the Director or the Director's beneficiary(ies), nor be transferable by operation of law in the event of bankruptcy, insolvency or otherwise. In the event the Director or any
beneficiary attempts assignment, commutation, hypothecation, transfer or disposal of the benefits hereunder, the Bank's liabilities shall forthwith cease and terminate. 

	B.
	Binding Obligation of the Bank and My Successor in Interest:

The
Bank shall not merge or consolidate into or with another bank or sell substantially all of its -assets to another bank, firm or person until such bank, firm or person expressly agree, in writing,
to assume and discharge the duties and obligations of the Bank under this Director Plan. This Director Plan shall be binding upon the parties hereto, their successors, beneficiaries, heirs and
personal representatives. 

	C.
	Amendment or Revocation:

Subject
to Paragraph VIII, it is agreed by and between the parties hereto that, during the lifetime of the Director, this Director Plan may be amended or revoked at any time or times, in whole
or in part, by the mutual written consent of the Director and the Bank. 

	D.
	Gender:

Whenever.
in this Director Plan words are used in the masculine or neuter gender, they shall be read and construed as in the masculine, feminine or neuter gender, whenever they should so apply. 

6

 

	E.
	Effect on Other Bank Benefit Plans:

Nothing
contained in this Director Plan shall affect the right of the Director to participate in or be covered by any qualified or non-qualified pension, profit-sharing, group, bonus or
other supplemental compensation or fringe benefit plan constituting a part of the Bank's existing or future compensation structure. 

	F.
	Headings:

Headings
and subheadings in this Director Plan are inserted for reference and convenience only and shall not be deemed a part of this Director Plan. 

	G.
	Applicable Law:

The
validity and interpretation of this Agreement shall be governed by the laws of the State of Georgia. 

	H.
	12 U.S.C. § 1828(k): 

Any
payments made to the Director pursuant to this Director Plan, or otherwise, are subject to and conditioned upon their compliance with 12 U.S.C. § 1828(k) or any regulations
promulgated thereunder. 

	I
	Partial Invalidity: 

If
any term, provision, covenant, or condition of this Director Plan is determined by an arbitrator or a court, as the case may be, to be invalid, void, or unenforceable, such determination shall not
render any other term, provision, covenant, or condition invalid, void, or unenforceable, and the Director Plan shall remain in full force and effect notwithstanding such partial invalidity. 

	J.
	Continuation as Director:

Neither
this Agreement nor the payment of any benefits thereunder shall be construed as giving to the Director any right to be retained as a member of the Board of Directors of the Bank. 

VII.    ERISA PROVISION  

	A.
	Named Fiduciary and Plan Administrator:

The
"Named Fiduciary and Plan Administrator" of this Director Plan shall be Citizens Trust Bank. As Named Fiduciary and Plan Administrator, the Bank shall be responsible for the management, control
and administration of the Director Plan. The Named Fiduciary may delegate to others certain aspects of the management and operation responsibilities of the Director Plan including the employment of
advisors and the delegation of ministerial duties to qualified individuals. 

	B.
	Claims Procedure and Arbitration:

In
the event a dispute arises over benefits under this Director Plan and benefits are not paid to the Director (or to the Director's beneficiary(ies) in the case of the Director's death) and such
claimants feel they are entitled to receive such benefits, then a written claim must be made to the Named Fiduciary and Plan Administrator named above within sixty (60) days from the date
payments are refused. The Named Fiduciary and Plan 

7

 

Administrator
shall review the written claim and if the claim is denied, in whole or in part, they shall provide in writing within sixty (60) days of receipt of such claim the specific reasons
for such denial, reference to the provisions of this Director Plan upon which the denial is based and any additional material or information necessary to perfect the claim. Such written notice shall
further indicate the additional steps to be taken by claimants if a further review of the claim denial is desired. A claim shall be deemed denied if the Named Fiduciary and Plan Administrator fail to
take any action within the aforesaid sixty-day period. 

If
claimants desire a second review they shall notify the Named Fiduciary and Plan Administrator in writing within sixty (60) days of the fist claim denial. Claimants may review this Director
Plan or any documents relating thereto and submit any written issues and comments it may feel appropriate. In their sole discretion, the Named Fiduciary and Plan Administrator shall then review the
second claim and provide a written decision within sixty (60) days of receipt of such claim. This decision shall likewise state the specific reasons for the decision and shall include reference
to specific provisions of the Plan Agreement upon which the decision is based. 

If
claimants continue to dispute the benefit denial based upon completed performance of this Director Plan or the meaning and effect of the terms and conditions thereof, then claimants may submit the
dispute to an arbitrator for final arbitration. The arbitrator shall be selected by mutual agreement of the Bank and the claimants. The arbitrator shall operate under any generally recognized set of
arbitration rules. The parties hereto agree that they and their heirs, personal representatives, successors
and assigns shall be bound by the decision of such arbitrator with respect to any controversy properly submitted to it for determination. 

Where
a dispute arises as to the Bank's discharge of the Director "for cause," such dispute shall likewise be submitted to arbitration as above described and the parries hereto agree to be bound by
the decision thereunder.* 

VIII.   TERMINATION OR MODIFICATION OF AGREEMENT BY REASON OF CHANGES IN THE LAW, RULES OR REGULATIONS  

The
Bank is entering—into this Agreement upon the assumption that certain existing tax laws, rules and regulations will continue in effect in their current form. If any said assumptions
should change and said change has a detrimental effect on this Director Plan, then the Bank reserves—the right to terminate or modify this Agreement accordingly. Upon a Change of Control
(Subparagraph I [1]), this paragraph shall become null and void effective immediately upon said Change of Control. 

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

	 	 	CITIZENS TRUST BANK

Atlanta, Georgia
	

 	
 	

 
	
 Witness	 	
 (Bank Officer other than insured)            Title    
	

 	
 	

 
	
 Witness	 	

8

 

  JOINT BENEFICIARY DESIGNATION  

 AGREEMENT  

	Insurer:	 	Massachusetts Mutual Life Insurance Company
	

Policy Number:	
 	

 
	

Bank:	
 	

Citizens Trust Bank
	

Insured:	
 	

 
	

Relationship of Insured to Bank:	
 	

Director

The
respective rights and duties of the Bank and the Insured in the above-referenced policy shall be pursuant to the terms set forth below: 

I.         DEFINITIONS  

Refer
to the policy contract for the definition of any terms in this Agreement that are not defined herein. If the definition of a term in the policy is inconsistent with the definition of a term in
this Agreement, then the definition of the term as set forth in this Agreement shall supersede and replace the definition of the terms as set forth in the policy. 

II.        POLICY TIME AND OWNERSHIP  

Title
and ownership shall reside in the Bank for its use and for the use of the Insured all in accordance with this Agreement. The Bank alone may, to the extent of its interest, exercise the right to
borrow or withdraw on the policy cash values. Where the Bank and the Insured (or assignee, with the consent of the Insured) mutually agree to exercise the right to increase the coverage under the
subject Joint Beneficiary Designation policy, then, in such event, the rights, duties and benefits of the parties to such increased coverage shall continue to be subject to the terms of this
Agreement. 

III.      BENEFICIARY DESIGNATION RIGHTS  

The.
Insured (or assignee) shall have the right and power to designate a beneficiary or beneficiaries to receive the Insured's share of the proceeds payable upon the death of the Insured, and to elect
and change a payment option for such beneficiary, subject to any right or interest the Bank may have in such proceeds, as provided in this Agreement. 

IV.        PREMIUM PAYMENT METHOD  

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

V..        TAXABLE BENEFIT  

Annually
the Insured will receive a taxable benefit equal to the assumed cost of insurance as required by the Internal Revenue Service. The Bank (or its administrator) will report to the Insured the
amount of imputed income each year on Form 1099 or its equivalent. 

1

 

VI.       DIVISION OF DEATH PROCEEDS  

Subject
to Paragraphs VII and IX herein, the division of the death proceeds of the policy is as follows: 

	A.
	Should
the Insured be serving on the Board of the Bank, retired or terminated due to disability at the time of death, the Insured's beneficiary(ies), designated in accordance with
Paragraph III, shall be entitled to an amount equal to eighty percent (80%) of the net-at-risk insurance portion of the proceeds. The net-at-risk
insurance portion is the total proceeds less the cash value of the policy.

	B.
	Should
the Insured not be serving on the Board of the Bank at the time of death, the Insured's beneficiary(ies), designated in accordance with Paragraph III, shall be entitled
to the percentage as set forth hereinbelow of the proceeds described in Subparagraph VI (A) above that corresponds to the number of full years the Insured has been employed by the Bank
from the date of first service on the Board of the Bank: 

	Total Full Years of Service with the Bank
 
	 	Vested

(to a maximum of 100%)
	 
	0 - 5	 	0	%
	6 - 10	 	25	%
	11 - 15	 	50	%
	16 - 20	 	75	%
	21	 	100	%

	C.
	The
Bank shall be entitled to the remainder of such proceeds.

	D.
	The
Bank and the Insured (or assignees) shall share in any interest due on the death proceeds on a pro rata basis as the proceeds due each respectively bears to the total proceeds,
excluding any such interest. 

VII.     DIVISION OF THE CASH SURRENDER VALUE OF THE POLICY  

The
Bank shall at all times be entitled to an amount equal to the policy's cash value, as that term is defined in the policy contract, less any policy loans and unpaid interest or cash withdrawals
previously incurred by the Bank and any applicable surrender charges. Such cash value shall be determined as of the date of surrender or death as the case may be. 

VIII.    RIGHTS OF PARTIES WHERE POLICY ENDOWMENT 'OR ANNUITY ELECTION EXISTS  

In
the event the policy involves an endowment or annuity element, the Bank's right and interest in any endowment proceeds or annuity benefits, on expiration of the deferment period, shall be
determined under the provisions of this Agreement by regarding such endowment proceeds or the commuted value of such annuity benefits as the policy's cash value. Such endowment proceeds or annuity
benefits shall be considered to be like death proceeds for the purposes of division under this Agreement. 

IX.       TERMINATION OF AGREEMENT  

	A.
	This
Agreement shall terminate upon the occurrence of any one of the following:

	1.
	The
Insured shall leave the service on the Board of the Bank (voluntarily or involuntarily) prior to five (5) full years of service on the Board of the Bank from the date of
first service on the Board of the Bank; or 

2

 

	2.
	The
Insured shall be discharged from service on the Board of the Bank for cause. The term "for cause" shall mean gross negligence or gross neglect or he commission of a felony or gross
misdemeanor involving fraud, dishonesty; or willful violation of any law that result in any adverse effect on the bank; or

	3.
	Surrender,
lapse, or other termination of the Policy by the Bank, and subject to the Insured's option as set forth hereinbelow.

	B.
	Upon
such termination of this Agreement but prior to the termination of the policy by the Bank, the Insured (or assignee) shall have a fifteen (15) day option to receive from
the Bank an absolute assignment of the policy in consideration of a cash payment to the Bank, whereupon this Agreement shall terminate. Such cash payment referred to hereinabove shall be the greater
of

	1.
	The
Bank's share of the cash value of the policy on the date of such assignment, as defined in this Agreement; or

	2.
	The
amount of the premiums that have been paid by the Bank prior to the date of such assignment.

	C.
	If,
within said fifteen (15) day period, the Insured fails to exercise said option, fails to procure the entire aforestated cash payment, or dies, then the option shall
terminate and the Insured (or assignee) agrees that. all of the insured's rights, interest and claims in the policy shall terminate as of the date of the termination of this Agreement.

	D.
	The
Insured expressly agrees that this Agreement shall constitute sufficient written notice to the Insured of the Insured's option to receive an absolute assignment of the policy as
set forth herein.

	E.
	Except
as provided above, this Agreement shall terminate upon distribution of the death benefit proceeds in accordance with Paragraph VI above. 

X.        INSURED'S OR ASSIGNEE'S ASSIGNMENT RIGHTS  

The
Insured may not, without the written consent of the Bank, assign to any individual, trust or other organization, any right, title or interest in the subject policy nor any rights, options,
privileges or duties created under this Agreement. 

XI.       AGREEMENT BINDING UPON THE PARTIES  

This
Agreement shall bind the Insured and the Bank, their heirs, successors, personal representatives and assigns. 

VIII.    ADMINISTRATIVE AND CLAIMS PROVISIONS  

The
following provisions are part of this Agreement. and are intended to meet the requirements of the Employee Retirement Income Security Act of 1974 ("ERISA"): 

	A.
	Named Fiduciary and Plan Administrator:

The
"Named Fiduciary and Plan Administrator" of this Joint Beneficiary Designation Agreement shall be Citizens Trust Bank. As Named Fiduciary and Plan Administrator, the Bank shall be responsible for
the management, control, and administration of this Split Dollar Plan as established herein. 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. 

3

 

	B.
	Basis of Payment of Benefits:

Direct
payment by the Insurer is the basis of payment of benefits under this Agreement, with those benefits in turn being based on the payment of premiums as provided in this Agreement. 

	C.
	Claim Procedures:

Claim
forms or claim information as to 'the subject policy can be obtained by contacting Ben-nark, Inc. (800-544-6079). When the Named Fiduciary has a claim
which may be covered under the provisions described in the insurance policy, they should contact the office named above, and they will either complete a claim form and forward it to an authorized
representative of the Insurer—or advise the named Fiduciary what further requirements are necessary. The Insurer will evaluate and make a decision as to payment. If the claim is payable, a
benefit check will be issued in accordance with the terms of this Agreement. 

In
the event that a claim is not eligible under the policy, the Insurer will notify the Named Fiduciary of the denial pursuant to the requirements under the terms of the policy. If the Named Fiduciary
is dissatisfied with the denial of the claim and wishes to contest such claim denial, they should contact the office named above and they will assist in making an inquiry to the Insurer. All
objections to the Insurer's actions should be in writing and submitted to the office named above for transmittal to the Insurer. 

XIII.    GENDER  

Whenever
in this Agreement words are used in the masculine or neuter gender, they shall be read and construed as in the masculine, feminine or neuter gender, whenever they should so apply. 

XIV.     INSURANCE COMPANY NOT A PARTY TO THIS AGREEMENT  

The
Insurer shall not be deemed a parry to this Agreement, but will respect the rights of the parties as herein developed upon receiving an executed copy of this Agreement. Payment or other
performance in accordance with the policy provisions shall fully discharge the Insurer from any and all liability. 

XV.      CHANGE OF CONTROL  

Change
of Control shall be defined as follows: 

	a.
	the
acquisition of more than fifty percent (50%) of the value or voting power of the Bank's stock by a person or group;

	b.
	the
acquisition in a period of twelve months or less of at least thirty-five percent (35%) of the Bank's stock by a person or group;

	c.
	the
replacement of a majority of the Bank's board in a period of twelve. months or less by Directors who were not endorsed by a majority of the current board members; or

	d.
	the
acquisition in a period of twelve months or less of forty percent (40%) or more of the Bank's assets by an unrelated entity. 

For
the purposes of this Agreement, transfers on account of death or gifts, transfers between family members, or transfers to a qualified retirement plan maintained by the Bank shall not be considered
in determining whether there has been a Change of Control. Upon a Change of 

4

 

Control,
if the Insured's service on the Board of the Bank is subsequently terminated, except for cause, then the Insured shall be one hundred percent (10096) vested in the benefits promised in this
Agreement and, therefore, upon the death of the Insured, the Insured's beneficiary(ies) (designated in accordance with Paragraph III) shall receive the death benefit provided herein as if the
Insured had died while employed by the Bank (see Subparagraph VI [A]). 

XVI.    AMENDMENT OR REVOCATION, AND EXCHANGE OF POLICY  

Subject
to the Bank'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 the lifetime of the
Insured, this Agreement may be amended or revoked at any time or times, in whole or in part, by the mutual written consent of the Insured and the -Bank. 'The Bank may, however,
unilaterally and without the consent of the Insured, exchange any life insurance policy(ies) that are the subject matter of this Agreement, with or without replacing said policy(ies) and, in the event
of a same or similar exchange, the Insured expressly agrees to the same. 

XVII.   EFFECTIVE DATE  

The
Effective Date of this Agreement shall be December 22, 2004. 

XVIII. SEVERABILITY AND INTERPRETATION  

If
a provision of this Agreement is held to be 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. 

XIX.    TERMINATION OR MODIFICATION OF AGREEMENT BY REASON OF CHANGES IN THE LAW, RULES OR REGULATIONS  

The
Bank is entering into this Agreement upon the assumption that certain existing tax laws, rules and regulations will continue in effect in their current form. If any said assumptions should change
and said change has a detrimental effect on this Joint Beneficiary Designation Agreement, then the Bank reserves the right to terminate or modify this Agreement accordingly. Upon a Change of Control
(Paragraph XV), this paragraph shall become null and void effective immediately upon said Change of Control. 

XX.     APPLICABLE LAW  

The
laws of the State of Georgia shall govern the validity and interpretation of this Agreement. 

Executed
at Atlanta, Georgia this                        day
of                                    , 2005 

	 	 	CITIZENS TRUST BANK

Atlanta, Georgia
	

 	
 	

 
	
 Witness	 	
 (Bank Officer other than insured)            Title    
	

 	
 	

 
	
 Witness	 	

5

QuickLinks

EXHIBIT 10.11QuickLinks
 -- Click here to rapidly navigate through this document
 

 

 
 

EXHIBIT 10.12    
    

EXECUTIVE SUPPLEMENTAL RETIREMENT PLAN  

 AGREEMENT  

           This Agreement, made and entered into
this                        Day
of                                    , 2003, by and between Citizens
Trust Bank, a Bank organized and existing under
the laws of the State of Georgia, hereinafter referred. to as "the Bank",
and                                    , a Key Employee and the
Executive of the Bank, hereinafter referred to as "the Executive".
 

           The
Executive has been in the employ of the Bank for several years and has now and for years past faithfully served the Bank. It is the consensus of the Board of Directors of the Bank
(Ire Board) that the Executive's services have been of exceptional merit, in excess of the compensation paid and -an invaluable contribution to the profits and position of the Bank in its
field of activity. The Board further believes that the Executive's experience., knowledge of corporate affairs, reputation and industry contacts are. of such value and his continued services are so
essential to the Bank's future growth and profits that it would sear severe financial loss should the Executive terminate his services. 

           Accordingly,
it is the desire of -the Bank and the Executive to enter into this Agreement wader which the Bank will agree to make certain payments to the Executive upon his
retirement and, alternatively, to his beneficiary(ies) in the event of his premature death while employed by the Bank. 

           It
is the intent of the parties hereto that this Agreement be considered an management maintained primarily to provide supplemental retirement benefits for the Executive, as a member of
a select group of management or highly-compensated employees of the Bank for purposes of the Employee Retirement Income Security Act of 1974 (ERISA). The Executive is fully advised of the Bank's
financial status and has had substantial input in the design and operation of this benefit plan. 

           Therefore,
in consideration of the Executive's services performed in the past and those to be performed, in the future and based upon the mutual promises and cow herein contained, the
Bank and the Executive, agree as follows: 

I.        DEFINITIONS.  

	A.
	Effective Date:

The
Effective Date of this Agreement shall be July 31, 2003. 

	B.
	Plan Year:

Any
reference to "Plan Year" shall mean a calendar year from January 1 to December 31. In the year of implementation, the term "Plan Year" shall mean the period from the effective date
to December 31 of the year of the effective date. 

	C.
	Retirement Date:

Retirement
Date shall mean retirement from service with the Bank which becomes effective on the first day of the calendar month following the month iu which the Executive reaches his sixty-fifth
(65th) birthday or such later daze as the Executive may actually retire. 

	D.
	Termination of Service.

Termination
of Service: shall mean voluntary resignation of service by the. Executive or the Bank's discharge of the Executive without cause ("cause" defined in Subparagraph III
(D) hereinafter), prior to the Normal Retirement Age (Subparagraph I (J) hereinafter). 

1

 

	E.
	Pre-Retirement Account:

A
Pre-Retirement Account shall be established as a liability reserve account on the books of the Bank for. the benefit of the Executive. Prior to the Executive's retirement, such liability
reserve account shall be increased or decreased each Plan Year (including the Plan Year in which the Executive ceases to be employed by the Bank) by au amount equal to the annual earnings or loss for
that Plan Year determined by the Index (described in Subparagraph I(G) hereinafter), less' the Cost of Funds Expense for that Plan Year (described in Subparagraph I(H) hereinafter): 

	F.
	Index Retirement Benefit:

The
Index Retirement Benefit for the Executive for any year shall be equal to the excess of the annual earnings (if any) determined- by the Index [Subparagraph I (G)]
for that Plan Year over the Cost of Funds Expense -[Subparagraph h (H)] for that Plan Year, divided. by a factor equal to 1.07 minus the marginal tax rate. 

	G.
	Index:

The
Index for any Plan Year shall be the aggregate annual after-tax income from the life insurance contracts described hereinafter as defined by FASB Technical Bulletin 85-4.
This Index shall be applied as if such insurance contracts were purchased on the effective date hereof. 

	Insurance Company:	 	Security Life of Denver
	Policy Form:	 	Flexible Premium Adjustable Life
	Policy Name:	 	Executive UL
	Insured's Age and Sex:	 	 
	Riders:	 	None
	Ratings:	 	None
	Option:	 	Level
	Face Amount:	 	 
	Premiums Paid:	 	 
	Number of Premium Payments:	 	Single
	Assumed Purchase Date:	 	 

If
such contacts of life insurance are actually purchased. by the Bank then the actual policies as of the dates hey were purchased shall be used in calculations under this Agreement. If such contracts
of life insurance are not purchased or are subsequently surrendered or lapsed, then the Bank shall receive annual policy illustrations that assume the above described policies were purchased from the
above named insurance company(ies) on the Effective Dote from which the increase in policy value will be used to calculate the amount of the Index. 

In
either case, references. to the life insurance contract are merely for purposes of calculating a benefit. The Bank has no obligation to purchase such life insurance and, if purchased, the Executive
and his beneficiary(ies) shall have no ownership interest in such policy and shall always have no greater interest in the benefits under this Agreement than that o£ an unsecured general
creditor of the Bank. 

2

 

	H.
	Cost of Funds Expense:

The
Cost of Funds Expense for any Plan Year shall be calculated by taking the sum of the amount of premiums set forth in the Indexed policies described above plus the amount of any
after-tax benefits paid to thin Executive pursuant to this Agreement plus the amount of all previous years after-talc Costs of Funds Expense, and multiplying that sum by the
average after-tag cost of funds of the Bank's third quarter Call Report for the Plan Year as filed with the Federal Reserve. 

	I.
	Change of Control:

Change
of Control shall be deemed to be the cumulative transfer of more than fifty percent (50•0) of the voting stock of the Bank Holding Company from the Effective Date of this Agreement.
For the purposes of this Agreemea4 transfers on account of deaths or gifts, transfers between family members or transfers to a qualified retirement plan maintained by the Bank shall not be considered
in determining whether there has been a change in control. 

	J.
	Normal Retirement Age:

Normal
Retirement Age shall mean the date on which the Executive attains age sixty-five (65). 

II.       EMPLOYMENT  

No
provision of this Agreement shall be deemed to restrict or limit any existing employment agreement by and between the Bank and the Executive, nor-shall any conditions herein create
specific employment rights to the Executive nor limit the right of the Employer to discharge the Executive with -oar without cause. In a similar fashion, no provision shall limit the
Executive's rights to voluntarily sever his employment at anytime. 

III      INDEX BENEFITS  

The
following benefits provided by the Hank to the Executive are in the name of a fringe benefit and shall in no event be construed to effect nor limit the Executive's current or prospective salary
increases, cash bonuses or profit sharing distributions or credits. 

	A.
	Retirement Benefits.

Should
the Executive continue to be employed by Bank until his "Normal Retirement Age" defined in Subparagraph I (J), he shall be entitled to receive the-balance in his
Pre-Retirement in Subparagraph I (E)] in ten (10) equal annual installments commencing thirty (30) days following the Executive's addition to these
payments, commencing with the. Plan Year in which the Executive attains his Retirement Date, the Index Retirement Benefit (as defined in Subparagraph I (F) above) for each year shall be
paid to the Executive, until his death. 

	B.
	Termination of Service:

Subject
to Subparagraph III (D) hereinafter, should the Executive suffer a termination of service [defined in Subparagraph I (D)), he shall be entitled to receive the
appropriate percentage times the number of full years of employment from the date of this plan implementation (to a maximum of 100%) from the following table, times the balance in the
Pre-Retirement Account (to a maximum of 100%) paid over ten (10) years in equal 

3

 

installments
commencing at the Retirement Date [Subparagraph I (C)]. In addition to these payments, the same percentage times the number of full years of employment from
the date of this plan implementation as referred to above, tunes the Index Retirement Benefit for each year (to a maximum of 100%) shall be paid to the Executive until his death. 

	Total Years of Service with the Bank
 
	 	Vested

(to a maximum of 100%)
	 
	0 - 5	 	0	%
	more than 5 - 10	 	25	%
	more than 10 - 15	 	50	%
	more than 15 - 20	 	75	%
	more than 20	 	100	%

	C.
	Death:

Should
the Executive die prior to having received the full balance of the Pre-Retirement Account, the unpaid balance of the Pre-Retirement Account shall be paid in a lump sum
to the beneficiary selected by the Executive and filed with the Bank. In the absence of or a failure to designate a beneficiary, the unpaid balance shall be paid in a lump sum to the personal we of
the Executive's estate. 

	D.
	Discharge for Cause:

Should
the Executive be discharged for cause at any, time prior to his Retirement Date, all Index Benefits under this Agreement [Subparagraphs III (A), (B). or (C)]
shall be forfeited. The term "for cause" shall mean gross negligence or gross neglect or the conviction of a felony or gross misdemeanor involving moral turpitude, fiend, dishonesty or willful
violation of any law that results in -any adverse effect on the Bank. If a dispute arises as to discharge "for cause", such dispute shall be resolved by arbitration as set forth in this
Agreement. 

	E.
	Death Benefit:

Except
as set forth above, there is no death benefit provided under this Agreement. 

	F.
	Disability

Should
the Executive suffer a Termination of Service because of a disability (as defined on the Bank's long term disability insurance policy), he shall immediately become one hundred percent (100%)
vested and shall immediately begin receiving the retirement benefit described in Subparagraph Ill (A), without regard to "Normal Retirement Age." 

IV.      RESTRICTIONS UPON FUNDING  

The
Bank shall have no obligation to set aside, earmark or entrust any fiend or money with which to pay its obligations under this Agreement The Executive, his beneficiary(ies) or. any successor in
interest to him shall be and remain simply a general creditor of the Bank in the same manner as any other creditor having a general claim for matured and unpaid compensation. 

The
Bank reserves the absolute right, at its sole -discretion, to either fund the obligations undertaken by this Agreement or to refrain from finding the same and to determine the exact nature: and
method of such funding. Should the Bank elect to fund this Agreement, in whole or in part, through the purchase of life insurance, mutual funds, disability policies or annuities, the 

4

 

Bank
reserves the. absolute right, in its sole discretion, to teammate such fending at any time, in whole or in part. At no time shall the Executive be deemed to have any lien or right, title or
interest in or to any specific funding investment or to any assets of the Bank. 

If
the Bank elects to. invest in a life insurance, disability or annuity policy upon the life of the Executive, theft the Executive shall assist the Bank by freely submitting to a physical exam and
supplying such additional information necessary to obtain such insurance or annuities. 

V.        CHANGE OF CONTROL'  

Upon
a Change of Control (as defined in Subparagraph 1 (1) herein), if the Executive's employment is subsequently terminated then he shall receive the benefits promised in this Agreement
upon attaining Normal Retirement Age; as if he had been continuously employed by the Bank until his Normal Retirement Age. The Executive will also remain eligible for all—promised death
benefits in this Agreement. In addition, no sale, merger or consolidation of the Bank shall take place unless the new or surviving entity expressly acknowledges the obligations under this Agreement
and agrees to abide by its terms. 

VI.      MISCELLANEOUS  

	A.
	Alienability and Assignment Prohibition:

Neither
the Executive, his/her surviving spouse nor any other beneficiary under this Agreement shall have any power or right to transfer, assign, anticipate, hypothecates mortgage, commute, modify or
otherwise encumber in advance any of the benefits payable hereunder nor shall any of said benefits be subject to seizure for the payment of any debts, judgments, alimony or -separate maintenance owed
by the Executive or his beneficiary, nor be transferable by operation of law in the event of Bankruptcy, insolvency or otherwise. In.the event the Executive or any beneficiary attempts assignment,
commutation,, hypothecation, transfer or disposal of the benefits hereunder, the Bank's liabilities shall forthwith cease and terminate. 

	B.
	Binding Obligation of Bank and any Successor in Interest:

The
Bank expressly agrees that it shall not merge or consolidate into or with another Bank or sell substantially all of its assets- to another Bank, firm or person until such Bank, firm or person
expressly agrees, in writing, to assume and discourage the duties and obligations of the Back under this Agreement. This Agent shall be binding upon the parties hereto, their successors,
beneficiary(ies), heirs and personal representatives. 

	C.
	Revocation:

It
is agreed by and between the parties hereto that, during the lifetime of the Executive, this Agreement may be amended or revoked at any time or times, in whole or in part, by the mutual written
assent of the Executive and the Bank. 

	D.
	Gender.

Whenever
in this Agreement words are used in the masculine or neuter gender, they shall be read and construed as in the masculine, feminine or neuter gender, whenever they should so apply. 

5

 

	E.
	Effect on Other Bank Benefit Plans:

Nothing
contained in thus Agreement shall affect the right of the Executive.to participate in or be covered by any qualified or non-qualified pension, profit-sharing, group, bonus or other
supplemental compensation or fringe benefit plan constituting a part of the Bank's existing or future compensation structure. 

	F.
	Headings:

Headings
and subheadings in this Agreement are inserted for reference and convenience only and shall not be deemed a part of this Agreement. 

	G.
	Applicable Law:

The
validity and interpretation of this Agreement shall be governed by the laws of the State of Georgia. 

VII.    ERISA PROVISION  

	A.
	Named Fiduciary and Plan Administrator:

The
"Named Fiduciary and Plan Administrator" of this plan shall be Citizens Trust Bank until its removal by the Board. As Named Fiduciary and Administrator, the Bank shall be responsible for the
manages, control and administration of the Executive Supplemental Retirement Plan Agreement as established herein. 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 ministerial duties to qualified individuals. 

	B.
	Claims Procedure and Arbitration:

In
the event a dispute arises over -benefits under this Agreement and benefits are not paid to the Executive (or to his beneficiary. in the case of the Executive's death) and such claimants feel they
are entitled to receive such benefits, then a written darn must be made to the Plan Administrator named above within ninety (90) days from the date payments are -refused. The Plan Administrator
shall review the written claim and if the claim is denied, in whole or in part, they shall provide in writing within ninety (90) days of receipt o£ such claim their specific reasons
for such denial, reference to the provisions of this Agreement upon which the denial is based and any additional material or
information necessary to perfect the claim Such written notice shall further indicate the additional steps to be taken by claimants if a further review of the claim denial is desired. A claim shall be
deemed denied if the Plan Administrator fails to take any action within the aforesaid ninety-day period. 

If
claimants desire a second review they shall notify the Plan Administrator in writing within ninety (90) days of the fist claim denial. Claimants may review this Agreement or any documents
relating thereto and submit any written issues and comments they may feel appropriate. In its sole discretion, the Plan Administrator shall then review the second claim and provide a written decision
within ninety (90) days of receipt of such claim. This decision shall likewise state the specific reasons for the decision and shall include reference to specific provisions of this Agreement
upon which the decision is based. 

If
claimants continue to dispute the benefit denial based upon completed performance of this Agreement or the meaning and effect of the teams and conditions thereof, then claimants may submit the
dispute to a Board of Arbitration for final arbitration. Said 

6

 

Board.
shall consist of one member selected by the claimant, one member selected by the Bank, and the third member selected by the first two members. The Board shall operate under any generally
recognized set of arbitration rules. The parties hereto agree that they and their heirs, personal representatives, successors and assigns shall be bound by the decision of such Board with respect to
any controversy properly submitted -to it for determination. 

Where
a dispute arises as to the Bank's discharge of the Executive "for cause", such dispute shill likewise be submitted to arbitration as above described and the parties hereto agree to be bound by
the decision thereunder. 

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

	 	 	CITIZENS TRUST BANK

Atlanta, Georgia
	

 	
 	

 
	
 Witness	 	
 (Bank Officer other than insured)            Title    
	

 	
 	

 
	
 Witness	 	

7

 

 LIFE INSURANCE  

 ENDORSEMENT METHOD SPLIT DOLLAR PLAN  

 AGREEMENT  

	Insurer:	 	Security Life of Denver
	

Policy Number:	
 	

 
	

Corporation:	
 	

Citizens Trust Bank
	

Insured:	
 	

 
	

Relationship of Insured to Corporation:	
 	

Executive

The
respective tights and duties of the Corporation and the Insured in the subject policy shall be as defined in the following: 

I.         DEFINITIONS  

Refer
to the policy contract for the definition of all terms in this Agreement. 

II.        POLICY TITLE AND OWNERSHIP  

Title
and ownership shall reside in the Bank far its use and for the use. of the Insured all in accordance with this Agreement. The Bank alone may, to the extent of its interest, exercise the right to
borrow or withdraw on the policy cash values. Where the Bank and the Insured (or assignee, with the consent of the Insured) mutually agree to exercise the right to increase the coverage under the
subject split dollar policy, then, in such event, the rights, duties and benefits of the. parties-to such increased coverage shall continue to be subject to the terms of this Agreement. 

III.      BENEFICIARY DESIGNATION RIGHTS  

The
Insured (or assignee) shall have the right and power to designate a beneficiary or beneficiaries to receive his share of the proceeds payable upon the death of the Insured, and to elect and change
a payment option for such beneficiary, subject to any right or interest the Bank may have in such proceeds, as provided in this-Agreement. 

IV.        PREMIUM PAYMENT METHOD  

The
Bank shall pay an amount equal to the planned premiums and any other premium payments that might become necessary to keep the policy in force. 

V.         TAXABLE BENEFIT  

Annually
the Insured will receive a taxable benefit equal to the assumed cost of 'insurance as required by the Internal Revenue Service. The Bank (or its administrator) will report to the Employee the
amount of imputed income received each year on Form W-2 or its equivalent. 

1

 

VI.       DIVISION OF DEATH PROCEEDS  

Subject-to.
Paragraph VII herein, the division of the death proceeds of the policy is as follows: 

	A.
	Should
the Insured be employed by the Bank at the time of his or her death, the. Insured's beneficiary(ies), designated in accordance with Paragraph III, shall be entitled to an
amount equal to eighty percent (80%) of the net at risk insurance portion of the proceeds. The net at risk insurance portion is the -total proceeds less the cash value of the policy.

	B.
	Should
the Insured not be employed by the Bank at the time of his or her death, the Insured's beneficiary(ies) shall be entitled to the following percentage of the proceeds described
in Subparagraph VI (A) hereinabove that corresponds to the number of full years the. Insured has been employed by the Bank since the date of this plan implementation: 

	Total Years of Service with the Bank
 
	 	Vested

(to a maximum of 100%)
	 
	0-5	 	0	%
	more than 5-10	 	25	%
	more than 10-15	 	50	%
	more than 15-20	 	75	%
	more than 20	 	100	%

	C.
	The
Bank shall be entitled to the remainder of such proceeds.

	D.
	The
Bank and the Insured (or assignees) shall share in any interest due on the death proceeds on a pro rata basis as the proceeds due each respectively bears to the total proceeds,
excluding any such interest. 

VII.     DIVISION OF THE CASH SLIMMER VALUE OF THE POLICY  

The
Bank shall at all times be entitled to an amount equal to the policy's cash value, as that term is. defined in the policy contract, less any policy loans and unpaid interest or cash withdrawals
previously incurred by the Bank and any applicable surrender charges. Such cash value shall be determined as of the date of surrender or death as the case may be. 

VIII.    PREMIUM WAIVER  

If
the policy contains a premium waiver provision, such waived amounts shall be. considered for all purposes of this Aunt as having been paid by the Bank. 

IX.       RIGHTS OF. PARTIES WHERE POLICY ENDOWMENT OR ANNUITY ELECTION EXISTS  

In
the event the policy involves an endowment or annuity element, the Bank's rig* and interest in any endowment proceeds or annuity benefits, on expiration of- the deferment period, shall
be determined under the provisions of this Agrxment by regarding such endowment proceeds or the muted value of such annuity benefits as the policy's cash value. Such endowment proceeds or annuity
benefits shall be considered to be like death proceeds for the purposes of division under this Agreement. 

2

 

X.        TERMINATION OF AGREEMENT  

This
Agreement shall terminate at the option of the Bank following thirty (30) days written notice to the insured upon the happening of any one of the following: 

	1.
	The
insured shall leave the employ of the Bank (voluntarily or involuntarily). polar to five years of employment with the Bank from the date of this plan implementation; or

	2.
	The
Insured shall be discharged from the employ with the Bank for cause. The term "for cause" shall mean gross negligence or gross neglect or the commission of a felony or
gross-misdemeanor involving moral -turpitude, fraud, 'dishonesty or willful violation of any law. that results in any adverse effect on the Bank. 

Upon
such termination, the Insured (or assignee) shall have a ninety (90) day option to receive from the Bank an absolute assignment of the policy in consideration of a cash payment to the
Bank, whereupon this Agreement shall terminate. Such cash payment shall be the greater of 

	1.
	The
Bank's share of the cash value o€ the policy on the date of such assignment, as defined in this Agreement.

	2.
	The
amount of the premiums which have been paid by the Bank prior to the date of such assignment. 

Should
the Insured (or assignee) fail to exercise this option within the prescribed ninety (90) day period, the Insured. (or assignee) agrees that all of his rights,-interest and claims in the
policy shall terminate as o€ the date of the termination of this Agreement. 

Except
as provided above, this Agreement shall terminate upon distribution of the death benefit proceeds in accordance with Paragraph VI above. 

XI        INSURED'S OR ASSIGNEE'S ASSIGNMENT RIGHTS  

The
Insured may not, without the written consent of the Bank, assign to any individual, trust or other organization, any right, title or interest in the subject policy nor any rights, options,
privileges or duties created under this Agreement. 

XII.     AGREEMENT BINDING UPON THE PARTIES  

This
Agreement shall bind the Insured and the Bank, their hews, successors, personal representatives and assigns. 

XIII.    `NAMED FIDUCIARY AND PLAN ADMINISTRATOR  

Citizens
Trust Bank is hereby designated the `Named Fiduciary" until resignation or removal by the Board of Directors. As Named Fiduciary, the Bank shall be responsible for the management, control,
and administration of this Split Dollar Plan as established herein. The Named Fiduciary may allocate 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.. 

XIV.     FUNDING POLICY  

The
funding policy for this Split Dollar Plan shall be. to maintain the subject policy 'in' force by paying, when due, all premiums required. 

3

 

XV.      CHANGE OF CONTROL  

Change
of Control shall be defined as the occurrence of any one of the following: 

	a.
	the
acquisition of more than fifty percent (5096) of the value or voting power of the Bank's stock by a person or group;

	b.
	the
acquisition in a period of twelve months or less of at least thirty-five -percent (3596) of the Bank's stock by a person or group;

	c.
	the
replacement of a majority of the Bank's board in a period of twelve months or less by Directors who were not endorsed by a majority of the current board members; or

	d.
	the
acquisition in a period of twelve months or less of forty percent (40%) or more of the Bank's assets by an unrelated entity. 

For
the purposes of this Agreement, transfers made on account of deaths or gifts; transfers between family members or transfers to a qualified retirement plan maintained by the Bank shall not be
considered in determining whether there has been a Change in Control. Upon a Change of Control, if the Insured's employment is subsequently terminated, except for cause, then the Insured. shall be one
hundred percent (10096) vested in the-benefits promised in this Agreement and, therefore, upon the death of the Insured, the Insured's beneficiary(ies) (designated in accordance with
Paragraph III shall.receive the death benefit provided herein as if the Insured had died while employed by the Bank (see Subparagraph VI [A]). 

XVI.    CLAIM PROCEDURES FOR LIFE INSURANCE POLICY AND SPLIT DOLLAR PLAN  

Claim
forms or claim information as 'to the subject policy can be obtained by. contacting Benmark, Inc. (800-544-6079). When the Named Fiduciary has a claim which may be
covered under the provisions described in the insurance policy, he should contact the office named above, and they will either complete a claim form and forward it to an authorized eve of the Insurer
or advise the named Fiduciary what further requirements -are necessary. The Insurer will
evaluate and make a decision as to payment. If the claim is payable, a benefit check will be-issued to the Named Fiduciary. 

In
the event that a claim is not eligible under the policy, the Insurer will notify the Named Fiduciary of the denial pursuant to the requirements under the terms' of the policy. if the Named
Fiduciary is dissatisfied with the denial of the claim and wishes to contest such claim denial, he should contact the office named above and they will assist in making inquiry to the Insurer. All
objections to the lasurer's actions should be in writing and submitted to the office named above for transmittal to the insurer, 

XVIII  GENDER  

Whenever
in this Agreement words are used in the masculine or neuter gender, they shall be read and construed as in the masculine, feminine or neuter gender, whenever they should so apply. 

XVIII. INSURANCE COMPANY NOT A PARTY TO THIS AGREEMENT  

The
Insurer shall not be deemed a patty to this Agreement, but will respect the rights of the parties as herein developed upon receiving an executed copy of this Agreement. Payment or other
performance in accordance with the policy provisions shall fully discharge the Insurer for any and all liability. 

4

 

XIX.    EFFECTIVE DATE  

The
Effective Date of this Agreement shall be October 8, 2003. 

Executed
at Atlanta, Georgia, this                        day
of                                    , 2005
 

	 	 	CITIZENS TRUST BANK

Atlanta, Georgia
	

 	
 	

 
	
 Witness	 	
 (Bank Officer other than insured)            Title    
	

 	
 	

 
	
 Witness	 	

5

QuickLinks

EXHIBIT 10.12

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00139-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00139-of-00352.parquet"}]]