Document:

EX-10.28.1 FIRST AMENDMENT TO PARTNERSHIP AGREEMEN

 

Exhibit 10.28.1

FIRST AMENDMENT

TO

FIRST AMENDED AND RESTATED

AGREEMENT OF LIMITED PARTNERSHIP

OF

COLONIAL PROPERTIES SERVICES LIMITED PARTNERSHIP

          THIS FIRST AMENDMENT TO FIRST AMENDED AND RESTATED AGREEMENT OF LIMITED PARTNERSHIP OF
COLONIAL PROPERTIES SERVICES LIMITED PARTNERSHIP (this “Amendment”) dated as of March 23, 2005, is
entered into by Colonial Realty Limited Partnership, as general partner (the “General Partner”) of
Colonial Properties Services Limited Partnership (the “Partnership”), for itself and on behalf of
the limited partner of the Partnership (the “Limited Partner”).

          WHEREAS, the General Partner is a party to the First Amended and Restated Agreement of Limited
Partnership of the Partnership entered into as of September 29, 1993 (the “Partnership Agreement”);

          WHEREAS, the General Partner, pursuant to Section 12.2 of the Partnership Agreement, desires
to consent to the transfer of the 1% limited partnership interest of Colonial Properties Services
Inc. (“CPSI”) in the Partnership (the “LP Interest”) to Colonial Properties Services LLC (“CPS
LLC”) pursuant to a Contribution Agreement, of even date herewith, between CPSI and CPS LLC; and

          WHEREAS, the General Partner, pursuant to Section 14.1(B)(2) of the Partnership Agreement,
desires to amend the Partnership Agreement to reflect the transfer of the LP Interest from CPSI to
CPS LLC.

          NOW, THEREFORE, in consideration of the premises and for good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the General Partner hereby amends the
Partnership Agreement as follows:

          1. Amendment of Partnership Agreement. All references in the Partnership Agreement to
CPS Inc. are hereby amended to constitute references to CPS LLC.

          2. Admission of Additional Limited Partner. Pursuant to Section 12.2 of the
Partnership Agreement, the General Partner consents to the transfer of the LP Interest from CPSI to
CPS LLC and to the admission of CPS LLC to the Partnership. CPS LLC is hereby admitted to the
Partnership as a substitute Limited Partner.

          Capitalized terms used herein, unless otherwise defined herein, shall have the same meanings
as set forth in the Partnership Agreement.

          Except as amended herein, the Partnership Agreement shall remain in full force and effect.

 

 

          IN WITNESS WHEREOF, the undersigned has executed this Amendment as of the date first set forth
above.

	 	 	 	 	 	 	 
	 	 	COLONIAL REALTY LIMITED PARTNERSHIP	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	COLONIAL PROPERTIES TRUST, its general partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Thomas H. Lowder	 	 
	 

	 	Name:
	 	 

Thomas H. Lowder
	 	 
	 

	 	Title:
	 	President and CEO
	 	 
	 

	 	 	 	 	 	 

The undersigned, pursuant to Section 12.2 of the Partnership Agreement, hereby consents to the
admission of CPS LLC as a substitute Limited Partner.

	 	 	 	 	 	 	 
	COLONIAL PROPERTIES SERVICES, INC.	 	 	 	 
	 
	 	 	 	 	 	 
	By:

	 	/s/ Thomas H. Lowder	 	 	 	 
	Name:

	 	 

Thomas H. Lowder
	 	 	 	 
	Title:

	 	President and CEOEX-10.59 TRUSTEE COMPENSATION POLICY FOR 2006

 

Exhibit 10.59

Trustee Compensation Policy

Annual Trustee compensation for 2006 shall be as follows:

	 	 	 	 	 
	Non-Employee Trustees	 	2006
	Annual Retainer — Board Members
	 	$	22,500	 
	Annual Retainer — Audit Committee Chairman
	 	$	15,000	 
	Annual Retainer — Executive Compensation Committee Chairman
	 	$	7,500	 
	Annual Retainer — Executive Committee Chairman
	 	$	7,500	 
	Annual Retainer — Governance Committee Chairman
	 	$	7,500	 
	Annual Retainer — Lead Trustee
	 	$	15,000	 
	 
	 	 	 	 
	Per Board Meeting Attended in Person
	 	$	1,750	*
	Per Board Meeting Attended by Telephone
	 	$	1,000	 
	 
	 	 	 	 
	Committee Members (other than Chairman):
	 	 	 	 
	Per Committee Meeting Attended in Person
	 	$	1,250	*
	Per Committee Meeting Attended by Telephone
	 	$	1,000	 
	 
	 	 	 	 
	Committee Chairman:
	 	 	 	 
	Per Committee Meeting Attended in Person or by Telephone
	 	$	1,750	*

 

			
	*	 	Plus out of pocket expenses.

     Non-employee trustees can elect to receive common shares in lieu of all or a portion of annual
board and committee fees pursuant to the Company’s Non-Employee Trustee Share Plan. Common shares
received in lieu of fees under such plan shall have a fair market value equal to 125% of the amount
of fees foregone.

     Non-employee trustees shall also receive an option to purchase 5,000 common shares upon
election to the board, and an additional option to purchase 5,000 common shares following each
annual election of trustees that occurs after the trustee has completed at least one year of
service. These options will be issued under the Company’s Second Amended and Restated Employee
Share Option and Restricted Share Plan. The options are to vest in one year after the date of
grant, at an exercise price equal to the fair market value on the day of the grant.

     Non-employee trustees shall further receive a grant of $10,000 of restricted stock following
each annual election of trustees that occurs after the trustee has completed at least one year of
service. This restricted stock will be issued under the Company’s Second Amended and Restated
Employee Share Option and Restricted Share Plan. The restricted stock will be valued based on the
fair market value on the day of the grant and will vest one year after the date of grant.

     Employee trustees are not entitled to any additional compensation for their service as
trustees.Ex-10.9

 

Exhibit 10.9

EXECUTIVE SUPPLEMENTAL RETIREMENT

PLAN AGREEMENT

     THIS AGREEMENT is made and entered into this 30th day of March , 2005, by
and between the Bank of Granite, a bank organized and existing under the laws of the State of North
Carolina (hereinafter referred to as the “Bank”), and R. Scott Anderson, an Executive of the Bank
(hereinafter referred to as the “Executive”).

     WHEREAS, the Executive is now in the employ of the Bank and has for many years faithfully
served the Bank. It is the consensus of the Board of Directors (hereinafter referred to as the
“Board”) that the Executive’s employment has 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 the Executive’s
continued employment so essential to the Bank’s future growth and profits, that it would suffer
severe financial loss should the Executive terminate their employment;

     ACCORDINGLY, the Board has adopted the Bank of Granite Executive Supplemental Retirement Plan
(hereinafter referred to as the “Executive Plan”) and it is the desire of the Bank and the
Executive to enter into this Agreement under which the Bank will agree to make certain payments to
the Executive upon the Executive’s retirement or to the Executive’s beneficiary(ies) in the event
of the Executive’s death pursuant to the Executive Plan;

     FURTHERMORE, it is the intent of the parties hereto that this Executive Plan be considered an
unfunded arrangement maintained primarily to provide supplemental retirement benefits for the
Executive, and be considered a non-qualified benefit plan for purposes of the Employee Retirement
Income Security Act of 1974, as amended (“ERISA”). The Executive is fully advised of the Bank’s
financial status; and

     THEREFORE, in consideration of employment the Executive 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 Executive agree as follows:

	I.	 	DEFINITIONS

	 	A.	 	Effective Date:
	 
	 	 	 	The Effective Date of the Executive Plan shall be October 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 employment with the Bank that becomes
effective on the first day of the calendar month following the month in which the
Executive reaches age sixty-five (65) or such later date as the Executive may
actually retire.
	 
	 	D.	 	Early Retirement Date:
	 
	 	 	 	Early Retirement Date shall mean a retirement from employment which is effective
prior to the Normal Retirement Age stated herein, provided the Executive has
attained age fifty (50) and has completed seven (7) full years of employment with
the Bank from the date of first employment subsequent to the Executive attaining
age eighteen (18).
	 
	 	E.	 	Termination of Employment:
	 
	 	 	 	Termination of Employment shall mean the Executive’s voluntary resignation of
employment by the Executive or the Bank’s discharge of the Executive without cause,
prior to the Early Retirement Date (Subparagraph I [D]) or Normal Retirement Age
(Subparagraph I [J]).
	 
	 	F.	 	Index Retirement Benefit:
	 
	 	 	 	The Index Retirement Benefit for each Executive in the Executive 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 Opportunity Cost (Subparagraph I [H]) for that Plan Year,
divided by a factor equal to 1.00 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 contract(s) described hereinafter as defined by FASB Technical
Bulletin 85-4. This Index shall be applied as if such insurance contract(s) were
purchased on the Effective Date of the Executive Plan.

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	Insurance Company:

	 	Jefferson Pilot Life Insurance Company
	Policy Form:

	 	Flexible Premium Adjustable Life
	Policy Name:

	 	Executive Security Plan 100
	Insured’s Age and Sex:

	 	49, Male
	Riders:

	 	None
	Ratings:

	 	None
	Option:

	 	Level
	Face Amount:

	 	$2,316,000
	Premiums Paid:

	 	$840,000
	Number of Premium Payments:

	 	Single
	Assumed Purchase Date:

	 	October 22, 2004

	 	 	 	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 Executive 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 illustration 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 Executive and the Executive’s beneficiary(ies)
shall have no ownership interest in such policy and shall always have no greater
interest in the benefits under this Executive Plan than that of an unsecured
creditor of the Bank.
	 
	 	H.	 	Opportunity Cost:
	 
	 	 	 	The Opportunity Cost for any Plan Year shall be calculated by taking the sum of the
amount of premiums for the life insurance policies described in the definition of
“Index” plus the amount of any after-tax benefits paid to the Executive pursuant to
the Executive Plan (Paragraph II hereinafter) plus the amount of all previous
years’ after-tax Opportunity Cost, and multiplying that sum by the average after
tax yield of a one-year Treasury bill.
	 
	 	 	 	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;

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	 	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 Executive 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 Executive attains age
sixty-five (65).
	 
	 	K.	 	Benefit Accounting:
	 
	 	 	 	The Bank shall account for the benefit provided herein using the regulatory
accounting principles of the Bank’s primary federal regulator. The Bank shall
establish an accrued liability retirement account for the Executive into which
appropriate reserves shall be accrued.

	II.	 	INDEX BENEFITS

	 	A.	 	Retirement Benefits:
	 
	 	 	 	Subject to Subparagraph II (E) hereinafter, an Executive who remains in the employ
of the Bank until the Normal Retirement Age (Subparagraph I [J]) shall be entitled
to receive an annual benefit amount equal to the amount set forth in Exhibit A-1.
Said payments shall be made annually and shall commence thirty (30) days following
the Executive’s retirement and shall continue each Plan Year until the Executive
attains age seventy-five (75). Upon completion of the aforestated payments and
commencing subsequent thereto and subject to Subparagraph II (A) (i) hereinbelow,
the Index Retirement Benefit (Subparagraph I [F]) for each Plan Year subsequent to
the year in which the Executive attains age seventy-five (75), and including the
remaining portion of the Plan Year in which the Executive attains age seventy-five
(75) shall be paid to the Executive until the Executive’s death.

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	 	(i)	 	The Index Retirement Benefit Adjustment:
	 
	 	 	 	The Index Retirement Benefit payment as set forth hereinabove for the
first Plan Year subsequent to the Executive attaining age seventy-five
(75) shall be adjusted according to a number equal to the aggregate of the
Index Retirement Benefit (Subparagraph I [F]) for each Plan Year from the
Effective Date of this agreement until the Plan Year the Executive attains
age seventy-five (75) over the aggregate of the benefit payments the
Executive actually received under the terms of this Executive Plan through
that date. For example, if the Executive retires at age sixty-five (65)
and the aggregate annual benefits received by the Executive until the Plan
Year the Executive attains age seventy-five (75) were $900,000.00,
and the aggregate Index Retirement Benefits for each Plan Year from the
Effective Date of this agreement to the Plan Year the Executive’s attains
age seventy-five (75) were $1,000,000.00 then the Executive’s
Index Retirement Benefit in the first Plan Year said payment is payable to
the Executive would be increased by $100,000.00. If said number
is a deficit then the Index Retirement Benefit for the first Plan Year
said payment is payable to the Executive and each subsequent Plan Year’s
benefit (if necessary) shall be reduced until the entire deficit has been
recovered by the Bank. For each year thereafter, the Index Retirement
Benefit payment shall be paid as set forth in Subparagraph I (E). For
example, if the Executive retires at age sixty-five (65) and the aggregate
annual benefits to be received by the Executive until the Plan Year the
Executive attains age seventy-five (75) were $1,000,000.00, and
the aggregate Index Retirement Benefits for each Plan Year from the
Effective Date of this agreement to the Plan Year the Executive attains
age seventy-five (75) were $900,000.00 and the Executive’s Index
Retirement Benefit was $90,000.00 in the first year, then the
Executive would not receive any Index Retirement Benefit in the first
year, and the second years’ Index Retirement benefit would be reduced by
$10,000.00.

	 	B.	 	Early Retirement:
	 
	 	 	 	Subject to Subparagraph II (E), should the Executive elect Early Retirement or be
discharged without cause by the Bank subsequent to the Early Retirement Date
[Subparagraph I (D)], the Executive shall be entitled to receive the annual benefit
set forth in Exhibit A-2, actuarially reduced then further reduced by the full
number of years the Executive retires early prior to Normal Retirement Age, times
six and sixty seven one hundredths percent (6.67%) (For example, if Executive
retires at age 61,

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	 	 	 	the annual benefit set forth in Exhibit A-2 shall be actuarially
reduced then further reduced by 26.68%: 61 to 65 = 4 X 6.67%=26.68%.) Said
payments shall be made annually and shall commence thirty (30) days
following the Executive’s early retirement and shall continue until the Plan Year
in which the Executive attains age seventy-five (75). Upon completion of the
aforestated payments and commencing subsequent thereto and subject to Subparagraph
II (A) (i) hereinabove, the vested percentage set forth hereinabove of the Index
Retirement Benefit for each Plan Year subsequent to the year in which the Executive
attains age seventy-five (75), and including the remaining portion of the Plan Year
in which the Executive attains age seventy-five (75), shall be paid to the
Executive until the Executive’s death.
	 
	 	C.	 	Termination of Employment:
	 
	 	 	 	Subject to Subparagraph II (E), should an Executive suffer a Termination of
Employment subsequent to three (3) full years of employment with the Bank from the
Executive attaining age eighteen (18), the Executive shall be entitled to receive
the percentage set forth hereinbelow that corresponds to the number of full years
the Executive has been employed the Bank subsequent to the Executive attaining age
eighteen (18), times the annual benefit set forth in Exhibit A-1. Said payments
shall commence thirty (30) days following the Executive’s Normal Retirement Age
(Subparagraph I [J]) and shall continue until the Executive attains age
seventy-five (75). Upon completion of the aforestated payments and commencing
subsequent thereto and subject to Subparagraph II (A) (i) hereinabove the Index
Retirement Benefit for each Plan Year subsequent to the year in which the Executive
attains seventy-five (75), and including the remaining portion of the Plan Year in
which the Executive attains age seventy-five (75), shall be paid to the Executive
until the Executive’s death.

	 	 	 	 	 
	Years of	 	Vesting Percentage
	Employment	 	(to a maximum of 100%)
	0-2
	 	 	0	%
	3
	 	 	20	%
	4
	 	 	40	%
	5
	 	 	60	%
	6
	 	 	80	%
	7 or more
	 	 	100	%

	 	D.	 	Death:
	 
	 	 	 	If the Executive dies while there is a balance in the Executive’s accrued liability
retirement account, then the unpaid balance shall be paid in a lump sum to the
individual or individuals designated in writing by the

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	 	 	 	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 representative of the
Executive’s estate. If, upon death, the
Executive shall have received the total balance of the Executive’s accrued
liability retirement account, then no further benefit shall be due hereunder. In
any event, upon the death of the Executive, the Executive’s beneficiary shall not
be entitled to receive any Index Retirement Benefit.
	 
	 	E.	 	Termination of Employment and Discharge for Cause:
	 
	 	 	 	The Bank may elect to terminate the Executive “for cause” immediately upon written
notice to the Executive. For purposes of this Agreement, “for cause” shall mean
(a) any dishonest, illegal or other act of moral turpitude (such as theft, fraud or
embezzlement) by the Executive which is materially detrimental to the interest and
well-being of the Bank, (b) the conviction of a felony, (c) the unreasonable
failure or refusal of the Executive to perform to the best of the Executive’s
ability on a reasonable basis the Executive’s duties hereunder, or (d) any
violation by the Executive of any state or federal law, rule or regulation relating
to banking, financial institutions or securities laws, the violation of which would
be materially detrimental to the interest and well-being of the Bank. Should the
Executive suffer a Termination of Employment prior to three (3) full years of
employment subsequent to the Executive attaining age eighteen (18) or upon the
termination of the Executive “for cause”, this Agreement and all of the Bank’s
obligations hereunder shall terminate immediately, except for obligations which
have accrued prior thereto as provided in Subparagraphs II (D) and (F) in the case
of the Executive’s death or disability.
	 
	 	F.	 	Disability Benefit:
	 
	 	 	 	In the event that there is a finding of any qualified period of disability for the
Executive, the Bank will deposit into the Contingent Disability Trust for Executive
(hereafter “Trust”) an amount equal to the accrued liability retirement account
established on the Executive’s behalf pursuant to this Agreement. No other
benefits will be owed to the Executive under this Agreement during the Period of
Disability.
	 
	 	 	 	An Executive is considered disabled if he or she is: [1] unable to engage in any
substantial gainful activity by reason of any medically determinable physical or
mental impairment which can be expected to result in death or can be expected to
last for a continuous period of not less than twelve (12) months; or [2] by reason
of any medically determinable physical or mental impairment which can be expected
to result in death or can be expected to last for a continuous period of not less
than twelve (12) months, receiving

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	 	 	 	income replacement benefits for a period of not
less than three (3) months under an accident and health plan covering the Executive
of the Bank. If there is a dispute regarding whether the Executive is disabled,
such dispute shall be resolved by a physician mutually selected by the Bank and
the Executive and such resolution shall be binding upon all parties to this
Agreement.
	 
	 	 	 	If the Executive is under a Period of Disability on the date the Executive reaches
Normal Retirement Age, this agreement shall automatically terminate and the
Executive shall not be entitled to any further benefits under this Agreement.
	 
	 	 	 	If the Period of Disability ends prior to Normal Retirement Age and the Executive
returns to active employment with the Bank, the Bank will pay the Executive a
reduced retirement benefit amount. The retirement benefit amount shall be reduced
by the ten (10) year annual annuity that would be payable from the Trust assuming
the trust assets earned on a net of four percent (4%) annually starting from the
date of the existence of said Trust.
	 
	 	G.	 	Death Benefit:
	 
	 	 	 	Except as set forth above, there is no death benefit provided under this Agreement.

	III.	 	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 Executive Plan. The Executive, 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 Executive 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 Executive Plan, in 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 Executive 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 Executive, then the Executive shall assist the Bank by freely submitting

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	 	 	to a
physical exam and supplying such additional information necessary to obtain such insurance
or annuities.

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

	 	A.	 	Alienability and Assignment Prohibition:
	 
	 	 	 	Neither the Executive, nor the Executive’s surviving spouse, nor any other
beneficiary(ies) under this Executive 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 Executive or the Executive’s beneficiary(ies), 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 the Bank and any Successor in Interest:
	 
	 	 	 	The Bank or its owners 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 Executive Plan. This Executive Plan
shall be binding upon the parties hereto, their successors, beneficiaries, heirs
and personal representatives.
	 
	 	C.	 	Amendment or Revocation:
	 
	 	 	 	It is agreed by and between the parties hereto that, during the lifetime of the
Executive, this Executive Plan may be amended or revoked at any time

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	 	 	 	or times, in
whole or in part, by the mutual written consent of the Executive and the Bank.
	 
	 	D.	 	Gender:

	 	 	 	Whenever in this Executive 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.
	 
	 	E.	 	Effect on Other Bank Benefit Plans:
	 
	 	 	 	Nothing contained in this Executive Plan 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 Executive Plan are inserted for reference and
convenience only and shall not be deemed a part of this Executive Plan.
	 
	 	G.	 	Applicable Law:
	 
	 	 	 	The validity and interpretation of this Agreement shall be governed by the laws of
the State of North Carolina.
	 
	 	H.	 	12 U.S.C. § 1828(k):
	 
	 	 	 	Any payments made to the Executive pursuant to this Executive 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 Executive 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 Executive Plan
shall remain in full force and effect notwithstanding such partial invalidity.

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	 	J.	 	Employment:
	 
	 	 	 	No provision of this Executive Plan 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 or without cause. In a similar fashion, no provision shall limit
the Executive’s rights to voluntarily sever the Executive’s employment at any time.

	VI.	 	ERISA PROVISION

	 	A.	 	Named Fiduciary and Plan Administrator:
	 
	 	 	 	The “Named Fiduciary and Plan Administrator” of this Executive Plan shall be Bank
of Granite, until its resignation or removal by the Board. As Named Fiduciary and
Plan Administrator, the Bank shall be responsible for the management, control and
administration of the Executive Plan. The Named Fiduciary may delegate to others
certain aspects of the management and operation responsibilities of the Executive
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 Executive Plan and benefits
are not paid to the Executive (or to the Executive’s beneficiary(ies) in the case
of the Executive’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 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 Executive 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 (60) 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 first claim denial.
Claimants may review this Executive Plan or any documents relating thereto and
submit any written issues and comments it may feel

11

 

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 Executive 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 Executive “for cause,”
such dispute shall likewise be submitted to arbitration as above described and the
parties hereto agree to be bound by the decision thereunder.

	VII.	 	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 Executive Plan,
then the Bank reserves the right to terminate or modify this Agreement accordingly. Upon a
Change of Control (Subparagraph I [I]), 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.

	 	 	 	 	 	 	 	 	 
	 	 	 	 	BANK OF GRANITE
	 	 	 	 	Granite Falls, North Carolina
	 
	 	 	 	 	 	 	 	 
	/s/ Jatana M. Bremer

	 	 	 	By:
	 	/s/ Samuel M. Black
	 	SVP
	 	 	 	 	 	 	 
	Witness

	 	 	 	 	 	(Bank Officer other than Insured)
	 	Title
	 
	 	 	 	 	 	 	 	 
	/s/ Jatana M. Bremer	 	 	 	/s/ R. Scott Anderson
	 	 	 	 	 
	Witness	 	 	 	R. Scott Anderson

12

 

BENEFICIARY DESIGNATION FORM

FOR THE EXECUTIVE SUPPLEMENTAL

RETIREMENT PLAN AGREEMENT

	 	 	 	 	 
	I.	 	PRIMARY DESIGNATION
	 	 	                    (You may refer to the beneficiary designation information prior to completion of this form.)
	 
	 	 	 	 
	 

	 	A.
	 	Person(s) as a Primary Designation:
	 

	 	 	 	(Please indicate the percentage for each beneficiary.)

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	Name
	 	 	 	Relationship
	 	 	 	SS#
	 	 	 	/
	 	 	 	 	%	 
	 

	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 	 	 	 	 

	 	 	 	 	 	 	 	 	 	 	 
	 

	 	Address:	 	 	 	 	 	 	 	 
	 	 	 	 	 
	 

	 	 	 	(Street)
	 	(City)
	 	(State)
	 	(Zip)

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	Name
	 	 	 	Relationship
	 	 	 	SS#
	 	 	 	/
	 	 	 	 	%	 
	 

	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 	 	 	 	 

	 	 	 	 	 	 	 	 	 	 	 
	 

	 	Address:	 	 	 	 	 	 	 	 
	 	 	 	 	 
	 

	 	 	 	(Street)
	 	(City)
	 	(State)
	 	(Zip)

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	Name
	 	 	 	Relationship
	 	 	 	SS#
	 	 	 	/
	 	 	 	 	%	 
	 

	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 	 	 	 	 

	 	 	 	 	 	 	 	 	 	 	 
	 

	 	Address:	 	 	 	 	 	 	 	 
	 	 	 	 	 
	 

	 	 	 	(Street)
	 	(City)
	 	(State)
	 	(Zip)

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	Name
	 	 	 	Relationship
	 	 	 	SS#
	 	 	 	/
	 	 	 	 	%	 
	 

	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 	 	 	 	 

	 	 	 	 	 	 	 	 	 	 	 
	 

	 	Address:	 	 	 	 	 	 	 	 
	 	 	 	 	 
	 

	 	 	 	(Street)
	 	(City)
	 	(State)
	 	(Zip)

	 	 	 	 	 	 	 	 	 
	 	 	B.	 	Estate as a Primary Designation:
	 
	 	 	 	 	 	 	 	 
	 	 	My Primary Beneficiary is The Estate of	 	 	 	as set forth
	 

	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	in the last will and testament dated the                      day of                     ,                      and any codicils thereto.

	 
	 	 	 	 	 	 	 	 
	 	 	C.	 	Trust as a Primary Designation:

	 	 	 	 	 	 	 
	 	 	Name of the Trust :	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	Execution Date of the Trust :                      /                      /                                         
	 
	 	 	 	 	 	 
	 	 	Name of the Trustee :	 	 
	 

	 	 	 	 	 	 
	 	 	Beneficiary(ies) of the Trust (please indicate the percentage for each beneficiary):
	 
	 	 	 	 	 	 
	 	 	 
	 
	 	 	 	 	 	 
	 	 	 
	 
	 	 	 	 	 	 
	 	 	Is this an Irrevocable Life Insurance Trust?                      Yes                      No
	 	 	(If yes and this designation is for a Split Dollar agreement, an Assignment of Rights form should be completed.)

13

 

	 	 	 	 	 
	II.	 	SECONDARY (CONTINGENT) DESIGNATION
	 
	 	 	 	 
	 

	 	A.
	 	Person(s) as a Secondary (Contingent) Designation:
	 

	 	 	 	(Please indicate the percentage for each beneficiary.)

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	Name
	 	 	 	Relationship
	 	 	 	SS#
	 	 	 	/
	 	 	 	 	%	 
	 

	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 	 	 	 	 

	 	 	 	 	 	 	 	 	 	 	 
	 

	 	Address:	 	 	 	 	 	 	 	 
	 	 	 	 	 
	 

	 	 	 	(Street)
	 	(City)
	 	(State)
	 	(Zip)

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	Name
	 	 	 	Relationship
	 	 	 	SS#
	 	 	 	/
	 	 	 	 	%	 
	 

	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 	 	 	 	 

	 	 	 	 	 	 	 	 	 	 	 
	 

	 	Address:	 	 	 	 	 	 	 	 
	 	 	 	 	 
	 

	 	 	 	(Street)
	 	(City)
	 	(State)
	 	(Zip)

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	Name
	 	 	 	Relationship
	 	 	 	SS#
	 	 	 	/
	 	 	 	 	%	 
	 

	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 	 	 	 	 

	 	 	 	 	 	 	 	 	 	 	 
	 

	 	Address:	 	 	 	 	 	 	 	 
	 	 	 	 	 
	 

	 	 	 	(Street)
	 	(City)
	 	(State)
	 	(Zip)

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	Name
	 	 	 	Relationship
	 	 	 	SS#
	 	 	 	/
	 	 	 	 	%	 
	 

	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 	 	 	 	 

	 	 	 	 	 	 	 	 	 	 	 
	 

	 	Address:	 	 	 	 	 	 	 	 
	 	 	 	 	 
	 

	 	 	 	(Street)
	 	(City)
	 	(State)
	 	(Zip)

	 	 	 	 	 	 	 	 	 
	 	 	B.	 	Estate as a Secondary (Contingent) Designation:
	 
	 	 	 	 	 	 	 	 
	 	 	My Secondary Beneficiary is The Estate of	 	 	 	as set forth
	 

	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	in my last will and testament dated
the                      day of                     ,                      and any codicils thereto.

	 
	 	 	 	 	 	 	 	 
	 	 	C.	 	Trust as a Secondary (Contingent) Designation:

	 	 	 	 	 	 	 
	 	 	Name of the Trust :	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	Execution Date of the Trust :                      /                      /                                         
	 
	 	 	 	 	 	 
	 	 	Name of the Trustee :	 	 
	 

	 	 	 	 	 	 
	 	 	Beneficiary(ies) of the Trust (please indicate the percentage for each beneficiary):
	 
	 	 	 	 	 	 
	 	 	 
	 
	 	 	 	 	 	 
	 	 	 

All sums payable under the Executive Supplemental Retirement Plan Executive Agreement by
reason of my death shall be paid to the Primary Beneficiary, if he or she survives me, and if no
Primary Beneficiary shall survive me, then to the Secondary (Contingent) Beneficiary.

	 	 	 	 	 	 	 
	 

	 	 
	 	 	 	 
	 

	 	R. Scott Anderson
	 	 	 	Date

14

 

EXHIBIT “A-1”

for

R. Scott Anderson

	 	 	 	 	 	 	 	 	 
	End of	 	 	 	 	 	Benefit
	Year Age:	 	 	 	 	Amount:
	65	 	 		 	 	$ 100,520
	66		 	 	 	 	$ 101,540
	67	 	 	 	 	 	$ 102,706
	68	 	 	 	 	 	$ 103,196
	69	 	 	 	 	 	$ 101,344
	70	 	 	 	 	 	$ 104,326
	71	 	 	 	 	 	$ 102,111
	72	 	 	 	 	 	$ 100,191 
	73	 	 	 	 	 	$ 98,554
	74	 	 	 	 		$ 97,362

15

 

EXHIBIT “A-2”

	 	 	 	 	 	 	 	 	 
	 	 	Plan Years Subsequent to	 	 	 	 
	 	 	Early Retirement Date as	 	 	 	 
	 	 	Defined in Subparagraph I (D)	 	Benefit	 	 
	 	 	of the Agreement:	 	Amount:	 	 
	 
	 	1	 	$	100,520	 	 	 
	 
	 	2	 	$	101,540	 	 	 
	 
	 	3	 	$	102,706	 	 	 
	 
	 	4	 	$	103,196	 	 	 
	 
	 	5	 	$	101,344	 	 	 
	 
	 	6	 	$	104,326	 	 	 
	 
	 	7	 	$	102,111	 	 	 
	 
	 	8	 	$	100,191	 	 	 
	 
	 	9	 	$	98,554	 	 	 
	 
	 	10	 	$	97,362	 	 	*

 

			
	*  This benefit amount shall remain constant for any remaining Plan Years that the Executive may be
entitled to receive a fixed benefit amount pursuant to Subparagraph II (B) of the Agreement; the
Executive’s age seventy-five (75).

16

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