Document:

Ex-10.56 Amended agreement with Credit Cash, LLC

 

EXHIBIT 10.56

505 Park Avenue, 6th Floor

New York, NY 10022

Telephone: 212-838-4840          Fax: 212-838-4820

April 23, 2007

Ayman A. Sabi

President

Roadhouse Grill, Inc.

2703-A Gateway Drive

Pompano Beach, FL 33069

Dear Mr. Sabi:

     We refer you to that certain Credit Card Advance Agreement between ROADHOUSE GRILL, INC.
(“Merchant”) and CREDIT CASH, LLC (“Lender”) dated January 12, 2007 (the “Agreement”). All
capitalized terms used herein and not otherwise defined shall have the meanings given to them in
the Agreement.

     It is mutually agreed that, effective upon the funding date of Advance made pursuant to
Advance Schedule No. 2 (estimated to be on or about April 23, 2007), the Agreement be amended as
follows:

	 	A.	 	The Payment Percentage described in Section 2(b) of the Agreement shall
be amended to be three and three-quarters percent (3.75%).

     Except as hereby or heretofore amended or supplemented, the Agreement shall remain in full
force and effect in accordance with its original terms and conditions.

     If the foregoing correctly sets forth your and our understanding, please execute the enclosed
copy of this letter in the spaces provided below and return such executed copy to the undersigned
as soon as possible.

     This letter amendment may be executed in counterparts. Each counterpart shall be deemed an
original but all of which together shall constitute one and the same instrument. An executed
facsimile of this letter amendment shall be deemed to be a valid and binding agreement between the
parties hereto.

	 	 	 
	CREDIT CASH, LLC

	 	ROADHOUSE GRILL, INC.
	 
	 	 
	By: /s/ Dean Landis

	 	By /s/ Ayman A. Sabi
	 

	 	 
	Name: Dean Landis 

Title: President

	 	Name: Ayman A. Sabi
Title: PresidentEX-10.1

 

Exhibit 10.1

RESOLUTIONS OF THE BOARD OF DIRECTORS OF

BANK OF GRANITE

     WHEREAS, effective January 1, 2005, Congress enacted new Section 409A of the Internal Revenue
Code of 1986, as amended (the “Code”), which requires that, by December 31, 2007, all nonqualified
deferred compensation plans must be updated to comply with these changes in the law; and

     WHEREAS, the Board of Directors of the Bank of Granite (“Bank”) wishes to amend and restate
the Bank of Granite Supplemental Executive Retirement Plan (“Plan”) in order to bring the Plan into
compliance with new Code Section 409A

     NOW THEREFORE, BE IT RESOLVED, that the Plan, as amended and restated in substantially the
form attached hereto, is hereby adopted; and

     FURTHER RESOLVED, that the appropriate officers of the Bank are hereby authorized and directed
to take such actions as they, in their sole discretion, deem necessary in order to implement the
foregoing resolutions.

SECRETARY’S CERTIFICATE

     I, Kirby A. Tyndall , Corporate Secretary of the Bank of Granite, do hereby certify
that the above resolutions were adopted by the Board of Directors of the Bank of Granite at a
meeting of the Board duly held on April 16, 2007.

Dated: April 16, 2007

	 	 	 	 	 
	 	 	 
	 	                                                    /s/ Kirby A. Tyndall
 	 
	 	Corporate Secretary 	 
	 	 	 
	 

 

 

BANK OF GRANITE

SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN

The Bank of Granite (the “Employer”) hereby amends and restates this Supplemental Executive
Retirement Plan (“Plan”), generally effective January 1, 2005, in order to bring the Plan into
compliance with new Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”).

The Plan was originally established effective December 12, 1994 as a type of unfunded,
non-qualified deferred compensation plan known as an “excess benefit plan” which provides
additional retirement benefits for employees who participate in the Bank of Granite Profit Sharing
Plan (and each predecessor, successor or replacement tax-qualified profit sharing plan and/or cash
or deferred arrangement sponsored by Employer) (the “Qualified Plan”), but whose “annual additions”
under such Qualified Plan (i.e., employee contributions, Employer contributions and allocable share
of Plan forfeitures) are limited by Code Section 415 to an amount that is less than the amount that
such individuals otherwise would have received under the Qualified Plan if the Code Section 415
limitations did not apply. For example, in 2007 (i.e., the year in which the Plan is being
restated, even though the restatement is generally retroactively effective to January 1, 2005, as
permitted under the Code Section 409A transition rules), the Code Section 415 limit on “annual
additions” is $45,000.

The restatement of the Plan expands the scope of the Plan, effective January 1, 2007, to also be an
unfunded “excess benefit plan” with respect to the annual compensation limit imposed on
participants in the Qualified Plan under Code Section 401(a)(17). For example, in 2007, the total
amount of annual “compensation” that may be taken into account under the Qualified Plan is limited
to $225,000. Accordingly, effective January 1, 2007, the Plan shall also be a “top hat plan”
within the meaning of the Employee Retirement Income Security Act of 1974, as amended (“ERISA”),
such that the Plan shall be operated as an unfunded pension plan for the benefit of a select group
of management or highly compensated employees.

The Employer may also make additional discretionary contributions to this Plan which are not linked
to the Code Section 415 or 401(a)(17) limits.

ARTICLE I

DEFINITIONS

     1.1. “Account” shall mean an unfunded bookkeeping entry on the Employer’s financial
records established for the benefit of each Participant in this Plan. A Participant’s Account shall
be utilized solely as a device for the determination and measurement of the amounts to be paid to
the Participant pursuant to the Plan. A Participant’s Account shall not constitute or be treated
as a trust fund of any kind.

     1.2. “Beneficiary” shall mean the person or persons that the Participant has
designated on a Beneficiary Designation Form (in substantially the form attached hereto as Exhibit
B) who will receive benefits under the Plan in the event of the Participant’s death. If the

 

 

Participant has not specifically designated any Beneficiary for purposes of the Plan, then the
beneficiary chosen by the Participant for purposes of the Qualified Plan shall become Beneficiary
for purposes of the Plan. In the event no Beneficiary is named for purposes of either the Plan or
Qualified Plan, then the Beneficiary shall be the Participant’s estate.

     1.3. “Board” shall mean the Board of Directors of the Bank of Granite.

     1.4. “Committee” shall mean the committee appointed by the Board to administer this
Plan.

     1.5. “Change in Control” shall mean (i) a change in the ownership of the Employer,
(ii) a change in the effective control of the Employer, or (iii) a change in the ownership of a
substantial portion of the assets of the Employer, as described below.

          (a) A change in the ownership of a corporation occurs on the date that any one person, or more
than one person acting as a group (as defined in Proposed Treasury Regulations section
1.409A-3(g)(5)(v)(B)), acquires ownership of stock of the Employer that, together with stock held
by such person or group, constitutes more than 50 percent of the total fair market value or total
voting power of the stock of such corporation. For these purposes, a change in ownership will not
be deemed to have occurred if no stock of the Employer is outstanding.

          (b) A change in the effective control of the Employer occurs on the date that either (i) any
one person, or more than one person acting as a group (as defined in Proposed Treasury Regulations
section 1.409A-3(g)(5)(vi)(B)) acquires (or has acquired during the 12-month period ending on the
date of the most recent acquisition by such person or persons) ownership of stock of the Employer
possessing 35 percent or more of the total voting power of the stock of the Employer, or (ii) a
majority of the members of the Employer’s board of directors is replaced during any 12-month period
by directors whose appointment or election is not endorsed by a majority of the members of the
Employer’s board of directors prior to the date of the appointment or election, provided that this
sub-section “(ii)” is inapplicable where a majority shareholder of the Employer is another
corporation.

          (c) A change in a substantial portion of the Employer’s assets occurs on the date that any one
person or more than one person acting as a group (as defined in Proposed Treasury Regulations
section 1.409A-3(g)(5)(vii)(C)) acquires (or has acquired during the 12-month period ending on the
date of the most recent acquisition by such person or persons) assets from the Employer that have a
total gross fair market value equal to or more than 40 percent of the total gross fair market value
of (i) all of the assets of the Employer, or (ii) the value of the assets being disposed of, either
of which is determined without regard to any liabilities associated with such assets. For all
purposes hereunder, the definition of Change in Control shall be construed to be consistent with
the requirements of Proposed Treasury Regulations section 1.409A-3(g)(5), except to the extent that
such proposed regulations are superseded by subsequent guidance.

     1.6. “Disability” shall mean the Executive:

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(a) is 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
last for a continuous period of not less than 12 months;

(b) by reason of any medically determinable physical or mental impairment which can be
expected to result in death, or last for a continuous period of not less than 12 months,
is receiving income replacement benefits for a period of not less than three months
under an accident and health plan covering employees of the Employer; or

(c) is determined to be totally disabled by the Social Security Administration.

     1.7. “Early Retirement Age” shall mean the date on which a Participant has attained
age 50 and completed at least six (6) full years of employment with the Employer, measured from the
Participant’s date of hire with the Employer. The Committee shall have sole discretion to
determine whether a Participant has attained Early Retirement Age.

     1.8. “Early Retirement” means a Participant’s Separation from Service on or after his
Early Retirement Age.

     1.9. “Employer” shall mean the Bank of Granite, or any successor corporation or other
entity resulting from a merger or consolidation into or with Employer or a transfer or sale of
substantially all of the assets of Employer.

     1.10. “Normal Retirement Age” shall mean age 65.

     1.11. “Normal Retirement” means a Participant’s Separation from Service on or after
his Normal Retirement Age.

     1.12. “Participant” shall mean an individual who (i) is part of a select group of
management or highly compensated employees of the Employer; (ii) is a participant in the Qualified
Plan (or any successor or replacement retirement plan); and (iii) who has been notified by the
Committee that he is eligible to participate in this Plan.

     1.13. “Plan Year” shall mean the calendar year.

     1.14. “Qualified Plan Discretionary Contributions” shall mean the total of all
discretionary contributions, if any, made by the Employer during a calendar year to the Qualified
Plan.

     1.15. “Separation from Service” shall mean the Participant’s retirement or termination
of service or employment with the Employer under the conditions described in this Section 1.15. No
Separation from Service shall be deemed to occur due to military leave, sick leave or other bona
fide leave of absence if the period of such leave does not exceed six months or, if longer, so long
as the Participant’s right to reemployment is provided by law or contract. If the leave exceeds
six months and the Participant’s right to reemployment is not provided by law or by contract, then
the Participant shall be have a Separation from Service on the first date immediately following
such six-month period.

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     The Participant shall not be treated as having a Separation from Service if the Participant
provides more than insignificant services for the Employer as a common law employee of the Employer
following the Participant’s actual or purported termination of service or employment with the
Employer. Services shall be treated as being more than insignificant if such services are
performed at an annual rate that is at least equal to 20% of the services rendered by the
Participant for the Employer, on average, during the immediately preceding three full calendar
years of service or employment (or if employed less than three years, such shorter period of
employment) and the annual base compensation for such services is at least equal to 20% of the
average base compensation earned during the final three full calendar years of service or
employment (or if employed less than three years, such shorter period of employment).

     Where the Participant continues to provide services to a previous employer in a capacity other
than as an employee (i.e., as an independent contractor), a Separation from Service will not be
deemed to have occurred if the Participant is providing services at an annual rate that is 50% or
more of the services rendered, on average, during the immediate preceding three full calendar years
of employment (or if employed less than three years, such lesser period) and the annual base
compensation for such services is 50% or more of the annual base compensation earned during the
final three full calendar years of employment (or if less, such lesser period).

     1.16. “Specified Employee” means, in the event the Employer or a corporate parent is a
publicly traded company, a key employee within the meaning of Code Section 416(i) without regard to
paragraph 5 thereof, determined in accordance with Code Section 409A and Proposed Treasury
Regulations Section 1.409A-1(i).

     1.17. “Supplemental Employer Discretionary Contribution” shall mean the discretionary
contribution made by the Employer to this Plan.

     1.18. “Unforeseeable Emergency” means a severe financial hardship to the Participant
resulting from (i) an illness or accident of the Participant, the Participant’s spouse, or the
Participant’s dependent (as defined in Code Section 152(a)); (ii) loss of the Participant’s
property due to casualty; or (iii) other similar extraordinary and unforeseeable circumstances
arising as a result of events beyond the Participant’s control. The term “Unforeseeable Emergency”
shall be construed consistent with Code Section 409A and the Treasury Regulations and other
guidance issued thereunder.

ARTICLE II

ELIGIBILITY

     2.1. Eligibility. Eligibility to participate in this Plan shall be determined in the
sole discretion of the Committee. A list of Participants is set forth in Exhibit A to this Plan.

ARTICLE III

CONTRIBUTIONS TO THE PLAN

     3.1. Determination of Contributions. Contributions to the Plan on behalf of any
Participant during any Plan Year shall consist of the amounts described in Sections 3.2 and 3.3.
The determination of the amount of any contribution shall be made during or as soon as

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reasonably practicable following the end of any Plan Year. The Committee shall credit the
contributions to the Participant’s Account on an annual (or more frequent) basis. Participants are
always 100% vested in their Plan Accounts. The Committee shall provide each Participant with an
annual (or more frequent) statement setting forth the value of the Participant’s Account balance.

     3.2. Supplemental Employer Contributions. The Supplemental Employer Contribution to
be credited to a Participant’s Account for a Plan Year shall equal the difference between (i) and
(ii) below. The Committee shall have complete discretion in determining the amount of any such
contribution, notwithstanding the completion of annual or quarterly administration of the Qualified
Plan:

(i) The portion of the Qualified Plan Discretionary Contribution which would have been
allocated to the Participant’s Qualified Plan accounts, pursuant to the terms of the
Qualified Plan, without giving effect to any limitations imposed by Code Sections 415 or
401(a)(17);

          LESS

(ii) The amount of the Qualified Plan Discretionary Contribution actually allocated to the
Participant’s Qualified Plan accounts.

     3.3. Discretionary Contributions. The Board may make additional contributions to any
Participant’s Account. The amounts of any such additional contributions shall be determined by the
Board in its sole discretion.

ARTICLE IV

DEFERRED COMPENSATION ACCOUNTS

     4.1. Participant Accounts. The Committee shall create and maintain an Account for each
Participant. On an annual or more frequent basis, the Committee shall allocate to each
Participant’s Account all current contributions to the Plan, along with any interest or other
earnings on each Participant’s Account.

     4.2. Investments. Each Participant’s Account shall be invested as determined by the
Committee, acting on behalf of the Employer. Such investments shall be based on recommendations
that each Participant provides to the Committee from time to time on an Investment Election Form
(in substantially the form attached hereto as Exhibit D); provided, however, that the number and
type of investment alternatives available under the Plan shall be determined from time to time by
the Committee in its sole discretion.

     4.3. Participant’s Rights Unsecured; Subject to Claims of Creditors. The Plan at all
times shall be entirely unfunded and no provision shall at any time be made with respect to the
segregation of any assets of the Employer for payment of any distributions pursuant the Plan. The
right of a Participant or any Beneficiary to receive a distribution under the Plan shall be equal
to any other unsecured claim against the general assets of the Employer, and neither the
Participant nor any Beneficiary shall have any rights in or against any specific assets of the
Employer. All amounts credited to Participant’s Accounts shall constitute general assets of the

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Employer and may be disposed of by the Employer at such time and for such purposes as it may
deem appropriate.

ARTICLE V

DISTRIBUTIONS

     5.1. Normal or Early Retirement.

     (a) Time of Payment. Except for Disability, death, Unforeseeable Emergency, or
termination of the Plan in accordance with Section 7.2, a Participant’s Account shall be
distributed to a Participant upon the Participant’s Separation from Service with the Employer at or
after the Participant’s Normal or Early Retirement Age. If the Participant’s Separation from
Service occurs prior to the Participant’s Normal or Early Retirement Age, distribution will be
delayed until the Participant attains Normal Retirement Age.

     Notwithstanding the preceding paragraph, if a Participant is a Specified Employee on the date
of his Separation from Service and such Separation from Service occurs on or after the
Participant’s Normal or Early Retirement Age, distribution of the Participant’s Account shall begin
on the first business day of the seventh month after the Participant’s Separation from Service. If
the Participant is a Specified Employee on the date of his Separation from Service and such
Separation from Service occurs prior to the Participant’s Normal or Early Retirement Age,
distribution of the Participant’s Account shall begin on the first business day of the month
following the Participant’s attaining Normal Retirement Age, provided that such starting date is at
least six full months after the Participant’s Separation from Service.

     If a Participant is not a Specified Employee on the date of his Separation from Service,
distribution of the Participant’s Account shall begin on the first business day of the third month
following Separation from Service (or if Separation from Service occurs prior to the Participant’s
Normal or Early Retirement Age, the first business day of the third month following the
Participant’s attaining Normal Retirement Age).

     (b) Form of Payment. No later than the expiration of the transition period under Code
Section 409A for making written elections under this Plan in order to bring the Plan into comply
with Code Section 409A (i.e., December 31, 2007 or such later date as provided by the Internal
Revenue Service), the Participant shall file with the Committee a Distribution Election Form (in
substantially the form attached hereto as Exhibit C) which specifies whether payment of the
Participant’s Account shall be made in the form of a lump sum or installment distributions over a
period not to exceed the Participant’s life expectancy (as determined under applicable Internal
Revenue Service rules). If the Participant fails to timely specify a form of payment, then the
Participant’s Account shall be distributed in a lump sum.

     After the deadline for making Code Section 409A compliance elections, in the event a
Participant wishes to change the specified form of payment (e.g., from installments to lump sum or
vice versa), the Participant may do so by filing a subsequent Distribution Election Form with the
Committee, provided that:

     (i) the subsequent Distribution Election Form shall not be effective for at least 12 months
after the date on which the subsequent election is made;

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     (ii) except for payments upon the Participant’s death, Disability or upon an Unforeseeable
Emergency, the first of a stream of payments for which the subsequent election is made shall be
deferred for a period of not less than five (5) years from the date on which such payment would
otherwise have been made;

     (iii) for payments that were scheduled to be made on a specified date or to commence under a
fixed schedule, the subsequent election must be made at least 12 months before the date of the
first originally scheduled payment.

     5.2. Disability. A Participant shall immediately receive a lump sum distribution of
his Plan Account as soon as practicable following the date on which the Participant experiences a
Disability. The Committee shall determine, in its sole discretion, whether the Participant has
experienced a Disability and, if so, the effective date of such Disability.

     5.3. Death. If a Participant dies before Separation from Service, the Participant’s
Account will be paid in a lump sum to the Participant’s Beneficiary(ies) no later than the first
business day of the third month following the date of the Participant’s death. If a Participant
dies after Separation from Service, but before the full distribution of the Participant’s Account,
distribution will continue to be made to the Participant’s Beneficiary(ies) in the same manner as
it was previously being made to the Participant.

     5.4. Unforeseeable Emergency. In the event a Participant experiences an Unforeseeable
Emergency (as determined in the sole discretion of the Committee), the Participant may request a
lump sum distribution from his Plan Account equal to the amount necessary to satisfy the immediate
and heavy financial need, including an amount necessary to pay any taxes owed upon the distribution
of such amount from the Participant’s Account. In order to request a distribution due to
Unforeseeable Emergency, the Participant must submit to the Committee an Unforeseeable Emergency
Distribution Form (in substantially the form attached hereto as Exhibit E).

ARTICLE VI

ADMINISTRATION OF THE PLAN

     6.1. Administration by Employer. The Committee shall be responsible for the general
operation and administration of the Plan and for carrying out the provisions thereof. The Committee
may engage the services of outside counsel, accountants, financial advisors and other such
professional to assist it in its administrative duties.

     6.2. General Powers of Administration. The Committee shall have authority to control,
interpret and manage the operation and administration of the Plan. Any decision by the Committee
denying a claim by a Participant or a Beneficiary for benefits under the Plan shall be stated in
writing and shall be delivered or mailed to the Participant or Beneficiary. Such statement shall
set forth the specific reasons for the denial. In addition, Committee shall afford a reasonable
opportunity to the Participant or Beneficiary for a full and fair review of the decision denying
such claim.

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     6.3. Claims Procedures. Notwithstanding the above provisions of Section 6.2, to the
extent that ERISA may require specific procedures to be followed in the event of a denial of a
claim, such ERISA provisions will be followed.

     6.4. Binding Arbitration. All disputes concerning denied benefits under the Plan
shall be settled by binding arbitration administered by the American Arbitration Association under
its Commercial Arbitration Rules, using a single arbitrator located in the general area of Hickory,
North Carolina. Judgment on the award rendered by the arbitrator(s) may be entered in any court
having jurisdiction thereof.

ARTICLE VII

AMENDMENT OF TERMINATION

     7.1. Amendment or Termination. Although Employer intends the Plan to be permanent, the
Employer reserves the right, in its sole discretion, to amend or terminate the Plan. Any such
amendment or termination shall be made pursuant to a resolution of the Board.

     7.2. Effect of Amendment or Termination. No amendment or termination of the Plan shall
directly or indirectly reduce the balance of any Participant’s Account below that existing as of
the date of the Board resolution amending or terminating the Plan. Subject to the requirements of
Code Section 409A, in the event of complete termination, the Plan shall cease to operate and the
Employer shall pay each Participant his Account in a lump sum within the time periods specified
below.

     (a) The Board may terminate the Plan within 12 months of a corporate dissolution taxed under
Code section 331, or with approval of a bankruptcy court pursuant to 11 U.S.C. §503(b)(1)(A),
provided that the amounts deferred under the Plan are included in each Participant’s gross income
in the latest of (i) the calendar year in which the Plan terminates; (ii) the calendar year in
which the amount is no longer subject to a substantial risk of forfeiture; or (iii) the first
calendar year in which the payment is administratively practicable.

     (b) The Board may terminate the Plan within the 30 days preceding a Change in Control (but not
following a Change in Control), provided that the Plan shall only be treated as terminated if all
substantially similar arrangements sponsored by the Employer are terminated so that the
Participants and all participants under substantially similar arrangements are required to receive
all amounts of compensation deferred under the terminated arrangements within 12 months of the date
of the termination of the arrangements.

     (c) The Board may terminate the Plan provided that (i) all arrangements sponsored by the
Employer that would be aggregated with this Plan under Proposed Treasury regulations section
1.409A-1(c) if any Participant covered by this Plan was also covered by any of those other
arrangements are also terminated; (ii) no payments other than payments that would be payable under
the terms of the arrangement if the termination had not occurred are made within 12 months of the
termination of the arrangement; (iii) all payments are made within 24 months of the termination of
the arrangements; and (iv) the Employer does not adopt a new arrangement that would be aggregated
with any terminated arrangement under Proposed Treasury regulations

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section 1.409A-1(c) if the same Participant participated in both arrangements, at any time within
five years following the date of termination of the arrangement.

ARTICLE VIII

GENERAL PROVISIONS

     8.1. Independence of Other Benefit Plans. Participation in the Plan shall in no way
restrict or otherwise impact a Participant’s participation in any other retirement benefit plan
sponsored by the Employer.

     8.2. No Guarantee of Benefits. Nothing contained in the Plan shall constitute a
guaranty by the Employer or any other person or entity that the assets of the Employer will be
sufficient to pay any benefit hereunder.

     8.3. No Enlargement of Employee Rights. No Participant shall have any right to receive
a distribution of any contribution made under the Plan except in accordance with the terms of the
Plan. Establishment of the Plan shall not be construed to give any Participant the right to be
retained in the service of the Employer.

     8.4. Spendthrift Provision. No interest of any person or entity in, or right to
receive a distribution under, the Plan shall be subject in any manner to sale, transfer,
assignment, pledge, attachment, garnishment, or other alienation or encumbrance of any kind; nor
may such interest or right to receive a distribution be taken, either voluntarily or involuntarily
for the satisfaction of the debts of, or other obligations or claims against, such person or
entity, including claims for alimony, support, separate maintenance and claims in bankruptcy
proceedings.

     8.5. Applicable Law. The Plan shall be construed and administered under the laws of
the State of North Carolina.

     8.6. Severability. In the event that any of the provisions of the Plan are held to be
inoperative or invalid by any court of competent jurisdiction, then: (i) insofar as is reasonable,
effect will be given to the intent manifested in the provision held invalid or inoperative, and
(ii) the validity and enforceability of the remaining provisions of the Plan will not be affected
thereby.

     8.7. Incapacity of Recipient. If any person entitled to a distribution under the Plan
is deemed by the Employer to be incapable (physically or mentally) of personally receiving and
giving a valid receipt for any payment pursuant to the Plan, then, unless and until claim therefore
shall have been made by a duly appointed guardian or other legal representative of such person, the
Employer may provide for such payment or any part thereof to be made to any other person or
institution then contributing toward or providing for the care and maintenance of such person. Any
such payment shall be a payment for the account of such person and a complete discharge of any
liability of the Employer and the Plan with respect to such payment.

     8.8. Corporate Successors. The Plan shall not be automatically terminated by a Change
in Control of the Employer. Should such Change in Control occur, the Plan will be continued unless
the transferee, purchaser or successor entity specifically declines in writing to

9

 

continue the Plan. In the event that the Plan is not continued by the transferee, purchaser or
successor entity, then the Plan shall terminate subject to the provisions of Section 7.2 of the
Plan.

     8.9. Unclaimed Benefits. Each Participant shall keep Employer informed of his or her
current address and the current address of his or her Beneficiary. Employer shall not be obligated
to search for the whereabouts of any person. If the location of a Participant is not made known to
Employer within a one (1) year period after the date on which payment of the Participant’s Account
is first to be made, then payment may be made by the Employer to the Participant’s Beneficiary
instead. If, within one (1) additional year after such initial one (1) year period, Employer is
unable to locate any designated Beneficiary of the Participant, then Employer shall have no further
obligation to pay any benefit under the Plan to such Participant or designated Beneficiary and any
such benefit shall be irrevocably forfeited.

     8.10. Limitations on Liability. Notwithstanding any of the preceding provisions of the
Plan, neither Employer nor any individual acting as employee or agent of Employer shall be liable
to any Participant, former Participant or other person for any claim, loss, liability or expense
incurred in connection with the Plan.

     8.11. Forfeiture of Benefits. Notwithstanding any other provision of the Plan, should
a Participant engage in theft, fraud, embezzlement or willful misconduct causing significant
property damage to Employer, then any benefits payable to such Participant under the Plan will
automatically be forfeited. The determination of theft, embezzlement or willful misconduct will be
made by the Board in good faith, but such determination does not require an actual criminal
indictment or conviction prior to or after such decision. In any determination of forfeiture
pursuant to this Section 8.12, the Participant will be given the opportunity to refute any such
decision by the Board, but the Board’s decision on the matter will be considered final and binding
on the Participant and all other parties.

     8.12. Gender. Words in the masculine gender shall include the feminine and the
singular shall include the plural, and vice versa, unless qualified by the context.

     8.13. Headings. Any headings used herein are included for ease of reference only, and
are not to be construed so as to alter the terms hereof.

     8.14. Income and Employment Tax Withholding. Any withholding of taxes or other
amounts with respect to the contributions to, or earnings on, the Participant’s Account that is
required by federal, state or local law shall be withheld from the Participant’s compensation from
the Employer (if any) or from the Participant’s Account before such amounts are distributed to the
Participant (e.g., any applicable FICA taxes under Code Section 3121(v)(2)).

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     IN WITNESS WHEREOF, this Plan has been amended and restated, generally effective January 1,
2005.

	 	 	 	 	 
	 	BANK OF GRANITE

 	 
	Date April 16, 2007 	By:  	/s/ Charles M. Snipes
 	 
	 	 	Charles M. Snipes, Chief Executive Officer	 

11

 

	 	 	 	 	 

BANK OF GRANITE

SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN

EXHIBIT A

	 	 	 
	Participant’s Name	 	Date of Participation
	John A. Forlines, Jr.

	 	December 12, 1994
	 
	 	 
	Charles M. Snipes

	 	December 12, 1994
	 
	 	 
	Samuel M. Black

	 	January 2, 2007

12

 

BANK OF GRANITE

SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN

EXHIBIT B — BENEFICIARY DESIGNATION FORM

	 	 	 	 	 	 	 	 	 	 	 
	Participant Name:

	 	 	 	 	 	SSN:	 	 	 	 
	 

	 	 

	 	 
	 	 	 	 

	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Mailing Address:
	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 
	 
	 	 	 	 	 	 	 	 	 	 
	 
	City 
	 	State	 	 	 	Zip Code

In accordance with the terms of the Bank of Granite Supplemental Executive Retirement Plan (the
“Plan”), I hereby designate the following Beneficiary(ies) to receive any death benefits under the
Plan:

	 	 	 	 	 	 	 	 	 	 	 
	PRIMARY BENEFICIARY:
	 
	 	 	 	 	 	 	 	 	 	 
	Name:

	 	 	 	 	 	% of Benefit:	 	 	 	 
	 

	 	 

	 	 
	 	 	 	 

	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Name:

	 	 	 	 	 	% of Benefit:	 	 	 	 
	 

	 	 

	 	 
	 	 	 	 

	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Name:

	 	 	 	 	 	% of Benefit:	 	 	 	 
	 

	 	 

	 	 
	 	 	 	 

	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	SECONDARY BENEFICIARY (if all Primary Beneficiaries pre-decease the Executive):
	 
	Name:

	 	 	 	 	 	% of Benefit:	 	 	 	 
	 

	 	 

	 	 
	 	 	 	 

	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Name:

	 	 	 	 	 	% of Benefit:	 	 	 	 
	 

	 	 

	 	 
	 	 	 	 

	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Name:

	 	 	 	 	 	% of Benefit:	 	 	 	 
	 

	 	 

	 	 
	 	 	 	 

	 	 

     This Beneficiary Designation hereby revokes any prior Beneficiary Designation which may have
been in effect and this Beneficiary Designation is revocable.

	 	 	 	 	 	 	 
	 

Date

	 	 
	 	 

Participant
	 	 

13

 

BANK OF GRANITE

SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN

EXHIBIT C — DISTRIBUTION ELECTION FORM

	 	 	 	 	 	 	 	 	 	 	 
	Payee’s Name:

	 	 	 	 	 	SSN:	 	 	 	 
	 

	 	 

	 	 
	 	 	 	 

	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Mailing Address:
	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 
	 
	 	 	 	 	 	 	 	 	 	 
	 
	City 
	 	State	 	Zip Code

	 	 	 	 	 
	Participant’s Date of Birth:
	 	 	 	 
	 

	 	 

	 	 

Distribution of a Participant’s Plan Account shall be made upon the earliest of the
Participant’s (i) death; (ii) disability; (iii) separation from service at or after early
retirement (age 50 with 6 full years of service);or (iv) separation from service at or after normal
retirement (age 65).

I hereby elect to receive my distribution in the manner indicated below:

	o	 	A. Lump sum
	 
	o	 	B. Installment payments over a fixed period (please check only one “Frequency” box below and fill in the number
of years over which payments should be made, which cannot exceed your life expectancy, as determined under
IRS rules)

Frequency: o monthly          o quarterly          o semi-annually          o annually

Number of Years Over Which Payments Will Be Made:                                        

	 	 	 	 	 	 	 
	 

Date

	 	 
	 	 

Participant (or Beneficiary)’s Signature
	 	 

14

 

BANK OF GRANITE

SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN

EXHIBIT D — INVESTMENT ELECTION FORM

	 	 	 	 	 	 	 	 	 	 	 
	Participant Name:

	 	 	 	 	 	SSN:	 	 	 	 
	 

	 	 

	 	 
	 	 	 	 

	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Mailing Address:
	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 
	 
	 	 	 	 	 	 	 	 	 	 
	 
	City 
	 	State	 	Zip Code

I understand that I have the right to make recommendations to the Committee that administers the
Bank of Granite Supplemental Executive Retirement Plan (the “Plan”) regarding how I want to invest
the bookkeeping account (“Plan Account”) established by the Committee under the Plan for my
benefit, based upon those investment vehicles that the Committee makes available under the Plan
from time to time. However, I also understand that the Committee is not required to follow
my recommendations and that my entire Plan Account is subject to the claims of the Bank’s creditors
until the Plan Account is distributed in full to me. Accordingly, I hereby recommend to the
Committee the following investments for my Plan Account. I understand that I can change my
investment recommendations from time to time.

	 	 	 
	% of Plan Account	 	Description of Investment Vehicle (for example, the mutual fund name)
	 

	 	Vanguard Interim-Term Bond Index
	 

	 	 Vanguard
Long Term Bond Index
	 

	 	 Vanguard
Total Bond Market Index
	 

	 	 Vanguard
REIT Index
	 

	 	 Vanguard
500 Index
	 

	 	 Vanguard
Growth Index
	 

	 	 Vanguard
Large Cap Index
	 

	 	 Vanguard
Mid Capitalization Index
	 

	 	 Vanguard
Small Cap Index
	 

	 	 Vanguard
Value Index
	 

	 	 Vanguard
Life Strategy Conserv Growth
	 

	 	 Vanguard
Life Strategy Income
	 

	 	 Vanguard
Life Strategy Moderate Growth
	 

	 	 
	 
	 	 
	Total = 100%
	 	 

	 	 	 	 	 	 	 
	 

Date

	 	 
	 	 

Participant’s Signature
	 	 

15

 

BANK OF GRANITE

SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN

EXHIBIT E — UNFORSEEABLE EMERGENCY DISTRIBUTION FORM

	 	 	 	 	 	 	 	 	 	 	 
	Payee’s Name:

	 	 	 	 	 	SSN:	 	 	 	 
	 

	 	 

	 	 
	 	 	 	 

	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Mailing Address:
	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 
	 
	 	 	 	 	 	 	 	 	 	 
	 
	City 
	 	State	 	Zip Code

I hereby request an immediate distribution from my Plan Account of $                     due to
unforeseeable financial emergency.

On the lines below, please describe the nature of the unforeseeable financial emergency and
why the amount requested is the appropriate amount necessary to relief this financial need. Also,
please provide any documentation you may have to substantiate your claim and the amount needed to
satisfy the financial need. Note that if the financial emergency can be satisfied through
reimbursement or insurance compensation, it does not qualify for a financial hardship distribution.
Examples of financial hardship distributions include unexpected illness of you, your spouse or
dependents or loss of your property due to casualty and other similar events. Purchasing a home or
car or paying college expenses does not qualify as an unforeseeable emergency under the IRS’s
rules.

Note that you cannot repay financial hardship distributions to the Plan and that
amounts distributed to you are immediately taxed when paid to you.

My unforeseeable financial emergency is as follows:

 

 

 

 

 

 

	 	 	 	 	 	 	 
	 

Date

	 	 
	 	 

Participant (or Beneficiary)’s Signature
	 	 

16

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