Document:

<PAGE>

                                                                     Exhibit 4.1
                       AMENDMENT NO. 2 TO RIGHTS AGREEMENT

     Amendment No. 2, dated as of March 27, 2002 (this "Amendment"), to the
Rights Agreement, dated as of December 14, 1998 (the "Rights Agreement"), by and
between CRESTLINE CAPITAL CORPORATION, a Maryland corporation (the "Company")
and THE BANK OF NEW YORK (the "Rights Agent"), as amended by that certain
Amendment No. 1 to Rights Agreement by and between the Company and the Rights
Agent, dated June 25, 1999 ("Amendment No. 1", and the Rights Agreement as so
amended, the "Amended Rights Agreement").

                                    RECITALS

     WHEREAS, the Company and the Rights Agent have heretofore executed and
entered into the Amended Rights Agreement;

     WHEREAS, pursuant to Section 27 of the Amended Rights Agreement, the
Company and the Rights Agent may from time to time supplement or amend the
Rights Agreement in accordance with the provisions of Section 27 thereof;

     WHEREAS, the Company has determined that it is necessary and desirable to
supplement and amend the Amended Rights Agreement to give effect to certain
matters set forth in a proposed Agreement and Plan of Merger between the
Company, Barcelo Gestion Hotelera, S.L., a Spanish limited liability company
("Parent"), and Cowboy Acquisition Corporation, a Maryland corporation ("Sub");

     WHEREAS, the Board has determined that this amendment does not adversely
affect the interests of the holder of Rights Certificates (other than an
Acquiring Person or an Affiliate or Association of any such Person, as such
terms are defined in the Amended Rights Agreement); and

     WHEREAS, all acts and things necessary to make this Amendment a valid
agreement according to its terms have been done and performed, and the execution
and delivery of this Amendment by the Company and the Rights Agent have been in
all respects authorized by the Company and the Rights Agent;

     NOW, THEREFORE, in consideration of the mutual covenants and agreements
made in the Amended Rights Agreement and this Amendment, the parties hereto
agree as follows:

     1.   Capitalized terms used herein and not otherwise defined herein shall
have the meanings attributed to such terms in the Amended Rights Agreement as
amended hereby.

     2.   Section 1(a) of the Amended Rights Agreement is hereby modified and
amended to read in its entirety as follows:

<PAGE>

          "(a) "Acquiring Person" shall mean any Person (as defined herein) who
     or which, together with all Affiliates and Associates (as such terms are
     hereinafter defined) of such Person, shall be the Beneficial Owner (as
     defined herein) of 10% or more of the shares of Common Stock then
     outstanding, but shall not include (i) Barcelo Gestion Hotelera, S.L., a
     Spanish limited liability company ("Parent"), Cowboy Acquisition
     Corporation, a Maryland corporation ("Sub"), and any assignee of Parent or
     Sub permitted under the Agreement and Plan of Merger dated as of March 27,
     2002, by and among Parent, Sub and the Company (the "Plan of Merger") or
     any Affiliate or Associate of Parent or Sub (such permitted assignees,
     Affiliates and Associates, together with Parent and Sub, "Barcelo"),
     provided, however, that Barcelo will become an "Acquiring Person" in the
     --------  -------
     event that Barcelo becomes the Beneficial Owner of an aggregate of 10% or
     more of the Common Stock then outstanding, other than pursuant to the terms
     of the Plan of Merger and actions associated therewith including the (x)
     the approval, execution or delivery of the Plan of Merger, and (y) the
     acceptance for payment and purchase of shares of Common Stock pursuant to
     the Plan of Merger and the consummation of the Merger, in each case in
     accordance with the terms of the Plan of Merger, as the same may be from
     time to time amended, (ii) any Person that on June 25, 1999 (the date of
     Amendment No. 1) was a Beneficial Owner of 10% or more of the shares of
     Common Stock then outstanding; provided, however, that such Person shall
                                    --------  -------
     nonetheless become an Acquiring Person in the event such Person thereafter
     acquires Beneficial Ownership of an additional share of Common Stock, (iii)
     the Company, (iv) any Subsidiary of the Company, or (v) any employee
     benefit plan of the Company or any Subsidiary of the Company, or any Person
     holding shares of Common Stock for or pursuant to the terms of any such
     plan to the extent, and only to the extent, of such shares so held.
     Notwithstanding the foregoing, no Person shall become an "Acquiring Person"
     as the result of an acquisition of shares of Common Stock by the Company
     which, by reducing the number of shares of Common Stock outstanding,
     increases the proportionate number of shares of Common Stock beneficially
     owned by such Person to 10% or more of the shares of Common Stock of the
     Company then outstanding; provided, however, that if a Person shall become
                               --------  -------
     the Beneficial Owner of 10% or more of the Common Stock of the Company then
     outstanding by reason of share purchases by the Company and shall, after
     such share purchases by the Company, become the Beneficial Owner of any
     additional shares of Common Stock of the Company, then such Person shall be
     deemed to be an "Acquiring Person" if such Person is then the Beneficial
     Owner of 10% or more of the Common Stock then outstanding. Notwithstanding
     the foregoing, if the Board of Directors of the Company determines in good
     faith that a Person who would otherwise be an "Acquiring Person", as
     defined pursuant to the foregoing provisions of this paragraph (a), has
     become such inadvertently, and such Person divests as promptly as
     practicable a sufficient number of shares of Common Stock so that such
     Person would no longer be an "Acquiring Person", then such Person shall not
     be deemed an "Acquiring Person" for any purposes of this Agreement unless
     and until such Person shall again become an "Acquiring Person"."

3.   Section 1(k) of the Amended Rights Agreement is hereby amended by  adding
the following sentence to the end of the existing paragraph:

<PAGE>

     "Notwithstanding anything in this Agreement to the contrary, no
     Distribution Date shall be deemed to have occurred solely as a result of
     (i) the approval, execution or delivery of the Plan of Merger, (ii) the
     acceptance for payment of shares of Common Stock pursuant to the Plan of
     Merger or (iii) the consummation of the Merger (as defined in the Plan of
     Merger), in each case in accordance with the terms of the Plan of Merger,
     as the same may be from time to time amended."

4.   Section 1(ff) of the Amended Rights Agreement is hereby amended by adding
the following sentence to the end of the existing paragraph:

     "Notwithstanding anything in this Agreement to the contrary, no Stock
     Acquisition Date shall be deemed to have occurred solely as a result of (i)
     the approval, execution or delivery of the Plan of Merger or (ii) the
     acceptance for payment of shares of Common Stock pursuant to the Plan of
     Merger (iii) the consummation of the Merger (as defined in the Plan of
     Merger), in each case in accordance with the terms of the Plan of Merger,
     as the same may be from time to time amended."

5.   Section 7(a) of the Amended Rights Agreement is hereby modified and amended
to read in its entirety as follows:

     "(a) Subject to Section 7(e) hereof, the registered holder of any Rights
     Certificate may exercise the Rights evidenced thereby (except as otherwise
     provided herein, including, without limitation, the restrictions on
     exercisability set forth in Section 9(c), Section 11(a)(iii) and Section
     23(a) hereof) in whole or in part at any time after the Distribution Date
     upon surrender of the Rights Certificate, with the form of election to
     purchase and the certificate on the reverse side thereof duly and properly
     executed, to the Rights Agent at the office of the Rights Agent designated
     for such purpose, together with payment of the Purchase Price for each
     one-thousandth of a share of Series A Preferred Stock (or other securities,
     cash or other assets, as the case may be) as to which the Rights are
     exercised, at or prior to the earlier of (i) the close of business on
     December 13, 2008 (the "Final Expiration Date"), (ii) the time at which the
     Rights are redeemed as provided in Section 23 hereof, (iii) the time at
     which such Rights are exchanged (the "Exchange Date") as provided in
     Section 24 hereof, (iv) the time at which the Rights expire pursuant to
     Section 13(d) hereof, or (v) immediately prior to the Effective Time of the
     Merger (as defined in the Plan of Merger) (the earliest of (i), (ii),
     (iii), (iv) and (v) being herein referred to as the "Expiration Date")."

6.   Section 11(a)(ii) of the Amended Rights Agreement is hereby amended by
adding the following sentence to the end of the existing paragraph:

     "Notwithstanding anything in this Agreement to the contrary, no Section
     11(a)(ii) Event shall be deemed to have occurred solely as a result of (i)
     the approval, execution or delivery of the Plan of Merger, (ii) the
     acceptance for payment and purchase of shares of Common Stock pursuant to
     the Plan of Merger or (iii) the consummation of the Merger (as defined in
     the Plan of Merger), in each case in accordance with the terms of the Plan
     of Merger, as the same may be from time to time amended."

<PAGE>

7.   Section 13(a) of the Amended Rights Agreement is hereby amended by adding
the following sentence to the end of the existing paragraph:

     "Notwithstanding anything in this Agreement to the contrary, none of the
     events described in clauses (x) through (z) of the first sentence of
     Section 13(a) shall be deemed to have occurred solely as a result of (i)
     the approval, execution or delivery of the Plan of Merger, (ii) the
     acceptance for payment and purchase of shares of Common Stock pursuant to
     the Plan of Merger or (iii) the consummation of the Merger (as defined in
     the Plan of Merger), in each case in accordance with the terms of the Plan
     of Merger, as the same may be from time to time amended."

8.   The Summary of Rights attached as Exhibit B to the Amended Rights Agreement
is amended by deleting the existing Exhibit B and substituting in its place the
Exhibit B attached hereto.

9.   Except as expressly amended hereby, the Amended Rights Agreement remains in
full force and effect in accordance with its terms and shall be binding upon all
parties thereto in all respects and is hereby ratified and confirmed.

10.  This Amendment shall be deemed to be a contract made under the laws of the
State of Maryland and for all purposes to be governed by and construed in
accordance with the laws of such State.

11.  This Amendment may be executed in one or more counterparts each of which
when so executed and delivered will be deemed an original but all of which will
constitute one and the same amendment.

12.  Except as expressly set forth herein, this Amendment to the Amended Rights
Agreement shall not by implication or otherwise alter, modify, amend or in any
way affect any of the terms, conditions, obligations, covenants or agreements
contained in the Amended Rights Agreement, all of which are ratified and
affirmed in all respects and shall continue in full force and effect.

                            [Signature Page Follows]

<PAGE>

     IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be
duly executed and their respective corporate seals to be hereunto affixed and
attested, all as of the day and year first above written.

ATTEST                                      CRESTLINE CAPITAL CORPORATION

By:  /s/ Tracy M.J. Colden                         By:  /s/ Bruce D. Wardinski
  --------------------------------                   ---------------------------
Name:   Tracy M.J. Colden                   Name:  Bruce D. Wardinski
Title:  Secretary                           Title: President and Chief
                                                   Executive Officer

ATTEST                                      THE BANK OF NEW YORK

By: /s/ John Poplasky                       By:  /s/ John I. Sivertsen
  --------------------------------             ---------------------------------
Name:    John Poplasky                      Name:  John I. Sivertsen
Title:   Assistant Vice President           Title: Vice President

<PAGE>

                                                                       EXHIBIT B

                          SUMMARY OF RIGHTS TO PURCHASE
                  SERIES A JUNIOR PARTICIPATING PREFERRED STOCK

     On December 11, 1998, the Board of Directors of CRESTLINE CAPITAL
CORPORATION (the "Company") declared effective on December 14, 1998 a dividend
distribution of one right ("Right") for each outstanding share of common stock
(the "Common Stock") of the Company. The distribution is payable to stockholders
of record on December 15, 1998. Each Right, when exercisable, entitles the
registered holder to purchase from the Company one one-thousandth of a share of
Series A Junior Participating Preferred Stock ("Preferred Stock") at a price of
$65.00 per one one-thousandth share (the "Purchase Price"), subject to
adjustment. The description and terms of the Rights are set forth in a Rights
Agreement dated as of December 14, 1998 and amended as of June 25, 1999,
("Amendment No. 1") and amended as of March 27, 2002 ("Amendment No. 2"), (as
amended, the "Rights Agreement") between the Company and The Bank of New York,
as Rights Agent (the "Rights Agent").

     Initially, the Rights will be attached to all certificates representing
shares of Common Stock then outstanding, and no separate certificates evidencing
the Rights will be distributed. The Rights will separate from the Common Stock
and a distribution of Rights Certificates (as defined below) will occur upon the
earlier to occur of (i) 10 days following a public announcement that a person or
group of affiliated or associated persons (an "Acquiring Person") has acquired,
or obtained the right to acquire, beneficial ownership of 10% or more of the
outstanding shares of Common Stock (the "Stock Acquisition Date") (except for
stockholders who owned 10% or more of the outstanding shares of Common Stock as
of June 25, 1999, the date of Amendment No. 1, provided no additional shares of
Common Stock are acquired), or (ii) 10 business days (or such later date as the
Board of Directors may determine) following the commencement of a tender offer
or exchange offer the consummation of which would result in the beneficial
ownership by a person of 10% or more of the outstanding shares of Common Stock
(the earlier of such dates being called the "Distribution Date"). In addition,
the Rights Agreement contains exceptions for acquisitions by (i) Barcelo Gestion
Hotelera, S.L., a Spanish limited liability company ("Parent"), Cowboy
Acquisition Corporporation, a Maryland corporation and wholly owned subsidiary
of Parent ("Sub"), solely to the extent that Parent, its Affiliates and
Associates, or Sub become Beneficial Owners of 10% of more of the shares of
Common Stock then outstanding pursuant to the terms of the Plan of Merger, (ii)
the Company, (iii) any subsidiary of the Company and (iv) any employee benefit
plan of the Company or any subsidiary of the Company or any person holding
shares of Common Stock for or pursuant to the terms of any such benefit plan.
For purposes of the Rights Agreement, a person shall not be deemed to
beneficially own "Exempt Shares" which include (i) shares of Common Stock that
are received pursuant to the distribution by Host Marriott Corporation (the
"Distribution") of the shares of Common Stock of the Company to the holders of
shares of common stock, par value $1.00 per share of Host Marriott Corporation
("HM Common Stock") held of record on the record date fixed for the
distribution, provided that such shares of HM Common Stock were beneficially
owned by such person on February 3, 1989, and owned continuously thereafter
until the Distribution; (ii) certain shares of Common Stock which were acquired
by a person pursuant

<PAGE>

to a gift, bequest, inheritance or distribution from a trust or from a
corporation controlled by such person where such shares of Common Stock were
Exempt Shares immediately prior to such acquisition; and (iii) certain shares of
Common Stock which were acquired by a person as a result of a stock dividend,
stock distribution or recapitalization, in respect of Exempt Shares only.

     Until the Distribution Date, (i) the Rights will be evidenced by the Common
Stock certificates, and will be transferred with and only with the Common Stock
certificates, (ii) new Common Stock certificates issued after December 15, 1998
upon transfer or new issuance of the Common Stock will contain a notation
incorporating the Rights Agreement by reference, and (iii) the surrender for
transfer of any certificates for Common Stock outstanding will also constitute
the transfer of the Rights associated with the Common Stock represented by such
certificate.

     Pursuant to Amendment No. 2 to the Rights Agreement, neither the approval,
execution or delivery of the Plan of Merger by the Company or the acceptance for
payment and purchase of the Company's Common Stock pursuant to the Plan of
Merger, or consummation of the Merger (as defined in the Plan of Merger) will
result in a Stock Acquisition Date.

     The Rights are not exercisable until the Distribution Date and will expire
at the close of business on December 13, 2008, unless earlier redeemed or
exchanged by the Company as described below or earlier terminated immediately
prior to the consummation of the Merger pursuant to the Plan of Merger. The
Rights will not be exercisable by a holder in any jurisdiction where the
requisite qualification to the issuance to such holder, or the exercise by such
holder, of the Rights has not been obtained or is not obtainable.

     As soon as practicable following the Distribution Date, separate
certificates evidencing the Rights ("Rights Certificates") will be mailed to
holders of record of the Common Stock as of the close of business on the
Distribution Date and, thereafter, the separate Rights Certificates alone will
evidence the Rights. Except as otherwise determined by the Board of Directors,
only shares of Common Stock issued prior to the Distribution Date will be issued
with Rights.

     In the event that a Person becomes the beneficial owner of 10% or more of
the then outstanding shares of Common Stock (except pursuant to an offer for all
outstanding shares of Common Stock which the Board of Directors determine to be
fair to and otherwise in the best interests of the Company and its
stockholders), each holder of a Right will, after the end of a redemption period
referred to below, have the right (subject to the ownership limit and the other
ownership restrictions contained in the Company's Charter) to exercise the Right
by purchasing, for an amount equal to the Purchase Price, Common Stock (or, in
certain circumstances, cash, property or other securities of the Company) having
a value equal to two times such amount. Notwithstanding any of the foregoing,
following the occurrence of the events set forth in this paragraph, all Rights
that are, or (under certain circumstances specified in the Rights Agreement)
were, beneficially owned by any Acquiring Person will be null and void. However,
Rights are not exercisable following the occurrence of the events set forth
above until such time as the Rights are no longer redeemable by the Company as
set forth below.

<PAGE>

     In the event that, at any time following the Stock Acquisition Date, (i)
the Company is acquired in a merger or other business combination transaction in
which the Company is not the surviving corporation (other than a merger which
follows an offer described in the preceding paragraph), or (ii) 50% or more of
the Company's assets or earning power is sold or transferred, each holder of a
Right (except Rights which previously have been voided as set forth above)
shall, after the expiration of the redemption period referred to below, have the
right to receive, upon exercise, common stock of the acquiring company having a
value equal to two times the Purchase Price of the Right.

     At any time after a person or group of affiliated or associated persons
becomes an Acquiring Person, the Board of Directors of the Company may exchange
the Rights (other than Rights owned by such person or group which have become
void), in whole or in part, at an exchange ratio of one share of Common Stock
per Right (subject to adjustment).

     The Purchase Price payable, and the number of one one-thousandths of a
share of Preferred Stock or other securities or property issuable, upon exercise
of the Rights are subject to adjustment from time to time to prevent dilution
(i) in the event of a stock dividend on, or a subdivision, combination or
reclassification of the Preferred Stock, (ii) upon the grant to holders of the
Preferred Stock of certain rights or warrants to subscribe for Preferred Stock
or convertible securities at less than the current market price of the Preferred
Stock or (iii) upon the distribution to holders of the Preferred Stock of
evidences of indebtedness or assets (excluding regular quarterly cash dividends)
or of subscription rights or warrants (other than those referred to above).

     With certain exceptions, no adjustment in the Purchase Price will be
required until cumulative adjustments require an adjustment of at least 1% in
such Purchase Price. No fractional shares will be issued (other than fractions
which are integral multiples of one one-thousandth of a share of Preferred
Stock) and in lieu thereof, an adjustment in cash will be made based on the
market price of the Preferred Stock on the last trading date prior to the date
of exercise.

     In general, the Board of Directors of the Company, may cause the Company to
redeem the Rights in whole, but not in part, at any time during the period
commencing on December 14, 1998, and ending on the tenth day following the Stock
Acquisition Date, as such period may be extended or shortened by the Board of
Directors (the "Redemption Period") at a price of $.005 per Right (payable in
cash, Common Stock or other consideration deemed appropriate by the Board of
Directors). Under certain circumstances set forth in the Rights Agreement, the
decision to redeem the Rights will require the concurrence of two-thirds of the
Board of Directors. After the Redemption Period has expired, the Company's right
of redemption may be reinstated if an Acquiring Person reduces his beneficial
ownership to less than 10% of the outstanding shares of Common Stock in a
transaction or series of transactions not involving the Company and there are no
other Acquiring Persons. Immediately upon the action of the Board of Directors
of the Company ordering redemption of the Rights, the Rights will terminate and
the only right of the holders of Rights will be to receive the $.005 redemption
price.

<PAGE>

     Until a Right is exercised, the holder thereof, as such, will have no
rights as a stockholder of the Company, including, without limitation, the right
to vote or to receive dividends. While the distribution of the Rights will not
be subject to federal taxation to stockholders or to the Company, stockholders
may, depending upon the circumstances, recognize taxable income in the event
that the Rights become exercisable for Common Stock (or other consideration) of
the Company or for common stock of the acquiring company as set forth above.

<PAGE>

     WITNESS the facsimile signature of the proper officers of the Company and
its corporate seal.

Dated as of _____________, ____

ATTEST:                                     CRESTLINE CAPITAL CORPORATION

By: ____________________________________    By:
____________________________________
     Name:                                      Name:
     Title:                                     Title:

 COUNTERSIGNED:

 THE BANK OF NEW YORK

 By: ____________________________________
 Name: Title:Prepared by R.R. Donnelley Financial -- Agreement

  
 EXHIBIT 10.2(i) 
  
 EXECUTIVE SUPPLEMENTAL RETIREMENT PLAN 
  
 EXECUTIVE AGREEMENT 
  
 THIS AGREEMENT is made and entered into this 17th day of July, 2001, by and between The Peoples Bank & Trust Company, a bank organized and existing
under the laws of the State of Alabama (hereinafter referred to as the “Bank”), and Richard P. Morthland, 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 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 the Executive’s continued services so essential to the Bank’s future growth
and profits, that it would suffer severe financial loss ‘should the Executive terminate their services; 
  
 ACCORDINGLY, the
Board has adopted The Peoples Bank & Trust Company 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 Security Act of 1974, as amended (“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; and 
  
 NOW, THEREFORE, in
consideration of services 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 March 16, 2001. 
  

	 	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 the “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 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 service that is effective prior to the Normal Retirement Age stated herein, provided the Executive has attained age sixty-two (62). 
  

	 	E.
	 
	Termination of Service: 
 

  
 Termination of Service shall mean the Executive’s voluntary resignation of service by the Executive after a Change of Control (Subparagraph I [J]) or the Bank’s discharge of the Executive without cause, prior to the Normal
Retirement Age (Subparagraph I [K]). 
  

	 	F.
	 
	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 Early Retirement Date (Subparagraph I [D]) or Retirement Date (Subparagraph I [C]),
such liability reserve account shall be increased or decreased each Plan Year, until the aforestated event occurs, by the Index Retirement Benefit (Subparagraph I [G]). 
 

 2 

  

	 	G.
	 
	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 [H]) for that Plan Year over the Cost of Funds Expense (Subparagraph I [I]) for that
Plan Year. 
  

	 	H.
	 
	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. 
  
 
	 Insurance Company:
 	 	 Southland Life Insurance Company
 
	 Policy Form:
 	 	 Flexible Premium Adjustable Life
 
	 Policy Name:
 	 	 Max UL
 
	 Insured’s Age and Sex:
 	 	 60, Male
 
	 Riders:
 	 	 None
 
	 Ratings:
 	 	 Table B
 
	 Option:
 	 	 Level
 
	 Face Amount:
 	 	 $1,171,209
 
	 Premiums Paid:
 	 	 $632,500
 
	 Number of Premium Payments:
 	 	 Single
 
	 Assumed Purchase Date:
 	 	 March 16, 2001
 
	 
	 Insurance Company:
 	 	 Union Central Life Insurance Company
 
	 Policy Form:
 	 	 Universal Life
 
	 Policy Name:
 	 	 COLI UL
 
	 Insured’s Age and Sex:
 	 	 60, Male
 
	 Riders:
 	 	 None
 
	 Ratings:
 	 	 Table C
 
	 Option:
 	 	 Level
 
	 Face Amount:
 	 	 $823,853
 
	 Premiums Paid:
 	 	 $424,000
 
	 Number of Premium Payments:
 	 	 Single
 
	 Assumed Purchase Date:
 	 	 March 16, 2001
 

 
  
 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 illustrations shall 
 

 3 

 
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. 
  

	 	I.
	 
	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 for the life insurance policies described in the definition of “Index” plus the amount of any benefits paid to the Executive pursuant
to the Executive Plan (Paragraph H hereinafter) plus the amount of all previous years’ after-tax Costs of Funds Expense, and multiplying that sum by the Average Tax-Adjusted Cost of Funds (Subparagraph I [L]). 
  

	 	J.
	 
	Change of Control: 
 

  
 Change of
Control means the cumulative transfer of more than fifty percent (50%) of the voting stock of the Bank from the Effective Date of this Executive Plan. For the purposes of this Executive Plan, transfers on account of deaths or gifts, transfers
between family members or transfers made to a qualified retirement plan maintained by the Bank shall not be considered in determining whether there has been a Change of Control. 
  

	 	K.
	 
	Normal Retirement Age: 
 

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

	 	L.
	 
	Average Tax-Adjusted Cost of Funds: 
 

  
 Average Tax-Adjusted Cost of Funds means, at any particular time, a ratio, tax adjusted as provided for herein, the numerator of which is the total interest expense as set forth on Schedule RI-Income Statement of the Bank’s most
recently filed Consolidated Report of Condition and Income (the “Call Report”) and the denominator of which is an amount equal to: (i) the amount of deposits in domestic offices (sum of total of columns A and C from Schedule RC-E of the
Call Report), plus (ii) the amount of Federal funds purchased and securities sold under agreements to repurchase, as set forth on Schedule RC-Balance Sheet of the Call Report; plus other Borrowed Funds as set forth on the Call Report. The said ratio
shall be adjusted by multiplying the ratio by a percentage equal to 100% less the federal corporate income tax rate percentage applicable to corporations similarly situated as the Bank with similar corporate income for the applicable Plan Year. For
example, if in an applicable Plan Year the Average Cost of Funds 
 

 4 

 ratio is 4% before tax adjustment, and the federal corporate income tax rate is 34%, the Average Tax-Adjusted Cost of Funds would be
2.64% (100% - 34% = 66% x 4% = 2.64%). 
  

	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 [K]) shall be entitled to receive the balance in the Pre-Retirement Account in two hundred and forty (240) equal
monthly installments commencing thirty (30) days following the Executive’s retirement. In addition to these payments and commencing in conjunction therewith, the Index Retirement Benefit (Subparagraph I [G]) for each Plan Year subsequent to the
Executive’s retirement, and including the remaining portion of the Plan Year following said retirement, shall be paid to the Executive until the Executive’s death. 
  

	 	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 five percent (5%) times the number
of full years of service with the Bank from the date of first service with the Bank (to a maximum of 100%), times the balance in the Pre-Retirement Account paid in two hundred and forty (240) equal monthly installments commencing at the Normal
Retirement Age (Subparagraph I [K]). In addition to these payments and commencing in conjunction therewith, five percent (5%) times the number of full years of service with the Bank from the date of first service with the Bank (to a maximum of
100%), times the Index Retirement Benefit for each Plan Year subsequent to the year in which the Executive attains Normal Retirement Age, and including the remaining portion of the Plan Year in which the Executive attains Normal Retirement Age,
shall be paid to the Executive until the Executive’s death. 
  

	 	C.
	 
	Termination of Service: 
 

  
 Subject to Subparagraph II (E), should an Executive suffer a Termination of Service the Executive shall be entitled to receive five percent (5%) times the number of full years of service with the Bank from the date of first service with the
Bank (to a maximum of 100%), times the balance in the Pre-Retirement Account payable to the Executive in two hundred and forty (240) equal monthly installments commencing thirty (30) days following the Executive’s Normal Retirement Age
(Subparagraph I [K]). In addition to these payments and commencing in conjunction therewith, five percent (5%) times the number of full years of service with the Bank from the date of first service with the Bank (to a maximum of 100%), times the
Index Retirement Benefit for each Plan Year 
 

 5 

  
 subsequent to the year in which the Executive attains Normal Retirement Age, and including the
remaining portion of the Plan Year in which the Executive attains Normal Retirement Age, shall be paid to the Executive until the Executive’s death. 
  

	 	D.
	 
	Death: 
 

  
 Should the Executive
die while there is a balance in the Executive’s Pre-Retirement Account (Subparagraph I [F]), said unpaid balance shall be paid in a lump sum to the individual or individuals the Executive may have designated in writing and filed with the Bank.
In the absence of any effective beneficiary designation, the unpaid balance shall be paid as set forth herein to the duly qualified executor or administrator of the Executive’s estate. Said payment due hereunder shall be made the first day of
the second month following the decease of the Executive. 
  

	 	E.
	 
	Discharge for Cause: 
 

  
 Should
the Executive be Discharged for Cause at any time, all benefits under this Executive Plan shall be forfeited. The term “for cause” shall mean any of the following: (i) gross negligence or gross neglect; (ii) the commission of a felony or
gross misdemeanor involving moral turpitude, fraud, or dishonesty; (iii) the willful violation of any law, rule, or regulation (other than a traffic violation or similar offense); (iv) an intentional failure to perform stated duties; or (v) a breach
of fiduciary duty involving personal profit. If a dispute arises as to discharge “for cause,” such dispute shall be resolved by arbitration as set forth in this Executive Plan. 
  

	 	F:
	 
	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, his/her 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
 
 

 6 

 
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 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 [J]), if the Executive subsequently suffers a Termination of Service (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 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 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 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.

 

 7 

  

	 	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 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 Alabama. 
  

	 	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. 
  

	 	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
 
 

 8 

 
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 The Peoples Bank & Trust Company 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. 
  
 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. 
  
 
	 
	  	  	 THE PEOPLES BANK & TRUST COMPANY
 Selma, Alabama
 
	 
	         ________________________________________________
                                        
             Witness
 	  	 By:_____________________________________________
 Title
 
	 
	         ________________________________________________
                                        
             Witness
 	  	       _____________________________________________
 Richard P. Morthland
 

 
 

 9 

  
 BENEFICIARY DESIGNATION FORM 
  
 FOR THE EXECUTIVE SUPPLEMENTAL 
  
 RETIREMENT PLAN AGREEMENT 

 
  
 PRIMARY DESIGNATION: 
  
 
	 Name
 
	  	 Address
 
	    	 Relationship
 

 
  
 ______________________________________________________________________________________________________

  
 ______________________________________________________________________________________________________ 
  
 ______________________________________________________________________________________________________ 
  
  
 SECONDARY (CONTINGENT) DESIGNATION: 
  
 ______________________________________________________________________________________________________ 
  
 ______________________________________________________________________________________________________ 
  
 ______________________________________________________________________________________________________ 
  
 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. 
  
 
	 
	 ________________________________________________
                                 Richard P.
Morthland
 	  	 ___________________________________________
                                        
 Date
 

 
 

 10

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